No, GDP useful as well. I put that chart to show how our growth has never been anything special until just recently.So less than us .. A direct comparison of per capita is more useful.
No, GDP useful as well. I put that chart to show how our growth has never been anything special until just recently.So less than us .. A direct comparison of per capita is more useful.
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.No, GDP useful as well. I put that chart to show how our growth has never been anything special until just recently.
per capita nominal :Eh .. What's the percapita of this. Cause Africas population is quite low compare to ours.
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.I was not expecting this large deviation in PPP WRT africa. Probably cause africa exports so many minerals ... Which are all priced in dollars.
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.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.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.
if we can add another nuance to this..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.
expanding on this post..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.
The Bank deposits of house holding savings are down from 7 percent to 3 percent. Also the RBI and the government has been very prudent and hence we have not faced the global problems ever.
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?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...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.
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.How would banks loan out money if it discourages savings deposit by keeping a negative interest rate?