India's GDP crossed $8 trillion.

[ito]

Report for Selected Countries and Subjects

According to the new figures released by IMF on 6th Oct, India's GDP crossed $8 trillion

 

[SR-91]

It's PPP valuation of country GDP.

2015 GDP numbers are looking good at $2.2 Trillion.

Look at those 2020 figures, GDP will grow by $1.2 trillion dollars to $3.4 trillion dollars, that is huge.

 

[Grevion]

Haven't we already??
Its PPP by the way, We are 2.3 trillion $ in nominal

 

[Nilgiri]

PPP is fine if we are talking about per capita.

But it is not a very good aggregate measure.

 

[ito]

Haven't we already??
Its PPP by the way, We are 2.3 trillion $ in nominal

Nominal is incorrect way of measuring the wealth of a country...purchasing power is the correct way. We don't buy in dollars but with rupees. The problem with PPP is the measurement.

 

[liall]

Nominal is incorrect way of measuring the wealth of a country...purchasing power is the correct way. We don't buy in dollars but with rupees. The problem with PPP is the measurement.

yea but we buy a lot of stuff in $. Oil, energy, machines etc. so nominal is of much importance

 

[RealNapster]

Report for Selected Countries and Subjects

According to the new figures released by IMF on 6th Oct, India's GDP crossed $8 trillion

Congrats India. may you live longer and Prosper.

 

[ito]

PPP is fine if we are talking about per capita.

But it is not a very good aggregate measure.

It is the better way than nominal. Goods are priced in local currency and not in dollars. People wealth and well being depends on how much a person can buy and spend.

yea but we buy a lot of stuff in $. Oil, energy, machines etc. so nominal is of much importance

That is accounted for in purchasing power. India buys oil in dollars (It is here nominal GDP matters), but people buy oil in rupees (it is here GDP-PPP matters)

 

[Chinese-Dragon]

Nominal is incorrect way of measuring the wealth of a country...purchasing power is the correct way. We don't buy in dollars but with rupees. The problem with PPP is the measurement.

If you believe that PPP is the correct way to measure economic power, then do you believe that China is the number 1 economy in the world?

 

[Nilgiri]

It is the better way than nominal. Goods are priced in local currency and not in dollars. People wealth and well being depends on how much a person can buy and spend.

Buddy, I have spent hours arguing the merits of PPP with the Chinese trolls of this forum.

PPP has nothing to do with local currency specifically, the currency can be anything. You can have PPP in rupees, US dollars, Euros ,rubles whatever. PPP just reflects the domestic overall net price level for a basket of goods according to consumption patterns in the country relative to some other chosen country's currency (normally US dollar).

This is fine for per capita use to a large extent....but it is not good for international aggregate measure if the intention is to compare relative to other countries (which inevitably is what international measures do) on the same aggregate (total GDP). GDP per capita PPP is always superior to nominal per capita, but both have limitations depending on context.

But I am nit-picking you a little too much. Your overall sentiment is correct regarding domestic vis a vis global footprint of Indian consumption.

 

[CHN Bamboo]

what?
@Bussard Ramjet
It seems that India's 8 trillions will surpass China's 10 trillions soon.

 

[ito]

If you believe that PPP is the correct way to measure economic power, then do you believe that China is the number 1 economy in the world?

Yes...by the amount of economic activity that happens China is the number one.

 

[Grevion]

Nominal is incorrect way of measuring the wealth of a country...purchasing power is the correct way. We don't buy in dollars but with rupees. The problem with PPP is the measurement.

Yes but most of the foreign trade is done in dollars hence the nominal becomes important.

 

[Kyusuibu Honbu]

Good news!

I hope we achieve this number nominal GDP as well soon

 

[Echo_419]

If you believe that PPP is the correct way to measure economic power, then do you believe that China is the number 1 economy in the world?

Sure,according to PPP you are