Indian Economy: Rising or Falling?
‘The rich get richer and the poor get poorer’ this statement is so relevant today.
As the world is facing its worst economic crisis with global stock markets tanking, currencies slumped, millions of jobs being lost, and a massive humanitarian crisis unfolding in front of us, but amidst all this, the creamy layer is still growing rich.
To state one example, Reliance Industries Limited (RIL) Chairman and Managing Director Mukesh Ambani becomes the world’s 5th richest according to Forbes. He has added $2.9 billion in his net worth.
So how is Ambani the 5th richest despite our country’s economic back fall?
Well, the problem of economic turmoil is being faced by the whole world and not just India. This global pandemic has been largely disruptive. Indian businesses, jobs are at high risk as the firms are looking for some reduction in manpower. This has overall slowed down our economy.
As of Mukesh Ambani is the richest is due to its recent rally in Reliance’s share price. Shares of Ambani led-Reliance Industries (RIL) surged to a new high on 22nd July as they crossed Rs 2000 per share. RIL’s stock price has grown by around 48%.
The sudden rise in Ambani’s wealth is because his telecom Reliance Jio has raised more than $20 million in the last four months from Google, Facebook, KKR, Silver Lake, Vista Equity Partners, General Atlantic, and more. Reliance home delivery services have also helped in increasing its wealth, especially during this pandemic.
How will our economy get stable through Ambani’s 5G plan?
As our country’s economy is concerned it will be recovered soon as Reliance Industries Limited Chairman Mukesh Ambani had said that Jio has designed and developed a complete 5G solution from scratch. This 5G technology will have a positive effect on our GDP. from retail to education, entertainment, transportation, commercial business, etc will be able to produce trillions worth of goods and services. This will help in creating 22 million new jobs. Most importantly it will give rise to various employment opportunities.
The aspect that, we measure the growth of the economy through its GDP in itself is disturbing, because it is just the average put together the complete income of the country, so a statue built, or a few billionaires may increase the GDP but it doesn’t assure employment or change in poverty. Though the status of the Ambani or other richer men promises jobs at the same time India is set to lose around 130 million jobs with 27 million youth from the age group of 20–30.
While we rejoice seeing an Indian reach such height, there is demand still on addressing the issue of income and wealth disparity in India with a surge to increase the job opportunities and security for existing jobs.
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