By Group 4
NISHMA ANDAVARAPU 23PGP195
NOONA FIZA 23PGP198
P OOHA SHREE 23PGP199
PALAPARTHY PEARLIE 23PGP203
PITCHIKA SRUTHI 23PGP217
RAJESH KUMAR DHAL 23PGP244
RASHI SRIVASTAVA 23PGP247
REDDYPALLI ARCHANA 23PGP253
INDIAN ECONOMY
MAKE IN INDIA GST IMPLEMENTATION COVID-19 LOCKDOWN RUSSIA UKRAINE WAR
2016 2018 2021
2014 2017 2020 2023
DEMONETIZATION US CHINA TRADE WAR UPI PARTNERSHIPS
DEDEDEMOGRAPHICS
DEMOGRAPHICS OF INDIA
Current Estimate: As of December 2023, India's nominal GDP is estimated to be around $3.73 trillion. This places India as the sixth largest
economy in the world, ov ertaking the United Kingdom in 2022.
NOMINAL GDP
REAL GDP
GROWTH RATE
• Growt h Rat e: In the second quarter of FY24
(July-September 2023), India's GDP registered
a 7.6% growth rate, exceeding expectations
and reflecting a continued economic
recovery.
• Projected Growth: The International
Monetary Fund (IMF) projects India's GDP to
grow at 7.4% in 2023 and 6.1% in 2024.
ECONOMIC
INDICATORS
TRENDS
FISCAL POLICY IMPLEMENTATIONS
THE GOVERNMENT PRIORITIZED REDUCING THE BUDGET DEFICIT AND DEBT-TO-GDP BY IMPLEMENTING THE FISCAL POLICIES
Fiscal Responsibility and Budget Management Act (FRBMA):
• This 2003 act sets the framework for fiscal discipline aiming for a 3% GDP fiscal deficit target.
• Focus on infrastructure development: Emphasis on infrastructure spending like roads, railways, and digital
connectivity aimed at boosting economic growth and creating jobs.
• Schemes like "Bharatmala Pariyojana" for highways and "Sagarmala" for ports.
Subsidy rationalization: In fertilizer and fuel sectors, to improve fiscal efficiency.
Tax reforms:
• Introduction of the Goods and Services Tax (GST) in 2017 aiming to unify indirect taxes and improve tax compliance.
• Reduction in corporate tax rates and simplification of personal income tax slabs aiming to attract Foreign investments and DI.
•
Focus on social welfare:
• Increased spending on social programs like "Pradhan Mantri Jan Dhan Yojana" , "Ayushman Bharat" education initiatives
have aimed to address poverty and inequality.
The graph represents Financial Deficit, Revenue deficit,
effective revenue deficit and primary deficit trend of India
from 2013 to 2023
https://www.indiabudget.gov.in/doc/Budget_at_Glance/bag2.pdf
The graph represents the debt to GDP
ratio trend of India from 1990 to 2020
MONETARY POLICY IMPLEMENTATIONS
The Reserve Bank of India (RBI) has diligently focused on maintaining inflation within the targeted range of 4%, ensuring price
stability and fostering sustainable economic growth.
MEASURES TAKEN BY RBI:
➢ Interest Rate Adjustments: Hikes and cuts
➢ Open Market Operations: Selling securities and buying securities.
➢ Quantitative easing Financial Stability:
➢ Financial inclusion initiatives and digital payments
adoption enhanced financial access and efficiency.
Inflation Control:
The RBI's measures successfully brought inflation down from 8.6% in ➢ Insolvency and Bankruptcy Code facilitated faster
2015-16 to 5.8% in 2022-23 resolution of bad loans and financial distress.
➢ Reduced budget deficit and debt-to-GDP ratio
improved investor confidence and financial stability.
Economic Growth:
Economic growth slowed down from 8.2% in 2016-17 to 4.5% in 2022-23
due to prioritizing the inflation control.
RECENT ECONOMIC REFORMS AND INITIATIVES
1) GOODS AND SERVICES TAX (GST): THE GST WAS INTRODUCED IN JULY 2017, AIMING TO SIMPLIFY THE TAX STRUCTURE BY REPLACING
MULTIPLE INDIRECT TAXES WITH A UNIFIED TAX. IT IS ONE OF THE MOST SIGNIFICANT TAX REFORMS IN INDIA.
2) INSOLVENCY AND BANKRUPTCY CODE (IBC): THE IBC, ENACTED IN 2016, WAS DESIGNED TO STREAMLINE AND EXPEDITE THE RESOLUTION
PROCESS FOR STRESSED AND INSOLVENT COMPANIES. THE GOAL IS TO PROMOTE EASE OF DOING BUSINESS AND ENHANCE THE COUNTRY' S
BUSINESS ENVIRONMENT.
3) MAKE IN INDIA: LAUNCHED IN 2014,THE MAKE IN INDIA CAMPAIGN IS AN INITIATIVE TO ENCOURAGE MULTINATIONAL AND DOMESTIC
COMPANIES TO MANUFACTURE THEIR PRODUCTS IN INDIA. IT AIMS TO BOOST MANUFACTURING, CREATE JOBS, AND MAKE INDIA A GLOBAL
MANUFACTURING HUB.
4) DIGITAL INDIA: THIS INITIATIVE, LAUNCHED IN 2015, AIMS TO TRANSFORM INDIA INTO A DIGITALLY EMPOWERED SOCIETY AND KNOWLEDGE
ECONOMY. IT INCLUDES VARIOUS PROJECTS AND POLICIES TO PROMOTE DIGITAL LITERACY, CONNECTIVITY, AND E-GOVERNANCE.
5) ATMANIRBHAR BHARAT ABHIYAN (SELF-RELIANT INDIA INITIATIVE): INTRODUCED IN RESPONSE TO THE COVID-19 PANDEMIC IN 2020, THIS
INITIATIVE FOCUSES ON ECONOMIC SELF-RELIANCE, EMPHASIZING LOCAL MANUFACTURING, INNOVATION, AND RESILIENCE IN KEY SECTORS.
6) NATIONAL INFRASTRUCTURE PIPELINE (NIP): THE NIP, ANNOUNCED IN 2019, IS A LONG-TERM PLAN TO BOOST INFRASTRUCTURE
DEVELOPMENT ACROSS VARIOUS SECTORS, INCLUDING ENERGY, TRANSPORT, AND SOCIAL INFRASTRUCTURE.
7) BANKING SECTOR REFORMS: THE GOVERNMENT HAS UNDERTAKEN VARIOUS MEASURES TO ADDRESS ISSUES IN THE BANKING SECTOR,
INCLUDING RECAPITALIZATION OF PUBLIC SECTOR BANKS AND CONSOLIDATION TO ENHANCE EFFICIENCY.
8) AGRICULTURAL REFORMS: IN 2020, THE GOVERNMENT INTRODUCED THREE FARM BILLS AIMED AT LIBERALIZING THE AGRICULTURAL SECTOR
BY PROVIDING FARMERS WITH MORE MARKETING OPTIONS AND REDUCING RESTRICTIONS ON THE SALE OF AGRICULTURAL PRODUCE.
SOURCE OF THE DATA
ECONOMIC OPPORTUNITIES IN INDIA
➢ IT and Software Services
• Global IT hub, offering opportunities in software development, outsourcing, and IT consulting.
➢ E-commerce and Online Services:
• Booming sector with opportunities in online retail, logistics, and digital services.
➢ Renewable Energy:
• Investing in solar and wind power with opportunities in development, manufacturing, and
implementation.
➢ Manufacturing and Make in India:
• "Make in India" initiative boosts sectors like electronics, automobiles, and defense.
➢ Infrastructure Development:
• Opportunities in roads, bridges, airports, and smart cities due to population growth and
urbanization.
➢ Healthcare and Pharmaceuticals:
• Opportunities in pharmaceuticals, medical equipment manufacturing, and healthcare services.
ECONOMIC OPPORTUNITIES IN INDIA
➢ Education and Skill Development:
▪ Opportunities in education, vocational training, and e-learning due to a large youthful population.
➢ Financial Technology (Fintech):
▪ Rapidly growing sector with opportunities in digital payments, online banking, and financial inclusion.
➢ Tourism and Hospitality:
▪ Significant opportunities in hospitality, travel services, and related industries.
➢ Agriculture and Agribusiness:
▪ Opportunities in agribusiness, food processing, and agricultural technology.
➢ Space and Aerospace:
▪ Opportunities in satellite technology, space exploration, and related industries.
➢ Environmental and Waste Management:
▪ Opportunities in environmental services, waste management, and recycling.
➢ Startup Ecosystem:
▪ Vibrant startup opportunities, particularly in technology, healthcare, and e-commerce.
➢ Income Inequality:
o Introduce progressive taxation reforms to ensure a
fair distribution of the tax burden based on income
levels.
o Enhance social welfare programs targeting
vulnerable populations to address disparities.
➢ Unemployment and Skill Mismatch:
POLICY o Expand and enhance skill development programs
to bridge the gap between available skills and
RECOMMENDATION industry demands.
o Encourage public-private partnerships to create
more job opportunities in emerging sectors.
➢ Regional Disparities:
o Implement targeted regional development policies
to address disparities, focusing on infrastructure and
educational investments in less-developed regions.
o Encourage industries to establish operations in
regions with higher unemployment rates.
THANK YOU
