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INDIA IS SHINING OR DECLINING???

Submitted To: Presented By:

Prof. Rashi Aggarwal Monika Chauhan

Manjeet KaurVivek Jaiswal

Amit Kumar Nag

Ajeya Dixit

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INDIAIS SHINING: WHY???

Annual GDP: India averaged 8% annual GDP growth in the three

years before the recent global financial crisis.

Population : Strength of more than a billion people, India is now the11th largest economy in the world.

Per Capita Income: Gone up 11.7 per cent to Rs 5,729 per month in

2012-13 at current prices, compared with Rs 5,130 in the previous fiscal.

Specialty:Acc. to BRICS--India boasts ofentrepreneurship ,innovation,& Global IT services industry.

Strength : Indian youth and business people are bullishly confident ofa bright future in India

History: In June 1991, previous finance minister Manmohan Singh,

passed widespread reforms that liberalized and opened Indias

economy to the world.

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SHINING

Growth:

Number of PhDs awarded up 49 per cent in three years 12 FDI proposals approved worth Rs 343.99 crore Seventeen new airports proposed FDI into India rises 24 per cent to US$ 3.95 billion in April-May 2013 SEZ exports stood at Rs 1.3 lakh crore in first quarter of 2013-14

Un employment Rate:8.5% (2012 est.), 9.8% (2011 est.).

Agriculture products : Rice, wheat, oilseed, cotton, jute, tea, sugarcane,lentils, onions, potatoes, dairy products, poultry, fish

Industries: textiles, chemicals, food processing, steel, transportation

equipment, cement, mining, petroleum, machinery, software, pharmaceuticals

Service sector : Continuing to grow and perform well. Indias monetarypolicy has proved extremely resilient, and helped carry India through fromthe financial crises until now.

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INDIANECONOMYISDECLINING .WHY????

Poverty Rate: As perIndias Planning Commission, a decline in the povertyrate with 37.2% in 2005 to 29.8% in 2010, a drop of 40 million people in theabsolute number of the countrys poor.

Inflation Rate: 9.3% (2012 est.), 8.9% (2011 est.).

GDP growth : Slowed to 6.3% in 2011-12; the worst it has been in 9 years, and thefirst quarter of 2012 India grew a measly 5.3%, which included food inflation atbetween 15-25%.

Rupee: The Rupee has been in a sharp decline, decreasing by 25% in value of thepast six months to become one of the worst performing currencies in the

international market.

Taxes: India is in desperate need of reform of its tax laws. 9.3% of GDP (2012est.)India is feeling significant strains on its fiscal budget.India is in urgent need of reform on Foreign Direct investment (FDI) rules,

particularly in its retail sector.

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Agriculture: Indian Commerce Minister Anand Sharma assertedthat 30% of agricultural produce does not reach the market, and ofthe remaining 70%, more than 50% is lost due to poor

transportation and storage technology. Infrastructure :According to the consulting firm Mckinsey, India is

suffering a shortfall of $190 billion in the infrastructure sector andis in urgent need of capital.

Bills & Taxes : Bills on subsidyreduction, tax reform, land

acquisition reform, and FDI reform all exist, but a dividedparliament is unable to pass such bills, and continues to belaborious and indecisive

Problem : The biggest symbol of the political paralysis has beenthe attempt to raise the cap for FDI in the retail industry.

Grading: Standard & Poor recently announced, in a special report,that India is in serious riskof being downgraded from its currentBBB+ to BBB-.

This downgrade is mainly connected to Indias slowing economicgrowth and weakening fiscal profile.

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Stock Marketing: The BSE 30-share index is off 18.06% year-to-date,worse than the stock markets of other BRICS economies.

Interest Rate: India's finance ministry released a statementshowing that rising interest rates in part caused industrial growthto drop to 5% in 2012 - 2013, from 8.8% a year ago.

Foreign investors : Have only $530 million in Indian equities thisyear, compared with $28.9 billion a year ago, according to theSecurities and Exchange Board of India (SEBI).

Pulling Out Money: Foreign investors have been pulling out of thecountry all year as India continues to struggle with inflation, andinvestors continue to pick safe heavens.

Export nations: like China, Indian exports only account for 10% ofGDP.

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SOURCES

http://www.ibef.org/industry/infrastructure-sector-india.aspx

http://www.financialexpress.com/news/why-indias-exports-are-faltering/1136281

http://data.worldbank.org/country/india

http://data.worldbank.org/topic

http://www.indiatimes.com/news/india/indias-per-capita-income-rises-to-rs-5729_-59790.html

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