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GLOBAL ECONOMIC TREND AND INDIAN ECONOMY. INDIAN ECONOMY Economy of India भारतीय अर्थव्यवस्था Bhāratiya Arthavyavasthā Mumbai, Maharashtra is the financial.

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Presentation on theme: "GLOBAL ECONOMIC TREND AND INDIAN ECONOMY. INDIAN ECONOMY Economy of India भारतीय अर्थव्यवस्था Bhāratiya Arthavyavasthā Mumbai, Maharashtra is the financial."— Presentation transcript:

1 GLOBAL ECONOMIC TREND AND INDIAN ECONOMY

2 INDIAN ECONOMY Economy of India भारतीय अर्थव्यवस्था Bhāratiya Arthavyavasthā Mumbai, Maharashtra is the financial capital of the Republic of India [1][2] MumbaiMaharashtra [1][2] Currency Indian rupee (INR) () = 100 Paise Indian rupeePaise 1 USD = 67.78 (5 February 2016) 0.1774 monthly change 3.97 yearly change Fiscal year 1 April – 31 March

3 Statistics GDP $2.384 trillion (161.6 lakh crore) (Nominal, Est. 2016) [3] $8.727 trillion (591.5 lakh crore) (PPP, Est. 2016) [3]lakhcrore [3]lakhcrore [3] GDP rank 7th (Nominal) / 3rd (PPP) 7th3rd GDP growth 7.6% (FY 2015-16 est.) [4] [4] GDP by sector Agriculture: 17% Industry: 26% Services: 57% (2013-14) [5][6] Agriculture Industry Services [5][6] Inflation (CPI) InflationCPI CPI: 5.41% WPI: -1.99% (November 2015) [7] [7]

4 POVERTY Population below poverty linepoverty line 12.4% of population below poverty line of $1.90/day (2011-12, World Bank) [9][10] [9][10] 33.9 (2009) [11] [11] Labour force 502.3 million (2014 est.) Labour force by occupation Agriculture: 49% Industry: 20% Services: 31% (2012 est.) Agriculture Industry Services Average gross salary $1.46 per hour Average household income: $6,671 yearly (2010) [15] [15]

5 Secondory sector Main industries software, petroleum products, chemicals, pharmaceuticals, agriculture, textiles, steel, transportation equipment, machinery, leather, cement, mining, construction software chemicalspharmaceuticals agriculturemachinery leather Ease-of-doing-business rank 130

6 EXPORTS Exports $321.5 billion: merchandise exports $155.6 billion: services exports $477.1 billion: Total (2014) Export goods software, petrochemicals, agriculture,leather, jewellery, engineering goods, [21] pharmaceuticals, textiles, chemicals, transportation, ores and other commodities [17] softwarepetrochemicalsagricultureleatherjewellery [21]pharmaceuticalstextiles chemicalstransportationores [17]

7 Main export partners European Union 16.3%(2014) [20] United States 13.4% United Arab Emirates 10.4% China 4.2% Hong Kong 4.2%European Union [20]United StatesUnited Arab EmiratesChinaHong Kong

8 Imports And Imports Goods $463 billion: merchandise imports $146.9 billion: services imports $609.9 billion: Total (2014) [20] [20] goods crude oil, gold and precious stones, electronics, engineering goods, [21] chemicals, plastics, coal and ores, iron and steel, vegetable oil and other commodities [17] crude oilprecious stones [21] chemicalsplasticscoalvegetable oil [17]

9 Main import partners China 12.7% (2014) [20] European Union 10.5% Saudi Arabia 7.1% United Arab Emirates 5.9% Switzerland 4.6%China [20]European UnionSaudi ArabiaUnited Arab EmiratesSwitzerland

10 FDIFDI stock Inflows: $261.7 billion Outflows: $129.8 billion (2014 est.) Gross external debtexternal debt $461.9 billion (as of 31 Dec. 2014) [23] [23]

11 Public finances Public debt 64.9% of GDP (2014) [25] [25] Budget deficit 3.9% of GDP (2015–16) [26] [26] Revenues 28.1 trillion (US$410 billion) (2015,IMF) [27] [27] Expenses 38.3 trillion (US$560 billion) (2015,IMF) [27] [27]

12 Economyof the world Statistics Population 7.095 billion (July 2013 est.) [1] [1] GDP Nominal: $77.609 trillion (2014 est.) [1] PPP: $106.998 trillion (2014 est.) [1] Nominal [1] PPP [1] GDP growth 3.4% (2014) [2] [2] GDP per capita Nominal: $10,857 PPP: $15,073 (2014 est.) Nominal PPP

13 201320142015 United States16,663.217,348.117,968.2 China9,490.810,356.511,384.8 Japan4,919.64,602.44,116.2 Germany3,746.53,874.43,371.0 United Kingdom 2,678.42,950.02,864.9 France2,811.12,833.72,422.6 India1,875.22,051.22,182.6 Italy2,137.62,147.71,819.0 Brazil2,391.02,346.61,799.6 Canada1,839.01,785.41,572.8 Korea1,305.61,410.41,393.0 GDP, current prices (billion USD)

14 201320142015 China16,585.018,088.119,510.0 United States16,663.217,348.117,968.2 India6,796.17,411.18,027.0 Japan4,694.94,767.24,842.4 Germany3,630.13,748.13,842.0 Russia3,498.03,576.83,473.8 Brazil3,218.23,275.83,207.9 Indonesia2,516.12,685.92,838.6 United Kingdom2,454.22,569.22,659.7 France2,544.72,591.22,646.9 Mexico2,069.82,148.92,220.1 Italy2,109.82,135.42,173.6 Korea1,698.91,784.01,849.4 GDP based on PPP valuation (billion current international dollars)

15 WORLD BANK Motto Working for a World Free of Poverty Formation July 1944; 71 years ago Type Monetary International Financial Organization Legal status Treaty Purpose Crediting Headquarters Washington, D.C., United States Washington, D.C.United States Region Worldwide Membership 188 countries (IBRD) [1] 172 countries (IDA) [1] Key people Jim Yong Kim, president Parent organization World Bank Group

16 The World Bank is not to be confused with the World Bank Group, an extended family of five international organizations:World Bank Group International Bank for Reconstruction and Development (IBRD) International Bank for Reconstruction and Development International Development Association (IDA) International Development Association International Finance Corporation (IFC) International Finance Corporation Multilateral Investment Guarantee Agency (MIGA) Multilateral Investment Guarantee Agency International Centre for Settlement of Investment Disputes (ICSID) International Centre for Settlement of Investment Disputes

17 FOUNDER OF WORLD BANK John Maynard KeynesJohn Maynard Keynes (right) and Harry Dexter White, the "founding fathers" of both the World Bank and the International Monetary Fund (IMF). [5]Harry Dexter WhiteInternational Monetary Fund [5]

18 HISTORY The World Bank was created at the 1944 Bretton Woods Conference, along with three other institutions, including the International Monetary Fund (IMF). The president of the World Bank is, traditionally, an American. [6] The World Bank and the IMF are both based in Washington, D.C., and work closely with each other.Bretton Woods ConferenceInternational Monetary Fund [6]Washington, D.C.

19 International Monetary Fund (IMF The International Monetary Fund (IMF) is an international organization headquartered in Washington, D.C., of "188 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world." [1] Formed in 1944 at the Bretton Woods Conference, it came into formal existence in 1945 with 29 member countries and the goal of reconstructing the international payment system. Countries contribute funds to a pool through a quota system from which countries experiencing balance of payments difficulties can borrow money. As of 2010, the fund had SDR476.8 billion, about US$755.7 billion at then- current exchange rates. [4]Washington, D.C. [1]Bretton Woods Conference international payment systemfunds balance of paymentsSDR [4]

20 Functions Of IMF According to the IMF itself, it works to foster global growth and economic stability by providing policy, advice and financing to members, by working with developing nations to help them achieve macroeconomic stability and reduce poverty. [8] The rationale for this is that private international capital markets function imperfectly and many countries have limited access to financial markets. Such market imperfections, together with balance-of-payments financing, provide the justification for official financing, without which many countries could only correct large external payment imbalances through measures with adverse economic consequences. [9] The IMF provides alternate sources of financing.economic stability developing nations [8] [9]

21 Board of Governors The Board of Governors consists of one governor and one alternate governor for each member country. Each member country appoints its two governors. The Board normally meets once a year and is responsible for electing or appointing executive directors to the Executive Board. While the Board of Governors is officially responsible for approving quota increases, Special Drawing Right allocations, the admittance of new members, compulsory withdrawal of members, and amendments to the Articles of Agreement and By-Laws, in practice it has delegated most of its powers to the IMF's Executive Board. [58]Special Drawing Right [58]

22 The Board of Governors is advised by the International Monetary and Financial Committee and the Development Committee. The International Monetary and Financial Committee has 24 members and monitors developments in global liquidity and the transfer of resources to developing countries. [59] The Development Committee has 25 members and advises on critical development issues and on financial resources required to promote economic development in developing countries. They also advise on trade and environmental issuesInternational Monetary and Financial Committee Development Committee [59]

23 Executive Board 24 Executive Directors make up Executive Board. The Executive Directors represent all 188 member countries in a geographically based roster. [60] Countries with large economies have their own Executive Director, but most countries are grouped in constituencies representing four or more countries. [58] [60] [58] Following the 2008 Amendment on Voice and Participation which came into effect in March 2011, [61] eight countries each appoint an Executive Director: the United States, Japan, Germany, France, the UK, China, the Russian Federation, and Saudi Arabia. [60] The remaining 16 Directors represent constituencies consisting of 4 to 22 countries. The Executive Director representing the largest constituency of 22 countries accounts for 1.55% of the vote. [citation needed] This Board usually meets several times each week. [62] The Board membership and constituency is scheduled for periodic review every eight years. [4] [61] United States [60]citation needed [62] [4]

24 Managing Director The IMF is led by a managing director, who is head of the staff and serves as Chairman of the Executive Board. The managing director is assisted by a First Deputy managing director and three other Deputy Managing Directors. [58] Historically the IMF's managing director has been European and the president of the World Bank has been from the United States. However, this standard is increasingly being questioned and competition for these two posts may soon open up to include other qualified candidates from any part of the world. [63][64] [58] [63][64] In 2011 the world's largest developing countries, the BRIC nations, issued a statement declaring that the tradition of appointing a European as managing director undermined the legitimacy of the IMF and called for the appointment to be merit-based. [63][65] BRIC nations [63][65] 5 July 2011 – Present Christine Lagarde France Law, Politician, Minister of Finance

25 COMPONANTS OF MONEY SUPPLY M1= C+DD+OD HERE C= CURRENCY( NOTES AND COINS) DD= DEMAND DEPOSITS IN BANK OD= OTHER DEPOSITS IN BANK M2= M1+ POST OFFICE SAVING DEPOSITS M3= M1+TIME DEPOSITS M4= M3 + TOTAL( DD+TD) OF POST OFFICE

26 THANK YOU VERY MUCH ALL OF YOU Sagar Tavar 8421237651


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