The Indian economy is approximately $4 Trillion US Dollars and is expected to rise to $5 Trillion US Dollars by 2030, according to official government and NITI Aayog reports.

It’s good to see the Indian economy growing at over 7%, but here’s the catch—has the average family income or per capita income actually increased? The answer might be: No.

The Indian government has launched multiple schemes to support MSME's and medium-sized organizations, helping them grow rapidly. Initiatives like Make in India and the PLI (Production Linked Incentive) scheme are boosting the electronics, automotive, textiles, and pharma sectors.

Major global brands like Apple, Samsung, and Foxconn are investing in India. While we proudly say we're "Making in India," the reality is—we still rely heavily on imports for chip manufacturing. Indian youth lack the cutting-edge skills truly required for high-tech sectors.

Companies like TSMC (Taiwan Semiconductor Manufacturing Company) are leading the world in chip fabrication. Their workforce has a world-class skill set, and even they face shortages of such talent.

While our government is putting efforts into improving the skill base, the big question is—are those efforts reaching everyone? Many families still prefer private schools over government schools, even though the latter have good infrastructure and well-qualified faculty.

Meanwhile, the income gap between the rich, middle class, and poor continues to rise. The recently announced 8th Pay Commission (effective January 2026) is a great initiative to increase disposable income for central government employees. For instance, clerks' salaries are expected to rise from ₹18,000 to ₹56,000.

But what about the top-level employees? A senior central government employee earning ₹2,50,000/month could see hikes ranging from ₹4,57,500 to ₹6,15,000 per month!

That’s massive! While this hike increases spending power, it may also widen the economic gap. As resources flow disproportionately, more people gravitate toward government jobs.

India’s unemployment rate is already at an all-time high, and many young aspirants spend years preparing for government exams. Sadly, a large number neither land a government job nor get industry-ready for private-sector roles.

In parallel to these employment challenges, India is also working on strengthening its financial positioning globally. One of the strategies is to stabilize the value of the rupee through international trade mechanisms. A recent example is the India-Russia trade deal, executed without involving the US Dollar.

This helps India reduce dollar dependency and enables smoother international trade for countries like Russia. On the brighter side, Indian goods exports hit a record $770 billion in FY 2023–24.

Yet, we are still chasing the $5 Trillion mark.

India is rising, and soon its growth will touch new highs.

An article by Krishna Jee Mishra
- Image credits: AI