Expect nothing, live frugally on surprise.

Thursday, November 13, 2008

GDP & Common Man

Please think about the following connections between GDP growth, 20K BSE, Mukesh Ambani and the common man: Does any one know how many common people have become millionaires by buying share offers of late Dhirubhai Ambani? I know of many peons, paanwalas, clerks, small traders who have. Growth spewing from market oriented competition forces better products and services which lead to help the common man. Stock market helps a first generation entrepreneur to raise funds from public.Which helps him to expand or establish business leading to more jobs for common man. Mukesh Ambani employs lakhs of people from top executive to shop floor supervisors and workers. Numbers of common man employed by him are thousand times more than top ranking executives. One large enterprise gives direct and indirect employment to hundreds of thousand people most of them common man. The process of one man becoming rich by hard work and enterprise and even luck involves jobs ops and alliances with large number of people.Most of them are common man. Now let's look at some well researched and documented facts: NCAER estimates that the number of crorepati households will go up by more than two and a half times by 2005-06 and by the end of this decade there will be 140,000 crorepati households. Nearly 2,000 of the country\'s richest families live in the rural areas while another 3,000 are residents of smaller towns. Of the 40,000 households earning between Rs 5 million and 10 million, 7000 live in rural areas and another 6,000 in the smaller towns. The smaller towns are becoming more prosperous. Consider this: Nagpur with a population of just 440,000 households and Surat with 620,000 are among the top cities with a growing segment of population earning Rs 1-2 million per year.According to a new study by the National Council of Applied Economic Research (NCAER), the country has 20,000 households in the super rich category - i.e. with annual incomes of Rs 10 million+. Of these, 5,085 families are located in the capital, New Delhi, while 4,439 are to be found in Mumbai. What comes as a surprise, though, is that many of the smaller towns like Nagpur, Surat, Jalandhar, Amritsar, Vadodara and Vijayawada have edged out metros like Kolkata and Chennai with their rising ranks of super rich households. NCAER\'s surveys show that between 1995-96 and 2001-02, the richest households of Nagpur have grown at the rate of 91% per year - taking their number from just 9 to 425. Surat , which is known for its diamond industry, is also among the top cities with super rich families. During the 1995-96 to 2001-02 periods, the city\'s super rich multiplied at an annual rate of 87% taking their numbers from 3 to 146. In comparison, Delhi and Mumbai\'s growth rate of super rich households has been a sedate 28% and 41% respectively.Delhi has 1,904 crorepatis per million families with 1 in 500 families earning an annual household income of Rs 10 million a year. The figure for Mumbai is one in 800 families. India \'s income demographics are all set to change dramatically as the upper income classes grow at a fast clip and the lowest income households (that is households earning below Rs 90,000 a year) shrink. In 1995-96, 80% of the country\'s population had an annual household income of Rs 90,000 or less than that. By the end of the decade this group will constitute about 52% of the population.The group earning more than Rs 1 million a year is expected to grow from 0.2% to 1.7% and the middle class - that is the group with household incomes of between Rs 200,000 to Rs 1 million - is expected to grow from 2.8% to 12.8%. Over a third of this middle class population is located in rural areas, while a sixth are to residents of towns with less than 500,000 people. Punjab has fewer rich people in rural areas and towns than Haryana but the density - 293 crorepatis per million families - is similar to that of Haryana. In Gujarat and Maharashtra, the number of super rich families is smaller but the density is high. For instance, small town Gujarat has a density of 200 crorepatis/million families while in the case of small town Maharashtra, it is 350. The worst performance is that of West Bengal which has only 39 crorpepatis per million families. If Kolkata's figures are not considered, the number of rich households in the state declines by nearly 80 per cent. The common man is benefited irrespective of what people with Acute Sensory Failure Syndrome say.


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