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Latest GDP Figures bring smile on many political faces and comes up as big relief for Modi government. The Government was heavily criticized for demonetization and GST moves.
India is consider to be one of the fastest growing economies in the world. According to the latest figures released by static department , we regain 7.2 % GDP growth in third quarter , after back to back decline in GDP in last two quarters. GDP was smashed by poor decision of demonetization , the original idea behind demonetization was to clean economy by banning old currency bills of 1000 and 500 Rupees and government came up with new 2000 rs and 500 rs bills.However, this steps did nothing to cut out the black money in circulation , as all the illegal cash return to the banks in shape of legal – mentioned by Urjit patel .
Latest GDP Numbers showed massive growth of 7.2% , quarter finished in December. Earlier two quarters had 6.3 % and 6.6 % respectively.GDP Numbers represent gross production of goods in a fiscal year or divide into quarters. India maintains its growth rate of 7.0% year to year. Now we are waiting for the numbers of fourth quarter to get final calculations.
GDP numbers may be a powerful indicator to reveal economy strength but it doesn’t shows full picture. This may be true we beat china in terms of GDP Growth but Chinese economy is much bigger than India. most of the revenue in India comes from unorganized sector and this sector occupy more than 50 % of economy This unorganized sector is unaccountable because of poor condition of bureaucracy and major population of country lives in village and rely on agricultural income .On the other hand , china is well organised economy. Chinese economy heavily based on industrial production and export-thus government has better indicator to calculate GDP and other statics. So what ever the data we have it is not enough to demonstrate a complete comparison of two economies. India still need to perform better to achieve a good reputation in financial world.