India to topple Japan as world's 3rd-largest economy

Discussion in 'Economy & Infrastructure' started by LETHALFORCE, Sep 20, 2011.

  1. LETHALFORCE

    LETHALFORCE Moderator Moderator

    Joined:
    Feb 16, 2009
    Messages:
    20,536
    Likes Received:
    6,538
    India to topple Japan as world's 3rd-largest economy - The Economic Times

    NEW DELHI: India might become the world's third largest economy in 2011 by overtaking Japan in terms of gross domestic product (GDP) measured according to the domestic purchasing power of the rupee, otherwise called purchasing power parity.

    India is now the fourth-largest economy behind the US, China and Japan. Numbers from 2010 show that the Japanese economy was worth $4.31 trillion, with India snapping at its heels at $4.06 trillion. But after March's devastating tsunami and earthquakes, Japan's economy is widely expected to contract while India's economy will grow between 7% and 8% this fiscal. "India should overtake Japan in 2011 to become the third-largest economy in the world at purchasing power parity," said Sunil Sinha, head of research and senior economist at Crisil.

    IMF forecasts show India and Japan neck-to-neck in 2011, but the disaster in Japan has brought the event forward. "Were it not for the earthquake and tsunami, India would have overtaken Japan in around 2013-14," said Sinha.

    The purchasing power parity (PPP) method measures the size of an economy by levelling price differences between countries that occur in the process of conversion to a single currency.


    Under this method, a dollar should be able to buy the same amount of goods anywhere in the world and exchange rates should adjust accordingly.

    The Economist's Big Mac Index, which takes the price of a Big Mac burger across 120 countries to calculate the 'real' price of its currency, is a crude way to measure PPP. India was included in the index recently. It showed that the Indian rupee was undervalued by 53% against the US dollar in August.

    Earlier, a report by consultant PwC suggested that the Indian economy would surpass the Japanese economy in 2012. The IMF expects the Japanese economy to contract 0.7% this year while India is expected to grow 8.2%. A bigger economy could also give the government additional clout and bargaining power overseas.

    "A bigger economy would also mean more clout in international forums," said Madan Sabnavis, chief economist at ratings firm Care.

    India, once a recipient nation for foreign aid, could now come together with Brazil, Russia and China to form a fund to stabilise tottering economies in the Eurozone.

    Globally, companies have their eyes set on India as a rapidly growing nation that is full of opportunities. The sheer scale of development needed could drive growth for many years. "India has the advantage of size. The scope of growth and excess capacity present in terms of resources would drive growth in the future," said Sabnavis.

    Economists say that while the change in the rank of a country does not mean much, it points to broad trends in the growth trajectories of nations.

    "It's a long process of development, but this shows that the markets are expanding and there is robust demand within the economy," said Siddhartha Sanyal, chief economist, Barclays Capital.

    According to the University of Pennsylvania PPP world tables, India has already moved ahead of Japan in 2010. The size of the Indian economy is expected to reach almost $5 trillion by the end of 2011.
     
    Sridhar and ejazr like this.
  2.  
  3. Yusuf

    Yusuf GUARDIAN Administrator

    Joined:
    Mar 24, 2009
    Messages:
    24,273
    Likes Received:
    11,280
    Location:
    BANGalore
    I would be happy the day we overtake Japan in nominal GDP.
     
    Galaxy and Adux like this.
  4. kickok1975

    kickok1975 Stars and Ambassadors Stars and Ambassadors

    Joined:
    Aug 9, 2009
    Messages:
    1,538
    Likes Received:
    350
    Congratulation, it's about time, India.

    But watch out, you are gradually in US radar screen now. They will first promote you to the level you never have been, stir up your relationship with China and mess up both of you.
     
    amitkriit likes this.
  5. Yusuf

    Yusuf GUARDIAN Administrator

    Joined:
    Mar 24, 2009
    Messages:
    24,273
    Likes Received:
    11,280
    Location:
    BANGalore
    Common interest and shared values will help. The US didn't do anything when Japan climbed up and Germany as well. If the friendship is strong based on common grounds, mornings going to happen.
     
  6. pmaitra

    pmaitra Moderator Moderator

    Joined:
    Mar 10, 2009
    Messages:
    31,640
    Likes Received:
    17,124
    Location:
    EST, USA
    Thank you for cautioning us. While I understand it is in the interests of PRC to inject seeds of distrust between India and USA, we will nonetheless keep your advice in mind. No suggestion is to be ignored.
     
  7. Kunal Biswas

    Kunal Biswas Member of the Year 2011 Moderator

    Joined:
    May 26, 2010
    Messages:
    27,582
    Likes Received:
    28,371
    Location:
    BHARAT, INDIA, HINDUSTHAN
    India have its own priority and moves cautiously, US is known abt its image all over the world..

    On the topic, No matter how good we are becoming but Majority of equipment in Army and basic needs for people are not meet their goal yet..
     
  8. bhramos

    bhramos Elite Member Elite Member

    Joined:
    Mar 21, 2009
    Messages:
    13,206
    Likes Received:
    6,638
    Location:
    Telangana/India/Bharat
    they would not meet any where near the Time...
    even US has unemployment and other needs, so no country can urradicate 100% of its problems...
     
  9. thakur_ritesh

    thakur_ritesh Administrator Administrator

    Joined:
    Feb 19, 2009
    Messages:
    4,434
    Likes Received:
    1,719
    Location:
    Land of the GODS - "Dev Bhomi".
    i see your point and is not ill founded either, but there are still few things that stand out which will see through this relationship if not for more, then certainly for the next one decade for sure, and a lame guess is, add another decade to it. points to ponder upon.

    • china a communist country with global ambitions, territorial claims over a lot of places, taking a shot at the top slot which directly challenges the US will keep them more occupied with you than us.

      if the above holds, india for them will remain of strategic essence, its a case of counter balance.

    • america at least as of date doesnt see india as a direct challenge to their interests, that said, they see us as one in taking away their jobs and there we definitely see them vocal if not offensive but on rest of the issues ironically the interests of the two countries' converge, other than of course iran, burma and green house emissions but those are issues that can be talked out because there is huge scope of give and take as this relationship blossoms.

    • india wont at all be flexing its muscles and be seen as overtly taking on the US, certainly not in an aggressive sense as is seen with china, which means rare if at all media coverage in the media in the US which means the domestic audience back in the US hardly getting polarized about india as is/would happen with china.

    • the most important factor, will the world power equation be the same in another 2 decades? i suspect not and a lot would have by then changed, so the US in that case would feel the need of having india even more on their side, but this one is a case of "if".

    i still see this relationship going unhindered for at least 2 odd decades, that said india is not blindfolded into this relationship as pakistan was with them or as pakistan is with china now.
     
    kickok1975 likes this.
  10. debasree

    debasree Regular Member

    Joined:
    Feb 7, 2011
    Messages:
    811
    Likes Received:
    82
    Location:
    Calcutta, India, India
    before that u and urs evil red bosses will be erased from asia ,as the red dragon is the common enemy of both
     
  11. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

    Joined:
    Dec 17, 2009
    Messages:
    10,397
    Likes Received:
    2,314
    It is a bit premature, Indian nominal GDP is only $1.5 trillion. It is less than a third of Japan's GDP and nearly half of France.
     
  12. The Messiah

    The Messiah Bow Before Me! Elite Member

    Joined:
    Aug 25, 2010
    Messages:
    10,788
    Likes Received:
    4,552
    If your govt hadn't gone out of there way to make us enemies then we would have been quite friendly now.

    Indian hand of friendship has been reached out to china plenty of times and every time chinese have rejected it. Have you heard the story of the boy who cried wolf ?
     
  13. ejazr

    ejazr Stars and Ambassadors Stars and Ambassadors

    Joined:
    Oct 8, 2009
    Messages:
    4,518
    Likes Received:
    1,378
    Location:
    Hyderabad and Sydney
    Actually its around 1.8 trillion and will likely be 2 trillion by the end of this financial year but definitely by 2013 India set to become a $2-trillion economy! - Rediff.com Business
     
  14. warriorextreme

    warriorextreme Senior Member Senior Member

    Joined:
    Sep 29, 2010
    Messages:
    1,369
    Likes Received:
    536
    Location:
    Mumbai
    no pride in gain that comes from other countries loss.
     
  15. LETHALFORCE

    LETHALFORCE Moderator Moderator

    Joined:
    Feb 16, 2009
    Messages:
    20,536
    Likes Received:
    6,538
    Many countries hold the view that their gain comes from others losses and enforce military actions to further that view. India is nowhere near that.
     
  16. warriorextreme

    warriorextreme Senior Member Senior Member

    Joined:
    Sep 29, 2010
    Messages:
    1,369
    Likes Received:
    536
    Location:
    Mumbai
    true..we have very good neighbors that use this policy against us but they never succeed :)
     
  17. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

    Joined:
    Dec 17, 2009
    Messages:
    10,397
    Likes Received:
    2,314
  18. badguy2000

    badguy2000 Respected Member Senior Member

    Joined:
    May 20, 2009
    Messages:
    4,957
    Likes Received:
    613
    obvioulsy ,you didn't take inflation and exchange rate into consideration
     
  19. Yusuf

    Yusuf GUARDIAN Administrator

    Joined:
    Mar 24, 2009
    Messages:
    24,273
    Likes Received:
    11,280
    Location:
    BANGalore
    Wonder you do all that when you Tom Tom about your economy!
     
  20. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

    Joined:
    Dec 17, 2009
    Messages:
    10,397
    Likes Received:
    2,314
    Inflation is calculated into GDP growth. USD and INR exchange rate is only 2% difference from last year. Obviously you don't know jack about economics... leave it to the professionals.
     
  21. sesha_maruthi27

    sesha_maruthi27 Senior Member Senior Member

    Joined:
    Aug 15, 2010
    Messages:
    3,884
    Likes Received:
    1,568
    Location:
    Hyderabad, Andhra Pradesh(INDIA)
    Good to hear this............
     

Share This Page