india position in world economy
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Transcript of india position in world economy
Linking INDIA to World Economy
INDIA’S SHARE IN WORLD ECONOMY
Linking INDIA to World Economy
INDIA’S SHARE IN WORLD ECONOMY
It is divided into 3 Eras :
Pre- colonial (Early 17th Century) British Colonial (17th till 1945) After Independence ( After 1945 till
Now)
Linking INDIA to World Economy
Independence to 1991
Influence by British Colonial Experience.
With strong emphasis on (a) Import substitution(b) Industrialization(c) State Intervention(d) Business regulation (e) Central planning(f) Capital Industries
Linking INDIA to World Economy
After 1991
Since 1990 India has emerged as one of the wealthiest economies in the developing world; during this period, the economy has grown constantly, but with a few major setbacks. This has been accompanied by increases in life expectancy, literacy rates and food security.
Linking INDIA to World Economy
India’s Contribution to World’s Economy
Government Intervention
Major improvements in educational standards across India.
In the late 80’s the government led by Rajiv Gandhi eased restrictions on capacity expansion for incumbents, removed price controls and reduced corporate taxes. While this increased the rate of growth, it also led to high fiscal deficits and a worsening current account.
Linking INDIA to World Economy
India’s Contribution to World’s Economy
Public Receipts The tax reforms, initiated in 1991:
(a) Reducing the rates of individual and corporate income taxes, excises, customs and making it more progressive
(b) Reducing exemptions and concessions .
(c) Simplification of laws and procedures. (d) Introduction of PAN to track
monetary transactions.
Linking INDIA to World Economy
India’s Contribution to World’s Economy
Public Receipt
Tax receipts of Centre & State amount to approximately 18% of national GDP.
limited resources of Government affect its ability to pay fair wages to public servants. This may well be the cause of endemic corruption at all levels of government.
Linking INDIA to World Economy
India’s Contribution to World’s Economy
Physical Infrastructure
India's low spending on power, construction, transportation, telecommunications and real estate, at $31 billion or 6% of GDP in 2002 had prevented India from sustaining higher growth rates.
India holds 2nd position in the world in roadways' construction, more than twice that of China.
Linking INDIA to World Economy
India’s Contribution to World’s Economy
Agriculture Sector Agriculture & allied sectors like
forestry logging and fishing accounted for 16.6% of the GDP in 2007.
2nd largest world-wide in farm output.
Linking INDIA to World Economy
India’s Contribution to World’s Economy
Industry India is 14th in the world in Factory
Output.
Account for 27.6% of the GDP and employ 17% of the total workforce.
Linking INDIA to World Economy
India’s Contribution to World’s Economy
According to Forbes Global2000 ranking for 2008, Five leading companies are:
World Rank Company Market valve(billion $)
193 Reliance Industry 89.29
198 ONGC 54.11
219 SBI 33.29
303 Indian Oil Corporation
16.36
374 ICICI Bank 29.85
Linking INDIA to World Economy
India’s Contribution to World’s Economy
Service Sector India is 15th in service output.
It provides employment to 23% of work force, and it is growing fast, growth rate 7.5% in 1991–2000 up from 4.5% in 1951–80.
Contribution of IT to GDP increased to 4.8 % in 2005-06 and is projected to increase to 7% of GDP in 2008.
Linking INDIA to World Economy
GDP Growth in Current Decade
Linking INDIA to World Economy
Contribution to GDP growth
1951-51 2007-08
Linking INDIA to World Economy
Balance of Payments
Linking INDIA to World Economy
Growth of Employment
China and India’s Share in World GDP.
Angus Maddison, World Economy, 2001
0%
5%
10%
15%
20%
25%
30%
35%
1000 1600 1820 1913 1973
China
India
19980%
5%
10%
15%
20%
25%
30%
35%
1000 1600 1820 1913 1973
China
India
1998
Linking INDIA to World Economy
Linking INDIA to World Economy
Globalisation:The Difference
China Vs IndiaContribution to GDP Growth by Consumption, Investment and Net Exports:
China Vs India
China India
1994-00 2000-05 1994-01 2001-07
Final consumptio
n expenditure 63.2 37.6 75.2 67.2
Gross capital
formation 29.9 54.4 26.3 36.4
Net exports 6.9 7.9 -1.5 -3.6
Total 100.0 100.0 100.0 100.0Source: Computed from WDI and CSO data.High growth driven by domestic investment, consumption and net exports in China, while the contribution by net exports negative in India
A To-Be Superpower India’s rank in GDP
604 929 1,411
3,174
7,854
2004 2015 42010 202525 2035Brazil Italy Japann
Real GDP,(US$ billion)
Economies overtaken
BRICs assumes India GDP growth of ~8% p.a.
11 96
4
3
France, GermanyUK
Linking INDIA to World Economy
Linking INDIA to World Economy
Conclusion
THE WAY FORWARD
• Infrastructure
• Education
• Business climate
• Public expenditure efficiency
Linking INDIA to World Economy
THANK YOU
GROUP MEMBERS: Aditya Akshita
Jatinder Singh Khushboo
Ruchika Shubha Tanesh
Uma