1. 1.MOHD ARIF
2.BUSHRA ZAHIR KHAN
3.ARTI YADAV
4.ARMAN ALI
5.ARUNIMA SHARMA
6.DIMPLE KUMARI
7.JYOTSNA
MIDDLE INCOME TRAP

2. WHATS THE INDIA STORY

3. Rising GDP growth
% average annual GDP growth
1900 1950 1.0
1950 1980 3.5
1980 2002 6.0
2002 2006 8.0
Sources: 1900-1990: Angus Madison (1995), Monitoring the World Economy, 1990-2000:Census of India (2001), 2000-2005 Finance Ministry

4. Population growth is slowing
% average annual growth
1901 1950 1.0
1951 1980 2.2
1981 1990 2.1
1991 2000 1.8
2001 2010 1.5
Sources: 1900-1990: Angus Maddison (1995), Monitoring the World Economy, 1990-2000:Census of India (2001)

5. Literacy is rising
%
1950 17
1990 52
2000 65
2010 (proj) 80
Source: Census of India (2001)

6. Productivity is rising
30% to 40% of GDP growth is due to
rising productivity

7. Middle class is exploding
% Million
People
1980 8 65
2000 22 220
2010 (proj) 32 368
Source: The Consuming Class, National Council of Applied Economic Research, 2002

8. WHAT IS A MIDDLE INCOME TRAP
Countries stagnating and not growing to advanced country levels

9. INCOME AND CONSUMPTION TRRNDS

10. Figure 1. Changes in income share by economic class

11. Figure 2. Growth in inflation-adjusted family income

12. Figure 3. Inflation-adjusted median family income

13. Figure 5. Annual hours of work in married families, 1979 & 2000

14. priorities for becoming a determined marathoner

15. Enormous challenge of managing threesimultaneous transformations

16. Managing three transformations simultaneously will be an enormous challenge. To do so, India must anticipate and adapt to the changes wrought by each of these transformations individually and collectively

17. THREE DIMENTIONS TO GROWTH

• Societymoving from a poor society to a

cohesive affluent society

• Economymoving from a domestically oriented

to a globally competitive economy

• Worldmoving from a small player to a responsible

global citizen

18. Indias long-term prospects and growth will depend on its ability to balance all three dimensionssociety, economy and global citizenshipas it makes policy decisions

19. Overarching issues of governance

20. facets of governance must change to transform the Indian economy and society:

21. Create a smarter, more focused, agile and more credible government.
Retool the civil service to meet the needs of today and tomorrow.

22. Focus on the long term and open the public private dialogue.
Support competitive markets and prevent capture of state organs.

23. Inculcate a code of self-discipline and ethical behavior within the business community.
Reverse the deterioration in political governance.

24. Implement priorities, monitor results, ensure
transparency and enforce accountability.

25. A refocused government is essential to facilitating dramatic transformations in the Indian economy and society. There is a need to rethink not only what the government does but also how it does it

26. intergenerational issues requiring an immediate start

27. Tackle disparities and achieve inclusive growth.
Dramatically improve the quality of the environment.

28. Eliminate infrastructure bottlenecksCreate a competitive edge.
Improve the delivery of public servicesCreate
functioning cities for sustaining growth.

29. Renew the focus on education, technological
development and innovationKeys to sustaining
improvements in competitiveness.
Launch a revolution in energyEnsure security and competitiveness.

30. Foster a prosperous South Asia and become a responsible global citizenIndia, its neighborhood
and the world.

31. THE END