THE SOCIO ECONOMIC

CONDITION OF INDIAMACROECONOMICS

CONTENTS:

THE GDP GROWTH RATE OF INDIA

THE INFLATION RATE OF INDIA

THE EXCHANGE RATE OF INDIA BETWEEN 10 OTHER COUNTRIES FROM LAST 10 YEARS

MAJOR PROBLEMS AND SUCCESS FACTOR OF INDIA

INTRODUCTION

GDP: $2.25 TRILLION (NOMINAL; 2016), $8.72 TRILLION (PPP; 2016) GDP RANK: 7TH (NOMINAL) / 3RD (PPP) SEVENTH-LARGEST COUNTRY BY AREA, THE SECOND-MOST

POPULOUS COUNTRY (WITH OVER 1.2 BILLION PEOPLE) EXPORTS: $272.4 BILLION (2015 EST.) IMPORTS: $409.2 BILLION (2015 EST.) FOREIGN RESERVE: $367.04 BILLION (8TH)

(AS ON 18 NOVEMBER 2016)

THE GDP GROWTH RATE OF INDIA

WHAT IS GDP ?GROSS DOMESTIC PRODUCT (GDP) IS THE MONETARY VALUE OF ALL THE FINISHED GOODS AND SERVICES PRODUCED WITHIN A COUNTRY'S BORDERS IN A SPECIFIC TIME PERIOD.

GDP IS A BROAD MEASUREMENT OF A NATION’S OVERALL ECONOMIC ACTIVITY.

GDP SHOWS IN LINE DIAGRAM

2006 2007 2008 2009 2010 2011 2012 2013 2014 20150

2

4

6

8

10

12

9.264 8.608

3.891

8.48

10.26

6.6385.619

6.639 7.243 7.57

GDP Growth Rate

Year

Gro

wth

Rat

e(%

)

WHAT IS INFLATION ?• INFLATION IS A SUSTAINED INCREASE IN THE GENERAL

LEVEL OF PRICES FOR GOODS AND SERVICES.• IT IS MEASURED AS AN ANNUAL PERCENTAGE INCREASE.• AS INFLATION RISES, EVERY DOLLAR YOU OWN BUYS A

SMALLER PERCENTAGE OF A GOOD OR SERVICE. • THE VALUE OF A DOLLAR DOES NOT STAY CONSTANT WHEN

THERE IS INFLATION.

The inflation rate of India:

Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Inflation

Rate(%)

6.423 6.918 8.665 6.064 8.984 5.243 7.852 6.227 3.3 0.995

INFLATION SHOWS IN LINE DIAGRAM:

THE EXCHANGE RATE BETWEEN INDIAN CURRENCY AND OTHER 10 COUNTRIES CURRENCY FROM 2006-2015:

Year &

Country

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

US dollars 45.31 41.38 43.50 48.42 45.72 46.67 53.44 58.60 61.03 64.15

Euro 56.85 56.68 64.14 67.36 60.58 64.65 68.59 77.83 81.06 71.15

British

Pound

83.91 82.94 80.62 75.64 70.57 74.52 84.67 91.65 100.49 98.02

Swiss

(Franc)

36.12 34.54 40.43 44.62 43.86 52.54 56.92 63.20 66.73 66.71

BD

Taka(Cent)

59 61 69 65 62 64 73 77 80 84

Hong Kong

(Dollar)

5.82 5.32 5.62 6.24 5.88 5.97 6.89 7.54 7.87 8.27

UAE

(Dirham)

12.32 11.30 11.92 13.12 12.43 12.64 14.54 15.93 16.61 17.46

Japanese

Yen(cent)

(Cent)

39 35 43 52 52 58 67 60 58 53

Australian

(Dollar)

34.09 34.62 37.01 38.22 41.96 47.95 55.36 56.45 55.05 48.18

Chinese

(Renminbi)

5.45 6.12 7.10 6.74 7.11 8.43 9.31 9.89 10.26 10.14

MAJOR ECONOMICS PROBLEMS:INFLATION

POOR EDUCATIONAL STANDARDSPOOR INFRASTRUCTURE

BALANCE OF PAYMENTS DETERIORATION.HIGH LEVELS OF PRIVATE DEBT

INEQUALITY HAS RISEN RATHER THAN DECREASED.

LARGE BUDGET DEFICITRIGID LABOR LAWS

INEFFICIENT AGRICULTURE

ANNUAL GROWTH OF GDP

• ECONOMIC GROWTH SURGED TO NEAR DOUBLE-DIGIT LEVELS.

• THE GROWTH HAS SLOWED TO SUB-5 PERCENT LEVELS IN THE LAST TWO FINANCIAL YEARS.

FOOD GRAIN PRODUCTION

• A RECORD 264 MILLION TONS IN THE FISCAL YEAR 2014.

ROADS

• COUNTRY HAS PROGRESSED SIGNIFICANTLY IN BUILDING ROADS.• THE COUNTRY NEEDS A WIDER ROAD NETWORK.

IMPORT/EXPORT

• CURRENT ACCOUNT DEFICIT WIDENED TO A RECORD 4.8 PERCENT OF THE GDP IN THE FISCAL YEAR 2013.

INDIA'S EXTERNAL DEBT

• COUNTRY'S EXTERNAL DEBT HAS SURGED TO $440 BILLION.• TOTAL GOVERNMENT DEBT STOOD AT $82

BILLION.• NON-GOVERNMENT DEBT AT $359 BILLION.