India's most hidden economic risks may surface, Bitcoin becomes the biggest engine of employment in India

Although the Indian government and the Indian media have been promoting the rise of the country's economy, in fact, one-quarter of Indians still cannot achieve food and clothing. As one of the most populous countries in the world, India's employment problem has long affected the economic development of the entire country. The Center for Monitoring Indian Economy (CMIE) released a report on February 27 showing that the number of unemployed people has reached 31 million, the highest level since October 2016.

Indians queue up to find jobs/Photo credit: Rajesh Kumar Singh

India will usher in the "graduation season" in May. CMIE said that the unemployment rate has been "steady rising" in the past three weeks, and the situation will only get worse. Indian Prime Minister Modi has set a goal to create 100 million manufacturing jobs by 2022.

India unemployment rate chart/Image source EMI

The Indian government's employment plan has been questioned by many parties since it was proposed. Based on previous data, CMIE estimates that at most 600,000 jobs can be created in 2018. Motilal Oswal recently stated that if India wants to achieve this goal, it needs to create at least 14 million jobs every year, and the goal set by the Indian government is nothing but empty words.

It is worth noting that Bitcoin, which was previously called a "Ponzi scheme" by the Indian government, has now become the biggest engine driving employment in India. An Indian employment website said that the growth rate of jobs related to digital currencies has reached 290%. However, since February, with the plunge of major global digital currencies and the sudden "liquidation" of Bitcoin by the United States, India's attitude towards digital currencies has become increasingly tough. The market is worried that this will affect the industry's role in driving employment, making India's already unattainable employment plan even worse.

The real driving force for economic development comes from the protection of currency credit, but there are signs that India seems to have forgotten this basic common sense of economics. Economic plans have been repeatedly questioned, and changes in policies are often made. For India, this is equivalent to losing the greatest vitality for economic development. This is one of the biggest hidden dangers and terrible economic facts that have now surfaced. Motilal Oswal said that in this way, even if the deadline is extended to 2030, this goal will be difficult to achieve, that is, in another ten years, the employment goal will be just a castle in the air.