Assume If 100 rs note moves atleast in ten hand in month it generates 100x10=1000 rs in a year it will generates 12x10x100=12000 rs in this way 100 Bilion will became 12000 billion in a year 200 billion USD will became 24000Billion = 24 trilion USD
There are 9 lack crores rs(200 Billions USD) note in circulation in India
From above Calculation Our Indian GDP is around 24 Trilion USD but our govt says it is 1430 Billion Usd =1.430 trillion USD
if we put this fact than our nation will became world largest economy in the world
No 1 USA GDP is around 14.6 Trillion No 2 China GDP is 5.8 Trillion No 3 Japan GDP is 5.4 Trillion all countries will be left behind
In Past,Present, Future we are the world largest economy but because of our poltician we are told that we are poor nation and forced to accept this that is why these poltician were able to moove 1500 billion in Swiss accounts
Re: we are no one economy of the world
by Ravi on Mar 08, 2011 01:10 AM
The basis of calculation is absolutely wrong. A wrong accountant can bring the prosperous company to bankruptcy. And can make a loss making entity a covered up prosperous company which in turn creates vaccum within. The assumption that a 100 rupee note gets exchanged 10 times in a month is questionable. Number two, not all exchanges are through cash. Transactions at retail level where there is no huge amount involved is mostly cash. But the major chunk of transactions happens at wholesale level between businesses. so just forget about this calculation.
The best way is to segregate all bank transactions into operating cash flow, financing cash flow and investment cash flows. Out of these just consider Operating cash flows. Then take into account all the physical cash, present in the whole economy. Thats a tricky task. Expectations can go wild. Anyone who tends to prove a point can play around with these numbers. I stop at this point because i dont want to assume any number. Lets take what Mr Rajeev gives and compare with RBI'snumber. Lets average it out by even addign baba ramdev's fantasy numbers too. Inteersting :). And assuming that cash turnover ratio to be two or three, we can reasonably come to a exact number on GDP. The absolute number would be quantifying the gross national product, but we all know its not correct. To come to almost accurate figures lets wait for few years while we achieve low tax rates and less cash transactions.
Re: Re: we are no one economy of the world
by jibraaiyl@rediffmail.com on Mar 10, 2011 10:50 AM
Yes,the Accountant values Land,Buildings at nominal rates below govt value,which is far lesser than market value.Cash payments are made actually but written nominally when compared to actual.Black money is playing the dance of death with the economy and the poor people of India which the RICH and powerful politicians ,bureaucrats extort.
Re: Re: we are no one economy of the world
by alok Misra on Mar 07, 2011 03:39 PM
He is not very much wrong.My own estimate isthat India has three ties the recoded economyQuestion is How? Well it is the black money that is in circulation.His figure of no of notes in circulation is not correct.Because there re transfers of property on benami names in which no transaction takes place.Also if stocksare kep in large quantities and not shown anywhere this is not really cash perse!People holding large properties could transact them without cash.Then the holdings in Gold. Black money is hardly ever kept in the from of notes unless the fellow is a novice.That is why it is so difficult to catch!Part of this money is probably going out regularly.So in reality if not the biggest it is definetly not smaller than China.This fact is known to the world and that is why they are so keen on investing here or rather not so keen after all.Becuse they know that the day this money tart coming out - and it will come out whatever they are thinking of investing here will be a very small part of this money!
