Metamorphosis of Indian Economy

contd....

In 1991 when Dr. Manmohan Singh became the finance minister there were numerous changes which are as follows:-

1. Companies were freed from unnecessary restrictions and import of raw materials, machinery as well as consumer goods became much easier.

2. Foreign investment became popular leading to rise of foreign currency in India.

3. Securities and Exchange board of India (SEBI) and other Public Sector Units (PSU) also became integral part.

4. The term Liberalization, Privatization, Globalizationc(LPG) changed the aspect of Indian economy, because it restored the confidence of creditors and also maintained the currency reserves and rates.

5. Enhancing productivity promoting an employment oriented pattern of industrialization thereby attracting foreign investment.

	Variable	1993-94	1999-2000
1.	Total employment	375 Million	397 Million
2.	Unemployment rate as measured on the basis of current daily status C.D.S	6 %	7.3 %
3.	Rate of growth of employment per annum	2 % (1983-93-94)	1 % (93-94-99-2K)
4.	Number of employed workers in the agriculture sector in Millions	242	238

After that Privatization of banks and telecommunication sector flourished in the late 1990’s under administration of Mr.Vajpayee. India’s Gross National Income is only $477.4 billion till 2003-04.The real GDP growth in 2007-08 to be around 8.5 per cent before recession. Cities like NOIDA, Gurgaon, Gaziabad,Bangalore, Hyderabad, Pune, Chennai and Ahmedabad have risen in prominence and economic importance, become centers of rising industries and destination for foreign investment and firms.

Presently as we all know india is the second fastest growing economy after China and already the fourth largest economy in 2001 after the U.S., China and Japan.

As far as I see India would be the financial super power by 2040 because of its huge human resources, rapidly upcoming service sector, availability of large number of competent professionals, vast market for every product, increasing impact of consumerism, absence of controls and licenses, interest of foreign entrepreneurs in India.

Metamorphosis of Indian Economy

Recently there was a very popular message circulating on cell phones

In 1990-samosa was 1 rs and call was rs.7

In 2011-samosa is rs.7 and call rs.1

Inflation is same but rates are shifted somewhat….

Message was nice though…

No doubt we have seen a paradigm shift as compared to 1990 to the present time..

We all are aware of India’s condition after independence.we were totally ruined and our economic condition was at its worst.

Welfare of the country and making and economic democracy was the main thing in India at that time.Our first prime minister pundit Jawaharlal Nehru wanted India to be a self sufficient company and started central govt planning on account of soviet union(Russia).The first five year was started in 1951.no doubt they tried to make lots of changes in terms of industry and growth.

But as far as I see the major reforms started in 1971, under Nehru's daughter, Indira Gandhi, the Government tried to eliminate poverty by promoting small, labor intensive enterprises. One of the most wonderful things to happen to the world was the genetic development of high-yielding grain varieties, the Green Revolution, under- ground nuclear tests and development on defense took place in 1974 along with development of various large scale industries.

All these changes were followed by economic reforms by Rajiv Gandhi.as he himself was Imperial college pass out, so when he came to power he increased government support for science and technology and associated industries, and reduced import quotas, taxes and tariffs on technology-based industries, especially computers, airlines, defense and telecommunications.

India was a latecomer to economic reforms, embarking on the process in earnest only in 1991, in the wake of an exceptionally severe balance of payments crisis which will be covered in the next post..or I can say coming up soon…..

hey...:)

Cabinet is reshuffle again after january.........

some ministers are promoted and some are thrown out too like Dayanidhi Maran (Textiles) resigned in the wake of his being named in the 2G scam and Murli Deora(Corporate Affairs), M S Gill (Statistics and Programme Implementation), B K Handique (DONER), Kantilal Bhuria (Tribal Affairs) are the others who were dropped out of the cabinet..

Heading the annoyed Congress ministers Gurudas Kamat resigned as Minister of State after the reshuffle as he was unhappy after the decision made.

List of new cabinet ministers are...

1. Parliamentary Affairs- Rajiv Shukla

2. Railways-Dinesh Trivedi

3. Science and Technology, and Earth Sciences-Vilasrao Deshmukh

4. Steel-Beni Prasad Verma

5. Environment and forests-Jayanthi Natarajan

6. Health and Family Welfare-Sudip Bandopadhyaya

7. Home-Alwar MP Jitendra Singh

8. Communication and IT-Milind Deora

9. Rural Development-Jairam Ramesh

Manmohan Singh did not touch the 'big four'--finance, home, defence and external affairs--and also kept four ministries, including telecom and civil aviation...

hope this change is for goood.......!!!!!!!!!!