What is hidden behind 6.1% Indian GDP growth

Indian PM was happy man to see 6.1% GDP growth for the last quarter. He was even happier to know Indian government godown (warehouses) has 50 million tons of food that is good enough for 13 months of supply through PDS. Interestingly Indian newspapers also started gaga about the growth and started projecting if global recession is over. But there are many facts hidden behind these numbers.

Statistical data for export and import is released one day after the release of overall growth. Though India media, including the business newspapers, did not concentrate too much on this export-import data. One need to search foreign media to find the facts. BBC reports that Indian export has declined by 28% and import by 37% in the month of July. Though it is a known fact that Indian economy is not export-oriented but it gives employment to millions of people (yes, it a very small % of billion plus population) in cities like Surat and Bhathinda where handcraft work is done. These people will have to go back to their houses in the village. Many reports suggest that this is already happening. When there was 8% GDP growth the benefits never reached the poorest of poor people of the country (that means almost 40% population) and when the recession has hit the world, there will be more poor people. There is still no study but it might undone all the poverty uplift of last 10 years during economic boom.

On the other hand, one can not trust the government gowdons for food demand in the country. Officially they might have food for everyone but a large amount of food will not exist in the godowns or will be of poor quality. Why the officers and politician will not sell from the godown when they can sell and never get caught because they can always mix small stones in the food packets.

PM of India need to get in touch of the realities rather than making fancy policies and citing numbers.