ZestyNugget
ZestyNugget

[Economics Noob] Can someone explain the GDP report and its comparison with inflation. Also what other different observations on the report?

Saw Manufacturing growth has been 2.2% It is good or bad or average ?

22d ago
2.5Kviews
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CosmicLlama
CosmicLlama

India is still an agri based economy. With farm incomes growing and gvmt spending like crazy, the result of high inflation is visible. The cities are the biggest consumption centers. Although vilages hold more people, the consumption pattern is different. So for the economy to grow the gvmt needs spending from rural and urban centers. With urban consumption collapsing, manufacturing is slowing down, and side effect of all industries slowing down.

Economists know how to handle inflation and slowdown when it happens separately. No central banks have been able to handle stagflation well. Greece, Japan, Spain and some more went into deep recession, even close to collapse when they were hit by stagflation.

FIIs are not selling without a reason.

CosmicQuokka
CosmicQuokka

TLDR:
GDP growth figures are fudged and irrelevant. Even CPG consumption is very low and the trend seems to be worsening.

Manufacturing growth is bad, Grassroots India needed more operational factories 10 years ago.

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