Key Issues in the Indian Economy, Business, Industry, and Corporate Sector

1. Post-Pandemic Recovery and Uneven Growth

  • Overview: India’s economy roared back after the COVID-19 slump, with GDP growth hitting 8.4% in FY22 (2021-22) and 7.2% in FY23 (2022-23), fueled by pent-up demand and government stimulus. However, by FY24 (2023-24), growth moderated to around 6-7%, exposing an uneven recovery.
  • Key Angles: Rural consumption lagged as agricultural distress persisted, while urban centers thrived with booming stock markets (Sensex crossed 80,000 in 2024) and a startup frenzy. Journalists like Sucheta Dalal highlighted how this disparity masked deeper vulnerabilities, such as declining household savings and rising debt.
  • Narrative Hook: “Boom for Some, Bust for Others” – How India’s recovery left millions behind despite headline growth.

2. Inflation: The Silent Tax on the Common Man

  • Overview: Inflation surged from 5.5% in 2021 to over 7% in 2022, peaking at times due to global supply shocks (Ukraine war) and domestic food price volatility. Even as it eased to 5-6% by 2024, the cumulative impact battered households.
  • Key Angles: The Reserve Bank of India (RBI) held interest rates steady at 6.5% since early 2023, prioritizing inflation control over growth, a move debated fiercely in columns by Tamal Bandyopadhyay and others. Rural India bore the brunt, with vegetable and fuel prices squeezing budgets.
  • Narrative Hook: “The Price of Survival” – Stories of families and small businesses navigating a high-cost economy.

3. Jobs Crisis: The Missing Dividend

  • Overview: Unemployment remained a stubborn issue, with the Periodic Labour Force Survey (PLFS) showing a drop from 7.5% in 2020-21 to 6.6% in 2022-23, yet youth joblessness (15-29 age group) hovered above 15%. The promise of India’s demographic dividend faded.
  • Key Angles: IT giants like TCS and Infosys thrived, but automation and global slowdowns curbed hiring. Meanwhile, manufacturing—touted as a job engine via the Make in India campaign—grew too slowly to absorb labor. Journalists like Mitali Mukherjee spotlighted the human toll of this gap.
  • Narrative Hook: “Waiting for Work” – The generation caught between ambition and opportunity.

4. Corporate Giants and Market Concentration

  • Overview: The last three years saw conglomerates like Adani and Reliance tighten their grip across sectors—ports, energy, telecom—while smaller firms struggled. Adani’s meteoric rise (and scrutiny post-2023 Hindenburg report) became a lightning rod.
  • Key Angles: Corporate profits soared (Nifty 50 companies doubled earnings from 2021-2023), yet private investment lagged, puzzling analysts like Andy Mukherjee. Tax cuts from 2019 failed to spur broad capex, raising questions about crony capitalism and market fairness.
  • Narrative Hook: “Titans and Tensions” – How a handful of players reshaped India’s business landscape.

5. Taxation and Policy Whiplash

  • Overview: Tax policy oscillated between incentives and burdens. The Production Linked Incentive (PLI) scheme (2021-2023) boosted electronics and pharma, but 2024’s budget hikes—capital gains tax, STT—dampened market sentiment.
  • Key Angles: Businesses praised GST simplification (e.g., e-invoicing by 2023), yet compliance costs soared for SMEs. Public frustration over “tax terror” grew, a theme R Jagannathan explored in Swarajya, linking it to stalled wealth creation.
  • Narrative Hook: “The Tax Trap” – Balancing revenue needs with economic vitality.

6. Global Integration vs. External Shocks

  • Overview: India aimed to become a $5 trillion economy by 2025-26, but global disruptions—U.S. rate hikes, China’s slowdown, and Russia-Ukraine fallout—tested its export goals. Merchandise exports dipped in 2023, though services held firm.
  • Key Angles: The rupee weakened from 75/USD in 2021 to 84-85/USD by 2024, raising import costs. Shereen Bhan’s interviews with exporters revealed struggles to compete with Southeast Asia, despite “China Plus One” opportunities.
  • Narrative Hook: “Open Doors, Rough Seas” – India’s global ambitions in a turbulent world.

7. Sectoral Spotlight: Winners and Losers

  • Manufacturing: PLI drove mobile phone exports (from $3 billion in 2019 to $11 billion by 2023), but overall growth lagged at 7-9%, hampered by logistics and power costs.
  • Real Estate: Post-COVID oversupply and high rates stalled recovery, with unsold inventory piling up in cities like Mumbai.
  • IT/Services: A $250 billion industry by 2023 faced AI disruption fears, a shift Ira Dugal tracked closely at BloombergQuint.
  • Narrative Hook: “Patchwork Progress” – Dissecting India’s sectoral scorecard.

8. Structural Fault Lines

  • Overview: Beneath the growth story lay persistent issues: low female workforce participation (below 25% in 2023), declining savings (from 7.3% of GDP in FY22 to 5.3% in FY23), and infrastructure bottlenecks despite $1.4 trillion in planned spending (2019-2025).
  • Key Angles: Rural distress and urban inequality fueled debates about inclusive growth, a recurring theme in Udayan Mukherjee’s post-TV commentary. Education and health gaps slowed human capital gains.

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