in India, despite strong economic growth, the working classes are increasingly poor

India’s working classes, who represent more than half of the population, are increasingly in difficulty, despite strong annual growth across the country.

President Emmanuel Macron arrives in India on Thursday January 25. During his two-day official visit, he will, among other things, attend the Republic Day military parade. It will be a question of defense, with negotiations around the sale of Rafale fighters, but also of the economy. Around fifteen bosses accompany the president, in the country which is experiencing strong growth – around 7% each year – and which therefore attracts many French companies. However, this growth is poorly redistributed and inequalities are growing rapidly.

Awdesh Chaturvedi is a delighted forty-year-old. He recently found the car that fits his family of seven and his budget. It’s a French SUV, from the Renault brand. Its price, around 10,000 euros: “The car is spacious, and this allows the whole family to go on vacation in the same car. It has good options, all within my budget. Plus, my wife found it beautiful”, he rejoices. As for this father of the family, the diamond firm is enjoying a certain success: Renault is 10th in terms of sales in India and is riding the enrichment of this wealthy class. Their income is increasing and they are spending a lot more.

Barely 100 euros per month

But the working classes, who represent the majority of the population, have not recovered from the Covid crisis. This is the case of Salma Parveen, a domestic worker from the suburbs of Delhi, who earns only 100 euros to raise her four children: “Before Covid, I had regular employers, but I lost everything. Even today, I cannot find the same level of income. I earn less than half as before. My parents “help, so I’m just able to buy food, but I’m reducing our medical expenses.”

The government claims to have divided poverty by three over the past 10 years, but the statistics are increasingly politicized. Which makes Deepanshu Mohan, economist and director of the Center for New Economic Studies at Jindal University, near New Delhi, skeptical: “Real wages, after inflation, have fallen sharply. The government provides food aid to 800 million people, and announces extending this aid for another five years. This gives an idea of ​​the level of poverty.” The government tried to develop industry, to increase the number of low-skilled jobs. But it didn’t work, and today growth is therefore driven by a small minority who work in skilled services.