India is heading towards middle income trap.
Yes, India is heading towards Middle income trap. Since the trade deficit is 15 billion dollars this may, and it is increasing day by day and also the domestic consumption is gradually decreasing. Which is reported by mostly FMCG companies and automobile companies.
There is very sharp decline in the sales of automobile companies on an average 15 percent. If the process continues, Indian will not become like China it will like Brazil and other south Africa countries. These are the best example of middle income trap. If India wants to overcome from middle income trap.
We have to increase farmers income but that is only a short term measure.
For long effects, we have to search new market which India hasn’t explored like south America, and middle asian countries. Indian cureent expiring countries with their figures are:
1. United States : US $ 51.6 biffion ( 16 % of total Indianexports )
2. United Arab Emirates : $ 29 billion ( 996 )
3. China : $ 16.4 billion ( 5.1 % )
4. Hong Kong: $13.2 billion ( 4.1% )
5. Singapore : $ 10.4 billion ( 3.2 % )
6. United Kingdom : $ 9.8 billion ( 396 )
7. Germany : $ 9 billion ( 2.8 %)
8. Bangladesh : $ 8.8 billion ( 2.7 % )
9. Netherlands : $ 8.7 billion ( 2.7 % )
10. Nepal : $ 7.3 billion ( 2.3 % )
11. Belgium : $ 6.8 billion ( 2.1 % )
12. Vietnam : $ 6.7 billion ( 2.1 % )
13. Malaysia : $ 6.5 billion ( 2 % )
14. Italy: $5.5 bilion (1.7%)
15. Saudi Arabia : $ 5.5 billion ( 1.7%)
Exports should be increased. New jobs should be created.