INDIA

Ø India seventh largest in area and has the

second largest population in the world.
Ø Spread in area of 3,287,240 square km.
Ø India shares its borders with China, Bangladesh,
Pakistan, Nepal, Sri Lanka and Myanmar.
Ø 2th largest in terms of the market exchange at
$1,242 billion.
Ø
 Inflation Rate in India
What is Inflation Rate?
The inflation rate is the percentage by which prices of

goods and services rise beyond their average levels. It is

the rate by which the purchasing power of the people in a
particular geography has declined in a specified period.
The rate of inflation may be calculated weekly, monthly or
annually. However, it is always expressed as an
annualized figure.

The inflation rate in India was last reported
at 9.47 percent in December of 2010. From
1969 until 2010, the average inflation rate in
India was 7.99 percent reaching an
historical high of 34.68 percent in
September of 1974 and a record low of
-11.31 percent in May of 1976.
Monetary policy of India
What is monetary policy?
Ø Monetary policy is the management of money supply
and interest rates by central banks to influence prices
and employment.
Ø
Ø Monetary policy works through expansion or contraction
of investment and consumption expenditure.
 

Ø
 Instruments of monetary policy in 
India

ØOpen market operation.

ØChange in cash reserve ratio
ØChanges in repo rate and reverse repo rate
ØChange in Bank rate
ØChange in Statutory Liquidity Ratio
 Fiscal Policy of India
What is fiscal policy?

Fiscal policy is the means by which a government

adjusts its levels of spending in order to monitor and
influence a nation's economy. It is the sister strategy
to monetary policy with which a central bank influences
a nation's money supply.
Objectives of Fiscal Policy
Development of Country 
Increasing Employment 
Removing Inequality 
Fixation of Govt. Responsibility :-

Techniques of Fiscal Policy 

Taxation Policy 
Govt. Expenditure Policy 
Deficit Financing Policy 
Public Debt Policy
 INDIA GDP GROWTH 
RATE
The Gross Domestic Product (GDP) in
India expanded 8.90 percent in the third
quarter of 2010 over the previous
quarter. From 2004 until 2010, India's
average quarterly GDP Growth was
8.40 percent reaching an historical high
of 10.10 percent in September of 2006
and a record low of 5.50 percent in
December of 2004.
 Industrial Policy
Objectives of the Industrial Policy of the Government are –
Ø To maintain a sustained growth in productivity;
ØTo enhance gainful employment;
ØTo achieve optimal utilization of human resources;
Ø To attain international competitiveness and
Ø To transform India into a major partner and player in the global
arena.
Ø
Policy focus is on –
Ø Deregulating Indian industry;
Ø Allowing the industry freedom and flexibility in responding to
market forces and
ØProviding a policy regime that facilitates and fosters growth of
Indian industry.