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Over 70% of indians live in rural areas. Many of these people live completely outside of the monetary economy. Counting these people in the GDP statistics skews the whole thing. Yet many of these people live just fine by farming, but do not need to use money, or use very little of it. To me it seems that when making GDP statistics, it would be wise to count in only people in urban areas, participating in the labor market. Of course this would look quite bad from the point of view of neoliberalist economists.


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