Plan expenditure is closely associated with economic growth. It focuses on investment in order to enhance productive capacity. Non-plan expenditure is mainly obligatory in nature.
Fiscal balance is the difference between a government’s revenues—without including borrowings—and expenditures. If expenditures exceed revenues, then there’s a deficit.
The CPI is more susceptible to changes in food prices than the WPI. Meanwhile, the WPI is more sensitive to fuel. It assigns a weight of 14.91% to fuel prices.
For developing or high-growth nations, higher inflation is considered normal—compared to developed nations. The economic growth rate for developing nations is quicker. The demand is higher.
Although volatility isn’t necessarily a problem, it makes it difficult for the government to make concrete decisions for industries. However, the government is determined to give the manufacturing sector a push.
In India, production changes are measured by the IIP. It’s released on a monthly basis. This is an important indicator for assessing the health of the industrials sector.
As a result of the slowdown in construction, steel and cement industries have seen capacity underutilization. Steel and cement consumption increased by just 0.6% and 3% in FY14.
After the economic slowdown hit, the industrials sector was resilient. It continued to contribute more than 28% to the country’s economy in fiscal year 2012.
According to data for fiscal year 2013, the financing, insurance, real estate, and business services segment had the largest share. It contributed over 19% to the overall GDP.
India’s agriculture exports, including marine exports, grew 5.1% in fiscal year 2014 to $37.3 billion—compared to the same period last year. Marine product exports alone increased by 44.8%.
Agriculture is usually considered the backbone of an economy. India has a large amount of agrarian land. It also has suitable weather conditions.
India’s economy started out as an agrarian economy. Agriculture and allied sectors contributed to 51.9% of the economic output in fiscal year 1951.
A country’s total value-added output is also known as the gross domestic product (or GDP). It’s commonly used to measure a country’s economic achievement.
According to IMF data, India is the tenth largest economy in the world. It’s gross domestic product (or GDP) was $1.876 trillion in fiscal year 2013–2014.
In India, the decision-making process isn’t fast. It’s affected by the current assembly’s constitution. Slow decisions hurt a nation’s image.
Since the first general elections in 1951, the nation elected a single political party—the Indian National Congress (or INC)—to power. However, the trend broke in 1977.
In India, the population is divided among 29 states and seven union territories. Its population is very diverse. India’s geography and weather are also diverse.
India has been an intriguing nation throughout its long history. Apart from a rich history and a mixture of cultures over the centuries, India has an economic story to tell.