1. 1. ECONOMIC STRUCTURE OF INDIA
2. 2. INDIAN ECONOMY
3. 3. INTRODUCTION: INDIAN ECONOMY THE THIRD LARGEST ECONOMY IN THE WORLD. THE RBI HAS EASED THE NORMS FOR BANKS BORROWING THROUGH FOREIGN CURRENCY. THE SEBI OF INDIA HAS ALLOWED FII TO GET DIRECTLY IN THE DEBT MARKET,
4. 4. NATURE OF INDIAN ECONOMY: LOW PER CAPITA INCOME. DISPARITIES IN INCOME DISTRIBUTION. DOMINANCE OF AGRICULTURE. OVER POPULATION. UNBALANCED ECONOMIC DEVELOPMENT. LACK OF CAPITAL. LACK OF INDUSTRIALIZATION. OPERATION OF ECONOMIC VICIOUS CIRCLES. MARKET IMPERFECTIONS LIMITED AVAILABILITY OF TRANSPORT AND COMMUNICATION FACILITIES. EXISTENCE OF TRADITIONAL SOCIETY.
5. 5. STRUCTURE OF INDIAN ECONOMY: STRUCTURE OF INDIAN ECONOMY PRIMARY SECTOR SECONDARY SECTOR TERTIARY SECTOR
6. 6. PRIMARY SECTOR AGRICULTURE FISHING MINING
7. 7. INDUSTRY CONSTRUCTION SECONDARY SECTOR
8. 8. INSURANCE BANKING TRANSPORT TERTIARY SECTOR
9. 9. SIGNIFICANCE OF INDIAN ECONOMY: FASTEST GROWING ECONOMY. HIGH DEMOGRAPHIC DIVIDEND STRONG CONSUMER MARKET RISING TRENDS IN FDI FLOW
10. 10. CHALLENGES OF INDIAN ECONOMY: POPULATION EXPLOSION POVERTY UNEMPLOYMENT RURAL URBAN DIVIDE LOW RATE OF ECONOMIC GROWTH MALNUTRITION INEQUITABLE DISTRIBUTION OF INCOME PREDOMINANCE OF AGRICULTURE LOW LEVEL OF HUMAN DEVELOPMENT SCARCITY OF CAPITAL TECHNOLOGY BACKWARDNESS LACK OF ENTREPRENEURS
11. 11. MEANING OF ECONOMIC SYSTEMS : IS A SYSTEM DESIGNED BY A NATION TO UTILIZE HER RESOURCES FOR THE PURPOSE OF SATISFYING THE NEEDS AND WANTS OF PEOPLE.
12. 12. DEFINITION OF ECONOMIC SYSTEM: ACCORDING TO CARL LANDAUER AN ECONOMIC SYSTEM IS THE SUM TOTAL OF THE DEVICES BY WHICH PREFERENCES AMONG ALTERNATIVE PURPOSES OF ECONOMIC ACTIVITY IS DETERMINED AND BY WHICH INDIVIDUAL ACTIVITIES ARE COORDINATED FOR THE ACHIEVEMENT OF THESE PURPOSE.
13. 13. FUNCTIONS OF ECONOMIC SYSTEMS: DETERMINATION OF PRODUCTION AND ALLOCATION OF RESOURCES ORGANIZATION OF THE PRODUCTION PROCESS. INCOME DISTRIBUTION. PROVISION FOR THE FUTURE AND POSTERITY. ECONOMIC GROWTH AND DYNAMISM.
14. 14. TYPES OF ECONOMIC SYSTEMS: TYPES OF ECONOMIC SYSTEM CAPITALISM SOCIALISM MIXED ECONOMY
15. 15. INTRODUCTION: DEFINED AS AN ECONOMIC ACTIVITY WHERE THE MEANS OF PRODUCTION ARE PRIVATELY OWNED ALSO CALLED FREE ENTERPRISE OR MARKET ECONOMY. THERE IS NO GOVERNMENT INTERFERENCE. BASIC PRODUCTION UNITS ARE 1)HOUSEHOLD 2)FIRMS
16. 16. ACCORDING TO KARL MARX, CAPITALISM IS A PARTICULAR MODE OF ORGANIZATION OF PRODUCTION WHICH IS CHARACTERISED BY WAGE, SLAVERY PRODUCTION OF PROFIT AND CREATION OF SURPLUS VALUE.
17. 17. ABOUT PRODUCTION: PRODUCTION SUPPLY DEMAND PRICE SYSTEMS
18. 18. DEMAND SUPPLY PRICES PRODU CES
19. 19. SUPPL Y DEMAN D PRICES PRODU CES
20. 20. FEATURES OF CAPITALISM: FREE ENTERPRISE PRIVATE OWNERSHIP LIMITED ROLE OF GOVERNEMENT ABSENCE OF A CENTRAL PLAN CONSUMERS SOVEREIGNTY COMPETITION MARKET SYSTEM
21. 21. MERITS OF CAPITALISM: DEMOCRATIC NATURE RAPID ECONOMIC GROWTH INCENTIVES INNOVATION EFFICENT UTILISATIONOF RESOURCES CAPITAL FORMATION FLEXIBILITY AND ADAPTABILITY
22. 22. DEMERITS OF CAPITALISM LACK OF MAXIMUM SOCIAL SATISFACTION AT MINIMUM SOCIAL COST SOCIAL WASTE CONCENTRATION OF ECONOMIC POWER SOCIAL DISCRIMINATION ECONOMIC INSTABILITY LOSS OF HUMAN VALUES RISE OF MONOPOLY
23. 23. INTRODUCTION: SOCIALISM IS AN ECONOMIC SYSTEM WHERE THE MEANS OF PRODUCTION ARE EITH OWNEDOR CONTROLLED BY THE STATE. ALSO CALLED AS COMMAND ECONOMY. NO PLACE FOR PRIVATE. STATE ITSELF DECIDES -WHAT TO PRODUCE - HOW TO PRODUCE -HOW TO DISTRIBUTE
24. 24. ACCORDING TO LEFT WITCH IN SOCIALISM THE ROLE OF THE STATE IS CENTRAL IT OWNS THE MEANS OF PRODUCTION AND DIRECTS ECONOMIC ACTIVITY
25. 25. FEATURES OF SOCIALISM: GOVERNMENT OWNERSHIP DISTRIBUTION OF INCOME RESTRICTION OF OCCUPATION CENTRAL AUTHORITY RESTRICTION ON CONSUMPTION SOCIAL WELFARE PEACEFUL AND DEMOCRATIC EVALUATION ABSENCE OF COMPETITION EQUALITY OF OPPURTUNITY CLASSLESS SOCIETY
26. 26. MERITS OF SOCIALISM: ABSENCE OF CLASS STRUGGLE ECONOMIC STABILITY SOCIAL JUSTICE HIGHER ECONOMIC GROWTH RATIONAL ALLOCATION OF RESOURCES
27. 27. DEMERITS OF SOCIALISM: CORRUPTION LOSS OF CONSUMER SOVEREIGNITY CONCENTRATION OF ECONOMIC POWER IN THE STATE INEFFIENCY AND LOW PRODUCTIVITY LOSS OF OCCUPATIONAL FREEDOM
28. 28. MIXED ECONOMY
29. 29. INTRODUCTION: THE MIXED ECONOMY SHARRES FEATURES OF CAPTALISM AND STATE CAPITALISM IT IS CHARACTERISED BY THE CO-EXISTANCE OF PUBLIC AND PRIVATE SECTORS AND THE OVER ALL GOVERNMENT REGULATIONS OF THE ECONOMY AIMS TO BLENDING TOGETHER THE BEST CONTROL SOCIALIST OR COMMUNISTY ECONOMY WITH THE BEST OF FREE ENTERPRISE IN A CAPITALIST ECONOMY.
30. 30. ACCORDING TO SAMUEL SON, MIXED ECONOMY IS THAT ECONOMY IN WHICH BOTH PUBLIC AND PRIVATE INSTITUTIONS EXERCISE ECONOMIC CONTROL.
31. 31. FEATURES OF MIXED ECONOMY CO-EXISTANCE OF PRIVATE AND PUBLIC SECTORS NATIONALISATION OF BASIC INDUSTRIES REDUCTION OF INEQUALITIES OF INCOME PROMOTION OF ECONOMICDEVELOPMENT THROUGH PLANNED EFFORTS RESOURCES ALLOCATION THROUGH THE PRICE SYSTEM AND GOVERNEMENT DIRECTIONS GOVERNEMENT CONTROL AND REGULATIONS OF THE PRIVATE SECTOR CONTOL OF MOMOPOLY CONSUMER SOVEREIGNITY IS PROTECTED BUT GOVERNEMENT CONTROLS PRODUCTION,CONSUMPTION AND DISTRIBUTION
32. 32. MERITS OF MIXED ECONOMY: ACIVEMENT OF FASTER ECONOMIC BEST ALLCATION OF RESOURCES BALANCE BETWEEN THE PRIVATE AND PUBLIC SECTORS ESTABLISHMENT OF WELFARE STATE HEAVY CAPITAL INVESTMENT THROUGH PLANNED EFFORT
33. 33. DEMERITS OF MIXED ECONOMY UNDUE EMPHASIS ON THE GROWTH OF PUBLIC SECTOR INEFFICIENCY OF BOTH THE SECTORS INEFFECTIVE CONTROL OF PRIVATE SECTOR ECONOMIC FLUCTUAIONS FAILURE TO SOLVE DEMOGRAPHIC AND UNEMPLOYMENT PROBLEMS AND INFLATION EXTENSIVE BEUAROCACY AND CORRUPTION
34. 34. STRUCTURE OF INDIAN ECONOMY
35. 35. INDUSTRY: MEANS PRODUCTION OF GOODS FOR SALE BY THE APPLICATION OF HUMAN OR MECHANICAL POWER. REFERS TO ECONOMIC ACTIVITIES WHICH ARE CONNECTED WITH RAISING,PRODUCING AND PROCESSING OF GOODS AND SERVICES. USED TO REPRESENT A GROUP OF BUSINESS ENTERPRISES ENGAGED IN PRODUCING SIMILAR PRODUCTS OR SERVICES
36. 36. INDUSTRIAL DEVELOPMENT: FIRST STAGE PROCESSING OF PRIMARY PRODUCTS SECOND STAGE TRANSFORMATION OF MATERIALS THIRD STAGE FACILITATE THE FUTURE PROCESS OF PRODUCTION
37. 37. ACCORDING TO W.G.HOFFMAN OPERATIONAL CRITERIA OF THE DEGREE OF INDUSTRIAL DEVELOPMENT HE CLASSIFIED ALL INDUSTRIAL OUTPUT INTO TWO CATEGORIES -CONSUMERS GOODS -CAPITAL GOODS
38. 38. CLASSIFICATION OF INDUSTRIES: CLASSIFICATION OF INDUSTRIES BASED ON RAW MATERIALS AGRO-BASED MINERAL BASED FOREST BASED MARINE BASED BASED ON SIZE SMALL SCALE MEDIUM SCALE LARGE SCALE BASED ON OWNERSHIP PRIVATE PUBLIC JOINT
39. 39. ROLE OF INDUSTRY IN ECONOMIC DEVELOPMENT: INCREASE IN NATIONAL INCOME HIGHER STANDARD OF LIVING ECONOMIC STABILITY IMPROVEMENT IN BALANCE OF PAYMENTS RISE IN AGRICULTURAL PRODUCTION REDUCTION IN THE RATE OF POPULATIO GROWTH INCREASED SAVING AND IVESTMENT INCREASE IN THE GOVERNMENT REVENUE
40. 40. EMERGING INDUSTRIES T E X T I L E S E L E C T R O N I C S A U T O M O B I L E S F M C G T E L E C O M P H A R M A
41. 41. MARKETS: TEXTILES COMPOSITE MILLS SPINNING MILLS WEAVING AND KNITTING FABRIC FINISHING CLOTHING ELECTRONICS CONSUMER INDUSTRIAL COMPUTERS STRATEGIC ELECTRONICS COMMUNICATION AND BROAD CASTIONG EQUIPMENTS ELECTRONIC COMPONENTS AUTOMOBILE PASSENGER COMMERCIAL THREE WHEELER TWO WHEELERS FMCG HOUSE HOLD CARE PERSONAL CARE FOOD AND BEVERAGES TELECOM PUBLIC SECTOR PRIVATE SECTOR PHARMA ORGANISED UN- ORGANISED
42. 42. INTRODUCTION: ECONOMIC REFORMS WERE INITIATED IN 1991. A SIGNIFICANT OBJECIVE OF THIS LIBERALISATION HAS BEEN ACHIEVING GREATER EFFICIENCY IN RESOURCE ALLOCATION
43. 43. NATURE OF ECONOMIC REFORMS REMOVAL OF INDUSRIAL LICENSING DE-RESERVATION OF SSI ITEMS WITHDRAWING MRTP RESTRICTIONS LIBERALISATION OF THE ECONOMY ENTRY OF PRIVATE PLAYERS NO BUDGET SUPPORT DISINVESTMENT PRIVATISATION OF THE ECONOMY AUTOMATIC APPROVAL FOR FDI AUTOMATIC APPROVAL FOR FOREIGN TECHNOLOGY AGREEMENTS ALLOWANCE OF FOREIGN EQUITY HOLDINGS REDUCED TARIFF RATES GLOBALISATION OF THE ECONOMY
44. 44. OBJECTIVES OF ECONOMIC REFORMS LIBERALISATION AND OPENING-UP OF THE ECONOMY IMPROVING THE AVAILABILITY BALANCE BETWEEN DIFFERENT SECTORS OF THE ECONOMY MAKING THE CORPORATE AND THE PUBLIC SECTOR MORE EFFECTIVE MINIMISING POVERTY BY REDCING THE RATE OF UNEMPLOYMENT MINIMISING BUDGET DEFICITS BY GENERATING MORE REVENUE TO REMOVE THE RESTRICTIONS ON FOREIGN DIRECT INVESTMENT TO REMOVE THE RESTRICTIONS OF MRTP ACT
45. 45. ECONIMIC REFORMS IN VARIOUS SECTORS: FISCAL REFORMS FINANCIAL/MONETARY SECTOR REFORMS INTERNATIONAL TRADE AND INVESTMENT REFORMS INDUSTRIAL SECTOR REFORMS INFRASTRUCTURE REFORMS LABOUR REFORMS AGRICULTURAL SECTOR REFORMS PRIVATISATION REFORMS
46. 46. CHALLENGES FACED BY ECONOMIC REFORMS: ABSENCE OF A BROADER DEVELOPMENT STRATEGY WRONG SEQUENCING OF REFORMS HASTY PACE OF REFORMS PREREQUISITES OF REFORM IGNORED ABSENCE OF HUMAN DEVELOPMET GOALS AS AN INTEGRAL PART OF THE STRATEGY
47. 47. INTRODUCTION: DENOTES THE EQUAL TREATMENT OF ALL CITIZENS. MEANS ABSENCE OF PRIVILEGES BEING EXTENDED TO ANY PARTICULAR SECTION. GENERAL DEFINITION- HARD TO ARRIVE AT AND EVEN HARDER TO IMPLEMENT
48. 48. ACCORDING TO CHIEF JUSTICE - GAJENDRA GADKAR IN THIS SENSE SOCIAL JUSTICE HOLDS THE AIMS OF EQUALITY OPPURTUNITY TO EVERY CITIZEN IN THE MATTER OF SOCIAL AND ECONOMICAL ACTIVITIES AND TO PREVENT INEQUALITIES
49. 49. PRINCIPLES OF SOCIAL JUSTICE HUMAN DIGNITY DIGNITY OF WORK AND THE IGHTS WORKERS COMMUNITY AND THE COMMON GOOD SOLIDARITY RIGHTS AND RESPONSIBILITIES STEWARDSHIP PRIORITY FOR THE POOR AND VULNERABLE GOVERNANCE/PRINCIPLE OF SUBSIDARITY PARTICIPATION
50. 50. ACTIVITES RELATED TO SOCIAL JUSTICE RAISING AWARENESS RESEARCHING THE ROOT CAUSES OF INJUSTICES DISSEMINATING FINDINGS CREATING CAPACITY BUILDING NETWORKS AND PATNERSHIPS INFLUENCING DECISIONS MONITORING OUTCOMES
51. 51. CHALLENGES IN SOCIAL JUSTICES SOCIAL POLICY ECONOMIC POLICY TRIBALS BACKWARD CASTES WOMEN FARMERS LABOURERS LANDLESS PEOPLE