Viksit Bharat has become a joke | BKBB | RN Bhaskar

Summary

In this economic analysis, Arn Basar critiques the Indian government's claims of progress toward becoming a 'developed' nation. He highlights the stark disparity between India's top 10% and the remaining 90%, showing alarming statistics regarding income inequality. With a comparison to sub-Saharan Africa's per capita GDP, he argues that India's true economic condition is far from the narrative of prosperity. The analysis also touches on factors like inflation, unemployment, and the need for policy changes to support the poorest and stimulate business growth. Arn emphasizes the urgency of improving education and creating job opportunities to prevent a future economic crisis.

Takeaways

• 😀 The government frequently promotes India as a 'developed' country, but there's a growing disconnect between this narrative and the reality of economic inequality.
• 😀 India's per capita GDP, while seemingly decent, hides a stark disparity where the top 10% contribute significantly more to the GDP, leaving the bottom 90% in a much worse economic position.
• 😀 The per capita GDP of India's poorest 90% is shockingly close to the per capita GDP of Sub-Saharan Africa, which is one of the poorest regions globally.
• 😀 India's Gross National Income (GNI) per capita is alarmingly low compared to the poorest regions of the world, highlighting the country's underlying economic challenges.
• 😀 The gap between India's GDP and its per capita GNI suggests that much of the country's economic growth is based on borrowed capital, not real wealth generation.
• 😀 As India’s GDP growth rates slow down, a primary reason is the rising unemployment and lack of investments, with a deteriorating business climate discouraging both domestic and foreign investments.
• 😀 The Indian rupee has weakened against the dollar, contributing to a decrease in the average income of Indian citizens in dollar terms.
• 😀 A significant cause of the slow economic progress is the failure to create enough jobs, exacerbated by the poor environment for business growth in India.
• 😀 In the next decade, automation and artificial intelligence may cause significant job losses in India, particularly affecting low-skilled and white-collar jobs.
• 😀 The government needs to prioritize education reform and job creation urgently, or India risks facing increased poverty and unemployment in the coming years.

Q & A

What is the key economic issue discussed in the video?

The key economic issue discussed in the video is the inequality in India’s economic growth, where a significant portion of the wealth is concentrated in the hands of a small percentage of the population, leaving the majority in poverty despite claims of economic progress.

How does the per capita GDP of India compare to that of China?

India and China had similar economic standings in the 1960s, but China has experienced much faster economic growth, resulting in a significant disparity in their per capita GDPs. India’s per capita GDP is much lower than China’s.

Why is the per capita GDP of India misleading in terms of reflecting the real economic situation?

The per capita GDP of India is misleading because it includes the wealth generated by the top 10% of the population, while the majority of people, constituting 90% of the population, contribute very little to the GDP due to their lower incomes.

How does India’s per capita GNI compare to Sub-Saharan Africa?

India’s per capita GNI, after removing the top 10%, is only $889, which is nearly half of the per capita GNI of Sub-Saharan Africa, which stands at $1,642. This highlights India’s poor economic standing when considering national income.

What does Arn Basar suggest about India's GDP and borrowing?

Basar suggests that India's GDP figures can be misleading because they may include borrowed money. He compares it to a wealthy individual who spends borrowed money to appear rich, while in reality, they are financially negative.

What impact does the devaluation of the rupee have on India’s economy?

The devaluation of the rupee has resulted in a decrease in the average income of Indians in dollar terms, making the country appear poorer relative to others as the rupee weakens against the dollar.

Why does Basar claim that job creation in India is insufficient?

Basar claims that job creation in India is insufficient because investments are not being made due to a poor business climate. He argues that the government's policies have made it difficult for businesses to thrive, which limits job creation.

What role does education play in India’s future employment situation?

Basar predicts that if the government does not improve education, more jobs will be lost in the future, especially with the rise of artificial intelligence. He suggests that educated and skilled individuals may still find jobs, but those without education or skills are at risk of losing their jobs.

How does the increase in agricultural population reflect India’s economic issues?

The increase in the agricultural population reflects the lack of job opportunities in urban areas, forcing people from poorer families to return to agriculture in rural areas. This adds pressure on the already struggling rural economy.

What does Basar propose as a solution to India’s economic challenges?

Basar proposes that the government needs to create a business-friendly environment, ensure that the poorest people earn more, control inflation, and create many more jobs to address the economic issues India is facing.