Indian Economy

As we had often come back to discussing economic benefits/impact of sports I thought it was about time for an economic discussion forum.
User avatar
kujo
Authors
Authors
Posts: 3007
Joined: Fri Jun 18, 2004 11:26 pm

Re: Indian Economy

Post by kujo » Mon Apr 01, 2019 9:30 pm

PKBasu wrote:
Wed Sep 28, 2005 6:02 am
puneets wrote:
PKBasu wrote:Gross National Product = Gross Domestic Product + Net Factor Income from abroad
Shouldn't we subtract the money that intl. firms make in our county ?

Edit- maybe that's what u mean by 'Net'.
Factor income from abroad can be wages, rents, interest and investment-income earned (by Indians) abroad and remitted home. To get the net figure, from this one subtracts wages, rents, interest and investment-income earned by foreigners in India and remitted abroad.
This post is the earliest reference to GDP in SI forum. I found the below definition more clear / easy to understand... :)

C is actually consumer spending,
I is investments done by businesses (and people) in machines, buildings etc.
G is govt spending on healthcare, education, infrastructure, military etc.
NX is (Exports value - Imports value) of goods and services.
Attachments
gdp1.png
gdp1.png (174.38 KiB) Viewed 322 times



User avatar
kujo
Authors
Authors
Posts: 3007
Joined: Fri Jun 18, 2004 11:26 pm

Re: Indian Economy

Post by kujo » Mon Apr 01, 2019 9:36 pm

This graph shows the GDP growth rate of two countries in the past 45 years. You see some big gaps now and then, but mostly they run in parallel with China having a consistently higher GDP growth rate than India. But this chart is not as impacting to view as the next one....
Attachments
gdp4.png
gdp4.png (54.67 KiB) Viewed 322 times



User avatar
kujo
Authors
Authors
Posts: 3007
Joined: Fri Jun 18, 2004 11:26 pm

Re: Indian Economy

Post by kujo » Mon Apr 01, 2019 9:49 pm

Here you can see the impact of those GDP growth rates on both countries' economies. Before 1980, they both had the same size of economy. But since the early 1980s, China started getting a leg up, and never relented in its pursuit of economic growth - year over year.

Few things to keep in mind:

1. Often times the government policies are a hindrance to economic growth - especially true in poorer / underdeveloped nations. If they (bad policies) get out of the way, automatically a nations economy grows at a fast clip to catch-up with it's natural position / size.

2. The benefit of compounding growth. A sustained 8% growth year over year in GDP - will double your economy in 9 years or less. Between 2001 and 2007, China doubled its GDP with a sustained 10% plus growth rate.

3. What happened in the early 1980s in China, while India was still happily celebrating its' coming out party with an Asiad games in Delhi? :)
Attachments
gdp3.png
gdp3.png (35.62 KiB) Viewed 320 times



sanjay5goel
Member
Member
Posts: 472
Joined: Wed Mar 02, 2005 9:56 pm
Please enter the middle number: 1
Location: Bedford, TX US

Re: Indian Economy

Post by sanjay5goel » Tue Apr 02, 2019 1:57 am

In the long term in terms of civilizations (which is what really matters), all this economic growth blah blah is simply hogwash...

check out

Hare Krishna!



User avatar
kujo
Authors
Authors
Posts: 3007
Joined: Fri Jun 18, 2004 11:26 pm

Re: Indian Economy

Post by kujo » Tue Apr 02, 2019 10:57 pm

Not really hogwash. A nation's economic growth (or the lack of it) affects people in tremendous ways.

A relevant example is the eradication of "extreme poverty" in China in these past few years. While India continues to have that!!

What is extreme poverty? - If a household lives on less than Rs.34 per day, that is considered extreme. Both countries still have regular poverty, but the extreme has been eliminated in one.



User avatar
arjun2761
Member
Member
Posts: 5661
Joined: Sun Apr 03, 2005 2:26 pm
Please enter the middle number: 1
Location: US

Re: Indian Economy

Post by arjun2761 » Wed Apr 03, 2019 8:26 pm

Fully agree! Economic growth makes a big difference to the lives of many.

While still very low, the standard of living of most Indians is quite a bit better than it was 30-40 years ago. Hopefully, the gap between India and China will narrow further given the higher growth rate in India now and the fact that our population is younger....



sanjay5goel
Member
Member
Posts: 472
Joined: Wed Mar 02, 2005 9:56 pm
Please enter the middle number: 1
Location: Bedford, TX US

Re: Indian Economy

Post by sanjay5goel » Wed Apr 03, 2019 8:48 pm

What happened to the YouTube video link I had posted 2 posts above. Can't see it now 😖



Post Reply