Ruchir Sharma said, India has achieved a significant step forward and great recovery in its 75 years of history.
New Delhi:
Global investor and author Ruchir Sharma discussed the story of the 75-year-old Indian economy with NDTV’s Prannoy Roy. “Compared to the rest of the world, India is not richer now than it was before independence, but it is on the rise,” he said.
Highlights:
* Developments of Indian economy to date:
We started at sixth and we’re currently sixth. India’s development path has been reshaped. The 60s and 70s were terrible times for India. We rejoin the development phase since the 1980s.
* Per capita income compared to the rest of the world:
It’s V-shaped, indicating we’ve turned it back on. We are where we were in the original data. The story of per capita income, a single economic criterion of a country’s success, has been told more.
* We are back to the global race. India’s per capita income has increased and its global ranking is rising.
We have made significant progress and major restoration in its 75 years of history.
* A much more spectacular return of China:
In the 1990s, new cities were established in China, a boom there.
In the case of India, of any rural area, 10% is from some other district. The migration rate is very low, which is not the case in China.
It’s very difficult to do what China did, but we can still emulate.
* Lifespan so far:
On many indicators our growth is impressive, on some it is comparable to others and on some it is slightly worse.
* Progress to date in education:
* India’s Progress on Economic Freedom.
We are still economically unstable compared to other countries. So, according to the data, the wealthier a country becomes, the more economic freedom it enjoys.
* Stock Exchange of India:
* India’s stock market has seen many winners:
The number of new billionaires we have in India is also increasing.
* Government continues to lose value:
Government ownership has fallen from 15% to 5% of the market. Governments and taxpayers have lost wealth as ownership has declined in the stock market.
* Billionaire boom in India – 3rd largest in the world:
Of these 140 people, more than 110 are new billionaires. India has created more than 110 billionaires in the past decade, and many of them come from manufacturing, healthcare and technology, areas that India needs. It is a very encouraging picture.
* Itinerary of the rupee:
Rupees have dropped by Rs 75 over the past 75 years. Today, the rupee is very cheap and competitive.
Where are we going:
* High growth stories are disappearing:
Almost no country has a 7% growth rate. The peak was in 2007, when some countries were growing at more than 7%, now almost none.
* Reason for slow growth: 4Ds
These 4D factors are the factors that reduce the annual growth rate.
* Population growth of India decreased:
* Other populations are declining faster than China:
* Participating female workers:
Bringing women into the workforce will change our country’s growth rate.
* New criteria for economic success: India would do well to sustain 5% growth:
* Maintain high growth: India has done well so far
* India is on track to become the 3rd largest economy in 10 years:
According to these baselines, India will become the third largest economy by 2032.
* How long does it take for India to double its per capita income:
* India’s inflation situation improved:
We are better off now than 10 years ago when compared to other countries.
* Where is the stock market headed?
Indian stock trend is above its long term trend. If it has more domestic investors, if it has more investors, the return could be higher but assume that the trend will be up 8% in 10 years.
* Competitive value of rupee:
Today’s Rupee is very competitive which is beneficial for our exports.
* India is digitizing faster than the world:
* Less leakage because of digitization:
* India has a supportive relationship:
* Lessons learned:
