Why are young Indians engaging in risky trading like with SEBI?

Young Indians are drawn to high-risk, high-reward financial activities, influenced by the pursuit of quick money and the blurring lines between investing and gambling.

What is the real wage situation for youth in India?

Despite nominal wage increases, real wages for Indian youth have declined due to inflation, impacting their purchasing power and financial well-being.

How has youth employment changed in India?

Youth employment has improved, with higher labor force participation and lower unemployment rates reported between FY18 and FY24.

Home / Business and Economy / India's Youth Chase Quick Cash, Not Wealth

India's Youth Chase Quick Cash, Not Wealth

3 Jan

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Summary

Young Indians increasingly engage in risky financial ventures.
Real wages have declined despite nominal earnings growth.
Youth unemployment has decreased, but earnings stress persists.

India's Youth Chase Quick Cash, Not Wealth

A significant shift is observed in India's financial landscape, with young individuals increasingly participating in riskier ventures beyond traditional stock markets. Intraday trading, derivatives, cryptocurrencies, and even real-money gaming apps are gaining traction, creating a thinner line between investment, gambling, and gaming. This trend follows a period of wider participation in stocks and mutual funds post-Covid.

While youth employment has seen an uptick, with labor force participation rising from approximately 38% in FY18 to 47% in FY24, and unemployment declining to around 10%, the core issue lies in earnings. Nominal average monthly wages have risen only slightly, but with annual inflation around 5%, real wages have actually decreased from over Rs 12,000 in FY18 to about Rs 11,200 in FY24.

This economic pressure appears to be driving the search for rapid financial gains rather than long-term wealth accumulation. Regulatory bodies like SEBI have noted substantial losses among young traders, and the government is also working to curb betting and gaming applications, highlighting growing concerns over this risk-seeking behavior among India's youth.