India has the 11th largest GDP in the world and is a member of the G20 and BRICS. While India's per capita income is low, ranking 129th globally, its economy has grown significantly in recent decades through economic reforms and liberalization. The services sector contributes over half of India's GDP, while agriculture remains an important employer, with over half the population depending on it for livelihood. Infrastructure development, including investments in transportation and energy, remains a government priority to support continued economic growth.

1. GROUP- 3B

2.  India is the 11th largest in the world by GDP and the 3rd
largest by PPP
 Member of G- 20 and BRICS
 By considering per capita income- 129th in the world (out
of 196)- thus lower-middle income economy.
 GDP- $1.676 trillion (2011)
 GDP growth 6.5% (FY 2012)
 GDP per capita $1,389 ( 2011)
 GDP by sector(2011)
◦ agriculture: 18.1%,
◦ industry: 26.3%-12th in terms of output
◦ services: 55.6%
 Inflation (CPI) 7.55% (May 2012)
 Income- grew by 14.3% to reach Rs.60,972 during 2011–
12.

3.  Pre Colonial: ( since Indus Valley Civilization
to 1700 AD )
◦ had very good trade relations with other parts of
world,
◦ evident from the coins of various civilizations found
at the site of Indus valley.
 Colonial: ( 1700 AD to 1947)
◦ Company rule in India brought a major change in
the taxation and agricultural policies
◦ India's share of world income collapsed from 22.6%
in 1700, almost equal to Europe's share of 23.3% at
that time, to as low as 3.8% in 1952.

4.  Pre-liberalisation period (1947–1991)
◦ the process of rebuilding the economy started
◦ Five year plans started in 1952 by Jawaharlal Nehru
◦ Trade liberalization, financial liberalization, tax reforms and
opening up to foreign investments were some of the
important steps, which helped Indian economy to gain
momentum.
 Post-liberalisation period (since 1991)
◦ Prime Minister Narasimha Rao, along with his finance
minister Manmohan Singh, initiated the economic
liberalisation of 1991
◦ reduced tariffs and interest rates and ended many public
monopolies, allowing automatic approval of foreign direct
investment in many sectors.

5.  MANUFACTURING
 Economic reforms 1991- removed import
restrictions-brought in foreign competition- threat of
cheaper Chinese imports- privatization of certain
public sector industries-liberalized FDI -improved
infrastructure.
 Textile manufacturing – 2nd largest source of
employment-1st agriculture
 Indian economy - investment slowdown, growth
momentum is weakening. Manufacturing industry
growth rate down to 5.0 % from 5.6 %.
 Export growth- moderate due to slowing growth in
the country’s export destinations, notably Europe.

6.  13th in services output-
 Largest share in GDP-62%- expected GPD
growth rate has been lowered by CRISIL to
6.5% due to the sluggish growth in IT/ITES as
a result of slowing export demand from the
Eurozone, and slower than earlier anticipated
growth of the hotels, trade and transport
sector due to moderation in private
consumption growth.

7.  Indian Textile sector grew by more than 5% in the
last two fiscal years and is projected to grow at
16% by 2012.
 second largest employer of Indians after
agriculture, it currently employs 88 million
people and is expected to generate another 17
million jobs by 2012.
 third largest of textile to both USA and Europe
and exports grow by 24% in last fiscal year.
 They are likely to grow by 25% in the next 5 years
increasing the Indian Textile Industry’s share in
world textile market from 3% to 7%.

8.  needs to grow at a CAGR of 15% over the next
five years to support the growing
requirements of virtually every other sector of
the Indian Economy.
 will require US$ 1.7 trillion investment in the
next 10-years
 expects to invest about USD 500 billion in
infrastructure, mainly in power,
telecommunication, roads, railways and oil
pipelines, in the five years

9.  India have:
- 12 Major Ports
- Fifth largest electricity generation capacity
in the world
- 454 airports and airstrips in India
- Fourth largest rail network in the world

10.  the total literacy rate 74.04%
 female literacy rate is 65.46 %
 male literacy rate is 82.14%
 Higher education enrollment ratio-11%US -
83%
 A study by the National Assessment and
Accreditation Council: 90 per cent of the
colleges and 70 per cent of
the universities were of poor quality

11.  accounts for 14-15% of its GDP
 one of the top five retail markets in the world by
economic value.
 one of the fastest growing retail market in the world,
with 1.2 billion people
 2012, India approved reforms for single-brand stores
welcoming anyone in the world to innovate in Indian
retail market with 100% ownership, but imposed the
requirement that the single brand retailer source 30
percent of its goods from India. Indian government
continues the hold on retail reforms for multi-brand
stores
 IKEA, Apple, Nike- single brand stores
 Walmart, Carrefour, Tesco- multi brand retail stores

12.  Tourism - is relatively undeveloped, but a
high growth sector.
 contributes 6.23% to the national GDP
 majority of foreign tourists come from USA
and UK.
 India's rich history and its cultural and
geographical diversity make its international
tourism appeal large and diverse.
 heritage and cultural tourism along with
medical, business and sports tourism. fastest
growing medical tourism sectors

13.  One of the strong sectors of Indian economy
(18% of GDP)
 58 % population of India depends on
Agriculture
 largest producer of coconuts, mangoes,
bananas, cashew nuts, pulses, ginger
 Second largest producer of rice, wheat,
cotton, fruits and vegetables
 Contributes to 1/6th of the export earnings
 Green Revolution- breakthrough
 Exports- coffee, spices

14.  State Bank of India-1806
 1990’s reform- entry of many foreign banks
 IT revolutionised- so came online banking
 The public sector banks hold s 75% of total
assets of the banking industry, with the
private banks holding- 18.2% ,foreign banks
- 6.5%
 mandatory for banks to provide 40% of their
net credit to priority sectors like agriculture,
small-scale industry, retail trade, small
businesses

15. Impact of New Banking Policies
 Encouraging mergers
 reducing government interference
 increasing profitability and competitiveness
 foreign players

16.  Rating agency S&P degrade India, as result foreign players
withdraw their investments. This leads to a decrease in the forex
reserve.
◦ the banking industry in india is in a good position, which makes good
profit from its operations.
 the value of rupee depreciating when compared to the us dollars.
As now INR/1USD= 55.339.
 - Sensex crossed 17000 mark recently after a long time. Nifty
crossed 5200 mark.
 -current inflation rate in india is at 7.25%. The fight against
inflation is done by central banks which control the money
supply by increasing or decreasing short term interest rates.
 current bank rate is 9%, repo rate is 8% and reverse repo rate is
7%.
 CRR=4.75% and SLR is 24%
 non banking financial institutions also plays an important role .

17.  Some of its regional and bilateral trade agreements
are
◦ India-Sri Lanka Free Trade Agreement,
◦ Trade Agreements with Bangladesh, Bhutan, Sri Lanka,
Maldives, China, and South Korea.
◦ India-Nepal Trade Treaty,
◦ Comprehensive Economic Cooperation Agreement (CECA)
with Singapore.
◦ Framework Agreements with the Association of Southeast
Asian Nations (ASEAN), Thailand and Chile.
◦ Preferential Trade Agreements with Afghanistan, Chile, and
Mercosur (the latter is a trading zone between Brazil,
Argentina, Uruguay, and Paraguay).
 India- pushing for a more liberal global trade regime,
especially in services.

18.  Agricultural and allied sectors -52.1%.
 Avenues for employment- IT and travel and tourism
sectors, which have high annual growth rates of
above 9%.
 Unemployment in India is characterised by chronic
(disguised) unemployment.
 11th five-year plan identified the need for -
congenial environment for employment generation,
by reducing the number of permissions and other
bureaucratic clearances required.
 Inequalities and inadequacies in the education system
have been identified as an obstacle preventing the
benefits of increased employment opportunities from
reaching all sectors of society.

19. THANK YOU