India's GDP goes negative for the first time in 40 years.
The Reserve Bank of India had already ordered to stay in the GDP growth negative (India GDP Negative).
The Ministry of Statistics and Program Implementation has released the GDP figures for the April-June quarter of the financial year 2020-21. The data for the core sector, which came a while ago, has also disappointed. The production of eight industries declined by 9.6 percent in July. Let us tell you what the impact of falling GDP will be on you.
What is GDP - What is the last Gross Domestic Products (GDP) and how important is it for a country. This is rarely what you thought. Experts say that GDP is the most important measure to measure the economic health of any country. GDP is the total cost of production of goods and services during a particular period. GDP in India is calculated on a quarterly basis every third month. The thing to note is that these production or services should be within the country itself.
Explaining the impact of weak GDP figures, experts say that based on per capita monthly income of Rs 10,534 in 2018-19, annual GDP of 5% would mean that per capita income will increase by Rs 526 in FY 2020.
If you understand in easy language, some can say in this way that if GDP grows at the rate of 4 percent, then the increase in income will be Rs 421. This means that a 1 percent reduction in the growth rate will reduce the average monthly income per person by Rs 105.
In other words, if the annual GDP rate falls from 5 to 4 per cent, then the income per month will be reduced by Rs 105. That is, a person will get Rs 1260 less annually.
there is no direct impact of falling GDP on the life of the common man. This is also not a good sign for the future because if the economy is going into recession then the risk of unemployment increases.
>> Just as the common man, after hearing the news of reduced earnings, starts spending less and saving more, companies also start doing the same behavior and governments to some extent. Getting new jobs also reduces and the process of getting people fired also intensifies. According to CMIE, in July only five million jobless people became unemployed.