TRENDS IN GDP OF INDIA

India's economy grew at an annual rate of 5.3 % in the 2012, much lower than expectations of 6.1 % . The GDP numbers mean that the countrys growth slowed for eight quarters through the three months ended March 2012. It is also the lowest GDP growth rate in 13 quarters; the last time India registered the same rate of growth was in the 2009 Indias growth rose 6.5 % in the fiscal year to the end of March 2012. This is the lowest growth rate since 2002-03 when it fell to 4 % in the wake of a global slowdown. It is also a sharp slowdown from the previous fiscals 8.4 %.

The farm sector, which is the single largest employer in the country, grew at 1.7 % against 7.5 % in the last fiscal. This is bad news as rural consumption drives big amount of growth for leading Indian companies.

A key drag on growth numbers were the industry and services sectors which came in lower than expected, at 1.9 % and 7.9 % against 7 % and 10.6 % in the year-ago period. The manufacturing sector contracted (-) 0.3 % from 7.3 % in the same period last fiscal.

Sectors

Share of GDP in 2010

Agriculture, Forestry & Fishing Industry Mining & Quarrying Manufacturing Electricity, Gas & Water Services Construction Hotels & Restaurants Transport & Communication Banking, Insurance & Real Estate

14.5 19.9 2.2 15.8 1.9 65.5 7.9 16.6 10.6 17.4

Community , social and personal 13.1 services

Gross Domestic Product

Source: Central Statistics Office.

100

Here in the beginning we can see that in the year 2007 the GDP growth rate was 2.3 which was increased to 4.6 in the 2008, which was a good sign for the Indian Economy. But in the year 2009 the GDP growth rate drastically dropped down to the 1, this was a great draw back and in the year 2010 the GDP growth rate reached to its pick of 6.1, which was a great achievement for the country. But again the growth rate dropped to 2.4 in the year 2011 n gradually started decreasing.