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, set amidst the Rajasthan desert. It was here that Seth Shiv Narayan Birla started trading in cotton, laying the foundation for the House of Birlas. Through India's arduous times of the 1850s, the Birla business expanded rapidly. In the early part of the 20th century, our Group's founding father, Ghanshyamdas Birla, set up industries in critical sectors such as textiles and fibre, aluminium, cement and chemicals. As a close confidante of Mahatma Gandhi, he played an active role in the Indian freedom struggle. He represented India at the first and second round-table conference in London, along with Gandhiji. It was at "Birla House" in Delhi that the luminaries of the Indian freedom struggle often met to plot the downfall of the British Raj. Ghanshyamdas Birla found no contradiction in pursuing business goals with the dedication of a saint, emerging as one of the foremost industrialists of pre-independence India. The principles by which he lived were soaked up by his grandson, Aditya Vikram Birla, our Group's legendary leader.
Aditya Vikram Birla: putting India on the world map A formidable force in Indian industry, Mr. Aditya Birla dared to dream of setting up a global business empire at the age of 24. He was the first to put Indian business on the world map, as far back as 1969, long before globalisation became a buzzword in India. In the then vibrant and free market South East Asian countries, he ventured to set up world-class production bases. He had foreseen the winds of change and staked the future of his business on a competitive, free market driven economy order. He put Indian business on the globe, 22 years before economic liberalisation was formally introduced by the former Prime Minister, Mr. Narasimha Rao and the former Union Finance Minister, Dr. Manmohan Singh. He set up 19 companies outside India, in Thailand, Malaysia, Indonesia, the Philippines and Egypt. Interestingly, for Mr. Aditya Birla, globalisation meant more than just geographic reach. He believed that a business could be global even whilst being based in India. Therefore, back in his home-territory, he drove single-mindedly to put together the building blocks to make our Indian business a global force. Under his stewardship, his companies rose to be the world's largest producer of viscose staple fibre, the largest refiner of palm oil, the third-largest producer of insulators and the sixth-largest producer of carbon black. In India, they attained the status of the largest single producer of viscose filament yarn, apart from being a producer of cement, grey cement and rayon grade pulp. The Group is also the largest producer of aluminium in the private sector, the lowest first cost producers in the world and the only producer of linen in the textile industry in India. At the time of his untimely demise in 1995, the Group's revenues crossed Rs.8,000 crore globally, with assets of over Rs.9,000 crore, comprising of 55 benchmark quality plants, an employee strength of 75,000 and a shareholder community of 600,000. Most importantly, his companies earned respect and admiration of the people, as one of India's finest business houses, and the first Indian international Group globally. Through this outstanding record of enterprise, he helped create enormous wealth for the nation, and respect for Indian entrepreneurship in South East Asia. In his time, his success was unmatched by any other industrialist in India. That India attains respectable rank among the developed nations, was a dream he forever cherished. He was proud of India and took equal pride in being an Indian.
n of corporate social responsibility in India
From Wikipedia, the free encyclopedia
The evolution of corporate social responsibility in India refers to changes over time in India of the cultural norms of corporations' engagement of corporate social responsibility(CSR), with CSR referring to way that businesses are managed to bring about an overall positive impact on the communities, cultures,
societies and environments in which they operate. The fundamentals of CSR rest on the fact that not only public policy but even corporates should be responsible enough to address social issues. Thus companies should deal with the challenges and issues looked after to a certain extent by the states. Among other countries India has one of the most richest traditions of CSR. Much has been done in recent years to make Indian Entrepreneurs aware of social responsibility as an important segment of their business activity but CSR in India has yet to receive widespread recognition. If this goal has to be realised then the CSR approach of coroporates has to be in line with their attitudes towards mainstream businesscompanies setting clear objectives, undertaking potential investments, measuring and reporting performance publicly.
1 The Four Phases of CSR Development in India
○ ○ ○ ○ • •
1.1 The First Phase 1.2 The Second Phase 1.3 The Third Phase 1.4 The Fourth Phase
2 Current State of CSR in India 3 References
Four Phases of CSR Development in India
The history of CSR in India has its four phases which run parallel to India's historical development and has resulted in different approaches towards CSR. However the phases are not static and the features of each phase may overlap other phases.
In the first phase charity and philanthropy were the main drivers of CSR. Culture, religion, family values and tradition and industrialization had an influential effect on CSR. In the pre-industrialization period which lasted till 1850, wealthy merchants shared a part of their wealth with the wider society by way of setting up temples for a religious cause. Morover these merchants helped the society in getting over phases of famine and epidemics by providing food from their godowns and money and thus securing an integral position in the society. With the arrival of the colonial rule in India from 1850s onwards the approach towards CSR was changed. The industrial families of the 19th century such as Tata, Godrej, Bajaj, Modi, Birla, Singhania were strongly inclined towards economic as well as social considerations. However it has observed that their efforts towards social as well as industrial development were not only driven selfless and religious motives but also influenced by caste groups and political objectives.
In the second phase, during the independence movement, there was increased stress on Indian Industrialists to demonstrate their dedication towards the progress of the society. This was when Mahatma Gandhi introduced the notion of "trusteeship", according to which the industry leaders had to manage their wealth so as to benefit the common man. "I desire to end capitalism almost, if not quite, as much as the most advanced socialist. But our methods differ. My theory of trusteeship is no make-shift, certainly no camouflage. I am confident that it will survive all other theories." This was Gandhi's words which highlights his argument towards his concept of "trusteeship". Gandhi's influence put pressure on various Industrialists to act towards building the nation and its socio-economic development. According to Gandhi, Indian companies were supposed to be the "temples of modern India". Under his influence businesses established trusts for schools and colleges and also helped in setting up training and scientific institutions. The operations of the trusts were largely in line with Gandhi's reforms which sought to abolish untouchability, encourage empowerment of women and rural development.
The third phase of CSR (1960-80) had its relation to the element of "mixed economy", emergence of Public Sector Undertakings (PSUs) and laws relating labour and environmental standards. During this period the private sector was forced to take a backseat. The public sector was seen as the prime mover of development. Because of the stringent legal rules and regulations surrounding the activities of the private sector, the period was described as an "era of command and control". The policy of industrial licensing, high taxes and restrictions on the private sector led to corporate malpractices. This led to enactment of legislation regarding corporate governance, labour and environmental issues. PSUs were setup by the state to ensure suitable distribution of resources (wealth, food etc.) to the needy. However the public sector was effective only to a certain limited extent. This led to shift of expectation from the public to the private sector and their active involvement in the socio-economic development of the country became absolutely necessary. In 1965 Indian academicians, politicians and businessmen set up a national workshop on CSR aimed at reconciliation. They emphasized upon transparency, social accountability and regular stakeholder dialogues. In spite of such attempts the CSR failed to catch steam.
In the fourth phase (1980 until the present) Indian companies started abandoning their traditional engagement with CSR and integrated it into a sustainable business strategy. In 1990s the first initiation towards globalization and economic liberalization were undertaken. Controls and licensing system were partly done away with which gave a boost to the economy the signs of which are very evident today. Increased growth momentum of the economy helped indian companies grow rapidly and this made them more willing and able to contribute towards social cause. Globalization has transformed India into an important destination in terms of production and manufacturing bases of TNCs are concerned. As Western markets are becoming more and more concerned about and labour and environmental standards in the
an NGO that focuses mainly on bringing about improvement in the lives of the poor and needy . The basic objective of CSR in these days is to maximize the company's overall impact on the society and stakeholders. Also Corporates increasingly join hands with Non-governmental organizations (NGOs) and use their expertise in devising programs which adress wider social problems. many other organizations have been doing their part for the society. Companies have specialised CSR teams that formulate policies. CSR programs ranges from community development to development in education. The SAP Labs Center of HOPE in Bangalore was started by this venture which looks after the food. corporates like the Tata Group. CSR has gone through many phases in India. the CSR programs of corporations like GlaxoSmithKline Pharmaceuticals’ focus on the health aspect of the community. building schools and houses. practices and programs are being comprehensively integrated by a increasing number of companies throughout their business operations and processes. The programs are put into practice by the employees who are crucial to this process. a more comprehensive method of development is adopted by some corporations such as Bharat Petroleum Corporation Limited . They set up health camps in tribal villages which offer medical check-ups and treatment and undertake health awareness programs. to name a few.developing countries.Through donations and charity events. the Aditya Birla Group. and Indian Oil Corporation. environment and healthcare etc. Ever since their inception. These programs are often determined by social philosophy which have clear objectives and are well defined and are aligned with the mainsteeam business. strategies and goals for their CSR programs and set aside budgets to fund them. Provision of improved medical and sanitation facilities. This is exclusively undertaken by SAP India in partnership with Hope Foundation. Some of the non-profit organizations which carry out health and education programs in backward areas are to a certain extent funded by such corporations. and Hindustan Unilever Limited. The ability to make a significant difference in the society and improve the overall quality of life has clearly been proven by the corporates. clothing. CSR is not a new concept in India.  Current State of CSR in India As discussed above. Not one but all corporates should try and bring about a change in the current social situation in India in order to have a effective and . shelter and medical care of street children. CSR policies. indian companies who export and produce goods for the developed world need to pay a close attention to compliance with the international standards. For example. and empowering the villagers and in process making them more self-reliant by providing vocational trainig and a knowledge of business operations are the facilities that these corporations focus on. defending attacks and increasing business competitiveness. On the other hand. Maruti Suzuki India Limited. have been involved in serving the community. a lot of work is being undertaken to rebulid the lives of the tsunami affected victims. For example. A growing number of corporates feel that CSR is not just another form of indirect expense but is important for protecting the goodwill and reputation.
pearl and tortoise shells were produced in South India. well-maintained roads linking various parts of the country facilitated domestic trade has been mentioned. embellished with inlay work was a very popular item for expert. India’s . River routes also promoted trade between different parts of the country. India was well known for its textiles one of the chief items of export. covering the two hundred years of Mughal rule. Trade history of India also shows hardwood furniture. Although the expensive carvings and inlays were inspired by the ornate Mughal style. These towns grew into trade and industrial centers which in turn led to the general prosperity. Indian trade history reflects that despite the frequent political upheavals during the 12th to the 16th centuries. Indian arts and crafts patronized by Indian rulers. A larger variety of ornamental work in cut stones. manpower and money to initiate extensive social change will put the socio-economic develpment of India on a fast track.lasting solution to the social woes . strategic thinking. Top of Form • • • • Bottom of Form Home Site Map Bookmark Us Rss Feeds History Of Indian Trade India is looked upon as a country with immense resources available through its length and breadth. Pearl fishing was a major industry here. Descriptions of the wide variety of excellent goods sold in the Indian markets of those days are found in the records of foreign travelers. India was famed for her fabulous wealth ever since the ancient times till the establishment of the British Empire. From the 16th to the 18th centuries. Partnerships between companies. History of Indian trade has extensive accounts about domestic trade in medieval India by the foreign travelers. Carpets were used both in ancient and medieval India. Indian urbanization saw further growth. the country was still prosperous. were unmatched for their beauty and skill and were very popular in the European countries. The political and economic policies followed by the Muslim rulers propagated the growth of towns in various parts of the country. The objective of this brief paper is to go through the timeline of history of Indian Trade right from ancient times till today. Textiles from Gujarat were sent to the Arab countries and to South-east Asia. Different communities were known to dominate trade in various parts of the country. With Delhi as a major trade centre. But the skill of carpet weaving touched new heights only during the Mughal era in the 16th century. NGOs and the government should be facilitated so that a combination of their skills such as expertise. when it has a foothold in the major and the not so major economies of the world. ivory. the furniture was modeled on the European design.
thus creating awareness and to higher consumption patterns for all kinds of goods across all sections of the society. Indian khadi cotton. The country has realized that at the end of the day. The economic levels have improved in the urban and semi-urban areas. By the time India gained Independence from the Britishers in 1947. the political conditions then brought about a drastic change in the situation.Colonial. Pre Colonial: The economic history of India since Indus Valley Civilization to 1700 AD can be categorized under this phase. It had very good trade relations with other parts of world [editor's note: India developed the way most other nations did: by peaceful . The magnitude of India’s foreign trade during the medieval period can only be imagined. the economy was entirely geared to only trade. maximizing use of one’s own resources is what makes all the difference. is going to touch new heights in coming years. There were hardly any manufacturing facilities to suffice the needs of the growing Indian population. Foreign trade was in the hands of both local and foreign merchants. the state coffers were amply stocked with gold and silver. The past couple of decades in the history of Indian Trade have seen the country struggle to create manufacturing capacities across the board to be self sufficient. With huge earnings from her exports of various commodities. It will grow to 60% of size of the US economy. the Global Investment Bank. Indian trade has benefited and so has the world. Bombay Duck. by 2035 India would be the third largest economy of the world just after US and China. the third largest economy in the world. This period was marked by decline of the Mughal Power. Indian spices and dry fruit are just a few of the famous gifts India has given to the world. Arab traders shipped Indian goods to European countries through the Red Sea and the Mediterranean ports. as revealed by the Indian trade history. Darjeeling tea. During Indus Valley Civilization Indian economy was very well developed. Colonial and Post Colonial. As predicted by Goldman Sachs. The government has been focusing on the same to enable broad basing the development to move the economy from an underdeveloped status to being a developed nation. The rise of the British power in the mid 18th century dealt a fatal blow to the prosperity of the country. Indian trade history is remarkable. The history of Indian economy can be broadly divided into three phases: Pre. Literacy is penetrating deep in to even the far reach areas. in terms of purchasing power. Menu • • • • • • • • • Home Indian Trade Introduction Indian Trade History India Trade Agreements Indian Foreign Trade Policy Indian Export-Import Policy Indian Top Imports & Exports Trade Growth & Integration Union Indian Budget An Economic History of India from 1947-2011 India economy. India today stands at a over a trillion economy. when we peep in the trade history of India. But India was always able to enjoy a favorable balance in her trade relations with other countries. Kashmiri carpets. However in the 18th century.exports were seen to far exceed her imports both in the number of items as well as in volume. Promoting the availability of goods from different parts of the world has seen a rise in more trade with other countries. This booming economy of today has to pass through many phases before it can achieve the current milestone of 9% GDP. The British imposed heavy duties on both imports and exports in order to disrupt the foreign trade relations of India with the other countries.
and a multitude of services.60 percent in the last quarter. From the time India got her independence to the present day. was operating in the Indian subcontinent since the turn of the 20th century.3% in 1700 AD to 3. reducing poverty by about 10 percentage points. More here. the then prime minister of India chose to stay neutral. Then came the phase of Colonization.com circa 2008: US-India Trade Relations: The Importance of Partnership India and US trade relation has seen its ups and downs. Services are the major source of economic growth. modern agriculture. by the people and for the people” was expected to come close to this new democratic nation on the rise. American companies like Citibank and IBM India. India’s GDP Growth Rate The Gross Domestic Product (GDP) in India expanded at an annual rate of 8. the country that defined democracy as “of the people. He started the Non-Alignment movement. according to the World Bank. . a wide range of modern industries. During this phase India’s share of world income declined from 22. which was not viewed quite well by the US government. The period from 1960s to 1970s was the most turbulent time for Indian and American manufacturers. which is evident from the coins of various civilizations found at the site of Indus valley. each village in India was a self sufficient entity.8% in 1952. India’s diverse economy encompasses traditional village farming. The relation during this period was more of a donor-receiver as India became one the of the biggest US aid receiving countries in the world.09% of the world economy. the process of rebuilding the economy started. The personal dislike of the then government officials in both the countries hampered the foreign trade between them. The arrival of East India Company in India ruined the Indian economy. Before the advent of East India Company. Each village was economically independent as all the economic needs were fulfilled with in the village. As India became independent. a wholly owned subsidiary of the main IBM World Trade Corporation. The excessive licensing and permit system of the country hampered the American exporters as well as importers. The leaning of US towards Pakistan during the Bangladesh War of 1971 did not go down well with the Indian government. – Source from foreigntradeexchange. India Gross Domestic Product is worth 1296 billion dollars or 2. Even before India got her freedom from the British. wars and invasions]. After India got independence from this colonial rule in 1947. USA and USSR. handicrafts. as the countries of the world started to group themselves around the two superpowers. There was a two-way depletion of resources. there have been so many twists and turns that it can put even the highly watched soap operas to shame. British used to buy raw materials from India at cheaper rates and finished goods were sold at higher than normal price in Indian markets.settlement. But this was the time when Indians went to US to study and gradually build the Indian Diaspora in that country. accounting for more than half of India’s output with less than one third of its labor force. The economy has posted an average growth rate of more than 7% in the decade since 1997. For this various policies and schemes were formulated. However.
organic chemicals and machineries like taps. GSP or Generalized System of Preference is a list of product specific to a country. iron/steel products. which lifted some of the sanctions boosting the trade relationship between the two countries. Indian exporters were thrilled by the demand of Indian products specially shrimp and processed stones in the US market. IBM. etc. The government changed in both countries but the reform and liberalization started by the previous government continued. One of the biggest exports of India is perhaps in the IT sector. It sought to reduce foreign investment to 26%. which affected both American exporters as well as Indian exporters. The Main Items of Trade The first product on the list that has benefited Indian exporters very much is Jewelry. American exporters made $2. hard work. A New Beginning The new millennium brought a new chapter in the Indo-US trade relationship. was then the finance minister under the Narshimha Rao led government who started the process of liberalization. The fact that most Indians can speak and converse in proper English have turned cities like Bangalore. and technological prowess of Indians. Indian exporters as well as importers also cheered the changes the government started to implement. worked gold and diamond jewelries textiles.The nadir in the trade relation between India and US came in the mid-1970s when the infamous India’s Foreign Exchange Regulation Act (FERA) came into being. Hyderabad and Gurgeon into “the back office of the world”. All these initiatives bore fruit and started a rapid increase in trade volume between the two countries.663 respectively. The Bush government in 2001 restored 42 products in the GSP for India. a joint Indo-US Working Group on Trade was established with participation on the ministerial level from both sides. The visit of President Bill Clinton saw the signing of the historical “Vision Document”. the Indian government began the long needed economic reforms of its present laws. Intel. the two-way trade amount would be something near $18 billion dollar! The next government change in both the countries continued with the improvement of the trade relation between USA and India. and that too only in goods! If we add the software export.686 and $3. These are just the material things that are being exported by India. India has emerged as a software giant thanks to the ingenuity. As cold war raged on. Since the last decade. and 3M have made India one of their hottest destinations. but made its foray into the US market as well. That is why an amendment was brought and sanctioned by President Clinton. For President George Bush. The license policies were heavily reviewed much to the comfort of the companies doing business with India. textile floor coverings. and the several section of the market was opened for direct investment by American investors.551. which boosted international trade. Clinton government was quick to notice the growing economic power and India and identified it as one of the top 10 emerging market. Mr. Manmohan Singh. IBM along with Coco Cola had their license revoked by the Indian minister George Fernandez. the Indo-US bilateral trade reached a staggering $21. Wipro. These have doubled the volume of foreign trade between the two countries. and others have not only developed a national presence. Indian manufacturers are bringing in the much needed foreign exchange by exporting precious stones. The test brought a host of sanctions. The focus of the group was to regularly discuss on issues important to the improvement of the trade relation between USA and India. Another big area where Indian exporters are thrilled with the rise of indo-us trade relation is agriculture and fisheries. valves.68 billion. The trade relationship between India and US rode rapidly as American manufacturers found the burgeoning market of India as its middle class began to rise rapidly. India was a natural partner for USA as it was the world’s biggest democracy! The trade relation grew at an unprecedented rate and by 2004. As a result. While in 1993 Indian exporters brought in $4. The export of shrimp and other seafood have risen from $188 million in 1999 to $270 million in 2000. The nuclear test in 1998 saw a new change in relationship between USA and India. the relationship between US and India remained somewhat frosty. The same figure in 2000 was $10. changes. The present prime minister of India. As a part of the agreement. which IBM did not adhere to. During the same time. Through outsourcing the growing IT sector of India and companies like Infosys. The amount has been going up since then as more and more Indian exporters comply with stringent safety and .761. USSR started to disintegrate and ultimately collapsed. IT giants like Microsoft. it was seen that the Glenn Administration Sanction had a negative impact on the American exporters and manufacturers. which enjoys reduced duty access to the US market. In the long run. The thawing of the relationship started in the last decade of the 20th century as the former alley and trading partner of India. transmission lines.
India only shares . As a result. In fact.3 percent on a per capita basis. Both the countries are keen on improving the amount of international business transaction between them. Ford have all scripted their success story in the Indian market. A high rate of investment was a major factor in improved economic growth. Similarly. Whirlpool. and Yum! Group have a substantial presence in the Indian market. Besides these. The Antidumping & Countervailing law of USA is hurting many Indian manufacturers. Furthermore. high-end cars. The middle class of India today is flushing with money like never before. but in the context of overall international FDI done by USA abroad. The company is expecting an order of anything between $86 billion to $105 billion! The growing middle class. In matter of doing business with India.quality standard of US Food and Drug Administration. The red tape and multiple layers of permits and certifications frustrate the American investors who are used to working fast. which is one of the latest exports of India that have thrilled the American importers due to their demand. the main contention against America and other developed nations is the subsidy they give to their farmers. and underuse of capacity were contributing factors. The same is between India and United States of America. it held the 24th position among US exporters. is a great market for USA exporters and manufacturers. the economy grew at an annual rate of 5. Part of the adverse Indian experience was explained by investment in large.25%). The high tariff barriers in some sectors.50%. food products have to go through stringent checks and quality standards of Indian government forces. As for Indian exporters. which is nearly equal to the population of the USA. precious stones and metals (9. flavor.24% as of 2002. Industry grew at an annual rate of 6. delayed completions. Companies like Proctor and Gamble. India. for example. while Indian exporters stood at the 18th position. but by the mid-1980s further growth in private savings was difficult because they were already at quite a high level. which is not WTO-consistent and poor enforcement of Intellectual Property Rights Protection. Many American manufacturers give up hope of conducting business with India. the aviation industry. Indian mangoes. many FMCGs have found success by adopting unique business methods like using the small sachet of popular items like shampoo. and detergent. Even luxury brands are eyeing their share of the market whether it is designer clothes. especially in the biotechnology field. or the latest gadgets. optical instruments and equipments (also 7%). Though at present USA is the second largest investor in India. cost overruns. capital-intensive projects. indicating a lower rate of return on investments. or 3. … Future Trade Between India [and the] United States No international trade between two countries can be without hiccups. the caps in FDI in certain sectors like banking. organic chemicals (7%). required a higher rate of investment to attain comparable economic growth than did most other low-income developing countries. Coco Cola. The fact that many commodities. as claimed by the Indian Minister Kamal Nath. toothpaste.20%). however. Beside these popular brands. from indianchild.6 percent and agriculture at a rate of 3. India’s patent law. but some barriers remain.5 percent. General Electrical. which occupies 10. got a further boost due to the new Boeing orders in both passenger and freighter category. during the late 1980s India relied . However. other agro-based food products produced in India have also captured the US market. As for US exporters. long-gestating. are much better in taste. especially. Investment went from about 19 percent of GDP in the early 1970s to nearly 25 percent in the early 1980s. retail and insurance does not go well with companies doing business with India. From FY 1980 to FY 1989. makes many American manufacturers. The slow progress of economic reforms especially in these sectors is holding back the much-needed FDI that can flow from US to India. It puts the economically weak farmers in India in a poor position. It has helped them to capture the vast rural market of India where the demand is good but the purchase power of the people is very limited. distilled spirit and wine frustrate USA exporters. such as electric power. Mention can be made of Indian mangoes. and aroma than Mexican or South American varieties that were previously found in the US market. irrigation. Subway. Pepsi. multinational companies like McDonalds. and infrastructure. – More here. Private savings financed most of India’s investment.6 percent. they have seen a steady rise in the demand for Engineering goods and machinery including electrical goods (30.com: India’s Growth Since 1980 9/1995 edited by Daniel Knight The rate of growth improved in the 1980s. think twice before entering the market.
8 percent. including trade. In FY 1991. Steel production rose from 1. white-collar worker. fishing. About 10 million Indians are considered upper class. Punjab.7 million tons a year. lawyer. utilities. Official estimates of the proportion of the population that lives below the poverty line tend to vary sharply from year to year because adverse economic conditions. Although the population increased by 485 million between 1951 and 1991.increasingly on borrowing from foreign sources (see Aid. seminomadic shepherds. The steady increase in the proportion of services in the national economy reflects increased market-determined processes. this ch. accounted for 32. Farmers and other rural residents make up the large majority of India’s poor. 7).5 million tons a year to 14. By the early 1990s. In the 1980s. The Indian government’s poverty line is based on an income sufficient to ensure access to minimum nutritional standards. or 220 million people. it was estimated that 332 million people. and quarrying.. Bihar. The number of kilowatt-hours of electricity generated. This commitment to economic reform was reaffirmed by the government that came to power in June 1991. motorcycles.). 10). especially rises in food prices. including agriculture. for example. but low productivity and intermittent employment keep incomes low. Life expectancy increased from twenty-seven years to fifty-nine years. ch. ch. construction. and public. In FY 1991. domestic and foreign businesses hoped to . transportation. Poverty is most prevalent in the states of Orissa. fishing. the growth of the middle class was reflected in the increased consumption of consumer durables. ch.8 percent of GDP in FY 1991 (see table 17. such as the spread of rural banking. mining. considerable dualism remains in the Indian economy. communications. are capable of lowering the standard of living of many families who normally live just above the subsistence level. The bulk of the poor work. although it is possible that the poorer half of the population improved its position slightly. This trend led to a balance of payments crisis in 1990. 10). services. telecommunications. ch. and cottage industries. 2). lived below the poverty line. Officials and economists make an important distinction between the formal and informal sectors of the economy. or land-owning farmer. and government itself. or migrant workers. and automobiles. and in FY 1989 it was estimated that about 26 percent of the population. Studies have suggested that income distribution changed little between independence and the early 1990s. major financial and commercial businesses. Typical middle-class occupations include owning a small business or being a corporate executive. The country produced space satellites and nuclear-power plants. contributed 39. The formal economy consists of large units in the modern sector for which statistical data are relatively good. Poverty was reduced during the 1980s. and Madhya Pradesh. and even most persons above the poverty line have low levels of consumption compared with much of the world. such as defense spending (see Agricultural Credit. and Jammu and Kashmir. Appendix). 7. was 27. economy is largely rural and encompasses farming. Himachal Pradesh. and such publicsector enterprises as railroads. increased more than fiftyfold. and utilities. and roughly 300 million are part of the rapidly increasing middle class. this ch. Some own very small amounts of land while others are field hands. The informal. However. lived below the poverty line. The urban poor include many construction workers and petty vendors. ch. The greatest disappointment of economic development is the failure to reduce more substantially India’s widespread poverty. such as televisions. and government activities. economic changes led to the growth in the number of Indians with significant economic resources.and private-sector services. real estate and finance. which contributes more than 50 percent of GDP. and least prevalent in Haryana. India’s primary sector. refrigerators. It also includes petty vendors and some small-scale mechanized industry in both rural and urban areas. the Indian economy was transformed between 1947 and the early 1990s. physician. and its scientists and engineers produced an atomic explosive device (see Major Research Organizations. Estimates in the late 1970s put the number of people who lived in poverty at 300 million. Uttar Pradesh. Slower economic growth and higher inflation in FY 1990 and FY 1991 reversed this trend. or nearly 50 percent of the population at the time. including manufacturing. The bulk of the population is employed in the informal economy. The modern sector includes large-scale manufacturing and mining. Defense Spending. forestry. the contribution to GDP of industry. in order to receive new loans. The size of the agricultural sector and its vulnerability to the vagaries of the monsoon cause relatively large fluctuations in the sector’s contribution to GDP from one year to another (see Crop Output. the availability of food grains per capita rose from 395 grams per day in FY 1950 to 466 grams in FY 1992 (see Structure and Dynamics. or unorganized. Space and Nuclear Programs.4 percent. the government had no choice but to agree to further measures of economic liberalization. In the early 1990s. Despite a sometimes disappointing rate of growth. forestry. or 38 percent of the population.
to the point of stupidity. and the price of oil soon doubled. The problem came to a head in August 1990 when Iraq invaded Kuwait. In March 1995. Housing and the ancillary utilities of sewer and water systems lag considerably behind the population’s needs. especially in the area of foreign trade. India’s cities have large shantytowns built of scrap or readily available natural materials erected on whatever space is available. The central government fell in November 1990 and was succeeded by a minority government. Inflation peaked at 17 percent in FY 1991. Administrative controls and other aspects of government policy have discouraged many private investors from constructing housing units. which helped fuel economic growth. ch.3 percent. However. 3. which fell from 6. The balance of payments crisis of 1990 and subsequent policy changes led to a temporary decline in the GDP growth rate.). This increase was attributed to a sharp increase in prices and a shortfall in such critical sectors as sugar. There is also considerable concern that liberalization will reinforce class and regional economic disparities. Such dwellings lack piped water. including sidewalks. cotton. India was probably on the short list of almost every economist outside of India of the countries with the worst economic systems. ch. oppose liberalization. and oilseeds. In addition. ch. Liberalization in the Early 1990s Increased borrowing from foreign sources in the late 1980s.” The policies implemented by the Government of India before the last decade were brilliant only in maintaining the power and influence of the bureaucrats. There has been some official allegiance to socialism with a goal of achieving it through Stalinist central planning. considerable progress was made in loosening government regulations. there was violence over two domestic issues: the reservation of a proportion of public-sector jobs for members of Scheduled Castes (see Glossary) and the Hindu-Muslim conflict at Ayodhya (see Public Worship.take advantage of India’s economic liberalization to increase the range of consumer products offered to this market. Political Issues. 8). India had and probably still has a parasitical class of politicians and bureaucrats that micromanage the economy in the interests of their class. labor unions. this ch. The direct economic impact of the Persian Gulf conflict was exacerbated by domestic social and political developments. Many powerful vested interests.9 percent in FY 1990 to 1.edu: The Economic History of India and Economy of India [from 19511996] circa 1997 by Thayer Watkins The Economic System of India Before the last decade. As a result. and much of the bureaucracy. The bureaucracy has been rather competent in generating excuses for the failure of their policies.1 percent in FY 1991. Many analysts agree that the poor suffer most from the increased inflation rate and reduced growth rate. The fact that the result has been some horrible mixture of state capitalism and moribund corporatism is usually attributed to incompetence and ineptitude on the part of the bureaucracy. They hypocritically aver that they are doing what they are doing in the interest of the people of India. the 1990′s.5 percent in FY 1993. led to pressure on the balance of payments. India remains one of the world’s most tightly regulated major economies. and new areas were opened to private capital. One of those exceuses has been that there is a Hindu rate of growth that is significantly lower than the rate of growth that . sewerage. reaching 11 percent in late FY 1994.9 percent in FY 1989 to 4. fell to 9. India made various agreements with the International Monetary Fund (IMF–see Glossary) and other organizations that included commitments to speed up liberalization (see United Nations. many Indian workers resident in Persian Gulf states either lost their jobs or returned home out of fear for their safety. and the country found it increasingly difficult to borrow internationally. The cumulative impact of these events shook international confidence in India’s economic viability. and electricity. but the efforts have fallen far short of demand. 9). – Source from sjsu. In the early 1990s. Judged with respect to an promoting the welfare of the Indian people those policies were ridiculously bad. The Indian American economist Jagdish Baghwati of Columbia University remarked that he agreed with the view that “India’s misfortune was to have brilliant economists: an affliction that the Far Eastern super-performers were spared. In the early 1990s. thus reducing the flow of remittances (see Size and Composition of the Work Force. including private firms that have benefited from protectionism. Many restrictions on private companies were lifted. the estimated growth rate for FY 1994 was 5. The government has attempted to build housing facilities and utilities for urban development. and then accelerated again.
The two makes of automobiles produced in India. The fertilizer subsidy may have been of greater benefit to the wealthier farmers than to the poorer farmers. or half the rate of growth. Indians out from under the oppression of the bureaucracy of the Indian Government have succeeded spectacularly in professions and business. Indira Gandhi. The second five year plan (1956-1961). under Nehru’s daughter. It also might require the production of certain goods such as cheap cloth for the poor. Government planning also involved requiring businesses to produce in particular areas. copied from models of the British Austin and Hillman of the 1950′s. The large enterprises in seventeen industries were nationalized.1 percent per year . The net effect of the Government programs was to take away resources from agriculture in the countryside to give it to favored businesses in the cities. for producing new products or expanding production capacities. The first five year plan (1951-55) called for the planned development of only a few industries. obsolete products. The Government of India generally takes credit for growth. illegally. Nehru chose the goal of economic self-sufficiency with economic development to be achieved by central planning modeled on that of the Soviet Union. When a business was hopeless an owner might take away. the bureaucratic control over the economy. The Indian Economic Plans had to be financed and this often meant taking resources away from agriculture and giving them to pet industries that were not viable on there own. These programs to help agriculture and the countryside generally came from resources which the Government took away from agriculture and the countryside.C. the Green Revolution. busineeses had to have bureaucratic approval for laying off workers and for shutting down. The policies stifled economic growth and India. was more inteventionist. One can imagine how chaotic and unproductive a business would be under such conditions. the ones that private industry had not developed for one reason or another. Mahalanobis’ work. When a business was losing money the Government would prevent them from shutting down and to keep the business going would provide assistance and subsidies. This development probably put an end to famine from natural causes. India’s output did grow but not as much as did that of other countries in the region. usually economically backward areas. The followi shows the magnitude of the shortfall in growth that India’s oppressive system is responsible for. the product of P. Probably the misguidance of India development can be attributed to India’s first prime minister. It tried to implement the elements of British socialism and combine them with the tenets of Mahatma Gandhi. Jawarharlal Nehru. remained unchanged for more than forty years. Ultimately this meant starving agriculture to feed inefficient industries the Government favored. What the bureacrats dare not say is that in maintaining a pool of economic rents the bureaucrats’ policies were an outstanding success. all the equipment that could be moved and disappear themselves. particularly luxuries. In the first five year plan the other industries were left to the market.other countries could achieve. with its high level of population and poverty. With the top performers achieving a growth rate of industrial production of about ten percent while India achieved a growth rate of only at most about five percent the cost of the License Raj to India’s growth rate was about five percent. One of the most wonderful things to happen to the world was the genetic development of high-yielding grain varieties. but when India’s performance is compared to that of other countries one sees that the Government’s contribution to growth was negative. could ill afford low rates of economic growth. The planning and adminstration of the economic did not emerge full blown. It sought to eliminate the importation of consumer goods. labor intensive enterprises. India got domestic production but it was production of low quality. the Government tried to eliminate poverty by promoting small. License were required for starting new companies. Such a program was not likely to alleviate poverty and so in 1971. by means of high tariffs and low quotas or banning some items altogether. Between 1970 and 1989 agricultural production in India did grow but the rate of increase was only 2. The disappointing economic progress in India up to 1990 cannot be attributed to any shortcoming in talent among the Indian people or the impediments resulting from Indian cultures. This is when India got its License Raj. By cutting off imports India gave a protected market to domestic producers. In such cases the Government would try to keep the business functioning by means of subsidies to the employees. When the effects on agriculture and the countryside became significant the plan added programs to help the countryside (labor intensive small businesses) and programs to aid agriculture such as a fertilizer subsidy. Not only did the Indian Government require businesses get bureaucratic approval for expanding productive capacity.
343 crores in 2006-07 as against Rs. after the US and the European Union. its largest trading associates outside of Latin America. India’s export of meat and meat products reached Rs.7%. The main markets for Indian bovine meat are Malaysia. from globalpolicy.org: India’s Exports of Milk and Meat Products 12/17/2007 India’s exports of milk and milk-based products showed a significant drop of nearly 55% during the past year and was estimated at Rs.5%. Mauritius. On the other hand butter.whereas over the same per period the annual rates of growth of farm output in Indonesia. 4. The demand for bovine meat in international market has sparked a sudden increase in the meat exports from India. – More here. sugar & steel are the fastest growing Indian exports to the U.6% and 4. Processed egg products accounted for about 48% of the exports. ghee and other milk fat together accounted for just over 10% of the net milk and milk product exports from India during 2006-07. respectively. such as information technology and specialty chemicals. decreased by half contributing only 1% of the total exports. 78 crores in 2001-02. The exports of skimmed milk reached Rs. and Gulf countries. which has been keen to develop markets outside the US and the EU. Honey exports however. from vuatkerala. with its second highest growth rate among the developing nations and a population of over one billion. 1. Philippines. For Mercosur. eggs.” the official spokesman for the Indian Ministry of Commerce said in New Delhi. India’s exports of poultry products attained a peak in 2006-07 (Rs. “India is a significant point of reference for Mercosur. The procedure for a Preferential Trade Agreement (PTA) and a subsequent Free Trade Agreement (FTA) is likely to be concluded by August 2003. in shell. reliable and enduring ground rules to further the development of trade and investment”. 436 crores in 2006-07. fresh.org: Free Trade Between Mercosur and India 7/18/2003 by Ranja Sengupta. while military products. the Philippines and Thailand were 3. artwork & antiques are leading imports into India from America. from: suite101.7%. Malaysia.358 crores during 2006-07 followed by Silk (Rs.S. egg and meat. 318. Frozen bovine meat dominated the exports with a contribution of over 97%. and not solely on account of the extraordinary growth that we have witnessed in some sectors. – Complete report here. butter oil. edited by Daniel Knight A framework trade agreement was signed between India and the Mercosur trade block of Latin America on the 17th of June in Asuncion. For India.753 crore) which accounted for over 30% of the export animal products other than milk. . India. Again the cost of the License Raj to growth in India was about half the rate of growth. this offers major trading possibilities since Mercosur is the third largest common market in the world. Birds. As may be seen from the following table. Tariff concessions on a reciprocal basis and the mutual reduction of Customs duties should follow soon after. can offer a market which is both large and possesses considerable buying power.3 crores) as compared to previous years. Paraguay. which together accounts for nearly 78% of net milk and milk products exports during the year 2006-07. 3. 3. This sets in motion the process that will ultimately establish a ‘Free Trade Area’ between the Indian market and Mercosur – the Southern Core Common Market in Latin America. – More here. preserved or cooked constitute the largest segment with about 50% share. The protocol calls for “clear-cut. this also poses exciting opportunities.com Most Popular Products Traded Between India & America 6/29/2007 by Daniel Workman. Concentrated milk and cream products such as skimmed milk continues to be the largest item of export.224 crores during 2006-07. Among exports of other animal products other Raw skin/hide accounted for over 60% of exports earning Rs. 3. prior to the actual signing of the agreement. “The signing of the framework agreement will pave the way to enter into Preferential Trade Agreement as the first step and ultimately to negotiate a Free Trade Agreement in long-term interest. Meat products accounted for very low share of around 1%. The cost of the License Raj more importantly is in the slower pace of alleviating poverty. edit by Daniel Knight Zinc.” the Paraguayan foreign minister said.
exports.3 million (3. Generators. Industrial organic chemicals … $398.India exported US$21.5 billion (16.5% in 2006 – down from the 14.0%.9%) 8.4%.2 million (3. Indian imports from the U.3 million (up 286%) 4.1% from 2005 and up 84.7%) 5. trade deficit with India increased 8.2 million (2.8 billion worth of merchandise to the United States in 2006. up 37.4 billion (11.g.7%. Zinc … US$42. up 146% since 2002. Non-cotton household furnishings & clothing … $668.S.8 billion in American imports from India in 2006. Medicinal. up 52% from 2002.9%) 10. rose 26.1 billion in 2006.S. up 11. up 47.3 billion (14. up 144%) Fastest-Growing Indian Exports to U. up 13.1%.4 million (up 226%) 5.1 million (up 25. Industrial machinery … $431. India’s Exports to U.6 million (3. watches.5 million (2.000% from 2005) 2. Precious metals … $12.9%. Rubber … $11. up 25. Jewellery (e. dental and pharmaceutical preparations … $799.5 million (1. up 19. up 16. Sugar … $3.400%) 3. rugs) … $602.S. the following product categories had the highest values.8%.1% of India to U.3 million (up 192%) . In terms of the merchandise flow between the two countries. 1. Semi-finished iron & steel products … $735.1%.3% deficit increase in 2005 from the year earlier.4 million (up a staggering 51.5% from 2005) 2.S. America’s trade deficit with India was $11.6%) 9.S.3% to $10. Cotton household furnishings & clothing …US$3.8%. Textile floor coverings (e.8%.Source . up 101. transformers & accessories … $398 million (1. 1. Below are American imports from India in 2006 with the highest percentage sales increases from 2005. rings) … $2.8%) 3. up 5.g. Of the $21.7 billion in 2006.4%) 4.1%) 6. Steelmaking materials … $3. Diamonds … $3.7% in just 4 years. The U. down 14%) 7.
says that Indian markets may not be as affected by the subprime crisis as they would be if there was a recession in the US. Other Indian companies looking at borrowing outside will also have more difficulty. India may not suffer much of an impact. Pai Panandikar. Funding in sectors like real estate are showing signs of drying up altogether. But if it is long and deep. D. If it is shallow (and the US comes out of it quickly).M. Asian imports will also slow down.” he says. it is bound to have an effect on the Indian economy. RPG Foundation chairman and economist. ”This will affect our rate of growth. When big countries hit a recession. And don’t forget the liquidity crunch – India Inc is already having difficulty in raising funds.com: Global Financial Crisis[: What Is] India’s Status? 10/5/2008/11:44 P. “Countries in the western world are net importers. He adds that Europe is on the brink of recession. As per S&P India Principal Economist.K.Exchange rate of the Indian Rupee from 10/3/2006 to 12/3/2007 from livemint. India’s exports will be hit. Market sentiments remain weak as FIIs pull out money and uncertainty rules. but more about access to credit and the slowdown it is causing in America and other European economies. . IST by Taneesha Kulshrestha New Delhi: The main concern for the emerging market economies (including India) may not be the direct exposure to global financial institutions.H. D. Economists point out that the extent of the effect will be decided by the nature of the US recession. and Germany is already in it. If they slow down. Joshi. and the GDP growth too is expected to stall.
and intelligence. Excerpted from the “Center for Strategic and International Studies” (Published 10/03/2008): Mercury Rising: India’s Looming Red Corridor by Sukanya Banerjee A Civil War Erupts: The state of Chhattisgarh has seen a sharp rise in [Naxilite] violence. but Naxalite leaders continue to see capital infusions as attempts to curtail their power.K. Joshi says that his company has forecast India to grow by 7. 3. 282 Naxalites have surrendered in Maharashtra. the fact remains that economic growth and development in these regions may not occur without investment inflows. They administer retributive justice in the areas they control through jan adalat. The government has also announced a $125 million initiative to aid mobility for forces in jungle areas by providing basic infrastructure. Why it Matters – Energy Security: Minerals from areas of Naxalite activity are vital for the Indian economy. A more holistic development-based approach must be taken to address the grievances and economic insecurities faced by peasants and dalits supporting the movement. Also its large domestic demand does shield it to some extent from the events outside. Yet there are some bright spots amid this gloomy scenario. IMF India Representative. food. The state supports the Salwa Judum. In Chhattisgarh alone.” he says. the group has perpetrated violent crimes against civilians and Naxalites alike. including ministries of education and agriculture. Maharashtra provides cash benefits. These states are also rich in bauxite and iron ore. Adivasis’ concern about the impact of investment in forest has already led to Naxalite violence.000 tribal people. New Delhi’s Response: The national government has invested in weaponry. ”Next year will be slower. or clean water. 300 men and women armed with bows and arrows and sickles attacked an iron ore processing plant owned by Essar Steel in Chhattisgarh and torched the heavy machinery on site. Coordination between the national and state governments is weak. but its responses have only served to increase bloodshed. Health. however. So outsourcing to Indian IT companies may actually increase in the long run. Since 2005. says that different countries will benefit or be affected differently. In April 2008. The Indian Army has pledged to help train state police. and the clashes between state forces and Naxalites have uprooted more than 45. In May. Jharkhand. the government has approved a Rs. modern equipment. that empower local people to decide on violent punishments for crimes. the Maoists declared a parallel government in the state. For instance. – More here. education and infrastructure have also been neglected. India uses coal for 75 percent of its electricity generation. Sanjay Panth. According to the Asian Centre for Human Rights. and education to defectors. In March. and free government health care. It has also deployed 33 battalions of its Central Paramilitary Reserve Force (CPRF) that specialize in counter-insurgency operations and 26 India Reserve battalions will be added for more long-term operations. secure camping grounds and helipads. Civilians have been marched to government camps where conditions are described to be “deplorable. or people’s courts. . and are attracting major investment plans in steel and in oil refining.25 trillion deal with major corporations such as Tata.8% this year. Naxalites will most likely spurn the incoming development or try to extort money from the companies. While there is no nation-wide rehabilitation program. some states have implemented surrender policies that provide families with economic support in return for dispensing arms. Most of the troops will be dispatched along the eastern corridor that includes Chhattisgarh. and Orissa. promotion of selfemployment. In spite of the violence.” lacking access to adequate shelter. Panandikar adds that IT companies may actually benefit as there will be pressure on US companies to cut costs. But poor implementation policies have undermined these efforts. but tribal opposition is strong. In turn it will be helped by the decline in prices of commodities. Money for development in tribal and rural areas has also been provided under the Backward District Initiative and other economic programs. loans. and five of the states in the “red corridor” provide 85 percent of the country’s coal. India is different from some other large emerging market economies in that it is not a net commodity exporter. The lack of positive economic development for tribal people and the destruction of the natural environment have sown seeds of discontent in the state for decades. a paramilitary force that attempts to reestablish control. and Orissa grants cash. Comprehensive Strategy Needed: Government officials have constantly argued that using armed force alone against the rebels is not enough. but only 18 of them have been rehabilitated so far. The security situation will affect the viability of these investments.D. the Indian Supreme Court declared its disapproval of the Salwa Judum and called for an independent investigation into the formation and actions of the group.
Large block letters painted on the wall read: this property belongs to chhabria janwani. In 2001. sprinting toward a police station a mile away.The Nepal Question: The long-standing Maoist insurgency in Nepal and the Maoists’ dominant position in Nepal’s Constituent Assembly and interim government have raised deep concerns in India about the possibility of the Naxalite insurgents finding sanctuary and other forms of support across the border. Firmly in control. As the gap between the rich and poor widens. a University of Toronto urban studies professor who specializes in Bangalore’s real estate market. according to Solomon Benjamin. is the tech outsourcing capital of the world. office space near the center of town sold for $1 a square foot. There’s a hole in the roof and a bushel of ginger drying under an awning. – Source from wired. accompanied by a chorus of voices. One of the guards makes a break for the gate. is soaking up a gentle rain. Today. more than 500 multinational corporations have established office parks. Bangalore accounted for more than a third of India’s $34 billion IT export market in 2007. eight men—two armed with shotguns—confer in hushed voices as they peer out the windows. as in the rest of . But there’s a dark side to Bangalore’s rocket ride. call centers. The Indian government may have to tread a thin line in its stance toward Nepal’s newly elected Maoists to prove that power is best achieved through the ballot box. it’s worth $3 million. It’s nearly impossible to determine who actually owns any given piece of Bangalorean real estate. Bangalore’s Mobster Turned Mogul: Muthappa Rai is an Indian real estate power broker. the fifth-most populous city in India. Before the others can do much more than scramble to their feet. Most land in the city. Intel. wanted for murder by the Indian police. The attackers have achieved their goal. a Byzantine justice system. He used to be a mafia don. Upscale commercial spaces like UB Tower. India. There are indications that some arms transfers and training in guerrilla warfare tactics may have taken place between the two groups. City officials—at least those who aren’t taking bribes— struggle to reconcile the gleaming promise of the information economy with the gritty reality of systemic corruption. could easily last 15 years. It takes them only a minute to overrun the building. IBM. Indian Maoists have been critical of the electoral approach taken by their Nepali counterparts. For more. even undeveloped. and first-rate educational institutions like the Indian Institute of Science set the standard for what India could become. Inside. and luxury hotels here. Photograph: Scott Carney But high prices are only part of the problem for businesses looking for space in the city. Naxalites may continue to gain a foothold in the eastern states. and a criminal underworld more than willing to maim and murder its way into control of the city’s real estate market. he’d be better off just letting his assailants have the property in exchange for a fraction of its value. the removal of Janwani’s lettering throws his claim into question. has transformed this sleepy outpost into a premier showcase of globalism. By the time a police jeep pulls up. the violent Maoist insurgency has filled a void in the villages and hinterlands of India. now it’s a civil issue that will have to be mediated in the courts. Impact on India’s Future: India has registered large economic growth figures since it liberalized economic policy. modeled after the Empire State Building. Bangalore. with its near-endless appeal process. Some carry buckets of blue paint. Janwani bought his 6-acre plot in 1992 for $13. This kind of legal battle. 20 attackers brandishing swords and knives emerge from the shadows. They pull out rollers and slather paint over Chhabria Janwani’s claim to the land. At the same time. In the distance. The arrival of US companies like Adobe. Wired’s Scott Carney talks to the Bangalore land baron.com: The Godfather of Bangalore 10/20/2008 by Scott Carney It’s a little past midnight. Three guards who stood their ground lie bleeding on the floor. Microsoft. the marauders shift gears. The others surrender. As tech companies gobble up acreage. Dell. The dispute is no longer just a criminal matter of a gang of outlaws taking over a piece of ground. and it could become a problem the government cannot afford to ignore.com/video.000. If Janwani hopes to develop or sell the parcel during that time. At the center of the lot is a house surrounded by a low stone wall. Thanks to the convoluted rules surrounding land ownership. visit wired. as the poorer members of society failed to get much benefit from good governance or economic prosperity. flashlight beams sweep the roadway. demand has pushed prices into the stratosphere. In the past decade. along with the emergence of homegrown outfits like Infosys and Wipro. or should they stand watch another few hours? A guard wearing a dirty work shirt is the first to notice signs of trouble. Some 85 percent of citizens occupy land illegally. Then the sound of people scrambling over the wall. Now it can go for $400 a square foot. and a lonely parcel of farmland not far from the new international airport in Bangalore. the sign is only a memory. but at this point there do not appear to be close organizational links. Is it safe for them to go to sleep. The lights advance. and Yahoo.
000. and other service-based jobs from the US.000 31………………28. an economist at Jawaharlal Nehru University.com: India’s Foreign Trade and Global Economic Policies circa 3/2009 India is quickly emerging as a powerful trade partner in the global economy. They use muscle power to take control of the land. ownership becomes diluted along with the bloodline.000. Europe. India’s trade reached 24% of GDP. On a global scale. 2007 $112. 2008 $140. India has a population of 1. India’s exports stood at $140. Most of these changes have occured since the economic reforms India implemented in 1991. including aircraft Mineral fuels and lubricants Beverages and tobacco Chemical fertilizers Medical equipment Electronics and computer accessories . rivaling all in the region.000. but many times the system does not permit them to do it. – More here.180.000 26………………25. The country’s exports have grown steadily in the past few decades. Little undisputed documentation exists. # Products exported by India include: Petroleum products # Textile goods # Gems and jewelry # Engineering goods # Chemicals # Leather products In addition to these goods and products.800. but is a huge increase from the 6% it was in 1985. Indian trade represents 1% of the world’s commerce.147. Below is a table illustrating the volume of exports India has seen between 2003 and 2008: Total Exports: $140. unscrupulous elements get involved. call centres.000 32……………………………. A World Bank report rated the Bangalore Development Authority. Moreover.904. Disputes are inevitable. In 2006.000 33………………20.000.500.000 33………………10. from economywatch. much of India’s GDP is contributed to by the business process outsourcing (BPO) industry. which oversees urban planning. according to Arun Kumar. making it the 26th-largest export economy in the world.” Some 40 percent of land transactions occur on the black market.” says Gopal Hosur. making it the second largest country in the world.% Change…Date 2003 $44. 2005 $69.000. with a GDP of US $1. and some of Asia. With the courts tied up in knots. as families mingle and fracture over generations. What was once an undeveloped.089 trillion) and the fourth largest in the world by purchasing power.India. ever since foreign direct investment (FDI) was allowed on a large scale. is bound by ancestral ties that go back hundreds of years.8 billion (2007) Year………………………Exports Rank….000. Often the local authorities facilitate these deals. India’s Imports # # # # # # # Machinery Vehicles. as one of the most corrupt and inefficient institutions in India. 2004 $57.8 billion.92%……2006 est.2001 est. India’s Exports In 2007. gangsters offer to secure deeds in days rather than years.000 29………………46.995.230.86%……2004 est. which is by no means excessive. “Because of escalating land values.19%……2005 est.240. The economy of India is twelfth largest in the world (in exchange rates.63%……2003 est. the city’s joint police commissioner. and most of the state-run industries were privatized. That’s where Bangalore’s land mafia comes in.000.71%……2007 est. A buyer who wants to acquire a large parcel may have to negotiate with dozens of owners. “Businesspeople like to do their business. 2006 $76. closed-off economy is now becoming a massive economic force in Asia.
said Rajeev Malik. – More here. in part because the country’s bureaucracy and its protectionist polices have kept it insulated from the fallout of the global downturn. posh high rises were the name of the game in Indian real estate. The rich aren’t buying. This will fuel more imports. India’s trillion-dollar economy remains a relative bright spot. But as the buyers for $200.7 percent.” said Vijay Mahajan.” affirmed management consultant Harish Bijoor. Ramesh Ramanathan (founder of the citizen’s action group Janaagraha) and established companies like Bangalore’s CSC Constructions. “And there’s a whole slew of clean drinking water products.3 percent in the quarter ended in December when compared with the previous year. the University of Michigan’s C. head of Indian and Southeast Asian economics at Macquarie Capital. and Japan recently reported that its economy shrank at an annual rate of 12. Washington. the economic crisis may actually be good news. During the salad days of the past decade. so far.com via huffingtonpost. both solar and thermal. from globalpost. a microfinance company that provides credit to more than a million poor customers. – Source from nytimes. as it has been doing in recent years. founder of BASIX. it was in sharp contrast to the retrenchment in other countries.com: India Maintains Sense of Optimism and Growth 3/1/2009 by Heather Timmons NEW DELHI — While most of the world grapples with a crippling financial crisis and a recession. who first posited that there were millions to be made selling to the “bottom of the pyramid. Prahalad. It was an expatriate Indian. a dozen-odd companies have begun to take interest in building housing for the nearly endless market represented by the urban poor. all of which are aimed at reducing fuel consumption or replacing traditional fuels. The result could be the solution of some of India’s most persistent problems — an abysmal housing shortage. The trust factor that these players . chronic underemployment and an unsustainable rate of rural-urban migration. India’s entrepreneurs grew fat selling gas guzzlers and palatial homes to the country’s new rich. These have both health and economic benefits. and Indian businessmen are finally starting to look at the teeming masses as something more than cheap labor.2 percent.000.” which will go for as little as $8. reported Friday that gross domestic product for the end of the year had contracted at an annualized rate of 6. optimism reigns in much of India as its economy continues to grow. “India is not as vulnerable” as other countries.” Story continues below The best example of the upside of the downturn. While that was down from the 7. and cook stoves and all types of things.000 to $1 million apartments have dried up and falling property values have left builders scrambling to finance the completion of existing projects. for example. This was due to fears about safety issues of the Chinese toys and worries about the fate of domestic toy producers in India. “The slowdown was a great thing to happen to India. who recently wrote a report titled “India: Better Off Than Most Others.K. Throughout the boom years. Interestingly. who said the downturn has encouraged companies to look beyond the “low-hanging fruit” in the urban market to the vast multitude of consumers in India’s rural heartland — which still accounts for more than two-thirds of the country’s population and some 60 percent of its gross domestic product.” On Friday. these ventures represent the entrance of respected business leaders into the low-income housing market. India reported that its economy grew 5.com: India: Economic Crisis Forces Businesses To Focus On The Poor 8/28/2009/11:36 AM by Jason Overdorf I NEW DELHI — In India. for instance.As the middle class of India becomes more affluent and wealthy.” Now that’s starting to happen.6 percent growth in the earlier quarter. while ignoring the needs of the biggest segment of Indian consumers: the poor. Led by Tata Housing’s so-called “Nano homes. “There are a whole slew of energy products. including figures like Jaithirth Rao (founder of outsourcing heavyweight Mphasis). comes from the real estate sector. domestic consumption will continue to increase. India banned all toy imports from China in February 2009. some say.
will appoint 1. from economywatch. for instance. “You can sell millions of homes in this category. launched a similar service. In the Great Depression unemployment was higher than 25%. income-generating products affordable. Motorcycle maker Hero Honda.” Jaithirth (Jerry) Rao said. The stock market sank to an 18-month low and the rupee a 5-year low. – More here. while Godrej Consumer Products Ltd. we should understand the severity of it and the possible consequences in the US. “We are advising our clients to stay away from trading till selling by Foreign Institutional Investors (FIIs) stops.. has boosted its “touch points” in rural areas from 2.” – More here.595. there is no support to the markets from any domestic institution. While markets are below their fundamental levels. fear has gripped investors and there is panic selling. broadband access. How sick is the US? Some have compared the situation in the US with the Great Depression of 1929. Also. We are not seeing such extensive suffering in the US. for instance.8%. software and support to consumers for a bundled price as low as $25 a month.com: India Economy: Effects of the US Financial Crisis in India 9/30/2009 by Charles Cole New Delhi[.” The push to widen the footprint of broadband internet and boost the average revenue per user from lowincome mobile subscribers. This three-part series looks at how India. the Indian arm of Standard & Poor’s. vice-president of Karvy Stockbroking Ambareesh Baliga. then competition sets in. according to the US Bureau of Labor Statistics.” said Mahajan. “That’s all happened because of the penetration rush and price competition. China. In the Great Depression there was no work and there was widespread poverty. Almost every type of business — from refrigerators to motorcycles to computers to mobile phones — is now looking to the vast market represented by India’s urban poor and the legions living in its villages. By increasing competition.] It is often said that when the US sneezes the rest of the world catches a cold. People struggled through the winter with no heating and no food. although this was revised down from the 3. “Telecom is a great example. and the same thing is beginning to happen in microfinance. it’s beginning to happen in solar energy. Recently Airtel. Samsung has launched Solar Guru. this expansion lowers prices. Indian markets took a dive of their own on Monday 29 September.75. “The focus on the base of the pyramid to create scale businesses was overdue.1%. said. But one cannot ignore yesterday’s 777 point drop in the Dow Jones Industrial Average after the $700 billion bailout plan failed to pass through Congress. The sales network for fast-moving consumer goods and products like motorcycles and refrigerators is also expanding into the rural hinterland. while Nokia has rolled out its Nokia Life Tools range of agriculture. The Commerce Department reported that GDP growth was at 2. These paper losses of more than a trillion dollars may be the sneeze that disrupts global markets. from in.com: . but this situation is far from a depression – in fact it’s not even a recession. and it’s a win-win for all sides. In the US. The stock market dropped 5. According to Business Standard.000 in 2006 to 3. chief economist at Crisil. connects the dispossessed to the broader economy and makes new. The volumes attract new suppliers and as more suppliers come in.500 wholesalers in small towns and villages this year. Even before this controversial rescue plan was shot down. August 2008 unemployment figures were at 6. hardly indicative of a recession. according to Subir Gokarn.bring has given this sector new viability.. up from 500 last year. education and entertainment services for consumers in small towns and rural areas.3% to 12.” But real estate isn’t the only sector where the financial crisis has had an unexpected upside for India’s future.3% figure it projected a month ago. has put more muscle behind the network-based computing devices like Novatium’s NetPC — which provides a computer. India’s largest integrated telecommunications company.500 in 2008. The kind of price at which a rural poor person can now talk to their migrated family members and so on is incredible. and Russia have been affected by the US financial crisis. a solar-powered mobile phone. whereas in the upscale category you can only sell tens of thousands. Before we get into detail about how much this US problem is spreading globally.
from dnaindia. They are followed by Rehman Elahi and Mohammad Yusuf Wasim who own 17 and 15 of these enemy properties respectively. Most of the properties owned by these four persons are shops located in Jama Masjid and central Delhi.” the Prime Minister assured industry leaders. International credit has shrunk with adverse effects on our corporates and banks. Following the approval of Chauhan’s communique by Khanna. One Fatima Bi owns four of these properties.” “We have given very clear assurance to the Prime Minister and his Cabinet colleague that there is no question of any lay-off and the industry is going forward in an expansion drive and it will continue. The data comes from a letter written by state revenue minister Raj Kumar Chauhan to the top brass of the Delhi government. These are properties evacuated by people who migrated to Pakistan during partition. The plan was to set up a hotel. The notification effectively means that hundreds of people in the capital living in such enemy properties would lose the title and registry rights to their property. seeking permission to initiate action against these land-grabbers. The situation is being watched on a day to day basis and more steps will be taken if required. – More here. Singh met top industry leaders on Monday in New Delhi and asked them to remain cautious but also assured them that the banking system and deposits were safe and the government would take more steps to protect economic growth.” The notification directed that the name CEPI be put in place of the present owners listed against the said property.Manmohan Assures Industry[. "]Economic crisis hurting India. Delhi government sources have made available documents which show plans for construction of a structure in the name of Shoaib’s wife. Iqbal has called it a “political conspiracy”. banning the registry or mutation of all enemy property on “the list. which might lead to a negative spiral. issued a notification on January 14. He asked industry to refrain from any “knee-jerk” reaction such as large-scale lay-offs. Huma . The trigger to this entire controversy was an alleged land deal of Lok Janshakti Party MLA Shoaib Iqbal. Global uncertainty is also tending to dampen investor sentiment. Vinay Kumar. Zahir Ul Aslam.” he was quoted as saying by PTI. A recently released list of the department of revenue shows only a handful people control more than 80% of these properties. which functions under the Union home ministry.” Sajjan Jindal Vice Chairman & MD. Nearly 78 of the enemy properties are collectively owned by Tahir Ul Aslam. joint secretary in the state revenue department. “The government is closely monitoring the evolving macro economic situation and is fully alive to its responsibilities to sustain the growth momentum of the economy at a reasonable rate. “Our first priority was to protect the Indian financial system from possible loss of confidence or contagion effect … the situation is abnormal and we need to be constantly on the alert. and said “industry must bear in mind its societal obligations in coping with the effects of this global crisis”. but banks safe[": Prime Minister (of India)] 11/3/2009/13:03 New Delhi: Prime Minister Manmohan Singh has admitted that the global economic turbulence has begun to hurt India. Shahidul Islam. “A crisis of this magnitude was bound to affect our economy and it has. which the Prime Minister felt “is now likely to be more severe and prolonged”. All property left behind by people who migrated to Pakistan are owned by the Mumbai-based Custodian of Enemy Property for India (CEPI).com: Delhi land mafia gobbles up 200 enemy properties 1/31/2010/23:34 IST by Eklavya Atray New Delhi: The capital’s land mafia has been holding on to 200 enemy properties for decades. Huma. The letter was sent to lieutenant governor (LG) Tejendra Khanna and chief minister Sheila Dikshit. and a woman named Jawahar Sultan. JSW Steel said.
“India was Australia’s fourth largest export market in the second half of 2009.6% of GDP in 2007/08 to 10% in 2009/10. Yet. And it is expected that by the end of June the rate may increase as much as 100 basis points. the better than expected performance of Indian economy in the last few quarters had a lot to do with a significant fiscal stimulus and loose monetary policy. And although due to strong growth numbers the shortfall is more than sustainable. The government has made progress in new tax laws. in the first three months of 2010 India’s economy expanded 8. two stimulus packages providing tax cuts and increasing infrastructure spending in connection with lower interest rates have supported significantly domestic demand.75%. But. raises taxes for petroleum products and reduces for middle-income families it fails to slash inefficient subsidies on fertilizer. it is illegal to conduct transactions in such properties. stimulus spending had expanded fiscal deficit from 2. One Ibrahim who identified himself as the eldest son of 84-year-old Fatima Bi denied any transaction. Another set of documents showed property number 921 as “enemy property” with a general power of attorney having been executed in Pakistan in the favour of one Fatema Bi. More importantly.” it said. the new administration is slow in implementing economic reforms promised investors after last year’s wider-than-expected election victory. IST Melbourne: Australia’s Reserve Bank has said that Indian economic growth will continue to work in favour of the country’s mineral exporters. In fact.” the daily quoted the bank as saying. fuel and food. Delhi government sources claim the original file relating to plot 921 which was supposed to be acquired by the government before Bi’s family went to court has gone missing. Reserve Bank of Australia (RBA) said Indian economy has gradually strengthened over the past two decades and the Asian nation will continue to improve in the years ahead. “The Indian economy looks likely to continue to expand at a relative rapid pace in coming decades and to become an increasingly important part of the world economy. “Indian demand for Australia’s exports has risen sharply. Jama Masjid. while Union Budget for 2011 increases infrastructure spending. – Source from livemint. with particularly rapid growth over the past decade.5 per cent.” said Ibrahim. RBA had released its quarterly statement on monetary policy on Thursday. the Reserve Bank of India has raised its benchmark interest rates twice to 3.” RBA said coal exports to India has risen strongly over the past decade is likely to rise in the next few years. Under the Enemy Property Act of 1968. India’s central bank should be more cautious in shifting its monetary policy.6% boosted by industrial production and services. Iqbal has denied the allegations and said he will file a defamation suit against the government. a four-fold increase in less than a decade. on plots 913-921 in Ward No 9. The central bank said the rise in India’s prominence in the global economy has been a boost to the Australian economy. inflation is becoming a growing concern.com: 2/5/2010/1:29 P. with demand growing at a faster pace than supply.” As per the official data. is the third largest economy in Asia able to keep its high rate of growth? Indeed. Indian government should be able to better control its expenditure. – Source <strong>Is India’s High Growth Sustainable?</strong> 6/2/2010/2:57:38 PM by Anna Fedec After almost 7% growth in 2008/09 fiscal year. disinvesting state run companies. It accounted for 40 per cent of total goods exports to India in 2008-09. In fact. it formed an experts panel .M.Semiramis. Liquefied natural gas (LNG) is another likely source of future growth in Australia’s good exports to India. Not surprising. Looking further. Tightening too much or too early is likely to squeeze credit availability and weight on growth which is essential in keeping fiscal deficit at sustainable levels. adding that “This has seen India’s share in Australia’s total exports increase to around 6. However. Dinesh Singh of CEPI had visited some of these properties in Delhi on December 12 and met the principal secretary (revenue) on the issue. “We have been fighting a case in Delhi high court for the past 18-19 years. The Australian daily reported.
Some time back he was briefly overtaken by Mexican tycoon Carlos Slim. Recently. As very young women. arson and other abuses against Dalits are reported in India each year. the chairperson and managing director of Reliance Industries has become the richest man in the world with assets worth 63. they come into greater contact with landlords and enforcement agencies than their upper-caste counterparts.to ease foreign investment in the financial sector. . Their subordinate position is exploited by those in power who carry out their attacks with impunity.org: BROKEN PEOPLE[:] Caste Violence Against India’s “Untouchables” 3/1999 by Human Rights Watch ATTACKS ON DALIT WOMEN: A PATTERN OF IMPUNITY Singularly positioned at the bottom of India’s caste. women have been beaten. largely uneducated and consistently paid less than their male counterparts. in Bihar and Tamil Nadu. the whole world was shocked when it was declared that Mukesh Ambani. Shaken by this burgeoning protest movement. Human Rights Watch has documented the use of sexual abuse and other forms of violence against Dalit women as tools by landlords and the police to inflict political “lessons” and crush dissent and labor movements within Dalit communities. and gender hierarchies.com/Economics/GDP-Growth.tradingeconomics. Moreover. In Laxmanpur-Bathe. There has been a wave of mass demonstrations by Dalit people demanding justice and equal treatment. Indian Economy Disparity in Wealth Distribution By Anne Catherine (edited a little by me) Bill gates. – More here.15 As such. and sometimes tortured during violent search and raid operations on Dalit villages in recent years. daughter and two sons were lynched and beaten to death by an upper-caste mob in a land dispute in 2006.000 cases of rape. Normally. women were raped and mutilated before being massacred by members of the Ranvir Sena in 1997. the killers of Dalits walk free.uk: Is this 21st-century apartheid? 9/17/2008/07:31 BST Peter Tatchell The segregation and abuse of the low-caste Dalit people is a stain on India’s reputation. the one name that is almost synonymous to Wealth and to Microsoft was till recently the richest man in the world. labor reforms and farm prices release are far from being executed. Dalit women make up the majority of landless laborers and scavengers. murder. – Complete report here. Bihar. One reason why the murderers have been bought to justice is the rising tide of Dalit militancy. as well as a significant percentage of the women forced into prostitution in rural areas or sold into urban brothels.co. Dalit women have also been arrested and raped in custody as a means of punishing their male relatives who are hiding from the police. … Over 100. from hrw.aspx? Symbol=INR”>Source</a> from guardian. class. Newly confident and organised. albeit slowly and exceptionally. The magic run of the Indian share market was largely responsible for this somewhat unprecedented development. A Dalit farmer’s wife. Throughout this report. Yet. but Slim’s stint at the top was short term and was again overtaken by Gates. What is unusual about this case is that the perpetrators were successfully prosecuted.2 billion USD. arrested. Some states record conviction rates as low as 2-3%. some Indian authorities are finally being pushed and pressured into action. they are forced into prostitution in temples under the devadasi system. the Dalits are fighting back with strikes and boycotts. The women were also raped. he adorned this prestigious and coveted title for almost a decade. Like other Indian women whose relatives are sought by the police. the police themselves are sometimes the perpetrators of abuses against Dalit people. with assets worth 59 billion dollars! Declared the richest man in the world in the year 1995. – <a href=”http://www. but a militant fightback is under way Eight people were convicted on Monday of the murder of four members of a lower-caste Dalit family in the western Indian state of Maharashtra.
thanks to the highly unequal distribution of income in the Indian economy! The question is whom to blame. In an interview with S. On one hand mergers and acquisitions have been made worth millions. Forbes: He has got a lot of praise for that in India. but it is hard to believe that a man from a third world country that is counted among the poorest in the world would house the richest man in the world. the entrepreneurs. Many Indian concerns are into offshore software development. social stigmas etc. or the constitution? Everybody has a role to play. On one hand there are people who are not even earning a dollar per day. Srinivasan. India is a country that is plagued by much social malice like poverty. Nobody is to be blamed solely yet everybody is responsible for the situation India is in today. Srinivasan. there are quite a few software development companies in India that provide ecommerce solution and ecommerce software to people living outside India. yet there are certain concepts that inspite of being very popular in the west and inspite of being quite upmarket are not that popular in India. the system. population. – More here . The affluent society of the country is no doubt not apprehensive of spending. on the other hand the rate of poverty has almost remained static in the span of the last two decades. Disparity in the distribution of wealth continues to be a big blow to the Indian economy. Investor and venture capitalist Jim Rogers remains deeply skeptical of India’s future. Infact there are many who are too short of time or energy to go hunting for stuffs. Why? JR: Even if it happens. if it happens. Would you have preferred to see a complete rollback rather than a partial one? JR: Yes. unemployment. The subsidies distort the economy in less-productive areas. Thus they take the easy way out and buy things online. Forbes: The finance minister rolled back some of the economic-stimulus measures he had announced last year. edited by Daniel Knight (added who was speaking) 3/16/2010 After all the budget euphoria. Forbes: Don’t you think a high deficit was justified last year when the government had to spend and help the economy revive? JR: No. Forbes: If you were to set an agenda for the government. One would not know whether to be happy for India or sad at the superficiality of its development. Forbes: The finance minister has changed the direction of India’s budget deficit by reducing the target for 2010-11 to 5. the backbone of the Indian economy is yet to show profits and improvements. superstitions. Jim Rogers: You really believe it will happen? Go back over the years and see their previous claims.5%. The population. it is not being done by sound budgeting. the government. There are people who buy stuff online. On one hand larger then life malls.It is quite expected and accepted when a person from the countries like the US or the UK adorn the crown of the richest man. Conversely however. Do you really think the solution for a problem of too much debt and too much consumption is more debt and more consumption? Are we not living in extraordinary times when we have to follow such flexible policies? We are indeed. Still you are not impressed. around 22-23 crores of people are still living below the poverty line. They have clients from all over the world who come to them for software development in order to do business online. In this country that has a population of over a billion. The rich are growing richer and the poor are growing poorer. what would it be? JR: Cut spending and subsidies dramatically. on the other hand Indian youth is counted among the highest spending youths in the world. Forbes. But there are very few concerns in India that are ready to open an estore. Many studies have shown that countries start having serious growth problems when debt is 90% of GDP (gross domestic product). It is from selling off the family jewels. illiteracy. And more. Ecommerce is one such concept. Vast and unending. he argues that the country is sitting on a fiscal time bomb. Many of them are not even earning 1 dollar a day. one trend that so far India has not taken from the west! ‘India Will Muddle Along Until The Debt Crisis Hits’ S. India is now [at] 80% and will be [at] 90% soon under this budget. Venturing into this topic is like counting the stars in the sky. gender biasness. luxury foreign car showrooms are opening. it is time for a reality check. on the other hand the agricultural sector. They are making the problems worse in extraordinary times which require tough measures to correct decades of abuse. They are just trying to push the problems out into the future rather than solving the underlying problems. but it’s very rare that one would find an Indian company venturing into ecommerce web site development.
such as the latest purchasing managers’ index. Increasing Pressure on Rates by Unni Krishnan. a report showed today. today’s report showed. stoking price risks and prompting the central bank to raise rates eight times since early 2010.3 trillion economy has boosted consumer demand and spurred manufacturing.94 percent in February. car sales and credit growth. in Mumbai. India relies on imports to meet three-quarters of its annual energy needs. The yield on the 8.” The Bombay Stock Exchange’s Sensitive Index extended declines after the inflation report. stoking price risks and prompting the central bank to raise rates eight times since early 2010.75 percent after raising the inflation forecast for the second time since late January. the commerce ministry said in a separate report today. car sales and credit growth.” Reserve Bank Deputy Governor Subir Gokarn said April 5. compared with 9.6 percent in February. PT Expansion in India’s $1. Fuel and power prices rose 12. putting pressure on policy makers to raise interest rates in Asia’s third-largest economy. “Even as industrial production continues to be volatile. . and Singapore said yesterday it would allow further currency gains. “Inflation is going to remain uncomfortably high this year. compared with 11.98%. Manufactured-products inflation was 6. with consumer prices rising 5. other indicators. India’s inflation accelerated more than economists estimated in March as the cost of fuel and manufactured goods rose. Inflation in the first quarter has exceeded the Reserve Bank of India’s forecast that price increases would be 8 percent by the end of March this year. China on April 5 raised rates for the fourth time since mid-October. The benchmark wholesale-price index rose 8.3 trillion economy has boosted consumer demand and spurred manufacturing. suggest that the growth momentum persists.4 percent at 11:52 a.” the central bank said in the March 17 statement. Food prices rose 8. Taiwan.28 percent in the week to April 2. merchandise exports and bank credit. Rate Increase Rising oil and commodity costs and sustained economic growth are escalating pressure on Asian central banks to boost borrowing costs.7 percent in the first quarter and inflation accelerated in March to the fastest pace since 2008. increasing demand will inevitably lead to higher prices.98 percent from a year earlier after an 8. compared with 8. That exceeded all 28 estimates in a Bloomberg News survey.25 percent in the year ending March 31. South Korea and Thailand also increased borrowing costs this year to curb inflation. China’s economy grew a more-than-estimated 9. Singapore-based chief economist at HSBC Holdings Plc. Production Growth Still.m. Expansion in India’s $1.08 percent bond due in August 2022 was at 8. The central bank’s next monetary policy announcement is scheduled for May 3. India’s economy may expand as much as 9. direct and indirect tax collections.M.India Inflation Quickens to 8. when he estimated it at 7 percent by March end.21 percent before the data was published.25 percent. “The RBI needs to raise rates more aggressively and we are looking at three more rate increases this year. compared with 4. edited by Stephanie Phang 4/15/2011/1:16 A. the commerce ministry said in a statement in New Delhi today. falling 1.4 percent from a year earlier. a report showed this week.31 percent gain in February. where the median forecast was for an 8.18 percent in the previous week. 2012. Reserve Bank Governor Duvvuri Subbarao on March 17 increased the repurchase rate by a quarter point to 6. Vietnam. He said a “monetary response is warranted” should demand exceed supply and stoke inflation.” said Leif Eskesen. India’s industrial production growth unexpectedly slowed to 3.92 percent. Food Inflation “In the absence of a strong supply response. the finance ministry said in February.49 percent the previous month.21 percent in March.36 percent increase.
The growth eased to 7. Demand may find more support from Finance Minister Pranab Mukherjee’s budget for the fiscal year ending March 31. Until recently. “Getting credit cards in India two or three years back was very easy. Private and foreign banks marketed credit cards and loans to consumers who had little experience of borrowing. higher than the previous threshold of 160. His feelings of shame prevented him from seeking help. After several years of signing up to all the credit cards and personal loans he could find. “They would fill out the forms for you. slid to 4. The company’s sales climbed to a record in March.000) in debt. according to government data. – Source India’s middle class struggles with personal debt burden By Mukul Devichand Reporter. with the purchasing managers’ index holding unchanged at 57. more than the 20 percent rate prescribed by the Reserve Bank of India.4 percent from the previous year as of March 25. Mr Sayed remembers his lowest point in late 2008. But in the years before the global economic crunch. which plans to spur spending and exempt incomes below 180. Chief Financial Officer Ajay Seth said in an interview on April 6. plans to boost capacity by 21 percent in the current financial year as part of investment plans totaling as much as 40 billion rupees ($900 million).9 percent in September and then recovered in October.9 in March from February. (MSIL). credit cards and loans flooded onto the markets of most Asian countries. Salaries in India this year may rise the most in the Asia. BBC News 7/3/2011 India’s recent binge on credit cards and personal loans has ended badly for some – but there are ways to fight back against debt. fueling consumer demand. the Indian middle class were deeply conservative borrowers. Debt trap Mr Sayed didn’t realise that with most credit cards. Maruti Suzuki India Ltd. With a strong cultural aversion to loans and with very little finance on the market. “I thought better you run away from Mumbai. India’s recent binge on credit cards and personal loans has ended badly for some – but there are ways to fight back against debt. with few questions asked. Recent data show lenders are giving loans at a faster pace than the central bank’s target. he had notched up Rs 3.000 ($66. Spending under the government’s National Rural Employment Guarantee Act of 2005 has surged almost fourfold to 399 billion rupees. 2012.” recounts Mr Sayed. the nation’s biggest carmaker.India’s industrial output has fluctuated since May. which he spent on everything from paying his staff to feeding his children. His business was failing. The amount of outstanding credit card debt in India tripled between 2004 and 2007. rebounded to 15. so he started using the credit cards to withdraw cash. Rising Salaries Manufacturing grew for a 24th straight month.” He got six cards and nine unsecured loans. when it registered a 12. HSBC Holdings and Markit Economics said April 1.” he remembers.Pacific region. or you commit suicide.000 rupees from tax. BBC News 7/10/2011 The Pawar family The Pawars took financial advice when they started losing their savings . The father of two in Mumbai was guarding a dark secret from neighbours. a survey by Aon Hewitt LLC showed March 8. Commercial loans rose 21.2 percent expansion. friends and even his wife. when it accelerated at the fastest pace in three months.1 percent in July.2 percent in June. most people lived frugally all their lives.000 rupees. He bottled up his growing sense of shame. according to industry reports. high interest charges kick in immediately when you withdraw from ATMs.000. –More here India’s middle class pays the price for growth By Mukul Devichand Reporter.
And if one needs to do that. Indian Mob. “From outside it looks good. economic review of India. “We’re staying in a big house. provide specific reasons and get permission from the HEAD of their Mission abroad. Her husband also works in the IT industry. graphs. Across Asia. “We were actually losing money. India's economy. recently became a full-time mother. There are many many procedural impediments to prevent tourists from coming to India. but for ordinary people the price of success is corrosive inflation which could eat away their savings. dalits. This has been largely due to the actions of the government in inhibiting visitors to come to India. performance of India's economy in 2011. various pressures are pushing inflation up – from growing wage bills to the high global prices of food.” says Manasi. India's Red Corridor. “We were sitting on a bunch of cash but we didn’t know where to put it. India's GDP growth rate. real estate mafia. Intense inflation The inflation rate measures how fast prices are going up. situation of India's middle class. This advisory is stamped right next to the visa on their foreign passports !! .” says Manasi Pawar. Categories:Economies of the World.” Manasi. India debt crisis. untouchables Comments (4)Trackbacks (1)Leave a commentTrackback 1. failure of Hinduism. India's economyTags:charts. inflation rate of India. For tourists who have multiple entry visas. The couple epitomise the emergence of a well-to-do middle class in Asian countries – except there’s one significant snag. paying so much in rent and our kids are going to great schools. The couple recently woke up to the fact that inflation rates of nearly 9% meant that their savings were actually disappearing in front of their eyes.” she says. India poverty map. forecast. Naxalites' effect on India's economy. The pressures are so intense that some economists fear that inflation will now derail Asia’s high economic growth altogether. Naxals. commodities and fuel in resource-hungry economies. failed state. performance of Indias. India GDP chart. Hindu behavior. sites of history and antiquity. Hopi Krishnan February 21.economic stagnation. statstics. Hindu morality.The world is jealous of Asia’s sky-high growth rates. slow growth rate. economic forecast on India. a qualified software worker in hi-tech Hyderabad in India. Tourism as an Industry in India has yet to develop and match even small countries like Thailand. 2010 at 11:58 AM | #1 Reply | Quote For the amount of culture. – More here Share this: • • • • Like this: Like StumbleUpon Digg Reddit Be the first to like this post. land mafia. Indian Government advises them NOT TO REVISIT within a period of 2 months of a visit to India. economic forecast of India. inflation of India. and it’s important that we don’t let it lie there in the bank – because a bank doesn’t give an interest rate that even matches the inflation rate.
including most of Jammu.○ knight February 21. . China controls 20% of Kashmir. namely Azad Kashmir and the northern areas of Gilgit and Baltistan. The CIA and FBI are also watching you and planning on cloning you. which was ceded by Pakistan in 1963. – Wickedpedophilia Leave a Reply Top of Form Enter your comment here. and the Siachen Glacier. including Aksai Chin. India’s claim is contested by Pakistan.. Sumit Pareek August 15. the Kashmir Valley. 2011 at 3:20 AM | #3 Reply | Quote why Kashmir is not in this map of India why kashir is a part of india why this map is also not verified from other countysssssssssssssss ○ knight August 15. and the Trans-Karakoram Tract (also known as the Shaksam Valley). administers approximately 43% of the region. which it occupied following the brief SinoIndian War of 1962.. 2. When I am the King of Kashmir all your hottie sex women will belong to me. Also the UFO people are about to conquer Kashmir and give it to me. false religious teachings and demons. 2011 at 4:38 AM | #4 Reply | Quote It’s a conspiracy. Ladakh. which controls approximately 37% of Kashmir. Maybe Mashmir isn’t on “this map of India” because Mashmir isn’t controlled by India? Maybe because they haven’t been able to suppress the rebels for decades? India claims the entire state of Jammu and Kashmir and as of 2010. 2010 at 12:56 PM | #2 Reply | Quote Conceited rich men and women. hinder India.
the psychopath is a sadist. "absolute good" and "absolute evil". . "absolute truth". Atheist and Catholic bullies who murdered their victims. The narcissist prizes attention. So then. it’s existance is a myth. the sociopath cares only for pleasure. To deny God's existence is to deny the existence of truth and right from wrong.• • • Fill in your details below or click an icon to log in: Email (required)(Not published) Name (required) Website Notify me of follow-up comments via email. an evil woman gets pleasure and only craves more. The differences between Christians groups and why they matter Chat Knight's Chatroom • • • • • • • Top Blog Posts -> A Glimpse at the Ugly Face of Islam: –—————> Acid Attacks <—————– 20 Questions Muslims Can't Answer Adrianne Cury is an excellent example of the extreme confusion that doubting God and belief in Darwinian Evolution causes. Post Comment Bottom of Form Champion of Liberalism Lady Gaga Becomes Temporarily InsaneGeorge Noory Stupidly Cuts off Caller RSS feed Twitter A true Christian seeks to conform to God's will God. A logical man sees the universe and worships the Designer. Animals Are Not Primitive More irrefutable evidence against Darwinian evolutionary theories: animal brains are much faster than fastest known public computers on Earth. Psychologists and psychiatrists who say it exists are wrong. Support this journal. Bill Maher is an excellent example of the extreme confusion that doubting God and belief in Darwinian Evolution causes. Please read the differences between Christian groups and why they matter. a false Christian exalts his own will. What I mean by truth and right from wrong are the redundant terms. to deny the existence of God is neither logical nor moral. Bipolar Disorder There is no such thing as bipolar disorder.
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for the first time felt a hatred and disgust for war 3 days ago @FakeTiffanyAle Isn't that three?3 days ago @MarshaBlackburn Is we also thankful for God who gives us protection from those who put on a uniform to take away our freedoms? 3 days ago @ConanOBrien You always bring a smile to my face.com .3 days ago TopWordPress Copyright © 2007-2011 Knight's Christian Commentaries and Worldwide News Blog at WordPress. Enter email ad Sign me up! Bottom of Form Powered by WordPress. Theme: INove by NeoEase. 3 days ago @LeaderQuote Who never risks anything? What a stupid thing to say.com. Merely living is a risk to your life. Follow Follow Knight's Christian Commentaries and Worldwide News Top of Form Get every new post delivered to your Inbox.S.658 hits • • • • • My Tweets a moment ago. after getting depressed from your previous joke. (intelligent design) ian christiansfalse teachers fraud George Noory global punnet Iranliberals logical fallacies philosophy proofpropaganda refuted religionreligious beliefs stupid the End Timesthe Last Days the U.am creationism Darwinismeternian evidence evolution propaganda exposed false warming global warming hoax hoax hypocrisy I. Bless you.D. (United States of America) Wikipedia Knight's Journal Stats • 179.A.
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