India to be $5.6 trillion economy by 2020

[my2cents]

you need to learn compound interest ... at 8% growth india can achieve near to 4 trillions but an double digit growth is required to achieve this goal ....

P = principal amount (the initial amount you borrow or deposit)

r = annual rate of interest (as a decimal)

t = number of years the amount is deposited or borrowed for.

A = amount of money accumulated after n years, including interest.

n = number of times the interest is compounded per year

 

[Abhishek_]

^I doubt the little ones here willl pay attention to math

 

[rollindays]

P = principal amount (the initial amount you borrow or deposit)

r = annual rate of interest (as a decimal)

t = number of years the amount is deposited or borrowed for.

A = amount of money accumulated after n years, including interest.

n = number of times the interest is compounded per year

Yes, this is the formula I used, & I got a GDP of $3.5 trillion for 2020 for India, if a constant 8% nominal growth rate (real growth rate is even lower) is used over the next 9 years. Not $5.6 trillion.

 

[suryakiran]

Can someone explain to me what average GDP growth rate % has been assumed for the next 9 years?

I selected an average GDP growth rate of 10% for the next 9 years, & did a little calculation:

GDP nominal of India for 2011: $1.73 trillion

10% of $1.73 trillion is $0.173 trillion.

Hence:

1.73 + 9(0.173) = $3.287 trillion in 2020

Even when I used an average 15% GDP growth rate for the next 9 years, the GDP for 2020 came out to be $4.066 trillion.

There must be some other way to calculate this. Can someone show me how they got the $5.6 trillion economy number by 2020?

Your calculation is wrong mate.
GDP nominal of India for 2011: $1.73 trillion
10% of $1.73 trillion is $0.173 trillion.
Hence: 1.73 + 0.173 = $1.903 trillion in 2012

Now, 1.903 + 0.190 = $2.093 trillion in 2013
Keep calculating like this untill 2020 and you will get the correct figure.

 

[rollindays]

Your calculation is wrong mate.
GDP nominal of India for 2011: $1.73 trillion
10% of $1.73 trillion is $0.173 trillion.
Hence: 1.73 + 0.173 = $1.903 trillion in 2012

Now, 1.903 + 0.190 = $2.093 trillion in 2013
Keep calculating like this untill 2020 and you will get the correct figure.

Read Post # 17.

 

[Gandhi G in da house]

yes oh learned one...we do prefer to wait n watch. feel free to carry on living in air castles.
After all not everyone can live in "will be" & "Would be"

what air castles miss lamba ?

Have we not doubled our economy twice in the last ten years with 8 % growth rate ?

Is that not a fact . I am debating on the basis of afcts whereas you and bilal haider(rolling) are using weird arguments about math even though great in his post 31 did explain the difference between nominal and real growth . You are a pessimist , please continue being one , but don't try to look down on those who aren't . Let's just Wait and watch .

 

[suryakiran]

Read Post # 17.

Just sw that. Thanks

 

[Gandhi G in da house]

Read Post # 17.

Mr.bilal , read post no. 31 of great and i know you have but you will continue trolling i know.

 

[rollindays]

Do remember that the growth rate reported is REAL growth, but the actual NOMINAL value could be higher. The actual money supply (and nominal GDP) in India, as long as the rupee isn't inflating relative to the dollar (and that's pretty damn easy seeing that the dollar is crashing) the rate of inflation is also added to the real growth.

So India with 5% annual inflation and 10% growth could see the money supply grow at 15%. That's partially why China grew so fast; its not just the straight 10% growth but also the 5% inflation.

I'm not sure if the reported figures are real growth, because as you can see in Post # 43, it explicitly says that the inflation has already been adjusted into the figures:

 

[Nitin Goyal]

wooow..good news. our economy got four times in a decade. I hope we will achieve or even exceed the target.

 

[Abhishek_]

what air castles miss lamba ?

Have we not doubled our economy twice in the last ten years with 8 % growth rate ?

Son, try using a calculator for doubling 1.73, last time I checked it was not 5.6
You need to more than 13% avg in order to reach 5.6 by 2020 and if you bother checking the graph posted by rollin, it clearly points to a slowing down of the growth rate.
I'm not being a pessimist, just looking at the data and commenting based on commonly used math/finance principles. Maybe its time for you to take Econ 101.

 

[rollindays]

Mr.bilal , read post no. 31 of great and i know you have but you will continue trolling i know.

So we all know that the nominal growth rate is greater than the real growth rate. But really, what real good is the use of the nominal growth rate? If we go about using those figures for measuring the size of the economy, then the next 9 years for Pakistan would grow it at a nominal rate of almost 20% (as compared to India's 14-15%) every year; faster than India going by the nominal growth rates, because 14% of it would be the inflation %. So the nominal growth rate isn't really that important for measuring the size of the economy. I hope you understanding what I'm saying, & I'm not trolling!

 

[Abhishek_]

^precisely.
estrogen is running high in some ppl here :facepalm:

 

[ashokdeiva]

Just growing the economy is not the need of the hour, the more the industries we start the more we are polluting the land we live in, the water we drink and the air we breath. The people all arround the globe are running after money with out looking at the consequence they are about to unfold on the future generations.
More of industrial out out is a curse, The more we become sophesticated in our way of life the more we become lazy and the more we are prone to diseases.
I don't how many agree with me on the above words. but human being is a creature with a hole in his heart and nothing will satisfie our needs unless we feel good about what we have to live.

 

[Abhishek_]

^I think you will find more eyes n ears on a greenpeace site. defense enthusiasts might not pay much attention to your very valid points