DR.VISHNUVAJJHALA ADITYA SRINIVAS (Photo: Maeeshat)

DR.VISHNUVAJJHALA ADITYA SRINIVAS, is working as a Chief Operating Officer and Chief Economist at Bombay Stock Exchange Brokers Forum in Mumbai.He is An MBA (Gold Medalist), MDP from IIM Ahmadabad. He has 12 years of corporate experience in the field of financial services and having complete knowledge of all the segments of the capital markets  and financial products. Dr. ADITYA SRINIVAS is Regular with CNBC Bazaar and DD News channel.  He also represented India at Harvard Law School, USA, and gave presentation on Indian Economy. In an exclusive interview with Maeeshat, he speaks on Indian and global economy:

Tell us the status of Indian economy on global platform?

Indian economy is growing at 7 % GDP as compared to world average GDP of 3 %.  The world economy is facing lots of geo-political turmoil like Syria, America’s relations  with North Korea, Russia’s involvement in Syria and so on.  In this situation , the Indian economy turns out to be in a better shape as compared to others like  China which has slowed down from 10 % GDP to 6.5 % GDP. Indian economy has stable government and pro reforms oriented which means that the new economic reforms would be consistently coming into the economy. This is very important for the sustainable GDP growth rate.

What are the key features of Indian economy ?

The Indian economy has 3 unique selling propositions which are as follows:

1.  70% of the working population is less than 35 years of age which means that there is huge demographic dividend advantage to the economy. There is a huge disposable income that leads to consumption driven economy. The average age of the Indian is 25 years while the Chinese is 37 years. The American has 38 years while the European Union has 47 years and the Japanese has 50 years.
2. Out of the total production, India consumes 80 % of it. And only 20 % is exported.  we are not an export oriented economy. And thus India does not depend upon other countries. Though,  we need to have strong export policy to fund imports of gold and oil. Last year,  we achieved worth $ 312 billion by exporting as against the target of $ 325 billion.
3. India’s saving rate is 31 % while the global average is 24 %. Saving results into capital formation which has provided shield during the weak economic days. Savings return into capital formation that results into investment and then capital formation.

Thus Indian economy is poised with unique growth features and has huge potential to grow. The resilient feature in the economy was evident from the fact that the world economy grew at 1 to 2 % GDP during Global Financial crisis while Indian economy was able to grow by 6.3 % GDP.

What are the key challenges for Indian Economy ?

The biggest challenge for Indian economy is to create jobs and thus provide employment to the youth. We are harping on the fact that India has huge growth based on demand and consumption, but this will prove right  when the youth  be able to generate income before they spend. India needs to create 1.5 crore jobs each year to get the benefit of this demographic dividend.

What are the effects of schemes like Make In India, Skill India and Start up India ?

The schemes like Make In India is aimed to create manufacturing jobs in India as to make India a global manufacturing hub. Right now the contribution of manufacturing sector in the GDP is 14 % that needs to be increased by 25 %. This will create lots of jobs for the less qualified as manufacturing jobs are repetitive in nature. Skill India is aimed at giving skill to every one so that they could earn and support his family. Skill could be driving, electrical, mechanical skill etc. Several skill development programmes have been started by the Government but its implementation is the key to success. Start Up India is aimed to create more entrepreneurs so that they  can create jobs. The spirit of being entrepreneur would help the economy to grow well.

What about the Indian Stock market as tool for wealth creation?

BSES has given 16.5% CAGR return from 1980 to 2016. The market is tool for wealth generation in the long term. Investors who have done disciplined investment have always gained from the market. For instance one who had invested Rs. 9000 in Infosys IPO has made Rs. 4.58 crore which shows the huge wealth creation.