The economic performance of one country measured by some macroeconomics phenomenon such as gross domestic product, rate of growth, national income, unemployment rate, inflation and price levels. The change of this phenomenon indicates the economic performance of a specific country. We will select Indian economy to conduct our analysis on economics performance. India is the world’s second most populous and tenth largest economy. As India is one of the largest economies and populous country, here has a big portion of world’s GDP and huge macroeconomics challenges.
Production Output Performance Analysis:
GDP analysis is one of the good ways to measure a country’s economic performance. We select Indian’s economy to conduct our analysis. The following table provider approximate figures regarding various facts of India’s gross domestic product (GDP).
GDP (in current prices) in Real GDP Growth GDP (in terms of
billion US dollars
PPP) in billion US
In India, GDP growth rate measures the change in the seasonally adjusted value of the goods and services produced by the Indian economy during the decade. By observing the last ten year’s real GDP growth rate, it’ overall GDP growth rate is approximately
8.78%. Its highest GDP growth rate was 10.60% in year 2010 and 6.20% considered as lowest in year 2008 during the last 10 years. The present economy of India is moving towards several crises such as reducing GDP growth rate, continuous devaluation of national currency, and effective rates of inflation.
The most important and the rapid growing sector of Indian economy are services. India’s 60% of GDP share comes from service sector like trade, transport & communication, hotel, insurance, real estate, social and personal service. Agriculture, Manufacturing, forestry & fishing, and other sub related sector constitute remaining 40% of the output.
The Indian economy growth is prominent to accelerate to 7.4% in the current fiscal compared with 6.9% last year based on calculating gross domestic product (GDP) in a new way. At this stage it is estimated to be on par with China which is the fastest growing economy in the world. The economy is prominent to be bigger than $2 trillion; India’s GDP is estimated to be $2.1 trillion in 2014-15.
Price Level Analysis:
Price level is highly reflected by the Inflation rate. The table below provides an indication of the inflation rates of India in the last few years:
India’s inflation rate has grown more than expectations from year 2009. This high rate of inflation existed till 2013. The average inflation rate was 10.4%. In this situation price level is so high of essential commodities. During this time increase in fuel and food prices help to raise the living cost of Indian people. Over the last decade, India faced high inflation rate approximately 12.0% in 2010 and 3.8 was the low rate in 2003. At present India facing high inflation rate courses of devolution of domestic currency raises the price of goods and services. In the previous year’s Indian economy faced low economic growth rate due to lack of success of the initiatives for economic liberalization. Government of India has taken some important measures to control the high rate of inflation. Among this measures the reduction of import duty on essential goods, reduction of import prices on rice, reduction...
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