Analysis Of India Economy

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LPG model

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  • 1. Analysis of Indian Economy
    Presented by: PrakashChandola
  • 2. Making the Indian economy as fastest growing economy, more efficient and globally competitive.
    LPG model: Aim
  • 3. After 17years…………………..
    since 1991
  • 4. one road leads India to economic prosperity and glory.
    The other road leads it to social inequality
  • 5. Indian economic itself :
    BOP imbalance
    Inflation 17%
    All in all… low on cash
    Reason behind LPG
  • 6. To put end on rules / Regulation to control economy.
    Open up various sectors of Economy .
  • 7. End of License Raj
    Financial Sector Reformed : Financial institutions (Stock market, Forex market etc) can take decision with out consulting.
    Trade investment reform: broad-banding
    What happened under it?
  • 8. Under the privatization scheme, most of the public sector undertakings have been/ are being sold to private sector.
    Shifting the delivery of services performed by public employees to private businesses.
  • 9. To promote increased efficiency.
    To reduce government interference in the economy.
    To improve the quality of decision making of managers without political interference.
    Profit maximization
    Why Privatization????
  • 10. Globalization is facilitated via WTO
    Process of globalization includes opening up of world trade, internationalization of financial markets, increased mobility of persons, goods, capital, data and ideas.
    Exchange of technology and knowledge, movement of labor.
    In context to India, this implies opening up the economy to FDI by providing facilities to foreign companies to invest in different fields of economic activity in India.
    Also allowing Indian companies to enter into foreign collaborations.
  • 11. Foreign Direct Investment (FDI)
    Foreign Institutional Investors (FIIs) have opened their office in India
    India's Balance of Payments - is expected to remain comfortable
    Industrial Growth
    In respect of market capitalization India is in 4th position.
    The number of billionaires of India has risen to 40 .
    Brightside of LPG
  • 12. More economic relations we have with the world and more friends we make.
    Trade, hotels, transport and communication registered a growth rate of 12%
    Exports grew by 18.11% during the 1st quarter of 2007-08
    Services maintained a decent growth rate of 7.6%
    Electricity, gas & water supply performed well and recorded an impressive growth rate of 8.3%
  • 13. Environmental Degradation and Pollution
    Agriculture still remains the backbone of the Indian economy
    Most Priority for Exports Crops
    Benefit goes to Multinational Corporations
    The number of rural landless families increased .
    Increasing inequality: very low and very high levels of inequality can depress the rate of growth itself.
    Dark side of LPG
  • 14. Second fast growing economy after China.
    Growth in six core industries is 5.0% till Sept 2009.
    Sensex BSE 16,152.59 NSE 4826.25
    Exchange rate of rupee 46.524 against Us $
    Industrial production registered a growth of 11% in Aug.2009 higher than the growth of 6.8 percent in July 2009 and also from 1.7% growth the same month last year
    Current CRR is 5.75%.
    Economy seen growing at 7.2% in FY10 – PM
    (Business line, 9 feb.)
    Current state of IndianEconomy
  • 15. Sustaining the growth momentum and achieving an annual average growth of 9-10 % in the next five years.
    China is challenge for India. over the past decade FDI flow into India have avg. 0.5% of GDP while 5% of GDP in China
    Global trade
    Philippines an economy 6 times smaller then us according to IMF. Sharing same global trade.
    Boosting agricultural growth through diversification and development of agro processing.
    Challenge ahead Indian Economy
  • 16. International confidence in India has been restored.
    FDI keeping faith in Indian economy.
    Investor looking India for second most promoting country after China.
    Emergence of middle class with significant purchasing powers and this has been the engine that has driven the economy.
    LPG changed India's international relations.
  • 17. The agricultural sector has also seen this disproportionate growth.
    Rich are just getting richer and the poor are just getting poorer.
    There is a need of higher saving.
    There is sparkling prosperity, there is stinking poverty
    Rising inequality difficult to reduce poverty.
  • 18. So we can say that:
    We have everything by globalization, we have nothing by globalization.”
  • 19. Trend of Stock market..
    Date BSE NSE state
    1.01.08 20300 6144 Boom
    2.06.08 16063 4739 Decline
    2.03.09 8607 2674 Depression
    TODAY 16152 4825 Recovery
  • 20. Means:
    Indian economy is back on recovery path
  • 21. The economic policies and their subsequent reforms must be accompanied by suitable clauses to benefit the economically weaker sections.
    Various schemes must be thoroughly scrutinized and efforts must be made to see that the rewards must reach everyone.
    Then India will not only be economically prosperous, but will forward towards its goal of “world dominance”.
  • 22. Does LPG change your life ?
  • 23. Today you're able to surf internet, buying computer, mobile phones etc.
    have dozens of toothpastes, cars, bikes and many others.
  • 24. LPG is giving us prosperity in one hand but showing weaknesses on the other hand.
    But main thing: we are enjoying with it
  • 25. so
    Lets give a big hand to LPG