india as future power

8/9/2019 India as Future Power

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India as the FutureIndia as the Future

SuperpowerSuperpower

Presented By:Presented By:--

Saira Ansari (03)Saira Ansari (03)

Anupam Kaushik (16)Anupam Kaushik (16)

Dhruvin Shah (20)Dhruvin Shah (20)

Rajiv Siddhartha (21)Rajiv Siddhartha (21)


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Indicators 1990-91 2006-07

Real GDP USD 48 billion USD 759 billion

GDP growth 5.30% 9.4%

Forex Reserves USD 1 billion USD 312 billion

FDI USD 0.36 billion USD 15.7 billion

Inflation 10.30% 4.60%

Labour Force 364 million 520 million

Average Literacy 52.20% 65.40%

Indicators are the strongest they haveIndicators are the strongest they have

ever beenever been


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Real GDP (2006)Real GDP (2006)

12457

4617

28292225 2213 2132 1720

787 7590

2000

4000

6000

8000

10000

12000

14000

USA Japan Germany China UK France Italy Brazil India

(USD Billion)


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India ranks 4India ranks 4THTHon PPPon PPP

0 2 4 6 8 10 12 14

USA

UK

Germany

India

China

Japan

12.41

1.87

2.45

3.7

8.18

3.91

(USD Trillion)


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0

5000

10000

15000

20000

25000

30000

35000

40000

45000

China USA India Japan Brazil Russia UK Germany France

44453

35165

27083

66736074 5870

37823063 3148

(USD Billion)

India is expected to be the 3India is expected to be the 3rdrd largest economy by 2050largest economy by 2050


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India is the only Economy expected to grow at ratesIndia is the only Economy expected to grow at rates

significantly above 5% between 2005significantly above 5% between 2005--20502050


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India has the 5India has the 5thth largest Forex reserveslargest Forex reserves

amongst developing economiesamongst developing economies

0

100

200

300

400

500

600

700

800

900

1000

China Taiwan South Korea India Russia Hong Kong Singapore Malaysia Mexico

950

310 302280

225

152 144132

85

(USD Billion)


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Major FDI driversMajor FDI drivers

13%

17%

25%

32%

13% Government incentive

Wages

Labour Force Skills

Market Size Potential

Opportunities in InfrastructureDevelopment

India is the second most favoured destination for FDI


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Future of FDI flowsFuture of FDI flows

The prospects appear better than in

the past because of the growth

phase in the Indian economy

Sectorally also there is a lot of scope


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Electrical Equipments and Telecom areElectrical Equipments and Telecom are

the highest recipients of FDIthe highest recipients of FDI

33%

15%

4%

1%2%

16%

5%

10%

4% 10%Electrical Equipment

Services

Drugs and pharmaceuticals

Food Processing Industries

Fuels

Telecom

Transportation

Chemical

Mettalurgical Industry

Cement and Gypsum Products


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InflationInflationLow and stable level of inflation is

conducive for growth.

High inflation is harmful for the common

man and also is bad for investment.

Thus we feel that inflation rates will hover around 4% in the nearfuture as it is conducive for growth


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Growth in the labour forceGrowth in the labour force

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

(In Million)

668.1

520


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Recognition of the workforce problemRecognition of the workforce problem

...spurred by the retirement of more than 61 million workers in the next 30

years, workforce will be short of almost 5 million workers by 2011 and almost 36

million workers by 2031...

- Ed Potter, President, US Employment Policy Foundation

Germany would have to bring in 1.2 million immigrants annually if Europe's

biggest economy and world's third largest economy hopes to avoid a crippling long-term labour shortage due to the ageing of its own work force.

- German Institute of Economic Research, 2001


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Recognition of the workforce problemRecognition of the workforce problem

By 2003 the U.K. will lack 300,000 skilled IT workers, causing a significant cost to

businesses productivity. This skills gap is forcing up the average salary of a skilled

IT Manager to over 70,000 - a cost that many small and medium-sized businesses

struggle to justify

- European commission research, 2000

...ageing of society is the biggest problem facing Japan.....Japan would

need 600,000 immigrants a year to make up for the shortfall in itsworkforce later this decade

- The Guardian, U.K., Aug 2, 2001


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LiteracyLiteracy

Education holds the key to economic growth and social

transformation

There is enough evidence in India to show that a high literacy

rate, especially in the case of women, correlates with low

birth rate, low IMR and increase in the rate of life expectancy

This is not simply to foster social justice but also to foster

economic growth, social well- being and social stability


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Literacy(contd)Literacy(contd)

The National Policy on Education formulated in1986 and modified in 1992 aims to play apositive and interventionist role in correctingsocial and regional imbalances

There is also an obligation, under the

Constitution's 86th Amendment, for makingavailable free and compulsory education to allchildren in the age group of 6-14 years.


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Literacy(contd)Literacy(contd)

Budget AllocationBudget Allocation-- Education continues to enjoy primacy in

the recent budget of 2007-08 and the allocation for schooleducation has been enhanced by about 35 per cent fromRs.17,133 crore in 2006-07 to Rs.23,142 crore in 2007-08.

MeansMeans--CumCum--Merit ScholarshipsMerit Scholarships-- It has also been

proposed in the 2007-08 budget to introduce National Means-cum-Merit Scholarship Scheme to arrest drop out ratio


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SarvaShiksha AbhiyanSarvaShiksha AbhiyanIt is an effort to universalise elementary education by

community-ownership of the school system.

Objectives of Sarva Shiksha AbhiyanObjectives of Sarva Shiksha Abhiyan

All children complete five years of primary schooling by 2007

All children complete eight years of elementary schooling by 2010

Focus on elementary education of satisfactory quality with

emphasis on education for life Bridge all gender and social category gaps at primary stage by 2007

and at elementary education level by 2010

Universal retention by 2010


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TargetedLiteracyTargetedLiteracy

India plans to attain 85% literacy by

the end of the 11th five year plan

United Nations has set a goal for

100% literacy by the year 2015


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ConclusionConclusion

As seen , all the indicators discussed in thispresentation are showing positive signs and are thus

conducive in making India the next superpower.

However, we must ensure that roads, flyover and all

other infrastructure is developed , and the inequalitymust be reduced. After all, growth must benefit alland not a particular section of the society


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ThanksThanks

india as future power

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