ECONOMIC DEVELOPMENT OF INDIAN AFTER LIBERALIZATION IN 1991

ABHISHEK MANGARAJ ABHISHEK D ANKURA SHIVARAAM

Introduction

What is liberalization? What is economic development? What is economical growth?

WHY THE POST 1990 REFORMS?

Lack of centralized economic planning Inability to address the fundamental issues of economy Inabilities to fight against crisis Intolerable high rate of inflation

Although the economy was finally liberalised in 1991, two decades had been lost to ideological dogma and personal expediency .

The most important thing that has changed post liberalisation.

POST LIBERALIZATION AND CONTRIBUTIONS OF EACH SECTOR

Name of the Statistics Sector
Automobile Textile 28% of GDP,14% of work force 20% of manufacturing output providing employment to over 20 million people 13th in the world,provides employment to 23% of work force, growth rate of 7.5% up from 4.5% in1951-80, largest share in GDP 55% up from15% in 1950

Examples
Tata motors, Mahindra Vimal, Bombay dyeing TCS, Wipro, Infosys

I.T

Name of the Sector Organized retail Agriculture

Statistics 24% of market as of 2008 2nd in the world market for farm output, accounts for 15.7% of GDP, employs 52.1%, 30% to 50% of the average yield of world Total bank deposits increased from Rs.5910 in197071 to Rs.3830922 crores in2008-09, gross domestic saving in2006-07 as a % of GDP stood at high of 32.7% Holding of public sector bank @ 75%,private sector banks@18.5% and foreign banks@6.5%

Examples Future group

Banking and finance

S.B.I,ICICI,HDFC

Energy and power

Total oil reserve stood at 775 million tons and gas reserve stood at 1074 billion cubic meters Forth largest consumer in world and imported $82.1 billion worth of oil in the first 3 quarters of 2010

ON GOING ECONOMIC CHALLENGES

Problems in the agricultural sector. Failing education Inflation in basic consumable goods. Corruption High fiscal deficit

LATEST STATISTICS OF 2010-2011

Economy growth 8.6% in 2010-11; 9% in 2011-12 Inflation 7% by March 2011 Agriculture sector growth 5.4%, Industry at 8.1% and services 9.6% for FY2010-11 Fiscal deficit to come down to 5.2% in FY11 Exports estimated to increase to $230 billion for FY2010-11

Current account deficit - 3% of GDP Capital inflows projected at $64.6 billion for FY2010-11 Investment rate expected to be 37%

THE NEXT GENERATION OF REFORMS

The following are ten recommended areas of special focus in the second generation of economic reforms: 1. Political Reforms for Good Governance; 2. Re-engineering the Role of the government; 3. Administrative and Legal Reforms; 4. Strategic Management of the Economy with a focus on knowledge based HRD Activities; 5. Fiscal Prudence

6. Agricultural Sector Reforms; 7. Industrial Restructuring; 8. Labour Sector Reforms; 9. Foreign Trade and Outward Investment Policies; 10. Financial Sector Reforms

THANKYOU