INDIA BUSINESS WORLD - MARCH 2006
THE MONTH THAT WAS

INDIAN ECONOMY WAS THE FOURTH LARGESTCONTRIBUTOR TOWARDS INCREMENTAL GLOBAL GDP GROWTH IN '05

The blinding rise of the Sensex is backed by some sound fundamentals emanating from the real economy. The Indian economy was the fourth largest contributor towards incremental global GDP growth in '05 . The US tops the list followed by China and Japan. It is also encouraging to note that India has edged out industrial heavyweights like Germany, UK, and France, in terms of incremental GDP contribution in ‘05.

An ETIG analysis has found that the Indian economy has contributed about 3.2% of total incremental global growth recorded in the '05.ttThe analysis computed the global GDP composition, and the global GDP growth composition ratios respectively. The global GDP composition measures the absolute size of an economy with respect to the absolute size of world GDP, whereas the global GDP growth composition measures the incremental growth recorded by an economy with respect to the overall incremental growth in world GDP as a whole, in a particular year.The global GDP composition growth measures the total amount that a country contributed towards global GDP growth in a particular year. .