I keep repeating that it is probably already zero or negative. Real growth equals nominal growth minus inflation. Inflation figures are put out by govt agencies. Already there is divergence between WPI and CPI and the RBI has pointed out as much.
But inflation is closely related and should in fact be parallel to the movement of gold and the dollar, else there would be huge arbitrage.
Look closer and things are even scarier. Most of the "growth" has been on account of govt spending on the back of mounting debts. Debts mount and the spending is capitalized as ditches dug up and filled back through NREGA.
"In services, only community, social and personal services—representing government expenditure—grew faster in the first quarter at 9.4%, compared with 8.9% during the same quarter a year ago."
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I keep repeating that it is probably already zero or negative. Real growth equals nominal growth minus inflation. Inflation figures are put out by govt agencies. Already there is divergence between WPI and CPI and the RBI has pointed out as much.
http://www.business-standard.com/article/finance/wpi-cpi-divergence-a-challenge-for-rbi-to-assess-inflation-accurately-113083100001_1.html
But inflation is closely related and should in fact be parallel to the movement of gold and the dollar, else there would be huge arbitrage.
Look closer and things are even scarier. Most of the "growth" has been on account of govt spending on the back of mounting debts. Debts mount and the spending is capitalized as ditches dug up and filled back through NREGA.
"In services, only community, social and personal services—representing government expenditure—grew faster in the first quarter at 9.4%, compared with 8.9% during the same quarter a year ago."
http://www.livemint.com/Politics/fIfBBI43QFsyChqKzeJD7I/Indias-economic-growth-slows-to-fouryear-low-in-June-quart.html
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