The GDP Stakes: India Vs UK – The Jewel and the Crown

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The GDP Stakes: India Vs UK

India’s Gross Domestic Product has reached about $ 2.30 Trillion. UK’s GDP is about $2.29 Trillion. UK’s GDP has been affected by the fall in the value of the pound relative to the US Dollar on account of the Brexit decision. Hence India has been able to inch ahead of the UK in macro economic terms. India now is at 5th place, while the UK has dropped to the 6th. Only the US, China, Japan and Germany are ahead of India. US and China by along way in terms of GDP.

All Still Far From Well

This news / development is heartening surely. Afterall, India wasn’t expected to overtake the UK in GDP before the year 2020. But there are still far too many parameters that India needs to be cognizant of. For one, the per capita GDP is a measure where the UK is still miles ahead of India. By this yardstick, many other developing countries also would be ahead of India.

Cool Chilli’s Comments

GDP, India, Europe, Great Britain, UK, China,
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Col Northcote Parkinson the creator of Parkinson’s Law,  in his eminently readable book, East and West, juxtaposed the fluctuating fortunes of the Orient and the Occident.

Economist Angus Maddison has tracked the economic contribution of various continents/regions over the past two thousand years (The Christian Era). China and India have contributed more than 50% of the global GDP over a major part of the two thousand years. As recently as the 1700s, India contributed almost a quarter.

The Jewel in the Crown

Once the British East India Company and later the Crown, took hold of the sub-continent, it slowly exploited or strangled the Indian eco-system. The trader became master and arbiter of the sub-continent’s fortunes. India became the Jewel in the British Crown.

The Haves and the Have-nots.

A big concern for the decision makers managing today’s India is the growing Income Disparity in the country. This impacts the per capita income or GDP as seen above.  While those with power and riches increase their influence and benefits thereof, the lesser privileged continue struggling in the depths of their despair. Major contributions to this disparity would be corruption, cronyism and complacence with status quo.

In ending, we hope that the increasing push towards transparency and better governance practices would help India improve on Income Disparity. While India has a long way to go, Mr Modi has shown the gumption to take tough calls. Results would follow maybe slowly but surely.

In the golden ages, much before the Christian Era and for a long while into it, India was considered a land of riches where Milk/Honey flowed and there was little suffering for the common man. There is no reason why India and its citizens cannot hope to wake one day into the same Dawn of two thousand years’ vintage.

It is also the team’s hope that at a much broader level, not only will India become wealthier, but also trigger better Emotional and Spiritual Quotient all around. The ancient Indian saying of ‘Vaasudhaiva Kutumbakam’ (the world is one Family) can actually become reality. GDP as Global Development and Peace reads so much better!

Related Reading

Increasing Income Inequality in India

Economic History of India 

Dacca Muslin