Who Is Responsible For The Contraction Of India’s GDP?

Highlights

• RBI will be submitting the report of India’s GDP for the financial year 2021 quite soon 
• Indian economic system has been suffering for a long time 
• India saw the lowest account in GDP in 2020 for the last 42 years. 

As the seventh year of the NDA government comes to a close, we have to look into the areas which might have caused India’s GDP to contract after so many decades of independence. The entire event can be seen from the rosy glass of the pandemic situation. The pandemic can be considered as an outlier effect that caused GDP to contract this much in a single year. Or else, we can take a bold step and accept that India has not seen a rise in GDP in the last eight years or so. 

Facts About India’s GDP In Present Scenario

The Union Government has tried to lead propaganda that the GDP has been low for India ever since Congress has ruled in the nation. However, we are here to organize a fact check and tell you that the growing weakness has been a consequence of the last 5 to 8 years. You can check the annual reports for RBI in the financial year 2021. The charts will help you to understand the following facts about India’s GDP.

• Firstly, after the global depression, GDP had started to improve in 2013. This was a year after the BJP government took over. 
• Secondly, 2016 and 2017 have seen a steep decline in GDP because of demonetization and imposing the GST. 
• The lowest fall of GDP was taken in 2020. It was the lowest in the last 42 years for the country as it was in GDP of India, 2020

Descriptions By The Union Government

PM Modi has often called the Indian economic system to be like a trampoline that can absorb the barriers. It has the strength to carry the country after so much damage. However, should we glorify the system or rather look at how a good system can be made even better?

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Studying The Key Variables Of India’s GDP

The study on the key variables of GDP has stated that the Indian economy was already weak in January 2020. This was well before the pandemic struck the country. It can be seen from the reports of RBI that the GDP growth pattern was already a steep and inverted V before the Covid-19 came into the scenario of the current economy of India.

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Other factors like inflation and lack of employment have also affected the decline of India’s GDP over the last few years.