Thursday, September 26, 2024

Advice from critics.

"On September 25, the country observed 10 years of Prime Minister Narendra Modi's game-changing 'Make in India' initiative that is transforming India's industrial landscape by encouraging job-creating investments," so that "The world is now looking at India as a manufacturing destination. And the key reason is India's own competitive advantage and robust economic fundamentals," wrote Minister of Commerce and Industry Piyush Goyal. "The unemployment rate in the country for those in the 15 years and above category remained unchanged at 3.2% in 2023-24," according to the Periodic Labor Force Survey (PLFS). The labor force participation rate (LFPR) for women rose to 41.7% from 37%, while that for men rose to 78.8% from 78.5% in 2022-23. Youth unemployment for 15-29 years ago group rose minimally 10.2% from 10%. TOI. LFPR is a measure of those already working or actively looking for jobs. Investopedia. "The number of Indian households with an annual income of more than Rs 3 million ($35,885) per annum will increase by 113 million by the financial year 2031," while "the number of middle-class households having an income between Rs 0.5-1 million annually will also increase by 283 million," according to U Grow Capital. ET. Of course, household income is not the same as per capita income which is a measure of income per person. Investopedia. A bit of propaganda is always useful. According to the World Bank, rich countries have a gross national income (GNI) per capita of over $14,005, poor countries have a GNI per capita of less than $1,145, lower middle income countries are at $1,146-4,515, while upper middle income countries are at $4,516-14,005. "With a per capita income of around $2,400, India is among the lower middle-income countries." "At the current growth rate, India will take 75 years to reach a quarter of America's per capita income." "In India, Mexico and Peru, firms that operate for 40 years typically double in size, while in the US, they grow seven-fold in the same period." With an ageing population, India may not escape the middle-income trap before it grows old. BBC. The Government of India provided a $10 billion subsidy for semiconductor manufacturing in India and will offer another $15 billion of "capital support for raw materials and gases used in chip manufacturing." TIE. However, "Micron's packaging plant in Gujarat is an example of what not to do." "Micron continues to fabricate chips in the US and China, leaving India to handle only the final stages of assembly, offering little in terms of technology transfer or advancement in high-value areas like chip design and fabrication," wrote Vivek Wadhwa. In short, Micron is treating Indians as coolies. "Would this money not be better spent in opening tens of thousands of high-quality primary schools, thousands of high quality high schools and hundreds of top-notch universities?" asked Prof Raghuram Rajan. The government should ask its critics what they think and whether it should do more, advised Prof Rajan. ET. Any criticism is anathema to this government and its legions of robotised Bhakts (DH). No one will volunteer to criticise. Be safe. Be a sycophant.  

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