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INDIAN ECONOMY: GLOBAL PERSPECTIVES

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What is an Economy?

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Why do we need to study Economics?

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What do you mean by developed and

developing economy?

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What type of Economy is Indian Economy?

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Whatare the characteristics of Indian Economy?

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What is so unique about Indian Economy?

Forany developing country

For India

GDP

Adriculture-30%

Industry-

40%

Servicesector-30%

GDP

Agriculture-20%

Industry17.5%

Service

sector-62,5%

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Some more informationabout Indiaand Indian

Economy

Federal State with 28 Statesand 7 Union Territories

Trillion dollar economy

Forex Reserves USD

287.37 billion Unemploymentrate 10.7%

Main Industries:Telecommunications,textiles, chemicals, food

processing, steel,transportation equipment,cement, mining, etc.

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Major Export Partners: U.S. UAE, China,

Major Import Partners China, Saudi Arabia, U.S.,

UAE etc.

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Indian Economy- 1947 to Present

After Independence, India decided to gofor planned Economy

The planning commission was setup with

the Prime Ministeras the Chair person.2nd , 6th and 8th Five Year plans areimportant

There are achievements as well as failures

of Indias plans.

Eleventh Five Year Plan is in progress.

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Indian Economy opened up in 1991.

Indian Economy was facing major Balance Of

Payment Problem.

Indiahad to take loans from IMF & World

Bank

India followed the model of LPG in 1991-

Liberalisation, Privatisationand Globalisation

New Industrial Policy and New Trade Policy

were announced.

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Comparison between a Developing Economy ( India)

& a Developed Economy ( U.S)

Country Population Land mass

India 1.15 b 3.2 m sq km

USA 0.30 b 9.6 m sq km

Can India follow the same strategy for

developmentas followed by U.S. ?

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Economic reforms and New Economic Policy( NEP)

Objectives of NEP were-

NEP

Liberalisation

Privatisation

Globalisation

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Ownership

measure

10O % transfer of ownership

Throughjoint venture-partial transferto private ownership.

OrganisationalMeasure

Leasing

Financial & basic restructuring

Operational

Measure

Grant of autonomy to PSEs

To ensure privatisation following measures

were taken-

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De-licensing

No. of PSEs werereduced

MRTP Act was amended

To ensure liberalisation following measures were taken

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RECENT DEVELOPMENT AND INDIAN

ECONOMY

Impact ofglobal Meltdown was less

compared to other western countries.

Regulated Banking System helped India.

The revival ofthe World Economy was led by

Indiaand China.