Is the current state of Indian economy considered chaotic?

In India's economy right now, one question everyone asks is: Will India's slowness still last many years, or will the central government of India take control of it in a short period of time (in a year or two and a half) and bring the economy back to a growth rate of 2-5%? No one can give a clear answer to this question. The limitation of all sociologists is that they are weak in predicting. They represent a well-known defense in economics that if all other things do not change at all, we can make a true prediction.

In English this means 'Satoris Priebus', meaning 'all other factors remain constant'. Economists hide behind the "Satoris Priebus" and claim the truth of their theory. E.g. If the price goes down, the demand goes up unless the income of the consumers is stable, consumers do not predict the price will go higher, the producers will end up in a low price war, the government will suddenly collapse. And in the country there is an atmosphere of uncertainty or danger.

All of the above conditions are called the Satoris Priebus hypothesis. Which should remain stable. No economist or politician can claim that CE India's real income (not inflationary income) will double after five years, ie five years. If the GDP of any country increases by a few percent, when does it double! A rule of thumb for this is as follows: The growth rate is hardly less than the number of 3. Whatever the answer, GDP will double in years. E.g. If GDP grows at an annual government rate of 5%, then it will be 2 divided by 3, that is, 2 years of GDP. Growing at a rate of 5 percent of GDP, it doubles to 5 times, that is, 5 years

If GDP grows at an average rate of 5%, then it is divided by 2, that is, GDP doubles in 5 years, and if GDP increases at 2%, that number will increase by 2, divide GDP by 1.5 years. It is not currently possible for India to increase its GDP by 5% every year for the next five years.

Why is that not possible?

Banks in India have filed a massive NPA of up to 5% of their total credit. Imagine if the NPAs amounted to seven to eight lakh crore rupees, which is about 5% of India's total annual budget, the country could grow by a whopping 8%! No It cannot be sustained. If the various state governments and the central government declare a debt waiver and debt waiver of around Rs 3 lakh crore all together in a few years, people will vote indiscriminately, and pay Rs. If you do, you should not hesitate but after filling the bag, no one should have any doubt.

The heart of economics is the optimal allocation of resources, namely optimum allocation of resources. If this rule gets distorted to get votes, then the economy will be lost. It is a miracle that inflation (price rise) is under control despite such a huge upheaval in the Indian economy, but now the government will be in trouble if the cost push inflation increases (vegetable prices + milk prices + increase in daily consumption).

Why is the huge loss of the public sector when the government is doing the rain from the sky to compensate for their loss? Remember that the government has to raise Rs one lakh five thousand crore from public sector sales or the sale of their shares before March 5. We are not inherently supportive of capitalism, but how can we run a situation where public enterprises lose our budget and on the other hand do not get free education, health services and tap water?

Will the Indian government be able to get Rs 1.5 lakh crore through the sale of public enterprises in the remaining three and a half months of the current financial year? The serious disease will be avoided not only with medicine but also with radical surgery. Radical means its origin.

The government is doing a lot of efforts to avoid recession right now. Its not The government is making a lot of efforts for real estate (construction and automotive sectors, giving huge credit to micro, small and medium-sized enterprises, and also raising huge funds for the recapitalization of banks. The government is restructuring it through merger of public enterprises. Non-banking financial companies are also taking adequate steps for liquidity.

It is not possible for the government to raise the demand in the country at the expense of two lakh crores. Remember that the government wants to limit the fiscal deficit to 5.5 percent. The goat gets the goat's bite. This government will not survive if inflation has reached the insane state of hyper inflation in an attempt to increase demand.

Now, it seems that Equilibrium Condition and Equilibrium are long-term, robust, they are economically viable and if you accept 'satyrus and peribus', Equilibrium produces full employment in the country. Economists have to overcome that belief. And you have to study the Chaos theory of economics. If the political agenda tries to impose itself on the people independently of the economy, then the future of the government becomes tarnished or the government will change. Today, the irrelevance of politics-economics is hidden behind the law-political-economy decay.