How is India top 5 in gdp while 81% of their population live in poverty
In: Economics
81% live in poverty? Who provided this data? Where is the source ?
Nearly 15 % population lives in poverty where did you got yours 81% data?
Because
1 +1 +1 +1 +1 +1 +1 +1 +1 +1 +1 +1 +1 +1 +1 +1 +1 +1 +1 +1 +1 +1 +1 +1 +1 +1 +1 +1 +1 +1 +1 +1 +1 +1 +1 + 2 + 5
Is more than
5 + 5
GDP is a grossed indicator of economic activity. It doesn’t necessarily indicate wealth as much as it indicates how many transactions are being made (which is why GDP increases when countries are at war even though the civilian economy takes a hit). GDP tends to be skewed with high-population because of this.
GDP per capita is a net indicator which, unlike gross indicators, actually reflect the wealth of an average citizen and takes population size into account.
Gdp is not the same as gdp per capita. Country A with 5 people produce $1000 worth of goods gdp=$1000. Country B with 10 people produces the same $1000 worth of goods, gdp is also $1000. But per capita gdp is $200 for A and $100 for B. Gdp per capita is a better measure of individual wealth.
There’s also GNI (gross national income), nominal GDP, CPI etc. when considering standard of living for an average person in a country. Those are a few but they’re all flawed in that they only consider things we can put a monetary value on. There are even more indices that consider access to resources, work/life balances, culture, happiness/ mental health etc. that affect how standard of living.
We have shit ton of people.. Politicians are claiming top 5 GDP as an achievement while conveniently ignoring per capita. But I’m pretty positive about Indias outlook.
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