Introduction

GDP (gross domestic product) is one of the major signs that can be used to measuring the health of Australian economy. It is considered as a best way to evaluate economy of a country and includes all that are produced by all the organizations and peoples that are in the Australia (Fatai.et.al., 2004). GDP is possibly the most essential of every economic statistics because it makes efforts to capture the state of economy. It signifies the total dollar amount of all products and services formed over a particular time period. Generally, GDP is stated as an evaluation to the earlier quarter or year. It includes all public and private consumptions, investments and export minus export and outlays of government which arises within a defined province. Simply, GDP is defined as the calculation of Australian overall economic operations. It could be utilized to compare the production of Australia and Indian economy with a high degree of correctness (Lenzen.et.al., 2006). The development rate of GDP is considered as the percent increment in the output of economy from quarter time to quarter and it illustrates the development of economy on the country. Many countries uses real GDP to eliminate the impacts of inflation. Calculation of GDP is estimation for all measures in a big market undertaking in every three months. HI5003 economics for business assignment Help will compare Australia economy with Indian economy and is also going to discuss their GDP for last 2 to 5 years and factors affecting their GDP.

business-economics, Assignment Help, Assignment Help Australia

Discussion

In the Australian economy it has been observed that there is continuous growth and features lower unemployment, public debt is very low, strong and stable financial management and contained inflation. It has been identified that by the period of 2012 Australian economy has experienced 20 years of continued growth that has averaged 3.5% a year. On the other hand, Indian economy is seen to be an open market economy. By the period of 1990 there has been beginning of various industrial deregulations, state government enterprises were turned to privatization and there was reduced control over foreign trade and investment. In Australia there was increase in demand for resources and energy from Asia and china. This has created growth and investments in the commodity exports (Joshi.et.al., 2012). But in case of India it has been seen that there is diversity in the economy and it encompasses traditional village farming, modern agriculture, handicrafts etc. The majority of their workforce was seen to be in the field of agriculture. However, services have been the major source for the economic growth that accounts for 2-3rd output of India with less than 1-3rd of its labor force.

It has been identified that higher Australian dollar has laid down affect on the manufacturing sector and service sector is seen to be highest sector of the economy and comprises of 70% of GDP and 75% of Jobs. However, they have not been affected by global financial crisis as their banking system has remained strong and nation is able to keep their inflation in control. In regard to India it has been seen that it has capitalized their larger population of English seeking for becoming a major exported of information technology services, outsourcing services and software workers. But in the period of 2011 it has been seen that India economic growth started slowing down and it was all due to lower government investment.

In the recent period it has been seen that Australian economy has been benefited from growth in their trade as it was all due to rising global increase in commodity prices. Economy has seen to be one of the greatest exporters of natural resources, energy and food. The nation has got large amount of abundant and natural resources and has been attracting higher level of foreign investments (Dyster and Meredith, 2012). Even it can be seen that economy has got extensive reserves of iron, uranium, renewable energy, cooper, coal and gold. There has been significant investment in the US$40 billion Gorgon liquid natural gas that is going to the resources sector of the nation. Further, in Indian economy it can be seen that higher prices of crude oil has laid down effect on the fuel subsidy of government expenditure. This has contributed towards higher fiscal deficit and poor current account deficit.

Australia open economy has laid down minimal restrictions on their import activities of goods and services. The opens of the nation has enhanced their production, stimulated growth and also made the economy flexible and dynamic. It has also been identified that Australian economy has been laying down their active role in world trade organization, G20 and other forums of trade. In the period of 2012 government of India made an announcement concerning additional reforms and measures of reducing deficit and it has reversed India slowdown (World Bank database (India). 2015). This has also allowed higher level of participation of foreign direct investment within the economy. Even India has got positive medium term growth all due to their young population and lower dependency ratio, proper saving, rates of investments and increased integration of global economy.

The various economic indicators that can be study in order to measure the increase and decrease of GDP has been compared among the countries Australia and India. This will be indicating the impact or the relationship that has been laid down by these indicators on the overall GDP of the country. The economic principles such as export, unemployment and inflation have been studied in this regard for Australia and India.

Table 1: Exports within Australia and Indian economy

Year

Australia

Exports of goods and services (annual % growth)

India Exports of goods and services (annual % growth)

2010

5.139894

19.6164

2011

0.928256

15.57528

2012

5.003736

6.655065

2013

5.567997

7.276883

2014

5.825429

-0.76051

Exports within Australia and Indian economy, Assignment Help, Assignment Help Australia

From the above (Table and Figure 1) it can be said that exports of Australia is seen to be stable and has been revolving around 5% annual growth. However, in the period of 2011 the export annual growth has declined up to (0.90%) and this percentage was seen to be lowest in the five years. But for the Indian economy it has been seen that there was fluctuation in the exports as data indicates that in the period of 2010 annual growth percentage stood at (19.61%) that year after year kept on declining. Even it can be said that exports of the Australian economy was better for the period of 2014 when compared within India as they had negative annual % growth in their exports.

Table 2: Inflation rate within Australia and Indian economy

Year	Australia Inflation (Consumer price index, annual %)	India Inflation (Consumer price index, annual %)
2010	2.845226	11.9923
2011	3.30385	8.857845
2012	1.76278	9.312446
2013	2.449889	10.90764
2014	2.487923	6.353195

Inflation rate within Australia and Indian economy, Assignment Help, Assignment Help Australia

The above (Table and Figure 2) indicates that Australian consumer price index annual % is seen to be lower when compared with Indian inflation rate. Even it can be seen that there is consistency in Australia inflation rate as in the period of 2010 it was (2.84%) and that for the period of 2014 was (2.48%). It shows that in Australian consumer purchasing power has remained stable for the last 5year period. However, there was step decline in the inflation rate of India. This is indicting that purchasing power of consumers within Indian economy will be rising.

Table 3: Unemployment % within Australia and Indian economy

Year	Australia Unemployment (% of total labor force)	India Unemployment (% of total labor force)
2010	5.2	10.2
2011	5.1	10.3
2012	5.2	10.7
2013	5.7	10.4
2014	6	10.4

Unemployment % within Australia and Indian economy, Assignment Help, Assignment Help Australia

From the above (Table and Figure 3) it can be interpreted that Australian unemployment % of total labor force and that of Indian economy seems to be stable. However, the % of unemployment labor force for Australian economy is seen to lower when compared within Indian economy as for the period of 2014 this % stood at 6% for Australia and 10.4% for India. It shows that in the Australian economy there are lesser unemployed individuals when compared with Indian economy.

Table 4: GDP growth % within Australia and India

Year	Australia GDP (Growth annual %)	India GDP (Growth annual %)
2010	2.018182	10.25996
2011	2.379561	6.638353
2012	3.63272	5.081418
2013	2.440049	6.899217
2014	2.499851	7.286253

GDP growth % within Australia and India, Assignment Help, Assignment Help Australia

The above (Table and Figure 4) indicates that GDP growth % within Australia is seen to be stable around the percentage of 2. However, that GDP growth % for Indian economy is seen to be declining. The data for the period of 2010 regarding GDP for Australian and Indian economy stood at (2.01%) and (10.25%). But these figures in the period of 2014 for Australia were (2.49%) and that for India was (7.28%). From these figures it can also be said that annual GDP growth % was seen to higher in the Indian economy when compared with Australia.

Table 5: Correlation of Economic indicators of Australia

	*GDP (annual %)*	*Exports of goods and services (annual % growth)*	*Inflation (Consumer price index, annual %)*	*Unemployment (% of total labor force)*
GDP (annual %)	1
Exports of goods and services (annual % growth)	0.128111	1
Inflation (Consumer price index, annual %)	-0.81488	-0.67398	1
Unemployment (% of total labor force)	-0.13716	0.620177	-0.22425	1

The above correlation (Table 5) indicates that there is a lower positive relationship between GDP (annual %) of Australia towards their Exports of goods and services (annual % growth) and the correlation value between these variable stood at (0.128). it shows that there is certain amount of relationship between the power and authority on their GDP growth. However, GDP (annual %) of Australia has got negative correlation with Inflation (Consumer price index, annual %) and Unemployment (% of total labor force). This shows that there is inverse relationship between these variables as it can be said that with increase in one variable there will be decrease in the other variable or vice-versa. Thus, in this respect it can be said that with increase in unemployment there will be lower GDP growth of the Indian economy.

Table 6: Correlation of Economic indicators of India

	*GDP (annual %)*	*Exports of goods and services (annual % growth)*	*Inflation (Consumer price index, annual %)*	*Unemployment (% of total labor force)*
GDP (annual %)	1
Exports of goods and services (annual % growth)	0.550062	1
Inflation (Consumer price index, annual %)	0.473056	0.738452744	1
Unemployment (% of total labor force)	-0.84322	-0.580406356	-0.30444	1

The correlation (Table 6) shows that there is a positive relationship between GDP (annual %) of India and towards their Exports of goods and services (annual % growth) and Inflation (Consumer price index, annual %). The value of correlation in this respect was seen to be around (0.55) and (0.47). This shows that there is a direct relationship between these variables. From the analysis it can be said that with increase in exports within India there will be increase in its GDP. Further, it can also be seen that inflation rate pertaining to consumer price index has also got positive relationship within the Indian economy. However, with respect to GDP (annual %) of India against Unemployment (% of total labor force) showed a negative relationship. There is an inverse relationship between these variables and in this respect it can be said that with increase in unemployment there will be lower GDP growth of the Indian economy.

Table 7: Regression analysis of Economic indicators of Australia

*Regression Statistics*
Multiple R	0.99609
R Square	0.992195
Adjusted R Square	0.96878
Standard Error	0.107807
Observations	5
*ANOVA*
	df	SS	MS	F	*Significance F*
Regression	3	1.477433	0.492478	42.37365	0.11234
Residual	1	0.011622	0.011622
Total	4	1.489055
	*Coefficients*	*Standard Error*	*t Stat*	*P-value*	*Lower 95%*	*Upper 95%*
Intercept	6.844297	0.885344	7.730667	0.081895	-4.40506	18.09365
Exports of goods and services (annual % growth)	-0.25305	0.047619	-5.31402	0.118415	-0.8581	0.352008
Inflation (Consumer price index, annual %)	-1.46523	0.136486	-10.7354	0.05913	-3.19945	0.268984
Unemployment (% of total labor force)	0.119905	0.186395	0.643287	0.636082	-2.24846	2.488274

(Regression analysis for Australian economy)

Y=α+βX1+ β21+ βX3…………………………………………………..1

Y= GDP (annual %)

X1= Exports of goods and services (annual % growth)

X2= Inflation (Consumer price index, annual %)

X3= Unemployment (% of total labor force)

The r-square value is (0.99) and it shows that variable selected for the model is highly efficient. Then ANOVA table indicates that f value is greater than significance value and in this respect it can be said that independent variable selected for presenting the dependent variable is appropriate. The coefficient value of independent variable indicates that with 1 unit change in Exports of goods and services (annual % growth) there will be decline of GDP (annual %) by (-0.25305) and this is seen to be similar concerning Inflation (Consumer price index, annual %) as in this variable if there will be 1 unit change then it is going to pull down GDP (annual %) by (-1.46523). However, with respect to Unemployment (% of total labor force) it can be said that if there will be one unit in its change then it is going to increase the overall GDP of Australia by (0.119905). Hence, in this respect it can be said that if there will be stability in the Australian Exports of goods and services (annual % growth) and Inflation (Consumer price index, annual %) then it is going to decrease their GDP growth of economy. On the other hand, if Unemployment (% of total labor force) then it is going to decrease then GDP of Australia will grow.

Table 8: Regression analysis of Economic indicators of India

*Regression Statistics*
Multiple R	0.882972
R Square	0.779639
Adjusted R Square	0.118555
Standard Error	1.772647
Observations	5
ANOVA
	df	SS	MS	F	*Significance F*
Regression	3	11.11738	3.705795	1.179334	0.574951
Residual	1	3.142277	3.142277
Total	4	14.25966
	*Coefficients*	*Standard Error*	*t Stat*	*P-value*	*Lower 95%*	*Upper 95%*
Intercept	95.0281	62.01005	1.532463	0.368069	-692.884	882.9404
Exports of goods and services (annual % growth)	-0.05471	0.196754	-0.27805	0.827352	-2.5547	2.445291
Inflation (Consumer price index, annual %)	0.335307	0.626738	0.535004	0.687256	-7.62815	8.298767
Unemployment (% of total labor force)	-8.69675	5.972486	-1.45614	0.383103	-84.5844	67.19088

Y=α+βX1+ β21+ βX3…………………………………………………..2

Y= GDP (annual %)

X1= Exports of goods and services (annual % growth)

X2= Inflation (Consumer price index, annual %)

X3= Unemployment (% of total labor force)

The r-square value is (0.77) and it shows that variable selected for the model is highly efficient. Then ANOVA table indicates that f value is greater than significance value and in this respect it can be said that independent variable selected for presenting the dependent variable is appropriate. The coefficient value of independent variable indicates that with 1 unit change in Exports of product and services (annual % growth) there will be decline of GDP (annual %) by -0.05471) and this is seen to be similar concerning Unemployment (% of total labor force) as in this variable if there will be 1 unit change then it is going to pull down GDP (annual %) by -8.69675). However, with respect to Inflation (Consumer price index, annual %) it can be said that if there will be one unit in its change then it is going to increase the overall GDP of India by (0.335307). Hence, in this respect it can be said that if there will be Decrease in the Indian Exports of goods and services (annual % growth) and Unemployment (% of total labor force) then it is going to decrease their GDP growth of economy. On the other hand, if Inflation (Consumer price index, annual %) is going to decrease then GDP of Indian economy will grow.

The above analysis indicates that Australian and Indian economy has been affected by the factors such as Exports of goods and services (annual % growth) and Unemployment (% of total labor force) and Inflation (Consumer price index, annual %). Further, if these economies want to bring out improvement in their GDP growth then they have to laid down appropriate focus on these factors for improving overall growth of the country.

Conclusion

From the study it can be concluded that in Australia there was increase in demand for resources and energy from Asia and china. Study also found that there is inverse relationship between Inflation (Consumer price index, annual %) and Unemployment (% of total labor force) as it can be said that with increase in one variable there will be decrease in the Inflation (Consumer price index, annual %) and Unemployment (% of total labor force). Thus, in this respect it can be said that with increase in unemployment there will be lower GDP growth of the Indian economy. This has created growth and investments in the commodity exports.. Even it has been found that Australian and Indian economy has been affected by the factors such as Exports of goods and services (annual % growth) and Unemployment (% of total labor force) and Inflation (Consumer price index, annual %).

References

Journals
Dyster, B., & Meredith, D. (2012). Australia in the global strategy continuity and change. Cambridge University Press.
Fatai, K., Oxley, L., & Scrimgeour, F. G. (2004). Modelling the causal relationship between energy consumption and GDP in New Zealand, Australia, India, Indonesia, The Philippines and Thailand. Mathematics and Computers in Simulation, 64(3), 431-445.
Joshi, M., Singh Ubha, D., & Sidhu, J. (2012). Intellectual capital disclosures by Indian and Australian information technology companies: A comparative analysis. Journal of Intellectual Capital, 13(4), 582-598.
Lenzen, M., Wier, M., Cohen, C., Hayami, H., Pachauri, S., & Schaeffer, R. (2006). A comparative multivariate analysis of household energy requirements in Australia, Brazil, Denmark, India and Japan. Energy, 31(2), 181-207.

Online
World Bank database (India). 2015. [Online]. Accessed from:< http://search.worldbank.org/all?qterm=india+GDP&language=EN&op=> [Accessed on: 17th December 2015]
World Bank database (Australia). 2015. [Online]. Accessed from:< http://search.worldbank.org/all?qterm=australia&language=EN&op=> [Accessed on: 17th December 2015]

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