India vs Pakistan

Topics: Inflation, Purchasing power parity, Gross domestic product Pages: 3 (799 words) Published: November 16, 2011

Prepared By:
Tarun Gupta (119278005)
Roy Paul Mathew (119278134)

To compare any two countries, It is important to discuss about their economic growth and stability. This report compares India and Pakistan in macroeconomic view. We will discuss about GDPs , PPPs, unemployment rate , inflation rate of both the countries.

Gross Domestic Product: Gross domestic product is the total value of goods and services produced inside any geographic region. There are two kinds of GDP indicators.1) Nominal GDP 2) GDP(PPP). As per 2010 data India has nominal GDP of $1.843 trillion and GDP(PPP) of $ 4.468 trillion while Pakistan has nominal GDP of $ 202.831 billion and GDP(PPP) of $482.913 billion. Indian GDP has 16-17% share of agriculture , 28-29 % share of Industries and large chunk of 52-53 % share goes to services industry. While Agriculture takes 23-24% share in Pakistan’s GDP , Industries take almost 25-26 % share and maximum goes to 50-51 % goes to services. Indian GDP has a growth rate of 10.4% while Pakistan has a growth rate of 4.8%. In India GDP per capita stands at $1532 while Pakistan has GDP per capita $ 1197.

Inflation Rate: Inflation rate is a measure by which we measure the change in prices of consumer goods. In India we calculate inflation by change in WPI(wholesale price index).While the Pakistan government uses CPI(consumer price index) as a measure to calculate inflation rate. As per 2010 data India is facing a inflation rate of 10% while the Pakistan is under 13% inflation. In India the main driver of inflation is food inflation. Inflation in Pakistan is said to be a monetary phenomenon while there also food inflation play a big role in high inflation . The recent slow-down in inflation has been due to better availability of food items, increased sugar production .The graph () compares India and Pakistan ‘s inflation rate trend for past 50 years ....
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