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Indian
Volume: 1
1999 - 2014

1
Introduction
Macroeconomics which is a branch of economics dealing with the
performance, structure, behaviour, and decision-making of an economy as a
whole, rather than individual markets, is considered to be tough subject for
students who are preparing for competitive exams. This is the
1st Volume of DID YOU KNOW: Indian Macroeconomics Made Easy which
will uncover some interesting and not so known facts about Indian
Macroeconomics which took Indian economy to what it is today. This edition
specifically unveils the facts from 1999-2013.
This edition will help you analyse the macroeconomics problems faced in
India and compare the worst period of Indian economics with the golden
period and will also help students who are preparing for competitive exams
like UPSC, Bank, Defence or other government jobs.
The stats used in this edition were verified from the latest government
reports and we have tried to maintain the accuracy of facts. However, feel
free to suggest changes if any discrepancy in facts is observed.
Volume: 1
1999-00 to 2013-14

2
Index
S.No.

Content

Slide No.

1

Consumption demand

5

3

Public Consumption

6

4

Gross Fixed Capital Formation

7

5

Capital Formation

8

6

Gross Domestic Savings

9

7

Exports

10

8

Trade Deficit

11

9

Current Account Deficit

12

10

1999-00 to 2013-14

4

2

Volume: 1

Real Gross Domestic Product

Forex Exchange

13

3
Volume: 1
1999-00 to 2013-14

3.99 %
India's Real GDP Growth
Rates were recorded lowest
during 2002-2003

9.57 %
India's Real GDP Growth
Rates were recorded highest
during 2006-2007

Real Gross Domestic Product measures the value of all the goods and services produced expressed in the prices
of some base year.
4
Source: planningcommission.com
Volume: 1
1999-00 to 2013-14

9.3 %

2.3 %
India's
Consumption
by
Demand (%YoY) Growth Rates
were recorded lowest during
2002-2003

India's
Consumption
by
Demand (%YoY) Growth Rates
were recorded highest during
2007-2008

Consumption demand represents the demand for goods and services by individuals and households in the economy.
5
Source: planningcommission.com
Volume: 1
1999-00 to 2013-14

-0.4 %
India's Public Consumption by
Demand (%YoY) Growth Rates
were recorded lowest during
2002-2003

13.9 %
India's Public Consumption by
Demand (%YoY) Growth Rates
were recorded highest during
2009-2010

Public Consumption is the value of goods and services individuals receive through the public sector.
6
Source: planningcommission.com
Volume: 1
1999-00 to 2013-14

0.0 %
India's GFCF by Demand
(%YoY) Growth Rates were
recorded lowest during 20002001

20.7 %
India's GFCF by Demand
(%YoY) Growth Rates were
recorded highest during 20042005

Gross Fixed Capital Formation is measured by the total value of a producer's acquisitions, less disposals of fixed
assets plus certain additions to the value of non-produced assets realised by the productive activity of institutional
units.
Source: planningcommission.com

7
Volume: 1
1999-00 to 2013-14

38.11 %

22.3 %
India's Capital Formation
consumption (% of GDP)
were recorded lowest during
2001-2002

India's Capital Formation
consumption (% of GDP)
were recorded highest during
2007-2008

Capital Formation describes net capital accumulation during an accounting period.
8
Source: planningcommission.com
Volume: 1
1999-00 to 2013-14

36.82 %

22.9 %
India's GDS (% of GDP) were
recorded lowest during 20012002

India's GDS (% of GDP) were
recorded highest during
2007-2008

Gross Domestic Savings are calculated as GDP less final consumption expenditure (total consumption).
9
Source: planningcommission.com
Volume: 1
1999-00 to 2013-14

-1.6 % at
44.7 Bn US $
India's Exports (US $ bn)
recorded lowest drop during
2001-2002

40.4 % at
256.2 Bn US $
India's Exports (US $ bn)
recorded highest growth
during 2010-2011

Exports is a function of international trade whereby goods produced in one country are shipped to another country
for future sale or trade.
10
Source: planningcommission.com
Volume: 1
1999-00 to 2013-14

-10.7 %
India's Trade Deficit (US $ bn)
was recorded highest during
2002-2003

-195.7 %
India's Trade Deficit (US $ bn)
was recorded lowest during
2012-2013

Trade Deficit is the amount by which the cost of a country's imports exceeds the value of its exports.
11
Source: planningcommission.com
Volume: 1
.

1999-00 to 2013-14

14.1 %
India's
Current
Account
Deficit (US $ bn)
was
recorded highest during
2003-2004

-88.2 %
India's Trade Deficit (US $ bn)
was recorded lowest during
2012-2013

Current Account Deficit is the sum of the balance of trade (i.e., net revenue on exports minus payments for imports),
factor income (earnings on foreign investments minus payments made to foreign investors) and cash transfers
12
Source: planningcommission.com
Volume: 1
1999-00 to 2013-14

35.1

299.1

India's Foreign Exchange (US
$ bn) was recorded lowest
during 1999-2000

India's Trade Deficit (US $ bn)
was recorded highest during
2007-2008

Forex Exchange is a global decentralized market for the trading of currencies.
13
Source: planningcommission.com
Indian

You can download and share the 1st edition of Did You Know: IMME

Edition 2.0 coming soon!

14

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Indian Macroeconomics

  • 2. Introduction Macroeconomics which is a branch of economics dealing with the performance, structure, behaviour, and decision-making of an economy as a whole, rather than individual markets, is considered to be tough subject for students who are preparing for competitive exams. This is the 1st Volume of DID YOU KNOW: Indian Macroeconomics Made Easy which will uncover some interesting and not so known facts about Indian Macroeconomics which took Indian economy to what it is today. This edition specifically unveils the facts from 1999-2013. This edition will help you analyse the macroeconomics problems faced in India and compare the worst period of Indian economics with the golden period and will also help students who are preparing for competitive exams like UPSC, Bank, Defence or other government jobs. The stats used in this edition were verified from the latest government reports and we have tried to maintain the accuracy of facts. However, feel free to suggest changes if any discrepancy in facts is observed. Volume: 1 1999-00 to 2013-14 2
  • 3. Index S.No. Content Slide No. 1 Consumption demand 5 3 Public Consumption 6 4 Gross Fixed Capital Formation 7 5 Capital Formation 8 6 Gross Domestic Savings 9 7 Exports 10 8 Trade Deficit 11 9 Current Account Deficit 12 10 1999-00 to 2013-14 4 2 Volume: 1 Real Gross Domestic Product Forex Exchange 13 3
  • 4. Volume: 1 1999-00 to 2013-14 3.99 % India's Real GDP Growth Rates were recorded lowest during 2002-2003 9.57 % India's Real GDP Growth Rates were recorded highest during 2006-2007 Real Gross Domestic Product measures the value of all the goods and services produced expressed in the prices of some base year. 4 Source: planningcommission.com
  • 5. Volume: 1 1999-00 to 2013-14 9.3 % 2.3 % India's Consumption by Demand (%YoY) Growth Rates were recorded lowest during 2002-2003 India's Consumption by Demand (%YoY) Growth Rates were recorded highest during 2007-2008 Consumption demand represents the demand for goods and services by individuals and households in the economy. 5 Source: planningcommission.com
  • 6. Volume: 1 1999-00 to 2013-14 -0.4 % India's Public Consumption by Demand (%YoY) Growth Rates were recorded lowest during 2002-2003 13.9 % India's Public Consumption by Demand (%YoY) Growth Rates were recorded highest during 2009-2010 Public Consumption is the value of goods and services individuals receive through the public sector. 6 Source: planningcommission.com
  • 7. Volume: 1 1999-00 to 2013-14 0.0 % India's GFCF by Demand (%YoY) Growth Rates were recorded lowest during 20002001 20.7 % India's GFCF by Demand (%YoY) Growth Rates were recorded highest during 20042005 Gross Fixed Capital Formation is measured by the total value of a producer's acquisitions, less disposals of fixed assets plus certain additions to the value of non-produced assets realised by the productive activity of institutional units. Source: planningcommission.com 7
  • 8. Volume: 1 1999-00 to 2013-14 38.11 % 22.3 % India's Capital Formation consumption (% of GDP) were recorded lowest during 2001-2002 India's Capital Formation consumption (% of GDP) were recorded highest during 2007-2008 Capital Formation describes net capital accumulation during an accounting period. 8 Source: planningcommission.com
  • 9. Volume: 1 1999-00 to 2013-14 36.82 % 22.9 % India's GDS (% of GDP) were recorded lowest during 20012002 India's GDS (% of GDP) were recorded highest during 2007-2008 Gross Domestic Savings are calculated as GDP less final consumption expenditure (total consumption). 9 Source: planningcommission.com
  • 10. Volume: 1 1999-00 to 2013-14 -1.6 % at 44.7 Bn US $ India's Exports (US $ bn) recorded lowest drop during 2001-2002 40.4 % at 256.2 Bn US $ India's Exports (US $ bn) recorded highest growth during 2010-2011 Exports is a function of international trade whereby goods produced in one country are shipped to another country for future sale or trade. 10 Source: planningcommission.com
  • 11. Volume: 1 1999-00 to 2013-14 -10.7 % India's Trade Deficit (US $ bn) was recorded highest during 2002-2003 -195.7 % India's Trade Deficit (US $ bn) was recorded lowest during 2012-2013 Trade Deficit is the amount by which the cost of a country's imports exceeds the value of its exports. 11 Source: planningcommission.com
  • 12. Volume: 1 . 1999-00 to 2013-14 14.1 % India's Current Account Deficit (US $ bn) was recorded highest during 2003-2004 -88.2 % India's Trade Deficit (US $ bn) was recorded lowest during 2012-2013 Current Account Deficit is the sum of the balance of trade (i.e., net revenue on exports minus payments for imports), factor income (earnings on foreign investments minus payments made to foreign investors) and cash transfers 12 Source: planningcommission.com
  • 13. Volume: 1 1999-00 to 2013-14 35.1 299.1 India's Foreign Exchange (US $ bn) was recorded lowest during 1999-2000 India's Trade Deficit (US $ bn) was recorded highest during 2007-2008 Forex Exchange is a global decentralized market for the trading of currencies. 13 Source: planningcommission.com
  • 14. Indian You can download and share the 1st edition of Did You Know: IMME Edition 2.0 coming soon! 14