Assignment

Sushil Sharma( 2009mb08)

Gross Domestic Product (GDP) is the sum of money value of all goods and services
services produced within the domestic territories of a country during an accounting year.

GDP at market
price = C +I+G +(X-M)
Indicator Units Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10
GDPmp (at constant
2004-05 prices) Rs.crore 3239224 3540559 3874632 4247918 4465360 4807222

GDPmp (at constant 2004-05 prices) Rs.crore

6000000

5000000

4000000

3000000 GDPmp (at constant 2004-05

2000000 prices) Rs.crore

1000000

0
Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10

Source: http://www.cmie.com

Conclusion- Due to the subprime crisis growth rate of various European countries is
stagnant or negative but India managed to achieve a growth rate of 6- 7 % during recession.
Even now when most of the economies are struggling for moderate growth rate India is
growing at s rate of 7.6 % in 2010.

GDP at factor cost = GDP at Market Prices –Indirect Taxes+ Subsidies

Indicator Units Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10

GDPfc (at constant 2004-
05 prices) Rs.crore 2967599 3249130 3564627 3893457 4154973 4464081
 GDPfc (at constant 2004-05 prices) Rs.crore
5000000

4000000

3000000
GDPfc (at constant 2004-05
2000000
prices) Rs.crore
1000000

0
Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10

Gross capital formation

Indicator Units Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10
Gross capital formation
(at constant 2004-05
prices) Rs.crore 1051977 1213232 1408067 1616464 1589646 1703275
Source: http://www.cmie.com

Gross capital formation (at constant 2004-05

prices) Rs.crore
2000000

1500000

1000000 Gross capital formation (at

constant 2004-05 prices) Rs.crore
500000

0
Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10

Conclusion –Capital formation is transfer of savings from households and governments to

the business sector, resulting in increased output and economic expansion. In 2008 capital
formation had increase abruptly this is because government has infuse the money to maintain
the growth rate in recession. In 2009 it is less but as the economy is on the track of high
growth rate, it also increased.
 Gross domestic products by expenditure

Indicator Units Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10

Government final consumption

expenditure (at constant 2004-
05 prices) Rs.crore 356135 385599 400315 438976 512126 565860
Private final consumption
expenditure (at constant 2004-
05 prices) Rs.crore 1918774 2091333 2262812 2485554 2655533 2769769
Gross domestic products by
expenditure or demand (at
constant 2004-05 prices) Rs.crore 3239224 3540559 3874632 4247918 4465360 4807222

Source: http://www.cmie.com

6000000

5000000
Government final consumption
4000000 expenditure (at constant 2004-05
prices) Rs.crore
3000000 Private final consumption
expenditure (at constant 2004-05
2000000 prices) Rs.crore
Gross domestic products by
1000000 expenditure or demand (at
constant 2004-05 prices) Rs.crore
0
Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10

Contribution of Service Sector

Indicator Units Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10

Services (GDP at
constant 2004-05
prices) Rs.crore 1577275 1752385 1930565 2133421 2341484 2541283
 Services (GDP at constant 2004-05 prices)
Rs.crore
3000000
2500000
2000000
1500000 Services (GDP at constant 2004-05
1000000 prices) Rs.crore
500000
0
Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10

Conclusion – Service sector has major contribution toward the GDP of India. Share of
Service sector is 56 %.

Contribution of Agriculture & allied

Indicator Units Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10

Agriculture & allied
(GDP at constant 2004-
05 prices) Rs.crore 560308 589697 611409 640315 650461 651901
Source: http://www.cmie.com

Agriculture & allied (GDP at constant 2004-05

prices) Rs.crore
660000
640000
620000
600000
580000 Agriculture & allied (GDP at
560000 constant 2004-05 prices) Rs.crore
540000
520000
500000
Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10

Contribution of Industry

Indicator Units Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10

Industry (GDP
at constant
2004-05
prices) Rs.crore 830016 907048 1022653 1119721 1163028 1270897
 Industry (GDP at constant 2004-05 prices)
Rs.crore
1400000
1200000
1000000
800000
600000 Industry (GDP at constant 2004-
400000 05 prices) Rs.crore
200000
0
Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10

(X-M)= Export - Import

Indicator Units Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10

Net exports of good & services
(at constant 2004-05 prices) Rs.crore -56894 -112974 -139688 -195658 -274273 -247541
Exports of goods and services
(at constant prices) (2004-05
series) Rs.crore 569051 716247 872357 917455 1094929 1022029
Imports of goods and services
(at constant prices) (2004-05
series) Rs.crore 625945 829221 1012045 1113113 1369202 1269570
Source: http://www.cmie.com/

1600000
1400000
1200000 Net exports of good & services (at
constant 2004-05 prices) Rs.crore
1000000
800000
Exports of goods and services (at
600000 constant prices) (2004-05 series)
Rs.crore
400000
Imports of goods and services (at
200000
constant prices) (2004-05 series)
0 Rs.crore
-200000 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10

-400000

Conclusion- India Net export of goods and services is negative and there is sudden
increase last year (2009) due to poor monsoon and global slowdown which directly hit our
export in IT services.
Foreign Exchange Reserves
Indicator Units Nov-05 Nov-06 Nov-07 Nov-08 Nov-09 Nov-10
Foreign Exchange Rs. 6,47,48 7,56,05 10,37,10 12,45,44 13,35,50 133146
Reserves Crore 5 2 9 4 2 1
Source : www.rbi.org.in

Foreign Exchange Reserves Rs. Crore

16,00,000
14,00,000
12,00,000
10,00,000
8,00,000 Foreign Exchange Reserves Rs.
6,00,000 Crore
4,00,000
2,00,000
0
Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10

Conclusion – Foreign Exchange reserve increase sharply from 2007 onward to 2009 but in
2010 it decline.

Inflation Rate
Indicator 2006 2007 2008 2009 2010
Inflation
rate 6.17 6.39 8.32 10.83 13.19
Source: www.euromonitor.com

Personal Disposable Income

Indicator Units Nov-06 Nov-07 Nov-08 Nov-09 Nov-10
US$
PDI Million 7,83,631.61 9,84,869.09 10,66,340.77 10,36,704.02 10,61,643.69
 PDI US$ Million
12,00,000.00
10,00,000.00
8,00,000.00
6,00,000.00
PDI US$ Million
4,00,000.00
2,00,000.00
0.00
Jan-06 Jan-07 Jan-08 Jan-09 Jan-10

Source: www.euromonitor.com

Conclusion: Personal disposable income of the people show decline in 2009 due to the
recession.

Indicator Nov-09 Nov-10

Fiscal Deficit 576140 623045

Conclusion : Fiscal Deficit is difference between the government total expenditure and its
total receipt ( excluding Borrowing). There is 7.5 % increase in the Fiscal Deficit of the
Indian Government, which is cause for worry.