Global investor and author Ruchir Sharma spoke to NDTV’s Prannoy Roy about the history of India’s 75-year economy. He said: “In comparison to the rest of the world, India is no richer now than it was before independence, but it is on the rise”.
Here are the highlights of Prannoy Roy’s conversation with Ruchir Sharma:
*The progress of the Indian economy so far:
We started sixth and are currently sixth. India’s development path has been reshaped. The 60’s, 70’s were a terrible time for India. We’re back to the development phase from the 1980s.
* The per capita income compared to the rest of the world:
It’s V-shaped, showing that we rebounded. We’re where we were at the source data. The story about per capita income, the most important economic measure of a country’s success, was more revealing.
*We’re back in the global race. India’s per capita income has increased and its global ranking has risen.
We have made significant strides and boom in the 75 years of its history.
*China’s comeback far more spectacular:
In the 1990s, new cities sprang up in China and there was a boom. The number of cities that emerged was impressive.
In the case of India, in each rural area only 10 percent come from another district. Migration is very low, which is not the case in China.
It is very difficult to do what China has done, but we can still imitate it.
*Life expectancy so far:
In many indicators our growth has been impressive, in others it is comparable to others and in some a little less.
*Previous progress in training:
*India’s advances in economic freedom.
Compared to other countries, we are still not economically free. So the richer a country gets, the greater the economic freedom, according to the data.
*Indian stock market:
*The Indian stock market has seen many winners:
The number of new billionaires that we have in India has also increased.
*Government continues to depreciate:
The state’s share of the market has fallen from 15% to 5%. The government and taxpayers have lost wealth because equity market ownership has fallen.
*India’s billionaire boom – the third largest in the world:
Of those 140, more than 110 are new billionaires. India has produced more than 110 billionaires in the last decade and many of them come from manufacturing, healthcare and technology, sectors that India needs. It’s a very encouraging picture.
*The Journey of the Rupee:
The rupee has fallen Rs 75 in the last 75 years. Today the rupee is in a very favorable and competitive environment.
Where do we go:
*High growth story disappears:
There are hardly any countries with 7 percent growth. The peak was in 2007 when several countries grew more than 7 percent, now there are hardly any.
*Causes of growth slowdown: The 4Ds
These 4Ds are factors that slow down growth each year.
*India’s population growth declining:
*Other populations are declining faster than China:
*Participation of women:
The participation of women in our work will change the growth rate of our country.
*New criteria for economic success: India will do well to maintain 5 percent growth:
*Continued high growth: India has done well so far
*India on track to become 3rd largest economy in 10 years:
Based on these baseline figures, India will be the third largest economy by 2032.
*How long will it take for India to double its per capita income:
*India’s inflation performance improving:
We are better off now than ten years ago when we compare ourselves to the other countries. India has an inflation problem, but it is very much the problem of the rest of the world.
*Where is the stock market headed:
Indian stock trend is well above its long-term trend. If it gets more domestic investors, if it gets more investors, the yield could be higher, but assuming trends grow 8 percent 10 years from now.
*Competitive value of the rupee:
The rupee is very competitive today which should be good for our exports.
*India is digitizing faster than the world:
*Less leaks through digitization:
*India has Pro-Presidency: