Continue in india was a relt sufficient entity and was economically independent as all the economies needs were fulfilled with in the village Colonial

INTRODUCTION

• The indian economy, the third largest economy in the world in terms of PURCHASING POWER, is going to touch new height in coming years.
• According to global investment bank by 2035 india would be 3RD largest .
• Economy of the work just after US and CHINA.
• It will grow to 60% of size of the US. Economy

HISTROY :-

• The Histroy of india economy can be broadly divided into three Phase:
• Pre-Colonial
• Colonial
• Post Colonial
• Pre- Colonial :- The economy histroy of india since INDUS VALLEY civilization to 1700 AD can be categorised under this phase. During this Phase indian economy was very will developed.
• It has very good trade relation with other parts of world. Before the advent of the East India Company each village

Continue….. in india was a relt sufficient entity and was economically independent as all the economies needs were fulfilled with in the village..

• Colonial:- The arival of East India Company in india caused a huge strain to the indian economy and there was a two way depletion of resources- The british would buy raw materials from india at cheaper rates and finished foods were sold higher than normal price in indian market.
• During this phase indias share of world income declived from 22.3% to 38% in 1952

POST COLONIAL INDIAN ECONOMY:-

• After india got independence from colonial rule in 1947, the process of rebuliding started various policies and schemes were formulated. 1st 5 years plan came in to implemention in 1952. there 5th year plan started by indian government, focused on the needs of the indian economy.
• Indias Economy is bound for slower growth. In recent months, indian government has introduced Pro business economic reforms and outlined plans to increase. Spending on capital investment and large scale social programs. In the first three months of 2013 the GDP growth slowed to 4.8% and it is likely to go down further due to weak Consuption , Capital, investment & decline government spending.

Primary Sector

• SECTORS OF THE INDIAN ECONOMY

• Tertiary Sector
• Other Sectors
• Organized Sector
• Unorganized Sector:
• Public Sector
• Private Sector

• Secondary Sector

Primary Sector

• The economic activity depends mainly on exploitation of natural resources .
• Agriculture and agriculture related activities, forestry and fishing, mining, and extraction of oil and gas.

Secondary Sector

• Involves manufacturing
• The industrial production of physical goods.

Tertiary Sector

• Involves providing intangible goods like services , attention, advice, experience, and discussion.
• Financial services, management consultancy, telephony and IT are good examples of service sector.

EXTERNAL TRADE AND INVESTMENT

What is External Trade ?

• Exchange of capital, goods, and services across international borders or territories.
• In most countries it represents significant share of gross domestic product (GDP).

Importance Of External Trade

• International trade is exchange of capital, goods, and services across international borders or territories. In most countries, it represents a significant share of gross domestic product (GDP)

International trade is the backbone of our modern, commercial world, as producers in various nations try to profit from an expanded market, rather than be limited to selling within their own borders.

India Trade: Imports

• India’s major imports comprise of crude oil machinery, military products, fertilizers, chemicals, gems, antiques and artworks. Imported goods are divided into the following categories: Freely importable items: For these items, no import license is required. They can be freely imported by an individual or a firm. Canalized items: These items can only be imported by public sector firms. For example petroleum products fall under this category. Prohibited items: Items such as unprocessed ivory, animal rennet and tallow fat cannot be exported to India.

India Trade: Exports

• Indian exports comprise mainly of engineering and textile products, precious stones, petroleum products, jewelry, sugar, steel chemicals, zinc and leather products. Most of the exported goods are exempt from export duties. India also exports services to several countries, primarily to the US. In fact, India is among the world’s largest exporters of services related to information and communication technology (ICT). It is also the key destination for business process outsourcing (BPO).

Risks in international trade

• Buyer insolvency; Non-acceptance; Credit risk; Regulatory risk; Intervention; Political risk; and War and other uncontrollable events. In addition, international trade also faces the risk of unfavorable exchange rate movements

Income and consumption

• What is national income ?
• National income measures the total value of goods and services produced within the economy over a period of time
• National Income can be denoted in different ways with different meaning attached to it.

• Gross Domestic Product (GDP)
• Gross National product (GNP)
• Net National Product (NNP)
• The GDP of India has grown from a merge 93.7 billion rupees in 1950 to about 410006.4 billion rupees in 2006.
• India's per capita income (nominal) is $ 1219, ranked 142nd in the world, while its per capita purchasing power parity (PPP) of US $3,608 is ranked 129th

Strengths of INDIAN ECONOMY

• India is well placed to benefit from globalization and outsourcing
• Demographics of India are favorable.
• There is much scope for increases in efficiency.

• Problems faced in Indian Economy
• Inflation.
• Poor educational standard.
• Poor Infrastructure.
• Balance of payment deterioration
• High level of debt
• Large budget deficit
• Rigid labour laws

OUR FINAL NOTE:

• If these problems are solved then the future for India looks bright, India might well become one of the superpowers of the 21 st Century.
• India- A country with Potentials for ‘sustaining’ development!!