75 trillion Rupees economy vs a 35 trillion RMB economy

[thakur_ritesh]

anyways i want to understand from an economic point of view as to how can a system be sustained where of every 100 4/5th part is a black economy in some way or the other, things dont add up.

 

[panduranghari]

anyways i want to understand from an economic point of view as to how can a system be sustained where of every 100 4/5th part is a black economy in some way or the other, things dont add up.

You ask a very useful question.

A common man today earns whatever rupees he earns. He buys whatever he needs and then saves rupees. He thinks he has money saved. Along comes the government and to keep the socialist lifestyle of the lazy and useless, it prints money to devalue the currency. This devaluation worsens when the govt tries to maintain the peg of the rupee with the usd.

The common man resorts to corruption to make ends meet thus creating the black money monster.

I agree the system is non sustainable. I expect the edifice will come down sometime soon. The sooner the better I say.

 

[tiranga]

The last time I saw that report it was 89 trillion dollar economy....

 

[badguy2000]

china's GDP of 2011 might be about 50 trillion RMB

 

[cir]

Guys if we see the size of indias and chinas economy in terms of multiplying the dollar based gdp to their respective currency, what to the numbers tell us? Indias is a 75 trillion Rupees economy and chinas is 35 trillion RMB. So what does it mean at a domestic level?

China's total economic output，aka GDP，passed 40 trillion yuan in 2010.

This year China's GDP is likely to come in the region of 48 trillion yuan. The exact figure will be made public on 17.01.2012.

The Indian rupee has seen dramatic fall of late, whilst the RMB gained some 5% against the dollar in 2011. Measured in the greenback, India's 2011 GDP will be about one fifth China's.

So what's the point in comparing?

Each should follow its own development path to its full potential.

 

[trackwhack]

China's total economic output，aka GDP，passed 40 trillion yuan in 2010.

This year China's GDP is likely to come in the region of 48 trillion yuan. The exact figure will be made public on 17.01.2012.

The Indian rupee has seen dramatic fall of late, whilst the RMB gained some 5% against the dollar in 2011. Measured in the greenback, India's 2011 GDP will be about one fifth China's.

So what's the point in comparing?

Each should follow its own development path to its full potential.

So by your estimates, China recorded a 20% growth last year. Nice, can you pass me that peace pipe.

 

[Yusuf]

Well look at the positive side of Indian currency depreciation. Next year rupee will be back where it was and we will say we grew by 25%

 

[Yusuf]

BTW depreciation in currency will only serve to increase the GDP in PPP terms and that is what is the essence of the thread. Refer OP

 

[mylegend]

https://www.cia.gov/library/publications/the-world-factbook/
I have post a number comparison in China&Pakistan Section.
Chinese GDP is the following according to CIA World Factbook.

GDP (official exchange rate):
$5.878 trillion (2010 est.)

GDP (purchasing power parity):
$10.09 trillion (2010 est.) country comparison to the world: 3 $9.144 trillion (2009 est.) $8.374 trillion (2008 est.)

India's GDP is the following according CIA World Factbook:

GDP (purchasing power parity):
$4.06 trillion (2010 est.) country comparison to the world: 5 $3.679 trillion (2009 est.) $3.447 trillion (2008 est.) note: data are in 2010 US dollars
GDP (official exchange rate):
$1.538 trillion (2010 est.)

 

[mylegend]

So US made a estimate of PPP for us. By the way, I do believe official exchange rate is a important measure. For example, in the market of commodities, you may say RMB is worth twice as much regarding to PPP value. However, I'm sorry, you can only buy the amount of resource your currency exchange rate suggested. You can only buy a barrel of oil by exchange rate not PPP. 1 rmb(ruppe) still worth 1 rmb(rupee) when you want to buy a barrel oil from the Saudi Arabia.

 

[mylegend]

As regarding to PPP, I do not live in India, I have no idea how much things cost. China currently have a relatively artificially suppressed agricultural product price. 500 gram of rice cost 2rmb. 500 gram of pork cost differently throughout the country, but usually will not exceed 14 rmb. Currently, pork cost about 10 rmb per 500 gram in Guangzhou.
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[mylegend]

Black economy usually some how end up in normal economy. You earn your cash, but when amount is big enough, you need to save it into a bank. When bank get the cash, they will lend it out. Also, you still want to consume regardless, big ticket item such as car and houses will convert black cash into the economy.

 

[Tianshan]

now it is 57 trillion yuan.

anyone know how many rupees for India?

 

[p2prada]

now it is 57 trillion yuan.

anyone know how many rupees for India?

It's crossed 100 trillion. We will know soon though. Most probably tomorrow. Budget time.

 

[p2prada]

Deleted.......

 

[Sunder singh]

As regarding to PPP, I do not live in India, I have no idea how much things cost. China currently have a relatively artificially suppressed agricultural product price. 500 gram of rice cost 2rmb. 500 gram of pork cost differently throughout the country, but usually will not exceed 14 rmb. Currently, pork cost about 10 rmb per 500 gram in Guangzhou.
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1 rmb equal to 10.2 Rs so 500 gm rice 2 rmb roughly 20 Rs same rate as of India but pork is less consumed by Indians 500 gm pork will be around 5 rmb or even less in some areas. can you sent me rate of electricity per unit , milk , petrol, cooking gas