As India emerges as a major global economic player, its economic structure is exhibiting signs similar to China’s, raising concerns. While India’s GDP growth remains robust at 7.3%, a shift is observed in the economic dynamics. Private consumption, traditionally strong, is slowing down, increasing reliance on debt, particularly unsecured personal loans. The push for capital investment and infrastructure development resembles China’s historical approach, but questions arise about its impact on mass consumption and job creation. The challenge for India is to ensure inclusive growth and avoid overreliance on a small affluent class.
India’s Economic Shift Raises Concerns: Debt Dependency and Lagging Consumption
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