he recently published figure of India’s Gross Domestic Product (GDP) shows that it increased by 20.1% in the first quarter of year 2021-22. While the percentage figure looks splendid, it was because of the base-effect. The percentage rise in the GDP was as compared to the GDP of First quarter of year 2020-21. This was the time when India implemented a stringent lockdown because of the covid outbreak, which resulted in a massive 23.9% of contraction in India’s GDP. So the real way of looking at this number is that India’s GDP during this period is lower that what it was in April-June 2018.Read More What Can We Expect Out Of India’s Economy?
But, over the years GDP, as a measure, has become increasingly flawed. Some flaws are rooted right in its origin, and some have developed over the years. To start, let us look at some of them in the above formulaRead More Why ‘NOT’ To Trust GDP
Next year, the same time around, there would be an upsurge in the social media with people and ministers saying that the economy is back on track as the GDP figures will most probably show a double digit growth. Yes, you read that correctly, a DOUBLE DIGIT growth! Now the readers would wonder how is that possible that we will shoot up from a negative growth to a double digit growth?Read More The Crashing GDP