INDIAN ECONOMY GROWTH

We came to India for the costs, stayed for the quality and are now investing for innovation”

(Economic Competitiveness Policy Group, UK)

Presented By:-Abhishek Shandilya- Introduction, Key social indicator, Indian economic fact.

Ojas Bagal-GDP And Growth of GDP

Akhil kamat-Sector of India

Samarjeet Saluja-Sector(cont.),Government revenue

Nandini Dubey-Government expenditure

Shubhangi Sharma-Impact of FDI & Conclusion

20 year(since liberalization)6 Governments.6 Prime MinistersONE DIRECTION 10% GDP GROWTH

India:-An Introduction

GDP:-$1.884 trillionGDP growth-8.5(real)GDP P.C.I-$1,371Inflation-9.39%Unemployment-9.4%Public Debt-74.6% of GDPForeign reserve-$319 billion

GROSS DOMESTIC PRODUCTGDP : Gross domestic product (GDP) refers to the

market value of all 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 : total income of everyone in the economy adjusted to the level of prices.

Nominal GDP :value of goods and services measured at current prices.

Nominal GDPCurrent nominal GDP is $2 trillion .

Real GDPReal GDP = Nominal GDP / GDP deflatorCurrent real GDP is $1 trillion

GOVERNMENT EXPENDITUREGovernment spending (or government

expenditure) includes all government consumption, investment but excludes transfer payments made by a country.

Types of Government Expenditures : Subsidies Defense Infrastructure Social securities schemes Interest on debt Education and health , etc. 

Service SectorThe tertiary sector of the economy (also known as the service

sector ) that produce intangible goods .

Service Industries :

Information Sector Services; Tourism Industry; Telecom Industry; Banking Industry; Health Care and Social Assistance; Arts, Entertainment and Recreation Services.

Service Sector in Economic Growth:-

Exports have BoomedExpansion of Employment Incidence of poverty has been reducedIncrease in FDIs

Adoption of more productive technologies from abroad

Helps in Importing goods and servicesProvide Subsidies Human Development Index Increases

Impact of Government Revenue Sources:-

SUBSIDY BY GOVERNMENT:-The Indian government, since Independence has

been subsidizing many industries and products, from gasoline to food. Loss making state-owned enterprises are supported by the government. Water is free and paid by the state. Farmers are given electricity for free

PUBLIC HEALTH EXPENDITURE:-Public health expenditure consists of capital spending

from government (central and local) budgets and social (or compulsory) health insurance funds.

Government expenditure on defense includes all current and capital expenditures on the armed forces, including peacekeeping forces; defense ministries and other government agencies engaged in defense projects.

IMPACT OF FDI ON INDIAN ECONOMIC GROWTH

India is widely recognized as an emerging global economic power.

Indian economy recorded rate of economic growth 8.4 per cent in the current fiscal year 2005-06.

Foreign direct investment has been seen as a dominant determinant to achieve high rate OF ECONOMIC GROWTH.

increase in the foreign collaboration approvals during the

period 1981-1990 (7436 collaborations were approved).

The major feature of policy regarding foreign investment up to 51 per cent of equity holding was too PERMITTED.

TOP MOST TRADING PARTNERS OF INDIAN ECONOMY

CONCLUSION

DURING last three decades, Indian economy has witnessed a significant shift in its position in the world economy.

The last three decades have witnessed a shift in the structure of world GDP .

away from US‐ the single largest economy, in favour of emerging economy like india.

An independent study1 suggests that: by 2025, the share of Indian economy in the world GDP is expected to scale up from 6 per cent in 2002 to 11 per cent in 2025.