The country's gross domestic product, GDP, has fallen by about 24 percent. Ever since the government released GDP figures in every quarter in 1996, it has recorded such a huge decline for the first time in a quarter. But do GDP figures present the real economic picture of the country? Do these figures show the real situation of the country in the midst of Corona infection crisis? There is no doubt that GDP figures make a picture of the country's economy, but that picture is half. Like, a picture is also made from the stock market but it is even smaller.
The GDP figures have only made it easier to estimate the magnitude of the country's economic situation and the situation of the common people. Of the eight core sectors, the government produces GDP data on the basis of production data, seven of them have fallen drastically. Agriculture is the only sector which has a positive growth rate. It was only after the Corona crisis began that it was said that the country was moving in such a direction where farming and agriculture would save the economy and the common people as well. This was also evident from the figures for the first quarter of the financial year. But apart from this, there is a trend of decline in the rest of the sector, which is not expected to recover in the next quarter i.e. July-September.
The Make in India program has been in operation in India for the last five-six years, but the construction sector has fallen by 40%. Construction, hotels etc. sector has declined by 50 percent. The spokespersons of the government and the ruling party or their bonded economists, including many big names, are saying that this was bound to happen. That is, there is nothing new in this, it is corona, so it has happened. These great economists have also reported that there has been a 20 to 25 per cent decline in GDP in Britain, Japan and even in all the developed countries of the world.
But this is not the reality. This is a vicious trick to entice people. As the Corona figures were persuaded that there is a big crisis in the countries of the world, there are more cases, more people are dying and the situation is fine due to Narendra Modi in India. In six months, the situation became such that India reached the second or third position on every scale, leaving all countries behind. Similarly, the GDP figures are also being recreated. Britain and Japan have also declined, it is right, but how can they compare to India? Those countries are giving cash money to their citizens. The crisis has not affected the common people here. Secondly, even if someone's earning is one crore rupees and there is a decrease of 24 percent in it, then there will not be much impact on his health, but if someone earns 10 thousand rupees, then a fall of 24 percent in it can have a big impact on his life. This is the difference between Britain or Japan and India. Despite the huge decline, they are not affected much because their economy is large, the per capita income is large, the foundation of the economy is strong and above all the government has money to give to its people. But for India the decline of GDP has become a cause of crisis.
The second thing is also that the economy of the countries with which India's GDP is being compared is almost entirely of the organized sector. There the unorganized sector is very small or nominal, while 80% of the economy in India is of the unorganized sector. 80 per cent of the people have business and jobs in this area, which is not evident in GDP. The fact is that the unorganized sector of India is completely destroyed. Everything is devastated. Millions of self-employed people sat at home for months. After unlocking they are sure to take the risk and leave their homes but their business is not going on. Earnings in every business have come down to 25 percent or even less. The MSME sector, ie small and medium scale industry, is almost on the verge of sinking. Thousands of companies in this sector have closed down and the existing ones have got manufactured goods, which is not in demand anywhere. The job of the people working there has been lost and the companies running the company are not able to repay the bank's loan despite all the exemptions, due to which the NPA of the banks is increasing.
In fact, the country's economy is stuck in a vicious cycle from which it is difficult to get out. The vicious cycle began in November 2016 with demonetisation. In the countries of the world where the economy is fully organized, the economy of lace cash is right in a country like India, where demonetisation of 80% of the unorganized sector has become a cause of ruin. The situation in the unorganized sector started deteriorating from day one. The process of shutting down the allegedly fake companies has started from above, in which millions of small companies have been shut down. The result was that the country's economy was neither digitalized nor organized, it was destroyed in reverse. If the demonetisation had not happened, the country's economy would have easily faced this crisis of corona virus. For example, during the global recession of 2008, India's economy had run well. Similarly, the economy could survive in the crisis of Corona. But due to the hasty decision of demonetisation and GST, the economy was already in bad condition and at the same time Corona got hit and the global recession is also going to come.
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