India mustn’t skip the manufacturing train. Services alone won’t tap into demographic dividend
In the past decade, India’s nominal GDP grew 80 per cent to $3.5 trillion by 2022, raising its global share by 1 percentage point to 3.5 per cent of global GDP. Such growth has lifted GDP per capita to $2,500 or by 64 per cent, thanks to government infrastructure spending on the likes of highways and renewable energy, effective disbursement of social welfare programs such as free food to 813 million people, corporate tax cut, and FDI incentives.The current account deficit (CAD) has narrowed, and capital allocation has become more efficient. India’s external balance has shifted from being fragi...