The Indian budget every year has always been an eagerly awaited event. For many decades, the best minds in economics, finance, tax, business and industry throng the media house to analyze the provisions shared by the Financial Minister.
Sometimes major events completely disconnected may be data points for the plans of the different powers around the world. The challenge is to discern what purpose they serve? More critically, what are we moving towards?
When the US Ambassador threatened India's "Strategic Autonomy" policy over India's friendship with Russia - much more than meets the eye was at stake. Let us unpack how the Ukraine war has fundamentally changed the US and the world. And why are we here anyway?
The Global GDP is changing as we move forward. China which started behind India in 1970s and because of the opening up of its economy overtook India and grew at incredible double digit rates to become the second largest economy in the worl, will continue its march forward. So will US – which will keep rising steadily and above the global average.
Meanwhile, as China grows – albeit at a slower rate than it has been growing hitherto – further, India will be one of the fastest growing economy
So Aron Strandberg took the data from the ERS International Macroeconomic Data Set to analyze the changes in GDP distribution between 1970 and 2030 specifically for the United States, China and India.
India And China: Historical Dominance of Global Economy
If we look back into the history, we find that India and China were #1 and #2 economies by GDP based on Purchasing Power Parity for most part of the 2000 year history from 1 AD onwards. Derek Thompson says.
I’m guessing that your first question, if you started scanning from the left, is:Wait, India was by far the biggest economy at the dawn of AD? Yup, India.
In Year 1, India and China were home to one-third and one-quarter of the world’s population, respectively. It’s hardly surprising, then, that they also commanded one-third and one-quarter of the world’s economy, respectively.
Here is a graph that helps to bring the data together.
[visualizer id=”28950″] Until 1500’s India was the biggest economy in the world. And until the 1700s, India and China collectively accounted for 50% of the world’s GDP! It is with that context that one needs to see where they both are moving towards. Will these two economies reach the levels that they historically enjoyed? For India, the main exports were the Spices, Gold and Gems; and in the current economy it is broadly speaking, the Technology skills.
The Indian budget every year has always been an eagerly awaited event. For many decades, the best minds in economics, finance, tax, business and industry throng the media house to analyze the provisions shared by the Financial Minister.
When the US Ambassador threatened India's "Strategic Autonomy" policy over India's friendship with Russia - much more than meets the eye was at stake. Let us unpack how the Ukraine war has fundamentally changed the US and the world. And why are we here anyway?
This visit of India left me with many questions. Many observations and inputs from different people and sections. Food for thought that I have tried to contemplate on and make sense of. Sharing all that with you.
When you analyze the last 60 years of the economic miracles of Singapore, South Korea and Malaysia versus the continued impoverished Indian economy, you get very interesting lessons. Can Indians have the wherewithal in them to do in one generation so that the coming generations may rise?
Every Sunday AM (US Time)/ PM (India time), we send out a weekly detailed newsletter. We also share other insightful notes during the week. Its free. Do sign up and share with friends!