The SAD story of India's (Highly Educated) but Unemployed Youth | Akshat Shrivastava

so there has been a massive rise of MBA chaiwala and bch chaalis in India now please understand that these jobs are not aspirational in nature these are Jobs born out of circumstances so to say no one does an MBA in order to become a chiala seller or a kulcha Wala seller so to say no one does a bch in order to sell snake venom someday this situation is brewing up in India and people are considering their role models as elav or DOA because and they eventually want to become these people on the flip side they get to read headlines like these if you do a PhD also what is the point of studying working hard like who ended up grinding his way through gole CEO so what's the point of studying when jobs are not there in the economy so on this video I'm going to speak about three things one is that why is the job situation in India or the unemployment situation in India is so bad number two is it going to change anytime soon and third and the most important point is that can you do something about it how can you save yourself in this unemployment bubble that is getting formed in India forget about politicians one party will sell one data another party will sell another data your life will get bbad unnecessarily so it's very important to understand take some charge take some action so this is going to be an action-packed video I'm honestly going to share my experiences now you might say and all this stuff okay so very quick background about me guys if you're new to my channel I just want to communicate to you that I have actually done corporate jobs I've worked with top tier consulting firms I went to incad which is consistently ranked in top three business schools in the world Ive worked hard I have built startups I do not raise VC fundings currently I run a hedge fund so I have done okay you should consider me as your nothing like this I'm just telling you that I believe in the power of Education I believe that the Youth of our country needs better education they need to upskill themselves that's one way of saving yourself saving your career it's absolutely critical just because you know me from YouTube does not make YouTube as 100% of my career if I were to go back in time 10 years and complete my education well I would do exactly the same steps that I've done in the past so with that Spirit I'm going to communicate this video I'll be sharp to the point now one way of dealing with high unemployment problem is to constantly upscale yourself but the problem is that traditional business programs they do not give you practical insights but there is a new age business school that is addressing this problem so let me introduce you to Partners of today's video which is scaler School of Business they are based out of Bangalore and they offer a management program that is designed by leaders who have built billion doll businesses it exposes students to the industry by making them work on real world projects make them innovate and build a startup while studying and even train them on New Age Technologies such as gen Ai and blockchain these technologies will fundamentally change the business and they educate their students on these topics the founding cohort is getting launched on August of 24 the applications are open and you can apply and get even 100% scholarships check the links in description and comment box and apply via these links now with that let's move over to the main video so okay so let's go question by question and let's answer three questions number one why is the unemployment situation bad in India now many people will say that you know what you have political inclinations you're showing incorrect data this that so let me just show you three data points you yourself tell me whether these are sensible points or not number one let me ask you that what has been the growth engine of jobs in the last 15 20 years automatic answer comes IT jobs that is how cities like Bangalore Hyderabad so to say flourished because a lot of IT jobs came into the picture that led to the rise of people from lower middle class to upper middle class right so that's how migration has happened in the last 20 odd years in India now what is the situation of IT jobs today in India so these are the numbers you can see that it jobs if you look at infosis they cut jobs in 2023 2024 same applies to Vio except for TCS almost all the other major firms have cut jobs both in 2023 2024 now say ID jobs for example manufacturing uh no manufacturing sector unfortunately hasn't grown manufacturing has been a very slow growth sector for India in fact one of the lowest growth sectors in India for the last couple of years again if you look at startups now startups there is startup pivot that happens for example if you go four five years back you yourself would have noticed swiigy pay or zato pay when you used to order stuff D 10 10 rupes you could order like a cupcake or something and the person used to drive on their motorcycle and bring that cupcake for you and you used to feel very happy why did that used to happen because a lot of VC money was there in the ecosystem by and startup customer jut no matter how you just get customer you just improve sales okay so sales is revenue generation that's it no one was focused on profitability starting 2022 what has happened right so 2020 was a crisis year 2021 VC funding got crushed what happened in 2023 2024 okay so basically startups started focusing on profitability which meant what which meant that they were sensible with their hiring numbers so again hiring hasn't really picked up in the startup domain also so grow Eng you guys let me know so this is the first part the second part is that if you take a look at why unemployment situation is so high in India let me Jose that by showing you two data points here number one you take a look at the market cap of a company like State Bank of India now what is the market cap here you will take a look it will be roughly 7 lakh aspas what are the total number of employees at State Bank of India so here is the data they have approximately 240,000 employees for a market cap of 7 lakh CR now what is the situation with adani right or companies like adani so again let me just show you the data exactly same analysis so this is the market cap is roughly 3.2 lakh CR Okay so K ad size p and how many employees does adani group has you guys comment in the comment box let me know this will test you out also I will tell you I will reveal my answer somewhere along the video the short answer is that very Less in fact a fraction of the number of jobs that SBI gives now what is happening if you look at the public sector undertakings or psus as we say what is happening with Indian psus government has decided to divest is that a good decision well there are pros and cons good decision is that see a lot of public money which is there it need not be spent now because psos are generally generally speaking those are ineffective so to say PESA waste and all that stuff so efficiency government has no business in the area of business so to say okay so from that note a step you know public sector undertaking government has reduced its stake but it also means you know what the proportionate amount of employment should have been generated by private players who are coming into the mix is that really happening again go and revisit the story that I just told you SBI versus adani Enterprise how much jobs does it generate why am I picking handpicking adani because this has shown the greatest rise so to say in the private sector in the last 5 10 years right so that is the reason why I'm picking this group now third related point we are talking that okay we are a $5 trillion economy we are like $50 trillion whatever right so the bottom line is that okay fine it economy has grown great awesome but how many formal sector employment jobs are we generating right now over 90% of our Workforce just for example 100 L if 100 people are working in India 90 of them work in informal sector unorganized so these are unorganized sector jobs formal most of the jobs are in unorganized sector so to say which is really sad up now political party a can show you data xss another political party will bash the other one JS I have given you data now you think about it comment below what do you think about it is the job situation in India Rosy is it bad what is happening okay so I have given you my perspective so I don't think that the job situation in India is anywhere close to being okay right so it's really in bad shape right now and hopefully something is done about it which brings me now to the second question that okay fine situation can it improve going forward and what does the trends look like so for this I would encourage you to take a look at this picture what it does is that it allows you to understand the labor force participation rate labor force participation 100 units of Labor is there in the economy then out of which let's say if 40% is the labor force participation it means 40% people are participating in our economy okay so what has been the situation like if you look at the men's category okay so this has been declining it 3.6 in 2000 now it is somewhere around 77.2 if you look at females again it's not as if that this has gone up this is again a general decline if you look at rural again there's a decline if you look at Urban again there's a decline now we can go into the nties of it and all that stuff this is what the data tells us to be honest and unfortunately this is not moving in the right direction now what is the reason why this is happening so according to me there are four major reasons now I'm saying major because there can be many minor reasons also but let me discuss four major ones number one is the spent on capital expenditure now capital expenditure capital expenditure means the productive use of taxpayers money that's an easier definition of capital expenditure if you're spending on Healthcare then basically lifespan in India improves second if you are spending on education then what what happens that people are more skilled they can do high quality jobs so this is a good productive spent but India capital expenditure yes absolute terms of but in relative terms no it is not really increasing the capital expenditure is really bad on top of that critical things for example education who goes to ISB yes they are relatively well off but it's not as if know something they have to pay 18% GST on isb's fees which is absolutely rudic why are you pushing people Harding Middle why are you denying them that opportunity and charging like six seven lakhs just in GST fees that can be waved off right that's a simple point this is what good capital expenditure could be off right that's point one point two what is the issue the second issue why this number is going down and whether or not that will improve the employment engines in the economy are small and medium Enterprises just to help you understand the context for example if let's say that you're running a bakery now you will need a baker you will probably need a server right who will go and uh you know serve coffee etc etc you'll need a cleaner you'll require at least a team of six seven people to run a small Cafe small Cafe right I mean r cafe right I mean an average small gafe how much business would it do not much right I mean maybe they will make a profit of a lakh a month maybe average now for generating a profit of one lakh someone is getting an employment or 10 people are getting employment now there are big big companies again I'll not get into name taking they are generating millions and billions of profit they're recruiting like a profit to employee ratio basically they would be hiring one person so this simple analysis tells you that the growth engine in the economy are small and medium Enterprises these are not Fortune 500 companies now what has happened in India in India the corporate taxes are lower compared to personal income taxes compliance on small businesses alsoit is getting made someone has to go appoint a ca g Str one and all that right accountant maintain so many headaches are there and this is called as high compliance cost so if the compliance cost for small businesses can go down it can be a game changer it would allow for these small businesses to flourish entrepreneur so why are you pushing them for like so many compliances make life easy on them they will focus on growing their business maybe just having one Bakery they can have three four bakeries and they can add more jobs this is point two number three the critical problem in India is lack of quality jobs now I will name an economist Dr a if your mindset is poor if you cannot separate people from political ideologies their ideas then you're already mentally bankrupt nothing in the world can save you now Congress work of all the economists including Dr Rajan that does not mean that I'm XYZ party supporter so on that note Dr Rajan had said that you know what the service sector economy should be pushed service sector jobs should be created right because see think about it India land prices in land G those are one of the highest in the world for example just for context per square meter rate of real estate of Dubai is half the rate that of Mumbai okay this I'm not kidding this is actually the fact argument average income the per cap income of Dubai is higher than Mumbai but despite that the real estate of Mumbai is double that of Dubai now why because there is lot of black money in the real estate market now when there is lot of black money in the real estate market the cost of commercial shops go up cost of everything around you goes up off that's how it will be right similarly now how he hire like two more people to do that so everything goes into real estate so to say in simple words the cost of capital in India is very very high okay and therefore manufacturing jobs manufactur labal so therefore the capital goes up very very high if you put that factory somewhere in America maybe compared to that in India therefore so much of FDI Capital does not come to India and stay in India and jobs therefore focusing on manufacturing sector yes it should be done no one is against that India make XYZ and all that stuff practically what has been done that needs to be seen but what can be done are service sector quality jobs service sector it grew in India because we were exporting so much stuff companies like infosis TCS they exported stuff Industries which are truly exporting to the world and it is one such industry and more such Industries need to be created and they are most likely to succeed in service sector jobs so focus on service sector is the key fourth point is that we have inability to retain Talent now why is that becauseas number one is the hitting of glass ceiling for example if you want if you get like a one CR job okay now very few one CR jobs are there now if someone is extremely smart bright intelligent they are extremely capable people would they not want to earn one CR they would where would they find such opportunities most likely outside India so those are high paying jobs now we need those type of high paying jobs these are private Equity VC Consulting Investment Banking front-end jobs these are the type of jobs that we our politician should focus on bringing in the Indian economy high-end artificial intelligence machine learning ET for this we cannot have the mindset that is not the way to retain Talent the way to retain Talent is very simple that you give them recognition you give them appreciation if someone is a high performer then give them more opportunities so that is how you retain Talent they also feel loyal to you India May the net millionaire migration in the world is number two right China May there are 10,000 millionaires who migrate India May it's 8 and a half 9,000 ASP now you say China number one in China no it's not like that China number of rich people are also very high right so number of millionaires in China are much more compared to that of number of millionaires in India so adjustment then India will be far far higher so this is not a good situation in India and something needs to be done about it so then comes the final point but yes if some politician feels that I can be of help I'll be more than happy to give my services for free but I have no interest in joining politics now so again I will give you four specific pieces of advice and these are some things that you yourself can do so you're not dependent on any politician per se number one there should be apprentiship based model now this can be done by institutes at an Institute level for example when I went to NC there was a program called as entrepreneur in Residence they used to invite entrepreneurs they used to you know let the MBA cohort work with them on some startup and that was very nice right so that was facilitated by the educational institute itself so this can be done at an educational institute level College this can be done or made as a part of Curriculum by the national state government so to say this can be done third you yourself can do it for example you start approaching people on LinkedIn whom you look up to experiment but do it on some other people first go and engage with them on social media platforms cultivate a relationship how do you do it for example I'm writing some post some other person is writing some post engage on that post postage no that's not engagement engagement means that you write content you write something nice you give a useful point of view politely so all that is called as engagement so everyone reads like at least posts and all that stuff so say you are able to cultivate a relationship then ask to work on some practical project with them so relationship this is very important apprentiship is extremely critical important because you learn things really really fast now second key point that we can Institute something called as a reward system now reward system for example basic minimum guarantee for example if you go to a college okay and if that college cannot provide you three lakh four L job then right I mean that's plain and simple right college is charging you lacks and lacks of fees right there's no reward at the end no so make things accountable make colleges accountable College if you're charging so much fees this is the minimum guarantee that you need to give now you might say that this is a ludicrous idea right how can you give guarantee interview okay fine what you can do is that for example the college placement cell needs to be made accountable that these are the number of companies that should visit your campus if you are charging fees X and this is called as creating a merit oriented program why are they charging it just does not make any sense and student should write with the education Ministry with this idea if you're watching this video please go collect signatures from your class and write it to the Min maybe they will take a look at otherwise go on Twitter you go this is that I've suggested and here are like 50 signs is that stuff I will try to make it viral right so that's all I can do for you creating this reward system is critical number three that what can you do so there are two things that you need to differentiate on one is called as entrepreneurship now entrepreneurship is really tough right entrepr [Music] funding we don't know how to create like a pitch deck we don't know how to get featured on CH Tang or whatever right so right I mean honestly like entrepreneurship right basically what you should learn is how to build small profitable businesses now what is the meaning of small profitable businesses examp right for example I have built at least 15 small profitable businesses so to say and video you guys go and watch it that how did I build my Airbnb so to say I have used that as a case study you can can apply that now for example Airbnb there is a concept called as Arbitrage now AR basically for example you're not buying any property You're simply going and speaking with a homeowner and you're telling them that you know what boss your property is vacant can I please list this on Airbnb and if you have ability to Market it if you have ability to operate it you can do it and Airbnb all that no people are extreme entrepreneurial westerners are very entrepreneurial in terms of running this Airbnb Arbitrage but in our country the problem is focus on improving your skill set so please avoid this type of nonsense content and focus on things that are actually going to impact you there's so much stuff so much distraction in the society right now that if you're not focused you're not going to get anywhere which brings me to the final point which is around your mindset towards wealth and all that stuff I used to do well in my corporate job also if I would have stayed in my corporate job I would have become a partner I would have still made millions of dollars okay that's a fact I'm not saying this to boast I'm just telling you the reality almost everyone in my class who has graduated from ncad is making extremely good money why because to get into ncad you have to have like very solid GMAT score you have to do really well you have to get good jobs whatever right so I mean it requires a lot of effort to get into that similarly if you have gone to a good I good rank all that what do people do is it beneficial for you can you learn something from that person can you understand those Concepts is there Roi to a course then of course Like You Know da G is also a YouTuber some other educated person is also a YouTuber you can't compare those courses so to say look at if the other person is selling you some course or how they have built their wealth are they sharing something which is worth learning focus on that those are more important points another example right there is onec seconds space on my video then he makes like one hour video criticizing me so I have like no interest in arguing with him basically he was against like Goa Airbnb airbn this that by I built right I started buying from 2022 2023 I now have five properties so to say again not saying this to B There was an opportunity to do thisn now again there is very difficult to buy properties in Goa because there has been so much interest in the last 2 three years that interest was not created due to me that interest was created because the property Market in Goa was going up anyone who invested made a lot of money so to say including me and that was a legitimate Arbitrage so listen to all sides but please do not believe in pessimism criticize right I mean they will keep on criticizing you no matter what you do please differentiate between industry practitioners learn from them please avoid people who just keep on talking negative stuff please avoid people from whom you cannot learn and execute anything for example on this video I would have taught you at least one education oriented point that you can go and execute if that is the case then a press the like Buton and we follow this Channel and see execute it because when you execute it that is how your skill set will go up and that is how you will prevent yourself from this unpredictable world that we are living in where there is no job guarantee anymore and the situation does not seem to be improving thank you so much for watching and I'll see you soon

Channel: Akshat Shrivastava

Views: 259,720

Keywords: akshat shrivastava, wisdom hatch, wisdom hatch courses, stock market courses, akshat shrivastava courses, stock analysis, stock market analysis, nifty levels, macroeconomics, stock market investing, nifty 50, fiscal deficit, rally in stock market, when to sell stocks, retail investors, akshat shrivastava stock market course, uneducated youth of india, job situation in india

Id: EAD4l202RsY

Length: 24min 50sec (1490 seconds)

Published: Sun May 12 2024