Household final consumption expenditure (constant 2000 US dollar) in India

The Household final consumption expenditure (constant 2000 US dollar) in India was last reported at 576805861019.54 in 2010, according to a World Bank report released in 2011. The Household final consumption expenditure (constant 2000 US dollar) in India was 531106998944.04 in 2009, according to a World Bank report, published in 2010. The Household final consumption expenditure (constant 2000 US dollar) in India was reported at 494883292782.94 in 2008, according to the World Bank. Household final consumption expenditure (formerly private consumption) is the market value of all goods and services, including durable products (such as cars, washing machines, and home computers), purchased by households. It excludes purchases of dwellings but includes imputed rent for owner-occupied dwellings. It also includes payments and fees to governments to obtain permits and licenses. Here, household consumption expenditure includes the expenditures of nonprofit institutions serving households, even when reported separately by the country. Data are in constant 2000 U.S. dollars.This page includes a historical data chart, news and forecats for Household final consumption expenditure (constant 2000 US dollar) in India. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Services are the

major source of economic growth, accounting for more than half of India's output with less than one third of its labor force. The economy has posted an average growth rate of more than 7% in the decade since 1997, reducing poverty by about 10 percentage points.

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General government final consumption expenditure (constant LCU) in India

4383510000000.0 4852120000000.0View Chart

Household final consumption expenditure; etc. (US dollar) in India

690596181597.3 724103898932.7View Chart

Household final consumption expenditure; etc. (current LCU) in India

27716790000000.0

33243610000000.0

View Chart

Household final consumption expenditure (US dollar) in India

707724053445.2 709605750381.2View Chart

Changes in inventories (US dollar) in India 50195114354.8 24508603790.0 View

1967 2012 EXPORT HISTORICAL DATA COMPARE INDICATORS RANK COUNTRIES

Chart

Agriculture; value added (annual % growth) in India 5.8 -0.2View Chart

Exports as a capacity to import (constant LCU) in India 9262532577070.611195316849582.

4View Chart

Discrepancy in expenditure estimate of GDP (constant LCU) in India

-1024260000000.0 418990000000.0View Chart

GDP (US dollar) in India 1242426253335.1 1215992812023.5View Chart

GNI (current LCU) in India 49659140000000.

055497000000000.

0View Chart

GNI per capita; Atlas method (US dollar) in India 1000.0 1080.0View Chart

Gross savings (current LCU) in India 18302892099758.

618327312344672.

6View Chart

Gross savings (% of GDP) in India 36.7 32.8View Chart

Net taxes on products (US dollar) in India 100911474933.3 65462208669.1View Chart

Net current transfers from abroad (US dollar) in India 41706000000.0 44567000000.0View Chart

Net current transfers from abroad (current LCU) in India 1673852932500.0 2046070970000.0View Chart

Household final consumption expenditure per capita growth (annual %) in India

7.8 6.3View Chart

Final consumption expenditure (US dollar) in India 835549225003.4 843874972772.8View Chart

Gross national expenditure (US dollar) in India 1292308918949.8 1278130690481.4View Chart

Gross national expenditure (current LCU) in India 51866280000000.

058678980000000.

0View Chart

Gross national expenditure (constant LCU) in India 44515690000000.

047820880000000.

0View Chart

Gross fixed capital formation (US dollar) in India 409002626579.3 389632494887.5View Chart

Gross capital formation (US dollar) in India 473887565794.3 419757569157.1View Chart

Gross capital formation (constant LCU) in India 16533260000000.

016027040000000.

0View Chart

External balance on goods and services (current LCU) in India

-2002020000000.0 -2852750000000.0View Chart

External balance on goods and services (% of GDP) in India -4.0 -5.1View Chart

Agriculture; value added (US dollar) in India 208428225865.1 202340013069.1View Chart

GDP growth (annual %) in India 9.8 4.9View Chart

Gross savings (US dollar) in India 456037924892.5 399200878777.5View Chart

Gross savings (% of GNI) in India 36.9 33.0View Chart

Household final consumption expenditure (constant 2000 US dollar) in India

459439899180.3 494883292782.9View Chart

Final consumption expenditure (constant LCU) in India 29006690000000.

031374850000000.

0View Chart

Gross national expenditure (% of GDP) in India 104.0 105.1View Chart

Changes in inventories (constant LCU) in India 1753770000000.0 901680000000.0View Chart

Imports of goods and services (% of GDP) in India 24.5 28.9View Chart

External balance on goods and services (US dollar) in India -49882665614.7 -62137878457.9View Chart

Trade (% of GDP) in India 44.9 52.7View Chart

Agriculture; value added (constant LCU) in India 6550800000000.0 6541180000000.0View Chart

Chemicals (% of value added in manufacturing) in India 13.6  View Chart

Gross value added at factor cost (US dollar) in India 1141514778401.8 1150530603354.4View Chart

Gross domestic savings (% of GDP) in India 34.1 29.4View Chart

GNI (US dollar) in India 1237315449062.0 1208821607492.9View Chart

General government final consumption expenditure (US dollar) in India

127825171558.2 134269222391.6View Chart

Household final consumption expenditure; etc. (constant LCU) in India

23598920000000.0

26941720000000.0

View Chart

Household final consumption expenditure (current LCU) in India

28404210000000.0

32578000000000.0

View Chart

Household final consumption expenditure (annual % growth) in India

9.3 7.7View Chart

Household final consumption expenditure (constant LCU) in India

24623180000000.0

26522730000000.0

View Chart

Final consumption expenditure; etc. (annual % growth) in India

7.3 13.6View Chart

Final consumption expenditure (constant 2000 US dollar) in India

536282953405.4 580066088914.3View Chart

Gross national expenditure (constant 2000 US dollar) in India

781819708269.5 836012634245.3View Chart

Exports of goods and services (constant 2000 US dollar) in India

169889106128.8 194330626565.6View Chart

Gross fixed capital formation (current LCU) in India 16415150000000.

017888027840285.

9View Chart

Gross capital formation (current LCU) in India 19019280000000.

019271070000000.

0View Chart

External balance on goods and services (constant LCU) in India

-1403699986432.0 -934450888704.0View Chart

Manufacturing; value added (constant 2000 US dollar) in India

115810520983.4 120730312276.0View Chart

Other manufacturing (% of value added in manufacturing) in India

54.3  View Chart

Services; etc.; value added (US dollar) in India 601632756454.9 623545850577.2View Chart

GDP (constant LCU) in India 42531840000000.

044629670000000.

0View Chart

Gross domestic savings (US dollar) in India 424004900179.6 357619690699.2View Chart

Gross national income (constant LCU) in India 42523932577070.

645163496849582.

4View Chart

Net income from abroad (US dollar) in India -5110804273.1 -7171204530.6View Chart

General government final consumption expenditure (constant 2000 US dollar) in India

76961742081.7 85189176707.6View Chart

Final consumption expenditure; etc. (current LCU) in India 32847000000000.

039407910000000.

0View Chart

Final consumption expenditure (current LCU) in India 33534420000000.

038742300000000.

0View Chart

Exports of goods and services (constant LCU) in India 9098650000000.010407650000000.

0View Chart

Exports of goods and services (% of GDP) in India 20.4 23.8View Chart

Gross fixed capital formation (annual % growth) in India 16.2 1.5View Chart

Gross capital formation (constant 2000 US dollar) in India 277494042240.4 268997651688.1View Chart

Manufacturing; value added (US dollar) in India 182565742346.1 177786321063.0View Chart

Manufacturing; value added (annual % growth) in India 10.3 4.3View Chart

Manufacturing; value added (% of GDP) in India 16.0 15.5View Chart

Industry; value added (constant LCU) in India 11198630000000.

011689200000000.

0View Chart

Industry; value added (% of GDP) in India 29.0 28.2View Chart

Food; beverages and tobacco (% of value added in manufacturing) in India

8.8  View Chart

Textiles and clothing (% of value added in manufacturing) in India

7.7  View Chart

Services; etc.; value added (current LCU) in India 24146280000000.

028626990000000.

0View Chart

Services; etc.; value added (constant 2000 US dollar) in India 390761560574.2 430399662374.4View Chart

Services; etc.; value added (annual % growth) in India 10.3 10.1View Chart

Gross value added at factor cost (current LCU) in India 45814220000000.

052820860000000.

0View Chart

GDP (constant 2000 US dollar) in India 773393372039.5 811540036224.8View Chart

Terms of trade adjustment (constant LCU) in India 163882577070.6 787666849582.4View Chart

General government final consumption expenditure (current LCU) in India

5130210000000.0 6164300000000.0View Chart

General government final consumption expenditure (annual % growth) in India

9.5 10.7View Chart

Final consumption expenditure; etc. (US dollar) in India 818421353155.5 858373121324.3View Chart

Final consumption expenditure; etc. (% of GDP) in India 65.9 70.6View Chart

Gross capital formation (annual % growth) in India 17.2 -3.1View Chart

Gross capital formation (% of GDP) in India 38.1 34.5View Chart

Imports of goods and services (US dollar) in India 303755240181.5 351566107601.8View Chart

Imports of goods and services (current LCU) in India 12191090000000.

016140400000000.

0View Chart

Imports of goods and services (constant LCU) in India 11082500000000.

013598860000000.

0View Chart

Manufacturing; value added (current LCU) in India 7327200000000.0 8162170000000.0View Chart

Manufacturing; value added (constant LCU) in India 6290520000000.0 6557750000000.0View Chart

Industry; value added (annual % growth) in India 9.7 4.4View Chart

Discrepancy in expenditure estimate of GDP (current LCU) in India

-687420000000.0 665610000000.0View Chart

Gross value added at factor cost (constant 2000 US dollar) in India

708325465298.2 756204894803.4View Chart

Gross domestic savings (current LCU) in India 17017260000000.

016418320000000.

0View Chart

Gross domestic income (constant LCU) in India 42695722577070.

645417336849582.

4View Chart

General government final consumption expenditure (% of GDP) in India

10.3 11.0View Chart

Household final consumption expenditure; etc. (constant 2000 US dollar) in India

431357085191.2 492459053602.3View Chart

Household final consumption expenditure; etc. (% of GDP) in India

55.6 59.6View Chart

Final consumption expenditure; etc. (constant LCU) in India 27982430000000.

031793840000000.

0View Chart

Exports of goods and services (current LCU) in India 10189070000000.

013287650000000.

0View Chart

Gross fixed capital formation (constant 2000 US dollar) in India

248602402549.4 252397203789.4View Chart

Imports of goods and services (constant 2000 US dollar) in India

178315442358.8 218803224586.1View Chart

Industry; value added (current LCU) in India 13302760000000.

014904440000000.

0View Chart

Machinery and transport equipment (% of value added in manufacturing) in India

15.6  View Chart

Services; etc.; value added (% of GDP) in India 52.7 54.2View Chart

Gross value added at factor cost (constant LCU) in India 38989580000000.

041625090000000.

0View Chart

GDP (current LCU) in India 49864260000000.

055826230000000.

0View Chart

GDP per capita (US dollar) in India 1104.6 1066.7View Chart

GNI; Atlas method (US dollar) in India 1119441825606.0 1236654093810.0View Chart

Net income from abroad (current LCU) in India -205120000000.0 -329230000000.0View Chart

Net income from abroad (constant LCU) in India -171790000000.0 -253840000000.0View Chart

Household final consumption expenditure; etc. (annual % growth) in India

6.9 14.2View Chart

Household final consumption expenditure per capita (constant 2000 US dollar) in India

408.5 434.1View Chart

Final consumption expenditure; etc. (constant 2000 US dollar) in India

508354650130.5 577596241981.3View Chart

Exports of goods and services (US dollar) in India 253872574566.8 289428229144.0View Chart

Exports of goods and services (annual % growth) in India 5.9 14.4View Chart

Gross fixed capital formation (constant LCU) in India 14306360000000.

014524740000000.

0View Chart

Gross fixed capital formation (% of GDP) in India 32.9 32.0View Chart

Changes in inventories (current LCU) in India 2014560000000.0 1125190000000.0View Chart

Imports of goods and services (annual % growth) in India 10.2 22.7View Chart

Agriculture; value added (current LCU) in India 8365180000000.0 9289430000000.0View Chart

Agriculture; value added (constant 2000 US dollar) in India 123491966078.0 123310615294.3View Chart

Agriculture; value added (% of GDP) in India 18.3 17.6View Chart

Industry; value added (US dollar) in India 331453796081.9 324644739708.1View Chart

Industry; value added (constant 2000 US dollar) in India 194047774722.8 202548280306.6View Chart

Services; etc.; value added (constant LCU) in India 21240150000000.

023394710000000.

0View Chart

GDP per capita (constant 2000 US dollar) in India 687.6 711.9View Chart

GDP per capita growth (annual %) in India 8.4 3.5View Chart

GDP per capita (constant LCU) in India 37813.2 39150.0View Chart

Gross domestic income (constant 2000 US dollar) in India 782760000000.0 813190000000.0View Chart

Net taxes on products (current LCU) in India 4050040000000.0 3005370000000.0View Chart

Net taxes on products (constant LCU) in India 3542260000000.0 3004580000000.0View Chart

Net current transfers from abroad (constant LCU) in India 1436631241892.8 1667461062340.4View Chart

$1.846 trillion (nominal: 9 th ; 2011)[1]

$4.469 trillion (PPP: 3 rd ; 2011)[1] GDP growth 8.5% (2009-10) GDP per capita

$1,527 (nominal: 135 th ; 2011)[1]

$3,703 (PPP: 127 th ; 2011)[1] GDP by sector agriculture: 18.1%, industry: 26.3%, services: 55.6% (2011 est.) Inflation (CPI) 6.95% (February 2012)[2] Populationbelow poverty line 37% (2010)(Note: 42% live less than $1.25 a day)[3] Gini coefficient 36.8 (List of countries) Labour force 487.6 million (2011 est.) Labour forceby occupation agriculture: 52%, industry: 14%, services: 34% (2009 est.) Unemployment 9.8% (2011 est.)[4] Average gross salary $1,330 yearly (2010) Main industries telecommunications, textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, software, pharmaceuticals Ease of Doing Business Rank 132nd[5] (2011)

Exports $298.2 billion (2011 est.) Export goods petroleum products, precious stones, machinery, iron and steel, chemicals, vehicles, apparel Main export partners US 12.6%, UAE 12.2%, China 8.1%, Hong Kong 4.1% (2010) Imports $451 billion (2011 est.) Import goods crude oil, precious stones, machinery, fertilizer, iron and steel, chemicals Main import partners China 12.4%, UAE 6.5%, Saudi Arabia 5.8%, US 5.7%, Australia 4.5% (2010) FDI stock $19.42 billion (2010-11)[6] Gross external debt $267.1 billion (31 December 2011 est.) Public finances Public debt 62.43% of GDP (2011 est.)[7] Budget deficit 5.9% of GDP (2011-12) Revenues $218.7 billion (2011 est.) Expenses $311.2 billion (2011 est.) Economic aid $2.107 billion (2008)[8] Credit rating BBB- (Domestic)BBB- (Foreign)BBB+ (T&C Assessment)Outlook: Stable(Standard & Poor's)[9] Foreign reserves $292.7 billion (Jan 2012)

The Economy of India is the ninth largest in the world by nominal GDP and the third largest by purchasing power parity (PPP).[1] The country is one of the G-20 major economies and

a member of BRICS. In 2011, the country's GDP PPP per capita was $3,703 IMF, 127th in the world, thus making a lower-middle income economy.[10]

The independence-era Indian economy (before and a little after 1947) was inspired by the Soviet model of economic development, with a large public sector, high import duties combined with interventionist policies, leading to massive inefficiencies and widespread corruption. However, later on India adopted free market principles and liberalized its economy to international trade under the guidance of Manmohan Singh, who then was the Finance Minister of India under the leadership of P.V.Narasimha Rao the then Prime Minister. Following these strong economic reforms, the country's economic growth progressed at a rapid pace with very high rates of growth and large increases in the incomes of people.[11]

India recorded the highest growth rates in the mid-2000s, and is one of the fastest-growing economies in the world. The growth was led primarily due to a huge increase in the size of the middle class consumer, a large labor force and considerable foreign investments. India is the fourteenth largest exporter and eleventh largest importer in the world. Economic growth rates are projected at around 6.9% for the 2011-12 fiscal year.[12]

A combination of protectionist, import-substitution, and Fabian socialist-inspired policies governed India for sometime after India's Independence from the British. The economy was then characterised by extensive regulation, protectionism, public ownership, pervasive corruption and slow growth.[13][14] Since 1991, continuing economic liberalisation has moved the country towards a market-based economy.[13][14] A revival of economic reforms and better economic policy in first decade of the 21st century accelerated India's economic growth rate. In recent years, Indian cities have continued to liberalise business regulations.[5] By 2008, India had established itself as one of the world's fastest growing economies. Growth significantly slowed to 6.79% in 2008–09, but subsequently recovered to 7.4% in 2009–10, while the fiscal deficit rose from 5.9% to a high 6.5% during the same period.[15] India’s current account deficit surged to 4.1% of GDP during Q2 FY11 against 3.2% the previous quarter. The unemployment rate for 2010-11, according to the state Labour Bureau, was 9.8% nationwide.[4] As of 2011, India's public debt stood at 62.43% of GDP which is highest among the emerging economies.[7]

India's large service industry accounts for 57.2% of the country's GDP while the industrial and agricultural sectors contribute 28.6% and 14.6% respectively.[16] Agriculture is the predominant occupation in Rural India, accounting for about 52% of employment. The service sector makes up a further 34%, and industrial sector around 14%.[17] However, statistics from a 2009–10 government survey, which used a smaller sample size than earlier surveys, suggested that the share of agriculture in employment had dropped to 45.5%.[4]

Major industries include telecommunications, textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, software and pharmaceuticals.[18] The labour force totals 500 million workers. Major agricultural products include rice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes, cattle, water buffalo, sheep, goats, poultry and fish.[18] In 2009–2010, India's top five trading partners are United Arab Emirates, China, United States, Saudi Arabia and Germany.

Previously a closed economy, India's trade and business sector has grown fast.[13] India currently accounts for 1.5% of world trade as of 2007 according to the World Trade Statistics of the WTO in 2006, which valued India's total merchandise trade (counting exports and imports) at $294 billion and India's services trade at $143 billion. Thus, India's global economic engagement in 2006 covering both merchandise and services trade was of the order of $437 billion, up by a record 72% from a level of $253 billion in 2004. India's total trade in goods and services has reached a share of 43% of GDP in 2005–06, up from 16% in 1990–91.[19] India's total merchandisee trade (counting exports and imports) stands at $ 606.7 billion[20] and is currently the 9th largest in the world.

The growth estimates for the country’s economy for the current financial year, as per the latest release of the Central Statistics Office, has reiterated the toning down of the Indian economic expansion.  These advance estimates, based on the performance so far of key sectors, study of the government expenditure and the anticipated levels of production in agriculture and industry, also help highlight the extent of slowdown in the country’s economic growth momentum.

India National Income 2011

The growth in GDP at factor cost at constant prices (2004-05) during 2011-12 is estimated to be 6.9%, as against the 8.4% growth in the previous year.

The agriculture sector is expected to grow by 2.5% this year compared with the 7% growth last fiscal.

The manufacturing sector too is likely to see a decline in growth rate to 3.9% during 2011-12 from the 7.6% growth attained in 2010-11.

The service sector is the only sector that is expected to register stable/marginal higher growth in the current financial year.

The growth in trade, hotels, transport and communication sectors during 2011-12 is estimated to be 11.2% compared with the 11.1% growth in 2010-11

Per capita income at constant prices (2004-05) is likely to grow at 5.6% during 2011-12 to Rs.38,005 and the same at current prices is estimated to growth by 14.3% to Rs. 60,972.

Private consumption as show by the rate of Private Final Consumption Expenditure (PFCE) at constant prices is likely to decline by 0.6% to 58.1 % of GDP at market prices in 2011-12

The rate of investment as seen in Gross Fixed Capital Formation (GFCF) at constant prices is estimated to decline to 31.9% of GDP at market prices in 2011-12 from 32.5% in 2010-11.

GDP

The “ less than market expectation” 6.9% rate of GDP growth  for 2011-12 compares unsatisfactorily with the 8.4% growth in the previous year and the 9% original forecast   for the year. This sharp decline in growth, a consequence of the series of monetary tightening efforts of the Reserve Bank of India that went on for more than two years to reign in stubbornly highly inflation (that averaged  9.3% in the first 9 months of the fiscal), as well as low demand conditions  resulted in weaker growth in industrial output. The weakness in the global economy too has contributed to the slowdown in domestic economic growth through lower growth in exports. Going ahead too, the country’s economic expansion would likely be subdued.

Agriculture

Although the agri-sector growth estimates comes in lower than expected at 2.5%, the high base effect cannot be ignored here. The sector grew by an impressive 7% in 2010-11, following the drought of 2009-10 that saw agri output decline by over 6%. This year too, the country has registered healthy growth in output. As per the latest 2nd advance estimates of the ministry of agriculture, the estimated production of foodgrains in 2011-12 would be at a record 250.42 million tonnes, 5.42 million tonnes higher than target and 5.64 million tonnes more than last year record production. Cotton, sugarcane, wheat and rice are estimated to register record output this year, while oilseeds, pulses and coarse cereals are likely to see some decline in output.

The higher output of the farm sector has been acting as a stabilizing factor for the nation’s economy – by way of stimulating demand for non-farm goods as well providing supplies for manufactured farm products which in turn activate industrial output.

Industry

The growth in the industrial sector is expected to be subdued this year with manufacturing growth  at 3.9% as against 7.6% last year, construction at 4.8% compared with the 8% growth in 2010-11  and the growth in  mining and quarrying is likely to be negative 2.2% as against the 5% growth in the previous year.  The only noteworthy growth in Industry is from the electricity, gas and water supply segment which is estimated to grow by 8.3% this year, 5.3% more than that in the previous year. The growth in this segment (electricity, gas and water supply) along with the

services sector has been acknowledged as one of the main contributors to the country’s GDP growth this year.

The high interest rate regime that has been prevailing in the country coupled with policy inaction in the area of mining and subdued investments have impacted this sector. Going into the future too, only in the scenario of affirmative policy action, improvements can be expected in this sector. As with regard to high interest rates it is largely believed that the interest rates have peaked.

Services

The services sector has been the chief driver of GDP growth this year. The sector has witnessed broad based growth with the ‘trade, hotels, transport and communication’, ‘financing, insurance, real estate and business services’ and ‘community, social & personal services’ estimated to clock growth rates of 11.2%, 9.1% and 5.9% this year against growth rates of 11.1%, 10.4% and 4.5% respectively last fiscal.  The influence of this sector on the country economy is likely to persist in coming times too.

Expenditure and Investment

Private expenditure, measured as a percentage of market GDP,  is expected to be lower than that in the previous year  both at current and constant prices owing to the general weakness in India’s economic health. While private expenditure measured by Private Final Consumption Expenditure (PFCE) is likely to decline from 58.7% of GDP in 2010-11 to 58.1% in the current year at constant prices, the same at current prices may decline from 56.5% to 56.4% respectively in 2010-11 and 2011-12.

The rate of investment in the economy as seen from the Gross Fixed Capital Formation has witnessed a decline in the last two fiscal. This year too it is expected to decline to 31.9% of GDP at constant prices from 32.5% of GDP in 2010-11 and from 30.4% last year to 29.3% of GDP in 2011-12 at current prices. This drop in investments is largely owing  to  the  global  economic conditions  that  have  impacted  sentiments  and have  prompted deferment of investment decisions.

Impact on Fiscal Deficit

It is now certain that the government would be unable to meet the fiscal deficit target set out in the FY12 budget of 4.6% of GDP.  Although, the government had envisaged borrowing to the tune of Rs.4.17 trillion for the fiscal, owing to revenue and disinvestment short falls and increases in expenditure the government  announced additional borrowing to the tune of Rs.90,000 crs, taking total borrowing for the year to Rs.5.07 trillion. Going by the advance estimates of GDP at market prices for 2011-12, the fiscal deficit for 2011-12 now works out to 5.68% of GDP.

CARE’s view on GDP growth in 2012-13

Based on the present conditions and growth levels, it is expected under conditions of stable inflation at 5%, cautious fiscal deficit with some incentives for investment, lowering of interest rates by 100-150 bps during the year, GDP growth could gradually move towards 7.5% in FY13.

The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation has released the Quick estimates of national income, consumption expenditure, saving and capital formation for the financial year 2010-11.

The estimates of GDP and other aggregates for the previous years have been revised on account of using the new series of the Index of industrial production (IIP) with base 2004-05 and also subsequent revision in Index of industrial productio (WPI).

The revision in estimates is also on account of use of latest available data on agricultural production, industrial production, government expenditure and also detailed and more comprehensive data available from various source agencies.

The salient features of the estimates, which are based on latest available information, are indicated below:

Gross Domestic Product and Gross National Income

Gross domestic product (GDP) at factor cost at constant (2004-05) prices in 2010-11 is estimated at Rs. 48,85,954 crore as against Rs. 45,07,637 crore in 2009-10 registering a growth of 8.4 per cent during the year which is same as in the year 2009-10. At current prices, GDP in 2010-11 is estimated at Rs. 71,57,412 crore as against Rs. 60,91,485 crore in 2009-10, showing an increase of 17.5 per cent during the year.

At constant (2004-05) prices the gross national income at factor cost in 2010-11 is estimated at Rs 48,33,178 crore as against Rs. 44,79,973 crore in 2009-10 showing a rise of 7.9 per cent during the year. At current prices, the gross national income in 2010-11 is estimated at Rs. 70,78,512 crore as compared to Rs 60,53,585 crore in 2009-10, showing a rise of 16.9 per cent during the year.

The growth rate of 8.4 per cent in the GDP during 2010-11 has been achieved due to high growth in transport, storage and communication (14.7%), financing, insurance, real estate & business services (10.4%), trade, hotels & restaurants (9.0%), and construction (8.0%). At constant prices, the primary sector i.e. agriculture, forestry & fishing has shown a high growth of 7.0 per cent during 2010-11 as against 1.0 per cent during the year 2009-10. The growth of secondary sector is 7.2 per cent and that of service sector is 9.3 per cent during 2010-11.

Per Capita National Income

The per capita income (per capita net national income at factor cost) in real terms, i.e. at 2004-05 prices, is estimated at Rs. 35,993 for 2010-11 as against Rs. 33,843 in 2009-10, registering an increase of 6.4 per cent during the year. The per capita income at current prices is estimated at Rs. 53,331 in 2010-11 as against Rs. 46,117 for the previous year depicting a growth of 15.6 per cent.

Consumption expenditure , Saving and Capital Formation

In order to derive the GDP at market prices, the GDP at factor cost is adjusted by adding indirect taxes net of subsidies. Estimates of GDP at market prices for the year 2009-10 has been revised on account of receipt of data on actual collection of indirect taxes from central and state Governments as well as rectification of misclassification of revised estimates of central Government, used in QE 2009-10. As various components of expenditure on gross domestic product, namely, consumption expenditure and capital formation, are normally measured at market prices, the discussion in the following paragraphs is in terms of market prices.

Private Final Consumption Expenditure

Private Final Consumption Expenditure (PFCE) in the domestic market at current prices is estimated at Rs. 43,59,792 crore in 2010-11 as against Rs. 37,22,036 crore in 2009-10. At constant (2004-05) prices, the PFCE is estimated at Rs. 30,87,047 crore in 2010-11 as against Rs. 28,52,301 crore in 2009-10. In terms of GDP at market prices, the rates of PFCE at current and

constant (2004-05) prices during 2010-11 are estimated at 56.8 per cent and 58.9 per cent, respectively, as against the corresponding rates of 57.6 per cent and 59.7 per cent, respectively in 2009-10.

The per capita PFCE in the domestic market in 2010-11 is estimated to be Rs. 36,760 at current prices and Rs. 26,029 at constant (2004-05) prices as against Rs. 31,812 and Rs. 24,379 respectively in 2009-10.

Domestic Saving

Gross domestic saving (GDS) at current prices in 2010-11 is estimated at Rs. 24,81,931 crore as against Rs. 21,82,970 crore in 2009-10, constituting 32.3 per cent of GDP at market prices as against 33.8 per cent in the previous year. The decrease in the rate of GDS has mainly been due to the decrease in the rates of financial savings of household sector from 12.9% to 10.0% and private corporate sector from 8.2 per cent in 2009-10 to 7.9 per cent in 2010-11. However, the rate of savings of public sector increased from 0.2 per cent in 2009-10 to 1.7 per cent in 2010-11. In absolute terms, the saving of the household sector has increased from Rs. 16,39,038 crore in 2009-10 to Rs. 17,49,311 crore in 2010-11, the saving of private corporate sector has gone up from Rs. 5,32,136 crore in 2009-10 to Rs. 6,02,464 crore in 2010-11 and that of public sector has gone up from Rs. 11,796 crore in 2009-10 to Rs. 1,30,155 crore in 2010-11.

Capital Formation

Gross Domestic Capital Formation has increased from Rs. 23,63,670 crore in 2009-10 to Rs. 26,92,031 crore in 2010-11 at current prices and it increased from Rs. 18,38,870 crore in 2009-10 to Rs. 19,74,172 crore in 2010-11 at constant (2004-05) prices. The rate of gross capital formation at current prices is 35.1 per cent in 2010-11 as against 36.6 per cent in 2009-10. The rate of gross capital formation at constant (2004-05) prices is 37.7 per cent in 2010-11 as against 38.5 per cent in 2009-10.

Within the gross capital formation at current prices, the gross fixed capital formation amounted to Rs. 23,31,382 crore in 2010-11 as against Rs. 20,41,758 crore in 2009-10. At current prices, the gross fixed capital formation of the public sector has increased from Rs. 5,43,337 crore in 2009-10 to Rs. 6,19,923 crore in 2010-11, that of private corporate sector from Rs.6,97,451 crore in 2009-10 to Rs. 7,61,107 crore in 2010-11, and the household sector from Rs. 8,00,971 crore in 2009-10 to Rs. 9,50,352 crore in 2010-11.

The change in stocks of inventories, measured as additions to stocks increased at current prices, from Rs. 1,74,310 crore in 2009-10 to Rs 2,54,970 crore in 2010-11. The increase is observed due to increase in change in stocks of all the sectors.

The estimates of National Product, Consumption Expenditure, Saving and Capital Formation at aggregate and per capita levels for the years 2004-05 to 2010-11 are presented in Statement 1 and the detailed estimates at industry/item level in Statements 2 to 10.

The Indian economy is the 12th largest in USD exchange rate terms. India is the second fastest growing economy in the world. India’s GDP has touched US$1.25 trillion. The crossing of Indian GDP over a trillion dollar mark in 2007 puts India in the elite group of 12 countries with trillion dollar economy. The tremendous growth rate has coincided with better macroeconomic stability. India has made remarkable progress in information technology, high end services and knowledge process services.

However cause for concern would be this rapid growth has not been an inclusive in nature, in the sense it has not been accompanied by a just and equitable distribution of wealth among all sections of the population. This economic growth has been location specific and sector specific. For e.g. it has not percolated to sectors were labor is intensive (agriculture) and in states were poverty is acute (Bihar, Orissa, Madhya Pradesh and Uttar Pradesh).

Though India has the second highest growth rate in the world, its rank in terms of human development index (which is broadly used has a measure of life expectancy, adult literacy and standard of living) has gone down to 128 among 177 countries in 2007 compared to 126 in 2006.

Indian GDP –Trend Of Growth Rate

1960-1980 : 3.5%1980-1990 : 5.4% 1990-2000 : 4.4% 2000-2009 : 6.4%

Contribution of Various Sectors in GDP

The contributions of various sectors in the Indian GDP for 1990-1991 are as follows:

Agriculture: - 32%Industry: - 27% Service Sector: - 41%

The contributions of various sectors in the Indian GDP for 2005-2006 are as follows:

Agriculture: - 20% Industry: - 26% Service Sector: - 54%

The contributions of various sectors in the Indian GDP for 2007-2008 are as follows:

Agriculture: - 17% Industry: - 29% Service Sector: - 54%

It is great news that today the service sector is contributing more than half of the Indian GDP. It takes India one step closer to the developed economies of the world. Earlier it was agriculture which mainly contributed to the Indian GDP.

The Indian government is still looking up to improve the GDP of the country and so several steps have been taken to boost the economy. Policies of FDI, SEZs and NRI investment have been framed to give a push to the economy and hence the GDP.

India GDP Growth Rate

The Gross Domestic Product (GDP) in India expanded 6.1 percent in the fourth quarter of 2011 over the previous quarter. Historically, from 2000 until 2011, India's average quarterly GDP Growth was 7.45 percent reaching an historical high of 11.80 percent in December of 2003 and a record low of 1.60 percent in December of 2002. India's

diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Services are the major source of economic growth, accounting for more than half of India's output with less than one third of its labor force. The economy has posted an average growth rate of more than 7% in the decade since 1997, reducing poverty by about 10 percentage points. This page includes: India GDP Growth Rate chart, historical data, forecasts and news. Data is also available for India GDP Annual Growth Rate, which measures growth over a full economic year.

To know how to calculate national income of a country, at first we should know what national income means. The annual income received from various sources in a year on which the economic position of a country depends is determined as the national income of that country. The income of various sectors is to be taken into account to calculate national income. These sectors produce an uncountable range of products ranging from a ball pen to an aero plane. The total sum of these products is the gross production of the country and when the value of these products is calculated in terms of money, it is called national income of a country.

A very famous economist, J.M.Keynes, defined national income as “National income is the money value of all goods and services produced in country during a year.”

As national income shows the economic position of a country, it is a great help in assessing and comparing the progress achieved by a country in a certain period of time.

Some other uses of national income are:

In estimating economic development of a country. In knowing how far the development objectives were achieved. In knowing the contribution of various sectors to national income of a country.

Methods to calculate national income of a country:

Calculating national income is a tough task as it needs a huge amount of facts and figures. Income is normally generated through production process. In a normal house hold, this income is used to purchase goods and services. When demand goes up then we have to produce more.

Symbolically it can be said that the income leads to expenditure which leads to increased production.

To calculate national income, three methods are used:

Production method Income method Expenditure method

1. 1. Production method: It is based on the total production of any economy during a year. In this method, first of all, production units are classified into –

1. I. Primary sector2. II. Secondary sector3. III. Tertiary sector

Primary Secondary Tertiary agriculture Registered industries communication

Forest Non registered industries BankingFishing electricity Public administration

mining Trade Healthmanufacturing Education

Other services

After this various units which come under these categories are identified. The total sum of products of these sectors is the total output of the country. Next to this the total value of these products in the term of money is estimated. Here we calculate all the income received through various sources so the money sent by a citizen working outside the country is also added to it.

The sum found is the gross national income of the country.

GNI = Monetary value of total commodities + income coming from abroad.

Through this method we get to know the contribution of various sectors of a nation.

1. 2. Income method: In this method national income is obtained by adding the reward given to various factors of production like rent to land, wages to labor, interest to capital and profit to organizations. In this method also, the income from abroad is added.

GNI= Rent + wages + interest + profit + income from abroad.

Through this method we get to know the contribution made by different agents like land lords, laborers, capitalists and organizers.

1. 3. Expenditure method: Another calculation method is by adding all the individual expenditure in a country during a year.

GNI= Individual expenditure + government expenditure.

Through this method we can identify the expenditure incurred by different agents.

Limitations in calculating national income:

Less availability of reliable data. Correct record of consumptions is not kept by the individuals. There are no certain criteria to measure the value of services.

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Economic Prospect For Year 2010 -

Global economy is seems to be expanding after a recent shock. Indian Economy, however just felt the blow of the global economic recession and the real economic growth have seen a sharp fall followed by the lower exports, capital outflow and corporate restructuring. It is expected that the global economies continue to stay strong in the short-term as the effect of stimulus is still strong and the tax cuts are working. Due to strong position of liquidity in the market, large corporations now have access to capital in corporate credit markets. 

  India’s Economic Outlook Projection               2007 2008 2009 2010           GDP Growth 

  9.40% 7.30% 7.60% 8.30%

CPI   6.40% 9.30% 5.50% 4.90%

Year 2009 has started on the gloomy note, however the trend reversed from the first quarter of the year, financial markets posted strong gains fueled by huge amount of capital inflows which was set-aside during the economic downturn in search of a higher yield. Number of companies jumped into the equity markets to raise funds to de-leverage themselves, corporate risk have declined. Before the beginning of the economic recession, several companies betted on the better economic future and blindly raised funds thru various options (largely in a way of debt). Real Estate was the hardest hit industry during the recession. Many companies even offloaded their huge amount of stake, in order to meet the deadline to pay-off the short-term debt. Not only

the realty companies which has faced that situation, actually many Small & Medium Enterprises (SMEs) have opted that option to expand themselves aggressively and routed out of the business. As the new year begins, the new wave of optimism has surrounded the economies to expand further from the recent shock, with the expectations of fresh stimulus package, shrink in unemployment rate, expectations of the high inflation, higher interest rates in the emerging economies. Over the next few months, inflation would be a worrisome for the economies. According to the estimates, inflation would likely to reach up to 10%, resulted, the expectations of the monetary policy tightening from the Reserve Bank of India in the second quarter review of monetary policy. Asian economies – Chinese economy in particular, along with India  are in the strongest place for a sustained recovery. There are increasing signs of a recovery in a private domestic demand.

 

Inflation Direction -

Since the global economies are emerging from the lows, in a short run, inflation is expected to rise due to bounce back in demand for commodities. Although, the underlying inflation are still on the downside. Higher unemployment rate in the west will lead to low wage growth and pricing power would be limited for a long time as demand will be very vulnerable to price rises. But, India would buck the trend in inflation due to ample amount of liquidity in the system and rising demand.

India Economy 2010 Overview -

In order to keep the economic growth during the time of worst recession, Federal authorities in India has announced the stimulus packages to prop-up the economic growth. To finance the stimulus packages, Indian Government has raised over $100 billion over the last four quarters in a way to finance the stimulus package. Country’s Public debt, according to the latest data has zoomed to over 50% of the total GDP and India’s Central bank, Reserve Bank of India has started printing new currency notes.

Central Government Debt 

in Rs. Crores (10 Million) Q3 2008 Q3 2009 % of GDP Public Debt (Sum of 1 and 2) 2,099,286.23 2,505,450.74 50.71%1. External Debt 237,351.77 294,941.67 2. Internal Debt 1,861,934.46 2,210,509.07