GDP INDIAN APPROACH
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Transcript of GDP INDIAN APPROACH
“Government's view of the economy could be summed up in a
few short phrases:
If it moves, tax it. If it keeps moving, regulate it.
And if it stops moving, subsidize it”
RONALD REAGANFORMER U.S. PRESIDENT
GDP -DEFINITION
Measurement of gdp
LIMITATIONS OF GDP…
• assumes that every monetary transaction adds to well-being
• ignores everything that happens outside the realm of monetized exchange
• treats crime, divorce and natural disasters as economic gain
• ignores the non-market economy of household and community
• treats the depletion of natural capital as income• takes no account of income distribution• ignores the drawbacks of living on foreign assets
Moving up AGAINST all odds…
• 16 years• 6 governments• 5 prime ministers• ONE DIRECTION• 9% GDP growth
• India ranks second worldwide in farm output, employ 60% of the total workforce: PRIMARY SECTOR
• India is fourteenth in the world in factory output, employ 17% of the total workforce: SECONDARY SECTOR
• India is fifteenth in services output, employ 23% of the total workforce: TERTIARY SECTOR
205 223319 347
103 91
116117
104 109
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Services Agriculture Industry
The sound performance of each industry segment is leading to The overall robust performance of the Indian economy
India's GDP: 2002-07
424484 534
590 631
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GDP at Constant Prices
4%
8.5% 7.5%
8.4%9.4%
India’s GDP witnessed high growth and was the second fastest growing GDP after China
SHARE IN INCREMENTAL WORLD GDP
GDP – USD 590 billion
GDP growth rate – 9 %
Services contribution – 54 %
FDI limit not 100 percent in major industry sectors such as Telecom, Semiconductors, Automobiles, etc.
Balance of Trade – USD (-)46.2 billion
Investment goal – USD 250 billion
GDP – USD 590 billion
GDP growth rate – 9 %
Services contribution – 54 %
FDI limit not 100 percent in major industry sectors such as Telecom, Semiconductors, Automobiles, etc.
Balance of Trade – USD (-)46.2 billion
Investment goal – USD 250 billion
20062006 GDP – USD 750 billion
GDP growth rate – 9.5%
Services contribution – 60 %
FDI limit is expected to be close to 100 percent in major industry sectors such as Telecom, Semiconductors, Automobiles, etc.
Balance of Trade – Should increase with surging exports as compared with imports
Investment goal – USD 305 billion
GDP – USD 750 billion
GDP growth rate – 9.5%
Services contribution – 60 %
FDI limit is expected to be close to 100 percent in major industry sectors such as Telecom, Semiconductors, Automobiles, etc.
Balance of Trade – Should increase with surging exports as compared with imports
Investment goal – USD 305 billion
20082008
GDP – USD 900 billion
GDP growth rate – 9%
Services contribution – 60-65 %
FDI limit is expected to be 100 percent in major industry sectors such as Telecom, Semiconductors, Automobiles, etc.
Balance of Trade – Should be positive with increased level of exports as compared with imports
Investment goal – USD 370 billion
GDP – USD 900 billion
GDP growth rate – 9%
Services contribution – 60-65 %
FDI limit is expected to be 100 percent in major industry sectors such as Telecom, Semiconductors, Automobiles, etc.
Balance of Trade – Should be positive with increased level of exports as compared with imports
Investment goal – USD 370 billion
20102010
GROWTH EXPECTED IN INDIA
To sustain the GDP growth of more than 8 percent, India requires an investment of USD 1.5 trillion in the next five years
USD 12.1 billion Tata Steel buys Corus Plc
USD 6 billion Hindalco acquired Novelis Inc.
USD 1.58 billion Essar Steel acquired Algoma Steel
USD 730 million Videocon Industries acquired Daewoo
Electronics Corporation Limited
USD 1.6 billion Suzlon Energy Ltd. acquires REpower
USD 11 billion Vodafone buys Hutch
USD 0.98 billion Aditya Birla Group increased its stake in Idea Cellular by acquiring 48.14-percent stake
USD 1 billionPlans investment in private equity, real estate, and private wealth management
USD 1.7 billionPlans to spend on its development operations in India over the next four years
USD 0.905 billion
Renault, Nissan and Mahindra & Mahindra has initiated a Greenfield automobile plant project in Chennai.
Mylan Laboratories acquired a majority stake in Matrix Laboratories USD 0.74 billion
CAN INDIA MAINTAIN ITS
HUGE GROWTH RATE???