indian economic environment

1. Indian Economic
Environment
Module: 5

2. Indian at Glance
• Capital
• Area
• Official language
• Population
• Rec language
• Sex ratio
• State
• Literacy rate
• Largest state
• Smallest state
• National Park
• Wild sanctuaries
• Life expectancy rate

3. Recent
Changes in
Economy

4. National Income
National income is the total value a country's
final output of all new goods and services
produced in one year.
Current National Income of India –9.446 trillion
PPP dollars (2016)

6. Measurement of National
Income
• Product Method
• Income Method
• Expenditure Method

7. Growth rate

8. Difficulties in Measuring National
Income
• Non Monetary Transactions
• Problem of Double Counting
• The Underground Economy
• Petty Production
• Public Services
• Capital Gains or Loss
• Price Changes
• Illiteracy and Ignorance

9. Business Cycle
• Natural rise and fall of economic growth that
occurs over time.
• Analysing the economy
• Better financial decisions

11. Phases of a business cycle
• 1. Expansion
• 2. Peak
• 3. Recession
• 4. Trough
• 5. Recovery

12. Inflation
• Inflation is a
sustained increase
in the general
price level of
goods and services
in an economy
over a period of
time.

13. Price indices
• Percentage number that shows the extent to
which a price has changed over a period as
compared with the price(s) in a certain year
Kinds
• Wholesale PI
• Consumer PI

14. Contribution of different sectors in
Indian economy
• Agriculture (17.32%)
• Industry (29.02%)
• Services (53.66%)

15. SWOT
Strength
• Intelligent Human Resource
• Natural resource
• Less Labour Cost
• Extensity higher education system
• 3rd Largest reservoir of engineers
• Growth of IT and BPO
Opportunities
• Entry of Private firms
• Area of Bio Tech
• Inflow of FDI
• Huge Foreign ex
• Area of Infrastructure
• Investment in R & D
Weakness
• Poor Infrastructure
• Import is more than exports
• Lack of tech invention
• Political instability
• Low literacy rate
• Poverty
Threats
• Threat of govt intervention
• Growing import bills
• Population explosion
• Agriculture depended on monsoons
• Increase in the sick units
• Volatile in the crude oil price and
commodities

16. Thank
You