India is experiencing rapid economic growth but there are still significant poverty and development issues, according to the document. While India's GDP growth rate is around 9.2%, over 70% of the population depends on agriculture, where growth has been only 2.7%. Two key regions, Eastern India and Central Tribal India, have very high poverty rates. Other ongoing problems include malnutrition, lack of education access, unemployment, and corruption. So while India is developing economically in some areas, it is not benefiting all citizens equally and poverty remains a major challenge.

1. India Shining: Myth Or
Fact.
By: saurav k chandan
Vivek kumar
Ankur Singh
Aditya raj
Arif khan
Rahul Ranjan
Surj anand
Mohit raj
Rajeev ranjan

2. Contents

3. Economics that hurt the moral well-being of an individual or a nation are
immoral.
Mahatma Gandhi

4. Background
British Rule and The Indian Economy:
 Two hundred years of colonial rule built a country incapable of meeting the
basic needs of its own population
 Turning the economy into a conveyor belt for raw commodities destined for
the manufacturing industries in Britain

5.  To tackle these problems, post-independence India chose a path of state
socialism, with a centrally planned industrialization policy aimed at input
substitution in manufacturing and agriculture.
 In the early 1990s, increased domestic and international pressures finally
led to full-fledged structural adjustment, and a process of economic
liberalization.

6. Statistics
 Pre- Independence
 Agriculture contribution to
GNP: 56.5% in 1950-51
 Workforce engaged in
agriculture: 76% in 1961
 Post- Independence
 Agriculture contribution to
GNP: 24.3 % in 2001-02
 Workforce engaged in
agriculture: 60% in 1999-
2000

7. Defining India.
India is a huge,
heterogeneous entity
that many of us know
little of. Consequently,
we often think it as a
vast tract of woefully
poor people, who labor
under the scorching
sun with rude ploughs
and emaciated
bullocks to earn
meager incomes that
barely make ends
meet.
We know little of our
heartland, and have hardly
any idea of how it has been
changing over the last
decade.

8. India includes hundreds of millions of people, living very different lives, and
undertaking profound and rapid change.
 What kinds of changes?
 How profound?
 How quick?

9. Changing Contours of India.
Among their findings:
 Over 1/3 of all households now have a main source of
livelihood other than farming;
 An increasing percentage of households live in permanent
dwellings;
 Families are investing more in the education of their
children

10.  9% of households owned TVs (other surveys I've seen have shown that
radio ownership is now nearly universal, creating interesting opportunities);
 over 30% of rural and urban households had at least one bank account.
But this is not the end………..
There is still overwhelming and appalling poverty is rural and urban India -- and
in some places it's getting worse, not better.

11. Poverty is shining in India
The official Head Count Ratio (HCR)
indicates that poverty on the aggregate
level declined at a slightly higher rate
than urban poverty in the period from
1993/94 to1999/00,indicating that
poverty reduction was indeed happening
in the countryside right along with
booming urban areas
The official statistics that rural and urban
poverty is declining more rapidly than
urban poverty have been questioned.

12.  It is possible that poverty has gone down during the 1990s, but not at the levels
published by the World Bank and not in the states that are particularly
impoverished.
 Neither the official nor adjusted poverty ratios show encouraging changes in the
geographical patterns of economic growth and poverty reduction.
Lets know what constitute the poor..
Two regions in particular are subject to very high rates of poverty: Eastern India
and Central Tribal India.

13. Who are Poor ?
Lets know what constitute the poor..
Two regions in particular are subject to very high rates of poverty: Eastern
India and Central Tribal India.
These areas include East Uttar Pradesh, North Bihar, North Bengal, Coastal
Orissa, Assam, Tripura, Bundelkhand, Jharkand, Vidarbha, Madya
Pradesh, Rajasthan, Western Orissa, and Telangana.

14. Economic Liberalization: Myths or
Reality
Myth-1: Higher percentage of people were lifted
out of poverty under the free market.
Facts: Official data show a drastic decline in
poverty during the last half of the 1990s.
But the fall in poverty owes much more to a
change in the way that poverty data were
collected and interpreted.
Poverty declined at no faster pace than in the
1980s and there are in fact indications of a
deceleration in poverty reduction despite a 30
percent increase in per capita income.

15. Myth-2 The Green Revolution will save India
from hunger once again.
Facts: But this revolution has bypassed most
Indian farmers, who live in the poorer states and
who are without access to large areas of land
necessary to profit from these technologies.
Small farmers produce 41 percent of the total grain
and over half of India's total fruits and vegetables
and they are more productive than the Green
Revolution farms even though they cultivate rain-
fed lands using only human labor and animal
traction.
The Green Revolution is not the answer to India's
hunger. The Green Revolution is not the answer
to India's hunger. The problem is of distribution,
not of production.

16. Myth-3 Trade liberalization will benefit farmers.
Facts: Liberalization has forced small farmers to
compete in a global market where commodity
prices have plummeted while the reduction of
government subsidies has made farming more
expensive.
Government sector investment in agriculture
registered a decline of 28.9 percent, leaving
farmers without access to affordable loans and
forcing them to turn to private lenders who
charge significantly higher interest rates.

17. Private banks only directed 10.8 percent of total credit to agriculture, well below
the government required 18 percent
Subsequently, farmers have turned to contract farming for large national and
international corporations, producing cash crops--cotton, potatoes and
chilies--for US and European markets instead of food for India's people.
But contract farming has greater risk and have left many farmers heavily
indebted, driving thousands of them to suicide

18. Myth-4 India's economic reform of public services target the poor more
efficiently.
Facts: Development expenditures as a share of GDP declined from 14 percent
in the late 1980s to less than 6 percent of total GDP in 2000.
In 2001 millions of tons of rotting grain was thrown into the sea, while starvation
deaths were reported in several states for the first time since the 1960s.

19. Myth-5 Economic reform has helped more Indians eat better.
Facts: Malnutrition has increased during the 1990s. The average calorie intake
has declined especially among India's poorest.

21. Furthermore, the production of some of the most important staples has declined
as agricultural land is increasingly used for export crops.
During the 1990s, five million hectares were converted from food-grain
production into cash crop production.
Net availability of food grains per person plummeted to levels unheard of since
the 1930s economic depression under British colonial rule.

22. Myth-6 Economic liberalization will lead to better economic opportunities
for women.
Facts: Historically, women have been the backbone of the economy, but they
are paid less, work longer, and do harder manual labor than men.
This situation has been exacerbated under neoliberalism.
Between 1991 and 2001, for example, the number of women in marginal jobs
more than doubled from 25 million to 51 million.

23. Myth-7 These problems caused by economic
liberalization are only temporary.
Facts: The government seems to be more
concerned with turning India into a leading global
exporter and technology hub than resolving the
massive poverty problems.
Budget cuts for development programs and the
public distribution system show that the political
will to address poverty problems has
disappeared, and without this political will, India's
areas will continue to experience increased
hardship.

24. Myth-8 The information technology boom in India
will benefit the poor.
Facts: Information technology only contributes 2
percent of total GDP and employs fewer than one
million people. While more than 230 million people
are employed in the agricultural sector.
Moreover they are unlikely to benefit directly from the
technology boom because the social and economic
mechanisms for redistributing the gains of the
information technology industry have been eroded
by the introduction of regressive taxes and cuts in
social welfare programs.

25. Job creation in the urban information technology sector does little to create
economic gains for India's poor.
Neoliberal policies have ghettoized the poor into particular states, into areas,
and into increasingly stratified social divisions.

26. INDIA
 1. 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

27. Average GDP growth - India & the World

28. SCENARIO
 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 are
Food processing, Chemicals, Textiles.
 Telecommunications includes Information
Machinery, Petroleum, Mining, Cement, Steel,
technology-enabled services and pharmaceuticals.
(2009-10)

29. Gross Domestic Product
GDP growth after LPG
 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
Liberalization (internal and external) feature which are: -
 Globalization of the economy Extending Privatization

30.  Pre LPG• Social democratic policies governed India’s economy
from 1947 to Extensive regulation 1991.• The economy was
characterized by Slow growth. Pervasive corruption and Public
ownership Protectionism.
 GDP- A COMPARISON Graph shows per capita GDP of south Asian
economies & South Korea as a percent of the American GDP per
capita.

31. VARIOUS FACTORS
 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
 Indian Oil Corporation National Thermal Power
Corporation Examples are:- Bharat Steel Authority India
Limited, Mananegar Telephone Nigam Limited,
Hindustan Petroleum Corporation Limited, Petroleum
Corporation Limited, Bharat Heavy Electronics Limited.

32. Privatization
 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
 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)

33.  Contract -Licensing/Franchising,
 Exporting-The path to Globalization Fully owned
 Assembly operations, Management contract,
manufacturing , Merger and acquisition, Joint
venturing, manufacturing facilities Countertrade,
Strategic alliance.
 Post LPG
 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•

34. Industrialization
 Industrialization• Industry accounts for 28% of the GDP &
employs 14% of the total workforce.• Textile manufacturing is
the second largest It accounts for 20% of source of
employment after agriculture Provides employment to over
20 million people manufacturing output Ludhiana produces
90% of woolens in India and is known as the Manchester
Provides employment to of India• India is 13th in services
output. It has the largest share in the GDP, accounting 23%
of the work force for 55% in 2007, up from 15% in 1950
 Industrialization• Information technology and business
process Having a cumulative outsourcing are among the
fastest growing sectors In 2009,¬growth rate of revenue
33.6% between 1997–98 and 2002–03 seven Indian firms were
listed among the top 15 technology outsourcing companies in
the world.• Mining forms an important segment of the Indian
The country produces 79 different minerals (excluding fuel
economy and atomic resources) in 2009–10• Organized retail
supermarkets accounts for 24% of the market as of 2008

35.  Banking & Finance• The Indian money market is
classified into the Public banks as scheduled Private
banks organized sector comprising Cooperative
banks.
 • The Foreign owned commercial banks and banks
Individual or family owned indigenous unorganized
sector includes bankers or money lenders and non-
banking financial companies.
 MNCs leveraging the India Advantage
FDI INFLOWS TO INDIA

36. Indian advantage
 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

37. Banking, finance & Energy
 Banking & Finance• Prime Minister Indira Gandhi
nationalized 14 banks in 1969• Followed by six others in
1980• The number of bank 8,260 in 1969 to 72,170 in
2007• India’s branches has increased from gross
domestic saving in 2006–07 as a percentage of GDP
stood at a high 32.7%
 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 Hindustan Petroleum Oil and Natural
Gas Corporation (ONGC) such as Indian Oil
Corporation Limited (IOCL) Corporation Limited (HPCL)
Reliance Industries Limited (RIL) operates the worlds
largest oil refining complex

39. INDIA SHINING ON PAPER OR
IN REAL
 We are Indian, so we have right to know where India
was and where India is? And It is our duty to decide
whether India is shining on paper or in real. It is known
to all of us that the India's GDP is about 9.2%. But the
question arises is it enough to know the prosperity of a
country? Can we say only on this basis that how our
brothers are living in the country? What kind of
problems they are facing?
 Definitely, the answer is in BIG numbers;. And if we
are talking about GDP then I want to say that we
cannot compare our GDP to the USA, Japan,
Germany, UK, France, China, Italy, Spain and
Canada. (GDP in million 2006-07) India 691,876 China
1,932,093 (Almost 2.5 times of Indian GDP) USA
11,667,515 (Almost 17 times of Indian GDP) we should
never forget that India is a country of farmers.

40. Agriculture
 It plays a vital role in the economy of India and the
GDP of agriculture is only 2.7%. It is too less in compare
of last year's 6%. About 70%of the Indian population
are based on the agriculture .In other word we can
say that G.D.P.(9.2%)is the growth of that 30%people
whose life is based on the Industry . Not only in the
area of agriculture but also Industries (cement, steel),
port, mining, gas and power are the main cause of
concern.

42. Education
 Next cause of concern is education. Education for all is
still a dream. Government missed the target for providing
education for all by 2007. About 70.5lakh children in the
6-14 age group are still out of school. Apart from these,
poverty, population, crime, corruption, illiteracy,
unemployment and misguided policies are the main
hindrance in the way of India to become a super power.
Growth in population is one of the main hindrance in the
way of India shining. It is the root of rest other hindrance
like poverty, crime, corruption, illiteracy, and
unemployment.
 But not only the population is affecting the rise of India
because the population of china is more than India and
still china is at the better position than India. Then
question again arises who is responsible for that? Is that
crime, corruption, illiteracy or unemployment? No doubt
there are corruption in each field.

43. EDUCATION AND ITS
ADVERSERIES
 Education, politics, civil service, almost there is corruption
in each area. The persons are seated at top level are
corrupt. Next is crime, It is growing like the mouth of surah.
Most of the states are suffering the problem of naxalite.
We are fighting each other on the name of cast, religion
and region. At that time we forget that we are Indian.
Illiteracy and unemployment are also major factor that
affecting our country’s growth. Neither we have proper or
suitable policy to stop growth in population and brain
drain nor to remove crime, corruption, illiteracy, and
unemployment. Where one part of our country is facing
problem of flood, the same time other part is facing
problem of drought.
 We don’t have any policies to fight with that problem.
“Now, I want to ask Is India shining? And my answer is
“yes” but in area of crime, corruption, brain drain,
illiteracy and unemployment.”

45. Conclusion
SHINING INDIA: LEAVING THE POOR BEHIND
The costs and benefits of neoliberalism have been unevenly
spread in India, and saw strong evidence to suggest that the
Indian government and the World Bank were being
misleading in their laudatory appraisal of the benefits of
structural adjustment in India.
India won its independence with a vision of a country in which
all were able to feed themselves.
The policies implemented under Nehru, and under Indira and
Rajiv Gandhi, were far from perfect, and were in many ways
crafted by elite pressure.
The past ten years have hurt too many, and at too high a price,
for the lessons of economic liberalization to be ignore.