India's War Budget World's 3rd Biggest Despite High Poverty

[Indx-techs]

PPP is to determine standard of living, not national power. So PPP per capital make sense in determine the life style of its citizens. But PPP number itself make no sense as you cannot measure the wealth of a country by PPP itself. As of now, average Chinese is about 1/5 as wealthy as an average America as China's PPP GDP per capital is one fifth of an America. But to calculate aggregate financial power, you pretty much need to use nominal GDP. So PPP GDP is useless in calculating the financial power of a country.

Well my friend, I was talking about Living Standards not economic power. I know that nominal GDP is the representator of economic power.

 

[danger007]

http://www.riazhaq.com/2016/12/indias-war-budget-to-be-worlds-3rd.html

In 2016, India surpassed Saudi Arabia and Russia to claim the 4th spot among the top five defense spenders globally for the first time, according to Jane's Defense. India, a country with 33% of the world's poor, is projected to surpass the United Kingdom to rise to the 3rd spot for defense spending by 2018.



Sources: FT/IHS Jane's (Defense Budgets) and World Bank (Poverty)
















India's military spending has grown rapidly from $38.17 billion in 2010 to $50.7 billion in 2016. It is projected to rise further to $56.5 billion in 2018 and $64.07 billion in 2020, according to Jane's. For comparison, India's south Asian neighbor Pakistan's defense budget for 2016 is only $8 billion.

India's rapid rise to the list of world's top defense spenders stands in sharp contrast to the reality that it remains home to the world's largest population of poor, hungry and illiterate citizens. India also leads the world for lack of hygiene, disease burdens and open defecation.

Prime Minister Narendra Modi's rule has seen dramatic growth of wealth inequality in India. Top 1% of Indians now own 58.4% of India's wealth, up from 49% in 2014 when Mr. Modi was elected Prime Minister, according to Credit Suisse Global Wealth Report 2016.

Median wealth data compiled by Credit Suisse for 2016 shows that average Pakistani adult is 20% richer than an average Indian adult and the median wealth of a Pakistani adult is 120% higher than that of his or her Indian counterpart, according to Credit Suisse Wealth Report 2016. Average household wealth in Pakistan has grown 2.1% while it has declined 0.8% in India since the end of last year.

CS Wealth Report 2016 indicates that 50% of Pakistanis own more than $1,180 per adult which is 120% more than the $608 per adult owned by 50% of Indians.

The Credit-Suisse report says that the richest 1% of Indians own 58.4% of India's wealth, second only to Russia's at 74.5%. That makes India the 2nd biggest oligarchy in the world.

The CS wealth data, particularly the median wealth figures, clearly show that Pakistan has much lower levels of inequality than India.

Oxford Poverty and Human Development Initiative (OPHI)'s MPI, multi-dimensional poverty index, brings together 10 indicators, with equal weighting for education, health and living standards. In South Asia region, Afghanistan has the highest level of destitution at 38%, according to OPHI's MPI index. This is followed by India at 28.5%. Bangladesh (17.2%) and Pakistan (20.7%) have much lower levels.

Rapid growth in India's defense expenditures conveys Prime Minister Modi's priorities. It seems that he believes the way for India to achieve great power status is through building a massive military regardless of the deep deprivations of the Indian people.

Mr. Modi's massive military buildup poses a serious threat to its neighbors, particularly Pakistan, a much smaller country which was invaded and split in two by the Indian military in 1971. The Indian invasion resulted in the creation of Bangladesh.

Related Links:

Haq's Musings

Credit Suisse Global Wealth Report 2016

India Massive Military Buildup

Modi's Israel Envy

India Home to World's Largest Population of Poor, Hungry & Illiterates

India Leads the World in Open Defecation

MPI Captures Depth of Deprivation in India



http://www.riazhaq.com/2016/12/indias-war-budget-to-be-worlds-3rd.html

99% of Haq's data are self made out of 1% other sources.. this is not 1st time that I encountered this infinite loop.. Haq's quote another blogger as his source and that blogger quote back Haq as his source..

I'm waiting to see data on 33% poor and twice wealthier than Indian..

 

[Kyoto]

India is world's cheapest country to live in. You must account in PPP.
Where the poverty in number stands 169 millions (around 12%) as per WB and 98 millions (7.7%) as per IMF. Further,.this stats is from Jan 2011 and 5-6 years have passed since then.
India ranks better from HDI to literacy, quality of life index, education index, average years of schooling, internet penetration, Hunger Index etc. which says everything.

Enough of trolls from Pakistan over Indian slums, once I got frustrated and searched about percentage of urban population living in slums. And look what I got!
http://mdgs.un.org/unsd/mdg/seriesdetail.aspx?srid=710
Percentage of urban population living in slums, India: 24%
Pak: 45%
Though, Pakistan was better in 1990. Same story is there with GDP per capita, HDI etc. where Pakistan led but was always pipped in end.
Over that, record of 70 millions, means more than 36% population of Pakistan is unavailable, so it's impossible to get actual poverty and gdp stats about Pakistan. Leave alone comparing with India.
Anybody may or may not agree, social progress in India has taken place much faster than Pakistan.

Indian nationalists are the most frustrating beings on earth I swear.
No-ones comparing with Pakistan but you have to involve it somehow. The fact that more Indians live in extreme poverty than Pakistanis as a percentage is not new or astounding so calm down. India is the second most unequal country in wealth distribution so it has more extreme poverty (less than 1.5$ a day).
Hiding your poverty is more shameful than admitting it and actually trying to fix it.

 

[RiazHaq]

View attachment 360101


99% of Haq's data are self made out of 1% other sources.. this is not 1st time that I encountered this infinite loop.. Haq's quote another blogger as his source and that blogger quote back Haq as his source..

I'm waiting to see data on 33% poor and twice wealthier than Indian..

There are citations and links to highly credible sources for each data point in my blogs.

As China's share of the world's extreme poor (living below $1.25 per day per person level) has dramatically declined, India's share has significantly increased. India now contributes 33% (up from 22 % in 1981). While the extreme poor in Sub-Saharan Africa represented only 11 percent of the world’s total in 1981, they now account for 34% of the world’s extreme poor, and China comes next contributing 13 percent (down from 43 percent in 1981), according to the World Bank report titled State of the Poor.

http://www.riazhaq.com/2013/06/indias-share-of-worlds-poorest-jumped.html

Average Pakistani adult is 20% richer than an average Indian adult and the median wealth of a Pakistani adult is 120% higher than that of his or her Indian counterpart, according to Credit Suisse Wealth Report 2016. Average household wealth in Pakistanhas grown 2.1% while it has declined 0.8% in India since the end of last year.

http://www.riazhaq.com/2016/11/cs-wealth-report-2016-average-pakistani.html

 

[Raje amar]

Ha ha ha ha .....
Riaz Haq.......

This guy is self claimed intellectual..... Fabricating all the data by him self.....

Nothing new in it. In my near decades presence on this forum it's not the first time and won't be the last.....

Good to see him burning on the name of Modi on another topic. With the current measure being implemented by Modi we will surly come out of the poverty issue.

 

[CorporateAffairs]

Indians deposited 13Lakh CR in banks in matter of 3 weeks.
And some still crib that India is poor

http://www.riazhaq.com/2016/12/indias-war-budget-to-be-worlds-3rd.html

Any credible source?

 

[Centurion2016]

Dress the figures up any way you want the simple fact is
India is a major world economy Pakistan is not
India has 390 billion in forex Pakistan has 20 billion
India GDP is eight times the size of Pakistan
Indian per capital income is now larger than pakistans

That is why when push comes to shove in any fight conventional or nuclear ant economic race any political race India will always win

You can't win when you are a fraction of Indian might

 

[danger007]

There are citations and links to highly credible sources for each data point in my blogs.

As China's share of the world's extreme poor (living below $1.25 per day per person level) has dramatically declined, India's share has significantly increased. India now contributes 33% (up from 22 % in 1981). While the extreme poor in Sub-Saharan Africa represented only 11 percent of the world’s total in 1981, they now account for 34% of the world’s extreme poor, and China comes next contributing 13 percent (down from 43 percent in 1981), according to the World Bank report titled State of the Poor.

http://www.riazhaq.com/2013/06/indias-share-of-worlds-poorest-jumped.html

Average Pakistani adult is 20% richer than an average Indian adult and the median wealth of a Pakistani adult is 120% higher than that of his or her Indian counterpart, according to Credit Suisse Wealth Report 2016. Average household wealth in Pakistanhas grown 2.1% while it has declined 0.8% in India since the end of last year.

http://www.riazhaq.com/2016/11/cs-wealth-report-2016-average-pakistani.html

Care to provide other sources not from blogs.

 

[conworldus]

Does anyone have data more recent than 2010 on the extreme poor share? After all a lot has changed in the past 6 years.

I have found 2013 data a bit more updated:

By this chart, China accounts for just 3.3% of extreme poor instead of the 13%, and India accounts for 29% instead of 33%. Pakistan accounts for 1.7% instead of 3%.

 

[Dem!god]

What pakistanis are talking about when 1/3 of their own population live below poverty line. Can't feed their own mouths still busy peeking in other homes.



http://www.dawn.com/news/1250694

The PML-N government on Thursday announced that 60 million Pakistanis are living below the poverty line, posing a challenge for the ruling party.

 

[SQ8]

Hi dear @Oscar
The present budget is hardly 2% of it's gdp.although it should be atleast 3%

Which is why it lags to what the military and hardliners want. It will increase eventually as the extremism within the government and people increases.

 

[Rajaraja Chola]

True, because you cannot discount the buying power of currencies, the strength of the dollar is a pillar of America's economic power. That's why nominal GDP matters more.

Maybe on the day when you can buy 1 USD for 1 Rupee that might change. Interesting fact, the original conversion rate was actually 1:1 when the Rupee was created.

Purchasing power in a way matters though but country's economy is measured on GDP. An can of coke costs 1.5 USD with tax, meaning nearly 90-95 INR, while the same costs 25 INR in India. I am sure it will be like 50-60 INR in China, still significantly lower than in US. The bottomline is a average person in India has all the things an average person in US has. Everyone can buy anything at lower prices.

 

[Chinese-Dragon]

Purchasing power in a way matters though but country's economy is measured on GDP. An can of coke costs 1.5 USD with tax, meaning nearly 90-95 INR, while the same costs 25 INR in India. I am sure it will be like 50-60 INR in China, still significantly lower than in US. The bottomline is a average person in India has all the things an average person in US has. Everyone can buy anything at lower prices.

Yes, PPP is helpful when measuring living standards.

But in terms of "economic power", currency values are extremely important, hence why economic power is measured by nominal GDP based on currency exchange rates.

When a US tourist comes to India or China and throws around thousands of US dollars, the buying power they have is far greater than the average citizens of these countries. When America the country imports oil and electronic machinery, their dollars allow them greater buying power. Same when it comes to buying diplomatic favors.

Or for example, when India buys the Rafale. The power of currency does matter a lot.

 

[RiazHaq]

View attachment 360114

Care to provide other sources not from blogs.

As a consequence, after India (33 percent), LICs contain most of the extremely poor in the world (29 percent in 2010). In 1981 only 13 percent of the extremely poor resided in LICs. As shown in figure 3, both the number of extremely poor individuals and the number of people living with incomes above $1.25 per day have increased in LICs. But the number of people living with incomes above $1.25 has increased


http://siteresources.worldbank.org/EXTPREMNET/Resources/EP125.pdf

 

[Samrat420]

Yeah, Nehru invaded China when China was in famine.

Which indirectly leads to the Indian obsession with China today.

Yeah..!!! He pretty much disbanded his own military because he was planning to attack China.. Superb 50-cent logic..

And before you start bringing the fabled “Forward Policy" in here, lemme ask you something.. Why do you think was the Forward policy launched? Was it an aggressive expansionist move? Or was it a reaction to the PLA moving into Tibet and then Aksai Chin ?

Which is why it lags to what the military and hardliners want. It will increase eventually as the extremism within the government and people increases.

Sir... Are we allowed to advertise our own blogs on PDF? And would my personal blog be considered credible enough to be cited as a source for my arguments? Please clarify.. Thx