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Problems and Issues Facing India


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Title: Problems and Issues Facing India

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

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

Urbanization and Poverty
Daily life in India is centered around cities,
villages, and religion.
  • Cities
  • Two largest citiesMumbai (Bombay) and Kolkata
  • Bangalore and Mumbaiuniversities, research
    centers, and high-tech businesses
  • Most people struggle to earn a living in the
  • Villages
  • Most Indians live in rural areas.
  • Most villagers work as farmers and live with an
    extended family.
  • Paved roads and electricity have only recently
    reached many Indian villages.
  • Religion
  • Plays a key role in Indian daily life
  • Most practice Hinduism.
  • Many follow other religions (Islam, Buddhism,
  • Millions practice Sikhism and Jainism.
  • Religious celebrations are important.

Daily Life
  • About 7 out of 10 Indians live in villages and
    farm for a living.
  • Houses belonging to more prosperous families in a
    village are made of better materials than those
    of poorer villagers, most of which include only a
    charpoy, or wooden bed frame with knotted string
    in place of a mattress.
  • For religious and economic reasons, Indians
    follow a mostly vegetarian diet, and most Indians
    eat some form of rice every day.

70 Rural 600,000 villages
Poverty Abounds
Four of every ten people in India struggle to
live on the equivalent of less than 1.25 /day
Comparative Statistics for Selected Countries in
South Asia
Arable Land Pop. Density /km GDP PPP Literate Life Exp. Poverty Rate
India 49 392 2,800 61 70 yrs 25
Pakistan 24 199 2,600 50 65 yrs 24
Nepal 16 226 1,700 49 65 yrs 31
Bangladesh 55 1165 1,500 43 60 yrs 45
Poverty is a tremendous problem in South Asia
Consider these indicators of poverty for the
countries of South Asia
Today India faces many challenges, including a
growing population and economic development.
  • Population
  • India is the worlds second most populous
  • Indias huge population places a strain on
    Indias environment and resources.
  • Urbanization is taking place. Urbanization is
    the increase in the percentage of people who live
    in cities.

Urbanization trends in India
Total population
Urban Population
  • Year
  • 1800
  • 1950
  • 2000
  • 2008
  • 2030
  • 2
  • 30
  • 47
  • 50
  • 60

In million
Source UN, Urbanization prospects, the 1999
Urbanization Growth
  • If India does grow rapidly, one would expect
    about 75 of Indias population would be
    urbanized by 2050
  • Urban population in 2050 75 of 1.6 billion
    1.2 billion
  • Urban population today 28 of 1.002 billion
    280 million
  • Urban population would increase by 920 million by
    2050 (almost 20 million new urban residents a
  • Can India cope with such rapid urbanization, or
    will it stymie Indias growth?

Urbanization Trends and Patterns-2
  • 286 million people in India live in urban areas
    (around 28 of the population)
  • The proportion of urban population in India is
    increasing consistently over the years
  • From 11 in 1901 to 26 in 1991 and 28 in 2001
  • Estimated to increase to 357 million in 2011 and
    to 432 million in 2021
  • After independence
  • 3 times growth - Total population
  • 5 times growth - Urban population
  • Census of India 2001

  • In 2003, India was one of the least urbanized of
    the large in population countries of the world,
    given that only 28 percent of the country's
    population resided in urban areas.
  • Although the proportion classified as urban is
    small, in absolute numbers India had 299,208,000
    people residing in urban centers.
  • Mumbai (formerly Bombay), with 11,914,398 people,
    is the largest city of India in terms of
    population. Delhi ranks second with 9,817,439
    followed by Kolkata (formerly Calcutta) with
  • 11 Indian cities have populations in excess of
    one million inhabitants.
  • The largest metropolitan area populations of
    India are
  • Mumbai 16,368,084
  • Kolkata 13,216,546
  • Delhi 12,791,458

Dharavi is the largest slum in Asia
Location Mumbai, India
How would they describe Dharavi to a tourist?
  • Dharavi is described as a slum of hope
  • Dharavi is described as a slum of despair

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Demographics in South Asia
70 of South Asians live in rural areas, in
villages, yet South Asia has some of the worlds
largest cities
  • Mumbai- 16 million
  • Kolkatta- 13 million
  • Delhi- 13 million
  • Dhaka- 13 million

  • Indian urbanization is accelerating, and urban
    India is today growing more than twice as rapidly
    as the country's overall population.
  • Attendant problems include poor sanitation,
    street dwellers, and riots.
  • In 1984, riots between Hindu and Moslems in
    Mumbai left hundreds dead.
  • Reasons for migration to cities (internal
  • Loosening of ties between poor peasants and their
  • Widespread establishment of village men or "caste
    brothers" who encourage friends and relatives to
    move to the cities.

Reasons for migration to cities
  • Higher salaries
  • Business opportunities
  • Anonymity and individualism
  • Rise in caste status
  • Agricultural modernization (reduces rural incomes
    and jobs)
  • Population pressures
  • Refugees of drought or flooding

  • Increased family size-limited agricultural
  • -Land use Pattern
  • -Irrigation facilities
  • Better income prospects
  • Better educational facilities
  • Better Life style
  • Basic amenities health, transport,water,
  • Victims of natural/manmade calamities-Refugees

  • Many of Indias people live in small or
    medium-sized towns, which are larger and livelier
    than rural villages.
  • Indias cities are very densely populated, as
    evidenced by Mumbais population density of
    714,000 inhabitants per square mile.
  • Despite the extreme crowding and poverty, cities
    offer more opportunities for work and education
    than do rural areas.

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  • Population densities in urban centers are very
  • Kolkata (Calcutta) averages 13,900 persons per sq
    km (36,000 persons per sq mi) for its entire area
    of 1036 sq km (400 sq mi).
  • By comparison, New York City averages 1544
    persons per sq km (4,000 persons per sq mi).
  • In Kolkata (Calcutta), an estimated 200,000
    residents are known as street people and sleep
    under bridges, railway overpasses, in doorways or
    wherever they can find a spot.
  • Slightly better off are the residents of the
    bustees, hovels made of cardboard, burlap, or
    other scrap material.
  • An estimated 2,000,000 people live in bustees.

  • Indian urbanization reveals several regional
  • The northern heartland, the west (wheat growing
    area) is more urbanized than the east (where rice
    forms the main staple crop).
  • In the west urbanization may be as much as 40
    in the east only about 10 of the population
    resides in urban centers.
  • India's larger cities (more than 100,000) are
    concentrated in three regions
  • (1) the northern plains from Punjab to the Ganges
  • (2) the Bombay-Ahmadabad area
  • (3) the southern end of the peninsula, which
    includes Madras and Bangalore
  • Large cities(more than one million) outside these
    regions include centrally positioned Nagpur and
    Hyderabad (capital of Andhra Pradesh).

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Cities of India
  • Mumbai, on Indias west coast, is the countrys
    busiest port and its financial center, while
    Chennai and Kolkata are major centers of commerce
    and shipping on the east coast.
  • New Delhi is the countrys capital and center of
  • Varanasi, on the banks of the Ganges, is regarded
    by Hindus as their holiest city, and devout
    Hindus hope to visit the city at least once
    within their lifetime to wash in the sacred
    Ganges River.

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  • Overcrowding
  • Mushrooming of slums
  • Unemployment
  • Poverty
  • Physical mental stress
  • Family structure-Nuclear families
  • -Single males

Unhygienic conditions
Stretching of overburdened systems
Communicable diseases
Non-Communicable diseases
Mental illness
Life style modification
A scene which makes every Indian feel shameful
Slums of India
  • In the last decades, the total urban population
    in Indias 3 largest metropolitan areas has
    increased to nearly 400 million people.
  • In 2011, Indias slum population was estimated
    to be 90 million. T
  • his rapid urbanization has brought unique
    challenges to those calling Indias cities home.
  • Planning practices left over from Colonial times
    have created city structures characterized by
    unequal distribution of public services,
    especially access to clean water and sanitary
    waste disposal.
  • Government agencies, as well as Non-Governmental
    Organizations, are working to provide access to
    clean water and sanitation for Indias slum
    dwellers through crisis intervention,
    infrastructure construction, and education on
    water quality standards and womens issues1,2

  • Under section 3 of the Slum Area and Improvement
    Act (Improvement and Clearance Act) (Act No.96,
    1956) an area is legally considered a slum if
    competent authority reports that any areas are
  • a)In any respect unfit for human habitation
  • or b) are by reason of dilapidation,
    overcrowding, faulty arrangement and design of
    such buildings, narrowness or faulty arrangement
    of streets, lack of ventilation, light,
    sanitation facilities or any combination of these
    factors which are detrimental to safety, health
    and morals
  • More males than females
  • Vast majority is part of the working age group
  • Caste System continues to play defining role

Factors Affecting Health in Slums
  • Economic conditions
  • Social conditions
  • Living environment
  • Access and use of public health care services
  • Hidden/Unlisted slums
  • Rapid mobility

Agarwal S, Satyavada A, Kaushik S, Kumar R.
Urbanization, Urban Poverty and Health of the
Urban Poor Status, Challenges and the Way
Forward. Demography India. 2007 36(1) 121-134
Double Burden of Diseases
  • Overcrowding and related health issues
  • Rapid growth of urban centers has led to
    substandard housing on marginal land and
  • Outbreaks of diseases transmitted through
    respiratory and faeco-oral route due to increased
    population density
  • It exacerbates health risks related to
    insufficient and poor water supply and poor
    sanitation systems
  • Lack of privacy leading to depression, anxiety,
    stress etc

Double Burden of Diseases
  • Upsurge of Non-communicable diseases
  • The rising trends of non-communicable diseases
    are a consequence of the demographic and dietary
  • Decreases in activity combined with access to
    processed food high in calories and low in
    nutrition have played a key role
  • Urbanization is an example of social change that
    has a remarkable effect on diet in the
    developing world

Double Burden of Diseases
  • Traditional staples are often more expensive in
    urban areas than in rural areas, whereas
    processed foods are less expensive
  • This favors the consumption of new processed
  • This places the urban population at increased
    risk of NCDs
  • In India, chronic diseases are estimated to
    account for 53 of all deaths and 44 of
    disability-adjusted life-years (DALYs) lost in


Operational Challenges
  • Lack of standards for
  • Provision of safe water and sanitation
  • Housing and waste disposal systems
  • No public health bill for setting up and
    regulating these standards
  • Lack of understanding of recent demands of urban
    health care delivery and poor planning/implementa

Operational Challenges
  • Lack of infrastructure for setting up of primary
    health care facilities
  • Many slums are not having even a single primary
    health care facility in their vicinity
  • Multiple health care facilities/bodies but
    without coordination
  • Lack of community level organizations/slum level
    organizations and lack of adequate support to them

Infrastructure Issues
Disparate Taxation
  • Only 35 million people pay income tax to the
    federal government.
  • Formal Sector
  • Over 1 billion pay NO federal taxes!
  • Informal Sector
  • Largely agricultural or village based

Lacking Infrastructure
  • Major cities are not connected at this point by a
    highway system.
  • Golden Quadrilateral Highway Project will
    eventually connect New Delhi-Mumbai-Bangalore-Chen
    nai-Kolkata. - 12 billion
  • Currently only 3,700 miles of highways!!!
  • 40 of farm produce goes to waste as a result of
    poor transportation

Infrastructure Issues
  • Irrigation Water Pollution Narmada Valley
  • Building of 30 major 3,000 minor dams
  • Electric power will be created
  • Bhopal Accident American chemical plant
    accident, killed 2,000
  • Modernizing vs. Environmental Protection

Scheduled Improvements
  • New 430 million Bangalore International Airport
    to be completed by April 2008. (European built
    and operated)
  • Roads to the airport are uncertain
  • Vallapardam Ship Terminal in Kochi (southwest
    coast of Kerala) to be completed by Dubais DP
    World at a cost of 555 million

Population Issues
  • How To Handle Them

  • India had 1,068,600,000 people in 2003 (17 of
    the world total), the world's second largest
    country in population after China.
  • India has a rate of natural increase of 1.7
    (compared to a 1.3 world rate) and a projected
    population of 1,363,000,000 by 2025.
  • At this rate, it is only a matter of time before
    India becomes the world's most populous country.
  • The largest clusters of the Indian population are
    found in the Gangetic plains in the north and the
    coastal areas of the country. These are the most
    fertile parts of India.

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South Asia is one of the most densely populated
areas on earth.
  • India has a population growth rate of 1.6
    percent, which will lead to the doubling of the
    nations population in 36 years.

  • In India, population arithmetic density (in
    2003) was 325 persons per sq km (842 persons per
    sq mi) physiological density (in 2000) was at
    557 persons per square kilometer (1442 persons
    per square mile).
  • In neighboring Bangladesh the arithmetic density
    is approximately 2.5 times as high, 1,040 persons
    per sq km (2,639 persons per sq mi).

More than one-third of Indias population is
under the age of 15 years old.
Indias natural increase rate 1.5 (2009
est) Chinas natural increase rate 0.6
Indias population is expected to exceed Chinas
by 2020.
Each year India adds 18 million people. To
accommodate this, each year India would have to
  • 127,000 new village schools
  • 373,000 new teachers (at 50 students per teacher)
  • 2.5 million new homes (with 7 people per home)
  • 4 million new jobs
  • 180 million new bushels of grain and vegetables

CASE STUDY Slowing Population Growth in India
  • For over 50 years, India has tried to control its
    population growth with only modest success.
  • Two factors help account for larger families in
  • Most poor couples believe they need several
    children to work and care for them in old age.
  • The strong cultural preference for male children
    means that some couples keep having children
    until they produce one or more boys.
  • The result even though 9/10 Indian couples have
    access to at least one modern birth control
    method, only 48 actually use one.

Family Planning as National Policy
  • In 1952, the Indian government adopted family
    planning as a national policy.
  • By 1961, there were 4,165 family planning
  • As a part of the government campaign to limit the
    number of children, the government has put up
    billboards with the following slogan "four is a
    family, five is a crowd."
  • In 1976, a national population policy was adopted
  • the increase of the age of marriage for females
    to 18 years and for males to 21,
  • tying financial grants from the federal
    government to the state governments to their
    performance in limiting births,
  • provision of sex education in schools,
  • expansion of compensation for voluntary
  • and use of incentives by governments to encourage
    people to limit their family size.
  • In 1977, this policy was made voluntary following
    the collapse of the Indira Gandhi government.
    Only 8 of federal assistance was tied to
    performance on birth control by states.

South Asia has been trying to reduce births since
India began its population programs in 1952.
mid-1960s they opened camps for mass
insertions of IUDs. 1970s Vasectomy camps
10 million men were coerced into sterilized by
vasectomies during the Emergency Drive for
family planning in the 1970s. Backlash against
family planning and distrust of govt 1998 the
Indian government abandoned targets for
sterilizations and contraception. Focus on
Family planning poster from India
Why only a boy? family planning poster from
How is it that population continues to boom even
with declines in fertility?
  • Significant part of population is in early
    reproductive years
  • Poor, rural, uneducated people see children as
    their only source of wealth.
  • Because there is little access to healthcare,
    infant mortality rates are high (67/1,000 live
  • View sons as more beneficial than daughters.

Pollution Issues
  • All the ills of urban development exist in this
    one city, New Delhi.
  • The environmental problems of developing
    countries are not the side effects of excessive
    industrialization but reflect the inadequacy of
    development (Gandhi)
  • Indira Gandhi 1968 UN pollution conference

Double Burden of Diseases
  • Air pollution and its consequences
  • Due to increase in the numbers of motorized
    vehicles and industries in the cities of the
    developing world
  • Problems of noise and air pollution
  • Air pollution can affect our health in many ways
    with both short-term and long-term effects
  • Short-term air pollution can aggravate medical
    conditions like asthma and emphysema
  • Long-term health effects can include chronic
    respiratory disease, lung cancer, heart disease,
    and even damage to other vital organs

Indoor Air Pollution
  • Fuel wood, animal dung and crop residues fuel
    (Smith 2000).
  • Arsenic other toxins
  • 560 villages arsenic-affected
  • More than a million people are drinking arsenic
    contaminated water
  • 200,000 people are suffer from arsenic-related
  • Result chronic obstructive pulmonary disease and
    acute respiratory infections.
  • Most common COD for children under 5 in India
  • Low birth weight, increased infant and prenatal
    mortality, pulmonary tuberculosis, nasopharyngeal
    and laryngeal cancer, cataract, and, specifically
    in respect of the use of coal, with lung cancer
    and asthma.

Waste Disposal
  • Increase in MSW (municipal solid waste)
  • Rapid population growth
  • Modernization
  • Mumbai population grew from 8.2 million in 1981
    to 12.3 million in 1991
  • MSW 3200 tons per day to 5 355 tons per day
  • Municipality competition
  • Land scarcity for dumping sites
  • Burning Most common CFC emissions
  • Recycling difficult to implement

Access sanitation
  • Only 33 can get rid of there garbage others
  • So that leaves them with nasty garbage to live
  • So they have to find a way to get rid of all that

This is what has happened in India
  • Water conservation can help solve this problem

The problem in India
  • India has the worlds second largest population
  • The population in India is too big. This is part
    of why India is in a water crisis.
  • Some of the diseases are being spread because,
    many people cannot wash their hands correctly
    with such little water.
  • Disease is also spread through drinking-water.

  • India has 86 improved water sources that leaves
    14 with dirty water.

Water Pollution
  • 3.7 Million depend on basic well system
  • hydrocarbons, phenols, cyanide, pesticides, major
    inorganic species, and bacteria.
  • Yamuna River can no longer support life
  • Garbage cascades down its banks, giving off a
    fetid stench. And half of the city's raw sewage
    flows into its waters.
  • "The river is dead, it just has not been
    officially cremated"
  • Govt. spending 500 million
  • River pollution has doubled since 1993
  • Unplanned Communities
  • 80 pollution due to raw sewage
  • -4 GDP due to lost productivity (Gupta)
  • Technology can improve nullahs

Double Burden of Diseases
  • Water and sanitation problems
  • Due to increasing urbanization coupled with
    existing un-sustainability factors and
    conventional urban water management
  • Nealy 1.1 billion people worldwide who do not
    have access to clean drinking water and 2.6
    billion people i.e. over 400 million people, lack
    even a simple improved latrine
  • Can lead to increased episodes of diarrhea and
    economic burden

Economic Strength
  • Why is India becoming an economic superpower?

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

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

2) Population growth is slowing
India Story

  • average annual
  • 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)

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

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

Indias demographic advantage means that its high
growth will continue longer term while China will
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
By 2010 India will have worlds largest
number of English speakersWhen 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
3. Literacy is rising
India Story
  • 1950 17
  • 1990 52
  • 2000 65
  • 2010 (proj) 80
  • Source Census of India (2001)

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

  • 1980 8
  • 2000 22
  • 2010 32
  • 2020 50 West of the

    Kanpur-Chennai line
  • 2040 50 East of the


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.

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

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

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

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

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

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

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.

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

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.

Reasons for Success Indias
success is market led whereas Chinas is state
induced. The entrepreneur is at centre of the
Indian model
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
  • 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
  • The social democratic plan is too optimistic for
    Inidan immature environment.

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

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
  • gt 80 credit goes to private sector (vs10
  • China)

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

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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

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

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.

  • 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.

  • Primary Sector
  • Indian agriculture is inefficient and labor
  • 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.

  • 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.

  • 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.

  • 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.

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

  • 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
  • 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
  • About 10 of India's paddy land is now planted
    with IR-8 varieties.

  • Green Revolution benefits
  • Two to four times the yield of indigenous grains.
  • A shortened growing season allows two crops per
  • 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.

  • Secondary sector
  • At the time of independence (1947), Indian
    industries emphasized textiles and food
  • 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
  • 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

  • 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.

  • 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.

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

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

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
  • 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.

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.

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

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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
  • 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
  • GAP sources about 600 million and Hilfiger 100
    million worth of apparel from India.

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
  • 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
  • Indias new PARAM Padma Terascale Supercomputer
    (1 Trillion processes per sec.) is also amongst
    only 4 nations in the world to have this
  • India is providing aid to 11 countries,
    writing-off their debt and loaning the IMF
  • It has also prepaid 3Billion owed to the World
    Bank and Asian Development Bank.

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
  • There are 170 biotechnology companies in India,
    involved in the development and manufacture of
    genomic drugs, whose business is growing
  • Sequencing genes and delivering genomic
    information for big Pharmaceutical companies is
    the next boom industry in India.

India Foreign Multi-National Companies
  • Top 5 American employers in India
  • General Electric 17,800 employeesHewlett-Pac
    kard 11,000 employeesIBM 6,000
    employeesAmerican Express 4,000
    employeesDell 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
  • 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.

  • Top 5 American employers in India
  • General Electric 17,800 employeesHewlett-Pack
    ard 11,000 employeesIBM 6,000
    employeesAmerican Express 4,000
    employeesDell 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
  • 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.

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 .
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.
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)
Brain Drain
  • Young talent leaving India seems to be slowing
  • Average starting salary for an IT engineer in
    India today is approximately 10-12,000.
  • Many are graduates of the Indian Institute of
  • Several campuses located throughout the country
  • This salary provides a comfortable lifestyle in
    modern India for the privileged few.

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.

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
Religious Conflict Between Hindus and Muslims in
  • Ayodhya riots
  • Mumbai riots
  • 1992-93. Thousands dead.

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.
Hindu fundamentalism opposes Indian National
Congresss secularism.
1996 Fundamentalist Bharatiya Janata Party
(BJP) won the election.
But they did not have a majority and had to form
a coalition government.
The coalition only lasted a month, and the United
Front took over.
The United Front was a coalition of small leftist
parties including the Communists.
1997 BJP came back to power. Atal Bihari
Vajpayee became Prime Minister.
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  • BJP Party wins national elections in 1998.
  • Favors confrontation with Pakistan
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