Street/ Deep,

um guys? You are putting up 2 different sets of numbers.

Deep,
Street is using GDP/GNP numbers... they are NOT the only numbers to look at. but they are significant from an economic point of view..... It has nothing to do with growth in individuals or sectors... It is a lump sum of everything....... the fact that india makes it into that list I find encouraging... With a pop of over a billion people it is a good effort!

Street,
Deep is just put out (rightly or wrongly it doesn't matter) about the fact that so many posts on India have been going on lately. Maybe she has a point maybe she doesn't......... it all depends on your individual perspective.

One last comment.

If you don't like the subject....... just ignore the topic....... Why beat yourself up about it?

Replying to [Foow]:Dear Foow, you can be a better Judge.

Anyway, Street & our discussion was started, when I have posted the Economical development in 2006. where we have differences of opinion and instead of replying in the same thread. Street has opened another thread.

This is not the liking or disliking about a subject, it is just a matter of convincing the other person with one's point of view. Street may have taken this a challenge, but I really gaining a lot from this interaction.

Replying to [Foow]:

" ...If you don't like the subject....... just ignore the topic....... Why beat yourself up about it?"

Good name in man and woman, dear my lord,
Is the immediate jewel of their souls:
Who steals my purse steals trash; ’tis something, nothing;
’Twas mine, ’tis his, and has been slave to thousands;
But he that filches from me my good name
Robs me of that which not enriches him
And makes me poor indeed.

"Othello" by Shakespeare (Act III, Scene iii)

Replying to [Deepali]:
Deep.. I am happy your are having a good discussion. I was just thinking as I was reading yours and Streets posts that seemed to be having a circular argument is all..... You run the argument that GDP is not relevent. Street runs the argument that they are....
I run the argument that GDP is a very important INDICATOR... but that it is by no means a number that shoudl be the ONLY indicator you look at........

Oh and just one other point Deep.... you ARE goning to have to get used t hearing about GDP numbers (which DO make inida look not as good i will admit).. Since it is a major indicator quoted in papers probably 1,000 times a day somewhere in the world........ people DO pay a lot of attention to it.......

Persoanlly i think the most important number should be who drinks the most Beer per capita... that is a true measure of a happy country and a prosperous one!

Replying to [Foow]:Drinking beer per person. or Gross drinking power.

Replying to [Deepali]:

Good question Deep.... hhhhmmmm Actually i don't think it would really matter........ Australia would probably be right behind Germany no matter which method you use! (actually we might be first if you ignore "oktoberfest" which I think skews the numbers in Germany's favor!)

Quoting from [Foow]:



Replying to [Deepali]:



Good question Deep.... hhhhmmmm Actually i don't think it would really matter........ Australia would probably be right behind Germany no matter which method you use! (actually we might be first if you ignore "oktoberfest" which I think skews the numbers in Germany's favor!)

No wonder the Aussies are pot bellied as the Deutchs.



You are right though, it is not GDP or per capita that matters, it is to what Deep linked the website about PPP or purchasing Power, somewhat to what we are all talking about, the Household Wealth of the nation, which is naturally the GDP per person. There is no way you can put figures without mention about the pop.



If you were to place India under this figure, she is at $6,513 pn PPP and $1,112 on exchange rate. China appears to be about twice as wealthy as the Indians, with a net worth of $11,267 and PPP of $2,613 using official exchange rate.

Some links to World Wealth websites: Accumulated Foreign Reserves see page 6 of 24

http://www.ecb.int/paym/groups/pdf/FXCG_Accumulation_FX_reserves_20060531.pdf

This is suvey done by University only recently, Dec 15, 2006 started and finalised this month, presented in Power Point.

http://www.wider.unu.edu/research/2006-2007/2006-2007-1/wider-wdhw-launch-5-12-2006/wider-wdhw-powerpoint-presentation.pdf

You will see that India is listed amongst the Low Income Group, not the Mid Income, or the High Income, and I have strong doubt that this will change. As the higher income group will be richer and tend to higher PPP and GDP per capita, and it like spiral.



Someone talked about foreign reserves, and the country that is pulling out their foreign reserves is China. If you were to buy US Dollar Bonds, you will find the money diminishes as the currency exchange rate reduces, this is phenomena of the US Dollar. China is buying gold as their foreign reserves, and the price of this commodity rose over double digits from 2005 May, since China releases the USD peg  to the Yuan. 2007 will see a greater fall of the US Dollar exchange rate, as Iran and all the Islamic countries switch to the Euro for currency reserves.



Later in the year, you may read the words "IN GOLD WE TRUST" on the RMB, whereas the US Dollar read "In God We Trust".



Street Smart

You will see that India is listed amongst the Low Income Group, not the Mid Income, or the High Income, and I have strong doubt that this will change. As the higher income group will be richer and tend to higher PPP and GDP per capita, and it like spiral.Someone talked about foreign reserves, and the country that is pulling out their foreign reserves is China. If you were to buy US Dollar Bonds, you will find the money diminishes as the currency exchange rate reduces, this is phenomena of the US Dollar. China is buying gold as their foreign reserves, and the price of this commodity rose over double digits from 2005 May, since China releases the USD peg  to the Yuan. 2007 will see a greater fall of the US Dollar exchange rate, as Iran and all the Islamic countries switch to the Euro for currency reserves.Later in the year, you may read the words "IN GOLD WE TRUST" on the RMB, whereas the US Dollar read "In God We Trust".Street Smart

Replying to [Street Smart]:Great insight about the topic, I have gone thru the presentation which was compiled on 2006 but data basis was 2000. Any way, It was indeed a good information but it says that US is the No. 1 in Wealth per capita & GPI but won't reflect anywhere that how much contribution is of Indian(s) in there economy. Well! its a well known fact that 75-80% of silicon velly engineers are Indian. So your point is Indian contribution to India GDP is small as they are contributing to US GDP. Whatever may be the reason, India is not being able to keep their talents. But, as far as PPP is concened, I must say that India is consuming giant as stated by Sixer in one of his post. Rather Most of the International Companies are opening up their plant & offices in India. US Firms are doing outsourcing from India as various call centers, BPO and now in R&D field.

Neverthless to mention here that Wall mart & other retail giants are stepping towards India. for Hutch Phone Indian joint venture, Vodafone, AT&T are fighting with each other and Essar is also in the race.

Replying to [All]:



For some reason, these posts turn out to be a discussion between India and China, which country is better and so on …. Sigh!

What’s the use of comparing the two countries? It’s like comparing apples and oranges! Besides having different objectives, both countries have chosen different paths towards growth. Also, both countries are currently works in progress. Therefore, it does not make sense to compare them at this time. Besides, China has had a head start since they began their reforms about 10 years before India.

As I have mentioned before in my posts, one has to scratch the surface to find out the true state of affairs. For instance, figures on GDP and so on have to be taken with a pinch of salt, as the current discussion between Street and Deepali has shown. One can always tweak the data to propogate their point of view. But, the reality may be vastly different.

For instance, in the 1970s the US was technically bankrupt and President Nixon delinked the gold from the USD in one of the most far reaching decisions taken during his administration. Yet, the standard of living in the US at the time was better than that currently in India in spite of the latter’s comfortable financial position and economy. Therefore, my opinion is that although these figures do serve a certain purpose, they are not sacrosanct. Besides, if the human race has figured out everything there is to know in Economics, research would no longer be done in this field. Also, we would all be able to predict the future and become rich overnight!



Regards,