Indian Economy at glance

 A Person was lying in bed for a month now, both of his legs severed. And he thinks had there been no pothole on road, I would not have met an accident. What was the reason for that pothole on road.may be.government had no money to repair it. Economy really needs to improve
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India: An Introduction
Population: 1.13 billion (2007); 1.21 billion (2011) Federal State with 28 States and 7 Union Territories GDP USD1.2 trillion (2007); 1.84 trillion (2011) External Trade USD 528 billion (2007)

Indias Geography
Country Population Land mass

India USA

1.13 b 0.30 b

3.2 m sq km 9.6 m sq km

India has one-third the land mass of the United States; and nearly four times its population. India therefore must develop strategies for sustainable growth and livelihood which suits its requirements, while continuing to integrate with the world economy and moving towards a knowledgebased society
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Indias Share in World GDP

India constitutes nearly 17 percent of the worlds population, but even in PPP terms its GDP share is only 5 percent.

Key Demographic Indicators

Country

Total Population (millions)

Average annual rate of change of population

Total Median Age Life Expectancy Fertility Rate at Birth (TFR) Medium Variant

2007

2050

20052010

20452050

20052010

20452050

2005

2050

2005-2010

2045-2050

World

6671.2

9191.3

1.17

0.36

2.6

2.0

28.0

38.1

67.2

75.4

China
India

1328.6

1408.8

0.58

-0.32

1.7

1.8

32.5

45.0

73.0

79.3

1103.4

1592.7

1.55

0.30

3.0

1.8

24.3

38.7

63.1

75.9

New Jobs in the World Economy 2005-2020

New jobs in the developing world In millions % of world increase

Developing Asia
China India Latin America United States

315.5
65 142.4 45 12.5

67
13.8 30.2 9.5 2.6

EU 25
Total

8.4
471.3

1.8
100

Source: Economist Intelligence Unit

The Four Phases

four distinct phases in Indias growth and economic reforms since independence. Phase I (1951-65): Takeoff under a liberal regime Phase II (1965-81): Socialism Strikes with a Vengeance Phase III (1981-88): Liberalization by Stealth Phase IV (1988-06): Triumph of Liberalization

1. 2. 3. 4.

The Four Phases

Phase Phase I Phase II Phase III Phase IV Time Period 1951-65 1965-81 1981-88 1988-06 Growth Rate 4.1 % 3.2 % 4.8% 6.3%

Indias real GDP grew at 6.9% pa during 2000-2007 (RBI Handbook 2008)

Four Phases of Growth (percent)

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Annual GDP Growth Rate (%)

6 5 4 3 2 1 0 1951-65 1965-81 1981-88 1988-06

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India: Changing Composition of GDP

Year 1950-51 1964-65

1980-81 1987-88 2004-05

Agriculture & Allied Industry Manufacturing Service 57 15 9 28 49 21 14 31 40 24 14 36 33 26 16 41 21 27 17 52

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Composition of GDP
1950-51
Agriculture and Allied Industry Manufacturing Service

2004-05
Agriculture and Allied Industry Manufacturing Service

Declining share of agriculture; increasing share of industry and services

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Merchandise Exports and Imports as Proportion of GDP

Year 1965-66 1975-76 1985-86 2005-06 Exports/GDP 2.9 4.8 3.9 20.5 Imports/GDP 5.1 6.3 7.1 22.6

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Merchandise Exports and Imports as Proportions of GDP

Merchandise Exports and Imports as Proportions of GDP
25 20

% of GDP

15 10 5 0 1965-66 1975-76 1985-86 2005-06

Exports/GDP Imports/GDP

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Poverty Decline under Liberalization Reforms

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Major Challenges
Ensuring that good economics is good politics (this will require a shift from ruling to governing mindset, and administrative and civil service reforms). Environmental challenges. Energy and Food Security. Managing Urbanization. Accelerating physical and social infrastructure investments. Developing human capital for sustainable livelihoods through application of knowledge economy . Coping with demographic challenges.
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