1. The document provides an overview of the Indian economy, including key economic indicators and statistics from 2015. 2. It outlines the structure and characteristics of the Indian economy, such as its developing status, agricultural base, and economic reforms since the 1990s that have liberalized the economy. 3. The economic reforms have transformed India into one of the fastest growing economies in the world with an average growth rate of 7% over the past two decades.

1. Module 5 - Syllabus
Indian Economic Development:
● Overview of Indian Economy – Recent Changes in
Indian Economy – Measurement of National Income:
Basic Concepts, Components for GDP – Measuring of
GDP and GNP – Problems in measuring National
Income – Growth Rate – Business Circle – Features –
Phases – Economic indicators – Inflation Types –
Measurement – Kinds of Price indices – Primary,
Secondary and Teritary Sector in the contribution to
the economy – SWOT analysis of Indian Economy.

2. Latest Facts - 2015
● 1 US Dollar = 65.45 INR as on 01.11.2015.
●
GDP Rank: 7th
(Nominal), 3rd
(PPP) – Oct 2015.
● GDP Growth Rate: 7.3% (2015-16).
● GDP per capita (Nominal) $ 1,688 (Oct 2015).
●
GDP per capita (PPP) $ 6,209 - 121st
in world.
● GDP Contribution: Agriculture 17% (2013-14)
● GDP Contribution: Industry 26% (2013-14)
● GDP Contribution: Service 57% (2013-14)

3. Latest Facts - 2015
● Population below poverty: 12.4%.
● Labor Force by Occupation: Agriculture 49%.
(as on 2012)
● Labor Force by Occupation: Industry 20%. (as
on 2012)
● Labor Force by Occupation: Service 31%. (as
on 2012).
● India is classified as 'Newly Industrialized
Economy'.

4. Latest Facts - 2015
● India is one of the G20 Major Economies,
● India is a member of BRICS,
● India is a developing economy with an average
growth rate of 7% for the past 2 decades,
● India became the fastest growing economy
replacing the Republic of China (2014).
●
India is the 9th
Fastest Growing economy in
service sector, since 2001 and contributes 57%
of GDP (2012-13).

5. Latest Facts - 2015
● India has large Educated English speaking
population to become the major exporter of
BPO, KPO and other software services exports
(2013-14). (ITES Firms)
●
India is the 4th
largest start up hub in the world
with 3,100 technology start ups in 2014-15.
●
India ranks 2nd
in world wide farm output.
● India has $600 billion worth retail market in
2015.
● India is one of the fastest growing E-Commerce
Markets in the world.

6. Latest Facts - 2015
● India major stock exchange – Bombay Stock
Market ranks 11th
in the world. (Feb 2015)
● India major stock exchange – National Stock
Market ranks 12th
in the world. (Feb 2015)
● India is the member of Common Wealth
Nations, South Asian Association for Regional
Co-operation, IMF, the World Bank, the World
Trade Organization (WTO), the Asian
Infrastructure Investment Bank (AIIB), New
development BRICS bank, and the United
Nations.

7. Certain Facts with USA
● In India, 70% (presently about 58%) of the
population are employed in agriculture, while
only 3% in USA,
● Our per capita income is one-thirteith of USA
per capita income,
● In 2002, the Purchasing Power Parity (PPP)
was one fourteenth of USA.

8. OVERVIEW OF INDIAN ECONOMY
● One of the fastest growing economies in the world.
● One of the highest population growth rate in the
Globe,
● One of the highly diversitied economy,
●
7th
Largest Country,
●
4th
Largest on the Purchasing Power Parity in the
World,
● There is vast difference between the richest and
poorest states (3-4 times of per capita income)

9. OVERVIEW OF INDIAN ECONOMY
● Since 1991, Economic reforms has been initiated for a
investment-friendly environment, through a liberalized
frame work spinning the whole economy.
● Statistical reports 2010 states, half the poor people in
the world live in India.
● 2010 Statistics states, 40% of the working population
are under employed.
● The per capita consumption of paper is only 2 Kgs,
while the per capita expenditure on education is
around Rs. 300 Crores. (Poorest Human Capital)

10. OVERVIEW OF INDIAN ECONOMY
● Agriculturally Developed states in the Country, include
Punjab, Haryana.
● Industrially Developed states in the Country include
Maharastra, Gujrath.
● Highest per capita income states include Punjab,
Haryana, Puducherry.
● Lowest Per Capita Income state include Bihar, Odissa
States.
● India needs vast investments in infrastructure in State
and National Highways, Health care, Rail and port and
so on.

11. OVERVIEW OF INDIAN ECONOMY
● The GDP of the country remains below 5%.
(4.9% in the year 2012-13, and 2013-14 it was
4.5%).
● The interim budget for 2014 budget has
projected the fiscal deficit for 2014-15 fiscal at
4.1% of GDP or 5.29 Lakh Crore.
● Foreign Direct Investment (FDI) has doubled
over the years in sectors like Automobiles,
Telecommunications, Pharaceuticals and
Constructions.

12. OVERVIEW OF INDIAN ECONOMY
● The Net Investment by FII (Foreign Institutional
Investments) into Indian Equity Markets since
the beginning of 2014 have crossed over Rs.
30,000 Crores, while the same for debt markers
also stands near Rs. 29,000 taking the close to
Rs. 60,000 Crores.
● Trade in 2013-14 grew to 3.98%, while imports
dipped to 8.11% during the same period

13. CHARACTERISTICS OF INDIAN
ECONOMY
● Underdeveloped Economy,
● Mass Poverty and Low Per Capita Income,
● Inequalities in Income Distribution,
● Predominance of Agriculture,
● Underdeveloped Natural Resources and
Inadequate Capital Formation.
● Demographic Pecularities (Growth of
population in 1961-2001 was 2.2%, presently it
is 1.7%)

14. CHARACTERISTICS OF INDIAN
ECONOMY
● Infrastructural backwardness/ inadequacies,
● Dualistic Economy (Mixed Economy),
● Unemployment and Underemployment,
● Quality of Human Capital,
● Rapid Population growth and high dependency
ratio,

15. CHARACTERISTICS OF INDIAN
ECONOMY
● India is one of the fastest growing economy in
the world.
● India's population grows at 2.5% per annum
(Reduced to 2.14% and presently further to
1.7%) and there is a high dependency ratio. (A
clear indication of population control has
got initiated)

16. Structure of Indian Economy
1. Underdeveloped Economy,
2. Dualistic Economy (Agriculture and Industry),
3. Mixed Economy (Public and Private),
4. Reforms of the economy, (1947 to till date),

17. Economic Reforms and Economic
Development
Economic Reforms:
1991 – India's Economic Liberalization has
moved the country to 'Market Based Economy'.
2008 – India has established as one of the
fastest growing economy in the world.

18. Economic Reforms and Economic
Development
● Economic Reforms can be seen in three
heads:
● Economic Reforms during Post Independence
Period (After 1947 to 1960).
● Economic Reforms – 1960s and 1980s,
● Economic Reforms – 1990s to present.
(The pre-liberalization period is from 1947 to
1992) and Post Liberalization Period is since
1992)

19. ●Economic Reforms during Post
Independence Period (After 1947 to 1960).
● Focus to make India a self sufficient.
● Economic Reforms were focused on
Agriculture, Infrastructure, and Defence.
● Five year plans were introduced in 1950.
● Emphasized on growth of Public and Rural
sector.
● In mid 1950s, huge scale of nationalization of
Industries like Mining, Telecommunications,
Electricity was done.

20. ●Economic Reforms – 1960s and
1980s,
● Efforts to make India selfsufficient,
● Emphasized on increase of production and
exports,
● Sucess of huge scale agriculture development
was done (Green Revolution, White
Revolution),
● Improved seeds, fertilizers and new irrigation
projects were undertaken,
● Our Prime Minister Rajiv Gandhi initiates the
first step of liberalization, removing and erasing
restrictions in various sectors.

21. ●Economic Reforms – 1990s to
present.
● Economic Crisis due to fall of Soviet Union and
problems in balance of payments and IMF
asked to bailout loan,
● Our PM Manmohan Singh initiated the
liberalization of economic liberalization reforms,
● Foreign Direct Investment (FDI) was
encouraged, Public Monopoly was stopped and
service sector was developed.
● Emphasized on 'Open Market Economic
Policies'.

22. Economic Reforms – 1990s to
present.
● From 1992-93 to 2001-02 (10 years) India
average growth rate touched 6% which put
India one of the world's fastest growing
economy.
● World economic Growth was slowed in second
half of 1990s, and had some hampered effect.

23. Economic Reforms – 1990s to
present.
Heads on Economic Reforms:
1. Savings, Investment and Fiscal
Discipline,
2. Reforms on Industrial and Trade
Policies, (Industrial Policies and Trade
Policies),
3. Foreign Direct Investments,

24. Economic Reforms – 1990s to
present.
4. Agriculture Reforms,
5. Infrastructure Developments,
6. Financial Sector Reforms,
7. Privatization, &
8. Social Sector Development in health
and Education.