TRENDS IN GDP IN INDIA (GROSS DOMESTIC PRODUCT) BY S. Aakash N. Ashok Kumar

GDP WAS FIRST DEVELOPED BY S IMON K UZNETS FOR A US C ONGRESS REPORT IN 1934, WHO IMMEDIATELY SAID NOT TO USE IT AS A MEASURE FOR WELFARE ( SEE BELOW UNDER LIMITATIONS ). A FTER THE B RETTON W OODS CONFERENCE IN 1944, GDP BECAME THE MAIN TOOL FOR MEASURING THE COUNTRY ' S ECONOMY.

G DP ( GROSS DOMESTIC PRODUCT ) Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country‘s standard of living. REAL GDP: GOODS ARE EVALUATED AT A CONSTANT (BASE YEAR) PRICES NOMINAL GDP: GOODS ARE EVALUATED ATA CURRENT YEAR PRICES

COMPONENTS OF GDP

AGRICULTURE SECTOR  Comprises - Agriculture - Fishing - Forestry - Portary Farming - Horticulture ….etc It is the largest source of the National Income since independence. It gives lagre no.of Employment more than 70% of working population employed in agriculture. Now a days the contribution of primary sector Is keep on decreasing.

P ERCENTAGES OF THE AGRICULTURAL PRODUCTIVITY TO N ATION I NCOME (1950 – 2010) % % % %

I NDUSTRY SECTOR  Comprises: - Mining and Quarrying - Manufacturing - Electricity, Gas and Water-Supply We know the industrial sector raising in 1970’s. industrial policy resolution of 1956 the gave dominate role in public sector. The industrial growth rate has been over 6% since as a result it’s contribution to GDP has moved up sharply from 6% to 31% at present. The second five year plan has been allocated amounts of 1. Public sector investment crores 2. Private sector investment – 675 crores 3. Village and Small scale investment crores

SERVICE SECTOR  Comprises - Construction - Trade, Hotels, Transport and Communication - Financing, Insurance, Real estate and business services - Community, Social and Personal Services. It is the highest National Income contributed of all the sectors. The share in first five year plan and it has been increased to 72% 10 th five yearplan. It’s share in GDP in 1950 is 28% and in 2002 is 48.8%

FACTORS AFFECTING GDP  Government Policies  People Spending (more or less)  Level of Investment  Cilmatic Conditions  Political Stability  World Environment

G OVERNMENT P OLICIES Indian Government was taken more steps to increase the GDP since Independence, those are 1. Liberalisation of Indian Economy(Single window system) 2. Global Trade Relations 3. Foreign Direct Investment 4. Employment Generating Programmes 5. Steps to avoid Curruption

Trend GDP growth rates in India (%) Industry Q1Q2Q3Q4Q1 Agriculture Industry Mining & quarrying Manufacturing Electricity, gas & water supply Construction Services Trade, hotels, transport & communication Financing, insurance, real estate & business services Community, social & personal services GDP at factor cost Source: CSO & FICCI Research

P RESENT S TATISTICS  GDP Growth (2012) - Q %  GDP - $1,847 (nominal,2011)  GDP - $4,550( ppp, 2011)  GDP Per capita - $1,514( nominal)  GDP - $ 3,652( ppp)  GDP by Sector : Agriculture – 17.2% Industry % Service %

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