The GDP of India is 5 trillion, but people are poor while the GDP of Norway is 0.5 trillion but the people are rich. Why?
Richard Kenneth Eng
India’s population is 1,400 million. Norway’s population is 5 million. It’s simple math. There’s not enough Indian GDP to go around for its huge population.
India is a develo country, so it is not rich. It may take another half century for India to become rich.
However, India’s economic development is hampered by several things:
A largely corrupt and incompetent government.
Extreme bureaucracy and over-regulation.
Hostility to foreign companies (e.g., unreasonable fines and expropriation).
Nationwide ethnic strife.
Human rights issues.
The caste system.
I am not optimistic.
India's GDP for 2022 is $3.4 trillion USD vs Norway at $580 billion. India's GDP is 6 times larger.
India's GDP per capita is $2,389, Norways GDP per capita is $106,149. Norwegian people are 44 times more productive compared to Indians.
Norway's top industries are oil and gas, hydro-power and aquaculture and minerals.
Nearly half of Indian workers work in agriculture and their productivity is low in comparison to not just Norway but also to compared to other Asian countries.
The population is the reason. More people ,less the per capita income and assets
The GDP of India is more than the GDP of UK, but the population of India is far more than that of UK
If the cake is divided among more people ,each will get less
Krishna Kumar Subramanian
GDP per capita decides how wealthy the average citizen is.
That figure is right now pretty low for India.
Chi Chi Adipati
India's GDP is 5 trillion but people are poor whereas Norway's GDP is 0.5 trillion but people are rich. This is because there are several factors that affect the level of welfare of a country, not only GDP. These factors include:
* **Inefficiencies in the distribution of wealth.** Even though India has a large GDP, its wealth is not distributed evenly. Most of India's wealth is concentrated in the hands of a few wealthy people, while the vast majority of Indians live in poverty.
* **Corruption.** Corruption is a big problem in India. Corruption causes the loss of billions of dollars of government revenue, which should be used to improve the welfare of the people.
* **Inequality.** Inequality is a big problem in India. India has the highest level of inequality in the world, with the richest 1% owning more than 50% of the country's wealth.
* **Lack of infrastructure.** India has poor infrastructure, which makes it difficult for businesses to thrive and create jobs.
* **Poor education.** India has low levels of education, which makes it difficult for people to find good jobs and earn higher incomes.
Norway, on the other hand, has a high level of welfare because it has a strong economic system, clean government, and a low level of inequality. Norway also has rich natural resources, which are used to finance social programs that benefit its people.
Norway has a population of 50 lakh peeps.
Himachal Pradesh is 68 lakh peeps.
The GDP of HP is Rs 2 lakh crore or around 200 billion which is 0.2 trillion.
Indians are poor.
What are the benefits of a high GDP for India's poor?
High GDP means just that, that the country’s GDP is high. It means there is more money to go around. It is a different matter if it goes around (or gets stored as gold offerings in temple treasures), or who gets how much. The latter is measured by the G coefficient.
There was a trend starting in early 1980s, a thinking that said high GDP will have a trickle down effect and lift everybody up. This was one of the principles of “Reaganomics”. While America saw rapid growth in his time (and later), 99% of Americans are still waiting for the trickle down 35 years later.
India, comparatively, had a very poor ranking. Our GDP in 1991 was a mere $283 billion. This has grown to over $2,300 billion now, which means there is more money to play with. The UPA govts’ programs like MG NREGA and half a dozen others were designed to see that the benefits flow down to the lowest levels of society. Are pumped down, rather than wait for organic seepage.
The current govt does not believe in that. They think the poor are poor because they are lazy, that it is entirely their fault. The vulnerable are so because of their own wrong actions.
Why is india so poor despite being the third economically strongest country (in GDP terms)?
India is not poor because of black money as few mentioned here . After all that's just 15% tax . People use black money as an excuse to explain how India's poor instead of explaining real reason probably either to motivate fellow Indians or hide the ugly fact .
India is not actually a poor country . India has everything like military , research labs , education , technology , fertile soil , natural medicinal forests and many rare species are in India and most importantly India also has economy and big players like Reliance and TATA . And India has it's authentic culture in various parts . Indian people are probably the only descendants of one of the oldest living civilizations .
Even today India is great .It takes more than 200 years of exploitation to actually make India a poor country. Poor English men never realised that .
It's just that people of this country are over populated that's it . If you eliminate the irrelevant drunkard people that constitute almost 500 million of Indian population then India would rank as high as Average European countries in development index . And this is the ugly fact .
Though India is no.10 in the list of countries by GDP, one has to know that 52% of 125 Cr population's daily earning is less than Rs.100.This takes India to lower side in respect of per capita GDP.
Now lets see why India harbers more poor peoples on the earth ,--
In India cash transaction is around 60% whereas the bank transaction is around only 40%.This is mainly due to availability of high denomination currency notes 500&1000 .people prefer cash transaction over bank transaction because_of easyness as well as to keep transaction out_of tax network .Since no records of cash transaction remains ,govt dose not get tax revenue and budget becames 'deficit'.To increase the revenue govt increases tax rate resulting in more cash transactions .This is vicious circle .
Due to availability of high denomination notes process of creation of black money and corruption becames very easy .Every year Rs.5 lacCr is being sypheoned out_of country from ill-legal and illicet businesses apart_from pouring black money in the country for purchase of gold ,diamonds and donations to political parties .This amount is more than country's defence budget .Ultimately this results in deficit budget .No funds remained withgovt for education ,health ,social security of citizens ,infrastructure ,social welfare etc. This results into economic disparity resulting in harbouring maxmum poor people on the earth.