Challenges Before Indian Economy and
ways to overcome them
10th largest in the world by nominal GDP.
A member of BRICS.
The third largest economy by purchasing power parity(PPP).
Ranked 134 by nominal GDP and 130 by PPP GDP of 2012 according to IMF.
9th largest importer and 10th largest exporter in the world.
GDP growth in fiscal year 2012-2013 is 5.7
2nd largest population after China.
ENERGY Despite having adequate
resources of coal to produce all
that we need domestically, we
imported 100 million tones of coal
in 2011-12, nearly 25% of our
consumption. Also, the 12th Plan
projects import of 185 million
tones of coal in 2016-17.
A rise in global oil prices by $ 10
per barrel would reduce India's
economic growth by 0.2
percentage points and also affect
the country's current account
One third of the total
world demand for gold.
Demand for gold is 37.6
per cent more than that of
India’s forex reserves are
8.81 percent of China’s
forex reserves yet its gold
demand is more than that
of China by 37.6 percent.
Gold import in 2010-11 was
approximate US $ 34 billion,
The main reasons for the high CAD,
increasing imports of coal, oil and gold
and decreasing exports.
The inflation rate in India
was recorded at 5.96 percent
in March of 2013.
The annual rate of
inflation, based on monthly
WPI, stood at 5.96 percent for
the month of March, 2013
(over March, 2012) as
compared to 6.84 percent for
the previous month and 7.69
percent during the
corresponding month of the
At end-September 2012,
India's external debt stock was
US$ 365.3 billion, recording an
increase of about US$ 20.0
billion (5.8 per cent) over the
level at end-March 2012. In
rupee terms, it increased from
` 17,65,333 crore at end-March
2012 to ` 19,31,688 crore at
end-September 2012, reflecting
an increase of 9.4 per cent.
India’s external debt in 2005 was 123.5 billion us $
,and in 2006 the debt become 125.2 billion us$
The rise in external debt is largely due to higher NRI
deposits, short-term debt and commercial borrowings.
NRI deposits alone accounted for 42.1 per cent of the rise
in total external debt at end-September 2012 over the
level of end-March 2012,
The Economic Survey
2011-12points out that the
Services Sector grew by
9.4% which was little
higher than 9.3% in the
Service Sector of
contributes to around 56
percent of India's GDP
Service sector not
Share of agriculture in the
Gross Domestic Product
(GDP) has dropped by
nearly 5 per cent in the
last eight years to 14 per
cent, due to higher growth
in other sectors.
Agriculture & Allied
sectors which used to
contribute 19 per cent of
GDP in 2004-05 has come
down to 14 per cent in
2011-12 at 2004-05
prices, according to
lack of infrastructure.
Lack of doctor and nurses.
Lack of advance Equipment.
Lack of proper hygiene and
Education Sector India Ratings expects the Indian
education sector’s market size to increase
to Rs 602,410 crore ($109.84 billion) by
FY15 due to the expected strong demand
for quality education. Indian education
sector’s market size in FY12 is estimated
to be Rs 341,180 crore.
In rural India, just 28 per cent of grade
3 students could subtract two-digit
numbers and only a third could tell the
It accords India the dubious distinction
of having the maximum number of illiterate
adults in the world-a staggering 287
million, a number that is nearly four times
the population of France.
Tourism IndustryIndia is the second-fastest
growing tourism market in the
world. Tourism in India is the largest
service industry contributing up to
6.23 per cent to the National Gross
Domestic Product (GDP) and
providing 8.78 per cent of the total
employment opportunity in India
The tourism sector's direct
contribution to the GDP of India in
2011 was estimated at US$ 32.7
billion. It registered a compounded
annual growth rate (CAGR) of 13 per
cent during the period of 2006-11.
Total contribution increased to US$
76.7 billion in 2011 from US$ 56.3
billion in 2009.
Lack of proper infrastructure
Lack of adequate marketing and promotion
Tourism Sector cont…..
India IT sector Contributes
7.5% towards the GDP.
IT sector only dependent on
service sector and exporting
No manufacturing facility
To produce a single processor
chip India still have to dependent
INFORMATION AND TECHNOLOGY