Little efforts from the people of India needed to support The Prime Minister of India's plan for 7% economy growth in 2010?
As always every time online, I never missed to multi-tabbing with the Real Time Online News, just now I heard The Prime Minister of India's, Dr Manmohan Singh, pronounced his plan to boost seven percent (7%) India's economy growth in 2010.
In my opinion, what should be done by the people of India is by implement habitual monthly accumulative saving although a little for long term saving by using bank saving type of account. For an example, for less fortunate group can save Rs. 1,000 per month. For fortunate group can choose for Fixed Deposit type of account.
The logic is to increase the value of banking service, thing which is taken into account for GDP calculation. May be many still asking for lucid explanations about how does GDP value works in its calculation because when this matter explained by economists, general public unable to catch up what it's all about. Let me explain by simple explanation, as follows;
GDP is an abbreviation to Gross Domestic Product which is its value includes the values of these various factors/sources;
1. Private consumption,
2. Gross investment,
3. Government spending,
4. Exports, and
5. Imports
(to easily remember all of it in sequence, P.G.G.E.I.)
The formula for GDP calculation is;
GDP = 1 + 2 + 3 + (4 - 5)
Which means, when we save our money in the bank, the bank can use that money to circulate that money by re-direct investment to the various channels of expenditures, either through Item 1 or Item 2 or Item 3 or Item 4 or Item 5.
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