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PSG INSTITUTE OF MANAGEMENT

MBA 2011-13 BATCH

I Trimester

Session XVII- For Batch C and DBusiness Decisions and Government -3

(Contd.)

12th Oct 2011EFM Faculty P.Uday Shankar1

ECONOMICS FOR MANAGERS

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Go to website……  http://www.reffonomics.com/TRB/chapter21/GDP/ 

realgdp4.swf 

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Top 10 GDP Countries 2000-2050 

The table in the next slide shows the top 10countries by GDP (Gross DomesticProduct)expressed in billions of US$, for theyears 2000, 2010, 2020, 2030, 2040 and 2050,

listed by projected 2050 rank.SOURCE: Goldman Sachs 

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Comparison of GDPs of some countries

2050Rank

CountryName

2000GDP

2010GDP

2020GDP

2030GDP

2040GDP

2050GDP 

1 CHN China 1078 2998 7070 14312 26439 44453

* EU European Union*

9395 12965 16861 21075 28323 35288

2 USA UnitedStates

9825 13271 16415 20833 27229 35165

3 IND India 469 929 2104 4935 12367 27803

4 JPN Japan 4176 4601 5221 5810 6039 6673

5 BRA Brazil 762 668 1333 2189 3740 6074

6 RUS Russia 391 847 1741 2980 4467 5870

7 UK  UnitedKingdom 1437 1876 2285 2649 3201 3782

8 GER Germany 1875 2212 2524 2697 3147 3603

9 FRA France 1311 1622 1930 2267 2668 3148

10 ITA Italy 1078 1337 1553 1671 1788 206112th Oct 2011

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India’s GDP from 1998 to 2010 

INDIA GDP AT 1729.01 BILLION 

India Gross Domestic Product is worth 1729 billiondollars or 2.79% of the world economy, according tothe World Bank. Historically, from 1960 until 2010,India's average Gross Domestic Product was 339.84billion dollars reaching an historical high of 1729.01billion dollars in December of 2010 and a record low of

36.61 billion dollars in December of 1960. India'sdiverse economy encompasses traditional villagefarming, modern agriculture, handicrafts, a wide rangeof modern industries, and a multitude of services.Services are the major source of economic growth,

accounting for more than half of India's output withless than one third of its labor force. The economy hasposted an average growth rate of more than 7% in thedecade since 1997, reducing poverty by about 10percentage points. This page includes: India GrossDomestic Product (GDP) chart, historical data,

forecasts and news. 12th Oct 20116 EFM Faculty P.Uday Shankar

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GDP growth trend 7.70% - Q1, 2011-12 

7.80% - Q4, 2010-11 8.30% - Q3, 2010-118.90% - Q2, 2010-11

8.80% - Q1, 2010-11 revised  9.40% - Q4, 2009-10 7.30% - Q3, 2009-10 8.68% - Q2, 2009-10

6.33% - Q1, 2009-108.50% - 2010-118.00% - 2009-10 (Source: Ecofin-surge) 

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 Quarters  AUGUST 31, 2011

GROSS domestic product (GDP) growth in India

continued to slide falling to 7.7 per cent in the firstquarter of the current financial year (April-June 2011-12),against a 7.8 per cent growth in the preceding quarterand an 8.8 per cent growth recorded in the first quarterof the previous year (according to the revised estimates

based on the new series of IIP). The country's GDP atfactor cost at constant (2004-2005) prices stood atRs12,26,339 crore, as against Rs11,38,286 crore in thefirst quarter of the previous fiscal (2010-11), accordingto figures released by the Central Statistical

Organisation (CSO). Sectors driving the first quartergrowth include electricity, gas and water supply (7.9 percent), trade, hotels, transport and communication (12.8per cent), financing, insurance, real estate and businessservices (9.1 per cent).

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 Quarters 

As per the latest estimates of the index of

industrial production (IIP), growth in the indexof mining, manufacturing and electricityslowed to 1.0 per cent 7.5 per cent and 8.2 percent, respectively, in April-June 2011-12against growth rates of 8.0 per cent, 10.3 percent and 5.4 per cent, respectively, during thefirst quarter of the previous fiscal. GDP atfactor cost at current prices is estimated tohave grown 16.7 per cent year-on-year to

Rs19,37,123 crore during the first quarter of2011-12 quarter, against Rs16,59,708 crore inthe corresponding period of 2010-11. Thesector-wise breakdown showed that the

construction sector had been one of the worst-12th Oct 201110 EFM Faculty P.Uday Shankar

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India's Weakest Growth in Six Quarters 

Construction grew at 1.2%, down from 8.2% in theprevious quarter, as rising interest rates and delays inplanning approvals held up building projects.Agricultural output rose 3.9%, which was down fromthe previous quarter but above the level of 2.4% in thesame period last year. Manufacturing grew 7.2%, animprovement from the previous quarter, but well

below the 10.6% in the corresponding quarter of 2010-11.Private final consumption expenditure (PFCE) atconstant (2004-05) prices is estimated at Rs7,95,683crore in Q1 of 2011-12 against Rs7,48,395 crore in Q1of 2010-11, while Government final consumption

expenditure (GFCE) at constant (2004-2005) prices isestimated at Rs1,36,935 crore in Q1 of 2011-12 againstRs1,34,161 crore in Q1 of 2010-11. Gross fixed capitalformation (GFCF) at constant (2004-2005) prices isestimated at Rs4,10,533 crore in Q1 of 2011-12 againstRs3,80,544 crore in Q1 of 2010-11.

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India's Weakest Growth in Six Quarters 

The first GDP numbers for the current fiscal confirmseveral analysts’ assessment of economic prospects

for the financial year which would involve furthermoderation in growth due to stricter monetary policyto curb inflationary pressures. Signs are alreadyvisible as according to data from the Centre forMonitoring Indian Economy, new investmentannouncements by companies have more than halvedto Rs 32.5 lakh crore during April-June 2011 from Rs71.4 lakh crore in the corresponding period last yearas high interest rates, decline in demand and policyuncertainty have taken a toll. Declining investmentcan only aggravate inflationary pressures as supply –

sidebottlenecks increase. While the 7.7 per centgrowth silhouetted against a murky global scenarioseems impressive, given the estimated requirementsthat we spoke about in our previous blog, a 7.7 percent and slower future growth could well jeopardize a

lot of calculations on achieving deficit targets as wellas infrastructure development and inclusive growth.12th Oct 201112 EFM Faculty P.Uday Shankar

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Thanks

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