Comments
With market cap and GDP moving up, it was just a matter of time before such aggregates moved beyond Rs 60 and 80 lakh crore to cross Rs 1 crore crore.
The Prime Minister's Economic Advisory Council (PMEAC) estimate for GDP in 2012-13, for example, is a little over Rs 1 crore crore.
To avoid tangles of this sort, the Government and the RBI have begun expressing aggregates in billions and trillions of rupees. Thus, the effect of the recent relaxation of the cash reserve ratio (CRR) was to ‘inject Rs 480 billion of primary liquidity into the banking system'.
Similarly, in its Outlook document the PMEAC brackets next year's GDP of Rs 101.7 lakh crore with Rs 101.7 trillion.
The shift is user friendly. Every three digits, and you move up one notch. But change always brings teething troubles in its wake. So, here are a few tips. One billion rupees is a hundred crore (so the CRR cut translates to Rs 48,000 crore), and one lakh crore is one trillion.
As for that one billion dollars of exports, imports or capital which you used to equate with Rs 5,000 crore, you can now straightaway multiply by 50 to arrive at Rs 50 billion. Except that, like the figure for the CRR cut, this is something you might find it hard to get your teeth into.
For small magnitudes, the habit of thinking in crore won't die easy.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.