A day after India lost the tag of the world’s fastest growing economy to China, with GDP growth slipping to 6.1% in the last quarter of 2016-17, NITI Aayog vice chairman Arvind Panagariya said he expects 7.5% growth in the current financial year and possibly a return to the 8% growth rate.
Issues with demonetization
- The contraction in the construction sector in the last quarter of 2016-17 could be due to many reasons including the war on black money that was the stated goal of demonetization.
- Main objective of demonetisation was to curb black money and prices of real estate have fallen by about 20%-25%, which in turn may have impacted construction activity.
- The government has begun compiling data from this April for a new annual employment survey to capture rural and urban job levels, with quarterly data on urban jobs. There is no credible aggregate data on employment.
- A task force on employment data headed by him has already met twice and will come up with an assessment in a few weeks.
What do you mean by GDP, GNP and GVA?
GDP Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period. GDP includes all private and public consumption, government outlays, investments, private inventories, paid-in construction costs and the foreign balance of trade (exports are added, imports are subtracted) Thus the… Continue reading What do you mean by GDP, GNP and GVA?
What is NITI Aayog?
The National Institution for Transforming India, also called NITI Aayog, was formed via a resolution of the Union Cabinet on January 1, 2015. NITI Aayog is the premier policy ‘Think Tank’ of the Government of India, providing both directional and policy inputs. It has replaced planning commission as the premier think tank. While designing strategic… Continue reading What is NITI Aayog?