Mathematics of valuation of currency

there are various factors which affects the value of currency of any country...........
which are as follows
1)demand & supply
2)politics
3)interest rates
4)economic growth
5)commodity prices

in these factors gdp, interest rates, politics is directly related to the internal matters of the country.......
now remaining two factors...........

some examples related to few countries currency

there are few countries whose currency is highly influenced with commodity prices
1)australian dollar
2)canadian dollar
3)new-zeland dollar

canadian dollar is highly influenced with crude oil prices whenever there is any rise in the price of crude oil the value of canadian dollar also goes up but crude oil priced in US $ so when the opec countries rise the price of crude oil its mean the value of US $ decreasing
so we can say there is a inversly propostional relationship with US$ and canadian dollar.....
while australia is the third largest producer of gold the australian dollar has the positive corelation with gold price up to 84% this is the data between the 1999 to 2008

Development at its best

As the one of the most famous astrologer of the world Nostradamus said that the future belongs to the east  means india & china and in present we all can see how true he was...........
here we are going to discuss about the indian economy........

India is a South Asian country that is the seventh largest in area and has the second largest population in the world. The land covers an area of 3,287,240 square km (India geography) and the population stands at 1,202,380,000 people (India population) . India has great plains, long coastlines and majestic mountains. Thus, the land has abundant resources. India shares its borders with China, Bangladesh, Pakistan, Nepal, Sri Lanka and Myanmar.......

The Indian economy is one of the fastest growing economies and is the 12^th largest in terms of the market exchange rate at $1,242 billion (India GDP). In terms of purchasing power parity, the Indian economy ranks the fourth largest in the world. However, poverty still remains a major concern besides disparity in income.The Indian economy has been propelled by the liberalization policies that have been instrumental in boosting demand as well as trade volume. The growth rate has averaged around 7% since 1997 and India was able to keep its economy growing at a healthy rate even during the 2007-2009 recession, managing a 5.355% rate in 2009 (India GDP Growth). The biggest boon to the economy has come in the shape of outsourcing. Its English speaking population has been instrumental in making India a preferred destination for information technology products as well as business process outsourcing.

The economy of India is as diverse as it is large, with a number of major sectors including manufacturing industries, agriculture, textiles and handicrafts, and services. Agriculture is a major component of the Indian economy, as over 66% of the Indian population earns its livelihood from this area.

However, the service sector is greatly expanding and has started to assume an increasingly important role. The fact that the Indian speaking population in India is growing by the day means that India has become a hub of outsourcing activities for some of the major economies of the world including the United Kingdom and the United States. Outsourcing to India has been primarily in the areas of technical support and customer services...........

Other areas where India is expected to make progress include manufacturing, construction of ships, pharmaceuticals, aviation, biotechnology, tourism, nanotechnology, retailing and telecommunications. Growth rates in these sectors are expected to increase dramatically.

 Despite the liberalization the economy still largely controlled by the government and the 500+ major companies it owns, which together are worth around US$500 billion, or around 40% of GDP at current exchange rates. Thanks to past profligate spending, government debt is running at around 80% of GDP. Servicing the interest payments on that debt is now the single largest component of the federal budget. Fiscal discipline and deficit reduction is therefore vital for India's future prospects.

It is also crucial to understand that India is driven primarily by domestic (consumer) consumption. This stands in marked contrast to Japan, the Asian Tigers and now China, all of whom have followed the export-oriented model.

With the massive growth of the Indian middle class, this vast country may become Asia's first major 'buy' economy.............

Indian Economy: Statistics

In 2009, India's PPP Gross Domestic Product stood at $3.548 trillion, and was the fourth largest economy by volume.

The services sector, backed by the IT revolution, remained the biggest contributor to the national GDP, with a contribution of 58.4%. The industry sector contributed 24.1% and the agriculture sector contributed 17.5% to the GDP.

The employment scenario was dominated by the services sector, creating 62.6% of the jobs for the 467 million workforce. The industry sector contributed 25.8% to the GDP and employed 20% of the workforce. The agriculture sector contributed 15.8% to the GDP and created 17.5% jobs (India Labor Force). The unemployment rate remained around 10% in 2009. However, rising inflation became a major concern, and measures to check it are being implemented. In 2009, the rate of inflation was around 10.7% (India Inflation Rate Change)...............

The Poverty Challenge

One of the major challenges for the Indian economy and those  responsible for operating it, is to remove the economic inequalities that are still persistent in India after its independence in 1947. Poverty is still one of the major issues although these levels have dropped significantly in recent years. Over 25% of the working Indian populace is living below the poverty line (India Poverty Line and Gini Index).

Poverty is a challenge that’s becoming increasingly important in relationship to the alarming rate of new births. This implies that ever more rapid change, or birth control policies like the ‘One Child’ policy in China, are needed to reduce the numbers affected by poverty in the vast Indian economy.

The per capita income of India is 4,542 US Dollars in the context of Purchasing Power Parity. This is primarily due to the 1.1 billion population of India, the second largest in the world after China. In nominal terms, the figure comes down to 1,089 US Dollars, based on 2007 figures. According to the World Bank, India is classed as a low-income economy.............

State/Union Territory	GDP (in Millions of Rupees )	GDP (in Millions of USD)	per capita ( of Rupees )	per capita ( of USD)	Comparable
India	37,900,630	835,920	45,050	1030
Maharashtra	4,324,131	95,371	44,634	984
Uttar Pradesh	2,797,621	61,703	15,120	333
West Bengal	2,360,442	52,060	27,770	612
Andhra Pradesh	2,360,340	52,058	30,950	684
Tamil Nadu	2,235,285	49,300	35,822	790
Gujarat	2,166,510	47,783	43,330	955
Karnataka	1,707,412	37,657	35,818	789
Rajasthan	1,242,240	27,398	24,921	549
Kerala	1,189,980	26,246	36,030	795
Madhya Pradesh	1,163,220	25,655	19,274	425
Punjab	1,097,350	24,202	44,901	990
Haryana	1,063,850	23,464	50,312	1,109
Delhi Territory	1,053,856	23,243	76,087	1,678
Bihar	796,820	17,574	9,600	211
Orissa	785,360	15,753	21,338	471
Jharkhand	629,500	13,883	23,361	515
Assam	575,970	12,703	21,607	476
Chattisgarh	519,210	11,451	24,921	549
Jammu & Kashmir	264,880	5,842	26,488	584
Uttarakhand	257,760	5,685	30,362	669
Himachal Pradesh	254,350	5,609	45,391	934
Goa	124,000	2,734	92,010	2,029
Chandigarh Territory	98,720	2,177	109,688	2,419
Tripura	91,240	2,012	28,512	629
Meghalaya	64,700	1,427	28,130	620
Manipur	57,140	1,260	29,712	655
Pondicherry Territory	57,000	1,257	58,684	1,294
Nagaland	56,412	1,244	28,346	625
Arunachal Pradesh	29,870	659	27,203	600
Mizoram	26,970	595	30,346	669
Sikkim	18,030	398	25,018	552
Andaman and Nicobar Islands Territory	15,620	344	43,876	967
Dadra and Nagar Haveli Territory	7,001	154	31,822	701
Daman and Diu Territory	5,028	110	31,781	700
Lakshadweep Territory	1,909	42	31,475	694

inequality in india

the gdp of maharashtra is the biggest contributor to the national gdp followed by the uttar pradesh & west bengal & andhra pradeh but there is huge difference between the per capita income of thease states which are as in maharashtra 984usd, in up 333usd, in west bengal 612usd, in andhra pradesh 684.......
this is the main reason of worry............

while the whole gdp of thease states are as 95371usd, 61703usd, 52060usd, 52058usd.............(all stats in millions)