2. INTRODUCTION
The indian economy , the third largest economy
in the world in terms of PURCHASING
POWER, is going to touch new height in coming
years. According to global investment bank by
2035 india would be 3RD largest . Economy of
the work just after US and CHINA. It will
grow to 60% of size of the US. Economy
3. HISTROY :The Histroy of india economy can be broadly divided
into three Phase:
Pre-Colonial
Colonial
Post Colonial
Pre- Colonial :- The economy histroy of india
since INDUS VALLEY civilization to 1700 AD can
be categorised under this phase. During this Phase
indian economy was very will developed. It has very
good trade relation with other parts of world. Before
the advent of the East India Company each village
4. Continue…..
in india was a relt sufficient entity and was
economically independent as all the economies
needs were fulfilled with in the village..
Colonial:- The arival of East India Company in
india caused a huge strain to the indian economy
and there was a two way depletion of resourcesThe british would buy raw materials from india
at cheaper rates and finished foods were sold
higher than normal price in indian market.
During this phase indias share of world income
declived from 22.3% to 38% in 1952
5. POST COLONIAL INDIAN ECONOMY:After india got independence from colonial rule in
1947, the process of rebuliding started various policies
and schemes were formulated. 1st 5 years plan came in
to implemention in 1952. there 5th year plan started by
indian government, focused on the needs of the indian
economy.
Indias Economy is bound for slower growth. In
recent months, indian government has introduced Pro
business economic reforms and outlined plans to
increase. Spending on capital investment and large
scale social programs. In the first three months of 2013
the GDP growth slowed to 4.8% and it is likely to go
down further due to weak Consuption , Capital,
investment & decline government spending.
6. SECTORS OF THE INDIAN ECONOMY
Primary Sector
Secondary Sector
Tertiary Sector
Other Sectors
•Organized Sector
•Unorganized Sector:
•Public Sector
•Private Sector
7. Primary Sector
The economic activity depends mainly on
exploitation of natural resources .
Agriculture and agriculture related activities,
forestry and fishing, mining, and extraction of oil
and gas.
9. Tertiary Sector
Involves providing intangible goods like
services , attention, advice, experience, and
discussion.
Financial services, management
consultancy, telephony and IT are good
examples of service sector.
11. What is External Trade ?
Exchange of capital, goods, and services across
international borders or territories.
In most countries it represents significant share of
gross domestic product (GDP).
12. Importance Of External Trade
•International trade is exchange of capital,
goods, and services across international
borders or territories. In most countries, it
represents a significant share of gross
domestic product (GDP)
13. International trade is the backbone of our modern,
commercial world, as producers in various nations
try to profit from an expanded market, rather than be
limited to selling within their own borders.
14. India Trade: Imports
India’s major imports comprise of crude oil machinery,
military products, fertilizers, chemicals, gems, antiques
and artworks. Imported goods are divided into the
following categories: Freely importable items: For these
items, no import license is required. They can be freely
imported by an individual or a firm. Canalized items:
These items can only be imported by public sector firms.
For example petroleum products fall under this category.
Prohibited items: Items such as unprocessed ivory, animal
rennet and tallow fat cannot be exported to India.
15. India Trade: Exports
Indian exports comprise mainly of engineering and
textile products, precious stones, petroleum
products, jewelry, sugar, steel chemicals, zinc and
leather products. Most of the exported goods are
exempt from export duties. India also exports
services to several countries, primarily to the US. In
fact, India is among the world’s largest exporters of
services related to information and communication
technology (ICT). It is also the key destination for
business process outsourcing (BPO).
16. Risks in international trade
Buyer insolvency; Non-acceptance; Credit
risk; Regulatory risk; Intervention; Political
risk; and War and other uncontrollable events.
In addition, international trade also faces the
risk of unfavorable exchange rate movements
17. Income and consumption
What is national income ?
National income measures the total value of
goods and services produced within the
economy over a period of time
National Income can be denoted in different ways
with different meaning attached to it.
18. Gross Domestic Product (GDP)
Gross National product (GNP)
Net National Product (NNP)
The GDP of India has grown from a merge 93.7 billion
rupees in 1950 to about 410006.4 billion rupees in
2006.
India's per capita income (nominal) is $ 1219, ranked
142nd in the world, while its per capita purchasing
power parity (PPP) of US $3,608 is ranked 129th
19. Strengths of INDIAN ECONOMY
India is well placed to benefit from globalization
and outsourcing
Demographics of India are favorable.
There is much scope for increases in
efficiency.
20. Problems faced in Indian Economy
Inflation.
Poor educational standard.
Poor Infrastructure.
Balance of payment deterioration
High level of debt
Large budget deficit
Rigid labour laws
21. OUR FINAL NOTE:
If these problems are solved then the future for
India looks bright, India might well become one
of the superpowers of the 21 st Century. IndiaA country with Potentials for ‘sustaining’
development!!
