Economic comparison of india & Australia

1. Economic comparison of
India & Australia
BY GROUP 10

2. Content
Introduction
GDP comparison
Inflation
Unemployment scenario
International Trade norms
Conclusion

3. Introduction
INDIA
Seventh largest economy & third
largest by Purchasing Power Parity.
Economic liberalisation of 1991 moved
it to market-based economy.
Fastest growing economy
GDP growth rate at 7.3% currently
Fiscal deficit at 6.5%
Consumer Price Inflation ranges
between 8.9% to 12%
AUSTRALIA
Twelfth largest economy &
seventeenth largest by Purchasing
Power Parity.
Nineteenth largest importer &
exporter.
Major contributor in GDP is service
sector followed by mining and
agriculture sector.

4. GDP Comparison

5. India
19%
32%
49%
Contribution to GDP
Agriculture Industry Services
-5E+11
0
5E+11
1E+12
1.5E+12
2E+12
2.5E+12
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
INDIA's GDP (In Billion)

6. Australia
0
2E+11
4E+11
6E+11
8E+11
1E+12
1.2E+12
1.4E+12
1.6E+12
1.8E+12
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
AUS GDP (In Billion)
58%
5%
7%
9%
7%
Contribution to GDP
Services Retail Trade
Mining Construction

8. The Governor and treasurer agreed to achieve inflation rate of 2-3% on average
over the cycle.
This approach allows a role for monitory policy in dampening the fluctuation in
output.
CPI increase by 1.3% from 1.0% in Q3-2016
Desire of Australians to be well educated and healthy is proving an expensive one.
Australia

11. India
Major reasons of inflation in India are price increase in food and crude oil , black money, wage
rate and sub prime crisis.
In 2009-10 there was a supply shortage cereals, pulses, wheat and rice due drought in
country.
To reduce the gape between aggregate demand and supply, India must increase the current
production capacity or build a new one.
RBI in its December policy review CPI inflation to be at 4% in November and expecting 5% in
financial year 2018, consistent with the RBI’s 2-6% inflation target.
On 7 December, RBI kept interest rate unchanged, while it slashed the economic growth
projection by half a per cent to 7.1% in the first policy review post demonetisation.

12. Future trend

14. Employment scenario

15. 6 5.8 5.7 5.7 5.7 5.8 5.7 5.7 5.6 5.6 5.6
8.75
8.44
8.75
9.02
9.66
8.92
8.47
9.54
8.97
6.34
5.69
0
2
4
6
8
10
12
January February March April May June July August September October November
Unemployment Rate
Australia India

16. Agriculture
53%
Service sector
11%
Manufacturin
g
25%
Non
Manufacturing
11%
Sector Wise Employment in India
Agriculture
3%
Service sector
80%
Manufacturing
8%
Non
Manufacturing
9%
Sector Wise Employment in Australia

17. Unemployment rate in India increased
to 5.69% from 4.9%
URL: Collaboration by CMIE & BSE
Unemployment rate in Australia at a
steady 5.6%
URL: Australian Bureau of Statistics

18. India

19. Australia

20. International Trade

21. Net Export
(India & Australia)
-9.000
-8.000
-7.000
-6.000
-5.000
-4.000
-3.000
-2.000
-1.000
0.000
1.000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
NETEXPORT
YEAR
NET EXPORT
INDIA NET EXPORT AUSTRALIA NET EXPORT

22. Net Export Analysis
A country that is importing more goods than it is exporting is experiencing a trade deficit.
More trade-based money is flowing out of the country than the amount flowing in.
Australian exports and exporters have had to cope with three major reasons over the
course of previous 10 years:-
• First, there was a further decline in the rate of economic growth in Australia’s largest
export market according to the official data, the annual rate of Australian GDP growth had
slowed to seven per cent by the second quarter of 2015.
• Second, world trade growth has continued to fail to gain any significant momentum over
the past few years.
• The third headwind was the continued decline in commodity prices. For example, in the
case of Australia’s leading export, after ending 2013-14 at US$92.74/t, the price of iron ore
had slumped to US$62.29/t by the end of 2014-15.

23. Net Export (India)
India’s latest export and import figures for may 2015 reflect the subdued economic scenario
both globally and within the country. India’s exports contracted 20.2 per cent to $22.3
billion from what they were in may 2014, while its imports were down 16.5 per cent over the
same period.
The consensus is that poor global growth—especially in the us, china, the euro area and
japan—will continue to affect India's exports detrimentally.
Import growth, on the other hand, might bounce back if gold imports continue trending
up. Data shows gold import growth has been positive since august 2014.
India's key exports are engineering goods, petroleum products, gems and jewelry,
agriculture products and textiles. It is also a major exporter of information technology and
business outsourcing services.

24. Thank you.