GDP

 GDP is the standard measure of the size of

the economy. It is the total production of
goods and services within the country.
 The gross domestic product (GDP) or gross
domestic income (GDI) is a basic measure of
a country's overall economic output. It is the
market value of all final goods and services
made within the borders of a country in a
year.
THE BOOM PERIOD
 The golden period for the Indian economy
was considered to be in years 2006-2007

 All the major cities of the country

contributed in the growth

 Almost all the sectors participated in the

boom

 In this boom we saw very high GDP growth

rate which was up to 9.5%
FACTORS CONTRIBUTING TO INCREASE IN
THE GDP

 Increase in Consumption level of the

individuals.

 Demand for Real estate business in Metros

of the country

 Increase in Foreign Investment into India

 INCREASE IN FMCG AND ELECTRONIC
GOODS
 65 million mobile phones landed in Indian
market

 10 million television sets were purchased.

 6.34 million personal Computers and over a

million new cars

 Sales of industrial products was raised by

18%
 Food and retail sectors have also experienced a
tremendous growth in India for the year 2007-
08.

 Multinational companies have also set up their

business plant in the country.

 Even the share market saw the same trend of

foreign investments.

 Many big food retail chains have also set up

their outlets.
 After the liberalization era of the Indian
economy, the growth story of India GDP was
driven by the following sectors of Indian
industry
 Information Technology
 Information Technology Enabled Services
 Telecommunications
 Electronics and hardware
 Automobiles
 Pharmaceuticals and Biotechnology
 Consumer durables
 Retails
 Infrastructure
 Airlines
 Hospitality
 Oil and natural gas
GAINERS AND LOSERS IN 2009
 Manufacturing sector growth has dropped
down to about 5.8 percent
 Farm production has also been affected,
registering a figure of about 2.9 percent.
 Gainer was construction sector, which
experienced growth of nearly 12.6 percent.
Construction sector grew in strength due to
rapid rise in erection of new roads, airports,
and power plants
GAINERS AND LOSERS IN 2009
 India oil demand was not affected by the
economic crisis in 2009, and next year’s oil
usage is forecast to grow further.
 All sectors are seeking more energy and new
vehicle registrations are expected to
continue the fast growth of 2009. These
factors would push up oil demand by 15 per
cent, making it the fastest growing product
in terms percentage rise
RECESSION
 What causes it?

 An economy which grows over a period of time

tends to slow down the growth as a part of the
normal economic cycle. An economy typically
expands for 6-10 years and tends to go into a
recession for about six months to 2 years.
 RECESSION
 A recession normally takes place when
consumers lose confidence in the growth of
the economy and spend less
RECESSION AND ITS EFFECTS ON
INDIAN ECONOMY
 The Impacts in India were:

1. Reduced liquidity in the Indian economy

 2. Reduced industrial output
 3. Reduced job opportunities
 4. Stock Market was lingering at the
bottom
 5. Real estate market took a downfall
 6. Inflation increased
 7. GDP came down and the GPD forecast
for the next two quarters were only average.
 8.Change in consumer behaviors and
purchasing power took place.