Indian

Economic
Potential Is
Not
Overstated
PRESENT BY:
MANOJ
ANANT
MANISH
PRAMOD
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Where are we coming from?
Before independence

After independence

Agriculture sector and small handicraft

industries

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Where are we today?
Fourth largest economy by P.P.P.

Second fastest growing economy.

GROWTH:
Population Growth ( 2001- 2007) : 1.4%
GDP Growth (2007- 2008): 9.0%
GDP Growth (Govt. Estimates for 2008-
2009): 7.1%
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 …contd
Poverty: Rural: 28 % , Urban: 26 %
(Below National Poverty Line)

Life expectancy at birth: 64 years

Infant mortality ( per 1000 live births): 57

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 …contd
Children Underweight (below 5 years): 46%

Male Adult literacy (age 15 and older): 73%

Female Adult literacy (age 15 and

older): 48%

Access to improved water source

(% of pop): 89%

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 28 years of high growth
10
9
8
7
6
5
average annual GDPgrowth
4
3
2
1
0
1900-1950 1950-1980 1980-2002 2002-2007

Sources:1900-1990:angus
Maddison(1995),monitoring the
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world economy, 1990-2000/census
 Population growth is slowing
2.5
2.2 2.
1
2
1.8.

1.5 1.5

1 population growth
1

0.5

0
1901-1950 1951-1980 1981-1990 1991-2000 2001-2010

Sources:1900-1990:angus
Maddison(1995),monitoring the
world economy, 1990-2000/census 12/08/21 NATIONAL ECONOMIC PLANNING 7
 Literacy is rising
90
80 80
70
65
60
52
50
40 literacy rate
30
20
17
10
0
1950 1990 2000 2010(proj.)

Source: census of India 12/08/21 NATIONAL ECONOMIC PLANNING 8

POVERTY
SS

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 Where are we going?
Long run model scenario
Have potential to grow even further to 8.5%
per capita for next 30 years

GDP growth of around 9.5%.

Economy will reach $20 trillion.

Actual economic size by 2039 could be more

than $ 40 trillion.
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World and India

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Following in China’s footsteps

World development indicator 2007

( world bank) 12/08/21 NATIONAL ECONOMIC PLANNING 13
 Demographic dividend
Growth in: Labour force- 1.7%, Population-1.2%

Ratio of working population to the total

population will be on upswing.

Labour force participation rate of 61%.

Reduction in poverty, means to save, investment

in children and human capital.

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An emerging middle class
A middle class a boost to growth for any
country.

Providing the source of domestic demand.

The ratio of Indian middle class would

increase from 10% to 90% in 30 years.

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Large and growing domestic market

Increase in consumption.

Rise in subscription for telephone service.

Increased demand of durable goods.

Total production of vehicle:

1988-99 2004-05 2006-07
4.2% 8.6% 11%

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 Abundant resources
7th largest country with 3.3 million sq.km &
2nd largest in Asia.

Ample natural resources.

2nd largest area of arable land.

Large untapped hydro electric power

potential

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Versatile, skilled human capital
Unparalleled resource of an educated, hard working
skilled &ambitious workforce

Worlds youngest nation that attracts investment.

Over 380 universities, 11,200 colleges, 1500 research

intuitions

2nd largest pool of scientist & engineers

Over 2.5 million graduates are added to the

workforce every year.
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The global labor force

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 FDI
India is among the two most attractive FDI
destinations.

Highest returns on foreign investments.

Competitiveness in a natural and human

resource attracts investment.
India 19.3%
china 14.7%
Thailand 13%

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 Education
Third largest education system in the World
(after China and USA).

17973 institutions (348 universities and 17625

colleges).

20 central universities, the rest state

universities.

Average enrolment: 530 students

(compared to 4300 in USA).
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 Service sector
Responsible for rapid economic
growth.

Contributed 63% of GDP in 07-08.

Ranks 9th in service export.

BPO sectors are expected to touch

$60 billion -$62 billion in 2010-2011.

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Healthy & vibrant financial sector
Liberal & progressive policies ,vibrant
equity, debt market & prudent banking
norms.

Transparent & well regulated stock market.

Largest number of listed companies across

23 stock exchanges.

Ranking among top3 global markets.

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 Infrastructure
Programs of upgrading of 25 airports.

Delhi and Mumbai International

airports – two PPP projects with
estimated investment of $3.8 billion.

Construction of roads and highways.

Improvement in public infrastructure

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 Agriculture
One of the strongholds of the economy.

Contributes 18.5% to the GDP.

Average growth rate in more than 4%.

Potential to become major grower of transgenic rice

& several genetic engineering vegetable by 2010.

Growing food processing sector.

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 This is what expert’s say about
India
Tom enders ( Airbus )

Craig barrett ( Intel corporation )

Dan scheinman ( Isco system )

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