Major Economic Challenges During past 5 years

Presented By: Savneet Kaur

Among the most pressing issues is the prospect of a smaller labor force having to support and increasingly larger older population.World Economic And Social survey • 2007 Survey analyses the implications of ageing for social and economic development around the world. Paralleling increased longevity. changes in intergenerational relationships may affect the provision of care and income security for older persons particularly in developing countries where family transfers play a major role. . The ageing of the population offers both challenges and opportunities.

• 2009 Survey argues that mitigation and adaptation efforts can better move forward as part of a development strategy built around a massive investment-led transformation. . cope with economic insecurity and secure their livelihoods. to help communities better manage economic risks.• 2008 Survey offers a different perspective on economic insecurity—one that utilizes more proactive and coherent policy responses. along low-carbon. high-growth paths. at both national and international levels.

while fostering the strong growth and economic diversification necessary to allow convergence of incomes worldwide. • 2010 Survey highlights the systemic weakness unmasked by the recent global crisis and proposes reforms in international arrangements to eliminate these deficiencies and gaps in global governance mechanisms. The proposed reforms are aimed at ensuring consistency among national development efforts and global mechanisms in aid.This transformation would keep temperature increases consistent with environmental stability. These weaknesses have unduly constricted national policy space and sustain the proliferation of conflicting international rules. . trade and finance to pave the way towards more balanced and sustainable development.

and is one of the fastest-growing economies in the world. India recorded the highest growth rates in the mid-2000s. India is the seventeenth largest exporter and eleventh largest importer in the world.Developing economy.Indian economy The Economy of India is the ninth largest in the world by nominal GDP and the fourth largest by purchasing power parity. .

4% growth over these eight years. India's literacy rate had grown from 52. . averaging 14.04% in 2011.2% in 1991 to 74.India's Per Capita Income has tripled from $ 423 in 2002–03 to $ 1219 in 2010–11. India has made huge progress in terms of increasing primary education attendance rate and expanding literacy to approximately threefourth of the population.

Inflation is currently between 6-7%. There is still high levels of illiteracy amongst the population. Over 50% of Indian women are illiterate. . It is worse in rural areas and amongst women. property prices and food prices inflation in India is an increasing problem.Problems faced by Indian economy • Inflation Fuelled by rising wages. • Poor educational standards Although India has benefited from a high % of English speakers.

• Poor infrastructure Many Indians lack basic amenities. If interest rates rise substantially it will leave those indebted facing rising interest payments and potentially reducing consumer spending in the future. lack access to running water. Furthermore if inflation increases further it may force the RBI to increase interest rates. Indian public services are creaking under the strain of bureaucracy and inefficiency. • High levels of Debt Buoyed by a property boom the amount of lending in India has grown by 30% in the past years. . Supply constraints and inefficiency are faced by the Indian economy.

.• Inequality has risen rather than decreased However so far economic growth has been highly benefiting the skilled and wealthy disproportionately. 33% (268million) of the population live on less than $1 per day. More than 78 million homes do not have electricity. Many of India’s rural poor are yet to receive any tangible benefit from the India’s economic growth.

. Hence. Threat of inflation was very real in India and all over the world. the combined deficits of the central and state governments) is estimated at around 5. The estimated revenue deficit for 2007-08 was around Rs 634 billion.• 2007 The total fiscal deficit of India (i. while the fiscal deficit was around Rs 1.44 trillion. growth was already getting impacted. In 2008.6% in 2007-08. With the interest rates hardening. the revenue deficit as a percentage of fiscal deficit is close to 50.e.

Inflation peaked at 12% in early August ’08. The Rupee has fallen from 39 to 44.• 2008 Inflation continues to pose a threat. The Indian Rupee has had a surprisingly weak year. India’s growing service sector and manufacturing sector got adversely impacted by a global downturn. However. Recession: India’s growth is not so dependent on growth in the West. . the Indian stock markets have been hit by the global crisis.

. The food price inflation. Situation was controlled in this year. This food price inflation hits the poorest the hardest and threatens to widen the gulf of inequality that exists in India.9% in the year 2009.• 2009 The weakest section of the economy was agriculture which showed growth of just 0. which has touched 15%.

. The food-grain production in the country was 234.1 million tones in 2009-10 and subsequently increased to 232.• 2010-2011 The total expenditure of the government has been reduced from 15.1 million tones in 2010-11.5 million tones in 2008-09 which declined to 218.4% of GDP (2010-11) to 14% of GDP in 2011-12. The Economic Survey 2010-11 says that continued high food inflation is a concern facing the Indian economy and the policy makers. The unemployment rate remains at a level of 8%.

Developed economy.America • 2007 Energy and Environmental Security Conflict and Poverty Competing in a New Era of Globalization Global Imbalances Rise of New Powers Global Health Crisis .

• 2008/2009 Restoring financial stability Recession Exercising smart power Reimagining global trade Navigating China’s rise .

and they are selling off our assets and taking on massive debts to sustain a standard of living they can no longer afford. They import much more than they export. . They are failing even to acknowledge predatory foreign trade practices.• 2011 The United States is facing economic disaster on a scale few nations have ever experienced.

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