Recent Trends in Indian Economy
- India has undergone a paradigm shift owing to its competitive stand in the world. The Indian economy is on a robust growth trajectory and boasts of a stable annual growth rate, rising foreign exchange reserves and booming capital markets among others.
- Indian economy is estimated to grow at 8.5 percent in 2010-11 as compared to the growth rate of 8.0 percent in 2009-10. These GDP figures are based at factor cost at constant (2004-05) prices in the year 2010-11. A growth rate of 19.1 percent is estimated for GDP at current prices in the year 2010-11.
- The per capita income at current prices during 2010-11 is estimated to have attained a level of US$ 1146.84 as compared to US$ 971.80 for the year 2009-10, showing a rise of 17.9 per cent.
- Annual growth by economic activity in Gross Domestic Product (GDP) for the year 2010-11, released by the Central Statistics office (CSO) of Government of India
S.No. |
Industry |
GDP for the year 2010-11 |
at 2004-05 prices (US$ billion) |
at current prices |
|
2009-10 |
2010-11 |
2009-10 |
2010-11 |
1 |
Agriculture, forestry & fishing |
137.06 |
145.70 |
226.56 |
288.36 |
2 |
Mining & quarrying |
21.69 |
22.88 |
32.09 |
39.83 |
3 |
Manufacturing |
148.69 |
160.78 |
188.27 |
214.97 |
4 |
Electricity, gas & water supply |
18.47 |
19.48 |
19.27 |
21.44 |
5 |
Construction |
73.97 |
79.99 |
104.35 |
123.02 |
6 |
Trade, hotels, transport & communication |
248.01 |
273.62 |
307.29 |
358.65 |
7 |
Financing, insurance, real estate & business services |
160.40 |
176.35 |
213.63 |
256.27 |
8 |
Community, social & personal services |
126.72 |
135.61 |
184.16 |
216.29 |
Total GDP |
933.88 |
1,013.81 |
1,275.63 |
1,518.20 |
· Source: Central Statistics Office (CSO), Ministry of Statistics &Programme Implementation, Government of India
Percentage change for economic activities are depicted in table below:
S.No. |
Industry |
Percentage change over previous year |
at 2004-05 prices |
at current prices |
|
2009-10 |
2010-11 |
2009-10 |
2010-11 |
1 |
Agriculture, forestry & fishing |
0.4 |
6.6 |
17.3 |
27.3 |
2 |
Mining & quarrying |
6.9 |
5.8 |
11.3 |
24.2 |
3 |
Manufacturing |
8.8 |
8.3 |
10.9 |
14.2 |
4 |
Electricity, gas & water supply |
6.4 |
5.7 |
10.1 |
11.3 |
5 |
Construction |
7.0 |
8.1 |
11.1 |
18.0 |
6 |
Trade, hotels, transport & communication |
9.7 |
10.3 |
12.9 |
16.8 |
7 |
Financing, insurance, real estate & business services |
9.2 |
9.9 |
21.0 |
20.0 |
8 |
Community, social & personal services |
11.8 |
7.0 |
25.6 |
17.6 |
Total GDP |
8.0 |
8.5 |
16.1 |
19.1 |
· Source: Central Statistics Office (CSO), Ministry of Statistics &Programme Implementation, Government of India
Advantage India
- World's largest democracy with 1.2 billion people.
- Stable political environment and responsive administrative set up.
- Well established judiciary to enforce rule of law.
- Land of abundant natural resources and diverse climatic conditions.
- Rapid economic growth: GDP to grow by 8.5% in 2010-11* and 9.0% in 2011-12.
- India's growth will start to outpace China's within three to five years and hence will become the fastest large economy with 9-10% growth over the next 20-25 years (Morgan Stanley).
- Investor friendly policies and incentive based schemes.
- Second most attractive Foreign Direct Investment (FDI) location in the world: India received a total of US$ 25.9 billion of FDI in 2009-10.
- Healthy macro-economic fundamentals: Investment rate is expected to be 37% in 2010-11 and 38.4% in 2011-12 while Domestic Savings rate is expected to be 34% in 2010-11 and 36% in 2011-12.
- India's economy will grow fivefold in the next 20 years (McKinsey).
- Cost competitiveness; low labour costs.
- Total labour force of nearly 530 million.
- Large pool of skilled manpower; strong knowledge base with significant English speaking population.
- Young country with a median age of 30 years by 2025: India's economy will benefit from this "demographic dividend".
- The proportion of population in the working age group (15-59 years) is likely to increase from approximately 58% in 2001 to more than 64% by 2021.
- Huge untapped market potential.
- The urban population of India will double from the 2001 census figure of 290m to approximately 590m by 2030 (McKinsey).
- Progressive simplification and rationalization of direct and indirect tax structures.
- Reduction in import tariffs.
- Full current account convertibility.
- Compliance with WTO norms.
- Robust banking and financial institutions.
"* India's financial year is from April to March. 2010-11 above means April 2010-March 2011." |
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