Finance, Forex and Investments

How do we say that India's economy is growing? Reflection of increased prices of commodities does say this?

If the second question is true then how is India's economy growing?

Public Comments

1. It is the GDP that is considered when deciding if economy is growing or not. If buying power of people grows and money starts rotating more, then we have a growing economy. Like it is happening in India. Even if the rates are high people are buying more and more. which causes more goods to be produced. and more mony pours in. thus growing economy. Increase in prices is called inflation. But it is not the measure of a country's growth.
2. Economic growth is the increase in value of the goods and services produced by an economy. It is conventionally measured as the percent rate of increase in real gross domestic product, or GDP. the per capita income of the individuals is growing. which ultimately results in purchasing power which then leads to the contribution of GDP. i suggest u get familiar with the wheel of wealth and micro and macro economics basic concepts. you will be able understand it very easily then.
3. Second aspect first :- Prices have increased to the detriment of the poor. Rest of the population has not bothered for the 'rise' ... the growing economy has supplied them with surplus income to buy the goods and services. Goods are sold as soon as they are reaching the selling points - producers are thus encouraged to produce more - a rolling snow ball called economy is gaining momentum and growing fatter ...!! .........(Note : The Govt. should protect only the poor... ) Now the First question : To judge the economy's growth, GDP growth is the best measure. The world has recognised that India is right below China and its the fourth fastest growing economy in the world. So many VIPs is visiting this country ... to-day the PM of France ... yesterday it was that of the UK. You may Cheer for India's rise ... some problem here and some there but that may not stop India.
4. You will be looking our GDP (Gross Domestic Produce) and your answer will be there.ok
5. Yes India's economy is growing. Its very much true. And prices of commodities are also going high is also true. Growth means people have purchasing power. they have more money to spend. This makes the price of commodity more expensive. As one can afford the higher prices, as he has more money now. In developed countries commodities are more expensive than developing countries. Because of more service charges. If one is getting more pay than before means there is growth, when we compare the person with world people. If a person was getting 15000 rupees before now starts getting 30.000 rupees. Means his pay increased more. Now if he wants to fly to America its easy to fly him just paying one month pay. Before he has to pay two months pay to fly to same destination. If he wants to buy gold now he can buy more gold than before ( I know gold is becoming expensive and is because of falling dollar, but not as less value for rupee) Here the value of rupee is not devalued instead its getting strong with compared to dollar. This is the difference between Inflation and growth. Commodities are getting expensive but still people can afford or consuming more than before. This is the symbol of growth. When British left India, Indian GDP was 3.4% of world contribution. Now its more than 8.0%. One can easily notice all Indians are getting richer and richer than the previous genaration. Not from figers but from actual living standerds.
6. India is a distant country, with a millenarian culture, that only 50 years ago was a British colony, and today is a power that occurs the luxury to export software, representing the sector of more important production at the present time and the one that grants enormous margins to him of economic growth. India experience has its own shades. The industry of software has become one of the axes of the India economy. 50 years ago this country stopped being English colony. His prime minister Jawaharlal Nehru, the true creator of modern India, directed to his country and he directed towards the investment in science and technology to it. It laid the the foundations so that India is the country that is today . As soon as they obtained independence, their prime minister Nehru chose to develop a policy of development of technologies of the information, of software. 40 years ago India considered objectives. Its policy was based, among other elements, in an increase in the investment in institutes of technological development, fortification of the human resource and creation of incentives to foment that the computer science companies were successful. Computer science programs to the educative sector were gotten up, which quickly was followed of a great expansion of the education of computer science. Before the progresses that were obtaining their educative system, at beginnings of the 90 a center of development of software was created. It would not spend long time so that that industry hauls the India economy. Government and universities designed strategies to harness the obtained advantages. According to official data they exist today more than 200 universities, 8200 institutes in that Asian country. Between 1991 and the 2000 exports in software rose of 150 million dollars to 6 billion dollars. It is that the Indian independent government considered a development plan. The colonizadores never had done it since they worry neither about the development nor about the education of the towns. India became independent only 50 years ago, but it is to the height of the great powers . Nevertheless, although still they maintain stops illiteracy indices, the increasing tendency of his investment in education, that surpasses to its military expenses, could revert this situation. Also, although many not yet have access to Internet, a plan exists destined to equip with it the scholastic population excluded from its profits. That plan looks for to give cover of Internet to schools of the moved away zones more of that extensive country, of the zones of border. And if we almost considered that the country is inhabited by of more than billion people, the sixth part of the world-wide population, this task does not have to be far from easy. Of another side, its telephone system is to a large extent into the hands of the State, this will make the extension easier of the system to the schools. The costs will be much smaller, assures. Finally current recession is not affecting India.