the value of the economy increases, The income of the families contributing about half of it has been falling in the last six years. So if there is no demand in the market, So what’s surprising in that?
Market research agency India Ratings has said in a recent report that the continuous decline in wage growth has become a major headache in the country. The result of this decline has come to the fore in the form of declining consumption. It is having an impact on the entire economy. From 2017 to 2022, this decline continues unabated. Over the years, the income of those households has actually declined by 5.7 percent, which contributes to 44-45 percent of the country’s Gross Value Added (GVA). That is, the income of the families contributing about half of the value of the economy has gone down in the last six years. In such a situation, if there is no demand in the market, then what is the matter of surprise in it. India Ratings has rightly said that this trend of falling income has reduced the purchasing power of households. This is something that every person can guess by looking at the situation around him.
And when this is the case, is it any wonder that India’s rank in the United Nations Human Development Index released last week has fallen. Now India is at number 132 in this list of 180 countries. When the incomes of ordinary households are falling and the social security provided by the government is becoming lax, the deterioration of the condition of the country on the parameters on which human development is measured will be considered a natural phenomenon. . But the present government is probably not worried about these things. At present, it has a GDP growth rate of 13.5 per cent achieved in the first quarter of this fiscal to keep its supporters at ease. India Ratings has rightly warned that on the one hand, this growth has been recorded on a low basis, so it should not be given much importance, and secondly, if the purchasing power of the people keeps on falling, then any growth rate can not be sustainable. Clearly no warning can be given more clearly than this.
