HS-201 Presentation 2

8/2/2019 HS-201 Presentation 2

1/26

4/14/12

HS 201

introducing

Economic Growth &Poverty


2/26

4/14/12

Low Per Capita IncomeLow Standard of LivingHigh PovertyInequal Income DistributionDominance ofAgricultureExistence of Rich ResourcesInadequate Capital Formation

Unemployment andUnderemploymentTechnological BackwardnessInfrastructural InadequaciesDualistic Econom

Features ofIndian Economy


3/26

Click to edit Master text styles

Second levelThird levelFourth levelFifth level

GDP Growth 2000 - 2012


4/26

4/14/12

GDP Growth during 2000-2012

SOURCE : WWW.


5/26

4/14/12

Economic sectors

These are the main factors dominating IndianEconomy

1Finance

2Industries

3Agriculture


6/26

Finance Sector

Involves money exchange

1


7/26

4/14/12

Finance Sector

Prime Minister Indira Gandhi nationalised 14 banks in 1969,followed by six others in 1980

Since then, the number of bank branches has increased from10,120 in 1969 to 1,15,910 in 2008

Currently, India has 88 scheduled commercial banks (SCBs) 28public sector banks, 29 private banks and 31 foreign bank

They have a combined network of over 53,000 branches and17,000 ATMs

The public sector banks hold over 75% of total assets of thebanking industry, with the private and foreign banks holding 18.2%and 6.5% respectively

The BSE Sensex is generally regarded as the most popular andprecise barometer of the Indian stock markets


8/26

2 Industrial Sector Involves the mobilization of assets in terms of products and

services


9/26

4/14/12

Industrial Sector

o

Industry accounts for 27.6% of the GDP and employ 17% of thetotal workforce

o one-third of the industrial labour force is engaged insimple household manufacturing

oIndia is 16th in the world in terms of nominal factory output

o Textile manufacturing is the second largest source for

employment after agriculture and accounts for 26% ofmanufacturing output

o Tirupur has gained universal recognition as the leading source ofhosiery, knitted garments, casual wear and sportswear


10/26

3 Agricultural Sector It covers the SOURCE and MAINSTAY of Indian Economy


11/26

4/14/12

Agricultural Sector

Agriculture is the mainstay of the Indian economy

It is the means of livelihood of almost two thirds of the work forcein the country

Agriculture accounts for approx 18% of India's GDP

Largest producer in the world of milk, cashew

nuts, coconuts, tea, ginger, turmeric and black pepper

World's largest cattle population

Second largest producer of wheat, rice, sugar, groundnut andinland fish

Third largest producer of tobacco

India accounts for 10% of the world fruit production with first rankin the production of banana and sapota


12/26

4/14/12

Quote Unquote -about Economic Growth

12

BRICReport,

GoldmanSachs

I have neverseen India sodynamic, vibrant

and full ofbusiness

opportunities.

- Dan Scheinman,Cisco System Inc. as

told to BusinessWeek, August 2005

We came to India forthe costs, stayed forthe quality and arenow investing for

innovation.

John RedwoodEconomic

Competitiveness

Policy Group, UK

India is now truly a

land ofopportunity.

Jack WelchGeneralElectric

India is adeveloped

country as far asintellectualcapital is

concerned.

Peter LoescherPresident and

Chief ExecutiveSiemens

By 2032, India willbe among the threelargest economies

in the world.

TravynRhall,

ACNielsen

The Indian market hastwo core advantages - an

increasing presence ofmultinationals and an

upswing in the ITexports.

Craig BarrettIntel

Corporation

India has evolvedinto one of theworld's leading

technologycenters.

Mr Paul de VoijsManaging Director

Volvo Car India

India is a veryexciting market and

the luxury carsegment is growingexponentially here.


13/26

4/14/12

India is the second fastest growing major economy with a 9.2% increase inGDP per year

India is already the third largest economy in the world at PPP

India has seen a huge amount of foreign direct investment in the country,totaling 67.72 billion dollars and is said to be one of the preferred optionsfor FDI

Indias poverty level is decreasing by 10% annually

Indian companies have gone on a buying rampage, with Tata Steelacquiring Corus, Mittal buying Arcelor and Tata looking set to buy Jaguarand Land Rover from Ford.

Every year Indias middle class is increased by 40,000,000 new members

which shows that the wealth is truly entering societyThe Bombay Stock Exchanges value has been consistently rising, currentlyworth 1.61 trillion dollars, the largest in South East Asia.

Unemployment has dropped by 2% annually, and illiteracy and mortalityrates have also been falling, indicating that India is not only growing butdeveloping too.

SomeStatistics


14/26

4/14/12

ReallyShining

Is

India


15/26

4/14/12

Poverty 345 Million Indians live under the poverty

line. This means that one in three Indianslive on less than twenty rupees per day.

7.2% of all Indians are unemployed Indiacomes in at 94th in terms of employment.

Using the GINI coefficient which is theonly reliable method of calculating

inequality India scores 0.368 were 0 isperfect equality and 1 is perfectinequality, putting India in the bottom 50of all ranked nations in the world.


16/26

4/14/12

Poverty is hunger.

Poverty has no shelter.

Poverty is being sick and

not able to see a Doctor. Poverty is Powerlessness

Poverty is not havingaccess to clean water.

Poverty is surviving one dayat a time.

Poverty is not having the

security of job.

What is

POVERTY?


17/26

Click to edit Master text styles

Second levelThird levelFourth levelFifth level

Poverty Statistics According to a recent Indian government

committee constituted to estimate poverty,

nearly 38% of Indias population (380 million) ispoor. This report is based on new methodologyand the figure is 10% higher than the presentpoverty estimate of 28.5%.

Since 1972 poverty has been defined on basis ofthe money required to buy food worth 2100calories in urban areas and 2400 calories in ruralareas. In June this year a government committeeheaded by NC Saxena estimated 50% Indians

were poor as against Planning Commissions

2006 figure of 28.5%.


18/26

4/14/12

POVERTY

a) Poor Infrastructure

a) Balance of Payments

deterioration

a) High Levels of Debt

a) Large Budget Deficit

a) Rigid Labour Laws


19/26

4/14/12

Agriculture is still the biggest employer in India, with 54% of the Populationengaged in Farming.

43 % of all Indian land is used in agriculture, but it only contributes 18% of thenations GDP

Many farmers are subsistence farmers. According to the WHO, 61% of allfarmers cultivate less than 0.4 hectares only enough to feed their ownfamily, with little left over to sell.


20/26

4/14/12

Agricultural Prices fluctuatewildly and often farmers areforced into debt, produced byextortionist interest rateswhich are unregulated by the

government. They entercycles of debt so the moneythey earn is never their own.Pressed by either famine andno crops, or a bumper cropand collapsing prices, farmersare often driven to suicide.

Since 1997 when the statisticswere first recorded 25,000farmers have taken their livesin India.

In the Vidarbha District ofMaharashtra 1920 farmerskilled themselves betweenJanuary and August of 2007.

This woman is looking for her brotherwho left a suicide note at her house,they cannot find his body.

In one district of Maharashtra alone, afarmer kills himself every eight hours.


21/26

4/14/12

Healthcare: Our Fundamental Right

Our life expectancy is 68 years, makingour life expectancy the 139nth out of 172countries.

A growing threat: 5.7 million Indians haveAIDS or HIV out of which 40 % arewomen

We only one hospital bed for every 74patients who need one.

We have only one doctor for every 1,230people.

Despite these statistics, the IndianGovernment still spends more on defencethan it does on health.


22/26

4/14/12

Education

Our literacy rate is 61%making us the 145th in theWorld, just above war-tornSudan and just belowgenocidal Rwanda.

Literacy is defined as Theability to sign ones nameso complete literacy islikely to be even less.

Guns are moreimportant than books:2.9% of GDP is spendon defence compared

to 2.6% on education.Is it guns oreducation that willreally make Indiashine?


23/26

4/14/12

So the question still remains, is India really having aEconomic Growth or it is hiding the poverty reality???

the TRUTH is :

Even after more than 50 years of Independence India still has theworld's largest number ofpoor people in a single country. Of itsnearly 1 billion inhabitants, an estimated 260.3 million are belowthe poverty line, of which 193.2 million are in the rural areas and67.1 million are in urban areas. More than 75% of poor people

reside in villages. Poverty level is not uniform across India. Thepoverty level is below 10% in states like Delhi, Goa, and Punjabetc whereas it is below 50% in Bihar (43) and Orissa (47). It isbetween 30-40% in Northeastern states of Assam, Tripura, andMehgalaya and in Southern states of TamilNadu and UttarPradesh.

So the QUESTION


24/26

4/14/12

The Gradual Approach It is based on the belief that the growth ofindustry is going to begin by expansion of other sectors rather

deliberate expansion of the Industrial Sector by the Government.

The Big Push Approach It is based on the game race; wherecertain minimum Investment, Purchasing Power or Market Size (push)is necessary.

Approach for EconomicBalance


25/26

4/14/12

v Lokesh Chandra Basuv Anshul Garg

TeamComputer Science and Engineering

Indian Institute of Technology,Roorkee


26/26

4/14/12

Whats YourMessage?Thank You!

Documents

HS-201 Presentation 2