In 1948-49

In 1948-49
V National Income Ȃ Rs. 8650 crores
V Per Capita Income Ȃ Rs. 250 per annum
In 1947 In 1951

Secondary Ind stry

Primary 14%
Agric lt re 11%
59% 72%

Tertiary
Others
27% 17%

Composition of National
Income Occ pational str ct re
V Ãstablishment of a Mixed Ãconomy
V Ãxpanded Role for Public Sector
V Strict regulation of Private Sector
V Cautious policy towards Foreign Capital
V Trade Policy Restrictions
V State Trading
V Import Substitution
V Foreign Ãxchange Regulation
V Reforms in TAX Structure
Ô Maximum Income Tax down to 30% from 51%
Ô Rationalization of custom duties
Ô Reduction in subsidies
V iberalization
Ô 0eregulation of Industries
Ô Relaxation in upper limit of Foreign Capital & Technology
Ô Automatic permission for Technology Agreements
V Privatization
Ô Reduced role for the Public Sector
Ô 0isinvestment in Public Ãnterprises
V ½lobalization
Ô iberalization of Import icensing
Ô Rationalization of Tariff Structure
Ô Reforms in Foreign Ãxchange Management
V Financial Sector Reforms
Ô Reduction in SR from
to 
Ô Reduction in CRR from to 
Ô 0eregulation of rate of interest
V Aims
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Allocation of Public Sector Outlay
Social Service Sector
  Ãnergy Sector



Transport
 Irrigation & Flood Control
    Rural 0evelopment
thers
 ontribution of different sectors towards NATIONAL INOME
1950-51 007-08

Primary Primary

 Sector sector


Secondary   Secondary
Sector Sector
 Tertiary 

Tertiary
Sector sector
V Abolition of intermediaries i.e. end of
Zamindari System.
V Tenancy reforms which include:
u Fixation of rents at reasonable levels
u Security of tenure
u wnership rights to tenants
V Reorganisation of agriculture including:
u Ceiling on landholdings and redistribution of
surplus land, and
u Consolidation of holdings.
V Failure to generate adequate Ǯsurplusǯ for
0evelopment
V Failure to generate Sustainable Ãmployment
V Failure to serve Public Interest
V Reaching Commanding Heights of
Inefficiency
V Failure to 0evelop Strong Infrastructure
V ½ovt. to continue tax refund scheme for exporters until
0ecember 2010
V Twenty-six new markets have been added under Focus
Market Scheme (FMS). Incentive available under FMS
raised from 2.5 per cent to 3 percent.
V To aid technological up gradation of export sector, ÃPC½
Scheme at Zero 0uty has been introduced.
V Taking into account the decline in exports, the facility of
Re-fixation of Annual Average Ãxport bligation for a
particular financial year in which there is decline in exports
from the country, has been extended for the 5-year Policy
period 2009-14.
V Support for ½reen products and products from North Ãast
V The Union Budget 2008-09 was presented in the backdrop of impressive
growth in the Indian economy which clocked about 9 per cent of average
growth in the last four years
V Riding on the path of fiscal consolidation, the Union Budget 2008-09 was
presented with fiscal deficit estimated at 2.5 per cent of ½0P and
revenue deficit at 1 per cent of ½0P
V The global financial crisis in the second half of the financial year which
heralded recessionary trends the world over, also impacted the Indian
economy causing the focus of fiscal policy to be shifted to providing
growth stimulus
V The Country is facing difficult economic situation, the cause of which is
not emanating from within its boundaries. However, left unattended, the
impact of this crisis is going to affect us in medium to long term
V Reduced the reverse repurchase rate to 3.25% from 3.5%
V Reduced the repurchase rate, or its overnight lending rate, by a
quarter-point to 4.75%,
V RBI extended ÃCB relaxation for all-in-cost limit to 0ecember and
relaxed FCCB buyback policy for companies. Companies can buy
back out of internal accruals US0 100 million of redemption versus
US0 50 million
V RBI has tightened the capital adequacy and disclosure norms for
NBFCs concerned over their highly leveraged borrowings and
reliance on short-term funds.
V Non-deposit taking NBFCs with asset size of Rs.100 crore and
above will have to maintain capital to risk weighted assets ratio
(CRAR) of 12% compared to 10 % required currently which has
been increased to 15% from April 2009
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