This can prove to be pretty bad for BJP in places like up , rural wage stagnation is pretty serious,
Now I can understand why bjp govt titled towards freebies, without it we might see stagnation in demands, which is already stagnated since Covid.
Manufacturing is quite disappointing, Red tape, outdated approach and lack of collusion between industry and academia is all to be blamed. And land acquisition is a whole another issue.
@sauntheninja has a habit of missing wood for the trees always, in his worldview he starts with the presumption it's always india's fault.
a few things to consider:
-India's manufacturing GVA is one of the highest growth rates among major economies of the world over the decade, along with soko, taiwan and turkey. soko and taiwan largely aided by electronics and semiconductors.
- India is growing in a contested environment, where the incumbent china manufactures for the entire world, which allows for them to manufacture at very low prices because of economies of scale. meaning if any manufacturer outside of china wants to compete they have to be willing to price their product competitive to chini prices. which effects manufacturing GVA worldwide.
-the way GVA is calculated it excludes tax. let's say a car is being sold for 10 lakh, for us 50% is tax, that leaves 5 lakh cost max which includes advertising cost and dealer commision, actual manufacturing GVA for a 10 lakh price car is less than 50% of the price tag.
- adding to the above point, Indian consumer is still a price conscious market, meaning value for money is given priority when decisions are being made to purchase. goods have to be set at low cost while being manufactured at scale, this further adds stress on manufacturing GVA number.
- gormint has largely left the topline for markets to decide, they are focussing on improving the bottomline, which is reducing manufacturing costs by improving logistics and ease of doing business.
as things stand today, manufacturing GVA growth continues to happen by widening the manufacturing base by including new verticals, Indian companies going up the value chain and exports. it will be slow, capacity building takes time.
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