India story could end with mass unemployment

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Paul Krugman, the American economist who won a Nobel Prize in 2008, has warned that India could end up with huge mass unemployment if it does not grow its manufacturing sector.

“Japan is no longer a superpower because its working-age population declined, and china is looking the same.

In Asia, India could take the lead but only if it also develops its manufacturing sector, not only the services one,” he said.

India’s lack in the manufacturing sector could work against it, as it doesn’t have the jobs essential to sustain the projected growth in demography. You have to find jobs for people as this could lead to a huge crisis that would go out from the hands of the government.

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