India to be $5.6 trillion economy by 2020

[Jade]

^jade you're mixing real growth numbers with real gdp. real gdp=nominal gdp.
dont mix it with GDP PPP

Nominal GDP (Trillion)
US: 15
China: 5
India: 1.73

No I am not talking about the GDP by PPP meaures. I am only talking about the GDP Nominal and GDP Real.

 

[ChineseTiger1986]

^jade you're mixing real growth numbers with real gdp. real gdp=nominal gdp.
dont mix it with GDP PPP

Nominal GDP (Trillion)
US: 15
China: 5
India: 1.73

US: 14.6
China : 5.9
India: 1.5

I think you are talking about the 2010 GDP, right?

 

[Abhishek_]

Jade, whats India's Real GDP?

 

[ChineseTiger1986]

^whats India's Real GDP?

1.5 trillion by 2010

expected to be over 1.7 trillion by 2011 and 2 trillion by 2012

 

[Abhishek_]

US: 14.6
China : 5.9
India: 1.5

I think you are talking about the 2010 GPD, right?

just using rough figures for explanation purposes. no pedantics please

 

[Jade]

Jade, whats India's Real GDP?

There is no one real GDP. This is the biggest disadvantage of real GDP. It differs based on the base year you take to calculate it. Hence Nominal GDP is standard one and is taken as a meaure of the output of an economy

 

[Abhishek_]

1.5 trillion by 2010

expected to be over 1.7 trillion by 2011 and 2 trillion by 2012

Jade you agree with the figures provided?
I'm curious to see if you have different figures for real and nominal gdp for India

 

[Jade]

Jade you agree with the figures provided?
I'm curious to see if you have different figures for real and nominal gdp for India

Certainly real GDP and nominal GDP are different.

Real GDP is calculated from the Nominal by dividing by the GDP deflator. GDP deflator is dependent on the base year. Different GDP deflators give different real GDPs.

 

[rollindays]

1.5 trillion by 2010

expected to be over 1.7 trillion by 2011 and 2 trillion by 2012

No, that's not the real GDP, that's the nominal GDP. The nominal GDP, the real GDP & the GDP (PPP) are three separate, unrelated things. Real GDP is also referred to as GDP at constant prices, & a base year is selected to get a GDP Deflator (any base year can be selected according to the country).

India's real GDP in 2009 was 37728.44 billions Indian Rupees ($838 billion), with base year 2000.

India GDP at constant prices

 

[JackTR]

US: 14.6
China : 5.9
India: 1.5

I think you are talking about the 2010 GDP, right?

1.5 trillion by 2010

expected to be over 1.7 trillion by 2011 and 2 trillion by 2012

United States 14,582,400
China 5,878,629
India 1,729,010

(in trillions $)

Source: World Bank

http://siteresources.worldbank.org/DATASTATISTICS/Resources/GDP.pdf

 

[ChineseTiger1986]

No, that's not the real GDP, that's the nominal GDP. The nominal GDP, the real GDP & the GDP (PPP) are three separate, unrelated things. Real GDP is also referred to as GDP at constant prices, & a base year is selected to get a GDP Deflator (any base year can be selected according to the country).

India's real GDP in 2009 was 37728.44 billions Indian Rupees ($838 billion), with base year 2000.

India GDP at constant prices

The nominal GDP is most common figure that people use to refer.

 

[rollindays]

United States 14,582,400
China 5,878,629
India 1,729,010

(in trillions $)

Source: World Bank

http://siteresources.worldbank.org/DATASTATISTICS/Resources/GDP.pdf

This is the nominal GDP, not the Real GDP.

 

[ChineseTiger1986]

United States 14,582,400
China 5,878,629
India 1,729,010

(in trillions $)

Source: World Bank

http://siteresources.worldbank.org/DATASTATISTICS/Resources/GDP.pdf

The other two institutions stated 1.5 trillion, and let see what will be the final adjusted result.

 

[Maritimer]

Again, a high inflation rate (done by devaluing the currency purposely, or by printing more money) can show an extremely high nominal GDP growth, but that does not necessarily mean the economy has grown to that extent, or even close to it. Hence, it is a poor indicator for how much the economy has grown, & it is not even a good indicator of the size of the economy. The real GDP growth is the way to go.

You are right sir, the nominal GDP is not good for comparison, but it is the actual size of the economy for a given year and reflects the value of goods and services produced at the current prevailing prices. The real GDP while is a good indicator of growth in the domestic economy compared with prices of a base year, it becomes meaningless for international comparison due to difference in cost of living and fluctuating exchange rates.

Hence, PPP method is used by international organizations for making international comparison of GDP. GDP on PPP basis would be close to the real GDP growth rates since it adjusts for prices and exchange rates.

India nominal GDP: $2 trillion in 2012 is estimated to reach $5 trillion by 2019 at 14% growth
India PPP GDP: $4 trillion in 2010 is estimated to reach $5 trillion by 2013 at 8% growth

You can pick whichever you like.

 

[rollindays]

As flawed as it is, I still think the real GDP is a better parameter than the nominal GDP, for the reasons I have mentioned above. While the real GDP cannot give you the size of the economy period (as it changes with a different base year & hence a different GDP Deflator), in my opinion the nominal GDP does not give accurate results about the size of the economy, because the inflation can be tinkered with. The real GDP growth is certainly a better & more accurate parameter than the nominal GDP growth to determine the growth of an economy, & how it is progressing.