Some of the most important salient features of the Indian economy – this blog mostly deals with the information from the yearly economic survey of India. Hope the information here is useful and up-to-date.
General Overview
GDP at factor cost – at current prices – 37 lakh crores (14.4 percent growth – 13.8)
GDP at factor cost – at 1999-2000 prices – 28.44 lakh crores (9.2 percent growth – 9.0)
GDP at market prices – at current prices – 41 lakh crores (15 percent growth – 14.1)
GNP at factor cost – at current prices – 36 lakh crores (14.5 and 13.8)
GNP at factor cost – at 1999-2000 prices – 28.22 lakh crores (9.4 and 9.0)
Tax-GDP ratio – 11.2 percent increase (10.3 in the previous year)
Food grain production – 209.2 million tonnes – 0.3 percent increase
Cotton production – 21 million bales – 13.5 percent increase
production of wheat and pulses increased by 4.5 and 8.2 percent
Sugarcane – 270 million tonnes – 16.8 percent increase
coarse grains and oilseeds are having low production this year than the previous year
Production is expected to improve in plantation crops (coffee, tea and rubber); livestock and poultry products; horticulture products; and dairy and fisheries
Pulses were brought within the ambit of Technology Mission on Oilseeds in 1990 andthe centrally sponsored scheme of Integrated Scheme of Oilseeds, Pulses, Oilpalm and Maize (ISPPOM) is being implemented in major pulses-growing States with effect from April 2004
Directorate of Economics and Statistics, Department of Agriculture and Cooperation gives the food production estimates.
Index of industrial production – IIP- 239 – 10.8 percent increase
electricity, coal, steel, crude oil,petroleum refinery products, and cement, with a weight of 27 per cent in IIP
Electricity generated – 493.1 Billion KWh – 7.5 percent increase
Whole sale price index- WPI – 209.2 – 6.7 percent increase
Consumer price index for industrial workers – CPI-IW – 588 – 6.9 percent increase
Money supply – Broad money – M3 – 3 lakh crores – 21.1 percent increase
Reserve Money – M0 –
Money Multiplier – M3/M0 – 4.79 percent increase
imports – 1.31 million dollars (5.98 lakh crores ) – 40.6 percent increase
exports – .89 million dollars (4.08 lakh crores) – 40.6 percent increase
Foreign currency assets – 1.72 million dollars (7.08 lakh crores) – 29.7 percent increase
Forex reserver – 185.1 Billion dollars
Exchange rate – 45.48 – (-2.7 increase)
Repo rate – 7.5
Reverse Repo rate – 6.0
CRR – 6.0
Bank Rate is 6.0 percent
Growth in
Agri – 2.7 (2006-2007 AE) 6.0 (2005-2006 QE)
Industry – 10.0 and 9.6 (Manufacturing 11.3 and 9.1, Mining 4.5 and 3.6, elec, gas and water 7.7 and .3, Construction 9.4 and 14.2)
Services – 11.2 and 9.8
The revival in gross domestic capital formation (GDCF) that commenced in 2002-03 has been
followed by a sharp rise in the rate of investment in the economy for four consecutive years
Gross Domestic Savings – 32.4 percent increase
Gross Domestic Capital Formation or Gross Domestic Investment – 33.8 percent increase
Gross Fixed capital Formation – 28.1 percent increase
State Trading Corporation, the parastatal
National Agricultural Cooperative Marketing Federation (NAFED) purchased urad and moong overseas
Current account deficit mainly due to the high prices of oil.
The UN World Tourism Organisation, in January 2007, has noted the ‘emergence’ of South Asia as a tourist destination, with remarkable growth of 10 per cent in tourist arrivals in 2006
external assistance and external commercial borrowing (ECBs) — two major debt-creating flows
India with a market capitalization of 91.5 per cent of GDP on January 12, 2007 compared favourably not only with emerging market economies but also with Japan (96 per cent) and South Korea (94.1 per cent).
The notification of the Fiscal Responsibility and Budget Management Act (FRBMA) 2003, with effect from July 5, 2004
private final consumption expenditure (PFCE) – is declining to 58.7 percent of GDP but the Government final consumption expenditure (GFCE) increased to 11.5 percent of GDP
demographic dividend (from a growing proportion of the population in the working age General Review 15 group)
National Council of Applied Economic Research estimates tourism’s contribution towards GDP
(both direct and indirect) in India at only 5.90 per cent
the setting up of a US $ 5 billion fund to finance Indian infrastructure on February 15, 2007 by four major financial institutions (Citigroup, Blackstone,Infrastructure Development and Finance
Corporation and India Infrastructure Finance Company)
The programme of linking self-help groups (SHG) of the rural poor with the banking system
(SHG-Bank linkage), to strengthen the credit delivery in rural areas was launched in 1992
through NABARD as a pilot project and mainstreamed in 1996 (Similar to PMRY)
Public Finance:
All statistics by the Controller General of Accounts, Department of Expenditure, Ministry of Finance
2006-07(BE) 2.1(Revenue deficit) 0.2(primary deficit) 3.8 (Fiscal deficit) 57.0 (revenue deficit as a percentage of fiscal deficit) as percentage of GDP
Revenue reciepts = tax and non tax revenue = 3.27 l + 76000 = 4.03 lakh crores
revenue expediture = interest payments + subsidies + defence expenditure = 4.88 lakh crores
revenue deficit = revenue expenditure – revenue recieps = 84 727 crores
capital reciepts = recovery of loans + disinvenstment of PSUs + Borrowings and other liabilities = 1.60 lakh crores
capital expenditure = 75000 crores
total expenditure = capital expenditure + revenue expenditure = 5.63 lakh crores
Also, total expenditure = plan expenditure + non plan expenditure = 1.7 +3.9 = 5.6 lakh crores
Fiscal deficit = total expenditure – revenue reciepts – (capital reciepts – borrowings) = 1.48 lakh crores
primary deficit = fiscal deficit – interest payments (of the revenue expenditure) = 8600 crores
Also, primary deficit = primary deficit consumption + primary deficit investment
Direct taxes 5.1 percent of the GDP and 47.6 percent of the total tax revenue
(personal tax + income tax )
Indirect taxes – 52.1 percent of the total tax revenue and 5.6 percent of the GDP (customs duty + excise duty + service tax)
total tax revenue is 10.8 percent of the GDP
Service tax – increased from 3 to 99 started in 1994 service tax rate was 5 percent at the beginning in 1994 and now it has increased to 12 percent
The Constitution requires revenue and capital expenditures to be shown separately in the budget. Article 112 (2) The same provision is repeated under Article 202 under the State Section
Total outstanding liabilities = internal liabilities + external debt – 60.3 percent of the GDP
net liabilities = total outstanding liabilities – amount due to pak on account of share of pre-partition debt
Traditionally, India has followed a cash-based system for accounting and financial reportingIn July 2004, Office of the Comptroller and Auditor General of India had commissioned a study on ConceptualFramework of Government Accounting System in India under Shri D. N. Ghosh Government Accounting StandardsAdvisory Board (GASAB) in the office of the Comptroller and Auditor General of India and the Twelfth Finance commission also recommended the Accrual Accounting system
Accelerated Irrigation Benefit Programme (AIBP) and Sarva Siksha Abhiyan (SSA) – performance audit was done on these by the CAG of India
revenue expenditure = plan + non-plan expenditure = (revenue account + capital account ) + (revenue account (interest payments+major subsidies + pensions) + capital account)
golden quadrilateral under National
Rail Vikas Yojana
New Pension System (NPS) was operationalised from January 1,2004
An interim regulator, the Pension Fund Regulatory and Development Authority (PFRDA) from jan 1 2004
Monetary and banking Developments:the velocity of money (ratio of nominal GDP to the average M3 stock during the year)net foreign exchange assets (NFA) of the RBI continuedto be the main source of M0
the KCC Scheme introduced in August 1998 now has 642 lakh credit cards under the scheme
The Rural Infrastructure Development Fund (RIDF) was announced by Government in 1995-96 to boost public sector investment in agriculture and rural infrastructure. Now RIFD XII is running for the year 2006-07
Capital and Commodities Market:
According to the number of transactions,
NSE continued to occupy the third position among the world’s biggest exchanges in 2006, as in the previous three years. BSE occupied the sixth position in 2006, slipping one position from 2005 (Table 4.5). In terms of listed companies, the BSE ranks first in the world.
NSADAQ and NYSE are the top two stock markets in the world according to the number of transactions
As on January 12, 2007, market capitalisation (NSE) at US$834 billion was 91.5 per cent of GDP
Market capitalisation in terms of GDP indicates the relative size of the capital market, besides investor confidence and discounted future earnings of the corporate 74 Economic Survey 2006-2007 sector
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