Do you know …

• …who has the eleventh largest economy in the world

• …a blooming production in software and pharmaceuticals.

• …A GDP of $1,031 per capita • …A population of 1,18 billion.

INDIA’S TRANSFORMATION

Economic system 1947-1990?

• After the independence 1947 India became a mixed economy ;

- state-owned enterprises,- centralized planning - subsidies.• After 1991 India was moving towards a more

open and privatized economy.

The effect of privatization.

• Reform program in 1991 due to the low progress of development.

-the industrial licensing system was dismantled

-several areas previous closed for the private sector were opened

• Investment from foreign enterprises was welcomed

- Tariff on imports: 400 percent to 65 percent- Top income tax rate was reduce- Corporate tax: 1994: 46 percent 1997:35 percent

After privatization, deregulation, and the removal of barriers to foreign direct investment …….

• Economy

•1994-2004:

expanded at an annual rate of about 6.3 percent

•2005-2009:

12.9 percent per annum

•Foreign investment

•1991: $150 million

•2009: $34.6 billion

-the technological and pharmaceutical sector have been especially outstanding among sectors

-emerged as a vibrant global centre for software development

• Sales in 1990: $150 million

• Sales in 2007: $ 50 billion

Why has India become the leader in the technological and the pharmaceutical sector?

• Top corporations outsource their production to India.

• Approval was made automatic for foreign equity stakes, and even 100 % of foreign ownership was allowed in certain circumstances.

• Raw materials and industrial goods could be freely imported.

THANK YOU FOR YOUR ATTENTION!