Indian GDP Shrinks to $1.7 Trillion in 2013-14

[RiazHaq]

Haq's Musings: Indian Economy Declines to $1.7 Trillion in 2013-14

Advance estimates by Indian Central Statistical Office (CSO) indicate that India's GDP for year 2013-14 is $1.7 trillion, down 9% from $1.87 trillion reported for the previous financial year. However, Indian economy has grown from Rs. 100.2 trillion in 2012-13 to Rs. 105.4 trillion in 2013-14 in terms of local currency.

CSO estimates India's economic growth rate in the current financial year at 4.9 per cent, a faster pace than in the previous year, mainly on an improved performance in the agriculture and allied sectors.

India's per capita income is estimated at Rs. 74,920 (US$ 1201) for the fiscal year ending on March 31, 2014, according to Indian media reports. It is up from Rs 68,757 in 2012-13 in Indian rupee terms, but down based on current USD exchange rates.

While India's growth has slowed a lot in recent years, the recent decline of Indian economy in USD terms is the result of a sharp drop in the value of Indian currency against the US dollar. The Indian rupee has plummeted from 47.80 in 2012 to 54.30 in 2013 to 63.30 to a US dollar now.



The free fall of Indian rupee has dashed the hopes of many in India, including former finance minister and current President Pranab Mukherjee, who were boasting about a $2 trillion economy as early as 2012.

India is now among "The Fragile Five", a phrase first used by Morgan Stanley report last August amid an emerging-market rout caused by investors pulling out their money on speculation the Federal Reserve would soon reduce its bond purchases. That month, the Indonesian rupiah, South African rand and Brazilian real fell to the lowest levels in more than four years and the Turkish lira, like the Indian rupee, was at its weakest rate ever.

The continuing weakness of the Indian rupee and the slow growth of Indian economy are likely to help the electoral fortunes of the Indian Opposition led by the Hindu Nationalist BJP leader Narendra Modi.

Haq's Musings: Indian Economy Declines to $1.7 Trillion in 2013-14

 

[Banned Member]

mods please merge the threads

 

[Infinity]

Hum to doob rahe hai sanaam....................par hamme fikar hai app ki................

 

[neehar]

indian foreign reserves are only about $300 billion dollars.so any transactions with the out side world are done only with this money.rest of the money circulates in india.the article is stating the apparent loss due to the depreciation of rupee.so in dollar terms gdp was reduced.but in real terms it has actually increased.further indian CAD is being reduced to 1.2% of gdp and moving towards surplus.and so with a lower currency and a surplus account.which means we will be exporting more than we import.and we will get more money on our exports than going out through imports owing to a lesser rupee..
India's current account deficit narrows sharply to 1.2% of GDP | Business Line

 

[Gautam]

Already posted. Looking forward to have fun. AGAIN.

 

[farhan_9909]

And a per capita of around 1350$?

 

[Lil Mathew]

Haq's Musings: Indian Economy Declines to $1.7 Trillion in 2013-14

Advance estimates by Indian Central Statistical Office (CSO) indicate that India's GDP for year 2013-14 is $1.7 trillion, down 9% from $1.87 trillion reported for the previous financial year. However, Indian economy has grown from Rs. 100.2 trillion in 2012-13 to Rs. 105.4 trillion in 2013-14 in terms of local currency.

CSO estimates India's economic growth rate in the current financial year at 4.9 per cent, a faster pace than in the previous year, mainly on an improved performance in the agriculture and allied sectors.

India's per capita income is estimated at Rs. 74,920 (US$ 1201) for the fiscal year ending on March 31, 2014, according to Indian media reports. It is up from Rs 68,757 in 2012-13 in Indian rupee terms, but down based on current USD exchange rates.

While India's growth has slowed a lot in recent years, the recent decline of Indian economy in USD terms is the result of a sharp drop in the value of Indian currency against the US dollar. The Indian rupee has plummeted from 47.80 in 2012 to 54.30 in 2013 to 63.30 to a US dollar now.



The free fall of Indian rupee has dashed the hopes of many in India, including former finance minister and current President Pranab Mukherjee, who were boasting about a $2 trillion economy as early as 2012.

India is now among "The Fragile Five", a phrase first used by Morgan Stanley report last August amid an emerging-market rout caused by investors pulling out their money on speculation the Federal Reserve would soon reduce its bond purchases. That month, the Indonesian rupiah, South African rand and Brazilian real fell to the lowest levels in more than four years and the Turkish lira, like the Indian rupee, was at its weakest rate ever.

The continuing weakness of the Indian rupee and the slow growth of Indian economy are likely to help the electoral fortunes of the Indian Opposition led by the Hindu Nationalist BJP leader Narendra Modi.

Haq's Musings: Indian Economy Declines to $1.7 Trillion in 2013-14

Indian economy actually grown but shrinks in nominal terms.. This is because of 11% depreciation of Indian Rupees against US dollars..
By the by, last year Pakistani rupees also depreciated by 9%.. So Pakistan economy also shrinked.. What is the new figure.. Why you not posting that also?? It's gud to see that you are more concerned about Indian economy than your economy.. Keep it up bro..

 

[Chinese-Dragon]

The Indian economy has fallen back to 2008 levels.

Simply put, the Rupee has been falling faster than India has been growing. By quite a lot, hence the constant decrease of India's nominal GDP.

Which wouldn't be so bad if India was not so dependent on imports.

And the lower buying power of the Rupee means imports are more expensive, which is contributing to India's double-digit consumer inflation.

And more expensive imports leads to lower levels of consumer spending, leading to a lower overall growth rate.

It is a vicious cycle.

 

[kbd-raaf]

The Indian economy has fallen back to 2008 levels.

Simply put, the Rupee has been falling faster than India has been growing. By quite a lot, hence the constant decrease of India's nominal GDP.

Which wouldn't be so bad if India was not so dependent on imports.

And the lower buying power of the Rupee means imports are more expensive, which is contributing to India's double-digit consumer inflation.

And more expensive imports leads to lower levels of consumer spending, leading to a lower overall growth rate.

It is a vicious cycle.

I'm not sure how true this is, RiazHaq is known to be a master spinner of facts. But your post is pretty much spot on

 

[favabeans]

Slow and steady wins the race... ROFLMAO!

 

[RiazHaq]

What if Modi becomes prime minister?

Myth 1: Modi is a development man
This cannot be further from the truth. Gujarat has always been a developed state from the time it was carved out of Bombay state in 1960. Economic indicators clearly show that Gujarat under Modi has been ‘worse off’ than under previous governments (even the BJP one before him).
The fact is that foreign direct investment in Gujarat has taken a severe beating in the last few years and even local investment is far below what is being flaunted. Regarding social indicators, Gujarat fares poorly.
A UNICEF report published in 2013 says social development in the state has not kept pace with economic development; almost every second child in Gujarat under five years old is undernourished, while three quarters are anemic.
Myth 2: The Gujarat carnage is a thing of the past and Modi has been given a “clean chit”
Many believe the courts exonerated Modi of involvement in the Gujarat anti-Muslim riots in 2002. The hard facts are, however, very different. First of all, no court has given Modi a clean chit.
True, there is a Special Investigation Team (SIT) report that says there is not enough evidence against Modi.
But this has been challenged, with the petitioner Zakhia Jafri being given leave by Ahmadabad magistrates to question the merits of the SIT report in a higher court.
Raju Ramchandran, appointed by the Supreme Court as amicus curiae for many of the Gujarat riot cases, asserts that there is enough evidence to prosecute Modi on several counts with regard to the violence in 2002, in which more than 1,000 people died.
Modi has neither shown any remorse nor taken responsibility for the killing of innocent people under his watch. The least a chief minister could have been expected to do was to enforce law and order and protect the life and property of every citizen in his state. That he ignored this responsibility, there is no doubt among many. That he has denigrated minorities has been documented by the print and the electronic media.
Myth 3: Modi has “made up” with the minorities
There are some claiming to be representatives of minority Christian and Muslim communities who sing Modi’s praises.
A careful analysis indicates these people have vested interests, especially in business, and are not really interested in their community or what is happening to minorities in the country.
In 2003 Modi introduced an anti-conversion law and established rules to govern the implementation of this law in 2008.
It is perhaps one of the most draconian laws in the history of democratic India. It forbids a citizen from converting to another faith unless she/he has permission from civil authorities.
Even now, police and intelligence officers constantly visit Christian institutions and Christians in general, making all kinds of inquiries and demanding to check baptism registers and other records.
Myth 4: Modi is not corrupt
In May 2012, anti-corruption campaigners Anna Hazare and Arvind Kejriwal visited Gujarat. They came away declaring it the most corrupt state in the country. Why they have not continued to highlight corruption in Gujarat is anyone’s guess.
Several years ago, the Tata Motor Company was allowed to establish a plant to build the “world’s cheapest car” in Gujarat with surprising ease, flouting every rule in the book and even the state’s industrial policy.

What if Modi becomes Indian premier? ucanews.com

 

[Gandhi G in da house]

The Indian economy has fallen back to 2008 levels.

.

India's GDP was 1.7 trillion dollars in 2011 or 2010 so no 2008 is incorrect.

Secondly this news about India's GDP being 1.7 trillion , I haven't heard it from any authoritative source like a World Bank or IMF. The last numbers shown by WB and IMF ar 1.85 Trillion dollars for 2012.

Riaz Haq can be swallowed with a pinch of salt.

 

[Grevion]

Nahh....i think the GDP has grown but the overall value was less in 2013 due to the lower consumer spending's and depreciation in the rupee. Indian economic growth was not negative in 2013 so the economy cannot decrease in one year.

 

[Chinese-Dragon]

India's GDP was 1.7 trillion dollars in 2011 or 2010 so no 2008 is incorrect.

Secondly this news about India's GDP being 1.7 trillion , I haven't heard it from any authoritative source like a World Bank or IMF. The last numbers shown by WB and IMF ar 1.85 Trillion dollars for 2012.

Riaz Haq can be swallowed with a pinch of salt.

It's from the PTI - Press trust of India.

Indian economy's worth expected to rise to $1.7 trn - Business Today

And the Rupee has fallen a lot, so it's not far fetched either.

 

[favabeans]

India's GDP was 1.7 trillion dollars in 2011 or 2010 so no 2008 is incorrect.

Secondly this news about India's GDP being 1.7 trillion , I haven't heard it from any authoritative source like a World Bank or IMF. The last numbers shown by WB and IMF ar 1.85 Trillion dollars for 2012.

Riaz Haq can be swallowed with a pinch of salt.

The India Rupee was in the low to mid-50s against the Dollar back in 2012. As of now, it's valued at 62.31 to one Dollar. Last year, the Rupee fell as low as 68+. The IMF and WB will take the average value of the rupee in the year 2013 and compute Dollar-denominated GDP base on that.

In other words, not good, not good at all.

But, as they used to say, 'slow and steady wins the race', provided that India is not racing in the wrong direction.

Slow and steady as she goes... Chuckle.