India's growth numbers are a total mystery

[WAR-rior]

Ignore it bro.The OPs nations is running on aid platform given by your nation.
In such circumstances jealousy is a usual phenomena.
On topic:This topic is dicussed several times.All they did was to more inclusive on international standard .Means more datas are included.
But ythat doesnt mean entire Indians become rich.





Ya right . Farmers that facing sudden natural calamities would face a total destruction in their farm and perhaps might took extreme step for that.
But here we have chigh IQ members that connect sudden natural outbrust and farmer suicides with GDP calculation.Terrific.
What an astounding knowledge in economics .

Beacause OP is that frog of the well who have zero knowledge outside her country. She thinks India is a country full of farmers and their suicide means India GDP is doing pathetically bad.

I liked the analogy by da way.

The investors maybe?

I am not a professional economists shamain ji, so I may not be having the same in depth knowledge on these matters like you but there are problems in artificially fudging figures.

In simple layman terms let us discuss here. Suppose India does claim that it has a GDP growth rate of say 8 percent when in reality it is say 5 percent. How is that going to change anything? A developing country like India needs foreign investment for growth. Say you are the head of Microsoft and seeing India's impressive growth rate on face value you invest 100 billion dollars by calculating the estimated returns on the "8 percent growth rate". After the stipulated time frame you find your returns are not what you expected they would be. Since you are a listed company and you have invested shareholder's money as well you are accountable to them. So you house a board to find out what went wrong. The board/commitee/group finds out that India lied about its growth and effectively cheated Microsoft.

What do you think the impact of such a case of deception will be on Indian economy? Who will invest in India in future?

That was an overly simplistic scenario. Companies who will invest make a ground study first. Companies just don't invest on a whim or emotional judgement. Business, my dear shamain ji, is not conducted like that.

That was the case of business. Now the second case would be about loans. Every country including USA takes loans from World Bank, IMF and other such international groups. Now an "internally poor" country like India takes a loan of 100 billion dollars while claiming a growth rate of 8 percent. The bank puts a stipulated interest rate and expects the base amount + interest within a specific time frame. But since India is "internally poor" like you say India cannot honor its word. How do you think the bank will react?

Hint - How does a bank react if you fail to pay your loans in time?

If fudging numbers was so easy shamain ji you would have had every country on the planet claiming 10% growth rate.

And I have not even taken into account the side-effects of such manipulation like inflation. A certain Robert Mugabe of Zimbabwe was artificially hiking up his currency to boost his economy, in the end zimbabwe was literally bankrupt. Economic growth does not mean you go to the mint and order people to print out 1 trillion dollars without the required goods and services delivered. If you do that your economy will crash. US does indulge in fiat currency now and then but that is why today they have a world record debt that is bigger than their GDP.

I am sorry to say shamain ji but your understanding on economics needs improvement.

Thats a understatement. More than economics she needs to remove her glasses of hatred and badwill against India. In simple words she has to give logic a chance in her life.

But this section is only for Pakistan's economy and development. Open thread in relevant section and disappear, and enjoy jheenga lala from distance.

Dude. U asking her to be like KAHONAPYARHAI?