"GDP - Key Element To Understand countries health & Progress "

India in 1st quarter of the fiscal year 2021 having slumps decline GDP of -23.9 % . this is one of the most important topic of discussion . lets understand its reasons and solution for come over from this problem .

The way we check our physical by doing BP , sugar and other tests, the same way the health of the country's economy is checked by GDP. Many people are sitting as shock if their BP or SUGAR seen suddenly grows or down in a test. in same way many of us shocked after looking recent figures of GDP for 1 quarter . The fiscal year starts in India from the April , It is for the first time in 40 years when the GDP registered negative growth

The information about January to March 2020 and the current quarter of July to September is also predicted to be lower . The rest of the world, like Uk, France ,Italy , Canada is also suffering from the effects of the GDP , Even so China "birthplace of Corona " is less affected in comparisons of other and still shows positive figures

what do you mean by GDP ?

country's economy predicts by look at its GDP , the value of goods and services produce in a certain period of time is called as GDP .these statistics are publish from the CSO (Central Statistics Office ) for that performance in different sectors are considered, example infrastructure , Agriculture , Banking etc . the GDP figure of any quarter is calculated by comparing to the same last year quarter .

Lets take an example of recent number i.e 23.9 . it tells that all production for April to June, in 2020 was reduced by 23.9 % ,of all production in April to June 2019 . The construction industry has Highest fallen by 50 percent, under that 47 percent in trading & hospital industry and 10 percent in manufacturing but agriculture sector showing upward figures by 3.4 percent but still it very small in context of india's 58% of economy dependent on agriculture

Generally GDP rates decrease due to the economy crisis. majorly GDP affected by two factors 1) Drought & 2) Oil prices in the international market are affected by two factors.

Earlier in the year 1965, 1972 & in 1979 India was found in a big financial crisis, but this is the first time to know that the rate of growth will go below zero, this is the direct result to common man's income. Let us understand from one example.

A person's monthly income is ten thousand rupees. The GDP growth rate is 5 %. In such a situation, his monthly income increased by Rs 500, but if GDP growth rate is fall from 5 % to 4% then his income increases only by Rs. 400 , the fall in GDP by 1% simple means average income decreased by Rs 100 and overall his income will reduce by Rs 1200 yearly

As the India have a big difference in income of poor and rich , the highest blow to GDP falls on the poor, also tax collection decreases due to low production , affects the government's vault. the  GST collection declined for the second consecutive month in August to Rs 86,449 crore, the On year-on-year basis, the August collection was 12 per cent lower compared to Rs 98,202 crore mopped up in the same month last year. So as the state is getting its compensation, it can affect development works and other facilities in the state. Corona means a Act Of God and it affect majorly to our economy said by Finance Minister Nirmala Sitharaman .

To recover from this Major challenge india needs to focus below factor on high priority

1 Agriculture development

2 Population Controllability

3 Poverty

4 Infrastructure Development ( Economic & Social )

6 Unemployment

6 DCF ( Domestic Capital Formation )

7 Health & Education

8 Industrialization Development

9 Dualistic Economy ( Modern + Traditional Economy )

10 Poor Quality of human Capital

strict and logical financial measures on these points will be taken to India through this crisis Definitely .

By Saurabh Kulkarni