Economy
The
Indian economy grew by 8.7 percentage in 2021-22, compared to the 6.6per
percent contraction that occurred in 2020-21.At 4.1 percent of growth, the
period from period from January to March (Q4) in FY22 was smallest of four
quarters, but was higher on a year-to-year basis. According to NSO data,
Indias actual GDP grew to Rs147.36-lakh crore, up from Rs135.58-lakhcrore for
2020-21.
· The government claimed that actual GDP (Gross Domestic
Product) has increased to surpass the pre-pandemic threshold.
· The report eliminates the possibility of the
stagflation.
· Stagflation is an apparent contradiction in the form
of slow economic growth, and high unemployment or economic stagnation that is
at the same at the same time, accompanied by rising prices
(i.e. inflation).
· Stagflation could also be defined as an period of
rising inflation that coincides with an increase in GDP (GDP).
· In general, inflation increases when the economy is
expanding rapidly.
· This is because people earn increasing amounts of
money and can afford paying more for the same amount of items.
· If the economy is slowing the inflation rate tends to
drop also - mainly because theres less money in pursuit of the same amount of
items.
What is the time when stagflation
occurs?
· Stagflation is believed to occur when an economy
experiences stagnant growth, as well as an ongoing high rate of
inflation.
· Its because when there is a slowdown in economic
growth, unemployment is likely to increase and incomes of existing workers
dont increase quickly enough, yet individuals must contend with increasing
inflation.
· This means that people are squeezed by both sides,
because their purchasing power has been decreased.
· There are a few global variables that could affect
growth.
· High prices for commodities that are dependent on
imports like vegetable and crude fertilisers, oils, and metals.
· The tightening policies of monetary policy across
major economies has led to supply the chain with bottlenecks and delays as well
as shortages of crucial inputs could cause negative economic trends in certain
countries.
· The gross domestic production (GDP) can be described
as the only common indicator all over the world to gauge the state of a
countrys economy.
· Its a single number that indicates the value of all
finished goods and services manufactured within the borders of a nation during
the time frame of.
· Indias GDP is
calculated using two methods:
one dependent the economic performance (at the cost of factorization) as well
as the other on spending (at cost of market).
· Factor cost methodology analyses the efficiency of 8
distinct industries.
· The method of calculating expenditures will show the
way that different sectors of the economy perform including investments, trade
as well as individual consumption.
· Further calculations are made to arrive at nominal GDP
(using the current market price) and real GDP (inflation-adjusted).
· In the four figures released the gross domestic
product at cost of factor costs is the one most frequently monitored figure,
and it is often covered by the press.
· In the Central Statistics Office under the Ministry of
Statistics and Program Implementation is in charge of the collection of
macroeconomic data and records keeping.
· The process involves the annual assessment of industry
and the compilation of various indicators like The Industrial Production Index
(IPI) and the Consumer Price Index (CPI).
· Central Statistics Office Central Statistics Office
coordinates with different federal and state departments and agencies of the
government to collect and analyze the necessary data for calculating GDP and
other statistical data.
· The production-related data that is used to calculate
IPI is obtained through the Industrial Statistics Unit of the Department of
Industrial Policy and Promotion within the Ministry of Commerce and
Industry.
· The required data elements are gathered and analyzed
by the Central Statistics Office and used to calculate GDP figures.
· The Factor Cost Figure factors cost figures are
determined by gathering data on the net value change of each sector during an
exact time.
· The following
industries are considered for this figure the following: Agriculture, forestry and fishing Manufacturing and
mining Electricity and water supply, gas, and other utilities hotels,
construction trade transportation, communications, and broadcasting.
· Financial, real estate and professional services as
well as administration defence, and other services.
· The Expenditure Figure (or expenditure) (at the market
price) method is based on summing up the total domestic expenses on final items
and services in various streams over a specific period of time.
· It also includes consideration of expenditures for
consumption by households, net investment (i.e. capital creation) as well as
government expenses along with net trade (exports less imports).
· The GDP figures of the two approaches might not be
exact but theyre nearly.
· The expenditure method provides an excellent insight
into the parts that are the most important to Indias economy.
· Indian economy:
· Actual GDP:- nominal GDP Inflation Rate Nevertheless from the
viewpoint of the general population the real GDP is the most important factor.
· The difference between nominal and real GDP reveals
the inflation levels throughout the course of.
· NSO National Sample Survey Office National Sample
Survey Office (NSSO) joined along with the Central Statistical Office (CSO) to
create the National Statistical Office (NSO).
· On the 23rd of May, 2019 it was announced that the
Government of India has approved the merger of NSSO and CSO.
· CSO is the National Sample Survey Office (NSSO) was
formerly known as CSO, formerly known as the National Sample Survey
Organisation was the biggest organization in India conducting socio-economic
surveys on a regular basis.
· Formerly called The Central Statistics Organisation of
India, CSO is responsible for the coordination of all statistical activities in
India as well as for developing and maintaining standards for statistical
analysis.
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