Shocking figures have come out about India's economy going through a continuous bad phase.
According to the official figures revealed on Friday, between July and September in the Indian economy, the country's gross domestic product i.e.GDP was just 4.5%.
This figure is at the lowest level in the last 6 years. India's GDP was 5% of the previous quarter.
As soon as the new GDP figures were revealed, the opposition Congress began to surround the government.
Congress spokesperson Randeep Surjewala said, "India's GDP has come down to the lowest level in six years but why is BJP celebrating?" Because they feel that their GDP (Godse Divisive Politics) will bring the growth rate to double digits. ''
Former Prime Minister of India Manmohan Singh has also expressed concern over these figures and said that the changes the government is making in the country's economy are not proving helpful at all.
To know how dangerous these figures of GDP are for the Indian economy. Of bbc Business Correspondent Arunoday Mukherjee Talked Economist Vivek Kaul Sec Read their perspective-
The GDP figures show that India's economy has collapsed. If we look at the different figures of GDP, the growth rate has been 4.5 percent because the government expenditure has increased by 15.6 percent.
In such a situation, if we keep the government expenditure aside and then look at the entire economy, we will find that the situation is worse. Apart from this expenditure, the growth rate of the Indian economy is about three percent.
So, the growth rate which is still showing little is because the government is spending too much of the government already. You can also understand this that the growth rate of private sector has become almost nil.
Of the Government Steps What happened to
The government had taken some steps to bring the economy back on track like corporate tax was cut. With this, the Reserve Bank of India has cut interest rates many times. But cutting the rate will not make much difference.
Actually, RBI can cut the interest rates but till the banks do not reduce their interest rates then there will be no effect. Banks are also not cutting the interest rates because the rate at which they are raising money is very high and it will not be reduced until the government expenditure is reduced because the government also raises money from the market itself.
If the government reduces spending in the current situation, more problems will arise.
GDP data on common peopleeffect?
After seeing such figures, people have started to lose their trust in their economy. In such an environment, people start cutting their expenses.
When too many people start cutting their expenses, then it also creates problems for the economy, because when one person spends money then another person earns money.
If a large section of the society will reduce spending money, then it reduces the income of the people and then those people also reduce their expenses.
In this way it forms a cycle which has a very negative impact on the economy.
How serious are these figures?
The GDP figures need to be viewed very seriously, as the growth rate of the private sector has fallen to three percent.
If we look at the growth rate in investment, it has come down to one percent, it means that the investment is becoming almost nil.
Until the investment in the economy does not increase, where will the jobs be created, till the jobs are not created, how will the income of the people increase and when the income of the people will not increase, then the people will not spend. How will private consumption increase when people do not spend?
It is all connected with each other in a similar way.
what Step Raised Government?
In the situation where India's economy is there, nothing can be done by taking immediate steps.
The steps that the government has to take right now will be seen after a long time.
For example, if the government works towards labor reforms or land reforms, then its positive effect will be seen gradually in the long run.
Therefore, there is no shortcut to improve the economy, the government does not even have a magic wand to improve the economy as soon as it is rotated.
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