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India’s Economy: Who Really Drives It?

The narrative: Media often frames India’s economy as powered by private corporates, with the "poor and common man" cast as minor players. The latest stats tell a different story.

Why it matters: Understanding who fuels India’s $3.94 trillion economy (2024-25, MoSPI) shapes policy, perception, and reality—especially as growth hits 6.4% (Economic Survey 2024-25).
1. The Informal Engine
  • The stat: The informal sector—small farmers, laborers, vendors—contributes ~50% of GDP, or $1.97 trillion (ILO, MoSPI estimates).
  • The breakdown: Over 90% of India’s 475 million workers are informal (PLFS 2022-23). The e-Shram portal logs 285 million unorganized workers as of January 2025, with 52% in agriculture.
  • Zoom in: Small farmers (86% of total) produce 70% of food grains, driving 18.4% of GDP ($725 billion, 2024-25 adjusted).
The big picture: Half the economy runs on the "common man"—not a footnote, but a foundation.
2. The Poor’s Quiet Power
  • The stat: 94% of e-Shram’s 285 million earn under $120/month, yet they underpin key sectors.
  • The evidence: 52% in agriculture, 9% in construction—low-wage labor that keeps corporate costs down.
  • The kicker: Informal work in formal sectors adds 20%+ to GVA (historical estimate, likely holding).
Yes, but: Their direct GDP share is small due to low incomes, masking their ripple effect.
3. Corporate Heavyweights
  • The stat: Private corporates contribute 30% of GDP, or $1.18 trillion (Ministry of Corporate Affairs, 2024-25).
  • The tax angle: They pay 28.1% of revenue, plus excise (11%) and customs (5.7%), totaling over 70% (2023-24 budget data).
  • The contrast: Just 3% of Indians (42 million) pay income tax, at 26.3%.
Reality check: Big players, yes—but they lean on informal labor and suppliers.
4. Perception vs. Data
  • The skew: Corporate profits (e.g., Reliance’s $10B in 2023) dominate headlines; informal grit doesn’t.
  • The resilience: Own-account enterprises rose 4% since 2015-16 (ASUSE 2022-23).
  • The burden: The poorest 50% pay 64% of GST while earning 13% of income (Oxfam 2024).
What’s next: Media’s corporate focus misses half the story—literally.
The bottom line: India’s economy isn’t a corporate solo act. The poor and common man drive 50% of it, while corporates amplify the rest. It’s symbiosis, not domination—stats over spin.

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