What do you think we are doing right as a country?

Honestly, government ain't doing a lot but it's people who r hustling n boosting GDP. Govt. is just an enabler.

1. Fpi+fdi+remittances+dollar sale by RBI is reason behind inr stability.

2. Due to festival demand we saw a zoom in manufacturing, real estate and mining which resulted in 7.8% q2 growth 📈.

3. Remove top 5cr tax paying citizens n nation will be like a sub saharan Africa 🌍 nation

4. Infrastructure boost by government causes cyclical effect in economy. Dbt or ubi ain't a solution in 1500M nation. It's suitable for small EU nations with 5-10M population.

5. I believe government including states should spend on education, skill development n health as much as possible. Currently we spend 20% on subsidy n less than 2% on education or health. It's happening since 1947.

We need to build capacity n not work less but paid bots.

We should be a knowledge economy not a labour economy.

Peace out ✌️

I feel two things which saved India - 1) Aggressive govt risk taking ability 2) Demographic dividend

1. Though we see a dangerous level of fiscal deficit (as per historical records), we needed someone at RBI/FinMin to take that risk. One of my professors, Jayant Verma who’s also a member of MPC, made convincing arguments against those risks. But again theoretical risks and real life rewards become two sides of the same coin. The cleansing of banking system (look how likes of PNB, BoB) is one such example.

2. When countries like Canada, Australia, Germany relaxed their immigration systems to improve the demand. We already had people waiting to consume cheaper loans, services. The demand reached to such levels that the same brand hotel in Goa > Dubai.
   Foreign tech companies opened record number of GCCs post covid in India. All because they can find people who can deliver value at much cheaper cost.

Specific to covid, here's what happened.

1. India realised that there are going to be significant income issues across the board and so the appropriate response is enhanced DBT.

They also realised quickly (within 2Q) this is not sustainable as the multiplier on economic growth for putting cash in peoples hands is 0.9.

This decays growth.

2. The course correction was to reroute this money to capex which has a higher economic multiplier of 4x, but has a lag.

To counter the lag, the food security was taken care of.

They chose to bet the house on the capex and we are where we are as a result.

Credit where it's due, RBI has done a great job keeping inflation in check also it is trying to keep the rupee stable also we have started tasting the fruits of the groundwork done by the government in the first term. Also kudos to people of India for rejecting the khichdi government in the last election, I hope people elect stable government in 2024 election as well ✌️

1. Project ourselves as a viable alternative to China on the global stage both in terms of geopolitics and to an extent business
2. Use the Ukraine war to get cheaper oil
3. DBT and other DPG enabled benefits
4. Efficiency gains from automation and digitisation

However, with all these positives, we need to be cautious. While most economies go from being resource driven to manufacturing driven to service driven, we jumped straight to being service driven. In the mid to short term that's great for the middle and upper class but the whole reason why the manufacturing stage exists is that it is a more sustainable way of uplifting people.

Over 70% of our women are still not part of the workforce and rural unemployment is high. A strong manufacturing base is needed if we are to make use of everyone in the best way.