Do you know … …who has the eleventh largest economy in the world …a blooming production in software and pharmaceuticals. …A GDP of $1,031 per capita …A population of 1,18 billion.

INDIA’S TRANSFORMATION

Economic system ? After the independence 1947 India became a mixed economy ; - state-owned enterprises, -centralized planning -subsidies. After 1991 India was moving towards a more open and privatized economy.

The effect of privatization. Reform program in 1991 due to the low progress of development. -the industrial licensing system was dismantled -several areas previous closed for the private sector were opened

Investment from foreign enterprises was welcomed - Tariff on imports: 400 percent to 65 percent - Top income tax rate was reduce - Corporate tax: 1994: 46 percent 1997:35 percent

After privatization, deregulation, and the removal of barriers to foreign direct investment ……. Economy : expanded at an annual rate of about 6.3 percent : 12.9 percent per annum Foreign investment 1991: $150 million 2009: $34.6 billion

-the technological and pharmaceutical sector have been especially outstanding among sectors -emerged as a vibrant global centre for software development Sales in 1990: $150 million Sales in 2007: $ 50 billion

Why has India become the leader in the technological and the pharmaceutical sector? Top corporations outsource their production to India. Approval was made automatic for foreign equity stakes, and even 100 % of foreign ownership was allowed in certain circumstances. Raw materials and industrial goods could be freely imported.

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