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The Indian Economy from Nehru to Coca Cola

The Indian Economy from Nehru to Coca Cola. AST1ICI Lecture 4 Dr Peter G. Friedlander. Jawaharlal Nehru ca. 1951 On the engine of the ‘green revolution’. http://www.fanpop.com/spots/aishwarya-rai/images/3141848/title/aishwarya-rai-coca-cola-ad-photo. Nehru on Development.

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The Indian Economy from Nehru to Coca Cola

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  1. The Indian Economyfrom Nehru to Coca Cola AST1ICI Lecture 4 Dr Peter G. Friedlander Jawaharlal Nehru ca. 1951 On the engine of the ‘green revolution’ http://www.fanpop.com/spots/aishwarya-rai/images/3141848/title/aishwarya-rai-coca-cola-ad-photo

  2. Nehru on Development http://www.youtube.com/watch?v=SBqt18QKdBo&feature=related

  3. Key Features of the Indian Economy • India’s GDP in 2009 was US$ is 1.1 trillion; in PPP terms it has the 4th largest GDP of US$ 4.7 trillion with a per capita income of US$2 700 per annum. • At a rate of over 9% per annum in 2006-7, it’s amongst the fastest growing economies in the world. • About 55% of the workforce is involved in agriculture & agriculture related work. • Some 23% of the workforce is involved in the service sector (IT, IT enabled services, Banking & Finance, BPO’s etc.) which make up 55% of GDP. • Indian manufacturing accounts for 17% of the workforce, and 27.5% of GDP. • [NUS India presentations for MOE 2009] http://www.tradingeconomics.com/india/gdp-growth

  4. Wealth Distribution • Wealth distribution remains a problem, and between 25-30% of the population are said to be living below the poverty line with an income of US$0.40 per day. [NUS India presentations for MOE 2009] "Rich" households        $35,000+ per year: 1.3% (16 million people)  "Middle-class" households       $8,000 to $35,000 per year: 13% (160 million) "Aspiring middle-class" households       $3,500 to $8,000 per year: 30% (359 million) "Deprived" households       Below $3,500 per year: 57% (684 million) http://blog.shunya.net/shunyas_blog/2011/04/india-a-wealth-report.html

  5. Regional variations Indians get richer: Per capita income at Rs 46,492 PTI Jan 31, 2011, 05.31pm IST NEW DELHI: Per capita income of Indians grew by 14.5% to Rs 46,492 in 2009-10 from Rs 40,605 in the year-ago period, as per the revised data released by the government today. The new per capita income figure estimates on current market prices is over Rs 2,000 more than the previous estimate of Rs 44,345 calculated by the Central Statistical Organisation (CSO). Per capita income means earnings of each Indian if the national income is evenly divided among the country's population at 117 crore. • Disparities also exist along state/regional lines, with per capita income (2004) highest in Haryana (Rs47k p.a), Maharashtra (Rs45k p.a), Gujarat (Rs43k p.a), & Punjab (RS43k p.a.) & lowest in Bihar (Rs9k p.a.) & Uttar Pradesh (RS16.5k p.a). The four southern Indian states, i.e. Tamil Nadu, Kerala, Andhra Pradesh and Karnataka ave. about RS. 35k p.a. [NUS India presentations for MOE 2009] http://articles.timesofindia.indiatimes.com/2011-01-31/india/28377288_1_capita-income-indian-economy-national-income

  6. India along with China is one of the fastest growing economies in the world. In 2006/7, India’s GDP grew at a rate of nine per cent per annum. Based on purchasing power parity, it’s GDP of US$2.8 trillions makes it the fourth largest economy in the world. [NUS India presentations for MOE 2009] • Capital goods pitchfork June factory output growth to 8.8%fe BureauPosted online: 2011-08-13 01:32:18+05:30New DelhiEconomists who suspect India’s growth rate is already above potential may have to think again. In what took almost everyone by surprise, the country’s industrial output grew 8.8% http://www.financialexpress.com/news/Capital-goods-pitchfork-June-factory-output-growth-to-8-8-/831398/#

  7. Employment • More than 55 per cent of the Indian workforce is engaged in agriculture & agriculture related work, 23 per cent in the service sector, and 17 per cent in manufacturing. • On average, the wages for those engaged in agriculture related services is far lower than the other sectors of the Indian economy. • [NUS India presentations for MOE 2009] http://www.idrc.ca/EN/Themes/Development/Pages/ResultDetails.Aspx?ResultID=6

  8. Relative wealth • Although India has a large number of billionaires, it remains one of the poorest countries in the world in terms of per capita income. • About 1/3rd of the Indian population still exists below the poverty line, and there exists a considerable disparity of wealth between the rich and the poor. • Disparities also exist along state/regional lines, with per capita income highest in states like Haryana, Maharashtra, Gujarat and Punjab & lowest in Bihar and Uttar Pradesh. • [NUS India presentations for MOE 2009] Lakshi Mittal, ca, 45 billion USD http://www.forbes.com/lists/2008/10/billionaires08_Lakshmi-Mittal_R0YG.html http://en.wikipedia.org/wiki/File:Lakshmimittal22082006.jpg

  9. Primary Industries: Farming • Despite not being a major component in Indian GDP or exports farming is crucial to India’s economy. 55% of people work in agriculture. • India as a whole has avoided famine in recent decades. Fields near Sarnath, Varanasi, UP in 2006 now being encroached on for urbanisation

  10. Primary Industries: Mining • Mining, for coal and minerals forms a major part of its economy. • But it also imports many raw materials, for instance, from Australia, to feed its manufacturing industry. India coal production dropped to 531 million tons in 2009/10, which was 70 million tons short of total demand, according to Reuters.Read more: http://www.businessinsider.com/commodities-conflict-weather-chokepoints-2011-3?op=1#ixzz1Uybp16Cd

  11. Coal Imports: Australia • Indian player enters Queensland coal industry • 04 May 2011 , 1:04 PM by Paula Tapiolas • There's a big new player in Queensland's coal industry. The State Government has given Indian conglomerate Adani a 99-year lease over the Abbot Point Coal Terminal, near Bowen http://blogs.abc.net.au/queensland/2011/05/indian-player-enters-queensland-coal-industry.html?site=northqld&program=north_queensland_mornings

  12. http://www.theage.com.au/victoria/rural-residents-dig-in-over-coal-mine-plan-20110812-1ir18.htmlhttp://www.theage.com.au/victoria/rural-residents-dig-in-over-coal-mine-plan-20110812-1ir18.html

  13. Primary Industries: Power generation • Traditional coal fired power stations, and Hydro electric schemes are now to be supplemented by nuclear power. http://www.topnews.in/companies/reliance-power

  14. Hydo-electric power: Narmada http://www.umich.edu/~snre492/Jones/narmada.html

  15. Nuclear Power http://www.npcil.nic.in/

  16. Manufacturing: Steel • Steel was a poster industry for Nehruvian era development. • Bokoro, planned 59 started 65 with aid of Soviet Union http://www.indianetzone.com/3/bokaro.htm http://www.projectsjugaad.com/tag/jawaharlal-nehru/

  17. Manufacturing: consumer goods • Since economic liberation in 1991 manufacturing of consumer goods has grown steeply. • The development of a consumer society has also raised many challenges in a country where many are still to poor to take part in it. http://www.viccolabs.com/vicco/Factory.aspx

  18. The cell phone and “Mobile wali” • Mobile phone usage has taken off in India and created new worlds for Indians from all walks of life. http://www.youtube.com/watch?v=NJOlV0nhVko

  19. Manufacturing: fabrics and clothing • India is a major world producer of fabrics and clothing. • On a traditional base and Colonial era development Indian fabrics are known all around the world. http://www.flickr.com/photos/bbcworldservice/3494488125/sizes/z/in/photostream/

  20. Service Industries: banking • India banks are fully integrated with the world banking system. • This then begs the question, how successful is the banking system? http://bloggerdevkumar.blogspot.com/2010/10/history-state-bank-of-indore-is-no-more.html

  21. Service Industries: software • An area that has shown clearly how India’s heritage of English language and education has allowed it become a world leader. http://www.rediff.com/business/slide-show/slide-show-1-the-secret-behind-cognizants-amazing-success/20110811.htm

  22. Service Industries: call centres • An outstanding area of success. Creating a new class of urban middle class Indians • In touch with the world, yet separate from it. http://www.outlookindia.com/article.aspx?226824

  23. Despite growing wealth in the urban areas rural areas are remaining poor Is there any solution to this, other than total urbanisation on the Western model? The rural/Urban divide http://english.aljazeera.net/focus/indiaelections/2009/04/200941575422954810.html

  24. Land Conflict http://www.youtube.com/watch?v=aBFR3Qg5Jrs&feature=player_embedded#at=12

  25. What is the best development model? Nehru at Hirakud Dam, 1957 • Did the Nehruvian planned economy model really fail? Or was it successful within limits? • Does the free market economy model really work? Are the benefits for the well off really reaching the poor? http://picasaweb.google.com/107581128257933569093/Bapi

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