The True Measure of India’s Wealth
India’s GDP is not $3.4 trillion, actually it is $11.9 trillion.
Let’s know how?
Have you ever pondered the true measure of a nation’s wealth? It’s a fascinating question, isn’t it? The answer, often, lies not just in a country’s Gross Domestic Product or GDP but in a more nuanced metric known as GDP adjusted for Purchasing Power Parity, or GDP PPP.
Now, imagine two countries, England and Bharat. England is known for its high-priced goods and services, while Bharat is known for its affordability. If we were to assess their wealth solely based on GDP, England would seem wealthier because its goods and services are priced higher. But does that make England truly wealthier? Not necessarily. Here’s where GDP PPP comes into play.
GDP PPP gives us a more accurate picture by considering the relative cost of living and the inflation rates of the countries. It tells us how much a specific quantity of goods and services costs in different countries. In other words, it measures what money can buy in England versus Bharat.
For instance, if a loaf of bread costs two dollars in England and only one dollar in Bharat, the citizens of Bharat are effectively wealthier, at least when it comes to buying bread. They can buy twice as many loaves with the same amount of money. This is the principle behind GDP PPP – it’s about what your money can buy you, not just how much of it you have.
When we look at GDP PPP, we might find that even though England has a higher GDP, Bharat’s citizens might be better off economically because their money has more purchasing power. They can buy more with less.
It’s important to remember that GDP PPP isn’t a measure of personal wealth. It doesn’t tell us who has more money in their bank account. Rather, it’s an economic tool that helps us understand the relative economic strength and standard of living in different countries.
In summary, GDP PPP provides a more balanced view of a nation’s economic health than raw GDP numbers. By considering the cost of living and inflation rates, it offers a more accurate depiction of the purchasing power of a country’s average citizen. It’s a reminder that wealth isn’t just about how much money a country has, but also how much that money can buy.
So, the next time you come across a country’s GDP figures, remember to also consider its GDP PPP. It might offer a completely different perspective on the nation’s economic wellbeing and the living standards of its citizens. Always remember, it’s not just about the money, it’s about the purchasing power.
Hope you understood the concept, now let’s look at Top 10 countries basis GDP PPP.
Source:Wikipedia
So, if you are a student or working professional looking for opportunities to work in USA, minimum salary should be 2.5x to 3x of what you may get in India (Bharat).
Thanks for reading!
For video : https://youtu.be/MSMJ9MDHnxg?si=qANZRhQ8TBTrpshw