Assignment of ied

SUBMITTED BY – MASTER
ANAND SINGH KHEECHEE

Share in National Income :- About one
fourth of India’s GDP depends on the
primary sector of which agriculture is the
core components. This as high as 51% in
1950-51, and how as low as 14.2% in
2010-11.
Share in employment :- Agriculture is the
largest employment provider sector in
India . It provides employment to around
52.1% of the total labor force.

 Supply of Wage Good :- Production of wage good is of
central significance in crop farming . Wage good are
necessities of life such as wheat , rice , pulses , maize
etc.
 Industrial Raw Material :- agriculture supplies industrial
raw material in terms of cotton for textile industrial ,
seeds for oil industry , sugarcane for sugar industry.
 Contribution to International Trade and Domestic
Trade :- India exports is farm products which makes
substantial to forex.
 Wealth of nation :- Large part of the country’s wealth
belongs to agriculture sector . In terms of land fixed
assets etc.

Lack of permanent means of irrigation
Deficiency of finance
Lack of finance hinders modernization of
Indian agriculture
Conventional outlook
Small and scattered holdings
Lack of organized market

Rise crop Productivity
Increase in Acreage :- Reduced the time
lag between sowing and harvesting by
HYV technology
Change in cropping pattern in favour of
Commercial crops
Change in farmer ‘s outlook
Self sufficiency in food grain Production

 Target at least 4% growth for agriculture.
 Cereals are on target for 1.5 to 2% growth.
 Land and water are the critical constraints.
Technology must focus on land productivity
and water use efficiency.
 Farmers need better functioning markets for
both outputs and inputs. Also, better rural
infrastructure, including storage and food
processing
 States must act to modify APMC Act/Rules,
modernize land records and enable properly
recorded land lease markets.

 Industry accounts for 26% of GDP and employs 22% of the
total workforce.
 According to the World Bank, India's industrial manufacturing
GDP output in 2012 was 10th largest in the world on current
US dollar basis ($239.5 billion),and 9th largest on inflation
adjusted constant 2005 US dollar basis ($197.1 billion).
 The Indian industrial sector underwent significant changes as
a result of the economic liberalization in India economic
reforms of 1991, which removed import restrictions, brought in
foreign competition, led to the privatization of certain
government owned public sector industries, liberalized
the FDI regime, improved infrastructure and led to an
expansion in the production of fast moving consumer goods

Investment and capacity additions are critical for
sustained industrial growth.
 Need to grow at 11-12% per year to create 2 million
additional jobs per year. Growth in 11th Plan is in 8%.
 Indian industry must develop greater domestic value
addition.
 Tune-up FDI and trade policies to attract quality
investment in critical areas.
 Improve business regulatory framework: ‘cost of doing
business’, transparency, incentives for R&D, innovation
etc.
 Better consultation and co-ordination in industrial
policy making

 Some sectors should be given special attention because they
contribute most to our objectives
e.g. Create large employment: textiles and garments, leather and
footwear; gems and jewellery; food processing industries
 Deepen technological capabilities:
• Machine tools; IT hardware and electronics
 Provide strategic security:
• telecom equipment; aerospace; shipping; defence equipment
 Capital equipment for infrastructure growth:
• Heavy electrical equipment; Heavy transport and earth-moving
equipment
 Sectoral plans are being prepared for each of the above with
involvement of industry associations and the concerned Ministries

1. Service sector is the lifeline for the social economic growth
of a country. It is today the largest and fastest growing sector
globally contributing more to the global output and
employing more people than any other sector.
2. The real reason for the growth of the service sector is due to
the increase in urbanization, privatization and more demand
for intermediate and final consumer services. Availability of
quality services is vital for the well being of the economy.
3. In advanced economies the growth in the primary and
secondary sectors are directly dependent on the growth of
services like banking, insurance, trade, commerce,
entertainment etc.

1. In alignment with the global trends, Indian service sector has
witnessed a major boom and is one of the major contributors
to both employment and national income in recent times.
The activities under the purview of the service sector are
quite diverse. Trading, transportation and communication,
financial, real estate and business services, community,
social and personal services come within the gambit of the
service industry.
2. One of the key service industry in India would be health and
education. They are vital for the country’s economic stability.
A robust healthcare system helps to create a strong and
diligent human capital, who in turn can contribute
productively to the nation’s growth.

1.Trade, hotels and restaurants (THR)
1.1 Trade
1.2 Hotels and restaurants
2. Transport, storage and communication
2.1 Railways
2.2 Transport by other means
2.3 Storage
2.4 Communication
3. Financing, Insurance, Real Estate and Business Services
3.1 Banking and Insurance
3.2 Real Estate, Ownership of Dwellings and Business Services
4. Community, Social and Personal services
4.1 Public Administration and defense (PA & D)
4.2 Other services

 Services constitute a major portion of India’s GDP with a 57 per cent
share in GDP at factor cost (at current prices) in 2013-14 — an
increase of 6 percentage points over 2000-01.
 In 2013-14 the growth rate of the services sector at 6.8 per cent is
marginally lower than in 2012-13. This is due to deceleration in the
growth rate of the combined category of trade , hotels, and
restaurants and transport, storage, and communications to 3.0 per
cent from 5.1 per cent in 2012-13, despite robust growth of financing,
insurance, real estate, and business services at12.9 per cent.
 Sub-sector-wise, banking and insurance (11.8 per cent) and real
estate, ownership of dwelling, and business services (10.0 percent)
were the best performers in terms of growth rate in 2012-13 and the
performance of railways (0.3 per cent) followed by hotels and
restaurants (0.5 per cent) was the lowest.

 India’s growth story with a services-led growth has
been unique for a developing country. The
immediate challenge in this sector is revival of
growth.
 Some services like software and telecom were big
ticket items that gave India a brand image in
services. While further focus on these services is
needed to retain and further our lead, the time has
come to focus on some other high potential big
ticket items that have high manufacturing-sector
and employment linkages

 One of the major drivers of service sector growth in the post
globalization era in India is the IT and ITES sector. That is why
NASSCOM (2005) says that, “The IT and BPO industries can
become major growth engines for India, as oil is for Saudi Arabia and
electronics and engineering are for Taiwan. Saudi Arabia’s oil
exports accounted for 46% of GDP in 2004; Taiwan’s electronics and
engineering exports accounted for 17% of GDP in the same year. ….
India’s IT and BPO industries could account for 10-12% of India’s
GDP by 2015”
 In addition, there is a huge potential for growth in the services sector
because of increase in disposable income, increasing urbanization,
growing middle class, a population “bulge” in the working age groups
providing ‘demographic window of opportunity,’ and emergence of a
wide array of unconventional /new services like IT, ITES, new
financial services (ATMs , credit cards) and tourism services (eco-
tourism, health tourism) etc.

 India’s FDI policy restricts FDI in rail transport, except in mass
rapid transit systems. FDI and privatization in the railways
could be the next big ticket reforms. A proposal has been
initiated by Indian Railways, for making suitable changes in
the existing FDI policy in order to allow FDI in railways, to
foster creation of world class rail infrastructure. The proposal
envisages allowing FDI in all areas of the rail sector except
railway operations. Even in railway operations, FDI is
proposed in PPP projects, for suburban corridors, high speed
train systems, and dedicated freight lines. While privatization
of railways has been successful in some countries like Japan,
it has failed in some others like the UK. So this proposal
needs to be examined carefully and quickly to allow
privatization/ FDI in areas where it is feasible.

 India’s share in world tourist inflows was only 0.64 per cent in 2012 (rank 41), while that of
the USA was 6.47 per cent (rank 2) and China 5.57 per cent (rank 3). India’s share in world
tourism expenditure is relatively higher at 1.65 per cent (rank 16) implying that foreign
tourists spend relatively more in India. Singapore, a small country, attracted 11.10 million
tourists in 2012, while a large country like India attracted only 6.97 million foreign tourists
during 2013.
 Some suggested measures include creating world class tourism
 infrastructure even by PPP; addressing multiple taxation issues;
 skill and etiquettes training to cater to the needs of tourists;
 special focus on cleanliness at tourist sites and safety of tourists;
 using the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) for
creating permanent assets like tourism infrastructure and facilities;
 organizing mini India cultural shows on a daily basis at important tourist sites that will not
only attract tourists but also generate employment for Indian artists; and
 Implementing urgently visa on arrival and E visa facilities at 9 airports to 180 countries
barring 8 ‘prior reference’ countries, a decision on which has already been taken.

Commercial energy demand will increase
at 7% p.a. if GDP grows at 9%. This will
require a major supply side response and
also demand management
 Energy pricing is a major issue. Petroleum
and Coal prices are significantly below
world prices and world prices are unlikely
to soften.

 We must set a target of 100,000 MW capacity
in 12th Plan (against achievement of 50,000
MW in Eleventh Plan)
 Coal availability will be a major constraint
 Hydro-power development seriously hindered
by forest and environment clearance
procedures. Himalayan States complain
strongly.
 Electricity tariffs not being revised to reflect
rising costs. Regulators are being held back
from allowing justified tariff increases.

 Nuclear power programme must continue
with necessary safety review.
 Solar Mission is seriously underfunded.
 Need longer term energy solution for cooking
in rural areas. Expand LPG network (with
cash subsidy for the deserving, not
subsidized prices). Also use off grid solar and
bio-mass energy
 Wind power development, including off shore
wind power, needs to be encouraged

 Better health is not only about curative care, but about better
prevention, Clean drinking water, sanitation and better
nutrition, childcare, etc. Convergence of schemes across
Ministries is needed.
 Expenditure on health by Centre and States to increase from
1.3% of GDP to at least 2.0%, and perhaps 2.5% of GDP by
end of 12th Plan
 Desperate shortage of medical personnel. Need targeted
approach to increase seats in medical colleges, nursing
colleges and other licensed health professionals
 Health insurance cover should be expanded to all
disadvantaged groups
 Focus on women and children; ICDS needs to be revamped

 Must aim at universalisation of secondary
education by 2017
 Must aim at raising the Gross Enrolment Ratio
(GER) in Higher Education to 20 percent by 2017
and 25 percent by 2022
 Must focus on quality of education. Must invest in
faculty development and teachers’ training
 Must aim at significant reduction in social, gender
and regional gaps in education. Targets to be set
for this purpose
 Research and innovation in higher education must
be encouraged with cross-linkages between
institutions and industry

 Railways’ Western and Eastern Dedicated Freight
Corridors must be completed by the end of the Twelfth
Plan
 High Speed Rail link between Delhi-Mumbai and Delhi-
Kolkata in the Twelfth Five Year Plan
 Complete the linkages between the ports and the
existing road and rail network. Need to deepen existing
ports. Increase bulk/container capacity
 Ensure sufficient provision for maintenance of the
already-built roads
 Invest in unified tolling and better safety on highways
 Improve bus services/public transport in smaller cities,
towns and districts.

Accelerate GDP growth from 8% to 10%
Increase agricultural GDP growth rate to
4%
Create 70 million new work opportunities.
Increase literacy rate for persons of age 7
years or above to 85%
Target growth: 9% ; Growth achieved:7.9%

• The government on 4th October approved
the 12th five year plan (2012-17) that set
average growth target at 8.2 percent.
• The theme of the Approach Paper is
“Faster, Sustainable and more inclusive
growth” .

 Basic objective : Faster, More Inclusive, and
Sustainable Growth.
 Could aim at 9.0 to 9.5 percent
 For growth to be more inclusive we need:
Better performance in agriculture
 Faster creation of jobs, especially in
manufacturing
 Stronger efforts at health, education and
Infrastructure.
 Special plans for disadvantaged/backward
regions

 Health and Education received less than projected
in Eleventh Plan. Allocations for these sectors
have increased in 12th Plan
 Health, Education and Skill Development together
in the Centre’s Plan have increased by 1.2 percent
point of GDP
 Infrastructure, including irrigation and watershed
management and urban infrastructure, will need
additional 0.7 percentage point of GDP over the
next 4 years
 Use of PPP must be encouraged, including in the
social sector, i.e. health and education. Efforts on
this front need to be intensified

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