How India's Economy Works

India has been one of the world's fastest-growing major economies for years. Yet for millions of Indians, rising GDP has not translated into rising household prosperity, better jobs, or greater economic security.
In this episode of How India's Economy Works, Puja Mehra speaks with economist Professor Partha Chatterjee, Dean of Academics and Professor of Economics at ⁠Shiv Nadar University, about the structural reasons behind this disconnect. They explore why India's "missing middle"—the absence of enough productive, mid-sized firms and middle-income jobs—has become one of the country's biggest economic challenges. The conversation examines why firms struggle to scale, how policy incentives often encourage businesses to stay small, and why investment in education, health, finance, land, and judicial reforms is just as important as building physical infrastructure.
The discussion also covers innovation, productivity, labour market opportunities for women, industrial policy, self-reliance, global supply chains, and why creating an ecosystem where firms can grow may be far more important than simply backing a handful of national champions.
Tune in for insights on why sustained economic growth alone cannot deliver widespread prosperity—and what India must do to ensure that growth creates better jobs, stronger businesses, and rising living standards for millions.

CHAPTERS
(00:00) Introduction
(01:21) Why Growth Misses Household Prosperity
(03:31) Missing Middle-Sized Productive Firms
(06:05) Policy Cliffs and Educational Deficit
(09:30) Resource Misallocation and Skill Mismatch
(12:20) Why Unproductive Firms Survive
(14:29) Impact of Creeping Tariff Protection
(16:43) Political Economy and Interest Groups
(18:16) Beyond Physical Infrastructure and Credit
(20:56) Risks and Barriers to Innovation
(23:46) Building Slopes and Supporting Ecosystems
(28:10) Rethinking Self-Reliance and National Champions

For more of our coverage check out ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠thecore.in⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠
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In this episode of How India's Economy Works, Puja Mehra speaks with Electrical Engineer Sudhir Gera, Director of Operations at IEC Electric Power Ltd, who has spent over three decades in the industry and has worked closely with engineering colleges, regulators, and policymakers. He explains why India's challenge is not a shortage of engineering graduates but a shortage of industry-ready skills. From outdated curricula and weak industry-academia collaboration to the dominance of IT jobs and the neglect of hands-on manufacturing training, Gera argues that the country's engineering education system is no longer aligned with the needs of modern industry.
He also proposes an ambitious "linking school" model that would connect engineering colleges, local industries, and students—much like teaching hospitals do for medical education—to bridge the gap between classrooms and shop floors. The discussion also explores how AI is reshaping engineering careers, why manufacturing deserves renewed attention, and what reforms are needed if India is to become a global manufacturing powerhouse.
Tune in for insights on why India's employability crisis is really a skills crisis, how engineering education can be reimagined for manufacturing, and what it will take to build the workforce India's industrial future demands.

CHAPTERS
(00:00) Introduction to the Interview
(00:56) Background of Sudhir Gera
(01:28) Defining the Employability Crisis
(04:47) Role of MSME Margins
(07:41) Need for Training Infrastructure
(09:07) Assembly Versus True Manufacturing
(11:06) Stigma Around Vocational Skills
(14:04) Introducing the Linking School
(18:16) Sourcing Industry Experts Faculty
(21:12) Value of Practical Knowledge
(26:01) Geopolitics and Manufacturing Needs
(30:45) Bringing Action to Industry

For more of our coverage check out ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠thecore.in⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠
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In this episode of How India's Economy Works, host Puja Mehra speaks with trade economist Dr. Nisha Taneja, Professor at Indian Council for Research on International Economic Relations (ICRIER). They unpack what the latest export data really reveals. Why did some sectors thrive while others—diamonds, pharmaceuticals, petroleum products and jewellery—registered sharp declines? Why did exports to China unexpectedly surge? And what does this tell us about India's overdependence on the US market?
The conversation also examines whether India's recent free trade agreements can genuinely help exporters, why earlier FTAs failed to deliver the expected gains, and how non-tariff barriers, product standards and local market knowledge matter as much as tariff cuts. Dr. Taneja explains why the tariff shock has become a catalyst for a new export diversification strategy, prompting the government to launch an ambitious export promotion mission aimed at helping Indian firms enter new markets.
Tune in for insights on how Trump's tariffs reshaped India's export strategy, why diversification has become an economic necessity, and what India must do to build a more resilient export ecosystem.
CHAPTERS
(00:00) Introduction
(00:14) Why US Tariffs Didn't Hurt Exports
(03:27) Which Indian Sectors Lost Most
(05:31) China's Surprising Demand For Indian Goods
(06:52) How Exporters Found New Markets
(08:21) Can Free Trade Agreements Help?
(10:53) Lessons From Trump's Tariffs
(11:32) India's New Export Diversification Strategy
(14:17) Can Textile Exports Recover?
(14:57) Finding Markets Beyond America
(16:20) A Turning Point For India's Exports

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In this episode of How India's Economy Works, host Puja Mehra speaks with economist Renu Kohli, formerly at the Reserve Bank of India and the IMF and currently senior fellow at the Centre for Social and Economic Progress (CSEP). They talk about the recent depreciation of the rupee and why this episode may be different from previous currency shocks. Despite India's large foreign exchange reserves, the rupee has faced sustained pressure. Why?
Renu Kohli argues that the deeper issue lies not in India's trade balance but in the drying up of foreign capital inflows. She explains the difference between reserves earned through exports and what she calls "borrowed reserves", examines the decline in foreign direct investment, and discusses whether policymakers underestimated the structural nature of these pressures.
The conversation also explores the RBI's exchange-rate management strategy, the limits of using reserves to defend a currency, the impact of global capital flows, and why short-term measures can only buy time. Looking ahead, she outlines the reforms India may need if it wants to attract and retain long-term foreign investment in an increasingly competitive global environment.
What does the rupee's recent weakness tell us about India's place in the global economy? And what must change to ensure that external vulnerabilities do not become a lasting feature of India's growth story?
Tune in for insights on the rupee, foreign capital, forex reserves, and the structural challenges shaping India's economic future.

CHAPTERS
(00:00) Introduction
(01:04) Why Forex Reserves Didn't Prevent Rupee Weakness
(04:25) How the Current Shock Differs from 2013
(08:55) The Hidden Problem: Drying Foreign Capital
(13:33) Is This India's Most Serious External Vulnerability Since 1991?
(16:14) Did the RBI Misread the Nature of the Pressure?
(19:24) Should the Rupee Have Been Allowed to Fall Earlier?
(22:54) RBI's Short-Term Measures and Their Limits
(26:20) Can Policymakers Count on Global Capital Returning?
(29:29) Why India Is Struggling to Attract Foreign Investment
(32:19) What India Must Do to Secure Long-Term Capital Inflows

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In this episode of How India’s Economy Works, host Puja Mehra speaks with economist and Professor of Economics at SRM University, Dr. Parag Waknis to unpack one of the most important yet least understood documents in Indian policymaking, the RBI’s accounts. They explore how the RBI manages government debt, why it holds government securities on its balance sheet, and how these operations influence GDP, liquidity, interest rates and inflation.
The conversation examines the evolution from direct deficit financing to the current system of primary dealers, the significance of foreign exchange reserves, and the RBI’s use of tools such as open market operations and Operation Twist. Dr. Waknis also explains the relationship between government borrowing and central bank profits, and discusses whether these dynamics affect the RBI’s policy independence.
Tune in for insights into the institution at the heart of India’s monetary and financial system.

CHAPTERS
(00:00) Introduction
(00:14) Why the RBI Balance Sheet Matters
(03:54) Why Government Bond Auctions Fail
(06:15) How RBI Invests Forex Reserves
(08:28) Operation Twist and Borrowing Costs
(11:21) Why RBI Doesn't Fund Government Directly
(14:33) Currency Notes, Coins and Sovereignty
(16:35) What the Latest Balance Sheet Shows
(19:00) Government Borrowing and RBI Surplus
(21:27) Rising Government Debt on RBI Books
(24:18) Is India’s Bond Market Distorted?
(25:44) RBI Independence and Balance Sheet Risks
(27:47) Understanding the Monetary Policy Corridor
(32:54) Rules Versus Discretion in Monetary Policy
(34:49) RBI’s Conflicting Institutional Roles
(36:36) Why US Debt Markets Differ
(37:48) Key Takeaways on RBI Operations

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