Some Facts about our Economy to be proud of and some issues to work on.

1. Salient Features of Indian
Economy
Presented By :
Aabhas Rastogi (11DCP053)
Paras Arora (11DCP086)

3. POST 1950
• Agriculture
Contributed 55% of
GDP
• Annual Growth Rate
3.4%

5. 1991-2000 ERA

8. 2000-2010 ERA
INDIA : The Global outsourcing
Destination

9. • 2.3 million jobs created.
• Annual Growth of the IT sector
5.4%.
• IT Export Revenue $50.1 Billion

10. • Indian Retail is estimated at US $600
Billion.
• India is ranked first on the Global retail
development index 2009.

12. • Formula 1 in Oct 2010
• Investment : $400 Million
• Attracted 95 thousand
Spectators

14. • Rupee Symbol 2010
• D Udaya Kumar

15. • Increase
Consumer
Confidence
• Boost to Economy
thourgh Govt.
Spending

16. 2011

17. Why India? – Quote Unquote
―India has evolved into
one of the world's ―I have never seen
―India is now truly a leading technology India so
land of opportunity‖. centers―. dynamic, vibrant and
full of business
opportunities‖.
Craig Barrett
Intel
John Redwood Corporation
By 2032, India will be Peter Loescher
Economic
Competitiveness
among the three President and
Chief Executive
Policy Group, UK largest economies in Siemens
the world.
―The Indian market has two
―We came to India for the
core advantages - an
costs, stayed for the
BRIC increasing presence of
quality and are now
Report, Gold multinationals and an upswing
investing for innovation‖.
man Sachs in the IT exports‖.
―India is a
Travyn
- DanScheinman, Cisco developed country ―India is a very exciting
Rhall,
System Inc. as told to as far as intellectual market and the luxury ACNielsen
Business Week, August capital is car segment is growing
2005 concerned‖. exponentially here‖.
Jack Welch Mr Paul de Voijs
General Electric Managing Director 17
Volvo Car India

18. Salient Features of The Indian
Economy

19. Pointers
• Area : 7rd largest country (3287263 sq. Km.)
• Population Density : 382 persons per sq. km.
• Currency : Rupee = 100 Paise
• PER CAPITA GDP (PPP) : $3,408

20. • GDP 9th largest ($1.632 trillion)
• Exports 17th largest ($225.6 billion)
• Import 11th largest ($357.7 billion)

21. • Trade Balance : -$82 billion
• Forex $297.3 billion
• FDI $35.6 billion

22. • External Debt : $238 billion
• Credit Rating BBB-
• BOP : $2031 Billion

23. India Nominal GDP Rate
Fiscal year end March
1800
1600
1400
1200
Billion USD
1000
800
600
400
200
0
2005 2006 2007 2008 2009 2010
Billion Dollars 724.0166667 841.8964706 977.7305882 1187.792128 1284.366863 1750.654889
Source : Ministry of Finance, Annual Report

24. As Percentage of GDP
12.00%
10.00%
0.00%
2.00%
4.00%
6.00%
8.00%
Year
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
GDP Growth rate
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
India GDP Growth Rate
GDP Growth rate

25. World GDP Share
GDP Share
1% United States
2.9% 2% Japan
2.94%
India
3% 19%
Middle East
Germany
3.96%
Russia
Brazil
4.97%
United Kingdom
5.82%
France
5.4%
Japan Other
Pakistan
India
Source : World Economic Outlook , IMF

26. Sector Wise GDP
Services(55.2%)
Industry (26.3%)
Agriculture(18.5%)

27. Key Indicators of Indian Economy

28. INDIAN ECONOMY
 SEVENTH Largest in size.
 SECOND Most Populous country in the
world.
 NINTH largest in the world by nominal
GDP.

29.  THIRD Largest by purchasing power
parity (PPP).
 SECOND fastest growing economy in the
world.

30. GOLDMAN SACHS PREDICTIONS
 India will become THIRD largest economy of
the world by 2032 behind US and China.
 India's GDP in current prices will overtake
 France and Italy by 2020.
 Germany, UK and Russia by 2025.
 Japan by 2035.

31. INDIAN ECONOMY
 India is a mixed economy
capitalist market economy
socialist command economy

32.  India's economy is diverse and
encompasses
–agriculture
– handicrafts
–Textile
–Manufacturing
– Multitude of services.

33.  Two-thirds of the Indian workforce still
earn their livelihood through agriculture.
 Services are a growing sector and are
playing an increasingly important role in
India's economy.

34. FEATURES OF INDIAN
ECONOMY
 India is a major exporter of highly-skilled workers in
software and financial services, and software engineering.
 Following sectors are showing strong potential with higher
growth rates.
 Manufacturing  Nanotechnology
 Pharmaceutical  Telecommunication
 Biotechnology  Shipbuilding
 Aviation
 Tourism

35. NATURAL RESOURCES
 India's total cultivable area is
1,269,219 km² (56.78% of total land
area)
 India has a total water surface area of
314,400 km² and receives an average
annual rainfall of 1,100 mm.

36.  Irrigation accounts for 92% of the water
utilization, and comprised 380 km² in
1974, and is expected to rise to 1,050 km²
by 2025
 In 2008, India had the world's THIRD
largest fishing industry.

37. • India's oil reserves, found in
– Bombay High off, the coast of Maharashtra,
– Gujarat,
– Rajasthan and
– in eastern Assam meet 25% of the country's
demand.

38. Sectors of Indian Economy

39. Agriculture
 Agriculture is the mainstay of
the Indian economy.
 Livelihood of almost two thirds
of the work force in the
country.

40. AGRICULTURE
 Agriculture accounts for approx. 18% of
India's GDP.
 Largest producer in the world of
milk
 cashew nuts, coconuts
tea
ginger
turmeric and black pepper

41. AGRICULTURE
 Second largest producer of
wheat,
rice,
 sugar,
 groundnut and
inland fish

42. AGRICULTURE
 World's LARGEST cattle population.
 THIRD largest producer of tobacco.
 India accounts for 10% of the world fruit
production with LARGEST in the
production of banana.

43. AGRICULTURE
 More than 52% of India's population
depend on agriculture for employment.
 Contributes 17.5% to GDP.

44. INDUSTRY
 India is FOURTEENTH in the world
in factory output.
 They together account for 27.6% of
the GDP.
 Employs 17% of the total workforce.

45. INDUSTRY
 Metal and machinery & transport
equipment industries are the two major
industries.
 Each one of these account for about one-
fifth of GVA(Gross Value Addition) in
the organized manufacturing sector.
 Chemical Industry accounts for about
13% of GVA of the total organized
manufacturing sector.

46. SERVICES
 India is FIFTEENTH in services
output.
 India stands out for the size and
dynamism of its services sector.

47. SERVICES
 Accounts for 55.2% share in GDP.
 Growing at 10% annually.

48.  Contributes to about 25% of total
employment.
 Over one-third of total exports.

49. Employment Distribution
of Service Sector
Primary Secondary Tertiary
0.00%
25.40%
55.90%
18.70%

50. RETAIL
 The Indian retail industry is the FIFTH
largest in the world by economic value.
 Accounts for about 15% of the GDP.

51. RETAIL
 Retail market is estimated to be US
$600 billion
 Has 3 year compounded growth rate of
46.64%.
 Indian retail industry is one of the fastest
growing industry in Indian economy.

52. RETAIL
 Until 2011,
Indian central government denied foreign
direct investment (FDI) in multi-brand retail.
Even single-brand retail was limited to 51%
ownership and a bureaucratic process

53. TELECOM SECTOR
 India has the third largest
telecommunication network in the world.
 The SECOND largest in terms of number
of wireless connections.
 India's broadband growth THIRD fastest
in the world.

54. TELECOM
 India added more than 2.5 million new
connections of broadband in 2010.
 Stands at 13th in the world in terms of
overall subscriber numbers as of 2011.

55. INVESTMENTS
 The Ernst & Young European
Attractiveness Survey 2006 has placed
India as the most preferred location for
call centres and back office functions.
 India also figured at number five among
the top 10 countries for research and
development centres, after
US,Canada, Germany, UK and France.

56. INVESTMENTS
 India has one of the highest exposures
to FII inflows among other emerging
economies.
 FIIs formed nearly 70% of foreign
investment flow, in China and Brazil the
percentage was 26% and
30%, respectively, in 2005.

57. BANKING SECTOR
 Prime Minister Indira Gandhi nationalized 14
banks in 1969, followed by six others in 1980
 Since then, the number of bank branches has
increased from 10,120 in 1969 to 1,15,910 in
2008
 Currently, India has 88 scheduled commercial
banks (SCBs) — 28 public sector banks, 29
private banks and 31 foreign bank

58. BANKING
 They have a combined network of over
53,000 branches and 17,000 ATMs.
 The public sector banks holds over
75% of total assets of the banking
industry.
 The private and foreign banks holding
18.2% and 6.5% respectively .

59. INFRASTRUCTURE
 Since independence, India has allocated nearly half of
the total outlay of the five-year plans for infrastructural
development.
 Invested about USD 500 billion in infrastructure:
 power,
 telecommunication,
 roads,
 railways and
 oil pipelines, in the five years ending March 2012.

60. POWER
 Fifth largest electricity generation capacity
in the world.
 Large transmission and distribution
network.
 Per capita electricity consumption
704kWh during 2007-08

61. POWER
• Currently, 7,200 MW installed capacity of
power generation from renewable sources.
• India has the target of adding a capacity of
75,000 mw during 2007-12, the 11th Plan
period.

62. EXPORTS
 India is the 17th largest exporter.
 India's exports were stagnant for the first
15 years after independence.
 India’s Exports amount to 22% of India’s
GDP.
.

63. EXPORTS
 Minerals constitute the single largest export
item, accounting for 16% of exports.
 India is leading exporter of
 Semi precious and precious stones,
 Vehicles and parts
 Electrical equipment
 and services.
 India’s main export partners are United
States, United Arab Emirates , China and
Hong Kong.

64. IMPORTS
 11th largest importer in the world.
 India is poor in oil resources and is
currently heavily dependent on coal
and oil imports for its energy needs.

65. IMPORTS
 Other imported products are:
 machinery,
 gems,
 fertilizers
 chemicals.
 Main import partners are UAE, China and
United States.

66. BALANCE OF PAYMENTS
• India has gradually been repaying its
debts.
 Since independence, India's balance of
payments on its current account has been
NEGATIVE.

67. BOP
 India's exports have been consistently
rising, covering 80.3% of its imports in
2002–03, up from 66.2% in 1990–91.
• The net capital flows increased
substantially to 3.8 per cent of GDP in
2009-10

68. Foreign Exchange Reserves
• Beginning from a low level of US$ 5.8
billion at the end of March 1991.
• India’s foreign exchange reserves
gradually increased to US$ 25.2 billion
March 1995.

69. • The reserves reached their peak at US$
314.6 billion at end-May 2008.
• Currently our forex reserves amount to US
$297.3 billion.

70. Foreign Exchange Reserves

71. ISSUES

72. ISSUES
 Wealth distribution is fairly uneven, with the
top 10% of income groups earning 33%
of the income.
 Still 17.59% (over 230 million) of Indians
still live below the national poverty line.

73. Poverty and Inequality
 The poverty ratio is estimated at 28.3% in
rural areas, 25.7% in urban areas, and
27.5% for the country as a whole .
 According to HDR 2010, inequality in
India for the period 2000-10 in terms of the
income Gini coefficient was 36.8.

74. AGRICULTURE
• International comparisons reveal that the
average yield in India is generally 30% to
50% of the highest average yield in the
world.
• Land holdings is very small
– less than 20,000 m²

75. CORRUPTION
• 2G Telecoms licence Scam depriving the
government of up to USD 39 billion in
revenues
• Adarsah Housing scam 2010 : The
apartments with a value of USD 1.8 million
were sold for as little as USD 130,000
each

76. • Commonwealth Games 2010 scam :
sporting extravaganza which cost up to
Rs. 70,000 crore (USD 6 billion)
• 30 percent have criminal cases pending
against Lok Sabha members.

77. Transitions in Economy
 From a shortage economy of food and
foreign exchange, India has now become
a surplus one.
 From an agro based economy it has
emerged as a service oriented one.
 From the low-growth of the past, the
economy has become a high-growth one
in the long-term.

78.  Joined the aid givers club.
 India has become a net creditor to
IMF, since July 2003.
 Emerging as Knowledge based Economy
 Indian Companies, more competitive and
going Global

79. Bibliography
• http://en.wikipedia.org/wiki/Economy_of_India
• http://finmin.nic.in/
• http://kalyan-city.blogspot.com/2010/12/analysis-of-india-
balance-of-payment.html
• http://commerce.nic.in/
• http://Indiastat.com/