India's Gdp

AIM: TO FIND OUT THE RELATION BETWEEN THE GROWTH RATE OF THE INDIAN ECONOMY A ND SUSTAINED SAVINGS AND INVESTMENT INTRODUCTION: No upper limit can be fixed for the growth rate of a country. An upper limit can be thought of only in the sense that depending upon the availability of resources and other determinants of economic growth at a point of time a country cannot manage to grow faster than a certain rate. But there can be a lower limit of rate of growth. If the growth rate of GDP is below this lower limit, then it will not be adequate for keeping the economy on the path of self-sustained and steady growth and under these circumstances living standards of the mass of the population may not improve at all. India’s growth performance has always been modest. METHODOLOGY: So we can express GDP as Y=C+I+G+NX This is called the income-expenditure identity. Savings is the excess of current income over current expenditure and is the balancing item on the income and outlay accounts of producing enterprises, households Government administration and other final consumers. SAVINGS ,CAPITAL FORMATION AND RISE IN GDP GROSS DOMESTIC SAVINGS {draw:frame} in 1990-91. By1995-96 it touched its peak of 24.4 and then it showed signs of some de acceleration but however it once again peaked to 29% and more from 2003-2004 and reaching up to almost 34% in 2006-2007. An analysis of the various sectors of the economy gives a picture of the contribution of various sectors towards the economy which has very important bearing on the other aspects of macro-economic management of the countries economy. The public sector savings which was of GDP in 1950-51 increased to {draw:frame} *GROWTH OF THE INDIAN ECONOMY OVER THE PERIOD 1950to *2007-08 A close look at the Indian economy would dispel the belief that the Indian economy had been stagnating till the 1970,s.In fact the economy had a rising real GDP growth over each decade. This growth was interrupted