India GDP 2010-2011

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For those who predicted otherwise India is one of the fastest growing countries today. Its population which was once the most talked about subject has actually turned the tables for India. With a host of economic advantages, a well educated and young population India is all set to rule and give the superpowers a run for their money.

As far as the economic scenario is concerned India is surely on a roll. The last twenty years have really proved extremely beneficial for India. The country now stands only after Brazil as far as GDP ranking is concerned. India has replaced Russia and grabbed the second position in the global forefront mostly due to the strategic planning and huge amount of expenditures on education in India. India GDP 2011 is expected to cross the 8 percent mark and move to 9 percent GDP growth rate.

India is the second largest populated country in the world sheltering over one billion people. Although India has not had a striking 10 percent year over year economic growth as its neighbor China it has still managed to grow at a nominal rate. India's GDP growth has been slow but careful.

According to trade pundits India will take the third position as Far as GDP growth in concerned by 2020 replacing Germany, the UK, and Japan. Only United States and China will be ahead of it.

The country which was termed underdeveloped till a few decades back has shown the world its great potential. Moving along slowly with accurately measured footsteps India is surely treading on. The policy-makers of the country realized at the right time their age old ideas and beliefs and started moving towards the direction of growth. Over the years numerous steps have been taken to rationalize taxes and reduce red-tapism in the country.

The recent all round growth and development has made people across the globe realize the importance of the country as a well read and powerful economy. With its galloping GDP figures India forced other powerful economies to sit up and take notice of it. The country today, despite all odds is showing signs of health, wealth and vigor.

The one striking feature about the remarkable economic growth rate is its internal resources. The country is blessed in terms of natural resources, skilled labor and a well educated young population. Business in India does not thrive by handsome made by charitable institutions.

India is attracting millions of foreign investors that think India to be a very sound and prospective market. Over the last few decades most of the global multinational firms have opened their regional offices in the various metros of the country. Places like Delhi, Mumbai, Chennai, Bangalore and Hyderabad have experienced superb growth in the last 20 years.

The economic scenario in India has been pretty stable over the last 5 years. Despite the economic downturn two years back the Indian economy has managed to remain stable. The India GDP recorded for the period December 2010 stood at 8.20 percent. However according to the (CMIE) or Centre for Monitoring Indian Economy India will record a GDP of 9.2 per cent in the year 2011. India's GDP growth 2010 - 2011 has not been phenomenal but is certainly encouraging.

India GDP growth 2010 - 2011 sector wise

All the important sectors in India have shown positive signs of growth from the last five years. Let us have a close look at the sector wise growth rate in India from the period 2010 to 2011.

Indian exports increased by 26.8 per cent (y-o-y) and touched US$ 18.9 billion in November 2010. This rapid growth in the exports from India urged the Indian Government to conclude that the total shipments in 2010-11 might go up to US$ 215 billion. For the period April 2010 to November 2010 exports in the country grew by 26.7 per cent to US$ 140.3 billion. On the other hand imports increased to US$ 222 billion.

India also made a substantial profit from Foreign Exchange Earnings. The number of Foreign Tourist that visited the country from January- November 2010 was about 4.93 million as compared to 4.46 million foreign tourists during the same period in 2009, registering a growth rate of 10.4 per cent. The (FEE) or Foreign Exchange Earnings went up to a whopping US$ 12.88 billion during the period January-November 2010 as compared to US$ 10.67 billion during January-November 2009. The growth rate registered by the Ministry of Tourism was 20.7 per cent.

The logistics industry in India is also witnessing enormous activity. According to a study conducted by the shipping ministry in India, some of the important ports in the country handled about 44.4 million tones of freight in September 2010. There was a growth rate of 4.5 per cent as compared to the growth rate in September 2009 which stood at 5.9 per cent. According to Frost&Sullivan, the traffic in these ports is going to rise from 814.1 (MT) to 1,373.1 MT from the period 2010 to 2015 at a steady CAGR of 11 per cent

The investment industry in India also showed positive signs of growth in 2010. According to the reports released by the Association of Mutual Funds in India the total assets that the mutual fund industry managed accounted at US$ 160.44 billion in September 2010.

According to the reports released by the Telecom Regulatory Authority of India (TRAI) the total number of telephone users in India reached 742.12 million in October 31, 2010. This took the total telephone using population in the country to 62.51 percent. The number of wireless subscribers also increased to 706.69 million.

According to the NASSCOM's Strategic Review 2010, the IT-BPO sector in India remained the fastest developing industry churning out total revenue of USD 73.1 billion in 2010. The Information Technology and software services generated revenues of USD 63.7 billion.

The vehicles industry in India also witnessed a substantial growth in 2010. The production of vehicles in India grew by 32.4 per cent in August 2010, as against the corresponding period in 2009. Ranging from the commercial vehicles to two-wheelers to the Passenger vehicles segment all registered striking growth rates of 49 per cent, 31 per cent and 32 per cent.

According to the reports of the Gem and Jewellery Export Promotion Council, the shipment of jewelry from India was worth US$ 23.57 billion during the April-November 2010, recording an increase of 38.25 per cent as compared to that of US$ 17.05 billion as against the same period in 2009.

Even the aviation industry registered a steady growth in 2010 as compared to the previous year. As per the Ministry of Civil Aviation, the total number of passengers carried by the domestic airlines during January-November, 2010 were 46.81 million as compared to 39.35 million in the previous year, registering a profit of 18.9 per cent.

India has become a hot favorite as far as foreign investment is concerned. As per reports published by Ernst & Young (E&Y), a world renowned consultancy firm, India received more than US$ 7 billion from foreign sources to invest in private equity.

Table showing the GDP growth rate from 2008 to 2010

Year March June September December
2008 8.50 7.80 7.50 6.10
2009 5.80 6.00 8.60 6.50
2010 8.60 8.90 8.90 8.20

Sector wise GDP growth rate in India for 2010- 2011

Sector GDP Growth Rate
Manufacturing 9.8 percent
Farming 4.4 percent
Construction 8.8 percent
Mining 8 percent
Service 9.8 percent

Last Updated on 04th July 2011