Indian economy has defied all expectations. In 1991 the country’s foreign exchange reserves had dipped to an all time low but now the country has surplus. The economy is growing at double digit pace. Every global business organization either has a presence in the country or soon wants to expand to India.
Per capita income of people is increasing year after commensurate with the growth in economy. According to finance minister P Chidambaram, India’s per capita income will touch USD 4,000 by 2025. Though global economic pundits have predicted otherwise, Chidambaram said he is confident that Indian economy will shatter all their forecasts.
A BRIC report has forecast India’s per capita income would touch US dollar 800 by 2010 and USD 1,149 by 2015. But we have exploded this assumption as our per capita income has already touched USD 1,000 this year and expect it to touch USD 4,000 by 2025,
said Chidambaram.
He was speaking after releasing a book titled We are Like That Only: Understanding the Logic of Consumer India,, written by Rama Bijapurkar, a renowned thought leader on market strategy and consumer issues in India.
An alumna of the Indian Institute of Management, Ahmedabad, Rama Bijapurkar is head of an independent market strategy consulting practice and works with several global companies and non-profit institutions, guiding the development of their business-market strategy.
Today one cannot get a farm labourer for below Rs.80, carpenter won’t be available for less than Rs 150 and a senior mason will charge Rs.200. People are demanding and getting more. This aspiration is driving consumption which will make India a middle income country in next 15-20 years.
said Chidambaram adding that previously several economists had made assumptions about the Indian cellphone market. But the market had proved these assumptions wrong by consumers.
It has been said that India’s cellphone usage will not double to 400 million users from 200 million very easily. This assumption has been blown to smithereens. We are adding 60 million users annually,
said the Finance Minister.
India is a fast changing market driven by people’s aspirations to lead a better life and move up the ladder. This aspiration is breaking down class and caste barriers,
concluded Chidambaram.
In a fast growing economy where there are more jobs than employees, it is obvious that these claims are based on true facts and that growth will be gradual and steady.
But on the other hand when one looks at the quality of work produced by Indian employees it seems scary, call center contractors are withdrawing from India and looking out to other countries. Quality of labour is abysmally low. Several studies prove that most engineering graduates are unemployable.
If the finance minister’s claim has to come true there has to be consistent efforts by the government to improve education and training situation in the county.
Source : Times of India
