Why job creation and job quality are the two biggest challenges facing India
India's per capita net national income (NNI) for 2022-23 stands at Rs 1.7 lakh. Despite this impressive growth, the perceived increase in wealth is not universally experienced due to persistent disparities in wealth distribution.
Workforce Struggles
“Despite growing towards lower levels of poverty, India is alarmingly moving towards a struggling working class at risk of falling into poverty. The latest joint report of ILO and IHD indicated that between 2012-2022, the average monthly real earnings of regular salaried workers declined by 1 percent each year, pointing towards poor-quality employment,” Chandra Shekhar, Partner, Posterity Consulting said.
Consumption Patterns and Inflation
As per a TOI report, the consumption pattern of India is similar to that of the US in the 1960s. The share of India’s domestic consumption to GDP was around 60% in 2022. As per the report, the Indian population spent nearly 30 percent of their income on food, followed by transportation, housing, and then on clothing, education, health, etc. In comparison, the US spends nearly 50 percent of their income on services, followed by healthcare, housing, and then food.
“India has one of the most affordable and subsidized healthcare and education systems in Asia, hence the low expenditure. However, the Indian consumption share is highly skewed towards basic necessities like food. Even with a growing economy, an average Indian consumer still spends more on necessities and less on surpluses, comfort, and luxury. With the NNI increasing, it is
