ECONOMICS AND ENVIRONMENT

BBAC 1102 MANAGERIAL ECONOMICS

12 APRIL 2022

DINESH SARAVANAN
(1000802975)

SUBMITED TO
Dr. TARAMOL.K.G

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 MACRO-ECONOMICS

In new Delhi, The Commerce and Industry Minister Mr. Piyush Goyal on Wednesday dated
16/03/2022, Describes the problem in industry in the export of goods due to the ongoing Russia
– Ukraine conflicts. Let us see it briefly in the upcoming paragraphs.
There are certain products such as pharmaceuticals, Telecom instruments, Tea, Coffee, and
Marine goods are likely to be affected and the export of those product is declined. Minster also
stated that the Department of commerce is apprised of the present situation and holding regular
consolation with the stakeholders to ensure the availability of essential imports.
The most accurate implication of the post – war period, the situation can only be assessed after
the situation confirms, Goyal replied in writing to Lok Shaba council. Goyal also said that the
Ukraine and Russia are major exporters of wheat with more than 25% share in the global trade.
Due to Interruption of exports from these countries provides India an opportunity to increase
crop outflow.
In separately, the Goyal said as part of consultative process to formulate a “New Foreign Trade
Policy” through various meetings with shareholders were held and all the suggestions are
included recorded for future examination. “Separate foreign trade policy division created to
coordinate with various authorities in the formation of Foreign Trade Policy”. Goyal also
inform that export of agricultural products has an increased growth of 25.14% percent
compared to last year. In Rubber Sector, there were removal of certain archaic provisions, in
make of world class rubber industry, the government is considering amending the existing
rubber law, 1947. Kerala government recommended the changes in some rules of the draft
rubber bill and draft spices (Advertising and Development) Bill 2022. In the draft spice bill,
the recommendation are limited production plans for Cardamom only. Goyal also says that all
suggestion were received from shareholders, including the government of Kerala and the public
will be considered before making the final Bill. These observations are observed from the
article given in the Times of India and the links are given in the bibliography page.

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 ECONOMY OF INDIA
India faces steady unemployment, rising income inequality, and declining gross domestic
product. In fiscal 2019, India's gross domestic product (GDP) accounted for 30.1% of GDP.
Financial institutions and independent economists have accused the government of
misrepresenting various economic data, especially GDP growth.
The autonomous body, compiled using the benchmark-indicator system, said GDP could grow
by 9.2% in the fiscal year ending March 2022. This is slightly lower than the RBI forecast,
setting the GDP growth rate at 9.5%. Meanwhile, China is expected to grow 8% for the current
financial year. Estimates suggest the Indian economy return to fiscal 2020 without severe
lockdowns.
However, the overall growth of real GDP will be a slight 1.3% higher than FY20. This means
that two years of growth are lost due to infection. Nominal GDP is estimated to be 17.6%
compared to the 3% fall in FY21. This is better than the 14.4% growth used for FY22 budget
calculations last February. As the annual fiscal deficit is measured in nominal GDP, the
government will benefit the most.
A high-rise growth rate for nominal GDP than the budget will reduce the fiscal deficit as a
percentage of GDP. If all revenues remain the same as estimated in the last Union Budget,
without any change in the fiscal deficit target of 6.8%, the government will be able to reduce
its total deficit to more than about Rs 71,000 crore. However, the government is paying out Rs
3.28 lakh crore in the budget estimate for this financial year. However, the government can
control its fiscal deficit to 6.8%, considering excessive tax revenues and expected savings from
various sectors. In the end, all this was done by the government through LIC's IPO for Rs. It
depends on getting Rs 1 lakh crore. Production will increase by 12.5% and construction by
10.7%.
Although trade, hotel, transportation, and communications rose 11.9% this year, FY20 has not
yet offset lost production. The bad news is in private consumption. Its share of GDP is even
lower than it was two years ago. The part of consumer spending in FY22 GDP is projected to
be 54.8% compared to 56% in FY21 and 57.1% in FY20.
Overall, it is estimated to rise 6.9%; however, it is well below the pre-Covid levels found in
FY20. This indicates that despite the strong recovery in 2021-22 from the contraction of the
previous financial year, the consumption recovery is not yet on a broad basis. Rising inflation
is not good either. Meanwhile, investments have begun to increase. It is estimated that the share
of GDP growth in real GDP will be 32.9% in FY22, 31.2% in FY21, and 32.5% in FY20.
Madan Sap Navis, the chief economist at Bank of Baroda, says this could be challenging as
private sector investment is declining, and states are cautious about their investment in view of
the uncertainty in their financial balances.
Sap Navis says the figure undergoes a major revision when final estimates are released.
Government spending grew by 7.6% this fiscal. While these numbers present an encouraging
picture of the economic recovery, the effect of the restrictions due to the rising coronavirus
caseload will be well known by the end of this month. Only then will the first revised GDP
estimate for FY21 be released. The second preliminary estimate of GDP for FY22 on February
28 will also lead to a revision in growth rates

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As we all know that India is a highly populated country, population explosion made India
second largest populated country in the world. Here, migrations are negligible. Also, the culture
of diversity. Governments pervasive helps large corporates to contribute to the economy.
Also, India has extreme Income Equality as this barely identifies only small amount population
pays Income taxes. Also, India has the largest attraction of tourism, and this contributes about
9.4% GDP of its economy. Which of most visit the Taj Mahal and for the medical tourism
sector because offering low-cost health care and for long run.

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 ECONOMIC OF TAMILNADU

Tamil Nadu is in southern part of India. Which is more over have most ancient cultural
language. In the point of population which is in the 6th position in India. And importantly Tamil
Nadu is the second largest economy state of India.
Its tourism industry is most incredible for having six UNESCO world heritage sites. From the
way I analysis most of the average economic people are engaged in agricultural activities which
is also a major contributes to economy of Tamil Nadu. then, the most economy is from
manufacturing industries like textile and electronic motor manufacturing industries.so the
reason Tamil Nadu has big foreign direct investments. Also, most of these opportunities give
some of illiterate labour jobs to perform by which they can overcome with their poverty. But
we can find them hence there is still no solution. Even Tamil Nadu government runs its own
industrial units for its GDP. Industries like TASMAC in which high revenues are generated
and Tamil Nadu paper mill limited etc., Also from the above graph we can get a knowledge of
foreign direct investment made in textile manufactures. If we consider about the literacy Tamil
Nadu has a maximum rate than the other states possess. And Tamil Nadu has the largest wind
power generation in which the government offers free electricity to farmers so they can enjoy
additional benefits. And the government has amended many free services to help the poverty
line people like free food products, housing boards.

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BIBILIOGRAPHY
Page-2,
 https://timesofindia.indiatimes.com/business/india-business/india-
taking-up-russian-discounted-oil-offer-will-not-be-us-sanctions-
violation-white-house/articleshow/90264709.cms
 https://timesofindia.indiatimes.com/business/india-business/india-
taking-up-russian-discounted-oil-offer-will-not-be-us-sanctions-
violation-white-house/articleshow/90264709.cms

Page-3&4,
 Snap from ndian-share-tips.com/2018/01/indian-economy-gdp-growth-in-
true.html
 Article from https://www.ibef.org.

Page-5,
 Article from https://www.britannica.com/place/Tamil-Nadu/Economy
 Snap from Wikipedia.

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