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Economic reforms and trends
This document analyzes economic reforms and trends in national income in India. It discusses the objectives of studying pre-reform and post-reform impacts on GDP growth and intersectoral growth. Empirical findings show that GDP growth increased slightly from 5.41% pre-reform to 5.85% post-reform. Agricultural sector growth declined from 3.1% to 2.6%, while industrial sector growth decreased from 7.35% to 5.88%. However, service sector growth increased from 6.35% to 7.4%. In conclusion, agriculture recorded low growth during reforms, while evidence supports a fall in industrial output and rise in services, with NNP and per capita NNP growing during reforms
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Economic reforms and trends
- 1. Economic Reforms &Trends In National Income Presented By Prof M.M.Joshi
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- 3. Economic Reforms & Trendsin National Income A challenge or an opportunity ?
- 4. IMPORTANCE Economic reforms havehad a deep impact on income propagation on the Indian Economy.The study is relevant in studying the changes in income in various sectors of the Indian Economy. The scenario of the Indian Economy changed after the new economic reforms were implemented in this country in the year 1991. This study tries to analyze the pre reform and post reform impact on the Indian Economy.
- 5. OBJECTIVES • To analyzepre and post reforms impact on the growth of GDP at factor cost . • To analyze intersectoral growth rate .
- 6. Review of theliterature * Mahesh Joshi (2003) states that economic reforms shall be a failure if agriculture and rural development is neglected. * V.D. Vidyarthi and Asha Rani (2003) correlate economic reforms with greater productivity in agriculture .
- 7. HYPOTHESES • GDP, NNP& Per Capita NNP did not register a modest growth rate in the Post Reforms period. • Agriculture sector has a low growth rate in the post reform period. • Industrial sector has registered a low growth rate in the post reforms period. • Service sector has not grown in the post reform period.
- 8. METHODOLOGY • Basic econometricmodels like linear growth models,elasticity have been used . • Secondary data from various sources like CSO,RBI Bulletin has been used for empirical calculations.
- 9. Empirical Findings Comparison betweenPre & Post reforms change in GDP Period LGR % Intercept b-coeff, Elasticity T-Test 1980-91 91-2004 5.41 5.85 356469.8 610895 28519.14 60393.41 0.32 0.41 18.55 36.78 Source -Empirical findings
- 10. A comparison betweenpre & post reform change in GDP originating in Agri. sector Period LGR % Y-intercept b-coeff. Elasticity T-test 1980-91 1991-04 3.1 2.6 152778 213634 5820.7 7098.6 0.19 0.18 8.1693 11.95 Source : empirical findings
- 11. A comparison betweenPre & Post reforms changes in GDP originating in Industrial Sector Period LGR % Y- intercept B - coeff. Elasticity 1980-91 1991-04 7.35 5.88 58757 132744.7 77329 13272.28 0.44 0.41 Source: empirical findings
- 12. A comparison ofService sector output coefficient in pre & post reforms Period LGR % Y-intercept b-coeff. Elasticity T-test 1980-91 1991-04 6.35 7.4 145008.1 257410 14892.53 39473.07 0.38 0.51 20.21186 27.63324 Source: empirical findings
- 13. CONCLUSIONS * Agriculture hasrecorded a low growth of output during reforms periods. * Verifications also support the case of fall in industrial output, and a rise in output in service sector . * The claim that NNP & per capita NNP has grown during the reforms period stands accepted . Hence the euphoria of economic reforms appears to be elusive barring a few exceptions.
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