Dissertation Kapil

8/7/2019 Dissertation Kapil

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SIMS

INCLUSIVE GROWTH

Kapil Sharma

2c-43

Finance-marketing


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Translating Macroeconomic Growth

into all round Economic Development

of every Indian through achieving

positiveness of Balance ofTradecoupled with tamed Inflation


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` Inclusive growth is the centre-piece of our growth process. Fast

economic growth has little meaning if it does not lead to the well-being

of the poor and the disadvantaged, of our farmers, workers, our

children, students and women.

-Dr Manmohan Singh

` Growth implies rapid economic development in terms of GDP

` Inclusive means that this growth should be reflected in the life of every

citizen of the nation


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GROWTH

2009-10 GDP-7.4%

IMF growth predictions

changed :8.8% to 9.4%

ForexReserves:$287bn

Foreign trade:$178 bn

INCLUSIVE

UN HDI :Ranks 134

IMR rate:53/1000births

Literacy:64%

Female literacy: 53%

Life expectancy: 64

yrs

Sex ratio: 933F/1000M

Wide disparity amongstates


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` Growth process would take care of the evils.

` Govt. obsessed with the GDP growth numbers

` Believe resources from GDP growth will trickle down : MGNREGA

` Investment in education :3.5% of GDP

` 11th 5 yr plan: education plan

` Expenditure on health gone down


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INFRASTRUCTURE:

` India bypassed the manufacturing stage

` 60% population depended on agriculture

` Contribution towards GDP:18%

`

For every Re.1 spent on the poorest 20% population, Rs.3 is spenton the richest quintile.


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Commendable Efforts

` Right of Children to Free and Compulsory Education Act

` Sarva Shiksha Abhiyan

` Mid Day Meal Scheme

` National Rural Health Mission

` Janani Suraksha Yojna

` JNNURM

` Food Security Act,PDS

BUT

POOR IMPLEMENTATION

Is

The

PROBLEM


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` Difference of exports and imports

` India always had a negative BOT

` Reasons:

1. Growing population

2. Increasing consumption

3. Need for capital goods

4. Inadequate resources

5. Low quality ,highly priced export goods

6. Huge domestic requirement


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` India contribution towards world trade limited

` Foreign trade controlled by restrictions

` 1951:2.4%

` 1980:0.4%

` 1990:0.5%

` 2003:0.8%

` presently:1.6%

` Problem area: Non-dominating exports


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` Leading exporter of :

1. Gems and jewellery

2. Engineering goods

3. Leather manufactures

4. Chemicals

` Export trends changing continuously

` Heavily dependent on imports for oil & coal

` Fiscal deficit further expected to widen due to growing needs


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1) FTA( free trade agreement)

India & Srilanka,Thailand

` Benefits:

1. Regional cooperation must for economic gains

2. Countries can pace their own growth

3. Help reducing hostility among neighboring countries

4. Economies of scale

5. Attraction for FDI


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` Money wont buy as much today as you could yesterday

` Major types

1) Demand pull

2) Cost push

` Problems:

1. Imbalance between supply & demand

2. Crisis( Mortgage crisis 2008)

3. Adverse affect on poverty conditions

4. Economic uncertainty dampens investment climate

5. Both producers & consumers loose


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` Situation in India:

Sep 2009: 0.5%

Mar 2010: 11%

` Reasons for high inflation

1. Worst rainfall in 37 yrs

2. Fiscal stimulus given after recession

3. Increase in income levels

` Mainly food inflation which turned into Generalized inflation


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` Fixing up prices

` Effective implementation of PDS

` Mehangi is a problem, But availability is equally a problem

` Decontrolling petrol prices may not be a good move

` Looking for similar agricultural practices

` Crash programme to reduce wastage

` Commodities contributing more to inflation to be taken care

` Managing excess liquidity: Monetary measures

` Stop hoarding


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` Sound position of on our foreign trade front

` Caution about current account & its full convertibility

` Inflation needs to be tamed

` But remember Inflation is a part& parcel of every growing

economy


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` Inclusive growth is what we should be aiming at

1) Agriculture dependent population should be taken care of

2) Relieve agriculture of extra burden

3) Reform required in PDS system:UIDAI cards

4) Health sector to be provided with adequate human resource &

Infrastructure

5) Revamping education system is a must


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Dissertation Kapil

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