In this edition, we will take a look at the important indicators of Macroeconomics.
What is GDP?
Gross domestic product is the absolute value of everything produced in the nation. It doesn’t make a difference if it’s produced by residents or outsiders. In the event that they are situated inside the nation’s production is incorporated into GDP. As to avoid the double-counting, GDP incorporates the last estimation of the product, however not the parts that go into it.
India’s-GDP per Capita
After the demonetization, it was seen that in the fundamental quarter of Fiscal Year (FY) 2018—which continued running from April to June 2018—GDP became 8.2% in year-on-year terms in FY 2018, up from 7.7% in FY 2017. Total national output Annual Growth Rate in India landed at the midpoint of 6.13 percent from 1951 until 2017, accomplishing an untouched high of 11.40 percent in the essential quarter of 2010 and a record low of – 5.20 percent in the last quarter of 1979.
Size of India’s GDP
The government has cut FY19 GDP gauge to 7 percent from 7.2 percent prior, which will put India’s growth rate at a five-year low for the current monetary. October-December GDP development came in at 6.6 percent, which was slowest in five quarters. The extent of the Indian economy is presently observed at Rs 190.5 lakh crore, which makes India’s GDP at $2.7 trillion. India’s ostensible GDP development is seen at 11.5 percent in FY19 against 11.3 percent a year ago.
Comparison of India’s GDP with its Neighbouring Countries and Trading Partners
If we compare it with its neighbouring countries and trading partners
China : 11.2 trillion USD,
Srilanka : 81.32 billion USD,
Nepal : 21.14 billion USD,
Bangladesh : 221.4 billion USD.
GDP of China is higher than in both countries. GDP of India is higher than Sri Lanka but per capita GDP of Sri Lanka is higher than India. Per capita GDP means the total income of the country divided by the no of person. So it does not mean if GDP is high then per capita GDP is also high. Because some rich person’s income involved and divided by the all number of person but there are some people whose income is zero.
Key Components of GDP
Indian economies are divided into three sectors Agriculture and allied, Industry and Services.
- Agriculture: It contributes about 17.1% of India’s GDP.
- Industry: Industries accounts for 29.1% of India’s GDP.
- Service: The service sector has the largest share in India’s GDP, contributing 53.9%.
What Happens to Macroeconomic Variables?
Inflation rates: India’s inflation rate has been increased by 4.44% in February 2018 which is lower than that of in January which was 5.07%.
Unemployment rates: India’s unemployment rate has been decreased to 3.46% from the previous year by .03%.
Interest rate: RBI keeps the interest rate steady at 6% as on 7th February 2018.
India balance of trade rate: it has expanded to 11.98 billion USD in February 2018 from 9.5 billion as in the previous year. Imports are increased to 10.4% whereas exports are increased to 4.5%.
India government debt to GDP rates:It is recorded to about 69.50% of countries GDP.
Real GDP is the macroeconomic measure of the value of output economy, adjusted for price changes. The adjustment transforms the nominal GDP into an index for the quantity of total output.
Nominal GDP is the market value (money-value) of all final goods and services produced in a geographical region, usually a country.