Growth Matters but Income Matters More

Syllabus: General studies paper 3 (Economics) Context: The provisional estimates of annual national income (2020-21), released on may 31 by the national statistical office, did not have any surprises, but for one, that is, there is nothing encouraging in the numbers. India’s gross domestic product (gdp) contracted 7.3% in 2020-21, as per provisional national income estimates released by the national statistical office, marginally better than the 8% contraction in the economy projected earlier. Reasons for contraction of gdp: The contractionin trade (-18.2%), construction (-8.6%), mining (-8.5%) and manufacturing (-7.2%) is a matter of concern as these sectors account for the bulk of low-skilled jobs. The magnitude....Read More