Review of the Indian Economy 2009-10

Indian economy grew by 8.4 per cent in the last quarter(Q4) of 2009-10, pushing up the overall growth to a better-than expected 7.4 per cent. The 7.4 percent growth is also an upward revision from the earlier estimate of 7.2 percent.

The gross domestic product (GDP) was Rs 44,64,081 crore (at 2004-05 prices), bettering the earlier government estimate of 7.2 per cent growth over the previous year's Rs 41,54,973 crore.

Central Statistical Organization(CSO) has revised all the previous three quarters. The first quarter GDP was revised downwards to 6 per cent against 6.1 per cent estimated provisionally. While the second quarter saw growth at 8.6 per cent against provisional estimates of 7.9 per cent, third quarter GDP rose by 6.5 per cent against 6 per cent.

Why there is a revised growth rates in the previous quarters?

Normally there will be no change in the quarterly figures, unless the annual figure firms up. This time it was done because, the base year was changed to 2004-05 from 1999-2000 earlier. The first two quarters Q1, Q2 of GDP were released on the basis of 1999-2000 base price, while the next two quarters Q3, Q4 were released on the basis of 2004-5 base price.

India’s gross domestic product (GDP) had expanded by 6.7 percent during 2008-09.

India’s Economic growth rates for the year 2008-09 and 2009-10:

	Industry	2008-09	2009-10
1.	Agriculture, Forestry and Fishing	1.6%	0.2%
2.	Mining and Quarrying	1.6%	10.6%
3.	Manufacturing	3.2%	10.8%
4.	Electricity, Gas and water supply	3.9%	6.5%
5.	Construction	5.9%	6.5%
6.	Trade, Transport and Telecom	7.6%	9.3%
7.	Finance, Insurance and Real Estate	10.1%	9.7%
8.	Community, social and personal services	13.9%	5.6%
9.	GDP at factor cost	6.7%	7.4%

Per Capita Income:

The per capita income at current prices during 2009-10 is estimated to attain a level of

Rs. 44,345 as compared to the Quick Estimates for the year 2008-09 of Rs. 40,141, showing a rise of 10.5 per cent.

The per capita net national income in real terms (at 2004-05 prices) during 2009-10 is

estimated to attain a level of Rs. 33,588 (as against Rs. 33,540 estimated on 8th February,2010), as compared to the Quick Estimates for the year 2008-09 of Rs. 31,821. The growth rate in per capita income is estimated at 5.6 per cent during 2009-10.

Inputs: CSO.