Part I 3 Indian Economy

ECONOMIC ENVIRONMENT OF BUSINESS {50 MARKS}
COURSE CONTENT : 4 PARTS PART I : The Fundamentals {Before syllabus we would cover in deeper the meaning of economic environment of business} The Scope & Subject Matter of Macroeconomics An Introduction to the Economics of Growth & Development An Introduction to the Indian Economy - Its Salient Features India's Gross Domestic Product & Net National Product (its components & the significance of the same to growth) Inter-Sectoral Distribution of the Gross National Product over the Five Year Plans Period.
PART II: The Economic Markets:

The Product Market & How it Affects India's Growth Potential The Money Market & How it Behaves The Capital Market & its Variability The Money Market & the Role of Central Banking How does Commercial Banking Effect Industry & Business The Indian Labor Market & Levels of Unemployment & Inflation since 1990
PART III : Federal Budget

Objective is to expose the students to the various components of the national budget and how these impact on the business world.
PART IV: India & the World The capitalist world economy and India's position therein since 1990
The World Bank, and IMF conditionalities leading to the liberalisation - privatisation -globalisation exercise and beyond
India's balance of trade and fluctuations since 1990. How do

er figure in the world order.

India's balance of payments and how its study can assist corporate decision making. What is needed to improve the situation, if at all it is poor. The Business Cycle and how it is perceived to behave in the immediate future. What business decision hinge on this analysis.
MEANING OF UNDER DEVELOPING ECONOMIES

MEANING OF AN UNDERDEVELOPED ECONOMY:
Distinction between Underdeveloped and Developed countries is rather loose.

UN Experts observed We have some difficulty in interpreting the term Underdeveloped Countries. We use it to mean .. countries in which per capita real income is low when compared with the per capita real incomes of the United States of America, Canada, Australia and Western Europe. In this sense an adequate synonym would be poor countries

U.N. CLASSIFICATION: The term Underdeveloped Countries is relative . In general those countries which have real per capita income less than a quarter of the per capita income of the United States are underdeveloped countries. More recently instead of referring to these economies as underdeveloped, the UN publications prefer to describe them as Developing Economies.

Developing countries signifies that though still underdeveloped the process of development has been initiated in these countries . Thus we have two categories Developing Economics and Developed Economies World Bank Classification [World Development Rep 2009] (Based on Gross National Income per capita) Categorisation of Developing Countries Low Income and Middle Income Countries ($ 936 and below) and Middle Income Group (PC GNI $936 and $11,455) Lower Middle Income (PCI $936 to $3,705) Upper Middle Income (PCI $3706 to $11,455 )

High Income Countries [Organisation for Economic Cooperation and Development (OECD)] and others $11,456 or more.
DISTRIBUTION OF WORLD POPULATION & WORLD GNI AMONG VARIOUS GROUP OF COUNTRIES
COUNTRY GR. Population Mn. 1296 4260 3437 823 1056 6612 % 19.6 GNI ( ex. Rate GNI PPP basis basis Bn($) 749 % 1.4 Bn($) 1935 % 3.0 38.7 23.8 14.9 58.3 100 Per capita GNI Ex Rate Basis($) 578 2872 1887 6987 37,566 7958
PPP Basis($)
24.6%
84%
LOW INCOME MIDDLE INCOME a. Low Middle Income b. Upper Middle Income HIGH INCOME WORLD
1494 5952 4543 11,868 36,100 9852
64.4 12235 52.0 6485 12.4 5750
23.2 25,354
12.3
15,614 9766 38,144
10.9
16.0
100.
39,682 75.4
52,621 100.0 65,144
DISTRIBUTION OF WORLD POPULATION & WORLD GNI AMONG VARIOUS GROUP OF COUNTRIES
Country
GR.
Mn. %
Population
GNI (ex.Rate GNI PPP basis basis

Bn($) % Bn($) %I
Per Capita GNI

Ex Rate Basis($) 37,566 PPP
Basis($)
HIGH INCOME WORLD CHINA
1056
16.0
39,682 75.4
38,144
58.3
36,100
6612 1320
100. 20.0
52,621 100.0 3121 5.9
65,144 7084
100 10.8
7958 2360
9852 5370
INDIA
1123
17
1069 2.0
3079
4.7
950
2740

Low Income countries comprise nearly 19.6% of world population (1296 million) but account for only 1.4% of total world GNI. The middle income countries which are less developed than the highly developed countries but comparatively more developed than the low income countries comprise 64.3% of world population but account for 23.2 % World GNI. These two groups known as developing economies comprise about 84% of world population but account for about 24.6% of the world GNI. [Most countries of Asia, Africa, Latin America etc. fall under this category]

High Income Economies which comprise only about 16% of world population account for 75% of world GNI. Thus bulk of poor people reside in the low income and middle income developing countries. AK Cairncross calls that they constitute the slums of the World Economy. India with its population of 1,123 million in 2007 and with its per capita income of $950 is among the poorest of the economies of the world.

It has a share of 17% of World Population but accounts for only 2.0 % of World GNI on exchange rate basis. Though with a per capital GNI of $2,746 India continues to remain under the group of lower middle income economies but with the accretion in its growth rate of GDP to an average of 8% India will very soon enter the group of upper middle income countries.
3 observations could be made regarding the UN Classification of the developed and developing countries on the basis of per capita income.

First, there is area of gross inequality of incomes between the rich and the poor countries. Second, During last 17 years ( 1990-2007) the rates of growth of GDP in low income economies were higher than those in high income economies. As a corollary the gap between low income and high income economies has reduced. China provides an illustration which is unique in the sense that its growth rate of GDP during 1990-2000 averaged 10.6% and during 2000-2005 averaged 9.6% .

India has also shown a high growth rate of 6% during 1990-2000 and 8% during 2000 07 . This implies that two Asian giants are marching forward on the road to development at a higher pace than the high income countries. China has already entered the upper middle income group. India will follow soon if GDP growth rate which has reached a level of 9% in 2006-07 is further raised 10% by 2010.
GROWTH RATE AMONG DIFFERENT GROUPS OF ECONOMIES

COUNTRIES LOW INCOME MIDDLE INCOME a. Lower Middle Income b. Upper Middle Income PAKISTAN CHINA INDIA Average Annual Growth rate of GDP
1999-2000
4.8 3.8 5.3 2.1 2.7 10.6 6.0
2004-05
6.1 5.2 6.3 3.5 2.2 9.6 7.0

Third all the high income countries are not necessarily developed countries. For instance the oil exporting countries have high per capita income but this is mainly due to their exports of oil; really speaking they are not developed countries.
(a) Developing economies are distinguished from the developed economies on the basis of their low per capita income. It is most significant single measure of comparison for different economies. (b) The central problem of developing economies is the prevalence of mass poverty which is the cause as well as consequence of their low level of development.

(C) Mass Poverty is the result of low resource base of the poor who own a very small portion of the total assets in the form of land, capital, house property etc.
The children of the poor by and large are either engaged in unskilled occupations or some semi skilled occupations. This enables them to earn very low and meagre wages and thus perpetuate poverty.
(d) Mass poverty in developing economies is not due to poor natural resources but due to inadequate development of these resource and exploitative social structure.
BASIC CHARACTERISTICS OF THE INDIAN ECONOMY AS DEVELOPING ECONOMY

1. India is a low income developing economy. 2. Nearly one fourth of its population lives in conditions of misery. 3. Poverty is not only acute but also chronic. 4. There exist unutilised natural resources CHARACTERISTICS OF INDIAN ECONOMY:
1. LOW PER CAPITA INCOME
Per Capita Income in India in 2008 was $1040 . Barring a few countries the per capita income of the Indian people is lowest in the world. Despite having grown at a faster pace than the developed economies during 1990-2009, the percapita income in India is lower than many countries :
PER CAPITA GNI AT MARKET PRICES (IN US DOLLARS) COUNTRIES 2008
EXCHANGE RATE BASIS

SWITZERLAND 55,510
PURCHASING POWER PARITY BASIS
39,210
USA JAPAN GERMANY U.K.
47,930 38,130 42,710 46,040
46,790 35,190 35,950 36,240
INDIA
CHINA
1040
2,940
2,930
6,010

1. It may be noted that in 2008 the average per capita GNI of USA at official exchange rates was 46 times that of India, while at the purchasing power pairty rates it was 16 times only. 2. Still the difference between the Standard of living of the average American and an Indian was quite large and significant. 2.OCCUPATIONAL PATTERN: PRIMARY PRODUCING:
One of the basic characteristics of an underdeveloped economy is that it is primary producing .

In India in 2008, 58% of the working population was engaged in agriculture and its contribution to national income was 17.5% In Asia, Africa and Middle East countries from 2/3rd. to more than 4/5 th. of the population earn their livelihood from agriculture and in most Latin American countries from 2/3rd to 3/4th of population are dependent on agriculture .

From occupational point of view Indian Economy is primary producing because agriculture contributes 18% of national income while 58% of the labour force is engaged in agriculture. Yet Agriculture continues to be a depressed industry as the productivity per person engaged in it is very low.
PERCENTAGE OF AVERAGE POPULATION ENGAGED IN AGRICULTURE AND INDUSTRIAL ORIGIN OF GDP IN 2008
COUNTRIES Active Population % engaged in Agricult.. Industrial Origin of GDP Percentage Distribution
Agriculture. Industry U.K. U.S.A. JAPAN THAILAND PAKISTAN CHINA 1 4 5 45 52 47 0.7 1.3 1.4 11.6 20.4 11.3 23.7 21.8 29.3 44.2 26.9 48.6
Service 75.6 76.9 69.3 44.2 52.7 40.1
INDIA
58
17.5
28.8
53.7

3. HEAVY POPULATION PRESSURES:
Heavy population pressure in India emerged from high level of birth rates coupled with a falling level of death rates. The rate of growth of population which was about 1.31% during 1941-50 rose to 1.93% during 1991-2001. While there is a steep fall in death rate from 49 per thousand during 1911-20 to 7.4 per thousand in 2008, birth rate has declined from about 49 per thousand during 1911-20 to 22.8 per thousand in 2008. The annual average rate of growth of population during 2000-2005 has further declined to 1.5%

The fast rate of growth of population necessitated a higher rate of economic growth in order to maintain the same standard of living. For rapidly growing population, the requirements of food, clothing, shelter ,medicine, schooling etc. all rise. A rising population leads to an increase in the labour force. According to Tenth Plan between 2002 and 2007 alone labour force was expected to increase by about 35 million at an annual average rate of 1.8%.

Such addition in labour employment opportunities unemployment. force without enough will lead to higher

4. PREVALENCE OF CHRONIC UNEMPLOYMENT AND UNDEREMPLOYMENT :
Due to abundance in labour it is very difficult to provide gainful employment to the entire working population.
In developed countries unemployment is of a cyclical nature and occurs due to lack of demand . In India unemployment is structural in nature and is the result of a deficiency of capital.
There is disguised or concealed unemployment in Agriculture. Thus even if the surplus population is siphoned off , the total output from agriculture will not fall because those persons who were working below capacity begin to be utilised to the full. The Planning Commission on the basis of the NSS data has estimated that during 2004-05 the rate of unemployment has risen to 8.36% as against 7.32% in 1999-00. The Eleventh Plan (2007-12) will have a backlog of 37 million unemployed.

The revised estimates of the Planning Commission reveals that 45 million are likely to be the new entrants to the labour force during the Eleventh Plan . Thus the total job requirements of the 11th plan work out to 82 million.

5.
STEADILY IMPROVING FORMATION.
RATE
OF
CAPITAL
During 50s and 60s basic characteristic of the Indian economy was the capital deficiency which is reflected in two ways: Firstly, the amount of capital per head available was low and The rate of capital formation was also low. An important indicator of low capital per head available in underdeveloped countries is the consumption of energy.

Per Capita Consumption of electricity in India is extremely low as compared to the advanced countries.
COUNTRIES U.S.A.
U.K. JAPAN CHINA INDIA
Energy use (Kg. of oil equivalent Per Capital (2007) 7,766

3,464 4,019 1,484 529

Gross Capital Formation in India is higher than that of important developed economies.
Professor Colin Clark has estimated that in order to maintain the same standard of living a country requires an additional investment of 4% per annum. In a country like India where population growth is 1.5% (2000-2005) about 6% investment is needed to offset the additional burden imposed by the rising population.
GROSS CAPITAL FORMATION & GROSS DOMESTIC SAVING AS % OF GDP

Gross Capital Formation 1990 U.S.A U.K. 18 20 2008 18.3 16.8 Gross Domestic Savings 1990 16 18 2008 13.7 15.6
JAPAN
GERMANY CHINA INDIA
33
24 35 24
24.1
19.3 44.4 39.7
34
24 38 23
28.9
25.8 54.3 38.0

India requires as high as 14% of Gross capital formation so that it may cover depreciation and maintain the same level of living. India has reached a Saving rate of 22% in 2003 which is sufficiently high .
More recently Gross Domestic Saving in 2008 reached a high level of 38% and Gross capital formation was high at 39.7%.

6. MAL DISTRIBUTION OF WEALTH/ASSETS: RBI Survey of assets of Rural and Urban households for the period July 1991- June 1992 brings out the existence of sharp inequalities in asset distribution.
In Rural areas 51% of bottom households owned just 10% of total assets.
As against this 9.6% of rich households accounted for nearly 49% of total assets.
In Urban area the position is much worse: 50.7% of the Urban households owning less than Rs. 50,000 worth of assets accounted for barely 5.3% total assets. As against them nearly 66% of the total assets of all urban households were held by 14.2% of the households each owning Rs. 2.5 lakhs and above. Inequality in asset distribution is the principal cause of unequal distribution of income in the rural areas.

It signifies that the resource base of 50% of the households is so weak that it can hardly provide them anything above the subsistence level of income.
PERCENTAGE DISTRIBUTION OF HOUSEHOLDS & ASSETS IN INDIA (1991-92)

Rural (%) House Assets hold Less than Rs.20,000 Rs.20,000-50,000 Rs. 50,000-1,00,000 Rs. 1,00,000- 2,50,000 Rs. 2,50,000 & above All Classes 27.0 23.8 20.9 18.8 9.6 100 2.4 7.5 14.0 27.3 48.8 100 Urban (%) Hous Assets ehold s 33.5 17.2 16.0 19.0 14.2 100 1.4 3.9 8.0 20.8 65.8 100

7. POOR QUALITY OF HUMAN RESOURCES: Under the United Nations Development Programme (UNDP) countries have been ranked on the basis of Human Development Index ( HDI) . This index is based on life expectancy, adult literacy, combined enrolment ratio- first second and third level and real GDP per capita in US dollars. It is distressing to note that India has been ranked at 134. on the basis of HDI in 2007. while China is ahead us at 92.
HUMAN DEVELOPMENT INDEX 2007 COUNTRY LIFE ADULT EXPECT LITERACY ANCY (%) 2007 2007
COMBINED ENROLME NT RATIO (%) 2007 PER CAPITA REAL GDP $PPP2007
HDI RANK
CANADA U.S.A. JAPAN FRANCE
80.6 79.1 82.7 81.0
99.0 99.0 99.0 99.0
99.3 92.4 86.6 95.4
35,812 45,592 33,632 33,674
4 13 10 8
U.K.
CHINA INDIA
79.3
72.9 63.4
99.0
93.3 66.0
89.2
68.7 61.0
35,130
5383 2,753
21
92 134

8. LOW LEVEL OF LIVING OF THE AVERAGE INDIAN:
Failure to secure a balanced diet manifests in India is the low calorie intake and low level of consumption of protein. In 1999 the average calorie intake of foods is only 2496 as compared to over 3,400 calories per day in most of the developed countries. This is again slightly above the minimum intake for sustaining life estimated at 2100 calories.

About 28% of population in India lived below the poverty line in 2004-05 (getting calorie intake lower than 2100 ). According to World Development Indicators, 46% of the child population in India suffers from malnutrition.
According to Census data (2001) 52% of households were living in permanent, about 30% in semi permanent and 18% in temporary homes.
DISTRIBUTION OF HOUSEHOLDS BY TYPE OF HOUSES (2001) [ In Million]

Total 99.4 (51.8) 57.7 (30.0) 34.9 (18.1) 192.0 Rural 56.8 (41.1) 49.4 (35.7) 32.1 (23.2) 138.3 Urban 42.6 (79.3) 8.3 (15.4) 2.8 (5.2) 53.7
PERMANENT
SEMI PERMANENT
TEMPORARY
TOTAL
(100)
(100)
(100)

9. DEMOGRAPHIC CHARACTERISTICS UNDERDEVELOPED COUNTRY: OF AN
High population density (373 per sq Km. as against 33 in US, Canada and Australia 2-4 per sq km) . In China 141 and World level 50 2006 data) Low expectation of life High infant mortality

Some Improvements in demographics are taking place:
The percentage of children (Below 15 years) which was 35.5% in 2001 has declined to 32.1% in 2006 and to 23.3% by 2026. Consequently the population in the working age group (15 to 64 years) is expected to increase from 63% in 2006 to 68.4% by 2026. Due to fall in dependency ratio, India will experience a demographic dividend during the next 3 decades.

10.SOCIO ECONOMIC INDICATORS CONSUMPTION ARE CHARACTERISTIC UNDERDEVELOPED ECONOMY IN INDIA: OF OF
Underdevelopment finds expression through several socio economic indicators such as per capita intake of calories, fats and proteins, population per TV set and physician .
India remains far behind the developed countries so far as these indicators of standard of living are concerned.
SOCIOECONOMIC INDICATORS OF STANDARD OF LIVING (1999)

COUNTRY PER CAPITA DAILY INTAKE
FATS (gms) PROTEIN (gms) CALORIES PER 1000 PERSONS TV SETS PHYSICIAN S (1998)
INDIA CHINA
45 71
59 77
2496 2,897
69 272
0.4 2.0
JAPAN
U.S.A. U.K.
83
143 141
96
112 93
2,932
3,699 3,276
707
847 645
7.3
2.5 1.5

TO SUM UP INDIAN ECONOMY HAS MADE COMMENDABLE PROGRESS ON MANY FRONTS BUT IT HAS MILES TO GO TO REMOVE POVERTY, MALNUTRITION AND PROVIDING THE DRINKING WATER TO ITS ENTIRE POPULATION.

MAJOR ISSUES/CHALLENGES OF DEVELOPMENTS IN INDIA
1. LOW PER CAPITA INCOME AND LOW RATE OF ECONOMIC GROWTH: Barring a few countries in the World, the per capita income of the Indian people is lowest in the world. However due to faster development after reform the gap of per capita GDP with developed countries has been reduced.

2.. HIGH PROPORTION OF PEOPLE BELOW THE POVERTY LINE:
According to the Planning Commission, in 2004-05 nearly 302 million people ( 27.5% of total population) were living below the poverty line 221million in rural area and 81 million in Urban area
The burden of poverty is massive.

Rapid reduction and eventually the elimination of poverty is therefore the most important issue of development.

3. LOW LEVEL OF PRODUCTIVE EFFICIENCY DUE TO INADEQUATE NUTRITION AND MALNUTRITION: Nutrition influence economic development via raising the level of productivity, efficiency and intelligence of the community. The National Sample Survey has estimated that about 56% of the urban population and about 49% of the rural population suffers from inadequate nutrition as they do not get a calorie intake of 2,400 per day considered as a reasonable level of nutrition.

The level of malnutrition in all expenditure groups was higher in the urban areas than in the rural areas. This is partly due to the relative lower prices of food production and their relative easy availability in rural areas. Thus there is a clear cut need for an integrated policy with regard to prices, production and distribution of various food grains coupled with a programme for raising the output of such non cereals as milk products, poultry, fish, meat, pulses, vegetables and fruits.

4. IMBALANCE BETWEEN POPULATION SIZE , RESOURCES AND CAPITAL:
Economic growth is adversely affected by a rapid growth of population. The rate of growth of population of India at 1.5% per annum is still higher. A rising population imposes greater economic burdens and consequently society has to make greater efforts to initiate the process of growth

More over with the increase rising population per capita availability of land and such other resources fixed in supply declines. Consequently society has to make greater efforts to eke out more output per unit of land.
Similarly significant proportion of the capital formation is utilised to provide basic facilities to the additional population at the present level of living.

5. PROBLEM OF UNEMPLOYMENT:
A major development issue in India is to eliminate unemployment and provide gainful employment to million of people without work. In 2001-02, India had an incidence of unemployment underemployment of the order of 9.2% . In other words the development plans in India failed to absorb even the normal increase in labour force during this period not to speak of reducing the backlog of unemployment.

The employment strategy of planned development will have to be directed (a) to adopt an employment- intensive sector planning (b) to regulate technological change to protect and enhance employment and (c)to promote area planning for full employment .
The focus should be on expanding employment through labour absorbing technologies.

The expansion of infrastructure and social services i.e. road construction , rural electrification , water supply rural schools and community health schemes besides irrigation , power and housing programmes will help to generate massive employment through expansion in construction activity and their secondary and tertiary effects in raising agricultural productivity and income of the poor.

6.. INSTABILITY OF OUTPUT OF AGRICULTURE AND RELATED SECTORS:
Uncertainty of agricultural production is one of the major problems of Indian economy since agriculture is still a gamble in the monsoons. Since Independence, there has been considerable increase in the production of the agricultural sector.

For example between 1950-51 and 2003-04 production of food grains increased from 54 million tonnes to 213 million tonnes Between 1961 and 2003-04 production of wheat has increased spectacularly from 11 million tonnes to 72 million tonnes.
Inspite of this spectacular growth food grains output has been fluctuating from year to year. This is also true of oilseeds, sugarcane, cotton and jute the major commercial crops.
Instability of output of agriculture also results in causing

For example a fall in the production of sugar cane or jute leads to a small availability of raw material for the sugar and textile industry. Similarly a cut back in agricultural production also results in reduction of employment in agriculture and this in turn reduces aggregate demand in the economy as the purchasing power of the peasants falls. Thus a major development issue for the Indian
economy is to devise a strategy of agricultural development which can promise a steady growth

IM1 to 31% in 1974-75. 8. IMBALANCE BETWEEN HEAVY INDUSTRY AND WAGE GOODS: In the post independence period, as a matter of deliberate policy Government had decided to set up heavy industries to build the industrial base of the economy. In the aftermath of 1962 debacle Government has decided to pay attention on defence industries which resulted into massive investment in heavy industries.

Following stepping up of investment in the heavy industry sector, as was rightly done it was quite natural that share of wage goods sector in the total investment fell from 41% in 1950-51 to 31% in 1974-75.
A study of Indian Economy during 1963-76 by Prof. Brahmananda revealed that supply of wage goods rose at smaller pace than the supply of non wage goods, the growth rate of supply of wage goods sector was just 2% per annum as against over 4% in the non wage good sector.
This resulted in a sharp increase in the prices of wage goods at the annual rate of 8% per annum.

Thus the increase in real wages of workers that had taken place during the early phase of planning was wiped out by the increase in the prices of wage goods during 1963-76.
Now that country has been able to build a reasonable industrial base it is imperative that the imbalance between the heavy industry and wage good sector be corrected by shifting investment policies in favour of wage goods. This path of balanced growth will help to improve the level of living of the masses.

17. IMBALANCES ON DISTRIBUTION AND GROWING INEQUALITIES: There have been growing inequalities of income and wealth in India during the last 5 decades of planned economic development; redistribution of income in favour of the less privileged classes has not taken place.
18. CONCENTRATION OF INCOME AND WEALTH HAS INCREASED . The condition of bottom 20% of the population has definitely deteriorated and the next 20% of the population has remained stagnant.

A leading issue of economic development is to assure continuous growth with justice through better distribution of a national wealth produced in the country.

1. LOW PER CAPITA INCOME 2. Occupational pattern: Primary Producing 3. Heavy Population Pressure 4. Prevalence of Chronic Unemployment and Underemployment 5. Steadily Improving rate of Capital Formation 6. Mal Distribution of Wealth/Assets 7. Poor Quality of Human Capital 8. Low Level of Living of Average Indian 9. Demographic Characteristics of an Underdeveloped Country 10. Socio Economic indicators of Consumption are Characteristics of Underdeveloped Economy in India.
MAJOR ISSUES IN DEVELOPMENT OF INDIAN ECONOMY

1. Low Per Capita Income and Low rate of Economic Growth
2. High proportion of people below the poverty line 3. Low level of productive efficiency due to inadequate nutrition and malnutrition 4. Imbalances between population size, resources and Capital 5. Problem of high Unemployment 6. Instability of output of agriculture and related sectors 7. Imbalance between heavy industry and wage goods 8. Imbalance in distribution and growing inequalities.

Part I 3 Indian Economy

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Part I 3 Indian Economy

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ECONOMIC ENVIRONMENT OF BUSINESS {50 MARKS}

PART II: The Economic Markets:

ECONOMIC ENVIRONMENT OF BUSINESS {50 MARKS}

PART III : Federal Budget

ECONOMIC ENVIRONMENT OF BUSINESS {50 MARKS}

India's balance of trade and fluctuations since 1990. How do

ECONOMIC ENVIRONMENT OF BUSINESS {50 MARKS}

MEANING OF UNDER DEVELOPING ECONOMIES

Distinction between Underdeveloped and Developed countries is rather loose.

MEANING OF UNDER DEVELOPING ECONOMIES

MEANING OF UNDER DEVELOPING ECONOMIES

MEANING OF UNDER DEVELOPING ECONOMIES

1494 5952 4543 11,868 36,100 9852

64.4 12235 52.0 6485 12.4 5750

15,614 9766 38,144

52,621 100.0 65,144

GNI (ex.Rate GNI PPP basis basis

Per Capita GNI

HIGH INCOME WORLD CHINA

52,621 100.0 3121 5.9

MEANING OF UNDER DEVELOPING ECONOMIES

MEANING OF UNDER DEVELOPING ECONOMIES

MEANING OF UNDER DEVELOPING ECONOMIES

MEANING OF UNDER DEVELOPING ECONOMIES

MEANING OF UNDER DEVELOPING ECONOMIES

GROWTH RATE AMONG DIFFERENT GROUPS OF ECONOMIES

MEANING OF UNDER DEVELOPING ECONOMIES

MEANING OF UNDER DEVELOPING ECONOMIES

BASIC CHARACTERISTICS OF THE INDIAN ECONOMY AS DEVELOPING ECONOMY

PER CAPITA GNI AT MARKET PRICES (IN US DOLLARS) COUNTRIES 2008

EXCHANGE RATE BASIS

PURCHASING POWER PARITY BASIS

USA JAPAN GERMANY U.K.

47,930 38,130 42,710 46,040

46,790 35,190 35,950 36,240

BASIC CHARACTERISTICS OF THE INDIAN ECONOMY AS DEVELOPING ECONOMY

BASIC CHARACTERISTICS OF THE INDIAN ECONOMY AS DEVELOPING ECONOMY

BASIC CHARACTERISTICS OF THE INDIAN ECONOMY AS DEVELOPING ECONOMY

Service 75.6 76.9 69.3 44.2 52.7 40.1

BASIC CHARACTERISTICS OF THE INDIAN ECONOMY AS DEVELOPING ECONOMY

BASIC CHARACTERISTICS OF THE INDIAN ECONOMY AS DEVELOPING ECONOMY

BASIC CHARACTERISTICS OF THE INDIAN ECONOMY AS DEVELOPING ECONOMY

BASIC CHARACTERISTICS OF THE INDIAN ECONOMY AS DEVELOPING ECONOMY

BASIC CHARACTERISTICS OF THE INDIAN ECONOMY AS DEVELOPING ECONOMY

BASIC CHARACTERISTICS OF THE INDIAN ECONOMY AS DEVELOPING ECONOMY

BASIC CHARACTERISTICS OF THE INDIAN ECONOMY AS DEVELOPING ECONOMY

STEADILY IMPROVING FORMATION.

BASIC CHARACTERISTICS OF THE INDIAN ECONOMY AS DEVELOPING ECONOMY

Energy use (Kg. of oil equivalent Per Capital (2007) 7,766

BASIC CHARACTERISTICS OF THE INDIAN ECONOMY AS DEVELOPING ECONOMY

GROSS CAPITAL FORMATION & GROSS DOMESTIC SAVING AS % OF GDP

BASIC CHARACTERISTICS OF THE INDIAN ECONOMY AS DEVELOPING ECONOMY

BASIC CHARACTERISTICS OF THE INDIAN ECONOMY AS DEVELOPING ECONOMY

BASIC CHARACTERISTICS OF THE INDIAN ECONOMY AS DEVELOPING ECONOMY

BASIC CHARACTERISTICS OF THE INDIAN ECONOMY AS DEVELOPING ECONOMY

PERCENTAGE DISTRIBUTION OF HOUSEHOLDS & ASSETS IN INDIA (1991-92)

BASIC CHARACTERISTICS OF THE INDIAN ECONOMY AS DEVELOPING ECONOMY

CANADA U.S.A. JAPAN FRANCE

80.6 79.1 82.7 81.0

99.0 99.0 99.0 99.0

99.3 92.4 86.6 95.4

35,812 45,592 33,632 33,674