Economy of India

Economic System

Mixed economy that is moving away from a command system

India did not gain independence until 1947, when it set up a command economy

In 1991, India lifted its some of its government control and allowed private companies a role in industries

These reforms have helped boost the economy, but millions still live in poverty

India’s Investment

Human Capital! Investing in schools

at the high school and university level

Overall literacy rate is 60%

Literacy rate among children 10 to 14 is 95% What do you think

this means?

Learning English

What is the largest English speaking nation in the world? India!

http://www.youtube.com/watch?v=DLwSjvcNFis

Outsourcing

India has become skilled in information technology and telemarketing (call dell)

American companies are hiring Indian workers Customer service and

technology help desks Companies can pay

Indians lower wages than American workers

Lack of Investment

India has neglected capital investment in infrastructure

Roads, airports, railways, sewage systems, and power plants are in bad shape

Resources

Abundant water supply and fertile land

Rice and wheat Coal in

mountainous areas

Lots of forests

Entrepreneurs

High rate of entrepreneurship

Government supports business owners with training and facilities

Low taxes encourage entrepreneurs

India’s EconomyWhat to produce?

(Some private sector domestic and foreign businesses.

Mostly subsistence agricultureLots of corruption in setting up and operating business.

How to produce? workforce is more educated now than in the pastengineering and computer science.Corrupt tax system makes operating a business in India difficult.

For whom to produce? Food production is for people of India (mainly for their own

family)

software and business process outsourcing industries expanding markets for private Indian companies.

Command Market$

India

Federal Republic of India(Federation)

a national government as well as 28 state governments

President and a Prime Minister.

the leader of each state legislature's majority is appointed governor by the president

Citizens over 18 of each state elect state legislatures

Largest democracy in the world (parliamentary)

What is India’s distribution of power?

a national government as well as 28 state governments

President and a Prime Minister.

the leader of each state legislature's majority is appointed governor by the president

Citizens over 18 of each state elect state legislatures

What is India’s citizen participation?

FEDERATION

Parliamentary Democracy

What are the leadership, voting rights, and personal freedoms in the India?

Federal Republic of India(Federation)

a national government as well as 28 state governments

President and a Prime Minister.

the leader of each state legislature's majority is appointed governor by the president

Citizens over 18 of each state elect state legislatures Largest democracy in the

world (parliamentary)