Is India very poor cannot matter? IIT graduate is the reason why the gross domestic product statistics do not tell the full story

The claim that India is very poor so that it cannot be concerned – on the basis of a decrease in the gross domestic product of the individual – is not just excessive use, but it is bad economies. The startup founder connects to the defective logic with clean data cleaning.

Chevam Parashar, a graduate of IIT and businessman, posted on LinkedIn to back down against a narration that he lacks the critical context.

The idea that India’s economic power can be summarized by the individual’s gross domestic product – ranging from between 2,700 to 2,800 dollars – in his opinion, misleading and ancient.

PARASAR refers to EGP (PPP) as the most accurate measure. Unlike the nominal GDP, which converts local profits into US dollars using exchange rates, the PPP adjusts the differences in the cost of living and what money you can already buy in a country.

“When people cite a decrease in the gross domestic product of the individual in India, they are quoting nominal personalities,” he wrote. “But this ignores the ground reality.”

According to PPP, the per capita GDP in India rises to $ 9,000 to $ 10,000 – three times higher. This makes a huge difference. He added: “This one dollar in the United States may get a bottle of water. In India, you can buy a full meal, a bus ticket, or even a haircut.”

More importantly, PPP classifications put the third India in the world in the gross domestic product, behind the United States and China only.

Parashhar says this better reflects the real economic scope of the country and the fast broad -class.

It does not deny the structural challenges of India: “Yes – we are still facing great challenges,” as he wrote, which is the naming of inequality, quality of function and rural poverty. But reducing the conversation to a dollar character, he said, the broader image lacks.

“Judgment of India’s progress only on the gross domestic product of the individual is not just a simplification – it is misleading.” “You can not only measure the potential of the nation by converting the currency – you have to look at what this currency can do.”