1. Economic development of India after liberalisation
Dr.C.Pratheep
Mulamana V & HSS, Anakudy

2. India: 1947 to 2012 India has achieved growth in various sectors 1947
2005/06
2009/10
Literacy Rate(%) 18 60 74
Life Expectancy (Years) 32 63 65
Investment Rate (%GDP) 9 30 38 39
Annual GDP growth rate (%) 3
8.4 8
6.9
Annual Population growth rate (%)
1.25
1.5
1.0

3. Economic development since 1950
Year
GDP Growth rate (%)
Investment Rate (%GDP)
1951/2-1955/6
3.6
13.64
2000/ /5
6.0
33.04
1960/ /5
5.0
15.26
2004/5-2005/06
9.5
34.9
1970/1-1974/5
2.3
18.28
2005/6-2006/7
9.6
36.2
1980/1-1984/5
5.6
22.16
2006/7-2007/8
9.3
39.0
1990/1-1994/5
28.72
2007/8-2008/9
6.8
35.1
1995/6-1999/0
6.5
28.43
2008/9-2009/10
8.0
38.2
2010/11-
2011/12
6.9 NA

6. Growth rate in India
Chart

7. Population, GDP, and GDP per capita at market prices, selected years
1960
Population(in Millions)
GDP (millions constant 2000 USD)
GDP per capita (constant 2000 USD)
435
76283
175
1965
487
91054
187
1970
548
113606
207
1975
613
130913
213
1980
687
152621
222
1985
765
198167
259
1990
850
268023
316
1995
932
345394
371
2000
1016
457377
450
2005
1095
641926
586

8. GDP per capita (constant 2000 US$), selected comparisons
1965
1980
1995
2004
India
187
222
371
538
Sub-Saharan Africa
485
577
484
537
South Asia
197
234
377
522
E Asia and Pacific
145
273
735
1254
Latin America and Caribbean
2276
3568
3555
3906
World
2843
3974
4748
5516

9. Contributions to growth (in annual percentage rate of change)
Selected Periods
Output
Employment
Output per worker
Contribution of
Physical capital
Land
Education
Factor Productivity
1960–73
3.3
2.0
1.3
1.1
-0.2
0.1
0.2
1973–83
4.2
2.4
1.8
0.9
0.3
0.6
1983–93
5.0
2.1
2.9
-0.1
1.7
1993–99
7.0
1.2
5.8
0.4
2.8
1999–2004
6.0
3.6
1960–2004
4.7
2.6
1960–80
3.4
2.2
1.0
1980–2004
1.9
3.8
1.4
0.0

10. Percentage of GDP (at factor costs) by industry of origin
Year
Agriculture
forestry,
fishing, mining,
and quarrying
Manufacturing
construction,
and electricity,
gas, and water
supply
Trade, hotel,
transport, and
communication
Financing,
insurance, real
estate, and
business
services
Public
administration
and defence
and other
1950/1 59 13 12 7 9
1960/1 55 17 14 6
1970/1 48 20 16 11
1980/1 40 22 18
1990/1 35 24 19 10
2000/1 27 15
2005/6 23 25

11. Indian Industry

12. Growth performance of the manufacturing sector
Growth performance has two dimensions: (i) rate of growth of the industrial and manufacturing sectors; and (ii) rate of growth of employment
Three sources of data: (i) Index of Industrial Production; (ii) National Accounts Statistics; and (iii) Annual Survey of Industry

13. Rate of growth of the industrial and manufacturing sectors
Much of the discussion on growth performance is on the basis of Index of Industrial Production (IIP)
The IIP has three base years: ( through ); ( through ) and ( through ).
We could then splice the three separate series into one with the base year

14. Rate of growth of industrial and manufacturing sectors over the period, 1980-8 1 through 2011-12

15. Growth performance: Pre and Post Liberalization
Industry
Manufacturing
Pre Liberalization
7.69
7.58
Post Liberalization
6.72
7.24

16. Industry-wide growth performance of the Manufacturing Sector (average annual growth rates per annum)

20. Labour

21. Trends in Employment (in Millions)
Number of persons engaged
Rate of growth
7.89
8.17
3.44
7.99
-2.10
7.98
-0.16
7.58
-4.98
7.55
-0.46
7.90
4.70
7.86
-0.58
8.26
5.07
8.28
0.27
8.32
0.49
Average- pre liberalization period
0.57
8.84
10.72
0.02
9.23
4.41
10.22
10.78
9.54
-6.71
10.07
5.63
0.00
-2.26
7.75
-2.97
7.94
2.39
7.87
-0.83
8.45
7.41
9.11
7.78
10.33
13.35
10.45
1.20
Average-post liberalization period
8.42
-3.07

22. Growth of PCSDP by Statesto to to AP
0.87
2.98
4.54
Karnataka
1.53
3.13
5.05
Maharashtra
1.75
3.16
4.15 TN
1.02
3.40
4.61
Punjab
2.94
3.43
2.48
Haryana
2.51
3.65
4.07
Kerala
1.23
1.14
4.35
Gujarat
1.10
2.73
5.58
India
1.01
2.80
4.55
4/26/2017

23. Growth of PCSDP by Statesto to to
Assam
0.47
1.09
1.49
Bihar
0.45
2.50
2.66 MP
0.24
1.16
2.20
Orissa
0.31
2.88
3.75
Rajasthan
0.62
3.17
2.40 UP
0.58
2.37
1.77
West Bengal
0.34
2.31
4.99
India
1.01
2.80
4.55
4/26/2017

24. Foreign Direct Investment
Inward and Outward FDI
Definitional issues
Changes in Government Policies
Magnitude of inward and outward FDI inflows
Country wide and industry-wide distribution
Effect of inward FDI: (i) Overall economic growth; (ii) exports from India; (iii) non-debt creating way of financing BoP; (iv) technology spillovers

25. Trends in Net Inward FDI (Millions of US $)

26. Trends in Net Inward and Outward FDI (Millions of US $)
Net FDI (in Millions of US $)
Net Outward FDI
Ratio of inward to outward 97 6
0.06
129 4
0.03
315
242
0.77
586
3647
6.22
1343
3579
2.66
2143
2660
1.24
2842
3312
1.17
3562
1828
0.51
2480
-68
-0.03
2167
3024
1.40
4031
-759
-0.19
6125
-1391
-0.23
5036
-1819
-0.36
4322
-1934
-0.45
5987
-2274
-0.38
8901
-5867
-0.66
22739
-15046
34728
-18835
-0.54
37672
-17855
-0.47
33124
-14353
-0.43
23364
-16222
-0.69

27. Country-wide distribution of inward FDI

28. Industry-wide distribution of outward FDI

29. Direction of India’s Outward FDI

30. Industry-wide distribution of Outward FDI

31. World Bank prediction on Indian Economic Development

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