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4. The Ten Largest Economies in 2050
India will likely be the 3rd largest economy in
the world in 2050, measured in GDP nominal
(millions of USD), according to Goldman
Sachs.
5. Reasons for India‟s Economic Growth
• Global Trade – India opened its doors to
the global trading floor in 1991, and it lead
to the increase in the international trade
sector. Among the top trading partners of
the country includes the United States, the
European Union and the UAE.
• Increase in Outsourcing Services – the
sector has helped employed around 3
million jobs in both direct and indirect
opportunities
• Farming and Agriculture - India is
considered as the second largest in the
global market when it comes to the farm
output.
• Foreign Direct Investment - When it
comes to PPP or the purchasing power
parity, it is the fourth largest economy.
Thus, it has made the country to be a
favorite foreign direct investment
destination for industries like
telecommunications, auto
components, pharmaceuticals and
information technology companies. With
the reduction of licensing requirements and
the restrictions on the expansion, more FDI
companies are moving towards the
country.
6. Reasons for India‟s Economic Growth
(cont.)
• Industrial and Textile Industries -
Factory manufacturing industries of India is
considered as the 14th top producer in the
world, and this sector accounts for around
17 percent of the entire employment
sectors of the country. The textile
industry, itself, employs around 20 million
people.
• Investment Boost - Investments have
been trigged by the domestic consumption
issues, and this has led people to give
focus on the real property
investments, which is noted to have an
average increase of 17 percent per year
for the last five years.
• Mining - A vital element to the overall
economy, the sector is essential producing
around 79 different minerals that are
exported all over the world.
• Banks and Financial Institutions - In
1969, 14 banks were nationalized by
Indira Gandhi, and this led to the
requirement that 40 percent of the total
net credit of the banks must be used for
other industries and other sectors.
Overall, this helped the country
overcome certain budget issues for
every sector.
7. Brief History of India
• From the 3rd millennia to the 16th
century, various tribes, empires, and
dynasties helped form the Indian culture
• In the 16th century, European explorers
began establishing footholds in India.
• By the 19th century, Great Britain was
the prominent political power in the
region.
• The British Indian Army played vital
roles in both World Wars.
• By 1947, Mohandas Gandhi and
Jawaharlal Nehru lead a successful
nonviolence resistance movement that
brought India its independence in 1947.
• On India’s Independence Day, August
15, 1947, the country was split into India
and Pakistan. The partition displaced
1.27 million people and resulted in the
death of several hundred thousand to a
million people.
• By 1998, India conducted successful
nuclear weapons testing.
• By 2005, India had the fourth largest
economy in the world on the basis of
Purchasing Power Parity.
10. Iconic Images of India
National Icon – Bengal
National Flag Tiger
11. India by the Numbers
Linear miles GDP GDP –
Area of
of (Purchasing Per
Land Labor Force
Coastline. Power Capita
Sq. km
(km) Parity) (PPP)
India 3,287,263 7,000 487,600,000 4.5 trillion $3,700
World 136,437,679 356,000 3,492,503,026 95.8 trillion $16,154*
World Ranking --- 7th 2nd 4th 164
Percentage 5.7% 2.0% 14.0% 4.7% ---
• Although India is ranked 4 largest in the world regarding GDP, the
top three entities (European Union, United States, and China)
comprise over 44% of the World’s GDP
*Note this is an average across the data
13. India Government
• Structure: Republic of
India
– 27 states
– 7 territories
• Legal System
– Common law based on
the English legal
system
– Separate personal
codes apply to
individuals depending
on religious
orientation
14. Environmental Issues
Over Air
population Pollution
Deforestation Water
and Pollution
Overgrazing
15. Society - Language
Top Four Native Languages
Hindi (41.0%)
Bengali (8.1%)
41%
Telugu (7.2%)
Marathi (7.0%)
8.1%
7.0% 7.2%
Percent of India‟s Population which speaks the language
16. Society- Religion and Ethnicity
Religion Ethnic Groups
The above data is representative of the top religions or ethnic groups in India
18. Economy
• Open-market economy with
ties to its past autarkic
policies.
• In the early
1990’s, legislation such as
industrial
deregulation, privatization
of state-owned
enterprises, and reduced
control of foreign trade and
investment accelerated the
economy’s growth.
• Labor force
– One-half is in agriculture
– One-third is in services, but
is a major source of growth
21. Regulation of India Ports
• Laws:
– Indian Ports Act of 1908
• This aided in delineating the
responsibility of operational
and procedural aspects of
governing the ports for the
central and state
governments
• In essence, this granted the
central government the
majority of power when it
comes to ports.
– Major Ports Trusts Act of
1963
• Articulated the conceptual
framework of comprehensive
institutional design for port
administration in respect of
designated major ports. This
lead to the unprecedented
decentralization and
rationalization of port
administration.
22. Trading Alliances
• Trade agreements can be formed between two states or multiple states within the
country.
• “India views Regional Trading Arrangements (RTA's) as constructive blocks towards the
overall purpose of trade liberalization. Consequently, it is participating in a number of
RTA's.
• South Asia Free Trade Area
– Came into force in January 2006
– Members include: Bangladesh, Bhutan, India, Maldives, Nepal, and Sri Lanka
– Objective: Endorse and augment mutual trade and economic cooperation among the „Contracting States‟
• India-Mercosur Preferential Trade Agreement (PTA)
– Came into force on June 2003
– Members: India and MERCOSURE
– Objective: Enlarge and reinforce relations between MEROCSUR and India and endorse the extension of trade
by granting reciprocal fixed tariff preferences with the ultimate objective of creating a free trade area between
the parties.
– MERCOSURE is a trading block in Latin America formed in 1991 which consists of
Brazil, Argentina, Uruguay, and Paraguay.
• Asia-Pacific Trade Agreement (APTA) aka the Bangkok Agreement
– Signed: July 1975
– Proposal of the United Nations Economic and Social Commission for Asia and the Pacific
• BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic
Cooperation
– Its membership involves India, Bangladesh, Bhutan, Nepal, Sri Lanka, Thailand, and Myanmar.
– This is the “bridging link” between to major regional groupings.
– Objective: Sub regional economic collaboration consortium
•
23. Politics
• Two major political parties
– Indian National Congress
– Bharatiya Janata Party (BJP)
• In the past decade, more smaller
regional based political parties have
sprouted.
• These parties are more aligned with
the state, thus the relationship
between each state and the central
government can be volatile at times.
• The different religious and ethnic
groups have their own political
parties at times and this leads to a
one sided agenda.
– For instance, the Bharatiya Janata
Party has an image of being pro
Hindu
• Terrorism, Naxalism, religious
violence, and caste-related violence
are important issues affecting politics
in India.
– The Washington Times in 2004
reported that nearly ¼ of the Indian
Parliament legislatures had ongoing
criminal cases against them.
24. Hofstede Dimensions
Power Individualism Masculinity Uncertainty Long-Term
Distance Avoidance Orientation
U.S. 40 91 63 46 29
India 77 48 56 40 61
Delta -37 43 7 6 -32
• Power Distance: Extent to which the less powerful member of organization
and institutions accept and expect that power is distributed unequally.
• Individualism: Refers to the extent individuals are more likely to adhere to
individual needs whereas the opposite, collectivism, is where people tend to
stick together from birth on, often in extended families.
– Individualism: “The American Dream”
• Masculinity: Refers to the degree the roles between genders are distributed.
The high masculine score reflects more assertive people, but a low score
reflects a more caring individual.
• Uncertainty Avoidance: Refers to the degree with which the country is
willing to incur uncomfortable or unstructured opinions.
• Long-Term Orientation: Emphasizes perseverance and saving for future
betterment
26. Population
• India has the second largest
population in the world behind
China
• In July 2012, the population
was estimated at
1,205,073,612
• Indians now make up 17% of
the world's population. Uttar
Pradesh remains its most
populous state, with 199
million people.
• More people now live in India
than in the United
States, Indonesia, Brazil, Pakis
tan and Bangladesh combined.
• India is on course to overtake
China as the world's most
populous nation by 2030
27. Age Distribution
• India will be one of the youngest
nations by 2020
• The proportion of the working
age population (15-59 years) is
likely to rise from around 58% in
2001 to over 64% by
2021, according to the Economic
Survey.
– The comparative figures for China
and the U.S. are 37 years, while it
is 45 for West Europe and 48
Japan.
• There will be around 63.5 million
new entrants to the working age
group between 2011 and 2016.
• These changes are likely to
contribute to a substantially
increased labor force.
– However, it will benefit India only if
the population is
“healthy, educated, and
appropriately skilled.
29. Education in India
• Education expenditures:
– 3.1% of GDP (2006)
• Literacy:
– Definition: age 15 and over
can read and write
– Total population: 61%
– Male: 73.4%
– Female: 47.8% (2001
census)
• School life expectancy
(primary to tertiary
education):
– Total: 10 years
– Male: 11 years
– Female: 10 years (2007)
31. Standard of Living
• In 2012, more than 3
in 10 Indians rate
their lives poorly
enough to be
considered
"suffering," up from
24% last year.
32. Income Levels
• Fourth largest economy in
the world due to a strong
economic growth but still
has a low per capita income
• Still the poorest among the
G-20
• In 2011, GDP per capita
(PPP) was $3,700
• In 2010, the population
below poverty level was
29.8%
• GDP per capita rises
steadily year after year
36. Internet & Communication Infrastructure
• In 2011, there were 894
million mobile cell phones in
use; ranks 2nd in world in
regards to number of cell
phone users
• In 2009, there were
61,338,000 internet users;
India ranks 6th in world in
regards to number of
internet users
• In 2011, more than 100
million homes had access
to cable and satellite TV
offering more than 700 TV
channels
• In 2011, there were 32.6
million telephone main lines
in use
39. Foreign Direct Investment in India
• India is a favorite foreign direct
investment destination for
industries like
telecommunications, auto
components, pharmaceuticals
and information technology
companies.
• The overall number of FDI
projects increased by 25% to
864 (valued at US$ 50,813
million) in the 11 months to
November, up from 691 projects
(valued at US$ 44,874 million) in
2010
• The United States remains the
leading investor in India, both in
terms of projects and jobs
generated.
40. Foreign Direct Investment Rules
• The cabinet of the Congress party-
led coalition in New Delhi agreed
to allow foreign multi-brand
retailers to own up to 51% of joint
ventures in India
– Foreign retailers can now open
supermarkets with Indian partners.
(Wal-Mart-Bharti wholesale store
shown to right)
• Government changed the rules to
allow single-brand retailers such
as Nike Inc. to own 100% of their
Indian businesses. Before, they
were permitted to own only 51% of
a partnership with an Indian
company.
• Currently, retailing is dominated by
millions of mom-and-pop
stores, and it lacks much modern
supply-chain
management, including storage of
temperature-sensitive products.
43. Clean Energy Investments
• Clean energy investments have risen
faster than any other country, growing
52 percent to a total $10.3 billion in
2011
• Advanced its solar capacity from 18
megawatts in 2010 to 277 megawatts
in 2011
In 2011, there was $4.2 billion in
funding for grid-connected solar
power plants, a sevenfold increase
from 2010 levels
44. Research and Development Spending
• Over 5 years, the Prime Minister
hopes to double the R&D budget
for science and technology from 1
percent of the GDP to at least 2
percent.
• India, China and Brazil are ahead
of the US in terms of the rate of
growth in R&D indicators
• A 2 percent of GDP figure for R&D
would put India ahead of China's at
1.4 percent investment, but behind
the US at 2.7 percent and Japan at
3.3 percent.
• Part of that funding increase would
go toward increase
supercomputing capacity and
capability, which would be
implemented by the Indian Institute
of Science
45. Issues Regarding Intellectual
Property Protections
• Pirates consider the
business of software piracy
a much safer and easier
way to earn illegal money
than through other means
• In 2007, India experienced
PC sales growth at
32%, while the nation’s
piracy level is hovering at a
dismal 72% percent
• Present levels of software
piracy contradict the leading
position India enjoys in IT
and Software
46. Intellectual Property Enforcement
• Indian Copyright Act of
1957, in its present form, is
regarded as one of the
toughest and strictest in the
world
– Empowers the police to take
action without a warrant
against pirates/infringers
– Punishment for copyright
infringement is
imprisonment for up to
three years and a fine of up
to 200,000 Rupees ($4,500)
47. Intellectual Property Enforcement
(cont.)
• Delhi High Court passed the
first judgment on damages in
2005
– The Microsoft Corporation v
Kamal Wahl (Suit 817, 2004) was
the highest award of damages
ever granted in an intellectual
property matter by an Indian
Court
– The court granted damages of
2.3 million Rupees ($52,800) in
favor of the plaintiffs
• A much needed amendment in
the Copyright Law is the
inclusion of statutory damages
– Various countries, such as the
US and Australia, have
incorporated statutory damages
into their copyright laws and
have effectively controlled
software piracy in their
jurisdictions
48. Labor Laws - Issues
• As soon as a company hires more
than 100 employees, it is
impossible to fire anyone without
government permission.
– Legislators are fighting to push a law
through Parliament to let a company
expand its workforce without
surrendering the power to lay off
workers to bureaucrats. The bill faces
fierce opposition from labor unions.
• Companies must keep 6
attendance logs and 10 separate
accounts for overtime wages, and
file 5 types of annual returns.
• There are at least 11 definitions of
"Is it possible that our best the word "wage.“
intentions for labor are not actually • Other rules regulate the height of
met by laws that sound progressive commodes in workers'
on paper but end up hurting the very washrooms, how often a building
workers they are meant to protect?“ must be lime-washed, and how
- Prime Minister Manmohan Singh, Nov 2011 many sand-filled buckets must be
on hand to put out fires.
49. Labor Laws - Waivers
• Some labor laws were waived
starting in 2001 to encourage
growth in the sector, India's
second-largest earner of
foreign exchange, by placing
most of the workforce inside
fenced-off zones.
• The waivers allowed IT
companies and call centers to
operate 24 hours a day, recruit
women to work late at night
without building single-gender
facilities, and add staff freely
without submitting layoff
decisions to the authorities.
India's IT companies, such as Tata Consultancy Services and
Infosys, employ as many as 2.7 million.
50. Trade Unions in India
• The Trade Unions Act, passed in
1926, allows workers to register
unions with the Labor Department.
These then have to be recognized
by the company they work for.
• Most trade unions in India are
aligned to parliamentary parties
and of these, leftist parties have
traditionally been at the forefront of
voicing workers' demands.
• Workers allege that privatization
has encouraged collusion between
labor departments and company
managements, making the process
of registration of unions difficult
• Strikes demanding the right to form
workers' unions have hit the
automobile sector in northern India
at frequent intervals.
51. Tax Revenue in India
• Under 3% of Indian citizens
pay income taxes
– The remainder of the income tax
revenue for the government is
derived from corporations.
• Tax Rates
– Annual Income of $4000 or
below – no tax
– Annual Income ranging from
$4001 to $10,000- 10%
– Annual Income from $10,001 to
$20,000- 20%
– Annual Income over $20,000 –
30%
• There are various levels of tax
exemptions for individuals. For
example, any income from
agriculture (around 45% of
employment in India) is exempt
from income taxes.
52. Largest Banks in India
Rank Bank Total Assets Number of
Branches
1 State Bank of India (SBI) 369.56 billion US dollars 13,000
2 ICICI Bank 119.69 billion US dollars 2,500
3 Punjab National Bank 82.23 billion dollars 5,000
4 Bank of Baroda 78.28 billion US dollars 3,400
5 Canara Bank 72.3 billion US dollars 3,100
6 Bank of India 70 billion US dollars 3,400
7 HDFC Bank 65.48 billion US dollars 1,986
8 Standard Chartered Bank
9 IDBI Bank 55.69 billion US dollars 923
10 Axis Bank $53.36 billion 1,281
53. Size of IT-BPO Industry
• The size of the Information
Technology & Business
Process Outsourcing
industry in India
experienced exponential
growth:
– 150 million US Dollars in
1990-1991
– 5.7 billion in 1999-2000
– 50 billion US Dollars in 2007
– 100 billion in 2012-2013.
58. Key Highlights of IT-BPO in 2012
• Aggregate revenues cross the
USD 100 billion mark, exports at
USD 69 billion
• Within the global sourcing
industry, India was able to increase
its market share from 51% in
2009, to 58% in 2011
• Software and services revenues
(excluding Hardware), comprising
nearly 87% of the total industry
revenues, expected to post USD
87.6 billion in FY2012; estimated
growth of about 14.9% over
FY2011
• Within Software and services
exports, IT services accounts for
58%, BPO is nearly 23% and R&D
and Software Products account for
19%
59. Key Highlights of IT-BPO in 2012 (Cont.)
• Expected to add 230,000 jobs in
FY2012, thus providing direct
employment to about 2.8
million, and indirectly employing
8.9 million people
• As a proportion of national
GDP, the sector revenues have
grown from 1.2% in FY1998 to an
estimated 7.5% in FY2012
• The industry’s share of total Indian
exports (merchandise plus
services) increased from less than
4% in FY1998 to about 25% in
FY2012
• Embracing emerging
technologies, increased customer-
centricity, deepening focus on new
markets, adopting new business
models are some successful
growth strategies followed by the
industry
60. Top IT-BPO Companies in India
2011
Number of
Rank Company 2011 Revenue Revenue
Employees
Growth
Tata Consultancy
1 Rs 33,112 crore 25% Over 198,500
Services
Infosys
2 Rs 25,997 crore 22% 133,560
Technologies
3 Wipro Rs 24,899 crore 13% 122,385
Hewlett-Packard
4 Rs 23,227 crore 30%
India
Cognizant
5 Technology Rs 21,393 crore 37%
Solutions
6 IBM India Rs 14,132 crore 14%
7 HCL Technologies Rs 14,111 crore 28%
8 HCL Infosystems Rs 12,137 crore 2%
9 Ingram Micro India Rs 9,766 crore 35%
10 Redington India Rs 9,274 crore 32%
62. Business Opportunities
• Manufacturing
– Untapped demand for low
cost products that are
affordable to millions of
people
– Frugal Innovation: Take an
established product like a
laptop which to millions of
Indians would be
unaffordable. Look at that
laptop, work out what
people could afford, and
design a bare bones laptop
that functions like the
original product, but costs a
fraction of the price.
• This business concept is at the
heart of India's emerging
economy, and has proved to be
successful- from the Tata Nana car
to the TVS scooter.
63. Business Opportunities (cont.)
- Retail
- Allow 51% FDI in multi-brand
retail
- Consumer Spending up by 75%
- Retail industry expected to
reach US$ 1.3 trillion by the year
2018
- Will improve retail supply chain
and benefit farmers and
consumers
- Insurance
- Allow foreign ownership of local
insurance companies and
pension-fund managers up to
49%
- Huge opportunity as only 4.7%
of the country's more than 1.2
billion people currently have
insurance of any kind
- “Insurance sector's need for
capital can be met only through
increasing FDI” – Minister of
Finance
64. Business Opportunities (cont.)
- Telecom
- One of the largest telecom
markets in the world
- The limit in broadcast services
is to increase 74% across the
board
- World’s 2nd largest mobile
phone industry with nearly 1
billion subscribers
- Supportive government
policies, emerging new
technologies and changing
consumer behavior fuel the
growth
- This is a lucrative market. A
large number of multinational
telecommunication leaders are
already pouring into the nation
65. Business Opportunities (cont.)
- Energy
- Unprecedented need for clean
energy production, unable to
meet the burgeoning demands
of the growing population and
businesses
- Severe shortage of electricity
in several states
- FDI of up to 100% is permitted
under automatic route for
projects of electricity
generation, transmission, distri
bution and power trading
- Growing potential of solar
power generation
66. Business Threats
- Lack of adequate
infrastructure facilities
- High cost of real estate
- Unstable political conditions
- Shortage of trained
manpower
- Widespread corruption, slow
processing in government
offices
- Opposition to FDI from
some political parties and
local groups
68. Gender Issues
• Shaking hands with women is a
very sensitive point in Indian
culture. The important rule is that
shaking a woman by the hand is at
the woman's initiative. Only when
an Indian woman offers her hand,
is it acceptable to shake it. In the
absence of a handshake, the
custom all over India is the
greeting of peace known as
"Namaste". When making this
greeting, hold the palms of both
hands together under the chin,
smile, bow slightly and say
"Namaste.”
• In Indian culture, it is considered
improper for a man and woman to
embrace and kiss in public.
69. Business Etiquette
• Do not arrange business meetings
for national holidays.
• It is important to remember that
apart from the national holidays
there are many festivals that are
specific to certain regions of India.
• Like many high context cultures,
Indians are family oriented. They
take time to know you before they
delve into business. The exchange
of personal information may be
more important than the legality of
the contract.
• Like most Asian countries, India
sees itself as different from the rest
of the region; not monolithic.
Indians will, almost always, protect
each other, their cultural values,
and their philosophies. It is
important for an American not to
impose his or her values on them.
Always follow their lead.
70. Business Etiquette (cont.)
• Stay out of political and historical
controversial discussions as much
as possible. Be aware of political
tensions between India and
Pakistan over Kashmir for
example.
• Respect for religious beliefs in
India is paramount. Hindu is
predominant while Islam is distant
second. Being aware of some
basic predominant religious beliefs
is essential to understanding any
people. Hindus in India hold a cow
in sacred esteem, Muslims don't
eat swine, and Muslims observe
certain holidays and pray so many
times a day facing a certain
direction. In some cases, Shariah
Law is practiced, whose tenets are
vastly at variance with Judeo-
Christian values practiced in the
west.
71. Presenting and Receiving Gifts
• When presenting gifts, take care
that the gift-wrapping is neither
black nor white as these are
believed to bring bad luck. On the
other hand, the colors that are
thought to bring good luck are
red, green and yellow.
• It is not customary in India to open
a gift in the presence of its donor. If
you receive a gift from your Indian
colleague, open it only after your
colleague has left the room.
• Acceptable gifts are
flowers, chocolate, perfume and
small electronic goods.
• You should refrain from giving gifts
that have a picture of a dog (dogs
are considered unclean animals).
• It is important to know that many
Indians do not drink alcohol or eat
beef.
After looking at the two maps, one can note that the division of the states also correlate to the ethnic breakdown in the country. When doing business in India remember that these states can be more different than alike. Make sure you understand each regions rules and regulations as each state can be quite independent. Some states welcome foreign business while others do not. Also of importance is the fact that India is recognized as a prime location for some American business to expand, but Indian business are also looking for American counterparts. http://www.nacbb.com/newsletters/2010-june-business-growth.html
This map demonstrates that India is one of the most dense countries in the worldhttp://www.theglobaleducationproject.org/earth/human-conditions.php
Note that the old Caste system is still gradually going away, but it is still in place. The government recgonizes that the consumer class will help india prosper and maintain its place in the world.
India has more than 15 native tongues, although English is the language spoken for national, political and commercial communication. On a world’s scale, Mandarin is the top language with 14.1% of the worlds population speaking it, Spanish is the next with 5.85% of the worlds population speaking it, third is English with 5.52%, and fourth is Hindi at 4.46%. Another interesting note is that Bengali is the 7th most widely used language in the world with 3.05% of the population. This ties into the earlier History of when Bangladesh split from India, but India still has strong ties to that area. (source Wikipedia)
On a worldly scale, the top four organized religion from the largest are 1. Christianity, 2. Islam, 3. Hinduism, and 4. Buddhism (SOURE wikipedia or toptens.com)Comparing the top ethnic groups in India in relation to the world’s top ethnic groups is tricky since areas have different definitions for ethnic groups vary depending on sources. But since China is the worlds most populus nation, many argue that Han Chinese is the world’s largest ethnic group. source for charts: cia.gov
Ethnic clashes do erupt from time to time in India,
Historical Legacy of Indias Maritime TradePrior to discovery of the Trans-Atlantic and East-West trade routes to America and the Indian-subcontinent, Indianmerchants from ancient Indian port cities like Surat, Cochin, and, Chennai have been known to be sailing on theirmerchant ships across Bay of Bengal to distant lands like Java, Sumatra in the Far East and across the Arabian Sea toPersia and East Africa actively trading in spices, silk, and other exotic commodities. Ports of Bharuch, Khambat, andDiu in The Gulf of Kutch and Gulf of Cambay have been famous as bustling centres of maritime trade andcommerce in the medieval period. The sea trade was undertaken using locally built ships, which successfully navigatedtheir way to distant lands and brought back ivory, gold, and diamonds in barter.Old Ports & Sea Routes of Medieval IndiaIndias famed riches have inspired many pioneering sea expeditions by western seafarers (including Vasco da Gamaand Marco Polo), which eventually led to discovery of America and East West trade routes. Indias golden age ofmaritime trade however, were short-lived as it came under increasing domestic political and economic instabilitycaused by internecine wars and feuds among princely kingdoms that ruled different parts of India. The weakeningof the political and economic fabric brought about erosion of traditional overseas trade and eventually led tocolonization of India. A strong merchant fleet and military control over coastline of India became Britains principalmeans to colonize India.Three hundred years of British rule, starting with establishment of East India Company in 1600 AD witnessed bothpositive and negative consequences for the Indian maritime industry sector. Importantly, the British colonialismbrought India in the ambit of global trade in the wake of industrial revolution, though the terms of trade were highlyweighed against Indias national economic interests. The industrial revolution in Europe had brought aboutrevolutionary changes in the shipping as in any other fields. The size of ships used in the overseas trade grew largerand larger and conventional wooden hull of the ship was soon replaced steel and the sail was replaced by steam anddiesel driven propulsion. These far-reaching technological developments resulted in the establishment of modernports like Mumbai, Kolkata and Chennai, which not only catered to colonial trade but also acted as the centres ofBritish colonial administration. The British merchant ships laden with cotton bales left Mumbai harbour and cameback with textiles manufactured by the Manchester Mills, which were dumped into the Indian market at cheap rates.In the post-independence period, a strong undercurrent of shipping nationalism thus, sought to give major strategicboost to the development of ports and encourage growth of a strong national merchant fleet through policies ofcargo support for Indian flagged vessels, especially to Shipping Corporation of India (SCI), cabotage protection forcoastal shipping and state canalisation of exports and imports through agencies like Indian Oil Corporation (IOC),State Trading Corporation (STC) and Minerals & Metals Trading Corporation (MMTC) etc. to achieve economicself-reliance and provide necessary economies of scale in development of basic infrastructure for Indias externaltrade. Considering, Indias import dependence on food grains, petroleum and capital goods, concomitant with thepolicy of the government to undertake core sector industry development (including shipping and shipyards) in thepublic sector, the government chose to actively intervene in the development of maritime sector and thereby try tomeet the expectations of national security and economic well-being.From the port pdf: There are more than 2,000 ports around the world, from single berth locations handling a few hundreds tonnesa year to multi-purpose facilities handling up to 300 million tons a year. More than 80 percent of trade with origins or destinations in developing countries, in tonnage, is through seas. Total world port traffic in 2001 reached around 11.93 billion tonnes. After an average of 3% annual growth ratesince 1990s, port traffic contracted for the first time in 15 years in 2001. World container port traffic has however,continued to expand at a rate of 15.4 per cent over the previous year, reaching 225.3 million TEUs. The ports ofdeveloping countries handled 94.2 million TEUs, or 42 per cent of the total container traffic. World port traffic is made of 45% of liquid bulks (mainly oil, petroleum products, and chemicals), for 23% ofdry bulks (coal, iron ore, grain, and phosphate), and for 32% of general cargo, including container cargo. World total freight payment as a proportion of total import value is reckoned at 6.2 per cent in 2000. The freightfactor was 5.2 per cent for developed market-economy countries and 8.8 per cent for developing countries. ForIndia, the figure is around 12%, showing inefficiencies in the logistics chain
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http://www.indiatradepromotion.com/an-overview-of-the-trade-agreements.htmlhttp://www.asiatradehub.com/india/roads.aspIndia has a vast network of National Highways (NHs) totaling to 34,298 km connecting important towns cities, ports and industrial centres of the country.Industrilation of the country has induced a traffic growth of 8-12 percent per year on many sections of National Highways and this growth trend is expected to continue. While the traffic on National Highways has been growing at a rapid pace, it has not been possible for the Government to provide matching funds due to competing demand from other priority sectors. This has led to a large number of deficiencies in the network. Many sections of the NHs are in need of capacity augmentation by way of widening grade separation construction of bypasses bridges and expressways etc. Many bridges are in need of replacement. The traffic movement on NHs is also hindered due to a large number of Rail-Road crossings where road traffic has to per force stop due to the frequent closures. The overall scenario on the highways has led to economic losses by way of longer turn around time for the vehicle fleeting rising vehicle operating costs and dissipation of human energy in the driving. This calls for urgent remedial measures.To motivate the inflow of resources for the development, maintenance and management of NHs and to improve their efficiency, productivity and quality of service and to bring in competitiveness in providing highway services to road users. The Government of India in consonance with its general policy of liberalisation/globalisation of Country's economy welcomes private investment in National Highways and hopes that this measure would help in improvements of the existing highways and bring in the latest technology and improvements of the existing highways and bring in the latest technology and improved management techniques. The users are already accustomed to pay fee for use of bridges on National Highways for the last two decades.Other highway projects have also been awarded to private sector recently and the experience gained in the process has been utilised in framing these guidelines. 2. DEMAND SCENARIO (A) Existing NetworkThe deficiencies in the existing National Highways network (as on 1.4.96) and estimated cost of their removal are as given below. These works are required to be completed within a period of 10-15 years.S.No.Category of WorkLength/No.Estimated Cost (1.4.96 prices)1Widening of single lane to two lanes including strengthening of pavement5200 km5200 Cr.2Widening of 2 lanes roads (4 lane or wider)14.000 km42.000 Cr.3Strengthening of pavement (2 lane equivalent) and construction of paved shoulders15.000 km9.000 Cr.4Construction of bypasses40 No.2.000 Cr.5Construction of Bridges4701.000 Cr.6Miscellaneous & Road Safety WorksL.S.5.000 Cr. Total64,2000 Cr.(B) ExpresswaysConstruction of Expressways on new Alignments2000 km16,000 CrTotal (A) + (B) 80,200 Cr. Say :80,000 Cr.
http://www.gallup.com/poll/154109/Nearly-One-Third-Indians-Suffering.aspSuffering levels among the most educated and the least educated Indians suggest the gaps between the haves and have-nots may actually be widening.Educational opportunities are not universal in India especially hard-hit are children living in rural areas.School attendance is decreasing in rural India.Roughly twice as many agricultural workers (38%) as white-collar workers (17%) rate their lives poorly enough to be considered suffering.x
http://www.businessweek.com/magazine/content/11_04/b4212013616117.htmSuch laws have long deterred foreign investors, hampered manufacturing, and prevented the nation of more than 1 billion people from experiencing an industrial takeoff similar to China's. In a speech to trade unions on Nov. 23, Prime Minister Manmohan Singh wondered if these laws had hampered India's growth. "Is it possible that our best intentions for labor are not actually met by laws that sound progressive on paper but end up hurting the very workers they are meant to protect?" he asked.
http://www.businessweek.com/magazine/content/11_04/b4212013616117.htmIndia's labor laws have their roots in the British raj and were last fully updated in the Industrial Disputes Act of 1948. India's IT companies, such as Tata Consultancy Services and Infosys, employ as many as 2.7 million.
http://ict4dblog.wordpress.com/2010/01/05/indian-it-sector-statistics-1980-2009-time-series-data/- The phenomenal growth rate of India’s software exports, with (ten-year rolling) average annual growth never dropping below 30%, and overall exports exceeding US$36bn in 2008/09:
http://ict4dblog.wordpress.com/2010/01/05/indian-it-sector-statistics-1980-2009-time-series-data/- The much higher growth rate of Indian IT exports compared to production for the domestic market. As a result, the share of exports in total IT output has risen from 19% in 1991/92 to 69% in 2008/09:
http://www.dnb.co.in/CTOBlackBook2009/Industry%20Overview.aspExports are the principal sales channel for the Indian IT-BPO industry. The Indian IT-BPO exports sector is predicted to record a revenue growth of 5.4% at USD 50.1 billion in FY10 over FY09In the export market, the IT services segment is estimated to have contributed the highest share of 54.5% in revenue in FY10, followed by the ITeS-BPO segment with a 24.8% share and the rest by software products & engineering services and hardware segment. BPO has evolved as the fastest-growing segment growing at CAGR of 19.2% during FY07 to FY10 driven by implementation of innovative delivery models, increasing service lines and tapping new verticals.
