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INDIAN ECONOMIC DEVELOPMENT

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1 INDIAN ECONOMIC DEVELOPMENT
A POWER POINT PRESENTATION PREPARED BY AKM HSS KOTTOOR Download from

2 INDIAN ECONOMY BEFORE BRITISH RULE
INDEPENDENT ECONOMY AGRICULTURE, THE MAIN SOURCE OF LIVING ADVANCED MANUFACTURING SECTOR INDIA WELLKNOWN FOR HANDICRAFT INDUSTRIES, COTTON, SILK AND METALS INDIAN PRODUCTS ENJOYED WORLD WIDE MARKET FOR ITS FINE QUALAITY AND STANDARD OF CRAFTSMANSHIP.

3 The first attempt to measure national income of India was made by Dadhabhai Naoroji, William Disgby, Findlay shirras, V.K.R.V.Rao and R.C.Desai.

4 INDIAN ECONOMY ON THE EVE OF INDEPENDENCE
AGRICULTURAL SECTOR AGRICULTURAL SECTOR PROVIDED EMPLOYMENT TO 85% OF THE POPULATION. STAGNATION IN AGRICULTURAL SECTOR. LOW PRODUCTIVITY. EXPLOITATIVE LAND SETTLEMENT SYSTEM, PARTICULARLY ZAMINDARI SYSTEM. COMMERCIALISATION OF AGRICULTURE. LOW LEVEL OF TECHNOLOGY. LACK OF IRRIGATION FACILITIES. NEGLIGIBLE USE OF FERTILISERS. IMMENSE MISERY AND SOCIAL TENSION AMONG FARMERS. PARTITION OF THE COUNTRY AFFECTED AGRICULTURAL SECTOR.

5 INDIAN FARMER - DESTINED TO SUFFER

6 INDUSTRIAL SECTOR WEAK INDUSTRIAL BASE.
HANDICRAFT INDUSTRIES DECLINED. EXPORTER OF RAW MATERIALS. IMPORTER OF BRITISH INDUSTRIAL GOODS. AFTER 1850 MODERN INDUSTRIES WERE SET UP. COTTON AND JUTE TEXTILE MILLS CAME UP. IRON AND STEEL INDUSTRIES, TISCO IN 1907. SUGAR, CEMENT, PAPER INDUSTRIES. CAPITAL GOODS INDUSTRIES WERE NOT DEVELOPED. PUBLIC SECTOR WAS VERY LIMITED, ONLY IN RAILWAY, POWERGENERATION, COMMUNICATIONS, PORTS ETC. THE CONTRIBUTION OF THE SECTOR TO GDP WAS VERY LOW.

7 FOREIGN TRADE RESTRICTIVE POLICIES OF THE BRITISH ADVERSLY
AFFECTED THE STRUCTURE, COMPOSITION AND VOLUME OF INDIA’S FOREIGN TRADE. BRITISH MONOPOLY CONTROL OVER INDIA’S EXPORTS AND IMPORTS. INDIA BECAME EXPORTER OF PRIMARY PRODUCTS LIKE RAW SILK, COTTON, ETC. IMPORTER OF FINISHED CONSUMER GOODS. GENERATION OF LARGE EXPORT SURPLUS. EXPORT SURPLUS DID NOT RESULT IN ANY FLOW OF WEALTH TO INDIA. RATHER IT WAS USED FOR EXPENSES ON WAR AND ADMINISTRATION OF COLONIAL GOVERNMENT.

8 DEMOGRAPHIC CONDITION
FIRST CENSUS IN 1881 BEFORE 1921 INDIA WAS IN THE FIRST STAGE OF DEMOGRAPHIC TRANSITION. SECOND STATE BEGAN AFTER 1921. LITERACY LESS THAN 16% FEMALE LITERACY 7% PUBLIC HEALTH FACILITIES WERE UNAVAILABLE. INFANT MORTALITY 218/1000 LIFE EXPECTANCY 32 YEARS EXTENSIVE POVERTY.

9 OCCUPATIONAL STRUCTURE
AGRICULTURE SECTOR 70-75% MANUFACTURING SECTOR 10% SERVICE SECTOR 15-20% INFRASTRUCTURE DEVELOPMENT OF RAILWAY,PORTS, WATER TRANSPORT ,POSTS AND TELEGRAPHS. RAILWAYS INTRODUCED IN 1850

10 Ootty-konoor heritage train

11 INDIAN ECONOMY 1950-1990 THE GOALS OF FYPs FIVE YEAR PLANS
PLANNING COMMISSION SET UP IN 1950 CHAIRPERSON-PRIME MINISTER THE GOALS OF FYPs GROWTH MODERNISATION 3. SELF RELIANCE EQUITY

12 AGRICULTURE LAND REFORMS:AIMS TO CHANGE THE OWNERSHIP OF LANDHOLDINGS FROM ZAMINDARS TO TILLERS. LAND CEILING:FIXING THE MAXIMUM SIZE OF LAND WHICH COULD BE OWNED BY AN INDIVIDUAL. GREEN REVOLUTION:INCREASE IN THE PRODUCTION AND PRODUCTIVITY OF FOOD GRAINS DUE TO THE USE OF HYV SEEDS AND MODERN TECHNOLOGY . INDIA ACHIEVED SELF SUFFICIENCY IN FOOD- GR AINS PRODUCTION DUE TO GREEN REVOLUTION. INCREASE IN MARKETED SURPLUS.

13 Father of Green Revolution in India Dr.M.S.SWAMINATHAN

14 GREEN REVOLUTION-IMPACT
DECREASE IN THE PRICE OF FOODGRAINS. BUFFER STOCK OF FOODGRAINS. INCREASE IN DISPARITY BETWEEN SMALL AND LARGE FARMERS. HYV SEEDS PRONE TO PEST ATTACK. ENVIRONMENTAL PROBLEMS.

15 CHANGING TECHNOLOGY

16 SUBSIDIES :GOOD OR BAD? MERITS DEMERITS
INCENTIVE TO ADOPT NEW TECHNOLOGY IT BENEFITS FERTILIZER INDUSTRY IT HELP FARMES TO ACQUIRE REQUIRED INPUTS FARMERS FROM MORE PROSPEROUS REGIONS ARE BENEFITTED IT HELPS TO ELIMINATE INEQUALITY BETWEEN POOR AND RICH HUGE BURDEN ON GOVT. FINANCE

17 INDUSTRIAL POLICY RESOLUTION 1956
SALIENT FEATURES: THE BASIS OF 2ND FIVE YEAR PLAN. STATE CONTROL OF THE ECONOMY. LICENSING SYSTEM FOR NEW INDUSTRIES AND FOR EXISTING INDUSTRIES TO EXPAND PRODUCTION. PROMOTION OF INDUSTRIES IN BACK WARD REGIONS. REGIONAL EQUALITY TAX CONCESSIONS AND OTHER BENEFITS FOR INDUSTRIES IN BACKWARD AREAS. INDUSTRIES CLASSIFIED INTO 3 CATEGORIES OWNED BY THE STATE OWNED BY PRIVATE SECTOR AND PUBLIC SECTOR. OWNED BY PRIVATE SECTOR.

18 SMALL SCALE INDUSTRY CARVE COMMITTEE SET UP IN 1955
IN 1950 INVESTMENT LIMIT WAS Rs.5 LAKH NOW IT IS Rs. 1 CRORE SSIs ARE MORE LABOUR INTENSIVE GENERATE MORE EMPLOYMENT PRODUCTION SOME PRODUCTS WERE RESERVED FOR SSIs. LOWER INTEREST RATES ON BANK LOANS LOWER EXCISE DUTY

19 TRADE POLICY MAIN FEATURES: INWARD LOOKING TRADE STRATEGY
IMPORT SUBSTITUTION (REPLACING IMPORTS WITH DOMESTIC PRODUCTION) PROTECTION OF DOMESTIC INDUSTRIES FROM FOREIGN COMPETITION THROUGH TARIFFS AND QUOTAS. (TARIFFS ARE TAX ON IMPORTED GOODS. QUOTAS SPECIFY THE QUANTITY OF GOODS WHICH CAN BE IMPORTED.)

20 EFFECT ON INDUSTRIAL DEVELOPMENT
RISE IN THE SHARE OF INDUSTRIAL SECTOR 6 % ANNUAL GROWTH RATE DIVERSIFICATION OF INDUSTRIAL SECTOR DEVELOPMENT OF ELECTRONIC AND AUTOMOBILE INDUSTRIES

21 Dr. Manmohan Singh, the then finance minister of India, introduced New Economic Policy in 1991

22 ECONOMIC REFORMS SINCE 1991
BACKGROUND OF REFORMS INEFFICIENT MANAGEMENT OF INDIAN ECONOMY IN 1980s HUGE DEFICITS GULF WAR LOW FOREIGN EXCHANGE RESERVES HUGE RISE IN GOVERNMENT EXPENDITURE HIGH INFLATION BoP CRISIS LOAN FROM IMF AND IBRD MANY CONDITIONS

23 NEW ECONOMIC POLICY STABILISATION MEASURES STRUCTURAL REFORM MEASURES
NEP REFERS TO WIDE RANGE OF ECONOMIC REFORMS IT AIMS AT CREATING COMPETITION AND REMOVING BARRIERS STABILISATION MEASURES SHORT TERM MEASURES TO CORRECT BoP PROBLEMS AND CONTROL INFLATION STRUCTURAL REFORM MEASURES LONG TERM MEASURES AIMED AT INCREASING INTERNATIONAL COMETITIVENESS AND EFFICIENCY

24 LIBERALISATION LIBERALISATION AIMS TO REMOVE THE RULES AND REGULATIONS WHICH PREVENT ECONOMIC GROWTH AND DEVELOPMENT OF THE NATION DEREGULATION OF INDUSTRIAL SECTOR INDUSTRIAL LICENSING WAS ABOLISHED DERESERVATION IN NDUSTRIAL SECTOR PRICE FIXATION ABOLISHED DERESERVATION OF SSI PRODUCTS FINANCIAL SECTOR REFORMS REDUCED ROLE FOR RBI DECISION MAKING POWER TO FIs ESTABLISHMENT OF PRIVATE SECTOR BANKS FOREIGN INVESTMENT IN BANKS RAISED TO 50%

25 TAX REFORMS REDUCTION IN TAXES ON INDIVIDUAL INCOMES
REDUCTION IN CORPORATE TAX RATE LOWERED TAX RATE SIMPLIFIED PROCEDURES FOREIGN EXCHANGE REFORMS DEVALUATION OF RUPEE MARKET DETERMINED EXCHANGE RATE TRADE AND INVESTMENT REFORMS DISMANTLING OF QUANTITATIVE RESTRICTIONS REDUCTION OF TARIFF RATES IMPORT LICENSING ABOLISHED EXPORT DUTIES ABOLISHED

26 Foreign Exchange Reform
Devaluation of Indian rupee This increased inflow of foreign exchange MARKET DETERMINATION OF EXCHANGE RATE TRADE AND INVESTMENT POLICY REFORMS DISMANTLING OF QUANTITATIVE RESTRICTIONS REDUCTION OF TARIFF RATES REMOVAL OF IMPORT LICENSING PROCEDURES EXPORT DUTIES REMOVED

27 REFORMS IN PUBLIC SECTOR
PRIVATISATION WITHDRAWAL OF GOVT. FROM OWNERSHIP AND MANAGEMENT OF PSUs. OUTRIGHT SALE OF PUBLIC SECTOR COMPANIES REFORMS IN PUBLIC SECTOR DISINVESTMENT: SELLING OF A PART OR WHOLE OF THE SHARES OF THE PSUs TO THE PUBLIC. AUTONOMY TO PSUs NAVARATNA AND MINIRATNA STATUS TO PSUs

28 GLOBALISATION INTEGRATION OF DOMESTIC ECONOMY WITH THE WORLD ECONOMY THROUGH CREATION OF NETWORKS AND ACTIVITIES TRANSCENDING ECONOMIC, SOCIAL AND GEOGRAPHICAL BOUNDARIES. OUTSOURCING HIRING REGULAR SERVICES FROM EXTERNAL SOURCES, MOSTLY FROM OTHER COUNTRIES. Eg: LEGAL ADVICE, COMPUTER SERVICE, ADVERTISEMENT, VOICE BASED BUSINESS PROCESS (BPO/CALL CENTRES), RECORD KEEPING,ACCOUNTANCY, BANKING SERVICE, MUSIC RECORDING, FILM EDITING, BOOK TRANSCRIPTION, CLINICAL ADVICE, TEACHING.

29 GLOBALISATION

30 INDIA AND OUTSOURCING INDIA IS A FAVOURITE DESTINATION CHEAP COST
RESONABLE DEGREE OF SKILL AND ACCURACY LOW WAGE RATE SKILLED MAN POWER

31 WTO FOUNDED IN 1995 SUCCESSOR TO GATT GATT ESTABLISHED IN 1948
OBJECTIVES TO ADMINISTER ALL MULTILATERAL TRADE AGREE MENTS ESTABLISH A RULE BASED TRADE REGIME WITHOUT RESTRICTIONS ENLARGE PRODUCTION AND TRADE OF SERVICES OPTIMUM UTILISATION OF WORLD RSOURCES AND PROTECTION OF ENVIRONMENT

32 WTO TO FACILITATE INTERNATIONAL TRADE THROUGH REMOVAL OF TARIFF AS WELL AS NON-TARIFF BARRIERS. GREATER MARKET ACCESS TO ALL MEMBER COUNTRIES.

33 REFORMS:AN ASSESSMENT
GROWTH OF GDP SECTOR AGRICULTURE 3.6 3.3 4.0 INDUSTRY 7.1 6.5 9.5 SERVICE 6.7 8.2 9.1 GDP 5.6 6.4 8.0

34 REFORMS:AN ASSESSMENT
FOREIGN EXCHANGE INCREASE IN FOREGIN DIRECT INVESTMENT INCREASE IN FOREIGN EXCHANGE RESERVES EMPLOYMENT JOBLESS GROWTH

35 REFORMS:AN ASSESSMENT
AGRICULTURE SECTOR GROWTH RATE DECLINED PUBLIC INVESTMENT IN AGRICULTURE REDUCED. INCRESE IN COST OF PRODUCTION DUE TO WITHDRAWAL OF SUBSIDIES. REMOVAL OF MINIMUM SUPPORT PRICE COMPETION FROM IMPORTED GOODS DUE TO REMOVAL OF QUANTITATIVE RESTRICTIONS. SHIFT FROM FOOD CROPS TO CASH CROPS.

36 REFORMS:AN ASSESSMENT
REFORMS IN INDUSTRIAL SECTOR SLOW DOWN IN INDUSTRIAL GROWTH DECREASE IN DEMAND FOR DOMESTIC INDUSTRIAL PRODUCTS DUE TO CHEAPER IMPORTS INADEQUATE INVESTMENT IN INFRASTRUCTURE. COMPETITION FROM FOREIGN GOODS. LIMITED ACCESS TO DEVELOPED COUNTRYS’ MARKETS.

37 REFORMS:AN ASSESSMENT
FISCAL POLICY REFORMS REDUCTION IN TAXES DIDN’T INCREASE REVENUE. REDUCTION IN REVENUE DUE TO TARIFF REDUCTION. TAX INCENTIVES TO FOREIGN INVESTORS. NEGATIVE IMPACT ON WELFARE AND DEVELOPMENTAL EXPENDITURES.

38 POVERTY

39 KEVIN CARTER PHOTO

40 KEVIN CARTER PHOTO This photo was taken in 1994 during the Sudan Famine and it got "Pulitzer Award". The picture represents a famine stricken child crawling towards a United Nations food camp, located a kilometer away. The vulture is waiting for the child to die so that it can eat. This picture shocked the whole world. No one knows what happened to the child, including the photographer Kevin Carter who left the place as soon as the photograph was taken. Three months later he committed suicide due to depression.

41 POVERTY WHO ARE THE POOR?
IN URBAN AREAS, SOME EXAMPLES ARE PUSH CART VENDORS, STREET COBBLERS, RAG PICKERS, BEGGARS ETC. IN RURAL AREAS POOR INCLUDE LANDLESS PEOPLE, THOSE OWN WASTE LAND. IN GENERAL POOR PEOPLE FACE STARVATION AND MALNUTRITION, LACK BASIC LITERACY AND SKILLS AND HAVE VERY LIMITED ECONOMIC OPPORTUNITIES.

42 WHO ARE THE POOR

43 CATEGORISING POVERTY ALWAYS POOR USUALLY POOR CHRONIC POOR
CHURNING POOR OCCASIONALLY POOR TRANSIENT POOR NEVER POOR/NON-POOR

44 POVERTY LINE THE FIRST TO DISCUSS POVERTY LINE WAS DADHABHAI NAOROJI. JAIL COST OF LIVING PRESENT ESTIMATE IS MADE BY PLANNING COMMISSION BASED ON MINIMUM CALORIE INTAKE. 2400 CALORIE FOR RURAL PERSON AND 2100 CALORIE FOR URBAN PERSON. IN , IN MONETARY TERMS IT WORTH, Rs.328 PER PERSON IN A MONTH IN RURAL AREAS AND Rs.454 IN URBAN AREAS.

45 CAUSES OF POVERTY LOW LEVELS OF EDUCATION AND SKILLS
INFIRMITY, ILL HEALTH AND SICKNESS DISCRIMINATION SOCIAL, ECONOMIC AND POLITICAL INEQUALITY SOCIAL EXCLUSION INDEBTEDNESS LOW CAPITAL FORMATION LACK OF INFRASTRUCTURE LACK OF SOCIAL WELFARE NETS

46 NUMBER OF POOR IN INDIA IN , 321 MILLION PEOPLE BPL, i.e.: 55% OF THE POPULATION. IN , 260 MILLION PEOPLE BPL, i.e.; 26% OF THE POPULATION. IN MORE THAN 80% OF THE POOR PEOPLE WERE IN RURAL AREAS.IN , IT IS 75%.

47 Anti Poverty Programmes
Self employment programmes Wage employment programmes Social security measures Rural Employment generation programme(REGP) National food for work programme(NFWP) Public distribution system(PDS) Prime ministers rozgar yojana.(PMRY) Sampoorna grameen rozgar yojana(SGRY) Integrated child devel- opment scheme(ICDS) Swarna jayanthi shahari rozgar yojana.(SJSRY) National rural employme- nt guarantee act (NREGA) Midday meal scheme Swarna jayanthi gram swarozgar yojana (SGSY) Pradhan manthri gram sadak yojana. Pradha manthri gramodaya yojana Valmiki ambedkar awas yojana

48 Critical Assessment HUNGER, MALNOURISHMENT, ILLITERACY AND LACK OF BASIC AMENITIES STILL PREVALENT. BENFITS FROM DIRECT POVERTY ALLEVIATION PROGRAMMES GOES TO NON-POOR. RESOURCE ALLOCATION FOR THE PROGRAMMES IS INSUFFICIENT. NON-PARTICIPATION OF LOCAL LEVEL INSTITUTIONS IN PROGRAMME IMPLEMENTATION.

49 HUMAN CAPITAL FORMATION
WHAT IS HUMAN CAPITAL? COMPETENT AND SKILLED HUMAN RESOURCE WHICH IS ESSENTIAL FOR THE ECONOMIC DEVELOPMENT OF NATION IS HUMAN CAPITAL. SOURCES OF HUMAN CAPITAL 1. EDUCATION 2. HEALTH CARE 3. ON THE JOB TRAINING 4. MIGRATION. 5. INFORMATION.

50 HUMAN CAPITAL AND ECONOMIC GROWTH
ECONOMIC GROWTH MEANS INCREASE IN REAL NATIONAL INCOME OF A COUNTRY. EDUCATED PERSONS CONTRIBUTE MORE TO IT. A HEALTHY PERSON CAN WORK MORE AND CONTRIBUTE MORE TO NATIONAL INCOME. EDUCATION AND HEALTH CARE INCREASES LABOUR PRODUCTIVITY. EDUCATION FACILITATES SCIENTIFIC ADVANCEMENT, INVENTIONS ND INNOVATIONS. ON-THE -JOB -TRAINING INCREASES SKILL AND PRODUCTIVITY. MIGRATION INCREASES TECHNICAL AND PROFESSIONAL MANPOWER OF A COUNTRY. IN SHORT, HUMAN CAPITAL HELPS ECONOMIC GROWTH.

51 CONVOCATION IN IIM

52 HUMAN CAPITAL AND HUMAN DEVELOPMENT
EDUCATION AND HEALTH CARE ARE TO INCREASE LABOUR PRODUCTIVITY EDUCATION AND HEALTH CARE ESSENTIAL FOR HUMAN WELL BEING INVESTMENT IN EDUCATION AND HEALTH ARE UNPRODUCTIVE IF IT DOES NOT INCREASE OUTPUT INVESTMENT IN EDUCATION AND HEALTHCARE SHOULD BE MADE EVEN IF OUTPUT IS NOT INCREASED HUMAN BEINGS ARE A MEANS TO AN END HUMAN BEINGS ARE ENDS IN THEMSELVES

53 HUMAN CAPITAL FORMATION IN INDIA
EDUCATION AND HEALTH EXPENDITURES ARE MADE BY UNION, STATE AND LOCAL SELF GOVERNMENTS. PUBLIC AND PRIVATE PARTICIPATION IN EDUCATION AND HEALTH SECTORS ESSENTIAL. GOVERNMENTS ROLE IS IMPORTANT GOVERNMENT CONTROL OF PRIVATE INSTITUTIONS TO ENSURE BASIC STANDARDS. EDUCATION SECTOR IS REGULATED BY NCERT, AICTE, UGC. HEALTH SECTOR IS MONITERED BY HEALTH MINISTRIES, HEALTH DEPARTMENTS AND ICMR

54 EDUCATION SECTOR IN INDIA
EDUCATION EXPENDITURE 1952 2002 % OF TOTAL EXPENDITURE 7.92 13.17 % OF GDP 0.64 4.02

55 EDUCATION SECTOR IN INDIA
86TH CONSTITUTIONAL AMENDMENT MADE FREE AND COMPULSORY EDUCATION A FUNDEMENTAL RIGHT OF ALL CHILDREN IN THE AGE GROUP OF 6-14. TAPAS MAJUMDAR COMMITTEE (1988) ESTIMATE Rs.1.37 LAKH CRORE FOR IT. THIS REQUIRES EDUCATION EXPENDITURE TO BE ENHANCED TO 6% OF GDP.

56 EDUCATION: FUTURE PROSPECTS
EDUCATION FOR ALL IS AN OBJECTIVE OF DIRECTIVE PRINCIPLES OF INDIAN CONSTITUTION. IT IS STILL A DISTANT DREAM. LITERACY RATE ESPECIALLY FEMALE LITERACY NEED TO BE PROMOTED. ALLLOCATION FOR AND STANDARD OF HIGHER EDUCATION NEED TO BE ENHANCED.

57 RURAL DEVELOPMENT MEANING
DEVELOPMENT OF HUMAN RESOURCE INCLUDING HEALTH, LITERACY,SANITATION ETC. LAND REFORMS. DEVELOPMENT OF PRODUCTIVE RESOURCES OF EACH LOCALITY. INFRASTRUCTURE DEVELOPMENT LIKE ELECTRICITY, TRANSPORT, IRRIGATION ETC. MEASURES TO ALLEVIATE POVERTY AND IMPROVE THE STANDARD OF LIVING OF RURAL POPULATION.

58 CREDIT AND MARKETING IN RURAL AREAS
FARMERS NEED CREDIT TO MEET INITIAL EXPENDITURES ON SEEDS, FERTILISERS ETC. AT THE TIME OF INDEPENDENCE FARMERS HAD TO BORROW FROM MONEY LENDERS AND TRADERS AND WERE EXPLOITED. THE INTRODUCTION OF SOCIAL BANKING AND MULTI AGENCY APPROACH IN 1969 TO HELP FARMERS. NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT(NABARD) WAS SET UP IN 1982 AS AN APEX BODY TO CORDINATE ALL IN INSTITUTIONS IN THE FIELD OF RURAL CREDIT.

59 NABARD NABARD LOGO

60 RURAL CREDIT IN INDIA SOURCES COMMERCIAL BANKS.
REGIONAL RURAL BANKS(RRBs). COOPERATIVE BANKS. LAND DEVELOPMENT BANKS. SELF HELP GROUPS(SHGs). CREDIT PROVISIONS MADE BY SHGs ARE CALLED MICRO CREDIT.IT ALSO HELPS EMPOWERMENT OF WOMEN. HIGH LOAN DEFAULT RATE IS A CONCERN.

61 AGRICULTURAL MARKET SYSTEM
AGRICULTURAL MARKETING IS A PROCESS THAT INVOLVES THE ASSEMBLING, STORAGE, PROCESSING, TRANSPORTATION, PACKAGING, GRADING AND DISTRIBUTION OF DIFFERENT AGRICULTURAL COMMODITIES ACROSS THE COUNTRY.

62 PRIOR TO INDEPENDENCE FARMERS FACED THE FOLLOWING PROBLEMS.
1. FAULTY WEIGHING AND MANIPULATION OF ACCOUNTS. 2. FORCED SALES AT LOW PRICES DUE TO LACK OF INFORMATION. 3. LACK OF PROPER STORAGE FACILITIES.

63 MEASURES FOR IMPROVED MARKETING SYSTEM
REGULATION OF MARKETS TO CREATE ORDERLY AND TRANSPARENT MARKETING CONDITIONS. PROVISION OF PHYSICAL INFRASTRUCTURE FACILITIES LIKE ROADS, RAILWAYS, WAREHOUSES, GODOWNS, COLD STORAGES… COOPERATIVE MARKETING FOR FAIR PRICES FOR FARMERS PRODUCTS. POLICY INSTRUMENTS LIKE ASSURANCE OF MINIMUM SUPPORT PRICE(MSP), MAITENANCE OF BUFFER STOCKS, DISTRIBUTION OF FOODGRAINS AND SUGAR THROUGH PDS.

64 EMERGING ALTERNATIVE MARKETING CHANNELS
STATE APNI MANDI PUNJAB, HARYANA, RAJASTHAN RYTHU BAZARS(VEGETABLE &FRUITS ANDHRA PRADESH UZHAVAR SANDIES TAMIL NADU NATIOAL AND MULTI NATIONAL COMPANIES ALL OVER INDIA

65 DIVERSIFICATION INTO PRODUCTIVE ACTIVITIES
ANIMAL HUSBANDRY: CATTLE, GOATS, FOWL ETC. WE GET MEAT, EGG,WOOL,LEATHER,MILK ETC. STABILITY IN INCOME, FOOD SECURITY, TRANSPORT,FUEL AND NUTRITION FOR THE FAMILY . ABOUT 70 MILLION PEOPLE DEPEND ON IT. EMPLOYMENT FOR WOMEN. INCREASED MILK PRODUCTION IN THE COUNTRY CALLED ‘OPERATION FLOOD’. GUJARAT HAS A SUCCESS STORY IN MILK COOPERATIVES.

66 ANIMAL HUSBANDRY

67 FISHERIES FISHERIES CONTRIBUTES 1 .4%OF GDP. MAJOR PRODUCERS OF
MARINE PRODUCTS ARE KERALA, GUJARAT, TAMILNADU AND MAHARASHTRA. -

68 HORTICULTURE INCLUDES FRUITS, VEGETABLES,TUBER CROPS, FLOWERS, MEDICINAL AND AROMATIC PLANTS, SPICES AND PLANTATION CROPS. HORTICULTURE EMERGED AS A SUSTAINABLE LIVEWLIHOOD OPTION DURING GOLDEN REVOLUTION REPRESENTS THIS CHANGE. INDIA IS WORLD LEADER IN THE PRODUCTION OF MANGOES, BANANAS, COCUNUTS, CASHEW NUTS AND SPICES. THIS SECTOR PROVIDES EMPLOYMENT TO ABOUT 16% OF THE WORKFORCE.

69 HORTICULTURE

70 INFORMATION TECHNOLOGY AND RUAL DEVELOPMENT
I.T. TOOLS HELP IN PREDICITNG AREAS OF FOOD INSECURITY. I.T. DISSEMINATES INFORMATION REGARDING EMERGING TECHNOLOGIS AND ITS APPLICATIONS. I.T. HELPS IN GIVING INFORMATION ABOUT PRODUCT PRICES, WEATHER AND SOIL CONDITIONS. EMPLOYMENT GENERATION IN RURAL AREAS.

71 SUSTAINABLE DEVELOPMENT AND ORGANIC FARMING
CONVENTIONAL FARMING CHEAPER AND LOCAL ORGANIC INPUTS COSTLIER INPUTS ECO-FRIENDLY CHEMICAL FERTILISER AND TOXIC PESTICIDES ARE USED GENERATE MORE INCOME THROUGH EXPORTS IT ENTER FOOD SUPPLY AND GROUND WATER AND HARM LIVING BEINGS AND ENVIRONMENT MORE NUTRITIONAL VALUE AND HEALTHY FOODS LESS NUTRITIONAL VALUE ENVIRONMENTALLY SUSTAINABLE NOT SUSTAINABLE USE MORE LABOUR INPUT DEPLETE SOIL AND DEVASTATE NATURAL ECO SYSTEM

72

73 WORKER POPULATION RATIO
EMPLOYMENT WORKER POPULATION RATIO SEX WORKER POPULATION RATIO TOTAL RURAL URBAN MEN 52.7 53.1 51.8 WOMEN 25.4 29.9 13.9 39.5 41.7 33.7

74 SELF EMPLOYED &HIRED WORKERS
SELF EMPLOYED:WORKERS WHO OWN AND OPERATE AN ENTERPRISE TO EARN THEIR LIVELIHOOD ARE KNOWN AS SELF EMPLOYED. CASUAL WAGE LABOURERS:A PERSON WHO IS CASUALLY ENGAGED IN OTHERS’ FARM OR NON FARM ENTERPRISE AND IN RETURN RECEIVES WAGES ACCORDING TO THE DAILY OR PERIODIC WORK CONTRACT. REGULAR SALARIED EMPLOYEE:WHEN A WORKER IS ENGAGED BY SOMEONE OR AN ENTERPRISE AND PAID HIS WAGES ON A REGULAR BASIS.

75 Casual workers

76 DISTRIBUTION OF EMPLOYMENT
TYPE OF EMPLOYMENT URBAN WORKERS RURAL WORKERS SELF EMPLOYED 42% 56% CASUAL WAGE LABOURERS 18% 37% REGULAR SALARIED 40% 7%

77 DISTRIBUTION OF WORKFORCE BY INDUSTRY
CATEGORY PLACE OF RESIDENCE SEX TOTAL RURAL URBAN MALE FEMALE PRIMARY 76.7 9.6 53.8 75.1 60.4 SECONDARY 10.8 31.3 17.6 11.8 15.8 TERTIARY 12.5 59.1 13.1 23.8 100

78 GROWTH AND CHANGING STRUCTURE OF EMPLOYMENT
GROWTH OF GDP AND EMPLOYMENT PERIOD GROWTH OF GDP GROWTH OF EMPLOYMENT 4.2 0.85 3.9 2.1 4.8 1.84 5.8 1.89 3.4 1.5 6.1 0.98

79 CHANGING STRUCTURE OF EMPLOYMENT
SECTOR 1983 PRIMARY 74.3 68.6 64 60.4 SECONDARY 10.9 11.5 16 15.8 SERVICES 14.8 16.9 20 23.8 TOTAL 100

80 FORMAL AND INFORMAL SECTOR
ALL THE PUBLIC SECTOR ESTABLISHMENTS AND THOSE PRIVATE SECTOR ESTABLISHMENTS WHICH EMPLOY 10 HIRED WORKERS OR MORE ARE FORMAL SECTOR ESTABLISHMENTS. WORKERS ARE PROTECTED BY LABOUR LAWS AND THEY HAVE TRADE UNIONS AND SOCIAL SECURITY BENEFITS.IN INDIA 7% OF THE WORKFORCE IS FORMAL ALL OTHER ESTABLISHMENTS ARE INFORMAL.IN INDIA 93%OF THE TOTAL WORKFORCE IS INFORMAL.

81 NREGP

82 UNEMPLOYMENT AN UNEMPLOYED PERSON IS ONE WHO IS NOT ABLE TO GET EMPLOYMENT OF EVEN ONE HOUR IN HALF A DAY.IT IS CALLED OPEN UNEMPLOYMENT. DISGUISED UNEMPLOYMENT:WHEN MORE PEOPLE ARE WORKING ON A WORK WHERE ACTUALLY LESS NUMBER OF PEOPLE ARE REQUIRED, THE EXCESS PEOPLE EMPLOYED ARE DISGUISEDLY UNEMPLOYED. SEASONAL UNEMPLOYMENT: WHEN PEOPLE LACK EMPLOYMENT OPPORTUNITIES DURING CERTAIN SEASONS, IT IS SEASONAL UNEMPLOYMENT.

83 GOVERNMENT AND EMPLOYMENT GENERATION
NATIONAL RURAL EMPLOYMENT GUARANTEE ACT 2005.IT ENSURES 100 DAYS WORK TO ALL ADULT MEMBERS OF RURAL HOUSEHOLD BELOW POVERTY LINE. DIRECT AND INDIRECT EMPLOYMENT GENERATION PROGRAMMES. DIRECT:EMPLOYMENT OPPORTUNITIES IN GOVERNMENT RUN INDUSTRIES, HOTELS, TRANSPORT COMPANIES ETC. INDIRECT: INCREASE IN GOVERNMENT PRODUCTION BOOST PRIVATE ENTERPRISES CREATING JOB OPPORTUNITIES IN THE PRIVATE SECTOR. ANTI POVERTY PROGRAMMES (WAGE EMPLOYMENT &SELF EMPLOYMENT)

84 INFRASTRUCTURE BASIC INSTALLATIONS WHICH ARE ESSENTIAL FOR THE ECONOMIC DEVELOPMENT OF A NATION IS CALLED INFRASTRUCTURE. IT IS TWO TYPES; ECONOMIC AND SOCIAL. ECONOMIC INFRASTRUCTURE:ENERGY, TRANSPORTATION AND COMMUNICATION. SOCIAL INFRASTRUCTURE: EDUCATION, HEALTH AND HOUSING.

85 MUMBAI-WORLI –BANDRA SEA LINK

86 Relevance of Infrastructure
It supports modern industrial economy. Agriculture depend on it for speedy transport and communication. It increases productivity of input. Increases quality of life. Reduces morbidity. Increased access to better health care.

87 The State of Infrastructure: India and Some Other Countries-2003
COUNTRY INVESTME-NT IN INSFRAS-TRUCTRE(% OF GDP) ACCESS TO SAFE DRINKI- NG WATER % ACCESS TO IMP- OVED SANITAT- ION % MOBI- LE USERS/ 1000 PEOPLE PHONE LINES/ PEOPLE POWER GENERATION (kw1000 CHINA 20 75 38 66 113 230 HONGKONG 4 100 817 560 1630 INDIA 5 84 28 33 107 KOREA 7 92 63 583 449 1067 PAKISTAN 2 90 62 109 SINGAPORE 684 528 1887 INDONESIA 14 76 18 97

88 ENERGY ENERGY COMMERCIAL COAL PETROLEUM ELECTRICITY NON-COMMERCIAL
FIREWOOD AGRICULTURAL WASTE DIED DUNG

89 Sources of energy COMMERCIAL NON-COMMERCIAL
COAL,PETROLEUM, ELECTRICITY FIREWOOD,AGRICULTURAL WASTE,DRIED DUNG

90 CONSUMPTION PATTERN OF COMMERCIAL ENERGY
ENERGYCONSUMPTION IN % SECTOR HOUSEHOLD 10 12 AGRICULTURE 01 03 08 09 INDUSTRIES 40 50 45 42 TRANSPORT 28 22 OTHERS 5 07 13 15 TOTAL 100

91 POWER GENERATION THERMAL:70%

92 A nuclear power plant

93 CHALLENGES IN THE POWER SECTOR
INDIAS INSTALLED CAPACITY TO GENERATE ELECTRICITY IS NOT SUFFICIENT TO FEED AN ANNUAL ECONOMIC GROWTH OF 7% 2. DUE TO TRANSMISSION AND DISTRIBUTION LOSSES, WRONG PRICING OF ELECTRICITY AND SOME OTHER INEFFICIENCIES ,STATE ELECTRICITY BOARDS INCUR LOSSES WHICH EXCEEDS 500 BILLION. 3. PRIVATE SECTOR AND FOREIGN INVEST MENT IN POWER SECTOR IS INADEQUATE. GENERAL PUBLIC UNREST DUE TO HIGH POWER TARIFFS AND PROLONGED POWER CUTS. 5. SHORTAGE OF RAWMATERIALS FOR THERMAL POWER PLANTS.

94 HEALTH PUBLIC HEALTH INFRASTRUCTURE IN INDIA ITEM 1951 1981 2000
HOSPITALS 2694 6805 15888 HOSPITAL BEDS 117000 504538 719861 DISPENSARIES 6600 16745 23065 PHCs 725 9115 22842 SUBCENTRES - 84736 137311 CHCs 761 3043

95 PRIVATE SECTOR HEALTH INFRASTRUCTURE
MORE THN 70% OF HOSPITALS IN INDIA ARE RUN BY PRIVATE SECTOR. IT ALSO PLAYS A DOMINANT ROLE IN MEDICAL EDUCATION AND TRAINING, MEDICAL TECHNO- LOGY AND DIAGNOSTICS, MANUFACTURE AND SALE OF PHARMACEUTICALS, HOSPITAL CONSTRUCTION AND MEDICAL SERVICES. PRIVATE HEALTH CARE FACILITIES ARE NOT ACCESSIBLE TO ORDINARY PEOPLE. PRIVATE SECTOR ATTRACTS MEDICAL TOURISTS TO INDIA.

96 INDIAN SYSTEM OF MEDICINE (AYUSH)
AYURVEDA YOGA UNANI SIDHA NATUROPATHY HOMEOPATHY

97 YOGA

98 Indicators of health INDICATOR INDIA CHINA USA SRILANKA IMR/1000 68 30
2 8 BIRTH BY SKILLED ATTENDANTS 43 97 99 FULLY IMMUNISED 67 84 93 HEALTH EXPENDITURE AS A % OF GDP 4.8 5.8 14.6 3.7 GOVT.SHARE OF TOTAL EXPENDITURE % 21.3 33.7 44.9 48.7 PERCAPITA SPENDING IN $ 96 261 5274 131

99 HEALTH:URBAN-RURAL & POOR-RICH DIVIDE
ONLY 1/5TH HOSPITALS ARE LOCATED IN RURAL AREAS, WHERE 70% OF THE POPULATION LIVE. ONLY 50% OF DISPENSARIES AND 11% HOSPITAL BEDS ARE AVAILABLE IN RURAL INDIA. 0.36 HOSPITALS FOR EVERY ONE LAKH PEOPLE IN RURAL AREAS AND 3.6 HOSPITALS IN URBAN AREAS. IN RURAL AREAS 24% OF THE POPULATTION HAVE NO ACCESS TO PROPER HEALTHCARE. SHORTAGE OF MEDICAL PERSONNEL IN RURALAREAS. THE POOREST 20% SPEND 12% OF THEIR INCOME ON HEALTH CARE WHILE THE RICCH 20% SPEND 2%.

100 AIIMS

101 WOMENS HEALTH ADVERSE SEX RATIO, IN 1991, 945 AND IN 2001, 927 SHOWS INCREASED FEMALE FOETICIDE. 3 LAKH GIRLS UNDER THE AGE OF 15 HAVE MARRIED AND BORNE CHILDREN. MORE THAN 50% WOMEN HAVE IRON DEFICIENCY DISEASES LIKE ANAEMIA WHICH CAUSE 19% MATERNAL DEATHS. IMPORTANT ROLE FOR TELECOM AND I.T. SECTORS IN CREATING AWARENESS.

102 ENVIRONMENT AND SUSTAINABLE DEVELOPMENT
AMAZON RIVER

103 DEFINITION AND FUNCTIONS OF THE ENVIRONMENT
ENVIRONMENT IS DEFINED AS THE TOTAL PLANETARY INHERITANCE AND THE TOTALITY OF ALL RESOURCES. IT INCLUDES ALL THE BIOTIC AND ABIOTIC FACTORS THAT INFLUENCE EACH OTHER. FUNCTIONS IT SUPPLY RESOURCES IT ASSIMILATES WASTE IT SUSTAINS LIFE BY PROVIDING GENETIC AND BIODIVERSITY IT PROVIDES AESTHETIC SERVICES LIKE SCENERY

104 STATE OF INDIA'S ENVIRONMENT
INDIA HAS ABUNDANT NATURAL RESOURCES IN THE FORM OF RICH QUALITY OF SOIL,RIVERS, FORESTS,MINERAL DEPOSITS, RANGES OF MOUNTAINS, SEA COAST ETC. THREAT TO ENVIRONMENT LAND DEGRADATION BIODIVERSITY LOSS AIR POLLUTION ESPECIALLY VEHICULAR POLLUTION IN CITIES MANAGEMENT OF FRESH WATER SOLID WASTE MANAGEMENT

105 CHALLENGES OF GLOBAL WARMING

106 ENVIRONMENTAL DEGRADATION
AIR POLLUTION BIODIVERSITY LOSS

107 SUSTAINABLE DEVELOPMENT
UNITED NATIONS CONFERENCE ON ENVIRONMENT AND DEVELOPMENT(UNCED) DEFINITION: ‘ DEVELOPMENT THAT MEET THE NEED OF THE PRESENT GENERATION WITHOUT COMPROMISING THE ABILITY OF THE FUTURE GENERATION TO MEET THEIR OWN NEEDS.’

108 SOLID WASTE MANAGEMENT-AN ISSUE TO BE TACKLED

109 STRATEGIES FOR SUSTAINABLE DEVELOPMENT
USE OF NON CONVENTIONAL SOURCES OF ENERGY LPG,GOBAR GAS IN RURAL AREAS CNG IN URBAN AREAS WIND POWER SOLAR POWER THROUGH SOLAR PHOTOVOLTAIC CELLS MINI HYDEL PLANTS TRADITIONAL KNOWLEDGE AND PRACTICES BIO COMPOSTING BIOPEST CONTROL

110 COMPARATIVE DEVELOPMENT EXPERIENCES OF INDIA AND ITS NEIGHBOURS

111 DVELOPMENTAL PATH CHINA
GREAT LEAP FORWARD-1958: AIMED RAPID INDUSTRALISATION OF THE COUNTRY COMMUNE SYTEM: COLLECTIVE CULTIVATION IN THE FARM SECTOR GREAT PROLETARIAN CULTURAL REVOLUTION ( ): PROFESSIONAL AND STUDENTS WERE SENT TO WORK AND LEARN FROM THE COUNTRYSIDE. CHINA INTRODUCED REFORMS IN 1978: PRIVATE PARTICIPATION IN INDUSTRY, DUAL PRICING, LAND TO INDIVIDUALS,SPECIAL ECONOMIC ZONES.

112 PAKISTAN MEDIUM TERM(5 YEAR ) PLAN IN 1956. MIXED ECONOMY
GREEN REVOLUTION REGULATORY POLICY FOR INDUSTRIALISATION AND IMPORT SUBSTITUTION NATIONALISATION OF CAPITAL GOODS INDUSTRIES ECONOMIC REFORMS IN 1988

113 DEMOGRAPHIC INDICATORS, 2000-01
COUNTRY POPULATION GROWTH RATE DENSITY SEX RATIO FERTILITY RATE URBANISATION INDIA 1103.6 1.7 358 933 3.0 27.8 CHINA 1303.7 1.0 138 937 1.8 36.1 PAKISTAN 162.4 2.5 193 922 5.1 33.4

114 DISTRIBUTION OF WORKFORCE IN 2000
GDP AND SECTORS SECTOR CONTRIBUTION TO GDP 2003 DISTRIBUTION OF WORKFORCE IN 2000 INDIA CHINA PAK AGRICULTURE 23 15 60 54 49 INDUSTRY 26 53 16 27 18 SERVICE 51 32 24 19 37 TOTAL 100

115 INDICATORS OF HUMAN DEVELOPMENT,2003
ITEMS INDIA CHINA PAKISTAN HDI VALUE 0.602 0.755 0.527 RANK 127 85 135 LIFE EXPECTANCY 63.3 71.6 63 LITERACY RATE 61 90.9 48.7 GDP PERCAPITA 2892 5003 2097 PEOPLE BPL 34.7 16.6 13.4 IMR 30 81 MMR 540 56 500 UNDERNOURISHED (%) 21 44 54 IMPROVED SANITATION % 77 90 IMPROVED WATER % 86 11 20

116 DEVELOPMENT STRATEGIES:AN APPRAISAL
CHINA REFORMS INTRODUCED IN 1978 EQUITABLE DISTRIBUTION OF FOOD GRAINS THROUGH COMMUNE SYSTEM INVESTMENT IN EDUCATION AND HEALTH, LAND REFORMS AND DECENTRALISED PLANNING IMPROVED THE SOCIO ECONOMIC LIFE OF PEOPLE

117 DEVELOPMENT STRATEGIES:AN APPRAISAL
PAKISTAN REFORMS INTRODUCED IN 1988 WORSENING OF ALL ECONOMIC INDICATORS GROWING DEPENDENCE ON FOREIGN LOANS

118 THANK YOU AKM HSS KOTTOOR


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