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Comparison of growth & development of Industrial sector in 1 Socialist, 1 Capitalist & 1 Mixed economy.

ByPratik Shah Ramdas Tarkar Nitin Chaudhari Mohini Patwardhan Meena Salvi

Mixed Economy- India

India is the tenth largest in the world by nominal GDP and the third largest by purchasing power parity (PPP) India is one of the G-20 major economies and a member of BRICS. India is member of various other organization like WTO, SAFTA, G-20 and others Economic growth rates are projected at around 7% for the 2011-12 fiscal year India's industrial production for the month of Feb grew 4.1% Indias industrial development are divided into 2 eras Post-liberalization period (since 1991) Pre-liberalization period (19471991)

Pre-liberalization period (19471991)

Indian economic policy was tended towards protectionism, due to exploitation during pre independence period.

Main emphasis was on import substitution industrialization, economic interventionism, a large public sector, business regulation, and central planning
Trade and foreign investment policies were relatively liberal

Policy involve the rapid development of heavy industry by both public and private sectors, and based on direct and indirect state intervention, rather than the more extreme Soviet-style central command system
The rate of growth of the Indian industries in the first three decades after independence was very less Growth rate of the of India before 1991, stagnated around 3.5% from 1950s to 1980s, while per capita income growth averaged 1.3%.

Pre-liberalization period (19471991)

Compare India (orange) with South Korea (yellow). Both started from about the same income level in 1950. The graph shows GDP per capita of South Asian economies and South Korea as a percent of the American GDP per capita.

Post-liberalization period (since 1991)


In the late 1970s, the government eased restrictions on capacity expansion for incumbent companies, removed price controls, reduced corporate taxes and promoted the creation of small scale industries in large numbers Reduced tariffs and interest rates and ended many public monopolies, allowing automatic approval of foreign direct investment in many sectors At the instigation of the 20th century, India had progressed towards a free-market economy, with a substantial reduction in state control of the economy and increased financial liberalization The economy of India has been growing at rate of around 6-8% after liberalization

India GDP post liberalisation

Industries and Services in INDIA


Industry accounts for 28% of the GDP and employ 14% of the total workforce Textile manufacturing is the second largest source of employment after agriculture and accounts for 20% of manufacturing output, providing employment to over 20 million people India is 13th in services output During FY 2011 direct employment is expected to reach nearly 2.5 million, an addition of 240,000 employees, while indirect job creation is estimated at 8.3 million. The IT-BPO sector in India is estimated to aggregate revenues of US$ 88.1 billion in FY 2011, with the IT software and services sector (excluding hardware) accounting for US$ 76.1 billion of revenues. As a proportion of national GDP, the sector revenues have grown from 1.2 per cent in FY 1998 to an estimated 6.4 per cent in FY 2011.

Capitalist country France


Fifth largest economy by GDP France ranks 4th in Fortune Global 500 GDP growth has been stronger at 1.8%

GDP $ 2.808 trillion as of 2011


GDP by Sector Agriculture (2.1%), Industry (19%) & Services (78.9%) Paris is the second most important localisation for the worlds biggest companies.

Leading Companies towards growth

Worlds largest airline co.

Worlds biggest cosmetic co.


Worlds largest energy co. Worlds nuclear energy leader.

Worlds largest cement co.

Leading Industrial Sectors Telecommunications Aerospace & Defense Ship Building (naval & specialist ship) Pharmaceuticals Construction & Civil Engineering Chemicals Textiles Automobile Production

Nuclear Power in France Worlds leading country in Nuclear energy Nuclear power is the primary source of electric power in France Frances electricity price is among the lowest in Europe First nuclear power plant in France was opened in 1963

Tourism Industry

France is the world's top tourist destination with more than 81.9 million foreign tourists in 2007. 76 million overseas visitors in 2003, making France the 1st tourist destination in the world! 19 912 hotels, About 3900 museums which attract tens of millions of visitors every year, 12 million visitors come every year to the Louvre, Muse d'Orsay and Versailles alone! 5.6 million annual visitors to the Eiffel Tower (320 meters high, 7000 tons and 1652 steps from base to summit) 1500 private chteaux open to the public, 4400 cinemas, 38 879 historic monuments, 50 000 theatrical productions every year.

Weapon Industry

France is fourth largest weapon exporter in the world.

This highly sophisticated weapon industry has contributed a lot towards the growth of France economy
Currently the industry is valued at 35 billion which considerably increased under the govt. of Prime Minister Jean-Pierre Raffarin. Great quantities of weaponry are exported to United Arab Emirates, Brazil, Greece, India, Pakistan, Taiwan, Singapore and many others.

Socialist Economy - China


The People's Republic of China (PRC) is the world's second largest economy after the United States. It is the world's fastest-growing major economy, with growth rates averaging 10% over the past 30 years. China is also the largest exporter and second largest importer of goods in the world. The country's per capita GDP (PPP) was $8,394 (International Monetary Fund, 90th in the world) in 2011 China, economically frail before 1978, has again become one of the world's major economic powers with the greatest potential In the 22 years following reform and opening-up in 1979 in particular, China's economy developed at an unprecedented rate, and that momentum has been held steady into the 21st century.

China
GDP by Sector- Industry (46.8%),Services (43.6%),Agriculture(9.6%) (2010 est.) Inflation- (CPI)- 4.9% (January 2011) Labour Force- 819.5 million (2009) Unemployment- 4.2% (July 2010) Main Industries- Coal, Mining & Ore processing, Iron, Steel & other metals, Machinery, Chemical, Textiles & Apparels, Petroleum, Telecommunication Equipment, Satellites etc.

Industries - China
Industry and construction account for about 48% of China's GDP China ranks second worldwide in industrial output Major industries include Coal, Mining & Ore processing, Iron, Steel & other metals, Machinery, Chemical, Textiles & Apparels, Petroleum, Telecommunication Equipment, Satellites , consumer products including footwear, toys, and electronics; telecommunications and information technology. China has become a preferred destination for the relocation of global manufacturing facilities Overall industrial output has grown at an average rate of more than 10 percent per year, having surpassed all other sectors in economic growth and degree of modernization

Machinery Manufacturing
Machinery and transportation equipment have been the mainstay products of Chinese exports, as China's leading export sector for successive 11 years from 1996 to 2006 In 2006, the export value of machinery and transportation equipments reached 425 billion US dollars, 28.3 percent more than 2005. In 2010, Chinas machinery manufacturing output reached 14.38 trillion, nearly $2.2 trillion more than US which was $1.9 trillion.

Energy Industry
To relieve the shortage of energy supplies that fetters China's economic growth, China is developing new energy resources, such as wind, solar, geothermal, and tidal power. Its abundant wind energy resources give China the potential for mass-produced wind power. At the end of 2009, the installed capacity of generators totaled 874 million kW, and the total generated electricity came to 3.2 trillion kwh, ranking second in the world. According to a report by the Economic Information Daily, China aims to install 290GW of new energy power by 2020, with a planned investment of 5 trillion yuan.

Automobile Industry
A new Honda factory in Guangzhou was being built in 2004 solely for the export market and was expected to ship 30,000 passenger vehicles to Europe in 2005
By 2004 China had become the worlds fourth largest automotive vehicle manufacturer.

Sales automobiles and vans reached 13 million in 2010.

Steel Industry
Before the first five-year plan (195357), China had only one major steel center Anshan, in the northeastand several minor ones. All these produced 1.93 million tons of pig iron and 1.35 million tons of steel in 1952. By 1995, China was producing 92,970 million tons of crude steel and 101,700 million tons of pig iron. Steel production, an estimated 140 million tons in 2000, rose to more than 420 million tons by 2007

China had one trillion tons of confirmed coal reserves and an estimated five trillion tons of coal reserves and 48.7 billion tons of iron ore in 2000.
In December 2011, crude steel production came to 683 million tons, an increase of 8.89%, steel accumulative total output to 881 million tons, an

increase of 12.3%

Current Industrial growth in China.

The industrial growth of China which boomed till the year 2005 shows a decline in growth later in years due to growth in industrial sectors of other Asian countries .

GDP Comparisons-

Comparisons of Export & Import , Labour Force-

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