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MARKET ECONOMY -A CONTRAPTION FOR

DEVELOPMENT

Notes :- SOURCES OF ALL THE INFORMATIONS ARE FROM WIKIPEDIA, GOOGLE & SCRIBD

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WHAT IS MARKET ECONOMY ?

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INDIAN ECONOMY BEFORE

&AFTER LIBERLISATION

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INDIAN ECONOMY BEFORE LIBERLISATION

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KEY PLAYERS IN THE BATTLE FIELD OF ECONOMIC

REFORMS

P.V Narsimha Rao

Dr. Man Mohan Singh

Dr. Arvind Virmani along with:-

C. Rangarajan,Montek Singh Ahluwalia,Shankar Acharya andY. Venugopal Reddy.

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INDIAN ECONOMY AFTER LIBERALISATION

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CHANGING ENVIRONMENT AFTER 1991

Opening up of the Indian Economy

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DESTINATION INDIA after liberalization

At Kearneys FDI Confidence Index

Report India has been upgraded to 6th mostattractive destination worldwide.

In Services sector, India was ranked as

the 4th most attractive destination.

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GDP growth at constant prices

6.1

8.2 8

0

12

3

4

56

7

8

9

Average for 1993-2003 2003-04 10th Plan Projection (2002-07)

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Foreign exchange reserves (US$ billion)

2.2 17.0

54.1

75.4

118.3

0

50

100

150

1990-91 1995-96 2001-02 2002-03 2003-04

INDIAN FOREIGN EXCHANGE RESERVES:

A STEADY RISE AFTER LIBERALIZATION

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103

5,138 5,3856,789

8,152

5,639

15,872

0

2000

40006000

8000

10000

1200014000

16000

18000

1990-91 1994-95 1997-98 2000-01 2001-02 2002-03 2003-04

Total Foreign Investment (US$ million)US$ million

FOREIGN INVESTMENTS AFTER LIBERALIZATION

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COUNTRIES INVESTING IN INDIA

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Share of top five investing countries in FDI inflows. (20002007)

Rank CountryInflows

(Million USD)Inflows (%)

1 Mauritius 85,178 44.24%

2 United States 18,040 9.37%

3 United Kingdom 15,363 7.98%

4 Netherlands 11,177 5.81%

5 Singapore 9,742 5.06%

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Import Duty Reductions After Liberalization

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Share of external trade in GDP

18.123.1 25.5

26.930.3 28.9

31.6 32

0

5

10

15

20

25

30

35

1991-92 1994-95 1997-98 1999-

2000

2000 -01 2001-02 2002 -03 2003 -04

inp

ercent

Rising share of Indias external trade after liberalization

Total Exports in 2003-04 - US$ 61.8 Bn; Imports US$ 75.2 Bn.

Assumed target for exports for 2009 - US$150 Bn

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INDIAN ECONOMY AFTER

LIBERALISATION IN

VARIOUS

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PHARMACEUTICALS INDUSTRY AFTER

LIBERALISATION

India is world's 4th largestpharmaceuticals producer with 8% share

of global production.

3 New Molecules discovered by Indian companies - 12 more in the

final stages.

Over 100 Indian formulations have received United States FDA

approval

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BIOTECH AFTER LIBERALISATION

More than 900 companies involved in traditional biotech products.

R&D and commercialization of products on agricultural

biotechnology is the latest trend.

Opportunities for fresh investment in Indian biotech sector in next

5-7 years - US$ 1.5 2 billion

Some Biotech Industries are: - Serum Institute of india, Tulip,

Biocon etc.

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AGRO & FOOD PROCESSING AFTER

LIBERALISATION

India is looking for investment in infrastructure, packaging and

marketing.

India - One of the largest food producers of the world.

The Indian scientific and research talent had boomed up after

liberalization because of various MNC are investingbig money in

R&D.

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AUTO & AUTO COMPONENTS AFTER

LIBERALISATION

2ndlargestsmall car market in the world.

Largest motorcycle manufacturer in the world.

2ndlargestscooter and tractor manufacturer in the world.

Many international auto majors are manufacturing in

India Daimler Chrysler, General Motors, Toyota, Ford,

Honda, Hyundai, Volkswagen, Suzuki etc.

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Production of Automobiles (4 Wheelers) after

Liberalization

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Vehicle Exports

146543

38230

332087

121140

0

100000

200000

300000

400000

500000

600000

1992-93 1994-95 1996-97 1998-99 2000-01

Year

In

Nos.

4 Wheelers (in Nos) 2 and 3 Wheelers (in Nos)

Vehicle Exports after Liberalization

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STEEL Industry after Liberalization

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IT & IT ENABLED SERVICES after

Liberalization

Compounded annual growth rate (CAGR) exceeding 50 % over the

last five years

IT enabled services key driver of growth. Engine for outsourcing

This segment poised to grow very rapidly, world-wide - India has

potential to tap 38 % of the world market.

Revenues from ITeS (remote services) showed an annual growth

rate of68.2 %.

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34 INDIAN COMPANIES HAVEBEEN LISTED IN THEFORBES

GLOBAL 2000 RANKING FOR2008. OF THEM THE 10

LEADING COMPANIES ARE:

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World

RankCompany Logo Industry

Revenue

(billion $)

Profits

(billion $)

Assets

(billion $)

Market

Value

(billion $)

239

Oil and

Natural GasCorporation

Oil & Gas

Operations 15.64 3.46 26.98 38.19

258Reliance

Industries

Oil & Gas

Operations18.05 2.11 21.75 42.62

326State Bank

of IndiaBanking 13.66 1.24 156.37 12.35

399Indian Oil

Corporation

Oil & Gas

Operations34.22 1.11 22.68 10.92

494 NTPC Utilities 6.06 1.31 17.25 26.06

536 ICICI Bank Banking 5.7 9 0.54 62.13 16.72

800

Steel

Authority of

India

Limited

Materials 6.30 0.91 7.06 10.16

1047

Tata

Consultancy

Svcs

Software &

Services2.98 0.67 1.93 26.27

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World

RankCompany Logo Industry

Revenue

(billion $)

Profits

(billion $)

Assets

(billion $)

Market

Value

(billion $)

1128 Tata Steel Materials 4.54 0.84 4.61 5.80

1130

Infosys

Technologie

s

Software &

Services2.14 0.55 2.09 26.19

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COUNTRIES WHERE MARKET

ECONOMY IS FOLLOWED

CHINACHINAJAPANJAPAN

CANADACANADAAMERICAAMERICA

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THANK YOU