GDP ( GROSS DOMESTIC PRODUCT ) ANALYSIS
What is GDP?
Gross domestic product (GDP) , total market value of the goods
and services produced by a country’s economy during a specified
period of time.
What is GDP Growth?
GDP Growth rate measures how fast components of an economy
are growing. Those components can be added together via three
methods : final expenditures, value-added in production ,or
income.
COMPARATIVE ANALYSIS REPORT OF PAST 3 YEARS ( 2018-2021)
(At current prices)
FY 2020-2021 FY 2019-2020 FY 2018-2019
QUAR Q1 Q Q Q Q Q Q Q Q1 Q2 Q3 Q
TERS 2 3 4 1 2 3 4 4
GROW (22. - - - 8. 5. 7. 7. 18. 11. 11. 7.
TH 57) 4. 0 8 3 5 57 40 36 8
RATE 0 6 7 9 3 9
% 4
In India , the growth rate in GDP measures the change in the seasonally
value of the goods and services produced by an Indian economy during
the quarter. India is the world’s tenth largest economy and the second
most populous. The most important and the fastest growing sector of
Indian economy are services. Trade, hotels, transport and
communication ;financing, insurance ,real estate and business services
and community, social and personal services account for more than 60
percent of GDP. Agriculture , forestry and fishing constitute around 12
percent of the output, but employs more than 50 percent of the labor
force. Manufacturing accounts for 15 percent of GDP, construction for
another 8 percent and mining, quarrying, electricity, gas and water
supply for the remaining 5 percent.
FORECAST OF GDP
WITH REFORM , INDIA COULD RELEASE UPTO 3.6% OF GDP ON
AVERAGE PER YEAR, TO FINANCE ADDITIONAL SPENDING
COMPARATIVE ANANLYSIS OF THE GDP WITH PREVIOUS
QUARTERS
The statistic shows the growth of the real gross domestic product (GDP)
in India from the second quarter of 2018 to the second quarter of 2020.
GDP refers to the total market value of all goods and services that are
produced within a country per year. It is an important indicator of
economic strength of a country. Real GDP is adjusted for price changes
and is therefore regarded as a key indicator for economic growth. In the
second quarter of 2020,the real GDP in India fell by 23.9 percent,
compared to the same quarter of the previous year.
India GDP growth slower than expected in Q4
The economy of India grew 0.4% year on year in the last three
months of 2020, slightly below market forecasts of a 0.5% gain.
Still, it is the first expansion in three quarters as the government
opened economic activities from June after a coronavirus
lockdown in late-March.
India GDP shrinks less than expected in Q3
The Indian economy shrank 7.5% in Q3 2020, less than
expectations of an 8.8% drop, amid easing of lockdown restrictions
from June, higher demand during festival season and a rebound in
manufacturing and utilities. The GDP is still seen contracting in Q4
as the pandemic is far from controlled and the government
announced a $10 billion stimulus package in mid-October only.
India GDP contracts 23.9% in Q2
It is the biggest contraction on record, as India imposed a
coronavirus lockdown in late March and extended it several times,
halting most economic activities. Still, India remains the third
worst-affected country in the world by the pandemic.
India GDP growth revised down inn 2019 /19
The Indian economy expanded 4.5 percent year-on-year in the
three months to September of 2019, the weakest pace since the
first three months of 2013, mainly due to a fall in factory output and
exports and a slowdown in investment. For the 2018-19 fiscal year
which ended in March 2019, the economy advanced 6.1 percent,
the least since fiscal year 2013 and below an initial estimate of 6.8
percent. Growth for the 2017-18 fiscal year was also revised lower
to 7 percent from 7.2 percent. The government expects GDP
growth to fall to 5 percent in the 2019-20 fiscal year, the least since
fiscal 2008-09 but to pick up to 6-6.5 percent in the fiscal year
starting on April 1st 2020.
India Q1 GDP growth slows to 5-year low
The Indian economy advanced 5.8 percent year-on-year in the first
quarter of 2019, slowing from a 6.6 percent expansion in the
previous period and missing market expectations of 6.3 percent. It
was the weakest growth rate since the first quarter of 2014, amid
weaker consumer demand and fixed investment.
India GDP Grows Less than Expected in Q4
The Indian economy advanced 6.6 percent year-on-year in the last
three months of 2018, below a downwardly revised 7 percent
expansion in the previous period and market expectations of 6.9
percent. It is the lowest growth rate in five quarters as weak
consumer demand and government spending held back
expansion.
CONCLUSION
The economy of India grew 0.4% year-on-year in the last three
months of 2020, slightly below market forecasts of a 0.5% gain.
Still, it is the first expansion in three quarters as the government
opened economic activities in phases from June after a
coronavirus lockdown in late-March. On the expenditure side, both
private (1% vs -8.3% in Q3) and public (7.2% vs -17.5%) spending
rebounded. Gross fixed capital formation also returned to growth
(5.9% vs -7%) while exports declined 1.7% (vs -0.1% and imports
sank 2% (vs -16.9%). On the production side, gross value added
surged 1%, boosted by a rebound in manufacturing (1.6% vs
-1.5%), construction (6.2% vs -7.2%), financial, real estate and
professional services (6.6% vs -9.5%). Also, the farm sector rose
faster (3.9% vs 3%) and utilities output surged (7.3% vs 2.3%).
The contraction for financial year 2020/2021 was estimated slightly
higher at 8% from 7.7% which would be the biggest drop ever.
