PPP and per capita.

"Whether one is a developed country or not is a matter of definition," wrote Surjit S Bhalla. "Whatever the definition, we know that it cannot be the size of the economy, nor can it be in dollar terms." "If we go by quality of life, it must incorporate the constituents of freedom, political and economic, ie democracy and openness, health, education - and per capita income. Income must be measured in constant per capita PPP (purchasing power parity)." PPP is calculated by taking the price of a basket of goods in local currencies in different countries and then converting it to dollars. ET. By using this metric China becomes the richest country in the world with a GDP by PPP of $25.3 trillion while India's GDP jumps to $10.5 trillion, Investopedia, from the nominal GDP estimated at $3.5 trillion on 31 March 2023, according to the Economic Survey. ET. Why is Bhalla so keen on PPP? Because, in nominal terms, average income in India was $2,150 in 2021, lower than that of Bangladesh at $2,570, and way below the US at $70,930. World Data. But, using PPP, India's per capita income was $6,067 in 2021-22, "about a third of a developed country's level of PPP $18,000." From 1991-2019, India's per capita GDP in constant PPP grew at 4.5% while that of the world excluding India grew at 2.2%. So, we need to grow at 4.1% over the next 26 years to become a developed country. How facile! Per capita GDP is not the same as per capita income, and per capita calculation gives an average which hides the enormous difference in wealth, education and access to healthcare in India. "Oxfam India's report on inequality in India...finds that just 5 percent of Indians own more than 60 percent of the country's wealth, while the bottom 50 percent of the population possess only 3 percent of the wealth." TIE. "The combined wealth of India's 100 richest has touched $660 billion (Rs 54.12 lakh crore) - an amount that could fund the entire Union Budget for more than 18 months." Spending on healthcare has been between 1.2% and 1.4% of GDP from 2014 to 2020, rising to 2.1% in 2021-22 but "preliminary indicators suggest suggest that healthcare expenditure is likely to be 1.3%-1.4% of GDP in 2022-23," wrote Rajrishi Singhal. Much lower than 2.5% suggested by The National Health Policy of 2017. Expenditure on education has remained at 2.8% of GDP from 2014-2020, rising to 3.1% in 2020-2022. Half of the 6% of GDP suggested in the 1968 education policy. As for freedom and democracy, the Unlawful Activities (Prevention) Act (UAPA) empowers the authorities to search, seize and arrest anybody without a warrant and imprison such a person without having to file charges. DH. Meanwhile, India is at 107th on the 2022 Global Hunger Index. If Bhalla is trying to prove his patriotism by trying to muddy the waters with PPP and per capita, he should remember that our nation's motto is 'Satyameva Jayate'. Which means 'Truth Alone Triumphs'.