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					          PRESENTED BY..
•   AMOL KHEDKAR        •   P-04
•   OJAS KHADAKKAR      •   P-05
•   DAYANAND TRIMUKHE   •   P-o6
•   YOGESH GIRI         •   P-09
•   SUJAYANAND SAWANT   •   P-34
•   NITIN NIRGUDE       •   P-42
GROSS DOMESTIC PRODUCT
            What’s the GDP
• Basic measure of a country's overall economic
  output.
• It is the market value of all final goods and
  services made within the borders of a country
  in a year.
• It is often positively correlated with the
  standard of living
          Calculation of GDP
• Three methods

1. Product approach

2. Expenditure method

3. Income method
    Components of GDP by expenditure
                method
• GDP= C + I + G + (X − M)

•   Consumption (C),
•   Investment (I),
•   Government Spending (G)
•   Net Exports (X - M).
GDP Of INDIA from 1960 to 2005
GDP of INDIA from 2005 to 2009

                9.7
     9.5
                           9




                                     6.7
                                                6.5




2005-06    2006-07    2007-08   2008-09    2009-10
                    Inflation
• General rise in the level of prices of goods
  and services over a period of time.
• Erosion in the purchasing power of money.
• Calculated at Whole Sale Price Index
  – Wider commodity coverage
  – Available on weekly basis
  – Computation at all India level
            Types of Inflation
• Demand pull inflation.

• Cost push inflation.

• Stagflation
       General causes of Inflation
•   Population explosion.
•   Poor performance of agriculture sector.
•   Poor performance of industrial sector.
•   Black marketing/ Hoarding.
            Measures to control
• Monetary measures             • Fiscal Policy Measures
  – Interest rates                 – Promotion of savings
  – Cash Reserve Ratio.            – Increase in production
  – Statutory Liquidity            – Check unproductive
    Ratio.                           public expenditure




       •   Action against Black Marketers & Hoarders.
                • Public Distribution System.
Inflation Rates
                 Trends
• March 2008 (7%)

• March 2009 (0.27%)

• January 2010(7.31%)
                UNEMPLOYMENT

A situation where people who are willing and able to work cannot
find employment
     Nature of Unemployment in India

Rural Unemployment         Urban Unemployment

• Disguised Unemployment   • Industrial Unemployment

• Seasonal Unemployment    • Educated Unemployment

• Open Unemployment
      Causes of Unemployment in India
 Rural Unemployment
                                          Urban Unemployment
• Population Explosion                •   Slow Industrial Development
• Poor Implementation of              •   Industrial Sickness
  Employment Schemes                  •   Problem of Technology
• Seasonal Character of Agriculture   •   Cyclic Fluctuations
• Farm Mechanism                      •   Protective Labour Laws
• Problem of Education
• Poor Rural Development
           Unemployment Rate

• It is the percentage of Labour force that is
  Unemployed
• It is key indicator of economy’s health
• Labour Force - It is sum of employed and
  Unemployed
• Measurement of Unemployment Rate :
                            Unemployed
 Unemployment Rate = ---------------------------X 100 %
                          Total Labour Force
India-Unemployment Rate

                    Unemploy       Percent
               Year ment rate Rank Change

                2002   8.80%

                2003   8.80%    110

                2004   9.50%    105   7.95%

                2005   9.20%     83 -3.16%

                2006   8.90%     91 -3.26%

                2007   7.80%     92 -12.36%

                2008   7.20%     89 -7.69%

                2009   6.80%     85 -5.56%
      Agricultural Productivity
• Backbone of Indian economy
• Imp for sustained growth of economy
• Revolutions-
•       green revolution
•       white revolution
•       yellow revolution
    National Agriculture Policy (NAP)
• Features of NAP-

•   Sustainable agriculture
•   Food & nutritional security
•   Investment in agriculture
•   Incentives for agriculture
•   Risk management
•   Minimum support prices
               Current scenario

•   Deceleration in agricultural growth
•   Growth declined from 3.62% to 2%
•   Share in GDP declined
•   1990-91-32 %
•   2005-06-20 %
•   2007-2008-17 %
•   Declining public investment
•   Farmers committing suicide
        Causes for low productivity

• Weak framework for sustainable water
  management
• Traditional method
• Small land holding
• Rural poor have low access to credit
• Inadequate infrastructure & services
• Over regulation of domestic agriculture trade
      Measures to boost productivity

• Improving water resources & irrigation
  management
• Strengthening rural non farm sector growth
• Improving access to land
• Improving access to rural finance
• Technical prospective
 PLANS & POLICIES FOR INDUSTRIAL
          DEVELOPMENT
• First plan (1951-1956)

• Second & Third plan(1956-1966)

• FERA Act(1973)

• 1977 industrial policy statement
INDUSTRIAL GROWTH RATE
      BEFORE 1991
INDUSTRIAL GROWTH RATE
       AFTER 1991
        •   Low Govt. Spending
        •   Slow growth exports
        •   Reduction in custom Duty
        •   Postponement of expansion plans
        •   Rising inflation affected in demand
            of industrial goods


        • Better performance of Agricultural sector
        • Release of more funds from banking sector
INDUSTRIAL GROWTH RATE
    AFTER 1991 contd..
         •   Slowdown In investment activity
         •   Increased competition from imports
         •   East Asia Crisis of 1997
         •   Poor performance of Agriculture secto



         • Growing demand for consumer durabl
           & Non durable products
         • Increase in production of capital goods
INDUSTRIAL GROWTH RATE
           `
       AFTER 2002




      SOURCE- http://pib.nic.in/release/release.asp?relid=45554
    Economy 3 sector


• Primary

• Secondary

• Tertiary
SECTORAL CONTRIBUTION TO GDP
(IN PERCENT)AT CONSTANT PRICES
(1999-2000)
 Year      Primary   Secondary   Tertiary   Total

 1950-51   55        16          29         100

 1990-91   35        25          40         100

 2005-06   21.7      24.1        54.2       100
             REFERENCE…
•   Book- Business Economy(Marvel Publication)
•   www.google.com
•   www.wikipedia.com
•   www.pib.nic.in
•   www.planningcommission.gov.in
•   Economic survey 2006-07

				
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posted:9/14/2010
language:Indonesian
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