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Development Dynamics of Indian Economy since 1947

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Presentation on theme: "Development Dynamics of Indian Economy since 1947"— Presentation transcript:

1 Development Dynamics of Indian Economy since 1947
(With special reference to Rural India)

2 Percentage Share Of World GDP
INDIA CHINA JAPAN U.S.A EUROPE REST OF THE WORLD 1AD 1500AD 1820AD 1870AD 1950AD 2008AD 33 25 15 12 4 6 27 17 5 13 1 3 2 7 9 28 21 14 38 31 19 26 20 22 29 34 Source : The Economic Times , Jan 29, 2008

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4 Concentration of Income & Expenditure in India
Top 20 cities in India Account for 10% of India’s Population 20% of India’s Expenditure 30 % of India’s Income 60 % of India’s Surplus Income Out of 20% top rich in India 53% live in these T-20 cities 30% in other cities 12% in rural areas As per data in NCAER – Future Capital Research’s – The next urban frontier: Twenty cities to watch, quoted from ‘Financial Express’, Oct 2,2010 P9

5 Increasing growth rate, but for whom?

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7 The transport of the common man remains under developed…

8 Malnourished Children in India
Year Percentage 47 46

9 Power guzzling malls, fast emerging malls…
…more than 2 lakh villages in India without power

10 Production of Passenger Vehicles in India
Year Production in lakhs/year 21.66 34.74 47.5 (projected) Source: Business Line, July 18, 2010 Pg 1

11 The water table in Rajasthan has been falling for years, and Coca-Cola — which receives a virtually free and unlimited water supply from the government — has been blamed for intensifying drought conditions, that have made times very difficult for farmers throughout the region.

12 Increasing Disparities Post Globalisation in India
Percentage of Population Percentage Share in National Income 1993 – 94 Top 20% 36.7 53.2 Bottom 60% 38.6 27.9 As per study conducted by National Council of Applied Economic Research (NCAER) quoted from Business Line, Sept 07, 2010 P8 from an article by S.D. Naik, ‘We are poorer than we thought’

13 Percentage of People Below Poverty Line in India
Author/Agency Percentage Below Poverty line India Rural Urban Planning Commission 27.5 28.3 25.7 Tendulkar Committee 37.2 (Starvation Line) 41.8 New Multidimensional poverty Index (MPI) (UNDP & Oxford University, July 10) 55.0 (64.5 crore*) NA *Out of these 42.1 crore poor reside in eight poorest states (Bihar, Chhatisgarh, Jharkhand, MP, Orissa, Rajasthan, UP & WB. Source: Business Line; Sept 7, 2010 P8

14 Agriculture and Allied
Average GDP Growth Rates of Agriculture and Other Sectors at prices (per cent) Period Total Economy Agriculture and Allied Pre-Green Revolution to 3.7 2.5 Green Revolution Period to 3.5 2.4 Wider Technology Dissemination Period to 5.4 Early Reforms Period to 5.7 Ninth and Tenth Plan to 6.6 Source : Govt. Of India, Economic Survey, (New Delhi 2008) Table 7.1 , Pg 115

15 Gross Capital Formation in Agriculture
Year Total Investment in Agriculture (Rs. Crore) Public Sector Investment in agriculture (Rs. Crore) Share of Public sector investment in total investment in agriculture (per cent) Series at prices 14,836 4,395 29.6 Series at prices 78,848 16,183 20.5 1,38,597 24,452 17.6 Source : Govt. Of India, Economic Survey, , 08-09, Agricultural Statistical at Glance, 2008

16 Real beneficiaries of Globalisation
Name of Foreign Company Year of Incorporation in India Capital Brought Rs. Lakh Paid up Capital( ) Rs. Cr. Sales ( ) Net Profit Hindustan Unilever Limited 1933 24 221.26 2105.9 Philips India 1956 10 70.30 2890.6 190.30 Colgate Palmolive 1937 1.5 13.60 1962.5 421.0 Novartis India 1947 48.75 15.98 623.9 116.2 Pfizer India 5 29.84 876.4 162.2 Multiple Sources

17 Some Important Indicators : Future Of Globalisation
Current A/c Balance/GDP -3.69% -3.3% Combined Debt of Central & State Govt. as % of GDP 64.7%(Rs. 3,68,824 crore) 76.6%(Rs. 44,85,955 crore) Gross fiscal Deficit/GDP 7.8% 6.7% External debt/GDP 23% 21.9% ( ) Inflation rate (WPI) 10.3% 10.0%+ Imports of Petroleum oils & lubricants $6.03 b (25% of total imports) $91.3 b (30.1% of total imports) Fig of 08-09 Foreign exchange Reserves $1.1 b $283.5 b (End Dec 2009) Source : Different Economic Surveys (GOI, New Delhi)

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