Comparing Ownership of Appliances and Vehicles in India and Pakistan

[RiazHaq]

http://www.riazhaq.com/2017/05/comparing-ownership-of-appliances-and.html

Ownership of durables like computers, home appliances and vehicles is often seen as an important indicator of the size and health of the middle classes in emerging economies. Examples of periodic household surveys used by researchers to measure such data include NSS (National Sampling Survey) in India and PSLM (Pakistan Social and Living Standards Measurement) in Pakistan.


Durables Ownership in India and Pakistan. Source: KSBL


India-Pakistan Comparison:

Dr. Jawaid Abdul Ghani, a professor at Karachi School of Business Leadership, has recently analyzed household surveys in India and Pakistan to discover the following:

1. As of 2015, car ownership in both India and Pakistan is about the same at 6% of households owning a car. However, 41% of Pakistani household own motorcycles, several points higher than India's 32%.

2. 12% of Pakistani households own a computer, slightly higher than 11% in India.

3. Higher percentage of Pakistani households own appliances such as refrigerators (Pakistan 47%, India 33%), washing machines (Pakistan 48%, India 15%) and fans (Pakistan 91%, India 83%).

4. 71% of Indian households own televisions versus 62% in Pakistan.


Durables Ownership Growth in Pakistan. Source: KSBL
Growth over Time:

Dr. Abdul Ghani has also analyzed household data to show that the number of Pakistani households owning washing machines has doubled while car and refrigerator ownership has tripled and motorcycle ownership jumped 6-fold from 2001 to 2014.


Income/Consumption Growth in Pakistan. Source: KSBL

Rapid Income Growth:

Rising ownership of durables in Pakistan has been driven by significant reduction in poverty and growth of household incomes, according to Dr. Abdul Ghani's research. Households with per capita income of under $2 per day per person has plummeted from 57% in 2001 to 7% in 2014. At the same time, households earning $2 to $10 per day per person has soared from 42% of households in 2001 to 87% of households in 2014. Those earning over $10 per day per person has jumped 7-fold from 1% of households in 2001 to 7% of households in 2014.

Pakistani Middle Class:

Only 5% of Pakistanis in $2-$4 per day per person income group have college degrees. But 20% of those in $4-$10 have college degrees, according to the survey results.


Pakistan Middle Class Profile. Source: KSBL

Credit Suisse Income and Wealth Data:

Average Pakistani adult is 20% richer than an average Indian adult and the median wealth of a Pakistani adult is 120% higher than that of his or her Indian counterpart, according to Credit Suisse Wealth Report 2016. Average household wealth in Pakistan has grown 2.1% while it has declined 0.8% in India since the end of last year.

Median wealth data indicates that 50% of Pakistanis own more than $1,180 per adult which is 120% more than the $608 per adult owned by 50% of Indians.

GDP Estimates Using Household Survey Data:

Pakistan's GDP calculated from consumption data in PSLM is significantly higher than the government estimates based on production data. The reverse is true of Indian GDP.

M. Ali Kemal and Ahmed Waqar Qasim, economists at Pakistan Institute of Development Economics (PIDE), explored several published different approaches for sizing Pakistan's underground economy and settled on a combination of PSLM (Pakistan Social and Living Standards Measurement) consumption data and mis-invoicing of exports and imports to conclude that the country's "informal economy was 91% of the formal economy in 2007-08".

Prominent Indian economists Abhijit V Banerjee, Pranab Bardhan, Rohini Somanathan and TN Srinivasan teaching at MIT, UC Berkeley, Yale University and Delhi School of Economics believe that India's GDP estimate based on household survey (National Sampling Service or NSS) data is about half of what the Indian government officially reports as India's GDP.

Who is Dr. Jawaid Abdul Ghani?

The PSLM household data cited in this blog post is taken from a recent presentation made by Dr. Jawaid Abdul Ghani at the Karachi School of Business and Leadership (KSBL) where he teaches. KSBL has been established in collaboration with Cambridge University's Judge Business School. Prior to his current faculty position, Dr. Abdul Ghani taught at MIT's Sloane School of Management and Lahore University of Management Sciences (LUMS). He has a computer science degree from MIT and an MBA from Wharton Business School.

Summary:

Pakistan has managed to significantly reduce poverty and rapidly grow its middle class since 2001 in spite of major political, security and economic challenges. The foundation for the rise of the middle class was laid on President Musharraf's watch by his governments decisions to invest in education and infrastructure projects that led to expansion of both human and financial capital. My hope is that the continued improvement in security and implementation of China-Pakistan Economic Corridor (CPEC) related projects will bring in higher long-term investments and accelerate Pakistan's progress toward a prosperity for all of its citizens.

Related Links:

Haq's Musings

Credit Suisse Wealth Report 2016

Pakistan: A Majority Middle Class Country

Karachi School of Business and Leadership

State Bank: Pakistan's Actual GDP Higher Than Officially Reported

College Enrollment in Pakistan

Musharraf Accelerated Development of Pakistan's Human and Financial Capital

China-Pakistan Economic Corridor


http://www.riazhaq.com/2017/05/comparing-ownership-of-appliances-and.html

 

[Kabira]

What about Bangladesh?

 

[BetterPakistan]

So with all this, Pakistan has lower standards of living then even Nepal, that's shameful. Btw, what's the source of all the data provided.

are you high man?

Pakistan living standards are far far ahead than Nepal and also from India. You should better read the entire article and see the difference between Pakistanis and Indians living standard. A simple thing to tell you which I guess you will understand easily is that car prices is very low in India compare to Pakistan but still car ownership is equal 6% despite the fact that India possess one of the world's cheapest car like Tata Nano priced at nearby $2,000 each while the cheapest car in Pakistan Suzuki Mehran is priced at $7020.

 

[third eye]

Pakistan has managed to significantly reduce poverty and rapidly grow its middle class since 2001 in spite of major political, security and economic challenges.

Thats nice .

Why must all reviews of anything to with anything in Pakistan begin with comparisons with India ?

Couldn't this assessment been arrived at by itself ? The figures should speak for themselves.

 

[swnjo]

Where is the HDI comparison? because that matters most.

 

[GURU DUTT]

are you high man?

Pakistan living standards are far far ahead than Nepal and also from India. You should better read the entire article and see the difference between Pakistanis and Indians living standard. A simple thing to tell you which I guess you will understand easily is that car prices is very low in India compare to Pakistan but still car ownership is equal 6% despite the fact that India possess one of the world's cheapest car like Tata Nano priced at nearby $2,000 each while the cheapest car in Pakistan Suzuki Mehran is priced at $7020.

ok tell me when was the last time you came to india ?

and car and other appliences prices are low in india cause we make them well most of them in india try doing some research for a change

 

[AyanRay]

are you high man?

Pakistan living standards are far far ahead than Nepal and also from India. You should better read the entire article and see the difference between Pakistanis and Indians living standard. A simple thing to tell you which I guess you will understand easily is that car prices is very low in India compare to Pakistan but still car ownership is equal 6% despite the fact that India possess one of the world's cheapest car like Tata Nano priced at nearby $2,000 each while the cheapest car in Pakistan Suzuki Mehran is priced at $7020.

Have you ever heard of something like HDI? Well, it takes 3 indicators to value standard of living Percapita income, Literacy and Life expectancy, and guess what Pakistan has the lowest standard of living by this indicators in South Asia.
Secondly, regarding the article don't really know what the source is. Domestic car sales in India is about 10 times more than that of Pakistan, don't really know from where than 6% figure for both countries came from.

 

[SHAH820]

ok tell me when was the last time you came to india ?

and car and other appliences prices are low in india cause we make them well most of them in india try doing some research for a change

lol this article proved that living standard in pakistan is way higher then india product prices are higher then which is in india but still we have more people have those thing then in india look at happiness index pakistan is doing way better then india pakistan 80th vs 122nd india happiness index is based on economic of a man, govt policies, psychological condition of a person (stress ,depression he is facing due to policies,mismanagement by the government )
where HDI is based on

average pakistani is richer then average indian
https://en.dailypakistan.com.pk/opi...rage-pakistani-20-richer-than-average-indian/
by term of poverty pakistan have less poor people compare to india
https://www.indexmundi.com/g/r.aspx?v=69
https://en.wikipedia.org/wiki/List_of_countries_by_percentage_of_population_living_in_poverty

Have you ever heard of something like HDI? Well, it takes 3 indicators to value standard of living Percapita income, Literacy and Life expectancy, and guess what Pakistan has the lowest standard of living by this indicators in South Asia.
Secondly, regarding the article don't really know what the source is. Domestic car sales in India is about 10 times more than that of Pakistan, don't really know from where than 6% figure for both countries came from.

 

[GURU DUTT]

lol this article proved that living standard in pakistan is way higher then india product prices are higher then which is in india but still we have more people have those thing then in india look at happiness index pakistan is doing way better then india pakistan 80th vs 122nd india happiness index is based on economic of a man, govt policies, psychological condition of a person (stress ,depression he is facing due to policies,mismanagement by the government )
where HDI is based on
View attachment 395405

average pakistani is richer then average indian
https://en.dailypakistan.com.pk/opi...rage-pakistani-20-richer-than-average-indian/
by term of poverty pakistan have less poor people compare to india
https://www.indexmundi.com/g/r.aspx?v=69
https://en.wikipedia.org/wiki/List_of_countries_by_percentage_of_population_living_in_poverty

leave everyhing aside and just take into account your loan versus payment issues right now and what is your current exports and what is your current imports and what is your current remmitences and what is your current FDI inflow figure now compare it with last 5 years and then calculate it with growing inlfation and then also consider international crude prices and ammount of loans you have to pay and wherre do you stand with regards to GDP vs Loans ratio and what is the current issue of power supply and employement in your nation calculate them all and then tell it to yourself where is your nation headed towards ?

 

[SHAH820]

leave everyhing aside and just take into account your loan versus payment issues right now and what is your current exports and what is your current imports and what is your current remmitences and what is your current FDI inflow figure now compare it with last 5 years and then calculate it with growing inlfation and then also consider international crude prices and ammount of loans you have to pay and wherre do you stand with regards to GDP vs Loans ratio and what is the current issue of power supply and employement in your nation calculate them all and then tell it to yourself where is your nation headed towards ?

also calculate US, india loan and etc etc etc then count separatist movement in india
now compare major projects which are in progress to solve those issues
now calculate resources ,country size and population
now calculate its needs then you will find you are no better then us

 

[GURU DUTT]

also calculate US, india loan and etc etc etc then count separatist movement in india
now compare major projects which are in progress to solve those issues
now calculate resources ,country size and population
now calculate its needs then you will find you are no better then us

well if US gives loans to us we give it back to US with interests and they make money out of it and then give us more loansa and thats the main principal on which all banks works you should have known this fact

as for major project well what do you know about mjor projects in india and ammount of money US , Japan , GCC states , WB , IMF and indian industry and government and private citezens have invested in them through provate bonds ?

well do you know the size of japan and its population and what it was when pakistan got independence and what it is now and same for sinagapore or malasia or even indonasia ?

so dear isntead of making everything indo -pak war and making fun of inai in everything and playing a victim card for every thing while trying to denay all your past and present corruption and incomptence and wrong fixations and attutudes one should first aknowledge his past and present mistakes and then try ti rectufy them and then make a new radical plan to make a better future instead fo blaming others for your own misfortune ... think positive

 

[SHAH820]

well if US gives loans to us we give it back to US with interests and they make money out of it and then give us more loansa and thats the main principal on which all banks works you should have known this fact

as for major project well what do you know about mjor projects in india and ammount of money US , Japan , GCC states , WB , IMF and indian industry and government and private citezens have invested in them through provate bonds ?

well do you know the size of japan and its population and what it was when pakistan got independence and what it is now and same for sinagapore or malasia or even indonasia ?

so dear isntead of making everything indo -pak war and making fun of inai in everything and playing a victim card for every thing while trying to denay all your past and present corruption and incomptence and wrong fixations and attutudes one should first aknowledge his past and present mistakes and then try ti rectufy them and then make a new radical plan to make a better future instead fo blaming others for your own misfortune ... think positive

lol i said look at US debt not loan india took from US man
look at debt of japan

and for pakistan's loan 61% india 64% so.
pakistan have taken those loan to complete major project with in few years which will boost our economy later and to end energy crisis and dont say india is doing better in energy crisis you are same as us
and to boost industrialization and to open new trade route under CPEC and OBOR

india have bigger economy but also have more needs and large amount of people to feed as compare to pakistan but when you compare living standard and earning which all this article and thread is about you can see average pakistani earn more then average indian (go to my first post and see wikipedia link) and for corruption both country let see
https://www.forbes.com/sites/tanvigupta/2017/03/13/asias-five-most-corrupt-countries/#59a329726a98
https://www.forbes.com/sites/suparn...untry-while-japan-comes-in-last/#46631afc1201
http://www.indiatimes.com/news/indi...e-says-transparency-international-272923.html
so please

 

[RiazHaq]

The hidden truth behind India’s low refrigerator ownership
http://blogs.economictimes.indiatim...uth-behind-indias-low-refrigerator-ownership/

Nearly 90% families in China today have a refrigerator. What about India?
The 2016 ICE 360° survey showed that a little less than 30% of Indian families have a refrigerator. At first glance, we may conclude that a fridge is still an aspirational product that doesn’t fit into the majority of Indian families’ budgets. That reasoning however, does not hold up.
The same survey showed that even in the top 20% of the richest Indian families, only six out of 10 families have a fridge. This suggests that constraints other than affordability are at work here that influence households’ decision to buy a refrigerator.
While a threshold level of income is a necessary condition for the purchase of a refrigerator, it is not the sufficient condition.
The 2011 census shows that nearly twice the number of households in rural India own a two-wheeler, which costs much more than a fridge.
This kind of hierarchical pattern in the ownership of a two-wheeler and a fridge in India is unlike in any other major economy.
So Women can Chill
In a March 2017 paper in the Journal of Quantitative Economics (From Income to Household Welfare: Lessons from Refrigerator Ownership in India, by Sowmya Dhanaraj, Vidya Mahambare and Poonam Munjal), this apparent puzzle is explored.
Following a robust statistical methodology and controlling for the impact of a number of other determinants such as regional influences, two factors stood out. One, a refrigerator is unique among all energy-using consumer durables.
Unlike the television or air-conditioner, the decision to purchase a fridge depends not only on the access but also reliability and duration of residential power.
Unlike a TV, a fridge is of little use unless uninterrupted power supply is guaranteed. Nearly 43% of rural households and 13% of urban households in India either do not have access to electricity, or receive electricity for less than eight hours. This makes it a major constraint to buy a durable such as a refrigerator. In fact, only around half of India’s population receives residential power for more than 16 hours a day.
Two, unlike a TV, which is a leisure good, a refrigerator disproportionately benefits women in the family.
As a result, a decision to purchase a consumer durable is also driven by their bargaining and decision-making power within a family. And what would tilt the intra-household bargaining power in favour of women? It is largely the function of the education level of women.

 

[RiazHaq]

In India, washing machines top computers in popularity
A majority of Indian households own a TV while 29% own a refrigerator, according to the ICE 360° survey

http://www.livemint.com/Specials/bh...ing-machines-top-computers-in-popularity.html

Fresh data from a large-scale nationally representative survey conducted this year (2016) shows that the washing machine has become a more popular household asset than the computer in India. The ‘Household Survey on India’s Citizen Environment & Consumer Economy’ (ICE 360° survey) shows that 11% households own a washing machine while only 6% own a computer or a laptop. The survey covering 61,000 households is among the largest consumer economy surveys in the country.

The survey shows a drop in the proportion of computer-owning households compared to the 2011 census, when nearly 10% households reported having either a computer or a laptop (the census did not report data on washing machines). The ICE 360° survey also shows that 10% households reported having an Internet connection, 1% lower than the proportion of households with a washing machine. But the proportion of households where at least one household member reported accessing the Internet (including those who accessed the Internet at work) is significantly higher at 22%.


The survey also shows that a large majority of Indian households owns a TV today. The 2011 census had showed that 47% households have a TV set. That proportion has increased to 65%, according to the ICE 360° survey. As TV becomes a mass market product, the refrigerator may be turning into the kind of aspirational product that the TV once used to be. A majority of the top quintile owns a refrigerator. A majority of the salaried class also owns a refrigerator. Nationally, 29% households own a refrigerator.

 

[Zen0]

Here is a UNBIASED report ,from pew research.

car ownership

Pakistan : 3%
India : 6%

Bike ownership

Pakistan : 43%
India : 47%

And the next tier of motorcycle owners are all in Asia: China at 60%, India at 47% and Pakistan at 43%.

http://www.pewresearch.org/fact-tank/2015/04/16/car-bike-or-motorcycle-depends-on-where-you-live/


There i single handedly debunked the ridiculously propaganda biased riashaq again.

Complete BS.
In 2015, number of cars sold in India: 2,034,162
Number of cars sold in Pakistan: 190,000
Thus ratio is over 10:1; now give that the population ratio is 6.8:1, cars sales per capita is much higher.

Same is the story with bikes, bike sale ratio is 8.34:1 which means per capita bike sales are higher in India.

Its from riashaq its the definition of trash media.