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Saturday, August 31, 2013

the two sides of india gdp

The long-term growth has been quite good for India. And there is a reason to argue that it will continue to be good, given India's potential.

It's been quite a journey to reach $1.9 trillion. 

The nominal GDP growth: 


The real GDP growth adjusted for inflation:


Just that comparison with US is not warranted.

But the recent quarters tell a different thing. The reason is simple, but asks a few questions:

Are we an investor friendly nation? Are we encouraging domestic firms to invest? Are we encouraging foreign firms to come and invest?

If we did, the rupee would not fall the way it did; we would have had far better infrastructure; power and oil & gas production would have been much higher.

Do we have a healthy environment for creating jobs? Are we giving the poor and unemployed jobs, rather than food, to feed themselves for life? 

Are we cutting the corruption from system? Are we making the system market-driven, rather than vote-driven? 

There are many more, but I guess we get the point. Heck!

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