ECONOMIC ANALYSIS OF INDIA
The Indian Economy is the tenth largest in the world by nominal Gross Domestic Product and the third largest in terms of purchase power parity.
India after the growth of over 9% during 2005-08, moderated to growth of 6.7% in 2008-09 because of the global financial crisis due to the fiscal and monetary space, but with time the economy recovered to growth of 8.4% in 2009-10 and 2010-11.
The slowdown in the economy began in the second quarter of 2011-12, when the growth rate declined to 6.70% from level of 8%. Growth has been in the range of 5.30 -5.50 % in the quarter four of 2012-13. The slowdown is not only confined to India. Globally there has been a general slowdown in the economy.
The growth rate of advanced economies declined from 3.0% in 2010 to 1.3% in 2012. Even the emerging economies have slowed down in this period, due to the result of slowdown in the export markets. China’s growth declined from 10.4% in 2010 to 7.8 % in 2012. Brazil’s growth dipped from 7.5% in 2010 to 1.5% in 2012.
GIST OF INDIA’S ECONOMIC SURVEY 2013
The Gross Domestic Product is to expand up to 6.7% in 2014; it warned that inflation and a high current account deficit (CAD) are the two major concerns in this year. This study states positive impact in the recovery of the global economy and the recent government policies including the steps to open-up foreign investment in various sectors like aviation and retail and others. According to the study India is on the track to meet its fiscal deficit target of 5.3% of Gross Domestic Product in current year, and to narrow it down to 4.8% of Gross Domestic Product in next year which is 2015.
The study recommends, curbing the imports especially of gold and to reduce India’s CAD, which stood at 4.2% of GDP in last year and is projected to be near similar levels this year. Study expected agricultural production will decline. According to the study by allowing more foreign direct investment (FDI’s) in retail would be helpful to the country’s agricultural sectors because of the introduction of new technologies and improved infrastructure.
GROSS DOMESTIC PRODUCT (GDP)
The GDP in India was worth 1841.70 billion US dollars in 2012. The GDP value of India represents 2.97% of the world economy. GDP in India is reported by World Bank Group. India GDP averaged 485.65 Billion USD from 1970 until 2012, reaching all time high of 1872.90 Billion USD in December of 2011 and a record low of 63.50 Billion USD in December of 1970. The GDP is the measures of national income and output for given country's economy. It is equal to the total expenditures for all final goods and services produced within the country in given period of time.
India's GDP for the 4th quarter ending March 31, 2013 was 4.8 %. The whole year GDP for year 2013 is 5 per cent and this is the worst seen in almost a decade and is way below the 9 per cent recorded a few...