Indian Economy in Global Context

Overview

Suggested Reports & Publications

• World Economic Outlook Report

• Global Economic Prospects

• World Economic Situation and Prospect Report (WESP)

• Asian Development Outlook (ADO)

• Niti Aayog Reports, Policy Briefs & Working Papers

About India

• Geographic Region: South Asia

• Seventh largest country
• Second largest population
in the world
• Area: 32,87,263 square km
• Population: 1.210 billion
(2011 census)

Country Classification Systems in Selected

International Organizations
Country Classification
Systems in Selected
International UNDP IMF World Bank
Organizations

Name of Developed
Developed Countries Advanced Countries High income countries
Country

Name of Developing Emerging and Low- and middle-income

Developing Countries developing countries countries
Country

75 percentile in the US$6,000 GNI per

HDI distribution capita in 1987-prices
Development Threshold Not explicit

(1) Low human

development countries 1) Low-income
developing countries and (1) Low-income
(2)Medium human countries and
Subcategories of development countries, and (2) Emerging and other
developing countries (2) Middle-income countries
(3) High human developing countries
development countries

World Bank Classification

WDR classified the various countries on the basis of GNI per capita.
•
Each year on July 1, the World Bank revises analytical classification of
•
the world's economies based on estimates of Gross National Income
(GNI) per capita for the previous year.
The thresholds are in GNI Per capita in Current USD
•
 UNDP HDI Classification
HDI of less than 0.550 for low human development,
0.550–0.699 for medium human development,
0.700–0.799 for high human development and
0.800 or greater for very high human development.
 IMF Classification

Certain economies are categorised as NIC

(Newly industrialized countries)
• NIC is a category between developed and developing countries.
• These countries are more advanced and developed than developing
world, but not yet with the full signs of a developed country.
• Examples:
• Brazil,
• China,
• India,
• Indonesia,
• Malaysia,
• Mexico,
• Philippines,
• South Africa,
• Thailand and Turkey
"A developed country is one that allows all its citizens to enjoy a free
and healthy life in a safe environment.”

- Kofi Annan, Former Secretary General, United Nations

Asian Rising - India

 India: One of the Fastest Growing
Economies
• The past, present & future of Indian represents the story of how the slow
growing economy of around 3.9% in the first 40 years of its independence
in the second phase in the 1990s become the 12th largest economy.

• Further The Indian economy has been propelled by the liberalized policies
that have been instrumental in boosting demand as well as trade volume.
• The growth rate has averaged around 7% since 1997
• India was able to keep its economy growing at a healthy rate even during
the 2007-2009 recession, managing a 9.668 % growth rate in 2010.

Financial crisis and the Indian

Economy
 India: One of the Fastest Growing
Economies (continued)

4 Critical Growth Dividends

• Demographic Dividend

• Consumption (Demand) Dividend

• Comparative Cost Advantage Dividend

• Productivity Dividend
Demographic Dividend

Consumption Dividend
 Consumption Dividend

Comparative Cost Advantage Dividend

Comparative Cost Advantage Dividend

Productivity Dividend
Reform Accelerator Effect

Reform Accelerator Effect

Reform Accelerator Effect

Reform Accelerator Effect

 Major Challenges
• Jobless Growth

• Growing Inequality

• Poverty

• Low Tax to GDP Ratio

• Corruption

Major Challenges
Major Challenges

Major Challenges
Major Challenges

Major Challenges