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Assignment 2: Economic Indicator Comparison Between India and Papua New Guinea - Sunil Shingala (189278034)

India has a significantly larger GDP and population than Papua New Guinea. While GDP per capita is similar between the two countries based on nominal values, India's GDP per capita is about twice as high when adjusted for purchasing power parity. Papua New Guinea has a higher unemployment rate and minimum wage than India. Inflation is lower in India, providing more stable prices. India also has higher levels of broad money and foreign exchange reserves compared to Papua New Guinea. While Papua New Guinea runs a trade surplus, India has a sizable trade deficit. Both countries face budget deficits, but India has a significantly higher public debt level relative to GDP.

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48 views

Assignment 2: Economic Indicator Comparison Between India and Papua New Guinea - Sunil Shingala (189278034)

India has a significantly larger GDP and population than Papua New Guinea. While GDP per capita is similar between the two countries based on nominal values, India's GDP per capita is about twice as high when adjusted for purchasing power parity. Papua New Guinea has a higher unemployment rate and minimum wage than India. Inflation is lower in India, providing more stable prices. India also has higher levels of broad money and foreign exchange reserves compared to Papua New Guinea. While Papua New Guinea runs a trade surplus, India has a sizable trade deficit. Both countries face budget deficits, but India has a significantly higher public debt level relative to GDP.

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Assignment 2: Economic Indicator Comparison between India and Papua New

Guinea --Sunil Shingala (189278034)


Economic Indicators
GDP Papua New Guinea India Comments
GDP Annual Growth Rate 2.2 % 8.2 % GDP per capita is good indicator to
GDP 21.09 USD Billion $2.611 trillion compare two countries’ wellbeing
2402 USD $2597 USD and both countries GDP per capita
GDP per capita
is almost same, but by PPP basis
GDP From Agriculture 22.1% 15.11
India’s wellbeing is as twice than
GDP From Construction 42.9% 31.12% PNG. Real exchange rate of India is
GDP From Manufacturing 35% 53.77% lower than the nominal rate.
GDP per capita PPP 3823 $USD 6427 $USD
Labour Papua New Guinea India India has higher unemployment
3.6 % 8.8 % than PNG largely due to very large
Unemployment Rate population which shows unused
41.9 $/Week 18 $/Week labour capacity utilization.
Minimum Wages
Labour Force 3.681 million 521.9 Million
Prices Papua New Guinea India Inflation of India is lower which
Inflation Rate 5.2 % 3.77 % indicate stable pricing and helps in
0.3 % 0.51 % stabilizing economy.
Food Inflation
Money Papua New Guinea India India has much higher broad
Interest Rate 6.25 % 9.45 % money than PNG which shows
0.6 % 6.5% higher multiplier effect and
Deposit Interest Rate
increased bank lending.
$1779 USD Million 392.080 USD
PNG is Net export country so
Foreign Exchange Reserves Billion
higher exchange rate helps it while
Narrow Money $5.495 billion $429.3 billion
as India is net importer country so
Broad Money $7.649 billion $2.063 trillion high exchange rate helps it to
3.25 Kina 72.1 Rupee improve export.
Exchange rate( 1 USD =)
Trade Papua New Guinea India PNG has net export country while
Balance of Trade $7.648 billion $-127.5 billion India has net import country.
$9.526 billion $299.3 billion Which increases trade deficit of
Exports
the country.
Imports $1.878 billion $426.8 billion
Current Account $3.966 billion $ -51.21 billion
Current Account to GDP 15.3 % -1.9 %
Gold Reserves 2 Tonnes 573 Tonnes
Government Budget Papua New Guinea India Both country’s government
$ 3.649 Billion $229.3 billion spending is higher than the total
Revenue revenue results in budget deficit
Expenditure $4.763 billion $330.3 billion and increase in total debt.
-5.1% of GDP -4.1% of GDP
Budget Surplus & deficit
32.6% of GDP 70.2% of GDP
Public Debt
Taxes Papua New Guinea India India has higher corporate tax
Corporate Tax Rate 30 % 34.61 % reduce corporate profit while PNG
42 % 35.88 % has higher personal tax.
Personal Income Tax Rate

Sources: https://www.cia.gov/library/publications/the-world-factbook/geos/print_pp.html
https://www.cia.gov/library/publications/the-world-factbook/geos/in.html
Sources: https://www.cia.gov/library/publications/the-world-factbook/geos/print_pp.html
https://www.cia.gov/library/publications/the-world-factbook/geos/in.html

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