India is Growing but Not Developing as a nation

1. INDIA IS GROWING BUT NOT
DEVELOPING AS A NATION

2.  Tenth most Industrialized
country & the third largest
economy (PPP)
 Known strength in
software and
manufacturing
 GDP (2013): USD $4.99
trillion PPP) ~$1.67 trillion
at official exchange rate
 Exports USD 313 billion in
FY 2013-14
 Imports USD 467 billion in
FY 2013-14
 Inflation rate is 9.6% in FY
2013-14
 GDP real growth rate (2013-
14) 3.2 % vs 7.5% in 2010-
2011
 Industry production growth
now 8.5%
 Strong Equity Market.
Capitalization: ~$600 Bn
 Corporate earnings growth >
20% last three years.
 GDP composition by sector:
agriculture: 17%
industry: 25%
services: 56%
 Poverty rate: 29%;
Unemployment rate: 8.8%
India- Fact File
India: Fact File & Economic Outlook
India- Economic Outlook
Source: CIA, World factbook

3. GDP (US$bn)
India emerging as the third largest economy, 2050
BRIC Report

4. Backed by strong fundamentals – INDIA’s GDP & among Top 5 economies ( PPP )
SOURCE :
WWW.QUANT.
ASIA
India’s
GDP
Among the
top 5
economies
(PPP)

5. India Growth Story
The factors driving growth
• Population & demographic trends: India’s growth dividend
• Human capital
• Rising integration into global trade and investment
• Investment trends: huge potential in infrastructure
• Policy and institutional determinants of growth
• Vibrant and substantial domestic market

6. Is India developing as a nation???
India is growing however
Development is not there in terms of:
•Low agriculture growth
•Low quality employment growth
•Low human development
•Rural urban divides
•Gender and social inequalities
•Regional disparities
Future GDP Growth
•Currently a $1.67 trillion Economy
with a population of 1.27(2013) billion
•To sustain 9% growth & progress to a
double digit growth rate
inclusiveness of all members of
society is required.
•Recognition that inclusive growth
should be achieved to reduce
poverty & raise economic growth

7. India v/s INDIA
D
I
V
I
D
E

8. Elements of development as a Nation
Poverty Reduction &
increase in quality
and quantity of
employment
Reduction in
regional disparities
Agricultural
Development
Social Sector
Development
Protecting the
Environment
Five inter-related elements of Development

9. 1. Poverty level more in few states - Bihar, Uttar Pradesh , MadhyaPradesh
,Orissa, Chhattisgarh & Jharkhand.
2. In state Like Maharastra , Gujarat ,Tamilnadu & Karantaka, AndhraPradesh 1/3
rd of Population living under poverty.
3. Concentrated among agricultural labourers, casual workers,Scheduled Castes
and Scheduled Tribes.
4. 70% of the poor are from rural areas.
Poverty
Source : www.equitymaster.com

10. • Nearly three-quarters of India’s families depend on rural incomes.
• The majority of India’s poor (some 770 million people or about 70 percent ) are
found in rural areas.
• India’s food security depends on producing cereal crops, as well as increasing its
production of fruits, vegetables and milk to meet the demands of a growing
population with rising incomes.
Ref : world bank
Issues and Priorities for Agriculture

11. Social Sector Development
 Malnutrition
 Lota Syndrome – Sanitation facility access
 Education & Skill
 Drinking Water Sources
 Human Development Index
 Healthcare
 Infant Mortality Rate
 Literacy
 Child labour

12. Regional Disparities
In general, richer states grew faster than the poorer state
Post-reform period Income inequality across the States increased & its worsening.
Benefits of economic growth have been largely confined to the better developed areas.
Paradoxically, it is the natural resource-rich areas which continue to lag behind
 Growth Rates have been lower in the poorer states.
Income : Per capita net state domestic product at current prices (2009-10) Highest Rs.77,878 in
Haryana, lowest Rs. 14,654 in Bihar , All-India Net National Income / capita- Rs. 44,345
Human Development Indicators - Female infant mortality rate -13(12) in Kerala to 72(70) in
Madhya Pradesh. Literacy rate varies from 47% in Bihar to 91 % in Kerala Source-Eco. survey 10-11
Causes Investment in physical and Technology Governance human capital 1/29/2012 29
CAUSES
Investment in
physical &
human capital
Technology Governance

13. Environmental Problems
It takes 1000 years for a plastic bag
to degraded : effects on ground
water & land quality
Energy generation : Mostly from coal
in India – Thermal Power
Floodwaters – Effect of climate
change ?
Deforestation : A Single tree will
absorb approx. one ton of CO2 in its
life time.
Manufacturing Industries : Steel ,
Cement , etc.
Rapid increase in vehicles using
fossil fuels.

14. CONCLUSION
 Development is not purely an economic phenomenon but rather a multi –
dimensional process involving reorganization and reorientation of the entire
economic and social system.
 Pollution control is fundamental and essential as to avoid long term damage to
the environment as a consequence of acid rain, green house effect and possible
Global Warming, and the threat to the ozone layer.
 The resources & the infrastructure will make it possible for the weakest Indians to
receive the benefits of economic growth.
 The Government, the public sector, private sector , NGOs , Media and civil
society has to play a active constructive role.

15. “ Let all people be happy,
Let all live with complete health,
Let all know what is good & what is not so good,
Let no body be subjected to troubles “
By : Aftab Siddique