Indian Economic growth

1. INDIAN
ECONOMIC
GROWTH

2. What is Economics?

3. Economics is the study of how people
choose to use resources.
Resources include the time and talent people
have available, the land, buildings,
equipment, and other tools on hand, and the
knowledge of how to combine them to
create useful products and services.

4. Indian Economy

5. The Economy of India is the seventh-
largest in the world by nominal GDP and
the third-largest by purchasing power
parity(PPP). The country is classified as
a newly industrialised country, one of the G-
20 major economies, a member of BRICS and
a developing economy with an average
growth rate of approximately 7% over the
last two decades.

6. Indian economy in
British era
1793–1947

7. The economic policies of the British Raj caused
a severe decline in
the handicrafts and handloom sectors, due to
reduced demand and dipping
employment. After the removal of international
restrictions, Indian trade expanded
substantially and over the long term showed
an upward trend. The result was a significant
transfer of capital from India to England, which,
due to the colonial policies of the British, led to
a massive drain of revenue rather than any
systematic effort at modernization of the
domestic economy

9. Pre-liberalization period
1947–1992

10. Indian economic policy after independence was influenced
by the colonial experience, which was seen by Indian
leaders as exploitative, Domestic policy tended towards
protectionism, with a strong emphasis on import
substitution industrialization, a large government-
run public sector, business regulation, and central
planning, while trade and foreign investment policies were
relatively liberal. Five-Year Plans of India resembled central
planning in the Soviet Union. Steel, mining, machine tools,
telecommunications, insurance, and power plants, among
other industries, were effectively nationalized in the mid-
1950s.

11. Post-liberalisation period
since 1991

12. The collapse of the Soviet Union, which was India's
major trading partner, and the Gulf War, which
caused a spike in oil prices, resulted in a major
balance-of-payments crisis for India, which found
itself facing the prospect of defaulting on its
loans. India asked for a $1.8 billion bailout loan from
the International Monetary Fund (IMF), which in
return demanded de-regulation.

14. Growth From 2010-15

15. Starting in 2012, India entered a period of more anaemic
growth, with growth slowing down to 5.6%.
• a plunging Indian rupee,
• a persistent high current account deficit
• slow industrial growth.
Hit by the U.S. Federal Reserve's decision to taper quantitative easing, foreign
investors had been rapidly pulling out money from India though this has now
reversed with the stock market at near all-time high and the current account
deficit narrowing substantially.
India started recovery in 2014-15 when the growth rate accelerated to 7.2%. In
2015, Indian went through a startup boom and manufacturing growth
skyrocketing due to which the growth in 2015-16 accelerated to 7.6%, which
means for the first time since 1990 India grew faster than China which
registered 6.9% growth in 2015. The economic growth is expected to be 7.7-
8.0% in 2016-17.In Mid 2015 during the global stock market rout, India also
witnessed a sharp fall in stock markets and the rupee weakened. It was
repeated again in January 2016.

16. Important Facts
and Figures

20. THE END