Economic comparison of india & Australia
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Transcript of Economic comparison of india & Australia
Economic comparison of
India & AustraliaBY GROUP 10
ContentIntroduction
GDP comparison
Inflation
Unemployment scenario
International Trade norms
Conclusion
IntroductionINDIA
Seventh largest economy & third largest by Purchasing Power Parity.
Economic liberalisation of 1991 moved it to market-based economy.
Fastest growing economy GDP growth rate at 7.3% currently Fiscal deficit at 6.5% Consumer Price Inflation ranges between 8.9% to 12%
AUSTRALIA
Twelfth largest economy & seventeenth largest by Purchasing Power Parity.
Nineteenth largest importer & exporter.
Major contributor in GDP is service sector followed by mining and agriculture sector.
GDP Comparison
India
19%
32%
49%
Contribution to GDP
Agriculture Industry Services
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20150
500000000000
1000000000000
1500000000000
2000000000000
2500000000000
INDIA's GDP (In Billion)
Australia
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20150
200000000000
400000000000
600000000000
800000000000
1000000000000
1200000000000
1400000000000
1600000000000
1800000000000
AUS GDP (In Billion)
58%
5%
7%
9%
7%
Contribution to GDP
Services Retail Trade MiningConstruction Manufacturing
The Governor and treasurer agreed to achieve inflation rate of 2-3% on average over the cycle.
This approach allows a role for monitory policy in dampening the fluctuation in output.
CPI increase by 1.3% from 1.0% in Q3-2016
Desire of Australians to be well educated and healthy is proving an expensive one.
Australia
Microsoft Excel Worksheet
Microsoft Excel Worksheet
India
Major reasons of inflation in India are price increase in food and crude oil , black money, wage rate and sub prime crisis.
In 2009-10 there was a supply shortage cereals, pulses, wheat and rice due drought in country.
To reduce the gape between aggregate demand and supply, India must increase the current production capacity or build a new one.
RBI in its December policy review CPI inflation to be at 4% in November and expecting 5% in financial year 2018, consistent with the RBI’s 2-6% inflation target.
On 7 December, RBI kept interest rate unchanged, while it slashed the economic growth projection by half a per cent to 7.1% in the first policy review post demonetisation.
Future trend
Employment scenario
January February March April May June July August September October November0
2
4
6
8
10
12
6 5.8 5.7 5.7 5.7 5.8 5.7 5.7 5.6 5.6 5.6
8.758.44
8.75 9.029.66
8.928.47
9.548.97
6.345.69
Unemployment Rate
Australia India
Agri-culture
53%
Service sector11%
Manufacturing25%
Non Manufacturing11%
Sector Wise Employment in India
Agriculture3%
Service sector80%
Manufacturing8%
Non Manufacturing9%
Sector Wise Employment in Australia
Unemployment rate in India increased to 5.69% from 4.9% URL: Collaboration by CMIE & BSE
Unemployment rate in Australia at a steady 5.6%URL: Australian Bureau of Statistics
India
Australia
International Trade
Net Export(India & Australia)
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
-9.000
-8.000
-7.000
-6.000
-5.000
-4.000
-3.000
-2.000
-1.000
0.000
1.000
NET EXPORT
INDIA NET EXPORT AUSTRALIA NET EXPORT
YEAR
NET
EXP
ORT
Net Export AnalysisA country that is importing more goods than it is exporting is experiencing a trade deficit. More trade-based money is flowing out of the country than the amount flowing in.
Australian exports and exporters have had to cope with three major reasons over the course of previous 10 years:-
• First, there was a further decline in the rate of economic growth in Australia’s largest export market according to the official data, the annual rate of Australian GDP growth had slowed to seven per cent by the second quarter of 2015.
• Second, world trade growth has continued to fail to gain any significant momentum over the past few years.
• The third headwind was the continued decline in commodity prices. For example, in the case of Australia’s leading export, after ending 2013-14 at US$92.74/t, the price of iron ore had slumped to US$62.29/t by the end of 2014-15.
Net Export (India) India’s latest export and import figures for may 2015 reflect the subdued economic scenario both globally and within the country. India’s exports contracted 20.2 per cent to $22.3 billion from what they were in may 2014, while its imports were down 16.5 per cent over the same period.
The consensus is that poor global growth—especially in the us, china, the euro area and japan—will continue to affect India's exports detrimentally.
Import growth, on the other hand, might bounce back if gold imports continue trending up. Data shows gold import growth has been positive since august 2014.
India's key exports are engineering goods, petroleum products, gems and jewelry, agriculture products and textiles. It is also a major exporter of information technology and business outsourcing services.
Thank you.