This document provides an overview of the Indian economy. It begins with definitions of basic economic concepts and how India's economy works as a mixed economy. It then discusses key metrics and rankings of the Indian economy, including its GDP growth rate, GDP per capita, and sectoral breakdown. Charts and data on GDP, national income, inflation rates are presented. In conclusion, it outlines both development factors and challenges currently facing the Indian economy, but maintains optimism that by addressing issues, India has strong potential to become a 21st century superpower.

1. WELCOME
gRAAHYA-13
Sun Degree & PG College

2. Indian Economy
Presented By
D.Radha

3. Contents
 How Does an Economy Work?
 Indian Economy Rankings
 India : A Mixed Economy
 Various Reasons
 Graphs
 GDP
 National Income
 Inflation
 Conclusion

4. How Does An Economy W
ork?
 Nations must answer 3 basic Economic question:
 W goods and services should be produced?
hat
 How should the goods and services be produced?
 For who should the goods and services be produced?
 The way a nation answers these questions defines their
economy.

5. Indian Economy Rankings
The economy of India is the tenth largest in the world by
nominal GDP and the third largest by purchasing power parity
(PPP).
The country is one of the G-20 major economies and a member
of BRICS.
India ranked 119th by economy in world.

6. India : A Mixed Economy
Post Independence (1947), Pandit Jawaharlal Nehru proposed the idea of
“Mixed Economy”.
Initial motive: to reduce social and economic stress.
Priority on “Economic growth with social justice”.
Commanding role of state in industrial production and import substitution
strategy.
Role in agriculture limited to infrastructure development, irrigation and trade.
Resulting low GDP at 3-4% p.a.
Finally, Balance of payment crisis of 1991 initiated Economic Liberalization.

7. Various Reasons
Development reasons:
Slowdown reasons:
Agriculture sectors
High Inflation
Healthy for ex reserves
Corruption
Service sectors
Earnings slowdown
Political consensus on reforms
Duplicate notes
Rising gap between
rich and poor states

8. Gross Domestic product (GDP)
GDP is a total income by total population.
GDP growth
GDP per capita
GDP by sector
3.986% (2012–13)
$1,491 (nominal: 141st; 2012)
$3,829 (PPP: 130th; 2012)
agriculture: 17.4%, industry:
25.8%, services: 56.9% (2012 est.)
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Growth
(real) (%)
5.6
6.0
4.3
8.3
6.2
8.4
9.2
9.0
7.4
7.4
10.1
6.8
6.5
4.4

9. Sectoral Composition of
Indian GDP (2010-2011)
Economy
Principal Source of Work/
Income Security in India
Industry
12%
Services
30%
Agriculture
58%
Contents
India
Size
3,287,263 km²
Population
1.2 Billion
GDP (2012-13)
1.84 trillion
GDP/capita
$1,502.71

10. National Income
“ A national income estimate measures the volume of commodities and
services turned out during a given period counted without duplication.”
It is the money value of the flow of goods and services available in an
economy in a year
National Income refers to-The income of a country to a specified period of
time, say a year, includes all types of goods and services, which have an
exchange value, counting each one of them only once

11. Inflation
Inflation is a state of persistent rise in prices.
The inflation rate in India was recorded at 6.46 percent in September of
2013.
 Inflation Rate in India is reported by the Ministry of Commerce and Industry,
India.
 1969 until 2013, India Inflation Rate averaged 7.7 Percent reaching an all
time high of 34.7 Percent in September of 1974 and a record low of -11.3
Percent in May of 1976.

12. Conclusion
Finally I concluded that if these problems are solved then the
future for India looks bright, India might well become one of the
superpowers of the 21st Century.
India- A country with Potentials for
‘sustaining’ development!!

13. THANK YOU
Any Queries ?