[Reader-list] Highlights of PM’s Independence Day speech - 198

[Kshmendra Kaul]

Dear Rakesh
 
You comment "it means that 80% of the Indians at least live below Rs. 80 per day, which is factually true going by the NCEUS report" was ..... an amusing play of words.
 
The World Bank usually gives figures on the basis of PPP. 
 
Your currency conversion for In Rs under PPP is not borne out by any known data (to the best of my info). From where did you pick up the rate of $1 = Rs 10?
 
For the International Dollar the factor in 2008 is generally reported as between 2.65 and 2.74 for the In Rs.
 
$2 (under PPP) would therefore at worst be around Rs 35 (nominal rate Rs 48)  and Rs 29.19 (nominal rate Rs 40).
 
You seem to be keen to accept the National Commission for Enterprises in the Unorganized Sector (NCEUS) figures as being correct. Your choice. 
 
Kshmendra
 

--- On Sun, 8/16/09, Rakesh Iyer <rakesh.rnbdj at gmail.com> wrote:


From: Rakesh Iyer <rakesh.rnbdj at gmail.com>
Subject: Re: [Reader-list] Highlights of PM’s Independence Day speech - 198
To: "Kshmendra Kaul" <kshmendra2005 at yahoo.com>
Cc: "Sarai Reader-list" <reader-list at sarai.net>
Date: Sunday, August 16, 2009, 7:57 PM


Dear Kshamendra

A correction. The World Bank was not off the mark when it made that remark. The reason is simple. The $2 we talk about can either be in PPP or in exchange rate terms. In terms of exchange rate, since $1 generally lies in the Rs. 40-50 range, at the lowest it means that 80% of the Indians at least live below Rs. 80 per day, which is factually true going by the NCEUS report. 

On the other hand, assuming it's the PPP value, $1 is equal to Rs. 10 (or more) approximately, and therefore $2 = Rs 20, and the NCEUS report again proves it (Rs. 21.6 in urban areas is close to Rs. 20). Therefore, it is not wide off the mark.

There's a controversy regarding which is the better method to find the value of a currency, in PPP or market-exchange rates. I don't know what to say about it, hence I restrict myself to just giving this additional piece of information. 

Regards

Rakesh