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Charts & Analysis

Chart Of The Day: Indian GDP Components

The Gross Domestic Product (GDP) is usually :

GDP = Private Expenditure + Govt Expenditure + Investments + (Exports Minus Imports->Net Exports).

How has India done, at a component level, over the last sixty years?

India GDP Components

And to see how important trade has been for us:

image

Look at the huge increase in both directions post liberalization. And the last five years have seen a levelling off, if you may, in terms of % of GDP (the actual numbers have grown, of course).

  • atul says:

    Very interesting data.
    Which investments are included in the GDP? If a private citizen invests in infrastructure (or buys a flat), is it included in GDP? If an FII invests in the Indian stock market, is it included in the GDP?

    • Invests in Infrastructure: Yes. FII: Yes. buying a Flat – complicated because some of it goes in as private consumption expenditure (data collection issue)

      • atul says:

        Thanks for the clarification. So would it be fair to say, that net of FII inflows (which have totaled over US $200 billion or about 15 % of the GDP), the GDP growth would be negligible if not negative ?!

        • 200 billion in the last year? That’s just 10 lakh crores – our GDP grew by some 15 lakh cr. so no, GDP growth won’t be negligible. But I think FIIs were just $39B, and remittances were around $55B. (For 2010-11)

  • Mehul says:

    Excellent visual representation of data. I am not a numbers person but hugely interested in data. So Deepak is a boon. What explains decrease in private expenditure as % to GDP?