THAKUR INSTITUTE OF MANAGEMENT STUDIES & RESEARCH

1
 TABLE OF CONTENTS
Sr. TOPICS PAGE NO.
No.
1 What is GDP? 3
2 GDP- 1991 4
3 GDP- 1992 5
4 GDP- 1993 6
5 GDP- 1994 7
6 GDP- 1995 7
7 GDP- 1996 8
8 GDP- 1997 8
9 GDP- 1998 9
10 GDP- 1999 10
11 GDP- 2000 12
12 GDP- 2001 13
13 GDP- 2002 13
14 GDP- 2003 14
15 GDP- 2004 15
16 GDP- 2005 15
17 GDP- 2006 15
18 GDP- 2007 16
19 GDP- 2008 17
20 GDP- 2009 18
21 GDP- 2010 19

2
Definition of GDP

There are three ways to define GDP. Each definition is conceptually identical.

GDP is equal to the total expenditures for all final goods and services produced within the country in a
stipulated period of time (usually a 365-day year).

GDP is equal to the sum of the value added at every stage of production (the intermediate stages) by all the
industries within a country, plus taxes less subsidies on products, in the period.

GDP is equal to the sum of the income generated by production in the country in the period—that is,
compensation of employees, taxes on production and imports less subsidies, and gross operating surplus (or
profits).

Calculating GDP
Commonly the Expenditure Method is used for
Measuring and quantifying GDP

Formula:

GDP = C + I + G+(X-M)

OR

GDP = consumption + gross investment+ government spending + (exports − imports)

3
GDP 1991

The government was facing severe balance-of-payments crisis, embarked on a programme of short-
term stabilization combined with a longer-term programme of comprehensive structural reforms.
Expenditure and income:
• The budget provision for total expenditure in 1991-92 is Rs.113422 crores, of which Rs.79697
crores is non-plan expenditure. In the sphere of revenue receipts, gross tax revenues are estimated at
Rs.66218crores during the current financial year, compared to Rs.58916 crores in the revised
estimates of last year.

Agriculture:
• 50% of the plan resources are invested in the agricultural and rural sector.
• The provision for the continuing schemes for assistance to small and marginal farmers for dug wells
and shallow tube wells were doubled. Facilities provided to small and marginal farmers.

Investments:
• The limit of foreign equity holdings was increased from 41 to 50%.
• Technology imports for priority industries are automatically approved for royalty payments up to
5% of domestic sales and 8% of international export or for lump sum payment of rs.1 crore.
• The Reserve Bank by stipulating a floor rate of interest and providing freedom to commercial banks
to charge interest rates above the floor level based on their perceptions of risk.
• New sectors shall be made available to NRIs for investment on a non-repatriation basis, including
housing, infrastructure and real estate development.

Others:
• The prices of other petroleum products, excluding diesel and kerosene for non-industrial use, were
raised by 10%. The price of kerosene, for non-industrial use, were reduced by 10% which means a
50% roll-back in relation to the increase in the price that came into effect on 15 October 1990.
• Scheduled tribes and other weaker sections of our society, is being stepped up from Rs. 364 crores
in 1990-91 to Rs. 479crores in 1991-92.
• The outlay for the Department of Women and Child Development, dealing with perhaps the two
most disadvantaged segments of our population among the poor, is enhanced from Rs. 330 crores
last year to Rs. 400 crores.

4
 • For Health and Family Welfare, a plan outlay of Rs. 1051 crores in 1991-92 as compared with Rs.
950 crores in 1990-91.
• The allocation for education has been raised from Rs.865 crores in 1990-91 to Rs.977 crores in
1991-92.
• Motor cars at present excise duty increased to 60%.

GDP 1992

Indian Foreign Trade: Principal export trade with European Union, United States, and Japan. Exports
7.7% of GDP in FY 1992. Major imports (28% of total) oil products from Middle East. Imports 9.3% of
GDP in FY 1992.

Balance of Payments: In 1992 estimated exports US$22.7 billion versus US$23.9 billion imports.

Industry: Increasing share (27.4% in FY 1991) of GDP, but employed only about 9% of the work force
in 1991. Basic industries: textiles, steel and aluminum, fertilizers and petrochemicals, and electronics and
motor vehicles.

Energy: India importer of petroleum and natural gas but has abundant coal, hydroelectric power
(especially in parts of North India), and burgeoning nuclear power industry.

Minerals: Less than 2% share of GDP in FY 1990 and 1 % of labor force involved in mining and
quarrying in 1991. Basic minerals: iron, bauxite, copper, lead, zinc, mica, uranium ore, rare earths.

Services: Some 39.8% of GDP in FY 1991, then employing about 13% of work force. Large and
diversified transportation system.

Agriculture: Declining share (32.8%) of GDP but employed majority of workers (67% of total labor
force) in FY 1991. Around 45% (136 million hectares) of total land cultivated, Farming. Agricultural
products amount to around 18% of total exports.

Science and Technology: Major government investment (80% of total) in and control of science and
technology sector; 200 national laboratories, 200 government-sector research and development institutions,
and about 1,000 research and development units in industrial sector supported by both public and private
funds. Substantial investments have been made in research and development in defense, nuclear science,
space, and agriculture.

5
GDP 1993

There was good progress by reducing the fiscal deficit to about 5% .

Banking Policies:
• Interest rate on bank deposits reduced from 12% to 11%.
• Simultaneously, the minimum lending rate of 18% on commercial advances is being lowered
to17%.
• The flow of rural credit from institutional sources is expected to jump from Rs.13, 800 crore during
1992-93 to Rs.16, 500 crore during1993-94 an increase of 20%. NABARD’s investment refinance
support to banks will increase by 22% from Rs.2, 300 crore to Rs.2, 800 crore in1993-94.Banks
will have to make large provisions amounting to over Rs.10, 000 crore for bad and doubtful
advances in their portfolios.
• Provision for a large capital contribution of Rs.5, 700 crore to the nationalized banks in 1993-94.
• To meet the gap created by the application of the first stage of the provisioning norms.

Power:
• 5-year tax holiday in respect of profits and gains of new industrial undertakings Set up anywhere in
India for either generation or generation and distribution of power. The 5-year holiday will begin
from the year of generation of power.
• At the end of the 5-year period, these units will be entitled to the existing deduction under section
80-IA for the remaining period.
• Import duty on specified raw materials and items in the development of nonconventional energy
sources is reduced by 15% to 20%. In respect of wind operated electricity generators the import
duty is reduced from 40% to 25%.

Environment:
• Depreciation admissible on plant and machinery relating to environment
protection and pollution control allowed at 100% instead of the existing 40% of capital cost under
the Income tax rules.

Others:

• Further reforms of the capital market are implemented in the course of 1993-94 so that the capital
market can mobilize large funds for investment. Therefore, propose to raise the income tax
deduction given to contributions to approved universities, institutes of technology, institutes of
management and equivalent institutions from 50% at present to 100%.

6
GDP 1994

Progress toward reducing the government's unsustainably high fiscal deficit, which helped trigger
India's 1990-91 economic crisis, has been mixed. After reaching nine percent of GDP in FY 1990/91, the
fiscal deficit fell to 5.7 percent of GDP in FY 1992/93 before rebounding to 7.3 percent of GDP the
following year. Buoyant receipts and better expenditure controls imply a fiscal deficit of about 6% of GDP
for FY 1994/95; little progress is expected in the run-up to the 1996 national elections. However, the
Finance Minister and Reserve Bank of India (RBI) Governor reached agreement to place a Rs. 60 billion
($1.9 billion) cap on the issuance of ad hoc Treasury bills during 1994, the principal source of inflationary
money creation. The issuance of ad hoc Treasury bills is to be abolished by FY 1997/98.

During the first six months of FY 1994/95, M3 rose by an estimated 17.5 percent. The RBI hopes to
contain M3 growth at 16 percent for the year, a rate it considers consistent with a four percentage point
decline in inflation and GDP growth of 5.5 percent. Government and private forecasters now predict an
average retail inflation rate of about eight percent during FY 1994-95, following inflation of 7.5 percent in
the previous year. The rate of increase in RBI credit to the government declined by about 50 percent
during the first half of FY 1994/95. This permitted the government to reduce the Statutory Liquidity Ratio
(SLR) from 33.75 in September 1993 to 31.5 percent in October 1994. Further cuts are planned as the
government seeks to avoid crowding out private borrowers.

GDP 1995

The real GDP growth stands at 5.7 per cent with a strong possibility of the rate exceeding the 6 per
cent mark dung the next year (1996-97), while real fixed capital Formation is likely to rise by a little over 8
per cent in both the years. The growth rate of total capital formation would be about one percentage point
higher. The rate of inflation is likely to be about 9 per cent this year and a percentage point lower next year.
Fears of higher inflation during the current year are looming large due to populist expenditures launched in
view of the forthcoming general elections to parliament. During 1995-96, the dollar value of exports is
likely to grow by nearly 17 per cent and next year by about15 percent. This is going to be accompanied by
increase in the merchandise import in dollars by about 25 percent in 1995-96 and by about 19 per cent in
1996-97. These imply a trade gap of the order of about 5 and 7 billion dollars in the years 1995-96 and
1996-97 respectively. The current account deficit will correspondingly be of the order of about $3 billion in
1995-96 and a bit less than $5 billion in 1996-97.

With a satisfactory performance in agriculture and industry, the demand for economic services is
likely to keep in step. Consequently our forecast is that this sector will grow by 7 to 8 per cent during the
current (1995-96) arid the next (1996-97) year which is in alignment with the performance of this sector in
1994-95. This year (1995-96) being the election year, expenditure on public administration and defense,
7
including that on social services under various schemes will result in increased level of activity under this
sector. The rate of growth of GDP in public administration and defensive is thus likely to exceed 6 per cent
for the current year. For 1996-97 the growth rate is predicted to be just 6 percent.

GDP 1996

The overall macroeconomic outlook in July 1996 was quite healthy and favorable as indicated by
an overall growth rate of 7%, industrial growth rate of around 12%, low rate of inflation of around 4.5%,
buoyancy in exports, fairly comfortable level of foreign exchange reserves of more than $ 17 billion and a
reasonably positive outlook as far as foreign investment was concerned.

The Finance Minister has claimed considerable success in reducing the fiscal deficit in absolute as
well as relative terms. Thus, according to the budget calculations, the fiscal deficit for the year 1996-97 is
placed at Rs.62.3 thousand crores or 5% of GDP, which is significantly lower than the corresponding
figure of Rs.64,000 crores indicating 5.9% of GDP for the previous year. However, it would be some sort
of a miracle if the actual magnitude of fiscal deficit during 1996-97 could be contained within the budgeted
limit of Rs.62.3 thousand crores. If we carefully examine the finance ministry's calculations as reflected in
the detailed budget documents, we find that revenues from indirect taxes have been somewhat over-
estimated and expenditures on several counts have been seriously under-estimated to arrive at this
artificially low figure of fiscal deficit.

GDP 1997

GDP at constant prices was 10.328% & Percent Change was 36.61 %

GDP: purchasing power parity—$1.534 trillion

GDP—real growth rate: 5%

GDP—per capita: purchasing power parity—$1,600

GDP—composition by sector:
Agriculture: 30%

Industry: 28%

Services: 42%

Inflation rate—consumer price index: 7%

8
YEAR Q1 Q2 Q3 Q4
1997-98 3.51 5.09 3.78 4.88

Interest rates were between 10% and 13% during the year.

India's exports, currency, and foreign institutional investment were affected by the East Asian crisis in late
1997, but capital account controls, a low ratio of short-term debt to reserves, and enhanced supervision of
the financial sector helped insulate it from near term balance-of-payments problems.

Exports

Export growth had slipped down averaging only about 4% to 5% which was a large drop from the more
than 20% increases it was experiencing over the prior three years because of the fall in Asian currencies
relative to the rupee.

Energy, telecommunications, and transportation

Energy, telecommunications, and transportation shortages and the legacy of inefficient factories constrain
industrial growth which expanded as low as only 6.7%.

Textile
Textile committee (TC) estimated that 15 million meters of cloth was consumed in the household sector.
For the same year, a census of handlooms and Power looms was conducted on behalf of the Ministry of
Textiles. According to this, the production of cloth by the handloom and power loom sector was about 22
billion meters.
Agriculture

India bounded its agricultural tariffs at ceiling rates which was ranging from 0 to 300 per cent. In reality,
applied rates for 1997/98 were considerably lower, averaging 26 per cent for the sector, with a peak of 45
per cent. Growth of the agricultural sector was fairly slow rebounding to only 5.7% in 1997. Agricultural
investment has slowed, while costly subsidies on fertilizer, food distribution, and rural electricity remained
during the year. The ratio of food grains consumption to that of availability declined to around 0.9 during
1997-98, a decline of about 1% a year but nearly 40% of the Indian population remained too poor to afford
an adequate diet.

Mining & petroleum

The growing subsidy for petroleum products prompted the Government in 1997 to declare a phase out of
most administered prices in the sector.

GDP 1998

9
YEAR Q1 Q2 Q3 Q4
1998-99 6.82 8.31 5.99 5.95
Gross domestic product at constant prices was 5.288 while the Percent Change was
-48.80 %

Official estimated that national income would attribute the growth in Gross Domestic Product to
impressive performance in construction, agriculture, communications and banking sectors.

The Central Statistical Organization said the GDP at constant prices (1993-94) stood at Rs 1.081 trillion in
1998-99 as against Rs 1.012 trillion the previous year.

Agriculture:

Agricultural output, which accounts for a quarter of gross domestic product, increased 5 percent in 1998.
The performance of the industrial sector deteriorated in 1998, and the growth rate of less than 5 percent
was significantly lower than the spectacular rate of 10 percent achieved in the mid-1990s.

Industrial production:

The capital goods industries recorded higher growth in 1998, the basic goods sector such as fertilizers,
cement, basic metals and mining and the consumer goods sector continued to be adversely affected by slow
growth in consumer demand, subdued export demand and infrastructure constraints.

As to the balance-of-payments, the deceleration in the growth of India's exports since 1996 continued
during 1998, caused by a further slackening in world trade and a decline in its terms of trade. Meanwhile,
imports grew, as non-oil imports expanded by 15 percent due to a surge in gold imports. The trade
imbalance widened during the first six months of 1998 to $8.1 billion.

GDP 1999
The central government's fiscal deficit was 4.9%
India's international payments position remained strong in 1999 with adequate foreign exchange reserves,
reasonably stable exchange rates, and booming exports of software services. Lower production of some
non-foodgrain crops offset recovery in industrial production. Strong demand for India's high technology
ex-ports will bolster growth in 2000.

GDP: purchasing power parity - $1.805 trillion

GDP - real growth rate: 5.5%

GDP - per capita: purchasing power parity - $1,800

GDP - composition by sector:

agriculture: 25%

10
industry: 30%
services: 45%

Population below poverty line: 35%

Household income or consumption by percentage share:

lowest 10%: 4.1%
highest 10%: 25%

Inflation rate (consumer prices): 6.7%

Labor force: NA

Labor force - by occupation: agriculture 67%, services 18%, industry 15%

Unemployment rate: NA%

Budget:
revenues: $35.8 billion
expenditures: $66.3 billion, including capital expenditures of $15.9 billion (FY98/99 est.)

Industries: textiles, chemicals, food processing, steel, transportation equipment, cement, mining,
petroleum, machinery

Industrial production growth rate: 6% (1999 est.)

Electricity - production: 448.6 billion kWh (FY98/99 est.)

Electricity - production by source:

fossil fuel: 80.34%
hydro: 17.08%
nuclear: 2.38%
other: 0.2% (1998)

Electricity - consumption: 416.346 billion kWh

Electricity - exports: 130 million kWh

Electricity - imports: 1.575 billion kWh

Agriculture - products: rice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes; cattle, water
buffalo, sheep, goats, poultry; fish

Exports: $36.3 billion

Exports - commodities: textile goods, gems and jewelry, engineering goods, chemicals, leather
manufactures

11
 Exports - partners: US 21%, UK 6%, Germany 6%, Hong Kong 5%, Japan 5%, UAE 4% (1998)

Imports: $50.2 billion (f.o.b., 1999 est.)

Imports - commodities: crude oil and petroleum products, machinery, gems, fertilizer, chemicals

Imports - partners: US 10%, Belgium 7%, UK 6%, Germany 6%, Saudi Arabia 6%, Japan 6%
(1998)

Debt - external: $98 billion (March 1999)

Economic aid - recipient: $2.9 billion (FY98/99)

Exchange rates: Indian rupees (Rs) per US$1 - 43.552 (January 2000), 43.055 (1999), 41.259
(1998), 36.313 (1997), 35.433 (1996), 32.427 (1995)

• India’s market cap was 0.4% of world GDP at the height of the dot-com boom
• The world had discovered India’s market share 0.5% .
• The cumulative FDI approval was US$54 billion but the actual inflows were only US$16 billion-
less than 30%. This is even lower in the infrastructure sector where only 16% of cumulative
approvals translated into actual.
• Investment- Telecommunications 15% and oil refining 11%.

GDP 2000

Agriculture:
• Contribution in GDP was 14.6 %
• The total production of food grain was 183.3 million tonnes in 2000- 2001

Industry:
• Mining and Quarrying - 4.4%
• Manufacturing - 5.7%
• Electricity, Gas and Water Supply - 2.8%

Service Industry:
• Accounts for 57.2% of the country's GDP, with a growth rate of 7.5%

Textile Industry:
• the textile and garment industries accounted for about 4 percent of GDP.
• 14 percent of industrial output, 18 percent of industrial employment, and 27 percent of export
earnings

FDI:
• During 2000–10, the country attracted $178 billion as FDI
12
GDP 2001

Agriculture:
• The total production of food grain was 212 million tonnes in 2001- 2002
• Agriculture Sector in India GDP grew at the rate of 1.7%

Steel & Cement:

• Steel output grew by 19.8 percent in 2001-02.

FDI:
• FDI where inflows in 2002 rose to Rs.19,265 crore.

Service Industry:
• The services sector registered a growth of 7.6 percent.
• GDP is estimated to grow by 6.8 percent in 2001-02

Textile:
• Contributes around 3% to the GDP.
• India earns about 27% of its total foreign exchange through textile exports.

GDP 2002

Agriculture:

The decline in this year's projected foodgrain production to 183.2 million tonnes compared to last year's
output of 212 million tonnes, (13.6 percent fall) is large. Fortunately, though, the accumulated public stock
of foodgrains provide a cushion to more than compensate for this shortfall, the most important effect of
which is the absence of an inflationary undercurrent amongst primary product prices.

Industry:

• IIP growth of 5.3 percent in April-November 2002-03.

• The two key elements which led this growth were capital goods, which grew by 9.9 percent, and
consumer non-durables, which had growth of 12.7 percent.
Textile:
• Textile products showed a strong growth of 14.8 percent in April-November 2002.
• A key element of this growth was an increase of 11.6 percent in exports of readymade garments in
dollar terms.
13
Steel & Cement:
• Steel output grew by24.5 percent in April-November 2002.
• In 2002-03, cement production grew strongly by 9.5 percent.

FDI:
• FDI where inflows in 2002 rose to Rs.21,286 crore.

Service Industry:
• The services sector registered a growth of 7.6 percent.
• GDP is estimated to grow by 7.1 percent in 2002-03.

GDP 2003
GDP Rate: 6.852%

The achievements of GDP India 2003 are as follows:

India’s Per Capita Income stood at Rs 19040 in the year 2002-03

Agriculture
• One of the world’s largest food producers (600 million tonnes).

• World’s largest producer of milk, sugarcane and tea.

• Second largest exporter of rice, wheat, fruits, and vegetables. India produces 30 million tonnes of
fruits and 59 million tons of vegetables.

• Food grain production expected to be around 220 million tons in 2003-4. The buffer stock of food
grains stood at 23 million tons in September 2004.

Information Technology
• India’s IT market reached a turn over of US$ 20.4 billion in 2003-04. The IT Sector employs
650,000 people and this is likely to reach 2 million by 2014. IT Companies are expected to account
for 8-10% of GDP by 2008 from 1.4% in 2001.

• Turnover of the top three companies namely Tata Consultancies, Infosys and WIPRO, are over one
billion dollars each in 2004.

• Ports and terminals are being modernized and services are privatized.

• The “Sagar Mala” project in August 2003 for expansion and modernization of ports, inland
navigation and maritime transport.

14
GDP 2004
GDP Rate: 8.106%

• In 2003-04 India Per Capita Income was Rs 20989.

• Per Capita Income in India was Rs 23241 in 2004-05.

The economic growth for 2004-05 was revised upwards to 7.5 per cent as against the earlier estimate of
6.9 per cent. The slowdown in GDP growth during 2004-05 was largely due to a sharp decline in
agriculture. The farm sector grew by only 0.7 per cent during the year as compared to 10 per cent in 2003-
04.
Trade and hotels sector registered a growth of 8.1 per cent compared to 10.2 per cent. Communication
and transport sector grew by 14.8 per cent compared to 15.2 per cent. Financing, insurance, real estate and
business services was up by 9.2 per cent from 4.5 per cent. Community and social services also grew by
9.2 per cent during 2004-05 compared to 5.4 per cent in 2003-04.

GDP 2005
Real GDP Rate: 9.167%
Below are the contributions of different sectors in the India's GDP for 2005

Agriculture: - 20%
Service Sector: - 54%
Industry: - 26%
The government announced on Wednesday that India's gross domestic product stands revised up to
9% (from the previous estimates of 8.4 per cent) against 7.5 per cent. According to official figures, the
growth rate of 9 per cent in GDP during 2005-06 was achieved due to high growth in agriculture, forestry
and fishing, manufacturing, insurance, construction, financing, real estate and business services and
transport.

15
GDP 2006
GDP Rate: 9.658%
The summary of GDP India 2006 indicates the developmental factors that contributed to the overall
economic growth of India. The growth story of GDP India 2006 covers different sectors of Indian industry.

The snapshots of the economy of India in 2006 are as follows -

The Gross domestic capital formation in 2005-06 grew by 23.7%. FDI amounted to US$12.5 billion and
outpaced portfolio investment of US$6.8 billion.Central Public Sector Enterprises to invest Rs.165, 053
crore in 2007-08. New 162 production sharing contracts awarded to Petroleum and Natural Gas sector
SMEs witnessed steady increase in outstanding credit. Foreign trade and merchandise exports expected to
cross US$125 billion by the end of the fiscal. Provision for tourist infrastructure increased to Rs.423 crore.
Bank's differential rate of interest scheme provided finance at the rate of 4% to weaker sections. The
regional rural banks to open at least one branch in 80 uncovered districts in 2007-08. Permanent Account
Number (PAN) made sole identification number for all participants of capital market. Seven ultra mega
power projects were under process. Provision for NHDP to be increased to Rs.9,945 crore. Farm credit
target of Rs.2,25,000 crore was allotted for the financial year 2007-08 with an addition of 50 lakh new
farmers to the banking system.

GDP 2007

GDP Rate: 9.886%

The GDP India 2007 represented different important economic parameters like inflation, purchasing power
parity, bank credit, foreign direct investment, excise duty etc. Further, the GDP India 2007 includes
performance of the critical industries like manufacturing, agriculture, infrastructure, banking and insurance
etc.
16
 The forecasts for GDP of India in 2007 were as follows:
Agriculture:
• During 3-year period, acceleration in growth rate in manufacturing from 8.7% to 9.1% and then to
11.3% and growth rate in services sector from 9.6% to 9.8% and further to 11.2%.
• Achieve growth of 4% in the agriculture sector.

Banking Sector:
• Growth in bank credit, year on year, by 29.6%; expansion in M3 by 21.3%, foreign exchange
reserves at US$ 180 billion.

Allocation:
• Allocations for major sectors, like increase in provision for Bharat Nirman by 31.6% from Rs.18,
696 crore to Rs.24, 603 crore, for education by 34.2% to Rs.32, 352 crore and for health and family
welfare by 21.9% to Rs.15, 291 crore.
• Faster growth involving each and every Indian industry and sector.

GDP 2008

GDP Rate: 6.396%

The deceleration in growth in December 2007 quarter to 9.7% was mainly on account of the slower growth
recorded by the interest rate sensitive sectors – real estate and consumer durables as also the supply
problems in a few sectors. The consumption expenditure continues to grow at a healthy rate. And, the
income tax cuts and waivers of loans for farmers bestowed by the Finance Minister in the Union Budget
2008–09 are going to increase the spending power in the hands of the Indian consumer (urban and rural)
further. Rising consumption expenditure and continuation of the capex boom in that period implied that
growth momentum was sustained.

The forecasts for GDP of India in 2008 were as follows:

• GDP factor to register a growth rate of 10% and above.

• The annual inflation rate is expected to be within 5% to 5.5 %.

Agriculture:
• The growth rate of agriculture is estimated to be at 4 %.
• The food sector is expected to grow to $310 billion by 2015.
• Stocks of food-grains to grow by 14% or more.

Infrastructure:
• Construction industry growth rate is expected to be more than 11%.
• Provision for tourist infrastructure to be increased to Rs.423 crore.
• Corpus of Rural Infrastructure Development Fund to be raised.
17
 • Provision for NHDP to be increased to Rs.9, 945 crore.

Industry:
• India's Industrial growth rate to exceeded 10%.
• Manufacturing industry to record growth rate of 12% and above.
• The mining and quarrying sector to register a growth of 4% and above.
• Telecommunication sector to register growth of more than 1000%.
• Electricity sector to register 12% plus growth.
• Corporate India to record rise in salaries by 25%.
• Exports to grow by 19% and the imports by 35% and above.

Banking sector:
• Bank's differential rate of interest scheme to provide finance at the rate of 4% to weaker sections.
• RRBs to open at least one branch in 80 uncovered districts.
• Exclusive health insurance scheme for senior citizens.
• Farm credit target of Rs. 2,25,000 crore has been set with an addition of 50 lakh new farmers to the
banking system.
• Loan facilitation through Agricultural Insurance and NABARD had also been facilitated.
• Growth in bank credit to grow by 30%.

GDP 2009

GDP Rate: 5.678%

Real GDP was projected to grow by 7 %.The agricultural sector was expected to register a positive growth
rate for the fifth consecutive year. Industrial growth was expected to recover to 6 %. Services sector was
expected to register a growth of 8.8 %.

The characteristics of GDP of India in 2009 were as follows:

• The growth rate of Indian GDP fell from 7.35% in 2008-09 to 5.36% till the end of 3rd quarter of
the 2009-10.
• The cumulative FDI Equity inflows (from August 1991 – August 2009) stood at Rs.5,20,589 crore.
• Budgetary support for NHDP has gone by 23% on y-o-y basis for 2009-10.
• Expenses for the CWG 2010, went up from Rs.2,112 crore in Interim Budget to Rs.3,472 crore for
2009-10 fiscal.
• Allocation to railways had gone up from Rs.10,800 crore in interim budget to Rs.15,800 crore for
FY 2009-10.
• Allocation under NRHM had gone up by Rs.2,057 crore over interim budget estimate in 2009-10 of
Rs.12,070 crore.

18
 • Rs.2,113 crore was allocated for IITs and NITs, comprising of a provision of Rs.450 crore for new
upcoming IITs and NITs.
• Minimum Alternate Tax (MAT) to go up to 15% from 10%.

GDP Growth 2010

Real GDP Rate: 9.668%

The GDP growth was expected to accelerate to 9.2 % in 2010-11. The industrial and agricultural sectors
will lead the growth in 2010-11. Industrial sector is projected to grow by 9.6 % during the fiscal year, on
top of the 9.4 % growth estimated in 2009-10. The agricultural & allied sector is projected to grow by 5.8
%, as against a 1 % fall estimated in 2009-10.

The characteristics of GDP India 2010 are as follows:

• The growth rate has been 8.6 % in 2010-11 and is expected to be around 9 % in the next fiscal year.

Agriculture:
• With a relatively good monsoon the agriculture-sector was expected to grow at 5.4 %.
• The foodgrain production went up to 232.1 billion tonnes from 218.1 billion tonnes.

Savings:
• Rise in savings and investments and pick up in private consumption had resulted in 9.7 % growth of
GDP at market prices (constant).
• Savings rate had gone up to 33.7 % while the investment rate is up to 36.5 % of GDP.

Industry:
• The Survey reported that the industrial output growth rate was 8.6 % while the manufacturing
sector registered a growth rate of 9.1 % in 2010-11.
• The telecommunications sector has done exceedingly well as the tele-density has increased to
143.95 % in 2010 in urban areas while in the rural areas it has gone up to 30.18 % in 2010.
• Exports in April-December 2010 went up by 29.5 % while the imports registered a growth rate of
19 %.

Banking sector:
• The inclusive growth agenda of the Government is reflected in the 59 % rise in Net Bank Credit.

19
 • The expenditure on Social sector programs has been stepped up by 5 % point of GDP over the past
five years.
• The specific schemes for Scheduled Castes, Tribes, OBCs and the regions such as North-East,
expansion of NREGA, Sarva Shiksha Abhiyan , NRHM, in terms of coverage as well as the
spending and monitoring have found specific mention in the report.

Following are the GDP rates from 1990-2010:

20
REFERENCE:

CMIE

www.moneycontrol.com

www.rawfiles.com

www.scribd.com

www.tradingeconomics.com

BIBLIOGRAPHY:

www.moneycontrol.com

www.rawfiles.com

www.tradingeconomics.com

21