Now that the rupee has a symbol that is on its way to global recognition, the time has come for govt to globalise the way money is counted in India
T N Ninan / New Delhi Aug 21, 2010, 00:20 IST
Now that the rupee has a symbol that is on its way to global recognition, the time has come for the government to take the next logical step: globalise the way money is counted in India. This means moving away from the business of lakhs and crores, which is an indigenous legacy, and switching to the millions and billions that the world is familiar with. This might seem a trivial issue to focus on when weightier matters cry out for attention; but weightier matters will always be there, and it would be wrong to dismiss a mass convenience factor so lightly, especially when the changeover can be accomplished quite easily.
In the globalised world, financial statements are usually prepared on standard software programmes which uniformly use millions and billions, with the commas falling metronomically after every three digits (rather than every two in the Indian system, once you are past the thousand mark). Quite a few Indian companies have, therefore, switched to this format, but the majority sticks to lakhs and crores even though this usually involves making manual interventions to put the commas in different places — a pointless expenditure of effort which also makes the numbers difficult to understand for all international audiences who follow Indian corporate and macro numbers.
Companies (and newspapers) have thus far been encouraged to use the legacy units for counting because the government presents its own financial numbers in lakhs and crores. The pernicious result is that many Indians have begun to count even non-financial numbers in lakhs and crores, instead of millions (as with the country’s population).
Forget being inscrutable to foreign audiences, most Indians too are prone to making mistakes when converting millions of dollars into crores of rupees, because a good part of even the literate population is not mathematically oriented and cannot figure out where to add or subtract zeroes. Sub-editors on late-night newspaper copy desks will testify to the needless tension involved in getting the conversion right.
There is another convenience issue: the macro-economic numbers that people have to deal with now are large enough to cause oddities in the way the indigenous counting units handle them. Thus, India’s GDP this year is expected to be about Rs 68 lakh crore; if it grows by 50 per cent in the next four years, it will be more than Rs 1 crore crore! How much more elegant to say that the figure this year is likely to be Rs 68 trillion, and four years later could be Rs 100 trillion. And, comparisons become demonstrably easier; for instance, American GDP is said to be Rs 650 trillion.
To be sure, traditional Indian mathematics is not to be under-estimated, because it has provisions for bigger units than a crore (like the arab and kharab, which are equal to a billion and 100 billion, respectively). Indeed, the Indian counting system goes all the way up to an adant singhar, which is equal to one duodecillion — a number that has 39 zeroes. But a system that has a new definition with the addition of every two zeroes, rather than every three, is inherently more cumbersome. Also, words such as arab and kharab are not a part of everyday parlance, and will make Indian numbers even less comprehensible to the international audience, which might wonder why Indians are suddenly counting Arabs, and why they are kharaab! So, Pranab Mukherjee, in the midst of admittedly greater challenges like introducing the goods and services tax and getting the direct taxes code adopted, might spare a thought for a simpler issue that can be dealt with quickly, and make counting a little more convenient for millions of people.
Ninan,
As a responsible person, we EXPECT you to protect you India's culture, not destroy it. Counting systems are an IMPORTANT PART of a culture. We are NOT going to give them up! EVER!
Let the world align to India, why should we align to the world.
The Americans still measure in Gallons, Miles and Farenheit. That does not mean we should do what they are doing.
Let's not forget the fact that it's WE INDIANS that gave numbers to the world along with the Arabs - so if a few McNuggets come along for a couple of hundred years and change the system - do we follow that? or should we follow OUR system - existing since thousands of years!!
There was a a time when "a few crores" was a lot of money in India. I used to think in a funny way that India was not ambitious enough to go beyond that mark. But today, a crore is not a lot of money. We really should change with time. I would personally prefer arab and kharab, but then, in the small flat world we live in, I think a globalized measure in millions, billions and trillions would make more sense.
Why change a numerical system when a software can do the needful in a jiffy??.. and if we go as per what the writer of this article suggest and if in future the foreigners want to understand the language 'Malayalam' so should we change the scriptures into English for the convenience of millions of people around the world.. The answer is of course a NO. So how we learn a foreign languages, can't the world around do the same just to learn a simple system.
I do not agree. Let us not forget that Vast majority of our countrymen stil understand Lakhs (and only a few need to bother about Crores). The Chinese have their own counting system and keep it that way.
Yes, we should change to Millions when our Dear "R" that is Indian Rupee value is- 4.7 to the US dollar or 6.0 to the Euro/Pound or 1:1 to the Chinese Yuan. Let us not laugh it off. These used to be the conversion rates just about 35-40 years ago till our mismanagment brought us to shameless conversion rates of 47 or 60 or 80 etc etc. Today it is so easy to convert the Millions of USD or Euro to our Rupee by just multiplying by 4.5 or 6.0 to get our Crores!
Until then let us work real hard and improve the REAL value of our Rupee and its purchasing power! Let us not bother about some highly educated economist or analyst with huge resources and technology having to do a little bit extra to understand our numbers. THINK of 130 CRORE INDIANS first.
It has been said that India's contribution to the world of scientific knowledge is zero (or Ŕ", which is derived from the word "shunya", meaning nothing in sanskrit). According to the French mathematician, Pierre Simon Laplace: "It is India that gave us the ingenious method of expressing all numbers by the means of ten symbols - 0 to 9 - and we shall appreciate the grandeur of this achievement when we remember that it escaped the genius of Archimedes and Apollonius, two of the greatest minds produced by antiquity." Presently, western ingenious method of expressing higher numerals in million (for 10 lakhs), billion (for 100 crores) and trillion (for 100,000 crores) must be accepted by India.
Even after living in the US for 6 years, I still find myself converting the millions to lakhs and crores to make them intelligible, which are much more convenient.
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