The document summarizes India's economic development over time. It notes that India will become the 3rd largest economy in the world by 2032 according to Goldman Sachs projections. India adopted socialist policies from 1947-1991, which led to slow growth. After adopting liberalization, privatization, and globalization policies in 1991, India's economy grew significantly faster. Major industries now include services, telecommunications, pharmaceuticals, and information technology.

2. Overview
• The Economy of India is the ninth largest in the world by nominal GDP and
the fourth largest by purchasing power parity (PPP).
• The famous Goldman Sachs report ( Dreaming with BRICs: The Path to 2050 )
states that, among Brazil, Russia, India and China, India will grow the fastest
over the next 30 to 50 years by leveraging its demographic advantages and
through continued development
• India’s GDP will exceed Italy’s in 2016, France’s in 2019, Germany’s in 2023
and Japan’s in 2032
• INDIA TO BECOME THE 3RD LARGEST ECONOMY IN THE WORLD BY 2032
AND…
THE STORY BEGAN IN 1947

3. Pre LPG
• Social democratic policies governed India's economy from 1947 to 1991.
• The economy was characterized by
Extensive regulation
Protectionism
Public ownership
Pervasive corruption and
Slow growth.

4. GDP- A COMPARISON
Graph shows per
capita GDP of
south Asian
economies &
South Korea as a
percent of the
American GDP per
capita

5. Average GDP growth - India & the World

6. Current scenario
• India's large service industry accounts for 57.2% of the country's GDP
• The industrial sectors contribute 28.6%
• The agricultural sectors contribute 14.6%
• Major industries in India includes
Telecommunications
Textiles
Chemicals
Food processing
Steel
Cement
Mining
Petroleum
Machinery
Information technology-enabled services and pharmaceuticals. (2009-10)

7. GDP Growth
GDP growth after
LPG

8. Introduction to LPG
• July 1991,India has taken a series of measures to structure the economy and
improve the BOP position. The new economic policy introduced changes in
several areas.
• The policy have salient feature which are: -
 Liberalization (internal and external)
 Extending Privatization
 Globalization of the economy

9. The path to Liberalization
• Relief for foreign investors
• Devaluation of Indian rupees
• New industrial Policy
• New trade policy
• Removal of import Restrictions
• Liberalization of NRI remittances
• Freedom to import technology
• Encouraging foreign tie-ups
• MRTP relaxation
• Privatization of public sector

10. Examples
 National Thermal Power Corporation
 Indian Oil Corporation
 Mananegar Telephone Nigam Limited
 Steel Authority India Limited
 Bharat Petroleum Corporation Limited
 Hindustan Petroleum Corporation Limited
 Bharat Heavy Electronics Limited

11. The path to Privatization
• Liberalization Approach
• Relative Share Enlargement Approach
• Association of Private Sector Management Approach
• Transfer of Minority Equity Ownership Approach
• Transfer of Complete Ownership Approach

12. Examples
• Lagan Jute Machinery Company Limited (LJMC)
• Videsh Sanchar Nigam Limited (VSNL)
• Hindustan Zinc Limited (HZL)
• Hotel Corporation Limited of India (HCL)
• Bharat Aluminum Company limited (BALCO)

13. The path to Globalization
 Exporting
 Licensing/Franchising
 Contract manufacturing
 Management contract
 Assembly operations
 Fully owned manufacturing facilities
 Joint venturing
 Merger and acquisition
 Strategic alliance
 Countertrade

14. Post LPG

15. Agriculture
• India
• The world’s most irrigated land mass
• World’s 2nd largest exporter of rice & 5th largest exporter of wheat
• Food production: India’s Ranking in the World
• 1st Tea, Milk
• 2nd Rice, wheat, sugar
•

16. Industrialization
• Industry accounts for 28% of the GDP & employs 14% of the total workforce.
• Textile manufacturing is the second largest source of employment after
agriculture
 It accounts for 20% of manufacturing output
 Provides employment to over 20 million people
 Ludhiana produces 90% of woolens in India and is known as the
Manchester of India
• India is 13th in services output.
 Provides employment to 23% of the work force
 It has the largest share in the GDP, accounting for 55% in 2007, up from
15% in 1950

17. Industrialization
• Information technology and business process outsourcing are among the
fastest growing sectors
 Having a cumulative growth rate of revenue 33.6% between 1997–98 and
2002–03
 In 2009, seven Indian firms were listed among the top 15 technology
outsourcing companies in the world.
• Mining forms an important segment of the Indian economy
 The country produces 79 different minerals (excluding fuel and atomic
resources) in 2009–10
• Organized retail supermarkets accounts for 24% of the market as of 2008

18. Some Indian Examples Benchmarked with the Best
In The World

19. FDI INFLOWS TO INDIA
*

20. MNCs leveraging the India Advantage

21. Banking & Finance
• The Indian money market is classified into the organized sector comprising
Private banks
Public banks
as scheduled banks
Foreign owned commercial banks and
Cooperative banks
• The unorganized sector includes
Individual or family owned indigenous bankers or money lenders and non-
banking financial companies

22. Banking & Finance
• Prime Minister Indira Gandhi nationalized 14 banks in 1969
• Followed by six others in 1980
• The number of bank branches has increased from
 8,260 in 1969 to 72,170 in 2007
• India's gross domestic saving in 2006–07 as a percentage of GDP stood at a
high 32.7%

23. Energy and Power
• India is the fourth largest consumer of oil in the world
• India's oil reserves meet 25% of the country's domestic oil demand
• India imported $82.1 billion worth of oil in the first three quarters of 2010
which had an adverse effect on its current account deficit.
• The petroleum industry in India mostly consists of public sector companies
such as
 Oil and Natural Gas Corporation (ONGC)
 Hindustan Petroleum Corporation Limited (HPCL)
 Indian Oil Corporation Limited (IOCL)
 Reliance Industries Limited (RIL) operates the world's largest oil refining
complex

24. The India Advantage
Excellent network
Well-developed
of research laboratories
base industries
Proficiency in Pro active
English policy framework
Extensive clinical trial
opportunities
Rich biodiversity
Low manpower Trained manpower
costs and knowledge base

25. Thank
you