1/ How do Real GDP, GVA, subsidies, and the GDP deflator connect? Let’s unpack this using India’s Q4 FY25 GDP numbers, where growth hit 7.4% 🧵
2/ GVA: Gross Value Added measures production across sectors (agriculture, industry, services) at basic prices (before taxes/subsidies). In Q4 FY25, GVA grew 6.8%, reflecting actual output. Strong agriculture (Kharif crop) and services drove this.
3/ Nominal GDP = GVA + Taxes on Products - Subsidies on Products. In Q4 FY25, GDP grew 7.4%, outpacing GVA. Why? A 45% cut in subsidies (e.g., fuel, fertilizers) reduced the amount subtracted, boosting nominal GDP.
Pakistan, and then India closed their airspace for each other in the aftermath of India's airstrike on Balakot.
How did each country fare, and who suffered more? Let’s break down the losses and understand why Pakistan buckled:
India’s Losses: Indian airlines took a hit of ~$78.6M due to rerouting flights after the Feb 2019 closure. Air India lost $70.1M, with IndiGo, SpiceJet, & GoAir losing $3.6M, $4.4M, & $0.3M
Pakistan’s Losses: Pakistan faced $100M in losses, mainly from lost overflight fees ($65.4M) & Pakistan International Airlines’ disruptions (~$34.6M). Daily losses hit $300K from 400 avoided flights, with PIA losing >$450K/day. 💰
Why did BJP give up on the CM position in Maharashtra?
Here is what I think:
While the Shinde faction has got control of the legislative party, the political Party that is Shiv Sena is still in control of the Uddhav faction.
By making Shinde the CM, BJP has paved the way for Shinde to bid for total control of the Sena, including the party symbol.
Given the numbers, BJP will still be in control of the Govt and will be able to push through its development agenda, including the flagship Infrastructure projects that Fadavis started and which were stalled by Uddhav,