Indeed, there are hundreds of reasons why we should be disappointed with Indian Govt, economy and society at large, still we managed to pull millions out of acute poverty and managed average GDP growth rate of 7% in last 2 decades. This proves that something is working for us. I have compiled list of positive developments and growth enablers which are giving hope that Indian growth story is intact:
1. Swift and Dezire are highest selling cars ( not cheap Alto and WagonR). Segment of ₹10-15 lakh is rocking. More People are buying feature loaded cars ( with sunroof and ABS), this shows better purchase power and risk taking confidence as 75% cars are sold through bank loan
2. Car sales has jumped 3 times in last 15 years, higher mobility is leading to increased economic activities
3. Ceiling Fan advertisement is focusing on style and looks (costly). Life style product demand is increasing
4. Air passenger traffic doubled in last 5 years
5. Internet reach in deep interior is invoking aspiration
6. Girls are getting educated. Women participation in job is increasing. This is encouraging.
7. Population growth rate reduced ( only 1% per annum vs 2% couple of decades back)
8. Breakneck speed of infrastructure development (Highway, rural road, Metro and airport). Infrastructure is must for development
9. Privatisation is priority for Govt ( bold move)
10. Low Rate of interest in helping businessmen and home buyers
11. Startup culture and risk taking appetite is increasing
12. Increased Global exposure of Indian helping us to think big
13. Digital economy is helping to assess credit worthiness. Credit availability would boost entrepreneurship
14. Jan dhan account has helped millions to come into mainstream economy
15. India would further gain from Global cost cutting by companies (Back office of the world )
16. Rural growth and diversification of villager’s income would give thrust to economy. Record tractor sales is indicator of rural growth
17. Foreign investment ( FDI) inflow is healthy. Stock market is close to all time high.
18. Stable property prices despite pandemic and also faster than expecting rebound of economy shows our resilience
19. India per capita income is $2000 vs western countries $50000 ( huge scope of improvement)
20. Automobile, pharmaceutical and IT sectors success is giving hope that India can do well also in other segments
21. Soon India would be net exporter of mobile phones, localization of electronic components manufacturing is positive development.
22. For last 4-5 years we have surplus electricity which would help economy and industry
23. Govt is focused about Ease of doing Business
24. States are having healthy competition to attract investment
25. Huge jump in Digital communications (zoom/google meet) and digital money transfer would reduce cost of business
26. Cheapest internet data is helping to increase awareness among citizens
27. Use of technology is helping to reduce corruption and cost of operation ( video KYC and Aadhar)
28. Reforms done by Government ( GST, labour reform, banking reform etc) would bring result in coming years
29. Quality of education is big challenge but high quality educational video content on YouTube would help millions in rural areas. Housewives are learning new skills ( cooking, beauty, art etc) through YouTube videos
30. Low Bank Fixed deposit rate would divert money to property and stock market which would fuel growth
Let’s participate in India’s growth story, easiest way is to spread positivity.
I am sure, we would overcome all the challenges.
Jai Hind!
Manoj Tripathi
