Post-liberalisation Period

 License Raj.  The collapse of the Soviet Union, which was India's

major trading partner, and the Gulf War.

 Fiscal Deficits.  Prime Minister Narasimha Rao along with finance

minister Manmohan Singh liberalization of 1991.

initiated the economic

Industry and services

y Industry accounts for 28% of the GDP and employ 14%

of the total workforce.

y The Indian industrial sector underwent significantly

changes as a result of the economic reforms of 1991.

y Removed import restrictions, brought in foreign

competition, led to privatization of certain public sector industries, liberalized the FDI regime, improved infrastructure and led to an expansion in the production of fast moving consumer goods.

y Mining. y Tourism in india.

Agriculture
y India ranks second worldwide in farm output. y Agriculture and allied sectors like forestry, logging and

fishing accounted for 15.7% of the GDP in 2009-2010.

y Green Revolution in India.

Banking and finance

y India's gross domestic saving in 2007-07 as per

percentage of GDP stood at a high 32.7%.

y The public sector banks hold over 75% of total assets

of the banking industry.

y Private and foreign banks holding 18.2% and 6.5%

respectively.

y While some of these relate to nationalized banks, like

encouraging mergers, reducing government interference and increasing profitability and competitiveness, other reforms have opened up the banking and insurance sectors to private and foreign players.

Energy and power

y India's oil reserves meet 25% of the country's domestic

oil demand.
y As of 2009, India's total proven oil reserves stood at

775 million metric tonnes while gas reserves stood at 1074 billion cubic metres.

Foreign direct investment in India

y As the fourth-largest economy in the world in PPP

terms, India is a preferred destination for FDI.

y India has strengths in telecommunication,

information technology and other significant areas such as auto components, chemicals, apparels, pharmaceuticals, and jewellery.
y During 2000 10, the country attracted $178 billion as

FDI.

y India's recently liberalised FDI policy (2005) allows up

to a 100% FDI stake in ventures.

y In March 2005, the government amended the rules to

allow 100% FDI in the construction sector.

y The total FDI equity inflow into India in 2008 09

stood at122,919 crore , a growth of 25% in rupee terms over the previous period.

Education
y India has made huge progress in terms of increasing

primary education attendance rate and expanding literacy to approximately two third of the population.
y The right to education at elementary level has been

made one of the fundamental rights under the eightysixth Amendment of 2002, and legislation has been enacted to further the objective of providing free education to all children.

Infrastructure
y Reforms brought about by the Electricity Act of 2003

caused far-reaching policy changes paving the way for creating a competitive market-based electricity sector.
y Substantial improvements in water supply

infrastructure with the proportion of the population having access to safe drinking water rising from 66% in 1991 to 92% in 2001 in rural areas, and from 82% to 98% in urban areas.

GDP growth rate

Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Growth (real) (%) 5.5 6.0 4.3 4.3 8.3 6.2 8.4 9.2 9.0 7.4

THANK YOU

y India has the world's third largest road network,

covering about 3.3 million kilometers and carrying 65% of freight and 80% of passenger traffic.
y Internet use is rare; there were only 7.57 million

broadband lines in India in November 2009, however it is still growing at slower rate and is expected to boom after the launch of 3G and wimax services.