Analysis Of India Economy

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this is my analysis

LPG model

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Analysis Of India Economy

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

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