Indian Century:RElaunching The Indian Story

Presented To: Presented By:Mrs. Deepti Sharma Akash Garg(2013UCP1190)

Ashok Meel(2013UCP1218)Nikhil Agrawal(2013UCP1139)

India’s Journey:

LPG:

July 1991,India has taken a series of measures to structure the economy and improve the BOP position. The new economic policy introduced changes in several areas. The policy have salient feature which are: -1.Liberlisation (internal and external)2.Extending Privatization3.Globalisation of the economyWhich are known as “LPG”. (liberalization privatization globalization)

Reasons For Implementing LPG:

Excess of consumption and expenditure over revenue resulting in heavy govt. borrowings.Growing inefficiency on the use of resources.Over protection to industries.Mismanagement of the firm and the economy.Increase in losses for public sector enterprises.Various distortion like poor technological development, shortage of foreign exchange and borrowing from abroad.Low foreign exchange reserves.

GDP Trends After Implementing LPG Policies:

103

105

125

105 135 145 167

204 231287

682

191237

398453

0

200

400

600

800

1.000

1.200

1999-00 2002-03 2005-06 2006-07 2010*

US

DB

illio

n

agriculture industry services

Source: India Brand Equity Foundation

(IBEF)

Growing GDP

Negative Impacts Of LPG:

• Agriculture is totally Neglected.• Loss to domestic units.• Increase dependence on foreign nations.• Unbalanced development.• Lack of welfare.• Increase in inequality.• Transfer of natural resources.

UPA Government Growth Story:

Inflation Story In UPA Government:

• In after 2010 some scams came in a row like-1. 2G scam2. Coal scam3. CWG scam4. Chopper scam

• Due to above scams the period of policy paralysis came it was around 2010-2014(march).

• In this period GDP Growth rate decreased rapidly.• It came down from 9.3%(2011) to 5%(2013).

Policy Paralysis:

Scams In UPA Government:

Effects Of Scams:

Food Prices Analysis In UPA And NDA:

MAKE IN INDIA CONCEPT:

NEW INITIATIVES

FOREIGN DIRECT INVESTMENT

NATURAL MANUFACTURING

INTELLECTUAL PROPERTY FACTS

Steps Taken By Current Govt. To Revive:

NEW INITIATIVES:

▪ A new ‘National Industrial Corridor Development Authority’ is being created to coordinate, integrate, monitor and supervise development of all Industrial Corridors.

▪ Work on 5 smart cities in progress as a part of the Delhi-Mumbai Industrial Corridor: Dholera, Shendra-Bidkin, Greater Noida , Ujjain and Gurgaon .

▪ Chennai-Bengaluru Industrial Corridor: master Planning for 3 new Industrial Nodes Ponneri (TN), Krishnapatnam (AP), Tumkur (Karnataka)] in progress.

▪ North-eastern part of India planned to be linked with other Industrial corridors in cooperation with government in Japan.

▪ New Industrial Clusters for promoting advance practices in manufacturing.

▪ Approval accorded to 21 Industrial projects under Modified Industrial Infrastructure Upgradation Scheme with an emphasis on:

Steps Taken By Current Govt. To Revive(cntd.)

NEW INITIATIVE(cntd.):

▪ Approval accorded to 17 National Investment and Manufacturing zones.

▪ An Act recognizing National Institute of Design (NID), Ahmedabad, as an institute of National Importance notified. This will enable NID to confer degrees, promote research and function as an Apex body in Design Education. Four more NIDs are being developed.

▪ Major impetus given to skill development through Indian Leather Development Programme:

▪ 1. Training imparted to 51,216 youth in the last 100 days.2. It is further planned to train 1,44,000 youth annually.3. For augmentation of training infrastructure, funds released for establishment of 4 new branches of Footwear Design & Development Institute at Hyderabad, Patna, Banur (Punjab) and Ankleshwar (Gujarat).

Steps Taken By Current Govt. To Revive(cntd.)

FDI Addition:

100% FDI allowed in the telecom sector. 100% FDI in single-brand retail. FDI in commodity exchanges, stock exchanges & depositories, power

exchanges, petroleum refining by PSUs, courier services under the government route has now been brought under the automatic route.

Removal of restriction in tea plantation sector. FDI limit raised to 74% in credit information & 100% in asset

reconstruction companies. FDI limit of 26% in defence sector raised to 49% under Government

approval route. Foreign Portfolio Investment up to 24% permitted under automatic route. FDI beyond 49% is also allowed on a case to case basis with the approval of Cabinet Committee on Security.

Steps Taken By Current Govt. To Revive(cntd.)

INTELLECTUAL PROPERTY FACTS:The Indian government has taken several initiatives to create a conducive environment for the protection of intellectual property rights of innovators and creators by bringing about changes at legislative and policy level.In addition, specific focus has been placed on improved service delivery by upgrading infrastructure, building capacity and using state-of-the-art technology in the functioning of intellectual property offices in the country. This measure has resulted in sweeping changes in Intellectual Property administration within the country.

Steps Taken By Current Govt. To Revive(cntd.)

National Manufacturing:

The need to raise the global competitiveness of the Indian manufacturing sector is imperative for the country’s long term-growth. The National Manufacturing Policy is by far the most comprehensive and significant policy initiative taken by the Government. The policy is the first of its kind for the manufacturing sector as it addresses areas of regulation, infrastructure, skill development, technology, availability of finance, exit mechanism and other pertinent factors related to the growth of the sector.

Why Invest In India:

Invest in India because India have 3D’s that world’s no country have.1. Demography-In india there is 65% population is below 35.so

it is working population.2. Democracy-india is world largest democratic country and it

is first time in last 30 years the one party got full majority in parliament.

3. Demand-india has largest middle class society in world so there is a large demand

Visions Of Policies:India has already marked its presence as one of the fastest growing economies of the world.The country is expected to rank amongst the world’s top three growth economies and amongst the top three manufacturing destinations by 2020.Favourable demographic dividends for the next 2-3 decades. Sustained availability of quality workforce.The cost of manpower is relatively low as compared to other countries.Responsible business houses operating with credibility and professionalism.Strong consumerism in the domestic market.Strong technical and engineering capabilities backed by top-notch scientific and technical institutes.Well-regulated and stable financial markets open to foreign investors.

Effects Of Policies:

The recent announcement of rate cut by the Reserve Bank of India will also support economy in recovering.

Earlier this month, the RBI decided to cut the benchmark interest rate by 0.25 percent to 7.75 percent with a view to boost growth.

On the global front, steep fall in oil prices and gradual recovery in the US economy are the two major prevailing factors which directly impact our economy.

SIGNALS OF GROWTH:

▪ After the new government came some signals of growth are started coming.

• World bank project that India will beat china in gdp growth and will become fastest growing country in world.

• Accordingly world bank india will achieve gdp growth of 7.1% In compare with china’s 7% growth rate in 2017 .

GDP Of India:

INDIA has its GDP $2.048 trillion that is 10th largest economy in world .

It is predicate that india will be 6th largest economy until 2025.

3rd largest economy until 2050.

IMF forecast for india’s growth rate:

▪ In 2014, India's growth rate was 5.8 per cent against China's 7.4 per cent, said the World Economic Report update released by the International Monetary Fund

▪ According to International Monetary Fund(IMF)India is projected to grow at 6.3 per cent in 2015 and 6.5 per cent in 2016, when it is likely to cross China's projected growth rate of 6.3 per cent.

Conclusion:

• India as one of the most significant countries in the world will help shape a "new world order" that is emerging in this century.

• If India continues it's recent emphasis on skill development to harness the huge potential of the human capital that it possesses than it can indeed become the global superpower that everyone is expecting it to become and make this 21st century an "Indian century“.

• If India is free from Scams, Corruption, Lack of Leadership then it will become a new superpower in upcoming years.

References & Sources:

Reserve Bank Of India.The International Monetary Fund(IMF).World Bank.Public Policy Research Centre.CSO, Care.India Brand Equity Foundation(IBEF).Central Statistical Organization, National Accounts Statistics.http://www.makeinindia.comhttp://www.Wikipedia.orgGoogle Images.