Indian Economy BBA Sem 1 Unit-1

1. Indian Economic System
By Radhika Gohel

2. What is
?

3. Main types of econoMy

4. Macro econoMics

5. Features oF IndIan
economy
1. India as An Underdeveloped Country
2. India as a Developing Country

6. IndIa as an
underdeveloped country
1) Low per capita income:
o
o
o
o
o
At the time of independence in early 1950s
Colonial rule
After independence govt.’s role
Still underdeveloped
Though per capita income increases over the
years
o In 2008 GNP per capita was $ 2,960 & in 2013
$ 3,944.30

7. cont.
2) Inequitable distribution of Income:
o Income of small section much larger
o Income of large section much smaller
3) High incidence of Poverty:
o
o
o
Natural outcome of inequalities
It was discovered in 6th Five Year Plan widespread
problem 50.7% rural area 40.3% in urban
Poverty in 2009-10 was 29.8% & in 2011-12 it was 21.9%
(below poverty line)

8. cont.
o A 2013 UN report stated that a third of the worlds
poorest people live in India.
o India is on track to cut poverty by half by 2015 in
1990 it was 51%.
4) Predominance of agriculture:
o Occupational distribution of population in India
not at all good.
o In 1951 70% of population dependent
o Very small portion to GDP in 2008-09 17%

9. Cont.
5) Rapid Population Growth:
o Growing rate
o In 2001 it was 1,029,000,000 (1,029 millions)
which was 4,39,000,000 (439 millions) in 1961.
o Increase rate is 2.14 % per annum today
o Today
6) Unemployment:
o Now-a-days educated unemployment
o Problem of urban unemployment has 2 forms:

10. Cont.
i.
ii.
Industrial unemployment
Unending demand for white collar jobs
7) Technological Backwardness
8) Lack of Entrepreneurs

11. IndIa as a developIng
Country
• Still India is an underdeveloped country but this is not
an adequate description.
• India’s economy has suffered…
• After independence…

12. two faCets
1) Quantitative
– National Income Trend
• Rise in NNP
• Rise in per Capita Income

13. Cont.
2) Structural changes
– Significant changes in sectoral distribution of
domestic product
– Slow changes in employment structure
– Growth of basic capital goods industries
– Progress in the banking & financial sector

15. Guidelines for
AssiGnment-1
• Use single side printed papers only
• Group wise 1 submission only
• Make it perfect neither much longer nor very
short
• Make it more creative rather in detail/depth by
using charts, tables & more use of graphical
presentation with current data
• Must contain at least 15 pages otherwise
rejected