this presentation highlights the economic aspects of indian economy pre and post LPG.

2. Overview
• The Economy of India is the ninth largest in the world by nominal GDP and
the fourth largest by purchasing power parity (PPP).
• The famous Goldman Sachs report ( Dreaming with BRICs: The Path to 2050 )
states that, among Brazil, Russia, India and China, India will grow the fastest
over the next 30 to 50 years by leveraging its demographic advantages and
through continued development
• India’s GDP will exceed Italy’s in 2016, France’s in 2019, Germany’s in 2023
and Japan’s in 2032
• INDIA TO BECOME THE 3RD LARGEST ECONOMY IN THE WORLD BY 2032
AND…
THE STORY BEGAN IN 1947

3. Pre LPG
• Social democratic policies governed India's economy from 1947 to 1991.
• The economy was characterized by
Extensive regulation
Protectionism
Public ownership
Pervasive corruption and
Slow growth.

4. GDP- A COMPARISON
Graph shows per
capita GDP of
south Asian
economies &
South Korea as a
percent of the
American GDP per
capita

5. Average GDP growth - India & the World

6. Current scenario
• India's large service industry accounts for 57.2% of the country's GDP
• The industrial sectors contribute 28.6%
• The agricultural sectors contribute 14.6%
• Major industries in India includes
Telecommunications
Textiles
Chemicals
Food processing
Steel
Cement
Mining
Petroleum
Machinery
Information technology-enabled services and pharmaceuticals. (2009-10)

7. GDP Growth
GDP growth after
LPG

8. Introduction to LPG
• July 1991,India has taken a series of measures to structure the economy and
improve the BOP position. The new economic policy introduced changes in
several areas.
• The policy have salient feature which are: -
 Liberalization (internal and external)
 Extending Privatization
 Globalization of the economy

9. The path to Liberalization
• Relief for foreign investors
• Devaluation of Indian rupees
• New industrial Policy
• New trade policy
• Removal of import Restrictions
• Liberalization of NRI remittances
• Freedom to import technology
• Encouraging foreign tie-ups
• MRTP relaxation
• Privatization of public sector

10. Examples
 National Thermal Power Corporation
 Indian Oil Corporation
 Mananegar Telephone Nigam Limited
 Steel Authority India Limited
 Bharat Petroleum Corporation Limited
 Hindustan Petroleum Corporation Limited
 Bharat Heavy Electronics Limited

11. The path to Privatization
• Liberalization Approach
• Relative Share Enlargement Approach
• Association of Private Sector Management Approach
• Transfer of Minority Equity Ownership Approach
• Transfer of Complete Ownership Approach

12. Examples
• Lagan Jute Machinery Company Limited (LJMC)
• Videsh Sanchar Nigam Limited (VSNL)
• Hindustan Zinc Limited (HZL)
• Hotel Corporation Limited of India (HCL)
• Bharat Aluminum Company limited (BALCO)

13. The path to Globalization
 Exporting
 Licensing/Franchising
 Contract manufacturing
 Management contract
 Assembly operations
 Fully owned manufacturing facilities
 Joint venturing
 Merger and acquisition
 Strategic alliance
 Countertrade

14. Post LPG

15. Agriculture
• India
• The world’s most irrigated land mass
• World’s 2nd largest exporter of rice & 5th largest exporter of wheat
• Food production: India’s Ranking in the World
• 1st Tea, Milk
• 2nd Rice, wheat, sugar
•

16. Industrialization
• Industry accounts for 28% of the GDP & employs 14% of the total workforce.
• Textile manufacturing is the second largest source of employment after
agriculture
 It accounts for 20% of manufacturing output
 Provides employment to over 20 million people
 Ludhiana produces 90% of woolens in India and is known as the
Manchester of India
• India is 13th in services output.
 Provides employment to 23% of the work force
 It has the largest share in the GDP, accounting for 55% in 2007, up from
15% in 1950

17. Industrialization
• Information technology and business process outsourcing are among the
fastest growing sectors
 Having a cumulative growth rate of revenue 33.6% between 1997–98 and
2002–03
 In 2009, seven Indian firms were listed among the top 15 technology
outsourcing companies in the world.
• Mining forms an important segment of the Indian economy
 The country produces 79 different minerals (excluding fuel and atomic
resources) in 2009–10
• Organized retail supermarkets accounts for 24% of the market as of 2008

18. Some Indian Examples Benchmarked with the Best
In The World

19. FDI INFLOWS TO INDIA
*

20. MNCs leveraging the India Advantage

21. Banking & Finance
• The Indian money market is classified into the organized sector comprising
Private banks
Public banks
as scheduled banks
Foreign owned commercial banks and
Cooperative banks
• The unorganized sector includes
Individual or family owned indigenous bankers or money lenders and non-
banking financial companies

22. Banking & Finance
• Prime Minister Indira Gandhi nationalized 14 banks in 1969
• Followed by six others in 1980
• The number of bank branches has increased from
 8,260 in 1969 to 72,170 in 2007
• India's gross domestic saving in 2006–07 as a percentage of GDP stood at a
high 32.7%

23. Energy and Power
• India is the fourth largest consumer of oil in the world
• India's oil reserves meet 25% of the country's domestic oil demand
• India imported $82.1 billion worth of oil in the first three quarters of 2010
which had an adverse effect on its current account deficit.
• The petroleum industry in India mostly consists of public sector companies
such as
 Oil and Natural Gas Corporation (ONGC)
 Hindustan Petroleum Corporation Limited (HPCL)
 Indian Oil Corporation Limited (IOCL)
 Reliance Industries Limited (RIL) operates the world's largest oil refining
complex

24. The India Advantage
Excellent network
Well-developed
of research laboratories
base industries
Proficiency in Pro active
English policy framework
Extensive clinical trial
opportunities
Rich biodiversity
Low manpower Trained manpower
costs and knowledge base

25. Thank
you