www.bibs.co.

in

INDIAN ECONOMY: GLOBAL PERSPECTIVES

www.bibs.co.in

What is an Economy?
www.bibs.co.in

Why do we need to study Economics?

www.bibs.co.in

What do you mean by developed and

developing economy?
www.bibs.co.in

What type of Economy is Indian Economy?

www.bibs.co.in

What are the characteristics of Indian Economy?

www.bibs.co.in

What are the various sectors of Indian

Economy?
www.bibs.co.in

What is so unique about Indian Economy?

For any developing country

For India
GDP
GDP

Service
Service sector-62,5%
sector-30%

Industry Adricult
Industry Agricult
-40% ure-30% 17.5% ure-20%
www.bibs.co.in

Some more information about India and Indian

Economy
• Federal State with 28 States
and 7 Union Territories
• Trillion dollar economy
• Forex Reserves – USD
287.37 billion
• Unemployment rate 10.7%
• Main Industries:
Telecommunications,
textiles, chemicals, food
processing, steel,
transportation equipment,
cement, mining, etc.
www.bibs.co.in

• Major Export Partners: U.S. UAE, China,

•Major Import Partners –China, Saudi Arabia,
U.S., UAE etc.
www.bibs.co.in

Indian Economy- 1947 to Present

 After Independence, India decided to
go for planned Economy
The planning commission was set up
with the Prime Minister as the Chair
person.
2nd , 6th and 8th Five Year plans are
important
There are achievements as well as
failures of India’s plans.
Eleventh Five Year Plan is in progress.
www.bibs.co.in

 Indian Economy opened up in 1991.

 Indian Economy was facing major Balance Of
Payment Problem.
 India had to take loans from IMF & World
Bank
 India followed the model of LPG in 1991-
Liberalisation, Privatisation and Globalisation
 New Industrial Policy and New Trade Policy
were announced.
www.bibs.co.in

Comparison between a Developing Economy ( India)

& a Developed Economy ( U.S)

Country Population Land mass

India 1.15 b 3.2 m sq km
USA 0.30 b 9.6 m sq km

Can India follow the same strategy for

development as followed by U.S. ?
www.bibs.co.in

Economic reforms and New Economic Policy( NEP)

Objectives of NEP were-
NEP

Globalisati
on

Privatisati Liberalisa
on tion
www.bibs.co.in

To ensure privatisation following measures

were taken-
●
10O % transfer of ownership
Ownership measure ●
Through joint venture-partial transfer to private ownership.

●
Leasing
Organisational Measure ●
Financial & basic restructuring

Operational Measure ●
Grant of autonomy to PSEs
www.bibs.co.in

To ensure the objective of globalisation, the

following measures have been taken-

Reduction of import duties

Encouragement of foreign
investment

Encouragement to foreign
technology agreement
www.bibs.co.in

To ensure liberalisation following measures were taken

De-licensing

No. of PSEs were reduced

MRTP Act was amended

www.bibs.co.in

RECENT DEVELOPMENT AND INDIAN

ECONOMY
 Impact of global Meltdown was less
compared to other western countries.
 Regulated Banking System helped India.
 The revival of the World Economy was led by
India and China.