indian economy and trends 27jan2015

8/16/2019 Indian Economy and Trends 27jan2015

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INDIAN ECONOMY AND TRENDS

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JANUARY 201


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22


Strengths………………………….3

Trends…………………………….11

Reforms……………………………22

Outloo…………………………….3!


JANUARY 201


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!"R#N$"%!


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"AR#E $ S%I""ED "A&O'R (ORCE S'))ORTS INDIAN ECONOMY


JANUARY 201

National Skill Development

Corporation (NSDC) to provide

training to 3.3 million students this

year

It currently provides training in 33

sectors

About SD!"" million proposed

#or NSDC in the !"$%&$' budget

Second largest number o#

engineers and scientists

Second largest nglish&

speaking population in the orld

*ome to educational institutes

o# global repute + II,s and II-s

o average salary o#

SD'/"""+$"/""" p.a.

0orking age population1

e2pected to increase #rom ' per

cent in !""$ to 4% per cent by

!"!$

,he average age predicted to be

!5 years in !"!"/ loer than

China and the S

2pected to be home to !' per

cent o# the orld6s skilled

ork#orce by !"!'

$.' million graduates pass out

every year

!'" million people e2pected to

7oin the Indian ork#orce by

!"3"

Number o# engineering colleges

has increased #rom $/'$$ in

!""4&"8 to 3/3%' in !"$%&$'

Skilled labour force

Large pool

Source: 10orking age re#ers to age group o# $&4'

,he NSDC

initiative*igh

competency

Age

demographics

2panding

ork#orce

Large &

Skilled

Labour

Force


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C*EA) AND S%I""ED "A&O'R MA%ES INDIA MOST (A+O'REDDESTINATION (OR O'TSO'RCIN#

JANUARY 201

1980s

Airline companies/

such as/ 9ritish

Airays set up back

o##ices in India

1990s

iberalisation in

$55$

: sets up o##ice in

India; 4" per cent o# Indian

:D<

,op destination



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S)ENDIN# &Y MIDD"E C"ASS )O)'"ATION DRI+IN# #RO,T*

JANUARY 201


SD!$.

3 trillion

SD3'.

" trillion

SD''.

8 trillion

2-- 2-2- 2-3-

1/ 1/ 1/0/ 0/ 0/

/ / !/

2!/

1/1-/

0/

13/

1/

1/ 1/1/

3/

2/

2-/

-/

11/

23/

Ind4

Euro5e

As4 )4676

8e96ludng

Chn4 $ Ind4:

Chn4

North Amer64

Cenrt4l $

South Amer64Mddle E4st $

North Afr64

Su;


7/36((For updated information, please visit

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DI+ERSI(IED ECONOMY )RO+IDIN# +ARIO'S IN+ESTMENT O))ORT'NITIES

JANUARY 201


Source?


8/36))For updated information, please visit

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Strong

#inancial

regulatory

system

9I is among the best central banks in the orld

It controls the monetary policy o# India and acts as a atchdog over the banking system

S9I acts as the regulator o# the tin stock e2changes + the 9S and NS

Indian regulatory system as applauded #or its strong mechanisms that eathered the !"" global crisis

obust

Indianbanking

system

Indian banking system is a huge netork o# $'$ commercial banks ith more than $""/""" branches

Seventeen Indian banks rank in the top '"" global banks list/ ith S9I at the top among the Indian banks

In line ith the recent GHan Dhan o7na6 initiative/ more than $$" million ne bank accounts ere opened

A strong banking system creates a strong investment environment and increases liJuidity

COND'CI+E EN+IRONMENT (OR IN+ESTMENT


JANUARY 201


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S)IRIT O( ENTRE)RENE'RS*I)

JANUARY 201


,he year !"$% sa a spurt o# start&ups in India/ ith more than $/!"" ne ventures being set up

=ver SD' billion ere invested in Indian start&ups in !"$% ith more than 3"" deals

Innovation in education/ a##ordable healthcare and competitiveness o# small businesses are seen as important trends in the emerging

entrepreneurial activity

Dynamic entrepreneurs are launching ne businesses across the country/ selling products online/ providing healthcare/ education/

communication to the groing aspiring population o# the Indian middle class

&commerce and the service industry sa highest investments in !"$%

apid groth in the use o# the Internet/ and mobile and online shopping as ell as the success o# online retailers/ such as lipkart

and Snapdeal/ has made the Indian start&up space a #avoured destination #or investors across the orld

:overnment has taken initiatives to boost entrepreneurship in the country

SD$.4 billion start&up #und set by the :overnment o# India

=ne stop e&portal #or all licenses set up by the government


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RISIN# IN+ESTMENTS IN T*E INDIAN MAR%ET

JANUARY 201


" C45t4l As4? the 5r@4te e=ut> funds5onsored ;> the "+M* #rou5? ll m4e 4 6ou5leof n@estments orth 4round 'SDB- mllon e46h

n Ind4 ths >e4r

R4t4n T4t4 n@ested n Sn45de4l? &luestone 4nd'r;4n"4dder.6om n 2-10? sgn4llng huge5otent4l n the Ind4n onlne ret4l ndustr>

Am4on h4s 5ledged 'SD2 ;llon of n@estmentn ts Ind4n 4rm

+enture 645t4l n@estors 4re e95e6ted to r4se'SD2 ;llon n 2-1B

The 6om54n> 4s @4lued 4t 'SD11 ;llon 4fterthe re6ent mone> r4sng

(l54rt r4sed 'SD1. ;llon n 2-10 The 6om54n> 4s @4lued 4t 'SD11 ;llon 4fter

the re6ent mone> r4sngIn to rounds of fundng n 2-10? (l54rt r4sed

4round 'SD2 ;llon

Soft&4n 5um5ed n 'SD!2 mllon n e<6ommer6e 6om54n> Sn45de4l

In@ested 'SD21- mllon n t49 ser@6e 5ro@derOl4 C4;s

Source? Nes articles


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"R#N+!


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1212

5.85.!

4.

.%5.3

4.8

%.' %.8

4.%


INDIA ON #RO,T* )AT* S'))ORTED &Y %EY RE(ORMS AND *I#*ERIN+ESTMENTS

JANUARY 201


Source? -onthly conomic eport/ -inistry o# inance/ Aranca esearchK


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CO'NTRY TO RECORD *I#*EST (OOD#RAIN )ROD'CTION IN (Y 2-10

JANUARY 201


Source? -onthly conomic eport/ -inistry o# inance/ Aranca esearch

Scanty rain#all in $" a##ected #oodgrain production. =rissa/ Hharkhand and 9ihar #aced a de#icit o# '' per cent/ %8 per cent and

! per cent/ respectively

oodgrain production increased at a CA: o# !.% per cent #rom !3% million tonnes in "5 to an estimated !4% million tonnes in$%

-a7or groth as observed in production o# pulses/ hich rose at CA: o# 4.$ per cent #rom $' million tonnes in "5 to an

estimated !" million tonnes in $%

India ranks second in the production o# rice/ sugarcane/ potatoes/ heat/ garlic and tomatoes

During $3/ Indian household spent SD!".3 billion on #ood/ indicating good business opportunity

,he country has estimated highest ever #oodgrain production o# !4% million tonnes during $%


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IM)RO+IN# TRADE &A"ANCE 812:

JANUARY 201


Source? 38 per

cent o# the total imports

2port&import and trade balance (SD 9illion) =il and non&oil imports (SD 9illion)

"5 $" $$ $! $3 $%

"

$""

!""

3""

%""

'""

4"" &!""

&$"

&$4"

&$%"

&$!"

&$""

&"

&4"

&%"

&!"

"

$' $85!'$

3"4 3"" 3$33"% !38"

%5 %5$%'"

&$$&$$"

&$$5

&$3&$5"

&$38

2ports Imports

,rade balance (*S)

"5 $" $$ $! $3 $%

5% 8 $"4$'' $4% $4'

!$" !"$

!4%

33% 3!8 !'

=il imports Non&=il imports


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IM)RO+IN# TRADE &A"ANCE 822:

JANUARY 201


Source? Department o# Commerce/ IA/ Aranca esearch

During !"$3/ India6s petroleum imports comprised !" per cent #rom Saudi Arabia/ !! per cent #rom other -iddle ast countries and

$% per cent #rom IraJ

=# the total e2ports/ oil contributes >!$ per cent

During $% e2port o# oil and minerals increased to SD4%.8 billion #rom SD4!.$ billion a year earlier

,he automobile industry contributed %.$ per cent to total e2ports. India is the seventh largest producer o# automobiles in the orld

,op #ive Importing commodities ( per cent) ( !"$%) ,op #ive e2porting commodities ( per cent) ( !"$%)

%".3

$3."4.

4.'

3.

!5.8

=il and -inerals


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INCREASIN# (OREI#N C'RRENCY ASSETS

JANUARY 201



,he #all in oil prices #rom SD$$3 per barrel in Hanuary !"$3 to SD'$ per barrel as o# Hanuary !"$' has helped India to increase

#oreign currency assets to SD!53 billion as o# November !"$%

-oreover/ Indian currency got strengthened against SD in $% compared to $3 hen it as trading at all time high o# >IN45

per $SD

apidly rising e2ports compared ith imports has supported a rise in #oreign assets. 2ports rose at a CA: o# $$ per cent during

"5+$%/ hile imports increased at a CA: o# .! per cent #or the corresponding period

oreign Currency Assets (SD 9illion)

" "5 $" $$ $! $3 $% NovO$%

!55

!%!!''

!8'!4$ !4$

!8!53


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II) #EARIN# TO,ARD T*E RI#*T AND )OSITI+E DIRECTION

JANUARY 201



Industrial


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#RO,T* O( EI#*T CORE SECTOR NECESSARY (OR O+ERA"" #RO,T* ININD'STRIA" )ROD'CTION

JANUARY 201



,otal production groth (per cent) in core in#rastructure commodities ight core in#rastructure industries reported a groth

o# %.3 per cent during April to =ctober !"$'

,he highest groth as reported by lectricity ($".' per

cent)/ #olloed by Coal o# (.' per cent)

,hese eight industries contribute >3 per cent to the

industrial production

,he thermal poer sector itnessed increased

investment as India targeted capacity addition o# $8%.5

:0 by !"!!


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oad and

*ighays

=utlay o# SD3. billion is planned #or highays #or the current year

In#rastructure development orth SD$5 billion is planned during !"$!+$8

Completed $"" public private partnership pro7ects (


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IN("ATION MEETIN# T*E CENTRA" &AN%GS TAR#ET

JANUARY 201



9I has targeted a 4 per cent in#lation by Hanuary !"$4

In#lation #or November !"$% came don to "." per cent supported by easing o# #uel and #ood prices as these to components are

substantial part o# the Consumer


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R#F-R!


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INC"'SI+E INDIA H T*E #RO,T* A#ENDA

JANUARY 201


Source? conomic Survey !"$3&$% 1? evised stimates 9? 9udget stimates

India has reneed its groth strategies to target rising ineJuality as ell as overall ell&being o# Indians

IneJuality as measured by the :ini coe##icient/ a measure o# statistical dispersion/ dropped #rom 34. in !"$"&$$ to 33.% in !"$$&$!

IneJuality in India is not as much as in other emerging economies. Among the 9ICS (9rail/ ussia/ India/ China and South

A#rica) nations/ the :ini coe##icient in South A#rica as the highest at ".43/ #olloed by 9rail (".'' in !"$!)/ China (".%3) and

ussia (".%")

,he ne government has launched various ne schemes such as Han Dhan o7na/ ? housng? et6. 2.B/ 2.0/ 2.0/ 2.1/ 1./ 2.2/

d. Inform4ton $ ;ro4d64stng -.2/ -.2/ -.2/ -.2/ -.2/ -.2/

e. ,elf4re of SCsSTs 4nd O&Cs -.0/ -.0/ -.!/ -.!/ -.B/ -.!/

f. "4;our $ em5lo>ment -.3/ -.2/ -.2/ -.3/ -.3/ -.3/

g. So64l elf4re $ nutrton 1.2/ -./ 1.-/ 1.3/ 1.1/ 1.2/

h. North


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)RAD*AN MANTRI FAN D*AN YOFANA 8)MFDY: H A SC*EME (OR (INANCIA"INC"'SION 812:

JANUARY 201


Source?


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)RAD*AN MANTRI FAN D*AN YOFANA 8)MFDY: H %EY STATISTICS 822:

JANUARY 201


Source?


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)RAD*AN MANTRI SANSAD ADARS* #RAM YOFANA 8)MSA#Y: H A SC*EME(OR R'RA" DE+E"O)MENT

JANUARY 201


Source?


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SMART CITIES AND &'""ET TRAINS H &'I"DIN# A NE, INDIA

JANUARY 201


Source?


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MA%E IN INDIA H S*A)IN# ') INDIAN MAN'(ACT'RIN# 812:

JANUARY 201


Source? -ake in India 0ebsite/ Nes Articles/ Aranca esearch

,he -ake in India campaign as launched in September !"$%

,he campaign is set o# plans to cut red tape/ develop

in#rastructure and create a businessriendly environment

At present/ manu#acturing share in the :D< is $' per cent and

the government aims to reach !' per cent

,he ob7ective o# the campaign is to make India a better place

to do business and create employment opportunities hich

ould result in better purchasing poer

About

,his campaign ould boost up manu#acturing activity. Bey

re#orms ould support the decrease in the cost. or e2ample/

:oods and Service ,a2 (:S,) ould create substantial

savings #or a company operating in the logistics segment

9oost in manu#acturing activity ould lead to increased

employment/ thus improving the purchasing poer

Sel#&reliability on indigenous products ould control trade

de#icitsIndian products ould enter international markets due to

improved cost structure

-ain ob7ectives

e9i portal has been made available !%18 #or online application o# Industrial icense and Industrial ntrepreneur -emorandum

Ealidity o# the Industrial icense has been e2tended to three years

Industrial licensing has been removed #or most o# the components o# de#ence products

State government has been asked to launch sel#&certi#ication and third&party certi#ication under the 9oilers Act All returns are turned into online #illing in uni#ied #orm

Items having dual use in military and civilian applications have been deregulated

Clearance process turned online

Sel#&certi#ication has been introduced #or all non&risky and non&haardous businesses

Ne process? Ne de&licensing and deregulation measures


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De#ense


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C"EAN #AN#A AND ECO


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&ETI &AC*AO &ETI )AD*AO SC*EME

JANUARY 201


Source? vikaspedia.in/ nes articles/ Aranca esearch

,he government to launch R9eti 9achao/ 9eti


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STATES &OOSTIN# #RO,T* &Y INNO+ATI+E MET*ODS

JANUARY 201


=ver the years/ many Indian states have come up ith re#orms at the state levelDeveloping states/ such as Sikkim/ 9ihar/ :u7arat/ :oa/ have shon higher groth during !""%+$3 compared ith developed states

like -aharashtra and Barnataka

Inno@4t@e nt4t@es ;> st4tes

!eminars!ummits

Vibrant Gujarat: The ;enn4l n@estorsG summt held n #uJ4r4t tnessed 4 huge su66ess n2-1B. The summt s4 54rt654nts from o@er 1-- 6ountres. The summt 5ro@des enormous5ros5e6ts to the St4te to ds5l4> ts strengths? groth 5otent4l? nt4t@es t4en to m5ro@ego@ern4n6e? n@estor frendl> 6lm4te 4nd 4rt $ 6ulture of #uJ4r4t. More th4n 'SD0-- ;llon

orth of Mo's ere sgned n the summt

!ingle3indow4learanee5anism

Telangana: Im5lement4ton of Sngle ,ndo A6t th deemed 6le4r4n6esRajasthan: Im5lement4ton of Sngle ,ndo A6t th tme< ;ound 6le4r4n6esMadhya PradeshK M4dh>4 )r4desh In@estment (46lt4ton A6t 54ssed n 2-- set u5 4 snglendo 6le4r4n6e se6ret4r4t for n@estment f46lt4ton

6ndustriallusters

Tamil NaduK Cre4ton of l4rge s64le 4utomot@e hu;Gujarat K Cre4ton of )h4rm46eut64l hu;? 4utomot@e hu;

7abourreforms

MaharashtraK Onlne l4;our m4n4gement s>stem to 4dmnster l4;our l4s 4nd 5ro@de r4ngeof l4;our m4n4gement ser@6es onlneGujarat K Strong sll de@elo5ment nt4t@es through ndustr> 54rt654ton

#nvironmentrelatedomplianes

Gujarat K Im5lement4ton of e< go@ern4n6e ;> the #uJ4r4t )olluton Control &o4rd

+eentralised lanning

Madhya PradeshK M4dh>4 )r4desh ll ;e the 7rst st4te to h4@e M4ster )l4ns for 4ll ts@ll4ges ;> 2-1B


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abor la

Ne labour las issued to end GInspector aa76

Single indo compliance indo #or companies

Schemes like Shram Suvidha


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&'I"DIN# ') T*E (OREI#N RE"ATIONS

JANUARY 201


-ending #oreign relations along ith the groing India story has led to huge investment plans proposed by many countries

Ind4n 6om54nes n'SD2.1 trllon 546t to;u> d4monds from

Russ4

Ind4 4nd Austr4l4 sgn6@l nu6le4r de4l H 4nm5ort4nt me4sure for

Ind4Gs energ> 5ros5e6ts

Ind4Gs )rme Mnster@sts Austr4l4 4fter 2

>e4rs

'S )resdent &4r46O;4m4 to ;e the Chef#uest for the Re5u;l6

D4>

Ind4n )rme Mnster@sts Ne54l 4fter 1

>e4rs

+sted 4ll the SAARC6ountres 4nd 5ro5osedstrengthenng of SAARC

*4d he4ds of 4ll ;ge6onomes @stng Ind4

n 2-10 < 'S? Chn4?Russ4? '%

&RICS ;4n to ;e set u5?th 4n Ind4n to he4d t

for the 7rst 7@e >e4rs

Ind4 5ro5osedn@estments n M>4nm4r4nd &hut4n to hel5 themn ther de@elo5ment 54th

Source? Nes articles/ Aranca esearch


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indian economy and trends 27jan2015

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