1. 1.MOHD ARIF
2.BUSHRA ZAHIR KHAN
3.ARTI YADAV
4.ARMAN ALI
5.ARUNIMA SHARMA
6.DIMPLE KUMARI
7.JYOTSNA
MIDDLE INCOME TRAP
2. WHATS THE INDIA STORY
3. Rising GDP growth
% average annual GDP growth
1900 1950 1.0
1950 1980 3.5
1980 2002 6.0
2002 2006 8.0
Sources: 1900-1990: Angus Madison (1995), Monitoring the World
Economy, 1990-2000:Census of India (2001), 2000-2005 Finance
Ministry
4. Population growth is slowing
% average annual growth
1901 1950 1.0
1951 1980 2.2
1981 1990 2.1
1991 2000 1.8
2001 2010 1.5
Sources: 1900-1990: Angus Maddison (1995), Monitoring the World
Economy, 1990-2000:Census of India (2001)
5. Literacy is rising
%
1950 17
1990 52
2000 65
2010 (proj) 80
Source: Census of India (2001)
6. Productivity is rising
30% to 40% of GDP growth is due to
rising productivity
7. Middle class is exploding
% Million
People
1980 8 65
2000 22 220
2010 (proj) 32 368
Source: The Consuming Class, National Council of Applied Economic
Research, 2002
8. WHAT IS A MIDDLE INCOME TRAP
Countries stagnating and not growing to advanced country
levels
9. INCOME AND CONSUMPTION TRRNDS
10. Figure 1. Changes in income share by economic
class
11. Figure 2. Growth in inflation-adjusted family
income
12. Figure 3. Inflation-adjusted median family
income
13. Figure 5. Annual hours of work in married families, 1979
& 2000
14. priorities for becoming a determined marathoner
15. Enormous challenge of managing threesimultaneous
transformations
16. Managing three transformations simultaneously will be an
enormous challenge. To do so, India must anticipate and adapt to
the changes wrought by each of these transformations individually
and collectively
17. THREE DIMENTIONS TO GROWTH
Societymoving from a poor society to a
cohesive affluent society
Economymoving from a domestically oriented
to a globally competitive economy
Worldmoving from a small player to a responsible
global citizen
18. Indias long-term prospects and growth will depend on its
ability to balance all three dimensionssociety, economy and global
citizenshipas it makes policy decisions
19. Overarching issues of governance
20. facets of governance must change to transform the Indian
economy and society:
21. Create a smarter, more focused, agile and more credible
government.
Retool the civil service to meet the needs of today and
tomorrow.
22. Focus on the long term and open the public private
dialogue.
Support competitive markets and prevent capture of state
organs.
23. Inculcate a code of self-discipline and ethical behavior
within the business community.
Reverse the deterioration in political governance.
24. Implement priorities, monitor results, ensure
transparency and enforce accountability.
25. A refocused government is essential to facilitating
dramatic transformations in the Indian economy and society. There
is a need to rethink not only what the government does but also how
it does it
26. intergenerational issues requiring an immediate
start
27. Tackle disparities and achieve inclusive growth.
Dramatically improve the quality of the environment.
28. Eliminate infrastructure bottlenecksCreate a competitive
edge.
Improve the delivery of public servicesCreate
functioning cities for sustaining growth.
29. Renew the focus on education, technological
development and innovationKeys to sustaining
improvements in competitiveness.
Launch a revolution in energyEnsure security and
competitiveness.
30. Foster a prosperous South Asia and become a responsible
global citizenIndia, its neighborhood
and the world.