2. BRICS, Country effect the Indian
Economy
Macroeconomics Indicators Economic Growth, Unemployment, Inflation
Economic Growth vs Environmental Damage and Resources Depletion
. Macro Economic Indicator
Standard Of Living In India
Circular Flow Of Income
Injections vs Withdrawals in EconomyGD
GDP Problems
Productivity Vs Production
International Trade Of India
Multilateral Organizations
Sustainable Development
Low Labor And Production Costs
Eventual Inclusion Of NICs And BRICS
4. Economic Growth vs Environmental Damage
and Resources Depletion
Economic Growth Perspective
Economic growth brings quantitative
changes in the economy and reflects
in the per capita income of the
country. This further improves the
facilities and opportunities provided to
the people of the country, resulting in
overall development of the nation.
Related articles: UPSC Calendar 2022.
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9%
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GdpmpGr GdpGrTrend GdpTndHpf
5. Macro Economic Indicator
Last Previous
Currency 82.73 82.59 23-Feb
Stock Market 61040 60432points 23-Feb
GDP Growth Rate 0.8 0percent 22-Sep
GDP Annual Growth Rate 6.3 13.5percent 22-Sep
Unemployment Rate 7.1 8.3percent 23-Jan
Inflation Rate 6.52 5.72percent 23-Jan
Interest Rate 6.5 6.25percent 23-Feb
Cash Reserve Ratio 4.5 4.5percent 23-Feb
Balance of Trade -23.76 -23.89USD Billion 22-Dec
Current Account -36400 -18200 USD Million 22-Sep
Current Account to GDP -1.2 0.9 percent of GDP 21-Dec
Government Debt to GDP 89.26 89.41 percent of GDP 21-Dec
Government Budget -6.9 -9.5 percent of GDP 21-Dec
Business Confidence 134 138 points 22-Dec
Manufacturing PMI 55.4 57.8 points 23-Jan
Services PMI 57.2 58.5 points 23-Jan
Consumer Confidence 83.5 80.6 points 22-Nov
Corporate Tax Rate 34.94 25.17 percent 22-Dec
Personal Income Tax Rate 42.74 42.74 percent 22-Dec
6. Standard Of Living In India
The standard of living in India varies from state to state. In 2021,
extreme poverty was fully eradicated to as low as 0.8%. and India is no
longer the nation with the largest population under poverty.
The standard of living in India shows large geographical disparity as well.
For example, on one hand most metropolitan cities and other urban and
suburban regions boast world-class medical establishments, luxurious
hotels, sports facilities and leisure activities similar to that of first world
developed nations, while there is significant poverty in rural areas of India,
where medical care tends to be very basic or unavailable because of lack
of doctors. Similarly, the very latest machinery may be used in most
construction projects, but some construction workers work without
mechanization in some projects, mostly in very rural parts
7. Circular Flow Of Income
The circular flow indicateas flow of national
income in an economy among various agents –
households, business people and the
government. For example, in a simple two sector
economy, the business entities employ laborers
who are from the household sector. These
household spends their income in the goods and
services produced by business entities. Hence
an income goes from business firms to
households in the form of wage payment
whereas a return income flow happens from the
households to business entities in the form of
payments to goods and services.
8. Injections vs Withdrawals in Economy
Under the Atmanirbhar Bharat economic package, the Government of India announced
Rs. 90 crore Liquidity Injection for Discoms. Power Finance Corporation and Rural
Electrification Corporation will infuse liquidity in the Discoms to the extent of Rs 90000
crores in two equal instalments. This amount will be used by Discoms to pay their dues
to Transmission and Generation companies. Further, central public sector enterprise
(CPSE) Gencos will give a rebate to Discoms on the condition that it is passed on to the
final consumers as a relief towards their fixed charges.
India's controversial withdrawal of high value banknotes late last year has had an
"adverse impact" on the economy, the government has admitted.
The country's Economic Survey, released on the eve of the national budget, said the
measures had slowed growth.
The dramatic move to scrap 500 ($7.60) and 1,000 rupee notes was intended to crack
down on corruption and so-called black money or illegal cash holdings.
But it also led to a cash shortage, hurting individuals and businesses.
The report forecast that India's economy would grow 6.5% in the year to March 2017,
down from 7.6% the previous financial year.
9. GDP=C+I+G+(x-m) also the equation for
aggregate demand (AD)
This is often written as C + I + G + (X-M), where C is personal
consumption expenditures, I is investment, G is government
purchases of goods and services, X is exports, and M is imports.
Together, this is all of Gross Domestic Product, or GDP.
10. GDP Problems
Slowdown in the manufacturing sector, external risks and
inflation were the primary reasons cited. The one exception there was
ICRA, which held on to its projection of 7.2 per cent growth in FY 23.
The UNCTAD report on India's GDP estimate for 2022-23 makes for
disturbing news as India's economic growth is expected to decline to a
shocking 5.7% this year from 8.2%
11. Productivity Vs Production
India Labour Productivity improved by 2.91 % YoY in Dec 2021,
compared with a growth of 1.41 % in the previous year See the table below
for more data.
12. Productivity Vs Production
India's industrial production jumped 7.1 percent from a year earlier in
November of 2022, the most in five months and easily beating market
expectations of a 2.5 percent increase. Manufacturing output grew 6.1
percent, the most since June and rebounding from a 5.6 percent decline in
October.
13. International Trade Of India
India's overall exports (Merchandise and Services combined) in
December 2022* are estimated to be USD 61.82 Billion, exhibiting a
negative growth of (-) 5.26 per cent over the same period last year.
14. Multilateral Organizations of India
Multilateral Institutions Division · WORLD BANK GROUP (IBRD, IDA,
IFC, MIGA, ICSID) · ASIAN DEVELOPMENT BANK (ADB) ·
INTERNATIONAL MONETARY FUND (IMF).
15. Sustainable Development of India
Sustainable development in India encompasses a variety of
development schemes in social, cleantech (clean energy, clean water
and sustainable agriculture) and human resources segments, having
caught the attention of both Central and State governments and also public
and private sectors.
16. Low Labor And Production Costs In India,
Demography, Abundance Of Natural Resources
India is the fourth-largest economy in the world, accounting for 4.6 percent
of the world’s gross domestic product. India is also on its way to becoming
the world’s most populous country; it is expected to surpass China within
the next 20 years. With its 1.2 billion inhabitants, India is home to about 17
percent of the world’s population.
India's labour participation rate is very low. While in most countries only
about 40 per cent of the population is out of the labour force, in India, 60
per cent of the population is n
India's major mineral resources include coal (4th largest reserves in the
world), iron ore, manganese ore (7th largest reserve in the world as in
2013), mica, bauxite (5th largest reserve in the world as in 2013), chromite,
natural gas, diamonds, limestone and thorium. either working nor willing
to work.
17. Eventual Inclusion Of NICs And BRICS
In India
India has been an active participant in this organisation from its
inception. Maintaining economic growth that benefits India's citizens
in terms of job creation, GDP growth, and poverty alleviation are in
the country's national interest.
