WELCOME

Sun Degree & PG College

gRAAHYA-13

Indian Economy

Presented ByD.Radha

Contents

How Does an Economy Work?

Indian Economy Rankings

India : A Mixed Economy

Various Reasons

Graphs

GDP

National Income

Inflation

Conclusion

How Does An Economy Work?

Nations must answer 3 basic Economic question: What goods and services should be produced? How should the goods and services be produced? For who should the goods and services be

produced?

The way a nation answers these questions defines their economy.

Indian Economy Rankings

The economy of India is the tenth largest in the world by nominal GDP and the third largest by purchasing power parity (PPP).

The country is one of the G-20 major economies and a member of BRICS.

India ranked 119th by economy in world.

India : A Mixed Economy

Post Independence (1947), Pandit Jawaharlal Nehru proposed the idea of “Mixed Economy”.

Initial motive: to reduce social and economic stress.

Priority on “Economic growth with social justice”.

Commanding role of state in industrial production and import substitution strategy.

Role in agriculture limited to infrastructure development, irrigation and trade.

Resulting low GDP at 3-4% p.a.

Finally, Balance of payment crisis of 1991 initiated Economic Liberalization.

Various Reasons

Slowdown reasons:

High Inflation

Corruption

Earnings slowdown

Duplicate notes

Rising gap between rich and poor states

Development reasons:

Agriculture sectors

Healthy for ex reserves

Service sectors

Political consensus on reforms

Gross Domestic product (GDP)

Year Growth (real) (%)

2000 5.62001 6.02002 4.32003 8.32004 6.22005 8.42006 9.22007 9.02008 7.42009 7.42010 10.12011 6.82012 6.52013 4.4

GDP is a total income by total population.

GDP growth 3.986% (2012–13)

GDP per capita$1,491 (nominal: 141st; 2012)

$3,829 (PPP: 130th; 2012)

GDP by sectoragriculture: 17.4%, industry:

25.8%, services: 56.9% (2012 est.)

Indian Economy

Services30%

Agriculture58%

Industry12%

Principal Source of Work/Income Security in India

Sectoral Composition of GDP (2010-2011)

Contents India

Size

Population

GDP (2012-13)

GDP/capita

3,287,263 km²

1.2 Billion

1.84 trillion

$1,502.71

National Income

“ A national income estimate measures the volume of commodities and services turned out during a given period counted without duplication.”

It is the money value of the flow of goods and services available in an economy in a year

National Income refers to-The income of a country to a specified period of time, say a year, includes all types of goods and services, which have an exchange value, counting each one of them only once

Inflation

Inflation is a state of persistent rise in prices.

The inflation rate in India was recorded at 6.46 percent in September of 2013.

Inflation Rate in India is reported by the Ministry of Commerce and Industry, India.

1969 until 2013, India Inflation Rate averaged 7.7 Percent reaching an all time high of 34.7 Percent in September of 1974 and a record low of -11.3 Percent in May of 1976.

Conclusion

Finally I concluded that 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- A country with Potentials for ‘sustaining’ development!!

THANK YOUAny Queries ?