Tuesday, November 18, 2008

Silly Talk!

Call it the effects of an over-enthusiastic media. Some people in India, who have no clue about economics and who hardly spend anytime reading the papers, are spreading rumours that India is in a recession.

'Recession' is a fairly new word to India: we've never had one. Technically, a recession means two continuous quarters of economic contraction. Now, India's GDP grew (I repeat, GREW) by 9.3% last year and is expected to grow by 7% this year. And that's where the rumour begins.

A slowdown in growth is NOT a recession. Cyclical (short-term) bear phases do come up in expanding economies. In English, that means growth can slow down depending on various factors, but the economy won't stop growing as such.

So, next time someone tells you India is in recession, redirect him to Opinions 24x7 so that they knows exactly how wrong they are. The free media is no good: recession means anxiety, and anxiety is the stuff news channels live off.

Again, India is growing at 7% a year, WE ARE NOT IN A RECESSION!

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