INDIAN ECONOMY

CONTENT

 Introduction
 Meaning of Indian Economy
 Characteristic of Indian Economy
 Types of Economy
 Chart of Economy System
INTRODUCTION
 Indian economy is a developing economy in which
Agriculture is the back bone of Indian economic.
 60% of India's population are on the below
poverty line.
 Majority of the people of India are leading a
poverty line. Indian economic is affected by it.
 Countries which are on the part of progress and
which have their potential for development are
called developing economic.
 So India is termed as developing economic by
modern views
THE INDIAN ECONOMY
 The Economy of India is the tenth-
largest in the world by nominal GDP and
the third Largest by purchasing power
pants (PPP).
 The country is one of the G-20 major
economy, a member of BRICS and a
developing economy among the top 20
global trailers according to the WTO
FLOW OF INDIAN ECONOMY

 The circular flow diagram shows the high degree

of economic interdependence in our economy.
CIRCULAR FLOW OF INDIAN ECONOMY

 Circular Flow Concepts Product Market - where

goods and services are exchanged .
 Households-suppliers of the factors of
production& demanders of goods and services .
 Government providers of public goods and
services & demanders of both private goods and
services and the factors of production.
 Businesses / Firms - suppliers of goods and
services & demanders of the factors of
production
ECONOMIC GROWTH
 Increase in a country's productive capacity as
measured by comparing gross national product
(GNP) in a year with the GNP in the previous
year .
 Increase in the capital stock, advances in
technology, and improvement in the quality and
level of literacy are considered to be the principal
causes of economic growth.
 In recent years, the idea of sustainable
development has brought in additional factors such
as environmentally sound processes that must be
taken into account in growing an economy
GRAPH
SECTORS OF THE INDIAN ECONOMY
1. PRIMARY SECTOR
2. SECONDARY SECTOR
3. TERTIARY SECTOR
4. OTHER SECTORS
i. Organized sector
ii. Unorganized sector
iii. Public sector
iv. Private sector
PRIMARY SECTOR
The economic activity mainly depends on
exploitation of natural resources.
Agriculture and agriculture related
activities , forestry and fishing , mining ,
and extraction of oil and gas
Secondary Sector
 Involves manufacturing
 The industrial production of
physical goods.
Tertiary Sector
 Involves providing instant goods like
services , attention , advice , experience
,and discussion.
 Financial services , management
consultancy , telephony and IT are good
examples of service sector.
External Trade And Investment
What is external trade ?
 Exchange of capital , goods , and
services across international borders or
territories.
 In most countries it represents
significant share of gross domestic
product ( GDP).
Importance of External Trade ?
 International trade is the backbone of
our modern commercial world , as
producers in various nations try to profit
from an expanded market , rather than
be limited to selling within their own
borders.
INDIA TRADE : IMPORTS
 India's major imports comprise of crude oil machinery .
military products, fertilizers, chemicals, gems, antiques
and artworks.
 Imported goods are divided into the following categories:
 Freely importable items: For these items, no import
license is required. They can be freely imported by an
individual or a firm.
 Canalized items: These items can only be imported by
public sector firms. For example petroleum products fall
under this category.
 Prohibited items: Items such as unprocessed ivory,
animal rennet and tallow fat cannot be exported to India.
INDIA TRADE : EXPORTS
 Indian exports comprise mainly of engineering
and textile products, precious stones,
petroleum products, jewelry, sugar, steel
chemicals, zinc and leather products. Most of
the exported goods are exempt from export
duties. India also exports services to several
countries, primarily to the US. In fact, India is
among the world's largest exporters of services
related to information and communication
technology (ICT). It is also the key destination
for business process outsourcing (BPO).
National INCOME
What is national income ?

National income measures the total

value of goods and services produced
within the economy over a period of
time. National Income can be denoted in
different ways with different meaning
attached to it.
STRENGTHS OF INDIAN ECONOMY

India is well placed to benefit from

globalization and out sourcing
Demographics of India are
favorable. There is much scope for
increases in efficiency.
OUR FINAL NOTE
 If these problems are solved then the
future for India looks bright, India might
well become one of the superpowers of
the 21st Century. India is a country with
Potentials for sustaining development!!