Managerial Economics: Submitted To

DR AKHILESH DAS GUPTA INSTITUTE
OF TECHNOLOGY AND MANAGEMENT
MANAGERIAL ECONOMICS
TOPIC=
RECENT ECONOMIC DEVELOPMENT IN
INDIA
SUBMITTED TO=
DR. DIVYA GANGWAR
SUBMITED BY= M.B.A (SECTION B)
 NIKHIL KAPOOR
 ABHISHEK SHUKLA
 ARJUN ZADOO
 AKASH SHARMA
 KESHAV KUMAR
 BHARAT GUPTA
 VINAY TYAGI
 GAURAV KUMAR
 ANKITA SONI
OVERVIEW OF INDIAN ECONOMY
 THE INDIAN ECONOMY IS
TRANSFORMED INTO A VIBRANT,
RAPIDLY GROWING CONSUMER
MARKET, COMPRISING OVER 300
MILLION STRONG MIDDLE CLASS WITH
INCREASING PURCHASING POWER.
 India has emerged as the fastest

growing major economy in the world as
per the Central Statistics Organization
(CSO) and International Monetary Fund
(IMF) and it is expected to be one of the
top three economic powers of the world
over the next 10-15 years, backed by its
strong democracy and partnerships.
DEFINING ECONOMIC
GROWTH
 Economic growth is the increase in
the inflation or market value of the
goods and services produced by an
economy over a time. It is measured as
the percent rate of increase in real
gross domestic product, or real GDP.
 Growth is usually calculated in real

terms. Since economic growth is
measured as the annual percent change
of gross domestic product (GDP). The
economic growth rates of nations is
commonly compared using the ratio of
the GDP to population or per-capita
income.
DEFINING ECONOMIC
DEVELOPMENT
Economic Development is defined
as the process of increase volume
of production along with the
improvement in technology, a rise
in the level of living, institutional
changes, etc. In short, it is the
progress in the socio-economic
structure of the economy.
Human Development Index (HDI) is
the appropriate tool to gauge the
development in the economy.
economic growth is one aspect of
the process of economic
development.
DIFFERENCE BETWEEN ECONOMIC
GROWTH AND DEVELOPMENT
GROSS DOMESTIC PRODUCT
 Gross domestic product
(GDP) is the monetary value of
all the finished goods and
services produced within a
country's borders in a specific
time period. Though GDP is
usually calculated on an annual
basis
 GDP includes all private and
public consumption, government
outlays, investments, costs and
the foreign balance of trade
(exports are added, imports are
subtracted).
GDP DURING LAST FOUR YEAR
YEAR GDP (crore GDP
INR) GROWTH
2013-2014 6.54%
9,817,822
2014-2015 7.18%
10,522,686
2015-2016 7.93%
11,357,529
2016-2017 7.11%
12,165,481
GRAPHICAL REPRESENTATION
OF GDP
SECTOR OF INDIAN
ECONOMY
PRIMARY TERTIARY
SECTOR SECTOR
SECONDARY
SECTOR
PRIMARY SECTOR
The primary sector of Indian
economy depends directly on
natural resources to execute the
various processes and manufacture
the goods and services needed to
keep the whole operation going.
Examples of primary sector: In
India, agriculture is the biggest
example of the primary sector.
However, forestry and fishing can
also be cited as other examples of
this particular sector. d to keep the
whole operation going.
SECONDARY SECTOR
A secondary sector is a sector
whereby the raw material that is
extracted from earth is converted
to semi- finished goods or finished
goods.
secondary sector follow the
primary activities, in which the
natural products are changed to
manufacture different
commodities.
Examples of secondary sector
activities are manufacturing and
construction
TERTIARY SECTOR
 Tertiary Sector activities help in the
development of the primary and
secondary sectors. These activities,
by themselves, do not produce a good
but they are an aid or a support for
the production process.
 For example, goods that are produced
in the primary or secondary sector
would need to be transported by
trucks or trains and then sold in
wholesale and retail shops also called
the service sector.
 Examples of tertiary sector activities
are banking, insurance, finance etc.
AGRICULTURE
 India is mainly an agricultural country.
Agriculture is the most important
occupation for most of the Indian
families.
 In India, agricultural produce
contributes about sixteen percent
(16%) of total GDP and ten percent
(10%) of total exports.
 Agriculture is the backbone of Indian
economy. Though, with the growth of
other sectors, the overall share of
agriculture on GDP of the country has
decreased.
 Agricultural products of significant
economic value includes rice, wheat,
potato, tomato, onion, mangoes,
sugar-cane, beans, cotton, etc.
SERVICE SECTOR IN INDIA
Service Sector of Indian Economy
contributes to around 55 percent
of India's GDP during last years.
This sector plays a leading role in
the economy of India, and
contributes to around 68.6 percent
of GDP.
IT INCLUDES
 HOTEL
 RESTAURANTS
 RAILWAYS
 COMMUNICATION SERVICES
 BANKING AND INSURANCE
 BUSINESS SERVICES ETC.
SECTORIAL CONTRIBUTION
TO GDP AND EMPLOYMENT
SECTORS GDP(%) EMPLOYMENT
(%)
AGRICULTURE 17.5% 52%

INDUSTRIAL 20% 14%
SERVICE 62.6% 34%
GRAPHICAL REPRESENTATION
OF CONTRIBUTION TOWARDS
GDP
Following are the highlights of the
Economic Survey 2017-18 tabled by
Finance Minister Arun Jaitley in the
Lok Sabha on January 29, 2018.
 GDP to grow 7-7.5% in FY19; India to regain
fastest growing major economy tag
 GDP growth to be 6.75% in FY2017-18
 Policy vigilance required next fiscal if high
oil prices persist or stock prices correct
sharply
 Policy agenda for next year -- support
agriculture, privatise Air India, finish bank
recapitalisation
 GST data shows 50% rise in number of
indirect taxpayers
 Tax collection by states, local
governments significantly lower than those
in other federal countries
 Demonetisation has encouraged financial
savings Insolvency Code being actively
used to resolve NPA woes
 Retail inflation averaged 3.3% in 2017-18,
lowest in last 6 fiscals
 India needs to address pendency, delays
and backlogs in the appellate and judicial
arenas
 Urban migration leading to feminisation of
farm sector
 Rs 20,339 cr approved for interest
subvention for farmers in current fiscal
 FDI in services sector rises 15% in 2017-18
on reforms
 Fiscal federalism, accountability to help
avoid low equilibrium trap
 India’s external sector to remain strong on
likely improvement in global trade
 Technology should be used for better
enforcement of labour laws
 Swachh Bharat initiative improved
sanitation coverage in rural areas from
39% in 2014 to 76% in January 2018.
 Priority to social infrastructure like
education, health to promote
inclusive growth .
 Centre, states should enhance
cooperation to deal with severe air
pollution .
 Suvey 2017-18 in pink colour to
highlight gender issues .
 Indian parents often continue to
have children till they have the
desired number of sons .

Managerial Economics: Submitted To

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Managerial Economics: Submitted To

Uploaded by

DR AKHILESH DAS GUPTA INSTITUTE

OF TECHNOLOGY AND MANAGEMENT

 India has emerged as the fastest

 Growth is usually calculated in real

AGRICULTURE 17.5% 52%

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