Wednesday, December 25, 2019

Secret 🀫 about GDP full form? || *Facts* why India's GDP broken Down

GROSS DOMESTIC PRODUCT


GDP represents Gross Domestic Product. 
It is the all out market estimation of the considerable number of merchandise, items and administrations created inside a nation in a particular length of time. It is utilized to quantify the size of an economy and generally speaking development or decrease in the economy of a country. It shows the financial soundness of a n toation just as determines the expectation for everyday comforts of the individuals of a particular nation, for example as the GDP builds the expectation for everyday comforts of the individuals of that nation increments. A nation having great GDP is considered as a decent nation for living reason. In India, there are three principle divisions that add to GDP; industry, administration segment and agribusiness including united administrations.

HOW TO CALCULATE GDP

There are numerous ways to deal with figure GDP. On the off chance that we talk about a straightforward methodology, it is equivalent to the aggregate of utilization, net speculation and government spending in addition to the estimation of fares, short imports.

FORMULA 

GDP = private consumption + gross investment + government spending + (exports − imports)

HISTORY OF GDP

he cutting edge idea of GDP was first created by Simon Kuznets for a US Congress report in 1934. In this report, Kuznets cautioned against its utilization as a proportion of welfare (see beneath under restrictions and reactions). After the Bretton Woods meeting in 1944, GDP turned into the principle apparatus form estimating a nation's economy. around then gross national item (GNP) was the favored gauge, which contrasted from GDP in that it estimated creation by a nation's residents at home and abroad instead of its 'inhabitant institutional units' (see OECD definition above). The change from GNP to GDP in the US was in 1991, trailing behind most different countries. The job that estimations of GDP played in World War II was vital to the resulting political acknowledgment of GDP esteems as pointers of national improvement and progress. A pivotal job was played here by the US Department of Commerce under Milton Gilbert where thoughts from Kuznets were installed into legislative establishments.

Why India's GDP  brokendown?


A five trillion dollar economy has been promised but in reality, the economy is moving at the rate of 5%.

In the first quarter of the financial year 2020, our GDP growth rate has dropped down to 5%, which is the lowest in the past 6 years Talking about nominal GDP, it has dropped below 8%, which is the lowest in the past 17 years   That is, the last time the Nominal GDP was in such a bad shape was in 2003 And don't forget that many economists have claimed that these GDP figures are manipulated.



They have been exaggerated and the government has manipulated the numbers
For example, the former Chief Economic Adviser of the Modi government, Arvind Subramanian has stated that
The GDP growth rate has been overestimated by 2.5%


So going by his calculations, the real GDP growth rate at present could be upto 2.5%
It is such a terrible state of affairs:-

  1. The manufacturing sector has showcased a growth of merely 0.6% in this quarter which was 12.1% in the same quarter last year.
  2.  agriculture sector has growth by a mere 2%, while it was growing at the rate of 5.1% last year
  3. The construction sector too, has grown by  merely 2%

Financial experts, economists and intellectuals have been saying for the past three years that our economy is in danger
But each time they opened their mouths, what would they get to hear in return?

  • "You're an urban naxal.
  •  You're anti-national. 
  • You belong to the Khan market gang."

==>abuses were thought of creatively and then hurled at them.
Think about it, had this creativity been applied in the economy,  the country wouldn't have been in this state

Now Modi has arrived
What
 has happened now?

Such was the supreme level of blind follower-ship that people were not even ready to accept facts
To some extent, I wouldn't even blame the people Such was the environment created by the Godi media at that time And by the BJP IT cell.
Whenever you looked, the media- both social and mainstream was engaged in issues of Hindu-Muslim and India-Pakistan Whenever someone talked about the economy, they were stifled
Infact the government itself indulged in so much of data manipulation.

How would the people become aware of these facts?

Prior to the elections, a report was leaked that our country had the highest But no one was ready to agree at that point of time
The GDP data was manipulated and the members of the National Statistical Commission resigned in this regard
But having manipulated the data and buying out all the media, And having resorted to histrionics of Hindu-Muslim and India Pakistan throughout the country
you can conceal the truth only for a short period of time.

The truth is something that will always manifest itself someday And that is exactly what happened

This happened because the CEOs of the companies began to say that:-
  1. there was no one to buy their cars 
  2. The people do not have enough money to buy even biscuits or underwears

Now they cannot bribe the CEOs of all the companies to lie for them,It is not possible to buy out all the CEOs of all the companies and this is why the truth came out in the open.
The biggest question here is why did the economy reach in such a state?

What are the reasons behind this?
Come let us examine them one by one,
The first reason in my opinion would be demonetization:-
Demonetization was the point from where the economic growth started to slide
I can recall that right after demonetization, when 99% of the public was supporting demonetization,
then, some of the learned politicians like Manmohan Singh and Arvind Kejriwal had said that-
"this would be a huge threat for the country"
That is exactly what is happening
Manmohan Singh had said that the GDP growth rate would fall by 2% and this is exactly what happened All the harmful and even the positive points of demonetization have been summarized in this article go and give  a look. 

But here's a new point: A fresh report has revealed that corporate investment fell by 60% after demonetization, This is a huge number and finally people are talking about the falling investments.

The second point is GST-
Theoretically, GST is a great thing because it simplifies the tax system But, the way in which it was implemented in our country,
It was done in a very complex and complicated manner.
It was very difficult for the common man and the companies to understand it, which led to huge losses

The third point- 
Budget 2019, which was brought it a spectacular red colored packet.
The budget did not appeal to the investors and stock markets worldwide.The stock market crashed terribly after it And out of the money invested in India, 22.5 billion rupees was pulled out by foreign investors
Ever since the day the budget has been announced

The fourth point is-
Unemployment The conditions are the worst in the past 45 years the people do not have jobs and they are told to sell fritters
And the people that do have jobs, are not getting increments.

For example;- the rural wage growth, that is, the salaries of the people living in villages.

How much growth it seen?

In the financial year 2014, it was growing by 14.6% And now, in financial year 2019, it has slid down to a mere 1.1%.

The fifth reason: the attacks aimed at the independence of institutions and public sector companies.
There have been attempts to try and install government sycophants in every institution
who do not have any qualifications due to which, the public sector companies have been enduring losses.
Take the example of ONGC
Sambit Patra was included in the board
Now Tell me, what qualifications does Sambit Patra ji have to be a member
ONGC used to be one of India's most profitable companies But it faced a loss of 4,000 crores in gas production in 2018.

Hindustan Aeronautics Limited

HAL has been sitting on its worst cash balance in the past 15 years
HAL had to borrow 1000 crore rupees to pay salaries to its employees.

The next reason is the scams and frauds in the banks that the media does not tell you about.
In 2018-19, there has been an increase of 74% in bank frauds, in comparison with the last year
This is stated by the RBI report itself
Bank frauds worth 71,000 crore rupees took place in the past one year

Finally, I'd like to say that GDP isn't the sole criteria for development.
So it should not be that we compromise on other things and focus only on GDP growth
Because happiness, human development, clean air, a clean environment, peace of mind
All these things are vital for development
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