India and China - A GDP Comparison

[dy1022]

Talk about physical consumption!

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Maybe he means physical consumption = Bragging and Boasting !!!

Who knows !

 

[GS Zhou]

PPP (Actual physical consumption of goods and services rather than nominal conversion through exchange rate which assumes price levels are the same everywhere in the world and that there is no overvaluing/undervaluing of currencies) is a way more important measure of GDP:

http://data.worldbank.org/indicator/NY.GDP.MKTP.PP.CD?locations=IN-CN-BD-PK

PPP is more like a "number game" to entertain the low-wage country. The magic of PPP only works in very simple business, e.g. hire a maid to clean the house for you, or hair-cutting. However, when coming to industrial area, PPP actually means nothing.

Do you think the PPP magic works when you buy the crude oil from Saudi, or iron ore from Brazil, or construction equipment from Caterpillar, cars from Toyota, telecom equipment from Huawei, smartphones from Xiaomi, fighters from Dassaualt, planes from Boeing, or trains from Hitachi?

 

[AndrewJin]

Maybe he means physical consumption = Bragging and Boasting !!!

Who knows !

They always do that.
No arguments and data to support their claims.
Just randomly type some BS to make themselves feel good.

 

[Nilgiri]

Talk about physical consumption!

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Yah grab a few selective things in response to a macroeconomic statement I made.

Are all grams of vegetable and fruit the same quality of grams?

Is dahl even counted as a vegetable?

These are the kind of questions that seek to be measured by overal GDP on PPP basis since it looks at local basket consumption intakes of goods and services and their price levels....which are not easily quantifiable many times nominally given highly variable consumption patterns across the world.

Your retail e-commerce sales (and I have told you this before) are also very wrong for India currently. This was obviously a projection done quite some years back that you keep spouting. Do you have it saved somewhere as your go-to figure to trumpet as fact? Well its pretty wrong.

 

[AndrewJin]

PPP is more like a "number game" to entertain the low-wage country. The magic of PPP only works in very simple business, e.g. hire a maid to clean the house for you, or hair-cutting. However, when coming to industrial area, PPP actually means nothing.

Do you think the PPP magic works when you buy the crude oil from Saudi, or iron ore from Brazil, or construction equipment from Caterpillar, cars from Toyota, telecom equipment from Huawei, smartphones from Xiaomi, fighters from Dassaualt, planes from Boeing, or trains from Hitachi?

PPP is only reliable on NON-tradable goods and service, like your examples.
In global trade, Tradable good and service are emphasised, such as airplanes, electronics, machinery, oil and gas, etc.

Yah grab a few selective things in response to a macroeconomic statement I made.

Are all grams of vegetable and fruit the same quality of grams?

Is dahl even counted as a vegetable?

These are the kind of questions that seek to be measured by overal GDP on PPP basis since it looks at local basket consumption intakes of goods and services and their price levels....which are not easily quantifiable many times nominally given highly variable consumption patterns across the world.

Your retail e-commerce sales (and I have told you this before) are also very wrong for India currently. This was obviously a projection done quite some years back that you keep spouting. Do you have it saved somewhere as your go-to figure to trumpet as fact? Well its pretty wrong.

Show us the newest number E-commerce pls and agricultural products pls.
Again, better to support your arguments with facts and data.
Otherwise, it is another typical feel-good climax via hollow words and sentences.

 

[Nilgiri]

Do you think the PPP magic works when you buy the crude oil from Saudi, or iron ore from Brazil, or construction equipment from Caterpillar, cars from Toyota, telecom equipment from Huawei, smartphones from Xiaomi, fighters from Dassaualt, planes from Boeing, or trains from Hitachi?

Yes greater international trade exposure is what ultimately pushes greater realisation of PPP into nominal.

That is the fundamental difference between India and China in these two metrics.

You are talking to someone that wrote a thesis paper on the ICP methodology.

However, when coming to industrial area, PPP actually means nothing.

Actually it means a lot in all realms of economics. All physical consumption does. The differential is just not so great given industrial goods tend to make up a greater portion of international trade in general compared to other consumables.

PPP seeks to measure the on the ground physical consumption of goods and services inside a country. There is no question of it meaning "something" or "nothing". It is an estimate just like nominal....and has a stronger utility for cross country comparisons....given its consumption of goods and services that matter, not what a currency may or maynnot be undervalued/overvalued by.

You going to tell me that consumption in Russia suddenly tanked by 5 times in the space of a few months when their currency crashed w.r.t USD?

PPP is only reliable on NON-tradable goods and service, like your examples.
In global trade, Tradable good and service are emphasised, such as airplanes, electronics, machinery, oil and gas, etc.

Its not a question of "reliability".

The price multiplier just comes down significantly when its globally traded given there will be something closer to a global price level for such goods.

 

[AndrewJin]

Yes greater international trade exposure is what ultimately pushes greater realisation of PPP into nominal.

That is the fundamental difference between India and China in these two metrics.

You are talking to someone that wrote a thesis paper on the ICP methodology.



Actually it means a lot in all realms of economics. All physical consumption does. The differential is just not so great given industrial goods tend to make up a greater portion of international trade in general compared to other consumables.

PPP seeks to measure the on the ground physical consumption of goods and services inside a country. There is no question of it meaning "something" or "nothing". It is an estimate just like nominal....and has a stronger utility for cross country comparisons....given its consumption of goods and services that matter, not what a currency may or maynnot be undervalued/overvalued by.

You going to tell me that consumption in Russia suddenly tanked by 5 times in the space of a few months when their currency crashed w.r.t USD?



Its not a question of "reliability".

The price multiplier just comes down significantly when its globally traded given there will be something closer to a global price level for such goods.

Data and evidence pls.
Pls don't type too much hollow paragraphs.

Regards.

 

[Nilgiri]

Show us the newest number E-commerce pls

http://www.medianama.com/2016/06/223-iamai-ecommerce-study/

211,000 crore by this year end is to be about 32 billion USD, up from about 19 billion USD the previous year (2015).

It is in a state of large early growth so such projections are changing a lot:

http://www.economist.com/news/brief...ople-come-online-any-other-country-e-commerce

It will need about 5 years or so to mature (like say China already has) before we can make some decent trends and future estimates.

http://economictimes.indiatimes.com...years-morgan-stanley/articleshow/51031652.cms

Data and evidence pls.
Pls don't type too much hollow paragraphs.

Regards.

What you mean data and evidence? Read up the ICP program, there is your data and evidence.

You want me to spoon feed you every little bit of what PPP is?

 

[grey boy 2]

Data and evidence pls.
Pls don't type too much hollow paragraphs.

Regards.

Bro, i'm afraid you're asking for too much from our dear Indian friends
Indians are extremely good with their mouth only, thats why they're the biggest exporter of "TALKS" in the world for a reason= "thanks to their cheap call centers"

 

[Nilgiri]

As much data and evidence on PPP as anyone could want:

http://siteresources.worldbank.org/ICPEXT/Resources/ICP_2011.html

Now if someone has some targeted specific questions, I will entertain them.

@LA se Karachi @PARIKRAMA @anant_s @proud_indian @itachii @Rain Man you may find this conversation interesting if it takes off...rather than get stuck at the one-sided name calling like it seems to have now

 

[Ram Mahadev]

The figure below shows the GDP of India (in orange) and China (green). China's GDP is roughly $10 trillion and India's is $2 trillion. The first figure in the graph shows the current GDP. But an interesting thing happens if the scale is shifted by 10 years which is shown in the second figure.

Basically, India is at least 10 years behind China.

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http://www.economist.com/news/leade...-real-trouble-will-hit-china-coming-debt-bust... MUST READ ARTİCLE...


Their global lending has put even more burden. On China... As they say Chinese can fake anything from states to toys. For me China is a bubble to burst. May be that's why war will be the final resort to justify their steroid growth

 

[dy1022]

Global Hunger Index: Welcome to India, world's hottest economy where 39% kids are stunted

http://www.firstpost.com/business/g...my-where-39-children-are-stunted-3046864.html

 

[Nilgiri]

@ahojunk

Check out the spam by this guy again.

 

[Gibbs]

China is a bubble though

They have been saying that since the 90's, Unfortunately for the West more specifically the US that bubble seems to be made of titanium

 

[dy1022]

India is a debtor nation, net IIP stood at US$ -353.1 billion at end 2016 Q2.
https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=38199



India lives by hot money and loans !!!