Entrepreneurship and

Economic Development

KRG
CEO - AATHMA
 What is Economy
• The state of a country or region in terms of
the production and consumption of goods and
services and the supply of money.
• Careful management of available resources.
• An economy is an area of
the production, distribution, or trade,
and consumption of goods and services by
different agents in a given geographical
location.
 What is (GNP)-GDP
• Gross national product (GNP) differs from GDP in that it
measured production by a country's citizens at home
and abroad rather than its 'resident institutional units'
• Gross domestic product (GDP) is a monetary measure
of the market value of all final goods and services
produced in a period (quarterly or yearly).
• Nominal GDP estimates are commonly used to
determine the economic performance of a whole
country or region, and to make international
comparisons.
GDP of India
 Economy of India
• The economy of India is the sixth-largest economy in the world
measured by nominal GDP and the third-largest by purchasing power
parity (PPP).
• The country is classified as a newly industrialised country, and one of
the G-20 major economies, with an average growth rate of
approximately 7% over the last two decades.
• Maharashtra is the wealthiest Indian state with an annual nominal GDP
of US$330 billion,[35]roughly equivalent to those of Venezuela and
the United Arab Emirates, and accounts for 13.4% of India's GDP
followed by the states of Tamil Nadu (US$170 billion) and Uttar
Pradesh (US$150 billion).
• India's economy became the world's fastest growing major economy in
the last quarter of 2014, surpassing the People's Republic of China.
 Economy of India - Statistics
Statistics Indian Economy
GDP $2.46 trillion (2017 – Nominal)
$9.59 trillion (2017 – PPP)
GDP Rank 6th (Nominal) 3rd (PPP)
GDP Growth 2014 – 7.2%
2015 – 7.6%
2016 – 7%
GDP Per Capita $ 1852 (2017 – Nominal)
$ 7224 (2017 – PPP)
GDP Per Capita Rank 140th Nominal 122nd PPP
GDP By Sector Agriculture – 16.5%
Industry – 29.8%
Services – 45.4%
BPL – Below Poverty Line 12.4% of population below $1.90 per day
Human Development Index 0.609
Unemployment 4.9% Urban, 5.1% Rural. National – 5%
The Global contribution to World’s GDP by major
economies from 1 CE to 2003 CE according to Angus
Maddison’s estimates. Till 18th Century India and China
were the two largest economies by GDP output.
Declining share of World GDP
• Angus Maddison argues that India’s
share of the world income went from
27% in 1700 to 3% in 1950.
• Modern Economic Historians blame
Colonial rule for the dismal performance
• Investment in Indian Industries was
limited since it was a colony.
 Absence of industrialisation
during colonial period
• India was relatively urbanised and
commercialised with buoyant export trade,
devoted largely to Cotton, Textiles including
Silk, Spices and Rice.
• UK and other western countries invented new
technologies and became industrialised.
• In contrast, India remained labour oriented
instead of mechanisation.
 British Raj and Government
Jobs
• Britishers were interested only in
administering country rather than developing
it.
• They engaged in creating jobs in
Government, Railway and promised pensions
that attracted people.
• During worldwide Great Depression in 1929,
British raj was focusing mostly on shipping
gold to Britain.
 Economics and Religion
• Max weber, a Prussian and German Sociologist
and Political Economist linked Economics and
Religions.
• Weber is best known for his thesis
combining economic sociology and the sociology
of religion, elaborated in his book The Protestant
Ethic and the Spirit of Capitalism.
• He argued that it was in the basic tenets of
Protestantism to boost capitalism.
• Thus, it can be said that the spirit of capitalism is
inherent to Protestant religious values.
• Weber emphasised the importance of cultural
influences embedded in religion as a means for
understanding the genesis of capitalism.[
 Weaknesses of Weber’s
theory
• Certain weaknesses of his analysis have received attention
• His overreliance on the sacred texts rather than on how religion was
lived, the biases of western Indology, his conceptualization of caste.
• Equally, Weber thought a modern India would emerge in the process of
nation state formation, just as he noted the emergence of modern
capitalism in Shanghai in 1911.
• Hinduism and Buddhism marks Weber’s intense preoccupation with
religions and ethics of Asia and their diffusion throughout the region.
• He reaches back to texts, which today can only be reckoned ancient,
brilliantly characterizing their fundamental precepts and attitude to inner
and outer worlds.
• Weber lacked the knowledge to interrelate religions to social, political
and economic currents according to today’s much richer scholarly
sources.
 Karl Marx and Weber
• Karl Marx’s view of the static Indian village with ‘its cut and dried’
pattern of community organisation has always had a powerful grip on
the minds of the Indian intelligentsia
• He seems to provide the rationale for continuing in a planned manner
the task that England had begun as an ‘unconscious tool of history,
namely modernization of the country by means of large-scale
industrialization
• According to Weber, a community dominated by inner forces such as
Hinduism is unable to develop industrialism even as an imported
‘artifact’
• Weber’s thesis is that the Hindu ethic was a hindrance to capitalistic
growth
• Do religious forces influence economic forces or vice versa or do they
interact?
 What is Ethic
• Ethic, as Aristotle would define it, is
simply rules of behaviour for the
individuals as well as the society as a
whole for the conduct of its business.
• Hindu Ethic, then is rules of behaviours
prescribed by Hinduism for its followers.
 Is Capitalism compatible with
Hinduism?
• Hinduism, too, is about the individual.
• Like capitalism, it recognizes the fact that each of us is in a
different phase of life and spiritual development and hence cannot
be confined to a prescribed set of “commandments” which must
be applied collectively.
• Vedas are the central books of wisdom in Hinduism.
• And they contain general principles and not strict rules
• Vedas grant us the freedom to accept or reject their claims.
• It is this freedom that has allowed Hinduism to retain its robustness.
• Anyone who has even remotely studied Hinduism knows that we do not
have a strict hierarchical system as found in most Abrahamic religions.
• Hinduism is antithetical to authority.
• It acknowledges the fact that each individual soul is a repository of
knowledge and power..
 Entrepreneurs help grow
Economy
• Promotes Capital Formation
• Generate Employment
• Balanced Regional Development
• Reduces Concentration of Economic Power
• Wealth Creation and Distribution
• Increasing GDP and Per capita Income
• Improvement in Standard of Living
• Promotes Export – Earns Forex
• Induces Backward and Forward Linkages
• Facilitates overall development.
Entrepreneurship and national
happiness
• Do entrepreneurs contribute to national happiness?
• The answer is both yes and no.
• There exists an inverted U-shape relationship
between national happiness and entrepreneurship:
• up to a certain level an increase in entrepreneurship
will be associated with an increase in national level
happiness, after which it would be associated with a
declining level of happiness.
 Entrepreneurs who contributed for the
Economic Development of the State
• Raja Sir Annamalai • Anantharamakrishnan
Chettiar Sivasailam
• P.S. Govindasamy • T.T. Krishnamachari
Naidu • A.V. Meyyappa Chettiar
• Pollachi Mahalingam • Chelladurai Nadar
• Pachaiyappa Mudaliar • Gunasing Chelladurai
• Dr. Alagappa Chettiar • Idhayam Muthu
• Karumuttu Thiagarajan
Chettiar
• T.V. Sundaram Iyengar
 Economic Contributions of
small towns
• Sivakasi • Coimbatore
• Madurai • Erode
• Rajapalayam • Tirupur
• Tuticorin • Tiruchengodu
• Koilpatti • Namakal
• Palani • Karur
• Karaikudi • Salem
 Economics and Commodities
• Textiles • Turmeric
• Matches • Chillies
• Crackers • Mango
• Printing • Cotton
• Hosieries • Cashew
• Pumps • Fisheries
• Wet Grinders • Broilers & Eggs
• Rigs & Transport • Flowers
 Economy and Gods
• Palani Murugan • Velanganni
• Madurai Meenakshi • Nagore
• Sabarimalai Sastha
• Melmaruvathur
• Thiruvannamalai
• Rameshwaram
• Kanyakumari
 Export Economy
• Food Products
• Textiles
• Coir
• Spices
• Automobiles
• Human Resource
 Thanks!
• Any Questions?
– KR. Gnanasambandan
– krg@aathmaacademy.com
– +91 84899 38811
– www.aathmaacademy.com