Government's view of the economy could be summed up in a few short phrases: If it moves, tax it.

If it keeps moving, regulate it. And if it stops moving, subsidize it

RONALD REAGAN FORMER U.S. PRESIDENT

GDP -DEFINITION

Measurement of gdp

LIMITATIONS OF GDP
assumes that every monetary transaction adds to wellbeing ignores everything that happens outside the realm of monetized exchange treats crime, divorce and natural disasters as economic gain ignores the non-market economy of household and community treats the depletion of natural capital as income takes no account of income distribution ignores the drawbacks of living on foreign assets

MOVING UP AGAINST ALL ODDS

16 years 6 governments 5 prime ministers ONE DIRECTION 9% GDP growth

 India ranks second worldwide in farm output, employ 60% of the total workforce: PRIMARY SECTOR India is fourteenth in the world in factory output, employ 17% of the total workforce: SECONDARY SECTOR India is fifteenth in services output, employ 23% of the total workforce: TERTIARY SECTOR

GROWTH IN SECTORS (2006-07)

700 600 500

USD Billion

155 109 91 319 205 223 116

168 117

400 300

104 103

200 100 0

347

The sound performance of each industry segment is leading to The overall robust performance of the Indian economy

1999-00 2002-03 2005-06 Services Agriculture Industry

2006-07

FASTEST GDP GROWTH

India's GDP: 2002-07 700

8.5% 7.5%

9.4% 8.4%

600
USD Billion

500 400
4%

300 200 100 0 2002-03 2003-04 424 484

534

590

631

Indias GDP witnessed high growth and was the second fastest growing GDP after China

2004-05

2005-06

2006-07

GDP at Constant Prices

SHARE IN INCREMENTAL WORLD GDP

GROWTH EXPECTED IN INDIA

To sustain the GDP growth of more than 8 percent, India requires an investment of USD 1.5 trillion in the next five years
2010

GDP USD 900 billion GDP growth rate 9%

2008 2006 GDP USD 590 billion GDP growth rate 9 % Services contribution 54 % FDI limit not 100 percent in major industry sectors such as Telecom, Semiconductors, Automobiles, etc. Balance of Trade USD (-)46.2 billion Investment goal USD 250 billion GDP USD 750 billion GDP growth rate 9.5% Services contribution 60 % FDI limit is expected to be close to 100 percent in major industry sectors such as Telecom, Semiconductors, Automobiles, etc. Balance of Trade Should increase with surging exports as compared with imports Investment goal USD 305 billion

Services contribution 6065 %

FDI limit is expected to be 100 percent in major industry sectors such as Telecom, Semiconductors, Automobiles, etc.
Balance of Trade Should be positive with increased level of exports as compared with imports Investment goal USD 370 billion

Tata Steel buys Corus Plc

USD 12.1 billion

Hindalco acquired Novelis Inc.

USD 6 billion

Essar Steel acquired Algoma Steel

USD 1.58 billion

Suzlon Energy Ltd. acquires REpower

USD 1.6 billion

Videocon Industries acquired Daewoo Electronics Corporation Limited

USD 730 million

Vodafone buys Hutch

USD 11 billion

Plans to spend on its development operations in India over the next four years

USD 1.7 billion

Plans investment in private equity, real estate, and private wealth management

USD 1 billion

Aditya Birla Group increased its stake in Idea Cellular by acquiring 48.14-percent stake

USD 0.98 billion

Renault, Nissan and Mahindra & Mahindra has initiated a Greenfield automobile plant project in Chennai.

USD 0.905 billion

Mylan Laboratories acquired a majority stake in Matrix Laboratories

USD 0.74 billion

CAN INDIA MAINTAIN ITS HUGE GROWTH RATE???