

GDP Trends In
India

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 Introduction to GDP
2
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What is

GDP?

Gross

D omestic

Product
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 What is
GDP?

“The total market value of all final goods

and services produced during a given time
period within a nation’s domestic
borders”

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 What is GDP?

“The total market value of all final goods

and services produced during a given time
period within a nation’s domestic
borders”
Quarterly / Annually

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 Components of GDP

GDP =
Consumption (C) +
Or NET EXPORTS
Investment (I) +
Government Spending +
(Exports - Imports)

6
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 Components of GDP

Represents all purchases of
goods and services made by
households (65-70%)
GDP =
Consumption (C) +
Or NET EXPORTS
Investment (I) +
Government Spending +
(Exports - Imports)

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 Components of GDP

Costs of building factories /
homes / regular business
expenses / increase or decrease in GDP =
business inventories
Consumption (C) +
Or NET EXPORTS
Investment (I) +
Government Spending +
(Exports - Imports)

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 Components of GDP

Expenses on things like national
defence, operational expenses. GDP =
Consumption (C) +
Or NET EXPORTS
Investment (I) +
Government Spending +
(Exports - Imports)

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 Components of GDP

Goods and services that are
produced within out borders but
sold in other countries. Money
flows into our economy, exports
GDP =
add to our GDP
Consumption (C) +
Or NET EXPORTS
Investment (I) +
Government Spending +
(Exports - Imports)

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 Components of GDP

GDP =
Consumption (C) +
Or NET EXPORTS
Investment (I) +

Produced in our country and sold

Government Spending +
outside our country, money flows (Exports - Imports)
out, imports are hence
subtracted from GDP

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 Exam A: owns

ple: 
$5.00

• Assume that in 2013, a country called

A produced only one piece of B: owns
calculator priced at $10.00. To $5.00
produce this calculator, country A
used $5.00 worth of factors of
production by
owned A and $5.00 worth
country citizens
of factors
of A: produces
of production owned by citizens of $10.00
country B.
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 Ans

wer
• GDP of country A 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 country A was $5.00

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List of Countries by
GDP (nominal)

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 History of Indian
Economy

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)

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Indian GDP
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 British Era (1793–1947)

Estimated per 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.

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 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

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 Post-liberalization period
(since 1991)


• 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

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 Changes in the last 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

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 GDP Trend of
the country


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.
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 Employ
ment

• Overall employment in India rose by 6.94 lakh says Economic Survey 2013
• Employment rises because of the development done in the economy by
the infrastructure, FDI

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 State wise
Growth in GDP


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 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 of Tamil 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.
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Sectors in Indian Economy
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 Three sectors of

Economy

• Primary Sector
• Secondary Sector
• Tertiary Sector

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 Primary

Sector
• economic activity is centred from extraction of
raw materials from mother earth
• Example: Agriculture, Forestry,
Mining, Fishing.

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 Secondary

Sector
• economic activity is centred around
manufacturing
• Example: production of goods and
construction.

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 Tertiary
•

Sector
it is all about services, also known as
service sector
• includes sub-sectors like Trade;
Transport; Storage & warehousing;
Communication; Banking; Real Estate;
Business services; Public administration

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These sectors are

interdependent

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Contribution of
these sectors


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Change in significance of
sectors with

economic
Tertiary
development
Primary Sector
Sector(Service
Sector)

Secondary
Sector

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Reason for a strong Service
 in India
Sector
• Foreign Companies outsourcing in India.
• Highly skilled, low-cost and educated workers.
• Strong Primary and Secondary sectors

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 Service Sector: India
And China
China India

9.7

18%

46.4

57%
25%
43.9

Agriculture
Industry

Services
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Indian Agro-
Sector
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 Some
Facts
• 
India is 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.

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 Did You
Know?
•

India is 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.

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Sector-Wise Contribution to GDP
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 Future of Agro-Sector


• The food grains 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.

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Indian Industrial Sector
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Major Industries in India 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 & INDIA'S GDP GROWTH 44

Hardware Ind.- GDP

The Indian economy is 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.

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The reasons for the 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.

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The Indian government must 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.

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 
CONCLUSI
ON

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INDIA'S GDP GROWTH 49
The Economy of India is the Fifth-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 of Tamil 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
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what will happen if 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 [Link] policyand
reform measures the government has undertaken in last
one and a half years are showing better results.
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