Tuesday, November 30, 2021

Who is the GDP for?

"Chief Economic Adviser (CEA) KV Subramanian on Tuesday exuded confidence that India would achieve double digit growth in the current financial year on the back of policy initiatives and continuing reforms," ET. He also said the country is well poised to meet the fiscal deficit target of 6.8 percent of GDP." "The Economic Survey 2020-21, released in January this year, had projected GDP growth of 11 percent during the current financial year ending March 2022." This optimism is based on the news that "India's GDP grew by 8.4% in the second quarter of current fiscal as economic activity gradually inched towards normalcy after the second virus wave. The growth comes on the back of a low base last year when the economy had contracted by more than seven percent," ET. "With India's GDP expanding by a better-than-expected 8.4 percent in the July to September quarter, industry chamber PHDCCI on Tuesday said the country's economic growth is likely to be in double digits in 2021-22," ET. "The chamber projects the overall GDP growth to be in double-digits at 10.25 percent for 2021-22," said President Pradeep Multani. Output of 8 core sectors, including coal, steel, cement, fertiliser, electricity, natural gas, refinery products and crude oil grew by 7.5% in October compared to 4.5% in September and -0.5% in October 2020, ET. "The government's fiscal deficit has worked out to be Rs 5.47 lakh crore (Rs 5.47 trillion) or 36.3% of the budget estimates at the end of October 2021, as per the data released by the Controller General of Accounts (CGA) on Tuesday," ET. A deluge of good news on the economy according to the government and its stooges. "I feel, K-model is wrong," said former finance minister of West Bengal Amit Mitra. "My question is why did 35,000 high net worth entrepreneurs leave India between 2014 and 2020." "Of late, even the top is narrowing down to just a few. One has to discover a new alphabet to describe India's recovery. At the bottom there is a complete erosion of the informal sector triggered by a national lockdown with four hours notice (March 25, 2020)," ET. But do these claims and counter-claims by the government and the opposition really matter to people? Do people understand what GDP means or are they just concerned with where their next meal is coming from? There was an 8% fall in openings for white-collar jobs in November, at 295,000 compared to 320,000 in October, ET. "Nearly 139,045 cases under crimes against Dalits have been registered in different states between 2018 and 2020 with 50,291 such crimes reported last year alone, the government told parliament on Tuesday," ET. Dalits are our lowest castes, known as untouchables at one time, segregated and banned from entering temples, Britannica. A study by the Centre for New Economics Study, OP Jindal University showed that, in Lucknow, "the mean monthly income from labour work has fallen by 62%, that is, from Rs 9,500 per month in pre-pandemic times to Rs 3,500 now per month. In Pune, the mean monthly income of an average worker fell from Rs 10,000 to Rs 4,500, a 54.5% per month," Scroll.in. It is impossible to afford rent and food with such paltry income. Should they be impressed by the 8.4% GDP growth when they are earning over 50% less? Who is the GDP for?    

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