Is the economy back on track?

In the recently released global hunger index, India is ranked 101 out of 116 countries and our neighboring countries Bangladesh, Nepal, and Pakistan are ranked 76,76,92 respectively and in terms of the stock market, we have recently overtaken France becoming the world’s 6th largest stock market index in the entire world.

Why I am putting these two contrasting numbers in front of you? In a lot of discussions in the past few months I came across a lot of reasoning on why the Indian economy is booming and one of the key indicators according to the self-claimed economist in the discussion is the rising stock market index, Sensex cross 60K and nifty officially not an adult with over 18K and also we are a country with the largest number of crypto accounts, yes you heard it right we have over 10 cr crypto owners followed by the US with 2.74 cr crypto users but the point I am trying to make is are these number showing revival in the economy.

We have heard a lot amount of times that the stock market is not an indicator of the economy which is true but not always, so how to access this? The answer lies in the FUNDAMENTALS. India a country with over 130 cr population and the majority of the business being family owned the Gujaratis and the Marwaris the upliftment of the small and medium business, the penetration of the gig economy in the tier-2 cities of India, and most importantly the policies for increasing the income level of the lower middle class and middle-class section of the society.

With news like a shop in Mumbai recently got sold out on Rolex watches and unemployment rate in India increased from 6.95% in July to 8.94 in August we can sense the rising income gap in India and that’s where the fundamental and that’s why we have a good stock index but not the economy.

I might be sounding cynical here but I am more concerned here because of the first the vision which we are selling but nothing on paper, the rising inflation around the world especially the US, and rising income inequality, and also now with the people starting getting back to the metro cities for work it is good news for at least for the gig economy, the middle class in these cities. We might not be on track still because we are looking at a particular section of the society not the country as a whole but hopeful of getting on the track.

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