Huff, puff, India will finally be a $2 trillion economy this year

[arp2041]

@WebMaster Please make this thread a STICKY for Basic Economics Guide of PDF

P.S. After some clean-up.

 

[cloud_9]

I don't see it happening The whole India story is pretty much out of breath





PS - People talking about underground or shadow economy and no one has tagged our in house Shadow Economist

 

[Sergi]

This is not entirely accurate mate. It is any activity that is not monitored or taxed by the govt. As such everything from street sellers to cash in hands jobs is part informal activity. Yes there maybe some part of the activity along the line that is counted such as purchases from a market however the value added and subsequent revenue from the sales of the finished product will not be counted.

The "production" and the "income" generated at any level has to be counted once. That why we use both the methods of GDP counting to avoid multiple counting.

For example agricultural Production is always a estimate not 100 percent correct value. It is just confirmed by the amount of production reached to e open market

 

[neehar]

Ya you are right, My Bad.

SERVICES + PRODUCTION WITHIN A COUNTRY = GDP.



Value of Entire Production/Services within a country + Inflation/Deflation + Currency Appreciation/Depreciation = GDP (Nominal).

Whereas Real GDP is the inflation adjusted GDP & Less than Nominal GDP:

Real Gross Domestic Product (GDP) Definition | Investopedia

let me add my 2 cents..gdp(ppp)= gdp of a country+trade balance+interest of loans+private remittances..just another usage of GNP

we have good remittances but inspite of the other two being negative we're still the 3rd largest in this parameter

 

[Sergi]

let me add my 2 cents..gdp(ppp)= gdp of a country+trade balance+interest of loans+private remittances..just another usage of GNP

we have good remittances but inspite of the other two being negative we're still the 3rd largest in this parameter

GDP based on PPP is more useful determine capacity of the economy than to use it to compare with other economies

If I have to give an example , if a bugler cost 2$ in US and 60 Rs in India means purchasing power of 2$ = 60 Rs when actual value of 2$ is around 100/110
Then do you think comparing with purchasing power parity is a good major for comparison ???

 

[janon]

let me add my 2 cents..gdp(ppp)= gdp of a country+trade balance+interest of loans+private remittances..just another usage of GNP

we have good remittances but inspite of the other two being negative we're still the 3rd largest in this parameter

I don't think that is right. PPP is a measure of how much the same amount of currency can buy in various countries. One dollar can buy a lot more stuff in India than it can in USA, so a method was devised to take that factor into account when comparing GDPs of different countries. Simply put, things cost a lot more in USA than in India, and a lot more in Denmark than in USA.

Therefore, to quote wiki,

This discrepancy has large implications; for instance, when converted via the nominal exchange rates GDP per capita in India is about US$1,704 while on a PPP basis it is about US$3,608. At the other extreme, Denmark's nominal GDP per capita is around US$62,100, but its PPP figure is US$37,304.

How would you account for Denmark's GDP (PPP) being only a little more than half of its real GDP, using your formula?

This part in wiki gives one formula used to measure PPP:
http://en.wikipedia.org/wiki/Purchasing_power_parity#Updating_PPP_rates_for_GDP

 

[neehar]

GDP based on PPP is more useful determine capacity of the economy than to use it to compare with other economies

If I have to give an example , if a bugler cost 2$ in US and 60 Rs in India means purchasing power of 2$ = 60 Rs when actual value of 2$ is around 100/110
Then do you think comparing with purchasing power parity is a good major for comparison ???

yes.which is why now gdp is calculated based on ppp.u made the precise point.. a person earning 2 $ a day.may not lead the same life styl across the globe..a person can lead a comfortable life with that 2$ in india but not in japan or u.s..so it is adjusted to the local infaltion levels.which reflects the reality.which means a person in japan earns about $36000 per annum and an indian earns 1/10 of that.but gdp(ppp) tells u that our ppp is better than japan.which means even though our percapita is lower accoeding to the local price levals an indian is a bit more comfortable in india than a japanese in japan with what he earns

I don't think that is right. PPP is a measure of how much the same amount of currency can buy in various countries. One dollar can buy a lot more stuff in India than it can in USA, so a method was devised to take that factor into account when comparing GDPs of different countries. Simply put, things cost a lot more in USA than in India, and a lot more in Denmark than in USA.

Therefore, to quote wiki,



How would you account for Denmark's GDP (PPP) being only a little more than half of its real GDP, using your formula?

yes it is a corrected gni in terms of volume as i stated in my statement
u can refer indian economy by ramesh singh for more details

 

[neehar]

and we dont measure our gdp in terms of market cost except for internal plans and evaluations..because or state taxes are not uniform which is why precisely GST was proposed in this budget sessionwhich reforms the tax structure and makes it uniform.so after its implementation we can measure our gdp at market cost which itself shows additionally about 1-2% growth to the economy.so if gst is implemented completely the minimum gdp growth we'll be seeing is 6%.added to it the actual growth rate..so lets hope for the best

 

[BigDaddyWatch]

I don't know if GDP is the best way to measure the strength and size of a economy. Countries around the world constantly change the composition of what goes into the GDP numbers and the definition of what GDP is. Here is the latest one coming out of America.

Changing the Conversation | Euro Pacific Capital

 

[itbpwin]

PPP is abad way to compare. China will cross USA by PPP in 2016 but divide by population of China, that's peanuts.

 

[shivgan3]

India is worlds largest economy of Muslims, with atleast 30% Muslims in India that amounts to 600 million economic power of muslims.. that is reason Khangress and nitish get funded with a lot of money...
Vice President, Chief Justice, Foregn minister, IB head, Election commission head all muslims..
All this economic might will be used to serve islamic interest globally...
so muslims and pakistani should be happy about it and stop wasting money on defense...

 

[Psyops]

India STILL haven't crossed $2 trillion?

Our fiscal revenues are at $2 trillion. Our economy is $8.2 trillion.
Our fiscal revenues alone are bigger than the ENTIRE Indian economy.

India is such a joke.

 

[IND151]

India STILL haven't crossed $2 trillion?

Our fiscal revenues are at $2 trillion. Our economy is $8.2 trillion.
Our fiscal revenues alone are bigger than the ENTIRE Indian economy.

India is such a joke.

It took us 60 years to be trillion dollar economy

now we are going to be 2 trillion dollar economy in 2013

1 trillion-2 trillion- in just 6 years

Well Rupee will not Breach the 55 mark forget 60 mark this fiscal.

CAD will only decrease from 5.1% & may remain in b/w 4.8-5% levels.

We have passed the worst year of last decade so economy will surely grow more than 5.5% level, may cross 6% but not sure of 6.4% mark.

So, Yes, it can be SAFELY concluded that the Indian economy will surely cross $2 trillion mark this fiscal becoming Only the 10th country to HIT that mark.

BUT, nothing can be said till it's UPA - Un-Productive Alliance

well, 6% is good, our growth will return to 7% since next year

 

[IND151]

I was looking at the Wikipedia for the IMF list of GDP (nominal).

It says Russia is now a $2 trillion economy while India is around $1.85 trillion.

While just last year, both economies were very close to each other.

& AFAIK, It is India that is clocking more GDP growth rate than Russia.

So how did Russia cross the $2 trillion mark before India?? Is this about currency appreciation in Russia & reverse in India??

@Chinese-Dragon

Anyone??

India is 1.946 trillion dollar economy now

 

[Screambowl]

it suddenly struck my mind that may be due to this reason PLA intruded so that Indian economy crumbles and remain below 2 trillion dollar mark Oo