India has just overtaken Japan to become the 4th largest economy in the world. But what does this mean for the average Indian? Very little.
While millionaires become billionaires and lakhpatis turn into crorepatis, most of us remain where we were. A staggering 60% of Indians”about 800 million people”still rely on free rations, and nearly 90% of the workforce is in the unorganised sector, without job security or benefits.
This is the real picture of India’s economy. Despite the impressive headline, the lives of most workers and their families remain unchanged. Consider this: Japan's per capita GDP is 11 times higher than India’s, and for every 1,000 people, Japan has 660 cars while India has just 33. Clearly, the average Japanese is far wealthier than the average Indian.
However, there is a silver lining. India ranks 3rd globally in Purchasing Power Parity (PPP), meaning the rupee stretches further within India than many currencies do in their own countries. For example, a bunch of spinach may cost Rs 10 in India but the equivalent of Rs 100 in Canada. So yes, things are cheaper”if you have a steady income. That's the real challenge.
