Indian Economy: News and Discussion

karn

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No, GDP useful as well. I put that chart to show how our growth has never been anything special until just recently.
In my head total GDP is a factor of gross national power while per capita is on standard of living . We are not competing with africa on gross national power but trying to shake off this meme of their living standards being equal to ours.
 

Shuturmurg

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I was not expecting this large deviation in PPP WRT africa. Probably cause africa exports so many minerals ... Which are all priced in dollars.
That is part of it. Also, some basic necessities of life in India are domestically produced and not exactly linked to international free market. Those are food and most of the medicines. These 2 are cheaper in India.

Here is map of food security from 2017. Situation is a bit different in Pakistan now :

1680471466224.png
 

Haldilal

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Ya'll Nibbiars

1 . The Finolex Industries Limited has commenced commercial operations of PVC fittings at a new state of art manufacturing facility at Pune Maharashtra. The annual capacity of the said facility is 12,000 MT and the capex towards the same is approximately 100 Crore rupees, which has been funded entirely through internal accruals.

2 . The LG 200 crore rupees announces side-by-side refrigerator manufacturing facility in Pune.

3 . The homiHydrogen, a joint venture between h2e Power Systems Private Limited, BlueBasic AMA Engineering H2energy, Italy and Greenstat Hydrogen India, has begun its journey to a green tomorrow with an intent to set up a 1.5GW per annum manufacturing facility for electrolysers in Pune at 400 crore rupees.

4 . The Infra Market has launched its Grade 1 AAC block plants at Talegaon in Pune and Shirala in Sangli at the cost of 100 crore rupees. The plants will use international manufacturing equipment to produce AAC blocks, which have become one of the industry’s most sustainable and economical building materials.

Infra.Market-AAC-plant-Sangli-2048x819.jpeg
 

vin bharat mahan

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In my head total GDP is a factor of gross national power while per capita is on standard of living . We are not competing with africa on gross national power but trying to shake off this meme of their living standards being equal to ours.
neither GDP nd neither per capita is factor of any nation's standard of living. coz if a country hv many multi billion companies which raise their GDP figure, it doesnt mean their people r getting benefit from them. thats why most countries 10% rich get 70-80% of wealth. but in per capita we just devide GDP to their population nd just think per person is getting those wealth. but in reality only few rich get maximum part of wealth. standard of living should include different factors, like avg salary, inflation, crime rate, HDI index, infrastructure etc etc. than we get some picture of nation living of standard. 🙏
 
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Abbey

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@Haldilal
Samsonite South Asia, the leading global lifestyle bag and largest travel luggage manufacturer, plans to invest ₹160 crore in the second phase of expansion at its Nashik plant as demand for travel luggage bounces back sharply after the Covid-19 pandemic impact.
 

Haldilal

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Ya'll Nibbiars The IG Petrochemicals to invest 270 crore rupees for expansion of its manufacturing facility at Taloja, Navi Mumbai in Maharashtra. The new unit will be spread over 4 acres and will generate 140 jobs.
 

angryIndian

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In my head total GDP is a factor of gross national power while per capita is on standard of living . We are not competing with africa on gross national power but trying to shake off this meme of their living standards being equal to ours.
Overall GDP size and Per capita income are a skin-deep way of looking at the economy.They do not reveal the complete picture.That is why IMF does not categorize countries as developed or developing solely based on GDP and Per capita income alone.

What matters most is individual productivity.

Example Look at Germany, It has a population of 84 million of which 50 million are in the working age group. It has a median age of 46 ie the majority of the population is in their 40s and it has a GDP of 4.5 trillion $.

Compare that to India, which has a population of 1400 million, a working age population of 800 million and a median Age of 27 and yet a GDP of only 3.5 trillion $.

So despite having a 800 million strong workforce,most of whom are in their 20's, yet our economic output is much lower than a country with just 80 million people.
 

ezsasa

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Overall GDP size and Per capita income are a skin-deep way of looking at the economy.They do not reveal the complete picture.That is why IMF does not categorize countries as developed or developing solely based on GDP and Per capita income alone.

What matters most is individual productivity.

Example Look at Germany, It has a population of 84 million of which 50 million are in the working age group. It has a median age of 46 ie the majority of the population is in their 40s and it has a GDP of 4.5 trillion $.

Compare that to India, which has a population of 1400 million, a working age population of 800 million and a median Age of 27 and yet a GDP of only 3.5 trillion $.

So despite having a 800 million strong workforce,most of whom are in their 20's, yet our economic output is much lower than a country with just 80 million people.
if we can add another nuance to this..

in our case some numbers which are based on USD gives a lop sided view. USD value on local currency is primarily influenced by difference between exports and imports, and the demand for USD locally.

but USD is used for aspects of GDP which are not related to import and export, for example internal consumption of goods, especially for goods which we consume often which are not linked to global imports like foods and daily essentials for most of our population, since most of the supply chain is local. our population does not spend in $.

if we take germany, when we say their economy is 4.5 trillion $ or 3.8 trillion euros. for them it is 3.8 lakh crore euros. when we see 3.8 lakh crore number, it doesn't look like a big number per say, since India's PFCE in local currency is 140+ lakh crore ₹. germany's average energy bill per household is 117 euros, average energy bill in India is around 600+ rupees, 6X difference.

this is another way of saying, utility of using either GDP numbers or using $ as reference, does not give a full picture. the world needs a better system when doing comparitive analysis.

that's where PPP comes into picture, but still not a perfect system, since it depends on USD exchange rate again.
 

ezsasa

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if we can add another nuance to this..

in our case some numbers which are based on USD gives a lop sided view. USD value on local currency is primarily influenced by difference between exports and imports, and the demand for USD locally.

but USD is used for aspects of GDP which are not related to import and export, for example internal consumption of goods, especially for goods which we consume often which are not linked to global imports like foods and daily essentials for most of our population, since most of the supply chain is local. our population does not spend in $.

if we take germany, when we say their economy is 4.5 trillion $ or 3.8 trillion euros. for them it is 3.8 lakh crore euros. when we see 3.8 lakh crore number, it doesn't look like a big number per say, since India's PFCE in local currency is 140+ lakh crore ₹. germany's average energy bill per household is 117 euros, average energy bill in India is around 600+ rupees, 6X difference.

this is another way of saying, utility of using either GDP numbers or using $ as reference, does not give a full picture. the world needs a better system when doing comparitive analysis.

that's where PPP comes into picture, but still not a perfect system, since it depends on USD exchange rate again.
expanding on this post..

is there a quantification in existing economic theory, gives the value of import dependency either at a macro level or at a retail price level?

if such a thing exists, as in say for a product priced 100 ₹, and number which says 20 ₹ of that retail price had already gone out of the country as forex. i am assuming, such a number will be useful for further fine tuning ahem import controls.
 

Concard

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If you want more interest rate then make a fixed deposit. No country in the world with established and mature financial system pays you interest for a savings account. In fact, they actually have negative interest rate which basically means you have to pay a monthly fees to the bank for having a savings account. 2.7% for a savings account is a big deal. Ashoka Khemka is an idiot. It goes on to show our bureaucrats are just book worms with no worldly knowledge.

 

Sayman Ame

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If you want more interest rate then make a fixed deposit. No country in the world with established and mature financial system pays you interest for a savings account. In fact, they actually have negative interest rate which basically means you have to pay a monthly fees to the bank for having a savings account. 2.7% for a savings account is a big deal. Ashoka Khemka is an idiot. It goes on to show our bureaucrats are just book worms with no worldly knowledge.

How would banks loan out money if it discourages savings deposit by keeping a negative interest rate?
 

Kumata

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If you want more interest rate then make a fixed deposit. No country in the world with established and mature financial system pays you interest for a savings account. In fact, they actually have negative interest rate which basically means you have to pay a monthly fees to the bank for having a savings account. 2.7% for a savings account is a big deal. Ashoka Khemka is an idiot. It goes on to show our bureaucrats are just book worms with no worldly knowledge.

We cannot compare EU / NA norms with our banking system per se...There is a reason why no body likes Ashok khemka.. He is the product of the very system which he is part of... So calling him book worm et all just shows one's lack of understanding as how banking works in india...

As for Current FM, @Haldilal is best on tai...
 

Concard

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How would banks loan out money if it discourages savings deposit by keeping a negative interest rate?
Their economies are 90% formalized. They want people to go and spend their money instead of having them in the bank. There are other options where there are no charges for having money in the bank. However, interest rates are so little, people don't bother about it. Monthly fee charges still doesn't deter people from banking services. There are lot of banks which don't have any charges and pays them a decent interest rate. But as you know these banks are mostly not big and somewhat risky.
 

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