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Indian Economy

#10YearChallenge

The first social media FAD of the New Year, the 10-year challenge, has people posing a picture of themselves from 10 years ago along with a current picture. And if you are a user of social media platforms such as Instagram, Facebook, Twitter etc. you would have definitely come across this new internet frenzy, and there is very good chance that you may have participated in it yourself.

The Indian economy too has had its fair share of changes in the decade gone by and is eager to show it off. Take the total size of the economy for example; It has more than doubled from 1.3 trillion $ to 2.7 trillion $. Another important indicator is per capita income which measures the average income earned per person. At current prices, this figure was at 48,787 Rs in 2009, and now, has grown almost 3 times to 1,41,447 Rs. Fiscal Deficit as a percentage of GDP has improved significantly from 6% of GDP in 2009 to an estimated 3.3% of GDP in 2019. The size of the government’s budget has also almost tripled during this period and Inflation has too has reduced adding to the good news.

However, the big shocker came in when the economy posted photos of bank NPAs a decade ago and now; from a mere 0.69 lakh crore Rs then, it has skyrocketed to roughly 10 lakh crore Rs now. While bank credit has grown only 3.4 times, the NPA’s have grown a whopping 14.4 times in the same period; though one could argue that it was partly on account of the NPA cleanup process initiated recently.

Another indicator that does not paint a pretty picture is that fact that India is still home to the largest number of malnourished children, with 46.6 million stunted children, according to the Global Nutrition Report 2018. Other social indicators too, such as education showed a mixed picture and politicians would do well to focus on them. Maybe in the next 10 years, we would see a more well rounded economic, social and political challenge being met.

 

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