Presented by :

Group 3
Group members
Shankar Shantanu Ravi Rishav Sanket Nayan Manisha

INDIAN ECONOMY

Overview of INDIAN ECONOMY

Rank - 11th largest economy in the world. Currency Indian rupee (INR)

Fiscal year 1st Apr. 31 Mar.

GDP = $ 1.676 trillion.( nearly 88 lakh cr.)

GDP growth = 5.5 % (2012).

GDP per capita income = $ 1,389.

Overview of INDIAN ECONOMY

Employment 9.8 % (2011).
Exports - $ 299.4 billion. (19th largest in world) Imports - $ 461.4 billion. (10th largest in world ) Foreign reserves - $ 288.92 billion.

OBJECTIVES
1) Power function of economy.
2) Knowledge of new opportunities & resources.

3) Study of environmental factors.

4) Optimum use of environment. 5) Minimizing risk and ill effect.

Current state of Indian economy

Highest growth rate mid 2000. Fastest growing economy. 2011 12 challenging year for Indian economy. Growth rate in end of 2011 6.1 % Rebalancing of portfolio is result of changing risk perceptions.

Contribution of Different sectors in Indian economy

SECTOR Agriculture Manufacturing Service

Contribution in GDP 17.2 % 26.4 % 56.4 %

Sectorial outlook
Agriculture - decline to 3.2 % from 7 %, in last
9 months .

Manufacturing in 27 months 1st time record

negative growth of 5.1 % .

Service sector resilient sector of economy with

growth rate of 8.8 % .

Economic reforms
Economic reforms during 1960 1980. Huge scale agri. development was undertaken. Initiation of GREEN REVOLUTION. New irrigation projects introduced. Setting and strengthening of rural banks. Providing financial support to farmers.

Economic reforms
Reforms during 1990 present time : - Encouraging foreign direct investment. - Stopping public monopolies. - Development of service & tertiary sector. - Open market economic policies emphasized. - Strengthening the banking sectors.

Economic planning in INDIA

What is planning ?
A central planning authority Keeping in view the resources of the country

Makes in attempt to control economic factors

Economic planning in INDIA

How planning came in economy
POVERTY
LOW pc INCOME

PROBLEMS

UNEMPLOYMENT

UNDERUTILISATION OF RESOURCES

11 five years plan

Year
1951 - 1956 1956 1961 1961 1966 1969 1974

Target
2.1 % 4.5 % 5.6 % 5.7 %

Achieve
3.5 % 4.0 % 2.4 % 3.3 %

1974 1979
1980 1985 1985 1990 1992 1997 1997 2002 2002 2007 2007 2012

4.4 %
5.2 % 5.0 % 5.6 % 6.5 % 8.1 % 8.3 %

5.0 %
5.4 % 5.7 % 6.7 % 5.3 % 7.1 % 7.9 %

Reasons of success in Indian planning

Increase in per capita income. Increase in agriculture production. Development of industries. Social services.

Development of infrastructure.

Causes of failure
Rise in price Increase in unemployment Insufficient administration. Less growth in production sector.

Poverty.
Rise in population.

Globalization and its impact

Overview of globalization (1947 - 1991). 1991 accept LPG policy.

- Due to IMF.
- internal & external competition.

India after LPG (1991 - 2012).

Globalization and its impact

Global financial crisis. Great depression.

Interdependent economics.
Imports - $ 461.4 billion.

Exports - $ 299.4 billion.

Infrastructure in Indian economy

Coal
Power

Petroleum Products
Telecommunications Transport

COAL
Coal Production(million tones)
Coking Coal Non-Coking coal Total Coal 1994-95 36.50 110.91 147.41 2004-05 44.25 209.56 253.81

Coal is one of the primary sources of energy, accounting for about 67% of the total energy consumption in the country.

Power
Power generation 1994-95 (Billion KWH) 53.94 98.83 4.07 156.86 12.35 114.07 2004-05 (Billion KWH) 82.52 262.89 5.61 351.02 32.10 238.11

Hydel
Thermal Nuclear Total public utilities Non- utilities Energy Sold (Utilities)

Petroleum products
1984-85 1994-95 (million tons) 2004- 05 (millions tons)

Crude Oil Production

Net Imports Petroleum Products Refining Capacity Production Gross Imports Consumption

28.9
7.2 6.4 47.5 33.2 6.1 40.8

32.2
27.3 8.2 56.4 * 52.9 13.9 68.1

Demand and supply of tele comm..

The government estimated that it would spend US $ 22.5 billion on telecom equipment by the year 2000, to help pay for 26.5 million new lines. Demand is growing at the rate of 13% per year and as on 31st March 1995, the waiting list for new phone connections had reached 2.15 million, despite a 22% growth in new telephone connections in 1994-95. As on November 30, 1995, there were 20,455 exchanges in the network with a total capacity of 12.84 million lines. Of this, 10.6 million lines were working.

RESERVE BANK OF INDIA

RESERVE BANK OF INDIA

History of RBI. Establishment. Management - Central board. - Local boards. - Offices. Subsidiaries.

Functions of RBI
Formulate & implements the monetary policy Act as regulator of financial system Manager of foreign exchange Issue currency Regulates the banking system

Monetary policies
Objectives of monetary policies Price stability.

Exchange rates stability.

Adequate flow of credit.

Inflation control.
Sound monetary system.

Monetary policies
RBIs role in Monetary policies.

1) Control on money supply.

2) Velocity of circulation of money during

inflation.
3) Control on bank credit. 4) Ensuring price stability and ensuring savings.

Government subsidies in India

Mode of administering a subsidy :
1) Subsidy to producers. 2) Subsidy to consumers. 3) Subsidy to producers of inputs. 4) Sales through public enterprises.

Government subsidies in India

Benefits of subsidies Central govt. subsidies. Subsidies of state government.

Effects of subsidies
1) Allocative effects. 2) Redistributive effects. 3) Fiscal effects. 4) Trade effects.

The Indian tax structure

Type of taxes: 1) Direct taxes. 2) Indirect taxes. Meaning of income tax. Sources of income tax. Rate of tax in India.

Indian tax rate

THANK YOU