Indian Economy (BB301)

Course Instructor – Anshu Singh

Trends In National Income of India

1. GDP Growth rate of India at2004 – 05 (%)2005-06 2006-07 2007-08 2008-09 2009-10

9.5 9.7 9.2 6.7 7.2

2 . Growth in per capita income (Rs) at current price and at 2004-05 (constant price)

Current Price 2005-06 2006-07 2007-08 2008-09 2009-10 27,183 31,080 35,430 40,141 43,749Constant Price32,012 34,533 37,328 38,695 40,745 Note:2004 -05 is takes as the base year (for constant price)Source :Economic Survey 2009-10

3. Sector wise rate of growth at factor cost at 2004-2005 prices (per cent)

2005-06 2006-07 2007-08 2008-09 2009-10• Agriculture 5.2 3.7 4.7 1.6 -0.2• Mining 1.3 8.7 3.9 1.6 8.7• Manufacturing 9.6 14.9 10.3 3.2 8.9• Electricity, 6.6 10.0 8.5 3.9 8.2 Gas & Water Supply• Construction 12.4 10.6 10.0 5.9 6.5• Trade, Hotels 12.4 11.2 9.5 5.3 8.3 & Restaurants• Banks,Insurance12.8 14.5 13.2 10.1 9.9 and Real Estate• Community, 7.6 2.6 6.7 13.9 8.2 and Social ServicesSource :Economic Survey 2009-10

Trends for Interstate Variation in National Income and GDP

There is vast variation amongst the Indian states w.r.t per capita income and their contribution to national income. 4. CONTRIBUTION OF STATES IN INDIA’S NDP

High Income States % share in NDP

MAHARASHTRA 13.3 %

UTTAR PRADESH 8.0 %

ANDHRA PRADESH 7.7 %

WEST BENGAL 7.2 %

GUJARAT 6.8 %

CONTRIBUTION

MAHA-RASHTRAUTTAR PRADESHANDHRA PRADESHWEST BENGALGUJARAT

Low income states % share in NDP

JHARKHAND 1.6

ASSAM 1.7

CHATTISGARH 1.8

ORISSA 2.4

BIHAR 2.7

CONTRIBUTION

JHARKHAND

ASSAM

CHATTISGARH

ORISSA

BIHAR

Per capita income of different states

High income states Per capita income (Rs p.a)

Low income states Per capita income (Rs p .a)

GOA 1,05,582 BIHAR 11,135HARYANA 58,531 UTTAR PRADESH 16,060

MAHARASHTRA 47,051 MADHYA PRADESH 18,051

GUJARAT 45, 773 JHARKHAND 19,928

PUNJAB 44,923 ORISSA 23,403

• From the above it is clear that planning in India has not been successful in removing disparities amongst the states

• The disparities are also attributed to vast differences in areas and population of the states.

• Punjab and Haryana have grown on account of their agricultural prosperity

• Maharashtra, Gujarat and Goa have shown appreciable industrial growth