India's GDP ~ Where We Lack and What We Need... A Supply Side View
INTRODUCTION As I had mentioned in one of my previous articles{ https://analysiswithshaurya.blogspot.com/2020/08/gdp-calculation-limitations.html } about GDP, that it is both the aggregate expenditure as well as aggregate output produced in an economy.In this article, I will present a brief analysis on Indian Output(GDP) since 2013 on basis of production function approach. To have a clear understanding about the analysis, understanding the approach and assumption used is the preliminary requirement. So let us walk through the basics of the production function approach. PRODUCTION FUNCTION APPROACH - A Small Walk In the production function approach, Aggregate output is calculated as a function of A,K,and L. Y=A*f(K,L) .......(1) Here, Y= aggregate output A= Total Factor Productivity/ Residual ; The policies in a country, its economic structure, technological advancement. In one word we can say it is “ ease of doing business ” K= capi