Slowdown in economic growth of India has given rise to moderate expectations as far as GDP figures for India is concerned. From GDP growth rate highs of 9.4 percent in 2006 to GDP growth rate of less than 8.4 percent in 2008, Indian economy has borne adverse effects of global economic slowdown. However, a World Bank report released in early January 2008, predicted GDP growth rate to hover around 8.5 percent mark in 2009.
Reasons for India's GDP growth rate slowdown
Interest rates have reached a 6-year high, and has reduced level of consumer spending, and also investments. A global economy, which is becoming increasingly complex, has affected India's chances for better export prospects. According to data released by India's statistics office, year-on-year GDP growth rate stood at around 8.8 percent for first three months of 2009.
Does GDP data indicate a severe slowdown for India's economy?
After release of statistics office data, former Finance Minister, P. Chidambaram, requested central bank policy makers not to lose focus on economic growth of India as they try to counter inflationary pressures, which incidentally has long breached 8 percent. However, these numbers cannot be taken indicative of a dramatic slowdown in Indian economy, since nation is experiencing above-average GDP growth.
Gainers and losers
Manufacturing sector growth has dropped down to about 5.8 percent in three months leading to March 31, 2008. 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.
GDP Statistics (2007 )
As per estimates published in CIA's World Factbook, the 2007 GDP figure stood at around $2.966 trillion. Official exchange rate GDP figure was nearly $1.099 trillion. Real growth rate was recored as 9 percent. GDP per capita was around $2,600. Agriculture accounted for 17.8 percent of the total GDP. Industry contributed nearly 30 percent to India's GDP. At 52.8 percent, services accounted for more than 52 percent of India's gross domestic product.
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