Indian Economy Analysis

1. COMPETITIVE INDIA
PRESTIGE INSTITUTE OF MANAGEMENT GWALIOR
ADITI UPADHYAY
ANKIT PANDEY
MOHIT GARG
BBA 4TH (A)

2. Competitiveness
In General term
It is an ability and performance of a firm, sub-sector or
country.
In Nation`s Point of view
The set of institutions, industries, policies, and factors
that determine the level of productivity of a country
• World Economic Forum, in its Global Competitiveness
Report
• The Institute for Management Development, in its
World Competitiveness Yearbook.

3. Basis to Achieve Competitiveness

4. CLASSIFICATION OF THE TRANSFORMATIONAL
PHASES OF INDIA INTO THREE PARTS:-
1950-
1970
1971-
1990
1991-TO
PRESENT

5. 1950-1970
(Achievements & Motives)
• Focus on National Income.
• Focus on remove the economic inequalities.
• Green Revolution was Introduced
• Literacy rate was around 20-30%.
• Cement Industries and Fertilizers Plant were
built.
• The highest growth was around 3-4%.
• IIM and IIT`s were Introduced during this Period.

6. 1971-1990
(Achievements & Motives)
• Focus was to bring rapid Industrialization
along with price stability and unemployment
issues.
• Operation Flood was Introduced
• India`s GDP was around 5-6%.
• Unemployment rate was reduce to 6%
• Several Space missions were launched.
• Investment in Road and Railway Networks
were
• Computerization

7. 1991- To Present
(Achievements & Motives)
• Golden Era
• L.P.G was introduce .
• Market Oriented
• Foreign Investment and Foreign Technology
• Computerisation was highly evolved in this
period
• GDP Rate was 8-9%
• India is having second biggest road network
and one of the biggest railway network in
World

9. India`s Competitiveness
• Rank of India is 49 out of the 133 nations in the Global
Competitiveness Index
• India performs extensive poor in Health and Primary
Education with a rank of 101
• Energy and transport infrastructure ranked at 76th
• India’s financial system ranks 16th
• India has a strong banking system ranked at 25th
• India ranks 4th in market size
• India’s market efficiency reasonably good at rank 48th

10. 1ST PILLAR: INSTITUTION
• Government
• JUDICIARY SYSTEM
• PRIVATE INSTITUTION
2ND PILLAR: INFRASTRCTURE
• ELECTRICITY
• ROAD TRANSPORT
• PORT INFRASTRUCTURE
• AIR TRANSPORT
• RAILROAD
India’s performance could be analysed on the basis
of each of the 12 pillars of competitiveness.

11. 3RD PILLAR: MACRO ECONOMIC STABILITY
• Government Borrowing
• Inflation
4TH PILLAR: HEALTH AND PRIMARY
EDUCATION
5TH PILLAR: HIGHER EDUCATION AND
TRAINING

12. 6TH PILLAR: GOODS/SERVICES MARKET
EFFICIENCY
• TAX STRUCTURE
• MARKET COMPETITION
• FORMAL SECTOR
7TH PILLAR: LABOUR MARKET EFFICIENCY
• FIRING COST
• EMPLOYER AND EMPLOYEE RELATION
• LABOUR EFFICIENCY
• BRAIN DRAIN

13. 8TH PILLAR: FINANCIAL MARKET
SOPHISTICATION
• EQUITY MARKET
9TH PILLAR: TECHNOLOGICAL READINESS
10TH PILLAR: MARKET SIZE
• SALES TAX
• EXPORT MARKET

14. 11TH PILLAR: BUSINESS SOPHISTICATION

15. 12TH PILLAR: INNOVATION
• ACADEMICS
• RESEARCH ORGANIZATIONS
• PRIVATE SPENDING
• IPR

16. COMPETITIVE GROWTH OF INDIA
DURING DIFFERENT FIVE YEAR PLANS
S.no.
Various
Parameters for
Competitiveness
9th
Five
year plan
(1997-
2002)
10th
Five
year
plan
(2002-
2007)
Growth
Rate
between(9th
and 10th
plan)
11th
Five
year plan
(2007-
2012)
Growth
Rate
between
(10th
and
11th
plan)
1. GDP 5.55% 7.8% 40.54%* 7.9% 1.28%*
2. Infrastructure
US$
107.4
billion
US$
173.3
billion
61.35%*
US$
387.3
billion
123.48%*
3. Literacy Rate 64.8% 67.8% 04.62%* 74.4% 9.73%*
4.
Unemployment
Rate
6.0% 5.1% -15%* 3.7% -27.45%*
5.
Agricultural
Growth Rate
3.9% 3.8% -02.56%* 4.0% 5.26%*
6. Industrial Growth 8.2% 9.7% 18.29%* 11.0% 13.40%*
7. Poverty Rate 36.1% 29.2% -19.11%* 22% -24.82%*
8. Per Capita Income 2240 3640 62.5%* 5380 47.80%*

17. CHALLENGES BEFORE ACHEIVEING
COMPETITIVENESS

18. Concluding Remark
India has to surpass each of these barriers in order to compete
globally. Inefficient government bureaucracy and corruption
should be the primary focus of government. India has
successfully implement reforms in 1991. But the World economic
Forum’s executive survey demonstrates the need of further
reforms in terms of restriction and liberalization. Access to
financing, tax regulation and policy stability are viewed as
hurdles in India. The policy makers have to focus on factors like
sustainability, environment, inclusive growth and social sector
both during drafting the policy and implementing it.