Comparing Indian business

[pclaus at s1.csuhayward.edu]

The figures on 'exchange rate' are further distorted by the
fact that while some sectors of the economy are NOT 'translatable'
some ARE (or nearly so).  Ie. while labor costs are much lower
in India than in most Western countries, many comodity costs are
nearly equivalent.  Or, while Indian-produced goods are relatively
cheap (eg. soft drinks) Import items are expensive. Or, government-
subsidised goods are (obviously) cheap (eg. many grains, electricity,
etc.) non-subsidised goods are expensive.  All of this makes gross
translation of even relative income/expenditure difficult unless
one compares individuals at particular life-styles and expectations.
Ironically, the Indian village farmer DOES perhaps come out better-off
than the American family farmer; but the the Indian pensioned middle-
class is 'less well-off' than an American equivalent. (Speaking of
a farmer holding say 100 acres of land in both America and India).

Peter Claus