According to the Organisation for OECD, India’s potential gross domestic product is pegged at seven per cent, while other forecasts show growth barely humming at five per cent.
HYDERABAD: What is India’s lost economic activity due to the ongoing slowdown? It is difficult to determine, but according to one estimate, it could be as much as Rs 2.8 lakh crore.
Often, economic growth or decline is measured in percentages, but if you take the absolute difference between actual gross domestic product (GDP) and potential GDP, it appears that we’ll likely add Rs 2.8 lakh crore less to the economy in FY20.
Potential GDP, a metric which economists widely use, measures how much larger an economy would be if all resources are put to use. In other words, that’s a scenario when employment remains high and equipment runs full-throttle.
Please click here to read more.