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Investment
Gross Domestic Product
Initiative of Industrial Reform
Several initiatives were taken under the Industrial Policy
1991, which include:
2. 1997 - 2003 : After the initial boom until 1996,there was a nine year
period of deceleration, when the output growth was buffeted by many
shocks, such as the Asian financial crisis.
3. 2003 - 2008 : This phases was led by outsourcing services exports,
but manufacturing growth matched the boom with a 10% annual
growth rate, made possible by a steep rise in domestic savings,
investment, and capital inflows, boosting the capital formation.
4. 2008 - till now : The growth rate recovered after the financial crisis
in 2008-09 but at a slower rate of 7.3% per year in the following four
years until 2011-12, and decelerated rapidly thereafter. However, the
industrial growth scenario after 2014 remains hazy on account of
unrealiable data. The recent data shows Industrial production grew at
a nine-month high of 4.3% , mainly on account of robust performance
of mining and power sectors coupled with higher capital goods
output.
Outcome of the Reform on :
Employment
Reformists view
1. Lead to increase in competition and efficiency through better allocation of
resources.
2. Greater labour and product market flexibility.
3. Shift towards labour intensive technique and commodity.
4. Rise on employment potential and job availability.
Protagonists view
1. Shift towards capital intensive technique.
2. Restricting employment expansion.
3. Casualization of workforce.
Investment
Reformists view
1.India’s openness become comparable to its Asian peers.
2.Reduction in tariff attracts investors.
3. Numerous bilateral trade and investment treaties were signed.
4.promotion of FDI and policies and its technology.
Protagonists view
1.FDI was restricted especially in retail sector.
2.Due to lack of infrastructure , invertor was not interested.
3.Chian and other Asian countries are doing much better.
4.Bilateral trade and investment treaties were not successful enough.
Gross Domestic Production (GDP)
The size of the economy can often give the first impression
of the might of a country. The low annual growth rate of the
economy of India before 1980, which stagnated around 3.5%
from 1950s to 1980s, while per capita income averaged 1.3%
.India’s GDP stood at Rs 5,86,212 crore in 1991. About 25
years later, it stands at Rs 1,35,76,086 crore, up 2216 percent.
In dollar terms, India’s GDP crossed the $2 trillion mark in
2015-16. Currently, the country is ranked sixth in the world
in terms of nominal GDP. India is tipped to be the second
largest economy in the world by 2050.
Why did the reform fail to deliver?
The end of the licence raj and the opening up of the economy to private
and foreign capital has been a success story. But there are also several areas
where our hopes have been belied.
THANK YOU!
JYOTI PRAKASH
SANJANA VERMA
KISHIKA BANSAL