How is India top 5 in gdp while 81% of their population live in poverty
In: Economics
Because it has a **HUGE** population.
For example, Australia’s GDP *per capita* is about 25x India’s, but India has about 55x Australia’s population, so India’s overall GDP is a bit over twice Australia’s.
The population is so huge. If you instead control for population by using GDP Per Capita, they fall about 2/3 of the way down the list in ~138th place.
Because it’s a large, very populous country – nearly 1.5 billion people (recent estimates saw them overtake China as the most populous nation last year). Their overall GDP is comparable to Japan and the UK, but with 10 or 20× the population of those, their GDP *per Capita* is relatively low.
81%? Please do some research. As per latest available data India’s poverty rate is ~15% (UNDP figures for 2023).
When you have something close to 20% of world population, it’s easy to have a big gdp and a lot of poor people.
Because their population is massive. It’s 4x the size of the US and more than 10x the size of Japan, the next highly developed country in terms of population after US. So even a much smaller GDP per capita still ads up to a large overall GDP number.
You and 4 of your friends have a total of 1000€. That makes you in the top 5 of friends groups at your school. One of your mate has 996€ and you and 3 others have 1€. 80% (4/5) of your group is poor af
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because they have horrendously greedy people that hoard wealth at levels that puts even the usa to shame.
Oversimplified
Richness of average people = gdp per capita = Money/People
Rich Countries: Lots of money/ A bit of people = Rich
Poor countries have two options
Poor countries: Lots of money/ Too much people = Poor or
Poor countries : Less money/ A bit of people = Poor.
Germany’s wealth is 3rd in the world, distributed into 80 Million.
India’s wealth is 5th in the world, distributed into 1400 Million.
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