india's gdp 2009-10 by ashutosh

8/4/2019 India's Gdp 2009-10 by Ashutosh

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JAIPURIA INSTITUTE OF MANAGEMENT

LUCKNOW

ASSIGNMENT

ON

INDIA’S GDP DATA FOR 2009-10

SUBMITTED BY SUBMITTED TO

ASHUTOSH KUMAR SRIVASTAVA DR.MAHIMASHARMA(JIML-10-032)SEC-A



Gross domestic product (GDP)• The market value of all final goods and services produced in

a country in a year.

• It is often positively correlated with the standard of living.

Measuring GDP:-GDP can be measured in three ways-

1-Capital (output) method-

The most direct method, which sums the outputs of everyclass of enterprise to arrive at the total.Market values of goods and services =∑ output ×prices2-Income method-

The income method works on the principle that the incomesof the productive factors must be equal to the value of their product, and determines GDP by finding the sum of allproducers' incomes

GDP =Employee’s wages/salaries +non-corporate income +corporate profits +net interest +rental income.3-Expenditure method-

The expenditure method works on the principle that all of theproduct must be bought by somebody, therefore the value of the total product must be equal to people's total expendituresin buying things.

GDP =Private consumption +gross investment +government

purchases (spending) +net exports (exports- imports)

GDP =C +I +G + NX (X-M)



GDP deflator The factor used to convert GDP from current to constant

values in this way is called the GDP deflator.Unlike the Consumer price index, which measures inflation

(or deflation) in the price of household consumer goods,the GDP deflator measures changes in the prices alldomestically produced goods and services in aneconomy–including investment goods and government

services, as well as household consumption goods

GDP DEFLATOR =.NOMINAL GDP/REAL GDP ×100

Constant-GDP figures allow us to calculate a GDP growthrate, which tells us how much a country's production hasincreased (or decreased, if the growth rate is negative)

compared to the previous year.

Real GDP growth rate for year n = [(Real GDP in year

n) - (Real GDP in year n - 1)]/ (Real GDP in year n -

1)



INDIA’S GDP DATA

GDP AT FACTOR COST

2004-05 − 7.5 %

2005-06−9.5 %

2006-07−9.7 %

2007-08−9.0 %

2008-09−6.7 %2009-10−7.4 %



QUARTERLY ESTIMATES OF GDP FOR 2009-10

AT FACTOR COST (AT CONSTANT PRICES)

(BASE 2004-05)



ANALYSIS OF GDP AT CONSTANT (2004-05) PRICES

• India registered an impressive growth of 7.4 % during 2009-10 despite the crisis facing the global economy in past few

years.

• It is also clear from data that economic growth decelerated in

2009-10 to 7.4 %, which represented a decline of 1.0 % from

the average growth rate of 8.4 % in the previous 5 years

(2004-05 to 2008-09).

• GDP at factor cost at constant (2004-05) prices in the year 2009-10 is now estimated as Rs. 44,64,081 crore showing a

growth rate of 7.4 per cent over the Quick Estimates of GDP

for the year 2008-09 of Rs. 41,54,973 crore on 31th may,

2010.

.

•

The sectors which showed growth rates of 5 per cent or more,are ‘mining and quarrying’ (10.6 per cent), ‘manufacturing’

(10.8 per cent), ‘electricity, gas and water supply’(6.5 per

cent) ‘construction’ (6.5 per cent), 'trade, hotels, transport

and communication' (9.3 percent), 'financing, insurance, real

estate and business services' (9.7 per cent), and 'community,

social and personal services' (5.6 per cent).The ‘agriculture,

forestry and fishing’ sector ,however registered a growth rate of

0.2 per cent.



QUARTERLY GROWTH ( %) ANALYSIS OF GDP

• The four quarters of a financial year are denoted by Q1, Q2,

Q3 and Q4.

• In the first quarter of 2009-10, the growth fell to 6.0 %(compared to7.8 % in Q1 of 2008-09) .In the second, third

and fourth quarters of 2009-10,the growth in GDP was 8.6

%,6.5 % and 8.6 % respectively(compared to 7.5%,6.1% and

5.8% in Q2,Q3 and Q4 of 2008-09).

FIRST QUARTER

• The first quarter witnessed a sharp fall in the growth of

construction,trade, hotels, transport and communication andsharp increase in mining and quarrying.

SECOND QUARTER

• The second quarter witnessed a sharp fall in the growth of

agriculture forestry and fishing (turned into negative growth)

and construction while sharp increase in the growth of

mining and quarrying, manufacturing and electric gas &

water supply.

THIRD QUARTER

• The third quarter witnessed a sharp fall in the growth of

agriculture (negative growth) and community, social &

personal services and sharp increase in growth of mining &

quarrying, manufacturing ,construction and trade, hotels,

transport & communication.

FOURTH QUARTER



• The sectors which registered significant growth rates in Q4 of

2009-10 over Q4 of 2008-09 are ‘mining and quarrying’ at

14.0 %, ‘manufacturing’ at 16.3 %, ‘electricity, gas and water

supply’ at 7.1 %, ‘construction’ at 8.7 %, 'trade, hotels,

transport and communication' at 12.4 per %, and the sector which registered sharp fall in the growth were financing,

insurance, real estate and business services' at 7.9 % (as

compared to 12.3 % in 2008-09) and community,social

&personal services at 1.6 % (as compared to 8.8 % in 2008-

09).

• GDP at factor cost at constant (2004-05) prices in Q4 of

2009-10 is estimated at Rs. 12,05,119 crore, as against Rs.11,10,041 crore in Q4 of 2008-09, showing a growth rate of

8.6 per cent .

CONCLUSION

• Agriculture sector showed decline in growth in all the 4

quarter (registered only 0.2 % growth in 2009-10) which is

matter of concern for us.• Mining and quarrying sector showed increase in growth in

all the 4 quarter thus registered second highest growth of 10.6

% in 2009-10(as compared to 1.6% of 2008-09).

• Manufacturing sector showed fall in growth in first quarter

due to the deepening impact of the global crisis and a slow

down to domestic demand and increased in sharp growth

from the second quarter, registered highest growth in 2009-

10 of 10.8 % (as compared to 3.2% of 2008-09).

• In India, Bihar became fastest growth state due to boom inmanufacturing sector.

• Electricity, gas & water supply, Construction, Trade, hotels,

transport & communication showed increase in growth from

the quarter third.



• Community, social & personal services showed sharp fall in

growth from third quarter.

• Financing, insurance, real estate & bus,services showed

decline in growth from third quarter.

• The GDP growth rate of India is mainly on account of higher

performance in ‘mining and quarrying’ and ‘manufacturing

and trade, hotel, transport &communication in 2009-10.

•

SECTORAL SHARE OF INDIA’S GDP IN 2009-10

services,

57.20%

industry,

28%

agriculture

and fishing,

14.60% services

industry

agriculture a

fishing

• Highest contribution in GDP from service sector followed

by Industry.



RECENT DATA ON GDP

INDIA GDP SURGES 8.9% IN THE THIRD QUARTER

Year Mar Jun Sep Dec

2010 8.60 8.90 8.90

2009 5.80 6.00 8.60 6.50

2008 8.50 7.80 7.50 6.10

•

India's domestically-powered economy grew morethan expected in the September quarter, defyingweakness elsewhere and putting pressure on theReserve Bank of India (RBI) to tighten monetarypolicy although a rate increase next month still looksunlikely.

• Annual gross domestic product grew 8.9 percent inthe September quarter -- matching the revised figurefor the previous quarter.

The services sector, which accounts for over 50 percent of GDP, grew 9.8 percent in the September quarter, higher than 9.3 percent in the previous quarter.

Consumer price inflation eased to an annual 9.7 percentin October from 9.82 percent the previous month.Wholesale price inflation, which is more closely watched

as it covers a higher number of products, eased to 8.58percent in October from 8.62 percent a month earlier.

Signs of easing inflation, a fragile global economy andweaker industrial output in September were likely toforestall any rise in rates in the near-term, some analysts



said. "Unless the full year growth looks likely to cross 9percent, the central bank is unlikely to get aggressiveagain in raising rates," said Anjali Varma, economist at MFGlobal in Mumbai.

Industrial output growth -- a key indicator of growthmomentum -- in Asia's third-largest economy slowedunexpectedly in September to 4.4 percent from a year earlier, down from the previous month's upwardly revised6.92 percent growth.

india's gdp 2009-10 by ashutosh

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