Economic activity has rebounded in LMICs post pandemic, but the debt accumulated in that period has continued to grow, driven by both short & long-term debt.
Govt policies in middle-income countries like India incentivise small firms to remain small, while bigger firms are not growing fast enough, the World Development Report 2024 says.
China needs to transition from a manufacturing-driven economy to an innovation-driven economy to level up to the big boy’s club. But there are multiple fault lines.
India is likely to join the ranks of middle-income countries in the 2030s but will not have a per-capita gross national income comparable to upper MICs for 25+ years.
The collusion between the new class of bureaucrats, politicians, businessmen and trade union bosses perpetuates itself partly because of the short-run benefits and partly because they see no way out of the system, wrote author MH Mody in 1980.
IAF is firming up plans to revamp airlift capabilities with medium transport aircraft that will be assembled in India & serve as its main workhorse. Embraer is leading contender as of now.
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