Indian Economy:Recent changes or developments in Indian Economy…

BY:SYED SHAFI

OVERVIEW OF INDIAN ECONOMY The economy of India is the seventh-largest economy

in the world measured by nominal GDP and the third-largest by purchasing power parity (PPP). The country is classified as a newly industrialized country, one of the G-20 major economies, a member of BRICS and a developing economy with an average growth rate of approximately 7% over the last two decades

An abundant and diversified natural resource base, sound economic, industrial and market fundamentals and highly skilled and talented human resources, make India a destination for business and investment opportunities with an assured potential for attractive returns.

Defining Economic:

GDP• $2.25 trillion

(2016)• 7th / 3rd

(PPP)

Currency• Indian

rupee (INR) (₹) = 100 Paise

FDI Stock• Inward:

$282.27 billion

• Outward: $138.97 billion

G.D.P during the last four years

GDP Growth Year2015-16 7.62014-15 7.22013-14 6.62012-13 5.6

Sectorial Contributions in GDP & Employments

Sector GDP(%) Employment(%)

Agricultural 17.% 49%Industrial 29.7% 20%Service 45% 31%

RECENT DEVELOPMENTS:

After a major economic crisis in 1991, followed by bold reform measures, the economy has experienced a rapid economic growth rate, more foreign investment, and a boom in the information technology sector.

Let’s have a look at the developments in India over the last 10 years. We will be having a look at all the major areas

10. Rural Development:

Developments in rural areas are majorly concerned with the proper utilization of land resources and imparting proper healthcare and education to the people of rural areas.

Development of small scale industries have made people independent and confident.

9. Power: In the last 10 years, power sector in India has

seen increased participation of private sector, both foreign and domestic.

‘New’ Electricity act, 2003 is a landmark document, first of its kind that revamps the regulatory framework governing the power sector.

8. Military research and development:

India has set a budget of $ 100 billion for defense purchases for this decade. With this whooping amount, India has its sight set on modernizing military and jump-start its own defence industry.

Let’s have a look at various deals:$ 10 billion contract for 126 multi-role combat

aircraft,$ 7.6 billion contract for 12 stealth frigates,

7. Media and Entertainment:Media and entertainment industry has became one

of the leading industries in India after registering an explosive growth in the last decade. There are more than 400 channels in the country till date.

It increased from US $ 12.9 billion in 2009, to US $ 14.4 billion in 2010. This showcases the explosive growth of media and entertainment in India.

6. Tourism:

Meanwhile, “Incredible India” campaign is being maintained well by the tourism ministry.

o Rich history, geographical and cultural diversity attracts large number of international tourists in India. Tourism generates much revenue and opens employment opportunities in the country. GDP of tourism sector has increased by 229% in the years 1990-2011

5. Economic Growth:

With fundamental reforms and their renewal in 1991 and 2000s respectively, India has managed to emerge as a free market economy. India is the 7th largest economy in the world.

Agriculture:  India is the 2nd largest food producer in the world. Agriculture and allied sectors like fishing, forestry, etcetera, gave employment to 49% of the total workforce with 17% of GDP

Oil and Natural gas reserves: India has massive reserves of oil and natural gas. As of January 2010, India has about 5.62 billion barrels of oil and 1.437 billion cubic meters of natural gas reserves.

Employment: Employment growth in India is only 2.3% per year, but labor force is growing by 2.5% a year. Unemployment in India is more than 9% and only 10% of workforce is engaged in regular employment.

4. Infrastructure: Aspirations of Indians are

soaring high. This requires massive investments to create new jobs, housing and to make cities and towns more livable. With the development of India’s human potential, infrastructure development plays a major role to determine the shape of country.

Infrastructure of any country boosts its pride and India has been witnessing continuous changes in this sector, be it roadways, railways, airport, etc.

3. Urbanization:

It was after India’s adoption of mixed system of economy that urbanization in India gained prominence. Only 11.4% of population resided in urban areas according to 1901 census. The count kept on increasing and it was 28.53% in 2001 and crossed 30% in 2011, constant at 31.16%. It has been analyzed in a survey that by 2030, this count will go up to 40.76%

2. Education:  The literacy rate in India was recorded as 74% in

2011 census. India is now ranked at number 3 after china and U.S.A in the field of higher education.

Education system in India has seen many critical changes. Some of these changes are very advantageous. Let’s have a look at the few of them:

Online education in India Distance education

1. Healthcare:

Healthcare systems are established all over the country to provide better diagnosis, treatment of diseases, illness, etc. Health care plays a significant role in any country’s economy.

The 12thfive-year plan also underlined various strategies related to health. They are:

Substantial expansion and strengthening of public sector health care systems.

It stresses on cooperation between public and private health care providers.

Expansion of medical colleges and hospitals, etc.

THANK YOU

Source : Wikipedia, Credit Suisse