Indian Youth to Support forthcoming Economic Surge
Author – Prakash Sharma
The world in the wake of the markets emanating from across the nations globally, which also has India strategically placed in the midst, is gradually transcending into a new realm.
If the recent long-term projections released by Standard Chartered are to be believed, India may well be on its course to emerging as the second-largest economy in the world by the year 2030. India shall find itself surpassing the American economy and be second only to the Chinese, should this aforementioned become a reality. On the basis of the nominal Gross Domestic Product (GDP) using purchase power parity (PPP) exchange rates, it further forecasted that the Chinese economy shall surpass the American economy by the year 2020.
With the inception of the year 2030, the markets growing at a swift pace now shall be responsible for forming the majority of the 10 biggest economies, according to an estimate.
As per the report generated by Standard Chartered, India shall prove to be the catalyst for catapulting growth due to its exhibiting an ascending trend to 7.8% by 2020. The deterrents responsible for the same shall partially be the ongoing reforms, which comprise of the GST and the Indian Bankruptcy Code(IBC).
GST
GST is one of the most significant tax reforms in the history of India.
– Finance Minister Arun Jaitley
The GST was introduced in the year 2017 with the key objective to simplify India’s intricate tax structure, whereas, IBC consolidates the national insolvency and bankruptcy laws.
Furthermore, as per the prominent principle supporting Standard Chartered forecasts, the countries’ share of the global GDP, must eventually merge with their portion of the world’s population.
India has more than half the population below the age of 25, making it the largest pool of young people, which when compared to the age averages of the other countries, is quite low. This shall lend a helping hand to India’s economic growth when the aging populations from other nations shall be weighing on global growth.
India’s consumerism is expected to prosper in the light of the soaring aspirations and ambitions of a comparatively young population.
Having the largest population of young people comes with its set of drawbacks and challenges. One such major challenges that have emerged in the last two decades is an enormous employment demand. Observing some startling figures that indicate that India shall be required to create about 100 new jobs in various sectors by the 23030. In order for this to be implemented, it is imperative that the dispensation raise the number of women as part of the work-force and make the labor laws less stringent.
India requires an infrastructure that can efficiently be used to train a population of 10 million people, as India’s current infrastructural structure can accommodate a mere 4.5 million people, as per the report.