Comparison India:Indian economy vs US, EU, Canada, China and world
Bombay Stock Exchange
Breaking event in Indian economy
Narendra Modi, Prime Minister of India visited Japan recently and signed treaties with his Japanese counterpart. He also met with Japanese entrepreneurs, industrialists and investors. Japan has agreed to invest $ 35 B in coming five years in various projects in India. This will enhance Indo-Japan cooperation in business and economic sectors and will benefit both countries.
Australian Prime Minister visiting India has signed four business agreements with India. The most important is a nuclear deal signed with India. Australia has been mining best quality uranium in the world and is now agreed to supply their products for nuclear power projects in India. This is a sign of growing faith and trust over India.
Australia has reduced dependence on China by signing a nuclear deal with India. India is the best potential customer for Australian uranium.
(Updated September 6, 2014)
India: Comparison of Indian economy vs. US, European Union , Canada, Japan and China
India is an emerging economy and comparison of Indian economy with other countries such as the US, European Union , Canada, Japan and China is needed to study international economy and business. People want to compare economies to make strategies. This article will help you understand better Indian markets, consumers, industries and overall growth picture of India in Comparison with US, EU, Canada, Japan, China and rest of the world.
India is a large country having a population of more than a billion, second highest in the world. It is also the largest democracy in the globe. GDP India is fourth highest in the world in PPP terms. Here is a comparison of Indian economy vs. the US, EU, Canada, Japan, China and rest of the world.
Indian GDP ranks to No.12 in nominal term of world GDP after US, Japan, UK, Germany, China, France, Italy, Spain, Canada, Brazil, and Russia. However, India ($3000B) comes to No.4 after US (($13800B), China ($7000B) and Japan ($4300B) in PPP terms .
India is a large economy. It has GDP of $1100 B (2007) or RS.55000 B. It is approximately two percent of the GDP of the world i.e. $55000 B. It does not tell the real story because world GDP is calculated based on US dollars. However, Indians have to buy, sell and spend in Indian rupee. Price parity parameter shows a comparatively better picture. In PPP method, Indian GDP is calculated to $3000B that is approximately 4.7 percent of world GDP of $64000B in PPP.
Kris Gopalakrishnan - India Economic Summit
Bond issue: Reserve Bank of India
Highest growth in stock market
Moreover, India is growing at the rate of eight to nine percent per annum whereas most of the developed countries including US, Canada, Japan and countries of EU and UK are growing at a very slow speed until last year. Only China has shown greater growth rate than India.
The picture is little different this year. Most of the developed countries have started showing a tendency of negative growth. This will surely affect India and China but they can manage their growth in a positive range. It is expected that China will manage a growth rate of eight to nine percent whereas India will anywhere between seven to eight percent.
India has achieved the highest growth rate in the stock market in the world. If we compare the stock markets of India and America since 9/11, we find fascinating facts. Dow Jones fell after 9/11 to 8235 on 21st September 2001. The BSE (India) also fell during those days to reach a low of 2595. Particular data for Shanghai (China) and Hang Seng (Hong Kong) are not available to me (If anyone has the data, please inform me) but those were around 1400 and 11000 respectively. Dow Jones is trading at 8787 (While writing this hub Dec. 09, 2008).
If we compare it with the previous Dow Jones data (21st September 2001), it has gained mere 550 points over the period of more than seven years. Whereas BSE India has traded at (on eighth Dec.2008, the 9th market closed) 9162 level. It has jumped from 2595 to 9162, that is a gain of 6567 points or approximately 250 percent! Hang Seng is 14753 and Shanghai are 2037 today. As I do not have actual data of 21st September of both these indexes it is not justified to calculate the gain but it is something around thirty to fifty percent.
Dow has increased mere six percent in more than seven years and China and Hong Kong index has raised by thirty to fifty percent (roughly estimated) but Indian stock exchange index BSE has shown an amazing growth of more than two hundred fifty percent.
I have deliberately taken bear market data for a real comparison.
Collapsing Dow Jones
Fifth highest foreign currency reserve in the world
India has fifth highest foreign currency reserve in the world. Foreign currency reserves of China, Japan, Russia,Taiwan, and India were $ 1905, $997B, $485B, $282 B and $247 B respectively in 2007. This shows that Foreign currency reserve of India was the fifth highest in the world after that of China, Japan, Taiwan, and Russia.
The most interesting fact is that Indian foreign currency reserve had been increased 64 percent in comparison to 32 percent of China and 57 of Russia, 9 of Japan and below 3 percent of Taiwan on a year-to-year basis. It is worth mention that so-called rich countries likes of the US, Canada, France and the UK are not on this list.
Composite economic scenario of India:
India is the twelfth largest economy in the world in nominal parameter but that does not show the real picture. GDP India represents the fourth largest economy in the world in price parity parameter (PPP). India has the second highest growth rate in the world after China.
BSE stock index of India has grown at the fastest pace beating all stock indexes in the world including America, Canada, China, Japan and of course, all stock markets in the European Union. India has no.1 growth rate among stock markets in the world.
Jurvetson - Medvedev Speech at Stanford
When will India come to third position in world GDP (PPP)
Updates: Indian economy
N.B. Global recession also hit Indian economy during the last quarter of 2008. However, It has started regaining its ground. India has successfully controlled its inflation problem. Indian auto sales up by 10 percent during the first quarter of 2009. It is continuing with its GDP growth.
BSE Sensex, that has tasted below 8000 during the recession has crossed 12000 marks on 7th May 2009. The Sensex had crossed 18000 marks at the end of 2009 before com,ing down to 16K at present. (Feb: 2010)
Bombay stock Exchange
Salary hike in India and other countries
Salary hike in India is the highest in the world. Recent survey reports suggest that salary hikes in different countries are different. Comparison of salary hikes in India and other countries in the world are mentioned below.
Japan remains the lowest with just half percent hike in salary. it is approximately one percent in Canada and two percent in New Zealand, Australia. Hong Kong and Singapore. The US, of course, have achieved up to 2.8 percent. Indonesia has achieved a salary hike up to nine percent and Vietnam is at the level of ten percent growth.
However, India beats all countries in the world with eleven percent hike in salary. India is leading even in the recession period.
it has not that much affected. Though some small banks also failed here, no major bank is in crisis. Job loss ratio in India is also very low in comparison to other countries. It has growth rate over five percent so far.
It is worth mention that India has achieved almost zero percent inflation rate (Year to year basis) whereas most of the countries are either facing or on the brink of high inflation.
(This hub is published on December 9, 2008. Updated on eleventh April 2009)
Indian economy triumph over US
India in Green Job sectore
India has announced carbon emissions cut voluntarily at Climate change conference in Copenhagen. This will be proved a major step towards clean energy sector. India is already generating wind power and hydroelectricity. The announcement of carbon emissions cut will push forward India in these sectors.
Some of the major Indian industrialists have started making their industries green. Tata is one of them. This initiative will help growing environment-friendly and energy efficient industries and businesses. India has started moving towards renewable sources of energy especially in solar energy and wind energy. Vast desert land in Thar area is an ideal place to produce solar energy. Long coastal area viz a viz to the desert are ideal places for producing wind energy.
India is a pioneer in the recycling industry. Large numbers of Indian people are involved in recycling waste materials in the unorganized sector. Some organized sector businesses have recently entered into this business. Government incentives can boost this industry to sky height.
India is growing organic food and other agricultural products in huge quantity. The country is also creating green forests and urban forests to fight global warming and climate change.
Several urban cities authorities made water harvesting compulsory for new buildings. This government initiative is boosting water harvesting projects in urban areas. Government initiatives in rural areas will enhance these projects many folds.
All these will make India pioneer in green industries. It will create large numbers of green collar jobs in India.
India-america economic tie
India will lead internet and telecommunication
India is showing amazing growth in internet connections and mobile phones. India is number two in mobile phone users in the world after China. It has surpassed the US long back. There are more than 650 million mobile users in India presently. Moreover, it is still increasing.
India is showing tremendous growth in internet connections. India is adding more than five million users every month or more than sixty-five million internet users every year. It is the highest growth rate in the world. It is expected that India will cross America, the US in a number of internet connections by the year 2013. Any of the European Union countries, Japan and Canada can not stand with India while it comes to numbers.
It is well-known fact that Indian IT professionals are the backbone of silicon valley. The number of websites is also increasing in India with the growth of internet connections. Indian IT companies are coming forward in web designing and software development.
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(Updates: December 6, 2011)