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NATIONAL ECONOMIC PLANNING

INDIAN GROWTH STORY IS ONLY URBANISED

Flow of Presentation
Shriya Pednekar

Ketan Patel
Preeti Shukla Aashish Saikia

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The Indian scenario


Population Area Service sector Agriculture
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History And Turnaround


Liberalization Privatization Globalization

Market Deregulation

Increased Private Participation

Liberal Trade

Restructuring the Financial Sector

Diminution of FDI Restrictions

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RURAL- URBAN DIVIDE


GDP SHARE (IN %)

POPULATION (IN %)

Agriculture

Urban 28%

17.3% Services 54.5%

Industry 28.2%

Rural 72 %

Source : CMIE 2009


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Percentage Contribution In GDP Growth Rate Points


10 9 8 7 6

5
4 3 2

1
0 Q1 2007 Q2 Q3 Q4 Q1 2008 Q2 Q3 Q4 Q1 2009

Services

Industry

Agriculture

Source : Asain Development Bank Outlook 2009


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VS
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Urbanization : A Recent Phenomenon



Indian growth is led by Urban sector Urbanized states: Fastest growth rates
Tamil Nadu Maharashtra Gujarat

Larger Cities: Fastest growth rates


Chennai (services) Ludhiana (industries) Mumbai, Bangalore (services)

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Problems In Rural
Housing Illiteracy

Health Care
Power Water
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Infrastructure: Urban India


Permanent urban households: 73% Hired Accommodation: 20.2 % in 2008-09 against 75% in 1992

Medical health centers: 75.35% in 2009-10


Telecommunication penetration: 82.34% Education Centers: 8,878
Source: : India Infrastructure Report 2008
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Infrastructure: Rural India


Approximately 60% of Rural India is still not properly connected The road Projects established by the government in 2006 still not even 50% completed In telecommunication the penetration is as low as 4.92 % Only 25% of medical facilities is allocated to about 65% of India population who resides in Rural Area No proper medical equipments available in the remote areas

Source: India Infrastructure Report 2008


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Education In Rural India


15% of the students reach high school in rural areas. School-drop out is a serious problem in Rural India. The drop out rate Classes(I-V)(6-11years) Classes(I-VIII)(6-14years) Classes(I-X)(6-16years)

5.47 % 48.71 % 61.59 %

Source: Educational Statistics, MHRD, Govt. of India.


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Education in Urban India


Urban education centers: 8878 Enrollment in education institute: 191.5 million Primary & Secondary School: 84,656

Enrollment in primary school: 20.1 million

Average strength of students in urban school: 380 per school Essential facilities: 73.05%
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Source: All India Education Survey Report 2008-09


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Comparison Rural - Urban


Rural-Urban Gap (Literates)
(In million)

Persons Rural Areas Urban Areas 58.7%

Male 70.7%

Female 46.1%

79.9%

86.3%

72.9%

Source: Census 2001


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Health Care
1 million deaths in rural India 80% of specialists in urban India Poor infrastructure in rural India Shortage of personal medical services in rural India
Source: The National Sample Survey (NSS) data
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Power Supply
Rural India: 30.54%

Absence of electricity: 64.2% in Rural India


Urban India: 92% Tremendous shortage: Rural India 10-15 hours of blackouts every day. Shortfall of electricity: 15-20,000 MW
Source: The Human Development Report 2009

Water Supply
Rural Access: 48%

Urban Access: 89.32%


Tube- wells in Rural India: 18% Farming takes 80% of Indias Water

Scarcity of water leads to Crop Failure on a large Scale


Source: HUDCO Report 2008
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AGRICULTURE

Is Agriculture an irony or rather a tragedy for India?

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Urban Population Pay Taxes

Government Revenues

Subsidies To Farmers

Urban development drives rural growth in India.

Source : www.livemint.com

Continued..
17.6 % GDP in our country . Agriculture contribution dipped by 1.4% Total food grain production: Fall by 9.7% in 2009 Non- food grain production: Fall by 4.6% in 2009 Khariff crops: Decline by 5.2% Rabi Crops: Decline by 3.7%

Source: Central Statistical Organization 2009


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Recommendations

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Bibliography
Urban Growth & Rural Stagnation Meera Kosambi Yojana & Kurukshetra(Govt. Periodicals) Welcome To Urban Revolution Jeb Brugmann
Ministry of Urban Development (www.urbanministry.nic.in) Ministry of Rural Development (www.rural.nic.in) Asian Development Bank (www.adb.org) World Bank Report- 2009 (www.worldbank.org) Bharat Nirman (www.bharatnirman.gov.in)

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Thank You
CMIE -centre for monitoring Indian economy. CII- Confederation of Indian industry IIR- Indian Infrastructure report HUDCO - Housing And Urban Development Corporation Ltd ICAR- Indian Council of Agricultural Research National Mission on Sustainable Agriculture (NMSA) NLM- National literacy mission NSSO- National survey sample organization
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