India has a mixed economy that is the 11th largest in the world. Its GDP grew by 6.5% in 2012 and it has a lower-middle income economy. The services sector contributes the largest share to GDP at 55.6%, followed by industry at 26.3% and agriculture at 18.1%. Major sectors of the Indian economy include manufacturing, services, agriculture, infrastructure, banking and finance, tourism and external trade. The economy has grown substantially since the economic reforms in 1991 that liberalized markets and reduced government control.

1. ECONOMY OF INDIA

2. FACTS AND FIGURES
• India is the 11th largest in the world by
GDP and the 3rd largest by PPP
• Member of G- 20 and BRICS
• By considering per capita income- 129th
in the world (out of 196)- thus lower-middle
income economy.
• GDP- $1.676 trillion (2011)
• GDP growth 6.5% (FY 2012)
• GDP per capita $1,389 ( 2011)

3. GDP by sector(2011)
agriculture: 18.1%,
industry: 26.3%-12th in terms of output
services: 55.6%
Inflation (CPI) 7.55% (May 2012)
Income- grew by 14.3% to reach
Rs.60,972 during 2011–12.

4. ECONOMIC HISTORY
• Pre Colonial: ( since Indus Valley
Civilization to 1700 AD )
• had very good trade relations with other
parts of world,
• evident from the coins of various civilizations
found at the site of Indus valley.
• Colonial: ( 1700 AD to 1947)
• Company rule in India brought a major
change in the taxation and agricultural
policies
• India's share of world income collapsed from

5. • Pre-liberalisation period (1947–1991)
• the process of rebuilding the economy
started
• Five year plans started in 1952 by
Jawaharlal Nehru
• Trade liberalization, financial
liberalization, tax reforms and opening
up to foreign investments were some of
the important steps, which helped
Indian economy to gain momentum.

6. Post-liberalisation period (since
1991)
Prime Minister Narasimha Rao, along
with his finance minister Manmohan
Singh, initiated the economic
liberalisation of 1991
reduced tariffs and interest rates and
ended many public monopolies,
allowing automatic approval of
foreign direct investment in many
sectors.

7. SECTORS
MANUFACTURING
• Economic reforms 1991- removed
import restrictions-brought in foreign
competition- threat of cheaper
Chinese imports- privatization of
certain public sector industries-liberalized
FDI -improved
infrastructure.
• Textile manufacturing – 2nd largest
source of employment-1st agriculture

8. Indian economy - investment
slowdown, growth momentum is
weakening. Manufacturing industry
growth rate down to 5.0 % from 5.6
%.
Export growth- moderate due to
slowing growth in the country’s
export destinations, notably Europe.

9. SERVICE SECTOR
• 13th in services output-
• Largest share in GDP-62%-
expected GPD growth rate has
been lowered by CRISIL to 6.5%
due to the sluggish growth in
IT/ITES as a result of slowing
export demand from the Eurozone,
and slower than earlier anticipated
growth of the hotels, trade and
transport sector due to moderation

10. TEXTILE SECTOR
• Indian Textile sector grew by more than 5%
in the last two fiscal years and is projected to
grow at 16% by 2012.
• second largest employer of Indians after
agriculture, it currently employs 88 million
people and is expected to generate another
17 million jobs by 2012.
• third largest of textile to both USA and
Europe and exports grow by 24% in last
fiscal year.
• They are likely to grow by 25% in the next 5
years increasing the Indian Textile Industry’s

11. INFRASTRUCTURE
• needs to grow at a CAGR of 15% over
the next five years to support the
growing requirements of virtually every
other sector of the Indian Economy.
• will require US$ 1.7 trillion investment in
the next 10-years
• expects to invest about USD 500 billion
in infrastructure, mainly in power,
telecommunication, roads, railways and
oil pipelines, in the five years

12. • India have:
- 12 Major Ports
- Fifth largest electricity
generation capacity in the
world
- 454 airports and airstrips in
India
- Fourth largest rail network in

13. EDUCATION SECTOR
• the total literacy rate 74.04%
• female literacy rate is 65.46 %
• male literacy rate is 82.14%
• Higher education enrollment ratio-
11%US -83%
A study by the National Assessment
and Accreditation Council: 90 per cent
of the colleges and 70 per cent of

14. RETAIL SECTOR
• accounts for 14-15% of its GDP
• one of the top five retail markets in the world by
economic value.
• one of the fastest growing retail market in the world,
with 1.2 billion people
• 2012, India approved reforms for single-brand stores
welcoming anyone in the world to innovate in Indian
retail market with 100% ownership, but imposed the
requirement that the single brand retailer source 30
percent of its goods from India. Indian government
continues the hold on retail reforms for multi-brand
stores

15. TOURISM
• Tourism - is relatively undeveloped, but a high
growth sector.
• contributes 6.23% to the national GDP
• majority of foreign tourists come from USA
and UK.
• India's rich history and its cultural and
geographical diversity make its international
tourism appeal large and diverse.
• heritage and cultural tourism along with
medical, business and sports tourism. fastest

16. Top 10 Tourist
Destination in
India

17. 10 Kerala backwaters

18. 9 Lake Palace

19. 8 Virupaksha Temple

20. 7 Palolem

21. 6 Kanha National Park

22. 5 Harmandir Sahib

23. 4 Jaisalmer

24. 3 Ajanta Caves

25. 2 Varanasi

26. 1 Taj Mahal

27. AGRICULTURE
• One of the strong sectors of Indian economy
(18% of GDP)
• 58 % population of India depends on
Agriculture
• largest producer of coconuts, mangoes,
bananas, cashew nuts, pulses, ginger
• Second largest producer of rice, wheat,
cotton, fruits and vegetables
• Contributes to 1/6th of the export earnings
• Green Revolution- breakthrough

28. BANKING SECTOR
• State Bank of India-1806
• 1990’s reform- entry of many foreign banks
• IT revolutionised- so came online banking
• The public sector banks hold s 75% of total
assets of the banking industry, with the private
banks holding- 18.2% ,foreign banks - 6.5%
• mandatory for banks to provide 40% of their
net credit to priority sectors like agriculture,
small-scale industry, retail trade, small
businesses

29. STATE BANK OF

30. Impact of New Banking Policies
• Encouraging mergers
• reducing government interference
• increasing profitability and
competitiveness
• foreign players

31. FINANCE
• Rating agency S&P degrade India, as result
foreign players withdraw their investments.
This leads to a decrease in the forex reserve.
• the banking industry in india is in a good
position, which makes good profit from its
operations.
• the value of rupee depreciating when
compared to the us dollars. As now
INR/1USD= 55.339.
• - Sensex crossed 17000 mark recently after a

32. -current inflation rate in india is at 7.25%.
The fight against inflation is done by
central banks which control the money
supply by increasing or decreasing short
term interest rates.
current bank rate is 9%, repo rate is 8%
and reverse repo rate is 7%.
CRR=4.75% and SLR is 24%
non banking financial institutions also
plays an important role .

33. EXTERNAL TRADE
• Some of its regional and bilateral
trade agreements are
• India-Sri Lanka Free Trade
Agreement,
• Trade Agreements with
Bangladesh, Bhutan, Sri Lanka,
Maldives, China, and South Korea.
• India-Nepal Trade Treaty,

34. Comprehensive Economic Cooperation
Agreement (CECA) with Singapore.
Framework Agreements with the Association
of Southeast Asian Nations (ASEAN),
Thailand and Chile.
Preferential Trade Agreements with
Afghanistan, Chile, and Mercosur (the latter
is a trading zone between Brazil, Argentina,
Uruguay, and Paraguay).
India- pushing for a more liberal global trade
regime, especially in services.

35. EMPLOYMENT & UNEMPLOYMENT
• Agricultural and allied sectors -52.1%.
• Avenues for employment- IT and travel and tourism sectors, which have
high annual growth rates of above 9%.
• Unemployment in India is characterised by chronic (disguised)
unemployment.
• 11th five-year plan identified the need for - congenial environment for
employment generation, by reducing the number of permissions and other
bureaucratic clearances required.
• Inequalities and inadequacies in the education system have been identified
as an obstacle preventing the benefits of increased employment
opportunities from reaching all sectors of society.

36. PUBLIC WELFARE IN INDIA

37. The Directive Principles of State
Policy, enshrined in Part IV of
the Indian Constitution reflects that
India is a welfare state. Seats are
reserved for scheduled
castes and scheduled tribes in
government jobs, educational
institutions, Lok Sabha and Vidhan

38. The government has passed laws for
the abolition
of untouchability, Begar and Zaminda
ri. The government has opened Fair
Price Shops, where essential
commodities are sold at reasonable
prices to the poorer sections of the
society.

39. In 2000, the union government's
expenditure on social services
(includes education, health, family
welfare, women and child
development, and social justice
andempowerment), rural
development, and basic minimum
services was approximately US$7.7
billion (Rs361.7 billion), which was
11.1 percent of total government

40. The union and state governments
maintain reserved seats in political
and education institutions for lower
castes, indigenous persons, and
others based on their percentage of
the population. Development
programs have been produced —
often at state or local levels — for
social development and the
empowerment of women and lower

41. THANK YOU