ideal ppt

Changing structure of Indian economy in the globalized eraBy- KIRAN)INTROThe structure of GDP at factor cost refers to the share of primary, secondary and tertiary sectors in the GDP at factor cost.Structural changes in output refer to the changes in relative contribution of the 3 sectors in GDP (at factor cost) over the yearsOverall GDP Growth Rate Real Growth Rates of GDP at Factor Cost Year(percent)2005-06 9.52006-079.62007-089.32008-096.72009-108.42010-118.42011-126.9The growth rate had fallen to 6.7 in 2008-09 due to global financial crisis.The slowdown in 2011-12 was the result of global and domestic factors.The global factors were the crisis in the Euro zone area and near recessionary conditions prevailing in Europe, sluggish growth in many industrialized countries like USA and Japan and rise in international prices of crude oil. Domestic factors especially the lightening of monetary policy, led to slowing down of investment and growth.CHANGES IN THE SECTORAL COMPOSITION Percentage Share of Different Sectors in GDP atCostS.NOSector1950-511990-912010-111Agriculture and Allied Activities56.133.3 16.82Industry 14.424.1 25.63Services 29.542.6 57.6TOTAL1001001001.Decreasing Share of Agriculture and Allied Activities2.Rising Share of Industry3.Increasing Share of ServicesPercentage Share of Different Components ofServices in GDP at Factor CostComponents of Services1950-512010-11a) Trade, hotels, transport & communication 11.3 27.2b) Financing, insurance, real estate andbusiness services7.7 17.4

c) Public administration and defense and other10.513.0Total share of services sector in GDP 29.557.6The services sector is composed of three components and their share in the GDP have increased.

SHORTCOMINGS IN INDIA'S GROWTHPERFORMANCE

Following are the shortcomings in the India's growth performance.Faster growth has not reduced poverty as much as it should have done. Growth has not created sufficient number of high quality jobs to satisfy the aspirations of our increasingly educated youths. Growth has not been as regionally balanced as it should have been. The deficiencies in social development indicators such as primary education, primary health care, safe drinking water, nutrition, sanitation, etc., have also continued to exist. The low level of social development is affecting the country's economic development. Despite progress in many areas, we are woefully lacking in providing basic services such as healthcare, education, safe drinking water, etc., to the majority of our population especially in rural areas. There is lack of infrastructure which is affecting the economic growth in the country.Thank you