Invisible Challenges of the Economy and Fall in GDP |

There is hardly anyone in the country who does not know that according to the data released by the NSO, the GDP growth rate has fallen to -23.9% in the first quarter of the financial year 2020-2021. It is obvious that many questions have come to our mind, and we may not have shown any interest in finding answers to those questions. Because until we find answers to these questions, any latest news of Rhea Chakraborty may  be missed from us, it is more important. If we will miss that news, then our students may not get jobs or the salary of our parents will stop, right ! . Well, I do not think you are so careless about your country, so I am keeping some important points of data released by NSO in front of you.

1. According to the data released, the country's earnings have decreased by 8 lakh crores, which is 23.90% less than the previous time.

2. If we see the sector by sector breakdown of GDP growth rate, then growth rate has been negative in all sectors except the agriculture sector. In the experts opinion  the growth rate is positive in the agriculture sector due to the huge amount of job losses and employment, people have been forced to do farming.

3. According to the World Bank Estimate, more than 12 million Indians will go into poverty.and According to the data of NCRB-2019, last year more than 32000 daily wage workers and people more than 10,000 in  farming sectors have done sucide . These figures clearly show that it is not just the act of corona or the act of God. GDP has been continuously falling for the last several quarters and corona has broken its back.

What is GDP and how does it affect the common man.

In simple language, sum of  all the products and services that are produced  in the economy of any country in a given time and then price it according to the market, it is called the gross domestic product or GDP of the country's economy. In India, the economy has been measured on the basis of GDP since 1950.

 1. Due to falling GDP, the average income per person decreases, due to which the number of people living below the poverty line increases in the coming time.

 2. If the economy is going towards recession then the risk of unemployment increases and the process of expulsion of people also intensifies.

The invisible challenges of the economy 

 confronting the whole world with Coronavirus, in such a situation, the economy has gone into the background for some time. But it would be naive to assume that economic problems have also disappeared with the passage of the economy.

1. The first challenge is the impact of taxation on international trade. Due to Corona, imports have come down drastically, and for the first time in the last 21 years India has an export surplus due to lack of exports. But imports have also come down drastically compared to exports. But will this trend of decrease in imports more than exports be temporary? If the situation improves, import of essential commodities will be done in the coming days, yet in the coming days it will also be known how much damage has been done to the Indian economy due to decreased exports.

2. The Reserve Bank's dilemma has been revealed in the monetary policy announced in early August. On the one hand, the investor is worried about the future, on the other hand the interest rate is not coming down, in such a situation, to whom the bank will lend and how? There is an export surplus in the country, but there is no possibility of exporting to any country, there is no way to woo or invite any foreign investor, nor is there any domestic investor to be hoped about. As a result of not having a solid policy on the economic front, 40% of the country's population will have to suffer for a long time.

3. The middle class of the country pays income tax but its share in total tax revenue is very less, in such a situation the government will have to depend on monetary policy. But in monetary policy, everything is dependent on economics, it is not so. It is generally believed that large nationalized banks and the RBI that controls them are central to monetary policy. Whereas political control over the Reserve Bank is the harsh reality. Politicians also control the school colleges and corporate sector of the country, so it is impossible for the Reserve Bank to operate banks without the direct support of the politicians.

4. The failure of monetary policy is in front of us as a failure of labor laws and the result of which the MSME sector and migrant laborers are suffering. There is no doubt that due to covid-19 the entire world economy has been badly affected but the lack of concrete policy We will have to face the terrible consequences of this, we will have to prepare ourselves to face the adverse situation for a long time.