GDP (Gross Domestic Product) is the total market value of all final goods and services produced within a country’s borders during a specific period (usually a year or a quarter).
The most common formula is:
The most common formula is:
GDP = C + I + G + (X – M)
Where:
C (Consumption): Household spending on goods and services.
Food, clothes, mobile phones, haircuts, etc.
I (Investment): Spending on capital goods and inventory.
Factories, machinery, software, new houses, unsold inventory.
G (Government Spending): Government purchases of goods and services.
Roads, salaries of teachers and soldiers, public infrastructure.
X (Exports): Goods and services sold to other countries.
M (Imports): Goods and services bought from other countries.
Imports are subtracted because they are included in consumption, investment, or government spending but were not produced domestically.
Total spending = Total production = Total income
Every rupee spent on a final good or service becomes income for somebody.
A simple example:
Suppose a farmer grows wheat worth ₹100.
The wheat is sold and consumed.
GDP increases by ₹100.
That ₹100 might be distributed as:
₹60 wages to workers
₹20 rent for land
₹10 interest on loans
₹10 profit to the farmer
This means India’s economy is driven primarily by:
Consumer spending (~56%)
Investment (~34%)
Government spending (~9%)
Net exports are currently negative.
But the income may be skewed.
GINI Coefficient – Recent World Bank-based data for India reports a Gini index of about 25.5 (based on household consumption data).
However, there is an important caveat: India’s official Gini is often calculated from consumption expenditure, not direct income data. Consumption is usually more evenly distributed than income, so it can make inequality appear lower than it actually is.
India’s wealth distribution is generally believed to be much more unequal than its consumption distribution. Discussions of wealth concentration often point to a large share of wealth being held by the top 10% and especially the top 1%.
India’s GDP growth is mainly driven by:
Consumers (largest engine)
Investment (fastest growing engine)
Government infrastructure spending
Services sector (main production engine)
Economic Factors for India’s consumption
Many households spend using borrowed money:
Credit cards
Personal loans
Buy-now-pay-later (EMIs)
Gold loans
Microfinance loans
Example:
Income = ₹20,000/month
EMI + credit spending = ₹5,000–₹10,000 extra consumption.
Households often fund spending by reducing savings:
Bank savings withdrawal
Selling gold (very important in India)
Selling assets (land, property, livestock in rural areas)
So spending can stay stable even if income temporarily falls.
A big part of India’s economy is informal:
Daily wage work
Cash jobs
Small businesses
Freelancing or side income
So reported “low income” may not reflect actual cash flow.
India has strong informal support systems:
Money from relatives (remittances)
Support from parents or children
Shared household resources
This increases consumption capacity without formal income rise.
Government transfers also help maintain spending:
Free/cheap food grains (ration system)
Direct benefit transfers (DBT)
Rural employment schemes (like MGNREGA)
These stabilize basic consumption.
People often spend based on expected future income:
Job security perception
Salary hikes expected
Seasonal income cycles (farmers, gig workers)
So spending is forward-looking, not just current income-based.
India’s GDP can rise because:
Higher-income groups increase spending strongly
Middle and lower-income groups may not rise as much
So even if “average income feels low,” total consumption still grows due to top-income spending + credit expansion.
Think of spending like this:
Spending = Current income + Borrowing + Savings + Transfers + Expectations.
Key takeaway
People are not always spending only what they earn in that month.
They also spend:
future income (credit),
past income (savings),
and shared income (family + government transfers).
That’s why GDP consumption can keep growing even when many individuals feel income pressure.
Overconsumption
1. “Filling the void” (existential gap)
Sometimes consumption increases when people feel an inner emptiness:
lack of meaning
lack of direction
boredom or stagnation
feeling “something is missing”
So buying becomes a substitute for internal fulfillment:
> “If I feel empty, I can fill it with things, experiences, or stimulation.”
But the effect is temporary:
excitement during purchase
quick return to the same emptiness
This creates a loop: void → buying → short relief → void again.
2. Stress relief (emotional regulation)
Stress increases consumption because buying temporarily shifts brain state.
When stressed:
cortisol (stress hormone) is high
attention narrows to immediate relief
Consumption provides:
distraction
Control (“I chose this”)
reward dopamine spike
So shopping becomes:
> a fast emotional reset button
But it doesn’t solve the stress source, so it repeats.
3. Loss of connection (social and emotional isolation)
Humans are connection-seeking creatures. When connection is weak:
less family interaction
weaker community ties
loneliness in urban life
digital rather than real relationships
Consumption often becomes a substitute for connection:
buying food instead of cooking together
online shopping instead of social interaction
branded goods as identity replacement
experiences (malls, travel, entertainment) replacing relationships
So the logic becomes:
> “If I cannot feel connected to people, I will connect to things or experiences.”
But objects cannot fully replace human bonding, so the need persists.
4. Addiction loop (behavioral reinforcement)
Overconsumption can become similar to addiction because it follows the same brain mechanism:
Step-by-step loop:
1. Trigger (stress, boredom, loneliness)
2. Urge (“I should buy something”)
3. Action (purchase)
4. Reward (dopamine, relief, excitement)
5. Crash (emptiness returns)
6. Reinforcement (“buying helps temporarily”)
This is a reinforcement cycle, similar to other behavioral addictions.
Key point:
> The brain learns that consumption = relief
So the urge becomes automatic over time.
5. Why modern systems amplify this
Modern environments strengthen this cycle:
1-click shopping removes friction
algorithms show personalized temptations
EMIs reduce pain of payment
social media increases comparison and loneliness
constant novelty reduces emotional stability
So the system continuously feeds:
stress
comparison
disconnection
and immediate escape options
Core psychological summary
Overconsumption often emerges when:
Void → consumption as substitute meaning
Stress → consumption as emotional relief
Isolation → consumption as pseudo-connection
Reward loop → consumption becomes habit/addiction.
One-line synthesis
Overconsumption is often not about “wanting more things,” but about using things to regulate inner states that were originally meant to be regulated by meaning, relationships, and emotional balance.
What was the cause for over consumption in BJP govt ?
Why every body started consuming so much.
There must be 3 reasons. All of them had a common source. Not sufficient or natural Dopamine by The person at the top resulting in addition.
1.)Stress – Hindu Muslim Politics. Totally Anti PC and alarm for danger making previous serotonin levels insufficient.
2.)Void – Loss of religious brotherhood. Lack of desire to work hard together making producing less Endorphins.
3.)Disconnection – From Art. From Nature not producing enough oxytocin.
Addiction – to whatever available as a result. Even if it is fake sense of Religious superiority. Remember addiction is not bad. What are you addicted to decides good or bad.
This addiction further worsened above three ie stress, void, disconnection. So over consumption to maintain above addiction in a loop.
Overconsumption = ID satisfying itself instead of superego.
Overconsumption is usually:
ID impulse + Ego rationalisation – Superego inhibition.
It is not that Superego is good and Ego is bad.
Sometimes Ego itself becomes Superego in the absence of spiritual teachings. False Religion is major contributor.
Also super Ego is more like not satisfying impulses directly but indirectly.
A Temple, A Township, A college, Better public infrastructure. All these can convince Ego to rationalize that Super Ego is not required.
In India Temples are major reasons. Developed countries have excellent public infrastructure because of absense of Temples but capitalism again convince Ego to rationalise that super Ego is not required.
Their over inflated Ego may not look bad or dirty but harms mainly the environment greatly which is the cause of all their other problems.
In modern overconsumption, the Ego usually doesn’t disappear.
Instead, it justifies the Id:
“I deserve this”
“It’s on discount”
“I’ll use it later”
“It’s an investment”
So Ego becomes a rationalizer of desire, not just a controller.
Superego would normally say:
“You don’t need this”
“Save money”
“Be disciplined”
But in overconsumption:
it is silenced, negotiated with, or postponed
Modern systems also weaken superego influence via:
EMIs (“you’re not really spending”)
social normalization (“everyone buys it”)
marketing moral framing (“you deserve it”)
So: Id pushes, Ego rationalizes, Superego is softened.
Healthy and Unhealthy consumption increasing GDP
Healthy – Consumption is much less than the produced output for survival and betterment of country.
Ex – I paid for Ads through credit card to save people from corona.
I paid for extra food to maintain the appetite in the death environment.
I paid for stationary and Wending machine items for Mtech work.
I paid Zomato and Swiggy and gig workers here to create content on site which is useful I think.
I bought a 4 Bhk for my Facebook page.
Unhealthy – Consumption is much more than the produced output for survival and betterment of country.
Ex- Making a Temple for Time pass.
Unnecessarily expanding shares portfolio to grow a little vegetables on terrace.
Unnecessarily over spending on wedding of daughter.
Making 4 Bhk for no one.
These are the main reasons India is not developing.
1.) Consumption drives GDP (C). There is very little investment or expansion in production. Mostly it is a service economy.
2.) Government is corrupt (G). The Religious culture easily silence the Super Ego of Govt officials. Govt either don’t buy much Goods and service or the high corruption give a false GDP figure. Money don’t reach the right person. Bridges and buildings collapses, Roads easily get damaged. Further if Govt is hell bent on making Temples the advantage of being capitalist is neutralised. It gives Freebees to keep the GDP figure up. But Freebees are not salary. No actual work is done.
3.) Capitalist ideals fail(I). Spending on production (Houses are also produced before buying) remains stagnant. Innovations and startups fail. Over consumption may lead to lack of variety or new product invention. One person may buy 10 numbers of Cars instead of 10 different things. Why ? Over consumption is for immediate relief.
On the other hand increased Consumption but at natural pace is sign of productivity increasing.
4.)More import than export(X,M). Over consumption reduces productivity. Already Exporting goods volume drop and already or new imported goods volume increases.
Why did the value of Rupee drop ?
Value of currency is measure of purchasing power.
We have to define purchase first.
First there was Barter system. It became impractical so fiat currency was made. Idea was buyer and seller may not always match for a successful transaction. Fiat currency could easily solve that problem.
If I look it this way then purchasing power is how easily it can solve the problems associated with barter system. In simple terms Money is not sufficient for transaction. Something more is demanded by seller.
In Mtech technically everything was free. Stay, Food Education. It is suppose to be free. The situation in Mtech is very different from Btech. There is shortage of domain specific skilled engineers. But to enter the program I had to arrange fees. This makes it not free Isn’t it. The sale value was 0 but a lot of my economical resources besides money for example health were used to get admission.
So the answer I think is health.
Buyer demands to sacrifice health in addition to money. Reason must obviously be to secure or improve buyers health. This is predatory behaviour.
That’s why medical fitness cirtificate was required. Probability of being unfit entering Tech program must be high. Much more in Mtech than Btech.
Ok so when living conditions to produce becomes unhealthy the producer demands more than just money.
How does it drop rupee in international market.
Health is Wealth. Why would any country compromise its health to buy from India.
Here in BARC though I am the seller or producer of service. I mean all employees are. So either we are getting over paid or the buyer’s health is being compromised.
The technical workforce is selling service to admin workforce. Admin hardly do anything. So it’s them who are being over paid. It is so in all PSUs and Companies I think. There is free medical. It will not be required though if technical employees do not share the extra health burden of Admins.
I spent 18 days just for medical checkup that was most probably was going to get clear because they don’t check mental health.
From 8 months everybody is reading me but for free. It’s a service BARC needed from employees. That’s why they hired me. That’s why they hired anybody.
By BARC I should mean all employees but more the Admins. It’s hard to give name to this service as it is beyond the job profile. I would thank for atleast paying me 1 lakhs. It was for the service provided to hospital I think.
Doctors must also be compromising mental health by giving free extra service to families of employees as well.
They do not like it. It is asking more than physical well being or fitness of employees or in other words asking them to be pseudo psychologist as well.
So they needed to extract that from somewhere. Hence 18 days. But Technical employees intuitively know mental health is not for gambling here. You have to keep that balance sheet perfect.
Now the only thing I wonder is that for Admins also rupee value is same as us. So they must also be doing extra.
The Govt ie the Party in power is the buyer. Why will they overpay. They must be getting paid for inaction as it is also action. Same must be for the Govt.
Inaction without the necessary skills must be having same effect to the health.
We Indians are unhealthy in both activity as well as inactivity compared to other countries.
I would not want to take false credit but I think I deserve credit for teaching this stuff. I appointed myself as a chief details officer. My job was to find or correct problems that don’t require much budget but NOTHING to have great effect.
No body wanted NOTHING as there was no salary. But I think I decoded it. I will add more details as it comes to. Plus BARC can always come back as many times as it want and read my blog like a book. I think it would be more usefull in reverse order.
I will try to renew hosting as soon as possible. In suspension mail they mentioned only 7 days suspension period after which everything will be deleted. But they only mentioned it for Cloud, VPS and Dedicated hosting while mine is shared hosting. I have opened a support ticket asking is it also same for shared hosting. If not what is exact number of days.
Now how to correct it ?
It has to start with Govt.
Inaction is good only for research.
Action is good only for service.
The mistake we are doing is –
Service without Research.(The Admin employees)
and
Research without Service.(The Technical Employees)
Please explain it to me my muse.
Admins in hierarchical context are not seperate Admin department but the upper level employees.
They have a sitting job but are not doing much research for their respective field.
Similarly Technical employees in hierarchical context is not the Technical departments but lower level employees.
They have moving job but their labour is not utilised well. They don’t look by themselves neither are instructed for any scope for improvements in the field or come up with ideas to reduce manual labour. In other words maximize the service output of a single movement.
Few areas visible to me also are:
1.)Modi ji visiting other countries but speaking gibberish only for the camera. The other country leaders also following the same. Other party members in India as well.
In fact he does everything for camera. Nothing for the immediate people he meet or interact with. This is service without Research. People far away will not be technically impacted as much as people immediate. Immediate is where service can give maximum results.
It may seem counter intuitive but it is true. To lead even one is a humongous task. So if I had not payed attention to you as before till 2018 all your effort would have been useless. But I could have done much rewarding other things of my calibre.
Same I think I can say for all the DDs but that was their job. Without camera anything they do is useless. But that does not mean on camera stuff should have been this useless.
2.)The Youtube Gang-
For them I can only say you are doing research but not really any service. You have been uploading So many videos from 12 years and yet nothing has changed. I can say this with no doubt.
I don’t know how much I am true or false about Modi ji though knowing that your name happens to be in the Epstein files somehow.
I have no personal grudge with BJP or Modi Ji but these are technical facts. Unless you correct them Economy will not grow and if you cannot correct them then you need to go.
Ashwini Singh Chandel is a graduate from NIT Bhopal in ECE currently posted in IGCAR Kalpakkam as Technical officer. He has 8 years experience in NTPC as assistant manager. He shares his unorthodox and unique views on philosophy, politics and science and use psychology to connect it with the general people so more people can be involved with the philosophy and science community and play an active role in policy making process of his country and the world.