Which Economy we are in India ?

Good morning.

As I am writing this blog, I am unsure?What state of the economy is currently in India.

Are we in recession, stagflation or inflation economy?

The question comes to how these economies are hitting the common man today.

If I have to define all the three above economies mentioned

Inflation in the common man language is a general increase in prices and a fall in the purchasing value of money.

Stagflation is characterized by slow economic growth and relatively high unemployment, or economic stagnation. Which is at the same time accompanied by rising prices.

A recession is a period of declining economic performance across an entire economy that lasts for several months.

To understand the above economies we need to understand a bit about GDP.

GDP measures the monetary value of final goods and services produced in a country in a given period of time (say a quarter or a year).

I have been witnessing the bigger gap happening between rich & poor, middle criteria almost vanished in India.

?After 3 years of the Covid pandemic, lockdowns, job losses, business losses life losses, I witnessed our societal spending & economic activity collapsing.

On the other side in the current scenario in our Indian economy, where is a slowdown, & recession seen???.

Today holidaying & travel is at their elevation, no place available in hotels, and flights domestic or international are all full. It’s arduous to reconcile the two pictures of our country India.

After Covid markets started to open, interest rates came down & money walked back into stocks exchanges & real estate.

However many supply chains got disputed due to Russia & Ukraine war.

Fuels, Food & electronic components began to rise upwards.

The inflation is hitting us and the recession wave is seeing coming soon.

There is a beautiful story on recession which I want to share with all of you.

?Let me share it with you. Once upon a time, there was a Burger Shop called Mitchell’s in the Western US. Let's say in California. The owner Mr Rich was a happy man. After all, he was earning a huge profit, day by day, month by month, and year by year, by selling burgers. A school dropout, but a master in making classic American burgers. People used to flock to his shop in the evening, to have a bite of pleasure on the western coast. In short, he was running a good business. Of course, I forgot to mention here, that he was unaware of the recession of any kind. In summer, when his proud son came for vacation from Harvard, he thought of showing him some great recipes for making burgers and ways of selling them.?Son was doing a master's in management from one of the elite schools on the planet. Son of course a learned man was hardly impressed with the way father was selling burgers. The issue was that the father used to give lots of freeway items with each burger. He was a bit apprehensive, about the way his father was running the shop. Of course, I forgot to tell you, he was aware of the recession in the market and the remedy of tackling recession ‘Cost Cutting’. At the end of the vacation, before departure son expressed his dissatisfaction with freeway items. He told "Father! Beware! There is a recession out in the market! We should spend our resources wisely. Don't be silly, you are wasting it “Father, who was quick to understand the remarks of a Harvard MBA, acted upon the situation in lightning speed. From the next day onwards he started reducing freeway items. After some days he stopped selling any kind of freeway item with burgers. As an intelligent reader, now you know the end of the story. People visiting shops declined exponentially. After some time, business went into a slump. Father, with deep regret, muttered "Yes, Son was right, there is a recession in the market. I shouldn't have wasted my resources

“The moral of the story is the recession is generally a mind phenomenon are we supposed to take this as the answer or is my Question lies still unanswered??.