IT'S IN­AC­CU­RATE

Down to Earth - - LETTERS -

Em­ploy­ment, and not GDP, is the ultimate scale to mea­sure growth and de­vel­op­ment. Gov­ern­ments show­case GDP in­crease as proof of bring about real de­vel­op­ment by cre­at­ing em­ploy­ment op­por­tu­ni­ties. Once a per­son is em­ployed, he or she can af­ford to buy a num­ber of items, which in turn can cre­ate de­mand in the mar­ket and lead to more pro­duc­tion. Only then a govern­ment can claim that the coun­try's GDP has risen. UTHEJ SIMHA

is am­bigu­ous. The growth of a coun­try can mean an in­crease in its eco­nomic ac­tiv­i­ties, pro­duc­tion or so­cial in­di­ca­tors. Mea­sur­ing growth in terms of GDP ful­fills two pur­poses. It helps an­a­lyse the in­crease in to­tal pro­duc­tion when com­pared to the pre­vi­ous year and re­flects the coun­try's po­si­tion glob­ally. So, GDP is an ap­pro­pri­ate in­dex, if it is used to com­pare the eco­nomic vi­brancy of coun­tries. How­ever, GDP is not an ac­cu­rate mea­sure­ment of growth if it is used to an­a­lyse progress with re­spect to pre­vi­ous years. This is be­cause, it is a num­ber that

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