GROUP 4

INDIA

REPORT MANUSCRIPT

PART I. THE BEGINNINGS

A. CULTURAL ASPECT
1. CADORNA, KING RUBEL LAURENCE G.
HISTORY OF INDIAN CIVILIZATION
It is in Indus Valley where the earliest form of civilization, sprouted in India. It flourished around 2,500 BC, in
the western part of South Asia, what today is Pakistan and Western India.
Mohenjodaro and Harappa were unearthed around 1920’s which proved the existence of an early civilization
in India.
Vedic Civilization is the earliest civilization in the history of ancient India. It is named after the Vedas, the
early literature of the Hindu people. The Vedic Civilization flourished along the river Saraswati, in a region that now
consists of the modern Indian states of Haryana and Punjab. Vedic is synonymous with Hinduism, which is another
name for religious and spiritual thought that has evolved from the Vedas.
The Ramayana and Mahabharata were the two great epics of this period.

Several invasions in the History of India were the following:

 The Buddhist Era (Lord Gautama Buddha)
 Alexander's Invasion
 Gupta Dynasty (Chandragupta I)
 Harshavardhana

India’s Culture
 Family Structure and Marriage
For generations, India has a prevailing tradition of the joint family system. It is when extended members of a
family – parents, children, the children's spouses and their offspring, etc. – live together. Usually, the oldest male
member is the head in the joint Indian family system. He mostly makes all important decisions and rules, and other
family members are likely to abide by them.

 Arranged Marriage
Arranged marriages have long been the norm in Indian society. Even today, the majority of Indians have
their marriages planned by their parents and other respected family-members. In the past, the age of marriage was
young. The average age of marriage for women in India has increased to 21 years, according to 2011 Census of
India. In 2009, about 7% of women got married before the age of 18.
In most of the marriages the bride's family provide a dowry to the bridegroom. Traditionally, the dowry was
considered a woman's share of the family wealth, since a daughter had no legal claim on her natal family's real
estate. It also typically included portable valuables such as jewelry and household goods that a bride could control
throughout her life.

 Wedding rituals
While there are many festival-related rituals in Hinduism, vivaha (wedding) is the most extensive personal
ritual an adult Hindu undertakes in his or her life. Typical Hindu families spend significant effort and financial
resources to prepare and celebrate weddings. The rituals and process of a Hindu wedding vary depending on region
of India, local adaptations, resources of the family and preferences of the bride and the groom. Nevertheless, there
are a few key rituals common in Hindu weddings – Kanyadaan, Panigrahana, and Saptapadi
  Festivals
 Diya- for Diwali, a major festival of India.
 Gopis- during the Holi celebrations in Krishna Temple, Mathura
 Navaratri festival- is an occasion of classical and folk dance performances at Hindu temples.
 Ganesh Chaturthi festival in Maharashtra
 Onam festival tradition.
 Krishna Janmashtami
 Durga Puja is a multi-day festival in Eastern India that features elaborate temple and stage decorations
(pandals), scripture recitation, performance arts, revelry, and processions
 The Bihu festival, with dhuliya, is an Assamese Hindu tradition; it coincides with Vaisakhi in north India,
which is observed by Sikhs and Hindus.
 The Hornbill Festival, Kohima, Nagaland. The festival involves colorful performances, crafts, sports, food
fairs, games and ceremonies
 National Holidays (Independence Day, the Republic Day and the Gandhi Jayanti)

 Greetings
Greetings include Namaste (Hindi and Sanskrit), Namaskar (Hindi), Namaskaara/juhaara in Odia,
Namaskar(Marathi), Namaskara (Kannada), Namaskaram (Telugu, Malayalam), Vanakkam (Tamil),
Nomoshkaar(Bengali), Nomoskar (Assamese), Aadab (Urdu), and Sat Shri Akal (Punjabi). All these are common
spoken greetings or salutations when people meet, and are forms of farewell when they depart. Namaskar is
considered slightly more formal than Namaste but both express deep respect. The word is derived from Sanskrit
(namah): to bow, reverential salutation, and respect, and (te): "to you". Taken literally, it means "I bow to you".[75] In
Hinduism it means "I bow to the divine in you." In most Indian families, younger men and women are taught to seek
the blessing of their elders by reverentially bowing to their elders. This custom is known as Pranāma.

 Clothing
Traditional clothing in India greatly varies across different parts of the country and is influenced by local
culture, geography, climate and rural/urban settings. Popular styles of dress include draped garments such as sari
and mekhela sador for women and dhoti or lungi or panche (in Kannada) for men. Stitched clothes are also popular
such as churidaror salwar-kameez for women, with dupatta (long scarf) thrown over shoulder completing the outfit.
Salwar is often loose fitting, while churidar is a tighter cut. The dastar, a headgear worn by Sikhs is common in
Punjab. Bindi is often an essential part of a Hindu woman's make up. Worn on their forehead, some consider the
bindi as an auspicious mark. Traditionally, the red bindi was worn only by married Hindu women, and coloured bindi
was worn by single women, but now all colours and glitter has become a part of women's fashion.

 Languages and literature

The Rig Vedic Sanskrit is one of the oldest attestations of any Indo-Aryan languages, and one of the earliest
attested members of the Indo-European languages. The discovery of Sanskrit by early European explorers of India
led to the development of comparative Philology.
Tamil, one of India's major classical language, descends from Proto-Dravidian languages spoken around
the third millennium BCE in peninsular India

 Architecture
 Kailasa temple is one of the largestrock-cut ancient Hindu temples located in Ellora, Maharashtra, India
 The granite tower of Brihadeeswarar Temple in Thanjavur was completed in 1010 CE by Raja Raja
Chola I.
 Kakatiya Kala Thoranam (Warangal Gate) built by the Kakatiya dynasty in ruins
 Chennakesava Temple is a model example of the Hoysala architecture
 Chaturbhuj Temple dedicated to Vishnu was the tallest structure in the Indian subcontinent from 1558
CE to 1970 CE.

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  Taj Mahal is a prime example of Indo-Islamic architecture. One of the world's seven wonders.
 Umaid Bhawan Palace in Rajasthan, one of the world's largest private residences, built by Maharaja
Umaid Singh, the ruler of Jodhpur State.
 Tawang Monastery in Arunachal Pradesh, was built in the 1600s and is the largest monastery in India
and second largest in the world after the Potala Palace in Lhasa, Tibet.

Major Religions of Indian People

 Hinduism
 Islam
 Christianity
 Sikhism
 Buddhism

Hinduism
Hinduism is often regarded as the oldest religion in the world, with roots tracing back to prehistoric times,
over 5,000 years ago. Hinduism is an ancient religion (although Hinduism is diverse, with monotheism, henotheism,
polytheism, panentheism, pantheism, monism, atheism, agnosticism, and gnosticism being represented and
Hinduism is also the largest religious grouping in India; around 966 million adherents as of 2011; compose 79.8% of
the population. The term Hindu, originally a geographical description, derives from the Sanskrit, Sindhu, (the
historical appellation for the Indus River), and refers to a person from the land of the river Sindhu.

Islam
Islam is a monotheistic religion centered on the belief in one God and following the example of Muhammad;
it is the largest minority religion in India. About 14.2% of the country's population or approx. 200 million people
identify as adherents of Islam (2018 estimate). It makes India the country with the largest Muslim population outside
Muslim-majority countries. Muslims are a majority in states Jammu and Kashmir and Lakshadweep, and live in high
concentrations in Uttar Pradesh, Bihar, West Bengal, Assam, and Kerala.

Christianity
Tradition says that Christianity was introduced to India by Thomas the Apostle, who visited Muziris in Kerala
in 52 CE and proselytized natives at large, who are known as Saint Thomas Christians (also known as Syrian
Christians or Nasrani) today. Christianity in India has different denominations like Roman Catholicism, Protestantism,
Oriental Orthodoxy etc.
Most Christians reside in South India, particularly in Kerala, Tamil Nadu and Goa. There are also large
Christian populations in the North-east Indian states. Christianity in India was expanded in the 16th century by
Catholic Portuguese expeditions and by Protestant British and US missionaries in the 18th century.

Sikhism
Sikhism began in fifteenth-century North India with the teachings of Guru Nanak and nine successive
human gurus. As of 2011, there were 20.8 million Sikhs in India. Punjab is the spiritual home of Sikhs, and is the only
state in India where Sikhs form a majority. There are also significant populations of Sikhs in neighbouring
Chandigarh, Delhi and Haryana, which were historically part of Punjab.

Buddhism
Buddhism is an Indian, transtheistic religion and philosophy. Around 8.5 million Buddhists live in India, about
0.7% of the total population, although unofficial estimates suggest up to 12 million. Buddhism as a religion is
practised mainly in the foothills of the Himalayas and is a significant religion in Sikkim, Arunachal Pradesh, the
Ladakh district in Jammu and Kashmir, Darjeeling in West Bengal and the Lahaul and Spiti districts of Himachal
Pradesh.

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CASTE SYSTEM
The caste system in India is the paradigmatic ethnographic example of caste. It has origins in ancient India,
and was transformed by various ruling elites in medieval, early-modern, and modern India, especially the Mughal
Empire and the British Raj. According to the Oxford English Dictionary, it is derived from the Portuguese casta,
meaning "race, lineage, breed” It is today the basis of educational and job reservations in India. The caste system
consists of two different concepts, varna and jati, which may be regarded as different levels of analysis of this
system.

Varna
Varna literally means type, order, colour or class and was a framework for grouping people into classes, first
used in Vedic Indian society. It is referred to frequently in the ancient Indian texts. The four classes were the
Brahmins (priestly people), the Kshatriyas (also called Rajanyas, who were rulers, administrators and warriors), the
Vaishyas (artisans, merchants, tradesmen and farmers), and Shudras (labouring classes). The varna categorisation
implicitly had a fifth element, being those people deemed to be entirely outside its scope, such as tribal people and
the untouchables.

Jati
Jati, meaning birth, is mentioned much less often in ancient texts, where it is clearly distinguished from
varna. There are four varnas but thousands of jatis. The jatis are complex social groups that lack universally
applicable definition or characteristic, and have been more flexible and diverse than was previously often assumed.

Hierarchal Segregation
1. Residency
2. Use of water wells and streets
3. Occupation
4. Endogamy

B. POLITICAL ASPECT
2. MAGTIBAY, MIGUEL P.
UNDER THE BRITISH FLAG
 1600s: The British East India Company Arrived
After several attempts to open trade with a powerful ruler of India failed in the earliest years of the 1600s,
King James I of England sent a personal envoy, Sir Thomas Roe, to the court of the Mogul emperor Jahangir in
1614.
Roe, recognizing that other approaches had been too subservient, was deliberately difficult to deal with at
first. He correctly sensed that earlier envoys, by being too accommodating, had not gained the emperor's respect.
Roe's stratagem worked, and the East India Company was able to establish operations in India.

 1700s: Britain Established Dominance

The East India Company established its own army in India, which was composed of British troops as well as
native soldiers called sepoys. The British interests in India, under the leadership of Robert Clive, gained military
victories from the 1740s onward, and with the Battle of Plassey in 1757 were able to establish dominance.
The East India Company gradually strengthened its hold, even instituting a court system. British citizens
began building an "Anglo-Indian" society within India, and English customs were adapted to the climate of India.

 1800s: "The British Raj" Entered the Language

The British rule in India became known as "The Raj," which was derived from the Sanskrit term raja
meaning king. The term did not have official meaning until after 1858, but it was in popular usage many years before
that.
This system of governance was instituted on 28 June 1858, when, after the Indian Rebellion of 1857, the
rule of the British East India Company was transferred to the Crown in the person of Queen Victoria.

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  1857-1858 The Indian Mutiny
The Indian Rebellion of 1857, which was also called the Indian Mutiny, or the Sepoy Mutiny, was a turning
point in the history of Britain in India. Uprisings spread throughout British India. It was estimated that less than 8,000
of nearly 140,000 sepoys remained loyal to the British. The conflicts of 1857 and 1858 were brutal and bloody, and
lurid reports of massacres and atrocities circulated in newspapers and illustrated magazines in Britain.
The British dispatched more troops to India and eventually succeeded in putting down the mutiny, resorting
to merciless tactics to restore order. The large city of Delhi was left in ruins. And many sepoys who had surrendered
were executed by British troops.
After the Sepoy Rebellion, Parliament ends the rule of the East India Company and places India directly
under control of the British crown. India is now governed by colonial rule, with British officials ruling in the name of the
queen and holding top positions. Britain slows the reforms that so angered Hindus and Muslims, but continues to
develop India for its own economic benefit.

FIGHT FOR INDEPENDENCE

During World War I, Britain declared war on Germany on India's behalf, without consulting Indian leaders.
More than 1.3 million Indian soldiers and laborers were serving in the British Indian Army by the time of the Armistice.
A total of 43,000 Indian and Gurkha soldiers were killed.
Although most of India rallied to the British flag, Bengal and Punjab were less easy to control. Many Indians
were eager for independence, and they were led in their struggle by an Indian lawyer and political newcomer known
as Mohandas Gandhi (1869–1948)
In April 1919, more than 5,000 unarmed protesters gathered at Amritsar, in Punjab. British troops fired on
the crowd, killing an estimated 1,500 men, women, and children, even though the official death toll of the Amritsar
Massacre as reported was 379.

 The Amritsar massacre spurs the call for independence.

After World War I, Indians are growing increasingly frustrated that they fought for Britain but still have no
freedom in their own land. On April 13, 1919, British General Reginald Dyer fires on a peaceful public meeting in
Amritsar, in northern India. The resulting massacre convinces many Indians that they need independence from
Britain.

 Mahatma Gandhi launches a campaign of non-cooperation (1920).

Following the Amritsar massacre, Indian lawyer Mahatma Gandhi launches a two-year campaign of non-
cooperation. He encourages Indians to leave British institutions, return British honors, and practice self-reliance.
While Gandhi is forced to stop the campaign upon his arrest and imprisonment in 1922, he goes on to become the
most recognized leader of the Indian nationalist movement.

 Gandhi begins the Salt March (1930)

Aiming to raise mass support for Indian nationalism, Gandhi decides to end the British monopoly on salt.
Indians are forbidden to touch any salt not sold by the British government, so Gandhi organizes a march to the sea.
Gandhi and his followers begin their Salt March on March 12, 1930, and after they successfully reach the sea on
April 6, the salt campaign grows exponentially.

3. BLAZA, AARON JOSHUA P.

INTERNAL CONFLICTS
Prior to reforms, religious conflicts, mostly violent, between Hindus and Muslims are prevalent across India.
The British parliament sought to solve the problems of India’s religious-based political system by introducing series of
political reforms. One of these laws is the Government of India Act of 1935. This further continued the political
reforms brought about by Government of India Acts of 1909 and 1919. Under the new act, all provinces may have a

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fully-elected representation in government. The assurance of equal representation is retained. Hindus and Sikhs both
may be elected to “General” seats, while Muslims may be elected to “Muhammadan” seats.
The Elections of 1937 was the first to be held under the new act. The Indian National Congress, a Hindu-
dominated party led by Jawaharlal Nehru won an overwhelming 707 legislative seats. On the other hand, the All-India
Muslim League, the leading Muslim-dominated party led by Muhammad Ali Jinnah, fared poorly with 106 seats as
other Muslims have aligned themselves to other parties, which have a total of 772 seats. Having a number of Muslim
representatives in the government, Jinnah hoped that the religious conflict could be reconciled under the new
government, but the Hindu majority, led by Nehru had disallowed Jinnah’s party to form coalition ministries with them
in the United Provinces and elsewhere after the elections.
After a victory, Nehru agreed to participate in the government and insisted that there were but “two” political
parties in India, the British Raj and his Indian National Congress. Jinnah proved that his All-India Muslim League is a
formidable “third party” when in 1937 to 1939, the people’s view of Nehru’s party and British Raj were that they were
biased and are insensitive to the Muslim demands. A 1939 report published by the Muslim League proved how
wretched a Muslim life would be under a Hindu rule and that they will only become second-class citizens in a land
that will soon gain independence only for the few. The political rift between Hindus and Muslims have intensified at
the eve of World War II, when Nehru’s party accused the British of betrayal for unilaterally declaring a state of war
against Germany. The fall-out between the British and the Congress was seen as an opportunity for Jinnah to raise
the concerns of the Muslim Community and demanded for a separate Muslim state.

PARTITION AND INDEPENDENCE

In 1940, in a conference in Lahore, Jinnah and the Muslim League approved a resolution that calls for an
independent state for Muslims, to be known as “Pakistan.” The territory that they have specified is the North-western
and Eastern portions (present-day Pakistan and Bangladesh), which are identified as provinces with a Muslim
majority.
During the war, The Cripps Mission tried to reconcile the differences of the two parties in a plan by the
Churchill government submitted to Indian leaders to make India a British Dominion and in a concession with the
Muslim League, they may vote to “opt-out” of that status. Gandhi disliked the plan and calls the British to “Quit India”
and the problem of the partition to be decided by the people. Meanwhile, Jinnah calls the same but likewise adds a
demand for a separate state.
As the war ended, Britain agreed to India’s self-rule. The 1946 Elections saw the Muslim League winning
most of the Muslim vote, preventing Gandhi to unify India and thus, accelerates the movement to call for a separate
Muslim state.
In 1947, the British Parliament passed the Indian Independence Act of 1947 and sends Lord Louis
Mountbatten as new Viceroy in March 1947 to devise an agreement with Nehru and Jinnah and administer the
Transfer of Power from the British to the “responsible hands” in no later than June 1948. Fearing more violent
religious conflicts, Nehru and Jinnah agreed to the partition of India, in contrast to Gandhi’s suggestion. Sir Cyril
Radcliffe, a British lawyer from London, was tasked to draw the borders between the two dominions, using
demographic maps and statistics based on religions. Districts and Provinces with Hindu and Sikh majority was
included in India, while those with Muslim majority are included in Pakistan. Prime Minister Attlee had further moved
the deadline in order to withdraw the British troops on the midnight of August 14, 1947.
On August 15, 1947, India and Pakistan was launched as a dominion of Britain. The partition led to mass
migrations of Hindus to the Indian side of the border, while Muslims in India transferred to the Pakistan side of the
border. On August 17, the borders were finally closed. After independence, the two are now in conflict over the
control of the region of Kashmir, which seems left to be partitioned. The Indian and Pakistani governments had since
been in a stalemate up to the present.

PART II. REALITY TODAY

4. KATIMBANG, ERIKA MAE E.
OVERPOPULATION IN INDIA
Today, the world is inhabited by over 7 billion people, with China topping the list as the most populated
country, followed by India. Unbearable burden of population is clearly seen in four regions of the world – Southeast

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Asian countries in which China, Pakistan, Bangladesh, Philippines, India, etc are the forerunners. India is the second
most populous country in the world, after China. Overpopulation is among the more serious problems that our
country is facing, as it accounts for more than 1.20 billion people of the over 7 billion population of the world. Rapid
population growth is the bane of the economy of underdeveloped, poor and developing countries in the world.

CAUSES OF OVERPOPULATION
1. Increased Life Expectancy: While the average annual birth rate in India, which was 42 per thousand in
1951-61, decreased to 24.8 per thousand in 2011, the country has seen its decadal death rate decline to 8.5
in 2001-2011 from 42.6 in 1901-1911. Since the death rate has also gone down sharply, the population has
tended to grow very fast in India.
2. Lack of family planning: If we add the number of miscarriages in the country with an estimated number of
births in one year, even in this age of family planning, one woman, on an average, is pregnant at any time in
the age group of 15-45 years.  All this happens because a large number of people in our country are
illiterate with no awareness about the various advantages of family planning and the ill-effects of
overpopulation on society.
3. Early marriage: Child marriage is one of the major social problems of our country. Even today, a large
number of boys and girls are married at an age when they are not prepared for family responsibilities either
socially, emotionally, physically and mentally. Marriage at unripe age also leads to higher mortality rate of
infants.
4. Lack of education: The failure of family planning is directly related to large-scale illiteracy that also
contributes to early age of marriage, low status of women, high child-mortality rate etc. Uneducated families
cannot grasp the issues and problems caused by the increasing population rate. They are least aware of the
various ways to control population, usage of contraceptives and birth control measures.
5. Religious reasons: The people who are conservative and orthodox are opposed to the use of family
planning measures. Women in such families are not allowed to take part in family planning because they are
not supposed to go against the wishes of God. There are also women who argue that children are born with
God’s will and women are destined to give birth to children. Muslim households have more birth rates than
Hindu communities.
6. Compulsions of poverty: Poverty is another reason for the increase in population in our country. Many poor
parents produce more children not because they do not have the knowledge about contraceptives, but
because they require children to assist them in earning their livelihood.
7. Problem of mind-set: Generally, illiterate and uneducated children inherit their father’s behaviour and
choose to give birth to as many children as is necessary to increase the income of their family. As a son is
supposed to be the bread earner of the family, the poor do not mind producing any number of girl children in
their desire to be ultimately blessed by a male child.

EFFECTS OF OVERPOPULATION
 Burden on natural resources: Overpopulation leads to over-exploitation of natural resources. Increasing
population puts further burden on the earth’s capacity to produce food and water and other natural
resources. As a result, the underprivileged people have to suffer malnutrition, starvation and unhealthy living
conditions Excessive increase in population leads to grave forms of pollution and deforestation.
 Rise in poverty: Overpopulation leads to the vicious circle of illiteracy, unemployment and poverty. Lack of
education deprives the people of the opportunities to earn their livelihood and fulfil the bare necessities of
their lives.
 Widening the rich-poor gap: Overpopulation leads to an unequal distribution of wealth and income.
Consequently, the gap between the rich and poor is widened further.
 Migration of Population: Migration is a natural human trait. When the burden of population in any area
becomes imbalanced compared to the available financial resources, people tend to move away from their
original location.

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UNDERUTILIZATION OF HUMAN CAPITAL
In reality, the underdeveloped countries are suffering from shortage of technically trained and highly skilled
and educated persons and the developed countries are maintaining high level of investment on the development of
manpower resources.

The key difference is, human capital considers education and healthcare as a way to give rise to labor
productiveness. Human development depends on the ideology that education and healthcare are basic to human
prosperity, so when individuals can read and write and capability to lead a long and solid life, they will have the ability to
make other choices they need.

Problems of Human Capital Formation in India

The main problems of human capital formation in India are;
1. Growing Population- Increasing population unfavorably influences the nature of human capital in
underdeveloped and developing nations like India. Hence, it diminishes per head availability of existing means
like sanitation, jobs, drainage, water purification system, city plan, hospitals, education centers, training centers,
food supply, nutrition, roads, electricity, power, and so forth.
2. Brain Drain-Migration of highly talented workers is ‘brain drain’. As a result, this proves to be a hindrance to the
procedure of human capital formation in the home country.
3. Inept Manpower Planning-There is immature labor planning in developing nations where no efforts have been
made either to increase the standard of training at various stages to keep up the demand and supply of
technical labor. It is a tragic reflection on the wastage of local power and local talent.
4. Long-standing Process-The procedure of human development is a long haul approach since skill arrangement
requires some duration.
5. High Poverty Levels-A good amount of population lives underneath the poverty line and don’t have access to
basic wellbeing and education. Therefore, a substantial segment of society can’t bear to get an advanced
education or costly health treatment for major diseases.

5. ROSALES, MYKA ANGELA L.

LOW LEVEL OF TECHNOLOGY
New technologies are being developed every day. These technologies require capital and trained and
skilled personnel. Therefore, the deficiency of human capital and the absence of skilled labor are major hurdles in
spreading technology in the economy.
Accordingly, prevalence of low level of technology is one of the most common issues of an underdeveloped
economy like India. Modern technology is difficult to adopt in Indian productive system with its untrained, illiterate and
unskilled labor. This resulted in inefficient and insufficient production leading towards general poverty in its economy.
As stated in Economic Times (2018), India’s labor productivity (economic output per hour of work) is just 15% of US
levels.
Specifically, India has obsolete techniques of production that are largely being applied in agriculture, the
mainstay of India’s livelihood. This economic sector is not performing well. The farmers grow crops using more land,
labor and animal inputs than technology. For a long time, output per hectare, a common measure of agriculture
productivity, remained low in India. These are the following evidences:
 In potato farming, the productivity of an Indian farmer is less than half of that of the US, Germany and
the Netherlands.
 In the case of rice, it is less than half of that of the US and Egypt.
 For wheat, it is less than half of that of Britain and Egypt.
The problem is aggravated, as 83% of Indian farmers are marginal and small farmers (holding less than 2
hectares of land) do not have the means to understand technology. This has prevented many farmers from entering
contact farming with corporates such as ITC and Coca-Cola, as the latter were not sure about the quality of the
former’s produce. Thus, reforming the agriculture sector will not help without embracing technology. With more than

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50% of India’s population still earning their livelihood from agriculture, lower productivity means an adverse income
distribution.
Technology, the key to raising productivity, is here to stay. As much as 90% of increases in per capita
income come from technological innovation. The country should then find a strategy that will make technology
inclusive.

CORRUPTION
Prime Minister Narendra Modi swept into power in May 2014 and promised to break the cycle of corruption.
Today, Modi’s promise remains a promise. Corruption is still thriving in India, in all the usual places. This is
evidenced by a string of high-profile scandals that shook his administration like:
 A 7.8 billion-euro weapons contract to purchase 36 Rafale fighter planes from France
 United Breweries Group chairman, Vijay Mallya, was accused of defaulting on $1.4 billion worth of
loans before leaving the country in March 2016.
 A $1.8 billion bank fraud uncovered last February 2018 at India’s state-owned Punjab National Bank

NiMo Scandal
In February 2018, India’s Central Bureau of Investigation (CBI) accused one of India’s most prominent and
celebrated billionaires, Nirav Modi (no relation to the Prime Minister), of masterminding a $1.8 billion fraud against
one of the country’s biggest state-run banks, Punjab National Bank. Modi has been featured among Forbes’ 100
Richest Indians list and World's Billionaires list for several years.
Punjab National Bank (PNB) first filed a criminal complaint against Modi and his associates for causing the
bank a “wrongful loss” of an estimated 40 million dollar but with further investigations, the figure was changed to $1.8
billion, allegedly the result of hundreds of fraudulent transactions carried out since 2011. Eventually, investigations by
the Income Tax department triggered allegations that the Nirav Modi group has:
 massive unaccounted funds
 major discrepancies in stock valuations
 multiple instances of suspicious foreign funding, and
 The brand routinely accepted payments in cash--many of which were unaccounted for--including a
significant transaction in the name of a Congress leader’s wife.
Indian National Congress has levelled multiple allegations against Prime Minister Modi’s Bharatiya Janata
Party for not having detected earlier that a scam of this size was seemingly being carried out via a state-owned bank,
and for allowing Nirav Modi to leave the country. Meanwhile, the BJP in turn has tried to shift blame back on to the
Congress, since the alleged scam is suggested to have begun while Congress was still in power.
In addition, corruption in Modi’s India is also evidenced by a string of reports from Transparency
International (2018). India ranked 78th in corruption out of 175 countries. While this is a slight improvement from last
year’s ranking, the recent ranking is still worse than the 2015 ranking.

Country Corruption Corruption Corruption Corruption Corruption Rank 2018

Rank 2010 Rank 2015 Rank 2016 Rank 2017
India 87 76 79 81 78/175
Philippines 134 95/168 101/168 111/180 99/175
Pakistan 143/168 117/168 116/168 117 117/175

India’s situation is neither new nor unique in the emerging market world. Populist governments of all kinds
and sorts come to the office with the promise to change this situation. But all too often it is the existing situation they
embrace once in office.

6. MANAIG, KRISTIN C.
AGRICULTURAL DISTRESS

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 India is a country which is widely famous for its agriculture throughout the world. But the sad plight of our
country lies in the fact that here farmers face too many problems. Such as lack of basic amenities of irrigation
systems, agricultural implements and short or long-term loans. Exploitation of farmers at the hands of moneylenders
is a very prominent and common issue that immediately needs to be looked into. Stories of farmers committing
suicide appear in the media almost every day. As per the India economic survey 2018, the estimated data states that
percentage of agricultural workers in total work force is likely to drop up to 25.7% by 2050 from 58.2% in 2001.
Therefore, agriculture needs to be revived at the earliest.

POVERTY
The population of India living below the poverty line declined from 37% in 2004-2005 to 22% in 2011-12
(Planning Commission data). In 2011-12, 22% of the population (one in five Indians) lived in extreme poverty. This
figure is expected to decline to 5% by 2022, as per World Poverty Clock estimate. However, 80% of the poor in India
live in villages. Rajasthan, Madhya Pradesh, Uttar Pradesh, Bihar, Jharkhand, Orissa, and Chhattisgarh have the
poorest areas. 43% of the poor belong to Scheduled Caste or Scheduled Tribe categories, as per World Bank
statistics (2016). This disparity needs immediate attention of the government.

PART III. MOVING TOWARDS PROGRESS

7. CALUPIG ALONA JEAN O.
ECONOMIC REFORM OF 1991
On July 1991, India has taken a series of measures to structure the economy and improve the BOP
position. The new economic policy introduced changes in several areas.
The policy has important feature which are:
1. Liberalization
2. Extending Privatization
3. Globalization of the economy
Which are known as LPG

Economic Reform
 The term economic reform broadly indicates necessary structural adjustments to external events. It includes
the function of country’s spending to the level parallel to its income and thereby reducing fiscal deficits
 This requires gradual reduction in import and increase in export. These adjustments also require market
change in order to make economy flexible.

New Economic Policy

 A new plan in action by the government to influence production and capital formation of a country
 It was started in the year 1991

Reasons for Implementing New Economic Policy

 There was poor performance of public sector
 The scope for private sector was limited
 There was a sudden fall in Foreign Exchange Reserves
 There was more expenditure than income
 International investors were not encouraged by government

Main Features of Economic Reforms

 Liberalization
 Privatization
 Globalization

Liberalization

10
  Free from direct or physical control by the government in the way of trade
 Before 1991 there were some controls of Government, they are:
o Industrial licensing system was a rigid process
o They were controlling the price
o Import licensing
o Restrictions on investment

Economic Reforms under Liberalization

 Industrial reforms
 Financial reforms
 Fiscal reforms
 External reforms

Industrial Reforms
 Abolition of licensing except some products like cigar, etc
 Contradiction to public sector, number of items produced by public sector was reduced.
 Government give freedom to import capital
 Producers are given the freedom to decide what to produce and how much to produce

Financial Reforms
 Banking sector of the country had expanded a lot
 It also allowed Foreign Institutional Investors to invest

Fiscal Reforms
 It relates to total revenue and total expenditure of government
 Before liberalization, the taxes were very high and this encouraged tax evasion by the people
 After liberalization, taxes were reduced
 The procedure for paying taxes was simplified
 Non- planned expenditure by the Government was reduced

External Reforms
 Foreign Exchange Reserves
o In 1991, devaluation of rupee so that foreign countries can buy Indian good.
o This provided good flow of trade
o At present, exchange rate is determined by supply and demand in international trade
 Foreign Trade Policy
o Abolition of import licensing except for some cases
o Quantitative restrictions were removed
o Tariff restrictions were moderated
o Export duties has withdrawn

ADVANTAGES OF LIBERALIZATION DISADVANTAGES OF LIBERALIZATION

 Industrial licensing  Increase in unemployment
 Increase the foreign investment  Loss to domestic units
 Increase the foreign exchange reserve  Increase dependence on foreign nations
 Increase in consumption and control over  Unbalanced development
price
 Check on corruption

11
  Reduction in dependence on
commercial borrowings
Privatization
 Transfer of function, activity or organization from the public sector to private sector
Two ways for Privatization
 Sale of public sector units to private sector
 Withdrawal of public sector units- joint
ADVANTAGES
 Reduction in economic burden
 Increase in efficiency
 Reduction in sense of irresponsibility
 Reduction in political interference
 Encouragement of new inventions
Globalization
 defined as the process associated with increasing openness, growing economic independence and Deeping
economic integration in the world economy
 reduction of trade barriers
 free flow of capital
 free flow of technology
 free movement of technology
POSITIVE EFFECTS OF GLOBALIZATION
 Adoption of new and flexible production
methods
 Reconstruction of production and trade
patterns
 Raise of foreign capital
 Qualitative improvement in the country
 Rise in the generation of employment
 Rise in banking and foreign sector efficiency
 Increase in the technology
POSITIVE EFFECTS OF NEW ECONOMIC POLICY
 Impressive increase in growth rate of GDP
 I.T. industry has achieved global recognition
 Increase in the government revenue, ex.
National income
 Increase in foreign exchange reserves
 Recognition of India as an emerging power
external
DISADVANTAGES
 Industrial sickness
 Lack of welfare
 Class struggle
 Increases inequality
 Opposition of employees
 Problem of financing
 Increase in unemployment
 Ignores the weaker sections
 Ignores the national importance
NEGATIVE EFFECTS OF GLOBALIZATION
 Loss of domestic industries
 Exploits human resources
 Decline in income
 Lead to commercial and political colonialism
 Widening gap between rich and poor
 Dominance of foreign institutions
NEGATIVE EFFECTS OF NEW ECONOMIC POLICY
 Neglect to agriculture
 Urban concentration of growth was high but
neglected rural
 Preference for handicrafts were low
 There is a cultural erosion in the country
 It is like economic colonization
12
  Shift from monopoly market to competitive
market
 Decline in poverty

8. VILLAPANDO, AILEEN M.
AGRICULTURE
Introduction
Agriculture is the primary source of livelihood for about 58 per cent of India’s population. Gross Value Added
by agriculture, forestry and fishing is estimated at Rs 18.53 trillion (US$ 271.00 billion) in FY18.
The Indian food industry is poised for huge growth, increasing its contribution to world food trade every year
due to its immense potential for value addition, particularly within the food processing industry. The Indian food and
grocery market is the world’s sixth largest, with retail contributing 70 per cent of the sales. The Indian food processing
industry accounts for 32 per cent of the country’s total food market, one of the largest industries in India and is
ranked fifth in terms of production, consumption, export and expected growth. It contributes around 8.80 and 8.39
percent of Gross Value Added (GVA) in Manufacturing and Agriculture respectively, 13 per cent of India’s exports
and six per cent of total industrial investment.

Market Size
During 2017-18* crop year, food grain production is estimated at record 284.83 million tonnes. In 2018-19,
Government of India is targeting foodgrain production of 285.2 million tonnes. Milk production was estimated at 165.4
million tonnes during FY17, while meat production was 7.4 million tonnes. As of September 2018, total area sown
with kharif crops in India reached 105.78 million hectares.
India is the second largest fruit producer in the world. Production of horticulture crops is estimated at record
314.7 million tonnes (mt) in 2018-19 as per third advance estimates.
Total agricultural exports from India grew at a CAGR of 16.45 per cent over FY10-18 to reach US$ 38.21
billion in FY18. In FY2019 agriculture exports were US$ 38.54 billion. India is also the largest producer, consumer
and exporter of spices and spice products. Spice exports from India reached US$ 3.1 billion in 2017-18. Tea exports
from India reached a 36 year high of 240.68 million kgs in CY 2017 while coffee exports reached record 395,000
tonnes in 2017-18.
Food & Grocery retail market in India was worth US$ 380 billion in 2017.

Investments
According to the Department for Promotion of Industry and Internal Trade (DPIIT), the Indian food
processing industry has cumulatively attracted Foreign Direct Investment (FDI) equity inflow of about US$ 9.08 billion
between April 2000 and March 2019.
Some major investments and developments in agriculture are as follows:
 Investments worth Rs 8,500 crore (US$ 1.19 billion) have been announced in India for ethanol production.
 By early 2019, India will start exporting sugar to China.
 The first mega food park in Rajasthan was inaugurated in March 2018.
 Agrifood start-ups in India received funding of US$ 1.66 billion in 2013-17 in 558 deals.
 In 2017, agriculture sector in India witnessed 18 M&A deals worth US$ 251 million.

Government Initiatives
Some of the recent major government initiatives in the sector are as follows:
 Prime Minister of India, launched the Pradhan Mantri Kisan Samman Nidhi Yojana (PM-Kisan) and
transferred Rs 2,021 crore (US$ 284.48 million) to the bank accounts of more than 10 million beneficiaries
on February 24, 2019.
 The Government of India has come out with the Transport and Marketing Assistance (TMA) scheme to
provide financial assistance for transport and marketing of agriculture products in order to boost agriculture
exports.

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  The Agriculture Export Policy, 2018 was approved by Government of India in December 2018. The new
policy aims to increase India’s agricultural exports to US$ 60 billion by 2022 and US$ 100 billion in the next
few years with a stable trade policy regime.
 In September 2018, the Government of India announced Rs 15,053 crore (US$ 2.25 billion) procurement
policy named ‘Pradhan Mantri Annadata Aay SanraksHan Abhiyan' (PM-AASHA), under which states can
decide the compensation scheme and can also partner with private agencies to ensure fair prices for
farmers in the country.

Achievements in the sector

 Sugar production in India has reached 27.35 million tonnes (MT) in 2018-19 sugar season, as of March 15
2019, according to the Indian Sugar Mills Association (ISMA).
 The Electronic National Agriculture Market (eNAM) was launched in April 2016 to create a unified national
market for agricultural commodities by networking existing APMCs. Up to May 2018, 9.87 million farmers,
109,725 traders were registered on the e-NAM platform. 585 mandis in India have been linked while 415
additional mandis will be linked in 2018-19 and 2019-20.
 Agriculture storage capacity in India increased at 4 per cent CAGR in 2014-17 to reach 131.8 million metric
tonnes.
 Coffee exports reached record 395,000 tonnes in 2017-18.
 In 2014-18, 10,000 clusters were approved under the Paramparagat Krishi Vikas Yojana (PKVY).
 Around 100 million Soil Health Cards (SHCs) have been distributed in the country during 2015-17 and a soil
health mobile app has been launched to help Indian farmers.

Road Ahead
India is expected to achieve the ambitious goal of doubling farm income by 2022. The agriculture sector in
India is expected to generate better momentum in the next few years due to increased investments in agricultural
infrastructure such as irrigation facilities, warehousing and cold storage. Furthermore, the growing use of genetically
modified crops will likely improve the yield for Indian farmers. India is expected to be self-sufficient in pulses in the
coming few years due to concerted efforts of scientists to get early-maturing varieties of pulses and the increase in
minimum support price.
The government of India targets to increase the average income of a farmer household at current prices to
Rs 219,724 (US$ 3,420.21) by 2022-23 from Rs 96,703 (US$ 1,505.27) in 2015-16.
Going forward, the adoption of food safety and quality assurance mechanisms such as Total Quality
Management (TQM) including ISO 9000, ISO 22000, Hazard Analysis and Critical Control Points (HACCP), Good
Manufacturing Practices (GMP) and Good Hygienic Practices (GHP) by the food processing industry will offer several
benefits.

INDUSTRIAL OUTPUT
Introduction
Manufacturing has emerged as one of the high growth sectors in India. Prime Minister of India, Mr.
Narendra Modi, had launched the ‘Make in India’ program to place India on the world map as a manufacturing hub
and give global recognition to the Indian economy. India is expected to become the fifth largest manufacturing
country in the world by the end of year 2020*.

Market Size
The Gross Value Added (GVA) at basic current prices from the manufacturing sector in India grew at a
CAGR of 4.34 per cent during FY12 and FY18 as per the second advance estimates of annual national income
published by the Government of India. During April-September 2018, GVA from manufacturing at current prices grew
14.8 per cent year-on-year to Rs 138.99 trillion (US$ 198.05 billion). Under the Make in India initiative, the
Government of India aims to increase the share of the manufacturing sector to the gross domestic product (GDP) to
25 per cent by 2022, from 16 per cent, and to create 100 million new jobs by 2022. Business conditions in the Indian
manufacturing sector continue to remain positive.

14
Investments
With the help of Make in India drive, India is on the path of becoming the hub for hi-tech manufacturing as
global giants such as GE, Siemens, HTC, Toshiba, and Boeing have either set up or are in process of setting up
manufacturing plants in India, attracted by India’s market of more than a billion consumers and increasing purchasing
power.

Cumulative Foreign Direct Investment (FDI) in India’s manufacturing sector reached US$ 76.82 billion during April
2000-June 2018.

India has become one of the most attractive destinations for investments in the manufacturing sector. Some
of the major investments and developments in this sector in the recent past are:
As of December 2018, premium smartphone maker OnePlus is anticipating that India will become its largest
Research and Development (R&D) base within the next three years.
India’s manufacturing PMI stood at 51.7 in May 2019. Also companies start to spend more on hiring and
anticipate good growth in future prospects.
As of October 2018, Filatex India, a polymer manufacturer, is planning to undertake forward integration by
setting up a fabric manufacturing and processing unit.
As of August 2018, IISC’s Society of Innovation and Development (SID) and WIPRO 3D are collaborating to
produce India’s first industrial scale 3D printing machine.
For its Commercial Vehicles, Ashok Leyland is utilising machine learning algorithms and its newly created
telematics unit to improve the performance of the vehicle, driver and so on.

Government Initiatives
The Government of India has taken several initiatives to promote a healthy environment for the growth of
manufacturing sector in the country. Some of the notable initiatives and developments are:

In October 2018, the Government of India released the draft National Policy on Electronics (NPE) which has
envisaged creation of a US$ 400 billion electronics manufacturing industry in the country by 2025.
In September 2018, the Government of India exempted 35 machine parts from basic custom duty in order to
boost mobile handset production in the country.
Government of India is in the process of coming up with a new industrial policy which envisions
development of a globally competitive Indian industry. As of December 2018, the policy has been sent to the Union
Cabinet for approval.
In Union Budget 2018-19, the Government of India reduced the income tax rate to 25 per cent for all
companies having a turnover of up to Rs 250 crore (US$ 38.75 million).
Under the Mid-Term Review of Foreign Trade Policy (2015-20), the Government of India increased export
incentives available to labour intensive MSME sectors by 2 per cent.
The Government of India has launched a phased manufacturing programme (PMP) aimed at adding more
smartphone components under the Make in India initiative thereby giving a push to the domestic manufacturing of
mobile handsets.
The Government of India is in talks with stakeholders to further ease foreign direct investment (FDI) in
defence under the automatic route to 51 per cent from the current 49 per cent, in order to give a boost to the Make in
India initiative and to generate employment.
The Ministry of Defence, Government of India, approved the “Strategic Partnership” model which will enable
private companies to tie up with foreign players for manufacturing submarines, fighter jets, helicopters and armoured
vehicles.
The Union Cabinet has approved the Modified Special Incentive Package Scheme (M-SIPS) in which,
proposals will be accepted till December 2018 or up to an incentive commitment limit of Rs 10,000 crore (US$ 1.5
billion).

15
Road Ahead
India is an attractive hub for foreign investments in the manufacturing sector. Several mobile phone, luxury
and automobile brands, among others, have set up or are looking to establish their manufacturing bases in the
country.

The manufacturing sector of India has the potential to reach US$ 1 trillion by 2025 and India is expected to
rank amongst the top three growth economies and manufacturing destination of the world by the year 2020. The
implementation of the Goods and Services Tax (GST) will make India a common market with a GDP of US$ 2.5
trillion along with a population of 1.32 billion people, which will be a big draw for investors.

With impetus on developing industrial corridors and smart cities, the government aims to ensure holistic
development of the nation. The corridors would further assist in integrating, monitoring and developing a conducive
environment for the industrial development and will promote advance practices in manufacturing.

Exchange Rate Used: INR 1 = US$ 0.0142 as of Q2 FY19

Notes: * - According to the Global Manufacturing Competitiveness Index published by Deloitte

9. CARTABIO, BIANCA S.
SERVICES
Indian Administrative Service (IAS)
The Indian Administrative Service (IAS) is the administrative arm of the All India Services.[3] Considered the
premier civil service of India, the IAS is one of the three arms of the All India Services along with the Indian Police
Service (IPS) and the Indian Forest Service (IFoS). Members of these three services serve the Government of India
as well as the individual states. IAS officers may also be deployed to various public sector undertakings.
The Indian Administrative Services was formerly known as the Imperial Civil Service. It was established
during 1858 under the name of ICS and it was changed to IAS on January 26, 1950. The selection for the officers of
Indian Administrative Services was by taking Civil Services Examination.

 Duties and Responsibilities of IAS Officer:

To collect revenue and function as court officials in matters of revenue and crime (for the revenue courts
and criminal courts of executive magistrates), to maintain law and order, to implement union and state government
policies at the grass-roots level when posted to field positions i.e. as sub-divisional magistrates, additional district
magistrates, district magistrates and divisional commissioners, and to act as an agent of the government in the field,
i.e. to act as an intermediary between the public and the government.
To handle the administration and daily proceedings of the government, including the formulation and
implementation of policy in consultation with the minister-in-charge of a specific ministry or department.
To contribute to policy formulation, and to make a final decision in certain matters, with the agreement of the
minister concerned or the council of ministers (depending upon the weight of the matter), when posted at the higher
level in the Government of India as a joint secretary, additional secretary, special secretary or secretary equivalent,
secretary and Cabinet Secretary, and in state governments as secretary, principal secretary, additional chief
secretary or special chief secretary and chief secretary.

The Indian Forest Service (IFS)

The Indian Forest Service (IFS) is one of the three All India Services of the Government of India. The other
two All India Services being the Indian Administrative Service (IAS) and the Indian Police Service (IPS). It was
constituted in the year 1966 under the All India Services Act, 1951, by the Government of India.
The Indian Forest Services was established during 1864 under the name of Imperial Forest Service and was
replaced during 1966 as Indian Forest Services or IFS. Officers are recruited via an open competitive examination
conducted by the UPSC and then trained for about two years by the Central Government at Indira Gandhi National

16
Forest Academy. Their services are placed under various State cadres and joint cadres, being an All India Service
they have the mandate to serve both under the State and Central Governments.
The main mandate of the service is the implementation of the National Forest Policy in order to ensure the
ecological stability of the country through the protection and participatory sustainable management of natural
resources. An IFS officer is wholly independent of the district administration and exercises administrative, judicial and
financial powers in his own domain.

The Indian Police Service (IPS)

The Indian Police Service (IPS) is the policing arm of the All India Services. It replaced the Indian Imperial
Police that was established during 1905 in 1948, a year after India became independent from the United Kingdom.
The service is not a force itself but provides leaders and commanders to staff the state police. Its members
are the senior officers of the police. IPS officers are recruited from Civil Services Examination. They are also
promoted from State Police Services and DANIPS.
To fulfil duties based on border responsibilities, in the areas of maintenance of public peace and order,
crime prevention, investigation, and detection, collection of intelligence, VIP security, counter-terrorism, border
policing, railway policing, tackling smuggling, drug trafficking, economic offences, corruption in public life, disaster
management, enforcement of socio-economic legislation, bio-diversity and protection of environmental laws etc.
Leading and commanding the Indian Intelligence Agencies like Research and Analysis Wing (R&AW),
Intelligence Bureau (IB), Central Bureau of Investigation (CBI), Criminal Investigation Department (CID) etc., Indian
Federal Law Enforcement Agencies, Civil and Armed Police Forces in all the states and union territories.
To lead and command the force with courage, uprightness, dedication and a strong sense of service to the
people.
Endeavor to inculcate in the police forces under their command such values and norms as would help them
serve the people better.
Inculcate integrity of the highest order, sensitivity to aspirations of people in a fast-changing social and
economic milieu, respect for human rights, broad liberal perspective of law and justice and high standard of
professionalism.

BANKING AND FINANCE

 Banking in India has started the 18th century.
 Bank of Hindustan (1770-1832) and General Bank of India (1786-1791) were the very first banks, which
failed later.
 The oldest bank which still has its existence is the State Bank of Calcutta, renamed as the Bank of Bengal in
the year 1809. Other two banks were the Bank of Madras and the Bank of Bombay.
 In the year 1921, these three banks got merged and become the Imperial Bank of India and renamed as the
State Bank of India (SBI) in the year 1955.
 Before the Reserve Bank of India emerged in the year 1935, the SBI acted as the central bank.
 In the year 1960, the SBI took control over 8 subordinate banks, now called as associate banks.
 14 major banks were nationalized in the year 1969 and 6 more banks were nationalized in the year 1980.
These nationalized banks have the control over the country’s banking sector as they have a large network.
 NABARD (National Bank for Agriculture and Rural Development) was established in July 1982, which looks
after the development of the cottage industry, small industry and village industry, and other rural industries.
 At present we have 93 commercial banks, 15 private sector banks, 44 foreign banks, 27 public sector
banks, out of which 21 are nationalized banks and six are SBI and its associate banks.

10. MAGPANTAY, JOYCE MAE J.

MODERNIZATION
1 Contact with the West (Westernization)
2 Industrialization and Infrastructure
3 Social Movements and Cultural Survival

17
1. Contact with the West
India resisted changes in its ancient beliefs about the way the world works. For the longest time, it believed
Gandhi’s doctrine that modernization means Westernization. This was strengthened when parts of the economy and
society were modernized during the second half of the 19 th century of laissez-faire and free trade under the influence
of the British Raj. During that time, British policy turned India into a pioneer of Third World industrialization, with an
economy increasingly based on domestic capital and entrepreneurship combined with imported technology. But
modernization stalled when the British abandoned free trade and laissez faire due to pressures from Lancashire and
the crisis of Imperial finance.
At present, Indian economy heavily depends on foreign technology and finance in order to support capital-
intensive modes of industrial and agricultural development. The ideological model of development adopted by the
state has been greatly influenced by Western modes of development, growth and modernization, which, in part,
perceive rural development as a problem of sectoral development, dependent upon an industrial urban economy.
Indian development has, therefore, followed a path of capitalist industrialization that has concentrated employment,
manufacturing and construction within India's largest cities and exacerbated rural poverty, leading to mass migration
to the cities. For example, Bombay's immigration accounts for 35-40 percent of its annual population growth.
Regional imbalances have thus been created by the dominance of the Indian metropolis over the region or state in
which each is located.
2. Industrialization and Infrastructure
 Narmada River Valley Project - a scheme to build 30 major dams, 135 medium dams and 3,000 minor
irrigation schemes, stretching from the Sardar Sarovar Dam in Gujarat to the Narmada Sagar in
Madhya Pradesh
 Irrigation
But even these have negative effects like loss of great expanses of forest and its associated flora and fauna,
the traditional habitat of the tribal communities, while the irrigation will only benefit those who own land,
furthering exploitation and capitalism in the country.

3. Social Movements and Cultural Survival

The emergence of social movements in India can be seen as both a response to the development process
(and the incapacity or refusal of the state to provide adequate solutions to the dilemma of the affected
communities) and as an attempt to create political alternatives outside the purview of organized political parties.
These movements have been organized around a variety of political, cultural, economic, ecological and
educational issues like:
 Preservation of the environment, livelihood, and culture
 Rehabilitation and resettlement
 social forestry programs of the government

BRICS
BRICS is an economic initialization for the developing countries of Brazil, Russia, India, China, and South
Africa. The BRICS members are known for their significant influence on regional affairs. In 2015, the five BRICS
countries represent over 3.1 billion people, or about 41% of the world population; four out of five members (excluding
South Africa at #24) are in the top 10 of the world by population. As of 2018, these five nations have a combined
nominal GDP of US$18.6 trillion, about 23.2% of the gross world product, combined GDP (PPP) of around US$40.55
trillion (32% of World's GDP PPP) and an estimated US$4.46 trillion in combined foreign reserves.
As of 2011, five countries were among the fastest growing emerging markets. It's important to note that the
Goldman Sachs thesis isn't that these countries are a political alliance (like the European Union) or a formal trading
association. Instead, they have the potential to form a powerful economic bloc. Leaders from BRICS countries
regularly attend summits together and often act in concert with each other’s interests.
Due to lower labor and production costs, many companies also cite BRICS as a source of foreign expansion
opportunity.

18
  2001 - BRIC nations were forecasted to grow more quickly than the G7, the seven most advanced
global economies. At the time, the G7 included Canada, France, Germany, Italy, Japan, the United
Kingdom and the United States.
 2003 - Dreaming with BRICs: The Path to 2050.” This was again published by Goldman Sachs. Wilson
and Purushothaman claimed that, by 2050, the BRIC cluster could grow to a size larger than the G7 (in
USD), and the world’s largest economies would therefore look drastically different in four decades. I.e.
the largest global economic powers no longer would be the richest, according to income per capita.
 2007 - "BRICs and Beyond" was published that centered on BRIC growth potential, along with the
environmental impact of these growing economies and the sustainability of their rise. The report
considered a Next 11, or N-11 (a term for eleven emerging economies), in relationship to the BRIC
nations, as well as the overall ascendancy of new global markets.
After several years of impressive growth figures, the BRICS economies slowed down after 2010 as the
aftershocks of the 2008 financial crisis reined in spending in Western economies. Goldman Sachs merged its BRICS
investment fund, which was focused on generating returns from these economies, with the broader Emerging
Markets Equity Fund. The fund had lost 88% of its assets from a 2010 peak. In an SEC filing, Goldman Sachs stated
that it did not expect "significant asset growth in the foreseeable future" in the BRICS fund. Per a Bloomberg report,
the fund had lost 21% in five years.

PART IV. THE FUTURE AHEAD

11. MOLINO, MARK ANGELO B.
PROJECTIONS OF INDIA’S FUTURE
India and key Association of Southeast Asian Nations members will become increasingly vital drivers of
Asian growth over the coming decade, while China's economy slows to a pace comparable with the U.S., new
projections from the Japan Center for Economic Research show. India's gross domestic product is likely to top $6
trillion by 2028, overtaking Japan as the world's third-largest economy. India has a relatively large contribution of
labor input to GDP growth. The number of people employed in India is increasing as the population expands, and the
average length of education, in terms of years, is also increasing rapidly.
Based on the GDP growth outlook, the report also looks at how economies will stack up in terms of scale
(nominal GDP using market dollar conversion) and prosperity (nominal GDP per capita). Though China's growth rate
will decelerate toward 2030, its economic scale, which was equivalent to about 60% of the U.S. in 2016, will reach
80% by 2030. But like Japan in the mid-1990s, when it approached 70% of the U.S. economy, China will not get over
the hump and actually surpass America. But in the 2030s, India is likely to be the main driving force for economic
growth in Asia. India, whose scale was equivalent to about 50% of Japan in 2016, will pull ahead in 2028 and be 1.2
times larger in 2030. This will make it the world's third-largest economy, up from seventh place now.
Indian economy has seen a major growth in the last few decades. The credit for this boom largely goes to
the service sector. Agriculture and associated activities have also been improvised to match the global standards and
the export of various food products has seen an upward trend thereby adding to the economic growth. The industrial
sector does not lag behind a bit. A number of new large scale as well as small scale industries have been set up in
the recent times and these have also proved to have a positive impact on the Indian economy.
The Central Statistics Organisation (CSO) has recognized India as one of the fastest growing economy. It
has been estimated that if we continue to grow at this rate, we would likely become one of the top three economic
powers in the world over the next decade or two.

Factors Aiding Economic Growth

Here are some of the factors responsible for India’s economic growth:
 The Foreign Direct Investment (FDI) has increased for many sectors including automobiles, construction
and computer software.
 The employment opportunities in many sectors including IT and transport have increased.
 The number of start-ups in India is growing and thus creating more business and employment opportunities.
 The industrial sector of the country is prospering. The merchandise exports and imports of India are growing
at a good rate.

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India have a pool of talented and creative youths who are hardworking and ambitious. Their government is also
taking initiatives to improve the economic condition of the country by bringing in new opportunities for employment
and business. No wonder, their economy is growing at a good pace.
The economy of India is the eleventh largest economy in the world by nominal GDP and the fourth largest
by purchasing power parity (PPP). In the 1990s, following economic reform from the socialist-inspired economy of
post-independence India, the country began to experience rapid economic growth, as markets opened for
international competition and investment. In the 21st century, India is an emerging economic power with vast human
and natural resources, and a huge knowledge base. Economists predict that by 2020, India will be among the leading
economies of the world.
Although India was late and slow in modernization of industry in general in the past, it is now a front-runner in the
emerging Knowledge based New Economy.
 The Government is pursuing reforms and liberalization not out of compulsion but out of conviction and
consensus.
 Indian companies are no longer afraid of Multinational Companies. They are becoming competitive and
some of them are going global.
 Fatalism and contentment of the Indian mindset have given way to optimism and ambition. Introspective and
defensive approach has been replaced by outward-looking and confident attitude.
 The Indian culture, which looked down upon wealth as a sin and believed in simple living and high thinking,
has started recognizing prosperity and success as acceptable and necessary goals.
 Graduates no longer queue up for safe government jobs. They prefer and enjoy the challenges and risks of
becoming entrepreneurs and global players.
 Stable democracy and institutions.
 Largest democracy with stable, mature, vibrant and exemplary democratic governance and institutions.
 Strong and transparent legal and accounting system.
 Primacy of rule of law and independent judiciary.
 Numerous watchful and proactive NGOs.
 Free, vocal, alert and quality media.

POSITIVE ASPECTS
Due to globalization, there has been significant flow of inward foreign direct investment. MNCs are getting a
chance to explore various different markets across economies and explore the untapped potential.
More and more medical innovations are coming in which are improving the health situation in India. The
infant mortality rate and the malnutrition rate have significantly come down since the last decade.
1. Financial – emergence of worldwide financial markets and better access to external financing for corporate,
national and sub national borrowers.
2. Economic – realization of a global common market, based on the freedom of exchange of goods and
capital.
3. Social – the achievement of free circulation by people of all nations

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