India is ranked 4th on GDP. But, Singapore is ranked 27th.
So is India richer than Singapore?
Here is a quick backstory:-
By 2047, we will be a 40 Tr$ economy.
And, by this point, we will be a developed economy.
This is a matter of great celebration. NO DOUBT.
And, we should be proud.
Having said this, if you look around, you will find that India ranks around 140th on GDP/Capita. No one seems to even talk about this number (like ever!).
This means that while India is growing GDP wise, an 'average' Indian is still quite poor.
Question comes WHY?
[1] Our GDP comes from domestic consumption, not exports. For decades we have run, trade deficit, not trade surplus (i.e we import more and export less)
[2] Singapore on the other hand, runs a trade surplus. In 2021 for example, they had a trade surplus of 126Bn$, which is almost 32% of their GDP.
[3] Interestingly, Japan, Germany, China (three countries which are ahead of us in terms of GDP), all run trade surplus (generally)
US is the only exception that runs a trade deficit (like India). But, they are a special case as they hold the reserve currency.
They can print their fake money and buy real goods from the world to the extent they want. And, still not cause a panic.
So to cut the long-story short, I don't know if India is richer than Singapore. May be it is, may be it is not.
Logically speaking, I don't know if a country can truly become rich without running a trade surplus.
Even if we look at history, this holds true. For 1700 years, India controlled 25-33% of world's wealth. Even during this phase, India was a net exporter of finished good.
Point is: Economics is complex. And, I am giving you all this info, so that you can understand the picture more holistically.
My goal is promote rational thinking. As this is becoming a dying art in the times of fake media narratives.
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Do ask the same question to yourself also - but then if you are mature enough to ask the question to self, you are mature enough to understand the importance of walking out of the argument!
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