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India adopted a financial year starting on April 1 in 1867, during the British rule, when James Wilson was the Finance Minister. Not only are the dates arbitrary, the yearly accounting is arbitrary because it comes from agriculture. While other institutions dating back to early agriculture, such as patriarchy, have been challenged, the idea of an annual reckoning has persisted for centuries with little resistance. Even so, both longer and shorter cycles have advocates. Elected office terms last for up to five years for the same reason central planners come up with five-year plans: it is considered the minimum time needed to have a significant impact. Market-led or not, the path of an economy is guided by variables that can take up to seven years to change and adjust. Similar logic underpins the claims of business gurus who insist that it takes years for a CEO to be anything more than a tactical strategist. Hence the Hindi term “quarter sequarter tak,” acerbic reference to the market pressure companies face to achieve sparkling quarterly results. It’s important to take a long-term view – that’s why Prime Minister Narendra Modi’s goal of “Viksit Bharat” is so significant. It allows Indians to focus on how to achieve this goal. It would be better for India to become a developed nation in 2047 and celebrate the century of freedom.
India adopted a financial year starting on April 1 in 1867, during the British rule, when James Wilson was the Finance Minister. Not only are the dates arbitrary, the yearly accounting is arbitrary because it comes from agriculture. While other institutions dating back to early agriculture, such as patriarchy, have been challenged, the idea of an annual reckoning has persisted for centuries with little resistance. Even so, both longer and shorter cycles have advocates. Elected office terms last for up to five years for the same reason central planners come up with five-year plans: it is considered the minimum time needed to have a significant impact. Market-led or not, the path of an economy is guided by variables that can take up to seven years to change and adjust. Similar logic underpins the claims of business gurus who insist that it takes years for a CEO to be anything more than a tactical strategist. Thus, the Hindi term “quarter sequarter tak” poignantly refers to the market pressure companies face to achieve sparkling quarterly results. It’s important to take a long-term view – that’s why Prime Minister Narendra Modi’s goal of “Viksit Bharat” is so significant. It allows Indians to focus on how to achieve this goal. It would be better for India to become a developed nation in 2047 and celebrate the century of freedom.
As Finance Minister Nirmala Sitharaman said at the Mint Summit on Saturday, one billion citizens are expected to be in the middle-income bracket. At the same time, our labor market has been debating the ways in which it will play a key role. Not only must our economy grow at an average rate of around 8% a year, but this growth needs to be inclusive enough to increase the size of most of our population by 2047. A broad look at our current employment landscape puts these significant demands into context. Although official surveys find improvements after the pandemic, overall labor force participation rates (particularly among women) remain low, there are too many self-employed people, too few regular workers, and the thorny problem of unemployment (mainly unemployment) has led to rising wages. Weakness. among younger people) have shown only modest recovery from COVID-19. The typical exodus of workers from farms (our largest employers) to low-skilled service and construction jobs has also suffered a setback over the past five years, and new factories are only beginning to pick up the slack. This is a far cry from the state of human resources in rich economies, but exactly how far behind we are is difficult to determine. Data offers a bleak picture at best, with labor trends also hit by shocks such as India’s 2016 note ban and the 2020 lockdown. The India Jobs Report 2024, released by the Institute of Human Development and the International Labor Organization, offers a bleak view of our situation. Among other statistics, four out of five young people will be unemployed by 2022, with an astounding number of those who are educated being less able to find work than those who are illiterate. But its weaknesses cannot be ignored. Oddly, the time range of its study ranged from 2000 or 2005 to 2022. Because it lacks evenly spaced data points and ends in a COVID-19 year, its trend depiction lacks a reliable basis. Even its pessimism about the performance of our educated youth could be challenged.
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As Finance Minister Nirmala Sitharaman said at the Mint Summit on Saturday, one billion citizens are expected to be in the middle-income bracket. At the same time, our labor market has been debating the ways in which it will play a key role. Not only must our economy grow at an average rate of around 8% a year, but this growth needs to be inclusive enough to increase the size of most of our population by 2047. A broad look at our current employment landscape puts these significant demands into context. Although official surveys find improvements after the pandemic, overall labor force participation rates (particularly among women) remain low, there are too many self-employed people, too few regular workers, and the thorny problem of unemployment (mainly unemployment) has led to rising wages. Weakness. among younger people) have shown only modest recovery from COVID-19. The typical exodus of workers from farms (our largest employers) to low-skilled service and construction jobs has also suffered a setback over the past five years, and new factories are only beginning to pick up the slack. This is a far cry from the state of human resources in rich economies, but exactly how far behind we are is difficult to determine. Data offers a bleak picture at best, with labor trends also hit by shocks such as India’s 2016 note ban and the 2020 lockdown. The India Jobs Report 2024, released by the Institute of Human Development and the International Labor Organization, offers a bleak view of our situation. Among other statistics, four out of five young people will be unemployed by 2022, with the educated more likely to find a job than the illiterate, a staggering figure. But its weaknesses cannot be ignored. Oddly, the time range of its study ranged from 2000 or 2005 to 2022. Because it lacks evenly spaced data points and ends in a COVID-19 year, its trend depiction lacks a reliable basis. Even its pessimism about the performance of our educated youth could be challenged.
Given the value of long-term planning, India’s labor record is sadly too patchy to give us a snapshot that can serve as proof of reality. It is undeniable that our markets remain rigid and that we face the risk of a “middle-income trap” at some point, and if we underinvest in education and health care, our 2047 targets may not be met. All in all, this requires fiscal solutions. Just like infrastructure, it cannot be left to market forces.
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