Wednesday, September 02, 2009
Seems that India grew 6.2% in the last quarter although exports fell over 20% for 10 months in a row. This is growth of the GDP, the sum total of all goods and services in the country. Food prices have risen over 20% yoy hitting the poor. Is this counted as GDP growth? In this town a shop, some 300 sq. feet, is being sold for Rs. 13 million, a ridiculous amount given that at 7% interest this amount of money will earn around Rs. 75000 a month in a bank without any risk whereas a shop this size may never generate even half that amount. Is this counted as growth in GDP? The government is doling out alms to rural poor at Rs. 100 per day for doing nothing while fiscal deficit is set to reach over 7% probably resulting in increase in interest rates. Is this counted as GDP growth? Indian industries are losing over Rs. 4 trillion a year because of poor power supply which will not improve in a hurry. Meanwhile household electricity bills in Delhi are rising so high that they are almost equal to one person's monthly salary to compensate for all the people who are stealing electricity. Is this counted as growth in GDP? If this is growth then Zimbabwe was the richest country in the world last year when its GDP was doubling every hour? Obviously India is not in that category but the lies are the same.
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