Comment by Riaz Haq on April 4, 2023 at 4:16pm

Analysis: India's surging services exports may shield economy from external risks

https://www.reuters.com/world/india/indias-surging-services-exports...

IT services still accounted for 45% of India's total services exports in April-December.

Professional and management consulting grew the fastest - at a 29% compounded annual growth rate over the last three years, as per estimates by economists at HSBC Securities and Capital Markets.

The recent growth in services exports has been largely powered by global capability centres, which have started to offer global clients a range of high-end and critical solutions such as accounting and legal support.

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This, together with a drop in merchandise trade deficit, resulted in the current account deficit shrinking more than expected to $18.2 billion, or 2.2% of GDP.


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A surge in India's services exports, which hit a record high in the October-December quarter, is expected to shield the economy from external risks as a slowing global economy will likely weigh on the country's merchandise exports.

Service exports are no longer being driven by IT services alone but also by more lucrative offerings such as consulting and research and development, analysts and economists told Reuters.

India's services exports rose 24.5% on year in October-December 2022, hitting a record $83.4 billion during the quarter, data released by the Reserve Bank of India (RBI) on Friday showed.

The services surplus, which deducts any imports in the category, also rose 39.21% to a record $38.7 billion.

This, together with a drop in merchandise trade deficit, resulted in the current account deficit shrinking more than expected to $18.2 billion, or 2.2% of GDP.

"We expect services exports to grow to over $375 billion by March 2024, as compared to $320-350 billion for the year ending March 2023," said Sunil Talati, chairman of the Services Export Promotion Council.

Services exports will likely surpass goods exports by March 2025, he said.

October-December merchandise exports stood at $105.6 billion, according to latest RBI data.

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As a result, such exports will hold up better compared to goods exports in the face of a weakening global economy, analysts said.

Over the last two to three years, there has been a rapid growth in global capability centres, said Sangeeta Gupta, chief strategy officer at software industry lobby group Nasscom.

Nasscom estimates that India is home to over 45% of such global capability centres in the world.

According to Pranjul Bhandari, chief India economist at HSBC Securities and Capital Markets, such centres started off providing support functions, but they have now moved up the ladder to tech enablement, business operations, capability development, and even R&D and business development.

While U.S. companies were the first movers in India, a lot of companies from Europe, Australia and Asia are also exploring stepping up their operations, Nasscom's Gupta said.

An acceleration in digitalisation after the Covid crisis and a lack of adequate tech talent in some of these countries are key factors, she added.

Sectors such as tourism, education, financial services and health also contributed to India's higher service exports.

Comment by Riaz Haq on April 7, 2023 at 2:29pm

Adani’s business empire may or may not turn out to be the largest con in corporate history. But far greater dangers to civic morality, let alone democracy and global peace, are posed by those peddling the gigantic hoax of Modi’s India. Pankaj Mishra


https://www.lrb.co.uk/the-paper/v45/n08/pankaj-mishra/the-big-con


Modi has counted on sympathetic journalists and financial speculators in the West to cast a seductive veil over his version of political economy, environmental activism and history. ‘I’d bet on Modi to transform India, all of it, including the newly integrated Kashmir region,’ Roger Cohen of the New York Times wrote in 2019 after Modi annulled the special constitutional status of India’s only Muslim-majority state and imposed a months-long curfew. The CEO of McKinsey recently said that we may be living in ‘India’s century’. Praising Modi for ‘implementing policies that have modernised India and supported its growth’, the economist and investor Nouriel Roubini described the country as a ‘vibrant democracy’. But it is becoming harder to evade the bleak reality that, despoiled by a venal, inept and tyrannical regime, ‘India is broken’ – the title of a disturbing new book by the economic historian Ashoka Mody.

The number of Indians who sleep hungry rose from 190 million in 2018 to 350 million in 2022, and malnutrition and malnourishment killed nearly two-thirds of the children who died under the age of five last year. At the same time, Modi’s cronies have flourished. The Economist estimates that the share of billionaire wealth in India derived from cronyism has risen from 29 per cent to 43 per cent in six years. According to a recent Oxfam report, India’s richest 1 per cent owned more than 40.5 per cent of its total wealth in 2021 – a statistic that the notorious oligarchies of Russia and Latin America never came close to matching. The new Indian plutocracy owes its swift ascent to Modi, and he has audaciously clarified the quid pro quo. Under the ‘electoral bond’ scheme he introduced in 2017, any business or special interest group can give unlimited sums of money to his party while keeping the transaction hidden from public scrutiny.

Modi also ensures his hegemony by forging a public sphere in which sycophancy is rewarded and dissent harshly punished. Adani last year took over NDTV, a television news channel that had displayed a rare immunity to hate speech, fake news and conspiracy theories. Human Rights Watch has detailed a broad onslaught on democratic rights: ‘the Hindu nationalist Bharatiya Janata Party (BJP)-led government used abusive and discriminatory policies to repress Muslims and other minorities’ and ‘arrested activists, journalists and other critics of the government on politically motivated criminal charges, including of terrorism’. Last month, as the BJP’s official spokesperson denounced the BBC as ‘the most corrupt organisation in the world’, tax officials launched a sixty-hour raid on the broadcaster’s Indian offices in apparent retaliation for a two-part documentary on Modi’s role in anti-Muslim violence.

Also last month, the opposition leader Rahul Gandhi was expelled from parliament to put a stop to his persistent questions about Modi’s relationship with Adani. Such actions are at last provoking closer international scrutiny of what Modi calls the ‘mother of democracy’, though they haven’t come as a shock to those who have long known about Modi’s lifelong allegiance to Rashtriya​ Swayamsevak Sangh, an organisation that was explicitly inspired by European fascist movements and culpable in the assassination of Mohandas Gandhi in 1948.

Comment by Riaz Haq on April 8, 2023 at 10:41am

Why Prof. Ashoka Mody Believes India is Broken | Princeton International

https://international.princeton.edu/news/why-prof-ashoka-mody-belie...


I have long felt that that upbeat story is completely divorced from the lived reality of the vast majority of Indians. I wanted to write a book about that lived reality, about jobs, education, healthcare, the cities Indians live in, the justice system they encounter, the air they breathe, the water they drink. And when you look at India through that lens of that reality, the progress is halting at best and far removed from the aspirations of people and what might have been. India is broken in the sense that for hundreds of millions of Indians, jobs are hard to get, and education and health care are poor. The justice system is coercive and brutal. The air quality remains extraordinarily poor. The rivers are dying. And it's not clear that things are going to get better. Underlying that brokenness, social norms and public accountability have eroded to a point where India seems to be in a catch-22: Unaccountable politicians do not impose accountability on themselves; therefore, no one has an incentive to impose accountability for policy priorities that might benefit large numbers of people. The elite are happy in their gated first-world communities. They shrug their shoulders and say, “What exactly is the problem?”

———

Prof Ashoka Mody interviewed by Barkha Dutt

https://www.youtube.com/watch?v=L8SEmML71KQ

Comment by Riaz Haq on April 10, 2023 at 10:17am

As India’s population soars above all, fewer women have jobs

https://news.yahoo.com/india-population-soars-above-fewer-042021160...


The women’s employment rate peaked at 35% in 2004 and fell to around 25% in 2022, according to calculations based off official data, said Rosa Abraham, an economist at Azim Premji University. But official figures count as employed people who report as little as one hour of work outside the home in the previous week.

A national jobs crisis is one reason for the gap, experts say, but entrenched cultural beliefs that see women as the primary caregivers and stigmatize them working outside the home, as in Singh's case, is another.

The Center for Monitoring the Indian Economy (CMIE), which uses a more restrictive definition of employment, found that only 10% of working age Indian women in 2022 were either employed or looking for jobs. This means there are only 39 million women employed in the workforce compared to 361 million men.

Just a few decades ago, things seemed to be on a different track.

When Singh became a social worker in 2004, India was still riding high from historic reforms in the 1990s. New industries and new opportunities were born seemingly overnight, sparking millions to leave their villages and move to cities like Mumbai in search of better jobs.

It felt life-changing. “I didn’t have a college degree, so I never thought it would be possible for someone like me to get a job in an office,” she said.

Even then, leaving home to work was an uphill fight for many women. Sunita Sutar, who was in school in 2004, said that women in her village of Shirsawadi in Maharashtra state were usually married off at 18, beginning lives that revolved around their husbands’ homes. Neighbors mocked her parents for investing in her education, saying it wouldn’t matter after marriage.

Sutar bucked the trend. In 2013, she became the first person in her village of nearly 2,000 people to earn an engineering degree.

“I knew that if I studied, only then would I become something -- otherwise, I’d be like the rest, married off and stuck in the village,” Sutar said.

Today, she lives and works in Mumbai as an auditor for the Indian Defense Department, a government job coveted by many Indians for its security, prestige and benefits.

In one way, she was part of a trend: Indian women have gained better access to education since her youth, and are now nearly at parity with men. But for most women, education hasn’t led to jobs. Even as more women have begun graduating from school, joblessness has swelled.

“The working age population continues to grow but employment hasn’t kept up, which means the proportion of people with jobs will only decline,” said Mahesh Vyas, director at CMIE, adding there’s been a severe slowdown in good quality jobs in the last decade. “This also keeps women out of the workforce as they or their families may see more benefit in taking care of the home or children, instead of toiling in low-paid work.”

And even when jobs are available, social pressures can keep women away.

In her home village in Uttar Pradesh state, Chauhan hardly ever saw women working outside the home. But when she came to Mumbai in 2006, she saw women swarm public spaces, Chauhan said, serving food in cafes, cutting hair or painting nails in salons, selling tickets for the local trains, or boarding the trains themselves, crammed into packed compartments as they rushed to work. It was motivating to see what was possible, she said.

“When I started working and leaving the house, my family used to say I must be working as a prostitute,” said Lalmani Chauhan, a social worker.

One reason she was able to hold onto her job was because it became a lifeline when an accident left her husband bedridden and unable to work, Chauhan said.

Abraham said there is growing recognition among policymakers that the retreat of women from the workforce is a huge problem, but it has not been met with direct fixes like more childcare facilities or transportation safety.

Comment by Riaz Haq on April 18, 2023 at 11:33am

Worthless Degrees Are Creating an Unemployable Generation in India


https://www.bloomberg.com/news/articles/2023-04-17/india-s-worthles...

Business is booming in India’s $117 billion education industry and new colleges are popping up at breakneck speed. Yet thousands of young Indians are finding themselves graduating with limited or no skills, undercutting the economy at a pivotal moment of growth.

Desperate to get ahead, some of these young people are paying for two or three degrees in the hopes of finally landing a job. They are drawn to colleges popping up inside small apartment buildings or inside shops in marketplaces. Highways are lined with billboards for institutions promising job placements.

Around the world, students are increasingly considering the return on degree versus cost. Higher education has often sparked controversy globally, including in the US, where for-profit institutions have faced government scrutiny. Yet the complexities of education in India are clearly visible.

It has the world’s largest population by some estimates, and the government regularly highlights the benefits of having more young people than any other country. According to a study by talent assessment firm Wheebox, half of all graduates in India are unemployed in the future due to problems in the education system.

Many businesses say they have difficulty recruiting because of the mixed quality of education. This has kept unemployment at a high level of over 7%, even though India is the fastest growing major economy in the world. Education is also becoming a big issue for Prime Minister Narendra Modi as he tries to attract foreign manufacturers and investors from China. Modi vowed to create lakhs of jobs in his campaign speeches, and the issue is likely to be hotly debated in the 2024 national elections.

“We face a challenge in hiring as the specific skill sets required by the industry are not readily available in the market,” said Yashwinder Patial, Director, Human Resources, MG Motor India.

The complications of the country’s education boom are visible in cities like Bhopal, a metropolis of about 2.6 million in central India. Huge hoardings of private colleges are ubiquitous, promising degrees and jobs to young people. One such advertisement said, “Regular classes and better placements: We need to say more.”

It is difficult to resist such promises for millions of young men and women dreaming of a better life in India’s dismal job scenario. Higher degrees, once accessible only to the wealthy, hold a special hold for young people from middle- and low-income families in India. Students interviewed by Bloomberg cited a variety of reasons for investing in more education, ranging from attempting to boost their social status to improving their marriage prospects to applying for government jobs, for which applicants are required to pay. Degree certificate is required.

Twenty-five-year-old Tanmay Mandal, a Bhopal resident, paid $4,000 for a bachelor’s degree in civil engineering. He was convinced that a degree was a path to a good job and a better lifestyle. He was not bothered by the high fees for his family, whose monthly income is only $420. Despite the cost, Mandal says he learned almost nothing about construction from teachers who appeared to have insufficient training themselves. He could not answer technical questions in job interview and is unemployed for the last three years.

Mandal said, ‘I wish I had studied in a better college.’ “Many of my friends are also sitting idle without jobs,” Mandal said. He still hasn’t given up. Even though he did not find his final degree useful, he wants to avoid the stigma of being unemployed and sitting idle. So, he has signed up for a master’s degree in another private institution as he believes that more degrees can at least raise his social status.

Comment by Riaz Haq on April 18, 2023 at 11:34am

Worthless Degrees Are Creating an Unemployable Generation in India


https://www.bloomberg.com/news/articles/2023-04-17/india-s-worthles...


There is a bustling market place in the heart of Bhopal with training institutes for civil services, engineering and management. The students said that they had enrolled for these courses to upgrade their skills and boost their career opportunities after regular degree, as they did not get jobs of their choice.

A Bhopal educational institution in particular hit the headlines in recent years because it was involved in a case that went all the way to the Supreme Court of India. In 2019, the Supreme Court barred the Bhopal-based RKDF Medical College Hospital and Research Center from admitting new students for two years for allegedly using fake patients to meet the requirements of the medical college. The college initially argued in court that the patients were genuine, but later apologized after an investigative panel found that the alleged patients were not in fact sick.

“We have noticed a disturbing trend of some medical colleges in projecting bogus faculty and patients to obtain permission for admission of students,” the court said in its judgement. The medical college did not respond to a request for comment.

The Medical School is part of the RKDF Group, a well-known name in Central India with a wide network of colleges in fields ranging from Engineering to Medicine and Management. The group faced another controversy last year. In May last year, police in the southern city of Hyderabad arrested the vice-chancellor of the RKDF group’s Sarvepalli Radhakrishnan University as well as his predecessor for their alleged involvement in awarding fake degrees. Still, a flood of students could be seen in many RKDF institutes in Bhopal. One branch had posters of their “bright stars”—students who got jobs after graduation.

SRK University and RKDF University of RKDF Group did not respond to multiple requests for comment. On its website, the group says that it provides quality education by imparting teaching and practical skills while striving to provide robust infrastructure and facilities.

Elsewhere in Bhopal, another college was functioning in a small residential building. One of the students who studied there said that it was easy to secure admission and get a degree without attending classes.

India’s education industry is projected to reach $225 billion by 2025 from $117 billion in 2020, according to the India Brand Equity Foundation, a government trust. This is still very small compared to the US education industry, where spending is estimated to exceed $1 trillion. In India, public spending on education has remained stagnant at around 2.9% of GDP, well short of the 6% target set in the government’s new education policy.

The problems at the colleges have spread across the country, with a range of institutions in different states under official scrutiny. In some parts of India, students have gone on hunger strike to protest against the lack of teachers and facilities in their institutions. In January, charges were filed against the Himachal Pradesh-based Manav Bharti University and its promoters for allegedly selling fake degrees, according to a press release from the Enforcement Directorate. Manav Bharati University did not respond to a request for comment.

While institutes promote campus placements for students, many are not able to deliver on this promise. In 2017, an institute in the eastern state of Odisha offered fake job offers during campus placements, prompting students to protest.

Anil Swaroop, former secretary of school education, estimated in a 2018 article that of the 16,000 colleges offering bachelor’s qualifications for teachers, a sizeable number exist only in name.

Comment by Riaz Haq on April 18, 2023 at 11:35am

Worthless Degrees Are Creating an Unemployable Generation in India


https://www.bloomberg.com/news/articles/2023-04-17/india-s-worthles...



Anil Swaroop, former secretary of school education, estimated in a 2018 article that of the 16,000 colleges offering bachelor’s qualifications for teachers, a sizeable number exist only in name.

“To call such so-called degrees useless would be an understatement,” said Anil Sadgopal, former dean of education at Delhi University and former member of the Central Advisory Board of Education that guides the federal government. “When lakhs of youth become unemployed every year, the whole society becomes unstable.”

All this is a challenge for big business. A study by HR firm SHL found that only 3.8% of engineers have the skills needed to be employed in software-related jobs in start-ups.

“The experience everyone has in the IT industry is that graduates need training,” said Mohandas Pai, former chief financial officer and board member of Infosys Ltd. and co-founder of private equity firm Aarin Capital. Pai, one of the Manipal Education and Medical Group companies, “trains a lot of people for banking. They are not job ready, they need to be trained.”

Even though companies are looking to recruit in areas such as electric vehicle manufacturing, artificial intelligence and human-machine interfaces, smaller Indian universities still teach older material such as the basics of the internal combustion engine, Patial said. “There’s a gap between what the industry is seeing and the curriculum they’ve gone through.”

India has regulatory bodies and professional councils to regulate its educational institutions. While the government has announced plans for a single agency to replace all existing regulators, it is still at the planning stage. The Education Department did not respond to a request for comment.

The Modi administration is also trying to address the shortcomings of the education sector in its new education policy of 2020, committed to improving the quality of its institutions. It has also started the process of allowing leading foreign universities to set up campuses in the country and award degrees.

Meanwhile, finding work remains a challenge for this generation. According to the World Bank, unemployment is a ticking time bomb as nearly a third of the country’s youth are not working, studying or undergoing training. Some are getting involved in crime and violence. Last year, angry youths facing bleak job prospects blocked rail traffic and highways, even setting some trains on fire.

Pankaj Tiwari, 28, says he paid Rs 100,000 for a master’s degree in digital communication because he wanted a job and a higher status in society. It was a huge outlay for his family, which has an annual income of Rs 400,000. Though his college had promised campus placements, no company turned up and he is still unemployed after four years.

“Had I gotten some training and skills in college, I might have been in a different situation. Now I feel like I wasted my time.’ “I have obtained certificates only on paper, but they are of no use.”

Comment by Riaz Haq on April 28, 2023 at 8:02am

#India's now most populous! In 1990 India & #China had about the same per capita annual income of $350. China’s is now 6X as large as India’s: $12,550 to $2,250. On #Modi’s watch India now lags farther. Can India now reap the #demographic dividend? @WSJ https://www.wsj.com/articles/can-india-cash-in-on-its-growing-popul...

For the first time since the mid-18th century, China isn’t the world’s most populous nation. According to United Nations projections, India claims that mantle this month as its population touches 1.425 billion.

Many in the West would like India to catch up economically with China and emerge as a powerful democratic counterweight in Asia. But for this dream to become reality, India must do a better job of educating its people and industrializing its economy.

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Not long ago, educated Indians largely considered the country’s burgeoning population a liability, not an asset. But many now argue that India’s young population gives it an edge over China that will persist for decades. China’s population has already begun to decline. The United Nations projects India’s to peak at 1.7 billion in 2064.

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To a large extent, optimism about India hinges on the idea of a “demographic dividend.” The theory, Mr. Eberstadt explains, is that this is a once-in-history chance for a population to move swiftly from short life expectancy and big families to long life expectancy and small families. In India, the labor force is growing more rapidly than the total population, which could translate into higher savings and investment rates and more rapid economic growth. South Korea and Taiwan are examples of Asian countries that swiftly made this transition from poor to rich.

Before India can dream of emulating their success, or China’s, it must acknowledge the size of the challenges it faces. Only about three-fourths of India’s population is literate, a level that China surpassed about 40 years ago. According to Mr. Eberstadt, this makes India the only country in history to have a vast pool of college graduates living amid hundreds of millions of working-age people who have never been to school. Moreover, over the past three decades regional disparities have widened. Kerala in the south has human-development indicators akin to Brazil. Bihar in the north looks worse than Cambodia.

Or take female labor-force participation, another measure of economic development. In China it’s more than 60%—roughly the same as in the U.S. and other wealthy countries. In India it has declined from 28% in 1990 to 23% in 2021. More than two-thirds of Chinese live in cities, which tends to boost productivity. India remains overwhelmingly rural—only about a third of the population lives in cities.

Industrialization also matters. Apart from a few resource-rich countries like Qatar and Saudi Arabia, all rich nations have successfully moved large numbers of people from farms to factories as they developed. Despite Mr. Modi’s calls to “Make in India,” manufacturing as a percentage of Indian gross domestic product declined from 16% in 2011 to 14% in 2021. As a proportion of employment, India’s industrialization peaked in 2002. Almost half of the Indian workforce makes subsistence livings on small family farms, compared with only about 25% of Chinese and 1% of Americans. In 2019, amid persistent protests, Mr. Modi rolled back ambitious agricultural reforms that would have helped modernize farms.


On the upside, India has massive room for improvement. If the country gets everything right it could grow robustly for decades. But to catch up it will need to redress many of its failures. “The critical thing to remember,” Mr. Eberstadt says, “is that demographic dividends don’t always get cashed.”

Comment by Riaz Haq on May 14, 2023 at 1:14pm

India: What the smartphone market tells us about its economy - BBC News


https://www.bbc.com/news/business-65491090

According to research firm the International Data Corporation (IDC), 31m smartphones were shipped in India during the first three months of this year.

That was 16% lower than in the same period of 2022 and the lowest first-quarter shipments in four years.

IDC highlighted that the sluggish demand came amid an uncertain economic outlook and as stockpiles of handsets remain high.

It also said that India's overall smartphone market will be flat this year after three quarters in a row of falling sales.

At the same time some analysts have pointed to the growing trend of "premiumisation" - when wealthier consumers move towards more expensive products.

"The premium segment's share almost doubled" in the first three months of this year compared to a year ago, according to Prachir Singh from technology market research firm Counterpoint.

However, as brands like Apple and Samsung benefit from this trend, demand for cheaper handsets made by companies like China's Xiaomi and Realme has been hit by the tough economic environment.

That end of the market is suffering as users take longer to upgrade their handsets, experts say.

The stark contrast between Apple's fortunes and the shrinking market for cheaper devices also reflects an uneven post-pandemic recovery in Asia's third largest economy.

"The K-shaped recovery is not allowing the consumption demand to become broad-based nor helping the wage growth especially of the population belonging to the lower half of the income pyramid," India Ratings and Research said.

"As a result, while there is visible demand for high-end automobiles, mobile phones and other luxury items, demand for items of mass consumption is still subdued," it added.

For example, sales of entry-level scooters were down by almost 20% in April this year, compared to the same month in 2019, before the pandemic hit.

This indicates that lower income customers "were are still hesitant to upgrade," according Manish Raj Singhania, the president of the Federation of Automobile Dealers Associations.

It also reflects the on-going problems in India's rural economy, which have been worsened by extreme weather events.

Lack of demand in rural areas has also been driving the decline in the consumer goods, like snacks and fizzy drinks, where growth has dropped to single figures after a year and a half of double-digit increases.

Household spending on goods and services, which had grown 20% year on year in March 2022, has also slowed sharply this year.

That came as India's consumers have been squeezed by rising interest rates and stubbornly high inflation.

Overall, the country's economic growth slowed to 4.1% for the first three months of 2023, the lowest growth for a year, official figures show.

Comment by Riaz Haq on May 28, 2023 at 6:34pm

Unemployment in India


https://www.cnn.com/2023/05/27/economy/india-economic-miracle-issue...

High #Unemployment in #India: While people under the age of 25 account for more than 40% of India’s population, almost half of them – 45.8% – were unemployed as of December 2022. #Modi #BJP #economy #poverty #hunger Hindutva #Islamophobia


Too few jobs, too many workers and ‘no plan B’: The time bomb hidden in India’s ‘economic miracle’

Sunil Kumar knows all about working hard to achieve a dream. The 28-year-old from India’s Haryana state already has two degrees – a bachelor’s and a master’s – and is working on a third, all with a view to landing a well-paid job in one of the world’s fastest growing economies.

“I studied so that I can be successful in life,” he said. “When you work hard, you should be able to get a job.”

Kumar does now have a job, but it’s not the one he studied for – and definitely not the one he dreamed about.

He has spent the past five years sweeping the floors of a school in his village, a full-time job he supplements with a less lucrative side hustle tutoring younger students. All told, he makes about $85 a month.

It’s not much, he concedes, especially as he needs to support two aging parents and a sister, but it is all he has. Ideally, he says, he’d work as a teacher and put his degrees to use. Instead, “I have to do manual labor just to be able to feed myself.”

Kumar’s situation is not unusual, but a predicament faced by millions of other young Indians. Youth unemployment in the country is climbing sharply, a development that risks undermining the new darling of the world economy at the very moment it was expected to really take off.

India’s newfound status as the world’s most populous nation had prompted hopes of a youthful new engine for the global economy just as China’s population begins to dwindle and age. Unlike China’s, India’s working age population is young, growing, and projected to hit a billion over the next decade – a vast pool of labor and consumption that one Biden administration official has called an “economic miracle.”

But for young Indians like Kumar, there’s a flip side to this so-called miracle: too few jobs and too much competition.

In contrast to China, where economists fear there won’t be enough workers to support the growing number of elderly, in India the concern is there aren’t enough jobs to support the growing number of workers.

While people under the age of 25 account for more than 40% of India’s population, almost half of them – 45.8% – were unemployed as of December 2022, according to the Centre for Monitoring Indian Economy (CMIE), an independent think tank headquartered in Mumbai, which publishes job data more regularly than the Indian government.

Some analysts have described the situation to CNN as a “time bomb”, warning of the potential for social unrest unless more employment can be created.

Kumar, like others in his position, knows all too well the frustrations that can build when work is scarce.

“I get very angry that I don’t have a successful job despite my qualifications and education,” he said. “I blame the government for this. It should give work to its people.”

The bad news for people like Kumar, and the Indian government, is that experts warn the problem will only get worse as the population grows and competition for jobs gets even tougher.

Kaushik Basu, an economics professor at Cornell University and former chief economic adviser for the Indian government, described India’s youth unemployment rate as “shockingly high.”

It’s been “climbing slowly for a long time, say for about 15 years it’s been on a slow climb but over the past seven, eight years it’s been a sharp climb,” he said.

“If that category of people do not find enough employment,” Basu added, “then what was meant to be an opportunity, the bulge in that demographic dividend, could become a huge challenge and problem for India.”

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