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G.D.P. Trends in India
The document discusses the trends in India's GDP, covering its definition, historical context, and current economic status, including key sectors that contribute to its growth. It highlights the evolution of the Indian economy through different eras and emphasizes that India has become the fastest growing major economy recently, with substantial contributions from agriculture, industry, and services. Additionally, it notes the significance of state contributions to GDP, with Maharashtra being the richest state, and reflects on the expected positive outcomes of continued GDP growth.
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G.D.P. Trends in India
- 1. GDP Trends InIndia Engineering Economics (UHU 081) Tutorial Presentation Akshay Kalson 101303010 Akshit Arora 101303012 Ankit Goyal 101303022 Ankit Gupta 101303023 Ankur Singh 101303025
- 2. Introduction to GDP ByAkshit Arora (101303012)
- 3.
- 4. What is GDP? “Thetotal market value of all final goods and services produced during a given time period within a nation’s domestic borders”
- 5. What is GDP? “Thetotal market value of all final goods and services produced during a given time period within a nation’s domestic borders” Quarterly / Annually
- 6. GDP = Consumption (C)+ Investment (I) + Government Spending + (Exports - Imports) Components of GDP Or NET EXPORTS
- 7. GDP = Consumption (C)+ Investment (I) + Government Spending + (Exports - Imports) Components of GDP Or NET EXPORTS Represents all purchases of goods and services made by households (65-70%)
- 8. GDP = Consumption (C)+ Investment (I) + Government Spending + (Exports - Imports) Components of GDP Or NET EXPORTS Costs of building factories / homes / regular business expenses / increase or decrease in business inventories
- 9. GDP = Consumption (C)+ Investment (I) + Government Spending + (Exports - Imports) Components of GDP Or NET EXPORTS Expenses on things like national defence, operational expenses.
- 10. GDP = Consumption (C)+ Investment (I) + Government Spending + (Exports - Imports) Components of GDP Or NET EXPORTS Goods and services that are produced within out borders but sold in other countries. Money flows into our economy, exports add to our GDP
- 11. GDP = Consumption (C)+ Investment (I) + Government Spending + (Exports - Imports) Components of GDP Or NET EXPORTS Produced in our country and sold outside our country, money flows out, imports are hence subtracted from GDP
- 12. A: owns $5.00 B: owns $5.00 A:produces $10.00 Example: • Assume that in 2013, a country called A produced only one piece of calculator priced at $10.00. To produce this calculator, country A used $5.00 worth of factors of production owned by citizens of country A and $5.00 worth of factors of production owned by citizens of country B.
- 13. Answer • GDP ofcountryA was $10.00 Because it produced in its own country a good worth $10.00. It does not really matter who owned the factors of production in producing the calculator. • GNI of countryA was $5.00
- 14. List of Countriesby GDP (nominal)
- 15. Indian GDP By AnkitGoyal (101303022)
- 16. History of IndianEconomy The History of Indian Economy can be broadly divided into three phases: • British Era (1793–1947) • Pre-liberalization period (1947–1992) • Post-liberalization period (since 1991)
- 17. British Era (1793–1947) Estimatedper capita GDP of India and United Kingdom from 1700 to 1950, inflation adjusted to 1990 US$. Other estimates suggest a similar stagnation in India's per capita GDP and income during the colonial era.
- 18. Pre-liberalization period (1947–1992) •Indian economic policy after independence was influenced by the colonial experience, which was seen by Indian leaders as exploitative. • In the late 1970s, the government led by Morarji Desai eased restrictions on capacity expansion for incumbent companies, removed price controls, reduced corporate taxes and promoted the creation of small-scale industries in large numbers
- 19. Post-liberalization period (since1991) • Prime Minister Narasimha Rao, along with his finance minister Dr. Manmohan Singh, initiated the economic liberalization of 1991 • By the turn of the 21st century, India had progressed towards a free-market economy • India enjoyed high growth rates for a period from 2003 to 2007 with growth averaging 9% during this period
- 20. Changes in thelast few years(2010-2013) INFLATION • Inflation means a rise in the rise in the general level of prices • Against 72 commodities, accounting for a weight of 13.8 per cent reporting inflation the number declined to 29 commodities with a weight of 5.5 per cent • Inflation has remained muted in the 2013 financial year and declined to a three year low of 6.62 per cent in January 2013
- 21. Employment • Overall employmentin India rose by 6.94 lakh says Economic Survey 2013 • Employment rises because of the development done in the economy by the infrastructure, FDI
- 22. GDPTrend of thecountry The Gross Domestic Product (GDP) in India was worth 2066.90 billion US dollars in 2014.The GDP value of India represents 3.33 percent of the world economy. GDP in India averaged 550.27 USD Billion from 1970 until 2014, reaching an all time high of 2066.90 USD Billion in 2014 and a record low of 63.50 USD Billion in 1970.
- 23. State wise Growthin GDP
- 24. The Present Scenario •The Economy of India is the seventh-largest in the world by nominal GDP • The country is classified as a newly industrialized country, one of the G-20 major economies. • India is member of BRICS and a developing economy with an average growth rate of approximately 7% over the last two decades. • Maharashtra is the richest Indian state and has an annual GDP of US$220 billion, nearly equal to that of Pakistan or Portugal, and accounts for 12% of the Indian GDP followed by the states ofTamil Nadu and Uttar Pradesh. • India's economy became the world's fastest growing major economy from the last quarter of 2014, replacing the People's Republic of China.
- 25. Sectors in IndianEconomy By Ankit Gupta (101303023)
- 26. Three sectors ofEconomy • Primary Sector • Secondary Sector • Tertiary Sector
- 27. Primary Sector • economicactivity is centred from extraction of raw materials from mother earth • Example: Agriculture, Forestry, Mining, Fishing.
- 28. Secondary Sector • economicactivity is centred around manufacturing • Example: production of goods and construction.
- 29. Tertiary Sector • itis all about services, also known as service sector • includes sub-sectors likeTrade; Transport; Storage & warehousing; Communication; Banking; Real Estate; Business services; Public administration
- 30. These sectors areinterdependent
- 31. Contribution of thesesectors
- 32. Change in significanceof sectors with economic development Primary Sector Secondary Sector Tertiary Sector(Service Sector)
- 33. Reason for astrong Service Sector in India • Foreign Companies outsourcing in India. • Highly skilled, low-cost and educated workers. • Strong Primary and Secondary sectors
- 34. Service Sector: IndiaAnd China 9.7 43.9 46.4 China Agriculture Industry Services 18% 25% 57% India
- 35. Indian Agro-Sector By AkshayKalson (101303010)
- 36. Some Facts • Indiais largely an agricultural country. • With 58% of rural households are employed in the agro-sector. • Agro-Sector is crucial contributor to the GDP of Republic Of India and a multi-billion $ industry.
- 37. DidYou Know? • Indiais largest producer, consumer as well as exporter of spices and spice products. • India is the global leader in milk production( #1 ) • India is ranked #3 in farm outputs.
- 38.
- 42. • The foodgrains storage capacity is expected to expand to 35 MT in next 5 years. • The agriculture sector in India is expected to generate better momentum in the next few years due to increased investments in agricultural infrastructure such as irrigation facilities, warehousing and cold storage. • Factors such as reduced transaction costs and time, improved port gate management and better fiscal incentives would contribute to the sector’s growth. • Furthermore, the growing use of genetically modified crops will likely improve the yield for Indian farmers. Future of Agro-Sector
- 43. Indian Industrial Sector ByAnkur Singh (101303025)
- 44. Major Industries inIndia GDP Automobile Industry- GDP Pharmaceutical Industry- GDP Bio-Technological Industry- GDP Cement Industry- GDP Iron and Steel Industry- GDP Aviation Industry- GDP Oil and Natural Gas Industry- GDP Tourism Industry- GDP Textile Industry- GDP Realty Industry- GDP Electronics & Hardware Ind.- GDP
- 45. The Indian economyis the twelfth biggest in the world for it has the GDP of US$ 1.09 trillion in 2007.The country has the second fastest major growing economy in the whole. 1960-1980: 3.5% 1980-1990: 5.4% 1990-2000: 4.4% 2000-2009: 6.4% The trend of growth rate of India's economy demonstrates an upward trend. During the period of 1960 – 1980 the economy saw a growth rate of 3.5% due to the roles of major industries in India GDP. In the years from 1980 to 1990 the growth rate showed a marked improvement of 5.4%, while it was slightly lower in the period from 1990 to 2000 which was at 4.4%.The phase 2000 to 2009 saw a huge improvement and the growth rate of GDP were marked at 6.4 percent.
- 46. The reasons forthe rise of Industry Growth Rate in India GDP The reasons for the increase of Industry Growth Rate in India GDP are that huge amounts of investments are being made in this sector and this has helped the industries to grow. Further the reasons for the rise of the Growth Rate of the Industrial Sector in India are that the consumption of the industrial goods has increased a great deal in the country, which in its turn has boosted the industrial sector. Also the reasons for the increase of Industry Growth Rate in India GDP are that the industrial goods are being exported in huge quantities from the country.
- 47. The Indian governmentmust boost the Industrial Sector Industry Growth Rate in India GDP thus has been registering steady growth over the past few years.This has given a major boost to the Indian economy.The government of India thus must continue to make efforts to boost the industrial sector in the country. For this will in turn help to grow the country's economy.
- 48.
- 50. The Economy ofIndia is the seventh-largest in the world by nominal GDP and the third-largest by purchasing power parity(PPP).The country is classified as a newly industrialised country, one of the G-20 major economies, a member of BRICSand a developing economy with an average growth rate of approximately 7% over the last two decades. Maharashtra(Marathi:महाराष्ट्र) is the richest Indian state and has an annual GDP of US$220 billion, nearly equal to that of Pakistan or Portugal, and accounts for 12% of the Indian GDP followed by the states ofTamil Nadu (US$140 billion) and Uttar Pradesh(US$130 billion). India's economy became the world's fastest growing major economy from the last quarter of 2014, replacing the People's Republic of China
- 51. what will happenif country gdp is high ? 1. income of people increases 2. production increases so definitely employment increases 3. increase in the lifestyle of the citizens 4. per capita income increases so lets hope that in feature our country gdp increases today in 2015-2016 our gdp has increased to 7.6 percent our country is fastest growing economy. the direction of the numbers is very postive.the policyand reform measures the government has undertaken in last one and a half years are showing better results.
Editor's Notes
- #3 Hello everyone we are here to present on the topic GDP trends in India. So let’s start up with Introduction to GDP.
- #4 What is GDP and why is it so important? HEALTH OF COUNTRY --- It represents the total dollar value of all goods and services produced over a specific time period; you can think of it as the size of the economy. GDP attempts to measure the “USE” economy, i.e. the value of finished goods and services ready to be used by consumers, business and government
- #5 Let’s look at the official definition now. And then let’s look at what it means
- #6 Domestic means that we are only counting things that are produced within our borders ---CAN BE PRODUCED BY FOREIGNERS / CITIZENS ----NOTHING THAT IS PRODUCED OUTSIDE OF OUR DOMESTIC BORDERS GETS COUNTED! Not even what citizens produce Measured quarterly / annually. Total market value will be discussed in the formula on next slide
- #7 CONSUMPTION : represents all of the purchases of goods and services made by households ---- ACCOUNTS FOR LARGEST SHARE IN GDP (65-70%) ------ things consumers buy everyday! Cars, computers…. Government Spending: The expenses on things like National Defence, operational expenses etc. INVESTMENT: The costs of building factories / homes / regular business expenses / increases or decreases in business inventories EXPORTS: goods and services that are produced within out borders but sold in other countries. Money flows into our economy, exports add to our gdp IMPORTS: produced in our country and sold outside our country, money flows out, imports are hence subtracted from gdp
- #8 CONSUMPTION : represents all of the purchases of goods and services made by households ---- ACCOUNTS FOR LARGEST SHARE IN GDP (65-70%) ------ things consumers buy everyday! Cars, computers…. Government Spending: The expenses on things like National Defence, operational expenses etc. INVESTMENT: The costs of building factories / homes / regular business expenses / increases or decreases in business inventories EXPORTS: goods and services that are produced within out borders but sold in other countries. Money flows into our economy, exports add to our gdp IMPORTS: produced in our country and sold outside our country, money flows out, imports are hence subtracted from gdp
- #9 CONSUMPTION : represents all of the purchases of goods and services made by households ---- ACCOUNTS FOR LARGEST SHARE IN GDP (65-70%) ------ things consumers buy everyday! Cars, computers…. Government Spending: The expenses on things like National Defence, operational expenses etc. INVESTMENT: The costs of building factories / homes / regular business expenses / increases or decreases in business inventories EXPORTS: goods and services that are produced within out borders but sold in other countries. Money flows into our economy, exports add to our gdp IMPORTS: produced in our country and sold outside our country, money flows out, imports are hence subtracted from gdp
- #10 CONSUMPTION : represents all of the purchases of goods and services made by households ---- ACCOUNTS FOR LARGEST SHARE IN GDP (65-70%) ------ things consumers buy everyday! Cars, computers…. Government Spending: The expenses on things like National Defence, operational expenses etc. INVESTMENT: The costs of building factories / homes / regular business expenses / increases or decreases in business inventories EXPORTS: goods and services that are produced within out borders but sold in other countries. Money flows into our economy, exports add to our gdp IMPORTS: produced in our country and sold outside our country, money flows out, imports are hence subtracted from gdp
- #11 CONSUMPTION : represents all of the purchases of goods and services made by households ---- ACCOUNTS FOR LARGEST SHARE IN GDP (65-70%) ------ things consumers buy everyday! Cars, computers…. Government Spending: The expenses on things like National Defence, operational expenses etc. INVESTMENT: The costs of building factories / homes / regular business expenses / increases or decreases in business inventories EXPORTS: goods and services that are produced within out borders but sold in other countries. Money flows into our economy, exports add to our gdp IMPORTS: produced in our country and sold outside our country, money flows out, imports are hence subtracted from gdp
- #12 CONSUMPTION : represents all of the purchases of goods and services made by households ---- ACCOUNTS FOR LARGEST SHARE IN GDP (65-70%) ------ things consumers buy everyday! Cars, computers…. Government Spending: The expenses on things like National Defence, operational expenses etc. INVESTMENT: The costs of building factories / homes / regular business expenses / increases or decreases in business inventories EXPORTS: goods and services that are produced within out borders but sold in other countries. Money flows into our economy, exports add to our gdp IMPORTS: produced in our country and sold outside our country, money flows out, imports are hence subtracted from gdp
- #13 Let’s look at an example!
- #14 Since the calculator produced was inside country A, the GDP of country A is 10$ But country A owned only 5$ of factors of production, hence it’s GNI is $5 Let’s move on to the next slide
- #15 Today, in terms of nominal GDP, India is at 7th place. There are various reasons associated with why it is at that position. In our presentation we have aimed at explaining some of these reasons in various sectors of Indian economy. But before that, brief history of Indian economy will be explained by my colleague Ankit Goyal in the next few slides.
- #16 Like Akshit has already given an introduction about the concept of economy and gdp of a country. Now I will continue briefing you about the relation of these 2 terms with India and their trends over the past years History of Indian economy
- #18 From the beginning of 19th century British East India Company's gradual expansion and consolidation of power brought a major change in the taxation and agricultural policies, which tended to promote commercialization of agriculture with a focus on trade, resulting in decreased production of food crops, mass impoverishment and destitution of farmers, and in the short term, led to numerous famine leading to a vast difference in gdp growth of both the countries
- #20 In 2003,Goldman Sachs predicted that India's GDP in current prices would overtake France and Italy by 2020, Germany, UK and Russia by 2025 and Japan by 2035, making it the third largest economy of the world, behind the US and China. India is often seen by most economists as a rising economic superpower and is believed to play a major role in the global economy in the 21st century
- #23 Starting in 2012, India entered a period of more anaemic growth, with growth slowing down to 4.4%.]
- #25 India is ranked 130th out of 189 countries in the World Bank's 2015 ease of doing business index. In terms of dealing with construction permits and enforcing contracts, it is ranked among the 10 worst in the world, while it has a relatively favorable ranking when it comes to protecting minority investors or getting credit
- #31 India has a large pool of highly skilled, low cost, and educated workers in the country
- #33 ALL ECONOMIC ACTIVITIES START FROM PRIMARY SECTOR India has a large pool of highly skilled, low cost, and educated workers in the country In early civilization, all activity was in primary sector. When the food production became surplus, peoples need for other products increased. As their bmost basic need was fulfilled. This led to dev. Of secondary sector