Indian Economy: News and Discussion

[ezsasa]

Yes. even so called middle class in india is poor compared to the middle class of rest of the world.

You have a academic paper to back this statement?

 

[Edinburgh]

Seeing this, the developing countries are still very weak. Fortunately, China and India are relatively large in scale, otherwise developing countries will be harvested more easy by developed countries.

 

[t 90s]

You have a academic paper to back this statement?

https://amp.scroll.in/article/74001...re-middle-class-and-almost-no-one-actually-is

 

[ezsasa]

https://amp.scroll.in/article/74001...re-middle-class-and-almost-no-one-actually-is

asked for a academic paper mate, not commie propaganda outfit.

 

[Mantospace]

View attachment 95640
Seeing this, the developing countries are still very weak. Fortunately, China and India are relatively large in scale, otherwise developing countries will be harvested more easy by developed countries.

So wat the india current gdp ??

 

[Ajax01]

Some people say that GDP is underestimated, some people say that GDP is overestimated.Overestimation is mainly due to the change of GDP calculation method in 2015.

Is India exaggerating its economic growth?

The country's former chief economic adviser has said India's GDP is being overstated.

www.bbc.com

In the end, it will become more and more accurate with time.

Other major reasons for suspicion are
1.The proportion of fiscal revenue to GDP is too low，Doubt real GDP is not that high
2.Monetary growth M2 and inflation
Monetary growth ∽ economic growth + inflation rate. Over the past ten years, India's monetary growth has been similar to China's as long as the numerical rate of economic growth, but China's inflation rate is only 2%, while India's average is 6% -7%.It shows that economic growth has not been able to absorb the growth of money, and the surplus is reflected in prices.

3.The level of credit, generally speaking,Economic Growth is high, and the private sector is willing to borrow to expand production, but credit growth in India is lower than economic growth.

These are just some of the points I've seen，Only in terms of general economic laws.

Its more nuanced than that.
1.Revenue is lower due to various sops,tax evasion and bureaucratic malpractice. As tax net is getting digitized it will and is improving.
2. Inflation is also an issue of demand supply mismatch. But the inflation targetting system brought in by the Govt kept inflation betweeb 2% to 6% mostly. Infact it even fell below 2% for some time. There was real fear of underinflation.
3.This is a very india specific problem. Pvt Sector isn't willing to borrow from banks precisely because it is hard to and there is a risk of them getting under increased scrutiny due to some high profile NPA cases. Govt also kept credit growth tight for some time to fix the system that led to so many NPAs. The Corporates often find other ways of raising funds.

 

[sauntheninja]

So wat the india current gdp ??

2.7 trillion dollars

 

[doreamon]

You don't buy oil from abroad in PPP you use nominal dollar, etc. Nor do you buy other electronic , manufacturing goods in PPP. PPP is good if you produce everything on your own, Which you don't.

PPP matters .. A decent meal in USA costs rs 500 .. Here people spend rs40 . U can get biriyani for rs80 ... A umbrella costs rs900 .. here u ll get it on rs 120 . And the good thing is we dnt need to spend more on electronics because china gives us in very low price

 

[sauntheninja]

PPP matters .. A decent meal in USA costs rs 500 .. Here people spend rs40 . U can get biriyani for rs80 ... A umbrella costs rs900 .. here u ll get it on rs 120 . And the good thing is we dnt need to spend more on electronics because china gives us in very low price

PPP would matter if we could produce everything in our country which we can't

 

[t 90s]

PPP matters .. A decent meal in USA costs rs 500 .. Here people spend rs40 . U can get biriyani for rs80 ... A umbrella costs rs900 .. here u ll get it on rs 120 . And the good thing is we dnt need to spend more on electronics because china gives us in very low price

PPP is basically a big Bull S**t. If you have 10 lakh salary{ ( 14000 USD ) upper middle class} & you are top 1% of indian pop you still poor by world standard. an indian will buy I-Phone at same rate as a low wage earner in west, so a car etc. as for food india food intake in india is basically chana daal . Indian economy is basically same old British system, import goods export wealth.White sahib have been replaced by brown sahibs.

 

[FalconSlayers]

 

[HariPrasad-1]

Forex reserves are largely a policy intervention. In old days, much of the forex was used to contain forex fluctuations.

RBI can use Forex reserves to curb volatility: Raghuram Rajan

Re slumped to as low as 66.49 per dollar on Monday, its lowest since September 2013, as Asian markets reeled under fears of a China-led global economic slowdown.

m.economictimes.com

there was a time when Raghu ram Rajan as RBI chief thought India won’t need forex reserves more than 400 billion $.

Forex fluctuations used to happen because of weak economic fundamentals like inflation, FDI.


So modi govt handed over inflation control responsibility to RBI.

and on the govt side, CM’s like Fadnavis cracked down on potato, onion, tomatoes, sugar cane mafia in MH, who were hoarding and effecting national prices there by impacting inflation.

central govt maintained domestic fuel prices at constant prices, inspite of low global prices for a few years, to control the inflation fluctuations. they used that money for building infrastructure, instead of wasting it on controlling inflation.

Part of the same strategy is building agri cold chains & food parks, to control food inflation.

Rajan had a split loyalty like Aravind subramamaium. Soon after his tanure over, he went back to US.

 

[ladder]

What's about , is it for made in india or for our mcf wtc only

It is an EoI for development to both Indian and Foreign firms.

 

[t 90s]

Aur kuch behenchod?

Gangadhar hi shaktimaan hai

 

[doreamon]

PPP would matter if we could produce everything in our country which we can't

Not everything but most of the things required for living a life is there .. there is a growing medical tourism in india from uk and usa .. They come to best hospital in india get their surgery done 5 times less amount including travelling expenses .. USA private universities school edcation as well is 10 times more than that of us ... U can get a decent fish meal in kolkata under rs100 but u ll have to pay rs 300 in usa for a decent burger with fried aloo .. also 200 extra for salad .. Same applies for travelling expenses .. Here is whr importance of ppp comes in . U must have relatives in usa .. ask them abt their expenses . If u think iphone and imported cars is essential for living thats another matter ..

Here is a article on wht i am saying

What is the Cost of Living in India Versus the USA? - Chai Nomad

Disclosure: Some of the links below are affiliate links, meaning, at no additional cost to you I will earn a commission if you click through and purchase. “You’ll live like

chainomad.com

 

[IndianSpiderman]

Gangadhar hi shaktimaan hai

Yeah, you're really smart with your comebacks, mate. There's absolutely no difference between independent India and a colonized one, which stagnated for 130 years and had millions of starvation deaths in the space of a couple of years. Really insightful indeed.

 

[Crazywithmath]

PPP is basically a big Bull S**t. If you have 10 lakh salary{ ( 14000 USD ) upper middle class} & you are top 1% of indian pop you still poor by world standard. an indian will buy I-Phone at same rate as a low wage earner in west, so a car etc. as for food india food intake in india is basically chana daal . Indian economy is basically same old British system, import goods export wealth.White sahib have been replaced by brown sahibs.

Nominal and PPP both are important and that brown sahib or whatever is nonsense.
Anyways, you still haven't provided any credible sources of your claim that "hundreds of millions of Indians have entered absolute poverty".

 

[sauntheninja]

Nominal and PPP both are important and that brown sahib or whatever is nonsense.
Anyways, you still haven't provided any credible sources of your claim that "hundreds of millions of Indians have entered absolute poverty".

In the pandemic, India’s middle class shrinks and poverty spreads while China sees smaller changes

The course of the pandemic in India and China will have a substantial effect on changes in the distribution of income at the global level.

www.pewresearch.org

Probably this article

 

[Crazywithmath]

In the pandemic, India’s middle class shrinks and poverty spreads while China sees smaller changes

The course of the pandemic in India and China will have a substantial effect on changes in the distribution of income at the global level.

www.pewresearch.org

Probably this article

Nonsense. I asked for a credible source and this was his source?

 

[sauntheninja]

Nonsense

This is under the how we did it section

The COVID-19 pandemic has created an economic crisis, shuttering businesses and cutting jobs around the world. This analysis looks at how the downturn has affected the standard of living in India and China, the two most populous countries in the world.
The focus is on the distribution of people across five income tiers in 2020: poor, low income, middle income, upper-middle income and high income. See the methodology and an earlier Pew Research Center report for more on the definition and meaning of these tiers in a global context.
The key data source for the analysis is the World Bank’s PovcalNet database, which provides access to household survey data on either income or consumption for more than 160 countries. The latest year for which survey data on the numbers of people in each income tier are available is 2011 for India and 2016 for China. These benchmark estimates are extrapolated to 2020 using World Bank estimates of output growth through 2020. One projection is based on the World Bank’s January 2020 forecasts of economic growth in 2020, and the other is based on its January 2021 estimates of growth in 2020. The difference between these two measures is used to represent the effect of the pandemic on the income distribution in each country.