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GDP Contraction , An act of God?

 


On 31 August 2020 , The data released by National Statistical office (NSO) of India's GDP for Q1 i.e. April-June is slipped or contracted by 23.9% . This contraction is the worst in the history of India after Independence. However , Godi Media which is completely busy in giving judgement to Sushant Singh Rajput case won't pay a heed regarding this failure of Government. For some adorers it can be a masterstroke too but i don't wanna interfere in their thinking and their blind faith. 

                       Source - BusinessToday.in

On 27 August , Financial Minister of India , Nirmala Sitharaman said , Covid-19 is an 'act of God' and it could lead to the contraction of economy. The centre gave two options to states after GST council meeting in which state governments were asked to borrow thousands and lakhs of crore from RBI due to GST revenue gap of 3 lakh crore this  year. However GST compensation Act 2017 guaranteed states compensation for any loss of revenue in the first five years of GST implementation making this law false and made the states 'Atamnirbhar' . 

WHY IS GDP SO IMPORTANT FOR A COUNTRY ?

Gross Domestic Product(GDP) of any country defines the status of ongoing condition of economy . It gives statistical information about the size of economy and how economy is really performing. A downfall in GDP rate suggest the contraction of economy. The major factor for economic contraction is drop in real personal income , retail sales and industrial production. 

EFFECTS OF ECONOMIC CONTRACTION

The major impact of economic contraction is unemployment. Companies stop hiring to save money due to low demand of products. Businesses cut spending , then lay off workers . People save their money due to which the demand and supply chain in the market decreases . Businesses of small and medium classes have to be closed , due to which the unemployment phase is on the threshold.   People have to choose the wrong path to make their living , due to which the level of crime in the country increases rapidly. 

Even after all these failures , some shameless governments claim that they are giving 1 crore jobs every year which are left as slogans. However , unemployment does not matter to the devotee group. They always stand in front of their masters to defend them from truth. Godi media also play vital role in defending Government. 

If economic contraction is an act of god than whom will Finance minister blame for her failure before march 2020? 

INDIAN GDP BEFORE MARCH 2020

Q2 2018-19      7.1%

Q3 2018-19       6.6%

Q4 2018-19       5.8%

Q1 2019-20       5.0%

Q2 2019-20        4.5%

Q3 2019-20        4.7%

Q4 2019-20        3.1%

Is this also an act of God? Whenever you talk about God , I am reminded of the 11th incarnation of Vishnu. You must have understood whom i am talking about.  If any bureaucratic person puts his mistakes on God , then understand that the country is on the path of progress where there is only sorrow and suffering. Have your forgotten the $ 5 trillion economy? This was not a jumla either ,  was it? Or will India depend on God alone? 

BY Abhishek kumar


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