RECENT DEVELOPMENT IN INDIANECONOMY BY: RICHA GOEL MBA- 1A 064
OVERVIEW OF INDIAN ECONOMY: The Indian economy has transformed into a vibrant, rapidly growing consumer market, comprising over 300 million strong middle class with increasing purchasing power. An abundant and diversified natural resource base, sound economic, industrial and market fundamentals and highly skilled and talented human resources, make India a destination for business and investment opportunities with an assured potential for attractive returns.
DEFINING ECONOMIC GROWTH : Economic growth is increase in the amount of the Goods and Services produced by an economy over time. Growth rate of GDP: [GDP(2010)- GDP(2011)]/GDP(2010)*100]
G.D.P DURING THE LAST THREE YEARS :GDP Growth Year2007 9.4%2008 7.3%2009 5.4%2010 7.2%
SECTOR OF THE INDIAN ECONOMY : Primary Sector Secondary Sector Tertiary Sector
PRIMARY SECTOR : Activities undertaken by directly using natural resources. Example—Agriculture, Mining, Fishing, Forestry, Dairy etc. It is called primary sector because it forms the base for all other products that we subsequently make.
SECONDARY SECTOR : It covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial activity. It is a next step after primary, where the product is not produced by nature but has to be made. Some process of manufacturing is essential, it could be in a factory, a workshop or at home.
TERTIARY SECTOR : These are the activities that help in the development of the primary & secondary sector. These activities by themselves do not produce good but they are an aid and support to the production process. Example: Transportation, Goods that are produced in the primary sector need to be transported by trucks or trains and than sold in the wholesale and retail shops.
AGRICULTURE : Agriculture Largest Producer Of Tea, India accounts of 14% of the world trade in tea. Highest in terms of total milk production in the world. Third largest producer of cereals in the world: - Wheat , Rice and Pulses
SERVICE SECTORS IN INDIA : Trade Hotels and Restaurants Railways Other Transport & Storage Communication (Post, Telecom) Banking Insurance Dwellings, Real Estate Business Services Public Administration, Defense Personal Community Services Other Services
TELECOMMUNICATIONS : 20% Growth rate(crossed 10 millions). Fifth largest network in the world. People below poverty line uses cell phones. Maximum Public telephone Booths.
SECTORIAL CONTRIBUTIONS IN GDP &EMPLOYMENTS :Sector GDP(%) Employment(%)Agricultural 17.5% 52%Industrial 20% 14%Service 62.6% 34%
HIGHLIGHTS OF ECONOMIC SURVEY 2011-12 Rate of growth estimated to be 6.9%. Outlook for growth and stability is promising with real GDP growth expected to pick up to 7.6% in 2012-13 and 8.6% in 2013-14. Agriculture and Services sectors continue to perform well. 2.5 % growth in Agro sector forecast. Services sector grows by 9.4 %, its share in GDP goes up to 59%. Industrial growth pegged at 4-5 percent, expected to improve as economic recovery resumes. Food inflation dropped from 20.2% in February 2010 to 1.6% in January 2012.
HIGHLIGHTS OF ECONOMIC SURVEY 2011-12 Savings & capital formation expected to rise. Exports grew @ 40.5% in the first half of this fiscal and imports grew by 30.4%. Foreign trade performance to remain a key driver of growth. Central spending on social services goes up to 18.5% this fiscal from 13.4% in 2006-07. Sustainable development and climate change concerns on high priority.
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