Indian Economy Research Paper

RAISONI GROUP OF INSTITUTIONS

G H RAISONI COLLEGE OF ENGINEERING

National Conference on Business & Economics

Conference Theme : Financial Management

Topic : The Drivers of Indian Economy

Presented By

Shashwati Bhowmick

Sr. Faculty (Retail Management)

Footwear Design & Development Institute

Chhindwara (M.P)

Abstract

Economic growth and development is the key to the growth and development of the nation. There are various factors, attributes which drives the economic growth. This paper studied about roles played by drivers of economy. The result focuses on the need, importance , implementation and management of these drivers by the government to ensure sustained economic growth and development of India.

Introduction

Economy is

Investment

IV. Infrastructure

V. Policies

VI. Subsidies

VII. Reforms

IX. Foreign Exchange Rate

I. Growth

Growth is the most important driver of Indian economy. Growth is measured in terms of Gross Domestic Product (GDP). GDP measures the size of the economy and is used as an indicator of the economic health, as well as to gauge the standard of living of a country.

GDP is the monetary value of all the finished goods and services produced within a country's borders in a specific time period. It includes all the private and public consumption, government outlays, investments and exports, imports that occur in the country. GDP is usually calculated on an annual basis and expressed as a comparison to the previous quarter or year..

For example, if the year-on-year GDP is up 5%, this is thought to mean that the economy has grown by 5% over the last year.

The formula for calculating GDP is as follows :

GDP = C + G + I + NX where: "C" is equal to all private consumption, or consumer spending, in a nation's economy.

"G" is the sum of government spending.

"I" is the sum of all the country's businesses spending on capital.

"NX" is the nation's total net exports, calculated as total exports minus total imports. (NX = Exports -

goods that are sold in bulk and traded between organizations instead of consumers. Wholesale Price Index (WPI) represents the price of goods at a wholesale stage i.e. goods that are sold in bulk and traded between organizations instead of consumers. WPI is used as an important measure of inflation in India. Fiscal and monetary policy changes are greatly influenced by changes in WPI. WPI is an easy and convenient method to calculate inflation. Inflation rate is the difference between WPI calculated at the beginning and the end of a year. The percentage increase in WPI over a year gives the rate of inflation for that