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As the article points out, PPP adjustment is misleading. Since GDP is disproportionately contributed to by higher income / higher COL urban areas, but PPP adjus
by ummonk 4y ago
As the article points out, PPP adjustment is misleading. Since GDP is disproportionately contributed to by higher income / higher COL urban areas, but PPP adjustment is made based on the average COL (thus mostly weighted based on rural areas), such PPP based calculations are grossly misleading.
India certainly has had a substantial rise in GDP per capita, but the absolute prosperity is nowhere near $6800 GDP per capita.
- Robotbeat 4y agoWait a minute, average cost of living would be averaged the same way that GDP is averaged. So this is just cope for the fact that reality doesn’t fit with the piece’s argument.
- ummonk 4y agoNo, it isn't averaged the same way.
- sien 4y agoThe rise in Indian nominal GDP per capita is even higher than that at PPP. https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=IN https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?location... In the year 2000 it was $US 442. It is now $2256 . A five fold increase.
- ummonk 4y agoMore specifically ~2.5 when adjusted for inflation: https://data.worldbank.org/indicator/NY.GDP.PCAP.KD?locations=IN https://data.worldbank.org/indicator/NY.GDP.PCAP.KD?location... But yes, the rise in nominal GDP per capita has indeed been very substantial (and in relative terms higher than that in PPP). It just shows a long way to go to achieve middle income status though.