Economy of

History of Indian Economy

The history of Indian economy can be broadly
divided into three phases: pre-colonial, colonial
and post colonial.
Pre-Colonial:
The economic history of India since Indus Valley
Civilisation to 1700 AD can be categorised
under this phase. During Indus Valley
Civilisation, the Indian economy was very well
developed. It had very good trade relations with
other parts of the world, which is evident from
the coins of various civilisations found at the
site of Indus Valley.
Before the advent of the East India Company,
each village in India was a self-sufficient entity
and was economically independent as all the
economic needs were fulfilled within the village.
Colonial Indian Economy:
The arrival of the East India Company in the
country caused a huge strain on the Indian

History of Indian Economy cont..

Post Colonial Indian Economy:
After India got Independence from colonial rule in 1947, the
process of rebuilding the economy started. For this various
policies and schemes were formulated. First five-year plan for the
development of Indian economy came into implementation in
1952. These Five-Year Plans, started by Indian government,
focussed on the needs of the Indian economy.
If on one hand agriculture received the immediate attention on
the other the industrial sector was developed at a fast pace to
provide employment opportunities to the growing population and
to keep pace with the developments in the world. Since then the
Indian economy has come a long way. The Gross Domestic
Product (GDP) at factor cost, which was 2.3 % in 1951-52
reached 6.5 in the financial year 2011-2012.
Trade liberalisation, financial liberalisation, tax reforms and
opening up to foreign investments were some of the important
steps, which helped Indian economy to gain momentum. The
Economic liberalisation introduced by Manmohan Singh in 1991,
the then finance minister in the government of P V Narasimha
Rao, proved to be the stepping-stone for Indian economic reform
movements.

CLASSIFICATIONS OF THE
ECONOMY SECTOR
Historically, India has classified and tracked its
economy and GDP as three sectors
Agriculture
Industry
Services
Agriculture includes crops, horticulture, milk and
animal husbandry, aquaculture, fishing, sericulture,
aviculture, forestry and related activities.
Industry includes various manufacturing subsectors.
India's definition of services sector includes its
construction, retail, software, IT, communications,
hospitality, infrastructure operations, education,
health care, banking and insurance, and many
other economic activities.

AGRICULTURE IN INDIA
Indiaranks secondworldwide in farm output. Agriculture and allied
sectors like forestry, logging and fishing accounted for 17% of the GDP
and employed 51% of the total workforce in 2012.
As the economy has diversified and grown, agriculture's contribution
to GDP has steadily declined from 1951 to 2011, yet it is still the
largest employment source and a significant piece of the overall socioeconomic development of India.
Crop yield per unit area of all crops has grown since 1950, due to the
special emphasis placed on agriculture in the five-year plans and
steady improvements in irrigation, technology, application of modern
agricultural practices and provision of agricultural credit and subsidies
since the Green Revolution in India.
However, international comparisons reveal the average yield in India is
generally 30% to 50% of the highest average yield in the world.

INDUSTRY SECTOR
Industry accounts for 26% of GDP and employs 22% of the
total workforce. According to the World Bank, India's
industrial manufacturing GDP output in 2015 was 6th
largest in the world on current US dollar basis ($559
billion),and 9th largest on inflation adjusted constant 2005
US dollar basis ($197.1 billion).
The Indian industrial sector underwent significant changes
as a result of the economic liberalisation in India economic
reforms of 1991, which removed import restrictions,
brought in foreign competition, led to the privatisation of
certain government owned public sector industries,
liberalised theFDIregime, improved infrastructure and led
to an expansion in the production offast moving consumer
goods. Post-liberalisation, the Indian private sector was
faced with increasing domestic as well as foreign
competition.
It has since handled the change by squeezing costs,
revamping management, and relying on cheap labour and
new technology.
However, this has also reduced employment generation
even by smaller manufacturers who earlier relied on
relatively labour-intensive processes.

Petroleum products and chemicals

Pharmaceuticals
Engineering
Gems and jewellery
Textile
Mining
Gems and jewellery
The gems and jewellery industry is an ancient and continuing major component
of the Indian economy. Many famous stones such as the Koh-i-noor and Hope
Diamond, now at the Smithsonian, came from India.
India is one of the world's largest diamonds and gem polishing and jewellery
manufacturing center; it is also one of the two largest consumers of gold. The
industry contributes about 7% of India's GDP, employs millions, and is a major
source of its foreign exchange earnings
The gems and jewellery industry has been an ancient art and continuous
economic activity in India, traced over several thousand years. Till 18th century,
India was the world's only known major reliable source of diamond mining and its
processing. Indian cities such as Surat and Mumbai are the hubs of world's
jewellery polishing, cutting, precision finishing, supply and trade

THE SERVICE SECTOR

India's services sector has the largest share in the GDP, accounting for 57% in 2012, up
from 15% in 1950.
It is the9th largest in the world by nominal GDP, andfourth largestwhen purchasing
power is taken into account.
The services sector provides employment to 27% of the work force. Information
technology andbusiness process outsourcingare among the fastest-growing sectors,
having a cumulative growth rate of revenue 33.6% between 1997 and 1998 and 200203
and contributing to 25% of the country's total exports in 200708.
The growth in the IT sector is attributed to increased specialisation, and an availability of
a large pool of low cost, highly skilled, educated and fluent English-speaking workers, on
thesupply side, matched on the demand side by increased demand from foreign
consumers interested in India's service exports, or those looking tooutsourcetheir
operations.
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.

Energy and Power

Infrastructure
Banking and Finance
Retail
Tourism

Agricultural sustainability
Tools in Urban Planning
GIS & Remote sensing Uses
Remote sensing and GIS technology are being effectively utilized in India in several areas for sustainable agricultural
development and management.
The areas of sustainable agricultural development/ management include cropping system analysis;

Agro-Ecological Zonation;
Quantitative assessment of soil carbon dynamics and land productivity;
Soil erosion inventory;
Integrated agricultural drought assessment and management
Integrated Mission for Sustainable Development (IMSD).

Remote Sensing in India

Remote sensing is a science as well art of amassing information on spectral, spatial, and temporal grounds pertaining
to area, phenomenon, and material objects without even having any kind of tangible liaison with the area, the
phenomenon, or the object under scrutiny. As there is completely no kind of contact there is a need for method of
information transmission from high above in the space. InRemote Sensingthe use of Electromagnetic
Radiation(EMR) is the method of information transmission. The information is received on earth and transformed into
understandable data. Electromagnetic Radiation(EMR) is an energy form which shows its mein by the evident effects
it creates on coming into contact with the matter.

A CASE STUDY

TELENGANA STATE

NIZAMABAD DISTRICT
MADNUR WATERSHED,
NIZAMABAD DISTRICT,
TELENGANA STATE

MADNUR WATERSHED

A CASE STUDY cont

Spatial Distribution of various cropping systems/
sequential cropping pattern
Cropping System Analysis case study carried out
in Southern India.
(Madnur Watershed, Nizamabad district, Andhra
Pradesh)

The cropping system analysis was carried out by GIS

aided integration of multi-temporal digital satellite
data based classified crop inventory information.
The spatial distribution of various cropping systems/
sequential cropping pattern, which is the final result
of a cropping system analysis case study carried out
in Southern India (Madnur Watershed, Nizamabad
district, Andhra Pradesh).
The cropping system analysis was carried out by
GIS aided integration of multi-temporal digital
satellite (IRS- 1B; LISSII) data based classified crop
inventory information of the Kharif ( Rainy season),
Rabi (winter) and summer crop seasons (ASD, 1995).

A CASE STUDY cont

Information on existing cropping
systems in a region with respect to areal
extent of crops, crop vigours/ yield and
yearly crop rotation / sequence
practices is important for finding out
agricultural areas with low to medium
crop productivity where sustainable
increase in crop production can be
achieved by adoptation of suitable
agronomic management packages
including introduction of new crops etc.

The methodology of agro-ecological zoning using

Remote Sensing and GIS.

GIS technology can play a vital role in

cropping system analysis of an area by
spatially integrating temporal crop
inventory information of various crop
seasons of that area.

precedented Urban Growth

1950-2006: The urban

population of the world has
increased from 739 million to
3.2 billion. By 2025 around 65
per cent of the worlds
population is projected to live
in cities.
More than 40 per cent of the
world children are estimated
to be living in polluted cities of
developing world (WHO).
A billion more will be added
over the next three decades in
Asia almost adding a whole
new India. More than half of
them will be living in cities
What about India?

Main Challenges in Indian Urbanisation

The main challenges as far as urbanization is concerned in
India are:
There is a urban housing shortage of 18.78 million
Duration of water supply in India cities is only between one
to six hours
According to 2011 census, about 13% of urban population
defecate in the open, about 37% are connected by open
drains and 18% are not connected at all.
The number of urban poor has increased by about 34.4%
between 1993-2004.
In so far as the urban transport is concerned, a Ministry of
Urban Development study in 2010 based on sample of 87
cities has estimated that in about 20 years time, the
expected journey speed of major corridors in many cities
would fall from 26-17 kmph to 8-6 kmph.
The air quality has also deteriorated sharply carrying with it
concomitant health costs.
The per capita emission levels in Indias seven largest cities
have been estimated to be at least three times than WHO

Growing pollution and

toxification:
new struggles in cities

90%
Number of cities in per cent

The issue is not about growth but about

distribution, equity and urban
governance
Air pollution and mobility crisis: Cities are
being built for a small group of car owners,
disregarding the mobility needs of the
majority of urban population. Pollution and
congestion costs high.
Solid waste and hazardous waste: 120,000
tonnes of garbage everyday in Indian cities.
But very limited disposal, re-use and
recycling capacities. Waste to energy
remains a non-starter. Colonisation of land
for waste disposal is leading to conflicts.
Water and waste water: Per capita water
supply ranges from 9 lpcd to 584 lpcd
across urban India. Only 72 cities have
partial sewerage facilities and 17 have
some primary treatment facilities.
Energy crisis: Wide gap in demand and
supply, wastage. One third of India living in
cities consumes 87% of nations electricity.
Remains energy inefficient. But heavily built

100%

30

80%

57

70%
60%
50%

96

40%

70

30%

23

20%
19

10%

0%
SO2
Air Quality
Classification:

NO2

PM10

Critical Pollution Level* (More than 90 microgramme per cubic metre)

High Pollution Level* (60 to 90 microgramme per cubic metre)
Moderate Pollution Level* (30 to 60 microgramme per cubic metre)
Low Pollution Level* (0 to 29 microgramme per cubic metre)

Air quality: an urban challenge

More than half of the cities monitored have recorded
critical levels of fine particulate matter

The Gas Chamber: Poor people more vulnerable to air

pollution related diseases

WHO estimates 0.8 million deaths and 4.6 million lost life years every year globally. Two-third of
this occurs in Asia.

Premature Deaths Due to Outdoor Air Pollution

Assert the importance of community,

environmental and economic
responsibilities in cities
Revive, Repair, Reinvent
2
Nurture Community
Cultivate Green Space
Make Grassroots
Connections
Cope With the Commute

GURGAON A SATELLITE TOWN

DELHI

Satellite towns will take off when

two conditions are satisfied:
One, when they offer superior
quality schools, hospitals and
departmental stores.
Two, the cost of commuting to
the city is low to access teleeffective services such as
universities and airports that only
the parent city can offer.

With Facilities.

Zonal
Plan

Gurgaon is a city in the northern Indian state of Haryana, and

has a population of about 1,000,000 according to the 2001
national census. Gurgaon is one of Delhi's four major satellite
cities.
The district is surrounded by Delhi & Rajasthan.
Until very recently, Gurgaon was a sleepy town on the outskirts
of New Delhi. Its potential was quickly recognized after the
liberalization of the Indian economy, in the 1990's, because of
its proximity to New Delhi, and the smart policy initiatives of
the Haryana government.
Today, skyscrapers and modern shopping malls dot this suburb,
which has seen a major real estate boom since the late 1990s.

Gurgaon is a peaceful area where crime

rate is very low.
Those people who have bought properties
in this area are fortunate one in term of
appreciation of prices, rental income and
security.
People who have invested here in this city
have gained tremendously business wise
as well. Real estate in Gurgaon has
touched unprecedented heights

We have a false notion that cities are supposed to be congested.

In truth, allocation of urban space on the lines of New York will
need only one per cent of the country's land area to accommodate
the entire urban population of India.
So, the problem is not physical but political and cultural

THE END
--------------------------------------------

Creative City

The creative city when introduced was seen as

aspirational; a clarion call to encourage openmindedness and imagination implying a dramatic impact
on organizational culture.
Its philosophy is that there is always more creative
potential in a place.
It posits that conditions need to be created for people to
think, plan and act with imagination in harnessing
opportunities or addressing seemingly intractable urban
problems.
These might range from addressing homelessness, to
creating wealth or enhancing the visual environment.
In the creative city it is not only artists and those involved
in the creative economy that are creative, although they
play an important role.
Creativity can come from any source including anyone
who addresses issues in an inventive way be it a social
worker, a business person, a scientist or public servant.
By encouraging legitimizing the use of imagination within
the public, private and community spheres the ideas
bank of possibilities and potential solutions to any urban
problem will be broadened.

The creative city was a concept developed by urbanist Charles Landry in the late 1980s and has since become a global movement reflecting
a new planning paradigm for cities.