Changing Economic Environment

Threat Or Opportunity….
Good Morning All..

Harsh Udesh Bhat

The Business School
Bibliography
 www.sebi.gov./report?.32.asp
 www.ficci.gov.com
 IMF reports
 WHO Reports
 WTO Reports
 Managerial Economics By Maheshwari.
Economic Growth VS Economic Development

 The term “Economic growth" refers to

the increase (or growth) of a specific
measure such as National income, Gross
Domestic Product, or Per Capita Income.

 The term “Economic development" on

the other hand, implies much more. It
typically refers to improvements in a
variety of indicators such as Literacy rates,
Life expectancy, and Poverty rates.
Major Areas of ED
 Government Policies
 Monetary Policy
 CRR 3.0 %.
 Repo Rate & Reverse Repo Rate
 Fiscal Policy
 Trade and Tax Policies

 Policies and programs to provide infrastructure

 100% increase.
 $70b compared to $34b in 2006
Continued…
 Policies and programs explicitly directed at
job creation and retention

 Human Development Index(HDI)

 LifeExpectancy
 Educational Ailment

 Purchasing Power Parity.

INDIA Statistics

Source :- FICCI
$$$ Billionaires $$$

Source:- Forbes list 2007-08

Infrastructure Growth Rate
World GDP Growth Rate

Source:- IMF Report 2006-07

BRIC Contribution to World GDP
Sectoral Gross Domestic Product

Source:- FICCI Report 2007

World Literacy Rate
Literacy Rate (India)
World Happiness Index

Source:- WHO Survey 2007

Happiness Index (India)

Source:-www.indiastats.com
Human Development Index

Source:- WHO Report 2006-07

Stock Market Contribution to GDP

Source:- SEBI annual Report 2006

Stock Market
 20K mark on October 29, 2007.
 Touched 21K mark in January 2008.
 Reliance Power IPO. Overwhelming
Response.
 Hedge Funds and FII inflows reaching.
 Subprime Crisis. Resulting in recession.
 SEBI allows Short Selling, Introduces
Seven New Derivatives.
Growing Economies
Rising Rupee

Source:- RBI Website

Foreign Direct Investment (FDI)
FDI Snippets in Retail
 Large Consumer Base.
 Increasing Purchasing Power Parity
(PPP).
 Opening up of the economy.
 Recent changes in the Government
policies.
 Cash and Carry Business.
 $222bn expected market till 2010.
Consumer Class

Source:- FDA India

Retail Sector in India.
Summary

Opportunity Threats
 Stock Market  SubPrime Crisis
 PPP  Future GDP@ 8%
 HDI  Increased
 6th Pay Commission Competition
 FII Inflows  Rising Rupee
 Disposable Income  Inflation
Conclusion

 Bharat “The Golden Sparrow” is and will

shine again.

 Computer as a Boon to the Society rather

than a Bane.
Thank You!!