India is now over 2 trillion dollar economy

Discussion in 'Economy & Infrastructure' started by Screambowl, Jul 5, 2015.

  1. Screambowl

    Screambowl Senior Member Senior Member

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    http://www.thehindu.com/business/Ec...onomy-says-world-bank-data/article7380442.ece

    India’s GDP crossed the $2-trillion mark in 2014, according to data released by the World Bank in Washington late on Wednesday. After taking 60 years to reach the $1-trillion mark, India added the next trillion in just seven years.

    The World Bank data also show that India’s gross national income per person rose to $1,610 (around Rs. 1 lakh) a year during 2014 from $1,560 the previous year. An analysis by The Hindu found that it would take India a little more than a decade to rise from its current ‘lower middle income’ category to the ‘upper middle income’ level.

    India’s growth rate, at 7.4 per cent in 2014, makes it the fastest growing major economy along with China’s, which is a whopping $10.4 trillion in size. The Indian economy, at $2.06 trillion, has almost doubled in size since the financial crisis hit the country in 2008, and has more than quadrupled from the start of this millennium.


    Despite its increase in per capita gross national income (GNI), India has remained in the ‘lower middle income’ category ($1,046-$4,125). Using the World Bank’s data, The Hindu extrapolated from India’s average annual growth rate in per capita GNI over the last decade — of 8.9 per cent — and found that it would become an ‘upper middle income’ country ($4,126-$12,735) in 2026, a little more than a decade from now. This will put it in the category China occupies now.

    China, however, with a per capita GNI of $7,380 and an average annual growth in this parameter of 15.6 per cent, will leave the ‘upper middle income’ category by 2018 to become a ‘high income’ country like the U.S., the U.K., Germany and Japan. It will take India till 2039 to reach that level, at the assumed growth rate.

    The World Bank’s data on gross national income per capita — the total value added by all producers within the country, plus income received from citizens working abroad, divided by the population of the country — show Bangladesh, Kenya, Myanmar, Tajikistan, Mongolia, Paraguay, Argentina, Hungary, the Seychelles and Venezuela have shifted their income categories for the better. For example, Bangladesh, Kenya, Myanmar, and Tajikistan are now ‘middle income’ countries from being ‘low income’ nations.

    Gross national income measures the total value added by all citizens of a country, whether in India or abroad. Gross domestic product (GDP), on the other hand, is the total value of a country’s production and services within its boundary, whether by its nationals or foreigners.

    “While we need to measure development progress in different ways, income-based measures, such as GNI, remain the central yardstick for assessing economic performance,” said Kaushik Basu, World Bank Chief Economist and Senior Vice-President.

    “Our latest data show that in terms of this indicator, the world’s economic geography has changed a lot. In 1994, 56.1 per cent of the world’s population — 3.1 billion people — lived in the 64 low-income countries. In 2014, this was down to 8.5 per cent, or 613 million people living in 31 countries. Over the last one year itself, four nations crossed over to the lower-middle income category,” he said.

    Keywords: India's GDP, India's GDP in 2014, World Bank data, India’s growth rate, $2-trillion economy, India's gross national income, fastest growing economy
     
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  3. salute

    salute Senior Member Senior Member

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    so when is the next trillion ??? :biggrin2: :india:
     
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  4. salute

    salute Senior Member Senior Member

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    Banned US Commercial about the national debt
     
  5. avknight1408

    avknight1408 Regular Member

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    5-6 years hopefully. Lets keep going.
     
  6. jouni

    jouni Senior Member Senior Member

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    Congratulation, great achievement! I remember back in 1875 we had a great party when we first broke the 1600 € per year barrier!
     
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  7. Blackwater

    Blackwater Veteran Member Veteran Member

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    But Still can't buy fighters or build tank or buy rifle lolllllllllllll
     
  8. Sylex21

    Sylex21 Regular Member

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    Impressive 1600 EURO you say? Pretty amazing you had the EURO back in 1875, over a 100 years before its invention! .
     
  9. blueblood

    blueblood Senior Member Senior Member

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    [​IMG]

    ............................................................................................................
     
  10. Hari Sud

    Hari Sud Senior Member Senior Member

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    Bad comparison of Statistics.

    When it comes to India, then Nominal GDP is quoted ($2 Trillion), what when China is to be quoted then PPP GDP is quoted. The latter is a much higher number. Chinese like that advantage. If you quote India PPP GDP, it is $7.4 Trillion. The number for China is $17.4 Trillion (IMF). The Chinese have a disadvantage - they export 30-35% of their GDP. That leaves Goods and Services available to Chinese people at about the same level as for Indian people. Not a great advantage for China.

    There is one difference that the Chinese people are better employed turning out export material than Indians. Also the Chinese government has a lot more cash in their pocket than the Indian government (export earnings).
     
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  11. no smoking

    no smoking Senior Member Senior Member

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    Read it again, the article says $10.4 Trillions for China, which is the nominal GDP.

    It is first time I see such kind of analysis.
    But even with your way, Chinese population is receiving about 6.5T goods and services, which is way beyond above Indian total GDP. How did you make the two on the same level? Percentage?
    And according to your theory, India government should cheer up since your country is "enjoying" a huge trade deficit, which means you are receiving more goods and services from the world than you give to the world.
     
  12. Hari Sud

    Hari Sud Senior Member Senior Member

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    Here is a calculation for you.

    17.5 x .65= 11.375. All PPP based calculations

    India PPP GDP = 7.4. All data in Trillions of dollars.

    Now the difference 11.4 to 7.4 as opposed to 17.5 to 2.0 which most commentators wrongly quote.
     
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  13. no smoking

    no smoking Senior Member Senior Member

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    First of all, even with your calculation, 4 trillions of dollars is really a huge gap, don't you agree?

    Second, there is one flaw in your calculation, it is net trade amount that matters in GDP, not total exportation, so you forget to deduct total importation. The trade surplus of 2014 is around 380b for China, which accounts only 4% of total GDP. Based on your theory, the goods of services Chinese received is 9.98 Trillion nominally. In the term of PPP, it should be 17.5x0.96=16.8T, comparing to India's 7.4T (we just ignore Indian deficit of International trading).
     
  14. DingDong

    DingDong Senior Member Senior Member

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    Do you mean to say that those countries which have trade deficit (like US whose trade deficit runs in several billions) get certain amount deducted from their official GDP? This is a genuine question, I am not an economics guy.
     
  15. amoy

    amoy Senior Member Senior Member

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    What Are the Components of GDP?

    4. Net Exports of Goods and Services
    Imports and exports have opposite effects on GDP. Exports add, while imports subtract, from GDP. The United States imports more than it exports, creating a trade deficit. That's because America still imports a lot of petroleum, despite gains in domestic shale oil production. The U.S. service-based economy is difficult to export. For more, see Import and Export Components.

    In 2014, imports were $2.875 trillion, while exports were $2.335 trillion. As a result, international tradesubtracted $540 billion from GDP. (Source: U.S. Bureau of Economic Analysis, National Income and Product Accounts Tables, Table 1.1.5., Gross Domestic Product Note: The figures reported are real GDP, and are rounded to the nearest billion. For the latest revisions and more detail, please use the BEA tables.) Article updated March 5, 2015.


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    A 2-tril-GDP India can't make submarines or aircrafts etc..

    India is the world’s largest recipient of remittances from its overseas diaspora over US$69 billion in remittances in 2012. Meaning India is very dependent on labor export (white or blue collars), basically "export-oriented" as well while inadequate opportunities created within India itself for the labor / brains.

     
  16. CrYsIs

    CrYsIs Regular Member

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    Nothing to boast about.2 trillion $ for a 1.2 billion population means a per capita of something around 1500 $,meaning India is one of the poorest countries in the world.
     
  17. avknight1408

    avknight1408 Regular Member

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    Ofcourse India is poor. Most of the contribution to the economy is from a few states only. Until States like UP,Bihar develop we will remain poor.
     
  18. Illusive

    Illusive Senior Member Senior Member

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    We have been around this figure for quite a while now.
     
  19. CrYsIs

    CrYsIs Regular Member

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    China's GDP on PPP in 17.6 trillion $.India is 7.3 $

    But this 17.6 and 7.3 is not comparable as GDP on PPP is based on local currency.

    The only figure that can be compared is the nominal value where it's 10.3 and 2 trillion $.
     
  20. sorcerer

    sorcerer Senior Member Senior Member

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  21. CrYsIs

    CrYsIs Regular Member

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    I know you are very double faced.You don't need to use taunting language here.

    Comparing India's situation to that of Finland is not ethical as both are at different stages of development.
     
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