AMITY INTERNATIONAL BUSINESS SCHOOL 2012-2015

INDIA to World Economy

India’s Contribution IN world

ECONOMY

BBA-IB, SECTION- ‘A’

BY :SUNIL KR. AHIRWARBBA-IB FACULTYEnrollment A1833312026 MS.NAVITA MAHAJAN

After 1991

Since 1990 India has emerged as one of the wealthiest economies in the developing world; during this period, the economy has grown constantly, but with a few major setbacks. This has been accompanied by increases in life expectancy, literacy rates and food security.

India’s Contribution to World’s Economy

Government Intervention

Major improvements in educational standards across India.

In the late 80’s the government led by Rajiv Gandhi eased restrictions on capacity expansion for incumbents, removed price controls and reduced corporate taxes. While this increased the rate of growth, it also led to high fiscal deficits and a worsening current account.

Public Receipts

The tax reforms, initiated in 1991:

(a) Reducing the rates of individual and corporate income taxes, excises, customs and

making it more progressive

(b) Reducing exemptions and concessions .

(c) Simplification of laws and procedures.

(d) Introduction of PAN to track monetary transactions.

Public Receipt

Tax receipts of Centre & State amount to approximately 18% of national GDP.

limited resources of Government affect its ability to pay fair wages to public servants. This may well be the cause of endemic corruption at all levels of government.

Physical Infrastructure

India's low spending on power, construction, transportation, telecommunications and real estate, at $31 billion or 6% of GDP in 2002 had prevented India from sustaining higher growth rates.

India holds 2nd position in the world in roadways' construction, more than twice that of China.

Agriculture Sector

Agriculture & allied sectors like forestry logging and fishing accounted for 16.6% of the GDP in 2007.

2nd largest world-wide in farm output.

Industry

India is 14th in the world in Factory Output.

Account for 27.6% of the GDP and employ 17% of the total workforce.

Service Sector India is 15th in service output.

It provides employment to 23% of work force, and it is growing fast, growth rate 7.5% in 1991–2000 up from 4.5% in 1951–80.

Contribution of IT to GDP increased to 4.8 % in 2005-06 and is projected to increase to 7% of GDP in 2008.

China and India’s Share in World GDP.

0%

5%

10%

15%

20%

25%

30%

35%

1000 1600 1820 1913 1973

China

India

19980%

5%

10%

15%

20%

25%

30%

35%

1000 1600 1820 1913 1973

China

India

1998

Conclusion

THE WAY FORWARD

• Infrastructure

• Education

• Business climate

• Public expenditure efficiency