One of the reasons is massive handouts as currently identified. The consequence of such can be far reaching which is not discussed here (could be a seperate topic)
Another consequence would be India might never become low cost manufacturing centre... Hence GDP growth could taper off some time in future (very very unlikely to be at 8%+ on sustainable basis without low cost manufacturing export boom)
One of the reasons is massive handouts as currently identified. The consequence of such can be far reaching which is not discussed here (could be a seperate topic)
Yeah agreed, i do expect such transfers to cross 1% of GDP in FY26
Another consequence would be India might never become low cost manufacturing centre... Hence GDP growth could taper off some time in future (very very unlikely to be at 8%+ on sustainable basis without low cost manufacturing export boom)
This would shrink India's labour advantage... Very unlikely India will get a chance to hold a high share in global textile export market
Ahluwalia contracts have said same that they are facing labour shortage.
thanks for letting me know