Thread by @TheAtulMishra

China had a simple method. Build new cities and then abandon them. New cities need cement, bricks, water, roads, electricity and a 100 other things. A new city leads to a chain of economic activities thereby pushing the GDP up. An investor sees a prosperous China.

Contd.

And he parks his money there, China gets fresh funds which it uses to recover the cost of the city and abandons it. So it got money for virtually doing nothing, and got to keep its GDP growth rate artificially up.

I’m not trying to prove how smart China is but...

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The lesson is that that building more is the sure shot way to push GDP up. It creates jobs, makes existing cities better and creates new cities. But we are not China, we don’t build to abandon.

But there is so much scope in India to build more anyway.

Contd...

Budget has healthcare and infrastructure at its very core. After a pandemic, healthcare had to be the no. 1 priority but such huge focus on infra means just one thing. PM Modi has his eyes set on making India the fastest growing economy without making ghost cities.

Contd.

So what we can expect in the next few quarters:

1. A sharp spike in India’s growth rate
2. Record number of jobs in Infra and Infra related sectors
3. Betterment of existing cities
4. Creation of new cities like Greater Patna or Naya Lucknow

Done.