Background, Path Dependance

1. Economic Development of India
1. Economic Background of India
By Mr. Jean De Dieu
HABAKWIZERA

2. Location and Description(1)
India, located south
Asia. New Delhi as
Capital
Bordered Countries:
South: Indian Ocean
North-East : China,
Nepal and Bhutan
West: Pakistan
East: Bangladesh and
Myanmar( Burma)
Tot.Area:3,287,263 sq
km
Pop:1, 210,193,422
(2011 census)

3. Location and description(2)
. 7th Largest in the word
. Caste lead to large economic gap btn poor
and Rich people.
. 18 languages are spoken
. Indian economic sectors include:
telecommunication, IT, Auto components,
Pharmaceuticals, Steel, Machine tools and
Banking and Insurance.
. Agriculture and Livestock products key
drivers of Economic development.

4. Location and Description(3)
. It has complex and diverse culture: Rural,
Traditional and Agrarian Population.
. Experiencing of industrial power leads to
Rapid urban growth rural-urban
migration.
. This country emerges as one fastest
growing economies in the world

5. A. Before colonialism
B. During colonialism
C. After independence
History of economic development of India

6. A. Before Colonialism
.Indian economic development began in Indus
valley civilization years 3500 to 1800 BC
.Based on trade that facilitated advanced
transport Maritime transport was very
important to sell gold, Copper and Jewelry in
Mesopotamia
.Military security and political unity was allowed
economic system under Greek Seleucid and
Ptolemaic empire.
. For the next 1500 years, India produced its
classical civilization which generated a huge
amount of wealth. On that time, India
estimated to have largest economy ancient and
medieval world’s one third and one fourth
wealth.

7. B. During colonization(1)
. British Rule,
 Before British rule, India transform its
products in finished goods that sold in internal
market
 British East India company had political
power expanded in India 1757 onwards
generated by provinces under its rule
purchasing Indian raw materials, spices and
good to be exported and Indian citizens
purchase manufactured products from British.

8. B. During Colonization(2)
 British imperial empire began to grow India in
the middle of 18 century.
 Colonial government used land revenue for
waging wars in India and Europe leaving little for
Indian development
 80 years under colonial rule, India was
exporter of raw materials and importer of
manufactured goods
 During that time some Indians suffered by
famine and illiteracy

9. C. After Independence(1)
 1947-1979
India after independence in 1947, started its
economy to rebuild under five centralized years
plan.
This plan came into implementation in 1952 and
under agrarian economy, invested in dams
construction, Irrigation and laying infrastructures
Country did not develop rapidily because of cold
war, defense expenditure and inadequate
infrastructure and rise in population

10. C. After independence(2)
 1980-1990
 High rate of Investment was a major factor
in improved economic growth
 Balance payment crisis in 1990, government
had taken measures of economic
liberalization in order to receive new loans.
 this was took in place by decision of
government to economic reform in June 1991

11. Economic sectors of India(1)
 Primary sector, includes Agriculture,
Forestry, Fishing and Mining
• Indian GDP on agriculture was about 16.1%
and it was in fastest and largest growing
markets on food and Agriculture in the World
 Secondary Sector, transformation of raw
material into manufactured goods. Includes
industries of textile, Chemical, Engineering
and Machinery

12. Vision and Achievements of India
 The rising of income and Saving levels,
investment opportunities and younger
population will ensure the growth of decades
to come
 India’s share in the world output is
projected to jump from 5% as today to 20.8%
in 2040.

13. 2. Forms of path dependence,
continual development influences
with developed country in India

14. A. Forms of Path dependence in
India
 First degree path dependence, this sensitivity
do might not harm. But this path happens to be
optimal.
 Secondary degree of Path dependence,
sensitive dependence leads to outcomes that are
regrettable and costly to change. Inefficient in any
meaningful sense, given assumed limitations on
knowledge.
 Thirdly degree p.d, sensitive dependence leads
to outcomes that is inefficient but in this case, the
outcome is also Remediable.

15. B. Conditions give rise to path
dependence in India
 Durability of capita equipment
Technical Interrelatedness
 Increasing Returns
 Efficient in forestry regime in
India

16. 3.Globalization in India(1)
Globalization, leads to expand movement of
ideas and exchange of commodities over vast
distance.
 India has distinct of being largest economy
in the beginning of Christian era. The concept
of globalization is hardly new to India until its
liberalizations.
 it was isolated to international market to
protect its economy and to achieve self-
Reliance.

17. 3.1. Positive impact of Globalization in India
 New opportunities for Indian companies
providing services, particularly in field of IT.
 Services such as data entry, Accounting, and
administrative tasks are now being done
cheaply in India and exported from developed
countries. This provides thousand jobs
 Competition among producers resulting
from globalization is greater advantage to the
consumers and enjoying improved quality and
lower prices for several products

18. 3.2. Negative impacts of Globalization in India
 Liberalization of foreign trade policies
allowed the import of electronic goods at a
very cheap cost.
 uncertain employment and of rising
competition
 All native Hindus were dismissed as
heathens or pagans
 Workers are denied their fair share of
benefits as manufactures are always on the
lookout for cheaper labor.

19. 4. The status of Natural resources/Environment in
India
4.1. Types of Natural resources in India
• Different types of natural resources such as
Fertile Soil, Forests, Minerals and Water.
• Mineral resources such as Bauxite,
Chromites, Iron, coal, limestone, Mineral
oil….

20. 4.2. Environment of India
• The 3,287,590 sq km of the country are
characterized by upland plain in the south, flat to
rolling plain along Ganges deserts in the west and
Himalaya in the North.
• Climate varies from temperate in the North to
tropical Monsoons in the South
• Current Environmental issues are Deforestation,
Soil Erosion, Overgrazing and Air pollution.

21. Thank for Your Attention!!!!