Economy

Indian middle class will drive internal

consumption: Adani

What’s happening in the Indian economy? is growth falling? And

consumption? Is India’s consumption story at risk? What can the
government do? Why isn’t it doing what it can?

If you are an active participant in the Indian economy—a buyer or a

seller, an employee or an employer, a borrower or a lender or a
student chances are that you have asked or been asked these
questions.

This news report is an attempt to provide some answer to these

questions and can offer some clarity.

NEWS ANALYSIS:

 the Indian middle class is going to insulate the economy from downswings and drive
“unmatched rate of internal consumption” in the next three decades.“Just the retail
segment by itself will be worth $10 trillion,” he said.

 The country has tremendous opportunity globally in the next few decades.Yes, There
will be challenges that will require healthy debates.

Okay let us understand the challenges involved or say points in against of the topic:

consumption-driven GDP growth may also be unhealthy for Indian economy

 “Consumption-led growth can arguably lead to a slackening of future growth if it entails
growing imbalances due to limits to capacity creation, and rising debt burdens,
particularly for households."
 A consumption-driven growth also fuels inflation.

 But irrespective of this The macroeconomic factors favour our country. The global GDP
is pegged at $85 trillion. Of this, India’s contribution is $2.8 trillion. When the global GDP
reaches $170-180 in 2050, the Indian GDP will be at $28 trillion, contributing over 15 per
cent to the global economy,”

 This requires structural reforms, which are getting in place and these reforms lay the
foundation for accelerating our national growth,” he added. “By 2050, India would have
created several of its own trillion-dollar value companies.

 There will be a periods of slowdown that every large economy goes through. There will
be difficult challenges for India to overcome but the scale of the opportunity that awaits
India is huge,”

 Cost of energy
there is a correlation between energy economics and growth of nations, the marginal
cost of electricity will continue to drop sharply as the renewable energy boom
accelerates. “India will be the least expensive producer of renewable energy,

 We are very strongly positioned to take advantage of two structural global changes that
are expected to happen. The pandemic has shown that even hyper efficient supply
chains are hyper fragile.