GDP trends in India


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presentation on changing trends in GDP of India

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GDP trends in India

  1. 1. Trends In Real GDP In India And Shifts In Its Composition<br />A Rising Tide Does Not Lift All Boats<br />Group # 01<br />AbhishekAgrawal (091101)<br />AshwaniDusadh (091111)<br />Imtiaz T.A (091121)<br />PinkeshDhimar (091131)<br />Ritesh Kumar (091141)<br />Shuchi Sharma (091151) <br />PGDBM (A) 2009-2011<br />
  2. 2. GDP And Ways Of Measuring It<br /><ul><li>GDP : Market value of all final goods and services produced within a country in a given period of time
  3. 3. Real GDP: Goods are evaluated at constant (base year) prices
  4. 4. Nominal GDP: Goods are evaluated at current year prices
  5. 5. GDP deflator = (nominal GDP/real GDP) × 100, measures price movement over time</li></li></ul><li>3<br />Spending<br />Revenue<br />Goods & Services sold<br />Goods & Services bought<br />Labor, land, and capital<br />Inputs for production<br />Wages, rent, and profit<br />Income<br />Circular-Flow Diagram (Methods Of Estimating GDP) <br />Market for <br />Goods <br />and Services<br />Firms<br />Households<br />Market for <br />Factors <br />of Production<br />
  6. 6. Methods Of Calculating GDP<br /><ul><li>Expenditure Method: </li></ul>Add different categories of expenditures by households, firms and government together <br />Y = C + I + G + (X – M)<br />Y = GDP, C = consumption expenditure, I = investment expenditure, G = Government expenditure, X = exports, M = imports<br /><ul><li> Value-Added</li></ul>Add “value-added” by all firms together; value-added = value of the output produced by a firm – value of the intermediate goods used to produce it<br /><ul><li>Income Method</li></ul>National income is obtained by summing up the income of all individuals of a country<br />GDP at factor cost = wages + rents + interests + profits<br />
  7. 7. Components Of GDP<br />Agriculture Sector<br />Industry Sector<br />Service Sector<br />
  8. 8. Agriculture Sector<br /><ul><li>Comprises</li></ul>Agriculture <br />Fishing<br />Forestry<br />Portray Farming<br />Horticulture etc…<br />
  9. 9. Industry Sector<br /><ul><li>Comprises :</li></ul>Mining And Quarrying<br />Manufacturing<br />Electricity, Gas And Water-supply<br />
  10. 10. Service Sector<br /><ul><li>Comprises:</li></ul>Construction<br />Trade, Hotels, Transport And Communication<br />Financing, Insurance, Real-estate And Business Services<br />Community, Social And Personal Services<br />
  11. 11. Factors Affecting GDP<br />Government policies, <br />People spending (more or less), <br />Level of investment<br />Climatic Conditions<br />Political Stability<br />World Environment<br />
  12. 12. Source: Handbook of Statistics on Indian Economy 2008-09<br />
  13. 13.
  15. 15. Composition Trend Line<br />Source: Handbook of Statistics on Indian Economy 2008-09<br />
  16. 16. Shift In Compositions Of GDP<br />Source: Handbook of Statistics on Indian Economy 2008-09<br />
  17. 17. Source: Handbook of Statistics on Indian Economy 2008-09<br />Shift In Compositions Of GDP<br />
  18. 18. Source: Handbook of Statistics on Indian Economy 2008-09<br />Shift In Compositions Of GDP<br />
  19. 19. China’s GDP-COMPARISION<br />
  20. 20. Is GDP A Real Index Of Economic Welfare?<br />Ignores everything that happens outside the realm of monetized exchange, regardless of its importance to well-being<br />Household & Volunteer Work<br />Income Distribution<br />Resource Depletion<br />Long-term Environmental Damage<br />Dependence On Foreign Assets<br /><ul><li>Composition as between wage goods and luxuries goods and distribution of goods,war materials
  21. 21. Ignores how is it produced and how the increase in it has been brought about. </li></li></ul><li>NEED TO BE DONE…..<br />For Improvement in GDP Prerequisites are:<br />Improve Governance <br />Raise Educational Achievement <br />Control Inflation <br />Introduce a Credible Fiscal Policy <br />Liberalize Financial Markets <br />Increase Trade with Neighbours <br />Increase Agricultural Productivity <br />Improve Infrastructure <br />Improve Environmental Quality<br />
  22. 22. Conclusion<br /> The illusiveness of this concept of national income is to be seen in its dependence on changes in the purchasing power of the monetary unit. The more inflation progresses, the higher rises the national income. <br />Ludwig von Mises<br />
  23. 23. References<br />Ministry of Finance:<br /><br />Directorate of Data Management Central Excise & Customs.<br />Economic servey 2007-08:<br />Reserve Bank of India:<br />Centre for Monitoring Indian Economy Pvt. Ltd.:<br /><br /><br /> Progress of Banking in India<br />
  24. 24. References<br /><br /><br />Dornbusch R. et al, Macro Economics, Tata McGraw-Hill Publishing Company Limited,NewDelhi,Thirteenth Reprint.<br />H. L. Ahuja, Managerial Economics, S. Chand & Company Ltd., New Delhi, First Edition.<br />RBI handbook<br />
  25. 25. THANK YOU<br />