IN LAST SIX YEARS, BOTTOM 20 PERCENT’S INCOME HAS DECLINED BY 20 PER CENT
Dr. Nilanjan Banik
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2023-05-01 12:29
As per the State of World Population Report published by the United Nations Population Fund, India will become the most populous country in the world in the summer of 2023. At this point, India also has a relatively 'younger' working-age population compared to China. Depending upon how one read the data, this can be a boon or bane, as labour is an important component of growth in national income (read, GDP). If the labourers are productive, then their income and the economy grow. Much of the GDP growth that occurred among the emerging Asian economies during the second half of the last century was through increased labour force participation. These countries, for example, China, South Korea, Singapore, Taiwan, and Vietnam, were able to absorb labour from the low-productive agricultural sector to the high-productive manufacturing sectors. Much of the supply of white goods like mobile phones, air conditioners, refrigerators, computers, etc. are manufactured in these countries, thereby making their economy transition from low to middle and high-income economies.