GDP Trends In IndiaEngineering

Economics (UHU 081) Tutorial Presentation

Akshay Kalson 101303010

Akshit Arora 101303012Ankit Goyal 101303022Ankit Gupta 101303023Ankur Singh 101303025

Introduction to GDPBy Akshit Arora (101303012)

What is GDP?

GDP

rossomesticroduct

What is GDP?

“The total market value of all final goods and services produced

during a given time period within a nation’s domestic borders”

What is GDP?

“The total market value of all final goods and services produced

during a given time period within a nation’s domestic borders”

Quarterly / Annually

GDP = Consumption (C) + Investment (I) +

Government Spending + (Exports - Imports)

Components of GDP

Or NET EXPORTS

GDP = Consumption (C) + Investment (I) +

Government Spending + (Exports - Imports)

Components of GDP

Or NET EXPORTS

Represents all purchases of goods and services made by households (65-70%)

GDP = Consumption (C) + Investment (I) +

Government Spending + (Exports - Imports)

Components of GDP

Or NET EXPORTS

Costs of building factories / homes / regular business

expenses / increase or decrease in business

inventories

GDP = Consumption (C) + Investment (I) +

Government Spending + (Exports - Imports)

Components of GDP

Or NET EXPORTS

Expenses on things like national defence,

operational expenses.

GDP = Consumption (C) + Investment (I) +

Government Spending + (Exports - Imports)

Components of GDP

Or NET EXPORTS

Goods and services that are produced within out borders but sold in other countries. Money flows into our economy, exports add to our GDP

GDP = Consumption (C) + Investment (I) +

Government Spending + (Exports - Imports)

Components of GDP

Or NET EXPORTS

Produced in our country and sold outside our country, money flows out, imports are hence subtracted from GDP

A: owns $5.00

B: owns $5.00

A: produces $10.00

Example:

• Assume that in 2013, a country called A produced only one piece of calculator priced at $10.00. To produce this calculator, country A used $5.00 worth of factors of production owned by citizens of country A and $5.00 worth of factors of production owned by citizens of country B.

Answer

• GDP of country A was $10.00Because it produced in its own country a good worth $10.00. It does not really matter who owned the factors of production in producing the calculator.• GNI of country A was $5.00

List of Countries by GDP (nominal)

Indian GDPBy Ankit Goyal (101303022)

History of Indian EconomyThe History of Indian Economy can be broadly divided into three phases:• British Era (1793–1947)• Pre-liberalization period (1947–1992)• Post-liberalization period (since 1991)

British Era (1793–1947)

Estimated per capita GDP of India and United Kingdom from 1700 to 1950, inflation adjusted to 1990 US$. Other estimates suggest a similar stagnation in India's per capita GDP and income during the colonial era.

Pre-liberalization period (1947–1992)

• Indian economic policy after independence was influenced by the colonial experience, which was seen by Indian leaders as exploitative.

• In the late 1970s, the government led by Morarji Desai eased restrictions on capacity expansion for incumbent companies, removed price controls, reduced corporate taxes and promoted the creation of small-scale industries in large numbers

Post-liberalization period (since 1991)

• Prime Minister Narasimha Rao, along with his finance minister Dr. Manmohan Singh, initiated the economic liberalization of 1991

• By the turn of the 21st century, India had progressed towards a free-market economy• India enjoyed high growth rates for a period from 2003 to 2007 with growth averaging 9% during this period

Changes in the last few years(2010-2013)INFLATION

• Inflation means a rise in the rise in the general level of prices• Against 72 commodities, accounting for a weight of 13.8 per

cent reporting inflation the number declined to 29 commodities with a weight of 5.5 per cent

• Inflation has remained muted in the 2013 financial year and declined to a three year low of 6.62 per cent in January 2013

Employment

• Overall employment in India rose by 6.94 lakh says Economic Survey 2013

• Employment rises because of the development done in the economy by the infrastructure, FDI

GDP Trend of the country

The Gross Domestic Product (GDP) in India was worth 2066.90 billion US dollars in 2014. The GDP value of India represents 3.33 percent of the world economy. GDP in India averaged 550.27 USD Billion from 1970 until 2014, reaching an all time high of 2066.90 USD Billion in 2014 and a record low of 63.50 USD Billion in 1970.

State wise Growth in GDP

The Present Scenario• The Economy of India is the seventh-largest in the world

by nominal GDP • The country is classified as a newly industrialized country, one of

the G-20 major economies.• India is member of BRICS and a developing economy with an

average growth rate of approximately 7% over the last two decades. • Maharashtra is the richest Indian state and has an annual GDP of

US$220 billion, nearly equal to that of Pakistan or Portugal, and accounts for 12% of the Indian GDP followed by the states of Tamil Nadu and Uttar Pradesh.

• India's economy became the world's fastest growing major economy from the last quarter of 2014, replacing the People's Republic of China.

Sectors in Indian EconomyBy Ankit Gupta (101303023)

Three sectors of Economy

• Primary Sector• Secondary Sector • Tertiary Sector

Primary Sector

• economic activity is centred from extraction of raw materials from mother earth

• Example: Agriculture, Forestry, Mining, Fishing.

Secondary Sector

• economic activity is centred around manufacturing

• Example: production of goods and construction.

Tertiary Sector• it is all about services, also

known as service sector• includes sub-sectors like Trade;

Transport; Storage & warehousing; Communication; Banking; Real Estate; Business services; Public administration

These sectors are interdependent

Contribution of these sectors

Change in significance of sectors with economic development

Primary Sector

Secondary Sector

Tertiary Sector(Servic

e Sector)

Reason for a strong Service Sector in India

• Foreign Companies outsourcing in India.• Highly skilled, low-cost and educated workers.• Strong Primary and Secondary sectors

Service Sector: India And China

9.7

43.9

46.4

China

AgricultureIndustryServices

18%

25%57%

India

Indian Agro-SectorBy Akshay Kalson (101303010)

Some Facts• India is largely an agricultural country.• With 58% of rural households are employed in the

agro-sector.• Agro-Sector is crucial contributor to the GDP of

Republic Of India and a multi-billion $ industry.

Did You Know?• India is largest producer, consumer as well as

exporter of spices and spice products.• India is the global leader in milk production( #1 )• India is ranked #3 in farm outputs.

Sector-Wise Contribution to GDP

• The food grains storage capacity is expected to expand to 35 MT in next 5 years.

• The agriculture sector in India is expected to generate better momentum in the next few years due to increased investments in agricultural infrastructure such as irrigation facilities, warehousing and cold storage.

• Factors such as reduced transaction costs and time, improved port gate management and better fiscal incentives would contribute to the sector’s growth.

• Furthermore, the growing use of genetically modified crops will likely improve the yield for Indian farmers.

Future of Agro-Sector

Indian Industrial SectorBy Ankur Singh (101303025)

Major Industries in India GDPAutomobile Industry- GDPPharmaceutical Industry- GDPBio-Technological Industry- GDPCement Industry- GDPIron and Steel Industry- GDPAviation Industry- GDPOil and Natural Gas Industry- GDPTourism Industry- GDPTextile Industry- GDPRealty Industry- GDPElectronics & Hardware Ind.- GDP

The Indian economy is the twelfth biggest in the world for it has the GDP of US$ 1.09 trillion in 2007. The country has the second fastest major growing economy in the whole.1960-1980: 3.5%1980-1990: 5.4%1990-2000: 4.4%2000-2009: 6.4%

The trend of growth rate of India's economy demonstrates an upward trend. During the period of 1960 – 1980 the economy saw a growth rate of 3.5% due to the roles of major industries in India GDP. In the years from 1980 to 1990 the growth rate showed a marked improvement of 5.4%, while it was slightly lower in the period from 1990 to 2000 which was at 4.4%. The phase 2000 to 2009 saw a huge improvement and the growth rate of GDP were marked at 6.4 percent.

The reasons for the rise of Industry Growth Rate in India GDPThe reasons for the increase of Industry Growth Rate in India GDP are that huge amounts of investments are being made in this sector and this has helped the industries to grow. Further the reasons for the rise of the Growth Rate of the Industrial Sector in India are that the consumption of the industrial goods has increased a great deal in the country, which in its turn has boosted the industrial sector. Also the reasons for the increase of Industry Growth Rate in India GDP are that the industrial goods are being exported in huge quantities from the country.

The Indian government must boost the Industrial SectorIndustry Growth Rate in India GDP thus has been registering steady growth over the past few years. This has given a major boost to the Indian economy. The government of India thus must continue to make efforts to boost the industrial sector in the country. For this will in turn help to grow the country's economy.

CONCLUSION

The Economy of India is the seventh-largest in the world by nominal GDP and the third-largest by purchasing power parity(PPP). The country is classified as a newly industrialised country, one of the G-20 major economies, a member of BRICSand a developing economy with an average growth rate of approximately 7% over the last two decades. Maharashtra(Marathi:महाराष्ट्र) is the richest Indian state and has an annual GDP of US$220 billion, nearly equal to that of Pakistan or Portugal, and accounts for 12% of the Indian GDP followed by the states of Tamil Nadu (US$140 billion) and Uttar Pradesh(US$130 billion). India's economy became the world's fastest growing major economy from the last quarter of 2014, replacing the People's Republic of China

what will happen if country gdp is high ?

1. income of people increases2. production increases so definitely

employment increases3. increase in the lifestyle of the citizens4. per capita income increases

so lets hope that in feature our country gdp increasestoday in 2015-2016 our gdp has increased to 7.6 percentour country is fastest growing economy.the direction of the numbers is very postive.the policyand reform measures the government has undertaken in last one and a half years are showing better results.