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HUL312 Assignment
HUL312 Assignment
Plot the following: GVA at basic prices, GDP, NDP, and Gross National Income for the
years from 2011-12 to 2020-21 (all at constant prices with base year 2011-12). Comment
on the GDP and GNP data series (you can plot the log values of each of these series to
get a better idea of the trends). Plot GVA at basic prices (at current prices) and at
constant 2011-12 prices for years from 2011-12 to 2020-21. What do you obse rve? (you
can plot the log values of each of these series to get a better idea of the trends).
COMMENT :
GDP and GNP are two of the most commonly used measures of a country's economy. Both
represent the total market value of all goods and services produced over a certain period.
However, they are calculated in slightly different ways.
Gross domestic product (GDP) is the value of the finished domestic goods and services
produced within a nation's borders. On the other hand, gross national product (GNP) is the
value of all finished goods and services owned by a country's citizens, whether or not those
goods are produced in that country.
These metrics reflect different ways of measuring the scope of an economy. While GDP limits its
interpretation of the economy to the geographical borders of the country, GNP extends it to
include the net overseas economic activities performed by its nationals.
In India, it can be seen that both GDP and GNP has been increasing since the year 2014-15 till
the year 2019-2020. But it can also be seen that GNP has comparatively grown at a less rate
than GDP which means that there have been outflows from the country than the inflows through
citizens, businesses and operations.
Also, both GDP and GNP has fell after the year 2020 due to the pandemic and it's
repercussions are clearly visible
QUESTION 4
Plot the following: GVA at basic prices, GDP, NDP, and Gross National Income for the
years from 2011-12 to 2020-21 (all at constant prices with base year 2011-12). Comment
on the GDP and GNP data series (you can plot the log values of each of these series to
get a better idea of the trends). Plot GVA at basic prices (at current prices) and at
constant 2011-12 prices for years from 2011-12 to 2020-21. What do you obse rve? (you
can plot the log values of each of these series to get a better idea of the trends).
COMMENT
Private final consumption expenditure is defined as expenditure on goods and services for the
direct satisfaction of individual needs, whereas government consumption expenditure includes
goods and services produced by government, as well as purchases of goods and services by
government that are supplied to households as social transfers in kind.
China has shown a constant growth till 2007 and then fell from 2008-2010 and then maintained
to be in the range of 50-55% of GDP.
Germany has maintained it's range in 70-75% of GDP but it has fell after 2010 mostly.
India's GFCE has fluctuated over the years and has gone as low as 25% of GDP to as high as
41% of the GDP.
Germany has whereas maintained it's range from 19%-24% of GDP over these 20 years.
Japan too has maintained it's range from 22-28% over these 20 years.
A nation's net exports are the value of its total exports minus the value of its total imports. A
positive net export number indicates a trade surplus, while a negative number means a trade
deficit.
China had grown net exports till 2008 and fell thereof.
Germany has maintained it's growing rate and has grown from 0-5% of GDP over these 20
years.
Japan whereas only has as high as 1% of net exports some of the years or negative like India.
It can be seen that China has a positive balance throughout which indicates that the nation is a
net lender to the rest of the world.
In case of Germany, it has been negative in 2000 and 2001 which means having an overdraft
but it has grown after it an has maintained really high after that and one of the highest amongst
all other countries which indicates that the nation is a net lender to the rest of the world and has
a strong economic relations as well.
But in case of India, it has only maintained postive balance from 2001-2004 which is highly
dangerous since it means it has bank overdraft all the time and is a net borrower. Usually, this
happens when you have an inadequate account balance, but you proceed to make payments. If
the bank accepts the payment, your account incurs a debt, making your balance negative.
Japan has shown similar patterns like China whereas US has a similar pattern like India or even
worse since it has not have positive balance since 2000.
China's gross savings has grown in the initial 2000s from 35% to as high as 50% ans since then
maintained to be between 45-50% of GDP.
Germany has also grown in intial 2000s from 22% to 28% of GDP and since then have been in
the range of 24%-29% only.
India has initially grown from 26%-37% of GDP and thereafter fell from 36% to 30% in the year
2016 and went down till 29% of GDP in the year of pandemic. Therefore has shown lots of ups
and downs in the graphs as seen.
Japan whereas has maintained it's savings in the range of 24% to 31% of GDP over these 20
years.
US similarly has maintained it's savings in the range of 17%-20% of GDP over these 20 years