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
Urbanization and Poverty
5
Daily life in India is centered around cities,
villages, and religion.

• Cities
• Two largest citiesMumbai (Bombay) and Kolkata
  (Calcutta)
• Bangalore and Mumbaiuniversities, research
  centers, and high-tech businesses
• Most people struggle to earn a living in the
  cities.

• 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,
  etc.).
• Millions practice Sikhism and Jainism.
• Religious celebrations are important.

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Daily Life
2

• 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.

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70 Rural 600,000 villages
8
Poverty Abounds
9
Four of every ten people in India struggle to
live on the equivalent of less than 1.25 /day
10
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
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Poverty is a tremendous problem in South Asia
12
Consider these indicators of poverty for the
countries of South Asia
13
Today India faces many challenges, including a
growing population and economic development.

• Population
• India is the worlds second most populous
  country.
• 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.

14
Urbanization trends in India
Total population
Urban Population

• Year
• 1800
• 1950
• 2000
• 2008
• 2030

• 2
• 30
• 47
• 50
• 60

In million
140
360
1027
1160
2050
Source UN, Urbanization prospects, the 1999
revision
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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
  year)
• Can India cope with such rapid urbanization, or
  will it stymie Indias growth?

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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

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INDIA URBAN GEOGRAPHY

• 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
  4,580,544.
• 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

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Dharavi is the largest slum in Asia
Location Mumbai, India
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How would they describe Dharavi to a tourist?
20

• 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

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INDIA URBAN GEOGRAPHY

• 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
  migration)
• Loosening of ties between poor peasants and their
  villages.
• Widespread establishment of village men or "caste
  brothers" who encourage friends and relatives to
  move to the cities.

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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

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Migration-causes

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

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Urbanization
2

• 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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INDIA URBAN GEOGRAPHY

• Population densities in urban centers are very
  high.
• 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.

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INDIA URBAN GEOGRAPHY

• Indian urbanization reveals several regional
  patterns
• 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
  Delta
• (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
  government.
• 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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Migration-consequences

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

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Migration-cobweb
Illiteracy
Slums
Migration
Unemployment
Overcrowding
Unhygienic conditions
Poverty
Stretching of overburdened systems
Communicable diseases
Crimes
Non-Communicable diseases
Injuries
Mental illness
Stress
Life style modification
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A scene which makes every Indian feel shameful
36
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

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Slums

• 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
  (15-59)
• Caste System continues to play defining role

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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
39
Double Burden of Diseases

• Overcrowding and related health issues
• Rapid growth of urban centers has led to
  substandard housing on marginal land and
  overcrowding
• 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

40
Double Burden of Diseases

• Upsurge of Non-communicable diseases
• The rising trends of non-communicable diseases
  are a consequence of the demographic and dietary
  transition
• 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

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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
  foods
• 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
  2005

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KEY CHALLENGES TO URBAN HEALTH SERVICES
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Operational Challenges

• Lack of standards for
• Provision of safe water and sanitation
  facilities
• 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
  tion

44
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

45
Infrastructure Issues
46
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

47
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

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Infrastructure Issues

• Irrigation Water Pollution Narmada Valley
  Project
• 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

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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

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Population Issues

• How To Handle Them

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INDIA POPULATION GEOGRAPHY

• 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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5
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.

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INDIA POPULATION GEOGRAPHY

• 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).

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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.
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Each year India adds 18 million people. To
accommodate this, each year India would have to
add

• 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

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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
  India.
• 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.

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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
  clinics.
• 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
  including
• 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
  sterilization,
• 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.

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South Asia has been trying to reduce births since
1952.
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
education.
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Family planning poster from India
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Why only a boy? family planning poster from
India
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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
  births).
• View sons as more beneficial than daughters.

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Pollution Issues
64
Pollution

• 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

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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

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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
  diseases
• Result chronic obstructive pulmonary disease and
  acute respiratory infections.
• Most common COD for children under 5 in India
  (WHO)
• 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.

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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

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Access sanitation

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

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This is what has happened in India

• Water conservation can help solve this problem

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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.

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Water

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

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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

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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

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Economic Strength

• Why is India becoming an economic superpower?

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

76
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

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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)

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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

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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

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Indias demographic advantage means that its high
growth will continue longer term while China will
slow
81
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
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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
Language
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3. Literacy is rising
India Story

• 1950 17
  
• 1990 52
• 2000 65
• 2010 (proj) 80
• Source Census of India (2001)

84
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

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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

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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.

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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.

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6. Productivity is rising
India Story

• 30 to 40 of GDP growth is due to rising
  productivity

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7. Per capita income gains
India Story

• (US ppp)
• 1980 1178
  
• 2000 3051
• Source World Bank

90
This means a per capita income roughly of (on a
ppp basis)

• ()
• 2000 2100
• 2005 3050
• 2020 5800
• 2040 16,800
• 2066 37,000

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8. India is now the 4th largest economy
India Story

• And it will cross Japan between 2012 and
  2014 to become the 3rd largest

92
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.

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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.

94
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

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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.

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Reasons for Success Indias
success is market led whereas Chinas is state
induced. The entrepreneur is at centre of the
Indian model
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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.

98

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

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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)

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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

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Key Reforms

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

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Agriculture
105
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.

106
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.

107
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.

108
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.

109
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.

110
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.

111
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.

112
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.

113
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.

114
Industries
115
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.

116
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.

117
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.

118
Technology
119
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

120
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.

121
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.

122
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.

123
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

124
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125
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.

126
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.

127
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.

128
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
  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.

129

• 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
  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.

130
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 .
131
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.
132
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)
133
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.

134
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.

135
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.
136
Religious Conflict Between Hindus and Muslims in
India
137
HINDU-MUSLIM TENSIONS

• Ayodhya riots
• Mumbai riots
• 1992-93. Thousands dead.

138
1992 Hindu mob destroyed the mosque in Ayodhya.
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Riots followed killing over 2000 people.
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149
Hindu fundamentalists want to build a Hindu
temple in place of the mosque.
150
Hindu fundamentalism opposes Indian National
Congresss secularism.
151
1996 Fundamentalist Bharatiya Janata Party
(BJP) won the election.
152
But they did not have a majority and had to form
a coalition government.
153
The coalition only lasted a month, and the United
Front took over.
154
The United Front was a coalition of small leftist
parties including the Communists.
155
1997 BJP came back to power. Atal Bihari
Vajpayee became Prime Minister.
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157
HINDU NATIONALISM

• BJP Party wins national elections in 1998.
• Favors confrontation with Pakistan