1. India’s Economic Development – Challenges to the Young By DR T.H. CHOWDARY Director: Center for Telecom Management and Studies Fellow: Tata Consultancy Services Chairman: Pragna Bharati (intellect India ) Former: Chairman & Managing Director Videsh Sanchar Nigam Limited & Information Technology Advisor, Government of Andhra Pradesh T: +91(40) 6667-1191(O) 2784-6137& 2784-3121® F: +91 (40) 6667-1111 hanuman.chowdary@tcs.com HYD: 23 Feb 2014 THC_CTMS1S707_Feb2014

2. 3 categories of people Entitlement Employment Entrepreneurship What do you want to be? THC_CTMS2S707_Feb2014

3. All are born equal: But Nurture Education Effort Make persons unequal THC_CTMS3S707_Feb2014

4. Which is the source of all wealth Nature Sunlight Ores, geysers, water Rivers, forests, seas, mountains, deserts, marshes and fawna THC_CTMS4S707_Feb2014

5. How we convert natural resources into products/services Science& Technology R&D & Inventions Industries Agriculture Capital ( comes from savings) Work ( labour, machines) THC_CTMS5S707_Feb2014

6. THC_CTMSS707_Feb20146 7000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 1000 1200 1400 1600 1800 2000 2012 Source: Angus Maddison; J.P.Morgan World GDP per Person, 1000=100 S & T for Wealth Creation

7. THC_CTMSS707_Feb20147 World Population and the Poor YearPopulation% of the Poor 1820 1.1 billion85% 1980 5 billion30% 2000 6 billion20% 20076.5 bln18% 2012 70 bln15%

8. THC_CTMSS707_Feb20148 India’s Share of World’s Industrial Production IndiaBritain 183017.5 9.6 19001.718.6 Annual Revenue of Aurangzeb: $ 450 m (France’s Louis XIV:$ 40m) Pliny, Roman Historian called India “The sink of the world’s gold” INDIA WAS THE WEALTHIEST

9. THC_CTMSS707_Feb20149 Time taken to double the per capita income (1) Country UKUSA Japan Indonesia S.Korea China Years 5847 33 17 13 10 Since 1780 1840 1880 1965 1970 1978

10. THC_CTMSS707_Feb201410 Time taken to double the per capita income (2) GDP GrowthPopulationTime taken 3.5%2.0%50 Y 6.5%1.8%15 Y 10.0%1.0%7 Y

11. THC_CTMSS707_Feb201411 Poverty came down Country Indonesia Malaysia Thailand S/pore India From %583749 2475 (1972) (1973) (1962) (1972) (1951) To %171426 10 30 (1982) (1987) (1986) (1982) (2002) Life expectancy up from 56 to 71 during this period * UPA II puts the poor at 66% under Food Security Act & Programme

12. India - Growth of GDP; Population; Per Capita Income (PCI) & Years for doubling PCI PeriodGDPPOPPCIYRS 1951 to 2000 3.52.80.770 2004-079.01.87.210 20134.81.83.025 Lesson from China: Control population during period of growth [JRD’s advice to Nehru in 1950s dismissed.] BPL ratio is the index: in India it came down from 70% in the 1950s to about 30% now [BPL ratio in A P is 85% according to white ration cards & increasing.] THC_CTMS12S707_Feb2014

13. THC_CTMSS707_Feb201413 Gross World Product: in $ Trillion Year200520102014 $T324060 Share of Services Sector $18$25$40 % Traded30%40%45% * 2014-15 India’s trade ( Ex + Imp) will be 31% of GDP

14. Jobs lost/created in the last 10 years in different sectors in India 2000-2012 jobs grew by a mere 2% p.a Pop. growing @ 1.8% i.e adding about 20 mln Job creation never> 10 mln Unproductive spend GOI’s Interest Payments Rs. 3,64,244 cr Welfare spend & subsidies Rs. 5,00,000 cr Subsidies (Rs. 2,42,255 cr in 2013-14) (i/c Haj Rs. 1000 cr) Give aways NREGA- Rs. 40,000 cr SHG THC_CTMS14S707_Feb2014

15. Improper Spending Farmers loans- 2008 Rs. 70,000 cr Indira Awas Old age pensions Pregnant women nourishment Fee Reimbursement producing “certified but not qualified”. Engineers etc. 10 lakh unemployed B.Techs in A.P alone 85% (Rajiv’s) welfare becomes black money Rs. 4,00,000 cr p.a Under spending : DefenceR&D China : $1481% India :$38 2% THC_CTMS15S707_Feb2014

16. THC_CTMSS707_Feb201416 India’s Share in the World Trade and Wealth YearWealthTrade 170122.6%25% 1947NA2.4% 1990NA0.4% 20031.5%0.8% 20051.6%1.0% 2014 3.5% 2.7% INDIA WAS THE WEALTHIEST

17. What we need to do Link up rivers & national water grids National &Highways = Rs. 70,000 RKM National Power Grid 600 new towns/ cities 100 ports & harbours 200 airports Solar Power Generation on all multi-storeyed buildings ( Germany, Israel) Electric cars (Petrol/diesel stations become Battery Replace Stations (Israel, Denmark… THC_CTMS17S707_Feb2014

18. What we need to do contd.. NCC in all colleges 2 Y service in Armed Forces Obligatory Residential Universities 5,000 PPP Hospitals 1000 more Medical colleges 500 more Nursing colleges THC_CTMS18S707_Feb2014

19. Job Growth 2000-’12 2% per year SectorJobs in mln 2011-12 Share in TotalAnnual change Agriculture22448-0.001 Manufacturing60134 Construction501117 Trade, Hotel53114 Transport, storage coms. 2356 Other services53114 All4681002.2 THC_CTMS19S707_Feb2014

20. VRO, VRA applicants (A.P) 9-02-14 written test JobsExam VRO1,65111,84,234 714/ for 1 job VRA4,30588,609 20/ for 1 job THC_CTMS20S707_Feb2014

21. Total 12.72 lakhs wrote VRO jobsApplicants wrote Karimnagar8381,825 Nalgonda6873,960 Mahboobnagar10371,302 Guntur8368,072 THC_CTMS21S707_Feb2014

22. Dhanyawad: Thank You THC_CTMS22S707_Feb2014