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Economy in India - Term Paper Example

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Economy in India Name: Institution: Course: Supervisor: Date: May 14, 2013 Economy in India Introduction Economy defines wealth and resources of a territory and application and administration of the wealth in the production, distribution, and consumption of goods and services…
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Economy in India
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Economy in India

Download file to see previous pages... I, in this paper, discuss the economy of India through exploring the country’s macroeconomic indicators. Economic indicators Macroeconomics defines larger aspects of an economy. The factors are comprehensive and affect overall state of an economy with diversified effects on all stakeholders in the economy. Examples of macroeconomic factors that offer a basis to reviewing the economy of India are domestic gross product, unemployment, inflation, consumer price index, foreign direct investment, and international trade (Dwivedi). Gross domestic product Gross domestic product is the monetary value of the amount of goods and services that a country produces within an economic period, normally a year. It indicates productivity level of an economy and shows derivable benefits from the output. An economy with high gross domestic product can therefore be associated with positive prospects and increasing trend in the value identifies a growing economy that can offer investment opportunities and utilities among its citizens (Dwivedi 55). India’s gross domestic product is estimated at about $ 1867 billion, a value that is comparatively high. Prospects in the gross domestic product can however be understood from its trend. ...
By April 2013, the country’s gross domestic product was estimated at $ 1867.4 billion, more than twice its value in 2005 and the constant trend predict continued expansion. This means that India’s economy has growth potentials and is therefore a viable economy for investment. The increasing productivity also means availability of commodity for utilities and employment opportunities (Exim Bank, 1). Closer evaluation of the country’s gross domestic product by the economy’s major sectors identifies service industry as the major contributor of the country’s output as it accounts for more than 50 percent of India’s gross domestic product. Industrial sector follows it before the agricultural sector and its associated activities. A time series trend in the sectors over the past eight years also offers significant insight into India’s economy. The percentage contribution by the agricultural sector has been decreasing while percentage contribution from the service sector has been increasing with significantly constant percentage contribution from the industrial sector. The agricultural sector and its allied activities generated more than 18 percent of the country’s gross domestic product in the year ended 2006 but the value reduced steadily to record about 14 percent in the year 2013. Contribution from the service industry however increased from less that 54 percent in the year ended 2006 to 58.4 percent in the year ended 2013 and this shows a shifting trend from agricultural activities to the service industry (Exim Bank, 1). Another significant feature of the economy’s gross domestic product is the consumption and its trend. Private sector is the major consumer of the economy’s output and its consumption rate has a steadily increasing trend. ...Download file to see next pagesRead More
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