Development Dynamics of Indian Economy since 1947 With

Development Dynamics of Indian Economy since 1947 (With special reference to Rural India)

Percentage Share Of World GDP INDIA 1 AD 1500 AD 1820 AD 1870 AD 1950 AD 2008 AD 33 25 15 12 4 6 CHINA 27 25 33 17 5 13 JAPAN 1 3 3 2 3 7 U. S. A 0 0 2 9 28 21 Source : The Economic Times , Jan 29, 2008 EUROPE 14 21 27 38 31 19 REST OF THE WORLD 25 26 20 22 29 34

Average Growth Rate 7 6 5 4 Average Growth Rate 3 2 1 0 1757 -1947 1951 -81 1981 -91 1991 -2001 -09

Concentration of Income & Expenditure in India Top 20 cities in India Account for 1. 10% of India’s Population 2. 20% of India’s Expenditure 3. 30 % of India’s Income 4. 60 % of India’s Surplus Income Out of 20% top rich in India 53% live in these T-20 cities 30% in other cities 12% in rural areas As per data in NCAER – Future Capital Research’s – The next urban frontier: Twenty cities to watch, quoted from ‘Financial Express’, Oct 2, 2010 P 9

Increasing growth rate, but for whom?

The transport of the common man remains under developed…

Malnourished Children in India Year Percentage 1998 -99 47 2005 -06 46

Power guzzling malls, fast emerging malls… …more than 2 lakh villages in India without power

Production of Passenger Vehicles in India Year Production in lakhs/year 2008 -09 21. 66 2009 -10 34. 74 2011 -12 47. 5 (projected) Source: Business Line, July 18, 2010 Pg 1

The water table in Rajasthan has been falling for years, and Coca-Cola — which receives a virtually free and unlimited water supply from the government — has been blamed for intensifying drought conditions, that have made times very difficult for farmers throughout the region.

Increasing Disparities Post Globalisation in India Percentage of Population Top 20% Bottom 60% Percentage Share in National Income 1993 – 94 36. 7 38. 6 2009 -10 53. 2 27. 9 As per study conducted by National Council of Applied Economic Research (NCAER) quoted from Business Line, Sept 07, 2010 P 8 from an article by S. D. Naik, ‘We are poorer than we thought’

Percentage of People Below Poverty Line in India Author/Agency Percentage Below Poverty line India Rural Urban Planning Commission 27. 5 28. 3 25. 7 Tendulkar Committee 37. 2 41. 8 25. 7 55. 0 NA NA New Multidimensional poverty Index (MPI) (Starvation Line) (64. 5 crore*) (UNDP & Oxford University, July 10) *Out of these 42. 1 crore poor reside in eight poorest states (Bihar, Chhatisgarh, Jharkhand, MP, Orissa, Rajasthan, UP & WB. Source: Business Line; Sept 7, 2010 P 8

Average GDP Growth Rates of Agriculture and Other Sectors at 1999 -2000 prices (per cent) Period Total Economy Agriculture and Allied Pre-Green Revolution 1951 -52 to 1967 -68 3. 7 2. 5 Green Revolution Period 1968 -69 to 1980 -81 3. 5 2. 4 Wider Technology Dissemination 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

Gross Capital Formation in Agriculture Year Total Investment in Agriculture (Rs. Crore) Public Sector Investment in agriculture (Rs. Crore) Share of Public sector investment 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

Real beneficiaries of Globalisation Name of Foreign Company Year of Incorporatio n in India Capital Brought Rs. Lakh Paid up Capital(2010 -11) Rs. Cr. Sales (2010 -11) Rs. Cr. Net Profit (2010 -11) Rs. Cr. Hindustan Unilever 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

Some Important Indicators : Future Of Globalisation 1990 -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 $6. 03 b (25% of total imports) & lubricants $91. 3 b (30. 1% of total imports) Foreign exchange Reserves $283. 5 b (End Dec 2009) $1. 1 b Source : Different Economic Surveys (GOI, New Delhi) Fig of 08 -09