...increasing. The 10th Plan average was 5.1 per cent of GDP. It is expected to be 7.1 per cent in the 11th Plan and estimated to go up to 9.7 per cent in the 12th Plan. In the early 1990s, we used to envy China at 9 per cent, saying can we ever match China when we were doing 3 per cent. This is tremendous good news, where across shades of different political dispensation we have had a silent movement of the tectonic plates of India's infrastructure geoplates. To achieve this in the kind of polity and democracy we are, in a space of 15 years, has been a major structural shift. Second, private-public-partnership is above expectations. During the 10th Plan, 25 per cent of our infrastructure was through PPP. The 10th Plan was largely driven by telecom and the early power projects. In the 11th Plan, the target was 30 per cent, but we achieved 37 per cent and in the 12th Plan there is reasonable confidence that we will do 50 per cent. This is a major change in India's infrastructure development. In the 10th Plan, the investment was $220 billion, of which 25 per cent came through PPP. In the 11th Plan, it is almost $480-500 billion of that 37 per cent, and 50 per cent of $1,000 billion in the 12th Plan. The third is we constantly debunk the Planning Commission. India is one of the few countries that officially publishes a Plan and the system is willing to be tested and criticised against its performance or non-performance. When the Planning Commission announced the 11th Plan figures, there was...
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...Introduction on 5 yr plan: The economy of India is based in part on planning through its five-year plans, which are developed, executed and monitored by the Planning Commission. The tenth plan completed its term in March 2007 and the eleventh plan is currently underway First five year plan (1951- 1956) The first Indian Prime Minister, Jawaharlal Nehru presented the first five-year plan to the Parliament of India on December 8, 1951.This plan was based on the Harrod-Domar model. The plan addressed, mainly, the agrarian sector, including investments in dams and irrigation. The agricultural sector was hit hardest by the partition of India and needed urgent attention.[3] The total planned budget of 2069 crore was allocated to seven broad areas: irrigation and energy (27.2 percent), agriculture and community development (17.4 percent), transport and communications (24 percent), industry (8.4 percent), social services (16.64 percent), land rehabilitation (4.1 percent), and for other sectors and services (2.5 percent).[4] The most important feature of this phase was active role of state in all economic sectors. Such a role was justified at that time because immediately after independence, India was facing basic problems—deficiency of capital and low capacity to save. The target growth rate was 2.1% annual gross domestic product (GDP) growth; the achieved growth rate was 3.6% Second five year plan (1956-1961) The second five-year plan focused on industry, especially heavy industry...
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...Economic Reforms in Asia: The Indian Case Study The Asian economy has seen a rapid rise over the past decade with countries such as China, India and South Korea making major headways. China, being the leader of the group, has been largely tipped by many economists to overtake the US as the world’s superpower by 2025. Asian GDP Performance (1997-2005) Source: http://www.treasury.gov.au The success of these nations came on the back of major economic reforms which transformed these sleeping giants into what it is today. China went through a major economic reform in 1979 and soon thereafter success followed. India, followed the same path, but much later than China, and it was not until the turn on the 1990s that India went on the path of economic liberalisation. This paper will focus on the economic reforms that took place in India and its impact on the country in terms of trade and macroeconomics growth and the birth of new economy. A section of this paper will also be comparing the growth of India in comparison to its Chinese counterparts as well as discuss reasoning behind critics who believe liberalisation was not the main contributor to the growth India is achieving today. Pre-Reform Period Post independence, India saw the need to move from an agrarian economy to an industrial one and as such building its competency in crucial sectors of the economy was important. The role of government therefore included economic management...
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...infrastructure. The report also criticized the transport, ICT and energy infrastructure labelling it as “largely insufficient and ill adapted to the needs of business”. Market Size: The Indian power sector has an investment potential of $US 250billion in the next 4-5 years, providing immense opportunities in power generation, distribution, transmission and equipment. The Indian railways have had an increase of 12.57% in revenues from last year. FDI received in construction development sector from April 2000 to January 2015 stood at US$ 24,028.19 million. The number of export and import containers moving through major ports in India expanded 7.34% year over year from April to October 2014. Government Estimation and Plans: Sustained increase in infrastructure is expected to be one of the crucial factors for sustaining strong growth in the economy. Infrastructure investment is expected to surge from 8.9% of GDP in FY15 to 12.1% of GDP in FY20. Construction of roads and bridges will account for the largest share in the total infrastructure investments during the next five years. The government has estimated that $1 trillion of investments will be required for developing India’s infrastructure in the 12th plan period. The priorities include three airports, two ports, an elevated rail corridor in Mumbai and almost 6000 miles...
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...Contents 1. Introduction 3 2. India’s Current Power Scenario 3 3. Solar Energy Potential 3 4. State Participation in Solar Energy 4 4.1 Brief about JNNSM 4 4.2 Solar Installations and Gadgets 5 5. Technology Aspect 6 5.1 Issues with Development of Grid Interactive Technology 7 6. Finance 8 7. Risks and Challenges 9 8. Way Ahead 9 References: 10 1. 2. Introduction Energy is the prime factor for the generation of wealth and a significant factor for economic development of a country. Efficient and regular supply of energy is also critical for the economic growth. The limited fossil resources and the environmental problems associated with them have emphasized the need for new sustainable energy supply options. Development of newer energy sources thus acquires importance. The challenge is to ensure adequate supply of energy at the least possible cost. Another important aspect is to provide clean and convenient energy critical for the well-being of the poor, even when they cannot fully pay for it. Solar thermal power generation systems also known as Solar Thermal Electricity (STE) generating systems are emerging renewable energy technologies that can be developed as viable option for electricity generation in the future. This paper discusses the various options, their status and opportunities and challenges in developing solar energy in the context of India. 3. India’s Current Power Scenario India’s current electricity installed capacity...
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...Growth – Recent and Future 5 5. Transmission and Distribution – 6 5.1 National Power Grid 7 5.2 Losses in T & D 7 5.3 Measures that can be taken to reduce losses are: 8 5.3.1 For Technical losses: 8 5.3.2 For Commercial losses: 8 6. India’s energy mix – Future investment required 8 7. Environmental issues 9 8. Sources of power 9 8.1 Coal 9 8.2 Natural Gas 10 8.3 Hydro power 10 8.4 Nuclear sources of power 10 8.5 Renewable sources of power 11 8.5.1 Solar power 11 8.5.2 Wind power 11 8.5.3 Biomass power 11 9. Regulatory changes 12 10. Disinvestment & consolidation 12 11. Challenges: 13 Appendix: 14 Appendix I 14 Appendix II 14 Appendix III 15 Appendix IV 16 Appendix V 16 Appendix VI 16 Appendix VII 17 References: 18 Executive Summary Availability of power is one of the important ingredients for industrial growth. It is an important infrastructure facility without which any industrial activity cannot be thought of in modern times. In the report, the main parameter used is the increase in the demand of power in India. Assuming a growth of 8%, the projected energy demand will be about 3600 billion kWh, almost 5 times the current demand. Based on the demand growth and the energy mix proposed in the next five year plan and assuming private sector participation of 40%, it is found that a capital of Rs 2 lakh crores needs to be raised through capital and money markets by private sector in India. An equal amount of money needs to be invested for the transmission...
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............. 10 The ecosystem of education cities will mature in India ......................................................... 13 The focus on delivering quality education will only be aggravated in India .......................... 13 The industry will present increased opportunities of acquisition & alliances in the future .................................................................................................................14 CONCLUSION APPENDIX ...................................................................................................................... 16 ...................................................................................................................... 17 3. 4. EDUCATION SECTOR OVERVIEW India's GDP has grown at an...
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...Introduction India’s textiles and clothing industry is one of the mainstays of the national economy. It is also one of the largest contributing sectors of India’s exports worldwide. The report of the Working Group constituted by the Planning Commission on boosting India’s manufacturing exports during 12th Five Year Plan (2012-17), envisages India’s exports of Textiles and Clothing at USD 64.41 billion by the end of March, 2017. The textiles industry accounts for 14% of industrial production, which is 4% of GDP; employs 45 million people and accounts for nearly 11% share of the country’s total exports basket. 2. Milestones i) Exports of textiles and clothing products from India have increased steadily over the last few years, particularly after 2004 when textiles exports quota stood discontinued. ii) India’s Textiles & Clothing (T&C) exports registered a robust growth of 25% in 2005-06, recording a growth of US$ 3.5 billion over 2004-05 in value terms thereby reaching a level of US$ 17.52 billion and the growth continued in 2006-07 with T&C exports of US$19.15 billion recording a increase of 9.28% over the previous year and reached USD 22.15 billion in 2007-08 denoting an increase of 15.7% but declined by over 5% in 2008-09. Exports of Textiles & Clothing grew from USD 21.22 billion in 2008-09 to USD 22.41 billion in 2009-10 and has touched USD 27.47 billion in 2010-11. In the financial year 2011-12(P), exports...
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...Page |1 CRISIL Young Thought Leader 2011 INDIA’S INFRASTRUCTURE – A BOON OR A BANE Shantanu Kumar Final Year, IRMA, Ahmedabad Page |2 Executive Summary “Infrastructure” has almost been a go-to word for anyone who is discussing about the ways of sustaining India’s economic growth, and with good reason. A casual look at the growth figures of the individual states shows the existence of a direct relationship between the quality of infrastructure and the performance of the state. The states with the best infrastructure attract businesses which creates employment which in turn helps their economy grow. This paper looks at the current scenario in some of the most important sectors and tries to compare it with countries which are widely known to be on the same economic trajectory, viz. Brazil, Russia, China and Mexico. The paper finds that although the progress has been slow, the government has made an attempt to kick start the investment in infrastructure either itself as in creation and maintenance of schools under “Sarva Shiksha Abhiyan” or through the PPP model as done in several highway projects. The issues arising due to poor infrastructure set India’s annual GDP growth back by as much as 1.5% - 2%. This paper shows that the government funding has remained almost constant in most sectors and their increase is unlikely owing to the high fiscal deficit. Hence it is the private investment which will have to fund the infrastructure projects. The government of India...
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...Demand Side Management Working Group on Power for 12 Plan th Chapter 5 DEMAND SIDE MANAGEMENT ENERGY EFFICIENCY & ENERGY CONSERVATION 5.0 INTRODUCTION Improving the efficiency with which energy is used to provide economic services meets the dual objectives of promoting sustainable development and of making the economy competitive. Energy Efficiency & Conservation has also assumed enhanced importance with a view to conserve depleting energy resources. Over the past one decade energy efficiency in India has been increasing at a good trot, and energy intensity declined by about 20-25%. Yet there are places where energy efficiency opportunities continue to exist largely because of a range of market failures, information, risks and split incentives. This has led the Government of India through the Energy Conservation Act and the Bureau of Energy Efficiency to launch several programs. The Energy Conservation Act (2001) is the most important multi-sectoral legislation in India and is intended to promote efficient use of energy in India. The Act specifies energy consumption standards for equipment and appliances, establishes and prescribes energy consumption norms and standards for designated consumers, prescribes energy conservation building code for efficient use of energy in commercial buildings, and establishes a compliance mechanism for energy consumption norms and standards .Large scale energy savings can be realized through strengthening of the existing policies, schemes...
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...David G Williams #15332730 Economics Assignment 2 The Indian Economy Executive Summary The Indian Economy is currently experiencing strong growth adverse to difficulties witnessed after the global financial crisis. Current GDP levels at approximately $1.5 US Dollars as the fifth largest economy in the world. The aim of this paper is to address macroeconomic conditions that may affect India’s ability to maintain high levels of growth. Monetary and Fiscal policy have been analysed and recommendations made to manage inflation, employment and debt. Tax increases on higher earners and other possible consumption taxes would slow aggregate demand but allow government to increase its spending. Inflationary pressures are as a result of the economy not being able to meet supply requirements and investment in agricultural practise and increase in the manufacturing sector should assist in reducing inflation which is 11.7%. This will also have positive effects on employment which will allow India to reach higher levels of GDP in the long term. Other areas of long term planning will be for improved and widespread access to education and move people into the services sector which currently employs only 34% of people compared with 52% in agriculture and 14% in manufacturing. In the short term the migration of workers from agriculture into manufacturing is a possibility. Diversion of higher taxes to reduce debt levels sitting at 55.9%...
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...growth rates and has become an attractive destination for investments. A. Indian economy is expected to grow at around 7.5 per cent B. The overall growth of gross domestic product (GDP) at factor cost at constant prices was 8.5 per cent in 2010-11 representing an increase from the revised growth of 8 per cent during 2009-10. C. Growth in the Index of Industrial Production (IIP) was 4.1 per cent during August 2011. D. The eight core Infrastructure industries grew by 3.5 per cent in August 2011 and increased by 5.3 per cent in april-august2011- 2012. E. Exports and imports in terms of US dollar increased by 44.3 per cent 41.8 per cent respectively, during August 2011. F. India has received US$ 48 billion FDI in the last two years. G.India has entered the club of top 20 exporters of goods and...
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...the crude prices remaining at elevated level. The rupee has slipped to 50 against the dollar. Here’s why The rupee slumped to 50 against the dollar level for the first time since May 2009 on Friday on speculation that slowing economic growth and faster inflation will hamper foreign investment. The currency has declined 10.8% this year, the most among Asia’s 10 most-traded currencies. Sudden surge in India's exports to Bahamas raises doubts An amazing surge in India's exports to the Bahamas has stoked the lingering suspicion that a slice of the country's trades is sham transactions done to bring back money stashed in secret accounts with offshore banks. In just two years, exports to the Bahamas — best known as a tax haven — have shot up from $2.2 million in 200809 to $2.2 billion in 2010-11. 9% growth target in 12th Plan gets NDC approval Paving the way for formulating the 12th Five-Year Plan (2012-13 to 2016-17) document, the National Development Council (NDC) meeting, which saw states lambasting the Centre for its various failures and the Prime Minister asking them to shun negativism, on Saturday approved the approach paper to the Plan that pegs economic growth target at an average annual rate of nine per cent. Utopia called digitisation The ordinance to push digitisation of cable in India, approved by a Cabinet committee last week, is not going to...
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...Indian Manufacturing Industry India’s manufacturing sector is on a high growth trajectory. As targeted by the National Manufacturing Competitiveness Council (NMCC), it is set to contribute 25% to the GDP by 2025 compared to the current share of nearly 16 %. Notably, the sector contributed 66% to the nation’s exports and has been strengthening at CAGR of 20% in the last five years. The competitiveness that the sector commands in the global arena is driving its growth. India ranks second in the world as per the 2010 Global Manufacturing Competitiveness Index (GMCI) prepared by the US Council on Competitiveness, and Deloitte. As per the same source, India would maintain its second ranked and continue to dominate the global manufacturing even after 5 years. India has set benchmarks in the international market with respect to quality in manufacturing. The country is currently second only to Japan in hosting companies awarded for quality excellence. The India advantage is favouring growth in the sector as international players such as Hyundai, Nokia, Samsung and Airbus are focussing on setting up manufacturing facilities in the country. Interestingly, India’s growth in the manufacturing sector overshadows other BRIC members. This can be associated to the strength in the Indian Domestic market. In a major boost to the 'Make in India' initiative, the Government has received confirmation from top technology firms such as GE, Bosch, Tejas and Panasonic regarding their decision to invest...
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...AGRAWAL 1226113152 SUMMARY India’s food processing sector is small and its share in exports of processed food in world trade has remained at about 1.5 percent or $3.2 billion. Food processing industry in India is increasingly seen as a potential source for driving the rural economy as it brings about synergy between the consumer, industry and agriculture. productivity with slow adoption of technology. On the Infrastructure front, we have supply chain and wastage related problems and low levels of value addition etc. The other issues of concern, holding this sector back are impaired access to credit,inconsistency in state and central polices,which requires , low standards and lack of adequate manpower . White Revolution has benefited the rural areas of our country considerably, the revolution may not be sustained beyond a point because of the lack of purchasing power of the poor Indians The Government of India has allowed 100 per cent FDI under the automatic route in the food processing sector and taken various other measures to improve and expand the industry. INTRODUCTION The Indian food processing industry stands at $135 billion and is estimated to grow with a CAGR of 10 per cent to reach $200 billion by 2015. The food processing industry contributed 7% to India‘s GDP. The industry employs around 13 million workers directly and about 35 million indirectly. India is the world’s second...
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