• During the phase of demand contraction in the global market industrial growth is bound to suffer. Acute moderation in industrial growth started in September 2008, and although in November 2008 growth picked up but it was half of what was recorded in the same month of previous year. Growth in output of all the three main sectors namely manufacturing, mining and
electricity slowed compared to the previous year.The stimulus packages brought out from time to time have shown some impact on the industrial climate. Yet, it is still early days to comment on how the stimulus measures would work on the ground. It seems that the industry will take some more time to absorb the feeders.Going by the use based classification we see negative growth being posted by the capital goods segment. The remaining segments, the basic and intermediate were saw growth decelerating in November 2008. Growth in the consumer durables segment surpassed the growth rate recorded in the previous year. Higher growth in production could be on account of higher expected sales during the approaching festive season.
Few sectors that posted a surge in output were food products, beverages and tobacco, jute, textiles, rubber, non metallic items, and basic metals sectors . In 2008-09 the food grain production may fall short of the target 233 MT for 2008-09 , as the received rainfall is 32% below the normal (cumulatively,Oct 2008 to December 2008 ) during the North-east monsoon season.Further, rainfall received during the south west monsoon season too has been moderate.
• The laggards among the six core infrastructure industries in November 2008 included finished steel, crude petroleum, petroleum refinery and power. Growth was seen to accelerate in November 2008 in the coal sector compared to the corresponding period of previous year.
• The headline inflation rate dropped to an average of 6.5% in December 2008 compared to 8.66% posted in the same month of previous year. The falling oil prices mainly contributed to softening of inflation.
Monday, March 30, 2009
Recent Trends in Indian Economy
indian economy
The economy of India is the twelfth largest in the world by market exchange rates and the sixth largest in the world by GDP, measured on a purchasing power parity (PPP) basis. The country was under socialist-based policies for an entire generation from the 1950s until the 1980s. The economy was characterized by extensive regulation, protectionism, and public ownership, leading to pervasive corruption and slow growth. Since 1991, continuing economic liberalization has moved the economy towards a market-based system.
Agriculture is the predominant occupation in India, accounting for about 60% of employment. The service sector makes up a further 28%, and industrial sector around 12%. One estimate says that only one in five job-seekers has had any sort of vocational training. The labor force totals half a billion workers. For output, the agricultural sector accounts for 18% of GDP; the service and industrial sectors make up 55% and 27% respectively. Major agricultural products include rice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes, cattle, water buffalo, sheep, goats, poultry and fish. Major industries include textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery and software design. In 2007, India's GDP was $ 1.237 trillion, which makes it the twelfth-largest economy in the world or fourth largest by purchasing power adjusted exchange rates. India's nominal per capita income of $1043 is ranked 136th in the world. In the late 2000s, India's growth has averaged 7.5% a year, increases which will double the average income within a decade. Unemployment rate is 7% (2008 estimate).
Previously a closed economy, India's trade has grown fast. India currently accounts for 1.5% of World trade as of 2007 according to the WTO. According to the World Trade Statistics of the WTO in 2006, India's total merchandise trade (counting exports and imports) was valued at $294 billion in 2006 and India's services trade inclusive of export and import was $143 billion. Thus, India's global economic engagement in 2006 covering both merchandise and services trade was of the order of $437 billion, up by a record 72% from a level of $253 billion in 2004. India's trade has reached a still relatively moderate share 24% of GDP in 2006, up from 6% in 1985.
India's recent economic growth has widened economic inequality across the country.Despite sustained high economic growth rate, approximately 80% of its population lives on less than $2 a day (PPP), more than double the same poverty rate in China. Even though the arrival of Green Revolution brought end to famines in India, 40% of children under the age of three are underweight and a third of all men and women suffer from chronic energy deficiency.
Agriculture is the predominant occupation in India, accounting for about 60% of employment. The service sector makes up a further 28%, and industrial sector around 12%. One estimate says that only one in five job-seekers has had any sort of vocational training. The labor force totals half a billion workers. For output, the agricultural sector accounts for 18% of GDP; the service and industrial sectors make up 55% and 27% respectively. Major agricultural products include rice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes, cattle, water buffalo, sheep, goats, poultry and fish. Major industries include textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery and software design. In 2007, India's GDP was $ 1.237 trillion, which makes it the twelfth-largest economy in the world or fourth largest by purchasing power adjusted exchange rates. India's nominal per capita income of $1043 is ranked 136th in the world. In the late 2000s, India's growth has averaged 7.5% a year, increases which will double the average income within a decade. Unemployment rate is 7% (2008 estimate).
Previously a closed economy, India's trade has grown fast. India currently accounts for 1.5% of World trade as of 2007 according to the WTO. According to the World Trade Statistics of the WTO in 2006, India's total merchandise trade (counting exports and imports) was valued at $294 billion in 2006 and India's services trade inclusive of export and import was $143 billion. Thus, India's global economic engagement in 2006 covering both merchandise and services trade was of the order of $437 billion, up by a record 72% from a level of $253 billion in 2004. India's trade has reached a still relatively moderate share 24% of GDP in 2006, up from 6% in 1985.
India's recent economic growth has widened economic inequality across the country.Despite sustained high economic growth rate, approximately 80% of its population lives on less than $2 a day (PPP), more than double the same poverty rate in China. Even though the arrival of Green Revolution brought end to famines in India, 40% of children under the age of three are underweight and a third of all men and women suffer from chronic energy deficiency.
SECTORS
The indian economy is mainly divided into three sectors primary,secondary and thirtary.Primary sector mainly consist of agricultrue and agroproducts which contributes around 18% to our GDP and is growing at 3.2%. The secondary sector consist of industrial segment. Its contribution in indian GDP is around 27% and is growing at 8.7%. The thrirtiary which includes all types of services contributes the most i.e 55% and growing at 10% from last few years.
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