Economical Condition in India

8/8/2019 Economical Condition in India

1/66

A PROJECT ON

BACHELOR OF MANAGEMENT STUDIES

UNIVERSITY OF MUMBAI

SEMESTER V

(2010-2011)

SUMITTED BY: GUNAJI YASHWANT KOYANDE

PROJECT GUIDE: MRS. PRACHI


2/66

CERTIFICATE

This is to certify that Mr. GUNAJI YASHWANT KOYANDE of Third Year

B.M.S (BACHELOR OF MANAGEMENT STUDIES) - semester V (2010-2011) has

Successfully completed the project on ISSUES IN THE DEVELOPMENT OF INDIA

Under the guidance of _Mrs. PRACHI

Course Co-ordinator Principal

Project Guide External Examiner


3/66

DECLARATION

IGUNAJI YASHWANT KOYANDE student of BMS Semester V (2010- 11)

hereby declare that I have completed this Project on ISSUES IN THE

DEVELOPMENT OF INDIA

The information submitted is true and original to the best of my knowledge.

Student Signature


4/66

ACKNOWLEDGEMENT

It gives me great pleasure to submit this project to the University of Mumbai

as a part of the BACHELOR OF MANAGEMENT STUDIES course. I would like

to thank my college N.G.ACHARYA AND D.K.MARATHE COLLEGE and my

principal Dr. D. M. Muley for giving me a platform to keep place with changing

business scenario.

I would like to express gratitude to my project guide Ms. Prachi

And the teachers for their help and constant support to me without which this

project would not have been possible.

I would also wish to thank our Chief Co-ordinator Mrs. Dhanya Panicker.

Last but not the least I would like to thank my classmates and my family

for their co-operation.


5/66


6/66

ISSUES IN THE DEVELOPMENT OF INDIA


7/66

INTRODUCTION

India is a developing country, this is known everyone but who any one

try to understand why India is developing country.

I have specific resone for India is developing country because,just only Undeveloped Economy. I was research on which issue spared in

development of India. I was research with primary and secondary method of data

collection. I was research and finding a maximum data in Mankhurd and Dharavi

side area. In this project lot of the people give their opinion for right voice of

public.

An undeveloped economy is characterised, by the existence, in greater or

less degree, of unutilized or underutilized manpower on the one hand of unexploited

natural resources on the other.

In this project, I have show infrastructure of Indian economy and all that issue

for that India economy is developing economy. I have show our economy system is unableto cover or solve all that issue.

How we are cover all that different types of problem, when we have

come to suitable position, that different types of question answer I have to give it.


8/66

OBJECTIVE

Our Indian economy is a good position in the word economy but some resone India

economy is developing economy, I have profe why India is developing country.

I have show all economical issue for those, who have confidant to change this

movement.

Our India is back of the word means they have good position but any where India have

loose the position and I have show this any where.

When our India is made in developed country, why just have here problem, like that

question everyone ask others but on any one have confidant to kept their answer but have

some answer and I want to share with every one.


9/66

SCOPE OF STUDY

All Indian people is tired from the whole problem of country and they

have dont know how they are fight those problem. Everybody have differentfilling, opinion, want and different problem. In real actually what happen with

people, how they are face all situation.

My scope of study on those all people who are very ill teat from system.

Just I want show what types issue see in India and when we will see the bright

future for us.


10/66

INDEX

Content

1. Introduction to economy

2. How type of economy seen in India

3. Infrastructure in the Indian economy

4. Why India has developing country

5. What types of issue in the Indian economy

6. Data collection

7. How we are solve all this economical issue

8. Conclusion9. Bibliography10.Quesonaly


11/66

Introduction of economy

In the world, India has long been considered a country of unrealisedpotential. A new spirit of economic freedom is now stirring in the country,bringing sweeping changes in its wake. A series of ambitious economic reformsaimed at deregulating the country and stimulating foreign investment has movedIndia firmly into the front ranks of the rapidly growing Asia Pacific region and

unleashed the latent strengths of a complex and rapidly changing nation.

India's process of economic reform is firmly rooted in a political consensus thatspans her diverse political parties. India's democracy is a known and stable factor,which has taken deep roots over nearly half a century. Importantly, India has nofundamental conflict between its political and economic systems. Its politicalinstitutions have fostered an open society with strong collective and individual

rights and an environment supportive of free economic enterprise.

India's time tested institutions offer foreign investors a transparent environmentthat guarantees the security of their long term investments. These include a freeand vibrant press, a judiciary which can and does overrule the government, a

sophisticated legal and accounting system and a user friendly intellectualinfrastructure. India's dynamic and highly competitive private sector has long beenthe backbone of its economic activity. It accounts for over 75% of its Gross

Domestic Product and offers considerable scope for joint ventures andcollaborations.

Today, India is one of the most exciting emerging markets in the world. Skilledmanagerial and technical manpower that match the best available in the world and


12/66

a middle class whose size exceeds the population of the USA or the EuropeanUnion, provide India with a distinct cutting edge in global competition.

How type of economy seen in India

India is having a mixed economic structure. It is neither fully

capitalistic nor fully socialistic. It is neither completely an open system nor a fully

free market system.

The key variables in the choice of this economic design are:

people's welfare, equitable distribution of wealth and income, a logical link

between employment and incomes, restraining monopolies and concentration of

power and wealth, and supporting health and education sectors through

government subsidies and political strength.

The guiding principles are; equal opportunity to all; access to

education to all; respecting the right to earn a livelihood; freedom of speech and

religion to all. A substantial institutional structure provides the basic pillars for the

economic edifice thus built up.

In a design like this, the government is neither an active player

nor a passive spectator. it supports, helps, monitors, regulates, and initiates and

substantiates changes as and when required. The bureaucracy plays a very critical

role and needs to be educated and enlightened.


13/66

Economy of India

The economy of India is the eleventh largest economy in the world by nominalGDP and the fourth largest by purchasing power parity. The country's per capitaGDP (PPP) is $3,176 in 2009. Following strong economic reforms from the

socialist inspired economy of a post-independence . Indian nation, the country

began to develop a fast-paced economic growth, as free market principles wereinitiated in 1990 for international competition and foreign investment. Economistspredict that by 2020, India will be among the leading economies of the world.

India was under social democratic-based policies from 1947 to 1991. The economy

was characterised by extensive regulation, protectionism, public ownership,pervasive corruption and slow growth. Since 1991, continuing economicliberalisation has moved the country toward a market-based economy. A revival of

economic reforms and better economic policy in first decade of the 21st centuryaccelerated India's economic growth rate. In recent years, Indian cities havecontinued to liberalize business regulations. By 2008, India had established itselfas the world's second-fastest growing major economy. However, as a result of thefinancial crisis of 20072010, coupled with a poor monsoon, India's gross domestic

product (GDP) growth rate significantly slowed to 6.7 percent in 2008-09, butsubsequently recovered to 7.2% in 2009-10, while the fiscal deficit rose from 5.9%to a high 6.5% during the same period.


14/66

India's large service industry accounts for 57.2% of the country's GDP while the

industrial and agricultural sector contribute 28% and 14.6% respectively.Agriculture is the predominant occupation in India, accounting for about 52% ofemployment. The service sector makes up a further 34%, and industrial sectoraround 14%. The labour force totals half a billion workers. Major agricultural

products include rice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes, cattle,water buffalo, sheep, goats, poultry and fish. Major industries includetelecommunications, textiles, chemicals, food processing, steel, transportationequipment, cement, mining, petroleum, machinery, information technology

enabled services and pharmaceuticals.

Previously a closed economy, India's trade has grown fast. India currently accountsfor 1.5% of world trade as of 2007 according to the WTO. According to the WorldTrade Statistics of the WTO in 2006, India's total merchandise trade was valued at

$294 billion in 2006 and India's services trade inclusive of export and import was$143 billion. Thus, India's global economic engagement in 2006 covering bothmerchandise and services trade was of the order of $437 billion, up by a record72% from a level of $253 billion in 2004. India's trade has reached a still relatively

moderate share 24% of GDP in 2006, up from 6% in 1985.


15/66

Infrastructure in the Indian economy

Energy

Power

Transport system

Indian railways

Communication system

Urban infrastructure

Science and technology

Education in India

Ports infrastructure in India:

Highways and Roads infrastructure

Construction Infrastructure in India

Oil, Gas Hydrocarbon Infrastructure in India


16/66

Energy

The most important single factor which can act as a constraint on

economic growth of a country is the availability of energy. India is both a major

energy producer and consumer. Currently, India ranks as the world`s seventh

largest energy producer and fifth largest energy consumer.

There is a direct correlation between the degree of economic growth, the

size of per capita income and per capita income and per capita consumption of

energy.

Power :

Presently the installed capacity of electric power generation stations under utilities

stood at 130000MW and in the five year plan the generation capacity is planned tobe increased to 2,20,000 MW by 2012.There is a 13% peaking and 8% average

shortage of power annually. Central government has already taken steps to

increase capacity by building Ultra mega power projects (UMPPs).There is a plan

to increase Nuclear power capacity from 3900MW currently to 10000 MW by end

of 11th plan.

Transport system


17/66

If agriculture and industry are regarded as the body and the

bones of the India economy, transport and communications constitute its nerves

which help the circulation of men and materials. The transport system helps to

broaden the market for goods and by doing so, it makes possible large-scale

production through division of labour. It is also essential for the movement of rawmaterials, fuel, machinery etc., to the places of production. The more extensive and

continuous the production in any branch of activity, the greater will be the need for

transport facilities. Transport development helps to open up remote regions and

resources for production.

Indian Railway:

Indian Railways is the largest rail network in Asia and worlds second largest under

one management. Indian Railways comprise over one hundred thousand track

kilometers and run about 11000 trains every day carrying about 13 million

passengers and 1.25 million tones of freight every day. The scope for public

private partnership is enormous in railways, ranging from commercial exploitation

of rail space to private investments in railway infrastructure and rolling stocks.

Railways have planned a dedicated rail freight corridor running along the railwaysGolden Quadrilateral. The double-line freight corridor is expected to evolve

systematic and efficient freight movement mechanisms and ease congestion along

the existing Golden Quadrilateral.

Communication system

The communication system comprises posts and telegraphs,

telecommunication systems, broadcasting, television and information services. By

providing necessary information about the markets and also supplying necessary

motivating, the communication system helps to bring buyers and sellers together


18/66

effectively and helps to accelerate the growth of the economy. Accordingly, the

modern communication system has become an integral part of the development

process.

Urban infrastructure

It has been found Internationally and in

India too, urban development is key to economic prosperity. The growth of the

service sector has further cemented the need for an efficient urban infrastructure.

The rapid urbanization and the increasing pressure on major cities from the

migrant population, has put undue stress on urban infrastructure resulting in

shortage in housing, inadequate water supply and sewerage, traffic congestion,

pollution, poverty and social unrest. Today managing urban infrastructure is a

Science and technology

Science and Technology are ideas and the means with which man

seeks to change his environment While science represents accumulation of

knowledge technology represents refinement in tools. Over the last two hundred

years or so, science and technology have helped to improve the quality of human

life. For rapid economic progress, the application of science and technology(S and

T) to agriculture, industry, transport and to all other economic and noneconomic

activities has become essential. S and T are changing in other countries like USA,

Russia, Germany, Japan etc., and new knowledge and new technologies are being

used in every line of production and these countries have experienced tremendous

economic progress. The recent progress in agriculture and the green revolution ithas ushered in has demonstrated to our people the promise of fulfilling the basic

human needs and improving the quality of life of our people


19/66

Education in India

Soon after gaining independence in 1947, making education

available to all had become a priority for the government. As discrimination on the

basis of caste and gender has been a major impediment in the healthy development

of the Indian society, they have been made unlawful by the Indian constitution.

The 86th constitutional amendment has also made elementary

education a fundamental right for the children between the age group- 6 to 14.

According to the 2001 census, the total literacy rate in India is 65.38%. The female

literacy rate is only 54.16%. The gap between rural and urban literacy rate is also

very significant in India. This is evident from the fact that only 59.4% of rural

population are literate as against 80. 3% urban population according to the 2001

census.

In order to develop the higher education system, the government had established

the University Grants Commission in 1953. The primary role of UGC has been to

regulate the standard and spread of higher education in India. There has been a

marked progress in the expansion of higher education if we look at the increase of

higher educational institutes in India. The higher education system in India

comprise of more than17000 colleges, 20 central universities, 217 State

Universities, 106 Deemed to Universities and 13 institutes of Natioanl importance.

This number will soon inflate as the setting up of 30 more central universities, 8

new IITs, 7 IIMs and 5 new Indian Institutes of Science are now proposed.


20/66

Education System in India:

The present education system in India mainly

comprises of primary education, secondary education, senior secondary education

and higher education.

Elementary education consists of eight years ofeducation. Each of secondary and senior secondary education consists of two years

of education. Higher education in India starts after passing the higher secondary

education or the 12th standard. Depending on the stream, doing graduation in India

can take three to five years. Post graduate courses are generally of two to three

years of duration.

After completing post graduation, scope for doing researchin various educational institutes also remains open.


21/66

Ports infrastructure in India

A number of the existing ports have plans for expansion of capacities,

including addition of container terminals. The government has launched the National

Maritime Development Programme, to cover 276 port projects (including related

infrastructure) at an investment of about INR 600 billion by the year 2012. Also,

States are increasingly seeking private participation for the development of minor

ports, especially on the west ports.

Indian ports are projected to handle 875 million tones(MT) of cargo traffic by

2011-12 as compared to 520MT in 2004-05.There will be an increase in container

capacity at 17% CAGR.Cargo handling at all the ports is projected to grow at 19 per

cent per annum till 2012.

Telecom Infrastructure in India:

Even with the rapid growth of telecom sector in India, the rural

penetration is still less than 5%. At 500 minutes a month, India has the highest

monthly 'minutes of usage' per subscriber in the Asia-Pacific region, the fastest

growth in the number of subscribers at CAGR of more than 50%, the fastest sale of

a million mobile phones (in one week), the world's cheapest mobile handset and

the world's most affordable colour phone.


22/66

Highways and Roads infrastructure:

The Indian road network has emerged as the second largest road network

in the world with a total network of 3.3 million km comprising national highways

(65,569 km.), State highways (128,000 km.) and a wide network of district and

rural roads.

The US tops the list with a road network of 6.4 million km. Currently,

China has a road network of over 1.8 million km only. Out of the 3.38 million Kms

of Indian road network, only 47% of the roads are paved. Roads occupy a crucialposition in the transportation matrix of India as they carry nearly 65 per cent of

freight and 85 per cent of passenger traffic. Over the past decade several major

projects for development of highways linking the major cities have been planned

and work started on most of them. The process of development of the new

highways is expected to continue for many years to come.

Construction Infrastructure in India:

Construction accounts for nearly 7 per cent of Indian GDP and is the second

biggest contributor (to GDP) after agriculture. Construction is a capital-intensive

activity. Broadly the services of the sector can be classified into infrastructure

development (54%), industrial activities (36%), residential activities (5%) and

commercial activities (5%).

The main entities in the construction sector are construction

contractors, equipment suppliers, material suppliers and solution providers. Indias

construction equipment sector is growing at a scorching pace of over 30 per cent


23/66

annually--driven by huge investments by both the Government and the private

sector in infrastructure development. It is estimated that there is USD860 billion

worth of construction opportunities in India

Oil, Gas Hydrocarbon Infrastructure in India

With the exponential increase in the population of vehicles

and industrial requirement, the consumption of petrol products is likely to increaseto 300 MMT by the year 2010.

India has established geological reserves of more than 6 billion

and exploration acreages are available on offer on continuous basis. It is estimated

that investment over the next 10-15 years shall be in the range of US$ 100-150

billion. Additional refining capacity of 110 million tonnes shall be required by

2010. Opportunities have emerged in business areas linked to Natural Gas. Private

opportunities also exist in infrastructure like jetties, storage tanks, movement of oil

and petro-products.

Oil import constitute largest share of total import and therefore

Government has taken many initiatives to mitigate the situation and attract the

foreign investors.100% foreign investment has been allowed in this sector.

Deregulation and de-licensing has been done for the petroleum products.

Rationalization of pricing has taken place by decontrol and import parity. Private

sector can import most products, pipelines, terminals and tank ages cleared for

private investment. JV can be formed for the development of infrastructure,

marketing and, refining activities.


24/66

Why India is developing country

India is a low income developing economy. There is no doudt that

nearly one-fourth of its population lives in conditions of misery. Poverty is not

only acute but is also a chronic malady in India. At the same time, there exist

unutilised natural resources. It is, therefore, quite important to understand the basic

characteristics of the Indian economy, treating it as one of the poor but developing

economies of the world.

Basic characteristics of the Indian economy as developing economy

Low per capita income

Occupational Pattern: primary producing

Heavy population pressure

Prevalence of chronic employment & underdevelopment

Maldistribution of wealth /assets

Poor quality of human capital


25/66

Low per capita income

Developing economies are market by the existence of low

per capita income. The per capita income of an Indian in 2007 was $ 950. Barring

a few countries, the per capita income of the Indian people is the lowest in the

world. During 1960-80, developed economies grew at a faster rate than the Indian

economy, but during 1990-2005, Indian economy has grown at a faster rate than

the developed economies. Even then the difference in per capita income between

India and the developed economies is quite large

Occupational Pattern: primary producing

One of the basic characteristics of an underdeveloped

economy is that it is primary producing. A very high proportion of working

population is engaged in agriculture, which contributes a very large share in the

national income. In India, in 2004, about 58 per cent of the working population

was engaged in agriculture and its contribution to national income was 21 per cent.

In Asia, Africa and Middle East countries from two-thirds to more than four-thirds

to three-fourths of population are


26/66

Heavy population pressure

The main problem in India is the high level of birth rates of growth

of population which was about 1.31% per annum during 1991-50 has risen to

1.93%

During 1991-2001. The annual average rate of growth of population during 2000-

05has further decline to 1.5%.

The fast rate of growth of population necessitates a higherrate of economic growth in order to maintain the same standard of living of the

population. To maintain a rapidly growing population, the requirement of food,

clothing, shelter, medicine schooling, etc.

Prevalence of chronic employment & underdevelopment

In India labour is an abundant factor & consequently, it is

very difficult to provide gainful employment to the entire working population. In

developed countries, unemployment is of a cyclical nature &occurs due to lack of

effective demand. In India unemployment is structure & is the result of a

deficiency of capital. The Indian economy does not find sufficiency capital to

expand its industries to such an extent that the entire labour force is absorbed.


27/66

Maldistribution of wealth /assets

RBI Survey of assets of rural and urban households for the

period July 1991 to June 1992 brings out the existence of sharp inequalities in asset

distribution. In rural areas 27 per cent of households owning less than Rs.20,000

worth of assets accounted for 2.4 per cent of total assets.

Similarly, abut 24 per cent of households in the asset rangeof Rs.20,000-50,000 owned barely 51 per cent of the bottom households owned

just 10 per cent of the total assets. As against it, 9.6 per cent of the rich households

owning assets worth Rs.2.5 lakhs and above accounted for nearly 49 per cent of

total assets.

A glaring feature of an underdeveloped economy is the

poor quality of human capital. Most of the underdeveloped countries suffer from

mass illiteracy retards growth. A minimum level of education is necessary to

acquire skills as also to comprehend social problems. Rural areas where illiteracy

is a rule, are the back-waters of civilization and the centres of superstition, social

taboos and part of life and belief in a pre-destined order are all accompanied by

mass illiteracy.


28/66

What types of issue in the Indian economy

Illiteracy

Corruption

Unemployment

Poverty

Population


29/66

Illiteracy

Every issue that our society faces is like a link of a chain. Each issue isconnected to another, either directly or indirectly. The chain of issues in this society that we livein, the strongest link of that chain is illiteracy. Illiteracy is the mother of all issues as it givesbirth to many other issues like poverty, unemployment, child labour, female foeticide, populationburst and many more.

It is very hard to digest that the land of the Vedas is one of the countrieswith the highest illiteracy levels and shows the inability of our government to utilize programs

like Sarva Shiksha Abhiyan and National Literacy Mission. Even countries like Sri Lanka,Myanmar, Vietnam, Thailand and the like have achieved, in lesser time, a much betterpercentage of literacy. Literacy is a reasonably good indicator of development in a society


30/66

Corruption

Indian society and public life has been overrun by

corruption for the simple reason that, irrespective of the party or parties in power,

the Governments of the day have at best sought to play it down, offered it tacit

support and at worst connived with the perpetrators. Scams, frauds and other graft

cases are detected with overwhelming rapidity and the latest ones surpass older ones

in technique and figures involved.

Everything happens right under the nose of the mighty Union

Government, the agencies of which are spread across every nook and corner of the

country", "Four months ago, two IAS officers (husband and wife) posted in Madhya

Pradesh were suspended after a raid on their home by income tax officials led to the

seizure of Rs 3.26 crore in cash, jewellery worth Rs 67 lakh, Rs 7 lakh in foreign

currency and other assets. In Chhattisgarh, Rs 52 lakh in cash, jewellery worth Rs 73

lakh, and 220 fake bank accounts with transactions amounting to Rs 40 crore wereseized during income tax raids in the same period; 14 bank lockers have been

sealed.What has been seized, however, represents only the proverbial tip of the

iceberg. The real moolah would have been converted into property or stashed away

in foreign bank accounts.

Whats worse is that the rot has spread everywhere: From theIncome Tax Department, Customs, defence forces and IPS to health services and

education. In a written reply to a question in the Rajya Sabha, Minister of State in

charge of the Department of Personnel and Training Prithviraj Chavan said, As on


31/66

March 31, 2010, the number of IAS and IPS officers facing trial for criminal charges

in CBI cases is 84 and 33 for the two respective categories.", "India has been

robbed of its resources not by foreigners but by its own citizens", "India has anumber of anti-corruption watchdogs, including Central Vigilance Commission,

Comptroller and Auditor-General of India, the CBI, anti-corruption agencies,

Intelligence Bureau, Economic Intelligence Bureau, Serious Fraud Office, Securities

and Exchange Board of India, Reserve Bank of India, Defence Intelligence Agency

and National Security Board besides Parliamentary Standing Committees and a

ridiculously excessive number of regulators in addition to State-level agencies.

It is surprising, therefore, that the Government manages to lose sight of so many

frauds", "The same directive was smuggled in as a part of the Central Vigilance

Commission Bill, which came into force in September 2004. Surprisingly, no

political party raised a finger against it. When I made inquiries, I was informally told

that the Joint Secretarys level in the Government of India was a decision-making

level. If the post was not provided protection, nobody would agree to do anything

illegal at the behest of their political masters", "Corruption has become a low-risk

and high-paying activity. It makes no difference that the Government increases the

allocation for poverty alleviation schemes.

What is the point of having schemes running into thousands of crores

of rupees, in which the money, instead of reaching the intended beneficiaries, is

siphoned along the way?


32/66

This is not something new for the Indians who have become used totheir daily doses of corruption pills, some managing to become aloof or indifferentto it, some are crying themselves hoarse over the issue while there are others whohave submerged themselves in corruption enticed by a life full of splendor.However, some statistics from Transparency International might help has assessfor ourselves where we actually stand this year regards international corruption

perspective.

In fact, over the last two years India has become marginally more corrupt. Ourposition has dipped from 72 to 85 among 180 countries of the world. We might becontent with the statistical fact that our arch rival Pakistan is more corrupt than usranking 134 in the list and we have scored a brownie over another rival who ismoving at a faster pace than us in all fields but here is one place where we havemanaged to outdo them weve defeated China (rank 72) in the corruption game.

The most corrupt institution in India is the infamous police force followed by thepoliticians and in the third place is the custodian of our constitutional rights the

judiciary. If you are tired of all this corruption cacophony then for someincorruptible peace of mind, plan a trip to Denmark the most honest spot on this

planet.


33/66

Unemployment

The problem of unemployment is the most serious problem facing

our country. A large number of educated and uneducated people loiter about in

search of some job. They are willing to work but they cannot get it. There is

unemployment in cities, towns and even in villages. There are two types of

unemployment in India : partial unemployment and full time unemployment.

Thereare many causes of unemployment in India. The greatest cause

of unemployment is the overpopulation of the country. The population of the

country is increasing fast but the jobs cannot be increased in that proportion. So a

large number of people remain unemployed. Another cause of unemployment in

our defective system of education. The present education is bookish. It should be

job-oriented. It does not prepare students for life. Every young man of today is

suitable only for a white collar job.

Atthe completion of education, students dream of Govt. jobs, they rushfor Govt. jobs. They are least interested in self-employment because some of the

youth see more respect, glamour and comfort in jobs while some seek challenges

in jobs. Prevailing corruption in our society is also one of the cause of

unemployment. Machines are also responsible for the problem of unemployment.

The machines are labour-saving device. These machines throw thousands of

persons out of work. People rush to cities in search of employment. The result is

that the cottage industries which provide employment to many, are impaired.

Gandhiji warned the people against industrialization, "India needs not mass

production but production by the masses."


34/66

There should be a check on the rapid growth of population. The program of family

planning should be made more popular in rural areas. All efforts should be made in

this direction. The system of education should be changed. Importance should be

given to technical and vocational education. Education should be sound and

practical. Government should create more jobs for the educated unemployment.

Cottage and small-scale industries should be developed. We should

lessen the use of labour-saving machines. Banks should advance loans to the

youths to set up small industries. Luckily our government is fully alive to this

problem. Technical and vocational colleges are being opened. Cottage and

handloom industries are being encouraged. Efforts to control population are being

made. Irrigation and other multi-purpose projects are increasing. These steps will

help a lot in solving the problem of unemployment.

Anempty mind is the devil's workshop. An unemployment person is a

nuisance to the society. A hungry man can do any wrong. Therefore, it is the duty

of the government to solve the problem of unemployment as early as possible.

Government should encourage policies of self-employment. In this regard govt.

policies should be liberalized


35/66


36/66

Poverty

According to a recent Indian government committee

constituted to estimate poverty, nearly 38% of Indias population (380 million)is poor. This report is based on new methodology and the figure is 10% higherthan the present poverty estimate of 28.5%.

The committee was headed by SD Tendulkar has used a differentmethodology to reach at the current figure. It has taken into considerationindicators for heath, education, sanitation, nutrition and income as per National

Sample Survey Organization survey of 2004-05. This new methodology is a

complex scientific basis aimed at addressing the concern raised over the currentpoverty estimation.


37/66

Poverty is widespread in India, with the nation estimated to have athird of the world's poor.By World Bank estimates, 80% of India's population lives

on less than 2$ a day. According to a 2005 World Bank estimate, 41% of Indiafalls below the international poverty line of US$ 1.25 a day ( in nominal terms 21.6a day in urban areas and 14.3 in rural areas); having reduced from 60% in 1981.According to the criterion used by the Planning Commission of India 27.5% of the

population was living below the poverty line in 20042005, down from 51.3% in19771978, and 36% in 1993-1994.

A study by the Oxford Poverty and Human Development Initiative

using a Multi-dimensional Poverty Index found that there were 421 million poorliving under the MPI in eight north India states of Bihar, Chattisgarh, Jharkhand,Madhya Pradesh, Orissa, Rajasthan, Uttar Pradesh and West Bengal. This numberis higher than the 410 million poor living in the 26 poorest African nations.Estimates by National Council of Applied Economic Research, show that 48% ofthe Indian households earn more than 90,000 (US$ 2,043) annually. According to

NCAER, in 2009, of the 222 million households in India, the absolutely poorhouseholds (annual incomes below 45,000) accounted for only 15.6 % of them orabout 35 million (about 200 million Indians). Another 80 million households are in

income levels of 45,000-90,000 per year.

Since the 1950s, the Indian government and non-governmentalorganizations have initiated several programs to alleviate poverty, including

subsidizing food and other necessities, increased access to loans, improvingagricultural techniques and price supports, and promoting education and family

planning. These measures have helped eliminate famines, cut absolute povertylevels by more than half, and reduced illiteracy and malnutrition.

The World Bank estimates that 456 million Indians (42% of thetotal Indian population) now live under the global poverty line of $1.25 per day.This means that a third of the global poor now reside in India. However, this alsorepresents a significant decline in poverty from 60 percent in 1981 to 42 percent in2005, although the rupee has decreased in value since then, while the official


38/66

standard of 538/356 rupees per month has remained the same. Income inequality inIndia is increasing. On the other hand, the Planning Commission of India uses itsown criteria and has estimated that 27.5% of the population was living below the

poverty line in 2004-2005, down from 51.3% in 1977-1978, and 36% in 1993-1994

[9]. The source for this was the 61st round of the National Sample Survey

(NSS) and the criterion used was monthly per capita consumption expenditurebelow Rs. 356.35 for rural areas and Rs. 538.60 for urban areas. 75% of the poor

are in rural areas, most of them are daily wagers, self-employed householders andlandless labourers.

Although Indian economy has grown steadily over the last two decades,

its growth has been uneven when comparing different social groups, economic

groups, geographic regions, and rural and urban areas.[10]

Between 1999 and 2008,the annualized growth rates for Gujarat (8.8%), Haryana (8.7%), or Delhi (7.4%)were much higher than for Bihar (5.1%), Uttar Pradesh (4.4%), or Madhya Pradesh(3.5%).Poverty rates in rural Orissa (43%) and rural Bihar (41%) are among theworld's most extreme.

The India State Hunger Index 2008 by the International Food Policy

Research Institute. Punjab has the best nutritional situation, whereas malnutrition

in Madhya Pradesh is worse than in Ethiopia or Sudan.

India has a higher rate of malnutrition among children under the age ofthree (46% in year 2007) than any other country in the world. Despite significanteconomic progress, 1/4 of the nation's population earns less than the government-

specified poverty threshold of 12 rupees per day. Official figures estimate that27.5% of Indians lived below the national poverty line in 2004-2005.

[15]A 2007

report by the state-run National Commission for Enterprises in the UnorganisedSector found that 77% of Indians, or 836 million people, lived on less than 20rupees per day

with most working in "informal labour sector with no job or social

security, living in abject poverty."


39/66

Population

Current Population of India in 2010 is around 1,150,000,000 (1.15

billion) people. Currently, India is second largest country in the world after China

in terms of population. By 2030, the population of India will be largest in the world

estimated to be around 1.53 billion. There has been rapid increase in Indian

population in the last 60 years. Population of India at the time of Independence was

only 350 million. So Indian Population has increased more than three times.


40/66

Current Population of India in 2010 - 1,150,000,000 (1.15 billion)

Population of India in 1947 was - 350 million

With 1,150,000,000 (1.15 billion) people, India is currently the world's secondlargest country. India crossed the one billion mark in the year 2000, one year afterthe world's population crossed the six billion threshold.

Demographers expect India's population to surpass the population of China,

currently the most populous country in the world, by 2030. At that time, India isexpected to have a population of more than 1.53 billion while China's population isforecast to be at its peak of 1.46 billion (and will begin to drop in subsequentyears).

India is currently home to about 1.15 billion people, representing a full 17% of theearths population. When India gained independence from the United Kingdomsixty years ago, the country's population was a mere 350 million. Since 1947, the

population of India has more than tripled.

State Population Male Female Urban

1 Jammu and Kashmir 10069917 5300574 4769343 24.85

2 Himachal Pradesh 6077248 3085256 2991992 9.79

3 Punjab 24289296 12963362 11325934 33.95

4 Chandigarh 900914 508224 392690 89.78


41/66

5 Uttaranchal 8479562 4316401 4163161 25.59

6 Haryana 21082989 11327658 9755331 29.00

7 Delhi 13782976 7570890 6212086 93.01

8 Rajasthan 56473122 29381657 27091465 23.38

9 Uttar Pradesh 166052859 87466301 78586558 20.78

10 Bihar 82878796 43153964 39724832 10.47

11 Sikkim 540493 288217 252276 11.10

12 Arunachal Pradesh 1091117 573951 517166 20.41

13 Nagaland 1988636 1041686 946950 17.74

14 Manipur 2388634 1207338 1181296 23.88

15 Mizoram 891058 459783 431275 49.50

16 Tripura 3191168 1636138 1555030 17.02

17 Meghalaya 2306069 1167840 1138229 19.63

18 Assam 26638407 13787799 12850608 12.72

19 West Bengal 80221171 41487694 38733477 28.03

20 Jharkhand 26909428 13861277 13048151 22.25

21 Orissa 36706920 18612340 18094580 14.97

22 Chhatisgarh 20795956 10452426 10343530 20.08

23 Madhya Pradesh 60385118 31456873 28928245 26.67


42/66

24 Gujarat 50596992 26344053 24252939 37.35

25 Daman & Diu 158059 92478 65581 36.26

26 Dadra & Nagar Haveli 220451 121731 98720 22.89

27 Maharashtra 96752247 50334270 46417977 42.40

28 Andhra Pradesh 75727541 38286811 37440730 27.08

29 Karnataka 52733958 26856343 25877615 33.98

30 Goa 1343998 685617 658381 49.47

31 Lakshadweep 60595 31118 29477 44.47

32 Kerala 31838619 15468664 16369955 25.97

33 Tamil Nadu 62110839 31268654 30842185 43.86

34 Pondicherry 973829 486705 487124 66.57

35Andaman & NicobarIslands* 356265 192985 163280 32.67

INDIA Total 1027015247 531277078 495738169 27.78


43/66

Other types of issue in Indian economy

Inflation

Poor educational standards

Pollution

Poor infrastructure

High level of debt

Water management

Child labour


44/66

Inflation

Fuelled by rising wages, property prices and food prices inflation in India

is an increasing problem. Inflation is currently between 6-7%. A record 98% of

Indian firms report operating close to full capacity (2)With economic growth of

9.2% per annum inflationary pressures are likely to increase, especially with

supply side constraints such as infrastructure. The wholesale-price index rose to anannualised 6.6% in June 2007

Poor educational standards.

Although India has benefited from a high % of English

speakers. (important for call centre industry) there is still high levels of illiteracy

amongst the population. It is worse in rural areas and amongst women. Over 50%

of Indian women are illiterate


45/66

Pollution

India's ongoing population explosion has placed great strain on the country's

environment. Deforestation, soil erosion, water pollution and land degradation

continue to worsen and are hindering economic development in rural India, while

the rapid industrialization and urbanization in India's booming metropolises are

straining the limits of municipal services and causing serious air pollution

problems.

1984 Bhopal disaster - in which a toxic leak from the city's Union Carbide

chemical plant resulted in the deaths of more than 3,000 people - environmental

awareness and activism in India increased significantly.

Industrialization and urbanization have resulted in a profound deterioration of

India's air quality. 3 million premature deaths in the world that occur each year due

to outdoors and indoor air pollution, the highest number are assessed to occur in

India.

Poor Infrastructure.

Many Indians lack basic amenities lack access to running water. Indian public

services are creaking under the strain of bureaucracy and inefficiency. Over 40%

of Indian fruit rots before it reaches the market; this is one example of the supply

constraints and inefficiencys facing the Indian economy.


46/66

High levels of debt.

Buoyed by a property boom the amount of lending in India has grown by 30% in

the past year. However there are concerns about the risk of such loans. If they are

dependent on rising property prices it could be problematic. Furthermore if

inflation increases further it may force the RBI to increase interest rates. If interest

rates rise substantially it will leave those indebted facing rising interest payments

and potentially reducing consumer spending in the future

Water management

Earth is the only planet of the solar system that is

supporting life for ages because of the presence of water. Fresh water is a precious

resource. Only 2.5 % of the world's water is not salty, and of that, two thirds is

locked up in ice caps and glaciers. Of the remaining amount, subject to thecontinuous hydrological cycle, some 20 % is in areas too remote for human access

and of the remaining 80 %, about three quarters comes at the wrong time and place

- in monsoons and floods - and is not captured for use by people. The reminder is

less than 0.08 of 1 % of the total water on the planet. It is precious indeed. Thus

only a small finite fraction is available to support plant species on the land mass.


47/66

Child labour

Child labor is a complex problem that is basically rooted in

poverty. Children under fourteen constitute around 3.6% of the total labor force in

India. Of these children, nine out of every ten work in their own rural familysettings. Nearly 85% are engaged in traditional agricultural activities. Less than

9% work in manufacturing, services and repairs. Only about 0.8% work in

factories.


48/66

The Child Labor (Prohibition & Regulation) Act, 1986 of India

prohibits the employment of children below the age of 14 in factories, mines and in

other forms of hazardous employment, and regulates the working conditions ofchildren in other employment.

According to the Indian census of 1991, there are 11.28 million

working children under the age of fourteen years in India. India has always stood

for constitutional, statutory and development measures required to eliminate child

labor. The Indian Constitution has consciously incorporated provisions to securecompulsory universal elementary education as well as labor protection for

children. Labor Commissions in India have gone into the problems of child labor

and have made extensive recommendations. The great challenge of India, as a

developing country, is to provide nutrition, education and health care to these

children.

The announcement by the Prime Minister on India's Independence Day

in 1994 that child labor would be abolished in hazardous occupations by the year

2000. With the setting up of the National Authority for the Elimination of Child

Labor (NAECL) under the Chairmanship of the Labor Minister, Government of

India, a convergence of services and schemes for eliminating child labor is beingachieved.


49/66

Data collection

1.

What types of the problem you are face in your area?

Corruption

Population

Poverty

Unemployment

Illiteracy

Water management

Inflation

Many people say our main problem is corruption and than saw other balancing problem. 80% people say about corruption and about others are 3%

Unemployment, Illiteracy, Water management, Inflation and 4%Population,

Poverty. every one said other problem created from just only corruption.

80%

3%

3%

3%

3%

4%4%


50/66

2. What are the resone for those problem?

Less management

No perfect regulation

No follow the rules

Un trusted leader

Illiterate people

60% people said about illiterate people 20%equaly said about un trusted leader

and no follow the rules. Most of the people give their opinion on uneducated

people, who no knowledge about system and so corrupted people take their

advantage.

60%20%

20%


51/66

3. What do you think about any new planning?

Is better for our next generation

What types of use for us

How much person take fair game for that planning

80% people give response about how much person take fair game for that planning

and 20% people said about what types of use for us. Whatever plan made in India

but how much benefit meet to people, in any project government officer or every

who work in that those make their profit.

80%

20%


52/66

4. What do you think about system?

Fair with every one

Unable to solve the problem

Corrupted whole system

Uneducated leader

80% people give their opinion on corrupted system and20% people said about

uneducated leader. Corrupted people of system is main issue for India

development.

80%

20%


53/66

5. Why India is back of the word in many think?

Unable to solve all economical issue

Unable to make some different innovation

Main problem is corruption and poverty

ssss

90%people said about corruption and poverty. most of the opinion said just poverty

and illiteracy people face corruption. 10% people give answer on different

innovation.

90%

10%


54/66

6. What do you think about all political party?

Is better their position

All those same

No one make fair work

No one think about our bright future

Those every is fake

About all political party people think,60% people said all those same,20% said no

one make fair work and 10% equally said about no one think about our bright

future and those every are fake.

60%

20%

10%


55/66

7. You are voting?

Yes

No

55% people are no voting and 45%people are vote. In serve unbelievable answer

meet from general public.

55%

45%


56/66


57/66

9. Think system is handover to you, so what will you do?

Catch all corrupted people

Give total knowledge about system

Control on population

70% people said about catch corrupted people, 10% said give total knowledge

about system and 20% said control on population. Most of the people want to

throw all corrupted people.

70%

10%

20%


58/66

10.How you are suggest for solve the economical issue?

Stop the corruption

Increase education in general system


Most of the people give their feedback 75% on stop the corruption, 15%said

control on population and 10% said increase education in general system.

75%

15%

10%


59/66

Finding

Research on group of people

Is unbelievable think done with me, when I was research on group

of people. In this research most of the people said about corruption. we want to

solve them first. When I was work on research that time 5to10 people said on

illiteracy, because of illiteracy post officer take their advantage and make

corruption. People was unkown about the system and their right.

Spot of NAYAK

When I was research in Daravi side area, there most of the people said

about Nayak. Most of the problem saw here and those all problem come fromsystem if anybody fight against the problem that they meet a loss from system.

All people use chef word against system these all just ask one question

Why we are face the problem?


60/66

Suggestion

How we are solve all the issues?

We want to solve first illiteracy because illiteracy is increase other problem like

corruption. Just for illiteracy, people dont know a system and their right so first

we spared a total knowledge about general system and their right.

When people knew it about total knowledge that they automatically fight against

corruption or corrupted people.

Improve technology, skill, ability and support talented people who have confidant

or skilled to innovate some different.


61/66

Conclusion

We are responsible for what we are, and whatever we wish ourselves to be, we

have the power to make ourselves. If what we are now has been the result of our

own past actions, it certainly follows that whatever we wish to be in future can be

produced by our present actions; so we have to know how to ac


62/66

Questionaly

1. What types of the problem you are face in your are?

Corruption

Population

Poverty

Unemployment

Illiteracy

Water management

Inflation

2. What are the resone for those problem?

Less management

No perfect regulation

Un following rules

Un trusted leader

Illiterate people


63/66

3. What do you think about any new planning?

Is better for our next generation

What types of use for us

How much person take fair game for that problem

4. What do you think about system?

Fair with every one

Unable to solve the problem

Corrupted whole system

Uneducated leader

5. Why India is back of the word in many think?

Unable to solve all economical issue

Unable to make some different innovation

Main problem is corruption


64/66

6. What do you think about all political party?

Is better their position

All those same

No one make fair work

No one think about our bright future

Those every are fake

7. You are voting?

Yes

No

8. Why you are voting?

For our bright future

For our best leader

Just for compulsory


65/66

9. Think system is handover to you, so what will you do?

Catch all corrupted people

Give total knowledge about system


10.How you are suggest for solve the economical issue?

Stop the corruption

Increase education in general system



66/66

Economical Condition in India

Documents

Transcript of Economical Condition in India