Why has Indonesia developed much faster than India?

[Indos]

Anything wrong?
View attachment 260960

Some data is changed, not really that much though and India manufacturing out put has risen into 325 something in 2014, a good increase actually, just check the current world bank data from that link.

the simple reason is that east asians are smarter than south asians. infact they are second only to ethnic europeans. indians would usually do things weaker than E.Asians.

India is good in service sector.

Well, many Indians has become CEO in many global company, including Google.

One of the reason of why East Asia and South East Asia become much better in term of industrialization is because of Japan factor I guess. Since USA forces Japan to appreciate its currency in 1980's, Japan industry then expands to other Asian countries to make them remain competitive, in which by this move makes the positive effect to overall East and South East Asian industrialization.

 

[ramu]

View attachment 260847

in 1998, India and Indonesia have similar GDP per capita, but after that, Indonesia developed much faster than India

Sometimes statistics are like miniskirts. They hide more than they show.

Here are some figures (gdp per capita PPP) of India vs Indonesia where there was a wide gap

1990 = > India vs Indonesia ::: $1150 vs $2900, Ratio = 2.5
1991 = > India vs Indonesia ::: $1180 vs $3200, Ratio = 2.7
1992 = > India vs Indonesia ::: $1240 vs $3450, Ratio = 2.78
1993 = > India vs Indonesia ::: $1300 vs $4030, Ratio = 3.1

The gap now is less than what it was in 1990

2010 = > India vs Indonesia ::: $4360 vs $8300, Ratio = 1.9
2011 = > India vs Indonesia ::: $4690 vs $8870, Ratio = 1.9
2012 = > India vs Indonesia ::: $4950 vs $9450, Ratio = 1.9
2013 = > India vs Indonesia ::: $5300 vs $10.5K, Ratio = 2.0

 

[esolve]

Sometimes statistics are like miniskirts. They hide more than they show.

Here are some figures (gdp per capita PPP) of India vs Indonesia where there was a wide gap

1990 = > India vs Indonesia ::: $1150 vs $2900, Ratio = 2.5
1991 = > India vs Indonesia ::: $1180 vs $3200, Ratio = 2.7
1992 = > India vs Indonesia ::: $1240 vs $3450, Ratio = 2.78
1993 = > India vs Indonesia ::: $1300 vs $4030, Ratio = 3.1

The gap now is less than what it was in 1990

2010 = > India vs Indonesia ::: $4360 vs $8300, Ratio = 1.9
2011 = > India vs Indonesia ::: $4690 vs $8870, Ratio = 1.9
2012 = > India vs Indonesia ::: $4950 vs $9450, Ratio = 1.9
2013 = > India vs Indonesia ::: $5300 vs $10.5K, Ratio = 2.0

no, 2013 GDP per capita: India 1498 dollars
Indonesia: 3475 dollars

 

[ramu]

no, 2013 GDP per capita: India 1498 dollars
Indonesia: 3475 dollars

before you jump, read my post again. I am quoting PPP that is a much better scale for comparing per capita.

 

[esolve]

before you jump, read my post again. I am quoting PPP that is a much better scale for comparing per capita.

PPP is not a better comparison coz the price level investigation is not accurate

 

[Dungeness]

PPP is not a better comparison coz the price level investigation is not accurate

When it comes to GDP comparison, PPP is almost always THE preferred measurement used by some self-deceiving Indian members here, as it makes them the 3rd largest economy in the World, which dose make India look a lot better than using nominal GDP.

 

[alpha q]

Ask Japan. You thought that being the biggest Japanese cheerleader that Japan will pour ton of money into India development. LOL

And what happened to your cheerleader? Branded a terrorist spawner? Just hold your dwindling economy first.

 

[ramu]

PPP is not a better comparison coz the price level investigation is not accurate

Economics 101

 

[esolve]

Economics 101

I have told you the price investigation level is not accurate
PPP = GDP/price_level

if your price_level is 0.5, your PPP is twice of GDP
but the price level number is not accurate. For example, China has a high price level than Taiwan, but in reality, the average price in China is less than Taiwan. So why the international organization get a high price_level in China than Taiwan? there are many factors, for example, when they investigate house price, they only investigate 10 major cities in China, but China's house price are much more diverse than Taiwan. The house price in Beijing could be 20 times that of an ordinary county city. Another factor is that many industrial products are not included in price level. But Chinese can buy industrial products with a very low price coz China made them.

Even if price level is accurate, let's see two countries:
country A: GDP per capita: 6000 dollars, price level: 1, so its PPP per capita is 6000 dollar
country B: GDP per capita: 3000 dollars, price level: 0.5, so its PPP per capita is 6000 dollar
now they have the same PPP per capita, so according to PPP definition, they should have the same life quality.

but the reality is:
a person in country A make 6000 dollar a year, while a person in country B make 3000 dollar a year
A person spend 4000 dollar in daily life, like food, housing, transport
B person spend 2000 dollar in daily life, coz the daily life expense is half that of A
now A person has 2000 dollars left, while B person has 1000 dollars left
smartphone, laptops, TVs, oversea travelling, are of similar price in both A and B
so this means A can use the remaining money to buy a smartphone/300 dollars, a laptop/600 dollars, a TV/400 dollars and oversea travelling/700 dollars
while B person can only buy a laptop and a TV.

 

[Dungeness]

Good point! This explains Indian's domestic consumption is 16% that of China, but their eCommerce size, which is mainly used for non-essential and luxury goods purchase, only worth about 5% of China's. @AndrewJin

Actually, India's eCommerce in 2014 worth

I have told you the price investigation level is not accurate
PPP = GDP/price_level

if your price_level is 0.5, your PPP is twice of GDP
but the price level number is not accurate. For example, China has a high price level than Taiwan, but in reality, the average price in China is less than Taiwan. So why the international organization get a high price_level in China than Taiwan? there are many factors, for example, when they investigate house price, they only investigate 10 major cities in China, but China's house price are much more diverse than Taiwan. The house price in Beijing could be 20 times that of an ordinary county city. Another factor is that many industrial products are not included in price level. But Chinese can buy industrial products with a very low price coz China made them.

Even if price level is accurate, let's see two countries:
country A: GDP per capita: 6000 dollars, price level: 1, so its PPP per capita is 6000 dollar
country B: GDP per capita: 3000 dollars, price level: 0.5, so its PPP per capita is 6000 dollar
now they have the same PPP per capita, so according to PPP definition, they should have the same life quality.

but the reality is:
a person in country A make 6000 dollar a year, while a person in country B make 3000 dollar a year
A person spend 4000 dollar in daily life, like food, housing, transport
B person spend 2000 dollar in daily life, coz the daily life expense is half that of A
now A person has 2000 dollars left, while B person has 1000 dollars left
smartphone, laptops, TVs, oversea travelling, are of similar price in both A and B
so this means A can use the remaining money to buy a smartphone/300 dollars, a laptop/600 dollars, a TV/400 dollars and oversea travelling/700 dollars
while B person can only buy a laptop and a TV.

Good point! This explains the reason that India's domestic consumption is around 16% of China's, but their eCommerce size, which is mainly used for non-essential and luxury goods purchasing, is only about 2.4% of Chin's (2014 figure). @AndrewJin

_______________________________________________


But with retail ecommerce sales (excluding travel) 41 times that of India’s (217.4 billion vs 5.3 billion, respectively) and consumers hungry for ecommerce, China is becoming a promising prospect for global retailers. For the time being, we recommend deprioritizing the Indian market, and keeping your eyes fixed on China.

Ecommerce Opportunity in China and India

Actually, India's eCommerce in 2014 worth



Good point! This explains the reason that India's domestic consumption is around 16% of China's, but their eCommerce size, which is mainly used for non-essential and luxury goods purchasing, is only about 2.4% of Chin's (2014 figure). @AndrewJin

_______________________________________________


But with retail ecommerce sales (excluding travel) 41 times that of India’s (217.4 billion vs 5.3 billion, respectively) and consumers hungry for ecommerce, China is becoming a promising prospect for global retailers. For the time being, we recommend deprioritizing the Indian market, and keeping your eyes fixed on China.

Ecommerce Opportunity in China and India

Sorry, this thread is about India vs Indonesia, the above reply was off topic. Stop here.

 

[Beidou2020]

When it comes to GDP comparison, PPP is almost always THE preferred measurement used by some self-deceiving Indian members here, as it makes them the 3rd largest economy in the World, which dose make India look a lot better than using nominal GDP.

PPP always overestimate the GDP of developing countries and have them ahead of many developed countries.

Indian economy is all fluff. India is not even a top 10 nominal economy if they reported their GDP accurately. The entire Indian economy is one giant Ponzi scheme propped up with hot money inflows. The Rupee would be well over 100 without the hot money that came into India in 2014. Their whole economy is a facade built on debt for non-productive sectors. The Rupee crashed from 40 to near 70 in about 2 years until the hot money from QE decided to come to the rescue in 2014. Hot money can come in quickly and leave just as quickly. Then India will have to deal with its structural problems without being bailed out by hot money.

Once this Indian Ponzi scheme collapses, their currency will crash and they won't have enough forex reserves to rescue the currency. Inflation will skyrocket and interest rates will be increased dramatically which will make funding costs too high for Indian companies and its population.

 

[AndrewJin]

Actually, India's eCommerce in 2014 worth



Good point! This explains the reason that India's domestic consumption is around 16% of China's, but their eCommerce size, which is mainly used for non-essential and luxury goods purchasing, is only about 2.4% of Chin's (2014 figure). @AndrewJin

_______________________________________________


But with retail ecommerce sales (excluding travel) 41 times that of India’s (217.4 billion vs 5.3 billion, respectively) and consumers hungry for ecommerce, China is becoming a promising prospect for global retailers. For the time being, we recommend deprioritizing the Indian market, and keeping your eyes fixed on China.

Ecommerce Opportunity in China and India









Sorry, this thread is about India vs Indonesia, the above reply was off topic. Stop here.

Hehe, I knew Hindu PPP-lovers would come here to sell their PPP against Indonesia.
Why not buy a pricey iPhone with PPP?
Or Rafale？

 

[Beidou2020]

Hehe, I knew Hindu PPP-lovers would come here to sell their PPP against Indonesia.
Why not buy a pricey iPhone with PPP?
Or Rafale？

Haha so true.

 

[Shotgunner51]

Hehe, I knew Hindu PPP-lovers would come here to sell their PPP against Indonesia.
Why not buy a pricey iPhone with PPP?
Or Rafale？

LOL ... imagine now Saudi King sells his oil at US$50 per barrel, and you say you can buy at your PPP adjusted $15/barrrel, guess what's he gonna say?

the simple reason is that east asians are smarter ...

Thanks for the compliments bro!

infact they are second only to ethnic europeans.

Bro that might seems inaccurate though, here are some links:

Why do East Asian countries have a higher estimated average IQ than the other countries? - Quora
The East Asian Exception to Socio-Economic IQ Influences | The American Conservative
East Asian nations top PISA global exam | News | DW.COM | 03.12.2013
East Asian countries top global league tables for educational performance | World news | The Guardian

@Speeder 2

 

[asad71]

India has been spending frantically in chest-thumping projects. Thus social development has suffered and the poverty rate has been rising. Basic civic amenities have been missing. In Indonesia on the other hand, common man has benefited from sharing / participating in national projects.