GDP of India is at the bottom of the ocean for the first
time in history with a decline of 23.9% in the first quarter of 2020-21. But do
you know the difference between Indian GDP 2020 and Titanic? At least people on
Titanic had some hope but GDP for India has no hope left as the current finance
minister of India ‘Mrs. Nirmala Sitharaman’ doesn’t even care to face the
truth, she just blames it on god and leaves it to them. But the question
arises: Is it really the act of God or act of fraud by the government?
What is GDP of India?
Gross domestic product or GDP of India latest in the
first quarter of the year 2020-21 is at an all-time low with -23.9% and that’s not
all, these are just provisional figures. The real impact of Indian GDP quarter-1
2020 might be more devastating than all of these figures. This is the worst GDP
drop in the history of Indian economics. Just for your understanding of how bad
the situation is, we have some data for you. The Fiscal deposit has reached the
value of above 100%, so the government has no money to spend now which means no
more development. The income of a common man has decreased but the expenses kept
on increasing.
Let’s
understand more about GDP first.
GDP
shows the reality of any country, it is like a mirror showing what is happening
around you. The GDP of any country depends on many sectors but we can divide
these sectors into 4 categories:
1)
Consumption
2)
Investment
3)
Import/ Export
4)
Government spending
These
all sectors need to work positively for a positive outcome on GDP but things
have been worse since the COVID outbreak and the lockdown made it even worse.
In India’s case, 3 out of 4 were impacted negatively and the result is India
has the worst GDP across all other major countries.
The
whole India was under lockdown so the demand and supply chain was broken, hence
the consumption decreased. The decrease
of consumption led to no or very low investments by the industries and both the
sectors were down. In a report, the biggest automobile company of India “Maruti
Suzuki” stated that they didn’t sell a single automobile in the months of
lockdown. In another report, it was found that the cell phone demand in India
during the lockdown was almost zero.
The
import and exports are a major part of any economy; India is one of the biggest
importers of oil in the whole world. During the lockdown months, the
consumption of petrol-diesel declined and hence the imports also declined. The same
goes for exports, when everything was shut nothing was manufactured so nothing
was exported. However, government spending was very high during the lockdown
phase but it was not enough to take care of the entire negative from other
sectors.
Slump
in growth of each sector:
∎ Electricity = -7%.
∎ Public administration = - 10%
∎ Travel, hotel and Transport = - 47%
∎ Personal expenditure = - 27%
∎ Agriculture = +3.4%
The only sector that had some positive outcomes is agriculture but it was not because more crops were harvested this year or anything. It is just that food is an essential commodity and it was not shut during the lockdown phase too.
GDP of India As Compared To Other Countries
The picture clearly shows that the GDP of India today is the worst doing GDP in the
whole world. Did you notice that the GDP of China is still positive even when
the whole pandemic started in China? It is enough to make anyone believe that
the pandemic was planned by China. But the question is why India is at the
worst spot?
There
are many reasons for this but the biggest one is a complete lockdown. India
imposed the world’s biggest lockdown to stop the spread of COVID-19 without
even understanding the impact it will have. Even China only shut Wuhan where the
virus originated, not entire China. The government should have given the power
to states to impose lockdown accordingly. The impact of lockdown was very
severe, 130 million jobs were lost and India was losing around 4.5 Billion U.S
dollars every day in the first 21-day lockdown.
Now,
the GDP is at an all-time low and negative for the first time in nearly 50 years.
Our beloved Finance minister called it “An act of God” but somebody needs to
ask her, how was GDP doing before this pandemic?
Her
answers always a world apart from the truth but the answer is the GDP of India
last quarter was at 4.2% and it was declining for a long time. Every quarter
there was a drop in GDP, so India had this coming. It’s just that pandemic
fast-tracked it. India used to be characterized as a developing market economy
but this will take India back at least 10 years. The situation is so severe
that it will at least take 2-3 years to reach the 0 marks when we talk about
the GDP.
All of this makes believe that the GDP of India is not the top priority of the Indian government. They rather build the tallest statue than worry about GDP.
Now, let’s see if it was just an act of god or another fraud?
The government is only blaming the pandemic but payment stalled years ago. Every step that the Indian government took in the last few years has led India here. Every major decision by the government backfired but they kept telling the public that everything has worked fine and everything is good but if you look at the numbers nothing is fine. BJP showed that IMF projected India will be leading in GDP among all other countries in 2020 but that was old data from long ago. Actually, IMF projected that Indian GDP will be at -4.7% and that was even before the pandemic, so it was clear that India was already heading this way.
● Demonetization was the worst economic policy; it didn’t bring any black money back as it was promised or did any of you really got 1.5 million? From the last 8 quarters, the GDP of India is only coming down. This graph is enough to show you how the GDP declined every year since the year of demonetization. GDP of India year wise:
● GST failed miserably, tax collection in India is at the lowest and this is the biggest tax shortfall in the history of the nation. The government has no money to spend on development so they are selling PSUs to private companies to generate some money.
●
Make in India/Aatamnirbhar Bharat are not anything more than words.
●
Ease of doing business is just a hoax. The government never even cared about
asking the industrialist about how easy is it for them to do business in India,
they were just happy that India ranked in the top 10 countries for ease of
doing business survey by World Bank. The ground reality says otherwise after
the pandemic 56 major companies moved their production from China. India could
have used the opportunity to get more than 30 out of 56 but India only got 3
out of them. This is the reality of the Ease of doing business in India.
● Denial is the biggest cause of everything happening here. The government is in total denial mode and doesn’t even admit that problem is severe. As long the government is not ready to accept its fault, the situation will never solve.
How To Make It Right?
There
are many things that can be tried or done to make sure the GDP growth comes
back to the track. We as citizens can also make a huge difference by buying products
that are made in India and helping small businesses grow. Although much bigger
steps should be taken by the government to make it right, it might not happen
in one quarter or two but certainly, we can be back on track in a year or two
if the government tries. Here are some things that the government needs to do
on an urgent basis to help revive the GDP:
●
Skip high import taxes
●
Business opportunities in agriculture
●
Focus on ease of doing business.
● Help growing rural area development
More About Indian Government
Whole India was fed up with the rule of Congress
government, their frauds, price hikes and corruption everywhere. The youth of
India wanted a new government whom they can trust; they believed in Mr Modi
and thought he will be the one who will take care of everything for them as he
also promised in his speeches before elections. The Current Prime Minister of
India, Mr Modi accused Congress government of everything but back then India
was one of the fastest-growing economies, the Indian GDP graph was going up
every quarter.
Now things have changed, GDP is only going down with no
hope of coming back up again, India is no more in the race of most developing
countries and the unemployment rate is almost triple of that congress rules
time and is at highest in the last 45 years. Well, god is the culprit here, to
be honest; I mean how he dares give anyone the questionable ability to ask
anything against the government. Calling it fraud when other governments do it
and making it an act of god when your government does it, another masterstroke
by Mr Modi. "Modi hai toh mumkin hai".
Apart
from this, you got to love this government of India, they know how to take care
of its public or should I say play with their minds. Every time something comes
up against the government, they find something else to deviate the minds from
the problems. The best and current example being when the GDP of India came
into limelight and how the government is failing at everything they promised,
the divergence of India vs. China came up with more apps banned. It surely took
people’s minds off the GDP problem. Waah Modi Ji waah.
India has seen many politicians but never seen someone like Finance Minister Mrs Nirmala Sitharaman, her responses whenever questioned about the problems are epic. When she was questioned about the slowdown in the auto industry, she came up with such a witty reply and blamed millennials for it. She said that today’s youth doesn’t want to invest in EMI to buy an automobile, instead prefers to take Ola, Uber, or the metro. Well, this should be a warning for you there can be a fall in the rupee coming now, as youth invests in crypto-currency or housing problems as youth uses Oyo hotels or Airbnb instead of buying houses.
Another
witty reply came when she was asked about increased onion prices she replied
that her family doesn’t use onions. Wow, that must be the reason why the government
sold BSNL, or railways because they don’t use them anymore, they use Jio and
metro now. Well, she might not be the best or brightest of Finance ministers
but she surely is the savage one.
Conclusion: After reading these facts and figures, we are
sure you are clearly able to decide between the act of god and fraud. The thing
is these governments will always keep fighting and find new ways to make people
fight for them but one thing, Indian people should keep in mind is that these
governments are not bigger than our country “India”.
Disclaimer: We are not anti-government or
anti-nationalist, nor we support the ideology of any government. We just want
all of you to know what is going on around you.
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