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INDIAS ECONOMIC
POTENTIAL IS NOTOVERSTATED/OVERRATED
Neha Pathak
Sai Pooja Amar
Ankita Tiwari
Akthar Raza
Sai Krishna Chaitanya PotharajuHG Arthur Denzlin
Afzal Hussain
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India will become the third largesteconomy in the world after China andthe United States of America by 2025
Graeme Wheeler, Managing DirectorWorld Bank
India is poised to emerge as the thirdlargest economy in the world after USand China by 2025. Nareshwar Dayal,Indian High Commissioner to Britain
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Agenda
Forecast HG Arthur Denzlin
RBIs Efficiency, Budget andEntrepreneurship Ankitha Tiwari
Agricultural, Industrial & Service sectorsSaikrishna Chaitanya
FDI and Retail Attractiveness Akthar Raza
Macro Economic variables Neha Pathak
HDI and Human Resource Saipooja Amar
10 areas where reforms are needed Afzal Hussain
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BRIC Report
By 2025 the Indian economy is projectedto be about 60 per cent the size of theUS economy. The transformation into a
tri-polar economy will be complete by2035, with the Indian economy only alittle smaller than the US economy butlarger than that of Western Europe.
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Tri Polar Economy
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s s overs a e , en seethis??Growth rate of GDP of 6.9%
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INDIAS EFFICIENT RBI
During the recession times , RBI came upwith effective monetary polices.
Ensured appropriate liquidity in thesystem, consistent with objective ofprice and financial stability.
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-BUDGET 2010 2011
Increased the tax base and DTC leading torelief for the middle and the salariedclass.
A coin gains more value as it changesownership.
Government committed to growth ofSEZs.
Four-pronged strategy for growth ofagricultural sector.
Emphasis on infrastructure pumping andwithdrawal of subsidies.
Given sco e to rivate business . Private
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Entrepreneurship
urce:WorldDev
elopment
Rep
ort,2005(WorldB
ank)
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Entrepreneurship helpsEconomy
Generate Employment
Revenues for the Government
Inclusive Growth
New Technology
Development of the society
Gives higher purchasing power to the
people of the country
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Share of GDP
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Sector 2009
GDP breakdown Agriculture 17.5% Services 62.6%
Industry 19.9% Labor breakdown
Agriculture 52%
Service 34%
Industrial 14%
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Agricultural sector
Agriculture is generally described as thebackbone of Indian economy and is at thecore of socio economic development of
the countryThe agricultural sector contributes
proportionally more to poverty reductionthan growth in any other economic sector
and that therefore alone, the focus shouldbe on the agricultural sector
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Growtrh rate
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easons or e grow oServices and Manufacturingsector India opens up
The rise of the financial sector
Back-office to the world
The Golden QuadrilateralThe great migration
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Attracting FDI
India has the highest returns on foreigninvestment US Department of Commerce
India 19.3%
China 14.7%Thailand 13.0%
India is amongst the three most attractive FDIinvestments in the world. AT Kearney FDI
Confidence Index 2010
Country 2010Rank
2007Rank
Change
China 1 1 0UnitedStates
2 3 +1India 3 2 -1Brazil 4 6 +2
Germany 5 10 +5
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Retail Attractiveness
India has been ranked 1st by AT Kearney in aGlobal Retail Development Index of 30developing countries and is seen as apotential gold mine.
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2009 A.T. Keareny Global RetailDevelopment Index
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Per capita income
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Literacy Rate in India
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Percentage of people underpoverty line
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- ,expected to have an annual income of overUS$ 6,000 per annum (US$ 30,000 in PPP*terms)
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Unemployement in India
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India in terms of HDI
The HDI for India is0.612, which givesthe country a rank of134th out of 182
countries Life expectancy at
birth: 63.4years andranked 128th
Adult literacy rate:66% and ranked 120th
Combined grossenrolment ratio:
64% and ranked 134th
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HDI cont
There are 5,886.9 thousand migrantswhich represent 0.5% of the totalpopulation.
Remittances are sent to immediate familymembers who have stayed behind, areamong the most direct benefits frommigration, the benefits spread broadlyinto local economies as they also serveas foreign exchange earnings for theorigin countries of migrants.
India topped in the inflow of remittanceswith US$ 35262millions of the total US$370billions.
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With over 380 universities, 11,200 colleges and 1,500research institutions, India has the second largestpool of scientists and engineers in the world. Over 2.5million graduates are added to the workforce every
year, including 300,000 engineers and 150,000 ITrofessionals.
10 h f i
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10 areas where reform isneeded
1.Improve governance
2.Raise educational achievement
3.Increase quality and quantity ofuniversities
4.Control inflation
5.Introduce a credible fiscal policy
6.Liberalise financial markets
7.Increase trade with neighbours8.Increase agricultural productivity
9.Improve infrastructure
10.Improve Environmental Quality
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Thank You
?? QUESTIONS ??