Group 4 Ind. Eco. Overview

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    A presentation onA presentation onINDIAN ECONOMYINDIAN ECONOMY

    (Overview)(Overview)

    PRESENTED BY:Rahul Mehta Jacob NJVatsal Patel Hardik Patel

    Ronak Trivedi1 st sem. PGP

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    India

    knowledge Economy

    and

    Infinite opportunity

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    PICPIC

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    IntroductionIntroduction

    India is a fastest growing economy.4th largest economy as purchasing power

    11th

    on GDP growthMixed economy systemIndia is Second most targeted country for M & AAmong the best emerging country of the worldIndian youth has potential to grow globally, butthe rural population need to have education.

    Vimal Ambani.

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    Indian EconomyIndian EconomyThe only country with 5 year plan system

    In 2008, 2nd

    fastest growing major economyThe effect of worldwide recessionGrowth of inflation rate

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    GDP growth of IndiaGDP growth of India

    Source: www.tradingeconomics.com

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    Major acquisitionsMajor acquisitions

    Suzlon Energy Ltd. acquires REpower

    A ditya Birla Group increased its stakein Idea Cellular by acquiring 48.14-

    percent stake

    Videocon Industries acquired DaewooElectronics Corporation Limited

    Tata steel buys corus plc

    $730 million$730 million

    $12.1 billion

    $0.98 billion

    $1.58 billion

    $1.6 billion

    Essar Steel acquired Algoma Steel

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    Contribution of sectorsContribution of sectors

    Source : www.indianeconomy.com

    2008-09

    S erviceS ector

    ManufacturingS ector

    AgriculturalS ector

    ContributionTo

    GDP

    55% 28 % 17%

    ContributionTo

    Employment

    34% 14% 5 2 %

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    Contribution of industries to GDPContribution of industries to GDP

    Source: www.rbi.com

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    S ECTOR S

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    Agriculture SectorAgriculture SectorArea and Rank

    ContributionGreen revolution and impact on Indian economy

    Services enhanced by green revolutionYield grownInternational comparison of yield

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    ContinueContinue

    Largest production

    Some benefits offered by Finance MinisterConcession in automatic management systemFree installation

    Concession on equipmentsTax exemption

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    Agriculture GrowthAgriculture Growth

    Source: www.tradingeconomics.com

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    Manufacturing sectorManufacturing sectorOutput increases as compared to forecast

    Countrys industrial output

    Capital goodsMining and Electricity

    GrowthHSBC surveys

    ExportsRecommendations and views in business awards2010

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    Steps taken by governmentObjectives of NMIZ

    Manufacturing growth

    Source: www.tradingeconomics.com

    02

    468

    10

    1970 1980 1990 2000 2010

    Growth (%)

    Growth (%)

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    Service sectorService sectorModes of service sectorSub-sectors

    Education and HealthTourismInsuranceBanking

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    Service growth rateService growth rate

    Source: www.tradingeconomics.com

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    ISSU ESISSU ES

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    AGRICULTURESlow agricultural growthCurrent agricultural practicesPoorly maintained irrigation systemInadequate use of technology

    Poor monsoon

    CORRUPTIONPervasive problemReduced corruptionSignificant improvement

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    GOVERNMENT

    Most spending fails to reach its intendedrecipients.Lant pritchett calls Indias public sectorOne of the worlds top ten biggest problem

    of the order of AIDS and climate change.Absence rates are one of the worst.

    EDUCATIONIncreasing primary education.Literacy rate of 65% is still lower thanworldwide average.

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    INFRASTRUCTURE

    Public sector to private sectorElectricityRoad network Internet

    Water supply

    LABOUR LAWSImplementation is a matter of concern.

    ECONOMIC INEQUALITIESRegional variation

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    Conclusiony Fastest growing economy

    y Infinite employment opportunities

    y Foreign investment

    y A great future

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    Dan Scheinman, Cisco System Inc. as toldto Business Week, August 2005

    A T KearneyFDI Confidence Index 2005

    Jack Welch

    General Electric

    India is a developedcountry as far as

    intellectual capital isconcerned.

    US Departmentof Commerce

    BRIC Report, GoldmanSachs

    Why India? Quote Unquote

    Travyn Rhall,ACNielsen

    Craig BarrettIntel Corporation

    India is among the threemost attractive FDIdestinations in the

    world.

    India has evolved intoone of the world'sleading technology

    centers.

    India has among thehighest returns on

    foreign investment.

    By 2032, India will beamong the three largest

    economies in the world.

    The Indian market has twocore advantages - an

    increasing presence of multinationals and an

    upswing in the IT exports.We came to India for

    the costs, stayed for thequality and are now

    investing for innovation.

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    Referencesy www.rbi.comy www.tradingeconomics.comy www.indianeconomy.com

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    THANK YOU

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