Hotmail founder Sabeer Bhatia has suggested that India needs to rethink how it tracks economic growth if it wants to compete with China. Speaking on a podcast, he questioned the accuracy of India’s GDP figures and urged a shift toward measuring real productivity and effort, not just financial transactions.
“Our GDP is all wrong. And I just—you just need two seconds to take a look at how they are computing GDP,” Bhatia said.
He explained that simply exchanging money doesn’t mean any real work is being done. “In India, if I give you Rs 1,000, 18% GST is taxed on it, and you give back Rs 1,000 to me, 18% is counted as Rs 2,000 of GDP. You’ve done no work. I have done no work. I’ve just given you money. Giving money is not work. Correct work is work,” he said.
Bhatia pointed out that in countries like the U.S., GDP is more closely tied to hours worked and the actual value created by that work.
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