India's Growth Rate
India's growth rate for the fiscal year 2005-2006 is 8%. Our economy is booming with an explosive growth rate. India is described as the next super power, America-China-India will together rule the world in the future. We Indians are extremely happy about the massive growth rate and proud of it. But there are some questions.
The Rupee-Dollar exchange rate and the inflation rate doesnt justify the growth rate of the nation.
The dollar value went down from around Rs 43 per dollar in 2005 to Rs 45 per dollar in Mar 2006. That is rupee value went down by around 4.5%. This itself shows, if we can retain the same income as last year, we can show a growth rate of 4.5% without any real growth. That is if our value was the same $100, in rupees in would ne Rs4,300/ in 2005 and Rs4,500/ in 2006.
The inflation rate is also too high. Inflation rate is the one that really affects the people. Because inflation rate is calculated based on the essential commodities, where as the growth rate is calculated based on the overall income of the country that is contributed by big companies. The inflation rate crossed 5pts and the inflation rate is estimated to be around 5.5% in Mar 2007.
The current system may make the countries like US where the population is less to develope. But with countries like India were the core of the population is in villages with around 25 million below poverty line, the inflation rate should be kept in check along with the development.
The Rupee-Dollar exchange rate and the inflation rate doesnt justify the growth rate of the nation.
The dollar value went down from around Rs 43 per dollar in 2005 to Rs 45 per dollar in Mar 2006. That is rupee value went down by around 4.5%. This itself shows, if we can retain the same income as last year, we can show a growth rate of 4.5% without any real growth. That is if our value was the same $100, in rupees in would ne Rs4,300/ in 2005 and Rs4,500/ in 2006.
The inflation rate is also too high. Inflation rate is the one that really affects the people. Because inflation rate is calculated based on the essential commodities, where as the growth rate is calculated based on the overall income of the country that is contributed by big companies. The inflation rate crossed 5pts and the inflation rate is estimated to be around 5.5% in Mar 2007.
The current system may make the countries like US where the population is less to develope. But with countries like India were the core of the population is in villages with around 25 million below poverty line, the inflation rate should be kept in check along with the development.
posted by Jayaprabhakar | 2:45 AM
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