India Economy

India Economy, the third largest economy in the world, in terms of purchasing power is going to touch new heights in coming years. As predicted by Goldman sachs, the global investment bank by 2035 India would be the third largest economy of the world. Just after US and China. It will growth 60% of size of US economy. This booming economy of today has to  pass through many phases before it can achieve the current milestone of 9% GDP
 
Union Budjet 2011-12:
              The Union Budget for 2011 -2012 will be presented on February 28. Given the inflationary environment and spate of scams country is embroiled in, 2011-12 Union Budget provides a perfect opportunity to the government to allay the anxieties of common man.
               The budget may propose an increase the income tax exemption limit to provide some relief to the taxpayer from inflation. Income tax relief can be provided to lower income brackets. There would be relaxation in individual tax slabs with a likely hike in income tax exemption limit.
               This will be a natural move to align with provisions of DTC. This could take the form of raising the tax exemption limit from the current Rs 1, 60,000 to a higher income slab Rs. 2, 00, 000. Presently, income up to Rs 1, 60,000 for men and Rs 1, 90,000 and Rs 2, 40,000 for women and senior citizens is exempted from tax. DTC; GST implementation is unlikely before April, 2012. 

             2011-12 Indian budget can see an increase in the service tax to boost the revenues. The service Tax net is expected to increase either through the addition of new services or the expansion of the scope of the existing services. New set of services that could be bought under the ambit of services tax are CA audit, corporate finance and accounts services, health and education services, legal services, postal services, gas and water distribution, hospital OPD services, retail services, research and experimental development etc.

Gross Domestic Product

        The gross domestic product (GDP) is one the primary indicators used to gauge the health of a country's economy. It represents the total dollar value of all goods and services produced over a specific time period - you can think of it as the size of the economy. Usually, GDP is expressed as a comparison to the previous quarter or year. For example, if the year-to-year GDP is up 3%, this is thought to mean that the economy has grown by 3% over the last year.

Measuring GDP is complicated (which is why we leave it to the economists), but at its most basic, the calculation can be done in one of two ways: either by adding up what everyone earned in a year (income approach), or by adding up what everyone spent (expenditure method). Logically, both measures should arrive at roughly the same total.