...History of Indian economy Economic history of India begins with the Indus Valley civilization. The Indus civilization's economy appears to have depended significantly on trade, which was facilitated by advances in transport. The political unity and military security allowed for a common economic system and enhanced trade and commerce, with increased agricultural productivity. During this1500 period, India is estimated to have had the largest economy of the ancient and medieval world between the 1st and 17th centuries AD, controlling between one third and one fourth of the world's wealth . India has followed central planning for most of its independent history, which have included extensive public ownership, regulation, red tape, and trade barriers. After the 1991 economic crisis, the central government launched economic liberalization. India has turned towards a more capitalist system and has emerged as one of the fastest growing large economies of the world. CURRENT INDIAN ECONOMY: The Indian economy has continuously recorded high growth rates and has become an attractive destination for investments. A. Indian economy is expected to grow at around 7.5 per cent B. The overall growth of gross domestic product (GDP) at factor cost at constant prices was 8.5 per cent in 2010-11 representing an increase from the revised growth of 8 per cent during 2009-10. C. Growth in the Index of Industrial Production (IIP) was 4.1 per cent during August 2011...
Words: 798 - Pages: 4
...Chapter -1 INTRODUCTION 1211536, 1211543 | A study on Indian Economy – Past , Present, Future 1 Introduction to area of study India has come a long way in terms of economic growth. There is broad consensus that the global centre of economic growth is moving to Asia, and as a large emerging nation with a growing middle class, India has captured the attention of developed economies looking for new investment and trade opportunities. The Softer indicators of economy – aspirations, health, and literacy – are all registering discernible improvements. Over two decades, India has implemented wide-ranging reforms that opened up the economy, dismantled the old licensing system and introduced competition into a number of sectors that had previously been dominated by public monopolies. Now, we live in a generation of relative abundance. While for the Western world it is going to be a demographic winter, we in India with some effort should be reaping a demo- graphic dividend. It is an India full of goodies –better consumption and lifestyle are in attendance all around. From the past two decades, we saw the twists in its growth and also twist in political atmosphere. With 27 per cent of the economy stagnant, it is no surprise that overall growth in India has slipped below 6 per cent. We are referring to the industrial sector, which has recorded an insipid 0.4 per cent growth in the first five months of this fiscal year beginning April 2013. It needs no emphasis that without a turnaround...
Words: 10285 - Pages: 42
...IMPACT OF GLOBALISATION ON INDIAN ECONOMY POST 1991 Globalization (or globalization) depicts a process by which local economies, social orders, and societies have turned out to be incorporated through a worldwide system of correspondence, transportation, and exchange. Globalization for the most part implies coordinating economy of our country with the world economy. The monetary changes started have dramatically affected the general development of the economy. It likewise proclaimed the mix of the Indian economy into the worldwide economy. The Indian economy was in real emergency in 1991 when outside money saves went down to $1 billion. Globalization had its effect on different areas including Agricultural, Industrial, Financial, Health segment...
Words: 1088 - Pages: 5
...IMPACTS OF GLOBALIZATION ON INDIAN ECONOMY INTRODUCTION TO GLOBALIZATION: Globalization has many meanings depending on the context and on the person who is talking about. It refers to the increasing global relationships of culture, people and economic activity. Guy Brainbant: says that the process of globalisation not only includes opening up of world trade, development of advanced means of communication, internationalisation of financial markets, growing importance of MNC’s, population migrations and more generally increased mobility of persons, goods, capital, data and ideas but also infections, diseases and pollution. The term globalization refers to the integration of economies of the world through uninhibited trade and financial flows, as also through mutual exchange of technology and knowledge. Ideally, it also contains free inter-country movement of labour. The United Nations Economic and Social Commission for Western Asia defines globalization as: "a widely-used term that can be defined in a number of different ways. When used in an economic context, it refers to the reduction and removal of barriers between national borders in order to facilitate the flow of goods, capital, services and labour... although considerable barriers remain to the flow of labour... Globalization is not a new phenomenon. It began towards the end of the nineteenth century, but it slowed down during the period from the start of the first World War until the third quarter of the twentieth...
Words: 1807 - Pages: 8
...Impact of globalization on Indian economy- An overview By: Tanveer Malik Introduction Indian economy had experienced major policy changes in early 1990s. The new economic reform, popularly known as, Liberalization, Privatization and Globalization (LPG model) aimed at making the Indian economy as fastest growing economy and globally competitive. The series of reforms undertaken with respect to industrial sector, trade as well as financial sector aimed at making the economy more efficient. With the onset of reforms to liberalize the Indian economy in July of 1991, a new chapter has dawned for India and her billion plus population. This period of economic transition has had a tremendous impact on the overall economic development of almost all major sectors of the economy, and its effects over the last decade can hardly be overlooked. Besides, it also marks the advent of the real integration of the Indian economy into the global economy. This era of reforms has also ushered in a remarkable change in the Indian mindset, as it deviates from the traditional values held since Independence in 1947, such as „self reliance” and socialistic policies of economic development, which mainly due to the inward looking restrictive form of governance, resulted in the isolation, overall backwardness and inefficiency of the economy, amongst a host of other problems. This, despite the fact that India has always had the potential to be on the fast track to prosperity. Now that India is in the process...
Words: 4444 - Pages: 18
...rP os t 9 -7 1 2 -0 3 8 REV: MARCH 12, 2014 LAKSHMI IYER RICHARD H. K. VIETOR India 2014: The Challenges of Governance op yo Introduction In January 2014, India’s government faced significant economic and social challenges. Economic growth rates had slowed from 10.5% in 2010 to only 4.9% in 2013. Inflation remained stubbornly high at 10.1%, despite sustained interest rates of around 10%, and the rupee/dollar exchange rate depreciated from 45 rupees in March 2011 to 62 rupees in December 2013. tC The ruling Congress Party faced worsening political obstacles as well. After the 2009 elections, the government had found it very difficult to enact substantive new legislation, owing to gridlock caused by opposition political parties and the Congress Party’s own coalition partners. A decision to allow foreign investment in retail megastores had been put on hold following objections by the Trinamool Congress, a key political ally.1 In September 2012, legislation was passed to allow foreign investment in multi-brand retail stores in states which agreed to implement the decision. 2 After making more than 100 amendments to satisfy diverse stakeholders, a new Land Act was passed in August 2013 to enable the state to acquire land for industrial growth more efficiently, with increased compensation for landowners.3 No Over the past few years, a series of high-profile corruption scandals had resulted in the resignation of several cabinet ministers and state chief ministers. These scandals...
Words: 15079 - Pages: 61
...HI FRIENDS I fully support FDI in retail because there many reasons behind it such as 1. our Indain farmers will get more price for their agricultural production as there wouldn't be any middle man 2. it will generate a huge employment in our economy as like Mcd n KFC generated. 3. FDI in retail leads to the proper connectivity of roads in rural areas as have to develop transportation facility for carrying goods. 4.as competition will increase in the market so it leads the enhance in quality of the product and decrease in price. 5.There will be a huge inflow of foreign currency, which leads to strength our rupee value against foreign currency. 6.Less waste of food grains as foreign investors will make new tech warehouse's in the many part of the country. 7.Overall economic development and a common has has to spend less on vegetable's so their saving will also increase. friends many people talk about that what will happen to our middle man ? it doesn't mean that they will completely eliminate from the market,no it will never happened because wall-mart will never open there store in semi urban areas or in a small town and 70% of our people live in rural area's so our middle man will have scope. and every body doesn't go to such stores to buy vegetables and only a few rich people prefer to go. we can compare other sector also like telecom sector, in era of 1990's we had to pay Rs.3 per call per mint and see the difference now after allowing FDI...
Words: 294 - Pages: 2
...structure of the economy and ideas of the time. Generally, in more developed economies, role of the state in managing the economic affairs of the society is less. A society where the state has relatively small role to play in the economic affairs of the people is described as “liberal”. Societies with pervasive state presence in economic activities are socialist systems. Economic liberalization has many meanings. In its widest sense, it stands for virtual withdrawal of the state from economic activities. However in limited sense, it means the withdrawal of direct discretionary controls by the government in favor of market forces. Economic liberalization, in the nature of changing the nature and extent of state intervention in economic activities in India, has been attempted frequently in the past. The one initiated in 1991 has been the most far reaching and irreversible. Mixed Economy System in India Independent India adopted the mixed economy model to expedite the economic growth and social development. Such a system assigns appropriate roles to both the state and the market mechanism to achieve the objective of “equitable economic growth” i.e. rapid economic growth with social justice. India learning from the experiences of the Capitalist countries like the USA, UK and Socialist countries like the former USSR decided to take a middle path combining better features of both the systems. This was logical given the backwardness of the Indian economy, low level of...
Words: 507 - Pages: 3
...Concept of Free Market Economy with focus to Indian Economy and options for Bangladesh 1 1.0 INTRODUCTION Free market economy has become the only economic system dominating the world after the collapse of socialism in Soviet Union and other East European countries. Today, the application of market mechanism is widespread all over the world. The free flow of capital and goods throughout the world has made the world like a single village. Success of countries practicing free market is only evident with the growth of the USA, the Scandinavian countries, Germany and France as major world powers. Countries such as India and China, by allowing liberalization of its trade to some extent and practicing free market principles brought about more efficiency among its domestic producers and increased its growth rate markedly. Free market existing with the doctrines of Socialism like limited regulation of prices by the government to protect the poor can be an ideal situation for developing countries like India, China and South East Asian countries to attain growth and prosperity. 2.0 FREE MARKET ECONOMY The term free market economy primarily means a system where the buyers and sellers are solely responsible for the choices they make. In a way, free market gives the absolute power to prices to determine the allocation and distribution of goods and services. These prices, in turn, are fixed by the forces of supply and demand of a respective commodity. In cases of demand falling short...
Words: 3081 - Pages: 13
...The economy of India is the eleventh largest economy in the world by nominal GDP[1] and the fourth largest by purchasing power parity (PPP).[9] Following strong economic reforms from the socialist inspired economy of a post-independence Indian nation, the country began to develop a fast-paced economic growth, as free market principles were initiated in 1990 for international competition and foreign investment.[10] India is an emerging economic power with a very large pool of human and natural resources, and a growing large pool of skilled professionals. According to the book 'Contours of the World Economy, 1-2030AD' by Angus Maddison, India was the largest economy from the year 1 AD until the colonial period whereupon it was taken over by other countries such as China and the U.K. Economists predict that by 2020,[11] India will be among the leading economies of the world. According to the BRIC report, published by Goldman Sachs, India will be the second largest economy after China by 2043. India was under social democratic-based policies from 1947 to 1991. The economy was characterised by extensive regulation, protectionism, public ownership, pervasive corruption and slow growth.[12][13][14][15] Since 1991, continuing economic liberalisation has moved the country toward a market-based economy.[13][14] A revival of economic reforms and better economic policy in first decade of the 21st century accelerated India's economic growth rate. In recent years, Indian cities have continued...
Words: 559 - Pages: 3
...Growth and Performance of the Indian Economy By: AKANKSHA SHUKLA FT163009 GOVIND NARAYAN DUBEY FT163025 KIRUTHIKA S FT163043 NUPUR BHARARA FT163063 SANJAY NARANJI THANKI FT163082 TEJAS PRAMOD MADAN FT163098 SHABARISH NAMA RADHAKONAIAH FT164080 VARUN M FT164096 As per the recent report by the World Bank, India is all set to be the world’s fastest growing economy by 2015 ahead of China. India’s GDP is forecasted to be 7.5% through 2015 and is forecasted to be 8% in FY16. This improvement can be attributed to the new government’s strong reforms RBI’s inflation focus and falling global commodity prices. GDP : 65445.9 billion Rate of growth (GDP) FY15 | 7.4% | Status of Employment | 29650 billion | India Industrial Production | 4.1% | Agricultural Sector | 18% of GDP ; 4152.28 Billion INR | Services Sector | 65% of GDP | Investment and Consumption expenditure | | Current account Deficit | 0.2% of GDP ; 1.3 billion USD | Fiscal Deficit | 3.9% of GDP ; 1.27 lakh crore INR | Interest Rate | 7.25 % | Net Exports | 22146.75 Million USD | Foreign Exchange Reserve | 355460 Billion USD | Credit Off Take | 10.19% ; Rs 65,24,257 crore | Rate of Growth of States Gross State Domestic Product at current prices State Gross Domestic product at Current Prices It can be seen that Maharashtra contributes the highest among the 33 Indian states and union territories.. The Top 5 States share about 44% of India’s total economy. Eight states of North East...
Words: 1250 - Pages: 5
...Current state of Indian Economy August 2010 Federation of Indian Chambers of Commerce and Industry New Delhi Highlights – August 2010 July 2010 overall industrial growth numbers continued on the path of buoyancy. The high growth in the overall industrial output was solely on account of the heavyweight manufacturing sector. The other two sectors also remained in the positive zone in July and during the period from April – July 2010. However, the growth in output was lower than the growth seen in the corresponding period of previous year (FY10). Going by the use-based classification we see a huge rise in the production of capital goods which rose by 63 percent in July 2010 as compared to the rise of 1.7 percent in the same month of previous year. The growth in the consumer goods output swelled only on account the durables segment. The industry segments that registered a sizable increase in output were food products, cotton textiles, jute products, paper products , rubber and plastic products, petroleum , coal and tar, metal products and among the capital goods were the machinery and equipment , transport equipment and parts. The growth momentum of the six core infrastructure industries was maintained with the increase in petroleum products ( crude petroleum and petroleum refinery). Production in coal and power remained positive, however, the growth numbers were not higher than the previous year. The two segments that were found in the negative territory were cement and finished...
Words: 5422 - Pages: 22
...Indian economy up to 1947: * Low use of technology * Dependent on imports * Exporter or raw materials, mainly to England * Completely destroyed traditional industries * Nascent stages of development of a small group of capitalists Debate on type of economic system to be adopted: * Capitalist v/s socialist * Bombay plan of 1944 * USA v/s USSR * Prevailing socio economic conditions Beginning of FYPs * Borrowed the concept from USSR * Tweaked it according to prevailing situations * Nehru Mahalanobis model * Emphasis on self reliance, PSUs, and vibrant SMEs * Trickledown effect and strong basic industries * Criticism Some important events: * 1948- Pakistan war * 1962- China war * 1965- Pakistan war * 1971- Liberation of Bangladesh * 1970s- oil and energy crises * 1975- Emergency * 1991- BOP crisis From 1947-1979: * First FYP 1951-1956- emphasis on Agriculture * Second FYP 1956-1961- emphasis on industry * Third FYP 1961- 1966 – balance between both * Three yearly plans from 1966-1969 * Nationalization of banks 1969 * Up to now most of the banks except SBI were owned by private individuals * 14 banks were nationalized. They had about 85 percent of the total deposits * Fourth FYP 1969-1974- emphasis on social justice * Whatever liberal measures initiated since independence were reversed * Recall the events discussed earlier *...
Words: 988 - Pages: 4
...managers were bleeding, many injured seriously. Awanish Kumar Dev, head of human relations, was dead. There are many lessons in the recent tragedy at the Maruti-Suzuki factory at Manesar in Gurgaon district. One of them is that labour trouble is not only a management’s or a union’s problem but a vital concern of the state. Haryana has not learned this lesson. It destroyed the vibrant industrial town of Faridabad more than a generation ago due to poor industrial relations. It is now bent on scaring industry away from Gurgaon as well. Last year’s unrest at Maruti resulted in Rs 2,500 crore loss. This is a shockingly high figure—half a billion dollars—for any company to lose anywhere in the world from industrial trouble. For Suzuki, whose Indian operation brings in half its global profit, it is appalling. For a Japanese company to be continuously in the news for labour unrest is extraordinary when Japan has taught teamwork and industrial harmony to the world. Suzuki should ask itself if it has the right persons in charge. The role of the state is less obvious. In the 1970s, Faridabad had an active municipal government, fertile agriculture, a direct railway line to Delhi, and a host of industries. Gurgaon at the time was a sleepy village with rocky soil and pitiable agriculture. It had no local government, no railway link and no industries. Compared to Faridabad, it was wilderness. Thirty years later Gurgaon has become the symbol of a rising India. Called...
Words: 725 - Pages: 3
...ou better be worried if you have plans to study abroad, or planning an overseas vacation. The rupee closed at 51.33 to a dollar on Friday, and fast galloping towards the all-time low of 52.17 it had touched in March 2009. A weaker rupee implies you end up paying more to buy dollars to pay for your fees and expenses. So, your study loans might go up. Likewise, an overseas holiday will cost more as the dollar has become expensive. A weaker rupee, on the other hand, would mean exporters’ earnings in rupee terms will go up. Close to its all-time low, the rupee has companies worried. And the prognosis isn’t bullish. Economists expect the rupee to fall further. The exchange rate of a currency, like most commodities, is determined by the laws of demand and supply. Foreign institutional investors are cashing out and diving into safer investment bets such as US government bonds. This is making dollars scarce and reducing demand for rupees. Concurrently, the spurt in crude oil prices has pushed up demand for dollars India’s import of crude oil. The RBI can intervene and prop up the rupee by selling dollars in the market, but economists do not expect the central bank to manage the rupee’s rate actively, unless it swings violently. “Given recent indications, I don’t think the RBI will actively intervene to arrest the rupee’s fall, unless there is extreme volatility in the currency market,” said NR Bhanumurthy, Professor of economics at Delhi-based think-tank National Institute of...
Words: 638 - Pages: 3
