gdp-indian-approach-1195546835169016-3

7/29/2019 gdp-indian-approach-1195546835169016-3

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Government's view of the economy could besummed up in a few short phrases:If it moves, tax it. If it keeps moving, regulate it.And if it stops moving, subsidize it

RONALD REAGANFORMER U.S. PRESIDENT


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GDP -DEFINITION


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Measurement of gdp


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LIMITATIONS OF GDP assumes that every monetary transaction adds to well-

being

ignores everything that happens outside the realm of

monetized exchange

treats crime, divorce and natural disasters as economic

gain

ignores the non-market economy of household and

community

treats the depletion of natural capital as income

takes no account of income distribution

ignores the drawbacks of living on foreign assets


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MOVING UP AGAINST ALL ODDS

16 years

6 governments

5 prime ministers ONE DIRECTION

9% GDP growth


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India ranks second worldwide in farm output,

employ 60% of the total workforce: PRIMARY

SECTOR

India is fourteenth in the world in factory output,employ 17% of the total workforce: SECONDARY

SECTOR

India is fifteenth in services output, employ 23% of

the total workforce: TERTIARY SECTOR


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205 223319 347

103 91

116117

104 109

155168

0

100

200

300

400

500

600

700

1999-00 2002-03 2005-06 2006-07

USD

Billion

Services Agriculture Industry

GROWTH IN SECTORS (2006-07)

The soundperformance of eachindustry segment isleading to The overallrobust performance ofthe Indian economy


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India's GDP: 2002-07

424484

534 590 631

0

100

200

300

400

500

600

700

2002-03 2003-04 2004-05 2005-06 2006-07

USDB

illion

GDP at Constant Prices

4%

8.5% 7.5%

8.4%

9.4%

FASTEST GDP GROWTH

Indias GDPwitnessed highgrowth and was thesecond fastestgrowing GDP afterChina


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SHARE IN INCREMENTAL WORLD GDP


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GDP USD 590 billion

GDP growth rate 9 %

Services contribution 54 %

FDI limit not 100 percent inmajor industry sectors such as

Telecom, Semiconductors,

Automobiles, etc.

Balance of Trade USD (-)46.2

billion

Investment goal USD 250

billion

2006 GDP USD 750 billion

GDP growth rate 9.5%

Services contribution 60 %

FDI limit is expected to be close

to 100 percent in major industry

sectors such as Telecom,Semiconductors, Automobiles,

etc.

Balance of Trade Should

increase with surging exports as

compared with imports


billion

2008

GDP USD 900 billion

GDP growth rate 9%

Services contribution

60-65 %

FDI limit is expected to be

100 percent in major

industry sectors such as

Telecom, Semiconductors,

Automobiles, etc.

Balance of Trade Should

be positive with increased

level of exports as

compared with imports


billion

2010

GROWTH EXPECTED IN INDIATo sustain the GDP growth of more

than 8 percent, India requires an

investment of USD 1.5 trillion in thenext five years


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USD 12.1 billionTata Steel buys Corus Plc

USD 6 billionHindalco acquired Novelis Inc.

USD 1.58 billionEssar Steel acquired Algoma Steel

USD 730 millionVideocon Industries acquired Daewoo

Electronics Corporation Limited

USD 1.6 billionSuzlon Energy Ltd. acquires REpower


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USD 11 billionVodafone buys Hutch

USD 0.98 billionAditya Birla Group increased its stake in Idea

Cellular by acquiring 48.14-percent stake

USD 1 billionPlans investment in private equity, real estate, and

private wealth management

USD 1.7 billionPlans to spend on its development operations inIndia over the next four years

USD 0.905 billion

Renault, Nissan and Mahindra & Mahindra hasinitiated a Greenfield automobile plant project in

Chennai.

Mylan Laboratories acquired a majority stake in

Matrix Laboratories USD 0.74 billion


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CAN INDIA

MAINTAIN ITSHUGE GROWTH

RATE???


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gdp-indian-approach-1195546835169016-3

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