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Indian economic growth and development.pptx
- 1. ECONOMIC GROWTH AND DEVELOPMENTWITH SPECIAL REFERENCE TO INDIA PRESENTED BY – PIYUSH YADAV
- 2. CONTENTS • Indian economy •History of the Indian economy • Indian economy after independence • Economy after the changes in 1991 • Future of the Indian economy • Challenges to the growth of the Indian economy • conclusion
- 3. INDIAN ECONOMY • Basedon the nominal GDP India is the fifth largest economy whereas, by PPP, it is the third largest. • The Indian economy has experienced numerous ups and downs over the past seven decades. At the time of independence, the nation's GDP stood at only Rs 2.7 lakh crore; today, it is close to Rs 150 lakh crore. The Indian economy has a middle-income developing market economy. • 50% of India's GDP is generated by the service sector, which is among the most significant for the country's growth and wealth. • Indian GDP Is 3.469 trillion dollars ( nominal; 2022 est ) and 11.665 trillion dollars ( PPP, 2022 est )
- 4. HISTORY OF THEINDIAN ECONOMY ( PRE COLONIAL) • India's economic history can be characterized as spanning from the Indus valley civilization until 1700 AD. • Indian economy at this time was very advanced. With the rest of the world, it has excellent trade relations. • When India gained its independence in 1947, its GDP had fallen to 2% from its peak of 25% to 35% between the years of one AD and 1000 AD.
- 5. • According toeconomic historian Angus Maddison in Contours of the world economy, 1–2030 AD: essays in macro-economic history, the Indian subcontinent was the world's most productive region, from 1 AD to 1600.
- 6. INDIAN ECONOMY AFTERINDEPENDENCE ( POST-COLONIAL ) • India’s economic policy after independence was influenced by the colonial experience. • The Industrial Policy Resolution of 1948 proposed a mixed economy. • India set up the Planning Commission in 1950 in order to oversee the entire range of planning, including resource allocation, implementation, and appraisal of five-year plans. • From the 50s to the 91, several industries, and companies were nationalized by the government. • License raj system and excessive state control resulted in slow economic growth in the post- colonial timeline.
- 8. THE ECONOMIC REFORMSOF 1991 • Economic liberalisation in India was initiated in 1991 by Prime Minister P. V. Narasimha Rao and his then-Finance Minister Dr. Manmohan Singh. • The reforms did away with the Licence Raj, reduced tariffs and interest rates and ended many public monopolies, allowing automatic approval of foreign direct investment in many sectors. • By the turn of the 21st century, India had progressed towards a free- market economy, with a substantial reduction in state control of the economy and increased financial liberalisation.
- 9. FUTURE OF THEINDIAN ECONOMY • India is already the fastest-growing economy in the world, having clocked 5.5% average gross domestic product growth over the past decade. • India may become the third-largest economy by 2030 overtaking Japan and Germany. S&P’s forecast is based on the projection that India's annual nominal gross domestic product growth will average 6.3% through 2030. • In a recent Morgan Stanley Research blue paper, analysts from various sectors examine how this new phase of economic development may result in a number of startling changes, including increasing credit availability, increasing India's share of global manufacturing, promoting the growth of new businesses, enhancing quality of life, and causing a huge rise in consumer spending in the years to come. • Over this time, shares of international exports may also double, and the Bombay Stock Exchange may have 11% annual growth, resulting in a market valuation of $10 trillion in the next ten years.
- 10. CHALLENGES TO THEGROWTH OF INDIAN ECONOMY • Low level of national income and per capita income. • Vast inequalities in wealth and income. • The predominance of agriculture. • Tremendous population pressure. • Massive unemployment.
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