2021-30 might become the promising decade for India's Economy. We started researching on what lies ahead, which are the factors that could brings up the indian economy and sectors that will see an exponential growth. We present an article series focused on this research. Let's start with Reasons that align with Employment and Markets.
1. Indians are Young and Independent
- Average Age of Indian is 28.4 Years
- About 26% ( 30 crore people which is roughly equal to US Population) are under the age of 14.
- Indian Employment to population ratio stands at 43%.. -Source
As per the Statistica Predictions, Indian Median Age is expected to jump from 28.4 in 2030 to 38.1 in 2050 which is roughly the Median age of US People currently.
The Median Age of Country's population has strong co-relation to economy growth especially from 20s to 30s as people earn and spend more in their 30s than early 20s.
Unemployment rate in India nears to zero post age of 35
Interestingly, Unlike other nations, Unemployment reduces down to less than 3.5% post 35 in India- Source, Meaning the employment rate is expected to spike up in the coming decade.
India has the highest share of Self Employed people
Although the number is on decline over 50% of Indian Workforce are Self-employed mainly because of agriculture
The number in developed nations is extremely low- about 3% in United states and 15% for Canada
Majority of Women are not working
In addition to that, Majority of Indian Women are not working, Only about 25% of Indian women are in working class out of which nearly 80% are working in rural areas, Where as the numbers exceeds 50% in most developed countries.. This if goes on positive side could boost up the GDP by 20-30% easily.
2. 6th Biggest Global Market
Indian Stock Markets is the 6th biggest markets and is currently experiencing its peaks With Most Consumer Brands like Flipkart, Nykaa, Paytm, LIC entering the IPO.
The Inflated prices when it comes to real estates and lately stock market are crazily more than other markets. The Indian Tier 1 city real estate prices comes close to that of developed nation counterparts.
Most of Indian Stocks are easily manipulated even under presence of regulatory bodies like SEBI.
India's Demat Penetration still very low at 4.1% as of 2020 and growing at very fast pace
FY 20-21 saw 25% increase in New Demat accounts, India's Demat Account Penetration is expected to Grow to 12% by end of 2030. Indian stock Market is attracting lot of NRI and Foreign investors too
India has an exponentially growing affinity towards mutual funds. India's Current AUM Stands at 31.4 Lakh crores which grew 41% YoY,
With Fixed Deposits (below inflation levels) and Real estate seeing low growth rate and with the high Promotion by Indian Unicorns like Groww promoting mutual funds, Mutual Funds AUM is expected to Grow by 40% YOY. Current Mutual Funds AUM to GDP ratio stands at 15% for India and 75% for developed countries, Considering the historical 30% increase in AUM and 10% increase in Indian GDP, At the end of 2030, India's AUM to GDP ratio will be 95% which indicates 2021-30 to be the best period of Indian Mutual Funds Growth matching that of the developed countries.
With Mutual Funds investing in stocks, the Indian Stock market is expected to see massive growth especially the Mutual Funds Favourite stocks.
3. Recursive Cheap Educated Labour
Population adds as positive here, As per Global Services location Index, India is placed as Top country for list of Outsourced services, India offers price price competitiveness and people skills that no other countries can match. Although Skills of Indians are growing fast.. but there's always low key section of unemployed graduates that serves the purpose
Source
Although AI and Machine learning can revolutionize the Outsourcing services world, Human Intervention is must to maintain the legal implications and support.
4. India will go Electric
With Ola taking the lead with producing 10 Million Electric two wheelers every year also employing 10,000 women. Go Electric campaign is aiming at reducing India's biggest import Crude petroleum by mostly aiming at replacing the fuel based vehicles to electric vehicles and then with electric cooking.
This Provides lot of Benefits to India which are
- Reduces Air pollution and Global Warming
- Drastically reduces the Fuel imports
- Low running cost
Tata Motors, Mahindra Electric joining hands and Majority of States offering no road tax for electric vehicles, India is pushing to hard to achieve 100 percent electric mobility by 2030 which if done marks as major move in Indian Economy.
The Series is to be continued
Next: Agriculture and Exports, Digital Adoption, Family Dynamics, Western Adoption and Tier 3 Booming, Wages Industries that will exponentially.
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