India: 3rd Largest Economy – 5 Fascinating Infographics
5 Fascinating Infographics
Good things do come before election results don’t they? Well, this time it’s a report by the world bank which you can find here, it says that India has now overtaken Japan to become the third largest economy in terms of PPP (purchasing power parity). The report also talked about why measuring with PPP is more relevant than any other method, “Because economies estimate their GDP at national price levels and in national currencies, those GDPs are not comparable. To be compared, they must be valued at a common price level and expressed in a common currency.”
GDP is largely measured in two ways, by comparing GDP of one country to another using the prevalent exchange rates and the other called GDP by PPP. Purchasing PowerParity tries to dislodge the illusion of being richer by way of a higher exchange rate. For example PPP compares a basket of goods (orange juice, apples, milk) in different countries and derives the purchasing power of the residents thereby relying on ‘purchasing power’ rather than fluctuating exchange rates. The PPP is particularly important in the study the quality of life across countries as it adjusts for price changes across national economies. What’s interesting is that in 2005 India was in tenth place, talk about fast paced development! However I believe that the concentration of this wealth is in the very few, this can be observed with the fact that GDP (PPP) per capita, India still ranks 127 out of 199 – sadly governance still has not fixed as much as it should have during this ‘boom’ period. Perhaps there was a trickle – down effect, but it made a very shallow pond and is negligible when compared to the ocean of success private enterprise has seen. Add to this, India has the 2nd largest population in the world. Despite this progress, many will go hungry in India every day. Infographic: economic times http://economictimes.indiatimes.com/news/economy/indicators/india-displaces-japan-to-become-third-largest-world-economy-in-terms-of-ppp-world-bank/articleshow/34392694.cms “Poor governance and inadequate infrastructure are holding up growth in India”, says World Bank’s chief economist Kaushik Basu. I have a fascination for infographics, and as I rode the trusty Google horse over the web I came across some interesting infographics on mobiles, infrastructure and e-commerce in India.
Zuckerberg from Facebook says mobile is the future, so does Google and many other tech behemoths. Today Facebook derives 54% of ad revenue from mobiles (data taken Jan 2014). So where does India figure in this mobile matra trance? India has 150 million mobile users who are connected to the internet. 7 out of 8 internet connections are accessed via mobile phones. Who is generating all this vibe? The under 25 group, also known as generation Y.. Graphic by: Vserve.mobi publication titled Mobizen Insights Infographic: Tata Consultancy Services
If you have traveled to China you will marvel at the infrastructure they have been able to lay out in little under 20 years. The roads, towering edifices and glass domes ignite the kind of patriotism in me that is much defensive, It makes us Indians feel defeated, but the battle is still on – People estimate China got a 10 year head start from us, but the $9 trillion Chinese economy dwarfs the $2 trillion Indian economy on almost every count. This infographic invokes a better feeling, India is NOT as far behind as you may think!
Have you heard of Flipkart? Of course you have – But did you know that it is not a profitable firm? Or as the optimistic VC’s call it ‘yet to be profitable’ company eyeing positive cashflow in 2015. This year alone has seen 288 million dollars pour into the industry through VC investors (data from vcc edge). Quikr raised $ 90 million and Snapdeal says It was raising $ 133 million. So what’s the big deal? (pun intended) perhaps it is the fact that the market is growing at an average rate of 34% since 2009 and expected to touch 13 billion. But 13 isn’t such a cool number, 500 Billion is. See the infographic for more.