TRENDS IN GDP IN INDIA (GROSS DOMESTIC PRODUCT)

BY

S. Aakash

N. Ashok Kumar

GDP WAS FIRST DEVELOPED BY SIMON KUZNETS FOR A US CONGRESS REPORT IN 1934, WHO IMMEDIATELY SAID NOT TO USE IT AS A MEASURE FOR WELFARE (SEE BELOW UNDER LIMITATIONS). AFTER THE BRETTON WOODS CONFERENCE IN 1944, GDP BECAME THE MAIN TOOL FOR MEASURING THE COUNTRY'S ECONOMY.

GDP ( GROSS DOMESTIC PRODUCT)

Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period.

GDP per capita is often considered an indicator of a country‘s standard of living.

REAL GDP: GOODS ARE EVALUATED AT A CONSTANT (BASE YEAR) PRICES

NOMINAL GDP: GOODS ARE EVALUATED ATA CURRENT YEAR PRICES

COMPONENTS OF GDP

AGRICULUTURE SECTOR

INDUSTRY SECTOR

SERVICE SECTOR

AGRICULTURE SECTOR

Comprises

- Agriculture

- Fishing

- Forestry

- Portary Farming

- Horticulture ….etc

It is the largest source of the National Income since independence. It gives lagre no.of Employment more than 70% of working population employed in agriculture.

Now a days the contribution of primary sector

Is keep on decreasing.

PERCENTAGES OF THE AGRICULTURAL PRODUCTIVITY TO NATION INCOME (1950 – 2010)

1950-51 - 55.4%

1970-71 - 44.5%

1990-91 - 30.9%

2010-11 - 24.7%

INDUSTRY SECTOR

Comprises:

- Mining and Quarrying

- Manufacturing

- Electricity , Gas and Water-Supply

We know the industrial sector raising in 1970’s. industrial policy resolution of 1956 the gave dominate role in public sector.

The industrial growth rate has been over 6% since 1951. as a result it’s contribution to GDP has moved up sharply from 6% to 31% at present.

The second five year plan has been allocated amounts of

1. Public sector investment - 870 crores

2. Private sector investment – 675 crores

3. Village and Small scale investment - 265 crores

SERVICE SECTOR Comprises

- Construction

- Trade, Hotels, Transport and Communication

- Financing, Insurance, Real estate and business

services

- Community, Social and Personal Services.

It is the highest National Income contributed of all the sectors. The share in first five year plan and it has been increased to 72% 10th five yearplan.

It’s share in GDP in 1950 is 28% and in 2002 is 48.8%

FACTORS AFFECTING GDP

Government Policies

People Spending (more or less)

Level of Investment

Cilmatic Conditions

Political Stability

World Environment

GOVERNMENT POLICIES

Indian Government was taken more steps to increase the GDP since Independence, those are

1. Liberalisation of Indian Economy(Single window system)

2. Global Trade Relations

3. Foreign Direct Investment

4. Employment Generating Programmes

5. Steps to avoid Curruption

Trend GDP growth rates in India (%)Industry 2011-12 2012-13

Q1 Q2 Q3 Q4 Q1

Agriculture 3.7 3.1 2.8 1.7 2.9

Industry 5.6 3.7 2.5 1.9 3.6

Mining & quarrying -0.2 -5.4 -2.8 4.3 0.1

Manufacturing 7.3 2.9 0.6 -0.3 0.2

Electricity, gas & water supply 7.9 9.8 9.0 4.9 6.3

Construction 3.5 6.3 6.6 4.8 10.9

Services 10.2 8.8 8.9 7.9 6.9

Trade, hotels, transport & communication 13.8 9.5 10.0 7.0 4.0

Financing, insurance, real estate & business services

9.4 9.9 9.1 10.0 10.8

Community, social & personal services 3.2 6.1 6.4 7.1 7.9

GDP at factor cost 8.0 6.7 6.1 5.3 5.5

Source: CSO & FICCI Research

PRESENT STATISTICS

GDP Growth (2012) - Q 1 - 6.9 %

GDP - $1,847 (nominal,2011) GDP - $4,550( ppp, 2011)

GDP Per capita - $1,514( nominal) GDP - $ 3,652( ppp)

GDP by Sector : Agriculture – 17.2%

Industry - 26.4%

Service - 56.4%

THANK YOU