budget 3547 [compatibility mode]

8/8/2019 Budget 3547 [Compatibility Mode]

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India. In pictures.


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ia: Key facts & figures

Indicators India China

$ bn, 2001) 477.3 1,159.0

capita (PPP US$, 2003) 2,830.0 4,690.0

(% of GDP, 2002) 21.5% 51.1%

, . .

(% of GDP, 2002) 54.6% 33.5%

S$ bn, 2002) 52.7 325.7US$ bn, 2002) 65.2 281.5

enditure on education (% of GDP, 1998-2000) 4.1% 2.1%

INDIA,

endit

ure on health (% of GDP, 2001) 0.9% 1.9%

ficit (% of GDP, 2003) 5.4% -3.0%

erves (US$ bn, 2003) 119.8 439.8

evelo ment Indicators

n (million, 2001) 1,033.0 1,285.2

pulation growth (1975-2001) 2.0% 1.3%

n density (people per 1sq km) 324.0 130.0

n under age 15 33.7% 24.3%

n living below $ 1 a day (1990-2001) 34.7% 16.1%

yment (% of labour force, 2002) 9.9% 9.0%

acy rate (15 years and above) 58.0% 85.8%

dult literacy rate (15 years and above) 46.4% 78.7%

Factors that play a very vital

role in achieving our objectiveof a sustainable long-term

tancy (years, 2001) 63.3 70.6

tality rate (per 1,000 live births, 2001) 67.0 31.0

grow n . e s ave along way to go!


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l GDP grow th: 5-year average

0

0

0

0

0

FY56 FY62 F68 FY74 FY80 FY86 FY92 FY98 FY04

Domestic Product (GDP), in crude terms, is The graph indicates that real GDP growth, as


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l GDP growth & Per capita GDP

0 10.0

er cap a s ea grow ,

0

0

6.0

8.0

0 4.0

0

00

0.0

2.0

FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04

from the growth in GDP, how this growth is While India boasts of as one of the fastest growing


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l GDP contributors (%)

Agriculture & allied Industry Services

1950s 1960s 1970s 1980s 1990s 2000-01 2001-02 2002-03

basically comprises of output by agriculture, As can be seen from the graph above, the


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& its constituents (% growth)

4.0

n us ry erv ces gr cu ure

0.0

2.0

.

-2.0

-6.0

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04

th of an economy is a influenced by the One of the basic reasons of the underperformance of


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wth in agricultural production & GDP

9.0

,

7.0

8.0

6.0

4.0

.

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04

raph is indicative of a high level of co-relation We have already mentioned in the previous slide


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estments by the manufacturing sector

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03

my functions in cycles i.e. trough, recovery, The excess investments by the manufacturing sector


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ere the Rupee comes from

Tax Revenue(42.0%)

r Capital Receipts(17.7%)

orrowings(24.4%)

-(15.9%)

ie chart represents various sources of revenue While tax revenue accounts for a larger portion of


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ere the Rupee goes

Plan ExpenditureOther Non-Plan Expenditure

(18.4%).

1.1%)

Interest Payments(28.1%)Defense

(14.9%)

overnment, like a company, has to spend The pie indicates that the government spends a big


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stituents of tax receipts (% of GDP)

rec ax n rec ax xpen ure

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04

raph indicates the Central governments major As we had mentioned in the previous slide, growth in


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nstituents of non-plan expenditure (% )

.0

u s es e ense n eres paymen s

.0

.

.0

.0

.0

.0

.01996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04

raph shows various constituents of the The high levels of interest payments, as shown in the


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reasing debt burden of the government

u s an ng n erna e s r on o

44.0

38.0

26.0

32.0

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04

20.0

bove graph indicates the Central governments As the previous slide indicated, the biggest burden on


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or Deficit Indicators of Central Govt. (% )

2001-02 2002-03 2003-04

t simply means the excess of expenditure over While deficits are unavoidable for a developing


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rest rate & Change in money supply

0 17.0

,

0 16.0

0 15.0

0

0

13.0

14.0

1999-00 2000-01 2001-02 2002-03 2003-04

arket-based economy, the price of money Despite the Indian governments high deficit and


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rest rate & GDP growth

n eres a e row ,

0 10.0

0 8.0

.0

.0

4.0

6.0

01996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04

2.0

raph shows the co-relation between interest As shown in the graph, the softer interest rate regime


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rest rate & Inflation

n eres a e n a on ,

4.4

4.2

4.0

3.8

1999-00 2000-01 2001-02 2002-03 2003-04

.

raph shows the relationship between interest Despite rising fiscal deficit and strengthening of oil


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US$ rate & Forex reserves

48.0

49.0

46.0

47.0

43.0

44.0

.

40.0

41.0

42.0

1999-00 2000-01 2001-02 2002-03 2003-04

raph indicates rising foreign exchange inflows A large amount of these forex inflows have come in


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ia: So, whats the call?

asons to buy Reasons not to buy

,

e essence of democracy

owing entrepreneurial culture

Lack of vision among policy makers

Bureaucratic hurdles

anging population mix (rising middle-ss and younger population)

Poverty, illiteracy and inadequatehealthcare

obust financial sector

oncern ng sca s tuat on

rge low cost talent pool


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terms

.simply, it equals the amount of borrowings made by the government in a year.

Total Expenditure Revenue Receipts Disinvestment Receipts Recovery of loans

r Fiscal Deficit leads toIncreased Govt. Borrowing leads toIncreased Spending leads toter Money Supply leads toInflation leads toDemand for money exceeding supply leads tor Interest Rates

nue Deficit is the excess of revenue expenditure over revenue receipts.

ary Deficit is measured by Fiscal Deficit lessinterest payments.

idies, as defined by the Economist, are payments, usually made by the government, to keeps below what they would be in a free market, or to keep alive businesses that would otherwisest, or to make activities happen that otherwise would not take place. Subsidies can be a form

tectionism, by making domestic goods and services artificially competitive against imports.

on means r s ng pr ces. n a on ero es e purc as ng power o a un o currency. ore s mp y,prices rise, Re 1 spent tomorrow will buy you lesser amount than what it can buy you today.


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budget 3547 [compatibility mode]

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