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Saturday, June 18, 2011

India and a 2 trillion dollar economy

It's official, India is very close to a 2 trillion dollar economy and the next doubling of our economy to a 4 trillion dollar one is probably only 4-5 years away by the most pessimistic of forecasting. But wait, we have been an unofficial 2 trillion dollar economy for quite some time now. The current 1.7 trillion dollar figure does not include black money in the system and I can bet that there is at least 300 billion dollars of black money out there in the Indian economic system. Heck if we can have a 1,76,000 crore scam then the 300 billion dollar figure pales in comparison.

Statistically speaking, in PPP terms, roughly we are easily a 5 trillion dollar economy and have long surpassed the Japanese to gain the third spot in world ranking. With a PPP per capita at around 4500 dollars we are a lower middle income country. Reaching the mid income country status is only a matter of time, if not in 10 years then in the next 15 years. Our Gini co-efficient is not all that bad either, our GINI numbers are better than the Chinese and the Americans and are very close to the Aussies.

       

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