Why golden bird?

Historic Times
It is because the India had the treasure of natural wealth. It was rich in all aspects
like agriculture, economy, natural enviornments, natural wealth (suitable weather
conditions, minerals and mines, water resources, fertility of land, etc. and all the
most harmony amongst its people. That is why it was called the !ird of "old. This is
the reason that !ritishers were attracted towards this "olden #ountry.
$Include something about mahara%as and kingdoms etc.$
#olonial period (&''()&*+'
#ompany rule in India brought a ma%or change in the ta,ation and agricultural
policies, which tended to promote commercialisation of agriculture with a focus on
trade, resulting in decreased production of food crops, mass impoverishment and
destitution of farmers, and in the short term, led to numerous famines.The result
was a significant transfer of capital from India to -ngland, which, due to the
colonial policies of the !ritish, led to a massive drain of revenue rather than any
systematic effort at modernisation of the domestic economy..++/
0re1liberalisation period (&*+')&**&
Indian economic policy after independence was influenced by the colonial
e,perience, which was seen by Indian leaders as e,ploitative, and by those leaders2
e,posure to !ritish social democracy as well as the progress achieved by the planned
economy of the 3oviet 4nion..+5/ 6omestic policy tended towards protectionism,
with a strong emphasis on import substitution industrialisation, economic
interventionism, a large public sector, business regulation, and central planning,.78/
while trade and foreign investment policies were relatively liberal..7(/ 9ive1:ear
0lans of India resembled central planning in the 3oviet 4nion. 3teel, mining,
machine tools, telecommunications, insurance, and power plants, among other
industries, were effectively nationalised in the mid1&*7;s.
0ost1liberalisation period (since &**&
"60 of India has risen rapidly since &**&.
India asked for a <&.5 billion bailout loan from the International =onetary 9und
(I=9, which in return demanded reforms..>+/
In response, 0rime =inister ?arasimha @ao, along with his finance minister
=anmohan 3ingh, initiated the economic liberalisation of &**&.
!y the turn of the 8&st century, India had progressed towards a free1market
economy, with a substantial reduction in state control of the economy and increased
financial liberalisation. This has been accompanied by increases in life e,pectancy,
literacy rates and food security, although urban residents have benefited more than
agricultural residents.
Why 6id it 3tart #hange in economic policies startAA.????
In 1991, India Faced a Balance of Payments Crisis.
It had to Pledge its Gold to Foreign Countries.
It was a deal with he I!F.
hen P! of India, P " #arsimha $ao %new that It was time for &ome Bold 'ecision.
=a%or issues of 6evelopment
()ow *er+ca*ita income
(Income ine,ualities
(-igh incidence if *o.erty
(Predominance of agriculture and insta/ility of out*ut
($a*id *o*ulation growth
(-igh de*endency ratio
()ow le.el of human de.elo*ment
(0nem*loyment
(Im/alance /etween *o*ulation si1e, resources and ca*ital
(Inade,uacy of entre*reneurs
BI!-@CBI3CTID?
-conomic liberaliEation is a .ery /road term that usually refers to fewer go.ernment
regulations and restrictions in the economy in e2change for greater *artici*ation of
*ri.ate entities
=easuresF
)i/erali1ation for industrial licensing.
Concession from !ono*olies 3ct.
Freedom for e2*ansion and *roduction to industries
Increase in the in.estment limit of the small industries.
Freedom to im*ort the ca*ital goods and raw material.
Freedom to im*ort technology.
)i/erali1ation of e2*ort and im*ort transactions.
)i/erali1ation in ta2ation *olicy.
)i/erali1ation in ca*ital mar4ets.
)i/erali1ation in /an4ing sector
!enefits
Increase the foreign in.estment.
Increase the foreign e2change reser.e.
Increase in consum*tion.
Control o.er *rice.
Chec4 on corru*tion.
$eduction in de*endence on e2ternal commercial /orrowings.
Bimitations
Increase in unem*loyment.
)oss to domestic units.
Increase de*endence on foreign nations
0n/alanced de.elo*ment
Increase the im/alances.
"BD!CBI3CTID?
Glo/ali1ation descri/es an ongoing *rocess /y which regional economies, societies, and
cultures ha.e /ecome integrated through a glo/e+s*anning networ4 of e2change. he
term is sometimes used to refer s*ecifically to economic glo/ali1ation5 the integration of
national economies into the international economy through trade, foreign direct
in.estment, ca*ital flows, migration, and the s*read of technology.
=easures adopted for globaliEation.
Increase the foreign in.estment.
Partial con.erti/ility of Indian ru*ee.
Foreign trade *olicy.
$eduction I tariffs.
62*ort *romotion.
Freedom to re*atriate.
0ositive -ffects of globaliEation.
Increase in foreign trade.
Increase in foreign in.estment.
Foreign direct in.estment7F'I8.
Increase in foreign colla/oration.
Increase in foreign e2change reser.es.
62*ansion of mar4et.
echnological de.elo*ment.
Brand de.elo*ment.
'e.elo*ment of ser.ices sectors.
'e.elo*ment of ca*ital mar4et.
Increase in em*loyment.
$eduction in /rain drain.
Im*ro.ement in standard of li.ing.
?egative effects of globaliEation.
)oss of domestic industries.
0nem*loyment.
62*loitation of la/our.
'emonstration effect
Increase in ine,ualities.
'ominance of foreign institutions.
3teps Taken to "lobaliEe Indian -conomy
&. 6evaluation of rupee
8 . 6isinvestment
(. Cllowing 9oreign 6irect Investment
+. ?@I 3chemes
0@IGCTI3CTID?
0rivatiEation is the incidence or *rocess of transferring ownershi* of a /usiness,
enter*rise, agency or *u/lic ser.ice from the government to the private sector. In a
/roader sense, *ri.ati1ation refers to transfer of any go.ernment function to the *ri.ate
sector including go.ernmental functions li4e re.enue collection and law enforcement.
=easures adopt for privatiEation.
H#ontraction of public sectors
H3ales of shares of public sectors to the private sector.
H3ick public sectors industries.
H=emorandum of understanding
H?ational renewal fund.
Cdvantages of privatiEation.
Increase in efficiency.
Professional management.
Increase in com*etition.
In line with international trends.
$eduction in economic /urden of Go.t.
Increase in res*onsi/ility.
$eduction in *olitical interference.
6ncouragement to new inno.ations.
Increase the industrial growth.
Increase the foreign in.estment.
$eduction in *u/lic sectors.
Bimitations of privatiEation.
Industrial sic4ness.
)ac4 of welfare.
Class struggle.
Increase in ine,uality.
9**osition /y em*loyees.
Pro/lem of financing.
Political *ressure.
Increase in unem*loyment.
Ignores the wea4er sections.
Ignores the national im*ortance
Problems and Steps
Literacy and economic development:
Parliament has passed the constitution 86th amendment act, 2002, to
make elementary education a fundamental right for children in the age
group of 6-14 years.
Government schemes to reduce illiteracy:
he Sarva Siksha Abhiyan !as launched in 2001 to ensure that all
children in the age group 6-14 years attend school and complete eight
years of schooling "y 2010.
he centrally sponsored District education programme launched
in
1##4 has so far opened more than 160,000 ne! schools
$ne of the most popular schemes adopted to attract children to
schools in the mid-day meals program launched in 1##%.
Poverty and economic development:
&arge num"ers of 'ndia(s people li)e in a"*ect po)erty.
Government strategies to alleviate poverty:
+ome of the important programs that !ere "rought "y the
go)ernment to eradicate po)erty !ere as follo!s:
, -ural employment program . /ood for !ork program:
&aunched in 1#80(s, !hich attempt to use the unemployed people
to generate producti)e assets and "uild rural infrastructure.
, -ural employment guarantee "ill:
Passed in august 200% "y Parliament of 'ndia, !hich
promises 100 days of minimum !age employment to e)ery rural
household.
Life expectancy and economic development:
o !rite something on your o!n.
nfrastructure and economic development:
'ndia(s lo! spending on po!er, construction, transportation,
telecommunications, and real estate at 60 of 12P of 2002 had
pre)ented
'ndia from sustaining higher gro!th rates.
+ome of the ma*or infrastructure pro*ect planned "y the 'ndian
go)ernment for the future is as follo!s:
, 40,000 34 hydro po!er generation capacities during the 12th and
15th plan.
, 6onstructing freight corridors "et!een 3um"ai-2elhi and &udhiana-
7olkata.
, 3oderni8ation and rede)elopment of 21 rail!ay stations.
, 3oderni8ation and rede)elopment of 4 metro and 5% non-metro
airports.
, +i9 laning 6%00 km of golden :uadrilateral and selected national
high!ays.
, 6onstructing 16%,244 km of ne! rural roads.
3ummary
India gained highly from the B0" model as its "60 increased to *.'I in 8;;'18;;5.
In respect of market capitaliEation, India ranks fourth in the world. !ut even after
globaliEation, condition of agriculture has not improved. The share of agriculture in
the "60 is only &'I. The number of landless families has increased and farmers
are still committing suicide. !ut seeing the positive effects of globaliEation, it can be
said that very soon India will overcome these hurdles too and march strongly on its
path of development.