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11
INDIAN ECONOMY AND TRENDS
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JANUARY 201
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22
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Strengths………………………….3
Trends…………………………….11
Reforms……………………………22
Outloo…………………………….3!
INDIAN ECONOMY AND TRENDS
JANUARY 201
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!"R#N$"%!
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"AR#E $ S%I""ED "A&O'R (ORCE S'))ORTS INDIAN ECONOMY
INDIAN ECONOMY AND TRENDS
JANUARY 201
National Skill Development
Corporation (NSDC) to provide
training to 3.3 million students this
year
It currently provides training in 33
sectors
About SD!"" million proposed
#or NSDC in the !"$%&$' budget
Second largest number o#
engineers and scientists
Second largest nglish&
speaking population in the orld
*ome to educational institutes
o# global repute + II,s and II-s
o average salary o#
SD'/"""+$"/""" p.a.
0orking age population1
e2pected to increase #rom ' per
cent in !""$ to 4% per cent by
!"!$
,he average age predicted to be
!5 years in !"!"/ loer than
China and the S
2pected to be home to !' per
cent o# the orld6s skilled
ork#orce by !"!'
$.' million graduates pass out
every year
!'" million people e2pected to
7oin the Indian ork#orce by
!"3"
Number o# engineering colleges
has increased #rom $/'$$ in
!""4&"8 to 3/3%' in !"$%&$'
Skilled labour force
Large pool
Source: 10orking age re#ers to age group o# $&4'
,he NSDC
initiative*igh
competency
Age
demographics
2panding
ork#orce
Large &
Skilled
Labour
Force
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C*EA) AND S%I""ED "A&O'R MA%ES INDIA MOST (A+O'REDDESTINATION (OR O'TSO'RCIN#
JANUARY 201
1980s
Airline companies/
such as/ 9ritish
Airays set up back
o##ices in India
1990s
iberalisation in
$55$
: sets up o##ice in
India; 4" per cent o# Indian
:D<
,op destination
INDIAN ECONOMY AND TRENDS
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S)ENDIN# &Y MIDD"E C"ASS )O)'"ATION DRI+IN# #RO,T*
JANUARY 201
INDIAN ECONOMY AND TRENDS
SD!$.
3 trillion
SD3'.
" trillion
SD''.
8 trillion
2-- 2-2- 2-3-
1/ 1/ 1/0/ 0/ 0/
/ / !/
2!/
1/1-/
0/
13/
1/
1/ 1/1/
3/
2/
2-/
-/
11/
23/
Ind4
Euro5e
As4 )4676
8e96ludng
Chn4 $ Ind4:
Chn4
North Amer64
Cenrt4l $
South Amer64Mddle E4st $
North Afr64
Su;
8/16/2019 Indian Economy and Trends 27jan2015
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DI+ERSI(IED ECONOMY )RO+IDIN# +ARIO'S IN+ESTMENT O))ORT'NITIES
JANUARY 201
INDIAN ECONOMY AND TRENDS
Source?
8/16/2019 Indian Economy and Trends 27jan2015
8/36))For updated information, please visit
www.ibef.or
Strong
#inancial
regulatory
system
9I is among the best central banks in the orld
It controls the monetary policy o# India and acts as a atchdog over the banking system
S9I acts as the regulator o# the tin stock e2changes + the 9S and NS
Indian regulatory system as applauded #or its strong mechanisms that eathered the !"" global crisis
obust
Indianbanking
system
Indian banking system is a huge netork o# $'$ commercial banks ith more than $""/""" branches
Seventeen Indian banks rank in the top '"" global banks list/ ith S9I at the top among the Indian banks
In line ith the recent GHan Dhan o7na6 initiative/ more than $$" million ne bank accounts ere opened
A strong banking system creates a strong investment environment and increases liJuidity
COND'CI+E EN+IRONMENT (OR IN+ESTMENT
INDIAN ECONOMY AND TRENDS
JANUARY 201
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S)IRIT O( ENTRE)RENE'RS*I)
JANUARY 201
INDIAN ECONOMY AND TRENDS
,he year !"$% sa a spurt o# start&ups in India/ ith more than $/!"" ne ventures being set up
=ver SD' billion ere invested in Indian start&ups in !"$% ith more than 3"" deals
Innovation in education/ a##ordable healthcare and competitiveness o# small businesses are seen as important trends in the emerging
entrepreneurial activity
Dynamic entrepreneurs are launching ne businesses across the country/ selling products online/ providing healthcare/ education/
communication to the groing aspiring population o# the Indian middle class
&commerce and the service industry sa highest investments in !"$%
apid groth in the use o# the Internet/ and mobile and online shopping as ell as the success o# online retailers/ such as lipkart
and Snapdeal/ has made the Indian start&up space a #avoured destination #or investors across the orld
:overnment has taken initiatives to boost entrepreneurship in the country
SD$.4 billion start&up #und set by the :overnment o# India
=ne stop e&portal #or all licenses set up by the government
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RISIN# IN+ESTMENTS IN T*E INDIAN MAR%ET
JANUARY 201
INDIAN ECONOMY AND TRENDS
" C45t4l As4? the 5r@4te e=ut> funds5onsored ;> the "+M* #rou5? ll m4e 4 6ou5leof n@estments orth 4round 'SDB- mllon e46h
n Ind4 ths >e4r
R4t4n T4t4 n@ested n Sn45de4l? &luestone 4nd'r;4n"4dder.6om n 2-10? sgn4llng huge5otent4l n the Ind4n onlne ret4l ndustr>
Am4on h4s 5ledged 'SD2 ;llon of n@estmentn ts Ind4n 4rm
+enture 645t4l n@estors 4re e95e6ted to r4se'SD2 ;llon n 2-1B
The 6om54n> 4s @4lued 4t 'SD11 ;llon 4fterthe re6ent mone> r4sng
(l54rt r4sed 'SD1. ;llon n 2-10 The 6om54n> 4s @4lued 4t 'SD11 ;llon 4fter
the re6ent mone> r4sngIn to rounds of fundng n 2-10? (l54rt r4sed
4round 'SD2 ;llon
Soft&4n 5um5ed n 'SD!2 mllon n e<6ommer6e 6om54n> Sn45de4l
In@ested 'SD21- mllon n t49 ser@6e 5ro@derOl4 C4;s
Source? Nes articles
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"R#N+!
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1212
5.85.!
4.
.%5.3
4.8
%.' %.8
4.%
For updated information, please visitwww.ibef.or
INDIA ON #RO,T* )AT* S'))ORTED &Y %EY RE(ORMS AND *I#*ERIN+ESTMENTS
JANUARY 201
INDIAN ECONOMY AND TRENDS
Source? -onthly conomic eport/ -inistry o# inance/ Aranca esearchK
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CO'NTRY TO RECORD *I#*EST (OOD#RAIN )ROD'CTION IN (Y 2-10
JANUARY 201
INDIAN ECONOMY AND TRENDS
Source? -onthly conomic eport/ -inistry o# inance/ Aranca esearch
Scanty rain#all in $" a##ected #oodgrain production. =rissa/ Hharkhand and 9ihar #aced a de#icit o# '' per cent/ %8 per cent and
! per cent/ respectively
oodgrain production increased at a CA: o# !.% per cent #rom !3% million tonnes in "5 to an estimated !4% million tonnes in$%
-a7or groth as observed in production o# pulses/ hich rose at CA: o# 4.$ per cent #rom $' million tonnes in "5 to an
estimated !" million tonnes in $%
India ranks second in the production o# rice/ sugarcane/ potatoes/ heat/ garlic and tomatoes
During $3/ Indian household spent SD!".3 billion on #ood/ indicating good business opportunity
,he country has estimated highest ever #oodgrain production o# !4% million tonnes during $%
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IM)RO+IN# TRADE &A"ANCE 812:
JANUARY 201
INDIAN ECONOMY AND TRENDS
Source? 38 per
cent o# the total imports
2port&import and trade balance (SD 9illion) =il and non&oil imports (SD 9illion)
"5 $" $$ $! $3 $%
"
$""
!""
3""
%""
'""
4"" &!""
&$"
&$4"
&$%"
&$!"
&$""
&"
&4"
&%"
&!"
"
$' $85!'$
3"4 3"" 3$33"% !38"
%5 %5$%'"
&$$&$$"
&$$5
&$3&$5"
&$38
2ports Imports
,rade balance (*S)
"5 $" $$ $! $3 $%
5% 8 $"4$'' $4% $4'
!$" !"$
!4%
33% 3!8 !'
=il imports Non&=il imports
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IM)RO+IN# TRADE &A"ANCE 822:
JANUARY 201
INDIAN ECONOMY AND TRENDS
Source? Department o# Commerce/ IA/ Aranca esearch
During !"$3/ India6s petroleum imports comprised !" per cent #rom Saudi Arabia/ !! per cent #rom other -iddle ast countries and
$% per cent #rom IraJ
=# the total e2ports/ oil contributes >!$ per cent
During $% e2port o# oil and minerals increased to SD4%.8 billion #rom SD4!.$ billion a year earlier
,he automobile industry contributed %.$ per cent to total e2ports. India is the seventh largest producer o# automobiles in the orld
,op #ive Importing commodities ( per cent) ( !"$%) ,op #ive e2porting commodities ( per cent) ( !"$%)
%".3
$3."4.
4.'
3.
!5.8
=il and -inerals
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INCREASIN# (OREI#N C'RRENCY ASSETS
JANUARY 201
INDIAN ECONOMY AND TRENDS
Source? -onthly conomic eport/ -inistry o# inance/ Aranca esearch
,he #all in oil prices #rom SD$$3 per barrel in Hanuary !"$3 to SD'$ per barrel as o# Hanuary !"$' has helped India to increase
#oreign currency assets to SD!53 billion as o# November !"$%
-oreover/ Indian currency got strengthened against SD in $% compared to $3 hen it as trading at all time high o# >IN45
per $SD
apidly rising e2ports compared ith imports has supported a rise in #oreign assets. 2ports rose at a CA: o# $$ per cent during
"5+$%/ hile imports increased at a CA: o# .! per cent #or the corresponding period
oreign Currency Assets (SD 9illion)
" "5 $" $$ $! $3 $% NovO$%
!55
!%!!''
!8'!4$ !4$
!8!53
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II) #EARIN# TO,ARD T*E RI#*T AND )OSITI+E DIRECTION
JANUARY 201
INDIAN ECONOMY AND TRENDS
Source? -onthly conomic eport/ -inistry o# inance/ Aranca esearch
Industrial
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#RO,T* O( EI#*T CORE SECTOR NECESSARY (OR O+ERA"" #RO,T* ININD'STRIA" )ROD'CTION
JANUARY 201
INDIAN ECONOMY AND TRENDS
Source? -onthly conomic eport/ -inistry o# inance/ Aranca esearch
,otal production groth (per cent) in core in#rastructure commodities ight core in#rastructure industries reported a groth
o# %.3 per cent during April to =ctober !"$'
,he highest groth as reported by lectricity ($".' per
cent)/ #olloed by Coal o# (.' per cent)
,hese eight industries contribute >3 per cent to the
industrial production
,he thermal poer sector itnessed increased
investment as India targeted capacity addition o# $8%.5
:0 by !"!!
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oad and
*ighays
=utlay o# SD3. billion is planned #or highays #or the current year
In#rastructure development orth SD$5 billion is planned during !"$!+$8
Completed $"" public private partnership pro7ects (
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IN("ATION MEETIN# T*E CENTRA" &AN%GS TAR#ET
JANUARY 201
INDIAN ECONOMY AND TRENDS
Source? -onthly conomic eport/ -inistry o# inance/ Aranca esearch
9I has targeted a 4 per cent in#lation by Hanuary !"$4
In#lation #or November !"$% came don to "." per cent supported by easing o# #uel and #ood prices as these to components are
substantial part o# the Consumer
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R#F-R!
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INC"'SI+E INDIA H T*E #RO,T* A#ENDA
JANUARY 201
INDIAN ECONOMY AND TRENDS
Source? conomic Survey !"$3&$% 1? evised stimates 9? 9udget stimates
India has reneed its groth strategies to target rising ineJuality as ell as overall ell&being o# Indians
IneJuality as measured by the :ini coe##icient/ a measure o# statistical dispersion/ dropped #rom 34. in !"$"&$$ to 33.% in !"$$&$!
IneJuality in India is not as much as in other emerging economies. Among the 9ICS (9rail/ ussia/ India/ China and South
A#rica) nations/ the :ini coe##icient in South A#rica as the highest at ".43/ #olloed by 9rail (".'' in !"$!)/ China (".%3) and
ussia (".%")
,he ne government has launched various ne schemes such as Han Dhan o7na/ ? housng? et6. 2.B/ 2.0/ 2.0/ 2.1/ 1./ 2.2/
d. Inform4ton $ ;ro4d64stng -.2/ -.2/ -.2/ -.2/ -.2/ -.2/
e. ,elf4re of SCsSTs 4nd O&Cs -.0/ -.0/ -.!/ -.!/ -.B/ -.!/
f. "4;our $ em5lo>ment -.3/ -.2/ -.2/ -.3/ -.3/ -.3/
g. So64l elf4re $ nutrton 1.2/ -./ 1.-/ 1.3/ 1.1/ 1.2/
h. North
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)RAD*AN MANTRI FAN D*AN YOFANA 8)MFDY: H A SC*EME (OR (INANCIA"INC"'SION 812:
JANUARY 201
INDIAN ECONOMY AND TRENDS
Source?
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)RAD*AN MANTRI FAN D*AN YOFANA 8)MFDY: H %EY STATISTICS 822:
JANUARY 201
INDIAN ECONOMY AND TRENDS
Source?
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)RAD*AN MANTRI SANSAD ADARS* #RAM YOFANA 8)MSA#Y: H A SC*EME(OR R'RA" DE+E"O)MENT
JANUARY 201
INDIAN ECONOMY AND TRENDS
Source?
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SMART CITIES AND &'""ET TRAINS H &'I"DIN# A NE, INDIA
JANUARY 201
INDIAN ECONOMY AND TRENDS
Source?
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MA%E IN INDIA H S*A)IN# ') INDIAN MAN'(ACT'RIN# 812:
JANUARY 201
INDIAN ECONOMY AND TRENDS
Source? -ake in India 0ebsite/ Nes Articles/ Aranca esearch
,he -ake in India campaign as launched in September !"$%
,he campaign is set o# plans to cut red tape/ develop
in#rastructure and create a businessriendly environment
At present/ manu#acturing share in the :D< is $' per cent and
the government aims to reach !' per cent
,he ob7ective o# the campaign is to make India a better place
to do business and create employment opportunities hich
ould result in better purchasing poer
About
,his campaign ould boost up manu#acturing activity. Bey
re#orms ould support the decrease in the cost. or e2ample/
:oods and Service ,a2 (:S,) ould create substantial
savings #or a company operating in the logistics segment
9oost in manu#acturing activity ould lead to increased
employment/ thus improving the purchasing poer
Sel#&reliability on indigenous products ould control trade
de#icitsIndian products ould enter international markets due to
improved cost structure
-ain ob7ectives
e9i portal has been made available !%18 #or online application o# Industrial icense and Industrial ntrepreneur -emorandum
Ealidity o# the Industrial icense has been e2tended to three years
Industrial licensing has been removed #or most o# the components o# de#ence products
State government has been asked to launch sel#&certi#ication and third&party certi#ication under the 9oilers Act All returns are turned into online #illing in uni#ied #orm
Items having dual use in military and civilian applications have been deregulated
Clearance process turned online
Sel#&certi#ication has been introduced #or all non&risky and non&haardous businesses
Ne process? Ne de&licensing and deregulation measures
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De#ense
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C"EAN #AN#A AND ECO
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&ETI &AC*AO &ETI )AD*AO SC*EME
JANUARY 201
INDIAN ECONOMY AND TRENDS
Source? vikaspedia.in/ nes articles/ Aranca esearch
,he government to launch R9eti 9achao/ 9eti
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STATES &OOSTIN# #RO,T* &Y INNO+ATI+E MET*ODS
JANUARY 201
INDIAN ECONOMY AND TRENDS
=ver the years/ many Indian states have come up ith re#orms at the state levelDeveloping states/ such as Sikkim/ 9ihar/ :u7arat/ :oa/ have shon higher groth during !""%+$3 compared ith developed states
like -aharashtra and Barnataka
Inno@4t@e nt4t@es ;> st4tes
!eminars!ummits
Vibrant Gujarat: The ;enn4l n@estorsG summt held n #uJ4r4t tnessed 4 huge su66ess n2-1B. The summt s4 54rt654nts from o@er 1-- 6ountres. The summt 5ro@des enormous5ros5e6ts to the St4te to ds5l4> ts strengths? groth 5otent4l? nt4t@es t4en to m5ro@ego@ern4n6e? n@estor frendl> 6lm4te 4nd 4rt $ 6ulture of #uJ4r4t. More th4n 'SD0-- ;llon
orth of Mo's ere sgned n the summt
!ingle3indow4learanee5anism
Telangana: Im5lement4ton of Sngle ,ndo A6t th deemed 6le4r4n6esRajasthan: Im5lement4ton of Sngle ,ndo A6t th tme< ;ound 6le4r4n6esMadhya PradeshK M4dh>4 )r4desh In@estment (46lt4ton A6t 54ssed n 2-- set u5 4 snglendo 6le4r4n6e se6ret4r4t for n@estment f46lt4ton
6ndustriallusters
Tamil NaduK Cre4ton of l4rge s64le 4utomot@e hu;Gujarat K Cre4ton of )h4rm46eut64l hu;? 4utomot@e hu;
7abourreforms
MaharashtraK Onlne l4;our m4n4gement s>stem to 4dmnster l4;our l4s 4nd 5ro@de r4ngeof l4;our m4n4gement ser@6es onlneGujarat K Strong sll de@elo5ment nt4t@es through ndustr> 54rt654ton
#nvironmentrelatedomplianes
Gujarat K Im5lement4ton of e< go@ern4n6e ;> the #uJ4r4t )olluton Control &o4rd
+eentralised lanning
Madhya PradeshK M4dh>4 )r4desh ll ;e the 7rst st4te to h4@e M4ster )l4ns for 4ll ts@ll4ges ;> 2-1B
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abor la
Ne labour las issued to end GInspector aa76
Single indo compliance indo #or companies
Schemes like Shram Suvidha
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&'I"DIN# ') T*E (OREI#N RE"ATIONS
JANUARY 201
INDIAN ECONOMY AND TRENDS
-ending #oreign relations along ith the groing India story has led to huge investment plans proposed by many countries
Ind4n 6om54nes n'SD2.1 trllon 546t to;u> d4monds from
Russ4
Ind4 4nd Austr4l4 sgn6@l nu6le4r de4l H 4nm5ort4nt me4sure for
Ind4Gs energ> 5ros5e6ts
Ind4Gs )rme Mnster@sts Austr4l4 4fter 2
>e4rs
'S )resdent &4r46O;4m4 to ;e the Chef#uest for the Re5u;l6
D4>
Ind4n )rme Mnster@sts Ne54l 4fter 1
>e4rs
+sted 4ll the SAARC6ountres 4nd 5ro5osedstrengthenng of SAARC
*4d he4ds of 4ll ;ge6onomes @stng Ind4
n 2-10 < 'S? Chn4?Russ4? '%
&RICS ;4n to ;e set u5?th 4n Ind4n to he4d t
for the 7rst 7@e >e4rs
Ind4 5ro5osedn@estments n M>4nm4r4nd &hut4n to hel5 themn ther de@elo5ment 54th
Source? Nes articles/ Aranca esearch
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-U"7--8
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F-R -R# 6NF-RA"6-N
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''
F-R -R# 6NF-RA"6-N