I just posted this thought to my blog:
<http://platosbeard.org/archives/273>
Summary: Indian private consumption, as per BW, is at about (or
accounts for) 60% of GDP, besting Japan and Germany, and leaving its
competitor China in the dust (< 40%).
Question: Apart from the implication on the source of GDP (which in
itself is an interesting question: is this a good thing or not?),
what does this say about private spending? Is it valid for me to
equate this to a low savings rate? By consumption I am assuming is
meant actual consumption (goods and services) and not investment. Is
there more to this than my simple understanding?
--ravi
