logging in or signing up economic policy and Indian economy sonasanty Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 2491 Category: Business & Fin.. License: All Rights Reserved Like it (23) Dislike it (1) Added: August 13, 2010 This Presentation is Public Favorites: 2 Presentation Description It tells about how economic policy effects the economy. LANGUAGE -ENGLISH Comments Posting comment... By: zishu83 (16 month(s) ago) nice work Santosh :) Saving..... Post Reply Close Saving..... Edit Comment Close By: arifpatel (16 month(s) ago) hi nice prez,it is really great Saving..... Post Reply Close Saving..... Edit Comment Close By: santhoshlky (18 month(s) ago) nice presentation can i get a copy pls Regards, santosh_k48@yahoo.com Saving..... Post Reply Close Saving..... Edit Comment Close By: rothdu (18 month(s) ago) Hi Nice prez can u mail me pramilarawat05@gmail.com Thanks Saving..... Post Reply Close Saving..... Edit Comment Close By: khalsagagan (19 month(s) ago) nice presentation can i get a copy pls Regards, singh1830@gmail.com Saving..... Post Reply Close By: jp12340 (1 month(s) ago) plz send me this ppt on geetavachhani@gmail.com plzzz Saving..... Edit Comment Close loading.... See all Premium member Presentation Transcript ECONOMIC POLICY AND INDIAN ECONOMY : ECONOMIC POLICY AND INDIAN ECONOMY *Presented By* Santosh Kumar MA (Eco) Course Code - PG (Jan 2009) Enrollment No. – 0911002280 IMT Ghaziabad Study Centre - Guwahati What is economic policy ? : What is economic policy ? Economic policy deals with industrial policy, Business law, taxation, Banking law & Trade law with all other concerning economic activity of a country. Business law is a essential part of economic policy :- : Business law is a essential part of economic policy :- Because it deals with – Company law Contract law Law of bailment, Guarantee, Agency etc Consumer protection act MRTP, FEMA Copy right, Patent law & IT law Hence business law creates business environment Efficient utilization of bureaucracy & business law further promotes economy Economic policy decides nature of control & thus – Type of economy : Economic policy decides nature of control & thus – Type of economy Free market economy- Capitalism- private companies. Full government controlled economy-socialism/communism-public companies. Mixed economy-private + public (India) * Private + public company may co-exist in different segment. * Private + public companies may participate in joint venture. Tools for economic policy : Tools for economic policy Budget Tax law Business law Trade policy Banking law & various bank rate Investment policy Capital market Trends of international economic environment & Indian economy : Trends of international economic environment & Indian economy Whose economic structure doesIndia most closely resemble? : Whose economic structure doesIndia most closely resemble? (Percentage of GDP) China India USA Services 40.0% 60.7% 78.6% Industry 48.1% 19.3% 20.4% Agriculture 11.9% 19.9% 0.9% Changes in economic policy & growth rate : Changes in economic policy & growth rate Since independence India followed democratic socialism- Growth rate - 1951-56 - 3.6% War period - 1961 -66 - 2.5% Always remains below - 5% 1991 onwards liberalized economic policy 8th plan 1992-97 - 6.7% growth rate and then afterwards always remains more than 5%. In 2008 India was world’s second fastest growing major economy even in world slowdown-2009 - growth rate 6.1% Composition of Indian economy in respect of GDP : Composition of Indian economy in respect of GDP 54% service industry account in country GDP that provide 28% employment. 29% industrial segment account in country GDP that provide 12% employment. 17% agriculture segment account in country GDP that provide 60% employment. India’s trade has a share of 24% of GDP in 2006. Indian trade is 1.5% of world trade in 2007. Growth Accounting: Sectoral : Growth Accounting: Sectoral Slide 11: 11 India: Fastest Growing Free Market Democracy Source: Times of India, RBI, DIPP, Indian Budget, Rediff * Annualized data used to show comparison with 1990 Slide 12: India: Among the Top-15 Countries in terms of GDP at constant prices The Indian economy has witnessed unprecedented growth…. Booming services and industry sectors are providing the required impetus to economic growth Contribution of Services - increased from 48 percent to 55 percent Growth in sectors at Current Prices (2007-08): Industry: 10.7% Services: 8.9% Agriculture: 2.6% Source: MOSPI Statistics AE - Advance Estimates Fastest GDP growth of 9.4 percent in 2006-07, since last 18 years (at constant prices) India’s GDP has witnessed high growth, and was the second fastest growing GDP after China in 2006-07 The sound performance of each industry segment is leading to the overall robust performance of the Indian economy New trends of Indian market that are important for companies : New trends of Indian market that are important for companies Hire purchase Telemarketing Direct shopping Plastic card purchasing Inclination towards modern lifestyles Indian economic policy may be divided in two stages : Indian economic policy may be divided in two stages First stage:-1947-1991 Democratic socialism Controlled economy Second stage:- 1991 onwards Liberalized economic policy Competitive economic environment Main point of first stage 1947-1991 : Main point of first stage 1947-1991 Red tepees Slower growth rate Government established big industries Green revolution Bureaucracy interference Soviet model of development Nationalization Major points of second stage-1991 onwards : Major points of second stage-1991 onwards Reduction in bureaucratic interference Liberalized license policy Compulsory license for industry-06 Encouragement of private companies Public sector reserved industries-03 Higher growth rate Fastest growth in service sector Cheaper consumer goods and services (like airlines and telecommunication) Current major economic challenges in India : Current major economic challenges in India Growth with economic estability Food inflation Growth with regional equity Inclusive growth Unemployment Slide 18: Deficit financing (currently 10.3% of GDP) Lower per capita income (1070$-143th in world) 80% population lives on less than 2$ PPP 40% children under the age of 3 are underweight Political hurdle in implementing economic policy. How we can drive Indian economy : How we can drive Indian economy Abolish red tapism Reduce unnecessary interference of bureaucracy Reduce fiscal deficit Economic policy should more in regulated nature than controlled Slide 20: Market should be made competitive Growth with equity both in respect of region and class necessary Improvement in quality of workforce Improvement in infrastructure Industrialization should not be hampered for political advantages In current socio-economic scenario the motto of economic policy should be : In current socio-economic scenario the motto of economic policy should be Economic growth must be inclusive Economic policy should be environment friendly The economic policy should such that it should be more regulated and less controlled but with greater vigilance & transparency Neglected sector should be taken care of by government Social security and social welfare system must be taken care of by government THE END : THE END You do not have the permission to view this presentation. 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economic policy and Indian economy sonasanty Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 2491 Category: Business & Fin.. License: All Rights Reserved Like it (23) Dislike it (1) Added: August 13, 2010 This Presentation is Public Favorites: 2 Presentation Description It tells about how economic policy effects the economy. LANGUAGE -ENGLISH Comments Posting comment... By: zishu83 (16 month(s) ago) nice work Santosh :) Saving..... Post Reply Close Saving..... Edit Comment Close By: arifpatel (16 month(s) ago) hi nice prez,it is really great Saving..... Post Reply Close Saving..... Edit Comment Close By: santhoshlky (18 month(s) ago) nice presentation can i get a copy pls Regards, santosh_k48@yahoo.com Saving..... Post Reply Close Saving..... Edit Comment Close By: rothdu (18 month(s) ago) Hi Nice prez can u mail me pramilarawat05@gmail.com Thanks Saving..... Post Reply Close Saving..... Edit Comment Close By: khalsagagan (19 month(s) ago) nice presentation can i get a copy pls Regards, singh1830@gmail.com Saving..... Post Reply Close By: jp12340 (1 month(s) ago) plz send me this ppt on geetavachhani@gmail.com plzzz Saving..... Edit Comment Close loading.... See all Premium member Presentation Transcript ECONOMIC POLICY AND INDIAN ECONOMY : ECONOMIC POLICY AND INDIAN ECONOMY *Presented By* Santosh Kumar MA (Eco) Course Code - PG (Jan 2009) Enrollment No. – 0911002280 IMT Ghaziabad Study Centre - Guwahati What is economic policy ? : What is economic policy ? Economic policy deals with industrial policy, Business law, taxation, Banking law & Trade law with all other concerning economic activity of a country. Business law is a essential part of economic policy :- : Business law is a essential part of economic policy :- Because it deals with – Company law Contract law Law of bailment, Guarantee, Agency etc Consumer protection act MRTP, FEMA Copy right, Patent law & IT law Hence business law creates business environment Efficient utilization of bureaucracy & business law further promotes economy Economic policy decides nature of control & thus – Type of economy : Economic policy decides nature of control & thus – Type of economy Free market economy- Capitalism- private companies. Full government controlled economy-socialism/communism-public companies. Mixed economy-private + public (India) * Private + public company may co-exist in different segment. * Private + public companies may participate in joint venture. Tools for economic policy : Tools for economic policy Budget Tax law Business law Trade policy Banking law & various bank rate Investment policy Capital market Trends of international economic environment & Indian economy : Trends of international economic environment & Indian economy Whose economic structure doesIndia most closely resemble? : Whose economic structure doesIndia most closely resemble? (Percentage of GDP) China India USA Services 40.0% 60.7% 78.6% Industry 48.1% 19.3% 20.4% Agriculture 11.9% 19.9% 0.9% Changes in economic policy & growth rate : Changes in economic policy & growth rate Since independence India followed democratic socialism- Growth rate - 1951-56 - 3.6% War period - 1961 -66 - 2.5% Always remains below - 5% 1991 onwards liberalized economic policy 8th plan 1992-97 - 6.7% growth rate and then afterwards always remains more than 5%. In 2008 India was world’s second fastest growing major economy even in world slowdown-2009 - growth rate 6.1% Composition of Indian economy in respect of GDP : Composition of Indian economy in respect of GDP 54% service industry account in country GDP that provide 28% employment. 29% industrial segment account in country GDP that provide 12% employment. 17% agriculture segment account in country GDP that provide 60% employment. India’s trade has a share of 24% of GDP in 2006. Indian trade is 1.5% of world trade in 2007. Growth Accounting: Sectoral : Growth Accounting: Sectoral Slide 11: 11 India: Fastest Growing Free Market Democracy Source: Times of India, RBI, DIPP, Indian Budget, Rediff * Annualized data used to show comparison with 1990 Slide 12: India: Among the Top-15 Countries in terms of GDP at constant prices The Indian economy has witnessed unprecedented growth…. Booming services and industry sectors are providing the required impetus to economic growth Contribution of Services - increased from 48 percent to 55 percent Growth in sectors at Current Prices (2007-08): Industry: 10.7% Services: 8.9% Agriculture: 2.6% Source: MOSPI Statistics AE - Advance Estimates Fastest GDP growth of 9.4 percent in 2006-07, since last 18 years (at constant prices) India’s GDP has witnessed high growth, and was the second fastest growing GDP after China in 2006-07 The sound performance of each industry segment is leading to the overall robust performance of the Indian economy New trends of Indian market that are important for companies : New trends of Indian market that are important for companies Hire purchase Telemarketing Direct shopping Plastic card purchasing Inclination towards modern lifestyles Indian economic policy may be divided in two stages : Indian economic policy may be divided in two stages First stage:-1947-1991 Democratic socialism Controlled economy Second stage:- 1991 onwards Liberalized economic policy Competitive economic environment Main point of first stage 1947-1991 : Main point of first stage 1947-1991 Red tepees Slower growth rate Government established big industries Green revolution Bureaucracy interference Soviet model of development Nationalization Major points of second stage-1991 onwards : Major points of second stage-1991 onwards Reduction in bureaucratic interference Liberalized license policy Compulsory license for industry-06 Encouragement of private companies Public sector reserved industries-03 Higher growth rate Fastest growth in service sector Cheaper consumer goods and services (like airlines and telecommunication) Current major economic challenges in India : Current major economic challenges in India Growth with economic estability Food inflation Growth with regional equity Inclusive growth Unemployment Slide 18: Deficit financing (currently 10.3% of GDP) Lower per capita income (1070$-143th in world) 80% population lives on less than 2$ PPP 40% children under the age of 3 are underweight Political hurdle in implementing economic policy. How we can drive Indian economy : How we can drive Indian economy Abolish red tapism Reduce unnecessary interference of bureaucracy Reduce fiscal deficit Economic policy should more in regulated nature than controlled Slide 20: Market should be made competitive Growth with equity both in respect of region and class necessary Improvement in quality of workforce Improvement in infrastructure Industrialization should not be hampered for political advantages In current socio-economic scenario the motto of economic policy should be : In current socio-economic scenario the motto of economic policy should be Economic growth must be inclusive Economic policy should be environment friendly The economic policy should such that it should be more regulated and less controlled but with greater vigilance & transparency Neglected sector should be taken care of by government Social security and social welfare system must be taken care of by government THE END : THE END