Indian consumer confidence , as tracked by the Reserve Bank of India , has been abysmal ever since covid broke out. Annual output is also the sum of all profits, wages and indirect taxes in a year. So, if businesses have made more money and GST collections have not fallen too drastically in a shrinkage year, employees on payrolls must have borne the brunt of the crisis. Worse, it would raise the risk of India slipping into a ‘middle-income trap’ at some point in the future. The reasons identified vary, but unevenly distributed riches generated in the early phases of expansion are often to blame.

Source: Mint December 28, 2020 15:56 UTC