The Political Economy of Media: Enduring Issues, Emerging Dilemmas
POLITICAL ECONOMY : INDIA EMERGING AS A GLOBAL POWER
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Transcript of POLITICAL ECONOMY : INDIA EMERGING AS A GLOBAL POWER
Political Systems describe the process by which
decisions are made determine who chooses the leaders of the
country the process by which laws are made how much control do people have and checks
and balances in terms of power
Economic Systems describe how goods (services and
products) are produced and distributed. determine who owns industry how much of one product is produced how consumers purchase or receive the product how are prices determined, how many products
are produced and when A study of how political systems interact
with economic systems is called political economy.
HISTORY
Indus valley civilization. British colonial rule. British infrastructure. Deterioration of economy. Dumping ground. Taxes Early independence
History (Pre 1947) The known Economic history of India begins with
the Indus Valley civilization From 300 B.C. to 1200 A.D. the Maurya
Empire united most of the Indian subcontinent. The political unity and military security allowed
for a common economic system and enhanced trade and commerce.
During this period India is estimated to have had the largest economy of the ancient and medieval world.
Between the 1st and 17th centuries A.D., controlling between one third and one fourth of the world's wealth.
Indus Valley Civilization
Flourished between 2800 BC and 1800 BC
Agriculture, Animal Husbandary Used tools and weapons Import-Export Trade Perfect Urban planning
Pre-Colonial Period
Assessment of India's pre-colonial economy is mostly qualitative, owing to the lack of quantitative information
In 1600, During Akbar’s reign in the Mughal Empire the revenue reached upto 1500M Rs whereas Britain at that time totaled just £16M
After the fall of the Mughals, India was administered by Maratha Empire and the revenue of India was just 100M Rs
After the loss of Panipat, it reduced to 30M Rs
Specific routes and points of contact became critical by 1800: especially the coasts and northwest interior
In the 1800s, The British Empire produced a new territorial domain for the evolution of
modern state power
British colonial rule
India had 32.9% gdp of the world. Company rule in 1757. Institutional environment and
infrastructure of railways and telegraph. Foreign policies aimed at exploitation.
Contd..
Severe famines,droughts and heavy taxes India was made a dumping ground. Indian industries were inundated.
Colonial Period Taxation
Environment Institutional
Environment Standardized
Weights Capital Markets Developed system of
Railways and Telegraphs
Single currency with fixed exchange rates
Colonial rule brought a major change in the taxation environment from revenue taxes to property taxes
At the end of colonial rule, India inherited an economy that was one of the poorest in the developing world
Historical Share of Global GDP
www.deloitte.com/dtt/research/0,1015,sid%253D...
Early independence
Protection of home industry. Public sector and nationalisation. High Import tariffs,import substitution. Encouragement to small and cottage
industries. Finance infrastructure.
INDUSTRIAL POLICY AND GROWTH SINCE 1947
Ambitious plan of industrial development and encouraged the setting up of new industries and the expansion of existing industries.
India used its import policy for the healthy development of local industries.
Restrictions were imposed on the import of industrial goods.
The effort of the Government was to encourage the production of industrial goods indigenously which were restricted from import.
Local industries were encouraged to have foreign collaborations and to import the technical know-how.
Some Plans Undertaken by Government for Industrial Growth
The Second and Third plans emphasized on the development of capital goods industries.
Apart from strict control over imports and the physical ban on the imports of many products, customs tariffs were raised in some cases to 200 to 300% on imported products/goods.
To provide the financial infrastructure necessary for industry, the Government set up a number of development banks like ICICI, IDBI, LIC, UTI.
Regulations under the Foreign Exchange and Regulation Act (FERA) restricted foreign investment in a company to 40%.
As per the estimate by Ministry of Statistics and Programme Implementation, GDP of India in the year 1990 stood at 5,542,706 in comparison with 842,210 in 1975.
Information technology, telecommunications, electronics and hardware, pharmaceuticals, biotechnology, consumer durables, retail, infrastructure, airlines, hospitality, power, etc are sectors which contributed to the success of India GDP history post 1990s.
Employment scenario in India
The real challenge facing the developing countries during the current and future decade is now recognized as one of providing employment opportunities for all those who want to work.
It is also widely recognized now that economic growth does not automatically ensure the growth in employment opportunities adequate to match the growth in labour force.
Growth and decline of employment in India
From 1950 to the mid 1970’s employment in India was more concentrated in the rural areas i.e. 65%–70% of the population was in the agriculture sector.
The trend slowly started changing in the 1980’s, and with the economic liberalization taking place in the 1990’s the employment started moving to the other sectors, i.e. the manufacturing and service sector
Poverty
Meaning- Poverty is the lack of basic human needs, such as clean water, nutrition, health care,education, clothing and shelter, because of the inability to afford them.
Steps for elimination
Public distribution TRYSEM Small farmer’s development programme National rural employment programmes Minimum needs programmes.