Comparison between Pakistan and India

1. GDP:

According to the IMF the projected change in real GDP in 2011 would be  7.8% while in 2012 would be 7.5%.The current GDP of India 1,843.4 billion dollars in 2011,which is increased up to 211.4 billion dollars in 2011 if we compare it with the previous year 2010 which was 1632.0 billion dollars.If we examine the GDP historically there was a record decrease in GDP up to 908.5 billion dollars in 2006.There was increase in 2007 up to 1152.8 billion dollars, from 2006 to 2011 the GDP is consistently improving.

In India major means of economic growth is service sector. Since 1997, the average economic growth rate more than 7% and  the economy of India includes ,modern agriculture ,handicrafts ,modern industries ,traditional farming ,and multitude services. India gets half of its output from 1/3 labor force.

2. INFLATION:

According to the IMF the inflation rate in India in 2011 is 10.6% which is expected to decrease up to 8.6% in 2012.If we compare it with the previous year inflation rate which was 12%  so government is success full in reducing the inflation rate up to 1.4% in 2011 and expected to reduce more in 2012.
Inflation rate is defined as a general increase in prices calculated against a standard level of purchasing Power. The most helpful measure of inflation is CPI which measures consumer price, and the GDP defaltor, which measures as a whole economy.

3. INDUSTRIAL PRODUCTION:

According to the CIA the industrial production of India was 9.7% in 2010.if we compare it with the world industrial production rate the India get the number of 29 in the world .In September 2011 the industrial production increased up to 1.9%.In October 2011 the industrial production is decreased up to 5.1%.it measures change in out put for the industrial sector of the economy which includes mining, utilities, manufacturing etc .industrial production is the most important indicator of an economy. It is frequently used to measure inflationary pressure, when the industrial production increased then the prices of commodities suddenly increased.

 4. UNEMPLOYMENT RATE:

According to CIA the jobless rate in India was up to 10% in the fiscal year 2009-2010.India get the number of 111 in the world unemployment rate, if we compare it with the previous year 2009 which was 9.7% so, the unemployment rate is increased up to 0.3% in 2010. If we explain the labor force it is the number of people employed plus the number of unemployed but seeking for work. Non labor force consists of those people who serve in the military, and the people who associated with various institutions.

5. EXPORTS:

Indian exports increased up to 23.7% of GDP in 2011 if we compare it with previous year 2010 which was 21.4% of GDP so there is 2.3% of GDP increase in 2011.If we examine the last five years data the exports were increased up to 24.4% of GDP in 2008 which was decreased up to 3.7% of GDP in 2009, now consistently year by year making improvement. According to the CIA the exports of India in 2010 was $225.6 billion The major exports of India are petroleum products, precious stones, machinery, iron and steel, chemicals, vehicles, apparel .The major export partners in 2010 was US 12.6%, UAE 12.2%, China 8.1%, Hong Kong 4.1% .

6. IMPORTS:

According to the CIA the imports of India in 2010 was $357.7 billion .The major exports of India are crude oil, precious stones, machinery, fertilizer, iron and steel, chemicals .Because of poverty in oil resources, it is largely forced to depends on coal and import  oil from the foreign countries to meet its energy needs. The major import partners in 2010 was China 12.4%, UAE 6.5%, Australia 4.5%, Saudi Arabia 5.8% ,US 5.7%,  .

7. CURRENT ACCOUNT BALANCE:

The current account deficit of India in second quarter of 2011 was -46.2 Billion USD. At the end of the year 2011 the India’s current account deficit is -40,274 million dollars. Current account deficit is -2.2% of GDP .If we compare it with the previous year 2010 was $ -42807.so the current account balance is reduced up to -0.4% in 2011.

8.EXCHANGE RATES:

 According to the CIA the exchange rate of India in 2010 was 46.163 Indian rupee in per US$ if we compare it with the previous year which was 48.405 Indian rupees in per US $It means that in the year 2009 we paid 2.242 Indian rupee more to purchase one dollar so in the year 2010 Indian rupee made recovery from 48.405 to 46.163 Indian rupee against per US$.In 2006 the exchange rate was 45.3 Indian rupee against per US$. Which made recovery in 2007 and the per US $ purchase 41.487 Indian rupee so Indian rupee make great improvement against US$.

9. BALANCE OF TRADE:

In October 2011 the India’s Balance of Trade deficit is equivalent 19644 Million USD. The major exports of India are textiles,chemicals,gems and jewelary,engineering goods, leather manufactures and services so, it is largely dependent on coal and importing oil from the foreign countries to fulfill their energy needs. Major import of India are machinery , fertilizers,chemicals,etc from the trading partner such as China, The United States, European Union, and UAE.

10.INDIA INTEREST RATE:

The latest interest rate on the 10 year Govt. bonds is 9.03% in India. Reserve Bank of India central board of directors are authorized to take the decision regarding the interest rate. The benchmark interest rate is also called official interest rate. From 2000 to 2010, the average interest rate of India was 5.82% .If we examine it historically it increased up to 14.50% in august in august of 2000.

11. BUSINESS CONFIDENCE:

In April 2011 , the business confidence was 145.2 which is reduced on July 2011 up to  145.2. MasterCard Worldwide Index of Business Confidence which measures the level of optimism of the people who runs industries in the country are they satisfied with the performance of the economy .Data is collected through survey , questionnaire ,and that data is sent to the industries which performance is very poor in the economy.

12.DEBT:

According to the CIA the external debt of India in 2011 is $ 316.9 billion  if we compare it with the previous year 2010  which was $ 251.9 billion so India’s external debt is increased up to $65 billion in 2011.
Public debt in 2010 was 50.6% of GDP ,if we compare it with the previous year the public debt in 2009 was 53.4% of GDP which was reduced up to 2.8% of GDP in 2010.

13.BUDGET:

According to CIA in 2010 the India’s budget revenue is expected $183.6billion and expenditures would be $269 billion .Taxes and other revenues  in 2010 would be 11.9% of GDP if we compare it with world wide budgets  India gets the number of 199 .The budget deficit in 2010-5.6% of GDP if we compare it with world wide Budget deficit  India gets the number of 199.

GDP-PAKISTAN VS INDIA:

Gross domestic product is the market value of all finished goods and services produced during a year with in the geographical boundaries of a nation .It does not include the income earned by sources in foreign countries but include the income of foreigners working in an economy.
India is an emerging economy of the world which is our neighboring country, which is making economic progress vary rapidly as compared to Pakistan .According to the IMF the projected change in real GDP in 2011 would be  7.8% while in 2012 would be 7.5%.The current GDP of India 1,843.4 billion dollars in 2011,which is increased up to 211.4 billion dollars in 2011 if we compare it with the previous year 2010 which was 1632.0 billion dollars.
In accordance to the World Bank India GDP is 1729 billion dollars or 2.79% of world economy. If we compare it  with Pakistan the GDP of Pakistan  is 175 billion dollars or 0.28% of the world economy  which is very much lesser than India. If we examine GDP of both countries  historically from 1960 to 2010 the average GDP of India was 339.84 billion dollars which is historically increased up to 1729.01 billion dollars in December 2010 and there was  a record low of 36.61 billion dollars in December 1960.In contrast if we examine historically the GDP of Pakistan the average annual GDP growth was 5% which was historically increased up to 10.22% in June 1954 and there was a record decline on June 1952 which was up to -1.80%
Pakistan economy faced many internal political disputes ,population of Pakistan is growing vary rapidly, mixture of foreign investment, and ongoing confrontation with India .IMF has approved the Pakistan’s  Govt. policies and provide assistance to access in the global markets .

GNP-INDIA VS PAKISTAN:

GNP or GNI is the market value of all final goods and services produced by a nation during a year ,in and outside of the nation.
GNP or GNI includes the production of goods and services taking place out side the country by the resources of the country .we can arrive at GNP from GDP by the following equation:
GNP=GDP-income of foreign working in a country + income of countrymen working abroad.
According to the World Bank which issued the statistics in 2011,The India’s GNP,PPP(Purchasing power parity) in US$  was  4170853549191.48 in 2010.In terms of  Atlas method Indian GNI $1330 in 2010.  According to the World Bank the GNI ,PPP of India in 2008 was 3341819594479.66. In India major means of economic growth is service sector. Since 1997, the average economic growth rate more than 7%  and the poverty level is reduced  up to 10% point. Economy of India includes, modern agriculture, handicrafts, modern industries, traditional farming ,and multitude services. India gets half of its output from 1/3 labor force.
According to the World Bank which issued the statistics in 2011,The India’s GNP,PPP(Purchasing power parity) in US$  was  482261234579.07 in 2010.In terms of  Atlas method Indian GNI $1330 in 2010.According to the World Bank the GNI ,PPP of India in 2008 was 430258766979.28 . Pakistan economy faced many internal political disputes, population of Pakistan is growing vary rapidly, mixture of foreign investment, and ongoing confrontation with India .IMF has approved the Pakistan’s Govt. policies and provide assistance to access in the global markets.

PER CAPITA INCOME (PCI) -INDIA VS PAKISTAN:

It is the average income of an individual citizen and is defined as :
PCI = Total National Income divided by Population.
In the fiscal year 2010-2011 the nominal per capita income of Pakistan was increased up to 16.9%  or $1254 if we compare it with fiscal year 2009-2010 which was $1073 .The per capita income of Pakistan in terms of  PPP is $ 3135.The per capita GDP increased  up to 0.7%.the tremendous  increase in the nominal per capita income up to 16.9%.it states the combination of  double digit inflation in the country and rupee is stable exchange rate with US $ the rupee lose its position in the ground of major currencies of the world. The per capita income of India in 2011 in terms of US$  is  $1527 ,if we compare it with the previous year which was $ 1371 so we can say that  there was $156 is increased in per capita income. The current year per capita income in terms of PPP which is $3703 in 2011.According to the Indian media ‘THE ECONOMIC TIMES’ THE Govt. of India issued the revised data on May 31, 2011 that per capita income of India is grow up to 17.9% in the fiscal year 2010-2011.When we compare the both countries data then we reach at the conclusion that India’s per capita income increased up to 1%  in  2011 as compared to Pakistan PCI .The India’s per capita income in 2011 in  terms of  US$ and in terms of PPP  is greater than Pakistan.