Each year millions of young Indians, in search of job opportunities need to shift base from their ancestral homes in small towns and villages across India to bigger cities and metros and start nuclear families. This is resulting in the breakdown of our age-old joint family system which may not be the best news for our social structure, but for the economy it augurs well. It means that now many more households are creating demand for appliances, vehicles, real estate, cellphones, and so many other goods and services
It is both cause and effect! The more jobs are created, more is the demand for goods and services resulting in even more jobs and even more demand. With rising incomes, growing aspirations and increased choices for consumers, the high pace of growth for the Indian economy seems to be sustainable for a few more decades
The key ingredient at the core of our sustainable economic growth is our young population! While we have one of the youngest demographic profiles across the world, children below working age, who are now in the group of new-born-to-school / college-going are also the largest in number! This means regular supply to the working age population and to growth for many more years
This phenomenon is very different in other large world economies where aging populations have more dependents to take care of thereby slowing down demand and economic growth
the amalgamation of factors of excellent demographics, high savings rate, rich natural resources, large availability of skilled English speaking manpower, ever-improving competitiveness, low penetration of goods and services, rising affordability and low external dependency make India a long term secular growth economy
Can you spot the opportunity?