'Earns Rs 10,000/Hour But Waste Time Saving Rs 500': Kunal Shah On Indian's Time-Money Disconnect
Highlighting the difference between Indian and Western mindsets when it comes to personal finance, Shah observed that most Indians are unfamiliar with the concept of measuring income in terms of time
Kunal Shah, founder and CEO of CRED, recently offered a candid perspective on Indian economic behaviors and societal structures, pointing to fundamental issues that, he believes, are holding back the country’s economic progress. In a conversation with Forbes, Shah focused on two central themes: the lack of awareness around the time value of money and low female participation in the workforce.
Highlighting the difference between Indian and Western mindsets when it comes to personal finance, Shah observed that most Indians are unfamiliar with the concept of measuring income in terms of time.
"Time value for money is an interesting concept that doesn’t exist for most Indians," he told Forbes. Comparing this to the American approach, he said, "In India, you ask anyone what their salary per hour is, and they have no clue."
He believes this disconnect leads to inefficient financial decisions. "People who make Rs 10,000 an hour, spend an hour trying to save Rs 500 on a flight ticket," Shah pointed out, calling it a form of unrecognised time wasting.
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Lessons From China On Gender And Growth
Shah also shared insights from a recent trip to China, where he noticed a stark contrast in gender dynamics within the workforce, particularly in tech.
"Every meeting I went to had more women than men. And this especially in product tech companies," he noted. This observation led him to reflect on the economic implications of gender disparity in India.
"I realised that the data was quite bleak for India, that female participation in labour was extremely low. I realised that our per capita income cannot grow with one gender working," he said.
Societal Impact Of Economic Imbalance
Beyond economic metrics, Shah suggested that this imbalance creates a specific social dynamic. "If one gender drives the income of a household, it becomes a certain type... By the way, it creates this unique dynamic that divorce rates are lower in economies where females have lower financial independence," he added.
Shah asserted, "I am a firm believer that the country will not get to prosperity with one gender contributing alone."
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