2. development dynamics of indian economy since 1947

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Development Dynamics of

Indian Economy since 1947(With special reference to Rural India)

Shashi Kant, Associate Professor,

PGGCG11, CHD


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INDIA CHINA JAPAN U.S.A EUROPE REST OF THE WORLD1AD

1500AD1820AD

1870AD

1950AD

2008AD

33

2515

12

4

6

27

2533

17

5

13

1

33

2

3

7

0

02

9

28

21

14

2127

38

31

19

25

2620

22

29

34

Source : The Economic Times , Jan 29, 2008

Percentage Share Of World

GDP


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0

1

2

3

4

5

67

1757-1947 1951-81 1981-91 1991-2001 2001-09

Average Growth Rate

Average Growth Rate


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Concentration of Income & Expenditure

in IndiaTop 20 cities in India Account for1. 10% of Indias Population2. 20% of Indias Expenditure

3. 30 % of Indias Income4. 60 % of Indias Surplus Income

Out of 20% top rich in India53% live in these T-20 cities

30% in other cities12% in rural areas

As per data in NCAERFuture Capital Researchs The next urban frontier:Twenty cities to watch, quoted from Financial Express, Oct 2,2010 P9


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Increasing growth rate, but for whom?


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The transport of the

common man remainsunder developed


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Year Percentage

1998-99 47

2005-06 46

Malnourished Children in India


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Power guzzling

malls, fastemerging malls

more than 2 lakh villages inIndia without power


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Year Production in lakhs/year

2008-09 21.662009-10 34.74

2011-12 47.5 (projected)

Source: Business Line, July 18, 2010 Pg 1

Production of Passenger Vehicles in India


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The water table in Rajasthan has been

falling for years, and Coca-Cola which

receives a virtually free and unlimitedwater supply from the government

has been blamed for intensifying

drought conditions, that have made

times very difficult for farmers

throughout the region.


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Increasing Disparities Post Globalisation in India

Percentage ofPopulation

Percentage Share in National Income

1993 94 2009-10

Top 20% 36.7 53.2Bottom 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


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Percentage of People Below Poverty Line in India

Author/Agency Percentage Below Poverty lineIndia Rural Urban

PlanningCommission

27.5 28.3 25.7

Tendulkar

Committee

37.2

(Starvation Line)

41.8 25.7

NewMultidimensional

poverty Index(MPI)

(UNDP & Oxford

University, July 10)

55.0(64.5 crore*)

NA NA

Source: Business Line; Sept 7, 2010 P8

*Out of these 42.1 crore poor reside in eight poorest states (Bihar,Chhatisgarh, Jharkhand, MP, Orissa, Rajasthan, UP & WB.


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Average GDP Growth Rates of Agriculture and Other Sectors at

1999-2000 prices (per cent)

Period TotalEconomy

Agriculture andAllied

Pre-Green Revolution 1951-52 to 1967-68 3.7 2.5

Green RevolutionPeriod

1968-69 to 1980-81 3.5 2.4

Wider TechnologyDissemination Period

1981-82 to 1990-91 5.4 3.5

Early Reforms Period 1991-92 to 1996-97 5.7 3.7

Ninth and Tenth Plan 1997-98 to 2006-07 6.6 2.5

Source : Govt. Of India, Economic Survey, 2007-08(New Delhi 2008) Table 7.1 , Pg 115


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Gross Capital Formation in Agriculture

Year Total Investment inAgriculture (Rs. Crore)

Public SectorInvestment in

agriculture (Rs. Crore)

Share of Public sectorinvestment in total

investment in agriculture(per cent)

Series at 1993-94 prices

1990-91 14,836 4,395 29.6

Series at 2004-05 prices

2004-05 78,848 16,183 20.5

2008-09 1,38,597 24,452 17.6

Source : Govt. Of India, Economic Survey, 2006-07, 08-09, 09-10.

Agricultural Statistical at Glance, 2008


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Real beneficiaries of Globalisation

Name of ForeignCompany

Year ofIncorporatio

n in India

CapitalBroughtRs. Lakh

Paid upCapital(2010-11)Rs. Cr.

Sales(2010-11)Rs. Cr.

Net Profit(2010-11)Rs. Cr.

HindustanUnilever Limited

1933 24 221.26 17501.7 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 1947 5 29.84 876.4 162.2

Multiple Sources


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Some Important Indicators :

Future Of Globalisation1990-91 2009-10

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% (2008-09)

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 exchangeReserves

$1.1 b $283.5 b (End Dec 2009)

Source : Different Economic Surveys (GOI, New Delhi)


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2. development dynamics of indian economy since 1947

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