fails to represent a clearer picture of socio-economic development of the country.
GDP cannot be a good indicator of growth because a country's economy is dependent on multidimensional issues, that too at different levels. At present, indices like Genuine Progress Indicator ( GPI) can explain growth with more precision than GDP. But we cannot take those indices for granted as their relation with a country's constantly changing economy is dynamic in nature.
GDP is an inaccurate indicator of a country's growth. This is due to a number of reasons. One, GDP does not take non-monetised activities into account. Two, it does not incorporate environmental damage caused due to economic growth. Three, it does not account for inequalities, which are a measure of concern in developing countries like India. Lastly, it does not provide a road map for sustainable development.
GDP is an economic measure of commodities that are measurable. However, it is not comprehensive. It does not evaluate works, such as domestic chores performed by women, nor does it take a person's happiness or satisfaction into account. GDP also does not include the environmental damage caused due to economic growth. As a resident of Uttarakhand, I believe that ecology and human behaviour should be included in GDP estimation.
been misinterpreted and misused for a long time by our country's rulers. We should rather use sustainable growth which includes all relevant socio-environmental-economic aspects to measure the progress of a nation. GDP does not stand for sustainable growth. India should bravely embrace overall development rather than just going for blind and rapid urbanisation.
GDP is not an accurate measure of our country's growth. If it was, then most Indian students would not be getting low-salary jobs after completing their studies. And India's farmers would not be killing themselves in large numbers.
Concepts like GDP only help the rich become richer and the poor become poorer. In the process of managing the economy through GDP, wealth gets concentrated in a few hands which make it practically of no use in nationbuilding. The same is true for global wealth. Most of it today is in the hands of a tiny minority. GDP is a system that makes the poor person spend more than half of his/her income on issues that have little to do with the progress and development of his/her family. The government must look at a substitute index that truly reflects development.
S JEEVANANDA REDDY