Glancing at income distribution in India may help us understand
why flats
in Hyderabad are far smaller than those found in Paulo Alto, or
Silicone Valley. While in the US the average per capita income is over fifty
thousand dollars, meaning that the average American household earns more than
fifty thousand dollars, in India, to be considered rich, one need only have an
income greater than thirty-five thousand dollars. Taking in such a disparity
reveals just how much poorer India is than the US, many households which are
considered rich in India don’t even qualify as middle class in the US.
It’s no wonder that middle class homes in much of the US are far
larger than the homes of rich Indians in India, though this is not true in all
cases, as thirty-five thousand dollars goes a long way in India due to higher
purchasing power parity or PPP, meaning that someone earning thirty-five
thousand or more in India can buy more essential goods and services using his
or her money than someone earning the same income in America. However,
Americans who are middle class usually have larger homes than rich Indians who
live in luxury apartments in Hyderabad.
To close the earnings gap between the US and India requires an
increase in the productivity of even the least able Indian worker. This can
only be made possible by better training and through the use of better
technologies. Only then can wages and salaries in India increase and close the
gap between the standard of living in India and the developed world. Some may
argue that many in Japan are far wealthier than many Americans yet such
Japanese live in homes which are smaller in size than houses in much of India.
There is truth to this statement; however, culture also plays a decisive role
in society’s preferences when choosing how to live.
It may be no wonder that
the Japanese have mastered electronics and have miniaturized many gadgets;
throughout their history, they have prized simplicity, patience, and an
aptitude for creating big things which are small in size. The foldable fan,
which can be opened and waved to provide air, is a Japanese invention. Indians
shall also be required to embrace their culture and traditions when the time
comes and fundamentally decide their innate preferences regarding how big their
homes should be and what design the furniture inside their homes should take.
While the rich everywhere love to live in exceptionally large
houses, it’s the middle classes in every country which vote with their numbers
and decide the culture of a country. Today the Indian middle class in the vast
numbers of smaller towns shows a marked preference for large standalone houses.
This is in contrast to the apartments being built by the top
builders in Hyderabad. The biggest reason for the prevalence of apartments in Hyderabad and for
standalone houses with a front and back yard in villages is the price of land
in these areas. This suggests that if Indians had the money, they would prefer
to live in large houses that are situated on their own plot of land and which
have a front and back yard. Indian culture it seems prizes privacy and nature
as opposed to the culture of the Japanese who prefer big things in petite
sizes.
Indian preferences are not too different from those in America or
Canada where the motto is the bigger the better. Thus new projects in Hyderabad in the future,
when the purchasing power of Indians has grown, may consist of stand-alone
homes and the value of apartments in
Hyderabad may fall as there would be fewer buyers who have the money
willing to invest in such homes preferring instead to buy a home on its own
plot of land.
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