by Bill Bonner, Acting Man:
India has been the world’s favorite country for the last three years. It is believed to have superseded China as the world’s fastest growing large economy. India is expected to grow at 7.5%. Compare that to the mere 6.3% growth that China has “fallen” to. The IMF, the World Bank, and the international media have celebrated this event. Declining commodity prices and other problems in Russia, Brazil and South Africa have damaged the prospects of the BRICs (ex-India) and other emerging markets.
Commodity and currency markets have been very turbulent, and the Arab Spring has not only failed to keep up its pace, it has half-destroyed the Middle East, with fires raging in Syria, Turkey, Libya, etc. Migrant problems in Europe and the uncertain future of the US — as per the current narrative — leave India as the prime candidate to prop up global economic growth.
Is India the World’s Next Superpower?
Everything cited above is plain wrong and falsifiable by using primary school mathematics. It is little but rationalization for what seems to be emotionally gratifying.
China’s GDP is USD 11.4 trillion (2016; IMF). India’s GDP is USD 2.25 trillion (2016; IMF). These economies are in no way comparable. The Chinese economy is more than 5 times larger. China’s GDP per capita stands at USD 8,260 and that of India at USD 1,718. China’s population (1.37 billion) and the population of India (1.34 billion) are comparable — but China is five times richer on a per capita basis.
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