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By:

Rajendra Joshi

3 December 2024 at 9:20:26 am

The Warning Beyond NEET

The Jantar Mantar protests exposed the widening gap between education, employment and growth. The month-long protest at Delhi's Jantar Mantar may have formally ended, but the political and economic questions it raised will linger. Triggered by the NEET paper leak, the movement became a major expression of youth discontent. What began as a demand for a fair examination system became a broader indictment of an economic model that promises opportunity but increasingly fails to deliver...

The Warning Beyond NEET

The Jantar Mantar protests exposed the widening gap between education, employment and growth. The month-long protest at Delhi's Jantar Mantar may have formally ended, but the political and economic questions it raised will linger. Triggered by the NEET paper leak, the movement became a major expression of youth discontent. What began as a demand for a fair examination system became a broader indictment of an economic model that promises opportunity but increasingly fails to deliver employment. The government initially treated the protests as a law-and-order issue. That changed when the Rashtriya Swayamsevak Sangh (RSS), the ideological fountainhead of the ruling establishment, publicly criticised police action and expressed solidarity with the students. The subsequent resignation of Union Education Minister Dharmendra Pradhan, withdrawal of criminal cases and RSS chief Mohan Bhagwat's endorsement of the integrity and aspirations of India's Gen Z transformed the political narrative. The issue had moved beyond examination reform to whether India's development model is serving its young citizens. The NEET paper leak was merely the spark. The fuel had accumulated through rising educated unemployment, declining confidence in public institutions and growing frustration among millions of young Indians. Education is increasingly seen as an uncertain investment rather than a guaranteed pathway to opportunity. Every examination scandal reinforces the perception that merit alone is insufficient, while recruitment delays deepen the belief that the system is failing those who have done everything expected of them. India has celebrated its demographic dividend for nearly two decades, projecting its young workforce as its greatest competitive advantage. But demographic dividends are never automatic. They generate prosperity only when education is matched by employment, productivity and rising incomes. Otherwise, they become demographic liabilities that breed frustration rather than growth. The evidence suggests India is approaching that inflection point. GDP has expanded impressively over the past two decades, yet employment has failed to keep pace. Employment elasticity has weakened sharply. During the 1980s, every percentage point of GDP growth generated roughly half a percentage point increase in employment. Today the ratio is estimated at about 0.16, among the lowest for major emerging economies. Growth continues; jobs do not. This disconnect reflects India's growth strategy. Public policy has increasingly favoured capital-intensive industries through subsidies, tax incentives and investment support. Such sectors contribute to output and productivity but generate relatively fewer jobs. Agriculture continues to suffer from incomplete reforms and low productivity. Manufacturing has not expanded fast enough to absorb new workers, while artificial intelligence and automation are reducing opportunities in occupations once regarded as gateways to middle-class prosperity. India thus faces a paradox: it is producing more graduates while creating fewer opportunities to absorb them. The comparison with Asia is instructive. Vietnam and Bangladesh have pursued manufacturing-led growth that has generated substantially higher employment relative to economic expansion. Vietnam's employment-to-population ratio is estimated at nearly three-fourths, compared with about one-half in India. Vietnam has also moved into the upper-middle-income category, while India remains a lower-middle-income economy. These comparisons do not diminish India's achievements. They highlight the urgency of correcting structural weaknesses before they become politically destabilising. History demonstrates the risks of prolonged youth unemployment. The Arab Spring showed how educated but unemployed youth can transform political landscapes. More recently, political instability in Bangladesh and Nepal has reflected frustration among younger populations facing shrinking opportunities. India's democratic institutions are stronger, and its circumstances are different. Yet no democracy can indefinitely ignore the aspirations of its largest demographic group. The significance of Jantar Mantar lies here. India's Gen Z is organised, digitally connected and politically conscious. Social media transformed local grievances into a national movement within days, while traditional political parties largely responded after the sentiment had acquired independent momentum. The RSS intervention further complicated the government's challenge. Once protesting students found resonance within the ideological ecosystem closest to the ruling establishment, the issue ceased to be a partisan confrontation. It became an internal warning that India's youth expect credible institutions, transparent examinations and, above all, meaningful employment. The Centre's examination reforms are necessary but insufficient. Restoring the credibility of competitive examinations addresses only one symptom. The larger challenge is to redesign India's growth strategy around employment. Labour-intensive manufacturing, support for small and medium enterprises, investment in skills, higher-education reform and greater attention to employment outcomes must become central to economic planning. The Jantar Mantar agitation should not be remembered simply as the NEET protests. It marked a moment when India's youngest generation questioned the assumptions underlying the country's development model. Governments can manage protests and reform examinations. But unless economic growth translates into broad-based employment, similar movements will return. India's demographic dividend remains its greatest opportunity. It could equally become its greatest challenge. The warning has been delivered. The question is whether policymakers are prepared to listen.

Life on EMIs: Convenience or Financial Pressure?

Financial freedom is not about owning everything today; it is about the ability to choose tomorrow.

Bharath, a 34-year-old salaried professional in Pune, earns Rs 85,000 a month. On paper, he’s doing well. He owns a 2BHK apartment, drives a decent car, recently upgraded to a premium smartphone, and his home is filled with modern appliances. But by the 25th of every month, his bank balance is close to zero.


Where does the money go? A closer look reveals the answer: EMIs.


Rs 32,000 for a home loan. Rs 11,500 for a car loan. Rs 4,000 for a personal loan taken during a family function. Rs 3,200 for a smartphone on EMI. Add to this a couple of credit card minimum payments, and over 60 per cent of his salary is already committed before he even begins to spend on groceries, fuel, or utilities.


Bharath’s story is not unusual; it is the new normal for many middle-class families.


Over the last decade, easy access to credit has transformed consumption patterns. With just a few clicks, you can “afford” things that once required years of savings. Zero down payments, no-cost EMIs, and instant approvals—these offers make purchases feel light on the pocket. But what often goes unnoticed is the long-term burden they create.


From a chartered accountant’s perspective, the problem is not EMIs themselves. In fact, certain EMIs, like a reasonably planned home loan, can be part of healthy financial planning. The issue arises when EMIs start funding lifestyle rather than assets.


There is a fundamental difference between productive and consumption EMIs.


A home loan, if within budget, builds an asset. An education loan can enhance earning capacity. These are investments in your future. On the other hand, EMIs for gadgets, vacations, or luxury items often depreciate in value the moment you buy them—yet you continue paying for them long after the excitement fades.


This is where many middle-class earners fall into what I call the “EMI illusion".


Because the monthly payment looks small, the purchase seems affordable. But affordability should not be judged by whether you can pay the EMI; it should be judged by whether it fits sustainably within your income and goals.


A simple rule many financial experts recommend is this: Total EMIs should ideally not exceed 30–40 per cent of your monthly income. Beyond this, your financial flexibility starts shrinking rapidly.


In Bharath’s case, crossing the 60 per cent mark has left him vulnerable. One unexpected medical expense or a temporary loss of income could push him into a debt spiral. Another common oversight is committing to EMIs without building an emergency fund.


Equally concerning is the role of credit cards. Many individuals treat the “minimum amount due” as a safety net. In reality, it is a costly trap. Interest rates on unpaid credit card balances can go as high as 30–40 per cent annually, silently compounding the burden.


So, is an EMI-driven life a convenience or financial pressure? The answer depends on discipline.


EMIs can certainly make life convenient. They allow you to access necessities when needed and spread out large expenses. But without boundaries, they quickly turn into financial pressure, restricting your choices, delaying your savings, and increasing stress.


For middle-class families aiming for stability, a few practical steps can make a significant difference. Before taking any EMI, ask whether it is a need or a want. Ensure you have at least three to six months of expenses saved before committing to new debt. Avoid taking multiple small EMIs simultaneously, as they add up faster than expected. Prioritise closing high-interest loans, especially credit card dues. Most importantly, focus on building savings and investments alongside repayments.


Financial freedom is not about owning everything today; it is about the ability to choose tomorrow.


Bharath has now started reassessing his finances. He has postponed further purchases, begun prepaying his high-interest loans, and is working towards creating an emergency fund. The journey may take time, but the direction has changed.


And that, perhaps, is the real takeaway.


Because in the end, the goal is not just to live a comfortable life but to live one that is financially secure.


(The writer is a Chartered Accountant based in Thane. Views personal.)

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