Why is India growing so fast? | CNBC Explains

as China's economic growth slows people are looking for the next big driver of growth and India seems to fit the bill the IMF estimates that India will be the fastest growing major economy in the world this year which is why companies like Walmart are paying top dollar for business deals in India it's projected to expand by seven point four percent putting it ahead of China so what's driving India's growth India has a population of 1.3 billion making it the second most populous country in the world it's on track to grow faster even surpassing China's population by 2024 and the big population is also really young India is on track to reap a handsome demographic dividend this effect happens when a country's working age population is larger than the non working age population by 2050 India is expected to have a working population of more than 1 billion while many Asian countries are aging in this population has a median age of only twenty seven point three years compared to China's 37.6 and Japan's forty seven point one since Prime Minister Narendra Modi came into power in 2014 his government has attracted record foreign direct investment Modi has been credited for his strong reform agenda to improve India's business environment the World Bank gave a nod to his efforts improving India's ranking and its ease of doing business ranking from 130 to 100 but India's growth is like my cricket game full of promise but it hasn't quite delivered yet India grew faster than China between 2014 and 2016 but lost its fastest growing major economy title last year within the country domestic investment has fallen as businesses have been hesitant to invest in Dias exports have also dropped since Modi came into power despite his made in India campaign meant to fire up the country's manufacturing industry economists say that domestic developments are to blame in November 2016 the government's withdrawal of 500 and 1000 rupee notes shocked the country 86 percent of the country's currency could no longer be used in shops then while businesses were trying to recover from the policy the government implemented the goods and services text in July 2017 it's the biggest tax reform since India's independence consolidating in these many taxes into a single structure but it's also betting businesses for instance sure coconut oil be taxed as a cooking product or a hair product is a chocolate course a biscuit a chocolate or a biscuit the two policies on text and the monetization hit consumption and investment heart despite most economies agreeing that the goods and services tax will bring long-term benefits for India this year India is likely to keep its title as the world's fastest growing major economy but its fastest fast enough former IMF chief economist and India's former central bank governor Raghuram Rajan has said the India needs to grow much faster India has about 1 million people entering the labor force every month so that's a big number that has to be absorbed which means we need significantly more growth to get them good jobs but India's growth this year faces serious challenges top ratings agencies like Moody's and Goldman Sachs have cut their growth projections for India why is that one reason is rising oil prices that could mean higher import costs and higher inflation India's the world's third biggest oil consumer after China and the United States because of low oil prices which fell to about $40 per barrel in 2016 Modi's government could put Texas on patrol and diesel India has become dependent on these Texas which made up 17% of India's total revenue last year the Indian rupee is also the worst-performing currency in Asia this year and it's expected to weaken further this may look like just a humble pakora but this Indian Street snack has ignited a huge debate about jobs in India this year Modi was asked about perception that he failed to create more jobs for young Indians his response official statistics do not capture the true number of people working such as pakoras ellis his comments caused outrage in India because there is a lot of anxiety for stable salaried jobs more than 25 million people a number greater than Australia's population applied for less than 90,000 jobs on India's state-run railways for the most junior role and Mumbai police force 200,000 people applied for 1137 openings many multinational companies are excited about India dreaming about selling fast food smartphones and fast fashion to a rapidly growing middle class but right now that middle-class with income levels of similar populations in cities like Hong Kong and Singapore is extremely tiny estimated to be just about 1 percent of India's population the double whammy of a weaker currency and growing oil prices are going to hit India hard despite its challenges India continues to grow quickly but will it be fast enough to benefit its people hey everyone is sinem thanks for watching if you want to check out more CNBC videos click here and here as always feel free to leave any suggestions for future videos in our comment section don't forget to subscribe and see you next time

Author Since: Mar 11, 2019

  1. 7.7 % gdp is a sure shot proof that we are at a better poised spot to massively improve , but will we make it through by 2050 and capitalize remains to be seen.Ideally we should hit 10% GDP consistently to be safe and sound before 2025.

  2. ഇത് ഒക്കെ modi യെ കുറ്റം പറഞ്ഞിരിക്കുന്ന kerala മാമ media
    കാരു വല്ലപ്പോഴും ഒന്നു കാണണം
    എന്ന് അറിയിക്കുന്നു

  3. I think u are wrong miss! We are suffering now. I don't know about other countries but in India u can't buy a single meal will 100 bucks!.

  4. India is actually very dirty. We have lots of Indians in Finland and they are always smell bad like curry. A friend visited India and she got sick the day she landed there. And she traveled to 48 countries and said India was the worst – Men stare, water is polluted, air is bad, no proper toilets, dust, poverty. Worst place to visit ever according to her.

  5. Because it is looting US industry on H-1B industrial spy program, and because millions of thief H-1B Indian workers in th US remit $16 billion annually back to India. America does all the work and pays all the R+D costs, but Indians get all the jobs then remit billions to India. Do you know how much USD are worth in Indian Rupees? $400,000 is a king's ransom in India. Enough to retire on at 30 for life.

  6. Indian has the longest history of fighting and killing over religion and nowdays it's back to dark ages beacuse of Hindu Hitler

  7. The young population of India . Want to be a job creator rather than being a job seeker there are many startups underway and many are succeeded . We believe in sustainable development because due to population bombing almost every resource of our country is at it's worst condition . Like we can take the example of ganga

  8. ♥️ ಜಯ ಭಾರತ ಜನನಿಯ ತನುಜಾತೆ 🍁
    🇮🇳 ಜೈ ಹಿಂದು ಜೈ ಭಾರತ ಮಾತೆ 🇮🇳

  9. Be careful with Trump, you need to unite Asia to protect your interests from US. The US is watching and thinking to come up with idea to destroy it.

  10. Ye apna lag agenda chla rhe he ye puri duniya ko influence krna chahte he ki india ki growth jada to he but yha pe invest na kre or market is losing etc. Etc.

  11. i love India! I only know that it smells great there , where cars do not honk at each other, people are very polite and always help out one another, the streets are very clean and no rubbish or shit can be found, people can have access to clean water and just drink from the river due to no pollution at all, the guys over there are very respectful of the female gender, which in turn have low or no crimes at all.India is best country to stay in! India No.1 ! Modi Modi! Support Modi , and your bread wont turn mouldy! I love India!!!!!!!!

  12. India seriously needs to invest more in infrastructure and cleanliness. Tourism industry in india would be massive if these two things are taken into consideration and improved

  13. Kalanithimaran Network is equal to 100000000 Nuclear Weapon

    Kalanithimaran Network silently slowly wipeout UK and took 196 countries network Press Media Film SPY Advertisement Telecom Internet Information Technology Software Hardware banking shipping Aeronautical Petrochemical weapon textile hotel sex Bioweapon Medical Medicine payment bank investment banking trade business commerce industry machine material heavy equipment vehicle car bike house infrastructure government official mp mla pm president of various countries Government CIA IMF airline supply chain beverages food sports entertainment home appliances electrical electronics cable mobile transport road bridge chain man people SPY TV radio much more definitely UK cannot handle Kalanithimaran once UK Kingdom Empires wipeout Kalanithimaran also took JPMorgan BBC IBM Microsoft Google NBC IMF CIA unofficial or official near future by Kalanithimaran next target for Kalanithimaran must be China only

    UK China USA Singapore UAE Malaysia Korea Africa countries Golf countries France Germany Italy Finland Japan Russia may have Defense Army Navy AirForce Nuclear Weapon but Kalanithimaran Network expand Government in UK USA China Russia

    UK USA Japan Brand like Vodafone etc can Advertisement huge but can't BOOM yet Kalanithimaran business success in any countries, UK failure in Tamilnadu and India because of Kalanithimaran but Kalanithimaran success in UK USA UAE Singapore Malaysia Korea China Africa countries Golf countries American countries Asia Pacific countries Australia Japan Russia much more

    Kalanithimaran induce USA to war with Golf countries for Kalanithimaran TRBalu GAIN Petrochemical from Golf countries, USA win war but USA people can't stay in hot Golf region Kalanithimaran took Golf countries Petrochemical Industries to various weapon Industries, plastic, fuel, gas, paint, tar, chemical and like this induce conflict between countries and Kalanithimaran element become MP MLA CM PM President CEO CFO of various countries Government in fact Finland Fiji Australia Canada Scotland Ireland UAE USA UK Singapore Malaysia India Korea Russia various countries Government decision and MP MLA CM PM President CEO CFO appoint by Kalanithimaran

    who is real global power

  14. India is fastest growing economy this statement is so old ……..and even Rahul gandhi became old and still india is fastest growing economy fuck the bs…

  15. If India has spending population just 1% that of Singapore or Hong Kong, then why India is buying as many smartphones, gadgets, equipments almost equivalent of China? Think how you have presented data without study???

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