India Then and Now! By: Ankit Sood Matrikel Nu.:
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1 India Then and Now! By: Ankit Sood Matrikel Nu.: April
2 Facts & Figures India is world s largest, oldest and continuously existing civilization. Dates back to 9000 BC. India had world s oldest known university at Takshila (now in Pakistan) between BC. India has been pioneering science and inventions since Ancient and Medieval ages. Zero Medical Surgery, Cataract, Plastic Surgery Yoga Chess Binary Numbers Till 18 th Century, India was the only source of Diamonds in the world. India today is world s 7 th largest by area and 2 nd most populous country. India is also world s largest democracy. India has over 1600 spoken languages. India has largest postal system & 2 nd largest road network. India has the 3 rd largest active army in the world. But has never invaded any country in last 1000 years! India has largest English speaking population. Big MNC's like Microsoft, Pepsico, Adobe, Deutsche Bank, HP, and MasterCard are headed/co-headed by Indians. 7. April
3 India Before British Rule (3000BC-1700AD) India has been a trade hub since the ancient Indus Valley Civilization in 3000 BC. Between 300 BC and 1700 AD, India had world s largest economy and GDP share. The economy was based on subsistence farming, handicrafts and surplus trade. Trade was highly encouraged by Indian emperors. Low custom duty to promote foreign trade Roads were developed for the traders to commute Silk, spices, cotton, diamonds were major products from India Special Highway Police was formed to safeguard travelling traders Since ages, India can be considered to have been globalized. According to estimates, India alone accounted for around 27% of world s GDP in 1700 AD. Trade Routes Entire Europe at the time accounted for only 23% of world share. In 1700 AD, Indian emperor declared annual revenue of 100 million (British treasury in 1800 AD was only 18 million!) 7. April
4 India During British Rule ( AD) British East India Company landed in India in 1612 AD for trade. And slowly entered the game for dominance in Indian-sub-continent. Started expanding the British empire with Bengal. Continued expansion by winning against other rulers. Systematically looted Indian treasures AD 1823 AD Koh-i-Noor Diamond East India Company managed to dominate major portions of Indian sub-continent by 1840 AD. With Britain s Industrialization in 1800s, Indian economy was forcefully reduced to raw material exporter. Industrialization of India was prevented to safeguard British industry Strategic development of Railways and Postal services was done in mid-1800s. But Indians were involved only as un-skilled laborers. GDP fell to less than 5% of world GDP under British Rule at end of 19 th century. High revenue was collected from farmers. Cash crops were forced to be cultivated. Led to numerous famines, poverty and hunger! 7. April
5 Independence of India ( AD) India s long agonizing freedom struggle started in It was suppressed, and led to end of the East India Company s rule in the sub-continent. British crown under Queen Victoria took over the control of entire Indian sub-continent. Freedom struggle continued under leadership of numerous different figures. Finally it was under Mahatma Gandhi s leadership, that India won its independence on 15 th August It was not without dire consequences. Indian sub-continent was divided into India and Pakistan (East and West) Un-estimated number (over a million) of people were killed or migrated from their native lands and ended up as refugees. Princely state of Jammu & Kashmir is, till today, the cause of tensions between India and Pakistan! India became a Republic on 26 th January 1950 and had first national elections in April
6 Post-Independence Development ( AD) India s GDP was below 3% in Development was a huge uphill task. Under Pt. Jawaharlal Nehru (first PM of India), India adopted a Mixed-Planning Economy model and worked on Five Year Plans. The advantage of planning economy was that it focused on weaker sections of economy for targeting specified growth rates during mentioned periods. Education & health services Energy, agricultural and industrial output Highways, roads and tourism Salient features of First Plan ( ) were: Development of agriculture and irrigation projects Established 5 Indian Institute of Technology for higher technical education Contracts for establishment of 5 steel plants Second Five year Plan ( ) focused on development of heavy industries. Nuclear Research Center (BARC) was set up in 1954 and Indian Space Research Organization (erstwhile INCOSPAR) in Green Revolution in 1970s resulted in making India self-sufficient in agricultural production. White Revolution in 1970s and 1980s made India the largest milk producer in the world. 7. April
7 Economic Liberalization in India ( AD) The growth during first quarter century after independence was quite slow (3% average). Most of the projects undertaken were long duration, capital intensive. Hence growth rate was not high and averaged around 6% during 1980 s and 90s. In 1990, government brought major economic reforms: More impetus was given on foreign trade Capital investments from private players was made easy Promoted entrepreneurship with tax benefits for new businesses GDP % growth April
8 IT and Services Boom (2000-Present) Growth was again slow during at around 5.5% But after 2002, India turned into global R&D hub for Pharma, Auto and Software sectors. Telecom and IT sector received a major thrust during early 2000s. IT industry accounted for 7% of total GDP in 2008 and share is steadily increasing Industry (manufacturing and services) and Agriculture sector dominate the Indian economy. Contributed to 70% of total employment and 43% of total GDP in GDP % growth rates from 2000 onwards 7. April
9 Hurdles Ahead India is still ranked 134/189 economies in World Bank s report on Ease of Doing Business Easy to get credit and investor protection norms are well placed Procedures signing contracts, documentation etc. are time consuming Lack of fully developed infrastructure and energy Population is the biggest concern for India. Education of masses is the only solution. Electricity & Energy India has the 4 th largest installed capacity in the world (238GW + 40GW captive) Still nearly 300 million population lacks continuous (or any) electricity supply Expected to add more than 600GW-1200GW till 2050 India has vast oil resources, but need to develop them quickly to ease Oil imports Corruption is severely hampering the growth of India. Ranked 94 th among 177 countries Right to Information (RTI) act placed. But still major work has to be done. Environmental Degradation is a cause of concern. Air and water pollution need immediate attention. Initiatives taken in big cities to move to cleaner CNG vehicles, metro trains As per ILO s estimates, unemployment rate for India is expected to hit 3.8% this year Tourism is a huge untapped sector undergoing rapid development. Expected to become 3 rd largest. Impetus required on improving credibility and safety for tourists. 7. April
10 Future Outlook IMF has projected Indian economy to grow at a rate of 6% in FY15. Current National Elections (results in May 14) will have a major impact on the future economic scenario. Problem of Population, Education and Environment will continue to be a major source of concern in coming decades. Based on a report by Moody s, Indian economy is expected to continue improving in long run. Depends largely on the upcoming government policies and global environment. 7. April
11 Mother Earth provides enough to satisfy every man s need but not every man s greed - MK Gandhi FH AACHEN
12 References April
13 THANK YOU! 7. April
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