Similarly within the non food consumer goods the

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Similarly, within the non-food consumer goods, the share of durables increased substantially. India’s per capita income, however, continues to be appallingly low. Fortunately in recent years, an environment for faster economic growth and higher per capita income is sought to be created through a new set of economic and Annamalai University
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21 industrial policies. There are indications that India is emerging as a growth economy. While throughout the seventies, India was among the slow growth countries in the developing world and her unspectacular average annual growth of 3 to 3.5 percent was dubbed the ‘Hindu rate of growth’, in the eighties, India’s economic growth has averaged five percent per annum. And this spurt from the historical rate of 3.5 percent has important implications for future standards of living. In fact, it is now accepted that a growth rate of 7.5 percent or more in GDP is achievable on a stable basis by the turn of the century, provided the technological aspect of the nation’s economy is appropriately stepped up. The growth of the corporate sector is an important indicator of the sophistication and growth of an econom y. During the last two decades, India’s corporate sector has grown phenomenally. By 1984, there were 96; 144 joint stock companies in India, government and non-government put together. Of these, 94,2764 companies which were limited by shares had a paid up capital of Rs.21,929 crore. In 1952, the number of joint stock companies was only 28,532 with a paid-up capital of just Rs.775 crore. The growth of the corporate sector is adequately reflected in the growth of the stock markets. The country’s stock -markets have grown enormously in the last two decades. The growth in the eighties has been particularly striking. The corporate sector which was till then depending more on external borrowings and depreciation provisions for its capital formation, cast away this dependence during the decade and started mobilizing larger funds for investment through the capital market. Agriculture is a prominent sector of the economy of India. In fact, it has been the backbone of the national economy all these years. Nearly three-fourths of the total population of the country depend directly or indirectly on agriculture for their livelihood and more than forty percent of the national income is contributed by agriculture. Industries in cotton, jute, sugar, rubber, etc., as well as the food processing industry, depend totally on agricultural commodities. A substantial portion of the country’s exports is also provided by the agricultural sector -mostly by agricultural commodities like tea, coffee, tobacco, jute, spices and marine products. In this backdrop, it is needless to say that the future growth of several consumer goods industries in the country will increasingly depend on rural prosperity, which, in effect, means agricultural prosperity. To the marketing man, this has as special significance. It means that agricultural growth would be a main indicator of the level of buoyancy of the nation’s markets.
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