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India's Economy Surpasses That Of Great Britain

Discussion in 'World Economy' started by randomradio, Dec 17, 2016.

  1. Bregs

    Bregs 2nd Lieutant FULL MEMBER

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    There is no comparison unless we increase per capita income of our people, its like comparing earth with the moon.
     
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  2. A_poster

    A_poster Lieutenant FULL MEMBER

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    I second that. @Indx TechStyle .
     
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  3. A_poster

    A_poster Lieutenant FULL MEMBER

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    Yes, our economy would be weaker than most of the developed countries until we achieve purchasing power parity.

    Also GDP in a foreign currency value is pure nonsense. Very small part of transactions in economy are in form of foreign trade where exchange rate matters, and fluctuation in exchange rate causes distortion in real purchasing power.
     
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  4. BMD

    BMD Lt. Colonel ELITE MEMBER

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    Your figures are also wrong. You cannot apply a present exchange rate to GDP developed in the past when the exchange rate was different.

    http://www.bbc.co.uk/news/business-37763913

    The Office for National Statistics published its first estimate of GDP figures for the third quarter of 2016 on Thursday morning, suggesting the economy grew 0.5%.

    That means that GDP for the first nine months of the year was about £1.400 trillion.

    Over the same period the average exchange rate was $1.3925, according to data from the Bank of England. So if we convert our GDP in pounds into US dollars that gives us a GDP of $1.949 trillion in the first nine months of 2016.

    In France, GDP data for the third quarter came out on Friday morning, suggesting that French GDP was €1.641 trillion in the first nine months of 2016.

    Convert that to US dollars at an average exchange rate, taken from the European Central Bank, of $1.1157 and France's GDP on the World Bank measure is $1.831 trillion.

    Still smaller than the UK. And indeed, UK GDP for just the third quarter was also bigger than French GDP using this method.

    The figures for 2016 are not out yet. We still have the Christmas month too. The £ will also pick up by the end of 2017, after people realise the sky is not going to fall.

    The full annual figure is still $2.85tr.

    http://www.tradingeconomics.com/united-kingdom/gdp

    And growth is still healthy.

    [​IMG]

    http://uk.businessinsider.com/brexit-aftermath-uk-gdp-q3-2016-10


    Britain's economy grew faster than expected in the third quarter of 2016, according to a preliminary GDP release from the Office for National Statistics on Thursday.

    According to the ONS' data, GDP grew by 0.5% in the quarter, above the consensus forecast of economists who saw growth increasing just 0.3%.

    On a year-to-year basis, growth was also higher than expected, with UK GDP 2.3% higher over the course of the last 12 months, compared to a forecast 2.1%.
     
    Last edited: Dec 17, 2016
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  5. randomradio

    randomradio Mod Staff Member MODERATOR

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    Today's exchange rate
    UK = £1.400 trillion = $1748T
    France = €1.641 trillion = $1715T

    So both are neck and neck today.

    If that's the first three quarters, then the last quarter should get another $582B for the UK and $571B for France.

    UK = $2330T
    France = $2286T

    If we assume the figure of 153T is the latest for India. That puts India at $2255T. So India is just a shade below both countries.
     
  6. BMD

    BMD Lt. Colonel ELITE MEMBER

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    You obviously didn't read the above post. That isn't how GDP nominal is calculated by the IMF. You don't take the end of year exchange rate and apply it to the whole year, you take the average exchange rate for each month, apply it to that month and add them. Otherwise you are measuring a GDP produced at a time when it didn't benefit from a weaker currency and assuming that it did.

    The GDP for the 12 months to end Oct were just under £2tr for the UK, and are set to pass £2tr for the 12 months to end Dec. Now if we assumed half-half for first and last 6 months, that gives £1tr for the first half at an exchange rate of £1 = $1.5 and £1tr for the second half at £1 = $1.25, giving $2.75tr. So both India and France have some way to go yet.
     
    Last edited: Dec 17, 2016
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  7. randomradio

    randomradio Mod Staff Member MODERATOR

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    You don't calculate GDP that way. You calculate GDP in your own currency and then convert it based on the current exchange rate to arrive at the latest GDP figure. This is because your domestic market is not affected by the exchange rate, only trade is.

    If you want to know your latest GDP figure in USD, you take the latest numbers in GBP and then use the current exchange rate.

    And this was only from a Brexit referendum, the actual egg-zit is yet to happen.
     
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  8. somedude

    somedude Captain FULL MEMBER

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    I'm not terribly interested in using GDP as a substitute to dick size contests, because GDP is a flawed indicator.

    Anyway, what happened is simple: Brexit. It caused the pound to be worth less, magically shrinking the British GDP.

    That said, if you want to boast about Indian stats, look at gross national income, you'll like the GNI PPP table.
     
  9. randomradio

    randomradio Mod Staff Member MODERATOR

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    Bro, you know me and BMD. That was a rhetorical question. :D
     
  10. BMD

    BMD Lt. Colonel ELITE MEMBER

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    No, you don't, because the GDP produced in half one, wasn't produced, or sold at the current exchange rate. The IMF does not calculate it this way.

    If I produced a McLaren 675LT in half one for £300k and sold it to a customer in the US for $450k, are you saying that only counts as $375k, just because the exchange rate has changed since then, even though I have my money ($450k) already?
     
  11. A_poster

    A_poster Lieutenant FULL MEMBER

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    The GDP of UK at ANY time was never produced and sold in US dollars, it was produced and sold in pounds. The overseas sale which generated currencies other than pound was converted to pound at their then exchange rate and added to GDP in pounds. Thus GDP of UK that exist ,or that ever existed, was always in pounds. If GDP UK has to be calculated in dollars on any given day, it is exchange rate of dollars that would apply.

    GDP are always calculated in local currency because it is the mode in which production and consumption occurred.
     
    Last edited: Dec 18, 2016
  12. randomradio

    randomradio Mod Staff Member MODERATOR

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    There was no change in the value of the transaction. Your £300k McLaren is still £300k in the UK.

    In half one, you sold it to the US customer for $450k in New York and received £300k in London.
    In half two, you sold it for $375k in New York and received £300k in London.

    So there was no change in your earnings, only the second US customer benefited due to the lower price. The addition to UK GDP stayed the same during both transactions.

    So scenario 1:
    As far as the UK is concerned, you sold two McLarens at £600k. No change.
    As far as the US is concerned, you sold two McLarens at $825k. Big change. Affected US GDP positively because the second car came in cheap.

    The only way you and the UK would benefit is by raising the price of the McLaren to £360k in half two by taking advantage of the weaker pound. That way the second US customer pays the same amount as the first, $450k, while you and your country have added £60k in profits.

    So scenario 2:
    As far as the UK is concerned, you sold two McLarens at £660k. Big change. Affected UK GDP positively.
    As far as the US is concerned, you sold two McLarens at $900k. No change.

    But the scenario that's played out today is scenario 1.

    That's why you take the GDP figure in your own currency and then apply the current exchange rate.

    Scenario 1: If total UK GDP composed of two cars, then the GDP is £300k in half one + £300k in half two = £600k. Convert to today's rate, we get $750k.
    Scenario 2: If total UK GDP composed of two cars, then the GDP is £300k in half one + £360k in half two = £660k. Convert to today's rate, we get $825k.

    This is the reason why your GDP is practically equal to India now. Your dollar GDP in half one is irrelevant because your economy runs on pounds.
     
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  13. Mayawi

    Mayawi IDF NewBie

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    Nominal gdp in dollars is calculated by taking average dollar to currency .

    If not this year next year . What is important is standard and quality of life we should aim in next 20 years
     
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  14. Indx TechStyle

    Indx TechStyle Lieutenant FULL MEMBER

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    A number of Indian members (of an other Indian Forum) together did s"urgical strike there". So, our thread was deleted.

    All I have left now is a screenshot of a retarded and frustrated white.[​IMG]

    If you guys too are ready to play, I won't forget to invite you guys to troll there.:biggthumpup:
    At first, I'm telling you, they are hardcore anti India and can't listen anything positive about their former colony. Even if you become humble, they will keep trolling to a new low level everytime.

    Here's the place BTW.
    arrse.co.uk/community/
     
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  15. GRH

    GRH IDF NewBie

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    I see, thanks man! obviously I do not want to involve in trolling that leads no where. But it hellua lot of fun to read those comments!:yes4: I do not know why Brits are so bitter about anything positive that happens in India! I do request all if you find stuff like these, please post the links/screenshots..
     
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