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Problems and Issues Facing India

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Title: Problems and Issues Facing India


1
Problems and Issues Facing India
2
Major problems Issues in India today
  • Overpopulation ? 1 billion climbing.
  • Economic development.
  • Hindu-Muslim tensions.
  • Gender issues ? dowry killings.
  • Caste bias ? discrimination against untouchables
    continues.
  • The Kashmir dispute and nuclear weapons.
  • Political assassinations.

3
India and the Subcontinent
  • Conflict over Kashmir India Pakistan
  • Irrigation
  • Pride
  • Nuclear Weapons India Pakistan
  • Flood control India Bangladesh
  • Humanitarian Aid India Bangladesh

4
Economic Strength
  • Why is India becoming an economic superpower?

5
Even though the world has just discovered it, the
India growth story is not new. It has been going
on for 25 years old

6
1) Rising GDP growth
India Story


  • average annual GDP growth
  • 1900 1950 1.0
  • 1950 1980 3.5
  • 1980 2002 6.0
  • 2002 2006 8.0
  • Sources 1900-1990 Angus Maddison (1995),
    Monitoring the World Economy, 1990-2000Census of
    India (2001), 2000-2005 Finance Ministry

7
2) Population growth is slowing
India Story


  • average annual
    growth
  • 1901 1950 1.0
  • 1951 1980 2.2
  • 1981 1990 2.1
  • 1991 2000 1.8
  • 2001 2010 1.5
  • Sources 1900-1990 Angus Maddison (1995),
    Monitoring the World Economy, 1990-2000Census of
    India (2001)

8
The Population Factor
  • The worlds 2nd largest country with
    1,121,800,000
  • Only 1/3 the size of the U.S.
  • 1.7 natural increase
  • 2025 approaching 1.4 billion

9
Worlds largest!
  • Will surpass China by 2032
  • 70 million have moved to the cities between
    1991-2001
  • Growing massive cities such as Mumbai, New
    Delhi, Kolkata, Chennai

10
Indias demographic advantage means that its high
growth will continue longer term while China will
slow
11
India has law, China has order -India got
democracy before capitalism and this has made all
the difference -It will be slower than China but
its path will be surer -India more likely to
preserve its way of life
12
By 2010 India will have worlds largest
number of English speakers When 300 million
Indians speak a word in a certain way,
that will be the way to speak it. -Prof. David
Crystal, Cambridge Encyclopedia of the English
Language
13
3. Literacy is rising
India Story
  • 1950 17
  • 1990 52
  • 2000 65
  • 2010 (proj) 80
  • Source Census of India (2001)

14
4. Middle class is exploding
India Story

  • Million

  • People
  • 1980 8 65
  • 2000 22 220
  • 2010 (proj) 32 368
  • Source The Consuming Class, National Council of
    Applied Economic Research, 2002

15
INDIA WILL GRADUALLY TURN MIDDLE CLASS
  • 1980 8
  • 2000 22
  • 2010 32
  • 2020 50 West of the


    Kanpur-Chennai line
  • 2040 50 East of the

    Kanpur-Chennai
    line

16
Growing Middle Class
  • Over 200 million people falling into a growing
    middle class of consumers.
  • Technically defined as those earning between
    4000-21,000 a year.
  • This actually only accounts for 60 M.
  • Middle class-ness seems to include those going
    from living on 5 a day to 10.

17
5. Poverty is declining
India Story
  • 1980
    46
  • 2000 26
  • 2010 (proj) 16
  • 1 of the people have been crossing poverty line
    each year for 20 years. Equals 200 million.

18
6. Productivity is rising
India Story
  • 30 to 40 of GDP growth is due to rising
    productivity

19
7. Per capita income gains
India Story
  • (US ppp)
  • 1980 1178
  • 2000 3051
  • Source World Bank

20
This means a per capita income roughly of (on a
ppp basis)
  • ()
  • 2000 2100
  • 2005 3050
  • 2020 5800
  • 2040 16,800
  • 2066 37,000

21
8. India is now the 4th largest economy
India Story
  • And it will cross Japan between 2012 and
    2014 to become the 3rd largest

22
Government and the Economy
  • India is the worlds largest democracy.
  • India is one of the strongest nations in Asia.
  • One of Indias largest industries is its
    moviemaking industrycalled Bollywood.
  • Although India is one of the worlds top five
    industrial countries, millions of Indians live in
    poverty.

23
Globalization and India
  • Thomas Freidman has asserted that globalization
    has made the world flat as evidenced by the
    growing service sector within India.
  • This also implies that India is flat.
  • Reality on the ground may differ.

24
DRIVERS OF GROWTH
  • India East and S.E. Asia
  • Domestic Exports
  • Services Manufacturing
  • Consumption Investment
  • High tech, capital Low tech,
    labour
  • intensive industry intensive
    industry

25
Indias mixed economy
  • The mix refers to private and public
    ownership. Socialism
  • Foreign aid and foreign investment are crucial
    (also something Gandhi disagreed with).
  • Urban areas have high-tech companies.
  • Three quarters of the population are farmers
    living in small villages.

26
Reasons for Success Indias
success is market led whereas Chinas is state
induced. The entrepreneur is at centre of the
Indian model
27
Licence Raj
  • Licence Raj, also the Permit Raj refers to the
    elaborate licenses, regulations and the
    accompanying red tape that were required to set
    up and run businesses in India between 1947 and
    1990.
  • The Licence Raj was a result of India's decision
    to have a planned economy where all aspects of
    the economy are controlled by the state and
    licences are given to a select few.
  • Up to 80 government agencies had to be satisfied
    before private companies could produce something
    and, if granted, the government would regulate
    production.
  • The social democratic plan is too optimistic for
    Inidan immature environment.

28
  • Rise of globally competitive
  • Indian companies
  • Reliance, Jet Airways, Infosys, Wipro,
  • Ranbaxy, Bharat Forge, Tata Motors,
  • TCS, Bharati, ICICI and HDFC Banks

29
India has a vibrant private space
  • gt 100 Indian Companies have market
  • cap of US 1 billion
  • gt 1000 Indian Companies have
  • received foreign institutional
  • investment
  • gt 125 Fortune 500 companies have
  • RD bases in India
  • gt 390 Fortune 500 companies have
  • outsourced software development to India.
  • lt 2 bad loans in Indian banks (vs 20 in
    China)
  • gt 80 credit goes to private sector (vs10
    in
  • China)

30
Public space is a problem
  • Dynamic democracy
  • Free, lively media and press
  • - Poor governance
  • - High subsidies High fiscal deficit
  • - Creaky infrastructure
  • - Inefficient government companies

31
(No Transcript)
32
What explains Indias economic success?
  • Even slow reforms add up-state
  • getting out of the way
  • Young minds are liberated
  • 3) India has found its competitive
  • advantage in the knowledge economy

33
Key Reforms
  • Opened economy to trade and investment
  • Dismantled controls
  • Lowered tariffs
  • Dropped tax rates
  • Broke public sector monopolies

34
Agriculture
35
By the Numbers
  • Per Capita GDP - 3600
  • 60 agricultural/ but only 20 of GDP.
  • 100 million farmers own NO land.
  • Approximately 80 of all Indians live on the
    equivalent of less than
  • 2 a day.

36
Agriculture
2
  • Farming methods have improved, but few families
    own enough land to support themselves.
  • Many farmers have set up cottage industries to
    add to their income.
  • India is a leading industrial nation, and
    advances have been made there in technology and
    consumer industries.
  • The growing middle class forms the market for
    consumer goods.

37
INDIA ECONOMIC GEOGRAPHY
  • Primary Sector
  • Indian agriculture is inefficient and labor
    intensive.
  • Animals are frequently used for power.
  • The village is the focus of life for 74 percent
    of the Indian population with an estimated
    580,000 villages.
  • Approximately 2/3 of India's huge working
    population (63 percent) depends directly on the
    land for its livelihood.
  • Substantial progress toward modernization has
    been made in the Punjab's wheat zone.
  • In the early 1980s more than 1/4 of India's
    cultivated area was still owned by only 4 percent
    of the country's farming families.
  • Half of all rural families either owned as little
    as a half hectare (1.25 acres) or less, or no
    land at all.
  • Land consolidation efforts have had only limited
    success, except in the states of Punjab, Haryana,
    and Uttar Pradesh.

38
INDIA ECONOMIC GEOGRAPHY
  • Major crop zones
  • Wheat. Dry northwest notably in the Punjab and
    neighboring areas of the Upper Ganges. Many
    gains from the Green Revolution through the
    introduction of high-yielding varieties developed
    in Mexico.
  • Rice. Moist east and a summer monsoon drenched
    south. More than 1/4 of all of India's farmland
    lies under rice cultivation, most of it in the
    states of Assam, West Bengal, Bihar, Orissa, and
    eastern Uttar Pradesh. This area has more than
    100 cm (40 inches) of rainfall. India has the
    largest acreage of rice among the world's
    countries. Yields per hectare are still low at
    below 1,000 kg (900 lbs./acre), however.
  • Coconut. Malabar Coast. (Kerala)
  • Millet. Southwestern India. A cereal grass,
    Setaria italica, extensively cultivated in the
    East and in southern Europe for its small seed or
    grain, used as food for man and fowls, but in the
    U.S. grown chiefly for fodder.
  • Groundnut. Kathiawar Peninsula.
  • Cotton. West-Central India (Deccan Plateau).
  • Chick Peas. Northwest.
  • Plantation. Northeast.

39
INDIA ECONOMIC GEOGRAPHY
  • Livestock
  • India has more livestock than any other country
    in the world.
  • Cows - 200,000,000
  • water buffalo - 60,000,000
  • Goats and sheep - 60,000,000
  • Horses, donkeys, and elephants - 5,000,000
  • Sheep are of major importance in the drier west
    where the Islamic population is clustered.
  • Water buffalo is dominant in the Ganges Delta and
    coastal regions.
  • Cattle (particularly the Brahman or Zebu breeds)
    are found throughout India.

40
INDIA ECONOMIC GEOGRAPHY
  • Cattle are an integral element of the Indian
    agricultural economy.
  • They are the primary source of draft power
    (plowing, pulling carts, grinding grain, and a
    host of other tasks).
  • Cattle graze on forage which would otherwise be
    wasted during a dry season.
  • Cattle consume secondary agriculture byproducts
    (straw, rice husks, and corn stalks).
  • Cattle produce an estimated 771,000,000 metric
    tons (850,000,000 tons) of cow dung, the
    principle source of domestic fuel a year.
  • Dung is also mixed with mud and used for plaster
    also a major source of fertilizer.
  • Cattle also produce most of India's milk (the
    bulk of which comes from the water buffalo).
  • When a cow dies, it is consumed by the
    untouchables (who have no prohibitions about
    consuming beef when it is available) of the large
    Hindu population.
  • Cow hides are a major source of leather.
  • The maintenance of the large numbers of cows and
    buffalo is a completely rational activity in the
    Indian agricultural economy.

41
Indias Green Revolution
  • Introducing higher- yielding varieties of seeds
    in 1965.
  • Increased use of fertilizers irrigation.
  • GOAL ? make India self-sufficient in food grains.
  • India's "Green Revolution" allowed RICH farmers
    to triple their crop by using modern science and
    technology.

42
INDIA ECONOMIC GEOGRAPHY
  • Green Revolution describes the development of
    extremely high-yielding grain crops that allow
    major increases in food production, particularly
    in subtropical areas.
  • In 1953, scientists developed rust-resistant
    dwarf wheats which doubled Mexico's per acre
    production in the next decade.
  • After a major drought in India in 1965, Mexican
    dwarf wheat was widely planted in the Punjab
    region, producing dramatic increases in wheat
    yields.
  • The improved rice (IR)- IR-8 was spotted in 1965
    at the Los BaZos research institute in the
    Philippines, which was set up using aid from the
    Ford and Rockefeller Foundations.
  • Its first harvest, from 60 trial tons of seeds,
    produced a six-fold increase of rice under field
    conditions.
  • About 10 of India's paddy land is now planted
    with IR-8 varieties.

43
INDIA ECONOMIC GEOGRAPHY
  • Green Revolution benefits
  • Two to four times the yield of indigenous grains.
  • A shortened growing season allows two crops per
    year.
  • Miracle grains" have a wider tolerance for
    climatic variations.
  • Green Revolution problems
  • Need for high application of fertilizer and
    insecticide, and in the case of rice, there is a
    need for copious irrigation.
  • "Miracle grains" have been adopted in the most
    prosperous areas and among the most prosperous
    farmers. As a result, interregional and social
    gaps have widened.
  • Traditional marketing patterns have been upset.
    Thailand and Myanmar (Burma) have found their
    traditional markets disappearing, and Japan now
    looks for exports.

44
Industries
45
INDIA ECONOMIC GEOGRAPHY
  • Secondary sector
  • At the time of independence (1947), Indian
    industries emphasized textiles and food
    processing.
  • Gandhi championed development of the cottage
    industries that existed prior to the intervention
    of Britain.
  • A cottage industry involves small scale
    production using high labor inputs.
  • Cottage industries are very important because
    they are labor intensive.
  • They employ 40 individuals for every one employed
    in a large automated factory producing the same
    products.
  • A total of 750 products is produced by small
    industries which use lt100,000 in capital.
    (Receivers, tools, plumbing fittings, etc.).
  • Manufacturing employs only 13 of the labor
    force.

46
INDIA ECONOMIC GEOGRAPHY
  • Manufacturing Regions
  • Kolkata (Calcutta) and Jamshedpur form an
    emerging industrial region in northeastern India.
  • Calcutta forms the center of the Bihar-Bengal
    area where jute manufacturing dominates, but
    engineering, chemical and cotton industries also
    exist. Jute a strong, coarse fiber used for
    making burlap, gunny, and cordage it is obtained
    from two East Indian plants-Corchorus capsularis
    and Corchorus olitorius of the linden family.
  • The Jamshedpur region 240 km (150 mi) west of
    Calcutta has the Tata Steel Works, Indias single
    largest steel making complex (Indian Ruhr).
  • In the nearby Chota-Nagpur district, coal mining
    and iron and steel manufactures have developed,
    and Bhilai is a growing nucleus of heavy industry.

47
INDIA ECONOMIC GEOGRAPHY
  • Manufacturing Regions
  • 2. Western Zone-Mumbai (Bombay)-Ahmadabad
    This Maharashtra, Gujarat area specializes in
    cotton and chemicals with some engineering and
    food processing, automobiles, and petrochemicals.
  • 3. Southeastern Zone- Chennai (Madras)
    specializing in textiles.
  • 4. Bangalore supports diversified electrical
    manufacturing, machine tools, the construction
    industry, and food processing.

48
Technology
49
Indias Economy Today
  • 60 of people work in agriculture
  • 28 of people work in new service industries
  • New Technology has helped expand the economy
  • Important Industries
  • Textiles, chemicals, steel, software, mining

50
India Technology Superpower
  • Geneva-based STMicroelectronics is one of the
    largest semiconductor companies to develop
    integrated circuits and software in India.
  • Texas Instruments was the first to open
    operations in Bangalore, followed by Motorola,
    Intel, Cadence Design Systems and several others.
  • 80 of the Worlds 117 SEI CMM Level-5 companies
    are based in India.
  • 5 Indian companies recently received the globally
    acclaimed Deming prize. This prize is given to
    an organization for rigorous total quality
    management (TQM) practices.
  • 15 of the world's major Automobile makers are
    obtaining components from Indian companies.
  • This business fetched India 1.5 Billion in 2003,
    and will reach 15 Billion by 2007.
  • New emerging industries areas include,
    Bio-Informatics, Bio-Technology, Genomics,
    Clinical Research and Trials.
  • World-renowned TQM expert Yasutoshi Washio
    predicts that Indian manufacturing quality will
    overtake that of Japan in 2013.
  • McKinsey believes India's revenues from the IT
    industry will
    reach 87 Billion by 2008.
  • Flextronics, the 14 billion
    global major in Electronic Manufacturing
    Services, has announced that it will make India a
    global competence centre for telecom software
    development.

51
India Technology Superpower
  • Over 100 MNCs have set up RD facilities in India
    in the past five years. These include GE, Bell
    Labs, Du Pont, Daimler Chrysler, Eli Lilly,
    Intel, Monsanto, Texas Instruments, Caterpillar,
    Cummins, GM, Microsoft and IBM.
  • Indias telecom infrastructure between Chennai,
    Mumbai and Singapore, provides the largest
    bandwidth capacity in the world, with well over
    8.5 Terabits (8.5Tbs) per second.
  • With more than 250 universities, 1,500 research
    institutions and 10,428 higher-education
    institutes, India produces 200,000 engineering
    graduates and another 300,000 technically trained
    graduates every year. (note per capita numbers
    are lower in comparison with first world, Russia
    and Israel, indicating India should increase the
    number of educational institutions and
    educational opportunities to its 1.3 billion
    population)
  • Besides, another 2 million graduate in other
    areas in India annually.
  • The Indian Institute of Technology (IIT) is among
    the top three universities from which McKinsey
    Company, the world's biggest consulting firm,
    hires most.

52
Information Technologys Impact
  • India produces about 100,000 new engineers a
    year. About 3 times the number of the U.S.
  • But still only 1.6 million people are employed in
    IT and Service Center jobs.
  • Key centers include Bangalore, New Delhi,
    Gurgaon, and Hyderabad.

53
U.S. companies in India IT Services-design,
support, and or production
  • Adobe, Cisco Systems, Dell, Google,
    Hewlett-Packard, General Motors, IBM, Intel,
    Microsoft, Motorola, Texas Instruments, Yahoo

54
(No Transcript)
55
India Trade
  • Tata Motors paid 118 million to buy Daewoo
    commercial vehicle Company of Korea.
  • Ranbaxy, the largest Indian pharmaceutical
    company, gets 70 of its 1 billion revenue from
    overseas operations and 40 from USA.
  • Tata Tea has bought Tetley of UK for 260M.
  • India is one of the world's largest diamond
    cutting and polishing centres, its exports were
    worth 6 Billion in 1999.
  • About 9 out of 10 diamond stones sold anywhere in
    the world, pass through India.
  • Garment exports are expected to increase from the
    current level of 6 billion to 25 billion by
    2010.
  • The country's foreign exchange reserves stand at
    an all-time high of 120 Billion.
  • India's trade with China grew by by 104 in 2002
    and in the first 5 months of 2003, India has
    amassed a surplus in trade close to 0.5M.
  • Mobile phones are growing by about 1.5Million a
    month. Long distance rates are down by two-thirds
    in five years and by 80 for data transmission.
  • Wal-Mart sources 1 Billion worth of goods from
    India - half its apparel. Wal-Mart expects this
    to increase to 10 Billion in the next couple of
    years.
  • GAP sources about 600 million and Hilfiger 100
    million worth of apparel from India.

56
India Self-Reliance
  • India is among six countries that launch
    satellites and do so even for Germany, Belgium,
    South Korea, Singapore and EU countries.
  • India's INSAT is among the world's largest

    domestic satellite communication systems.
  • Indias Geosynchronous Satellite Launch Vehicle
    (GSLV) was indigenously manufactured with most of
    the components like motor cases, inter-stages,
    heat shield, cryogenic engine, electronic modules
    all manufactured by public and private Indian
    industry.
  • Kalpana Chawla was one of the seven astronauts in
    the Columbia space shuttle
    when it disintegrated over Texas skies just 16
    minutesbefore its scheduled landing on Feb 1st
    2003, she was the second Indian in space.
  • Back in 1968, India imported 9M tonnes of
    food-grains to support its people, through a
    grand programme of national self-sufficiency
    which started in 1971, today, it now has a food
    grain surplus stock of 60M.
  • India is among the 3 countries in the World that
    have built Supercomputers on their own. The
    other two countries being USA and Japan.
  • India built its own Supercomputer after the USA
    denied India purchasing a Cray computer back in
    1987.
  • Indias new PARAM Padma Terascale Supercomputer
    (1 Trillion processes per sec.) is also amongst
    only 4 nations in the world to have this
    capability.
  • India is providing aid to 11 countries,
    writing-off their debt and loaning the IMF
    300M.
  • It has also prepaid 3Billion owed to the World
    Bank and Asian Development Bank.

57
India Pharmaceuticals
  • The Indian pharmaceutical industry at 6.5
    billion and growing at 8-10 annually, is the 4th
    largest pharmaceutical industry in the world, and
    is expected to be worth 12 billion by 2008.
  • Its exports are over 2 billion. India is among
    the top five bulk drug makers and at home, the
    local industry has edged out the Multi-National
    companies whose share of 75 in the market is
    down to 35.
  • Trade of medicinal plants has crossed 900M
    already.
  • There are 170 biotechnology companies in India,
    involved in the development and manufacture of
    genomic drugs, whose business is growing
    exponentially.
  • Sequencing genes and delivering genomic
    information for big Pharmaceutical companies is
    the next boom industry in India.

58
India Foreign Multi-National Companies
  • Top 5 American employers in India
  • General Electric 17,800 employees Hewlett-Pac
    kard 11,000 employees IBM 6,000
    employees American Express 4,000
    employees Dell 3,800 employees
  • General Electric (GE) with 80 Million invested
    in India employs 16,000 staff, 1,600 RD staff
    who are qualified with PhDs and Masters
    degrees.
  • The number of patents filed in USA by the Indian
    entities of some of the MNCs (upto September,
    2002) are as follows Texas Instruments - 225,
    Intel - 125, Cisco Systems - 120, IBM - 120,
    Phillips - 102, GE - 95.
  • Staff at the offices of Intel (India) has gone
    up from 10 to 1,000 in 4 years,
    and will reach 2000 staff
    by 2006.
  • GE's RD centre in Bangalore is the company's
    largest research outfit outside the United
    States. The centre also devotes 20 of its
    resources on 5 to 10 year fundamental research in
    areas such as nanotechnology, hydrogen energy,
    photonics, and advanced propulsion.
  • It is estimated that there are 150,000 IT
    professionals in Bangalore as against 120,000 in
    Silicon Valley.

59
  • Top 5 American employers in India
  • General Electric 17,800 employees Hewlett-Pack
    ard 11,000 employees IBM 6,000
    employees American Express 4,000
    employees Dell 3,800 employees
  • General Electric (GE) with 80 Million invested
    in India employs 16,000 staff, 1,600 RD staff
    who are qualified with PhDs and Masters
    degrees.
  • The number of patents filed in USA by the Indian
    entities of some of the MNCs (upto September,
    2002) are as follows Texas Instruments - 225,
    Intel - 125, Cisco Systems - 120, IBM - 120,
    Phillips - 102, GE - 95.
  • Staff at the offices of Intel (India) has gone
    up from 10 to 1,000 in 4 years,
    and will reach 2000 staff
    by 2006.
  • GE's RD centre in Bangalore is the company's
    largest research outfit outside the United
    States. The centre also devotes 20 of its
    resources on 5 to 10 year fundamental research in
    areas such as nanotechnology, hydrogen energy,
    photonics, and advanced propulsion.
  • It is estimated that there are 150,000 IT
    professionals in Bangalore as against 120,000 in
    Silicon Valley.

60
William H. Gates, Chairman and Chief Software
Architect Microsoft Corporation (b-1955) Gates
emphasized that India had emerged as a major
global IT hub not because of the availability of
low-cost skills, as many believe. Rather, it had
more to do with the ''quality'' and ''world-class
skills'' to be found in India, he said. ''The key
is the quality of the human talent here. When
people do software projects in India, they do so
because this is the place they can find people
with the latest skills. It is not on the (cheap)
price (of labor),'' he was quoted as saying by
The Times of India newspaper. Gates had high
praise for the ''quality of educational
institutions which could make India into an IT
superpower.' September 19, 2000. http//www.atim
es.com/ind-pak/BI19Df01.html .
61
Goldman Sachs Report of 1 October, 2003
"Dreaming with BRICs The path to 2050" India's
GDP will reach 1 trillion by 2011, 2
trillion by 2020, 3 trillion by 2025, 6
trillion by 2032, 10 trillion by 2038, and
27 trillion by 2050, becoming the 3rd largest
economy after USA and China. In terms of GDP
estimates, the continental India (1.3 billion,
with 0.5 trillion in 2000) will overtake Italy
(60 million, 1.2 trillion in 2000) by the year
2016, France (60 million, 1.4 trillion in 2000)
by 2019, UK (60 million, 1.5 trillion) by 2022,
Germany (85 million, 2.0 trillion in 2000) by
2023, and Japan (130 million, 3.9 trillion in
2000) by 2032.
62
Indians abroad
A snapshot of Indians at the helm of leading
Global businesses The Co-founder of Sun
Microsystems (Vinod Khosla), Creator of Pentium
Chip (Vinod Dahm), Founder and creator of
Hotmail (Sabeer Bhatia), Chief Executive of
McKinsey Co. (Rajat Gupta) President and CFO of
Pepsi Cola (Indra Nooyi) President of United
Airlines (Rono Dutta) GM of Hewlett Packard
(Rajiv Gupta) President and CEO of US Airways
(Rakesh Gangwal) Chief Executive of CitiBank
(Victor Menezes), Chief Executives of Standard
Chartered Bank (Rana Talwar) Chief Executive
officer of Vodafone (Arun Sarin) President of AT
T-Bell Labs (Arun Netravali) Vice-Chairman
and founder of Juniper Networks (Pradeep Sindhu)
Founder of Bose Audio (Amar Bose) Founder, chip
designer Cirrus Logic (Suhas Patil ) Chairman
and CEO of Computer Associates (Sanjay
Kumar) Head of (HPC WorldWide) of Unilever Plc.
(Keki Dadiseth) Chief Executive Officer of HSBC
(Aman Mehta) Director and member of Executive
Board of Goldman Sachs (Girish Reddy) Chief
Economist of the International Monetary Fund
(Raghuram Rajan) Former CTO of Novell Networks
(Kanwal Rekhi)
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Brain Drain
  • Young talent leaving India seems to be slowing
    down.
  • Average starting salary for an IT engineer in
    India today is approximately 10-12,000.
  • Many are graduates of the Indian Institute of
    Technology
  • Several campuses located throughout the country
  • This salary provides a comfortable lifestyle in
    modern India for the privileged few.

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Indians in the USA.
  • Statistics that show
  • 38 of doctors in the USA,
  • 12 of scientists in the USA,
  • 36 of NASA scientists,
  • 34 of Microsoft employees,
  • 28 of IBM employees,
  • 17 of INTEL scientists,
  • 13 of XEROX employees,
  • are Indians.

US H1-B Visa applicants country of origin
 1.  India 44  2.  China 9  3.  Britain 5  4.  Philippines 3  5.  Canada 3  6.  Taiwan 2  7.  Japan 2  8.  Germany 2  9.  Pakistan 2  10. France 2
  • Of the 1.5M Indians living in the USA, 1/5th of
    them live in the Silicon Valley.
  • 35 of Silicon Valley start-ups are by Indians.
  • Indian students are the largest in number among
    foreign students in USA.

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IIT Harvard MIT Princeton
IIT Harvard MIT Princeton , says CBS 60
Minutes. CBS' highly-regarded 60 Minutes,
the most widely watched news programme in the US,
told its audience of more than 10 Million viewers
that IIT may be the most important university
you've never heard of." "The United States
imports oil from Saudi Arabia, cars from Japan,
TVs from Korea and Whiskey from Scotland. So what
do we import from India? We import people, really
smart people," co-host Leslie Stahl began while
introducing the segment on IIT. the smartest,
the most successful, most influential Indians
who've migrated to the US seem to share a common
credential They are graduates of the IIT.


in science and technology, IIT undergraduates
leave their American counterparts in the
dust. Think about that for a minute A kid
from India using an Ivy League university as a
safety school. That's how smart these guys
are. There are cases where students who
couldn't get into computer science at IIT, they
have gotten scholarships at MIT, at Princeton, at
Caltech.
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Religious Conflict Between Hindus and Muslims in
India
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HINDU-MUSLIM TENSIONS
  • Ayodhya riots
  • Mumbai riots
  • 1992-93. Thousands dead.

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1992 Hindu mob destroyed the mosque in Ayodhya.
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Riots followed killing over 2000 people.
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Hindu fundamentalists want to build a Hindu
temple in place of the mosque.
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Hindu fundamentalism opposes Indian National
Congresss secularism.
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1996 Fundamentalist Bharatiya Janata Party
(BJP) won the election.
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But they did not have a majority and had to form
a coalition government.
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The coalition only lasted a month, and the United
Front took over.
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The United Front was a coalition of small leftist
parties including the Communists.
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1997 BJP came back to power. Atal Bihari
Vajpayee became Prime Minister.
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HINDU NATIONALISM
  • BJP Party wins national elections in 1998.
  • Favors confrontation with Pakistan
  • Develop nuclear weapons program, acccomplish
    little else.

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Tamil Nationalism and Militarism
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Greater Tamil Nadu
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Tamil separatists want their own nation
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Demographics Of Sri Lanka
  • 3 Major Groups
  • (in descending order)
  • Sinhalese (Buddhists, speaks Sinhala)
  • Tamils ( Hindus, speaks Tamil)
  • - Sri Lankan Tamils (indigenous Tamils)
  • - India Tamils (tea/rubber plantation workers
    from India)
  • Moors (Muslims)

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Conflicts In Sri Lanka
  • Conflicts in the areas of
  • Citizenship Rights
  • Jobs in the Govt (Sinhala Only policy)
  • University Admission Criteria
  • Resettlement of Population

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Impact of Conflict In Sri Lanka
  • Political Consequence
  • A. Armed conflict
  • Tamils felt they were 2nd class citizens
  • tried to make peaceful demands
  • early 1950s Federal Party asked Tamil areas to
    be
  • recognised as a federation
  • did not ask for separate state
  • did not use violence
  • so why was there violence used against them?

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Impact of Conflict In Sri Lanka
  • till 1976, demands were not met
  • a new political party emerged
  • - Tamil United Liberation Front
  • - asked for a separate INDEPENDENT state
  • to be called Tamil Eelam
  • why asked for a separate state?
  • believed only separation would ensure the rights
    of the
  • Tamils

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Impact of Conflict In Sri Lanka
  • proposal rejected by the Sinhalese govt
  • result anger dissatisfaction!!!
  • Tamil youths formed a militant group
  • Liberation Tigers of Tamil Eelam (LTTE)
  • or popularly known as the Tamil Tigers,
    terrorist group
  • - attacked Tamil members of the police force
  • - attacked members supporters of the ruling
    party - attacked Tamil politicians who did not
    support the proposed separate state
  • - attacked Sinhalese

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Tamil Separatism The Tamil Tigers
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They are called the Tamil Nadu Liberation Front.
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Tamil Nadu is the name of a state in India
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The area demanded by the Tamil nationalists
includes most of southern India and northern Sri
Lanka
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Tamil Nationalism Sri Lanka has a majority of
Sinhalese and a minority of Tamils.
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Following independence the Tamils demanded their
own nation called Eelam
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Impact of Conflict In Sri Lanka
  • unfortunately, violence also came form the
    Sinhalese
  • - eg 19561st anti-Tamil riot (as a response
    to a
  • peaceful Tamil protest against the Sinhala
    Only policy)
  • hundreds of Tamils lost their lives, millions
    worth of
  • property
  • many incidents between 1981-1983
  • encouraged by Sinhalese security forces (army)
  • consequence
  • - thousands of Tamils fled to Tamil Nadu
  • - Indian govt was forced to intervene

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Impact of Conflict In Sri Lanka
  • B. Foreign Intervention
  • conflict attracted big neighbour India
  • Foreign Minister sent to Sri Lanka to mediate
    failed
  • 3 June 1987 Indian tried to help the Sri Lankan
    Tamils
  • - 20 Indian ships of food and petroleum
    products for the
  • Tamils
  • - turned back by the Sri Lankan navy
  • - 4 June 1987 Indian Air Force dropped the
    food and
  • medical supplies instead and violated the
    Sri Lankan
  • airspace

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Impact of Conflict In Sri Lanka
  • B. Foreign Intervention
  • July 1987 Sri Lankan signed a peace accord with
    India
  • - a ceasefire between the Tigers and the Sri
    Lankan
  • forces
  • - Tigers to surrender their arms to Indian
    peacekeeping
  • troops
  • - merging of the Tamil dominated Nn and the
    En
  • provinces
  • Oct 1987 Tigers did not surrender their weapons
    fully
  • - Indian troops took control of the
    Tiger-controlled
  • Jaffna by force

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Impact of Conflict In Sri Lanka
  • B. Foreign Intervention
  • Oct 1987 to Dec 1988 clashes in the N and E of
    Sri
  • Lanka bet the Tigers and the Indian
    peacekeeping forces
  • the latter withdrew in March 1990
  • the Tigers moved in to take control of the NE
  • tensions continued up to nowonce in a while,
  • clashes bet the Sinhalese and the Tigers would
    appear in
  • the news
  • no settlement in sight due to LTTEs demand for
    a
  • separate state

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Fighting continued from 1976 to present.
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Factors (Consequences)
  • Political
  • Armed Conflict
  • Foreign Intervention
  • Economic
  • Unemployment
  • Loss of Investments from other Countries
  • Fall in the Number of Tourists
  • Social
  • Sri Lankan Tamils Driven Out of their Homeland

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Political Armed Conflict
  • One consequence of the Sinhalese-Tamil conflict
    has been an armed conflict between the LTTE
    (Tamil Tigers) and Sinhalese government forces.
  • When the Tamils peaceful demands were rejected,
    a group of youths formed the LTTE (Tamil Tigers)
    who believed that violence was the only way to
    demand and obtain rights for the Tamils.
  • Riots which occurred in the 1980s between the
    Tamils and the Sinhalese sparked off a long armed
    conflict between the Sinhalese government forces
    and the LTTE (Tamil Tigers).

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Political Armed Conflict
  • This has led to a bitter 20 year war between the
    Sinhalese government and the LTTE and has cost
    more than 60,000 lives and has resulted in other
    economic and social consequences which have
    affected Sri Lanka.

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Results of the Armed Conflict
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Tamil villagers identify the bodies of their
loved ones killed during clashes between
government forces and Tamil Tigers
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1983 Riots in Sri Lanka
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Aftermath of the 1983 Riots in Sri Lanka
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Economic - Unemployment
  • The Sri Lankan riots of 1983 lead to massive
    unemployment.
  • Both Tamils and Sinhalese lost their jobs.
  • Many of the jobless Sinhalese also took part in
    vandalizing, looting and burning their places of
    work.
  • With unemployment and the subsequent destruction
    of places of work would result in suffering and
    economic hardship for Sri Lanka and its citizens.

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Impact of Conflict In Sri Lanka
  • Economic consequence
  • Unemployment
  • breadwinners killed during armed struggles
  • factories and plantations closed/destroyed
  • looting, vandalising, burning places of work by
    the
  • Sinhalese
  • thousands of workers, self-employed persons lost
    their
  • jobs (Tamils and Sinhalese alike)

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Wrecked businesses following the 1983 Riots in
Sri Lanka (also known as Black July)
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Economic Loss of Investment
  • The Sri Lankan conflict has scared off potential
    investors to Sri Lanka who are afraid that the
    instability in the country would cause them to
    lose their investments.
  • With a loss of investment, Sri Lanka cannot grow
    its economy, re-build damaged infrastructure or
    create jobs

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Impact of Conflict In Sri Lanka
  • Loss of foreign investments
  • foreign investment needed
  • but political instability is an unattractive
    factor
  • foreign investors may not have the confidence to
    invest
  • in a politically unstable country
  • US66m (82) to US39m (83) to US22m (86)

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Economic Fall in the Number of Tourists
  • The Sri Lankan conflict has scared off many
    tourists who do not dare to travel to Sri Lanka.
  • As tourism is one of Sri Lankas major income
    earners, there has been a fall in tourism
    earnings and a loss of tourism-related jobs.
  • With a loss of foreign investment and a drop in
    tourist earnings, Sri Lanka cannot get the funds
    needed to re-build infrastructure or to develop
    attractive amenities and facilities causing the
    country to be in a state of continuous financial
    hardship.

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Impact of Conflict In Sri Lanka
  • Decline in tourism
  • tourism was a major income earner
  • seriously affected by the violent internal
    conflict
  • tourist arrivals decreased, loss of jobs, fall
    in earnings
  • less funds to develop attractions, amenities and
    facilities
  • (hotels, transport, housing etc)

126
Tourist Attractions in Sri Lanka
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Impact of Conflict In Sri Lanka
  • Social consequence
  • Refugees
  • 65k Tamils fled to India after 1983 riots
  • creation of High Security Zones to keep LTTE
    away
  • army move into Tamil areas
  • refugee camps ? overcrowded

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Social Sri Lankan Tamils Driven Out of Homeland
  • Following the 1983 riots, thousands of Tamils
    fled to India
  • In the early 1990s, the Sri Lankan Army set up
    High Security Zones (HSZ) where access is
    controlled and occupied large parts of
    Tamil-dominated areas to deal with the Tamil
    Tigers.
  • Due to this conflict, many Tamils have fled from
    their homes and live in overcrowded refugee camps.

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Social Sri Lankan Tamils Driven Out of Homeland
  • Most Tamils have lost their homes as a result of
    the conflict and have to suffer in overcrowded,
    unhygienic conditions in refugee camps.
  • Many families have also been broken up or
    separated during the fighting and many Tamils
    have suffered during the 20 years or so of
    endless conflict, robbing them of a bright future
    in their country.

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Tamils fleeing from their homes in Jaffna, the
northern part of Sri Lanka
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Tamils fleeing Sri Lanka by ship following the
1983 Riots
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February 2003 Truce signed by both sides.
134
Peace In Our Times
  • no sight of peace
  • violence is a daily happening even after the
    2004
  • Tsunami
  • political assassinations (political leaders to
    law makers)
  • common

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Political Cartoon on Sri Lanka Conflicts
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Is the dream gone for South Asia?
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