Inflation Rate

duty assignment On Indias Trend of Economic festering and oeuvre (Since the social class 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 1st semester, Calcutta University) CHART SHOWING entropy OF NOMINAL & very gross domestic product, ontogenesis dictate, INFLATION & DEFLATION RATE AND EMPLOYMENT (PUBLIC & PRIVATE SECTOR) IN INDIA SINCE 1980 TO 2010 Year Nominalgross domestic product(Rs. ) Nominalgross domestic product Growth reckon(%) existentgross domestic product(Rs. RealGDP Growth Rate(%) Deflator lumpRate(%) universe Sector(million) PrivateSector(million) Total economic consumption(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 1 7. 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. 15 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? Gross domestic product (GDP) is the securities industry hold dear of each formally recognized final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a countrys shopworn of living GDP = private consumption + gross investment + governance spending + (exports ? imports) * Nominal GDP is GDP evaluated at current grocery prices. Therefore, nominal GDP forget include all of the changes in market prices that have occurred during the current category due to lump or deflation. In order to abstract from c hanges in the overall price level, another appreciate of GDP called accepted GDP is often used. Real GDP is GDP evaluated at the market prices of some fundament twelvemonth. For example, if 1990 were chosen as the base grade, then very GDP for 1995 is calculated by taking the quantities of all goods and services purchased in 1995 and multiplying them by their 1990 prices. * Inflation is defined as a rise in the overall price level, and deflation is defined as a fall in the overall price level. The largeness put is angiotensin-converting enzyme of the most important scotch forces consistently weighing on the value of a nations currency. Low Inflation Causes Growth It is argued that low inflation pile contribute to a higher prize of offset in the want term. This is because low inflation helps advocate stability, confidence, and security and in that locationfore encourages investment. This investment helps promote long term economic out emersion. If an economic system has periods of high and volatile inflation targets, then strides of economic egression tend to be lower. * last Inflation and Low Growth It is possible that an economy canister buzz off low growth and high inflation this can occur if there is cost push inflation.Cost push inflation could be caused by hike oil prices. It increases costs for firms and reduces disposable income. Therefore, there is lower growth, whilst high inflation. * What is the alliance between inflation un avocation and Real GDP? During peak periods of the business musical rhythm when the economy is experiencing rapid growth in trustworthy(a) GDP, engagement will increase as businesses lookk workers to produce a higher output. If tangible GDP grows too quickly, however, it can cause price inflation as firms are forced to bid against one another or more and more scarce workers. In contrast during trough periods of the business cycle the economy is experiencing declines in in truth GDP, and booking estimates are low. This is classic Neo-Keynesian economic theory. * Workings 1. slowness for Deflator (Nominal GDP/Real GDP)*100 2. Calculation for Inflation Rate (Current Years GDP Deflator earlier Years GDP Deflator) / Previous Years GDP Deflator* 100 3. Calculation for Growth Rate (Current Year Growth Rate-Previous Year Growth Rate)/Previous Year Growth Rate*100 4. Calculation for Employment Rate (Current Year Employment Rate-Previous Year Employment Rate)/Previous Year Employment Rate*100 We have calculated nominal GDP and Real GDP at the Factor Cost. * The reasonable inflation roam with a 5- course of instructions legal separation is calculated below The number inflation browse of course of study 1980-85 is (11. 51+10. 79+8. 58+8. 53+8)/5=9. 48 The add up inflation rate of course of study 1985-90 is (7. 28+6. 86+9. 49+8. 34+8. 55)/5=8. 10 The add up inflation rate of stratum 1990-95 is (10. 62+13. 73+8. 87+10. 23+9. 52)/5=10. 59 The just inflation rate of year 1995-2000 is (9. 13+7. 78+6. 61+8. 05+2. 89)/5=6. 89 The number inflation rate of year 2000-05 is 3. 39+3. 12+3. 71+3. 78+5. 94)/5=3. 98 The sightly inflation rate of year 2005-10 is (4. 32+6. 31+6. 02+8. 45+5. 96)/5=6. 21 * The fair(a) Employment Rate with a 5-years interval is calculated below The intermediate employment rate of year 1980-85 (2. 3+4. 06+1. 38+1. 82+1. 74)/5=2. 26 The average employment rate of year 1985-90 (1. 71+2. 31+0. 31+0. 97+1. 50)/5=1. 36 The average employment rate of year 1990-95 (1. 48+1. 19+0. 44+0. 73+0. 54)/5=0. 87 The average employment rate of year 1995-2000 (1. 48+1. 10+0. 28+0. 21+0. 53)/5=0. 72 The average employment rate of year 2000-05 (0. 60+2. 12+0. 66+2. 10+0. 03)/5=1. 0 The average employment rate of year 2005-10 (1. 88+1. 03+1. 13+2. 28+1. 88)/5=1. 64 * The average Real GDP Growth rate with a 5-years interval is calculated below The average genuinely GDP growth rate of year 1980-85 is (7. 21+5. 63+2. 92+7. 85+3. 96)/5=5. 51 The averag e real GDP growth rate of year 1985-90 is (4. 16+4. 31+3. 53+10. 16+6. 13)/5=5. 65 The average real GDP growth rate of year 1990-95 is (5. 29+1. 43+5. 36+5. 68+6. 39)/5=4. 83 The average real GDP growth rate of year 1995-2000 is (7. 29+7. 97+4. 30+6. 68+7. 59)/5=6. 76 The average real GDP growth rate of year 2000-05 is (4. 30+5. 52+3. 99+8. 06+6. 7)/5=5. 76 The average real GDP growth rate of year 2005-10 is (9. 48+9. 57+9. 32+6. 72+8. 39)/5=8. 69 * Conclusion As we can see the average real GDP growth rate from 1980-85 is 5. 51 and the average inflation rate of year 1980-85 is 9. 48 as well as the average real GDP growth rate of year 1985-90 is 5. 65 and the average inflation rate of year 1985-90 is 8. 10. So, it can be sight that, when the real GDP growth rates change magnitude in the undermentioned consecutive years, the inflation rate has been decreased. Again, average real GDP growth rate of year 1990-95 is 4. 83 and average inflation rate of year 1990-95 is 10. 9. Here with respect to the year 1985-90, the real GDP growth rate is decreasing and the inflation rate is increasing. Further, average real GDP growth rate of year 1995-2000 is 6. 76 and the average inflation rate of year 1995-2000 is 6. 89. Here again, with respect to the year 1990-95, the real GDP growth rate is increasing and the inflation rate is decreasing. Again, average real GDP growth rate of year 2000-05 is 5. 76 and average inflation rate of year 2000-05 is 3. 98. Here with respect to the year 1995-2000, the real GDP growth rate is decreasing and the inflation rate is in addition decreasing.And, average real GDP growth rate of year 2005-10 is 8. 69 and average inflation rate of year 2005-10 is 6. 21. Here with respect to the year 2000-05, the real GDP growth rate is increasing and the inflation rate is also increasing. THEREFORE, FROM THE ABOVE COMPARISONS, passage WITH THE MAJORITY, WE CAN CONCLUDE THAT IN INDIA, SINCE THE YEAR 1980-2010, REAL GDP developing RATE AND INFLATION RAT E ARE in return RELATED, AS FOR 3 CASES WE CAN SEE WHEN REAL GDP GROWTH RATES work INCREASED, INFLATION RATES HAVE DECREAS AND VICE VERSA Now, as per our assignment, we have to analyze Indias Trend of Economic Growth with Employment (Since the year 1980 to2010). As we can see the average real GDP growth rate from 1980-85 is 5. 51 and the average employment rate of year 1980-85 is 2. 26 as well as the average real GDP growth rate of year 1985-90 is 5. 65 and the average employment rate of year 1985-90 is 1. 36. So, it can be observed that, when the real GDP growth rates increased in the next consecutive years, the employment rate has decreased. Again, average real GDP growth rate of year 1990-95 is 4. 83 and average employment rate of year 1990-95 is 0. 7. Here with respect to the year 1985-90, the real GDP growth rate is decreasing and the employment rate is also decreasing. Further, average real GDP growth rate of year 1995-2000 is 6. 76 and the average employment rate of year 1 995-2000 is 0. 72. Here again, with respect to the year 1990-95, the real GDP growth rate is increasing and the employment rate is decreasing. Again, average real GDP growth rate of year 2000-05 is 5. 76 and average employment rate of year 2000-05 is 1. 10. Here with respect to the year 1995-2000, the real GDP growth rate is decreasing and the employment rate is increasing.And, average real GDP growth rate of year 2005-10 is 8. 69 and average employment rate of year 2005-10 is 1. 64. Here with respect to the year 2000-05, the real GDP growth rate is increasing and the employment rate is also increasing. THEREFORE, FROM THE ABOVE COMPARISONS, GOING WITH THE MAJORITY, WE CAN CONCLUDE THAT IN INDIA, SINCE THE YEAR 1980-2010, REAL GDP GROWTH RATE AND EMPLOYMENT RATE ARE INVERSELY RELATED, AS FOR 3 CASES WE CAN SEE WHEN REAL GDP GROWTH RATES HAVE INCREASED, EMPLOYMENT RATES HAVE DECREAS AND VICE VERSA