Indias Economy


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Indias Economy

  1. 1. INDIA’S ECONOMY ON WORLD’S PLATFORM<br />By-<br />Shobhit asai<br />9th<br />International public school<br />
  2. 2. India is 12th largest economy in the world by market exchange rate<br />It’s also 4th largest economy in terms of PPP<br />INTRODUCTION<br />
  3. 3. History of India’s economy<br />From ancient times, India drove world economy through spice trade, textiles etc<br />In colonial era, India was bought under a taxation type system that generated huge revenue for British raj<br />
  4. 4. Economy of India till 1990<br />India’s economy was influenced from socialist type of economy involving protectism, state intervention in labour and financial market.<br />Mining, machine tools, water, telecommunications, insurance, and electrical plants, among other industries, were effectively nationalized in the mid-1950<br />
  5. 5. Graph view<br />
  6. 6. India’s Economy today<br />In 1984, government under Rajiv Gandhi started economic reforms .They removed corporate tax and price control.<br />These reforms led to transfer to market based economy<br />While this increased the rate of growth, it also led to high fiscal deficits and a worsening current account. <br />
  7. 7. Why was reform needed?<br />The reforms introduced by Rajiv Gandhi mainly aimed at accelerating growth rate to lower unemployment but it also led to high fiscal deficits and a worsening current account.<br />Collapse of India's main business partner USSR and increase in oil prices led to major balance-of-payment crisis<br />India asked IMF for 1.8 billion us$ loan which demanded reform.<br />
  8. 8. SECTORS<br />There are various sectors on which India's economic growth depends.<br />Agriculture<br />Industry and services<br />Bank and finance<br />Natural resources<br />External trade<br />
  9. 9. Present Economic growth<br />India’s economy has been one of the stars of global economics in recent years, growing 9.2% in 2007 and 9.6% in 2006. Growth had been supported by markets reforms, huge inflows of FDI, rising foreign exchange reserves, both an IT and real estate boom, and a flourishing capital market<br />
  10. 10. Current Position <br />India’s Economy has grown by more than 9% for three years running, and has seen a decade of 7%+ growth. This has reduced poverty by 10%, but with 60% of India’s 1.1 billion population living off agriculture and with droughts and floods increasing, poverty alleviation is still a major challenge. <br />
  11. 11. Failures<br />Like most of the world, however, India is facing testing economic times in 2008. The Reserve Bank of India had set an inflation target of 4%, but by the middle of the year it was running at 11%, the highest level seen for a decade. The rising costs of oil, food and the resources needed for India’s construction boom are all playing a part. <br />
  12. 12. Impact of Crisis<br />The country's banks seem stable compared to their counterparts in richer countries.<br />Bollywood is thriving as the stuff of dreams continues to sell even in hard times.<br />
  13. 13. Impact of financial crisis<br />Most Indians typically spend their entire lives saving for a house even if it takes them 20 years to do that. Seldom do they take loans [just] to finance their lifestyle.<br />That domestic demand doesn't slump<br />
  14. 14. What’s the recent figures?<br />According to the World Trade Statistics of the WTO in 2006, India's total merchandise trade (counting exports and imports) was valued at $294 billion in 2006 and India's services trade inclusive of export and import was $143 billion<br />
  15. 15. Future Of Indian Economy<br />In the revised 2007 figures, based on increased and sustaining growth, more inflows into foreign direct investment, Goldman Sachs predicts that "from 2007 to 2020, India’s GDP per capita in US$ terms will quadruple", and that the Indian economy will surpass the United States (in US$) by 2043.<br />
  16. 16. Conclusion <br />Being a citizen of a emerging super power we need to lower unemployment, corruption and economic disparities.<br />There are yet many challenges to face, we need to get ahead in HDI as we are lacking much behind.<br />Other aspect such as population control, Black money should also be controlled<br />
  17. 17. THANK YOU<br />