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Development Dynamics of
Indian Economy since 1947(With special reference to Rural India)
Shashi Kant, Associate Professor,
PGGCG11, CHD
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INDIA CHINA JAPAN U.S.A EUROPE REST OF THE WORLD1AD
1500AD1820AD
1870AD
1950AD
2008AD
33
2515
12
4
6
27
2533
17
5
13
1
33
2
3
7
0
02
9
28
21
14
2127
38
31
19
25
2620
22
29
34
Source : The Economic Times , Jan 29, 2008
Percentage Share Of World
GDP
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0
1
2
3
4
5
67
1757-1947 1951-81 1981-91 1991-2001 2001-09
Average Growth Rate
Average Growth Rate
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Concentration of Income & Expenditure
in IndiaTop 20 cities in India Account for1. 10% of Indias Population2. 20% of Indias Expenditure
3. 30 % of Indias Income4. 60 % of Indias Surplus Income
Out of 20% top rich in India53% live in these T-20 cities
30% in other cities12% in rural areas
As per data in NCAERFuture Capital Researchs The next urban frontier:Twenty cities to watch, quoted from Financial Express, Oct 2,2010 P9
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Increasing growth rate, but for whom?
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The transport of the
common man remainsunder developed
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Year Percentage
1998-99 47
2005-06 46
Malnourished Children in India
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Power guzzling
malls, fastemerging malls
more than 2 lakh villages inIndia without power
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Year Production in lakhs/year
2008-09 21.662009-10 34.74
2011-12 47.5 (projected)
Source: Business Line, July 18, 2010 Pg 1
Production of Passenger Vehicles in India
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The water table in Rajasthan has been
falling for years, and Coca-Cola which
receives a virtually free and unlimitedwater supply from the government
has been blamed for intensifying
drought conditions, that have made
times very difficult for farmers
throughout the region.
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Increasing Disparities Post Globalisation in India
Percentage ofPopulation
Percentage Share in National Income
1993 94 2009-10
Top 20% 36.7 53.2Bottom 60% 38.6 27.9
As per study conducted by National Council of Applied Economic Research(NCAER) quoted from Business Line, Sept 07, 2010 P8 from an article by
S.D. Naik, We are poorer than we thought
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Percentage of People Below Poverty Line in India
Author/Agency Percentage Below Poverty lineIndia Rural Urban
PlanningCommission
27.5 28.3 25.7
Tendulkar
Committee
37.2
(Starvation Line)
41.8 25.7
NewMultidimensional
poverty Index(MPI)
(UNDP & Oxford
University, July 10)
55.0(64.5 crore*)
NA NA
Source: Business Line; Sept 7, 2010 P8
*Out of these 42.1 crore poor reside in eight poorest states (Bihar,Chhatisgarh, Jharkhand, MP, Orissa, Rajasthan, UP & WB.
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Average GDP Growth Rates of Agriculture and Other Sectors at
1999-2000 prices (per cent)
Period TotalEconomy
Agriculture andAllied
Pre-Green Revolution 1951-52 to 1967-68 3.7 2.5
Green RevolutionPeriod
1968-69 to 1980-81 3.5 2.4
Wider TechnologyDissemination Period
1981-82 to 1990-91 5.4 3.5
Early Reforms Period 1991-92 to 1996-97 5.7 3.7
Ninth and Tenth Plan 1997-98 to 2006-07 6.6 2.5
Source : Govt. Of India, Economic Survey, 2007-08(New Delhi 2008) Table 7.1 , Pg 115
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Gross Capital Formation in Agriculture
Year Total Investment inAgriculture (Rs. Crore)
Public SectorInvestment in
agriculture (Rs. Crore)
Share of Public sectorinvestment in total
investment in agriculture(per cent)
Series at 1993-94 prices
1990-91 14,836 4,395 29.6
Series at 2004-05 prices
2004-05 78,848 16,183 20.5
2008-09 1,38,597 24,452 17.6
Source : Govt. Of India, Economic Survey, 2006-07, 08-09, 09-10.
Agricultural Statistical at Glance, 2008
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Real beneficiaries of Globalisation
Name of ForeignCompany
Year ofIncorporatio
n in India
CapitalBroughtRs. Lakh
Paid upCapital(2010-11)Rs. Cr.
Sales(2010-11)Rs. Cr.
Net Profit(2010-11)Rs. Cr.
HindustanUnilever Limited
1933 24 221.26 17501.7 2105.9
Philips India 1956 10 70.30 2890.6 190.30
Colgate Palmolive 1937 1.5 13.60 1962.5 421.0
Novartis India 1947 48.75 15.98 623.9 116.2
Pfizer India 1947 5 29.84 876.4 162.2
Multiple Sources
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Some Important Indicators :
Future Of Globalisation1990-91 2009-10
Current A/c Balance/GDP -3.69% -3.3%
Combined Debt of
Central & State Govt. as% of GDP
64.7%(Rs. 3,68,824 crore) 76.6%(Rs. 44,85,955 crore)
Gross fiscal Deficit/GDP 7.8% 6.7%
External debt/GDP 23% 21.9% (2008-09)
Inflation rate (WPI) 10.3% 10.0%+
Imports of Petroleum oils& lubricants
$6.03 b (25% of total imports) $91.3 b (30.1% of total imports)Fig of 08-09
Foreign exchangeReserves
$1.1 b $283.5 b (End Dec 2009)
Source : Different Economic Surveys (GOI, New Delhi)
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