indian economic potentially is not overstated

8/8/2019 indian economic potentially is not overstated

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12/15/2010 NATIONAL ECONOMIC PLANNING 1

Indian

EconomicPotential Is

NotOverstated

PRESENT BY:

MANOJ

ANANT

MANISH

PRAMOD


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Where are we coming from?Where are we coming from?

Before independence

After independence

Agriculture sector and small handicraft

industries


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Where are we today?Where are we today?Fourth largest economy by P.P.P.

Second fastest growing economy.

GROWTH:

Population Growth ( 2001- 2007) : 1.4%

GDP Growth (2007- 2008): 9.0%

GDP Growth (Govt. Estimates for 2008-

2009): 7.1%


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contdcontd

Poverty: Rural: 28 % , Urban: 26 %

(Below National Poverty Line)

Life expectancy at birth: 64 years

Infant mortality ( per 1000 live births): 57


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contdcontd

Children Underweight (below 5 years): 46%

Male Adult literacy (age 15 and older): 73%

Female Adult literacy (age 15 and

older): 48%

Access to improved water source

(% of pop): 89%


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28 years of high growth28 years of high growth

0

1

2

3

45

6

7

8

9

10

1900-1950 1950-1980 1980-2002 2002-2007

average annual GDPgrowth


Sources:1900-1990:angus

Maddison(1995),monitoring the worldeconomy, 1990-2000/census of India (2001)


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Literacy is risingLiteracy is rising

0

10

20

30

40

50

60

70

80

90

1950 1990 2000 2010(pr j.)

ter cyr te

17

52

65

80

12/15/2010 NATIONAL ECONOMIC PLANNING 8Source: census of India 2001


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POVERTY

SS


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Where are we going?Where are we going?

Long run model scenarioHave potential to grow even further to 8.5%

per capita for next 30 years

GDP growth of around 9.5%.

Economy will reach $20 trillion.

Actual economic size by 2039 could be more

than $ 40 trillion.


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World and IndiaWorld and India



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Demographic dividendDemographic dividend

Growth in: Labour force- 1.7%, Population-1.2%

Ratio of working population to the total

population will be on upswing.

Labour force participation rate of 61%.

Reduction in poverty, means to save, investmentin children and human capital.


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An emerging middle classAn emerging middle class

A middle class a boost to growth for any

country.

Providing the source of domestic demand.

The ratio of Indian middle class would

increase from 10% to 90% in 30 years.


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Large and growing domestic marketLarge and growing domestic market

Increase in consumption.

Rise in subscription for telephone service.

Increased demand of durable goods.

Total production of vehicle:


1988-99 2004-05 2006-07

4.2% 8.6% 11%


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Abundant resourcesAbundant resources

7th

largest country with 3.3 million sq.km & 2nd

largest in Asia.

Ample natural resources.

2nd largest area of arable land.

Large untapped hydro electric power potential


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Versatile, skilled human capitalVersatile, skilled human capital

Unparalleled resource of an educated, hard workingskilled &ambitious workforce

Worlds youngest nation that attracts investment.

Over 380 universities, 11,200 colleges, 1500 research

intuitions

2nd largest pool of scientist & engineers

Over 2.5 million graduates are added to the

workforce every year. 12/15/2010 NATIONAL ECONOMIC PLANNING 18


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The global labor forceThe global labor force



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FDIFDI

India is among the two most attractive FDIdestinations.

Highest returns on foreign investments.

Competitiveness in a natural and human

resource attracts investment.India 19.3%

china 14.7%

Thailand 13%


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EducationEducationT

hird largest education system in theW

orld(after China and USA).

17973 institutions (348 universities and

17625 colleges).

20 central universities, the rest state

universities.

Average enrolment: 530 students

com ared to 4300 in USA .


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Service sectorResponsible for rapid economic

growth.

Contributed 63% of GDP in 07-08.

Ranks 9th in service export.

BPO sectors are expected to touch

$60 billion -$62 billion in 2010-2011.


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Healthy & vibrant financial sectorHealthy & vibrant financial sector

Liberal & progressive policies ,vibrantequity, debt market & prudent banking

norms.

Transparent & well regulated stock market.

Largest number of listed companies across

23 stock exchanges.

Ranking among top3 global markets.


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InfrastructureInfrastructure

Programs of upgrading of 25 airports.

Delhi and Mumbai International

airports two PPP projects with

estimated investment of $3.8 billion.

Construction of roads and highways.

Improvement in public infrastructure


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One of the strongholds of the economy.

Contributes 18.5% to the GDP.

Average growth rate in more than 4%.

Potential to become major grower of transgenic rice

& several genetic engineering vegetable by 2010.

Growing food processing sector.

AgricultureAgriculture


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This is what experts say aboutThis is what experts say about

IndiaIndia

Tom enders ( Airbus )

Craig barrett ( Intel corporation )

Dan scheinman ( Isco system )



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indian economic potentially is not overstated

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