Since 1947, India’s real GDP has gone up only 15 times, but currency in circulation has disastrously multiplied by 462 times, pushing up the price level 51 times and destroying 98% of the value of the rupee. In over 100 years currency increased gradually to only Rs. 12,382 crore by 1980 but has now reached the astronomical figure of Rs. 6,02,706 crore. During the British period the price level went up only 3 times in 82 years, from 1857 to 1939. Even Singapore’s price level has gone up just 3 times in 47 years since 1961, while its real GDP has jumped up 35 times.
Contributed By:
Prof. Amit Dey
(Globsyn Business School)
Source: The Economic Times
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