How can India be poised to become the world’s fastest growing major economy and yet lack funds for almost every major social utility?

How can India be poised to become the world's fastest growing major economy and yet lack funds f… by @DrAwdheshSingh

Answer by Awdhesh Singh:

Imagine that there are two twin brothers named Ram and Shyam.

  • Ram has been a very poor student and he has always failed​ in examination. He scored just 10% marks in IXth class.
  • Shyam is a good student and he gets good marks in all examinations. He scored 80% marks in IXth class.

Their parents are not happy with the performances of their children and they hired the best teachers to teach them so that they can score well in the Xth board examination.

When the results were announced Ram got 20% marks while Shyam got 96% marks.

The parents are quite unhappy with Ram who failed in examination while quite happy with Shyam who scored 96% marks and got first rank in his school.

Ram challenges his parents and called them biased. Ram argues that he improved 100% in just one year while his brother improved merely by 20% marks. Hence, he claim that he is a better student than Shyam and hence he must get more credit than Shyam.

What do you say for such a logical analysis of Ram?

We often get absolutely wrong picture with improper analysis of data.

British Prime Minister Benjamin Disraeli famously said once: "There are three kinds of lies: lies, damned lies, and statistics."

While India may be the fastest growing economy of the world but India is still far far behind the developed economies.

Reason : Percentages(%) are calculated on a base(per capita income) and that varies with countries.

For example the per capita income of the top countries of the world like Luxembourg ($103,199), Switzerland ($79,242) or United States ($57,436) is more than 30-60 times that of India who per capita income is merely $ 1,723. [1]

Even if these developed countries grow by just 2%, their actual growth is much more than India with even 6-9% growth.

Are you better than Balaji Viswanathan on Quora?

If you use the logic of fastest growing economy in context of Quora, almost 90% of the Quorans would be performing better than the top Quora writer of the world Balaji Vishwanathan.

I can prove it here and now.

  • Mr Balaji is adding around 10K-15K followers every month and getting almost 6 Million answer views every month. At present, he has 317K followers and 205 Million answer views.
  • Mr. Balaji is thus growing only at the rate of 3–5% in terms of followers and 3–4% over the answer views.
  • So, if you have just 10 followers at present 1000 answer views, you surpass Balaji by 100 times by just adding 30 followers and 3K answer views in a month.

If you think that you have become better than Balaji due to this feat, congratulations to you.

However, if you are sane, you know that it becomes far more tough to improve your relative performance as you grow up in the ladder.

India would need several decades of sustained growth to achieve the goals of getting sufficient funds for the social security at par with the developed nations.

Awdhesh Singh

Footnotes

[1] List of countries by GDP (nominal) per capita – Wikipedia

How can India be poised to become the world's fastest growing major economy and yet lack funds for almost every major social utility?

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