INDIA IS SHINING OR DECLINING ???

Submitted To:
Prof. Rashi Aggarwal

Presented By:
Monika Chauhan Manjeet Kaur

Vivek Jaiswal
Amit Kumar Nag Ajeya Dixit

INDIA IS SHINING: WHY???

Annual GDP: India averaged 8% annual GDP growth in the three years before the recent global financial crisis. Population : Strength of more than a billion people, India is now the 11th largest economy in the world. Per Capita Income: Gone up 11.7 per cent to Rs 5,729 per month in 2012-13 at current prices, compared with Rs 5,130 in the previous fiscal. Specialty:Acc. to BRICS--India boasts of entrepreneurship ,

innovation,& Global IT services industry.

Strength : Indian youth and business people are bullishly confident of a bright future in India History: In June 1991, previous finance minister Manmohan Singh, passed widespread reforms that liberalized and opened Indias economy to the world.

SHINING
Growth: Number of PhDs awarded up 49 per cent in three years 12 FDI proposals approved worth Rs 343.99 crore Seventeen new airports proposed FDI into India rises 24 per cent to US$ 3.95 billion in April-May 2013 SEZ exports stood at Rs 1.3 lakh crore in first quarter of 2013-14

Un employment Rate:8.5% (2012 est.), 9.8% (2011 est.). Agriculture products : Rice, wheat, oilseed, cotton, jute, tea, sugarcane, lentils, onions, potatoes, dairy products, poultry, fish Industries: textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, software, pharmaceuticals Service sector : Continuing to grow and perform well. Indias monetary policy has proved extremely resilient, and helped carry India through from the financial crises until now.

INDIAN ECONOMY IS DECLINING . WHY????

Poverty Rate: As per Indias Planning Commission, a decline in the poverty rate with 37.2% in 2005 to 29.8% in 2010, a drop of 40 million people in the absolute number of the countrys poor. Inflation Rate: 9.3% (2012 est.), 8.9% (2011 est.). GDP growth : Slowed to 6.3% in 2011-12; the worst it has been in 9 years, and the first quarter of 2012 India grew a measly 5.3%, which included food inflation at between 15-25%.

Rupee: The Rupee has been in a sharp decline, decreasing by 25% in value of the past six months to become one of the worst performing currencies in the international market.
Taxes: India is in desperate need of reform of its tax laws. 9.3% of GDP (2012 est.) India is feeling significant strains on its fiscal budget. India is in urgent need of reform on Foreign Direct investment (FDI) rules, particularly in its retail sector.

Agriculture: Indian Commerce Minister Anand Sharma asserted that 30% of agricultural produce does not reach the market, and of the remaining 70%, more than 50% is lost due to poor transportation and storage technology. Infrastructure :According to the consulting firm Mckinsey, India is suffering a shortfall of $190 billion in the infrastructure sector and is in urgent need of capital. Bills & Taxes : Bills on subsidy reduction, tax reform, land acquisition reform, and FDI reform all exist, but a divided parliament is unable to pass such bills, and continues to be laborious and indecisive Problem : The biggest symbol of the political paralysis has been the attempt to raise the cap for FDI in the retail industry.

Grading: Standard & Poor recently announced, in a special report, that India is in serious risk of being downgraded from its current BBB+ to BBB-.
This downgrade is mainly connected to Indias slowing economic growth and weakening fiscal profile.

Stock Marketing: The BSE 30-share index is off 18.06% year-todate, worse than the stock markets of other BRICS economies. Interest Rate: India's finance ministry released a statement showing that rising interest rates in part caused industrial growth to drop to 5% in 2012 - 2013, from 8.8% a year ago. Foreign investors : Have only $530 million in Indian equities this year, compared with $28.9 billion a year ago, according to the Securities and Exchange Board of India (SEBI). Pulling Out Money: Foreign investors have been pulling out of the country all year as India continues to struggle with inflation, and investors continue to pick safe heavens. Export nations: like China, Indian exports only account for 10% of GDP.

SOURCES

http://www.ibef.org/industry/infrastructure-sectorindia.aspx http://www.financialexpress.com/news/why-indiasexports-are-faltering/1136281 http://data.worldbank.org/country/india http://data.worldbank.org/topic http://www.indiatimes.com/news/india/indias-per-capitaincome-rises-to-rs-5729_-59790.html