Finalindian Ecomony Gdp Pci Ppt Latest

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A measure of the total output of a country

that takes the gross domestic product (GDP) and

divides it by the number of people in the country.

The per capita GDP is especially useful whencomparing one country to another because it shows

the relative performance of the countries. A rise in

per capita GDP signals growth in the economy and

tends to translate as an increase in productivity.

Definition of 'GDP Per Capita'


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The formula is Y = C + I + E + G .

where as

Y = GDP.

C= Consumer Spending

I = Investment made by industry

E = Excess of Exports over Imports

G = Government Spending

.

How to calculate GDP ?


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There is a difference between the concept of GDP and

GDP per capita even though both serve as a

barometer of a nations economic strength.

GDP on one hand is defined as the total market value

of all final goods and services produced in a country ina given year, equal to total consumer, investment, and

government spending, plus the value of exports,

minus the value of imports (investorwords.com).


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GDP per capita on the other hand is the share of

individual members of the population to the annual

GDP(nationmaster.com). GDP per capita is computed

through dividing the real or nominal value of GDP by

the countrys annual total population count, and isoften linked by economists with standard of living.

Best example that would show the difference betweenGDP and GDP per capita is through comparison

between the economy of China and the US.


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In terms of GDP, China and U.S. are close

with each other. However in terms of GDPper capita, China falls way behind the U.S.

which is due to the great difference in

number of population among the twocountries.


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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

% CHANGE 2.29 3.53 2.16 6.76 6.74 7.83 7.77 8.35 3.53 7.65 7.35

0

1

2

3

4

5

6

7

8

9

InPer

centage

% CHANGE in GDP Per Capita

SOURCE:Tradingeconomies.com


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900

950

10001050

1100

1150

12001250

2000 2001 20022003 2004 2005 2006 2007 2008 2009 2010

Millionsofpeople

years

INDIAN POPULATION (in millions of people)


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0

1

2

3

4

5

6

%ChangeIn

Population

Years

% change in population

% change in population


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0

1

2

3

4

5

6

7

8

9

10

% change in GDP PerCapita

% in change in

populationLinear (% change in GDPPer Capita )

Linear (% in change inpopulation)


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The reduction of overall growth rate of GDP to 6 per cent in 2000-01 is mainlydue to a decline in the growth rate of service sector from 9.6 per cent in 1999-2000 to 8.3 per cent in the 2000-01

The overall growth of 5.4 percent in 2001-02 is supported by a growth rateof 5.7 percent in agriculture and allied sectors, 3.3 percent in industry and6.5 percent in services. The acceleration of the overall GDP growth rate isbasically due to a significant improvement in value added in the agricultureand allied sectors from a negative growth rate of (-) 0.2 percent in 2000-01to 5.7 per cent in 2001-2002.

The reduction of overall growth rate of GDP to 6 per cent in 2000-01 is mainly

due to a decline in the growth rate of service sector from 9.6 per cent in 1999-2000 to 8.3 per cent in the 2000-01

Reasons For Change in GDP Per Capita From 2000-2010


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In 2003-04 India Per Capita Income was Rs 20989. India's GDP grew 8.5 per

cent in the financial year 2003-04 with 7.3 per cent growth in the

manufacturing sector and over 10 per cent in agriculture also growth with

hotel and transport sector clocking a double digit growth of 11.2 per cent in2003-04 from seven per cent in 2002-03.

Per Capita Income in India was Rs 23241 in 2004-05. The GDP growth for

2004-05 was revised upwards to 7.5 per cent as against the earlier estimateof 6.9 per cent by CSO. The slowdown in GDP growth during 2004-05 waslargely due to a sharp decline in agriculture. The farm sector grew by only 0.7

per cent during the year as compared to 10 per cent in 2003-04.

India's GDP stands revised up to 9 per cent from the previous estimates of

8.4 per cent in 2005-06 the revision has had an effect on the growth in theagriculture sector, which is now shown at six per cent Manufacturing is

shown a shade better at 9.1 per cent as against the previous figure of 9 per

cent. With the revision in the figures by the Central Statistical Organisation,the GDP growth shows a significant improvement for the previous financial

year over 2004-05


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Recording another year of impressive performance, the economy grew by 9.6

per cent during 2006-07, leading to over 14 per cent increase in the per capitalincome, While agriculture sector grew by 3.8 per cent, down from 6.1 per cent,

manufacturing sector recorded 12 per cent growth, which is substantiallyhigher than 9.1 per cent growth recorded in the previous year.

Agriculture sector lifted Indias economic growth to 9% in 2007-08 from the

earlier projection of 8.7%. This will be the third year in a row, when the Indian

economy grew at the rate of 9% and above.


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Braving the global recessionary trends, India managed 6.7 per cent

economic growth in 2008-09 despite the manufacturing sector recording

a dismal performance at a time when most developed economies haveshrunk, puts India among the top-most growing nations.

Indian GDP was 7.4 percent during fiscal year 2009-2010, which ended at

March 31, 2010, against earlier forecast of 7.2 percent by Indian Ministryof Statistics and Program Implementation. The government said the brisk

performance of agriculture, forestry and fishing, mining and quarrying as

well as manufacturing sectors.


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The Indian economy grew at its slowest pace in more than two years

at the end of 2011 as high inflation and the euro-zone debt crisis

weighed on the economy, but an anticipated recovery to start this

year may keep the Indian central bank from lowering interest rates

just yet.


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Gross domestic product rose 6.1% year-to-year in the

October-December period. The fiscal third-quarter figure

was modestly lower than the 6.9% increase in the quarter

ended September, as manufacturing and mining output

remained weak, the government said Wednesday


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