India gdp history

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GDP history

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India gdp history

  1. 1. India GDP History<br />1990s and 2000s witnessed major changes in the Indian economy due to economic liberalization in India. This revitalization took place in the whip of balance-of-payment emergency. The government of India allowed private infusions in Indian market which facilitated monetary infusion from FDI and FII. As per the estimate by Ministry of Statistics and Programme Implementation, GDP of India in the year 1990 stood at 5,542,706 in comparison with 842,210 in 1975. Information technology, telecommunications, electronics and hardware, pharmaceuticals, biotechnology, consumer durables, retail, infrastructure, airlines, hospitality, power, etc are sectors which contributed to the success of India GDP history post 1990s.The GDP or Gross Domestic Product is the chief marker used to estimate the wellbeing of a nation's economy. The GDP of a nation is defined as the market price of overall goods and services generated within a country in an allotted time frame. Year 2000 saw a significant rise with GDP touching the benchmark of 20,791,898. Economic History of India from year 2000 to present In the year 2007 gross domestic product was projected at about 8 per cent that of the United States. National Democratic Front directed by Bharatiya Janata Party was vigorously indulged in economic affairs from 1998-2004. Telecom sector in that duration was a spectator of major economic triumph as the Indian government passed universal telecom license in the telecom industry, which sanctioned CDMA license holders to offer GSM services and vice versa. NDA government also proposed the Golden Quadrilateral road network linking main metros of Delhi, Kolkata, Mumbai and Chennai. Education was made an essential right when the constitution of India was revised and huge amount of money was infused into the Sarva Shiksha Abhiyan scheme. But unfortunately ‘education for all’ is still an unaccomplished task in India. Around 34 million graduates were estimated as unemployed nationwide. Economic activities in India lately have adopted an energetic route which can be easily truncated by rickety roads, rigorous scarcity of electricity and unwieldy justice system but at the same time is elevated by the sheer gusto of public and entrepreneurs. In the coming years, the escalating economic growth is assumed to efficiently tackle the short comings and blockages of the infrastructure. This fast changing, ostensibly disorganized and disturbed situations appear to be more optimistic than the socialist muddle at the time of Nehru and Indira Gandhi government. The statistics speak itself for the development which took place in India revealing gross domestic product in the year 2005 as 34,195,278 in comparison with 20,791,898 in the year 2000. Recent developments in Indian GDP Over the past 4 quarters India Gross Domestic Product (GDP) has extended 6.10%. According to World Bank report, India Gross Domestic Product accounts to 1217 billion dollars or 1.96% of the world economy. India being a diverse economy incorporates customary village farming, handicrafts and wide range of contemporary industry and services. Services are considered as a chief factor behind the economic elevation accounting for more than half of India’s productivity. Since 1997, Indian economy has registered an average growth rate of more than 7%, minimizing poverty rate by around 10%. India’s GDP grew at a notable 9.2 per cent in the year 2006-2007. Now that the service sector accounts for more than half of the GDP is a landmark in the economic history of India and helps the nation to come closer to the basics of an industrial economy. Where does India stand? India is positioned as one of the major economies worldwide in terms of the purchasing power parity (PPP) of the gross domestic product (GDP) by chief financial units of the world such as the International Monetary Fund, the CIA and the World Bank. In terms of agricultural output India is the second largest. Industries related to the agriculture have also played an important role in the up gradation of the nation’s economy by opening up employment avenues in the forestry, fishing and logging sectors. For the elevation in the production volume in Indian agriculture various five year plans should also be given due credit. Improvements in irrigation methods as well as usage of modern technologies have also added value to the agriculture processes. In terms of factory output India ranks 14th in quantity produced by industrial sector. Gas, mining, electricity and quarrying industries also play major developmental roles and contribute in a major way to the GDP.<br />Calculating GDP is extremely important has the performance of the economy is fixed by means of this method. The results would help the country to forecast the economic progress, determine the demand and supply, understand the buying power of the people, the per capita income, the position of the economy in the global arena. The Indian GDP is calculated by the expenditure method.<br />By Calculating GDP the performance of the Indian economy can be determined. The GDP of the country states the number of goods and services produced in a financial year. It is the yardstick of measuring the functioning of the economy.<br />Indian Economy-Facts on India GDP<br />The Indian economy is the 12th largest in the world<br />It ranks 5th pertaining to purchasing power parity (PPP) according to the latest calculation of the World Bank<br />The GDP of India in the year 2007 was US $1.09 trillion<br />India is the one of the most rapidly growing economies in the world<br />The growth rate of the India GDP was 9.4% per year<br />Due to the huge population the per capita income in India is $964 at nominal and $4,182 at PPP<br />Points to remember while calculating GDP<br />Calculating India GDP has to be done cautiously pertaining to the diversity of the Indian Economy.<br />There are different sectors contributing to the GDP in India such as agriculture, textile, manufacturing, information technology, telecommunication, petroleum, etc.<br />The different sectors contributing to the India GDP are classified into three segments, such as primary or agriculture sector, secondary sector or manufacturing sector, and tertiary or service sector.<br />With the introduction of the digital era, Indian economy has huge scopes in the future to become one of the leading economies in the world.<br />India has become one of the most favored destinations for outsourcing activities.<br />India at present is one of the biggest exporter of highly skilled labor to different countries<br />The new sectors such as pharmaceuticals, nanotechnology, biotechnology, telecommunication, aviation, manufacturing, shipbuilding, and tourism would experience very high rate of growth<br />How to calculate GDP-<br />The method of Calculating India GDP is the expenditure method, which is, GDP = consumption + investment + (government spending) + (exports-imports) and the formula is GDP = C + I + G + (X-M)Where, <br />C stands for consumption which includes personal expenditures pertaining to food, households, medical expenses, rent, etc<br />I stands for business investment as capital which includes construction of a new mine, purchase of machinery and equipment for a factory, purchase of software, expenditure on new houses, buying goods and services but investments on financial products is not included as it falls under savings<br />G stands for the total government expenditures on final goods and services which includes investment expenditure by the government, purchase of weapons for the military, and salaries of public servants<br />X stands for gross exports which includes all goods and services produced for overseas consumption<br />M stands for gross imports which includes any goods or services imported for consumption and it should be deducted to prevent from calculating foreign supply as domestic supply<br />For information click on the following Links: <br />India GDP Purchasing Power Parity (PPP) Exchange Rate<br />

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