5. China Vs India
Rising Dragon
(China)
Crouching Tiger
( India)
Rank 2nd 11th
Fixed Exchange Ratio USD = 6.79 Renminbi
( Yuan)
USD 1 = Rs. 46.6
GDP USD 4.99 Trillion USD 1.25 Trillion
GDP Growth 9.1% 7.4%
GDP Per Capita USD 3677 USD 1031
Population below
poverty Line
2.8% 40%
6. What is new economy
1.The new economy is used to describe as contemporary
developments in business and the economy at the threshold of 20th
century.
2.The term new economy is associated with practices such as BPO
,KPO and Business Process Re-engineering.
3.It is Network Information and Knowledge economy.
4.New economy is one in which the WORLD is FLAT.
5. An economy which is based on
Information,Knowledge,Communication.
Networking, technological innovation, Creativity, Outsourcing and
service Sector led growth is called New Economy.
7. Markets
Issues Old Industrial
Economy
New Knowledge
Economy
Economic Development Steady & Linear,
Predictable
Volatile & Chaotic
Market Changes Slow & Linear Fast & Unpredictable
Economy Supplier Driven Customer Driven
Life Cycle of Products &
Technology
Long Short
Key Economic Drivers Large Industrial Firms Innovative
Entrepreneurial
Knowledge Based Firm
Scope of Competition Local Global Hyper competition
8. Enterprise
Issues Old Industrial
Economy
New Knowledge
Economy
Pace of Business Slow Appreciably faster with
ever-rising customer
expectations
Emphasis on Stability Change Management
Business Development
Approach
Vision, Mission, Goal,
Action Plan
Opportunity Driven,
Dynamic Strategy
Success Measure Profit Market Capitalization
Organization of
Production
Mass Production Flexible Production
9. Work Force
Issues Old Industrial
Economy
New Knowledge Economy
Leadership Vertical Shared Employee
empowerment & Self
Leadership
Work Force
Characteristics
Mainly Male, High
Proportion of Semi
Skilled & Unskilled
No Gender Bias, High
Proportion of Graduates
Skills Mono Skilled ,
Standardized
Multi Skilled, Flexible
Education
Requirement
A Skill or a degree Continuous Learning
22. Other major characteristics
Shift in growth trajectory
New business practices
Adoption of common standards
Heavy investment in ICT
Faster technical productivity
Flat level playing field
23. Other major characteristics
Political economy
flood of white goods
Fierce competition
share shift economy
Customization
Reduced product life
Potato chips to computer chips
24. New rules of the game
1.Law of connection
2.Law of exponential spread
3.Law of lateral success
4.Law of inverse pricing
5.Law of epidemiology
6.Law of loyalty to network
7.Law of devolution
8.Law of displacement and churning
25. Icons of New Economy in India
Rajeev Gandhi
Manmohan Singh
P.Chidambaram
Sam Pitroda
Montek Singh Ahluwalia
Kirit Parikh
Sabir Bhatia
Nandan Nilekani
26. Icons of New Economy in India
Indira Nooyi
Chanda Kocchar
Kiran Majumdar Shaw
Arun Jain
Usha Thorat
N.R.Narayan Murthy
Ajim Premji
Mukesh Ambani
Anil Ambani
Ratan H.Tata and E. Shridharan
27. CONCLUSION
New economy is not end of history. It is interim until replaced by
new one.
World is waiting for an emerging economy in which hawkers
delivering news papers will also read those news papers, masons
building houses will live in those houses and labours or
mechanics cleaning or repairing cars will own those cars.
28. Andhiya Maghroor Darkhton ko Patak Jayegi,
Wahi Shakh Bachegi jo lachak jayegi,
Aasman chhoone ka andaza ho jayega tumhen,
Jab zameen panw ke neeche se khisak jayegi
