Indian economy

VS
Mexican
economy

Mexican Economy
Backgroundo The Mexican economy is the 13 th largest economy in
the world, according to the world bank
oThe economy contains rapidly developing modern

industrial and service sectors, with increasing private

ownership.
oRecent administrations have expanded competition in

ports, railroads, telecommunications,electricity

generation, natural gas distribution and airports, with
the aim of upgrading infrastructure.

oAs anexport-oriented economy, more than 90%

of Mexican trade is underfree trade

agreements(FTAs) with more than 40 countries,
including the European Union, Japan, Israel, and
much ofCentral and South America.
oAccording to the Forbes Global 2000 list ,in 2008,

Mexico had 16 companies in this list.

oMexico's labor force of 78 million has been

consistently ranked as the most productive per

capita in the world for several years and
theWTOrank Mexican workers as the hardest
working in the world.

HISTORY
oMexican presidentPorfirio Dazbrought unprecedented

economic growth during the last quarter of the

nineteenth century.
oThis growth was accompanied by foreign investment
and European immigration, the development of an
efficient railroad network and the exploitation of the
country's natural resources
oAnnual economic growth between 1876 and 1910
averaged 3.3%.Political repression and fraud, as well as
huge income inequalities exacerbated by the land
distribution system

oTheMexican Revolution(19101917), an armed

conflict that drastically transformed Mexico's

political, social, cultural, and economical structure
during the twentieth century.
oThe war left a harsh toll in the economy and

population during this period.

oThe period from 1930 to 1970 was dubbed by

economic historians as the "Mexican Miracle", a

period of economic growth.

Year

GDP

19001929

3.4%

19291945

4.2%

19451972

6.5%

19721981

5.5%

19811995

1.5%

19952000

5.1%

20002011

1.6%

Components of the
economy
oThe service sector is the largest component of GDP

at 70.5%, followed by the

oIndustrial sector at 25.7%.
oAgriculture represents only 3.9% of GDP.(2006.est)
oMexican labor force is estimated at 38 million
o18% is occupied in agriculture,
o24% in the industry sector and
o58% in the service sector (2006 est.).

Agriculture and food production

Product

World Rank

Avocados

Onions and
chayote
Limes and lemons

Sunflower seed

Dry fruits

Papaya

Chicken meat

Automobile Industry

The "Big Three" (General Motors,Ford andChrysler)

have been operating in Mexico since the 1930s
Other giant companies are Volkswagen, Nissan,
Toyota,Honda,BMW, andMercedes-Benz
One of the leading domestic automobile Company
is Mastretta which builds sports car (Mastretta MXT).
Vehizero that builds hybrid trucks

Electronic Industry

Mexico has the sixth largest electronics industry in

the world
Mexico is the second largest exporter of electronics
to the United Sates where it exported $71.4 billion

Mexican electronics industry, representing 25% of

Mexico's electronics export revenue

Some of the giants companies are Sony,Toshiba,
Samsung, Sharp, LG etc.
Since 2008 Mexico has been the third largest
manufacturer of mobile phones after China and South
Korea with companies
Some of the companies are Zonda ,Foxconn, Nokia,
Blackberry etc.

Some other domestic companies.

Cemex, the worlds largest construction company and

the third largest cement producer.

Mexico is the third largest manufacturer of

computers in the world with both domestic

companies such asLanix,Texa,Meebox,Spaceit,
Kyoto.
foreign companies such asDell,Sony,HP,
Acer, Compaq etc .
Energy and mineral resources
Mexico is the sixth-largest oil producer in the world,

with 3,700,000 barrels per day

Pemex, the public company in charge of
administering research, exploration and sales of oil,
is the largest company inMexico, and the second
largest in Latin America

Services
TourismTourism is one of the most important industries in

Mexico. It is the fourth largest source of foreign

exchange for the country. Mexico is the eighth most
visited country in the world
(with over 20 million tourists a year).

Banking system
According to theIMFthe Mexican banking system is

strong, in which private banks are profitable and

well-capitalized.
The acquisition ofBanamex, one of the oldest
surviving financial institutions in Mexico,
byCitigroupwas the largest US-Mexico corporate
merger, at US $12.5billion

Trade
Exports

$298.5 billion (2010 est.)[4]

Export goods

Main export partners

automobiles, electronics, televisions,

computers, mobile phones, LCD displays
oil and oil products, silver, fruits,
vegetables, coffee, cotton
US 73.5%, Canada 7.5% (2010)

Imports

$301.5 billion (2010 est.)[4]

Import goods

metalworking machines, steel mill

products, agricultural machinery, metals,
repair parts for motor vehicles, aircraft,
and aircraft parts, oil production
equipment
US 60.6%, China 6.6%, South Korea 5.2%
(2010)

Main import partners

Problems faced in Mexican Economy

Regional Disparities
Income inequality
Remittances
Poverty

Free trade agreements

Mexico has signed 12free trade agreementswith

44 countries:
Some of those are
theNorth American Free Trade Agreement(NAFTA)
(1994) with the United States and Canada.
Free Trade Agreement withCosta Rica(1995)
Free Trade Agreement withBolivia(1995)
Free Trade Agreement withNicaragua (1998)
Free Trade Agreement with theEuropean
Union(2000)
Free Trade Agreement with Japan (2005)

Indian economy
Background
Theeconomy of Indiais the9th largestin the

world bynominal GDP and the4th

largestbypurchasing power parity(PPP)
The country'sper capita GDP(PPP) was $3,408
(IMF, 129th in the world) in 2010, making it a
lower-middle income economy.
India is the17th largest exporterand11th largest
importerin the world
Economic growth rates are projected at around
7.5%-8% for the financial year 2011-2012.

Colonial period (17731947)

o Calcutta was the economic hub ofBritish India,

saw increased industrial activity during World

War II.
o Company rule of taxation and agricultural

policies in India tended to promote

commercialization of agriculture with a focus on
trade, resulting in decreased production of food
and destitution of farmers, and in short, led to
numerous famines.
o The economic policies of theBritishcaused a

severe decline in
thehandicraftsandhandloomsectors.

After the removal of international restrictions by

theCharter of 1813, Indian trade expanded
substantially and over the long term showed an
upward trend.

It led to significant transfer of capital from India

to England, massive drain of revenue rather
than any systematic effort at modernization of
the domestic economy.
However, at the end of colonial rule, India
inherited an economy that was one of the
poorest in the developing world which faced
problems like
(a) Industrial development stalled,
(b) agriculture unable to feed a rapidly growing
population,
(c) largely illiterate and unskilled labour force

Pre-liberalisation period (19471991)

Domestic policy tended towards protectionism, with
a strong emphasis on
(a)import substitution,
(b) industrialization
(c) a largepublic sector
(d) central planning .

Five-Year Plans of Indiaresembled central planning

in theSoviet Union.
Development in the field Steel, mining, machine

tools, telecommunications, insurance, and power

plants.
The policy of concentrating simultaneously on

capital- and technology-intensive heavy industry

and subsidizing manual, low-skillcottage
industries.
Green Revolution in India

Post-liberalisation period (since 1991)

Prime MinisterNarasimha Rao, along with his

finance ministerManmohan Singh, initiated the

economic liberalisation of 1991.
By the turn of the 20th century, India had

progressed towards a free-market economy, with a

substantial reduction in state control of the
economy and increased financial liberalisation

Sectors
Industry and services
India has one of the world's fastest

growingautomobile industries
Industry accounts for 28% of the GDP and employ
14% of the total workforce
liberalized the FDI regime, improved infrastructure
and led to an expansion in the production offast
moving consumer goods
Textile manufacturing is the second largest source
of employment
agriculture and accounts for 20% of manufacturing
output, providing employment to over 20 million
people

India is13thin services output

The services sector provides employment to 23%

of the work force and is growing quickly, with a

growth rate of 7.5% in 19912000
The share of theIndian IT industryin the
country's GDP increased from 4.8% in 200506 to
7% in 2008.In 2009, seven Indian firms were
listed among the top 15 technology outsourcing
companies in the world.
Mining forms an important segment of the Indian
economy, with the country producing 79 different
minerals (excluding fuel and atomic resources) in
200910.

Organized retail supermarkets accounts for 24%

of the market as of 2008

Agriculture
Indiaranks secondworldwide in farm output
Agriculture accounted for 15.7% of the GDP in
200910, employed 52.1% of the total workforce

Banking and finance

India's gross domesticsavingin 200607 as a

percentage of GDP stood at a high 32.7%.

The public sector banks hold over 75% of total
assets of the banking industry, with the private
and foreign banks holding 18.2% and 6.5%
respectively.

Energy and power

India'soil reservesmeet 25% of the country's

domestic oil demand

As of 2010, India imported about 70% of its crude
oil requirements

Trade
Exports

$225.6billion (2010 est.)

Export goods

petroleum products, precious stones,

machinery, iron and steel, chemicals,
vehicles, apparel

Main export partners

US 12.6%, UAE 12.2%, China 8.1%, Hong

Kong 4.1% (2010)

Imports

$357.7billion (2010 est.)

Import goods

crude oil, precious stones, machinery,

fertilizer, iron and steel, chemicals

Main import partners

China 12.4%, UAE 6.5%, Saudi Arabia 5.8%,

US 5.7%, Australia 4.5% (2010)

Problems faced by Indian Economy

1.
2.
3.
4.
5.

Poverty
Lack of infrastructure
Unemployment
Economic Disparities
Corruption

Business efficiency

Economic freedom

Economic
importance

GDP

59.053

41.483

Ranked 33rd.42%
morethan Mexico

Ranked 47th.

1.5

2.2

Ranked 123rd.

Ranked 59th.47%
morethan India

2.1

5.6

Ranked 25th.

Ranked 14th.167%
morethan India

$4,164,000,000,000.00

$1,149,000,000,000.00

Ranked 5th in 2006.3

Ranked 14th in 2006.
times morethan Mexico

Gross National
Income

$477,000,000,000.0 $550,000,000,000.0
0
0
Ranked 12th.

Income category

Low income

Poverty > Share of all 41.01 % of world's

poor people
poor

Technological
achievement

Ranked 10th.15%
morethan India

Upper middle
income
1.43 % of world's
poor

Ranked 1st.28 times

morethan Mexico

Ranked 9th.

0.2

0.39

Ranked 59th.

Ranked 30th.95%
morethan India

Poverty > Share of all 41.01 % of world's

poor people
poor

1.43 % of world's
poor