Indian Economy

Current Status

• 2.7 trillion USD - 7th largest - IMF
• 3rd largest in PPP - IMF

Objectives

Issues

• Stagnation due to lockdown
• Slow down, Automobile, FMCG, 
• Structural problem - capital investment, rural distress, low exports 

Solution

• Structural changes
• Fiscal stimulus
• External enviro protection

Growth & Development

• 6th largest eco 
• Last 5 year - macroeconomic stability 
• 7.5% growth as compared to 3.6% world 
• Inflation under 4 %
• GFD 4.5% (13-14) to 3.4%(18-19) 

• JAM& 370 major cash-based scheme under debt
• Accelerated infra creation - electricity, road, railway
• NITI, GST (federal) -KPI 

Middle income trap

• PMEAC member -slowdown may go in MIT - S Africa , Brazil 
• Reaches middle income, fails to grow then 
• Can't compete with low income - low wage manufacturing, advance eco - high skill innovation 
• x export market
• stagnation in middle class, wealth & income inequality - decrease consumption & upward mobility 
• Recurring boom-bust cycle & procyclic lending   
• Reason
• X globalization - world trade/ GDP lowering since 2011
• Human capital regression - continuous skilling needed 
• CC induced Agri distress, fall in private consumption, muted rise in fixed investment, thwarted structural transformation - premature deindustrialization 
• WF
• Diversification to specialization in a product - s Korea electronic - invest in tech, innovation, skill retraining, a social security net
• Productivity led growth - tertiary Edu, know economy
• attract & retain mobile professional talent - safe & liveable city
• competition - IBC , tax reform , IPR enforcement 
• Decentralize eco management - to LSG - quick design makers & close to ppl 
• Sustaining macroeconomic stability - FD, NPA issue
• The social program should target middle class- demand driven growth - low cost housing for 1st timer buyer, recent graduate employment , public good - safety urban transport