Economics with Haridas

  OPINION: IS INDIA FISCALLY FIT? The news about GDP of Indian economy is down by 23% is alarming.   This fall in the second quarter, the most drastic fall in decades, as lockdown restrictions meant to contain the spread of the coronavirus wiped out jobs and businesses. The decline is worst among the top economies of the world, with US shrinking by 9.5 percent, and Japan by 7.6 percent at the same time.   The data reveals that construction, manufacturing and transportation are the worst hit. Economists opine and agree with the fact that many people in India are informally employed, working in contractual jobs which may not be under the reach of government data collection umbrella, like tailors, autorickshaw drivers, daily wage earners etc.   The quantum of reduction, if one considers the informal sector job loss may be much more than 23 percent is worth noting. A rough estimate is as big as 40 percent. The official reason for slowdown is the strict lockdown i...

  OPINION: IS INDIA FISCALLY FIT? The news about GDP of Indian economy is down by 23% is alarming.   This fall in the second quarter, the most drastic fall in decades, as lockdown restrictions meant to contain the spread of the coronavirus wiped out jobs and businesses. The decline is worst among the top economies of the world, with US shrinking by 9.5 percent, and Japan by 7.6 percent at the same time.   The data reveals that construction, manufacturing and transportation are the worst hit. Economists opine and agree with the fact that many people in India are informally employed, working in contractual jobs which may not be under the reach of government data collection umbrella, like tailors, autorickshaw drivers, daily wage earners etc.   The quantum of reduction, if one considers the informal sector job loss may be much more than 23 percent is worth noting. A rough estimate is as big as 40 percent. The official reason for slowdown is the strict lockdown i...