20 Years of Economic Reforms in India

7/30/2019 20 Years of Economic Reforms in India

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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


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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


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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


million) 12,700 richer HNIs.


million)

147,400 Just HNIs.

(Wealth Strata $1 million-$5million)

Source: Credit Susie's Global

Wealth

Report 2010


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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)


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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


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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


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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.


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Sl No. Year Rank (India)

1 2010 119

2 2005 120

3 2000 102

4 1995 102

5 1990 95


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Sl No. Countries Rank

1 India 119

2 Sri Lanka 91

3 Namibia 105

4 Uzbekistan 91


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1991 20112.50% 8.60%

GDP


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1991 (in Rupees) 2011 (in Rupees)26.5 45.2

FDI

1991-92(in US$ Millions) 2010-11(in US$ Millions)

133 1,274


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1990-91 2010-11

8.4 % 5.10%


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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


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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


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1994 2011

16.50% 5.60%


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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


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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.


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Wheat in million tons

1997-98 2010-11

66.35 84.27

Rice in million tons

1997-98 2010-11

82.54 94.11


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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


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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


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YEAR RATIO

1997-98 3982007-09 212

YEAR RATIO

1990 80

2009 50

YEAR RATIO

1990 118

2009 64


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YEAR RATIO

1990 3.8

2009 2.6

1991 2011

14.10% 9.44%

1991 2011

0.60% 67.67%


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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(%)


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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%


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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)


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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


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"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.


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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.


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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.


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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.


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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.


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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 .


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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


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


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.


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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.


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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

Documents

20 Years of Economic Reforms in India