View
223
Download
0
Category
Preview:
Citation preview
7/30/2019 20 Years of Economic Reforms in India
1/38
7/30/2019 20 Years of Economic Reforms in India
2/38
7/30/2019 20 Years of Economic Reforms in India
3/38
The basic challenge of ourtime is to ensure that
wealth creation is not only
tempered by equity and
justice but is harnessed tothe goal of removal of
poverty and development
for all.
Dr Manmohan Singh, FM Budget
Speech, July 24 1991
7/30/2019 20 Years of Economic Reforms in India
4/38
Poverty Index of India Wealth Index of India
37% of people in India live below
the poverty line.
Source: Tendulkar Committee
report (Accepted By Planning
commission of India)
Submitted in 2009
55 Indian dollar billionaires
contributing to about 4.5% of total
1210 billionaires across six
continents.
Forbes revised( March 2011
rating)
77% of Indians live on less than
20 rupees a day
Source: Arjun Sengupta Report
(from National Commission for
Enterprises in the Unorganized
Sector)
Submitted April 2009
India has 25 dollar billionaires and
35 near billionaires (with wealth in
the $500 million-$1 billion range)Source: Credit Susie's Global
Wealth report 2010
7/30/2019 20 Years of Economic Reforms in India
5/38
50% of Indians live below the
poverty line.
Source: N.C. Saxena
Committee report
Submitted to govt.
during 2010
India has got
1,080 Ultra High Net worth
Individuals
(HNIs)
(Wealth Strata $50 million-$500
million)
7,800 Loaded HNIs
(Wealth Strata $10 million-$50
million) 12,700 richer HNIs.
(Wealth Strata $5 million-$10
million)
147,400 Just HNIs.
(Wealth Strata $1 million-$5million)
Source: Credit Susie's Global
Wealth
Report 2010
7/30/2019 20 Years of Economic Reforms in India
6/38
645 million poor living under the
Multi- dimensional Poverty Index
(MPI) in India. 421 million of whom are
concentrated in eight North Indian
and East Indian states of Bihar
,Chhattisgarh , Jharkhand, Madhya
Pradesh, Orissa, Rajasthan, UttarPradesh and Bengal, higher than
the 410 million poor living in the
26 poorest African nations
Source: Oxford Poverty and
Human Development Initiative
Submitted 2010
The poorest 10 per cent in India
spent
32.3 per cent less in rural partsthan their
counterparts in urban areas.
This inequality rose to Rs 3,347
when
comparison is made between thetop 10 per cent in the urban and ruralareas.
The wealthiest 10 per cent of the
urban population spent 133 per cent
more on consumption per capita in a
month than its equivalent class inrural areas.
Average per capita expenditure by
households was Rs 1,053.6 in a month
in rural areas and Rs 1,984.5 in urban
parts. (2009-10)
7/30/2019 20 Years of Economic Reforms in India
7/38
80% of India's population
lives on less than $2 a daywhich means a higher
proportion of its population
lives on less than $2 per day
as compared with sub-
SaharanAfrica.
Source: World Bank 2009
Note: Poverty definition in India
varies because of varying
determinants. From calorieintake to per day earning to
overall consumption patterns,
definitions vary
State-wise, Bihar has the
lowest average per capitamonthly household
consumption expenditure,
both rural and urban. It was
Rs 780 in rural Bihar and Rs
1,238 in urban parts. Keralahouseholds had the highest
expenditure on consumption
(Rs 1,835). Maharashtra
topped the list in urban areas
(Rs 2,437). (2009-10)Source: National sample
survey(NSSO)2009-10
7/30/2019 20 Years of Economic Reforms in India
8/38
About 49 per cent of theworld's underweight children,
34 per cent of the world's
stunted children and 46
percent of the world's wasted
children, live in India.
Source: World Health
Organization 2009
390 million Indians nowbelong to the middle class;
one-third of them have
emerged from poverty in the
last ten years. At the current
rate of growth, a majority of
Indians will be middle-class by
2025.
Source: Marvin J. Cetron
200;(Founder of Forecasting
International)Note: Consumer class size
estimate varies from 300
million to 500 million
7/30/2019 20 Years of Economic Reforms in India
9/38
The UNDP HumanDevelopment Index
(HDI) is a comparative
measure of life
expectancy, literacy,
education and
standards of living for
countries worldwide.The position 20 years
down the line has
worsened.
7/30/2019 20 Years of Economic Reforms in India
10/38
Sl No. Year Rank (India)
1 2010 119
2 2005 120
3 2000 102
4 1995 102
5 1990 95
7/30/2019 20 Years of Economic Reforms in India
11/38
Sl No. Countries Rank
1 India 119
2 Sri Lanka 91
3 Namibia 105
4 Uzbekistan 91
7/30/2019 20 Years of Economic Reforms in India
12/38
1991 20112.50% 8.60%
GDP
7/30/2019 20 Years of Economic Reforms in India
13/38
1991 (in Rupees) 2011 (in Rupees)26.5 45.2
FDI
1991-92(in US$ Millions) 2010-11(in US$ Millions)
133 1,274
7/30/2019 20 Years of Economic Reforms in India
14/38
1990-91 2010-11
8.4 % 5.10%
7/30/2019 20 Years of Economic Reforms in India
15/38
7/30/2019 20 Years of Economic Reforms in India
16/38
1991 ( in billion U.S dollar ) 2011( in billion U.S dollar )1.2
(India had just enough to meet
three weeks imports and had
to mortgage gold)
315.72
7/30/2019 20 Years of Economic Reforms in India
17/38
Year Minimum Tax
(In Rupees)
Tax Rate Exemption Limit
(In Rupees)
1991 22000 20 100000
2011 18000 10 180000
1991 2011
1000-1200 range 18678
7/30/2019 20 Years of Economic Reforms in India
18/38
1994 2011
16.50% 5.60%
7/30/2019 20 Years of Economic Reforms in India
19/38
GDP Rate Employment rate from
Agriculture
Other Rate
In 2009-10, the GDP for
agriculture and allied
sectors accounted for 14.6
per cent of the GDP
compared to 15.7 percent
in 2008-09.
The agriculture sector
accounts for about 58
percent of employment in
the country (as per 2001
census). This sector is a
supplier of food, fodder,and raw materials for a vast
segment of industry.
In terms of composition,
out of a total share of 14.6
per cent of the GDP in
2009-10 for agriculture and
allied sectors, agriculture
alone accounted for 12.3per cent followed by
forestry and logging at 1.5
percent and fisheries at 0.8
percent.
1991-92 2010-11
0 1.6
7/30/2019 20 Years of Economic Reforms in India
20/38
To boost agricultural credit flow, the
finance minister announced a highertarget, aiming to take agricultural
credit to R4.75 lakh crore for the next
fiscal from R3.75 lakh crore in the
current fiscal.
"In the last Budget, I had provided an
additional 2% interest subvention tothose farmers who repay their crop
loan on time. In order to provide
further incentive to these farmers, I
propose to enhance the additional
subvention to 3% in 2011- 12,"
Mukherjee said.
As per the National Crime Records
Bureau (NCRB) there are at least 16,196
farmers suicides in India in 2008,
bringing the total since 1997 to 199,132.
At least 17,368 Indian farmers killed them
selves in 2009, the worst figure for
farmer suicides in six years, according to
the data of NCRB.
7/30/2019 20 Years of Economic Reforms in India
21/38
Wheat in million tons
1997-98 2010-11
66.35 84.27
Rice in million tons
1997-98 2010-11
82.54 94.11
7/30/2019 20 Years of Economic Reforms in India
22/38
YEAR OVERALL
LITERACY
RATE(%)
MALE (%) FEMALE (%) GAP IN
LITERACY
RATE (%)
1991 52.21 64.13 39.29 24.84
2001 64.83 75.26 53.67 21.592011 74.04 82.14 65.46 16.68
Year Percentage (91 data not readily
available)
2000 67
2006 61.62
7/30/2019 20 Years of Economic Reforms in India
23/38
YEAR RATIO(OVERALL) 0-6 YEARS
1991 927 945
2001 933 927
2011 940 914
Year Number (early data not readily
available)
2005 4,69,559
2009 5,40,328
7/30/2019 20 Years of Economic Reforms in India
24/38
YEAR RATIO
1997-98 3982007-09 212
YEAR RATIO
1990 80
2009 50
YEAR RATIO
1990 118
2009 64
7/30/2019 20 Years of Economic Reforms in India
25/38
YEAR RATIO
1990 3.8
2009 2.6
1991 2011
14.10% 9.44%
1991 2011
0.60% 67.67%
7/30/2019 20 Years of Economic Reforms in India
26/38
Serial
Number
Food
Items
1993-94 1999-2000 2004-05 2009-10
1. Food total 63.2(%) 59.4(%) 55.0(%) 53.6(%)
Serial
Number
Food
Items
1993-94 1999-2000 2004-05 2009-10
1. Food total 54.7(%) 48.1(%) 42.5(%) 40.7(%)
7/30/2019 20 Years of Economic Reforms in India
27/38
Serial
Number
Items
group
1993-94 1999-2000 2004-05 2009-10
1. Nonfood
total
36.8% 40.6% 45.0% 46.4%
Serial
Number
Items
group
1993-94 1999-2000 2004-05 2009-10
1. Nonfood
total
45.3% 51.9% 57.5% 59.3%
7/30/2019 20 Years of Economic Reforms in India
28/38
Barrack Obama: 9/05/10
Your Prime Minister is our Guru; He called ManmohanSingh during Copenhagen Climate Summit on 9 May
2010.
Yousuf Raza Gilani: PM Pakistan: 12/04/11
Indian Prime Minister Manmohan Singh is a 'sensible
and saner' person who wants to resolve all issues
between the two countries.
Former IAEA chief: Mohamad El Bardei: He is the
model of what a political leader should be. August
18, 2010 (Newsweek)
7/30/2019 20 Years of Economic Reforms in India
29/38
2010: Newsweek ranked him the top political leader
among 10 best heads of states
Forbes on Singh: usually praised as Indias best PM
since Nehru
Asia Money Best FM award: 93 and 94; EuromoneyBest FM Award 94
7/30/2019 20 Years of Economic Reforms in India
30/38
"When I had said during the 2009 Lok Sabha election campaign thatI have seen all the prime ministers since Jawaharlal Nehru but I feel
pity for Prime Minister Manmohan Singh because I have never seen
such a weak prime minister, many people said that I should not say
this because many people feel bad about it," said Advani whileaddressing a mammoth rally in Kolkata.
"The PM had said from the Red Fort that prices would be controlled
within 100 days. InMarch again, he said price rise would be brought under control.
Today he is saying that he does
not have a magic wand to control prices.... Why do you make the
promise if you can't act on
them?" he asked.
7/30/2019 20 Years of Economic Reforms in India
31/38
The Bharatiya Janata Party has said that the United Progressive
Alliance government was like a private company, where Prime
Minister Manmohan Singh was the CEO while its owner was
"somebody else."
Narender Modi: 14/04/11 Ambedkarji gave us the Constitution,
and the Constitution gave us the right to vote. To know that the
Prime Minister did not vote in the assembly polls is a verysaddening act, for the people of the country, he said.
7/30/2019 20 Years of Economic Reforms in India
32/38
Sector Status
Inflation Manmohan Singh now says that
inflation will come downto 6.5 per cent by March 2012. In July
last year the finance minister asserted:
I do believe that annual rate of
inflation will be 5-6 per cent by end of
2010. The Prime Minister told the NDC
that inflation would dip to 6 per
cent by December 2010.
Fuel Inflation Acceleration in fuel inflation has
affected the UPA cause.
7/30/2019 20 Years of Economic Reforms in India
33/38
GST (Goods and Services Tax) UPA government still looking for
consensus of state
governments on GST.
FDI in Retail Secretaries committee preparing cabinetnote
Banking/Financial Sector No consensus yet within thegovernment.
7/30/2019 20 Years of Economic Reforms in India
34/38
Year Contents
1991-92 Manmohan Singh as Finance Minister , rupee devalued 18% about 80
% industries delicensed, disinvestment starts , mops up Rs 3,000 crore ,
fertilizer price hikes to reduce sops, 51 % of FDI allowed in important
sectors.
1992-93 FM Manmohan Singh; I-T rates , slab cut , wealth tax on productive
assets off, excise shifted from specific duty to ad valorem .Many import
curbs lifted : customers duties cut , peak tariffs down to 110%, ONGCcorporatized , govt cuts stake in Maruti to 50% , private sector enters
value added telecom , private equity in roads , oil refining.
1993-94 FM Manmohan Singh Excise slabs merged, dual exchange rates
merged, capital gains tax on FIIs cut, SBI enters IPO market , cars white
goods deli censed, power projects get tax breaks , disinvestment flops
1994-95 FM Manmohan Singh Bulk drugs deli censed, 51% of FDI allowed,
divestment increases to Rs 5, 000 crore , pvt players in telecom , first
cell services in metro , telecom bids attract Rs 100,000 crore run into
trouble , Enron enters Maharashtra , first private airlines : Jet , East
West , Damania.
7/30/2019 20 Years of Economic Reforms in India
35/38
1995-96 FM Manmohan Singh
First foreign carmaker, Daewoo, makes Cielo , Trail set up : disinvestment
flops : SBI lists overseas . Kelkar draws up 7-year oil deregulation plan.
1996-97 FM Chidambaram
Corporate surcharge cut to 7.5% ; import duties cut 48 industries can get 51%
automatic FDI. Consumer electronics delicensed . Disinvestment
Commission set up.
1997-98 FM P.Chidambaram
IT slashed from 40% to 30% , corporate tax rate cut , tax breaks go , MAT in,
dividened tax on individuals off, tax breaks for telecom , power , oil
exploration . more industries got automatic FDI, NRIs can invest 100% in
private sector, fixed interest rate regime relaxed, telecom licenses tradable,
RBI gets power to regulate NBFCs after CRB scam
1998-99 FM : Yashwant Sinha Saral , IT import duties cut , tax holiday for tech
sector , free import for 340 things : QRs on Saarc imports go .
7/30/2019 20 Years of Economic Reforms in India
36/38
1999-
2000
FM : Yashwant Sinha
Excise slabs cut from 11 to 3, customs cut from 7 to 5 , customs duty cut ,
housing taxes liberalized, QRs liberalized on 13,000 things, IRDA legislated,
FEMA replaces FERA, disinvestment flops, Modern foods privatized.
2000-01 FM : Yashwant Sinha
Cenvat hikes effective taxes, customs duty up, export tax breaks to be
phased out, QR regimes ends, IRDA sets norms for pvt insurers, 11 players
enter , disinvestment flops: Maruti to be privatized, Orissa begins power
reforms
2001-02 FM : Yashwant Sinha
Cell players challenge decision to let WLL go mobile, Ministry of
disinvestment formed, Balco, VSNL, IPCL , hotels go on the black . Highway
project renamed golden quadrilateral
2002-03 FM : Yashwant Sinha
Incentives to private highway project developers, row over decision to sell
BPCL , HPCL, selloffs staffed, Delhi power distribution privatized , 20 year
plan to link rivers.
7/30/2019 20 Years of Economic Reforms in India
37/38
2003-04 FM:Jaswant Singh
I-T rates cut marginally , excise cuts drop prices on cars , ACs ,
customs rate cut : small savings rate cut , Unified telecom license ,
Reliance , ONGC , Caim make oil and gas discoveries , PSU equity
sales net Rs 15, 000 cr, privatization off.
Sector (2004-11) Status
MGNREGA Flagship job guarantee scheme: During financial year 2010-11, the
scheme has provided employment to more than 5.3 crorehouseholds through about 50lakh works. But charges of
mismanagement abound
NRHM The National Rural Health Mission (NRHM) has made remarkable
progress in strengthening healthcare delivery systems in the country.
Leakages and loot under the scheme charges occur in states.
Corporate
Governance
Reforms
MCA21 e-Governance project was implemented as a
mission mode project under the National e-Governance Plan (NeGP)
for operation from 20-registry locations for facilitating business, and
reducing documentation to the minimum.
7/30/2019 20 Years of Economic Reforms in India
38/38
Micro, Small and
Medium
Enterprises
PM chairs a committee to make micro small and
medium enterprises the cornerstone of Indian
economy; task force recommendations under
consideration
Peoples ownership of
public sector enterprises
CMP and Congress manifesto wants retail investor to be
the key beneficiary of the PSU divestment through IPO;
facts on ground suggest retail investors got only 24 per
cent share, even lesser than what they got from private
sector IPO listings during UPA regime
New telecom services Auction of 3G and broadband wireless access (BWA)
spectrum was done successfully. 2G scam continues to
haunt the govt. for licenses it gave in 2006 and 08
Mines A Mines and Minerals (Development and Regulation)
Bill, 2011 has been drafted to replace the existing Mines
and Minerals (Development and Regulation) Act, 1957
Recommended