Economic Development

ROLE OFGOVERNMENT IN

ECONOMIC Development

Pol icy makers

Leaders

P lanned eff orts

EconomicDevelopment

ECONOMIC DEVELOPMENT

Development of human

capital

Critical infrastructure

Rise in poverty line

Environmental suitability

Health and safety

measures

Literacy and other

initiatives

STATUS OF INDIAN economy before and

after freedom

P R E I N D E P E N D E N C E

L O O K

State ownershipof many

Sectors

ExtensiveRegulation

Red tape known as

“License Raj”

Isolation from world economy

P O S TI N D E P E N D E N C

EL O O K

RegulatoryAction by

government

StateOwnershipIn which

Industries gotNationalized

IndustrializationWas key toEconomy

India has progressed

towards a free market

economy

Life insurancegot nationalized

Control over prices

GROWTH IN VARIOUS SECTORS

Foreign direct investment

Agriculture

Human Development Index

Services

Manufacturing

AGRICULTURE

1. •(IARI)led to the ”Indian green revolution "of 1970’s

2. •Various schemes implemented by government

India ranks 2nd worldwide in farm output

Agriculture and allied sectors like forestry, logging and 

fishing accounted for 18.6% of the GDP in 2005

MANUFACTURINGMANUFACTURING

Mining

Gas

Quarrying

Electricity

INDIA IS 14 t h IN WORLD FACTORY OUTPUT

Together they form

27.6% of GDP

SERVICES

Only 1% of the total GDP or

1/50th of the total services

are in India

India is 15th in services output.

60%17%

23%

Occupational Distribution of Sectors

Primary (Agricul-ture)

Secondary (Manu-facturing)

INDIA GDP GROWTH

Human Deve lopment I ndex (hd i )

Life expectan

cy

Standard of living

EducationLiteracy

Foreign direct investment Net flow of investment

Country’s trade balance

Improving infrastructure

impact

Development and p l ann ing o f economy

Government adopts the principle of formal economic planning as effective planning to intervene in economy

to faster growth

Annual budget &

5 year Plan

P R E S E N T DAY T H R E AT S T O E C O N O M I C D E V E LO P M E N T

Corruption Child labor Poverty and employment

Environmental

degradation

Various central and state government acts establish vigilance commissions have reduced corruption

Government has introduced the right to

information act(2005)and

equivalent acts in state

P R E V E N T I V E M E A S U R E S

remed ies

Implement of world largest child labor

elimination program, with primary

education targeted for 250million

Laws banning employment of

children(under 14)in hazardous industries

Child LABOuR

S t e p s t a k e n B yg o v e r n m e n t

Antipoverty programs initiated by government to help of poor to attain self sufficiency in food

production ensuring the supply of basic commodities

Some policies issued by government national

rural employment programmed and the

rural landless employment guarantee

programmed

POVERTY

C A U S E S

About 1.2 billion lack in clean safe water as most household and industrial wastes are dumped directly in

rivers

ENVIRONMENTAL DEGRADATION

INDIA TOWARDS PATH OF SUCCESS

“We who live in free market societies believe that growth, prosperity and ultimately human fulfillment, are created from the bottom up, not the government down. Only when the human spirit is allowed to invent and create, only when individuals are given a personal stake in deciding economic policies and benefiting from their success - only then can societies remain economically alive dynamic, progressive, and free.”

-RONALD REAGON