Indian economy VS

Mexican economy

Mexican EconomyBackground-o The Mexican economy is the 13th largest economy in the world, according to the world bank

oThe economy contains rapidly developing modern industrial and service sectors, with increasing private ownership.

oRecent administrations have expanded competition in ports, railroads, telecommunications, electricity generation, natural gas distribution and airports, with the aim of upgrading infrastructure.

oAs an export-oriented economy, more than 90% of Mexican trade is under free trade agreements (FTAs) with more than 40 countries, including the European Union, Japan, Israel, and much of Central and South America.

oAccording to the Forbes Global 2000 list ,in 2008, Mexico had 16 companies in this list. oMexico's labor force of 78 million has been consistently ranked as the most productive per capita in the world for several years and the WTO rank Mexican workers as the hardest working in the world.

HISTORYoMexican president Porfirio Díazbrought unprecedented economic growth during the last quarter of the nineteenth century. oThis growth was accompanied by foreign investment and European immigration, the development of an efficient railroad network and the exploitation of the country's natural resourcesoAnnual economic growth between 1876 and 1910 averaged 3.3%.Political repression and fraud, as well as huge income inequalities exacerbated by the land distribution system

oThe Mexican Revolution(1910–1917), an armed conflict that drastically transformed Mexico's political, social, cultural, and economical structure during the twentieth century.

oThe war left a harsh toll in the economy and population during this period.

oThe period from 1930 to 1970 was dubbed by economic historians as the "Mexican Miracle", a period of economic growth.

Year GDP1900–1929 3.4%

1929–1945 4.2%

1945–1972 6.5%

1972–1981 5.5%

1981–1995 1.5%

1995–2000 5.1%

2000–2011 1.6%

Components of the economy

oThe service sector is the largest component of GDP at 70.5%, followed by the oIndustrial sector at 25.7%. oAgriculture represents only 3.9% of GDP.(2006.est) oMexican labor force is estimated at 38 million o18% is occupied in agriculture, o24% in the industry sector and o58% in the service sector (2006 est.).

Agriculture and food production

Product World Rank

Avocados 1Onions and chayote 1 Limes and lemons 1Sunflower seed 1 Dry fruits 2 Papaya 2Chicken meat 3

Automobile Industry• The "Big Three" (General Motors, Ford and Chrysler) have been

operating in Mexico since the 1930s• Other giant companies are Volkswagen, Nissan,

Toyota, Honda, BMW, and Mercedes-Benz• One of the leading domestic automobile Company is Mastretta

which builds sports car (Mastretta MXT).• Vehizero that builds hybrid trucksElectronic Industry • Mexico has the sixth largest electronics industry in the world • Mexico is the second largest exporter of electronics to the United

Sates where it exported $71.4 billion

•Mexican electronics industry, representing 25% of Mexico's electronics export revenue• Some of the giants companies are Sony, Toshiba, Samsung, Sharp, LG etc.• Since 2008 Mexico has been the third largest manufacturer of mobile phones after China and South Korea with companies• Some of the companies are Zonda ,Foxconn, Nokia, Blackberry etc.

Some other domestic companies.• Cemex, the worlds largest construction company and the third largest cement producer.

•Mexico is the third largest manufacturer of computers in the world with both domestic companies such as Lanix, Texa, Meebox, Spaceit, Kyoto.•foreign companies such as Dell, Sony, HP, Acer , Compaq etc .Energy and mineral resources

•Mexico is the sixth-largest oil producer in the world, with 3,700,000 barrels per day•Pemex, the public company in charge of administering research, exploration and sales of oil, is the largest company in Mexico, and the second largest in Latin America

ServicesTourism-•Tourism is one of the most important industries in Mexico. It is the fourth largest source of foreign exchange for the country. Mexico is the eighth most visited country in the world (with over 20 million tourists a year).

Banking system•According to the IMF the Mexican banking system is strong, in which private banks are profitable and well-capitalized.•The acquisition of Banamex, one of the oldest surviving financial institutions in Mexico, by Citigroup was the largest US-Mexico corporate merger, at US $12.5 billion

TradeExports $298.5 billion (2010 est.)[4]

Export goods automobiles, electronics, televisions, computers, mobile phones, LCD displays oil and oil products, silver, fruits, vegetables, coffee, cotton

Main export partners US 73.5%, Canada 7.5% (2010)

Imports $301.5 billion (2010 est.)[4]

Import goods metalworking machines, steel mill products, agricultural machinery, metals, repair parts for motor vehicles, aircraft, and aircraft parts, oil production equipment

Main import partners US 60.6%, China 6.6%, South Korea 5.2% (2010)

Problems faced in Mexican Economy

•Regional Disparities

•Income inequality

•Remittances

•Poverty

Free trade agreements

•Mexico has signed 12 free trade agreements with 44 countries:•Some of those are •the North American Free Trade Agreement (NAFTA) (1994) with the United States and Canada.•Free Trade Agreement with Costa Rica (1995)•Free Trade Agreement with Bolivia (1995)•Free Trade Agreement with Nicaragua (1998)•Free Trade Agreement with the European Union (2000)•Free Trade Agreement with Japan (2005)

Indian economyBackground

•The economy of India is the 9th largest in the world by nominal GDP and the 4th largest by purchasing power parity (PPP)•The country's per capita GDP (PPP) was $3,408 (IMF, 129th in the world) in 2010, making it a lower-middle income economy.•India is the 17th largest exporter and 11th largest importer in the world•Economic growth rates are projected at around 7.5%-8% for the financial year 2011-2012.

Colonial period (1773–1947)

o Calcutta was the economic hub of British India, saw increased industrial activity during World War II.

o Company rule of taxation and agricultural policies in India tended to promote commercialization of agriculture with a focus on trade, resulting in decreased production of food and destitution of farmers, and in short, led to numerous famines.

o The economic policies of the British caused a severe decline in the handicrafts and handloom sectors.

• After the removal of international restrictions by the Charter of 1813, Indian trade expanded substantially and over the long term showed an upward trend.

• It led to significant transfer of capital from India to England, massive drain of revenue rather than any systematic effort at modernization of the domestic economy.

• However, at the end of colonial rule, India inherited an economy that was one of the poorest in the developing world which faced problems like

• (a) Industrial development stalled, • (b) agriculture unable to feed a rapidly growing population, • (c) largely illiterate and unskilled labour force (d)extremely

inadequate infrastructure.

Pre-liberalisation period (1947–1991)

Domestic policy tended towards protectionism, with a strong emphasis on (a) import substitution, (b) industrialization (c) a large public sector (d) central planning .

Five-Year Plans of India resembled central planning in the Soviet Union.

•Development in the field Steel, mining, machine tools, telecommunications, insurance, and power plants.

•The policy of concentrating simultaneously on capital- and technology-intensive heavy industry and subsidizing manual, low-skill cottage industries.

•Green Revolution in India

Post-liberalisation period (since 1991)

•Prime Minister Narasimha Rao, along with his finance minister Manmohan Singh, initiated the economic liberalisation of 1991.

•By the turn of the 20th century, India had progressed towards a free-market economy, with a substantial reduction in state control of the economy and increased financial liberalisation

SectorsIndustry and services•India has one of the world's fastest growing automobile industries•Industry accounts for 28% of the GDP and employ 14% of the total workforce•liberalized the FDI regime, improved infrastructure and led to an expansion in the production of fast moving consumer goods•Textile manufacturing is the second largest source of employment •agriculture and accounts for 20% of manufacturing output, providing employment to over 20 million people

•India is 13th in services output•The services sector provides employment to 23% of the work force and is growing quickly, with a growth rate of 7.5% in 1991–2000•The share of the Indian IT industry in the country's GDP increased from 4.8 % in 2005–06 to 7% in 2008. In 2009, seven Indian firms were listed among the top 15 technology outsourcing companies in the world.•Mining forms an important segment of the Indian economy, with the country producing 79 different minerals (excluding fuel and atomic resources) in 2009–10.

•Organized retail supermarkets accounts for 24% of the market as of 2008•Agriculture•India ranks second worldwide in farm output•Agriculture accounted for 15.7% of the GDP in 2009–10, employed 52.1% of the total workforce

Banking and finance•India's gross domestic saving in 2006–07 as a percentage of GDP stood at a high 32.7%.•The public sector banks hold over 75% of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively.

Energy and power•India's oil reserves meet 25% of the country's domestic oil demand•As of 2010, India imported about 70% of its crude oil requirements

TradeExports $225.6 billion (2010 est.)

Export goods petroleum products, precious stones, machinery, iron and steel, chemicals, vehicles, apparel

Main export partners US 12.6%, UAE 12.2%, China 8.1%, Hong Kong 4.1% (2010)

Imports $357.7 billion (2010 est.)

Import goods crude oil, precious stones, machinery, fertilizer, iron and steel, chemicals

Main import partners China 12.4%, UAE 6.5%, Saudi Arabia 5.8%, US 5.7%, Australia 4.5% (2010)

Problems faced by Indian Economy

1. Poverty2. Lack of infrastructure3. Unemployment4. Economic Disparities5. Corruption

Business efficiency 59.053 41.483

Ranked 33rd. 42% more than Mexico

Ranked 47th.

Economic freedom 1.5 2.2

Ranked 123rd. Ranked 59th. 47% more than India

Economic importance

2.1 5.6

Ranked 25th. Ranked 14th. 167% more than India

GDP $4,164,000,000,000.00 $1,149,000,000,000.00

Ranked 5th in 2006. 3 times more than Mexico

Ranked 14th in 2006.

Gross National Income

$477,000,000,000.00 $550,000,000,000.00

Ranked 12th. Ranked 10th. 15% more than India

Income category Low income Upper middle income

Poverty > Share of all poor people

41.01 % of world's poor 1.43 % of world's poor

Ranked 1st. 28 times more than Mexico

Ranked 9th.

Technological achievement

0.2 0.39

Ranked 59th. Ranked 30th. 95% more than India

Poverty > Share of all poor people

41.01 % of world's poor 1.43 % of world's poor