If you are an engineer or into construction domain or into communication or a business services professional and wish to change your job. You are meeting all criteria set by the Recruitment agencies / job firms or the recruiting company, but still you are not getting neither any acknowledgement of your job application nor any response or interview call. Meanwhile you are getting calls from various job portals offering you paid resume development service and promoting your resume on their respective job portals. Even after paying hefty charges, you are not able to get any interview call. You are easily getting frustrated. But have you ever thought why this is happing?
This is happing for two reasons. Many jobs posted on major job portals are either fake or not real. But the main reason is the slowdown in the Indian economy and negative growth in the GDP of all major sectors.
What is GDP?
Gross domestic product or GDP refers to the market value of all final goods and services produced in a country in a given period. GDP per capita is often considered an indicator of a country's standard of living.
How GDP is related to economic slowdown?
In economics, a recession or economic slowdown is a business cycle contraction, a general slowdown in economic activity. During recessions, many macroeconomic indicators vary in a similar way. Production, as measured by gross domestic product (GDP), employment, investment spending, capacity utilization, household incomes, business profits all fall, while bankruptcies and the unemployment rate rise.
What is India’s GDP?
The Central Statistics Office (CSO) under the Ministry of Statistics and Programme Implementation has released the estimates of Gross Domestic Product (GDP) for the first quarter (April-June) Q1, of 2011-12, both at constant (2004-05) and current prices, alongwith the corresponding quarterly estimates of expenditure components of the GDP.
Quarterly GDP at factor cost at constant (2004-2005) prices for Q1 of 2011-12 is estimated at Rs 12,26,339 crore, as against Rs 11,38,286 crore in Q1 of 2010-11, showing a growth rate of 7.7 per cent over the corresponding quarter of previous year.
The economic activities which registered significant growth in Q1 of 2011-12 over Q1 of 2010-11 are ‘electricity, gas and water supply’ at 7.9 per cent, ‘trade, hotels, transport and communication’ at 12.8 per cent, ‘financing, insurance, real estate and business services’ at 9.1 per cent. The estimated growth rates in other economic activities are: 7.2 per cent in ‘manufacturing’, 5.6 percent in ‘community, social and personal services’, 3.9 percent in ‘agriculture, forestry and fishing’, 1.8 percent in ‘mining and quarrying’ and 1.2 percent in ‘construction’ during this period.
According to the information furnished by the Department of Agriculture and Cooperation (DAC), which has been used in compiling the estimate of GDP from agriculture in Q1 of 2011-12, the production of crops - rice, wheat, coarse cereals and pulses during the Rabi season of agriculture year 2010-11 (which ended in June 2011) recorded growth rates of 11.3 per cent, 6.3 per cent, 0.7 per cent and 4.9 per cent, respectively over the production in the corresponding season of previous agriculture year. Among the commercial crops, the production of oilseeds increased by 12.0 per cent during the Rabi season of 2010-11.
According to the latest estimates available on the Index of Industrial Production (IIP) for the new series, the index of mining, manufacturing and electricity, registered growth rates of 1.0 per cent, 7.5 per cent and 8.2 per cent, respectively during Q1 of 2011-12, as compared to the growth rates of 8.0 per cent, 10.3 per cent and 5.4 per cent in these sectors during Q1 of 2010-11 while the key indicators of construction sector, namely, production of cement declined by 0.9 per cent and consumption of finished steel registered growth rate of 1.5 per cent, during Q1 of 2011-12.
How it is affecting me?
Before answering this question, please have a look of both the tables. The first quarter (April – June, 2011) GDP at 2004-05 market price has grossly declined by 1.1 per cent over the previous year. The declined sectors are mining, manufacturing, construction, finance and insurance and social and personal services.
While, GDP for the Q1 of 2011-2012 at current price has sharply declined by 4.6 per cent over the previous year. At current market price, except the trade, hotels, transport & communication sector, all other sectors have witnessed the negative growth. Mining, agriculture and construction business at current price have suffered a huge set back with -12.5 per cent, -9.6 per cent and -8.3 per cent respectively.
| QUARTERLY ESTIMATE OF GDP AT FACTOR COST
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| APRIL-JUNE (Q1) | |||||
| Industry | (Rs in Crore) GDP for Q1 of | % over previous year Q1 | ||||
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| 2009-10 | 2010-11 | 2011-12 | 2010-11 | 2011-12 | Growth % |
| agriculture, forestry & fishing | 1,57,064 | 1,60,771 | 1,67,091 | 2.4 | 3.9 | 1.5 |
| mining & quarrying | 24,547 | 26,354 | 26,832 | 7.4 | 1.8 | -5.6 |
| manufacturing | 1,65,950 | 1,83,488 | 1,96,699 | 10.6 | 7.2 | -3.4 |
| electricity, gas & water supply | 21,998 | 23,204 | 25,042 | 5.5 | 7.9 | 2.4 |
| construction | 86,858 | 93,514 | 94,639 | 7.7 | 1.2 | -6.5 |
| trade, hotels, transport & communication | 2,67,362 | 2,99,600 | 3,37,872 | 12.1 | 12.8 | 0.7 |
| financing, insurance, real estate& business services | 1,87,575 | 2,05,870 | 2,24,574 | 9.8 | 9.1 | -0.7 |
| community, social & personal services | 1,34,508 | 1,45,485 | 1,53,589 | 8.2 | 5.6 | -2.6 |
| GDP at factor cost | 10,45,861 | 11,38,286 | 12,26,339 | 8.8 | 7.7 | -1.1 |
| QUARTERLY ESTIMATE OF GDP AT FACTOR COST
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| APRIL-JUNE (Q1) | |||||
| Industry | (Rs in crore) GDP for Q1 of | % Change Over previous year Q1 | ||||
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| 2009-10 | 2010-11 | 2011-12 | 2010-11 | 2011-12 | % Growth |
| agriculture, forestry & fishing | 2,37,751 | 3,00,298 | 3,50,405 | 26.3 | 16.7 | -9.6 |
| mining & quarrying | 35,880 | 45,519 | 52,074 | 26.9 | 14.4 | -12.5 |
| manufacturing | 2,05,874 | 2,43,533 | 2,77,193 | 18.3 | 13.8 | -4.5 |
| electricity, gas & water supply | 22,480 | 25,342 | 27,423 | 12.7 | 8.2 | -4.5 |
| construction | 1,17,722 | 1,40,084 | 1,55,080 | 19 | 10.7 | -8.3 |
| trade, hotels, transport & communication | 3,21,706 | 3,87,399 | 4,66,959 | 20.4 | 20.5 | 0.1 |
| financing, insurance, real estate & business services | 2,42,192 | 2,93,512 | 3,49,665 | 21.2 | 19.1 | -2.1 |
| community, social & personal services | 1,85,058 | 2,24,023 | 2,58,325 | 21.1 | 15.3 | -5.8 |
| GDP at factor cost | 13,68,663 | 16,59,708 | 19,37,123 | 21.3 | 16.7 | -4.6 |
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