understanding_indian_economy

Information about understanding_indian_economy

Published on March 21, 2010

Author: umanggoknp

Source: authorstream.com

Content

Understanding Indian Economy : Understanding Indian Economy By:-UMANG GOEL BHABHA INSTITUTE OF TECHNOLOGY Economic Development : Economic Development Approach to Economic Development Gradual Approach Big Push Approach Factors in Economic Development Natural Resources Capital Formation Technological Progress Knowledge Infrastructure Population and Human Resource Investment Conditions Political and Social Factors Indian Economy – an overview : Indian Economy – an overview India as Mixed Economy Instruments of Mixed Economy Industrial Policy Resolution Industrial Licensing Nationalisation Promotion of Private Sector Subsidies & SAPs Shortcomings of Mixed Economy Features of Indian Economy : Features of Indian Economy Mass Poverty and Low Per Capita Income Inequalities in income distribution Inadequate Capital Formation Predominance of Agriculture Demographic Peculiarities Unemployment and Underemployment Technological Backwardness Infrastructural Inadequacies Dualistic Economy Unfavourable social and value structure India as progressive nation : India as progressive nation Sustained Growth Self reliance and minimal dependence Agriculture Transformation Industrial Changes Infrastructural revolution Changes in Foreign Trade Strong Fundamentals Expansion of Education Reduction in Poverty More Employment Economic Planning of India : Economic Planning of India Growth of Idea of Planning in India Bombay Plan Gandhian Plan Sarvodya Plan Planning Commission and Five Year Plans Currently 11th five year plan (2007-2012) going on Economic Planning - Features : Economic Planning - Features Democratic Different Sectors Existence of Central Plan and State Plan Financial Planning Unchanging Priorities Prospective and Perspective Planning Central Planning Authority Set Objectives Government Control Complete Development Definite Time Slogans National Income (2007-08) : National Income (2007-08) GDP growth rate approx. 9% per annum 8.7% increase in National Income 7.2% increase in per capital income Agriculture growth in 2.6% Industry growth is 9.4% Services Sector growth is 10.7% Main Features of National Income : Main Features of National Income Dependence on Agriculture Poor Growth rate of Per Capita Income Unequal Distribution More expenditure on Food Low standard of Living Low growth rate of National Income Unequal growth rate of different sectors Income levels in Urban and Rural areas Regional Disparity More income on private sector Increasing share of organized sector Increasing significance of Territary sector. Cause of Low National Income of India : Cause of Low National Income of India Low rate of saving and investment Backward technology Rapid increase in population More dependence on agriculture Inadequate industrial development Unbalanced growth of different regions Fatalism Illiteracy Political factors Regional Imbalances : Regional Imbalances Goa, Haryana, Maharashtra, Punjab and Gujarat having max. per capita income in India Bihar, UP, MP, Orissa and Jharkhand having min. per capital income in India Causes of Inter regional variations : Causes of Inter regional variations Difference in agricultural productivity %share in total foodgrain production Difference in Net Irrigated Area Difference in Industrial Development % of People below poverty line Growth rate of Population Infrastructure of India : Infrastructure of India Two types Economic / Physical Infrastructure Transport Energy Communica;tion Irrigation Science & Technology Social Infrastructure Health Education Infrastructure – a challenge : Infrastructure – a challenge Low priority in Plans Huge requirement of Investment Long Gestation Period Exclusion of Private Sector Regional Imbalances Poor Maintenance Less Expenditure on R&D Infrastructure Development Plans in 11th Five Year Plan : Infrastructure Development Plans in 11th Five Year Plan Highways – 40000 Kms to be developed by 2012 Airports - likely investment by 2012 is Rs. 40,000 crore Railways - likely investment by 2012 is Rs. 22,000 crore Power generation – 60 to 70 thousand MW with an investment of Rs. 5,00,000 crore 1.5 Lakh villages to be electrified Infrastructure Development Plans in 11th Five Year Plan : Six lanning of roads upto 6500 Kms Construction of 7 Green field Airpots Telecommunication subscriber base to be increased to 600 million Construction of new rural roads upto 1,65,244 kms Rs. 11,02,327 crore has been porposed for social services Infrastructure Development Plans in 11th Five Year Plan Agriculture in India : Agriculture in India India has been ranked no. 1for: Total irrigated area Pulses Jute Spices Milk Butter and ghee Cashew nuts Agriculture in India : India has been ranked no. 2 for: Cultivable land Wheat Rice Sugar Fruits & Vegetables Tobacco Tea Agriculture in India Agriculture Growth : Agriculture Growth 10th Plan noticed 2.5% growth rate Per labourer productivity is only 391 US$ Egypt productivity of rice is more than thrice in India Wheat productivity in UK is about three times more than India Per hectare output of cotton in China is about three times in comparison to India Causes of Backwardness of Agriculture : Causes of Backwardness of Agriculture Human Factors Pressure of Population on Land Social Atmosphere Institutional Factors Small Size of farms Land Tenure System Causes of Backwardness of Agriculture : Technical Factors Inadequate Irrigation Facilities Old Agricultural Implements Old Methods of Cultivation Inadequate High Yielding Variety Seeds Shortage to Manures Defective Marketing Diseases of the crops and Pests Weak Cattle Defects of Soil Lack of Credit Facilities Causes of Backwardness of Agriculture 11th five year plan for agriculture : 11th five year plan for agriculture Second Green Revolution Growth rate to increase by 4% Focus on agricultural research Increase in irrigation faciltiies Development of modern agricultural markets Completing unfinished agenda of land reforms Improving dry land farming practices Promoting agro-based industries and agro exports Utilization of waste and underutilized land Industrial Growth of India : Industrial Growth of India Industrial growth noticed at 8.6% approx in 2007-2008. Target to achieve 10% growth rate. Turnaround in 1991 Liberalization Privatization Globalization Weaknesses : Weaknesses Irregular Increase in Industrial Production Underutilization of Installed Production Capacities Increase in Monopoly Powers Capital Investment in Low Priority Industries Poor Performance of Public Sector Increase in Regional Imbalances Less Development of Small Industries Industrial Sickness Poor Quality Production Industrial disputes Major Growth Tools of Indian Economy : Major Growth Tools of Indian Economy Industrial Policy 1991 Green Revolution Land Reforms Five Year Plans (currently 11th plan 2007-2012) going on Major Problems of Indian Economy : Major Problems of Indian Economy Problem of Poverty Problem of Population Problem of Unemployment Regional Imbalances Inequalities of Income and Wealth in India Foreign Trade & Balance of Payments Current Challenge for India : Current Challenge for India Global Crisis Inflation Corruption Political Environment Neighbour countries of India Terrorism Thanks : Thanks

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