BIMARU states fueling India's GDP growth

[pmaitra]

Re: check out how backward states are fueling India's GDP growth.

The rate of increase in GDP is always higher when the starting GDP is low. It follows the same principle as that of heat distribution. One common way to simulate such scenarios is using the Jacobi Iteration. Although this is a very simplistic statement, given all states are putting in equal effort to improve their economies, there will always be more visible improvement in the low GDP states.

The growth of a high GDP state compared to that of a low GDP state is like what torque is to horse-power.

 

[parijataka]

Re: check out how backward states are fueling India's GDP growth.

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GDP growth, economy size and per capita income can be misleading. Per capita income is low in some NE states and relatively low in Kerala yet their standard of living and literacy, hygiene and other things is better than many high income states. UP has a large economy due to its sheer size and yet per capita GDP becomes low due to the population size. Few years ago, I had read a survey in a popular magazine about TV ownership etc. In some N Indian states the number of houses with TV ownership was more than the those with toilets.

OTOH Bihar's spectacular performance is heartening. All power to Nitish ji and Bihar!

 

[Shredder]

Re: check out how backward states are fueling India's GDP growth.

An off-topic Q - India's GDP is ~1.6T due to the Rupee's depreciation right, does this mean there has been no growth? Or if the Rupee were to be pegged with some other currency would the figures have been better? What would our GDP in Rupee then signify?

 

[thakur_ritesh]

Re: check out how backward states are fueling India's GDP growth.

@Aritcle:

Nearly 50% of Indian population boasts of 25% of Indian GDP, there is lot of catching up to do for the poorer states. They have no other choice but to out perform others.

Problem with Bihar's 21.59% is, it will give a kick up by 0.63 points of the national growth, but Maharastra's lower than national average's 14.23% will add 2 points to the national growth. By that account MH's 14.23% growth would equate to 67% growth for BR.

 

[parijataka]

Finding potential and exploiting it is a mark of a good businessman.

Hmmm...spoken like a true Gujju...

 

[ejazr]

Re: check out how backward states are fueling India's GDP growth.

An off-topic Q - India's GDP is ~1.6T due to the Rupee's depreciation right, does this mean there has been no growth? Or if the Rupee were to be pegged with some other currency would the figures have been better? What would our GDP in Rupee then signify?

It makes more sense to measure GDP in national currency if you are comparing performance for India over the years. That is where the govt. growth figures og 6.5% real growth released last month come from.

If you want to compare India's growth with other countries then nominal and PPP measures come into play. Since the major majority of foreign trade takes place in US dollars. That is what would be the best way to compare economies. The second most used currency is the Euro. All other are negligible.

So in a hypothetical scenario where India's GDP is growing but its currency is depreciating at an equal amount in USD; we still have internal growth but our purchasing power in the International market is stagnant.

 

[mki]

Finding potential and exploiting it is a mark of a good businessman.

you have been long away from gujarat and still preserved gujju mentality......... :thumb: