Analysis of Economic events and parameters now projects a gloomy picture for Indian economy according to Experts and they state below coordinates are giving warning signals that is not healthy for a developing economy
The top 1% of India’s population earned more than one-fifth (21.7%) of the country’s total national income in 2021, while the bottom 50% made just 13.1% of the money, showed this year’s World Inequality Report.
The top 10% of the population owned as much as 57% of the country’s national income in 2021, according to the report.
The poorest 50% of Indians today earn what the poorest 50% of Americans earned in 1932 after the Great Depression, reported the World Inequality Report.
“It’s very difficult for people working in the private sector or retired persons to manage. Prices are going up while income is going down. The rich are becoming richer and the poor and the middle class are becoming poorer,” is the mindset of middle class income population
Indian Banks have written off Rs 10.72 lakh crore since 2014-15, when the Modi government assumed power, of which Rs 2,02,781 crore of bad loans were written off in the last fiscal.
Public sector banks lost nearly Rs 2.85 lakh Crore on loans to 13 corporates even as they are being used by the government to bail out Yes Bank and IL&FS, said the United Forum of Bank Unions.
People working in the private sector and senior citizens voice their dissatisfaction at Fixed Deposit rates in banks having come down to 4.5 %-5%. “It’s ridiculous, just 2-3 years back it was around 7-7.4%. It’s the primary source of income for retired people; but the government is neither able to ensure
The 13 corporates’ dues were Rs. 4,86,800 crore and were ‘resolved’ at Rs 1,61,820 crore, causing a loss of Rs 2,84,980 crore.
Hike in Inflation
Retail inflation rose to a three month high of 4.91% in November, up from 4.48% in October and 4.35% in September.
The Consumer Price Index inflation in rural India stood at 4.29%, while it was 5.54% in cities.
The RBI’s Monetary Policy Committee left interest rates on hold, saying growth was a priority as it warned of risks from inflation and the new Omicron variant of coronavirus on the economic recovery.
India’s fuel demand fell 11.4% in November compared with the same month last year, data from Petroleum Planning and Analysis Cell of the Oil Ministry shows.
Passenger vehicle sales declined by a whopping 19% in November compared to November last year due to semiconductor shortage and poor economic recovery.
With fuel and food prices spiralling upwards, the Finance Ministry conceded, “The high rate of inflation in November 2021 is primarily due to rise in prices of mineral oils, basic metals, crude petroleum and natural gas, chemicals and chemical products, food products, etc.”
Economists said that despite a softening in global prices of crude oil and the government’s recent cut in fuel tax, inflationary pressures are building for households as firms try to pass on rising costs as domestic demand picks up.
Wholesale fuel and power prices rose 39.81% on the year versus 37.18% in October, while manufactured product prices rose 11.92%, against 12.04% in the prior month.
Parameters on Indian Economy
As per CMIE, India’s Labour Participation Rate (LPR) was 41.38% in March 2021 but fell to 40.15% in November, indicating that 60% of employable Indians are just not looking for Jobs.
The figure is among the lowest even in Asia and is attributed to women opting out of work or not getting gainful employment.
According to CMIE, LPR was 47% in March 2017 and fell sharply to 40% in just four years. Most of the decline happened before the pandemic.
Government employees and those among the Middle Class who still have jobs are lucky though a large number of the educated youth are forced to do several gigs to fend for themselves.
Wholesale prices of food accelerated at a 6.70% pace in November from a year earlier, versus 3.06% the previous month.
In the midst of such encircling gloom, the Lok Sabha was informed that 8.81 lakh Indians gave up their citizenship since 2015 and settled abroad.