As India overtakes Japan in economic size, prosperity lags far behind
Becoming the No 4 economy is a source of pride. Now, the race is on to turn statistical success into 8 million new jobs a year
The achievement unleashed a wave of national pride in New Delhi and among business leaders, but behind the celebrations lingers a question: can the world’s fastest-growing economy turn rapid growth into widespread prosperity?
Economists warn that GDP figures alone cannot create jobs, lift incomes or bridge yawning inequality in a nation of more than 1.4 billion people.
The challenge now is maintaining momentum and continuing to drive reforms of taxes, labour rules and foreign investment norms to turn statistical success into tangible gains for its young, still-poor population.
For Kunal Gupta, these reforms have unfolded on the factory floor. As CEO of electric-bike maker EMotorad, he has seen a fundamental shift in how businesses approach manufacturing.
“We are constantly seeing people trying to get into manufacturing under the Make in India campaign. Businesses are taking the harder step to localisation,” he said, referencing a government drive to boost a sector that still punches below its weight compared to China and other regional competitors such as Vietnam and Thailand.