Transcript india`s transformation

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!