SUBJECT: MACRO ECONOMICS

ASSIGNMENT 2: ECONOMIC SURVEY 2018

(VOLUME II – CHAPTER I AN OVERVIEW OF INDIA’S
ECONOMIC PERFORMANCE)

TEAM: DR.ADAM SMITH

NAME ROLL NUMBER

Ebronah Dorothy J PGFX19008

Ravindran G PGFX19033
Siddharth Sabari PGFX19040
R.VIKRAM ANAND PGFX19050
S.SRINIVASA RAGHAVAN PGFX19054

DATE: 7.3.2018.
 TOPIC 1
Quarterly growth in GDP and GVA (per cent)

13.0 Real GVA Real GDP Nominal GVA Nominal GDP

12.0
11.0
10.0
9.0
8.0
7.0
6.0
5.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2015-16 2016-17 2017-18

The Real GVA and Nominal GVA was compared with Real GDP and Nominal GDP from
the year 2015 to 2018. In the financial year 2015-2016 the real GDP and real GVA
values shows a slight difference in the first 2 quarters as 8.2 and 8.5 % and the prices are
increasing steadily in the next 2 quarters. In the first quarters and in the final quarter of the
financial year 2016 -17 the real GVA shows a slight decline and increase in the third quarter
while real GDP is in decline phase. Nominal GVA and nominal GDP declines in the second
quarter and reaches 12 % in the final quarter and reaches maximum of 13% in the year
2016-2017’s final quarter.in the first 2 quarters of 2017-2018 both GVA and GDP shows an
increase in price.
I would like to focus on the agriculture sector since it’s the backbone of any country and
especially India. With reference to the agriculture and allied sector, the agriculture sector
showed significantly higher growth in the year 2016-17. Food grains production is also
increasingly with an estimate order of 275.7 million tonnes in 2016-17, with both cereals
and pulses achieving record levels of production. GVA of agriculture sector is increased

2
thrice between 2015 – 2018 . There will be definitely a demand in the market for agricultural
sector.

TOPIC 2

AVERAGE GROWTH RATE OF GDP DURING 2014-17 (Per cent)

7.3
6.9

4.5
3.4

2.0

World Advanced EMDE China India

economies

Source: Based on IMF’s World Economic Outlook Database (October 2017)

GDP growth rate is depicted in the figure. The growth rate of India is at maximum of 7.3 and stand
s first according to the IMF’s world economic outlook therefore rated as among the best
performing economies in the world. China stands next in the economic growth. when compared
to EMDE the increase in percentage of GDP by India is 2.8%. Initially the world GDP was only
3.4 % and India has attained the best economy by showing profit in all the sectors