1) India has experienced rising real GDP growth over time, but the composition of GDP has shifted significantly between sectors. 2) Specifically, the agriculture sector's contribution to GDP has declined substantially as the industry and services sectors have grown. 3) GDP is an imperfect measure of economic welfare as it does not account for income distribution, environmental damage, or non-monetized activities that contribute to well-being. Improvements in key areas like governance, education, infrastructure are needed to further increase India's GDP.

1. Trends In Real GDP In India And Shifts In Its CompositionA Rising Tide Does Not Lift All BoatsGroup # 01AbhishekAgrawal (091101)AshwaniDusadh (091111)Imtiaz T.A (091121)PinkeshDhimar (091131)Ritesh Kumar (091141)Shuchi Sharma (091151) PGDBM (A) 2009-2011

2. GDP And Ways Of Measuring ItGDP : Market value of all final goods and services produced within a country in a given period of time

3. Real GDP: Goods are evaluated at constant (base year) prices

4. Nominal GDP: Goods are evaluated at current year prices

5. GDP deflator = (nominal GDP/real GDP) × 100, measures price movement over time3SpendingRevenueGoods & Services soldGoods & Services boughtLabor, land, and capitalInputs for productionWages, rent, and profitIncomeCircular-Flow Diagram (Methods Of Estimating GDP) Market for Goods and ServicesFirmsHouseholdsMarket for Factors of Production

6. Methods Of Calculating GDPExpenditure Method: Add different categories of expenditures by households, firms and government together Y = C + I + G + (X – M)Y = GDP, C = consumption expenditure, I = investment expenditure, G = Government expenditure, X = exports, M = imports Value-AddedAdd “value-added” by all firms together; value-added = value of the output produced by a firm – value of the intermediate goods used to produce itIncome MethodNational income is obtained by summing up the income of all individuals of a countryGDP at factor cost = wages + rents + interests + profits

7. Components Of GDPAgriculture SectorIndustry SectorService Sector

8. Agriculture SectorComprisesAgriculture FishingForestryPortray FarmingHorticulture etc…

9. Industry SectorComprises :Mining And QuarryingManufacturingElectricity, Gas And Water-supply

10. Service SectorComprises:ConstructionTrade, Hotels, Transport And CommunicationFinancing, Insurance, Real-estate And Business ServicesCommunity, Social And Personal Services

11. Factors Affecting GDPGovernment policies, People spending (more or less), Level of investmentClimatic ConditionsPolitical StabilityWorld Environment

12. Source: Handbook of Statistics on Indian Economy 2008-09

14. GROWTH RATE IN COMPOSITION OF GDP

15. Composition Trend LineSource: Handbook of Statistics on Indian Economy 2008-09

16. Shift In Compositions Of GDPSource: Handbook of Statistics on Indian Economy 2008-09

17. Source: Handbook of Statistics on Indian Economy 2008-09Shift In Compositions Of GDP

18. Source: Handbook of Statistics on Indian Economy 2008-09Shift In Compositions Of GDP

19. China’s GDP-COMPARISION

20. Is GDP A Real Index Of Economic Welfare?Ignores everything that happens outside the realm of monetized exchange, regardless of its importance to well-beingHousehold & Volunteer WorkIncome DistributionResource DepletionLong-term Environmental DamageDependence On Foreign AssetsComposition as between wage goods and luxuries goods and distribution of goods,war materials

21. Ignores how is it produced and how the increase in it has been brought about. NEED TO BE DONE…..For Improvement in GDP Prerequisites are:Improve Governance Raise Educational Achievement Control Inflation Introduce a Credible Fiscal Policy Liberalize Financial Markets Increase Trade with Neighbours Increase Agricultural Productivity Improve Infrastructure Improve Environmental Quality

22. Conclusion 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. Ludwig von Mises

23. ReferencesMinistry of Finance: http://www.finmin.nic.in/the_ministry/http://www.finmin.nic.in/the_ministry/dept_expenditure/index.htmlDirectorate of Data Management Central Excise & Customs.Economic servey 2007-08: http://indiabudget.nic.in/Reserve Bank of India: http://www.rbi.org.in/scripts/statistics.aspxCentre for Monitoring Indian Economy Pvt. Ltd.: http://www.cmie.com/http://dor.gov.in/http://dx.doi.org/10.1787/843875747717http://business.gov.in/outerwin.php?id=http://www.rbi.org.in/scripts/AnnualPublications.aspx?head=Trendand Progress of Banking in India