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2. INTRODUCTION
15TH AUGEST, 1947 Is a red letter day in the history
of india. India attained independence on this day.
After the attainment of independence , india made
progress in economic, social cultural , educational ,
technological , and political fields and solved many
problems. But many problems like poverty ,
unemployment and inflation etc… are yet to be solved.
Economy means a major framework in which all the
economics activites of a country are explained . Indian
economy is a mixed economy

3. Migration-cobweb
Migration
Stretching of
overburdened
systems
Overcrowding Unemployment
Crimes
Poverty
Illiteracy
Communicable
diseases
Unhygienic
conditions
Slums
Injuries
Mental
illness
Stress
Life style
modification
Non-Communicable
diseases
3

4. Problem in India in all filed
• Dowry death
• Poverty
• Health
• Suicide
• Domestic violence
• Sexism
• Rape
• Debt bondage
• Environmental issues
• Women problem
• Unemployment
• Corruption
• Population
• Migration
• Religious violence
Terrorism
Naxalite Maoist insurgency
Caste related violence
• Starvation
• Conflict over Kashmir India & Pakistan
– Irrigation
– Pride
• Nuclear Weapons – India & Pakistan
• Flood control – India & Bangladesh
• Humanitarian Aid – India & Bangladesh
• Inflation
• sickness
• Slums
• Economic issues
• Poverty
• Sanitation
• Corruption
• Overpopulation
• Opportunity for youth

5. PRIVATE
SECTOR
PUBLIC
SECTOR
MIXED
ECONOMY

6. Incidence of
Poverty
Interventions -
Program,
Technology
Natural
Resources
Institutional/
Social Factor
Labour & Capital
Flow/Mobility
Spatial Integration of
Economic activities
New Lively hood
opportunities
ECOLOGICAL AND INCOME POVERTY -
DYNAMICS
Databases on
relationship to examine
the direction of
policies/interventions?
Powerlessness of
poor to gain access
or use available
natural resources
Role of economic
policies and
interventions in
altering the
relationship
Inequitable access
land, Information,
market and credit

7.  Overpopulation  1 billion &
climbing.
 Economic development.
 Hindu-Muslim tensions.
 Gender issues  dowry killings.
 Caste bias  discrimination
against untouchables continues.
 The Kashmir dispute and nuclear
weapons.
 Political assassinations.
Major problems & Issues
in India today

8. Daily Life• About 7 out of 10 Indians
live in villages and farm for a
living.
• Houses belonging to more
prosperous families in a
village are made of better
materials than those of
poorer villagers, most of
which include only a
charpoy, or wooden bed
frame with knotted string in
place of a mattress.
• For religious and economic
reasons, Indians follow a
mostly vegetarian diet, and
most Indians eat some form
of rice every day.
2

9. Four of every ten people in India struggle to live
on the equivalent of less than $1.25 /day
The Government of India says that 24% of India’s
population is below the poverty line

10. Poverty is a tremendous problem in South Asia
70% Rural
600,000 villages

11. Dharavi is the largest ‘slum’ in Asia
Location: Mumbai, India
• Dharavi is described as a
“slum of hope”
• Dharavi is described as a
“slum of despair”

12. Factors Affecting Health in Slums
• Economic conditions
• Social conditions
• Living environment
• Access and use of public health care services
• Hidden/Unlisted slums
• Rapid mobility
12

13. Why a [grow]ing population?
• United States
• Increased Immigration Rates
• Better health care
• Higher living standards
• Abortion Laws
• Unintended Pregnancies ~
40% births
– Teenage Pregnancies
• India
• Lack of Migration
• Lack of Education
• Desire for Male children
• Fertility rate declining
– Younger women having
children
Taken from: http://www.tashian.com/carl/archives/us-1896.gif Taken from: http://wwp.greenwichmeantime.com/time-zone/asia/india/images/india-flag.jpg

14. Indians in the USA.
 Of the 1.5M Indians living in the USA, 1/5th of them live in the Silicon Valley.
 35% of Silicon Valley start-ups are by Indians.
 Indian students are the largest in number among foreign students in USA.
Statistics that show:
38% of doctors in the USA,
12% of scientists in the USA,
36% of NASA scientists,
34% of Microsoft employees,
28% of IBM employees,
17% of INTEL scientists,
13% of XEROX employees,
… are Indians.
1. India 44%
2. China 9%
3. Britain 5%
4. Philippines 3%
5. Canada 3%
6. Taiwan 2%
7. Japan 2%
8. Germany 2%
9. Pakistan 2%
10. France 2%
US H1-B Visa
applicants country
of origin

15. Reasons for migration to cities:
•Higher salaries
•Business opportunities
•Anonymity and individualism
•Rise in caste status
•Agricultural modernization (reduces rural incomes and jobs)
•Population pressures
•Refugees of drought or flooding
Increased family size-limited agricultural property
-Land use Pattern
-Irrigation facilities
Better income prospects
Better educational facilities
Better “Life style”
Basic amenities – health, transport,water, electricity.
Victims of natural/manmade calamities-Refugees

16. [Water] and [Forest] Factor
• Freshwater Availability
• Misconception of Oceans as
freshwater
• Human Bodies – 60% water
• Sewage deposited in water
• Health problems
• Per Capita Water Use
• Forests Area
• Urbanization – more paved
areas
• Less parks and nature
• Lack of Oxygen production
• Increase Quantity of Carbon
Dioxide (Greenhouse Gases)
• Global Warming
Taken from: http://static.flickr.com/33/38490644_41f946c4f2_b.jpg Taken from: http://pantransit.reptiles.org/images/1996-07-28/washington-rain-forest.png

17. Clothing requirement &The right to
education
• Calculating the basic need of clothing is
difficult, as requirements vary considerably according to region, gender, age
and culture.
• We calculated the minimum amount of cloth required and its cost for
persons by age and gender living in the plains.
• The weighted average of the total costs came to Rs 207 per annum on
clothing.
• About 71.16% of the people in the 15-19 year age group had not
completed a secondary education(1999-00)*.
• It should be the minimum responsibility of the State to ensure that each
young citizen has access to cost-free schooling with adequate
infrastructure and qualified teachers.
• Moreover, such an institution should lie within a 2 km radius of each
person’s home so as to ensure not more than 30 minutes are spent
walking to school.

18. METHODS TO MEASURE

19. MEASURING
1.Change in price index
a)Consumer Price Index(CPI)
b) Wholesale Price: A chief measure of price
inflation is the inflation rate. It is measured by:
Index (WPI)
2. Gross National Product Deflator (GNP
Deflator).

20. POwer

21. Housing

22. Irrigation

23. EDUCATION:

24. Transport

25. Poverty due to Population
• Rural population
• Urban population

26. Antipoverty Programmes
• National Rural
Employment
• Rural Labour
Employment
Generation Programme
• Jawahr Rozgar Yojana

27. Measures to promote Employment
• Rural works programme
• Marginal farmers and
Agricultural Labourers

28. Ten problem
• 1. Inflation
• 2.Poor educational standards
• 3. Poor Infrastructure
• 4.Balance of Payments deterioration
• 5 . High levels of private debt
• 6.Inequality has risen rather than decreased
• 7. Large Budget Deficit
• 8.Rigid labour Laws
• 9.Inefficient agriculture
• 10. Slowdown in growth

29. 1. Inflation
• Fuelled by rising wages, property prices and food prices inflation in
India is an increasing problem. Inflation is currently between 8-10%.
This inflation has been a problem despite periods of economic
slowdown. For example in late 2013, Indian inflation reached 11%,
despite growth falling to 4.8%. This suggests that inflation is not just
due to excess demand, but is also related to cost push inflationary
factors. For example, supply constraints in agriculture have caused
rising food prices. This causes inflation and is also a major factor
reducing living standards of the poor who are sensitive to food
prices. The Central Bank of India have made reducing inflation a top
priority and have been willing to raise interest rates, but cost push
inflation is more difficult to solve and it may cause a fall in growth
as they try to reduce inflation.

30. 2.Poor educational standards
• Although India has benefited from a high % of
English speakers. (important for call centre
industry) there is still high levels of illiteracy
amongst the population. It is worse in rural
areas and amongst women. Over 50% of
Indian women are illiterate. This limits
economic development and a more skilled
workforce.

31. “IIT = Harvard + MIT + Princeton”
“IIT = Harvard + MIT + Princeton” , says CBS ‘60 Minutes’.
CBS' highly-regarded ‘60 Minutes’, the most widely watched news programme in the US, told its
audience of more than 10 Million viewers that “IIT may be the most important university
you've never heard of."
"The United States imports oil from Saudi Arabia, cars from Japan, TVs from Korea and
Whiskey from Scotland. So what do we import from India? We import people, really smart
people," co-host Leslie Stahl began while introducing the segment on IIT.
“…the smartest, the most successful, most influential Indians who've migrated to the US seem to
share a common credential: They are graduates of the IIT.”
“…in science and technology, IIT undergraduates leave their American counterparts in the dust.”
“Think about that for a minute: A kid from India using an Ivy League university as a safety
school. That's how smart these guys are.”
There are “cases where students who couldn't get into computer science at IIT, they have gotten
scholarships at MIT, at Princeton, at Caltech.”

32. “Brain Drain”
• Young talent leaving India seems to be slowing
down.
• Average starting salary for an IT engineer in India
today is approximately $10-12,000.
• Many are graduates of the Indian Institute of
Technology
– Several campuses located throughout the
country
• This salary provides a comfortable lifestyle in
modern India for the privileged few.

33. 3. Poor Infrastructure
• Many Indians lack basic amenities lack access
to running water. Indian public services are
creaking under the strain of bureaucracy and
inefficiency. Over 40% of Indian fruit rots
before it reaches the market; this is one
example of the supply constraints and
inefficiency’s facing the Indian economy.

34. 4.Balance of Payments deterioration.
• Although India has built up large amounts of foreign
currency reserves the high rates of economic growth have
been at the cost of a persistent current account deficit. In
late 2012, the current account reached a peak of 6% of
GDP. Since then there has been an improvement in the
current account. But, the Indian economy has seen imports
growth faster than exports. This means India needs to
attract capital flows to finance the deficit. Also, the large
deficit caused the depreciation in the Rupee between 2012
and 2014. Whilst the deficit remains, there is always the
fear of a further devaluation in the Rupee. There is a need
to rebalance the economy and improve competitiveness of
exports.

35. 5. High levels of private debt
• Buoyed by a property boom the amount of
lending in India has grown by 30% in the past
year. However there are concerns about the risk
of such loans. If they are dependent on rising
property prices it could be problematic.
Furthermore if inflation increases further it may
force the RBI to increase interest rates. If interest
rates rise substantially it will leave those indebted
facing rising interest payments and potentially
reducing consumer spending in the future

36. 6.Inequality has risen rather than
decreased.
• It is hoped that economic growth would help drag
the Indian poor above the poverty line. However
so far economic growth has been highly uneven
benefiting the skilled and wealthy
disproportionately. Many of India’s rural poor are
yet to receive any tangible benefit from the
India’s economic growth. More than 78 million
homes do not have electricity. 33% (268million)
of the population live on less than $1 per day.
Furthermore with the spread of television in
Indian villages the poor are increasingly aware of
the disparity between rich and poor. (3)

37. 7. Large Budget Deficit
• India has one of the largest budget deficits in
the developing world. Excluding subsidies it
amounts to nearly 8% of GDP. Although it is
fallen a little in the past year. It still allows
little scope for increasing investment in public
services like health and education.

38. 8. Rigid labour Laws
• As an example Firms employing more than
100 people cannot fire workers without
government permission. The effect of this is to
discourage firms from expanding to over 100
people. It also discourages foreign investment.
Trades Unions have an important political
power base and governments often shy away
from tackling potentially politically sensitive
labour laws.

39. 9.Inefficient agriculture
• Agriculture produces 17.4% of economic
output but, over 51% of the work force are
employed in agriculture. This is the most
inefficient sector of the economy and reform
has proved slow.

40. SUSTAINABLE AGRICULTURE IN INDIA
– A HOPE OR HYPE ???
1990s 2000
Poor 320 260
% Population 36 19
0 20 40 60
South
West
East
North
Central
1999-00
1983-84
% of population below poverty line
Poverty in India
Millions of poor, malnourished and
food insecure population cannot be
the foot soldiers fighting the
cause of sustainable agriculture
(in Million)
Strategy:
• Combating poverty
• Empowering people
• Using core competence in science
& technology – including space
applications
• Setting ecological integrity
Who will feed India ?
– small and marginal farmers
(FAO/RAP- 2001)
Poverty- geographical profile

41. 10. Slowdown in growth
• 2013/14 has seen a slowdown in the rate of
economic growth to 4-5%. Real GDP per capita
growth is even lower. This is a cause for
concern as India needs a high growth rate to
see rising living standards, lower
unemployment and encouraging investment.
India has fallen behind China, which is a
comparable developing economy

42. Definition of Inflation
• Inflation can be defined as the rise in overall
price level in the economy, i.e. rise in prices of
all the goods and services.
• When prices rise, it erodes the purchasing
power of money.
• Inflation is a situation in which there is a
persistent and appreciable increase in general
level of prices.

43. Causes of Inflation
1. Cost push inflation.
2. Rising imported raw materials costs.
3. Rising labor costs.
4. Higher indirect taxes imposed by the
government.
5. Demand pull inflation.

44. Effect of Inflation

46. REASONS FOR RUPEE DEPRECIATION

47. Recession in developed economies like US made
big institutions to pull out their money from
India
• Institutional investors investing in India are directly
impacted by the global market uncertainty. In 2008
India had a net outflow of $14billion of FIIs and INR
drastically. A volatile currency is never good for a
foreign investor as it increases the transaction risk.
Though RBI has intervened through open market
operations to arrest the downfall of INR (managed
float) but the reserves of $290billion don’t provide
enough room to make a significant impact.

48. Default concerns of European nations has resulted
in loss of confidence in the Euro and appreciation
of dollar
• Owing to uncertainty prevailing in Europe and
slump in international market, investors prefer to
stay away from risky investments. This has
significantly affected the portfolio investment in
India. Credit rating agency’s downgrade of India
to BBB- has not helped the cause. Any outward
flow of currency or decrease in investment will
put a downward pressure on exchange rate.

49. • Trade deficit has widened by 40,000 crores in
the last quarter. This has resulted in increased
imports and spike in dollar demand

50. Expecting current account deficit to
settle at 3.0-3.1% of GDP by March
2012

51. IMPACT OF RUPEE DEPRECIATION
• Economic recovery will get delayed as...
• The Reserve Bank of India will not be able to cut
rates for fear of causing more outflow..
• Weaker rupee will make capital imports
expensive, forcing companies to delay
investments..
• Impact on inflation and higher fuel prices will
affect consumer sentiment..
• Foreign investors will postpone investments till
things stabilise

52. % Arable
Land
Pop.
Density
/km
GDP PPP % Literate Life Exp. Poverty Rate
India 49% 392 $2,800 61% 70 yrs 25%
Pakistan 24% 199 $2,600 50% 65 yrs 24%
Nepal 16% 226 $1,700 49% 65 yrs 31%
Bangladesh 55% 1165 $1,500 43% 60 yrs 45%
Comparative Statistics for Selected Countries in South Asia

53. [Environ]mental Impacts
• Pollution – increase in cars and emission of greenhouse gases into
atmosphere
• Deforestation – increase in paved areas to house increasing population
• Freshwater Availability – increase in waste production and
contamination of water
• Natural Resources – increase burning of fossil fuels, excessive use of
coal
• Global Warming – overall increase in temperature and chances of
natural disasters
• Habitat Loss – change in ecosystems affecting trophic levels

54. However, we also know that…
• 80% of India does not have access to public health facilities. (Dr.
Anbumani Ramadoss, Minister for Health and Family Welfare)
• 47% of Indian children under the age of 5 years are
undernourished. (Human Development Report 2005, UNDP)
• 71% of the children in 15-19 age group have not completed a
secondary education, their fundamental right.(National Sample Survey on
Education, 1999-00, NSSO)
• 57% of India does not have access to electricity.
(World Development Indicators 2005, World Bank)
• 70% of India does not have access to a suitable toilet. (National Sample
Survey on Housing, 2004, NSSO)
• 49% of India does not have proper shelter.
(National Sample Survey on Housing, 2004, NSSO)
• 38% of India does not have access to a nearby water source.
(National Family Health Survey, 1998-99, IIPS)

55. CONCLUSION
Hence, poverty, unemployment and
inflation are the three major issues
facing Indian economy. The main
cause of all these issues are
population explosion. In order to
remove these problems we have to
take care of educated society .