Economic Development After Liberalization

8/4/2019 Economic Development After Liberalization

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ECONOMIC

DEVELOPMENT OF

INDIAN AFTER

LIBERALIZATION IN 1991

ABHISHEK MANGARAJ

ABHISHEK D

ANKURA SHIVARAAM


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What is liberalization?

What is economicdevelopment?

What is economical growth?

Introduction


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WHY THE POST 1990 REFORMS?Lack of centralized economic planning

Inability to address the fundamental issues of

economy

Inabilities to fight against crisis

Intolerable high rate of inflation
http://en.wikipedia.org/wiki/File:Manmohansingh04052007.jpg


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Although theeconomy was

finally liberalised

in 1991, twodecades had been

lost to ideological

dogma andpersonal

expediency .
http://en.wikipedia.org/wiki/File:Manmohansingh04052007.jpg


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The most important

thing that has changed

post liberalisation.


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POST LIBERALIZATION AND

CONTRIBUTIONS OF EACH SECTOR

Name of the

Sector

Statistics Examples

Automobile 28% of GDP,14% of work force Tata motors,

Mahindra

Textile 20% of manufacturing output providingemployment to over 20 million people

Vimal, Bombaydyeing

I.T 13th in the world,provides employment to 23% ofwork force,growth rate of 7.5% up from 4.5% in1951-80,largest share in GDP 55% up from15% in 1950

TCS, Wipro,Infosys


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Name of the

Sector

Statistics Examples

Organized retail 24% of market as of 2008 Future group

Agriculture 2nd in the world market for farm output, accounts for 15.7% of GDP, employs 52.1%,30% to 50% of the average yield of world

Banking and

finance

Total bank deposits increased from Rs.5910 in1970-

71 to Rs.3830922 crores in2008-09,gross domestic saving in2006-07 as a % of GDPstood at high of 32.7%Holding of public sector bank @ 75%,private [email protected]% and foreign [email protected]%

S.B.I,ICICI,HDFC

Energy and power Total oil reserve stood at 775 million tons and gasreserve stood at 1074 billion cubic metersForth largest consumer in world and imported $82.1billion worth of oil in the first 3 quarters of 2010


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ON GOING ECONOMIC CHALLENGES

Problems in the agricultural sector.

Failing education

Inflation in basic consumable goods.Corruption

High fiscal deficit
http://en.wikipedia.org/wiki/Agriculture_in_Indiahttp://en.wikipedia.org/wiki/Education_in_Indiahttp://en.wikipedia.org/wiki/Inflationhttp://en.wikipedia.org/wiki/Corruption_in_Indiahttp://en.wikipedia.org/wiki/Fiscal_deficithttp://en.wikipedia.org/wiki/Fiscal_deficithttp://en.wikipedia.org/wiki/Corruption_in_Indiahttp://en.wikipedia.org/wiki/Inflationhttp://en.wikipedia.org/wiki/Education_in_Indiahttp://en.wikipedia.org/wiki/Agriculture_in_India


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LATEST STATISTICS OF 2010-2011

Economy growth 8.6% in 2010-11; 9% in 2011-12

Inflation 7% by March 2011Agriculture sector growth 5.4%, Industry at 8.1%and services 9.6% for FY2010-11

Fiscal deficit to come down to 5.2% in FY11Exports estimated to increase to $230 billion forFY2010-11


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Current account deficit - 3% of GDP

Capital inflows projected at $64.6 billion for

FY2010-11

Investment rate expected to be 37%


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THE NEXT GENERATION OF REFORMS

The following are ten recommended areas ofspecial focus in the second generation ofeconomic reforms:

1. Political Reforms for Good Governance;2. Re-engineering the Role of the

government;

3. Administrative and Legal Reforms;

4. Strategic Management of the Economywith a focus on knowledge based HRDActivities;

5. Fiscal Prudence


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6. Agricultural Sector Reforms;

7. Industrial Restructuring;

8. Labour Sector Reforms;9. Foreign Trade and Outward Investment

Policies;

10. Financial Sector Reforms


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THANKYOU

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Economic Development After Liberalization