What does advancement of technology mean for the Indian economy?
Advancement of IT has been a boon for the Indian economy. 27% of India’s workforce deployed in the services sector contribute to 57% of the GDP (compare this with 50% workforce in agriculture contributing to 17% of the GDP and 22% workforce in manufacturing contributing to 26% of the GDP).
How would the advancement of technology impact the GDP? There are two ways to look at this. Currently, the IT work in India has a linear correlation to the number of people deployed. If the same work can be done with smarter machines/robots in India, the GDP would go even further up, keeping the percentage of workforce deployed same or lesser.
Let’s discuss any learnings from the global oil price crash and from the slowdown of Chinese manufacturing/the Chinese economy.
Learning from the global oil price crash
I started to analyze what caused the crash of oil prices. Going with the simple demand-supply logic, the reasons could include...