India ranks 4th among global economies

rkusenet The GDP is calculated in USD. When a country's currency devalues, its GDP also gets revised downwards despite the economic activity being the same. India has an insulated economy -wherein it neither exports nor imports much when compared the economic activity that happens within the country. So the exchange rate and buttociated calculations don't reflect the true nature of the economy.

The US govt is pressuring China to revalue its Yuan by at least 25%. That would mean a 25% revision in its GDP at the click of a button.

It is just a hypothetical calculation. If the currency gets revalued upwards, exports incl. offshroed work will become uncompebreastive. Some export-oreiented jobs will be destroyed -while oters catering to a more prosperous middle clbutt will be created. But it will lead to a situation wherein purchasing power of individuals in diff. countries will be more so a function of their productivity and less so a function of where they are located.

That is because of the cheap tricks played by govts in the currency market. Like stock brokers, even govts will see the world catch up with their modus operandi.

Yeah -it will help the proponents of the strong dollar policy.

regards -kamal