Why India’s GDP Growth Isn’t Creating Jobs Or Prosperity? | How India's Economy Works | The Core

Why is India’s GDP growth not creating enough jobs or prosperity? Journalist Puja Mehra and economist Professor Partha Chatterjee examine India’s missing middle, weak job creation and the reforms needed to turn economic growth into rising household incomes. India has remained one of the world’s fastest-growing major economies. Yet for millions of Indians, GDP growth has not translated into better jobs, greater economic security, stronger income mobility or widespread household prosperity. In this episode of How India’s Economy Works, Puja Mehra speaks with Professor Partha Chatterjee, Dean of Academics and Professor of Economics at Shiv Nadar University, about the structural weaknesses preventing India’s economy from converting growth into jobs and prosperity. At the centre of the problem is India’s missing middle. The country has millions of small businesses and a limited number of large corporations, but not enough productive, mid-sized firms capable of scaling, innovating, raising wages and creating secure middle-income jobs. Professor Chatterjee explains why Indian firms often remain small, how policy cliffs can discourage businesses from expanding and why access to finance becomes more difficult when firms attempt to move beyond the small-business stage. The discussion also explores how low productivity, weak competition, tariff protection, lobbying, skill shortages and resource misallocation affect job creation in India. It examines why unproductive firms survive, why innovative businesses struggle to scale and why economic growth alone cannot guarantee rising living standards. The conversation looks beyond roads and physical infrastructure to the institutions that determine whether businesses and workers can prosper. These include education, healthcare, access to credit, land availability, judicial reform, innovation and opportunities for women in India’s labour market. Can India’s GDP growth create widespread prosperity without more productive firms? Can industrial policy and self-reliance succeed by supporting only a handful of national champions? Or does India need an ecosystem that allows thousands of businesses to enter, compete, innovate and scale? Watch this episode for a deeper understanding of India’s economic growth, job creation, unemployment, household prosperity, business productivity, the missing middle, industrial policy, global supply chains and the reforms required to create better jobs and rising incomes. CHAPTERS: 00:00 Introduction 01:21 Why GDP Growth Misses Household Prosperity 03:31 India’s Missing Middle-Sized Firms 06:05 Policy Cliffs and the Education Deficit 09:30 Resource Misallocation and Skill Mismatch 12:20 Why Unproductive Firms Survive 14:29 Tariff Protection and Business Competition 16:43 Political Economy and Powerful Interest Groups 18:16 Why Roads and Business Credit Are Not Enough 20:56 Risks and Barriers to Innovation 23:46 Helping Indian Businesses Scale 28:10 Self-Reliance and National Champions ABOUT THE GUEST: Professor Partha Chatterjee is Dean of Academics and Professor of Economics at Shiv Nadar University. His research and commentary cover economic growth, firms, productivity, labour markets, innovation, public policy and the Indian economy. ABOUT THE SHOW: How India’s Economy Works examines the policies, institutions, businesses and economic forces shaping India. Hosted by Puja Mehra and published by The Core, the podcast features economists, researchers, policymakers and business leaders discussing India’s economic future. Why is India’s GDP growth not creating enough jobs or prosperity? This episode explains India’s missing middle, weak job creation, low productivity and the reforms needed to raise household incomes. Subscribe to The Core for more conversations on the Indian economy, business, financial markets, manufacturing, technology, public policy and global economic developments. #IndianEconomy #GDPGrowth #JobCreation #EconomicGrowth #HowIndiasEconomyWorks #TheCore Join The Core Insider to get access to perks: @thecore_in Listeners! We await your feedback: https://tinyurl.com/TCR-Listener-Survey The Core & The Core Report is ad supported & FREE for all readers & listeners. Write in to [email protected] for sponsorships & brand studio requirements. For more of our coverage check out thecore.in (https://www.thecore.in/) Support the Core Report (https://tinyurl.com/Support-the-Core-...) Join & Interact anonymously on our WhatsApp channel (https://tinyurl.com/The-Core-WhatsApp...) Subscribe to our Newsletter (https://www.thecore.in/newsletters/th...) Follow Us on Social Media for More Updates: Twitter (Twitter: the_core_in) Instagram (Instagram: the.core.in) Facebook (Facebook: thecore.biz) Linkedin (LinkedIn: thecore-in) Youtube (@thecore_in)