INDIAN ECONOMY

SELECT SLIDES OF CLASSES 6 & 7

ECO (SV) – PART IV (13 slides)

(Slides to read along with class notes)

EXISTING LOGISTICS-STAND ALONE

ROAD RAIL SEA

• 75% freight • 25% freight • 85% global trade
• Focus since 2006 • Cross subsidization • Docking big vessels
• Mostly unorganized &
inefficient • High freight cost • TAT
• Night movement • Single track • Complex
• Time consuming • Low freight priority documentation
• Multiple Octroi • Time consuming • Cargo clearance
nakas/check posts
• Politically driven • Multiple loading
• No ring road around
major cities • Insufficient yards • Insufficient dock
• Excess load yards
• Accident prone • Cargo storage
• Road fitness
• Diesel
 National Multi-modal
Integrated Logistics in India
High Speed Dedicated Coastal & Ocean
Freight Rail Corridors freight
Roads & Expressways 6 corridors Kandla-Kochi
connecting Metro
Cities Kolkatta-Chennai

Multi-modal Logistics Third party Logistics

Parks
Investment Models
 Growth led Investment  Sector Specific Investment
 Autonomous Investment  Integrated Manufacturing Clusters
(IMC)/NIMZ
 Competitive Investment  Special Economic Zones (SEZ)
 Leveraged Investment  Industrial Cluster Investment
 Induced Investment (FDI)  Industrial Parks Investment
 Sectoral Caps (DIPP)
 Automatic Route
 Foreign Investment Promotion Board
(FIPB)  Human Capital Investment
 Cabinet Committee on Economic Affairs
(CCEA)
FOREIGN INVESTMENT
FPI
Pension Funds
 Key Facilitators

 Globalization of communication
 Global affordable & faster accessibility
 Globalization of media
 Global Information Symmetry
 Global “Demonstration Effect”
 Global financial system
 Transition of tastes & preferences
 Growing middle class income
Key Enablers
Focus on physical
infrastructure
Focus on soft
infrastructure

Role of
Government Expediting reforms

Key role of Circulator of

State Govt wealth
(National interests over
party interests)
 (1600)

(800)

(200)
Globalization is also about rebalancing
world economy from West to East