Wednesday, January 23, 2013

India vs USA

So who wins this battle - the battle of prestige and might of two of the largest and the most promising nations of the world. The United States has by far the highest annual GDP in the world of around $15 trillion. China, who just surpassed Japan is the second in the world in terms of GDP with an annual value of a little over $7 trillion. India, on the other hand,is way below at the tenth spot with an annual gross domestic product value of $1.66 trillion. India certainly does not even stand a chance of comparison with US when it comes to GDP value.
But there is one thing that India can confidently boost of and bank upon for its unprecedented progress - the number of young and vibrant brains it has. India is superior not only to US but almost to every other country in the world when it comes to the total headcount of the working population. The youth of India is one of its greatest strengths. The younger generation of India is ambitious and rearing to jump into the industry and do wonders to the Indian economy and to the world at large. Indian people, all around the world, have the reputation of being intelligent, sensible and hardworking. It would be a little too early to completely belittle India's past achievements and consider it out of the race to being one of the top nations of the world. India is a comparatively younger nation and its economy is still in the nascent stage.To call India 'just-a-developing-nation' at this point of time would be a mistake. India might be poor, but it has all the capabilities to grow into a world leader and dominate at the global stage. And this is because the foundations of the country and its economy were laid strong by its forefathers.
Today we might be mocked at for having a lower standard of living but the question really is - Can we guarantee that better standard of living is a measure of satisfied and happy living???
 People in US have an overall standard of living which is way above an average Indian. But we forget to notice the other part of the  story, an average American is mentally tensed and vulnerable to the American monetary systems and its policies. The entire system of reckless and exorbitant lending spree has spawned a never ending series of debts in the American financial system. An average American, no matter how hard he works and how meticulous he is in his expenses, is bound to sink deep in debts. He innocently enters into a several fathom deep powerful and inescapable black hole of indebtedness. These debts then go on multiplying year on year and sometimes even get transferred to generations.This is the horror face of 'rich' modern America.
On the contrary, an average Indian, though does not have all the pleasures in life but he knows his spending plan well. He does not spend exorbitantly, believes less in credit cards and other sources of plastic money, is more keen on saving or spending-on-savings(viz. insurance bonds, retirement plans etc.).
But in the US this lending monster has taken a modern face and is slowly laying its roots deep into the entire monetary system of the country. The lending in US is usurious.
How can we forget the recession that spell doom to thousands of people not only in the US but all across the world!!!
Not many people know, and even fewer would agree, but this recession was a direct consequence of what economists would call 'sub-prime-lending'. Because people were lent finances they didn't even deserve  or were incapable of paying it caused an increase in the amount of money floating in the market. Easy money teased people to buy large houses, and then began the house-buying spree.The real estate companies noticing the increase in people's spending power as well as demands went on to build too many houses. This caused the prices to plummet to the floor. Thus the bubble burst and the banks were not able to recover loans. The repercussions of these small defaults collectively compiled into a big package and passed on to almost every business entity in the US.
Thank God!!!
The 'lending' as well as the 'spending' in India is safe.We might always vent out our rage on the policy makers of the country for making 'people-unfriendly' policies, but out of the few things they do right, this is one of them. They have controlled the roaring animal in the Indian economy just as much it is required, and unleashed it slowly and slowly so that it makes its grip tight on the entire world and does not falter or fall down in haste.

Note: The figures quoted by the author are as per the IMF data 2012

Pseudonym : h!v

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