Changes in the economy of India Economy of India
The main turn around in the Indian economy came in the period of 8th five year plan when India became the member of world trade organization in year (1992-1997). Now Indian economy was open whole world. In 9th five year plan the economic growth was 5.35 % which was less than the expected growth rate i.e. 6.5%. During this five year plan main emphasis was given toward the growth of agriculture sector and development of rural areas. During this five year plan government start focusing on the growth of BIMARU state. And the result was visible in the phase of tenth five year plan of 2002- 2007 when the Indian economy showed the growth of 8%. This 3% increase in Indian was because of the growth that took place in the BIMARU states i.e. Bihar, Madhya Pradesh, Uttar Pradesh, Andhra Pradesh etc. In the year 2005 this BIMARU state has shown the GDP growth of average 7% and till now the average growth rate is consistent. All this growth implies that the poor states are no longer clustered in bottom of the growth of Indian economy. On GDP growth rate wise this state had topped the GDP growth chart on India. And this states are catching in up with developed states in term of GDP growth. Because of this kind of growth this BIMARU states economy is called as miracle economy.
It is mainly an agricultural based state which showed GDP growth of 11.44 % in year 2008-09.
It contributes 10% of India maize production of India.
It is accountable for 71% of litchi production of India.
It is accountable for 13% of mango production of India.
It is accountable for 9% of vegetable production of India.
Jharkhand is highly in mineral deposits. It is the leading producer of mineral wealth which is amounted to over Rs. 3000 cr.
It is densely forested state.
It is rich in many mineral like coal, mica, Iron ore, bauxite, uranium etc.
It has largest steel plant in Asia.
Andhra Pradesh is in fourth no in software exports in India.
It has more than 20 institutions for higher education.
Andhra Pradesh is promoted by its tourism industries.
It has overall literacy level approx 80% in 2002.
It is reach in mineral deposits like bauxites, coal, iron ore, etc.
A diamond mine has also found over there which is nearly become in nearer future.
It is has high power generation and only states that supplies power to other states.
It also known as bowl of rice because of it high production of rice.
It has booked an overall GDP growth at an average of 7% in last five year which is quite remarkable.
It is state which has highest amount of natural resource.
The FDI in Orissa has increased in last five years.
Orissa showed remarkable improvement in industrial sector after globalization because of it availability of land, manpower and natural resources.
Uttar Pradesh, Bihar, Orissa and Madhya Pradesh together grew at a compound annual growth rate (CAGR) of only 3.77 per cent between 1993-94 and 2000-2001, as against a 6.3 per cent in total GDP.
Since these States accounted for 24.3 per cent of the GDP, their poor performance exerted a significant drag on the overall growth over that period. But for them, the overall GDP growth would have been higher.
Of course, slow growth reduced the share of these States in total GDP: From 24.3 per cent in 1993-04 to 20.5 per cent in 2000-01. Were they to continue to grow at the same rate over the next 15 years, their GDP share would fall to less than 13 per cent.
The converse holds good for the fast growingDelhi, West Bengal, Karnataka, Tamil Nadu, Gujarat and Rajasthan. By 2020-21, they would account for 40 percent of total GDP. Overall growth since 2000-01 has been almost two percentage points higher than in the earlier period. This means either that fast growing States have started to grow even faster and/or more States have joined the ranks of fast growing States.
Future growth of overall GDP will, therefore, be more and more influenced by the good performers, rather than the tail-enders. Pushed to its logical conclusion, this implies that over the long run it will no longer matter whether slow growing States grow slow, fast, or not all.
The logic that applies to slowly growing States also applies to the agricultural sector which now accounts for about 20 per cent of GDP. Its rate of growth has dropped from 3.5 per cent in the 1980s to 2.5 per cent in the 1990s, to 1.3 per cent in recent years. Second, disparities in per capita income across States and sectors will become a serious political problem.
The tail enders will continue to grow, but they will fall further and further behind. India is definitely shining, but most Indians are not. As a consequence, even as the economy moves into a new world, politicians will trip over one another in their race back to the old one.
Name of state
Growth rate for 2004-05
Grow the rate for 2005-06
Growth rate for 2006-07
Growth rate for 2007-08
Growth rate for 2008 09
Growth rate 2009-10
Wide spread growth can take place only when it is all inclusive:
The wide spread growth of India could only take place only all factor contributing to Indian growth is taken care of:
In India the growth is there in the economy but it still 40% of Indian population is under poverty line. But in spite such of growth the benefit are not reaching to the lower class of the society. Government has to build it police in such a way, that the benefit of growth could be avail by the lower class people because if India wants o reach the double digit growth, for growth of this people I required because it is all inclusive. Inclusive growth is a collective effort of economically enhanced government regulation and control as well as a socially and environmentally stable business activity. Inclusive growth can only take place when the individual of the economy is benefited.
Government should enhance the agricultural sector of India because still it provides employment to whole country. Government should take care of farmers while forming police and look to it that farmers are benefited with it. Because if agricultural sector will grow it not only provide food in low price but also increase the productions.
Government should form better police for industrial sector because it equally as important as agricultural sector. Because industrialization lead to development of infrastructure, growth in employment, product availability etc and it inclusive to overall growth.
Government should build police which will help to develop the BIMARU states as for widespread is inclusive so therefore every state should be benefited.
Wide spread growth can take place only when it is all inclusive means growth in education, hygiene, standard of living etc of an individual will lead to the wide spread growth. As to benefit each individual government will have to look over development of each states , every sectors, and each factor effecting individual.
India is lacking in to distribute the benefits of growth to individual, if India wants grow in double figures it is only possible when this problem is shorted out. The wide spread growth is an interdependent and complementary process because growth of in single thing will lead to growth other. Wide growth can take place when every states is benefited as this will lead to growth of individual and then the country.
Growth of Indian Economy:
Growth indicators of Indian economy are:
Growth in exports:
Due to increase in exports the deficit in balance of payment has reduce which is a sign of the growth of Indian economy. India is accounted for approx 1% exports of world trade which likely to be increased.
Increase in GDP:
Now Indian GDP is approx 8.80% and it has been expected to reach 9.7% in nearer future. Thus there is bit of inflation when GDP of country is growing and it is assign of growth.
Growth in service sector:
52% of Indian GDP comes of service sectors. There is growth in export of IT and outsourcing because of which more foreign currency are coming in.
Increase in FDI:
Because high opportunities India many foreign investors are investing in Indian economy which is sign of growth
Increase in per capita income:
Per capita income of the country has increased in past five years. And it is a sign of economic development.
Increase in the purchasing power:
There consistent increase in the purchasing power of the people in past five years.
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