What does the future hold for India?

India was once a poor country similar to China. However, China's growth rapidly outpaced India's following liberalization in the 1980s. Today, China is the second-largest economy in the world.

In 2014, India held the 10th position in terms of GDP. However, within a decade, we have climbed to the 5th position.

Soon, India will surpass Germany to become the third-largest economy in the world, as the service and manufacturing sectors are performing exceptionally well.

Factors to sort out to become a fully developed country by 2047:

So, are we the richest country? Guess what? TBH, we're the poorest country among the G20 nations. That sounds crazy, right? We stand at 143 out of 195 countries in terms of GDP per capita.

"GDP Per Capita" stands for Gross Domestic Product per capita, which is a measure of the economic output of a country divided by its population. It gives an indication of the average economic well-being or standard of living per person in a country.

The disparity between the total GDP and GDP per capita suggests that a significant portion of the economic output might be concentrated in the hands of a few individuals or groups, while the majority of the population has lower levels of income.

In the last 10 years, the nominal GDP per capita has grown by 100%. However, look at the figure below — 2.85 USD thousand is literally shameful for the 5th largest country in the world. It clearly shows the dominance of individuals rather than the population.

GFCF is the main reason why India has a GDP per capita of only "2.85 USD thousand".

Gross Fixed Capital Formation (GFCF) represents investments in fixed assets such as machinery, equipment, buildings and infrastructure within a country.

Persistent low levels of GFCF can have long-term consequences for an economy, including reduced competitiveness, slower economic growth and lower living standards.

India consistently remains below 35% of GDP since 2000. India needs to focus more on GFCF to achieve the milestone of becoming a developed country.

Earlier, our banks lent money to bad companies, resulting in non-payment of loans. The percentage of non-performing assets (NPAs) during 2014-2018 rose significantly, causing heavy losses in the Indian banking system.

In response, the RBI imposed limits on lending to companies. As a result, even very good companies struggled to secure loans from banks. This has acted as a barrier to rapid growth.

Always, there will be ups and downs in the economy, but the way a country shows resilience will determine its future. Here, the problem is not with India's growth but the growth of its people.

With the enticing GDP growth, India is now an attractive arena for investment and growth opportunities. FDIs have started pumping money into India, which will boost job opportunities, skill development and income generation.

Let's hope for improvements in GDP per capita ;)