Best Essay- #NOESIS-2014 ! By Sristhi Jain, Mumbai. “Economic Indicators: An opaque mirror image of the economy or a clear mirror reflection of the economy?” Economic Indicators in literal terms means the statistical data about an economic activity. An economy is often characterized by its economic activities. Economic Indicators are the tools to measure the economic activity as well as they expose the economy to the World in terms of various parameters which are the tools to measure the status of an economy. Economic Indicators are the comparable tools used for determining the scope of internal as well as external development and growth of any economy. It serves as a guideline and a tool for the government framing revenue policies and other strategies based on data of the economy in terms of its Gross Domestic Product (GDP), Gross National Product (GNP), per capita income, consumer price index, industrial production, employment rate, literacy level, etc. These form a part of economic indicators alongwith a numerous other indices to measure the same. These indicators are the tools on which the growth aspects of the economy are often predicted. For a country like India which is considered to be one of the important economies of the world with the second largest population in world, it is important to highlight the importance of these economic indicators. They are the determinants which are relied upon to form the upcoming policies and the other development strategies. The overall goal to arrive these economic indicators is to ascertain the areas to be focused and to evaluate the performance against the set goals. The comparison is possible only when this data is available if form of various ratio, numbers, percentage and such statistical information. In spite of being the source of comparison, the question arises on the reality behind these economic indicators. Are they showing what the economy is actually about? What are they actually meant for? Are they depicting the actual growth aspects? Are they portraying the strength and weakness of the economy? To what extent are they useful? Do they show the true picture of where the country actually stands? A series of questions flow when economic indicators are to be related to the economy itself or a country like India. For a developing country like India, these economic indicators are considered to be a measure of growth of the country as well as the economy. There are various instances where these numbers are taken as the measuring device and directly compared with the development and growth of the country. For instance, often people relate GDP with the overall growth of the Indian economy. GDP is an indicator which is showing growth or a downfall in an economy but the question is what kind of growth or downfall? Whether this growth should only be in quantitative terms and not in qualitative aspects? The answer is very obvious. Can a certain percentage of improvement in GDP or any such indicators be related to an economy’s development? There are innumerable aspects which are ignored and are not taken into consideration when the GDP is calculated. Another instance is for literacy rate. As per the Census of India 2011, the overall rise in the literacy rate was 9% as compared to the Census of India 2001 i.e. 9% growth in past 10 years. For a developing country like India, where education is the most important tool for the economy to flourish, the rise in literacy rate was just 9%. While arriving at these figures a considerable part of the total population remains untouched due to various reasons like geographical boundaries, human incompetence, data manipulation, etc. The states like Kerala with the highest literacy rate remains to be on the same position vis-à-vis the states like Bihar which is the third largest populated state of India and has the literacy rate at lowest. This clearly shows the differences not only in overall quality but also the inequality of improvement. Economic Indicators signify the data of the economy as a whole. They, however, do not touch upon the total Indian population i.e. a considerable part of this population that must actually be considered in determining the figures of literacy rate, mortality rate, birth rate, per capita income, etc. Even when the economic indicators show a favorable trend, it is certainly not directly related to a better state of living for the people of the economy. A very well said proverb “Injustice anywhere is a threat to justice everywhere” clearly fits into the theory that economic indicators should not only be a true image of the economy but must be an attribute of all the factors and all the people affecting such factors. Without considering the actual composition of Indian economy, the growth and development shall prevail in numbers and not in the real world. As per the research made by UNDP (United Nations Development Programme), India is the nation comprising of a third of world’s poor. With such data being the dominant element of any economy, the growth is just a game of numbers and not the reality. It is giving a vague image and not reflecting what the actual India is. The role of these economic indicators however cannot be neglected because the same are an indispensable part of any economy. Even though they are not depicting the real picture yet the expression of determining the status of the economy is incomplete without these indicators. As per the survey, India would take over China in next few years in terms of population. The human resource is one of the strongest resources India has. The prediction of such data is possible to because of these indicators only. It is because of such data, inputs could be given in strengthening the economy of India. Thus, we cannot completely neglect the importance of these indicators. The point to argue however falls on the accuracy of these statistical data. Economic Indicators of India, considering a huge population could not be arrived at cent percent accuracy but these could be taken as close indications for the remedial measures to improve the quality of the economy. Though the quality is not depicted in the numbers yet these numbers could be an alarm to improve it and make it the much developed and flourished economy. As stated, though India would take over China in next few years, these indicators do not really show that would the Indian economy be into a better phase when it comes on the people of the nation. The competition within the economy and with the outside world is usually taken by the numbers of these economic indicators. This only fact takes away the credentials when it comes to the truth inside the shining stone. For economy like India, economic indicators are actually not depicting the true Indian story. They have become a part of political games which has resulted the Indian economy in a veil which is far different from the realistic world. Even though these indicators are meant to depict the true and fair image of an economy, they are manipulated and remain hidden from its citizens. Economic Indicators actually have become just a source of income for those who are involved in ascertaining these numbers. A very few among these are interested in knowing and discovering the bitter reality of inside India. When the people of the nation are not aware about the inside story, the change cannot take place. For educated population of India, these numbers may serve a purpose to think for their economy. However, considering a huge number of people of Indian economy do not really understand the meaning of economic indicators, these should not merely be the game of numbers but actual and visible indicators to be measured in terms of satisfaction and a good level of standard for every citizen. These economic indicators must be taken as a pinch of salt and must be acted upon. For the World, economy of India shall stand powerful when the things are judged from deep core and this shall not only emerge in giving a reputed nation but also a well flourished economy in the World. Every citizen of the country shall be able to stand and consider himself/herself to be a part of respectful nation which is not only growing in numbers but also in its class. The positive results in these economic indicators must be a real and visible change which must not only be depicted in the numbers but must be felt by every single Indian citizen.
Posted on: Fri, 14 Mar 2014 17:42:07 +0000
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