This week, Monika steps back from the noise of partisan debates to ask: how is India really doing? It’s a difficult question to answer amid competing political narratives, but the data tells a story of steady progress. India is still the world’s fastest-growing major economy, with GDP set to grow at 6.5% this year. Per capita income has risen at 7.6% annually over two decades, and poverty has fallen sharply—from 27% in 2011 to just over 5% in 2022. That’s nearly 270 million people lifted out of poverty. This has also helped reduce inequality, with India’s Gini coefficient improving steadily. At the core is India’s growth-plus-redistribution model, where welfare spending and rising incomes have worked together. Better nutrition and improved consumption among the poorest households are signs of a broader shift.

While macro indicators are strong—low inflation, a cleaned-up banking system, and fiscal discipline—there are still structural hurdles. Judicial delays, corruption, regulatory overreach, and burdensome compliance rules raise costs and hold back investment. More than 26,000 legal provisions carry jail terms for minor infractions. These frictions act as invisible brakes on growth. But the overall direction is positive. India has come a long way from the deprivation of the 1990s. The poverty-to-prosperity journey is ongoing, and the report card today shows a solid B+.

In listener questions, Ahalya asks whether Sukanya Samriddhi Yojana or mutual funds are better for her daughter’s long-term future. Riya from Navi Mumbai wonders if she should exit her old LIC policies and shift to mutual funds. Tarun asks if EPF and PPF count as debt in his asset allocation and how to redeploy maturing PPF amounts.

Chapters:

(00:00 – 00:00) India’s Report Card: Growth, Poverty, and Inequality

(00:00 – 00:00) The Persistent Roadblocks to India’s Progress

(00:00 – 00:00) Investment Options for a Girl Child’s Future

(00:00 – 00:00) Should I Exit My LIC Policies and Shift to Mutual Funds?

(00:00 – 00:00) Is My SIP Telling the Right Story for My Financial Goals?

If you have financial questions that you’d like answers for, please email us at ⁠[email protected]⁠ 

Monika’s book on basic money management

⁠⁠https://www.monikahalan.com/lets-talk-money-english/⁠⁠

Monika’s book on mutual funds

⁠https://www.monikahalan.com/lets-talk-mutual-funds/⁠

Monika’s workbook on recording your financial life

⁠⁠https://www.monikahalan.com/lets-talk-legacy/⁠⁠

Calculators

⁠⁠https://investor.sebi.gov.in/calculators/index.html⁠⁠

You can find Monika on her social media @monikahalan. 

Twitter ⁠⁠@MonikaHalan⁠⁠

Instagram ⁠⁠@MonikaHalan⁠⁠

Facebook ⁠⁠@MonikaHalan⁠⁠

LinkedIn ⁠@MonikaHalan⁠

Production House: ⁠www.inoutcreatives.com⁠

Production Assistant:⁠ Anshika Gogoi⁠