Research assignment:

Running head: INDIA AND UNITED STATES GDP 1

INDIA AND UNITED STATES GDP 4

India and United States GDP

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GDP and GDP Per Capita

India is one of the fast growing economies in the world with current gross domestic product of approximately $2.264 trillion in 2016. The country has a gross domestic per capita of $1,709.39 with annual gross domestic product growth rate of 7.1%. These statistics shows the fact that the Indian economy is fast growing and has stabilized over the years based on the annual gross domestic product growth rate. The United States has a significant higher economic stability having a gross domestic product of approximately $18.57 with GDP per capita of $57,466. The GDP annual growth rate is at 1.6%. From the figures it is clear that the Indian economy is growing very fast despite a lower GDP per capita which is attributed to its high population of approximately 1.3 billion people compared to the united states population which is approximately 323 million (World Bank. (n.d.).

Standards of living

The United States has a higher standard of living than India. This is because United States has a higher GDP per capita that is a measure of standards of living. Per capita GDP is measure of the country’s total output in terms of goods and services which is the gross domestic product divided by the number of people in the country. United States has GDP per capita of $57,466 compared to India’s $1,709.39 that is very small.

The rate of inflation

The recent inflation rate for 2017 in India was significantly higher at the rate of 4.8% that was attributed to increase in prices of common basic goods. Within the same period, United States had an inflation rate of 2.1% that was slightly higher than the required inflation rate of 2% (Oladosu et.al., 2018).

Growth rate and factors influencing economy growth

India has a very high rate of growth that averages 7.1% GDP growth compared to the United States, which has low GDP growth rate of 1.6%. As a result, the Indian economy is growing very fast which has been boosted by the setup of different industries as well as available cheaper costs of production, which are positive influencing economic growth in India. The focus on multiple industries within the economy has developed a well-engaged environment where there is no over-reliant on a single industry. The country has developed agricultural, fishing and forestry industries through technological integration to ensure high focus on economic growth (Lee & Yue, 2017).

References

Lee, J., & Yue, C. (2017). Impacts of the US dollar (USD) exchange rate on economic growth and the environment in the United States. Energy Economics, 64, 170-176.

Lynn, R., & Yadav, P. (2015). Differences in cognitive ability, per capita income, infant mortality, fertility and latitude across the states of India. Intelligence, 49, 179-185.

Oladosu, G. A., Leiby, P. N., Bowman, D. C., Uría-Martínez, R., & Johnson, M. M. (2018). Impacts of oil price shocks on the United States economy: A meta-analysis of the oil price elasticity of GDP for net oil-importing economies. Energy Policy, 115, 523-544.