Indians are born optimists, Chinese are born pessimists.
That's the difference. That is why India and China are in totally different leagues today.
My wish: Indians keep their optimism while Chinese stay pessimists.
you seem to be chinese, right? lets see who stands where, shall we?!
china started the economic liberalization in 1979
india started the economic liberalization in 1991
differentiating factor 12 years, which means practically if not more, china should be at least 12years ahead of india, right? let us see where the things really stand at.
china's nominal gdp is at 6t usd
india's nominal gdp is at 1.729t usd
differentiating factor - 3.5times is the chinese gdp to india's.
china's ppp gdp is at 10t usd
india's ppp gpd is at 4.450t isd
differentiating factor - 2.27times id the chinese gdp to india's
important factors to consider:
- india does not calculate the whole economy but it is assumed india just calculates a 50% of the actual and another 50% goes unaccounted. which means another 1.729t usd each year doesnt get calculated purely because the government doesnt want to bring that into the tax net. let us say this is an exaggerated claim, the most pessimist estimate is 66% of the total gets calculated, which means if not more a near 800b usd each year gets produced and just by correcting the accounting methods this will be absorbed in the system. this is expected to happen soon, so dont be surprised if tomorrow india's nominal/ppp gdp all of sudden increases by at least a 50%.
- in india large sums end as a part of parallel economy. the active parallel economy in india is at least at 50% (the minimum possible take) of the present economy, where you are talking about a near 900-1,000b usd in parallel economy of what is also termed as black economy. the good thing about is the multiplier effect keeps happening on this, so if one day they bring it in this would become a part of the indian economy.
- there are huge sums of money stacked in the swiss banks by india all made through illegal means, an amount which is quite literally sustaining those swiss banks, some estimates put the figure in trillions of dollars, i wont put a figure because i am not sure about it.
- indians have a charm for gold, a near 800-900b usd has been invested in gold jewellery, and this part of the money never comes out, but stays in the closet, that said, just by investing in gold people are getting rich because the prices are rising or one could also say the money is getting cheep.
- recently there was this temple where gold worth 22(+)b usd was found and it is believed there are many such treasures in india, i wont put a figure because i would be as clueless as any.
there are two factors that i can certainly account for
the accounting miscalculation and the parallel economy, which together account for a bare minimum of another 1.729t usd, if not more, which if added puts the present indian economy at 3.45t usd,
which means even today practically china's nominal gdp is just 70% more than india's and ppp gdp, which is what really matters is merely 13% more than india's. get the figures?
let us say we dont do that, this decade indian economy is supposed to multiply by 4times, which means by year 2020:
india's nominal gdp would be more or less where chain's nominal gdp is today in 2010, and the real thing that matters, the ppp gdp, india would have surpassed china by quite a margin to where china is today.
figure it out, if you can. is india even 12years behind china? or is it lot-lot less, in fact a couple of years.
now you get why indians can be optimist ................ the day india gets all that unaccounted money in the system, india would be at a point of nearly surpassing china's gdp, some food for thought. you live in an illusion buitl around you, if you believe china is leagues ahead than india in gdp terms, and we did all this without being the factory of the world which is where the US hugely supported china, and india is slowly inching towards that as well ......