Inflation Rate

Task On India’s Trend of Economic Growth and Employment (Since the year 1980 to2010) Submitted to DR. TAPAS KUMAR PAL Presented By * ARNABI BOSE (Roll-1) * DIPA DAS (Roll-10) * PURNAMRITA MALLICK (Roll-3) * SWATI AGARWAL (Roll-25) * TISTA BISWAS (Roll-26) (MHROM first semester, Calcutta University) CHART SHOWING DATA OF NOMINAL and REAL GDP, GROWTH RATE, INFLATION and DEFLATION RATE AND EMPLOYMENT (PUBLIC and PRIVATE SECTOR) IN INDIA SINCE 1980 TO 2010 Year| NominalGDP(Rs. )| NominalGDP Growth Rate(%)| RealGDP(Rs. | RealGDP Growth Rate(%)| Deflator| InflationRate(%)| Public Sector(million)| PrivateSector(million)| Total Employment(million)| EmploymentRate(%)| 1980-81| 1368. 38| 19. 51| 7985. 06| 7. 21| 17. 14| 11. 51| 15. 48| 7. 40| 22. 88| 2. 3| 1981-82| 1602. 13| 17. 08| 8434. 26| 5. 63| 18. 99| 10. 79| 16. 28| 7. 53| 23. 81| 4. 06| 1982-83| 1789. 85| 11. 72| 8680. 91| 2. 92| 20. 62| 8. 58| 16. 75| 7. 39| 24. 14| 1. 38| 1983-84| 2093. 56| 16. 97| 9362. 69| 7. 85| 22. 36| 8. 43| 17. 22| 7. 36| 24. 58| 1. 82| 1984-85| 2351. 13| 12. 30| 9733. 57| 3. 96| 24. 15| 8. 00| 17. 58| 7. 43| 25. 01| 1. 4| 1985-86| 2627. 17| 11. 74| 10138. 66| 4. 16| 25. 91| 7. 28| 17. 68| 7. 37| 25. 05| 1. 71| 1986-87| 2929. 24| 11. 48| 10576. 12| 4. 31| 27. 69| 6. 86| 18. 24| 7. 39| 25. 63| 2. 31| 1987-88| 3320. 68| 13. 36| 10949. 92| 3. 53| 30. 32| 9. 49| 18. 32| 7. 39| 25. 71| 0. 31| 1988-89| 3962. 95| 19. 34| 12062. 43| 10. 16| 32. 85| 8. 34| 18. 51| 7. 45| 25. 96| 0. 97| 1989-90| 4565. 40| 15. 20| 12802. 28| 6. 13| 35. 66| 8. 55| 18. 77| 7. 58| 26. 35| 1. 50| 1990-91| 5318. 13| 16. 49| 13478. 89| 5. 29| 39. 45| 10. 62| 19. 06| 7. 68| 26. 74| 1. 48| 1991-92| 6135. 28| 15. 37| 13671. 71| 1. 3| 44. 87| 13. 73| 19. 21| 7. 85| 27. 06| 1. 19| 1992-93| 7037. 23| 14. 70| 14405. 03| 5. 36| 48. 85| 8. 87| 19. 33| 7. 85| 27. 18| 0. 44| 1993-94| 8197. 61| 16. 49| 15223. 43| 5. 68| 53. 85| 10. 23| 19. 45| 7. 93| 27. 38| 0. 73| 1994-95| 9553. 85| 16. 54| 16196. 94| 6. 39| 58. 98| 9. 52| 19 . 47| 8. 06| 27. 53| 0. 54| 1995-96| 11185. 86| 17. 08| 17377. 40| 7. 29| 64. 37| 9. 13| 19. 43| 8. 51| 27. 94| 1. 48| 1996-97| 13017. 88| 16. 38| 18763. 19| 7. 97| 69. 38| 7. 78| 19. 56| 8. 69| 28. 25| 1. 10| 1997-98| 14476. 13| 11. 20| 19570. 31| 4. 30| 73. 97| 6. 61| 19. 42| 8. 75| 28. 17| 0. 8| Year| NominalGDP(billion)| NominalGDP Growth Rate(%)| RealGDP(billion)| RealGDP Growth Rate(%)| Deflator(%)| InflationRate(%)| Public Sector(million)| PrivateSector(million)| Total Employment(million)| EmploymentRate(%)| 1998-99| 16687. 39| 15. 28| 20878. 27| 6. 68| 79. 93| 8. 05| 19. 41| 8. 70| 28. 11| 0. 21| 1999-00| 18472. 73| 10. 70| 22462. 76| 7. 59| 82. 24| 2. 89| 19. 31| 8. 65| 27. 96| 0. 53| 2000-01| 19919. 82| 7. 83| 23427. 74| 4. 30| 85. 03| 3. 39| 19. 14| 8. 65| 27. 79| 0. 60| 2001-02| 21677. 45| 8. 82| 24720. 52| 5. 52| 87. 69| 3. 12| 18. 77| 8. 43| 27. 20| 2. 12| 2002-03| 23382. 00| 7. 86| 25706. 0| 3. 99| 90. 95| 3. 71| 18. 58| 8. 44| 27. 02| 0. 66| 2003-04| 26222. 16| 12. 1 5| 27778. 13| 8. 06| 94. 39| 3. 78| 18. 20| 8. 25| 26. 45| 2. 10| 2004-05| 29714. 64| 13. 32| 29714. 64| 6. 97| 100| 5. 94| 18. 01| 8. 45| 26. 46| 0. 03| 2005-06| 33905. 03| 14. 10| 32530. 73| 9. 48| 104. 32| 4. 32| 18. 19| 8. 77| 26. 96| 1. 88| 2006-07| 39532. 76| 16. 60| 35643. 63| 9. 57| 110. 91| 6. 31| 18. 00| 9. 24| 27. 24| 1. 03| 2007-08| 45820. 86| 15. 91| 38966. 36| 9. 32| 117. 59| 6. 02| 17. 67| 9. 88| 27. 55| 1. 13| 2008-09| 53035. 67| 15. 75| 41586. 76| 6. 72| 127. 53| 8. 45| 17. 80| 10. 38| 28. 18| 2. 28| 2009-10| 60914. 5| 14. 86| 45076. 37| 8. 39| 135. 13| 5. 96| 17. 86| 10. 85| 28. 71| 1. 88| * INTRODUCTION: * What is GDP? Total national output (GDP) is the market estimation of all formally perceived last products and ventures delivered inside a nation in a given period. Gross domestic product per capita is regularly viewed as a pointer of a nation's way of life GDP = private utilization + net venture + government spending + (sends out ? imports) * Nominal GDP will be GDP assessed at current market costs. Consequently, ostensible GDP will remember the entirety of the progressions for showcase costs that have happened during the current year because of swelling or emptying. So as to digest from changes in the general value level, another proportion of GDP called genuine GDP is regularly utilized. Genuine GDP will be GDP assessed at the market costs of some base year. For instance, on the off chance that 1990 were picked as the base year, at that point genuine GDP for 1995 is determined by taking the amounts all things considered and benefits bought in 1995 and increasing them by their 1990 costs. * Inflation is characterized as an ascent in the general value level, and emptying is characterized as a fall in the general value level. The expansion rate is one of the most significant monetary powers reliably burdening the estimation of a country's money. Low Inflation Causes Growth: It is contended that low swelling can add to a higher pace of devel opment in the long haul. This is on the grounds that low swelling advances steadiness, certainty, and security and along these lines energizes venture. This venture advances long haul financial development. On the off chance that an economy has times of high and unpredictable swelling rates, at that point paces of financial development will in general be lower. * High Inflation and Low Growth: It is conceivable that an economy can encounter low development and high swelling this can happen if there is cost push inflation.Cost push expansion could be brought about by rising oil costs. It expands costs for firms and diminishes discretionary cashflow. In this manner, there is lower development, while high expansion. * What is the connection between expansion joblessness and Real GDP? During top times of the business cycle when the economy is encountering quick development in genuine GDP, business will increment as organizations look for laborers to create a higher yield. On the off cha nce that genuine GDP develops too rapidly, in any case, it can cause cost expansion as firms are compelled to offer against each other or progressively scant specialists. Interestingly during trough times of the business cycle the economy is encountering decreases in genuine GDP, and work rates are low. This is exemplary Neo-Keynesian monetary hypothesis. * Workings: 1. Computation for Deflator: (Nominal GDP/Real GDP)*100 2. Count for Inflation Rate: {(Current Year’s GDP Deflator †Previous Year’s GDP Deflator)/Previous Year’s GDP Deflator}* 100 3. Computation for Growth Rate: {(Current Year Growth Rate-Previous Year Growth Rate)/Previous Year Growth Rate}*100 4. Computation for Employment Rate: (Current Year Employment Rate-Previous Year Employment Rate)/Previous Year Employment Rate}*100 # We have determined ostensible GDP and Real GDP at the Factor Cost. * The normal expansion rate with a 5-years span is determined underneath: The normal swelling pace of year 1980-85 is: (11. 51+10. 79+8. 58+8. 53+8)/5=9. 48 The normal swelling pace of year 1985-90 is: (7. 28+6. 86+9. 49+8. 34+8. 55)/5=8. 10 The normal swelling pace of year 1990-95 is: (10. 62+13. 73+8. 87+10. 23+9. 52)/5=10. 59 The normal swelling pace of year 1995-2000 is: (9. 13+7. 78+6. 61+8. 05+2. 89)/5=6. 89 The normal swelling pace of year 2000-05 is: 3. 39+3. 12+3. 71+3. 78+5. 94)/5=3. 98 The normal expansion pace of year 2005-10 is: (4. 32+6. 31+6. 02+8. 45+5. 96)/5=6. 21 * The normal Employment Rate with a 5-years span is determined underneath: The normal work pace of year 1980-85: (2. 3+4. 06+1. 38+1. 82+1. 74)/5=2. 26 The normal business pace of year 1985-90: (1. 71+2. 31+0. 31+0. 97+1. 50)/5=1. 36 The normal work pace of year 1990-95: (1. 48+1. 19+0. 44+0. 73+0. 54)/5=0. 87 The normal work pace of year 1995-2000: (1. 48+1. 10+0. 28+0. 21+0. 53)/5=0. 72 The normal work pace of year 2000-05: (0. 60+2. 12+0. 66+2. 10+0. 03)/5=1. 0 The normal work pace of year 2005-10: (1. 88+1. 03+1. 13+2. 28+1. 88)/5=1. 64 * The normal Real GDP Growth rate with a 5-years stretch is determined beneath: The normal genuine GDP development pace of year 1980-85 is: (7. 21+5. 63+2. 92+7. 85+3. 96)/5=5. 51 The normal genuine GDP development pace of year 1985-90 is: (4. 16+4. 31+3. 53+10. 16+6. 13)/5=5. 65 The normal genuine GDP development pace of year 1990-95 is: (5. 29+1. 43+5. 36+5. 68+6. 39)/5=4. 83 The normal genuine GDP development pace of year 1995-2000 is: (7. 29+7. 97+4. 30+6. 68+7. 59)/5=6. 76 The normal genuine GDP development pace of year 2000-05 is: (4. 30+5. 52+3. 99+8. 06+6. 7)/5=5. 76 The normal genuine GDP development pace of year 2005-10 is: (9. 48+9. 57+9. 32+6. 72+8. 39)/5=8. 69 * Conclusion: As we can see the normal genuine GDP development rate from 1980-85 is 5. 51 and the normal expansion pace of year 1980-85 is 9. 48 just as the normal genuine GDP development pace of year 1985-90 is 5. 65 and the normal swelling pace of year 1985-90 is 8. 10. Along these lines, it tends to be seen that, when the genuine GDP development rates expanded in the following sequential years, the swelling rate has been diminished. Once more, normal genuine GDP development pace of year 1990-95 is 4. 83 and normal swelling pace of year 1990-95 is 10. 9. Here as for the year 1985-90, the genuine GDP development rate is diminishing and the expansion rate is expanding. Further, normal genuine GDP development pace of year 1995-2000 is 6. 76 and the normal expansion pace of year 1995-2000 is 6. 89. Here once more, regarding the year 1990-95, the genuine GDP development rate is expanding and the expansion rate is diminishing. Once more, normal genuine GDP development pace of year 2000-05 is 5. 76 and normal swelling pace of year 2000-05 is 3. 98. Here regarding the year 1995-2000, the genuine GDP development rate is diminishing and the swelling rate is additionally decreasing.And, normal genuine GDP development pace of year 2005-10 is 8. 69 and normal swellin g pace of year 2005-10 is 6. 21. Here regarding the year 2000-05, the genuine GDP development rate is expanding and the expansion rate is additionally expanding. In this manner, FROM THE ABOVE COMPARISONS, GOING WITH THE MAJORITY, WE CAN CONCLUDE THAT IN INDIA, SINCE THE YEAR 1980-2010, REAL GDP GROWTH RATE AND INFLATION RATE ARE I