The roots of the Aditya Birla Group date back to the 19th century in the picturesque town of Pilani

, 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.[1] 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.[2] 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.
Contents
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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

[edit]The

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.
[edit]The

First Phase

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.[3]

[edit]The

Second Phase

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.[4] 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.
[edit]The

Third Phase

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.
[edit]The

Fourth Phase

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

Maruti Suzuki India Limited. corporates like the Tata Group. The programs are put into practice by the employees who are crucial to this process. the CSR programs of corporations like GlaxoSmithKline Pharmaceuticals’ focus on the health aspect of the community. Also Corporates increasingly join hands with Non-governmental organizations (NGOs) and use their expertise in devising programs which adress wider social problems. building schools and houses. and Indian Oil Corporation. 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 . CSR policies. Provision of improved medical and sanitation facilities. 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. a more comprehensive method of development is adopted by some corporations such as Bharat Petroleum Corporation Limited . For example.Through donations and charity events. On the other hand.[7] For example. They set up health camps in tribal villages which offer medical check-ups and treatment and undertake health awareness programs. This is exclusively undertaken by SAP India in partnership with Hope Foundation. defending attacks and increasing business competitiveness. The basic objective of CSR in these days is to maximize the company's overall impact on the society and stakeholders. strategies and goals for their CSR programs and set aside budgets to fund them. CSR is not a new concept in India. to name a few. an NGO that focuses mainly on bringing about improvement in the lives of the poor and needy . clothing. [5] [edit]Current State of CSR in India As discussed above. the Aditya Birla Group.[6] Companies have specialised CSR teams that formulate policies. Ever since their inception.developing countries. The ability to make a significant difference in the society and improve the overall quality of life has clearly been proven by the corporates. have been involved in serving the community. indian companies who export and produce goods for the developed world need to pay a close attention to compliance with the international standards. shelter and medical care of street children. 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. CSR has gone through many phases in India. 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. a lot of work is being undertaken to rebulid the lives of the tsunami affected victims. and Hindustan Unilever Limited. practices and programs are being comprehensively integrated by a increasing number of companies throughout their business operations and processes. environment and healthcare etc. These programs are often determined by social philosophy which have clear objectives and are well defined and are aligned with the mainsteeam business. 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. many other organizations have been doing their part for the society.

The political and economic policies followed by the Muslim rulers propagated the growth of towns in various parts of the country. With Delhi as a major trade centre. India was well known for its textiles one of the chief items of export. History of Indian trade has extensive accounts about domestic trade in medieval India by the foreign travelers. Trade history of India also shows hardwood furniture. NGOs and the government should be facilitated so that a combination of their skills such as expertise. Carpets were used both in ancient and medieval India. strategic thinking. Textiles from Gujarat were sent to the Arab countries and to South-east Asia.[8] 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. Indian trade history reflects that despite the frequent political upheavals during the 12th to the 16th centuries. River routes also promoted trade between different parts of the country. India was famed for her fabulous wealth ever since the ancient times till the establishment of the British Empire. when it has a foothold in the major and the not so major economies of the world. the country was still prosperous. A larger variety of ornamental work in cut stones. were unmatched for their beauty and skill and were very popular in the European countries. Indian urbanization saw further growth. ivory. well-maintained roads linking various parts of the country facilitated domestic trade has been mentioned. India’s . But the skill of carpet weaving touched new heights only during the Mughal era in the 16th century. covering the two hundred years of Mughal rule. Descriptions of the wide variety of excellent goods sold in the Indian markets of those days are found in the records of foreign travelers. Indian arts and crafts patronized by Indian rulers. embellished with inlay work was a very popular item for expert. Partnerships between companies. These towns grew into trade and industrial centers which in turn led to the general prosperity. pearl and tortoise shells were produced in South India. manpower and money to initiate extensive social change will put the socio-economic develpment of India on a fast track. the furniture was modeled on the European design. From the 16th to the 18th centuries. Pearl fishing was a major industry here.lasting solution to the social woes . The objective of this brief paper is to go through the timeline of history of Indian Trade right from ancient times till today. Different communities were known to dominate trade in various parts of the country. Although the expensive carvings and inlays were inspired by the ornate Mughal style.

Indian khadi cotton. There were hardly any manufacturing facilities to suffice the needs of the growing Indian population. By the time India gained Independence from the Britishers in 1947. the state coffers were amply stocked with gold and silver. This period was marked by decline of the Mughal Power. But India was always able to enjoy a favorable balance in her trade relations with other countries. Pre Colonial: The economic history of India since Indus Valley Civilization to 1700 AD can be categorized under this phase. India today stands at a over a trillion economy. 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. Indian trade has benefited and so has the world. Indian spices and dry fruit are just a few of the famous gifts India has given to the world. is going to touch new heights in coming years. As predicted by Goldman Sachs. Promoting the availability of goods from different parts of the world has seen a rise in more trade with other countries. the Global Investment Bank. 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.exports were seen to far exceed her imports both in the number of items as well as in volume. Indian trade history is remarkable. Colonial and Post Colonial. The magnitude of India’s foreign trade during the medieval period can only be imagined. Foreign trade was in the hands of both local and foreign merchants. During Indus Valley Civilization Indian economy was very well developed. The history of Indian economy can be broadly divided into three phases: Pre. the third largest economy in the world.Colonial. Kashmiri carpets. The economic levels have improved in the urban and semi-urban areas. Literacy is penetrating deep in to even the far reach areas. the political conditions then brought about a drastic change in the situation. This booming economy of today has to pass through many phases before it can achieve the current milestone of 9% GDP. thus creating awareness and to higher consumption patterns for all kinds of goods across all sections of the society. It had very good trade relations with other parts of world [editor's note: India developed the way most other nations did: by peaceful . in terms of purchasing power. the economy was entirely geared to only trade. by 2035 India would be the third largest economy of the world just after US and China. as revealed by the Indian trade history. Bombay Duck. The country has realized that at the end of the day. However in the 18th century. Arab traders shipped Indian goods to European countries through the Red Sea and the Mediterranean ports. 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. Darjeeling tea. maximizing use of one’s own resources is what makes all the difference. when we peep in the trade history of India. The British imposed heavy duties on both imports and exports in order to disrupt the foreign trade relations of India with the other countries. With huge earnings from her exports of various commodities. The rise of the British power in the mid 18th century dealt a fatal blow to the prosperity of the country. It will grow to 60% of size of the US economy.

American companies like Citibank and IBM India. each village in India was a self sufficient entity. and a multitude of services. India Gross Domestic Product is worth 1296 billion dollars or 2. However. modern agriculture. the then prime minister of India chose to stay neutral. Services are the major source of economic growth. – Source from foreigntradeexchange. After India got independence from this colonial rule in 1947. More here. 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. a wholly owned subsidiary of the main IBM World Trade Corporation. the process of rebuilding the economy started. Each village was economically independent as all the economic needs were fulfilled with in the village. according to the World Bank. which was not viewed quite well by the US government. There was a two-way depletion of resources. handicrafts. But this was the time when Indians went to US to study and gradually build the Indian Diaspora in that country. USA and USSR. there have been so many twists and turns that it can put even the highly watched soap operas to shame. The leaning of US towards Pakistan during the Bangladesh War of 1971 did not go down well with the Indian government.8% in 1952.settlement. For this various policies and schemes were formulated. Then came the phase of Colonization. . by the people and for the people” was expected to come close to this new democratic nation on the rise.com circa 2008: US-India Trade Relations: The Importance of Partnership India and US trade relation has seen its ups and downs. was operating in the Indian subcontinent since the turn of the 20th century. As India became independent. The period from 1960s to 1970s was the most turbulent time for Indian and American manufacturers.09% of the world economy. as the countries of the world started to group themselves around the two superpowers. He started the Non-Alignment movement. From the time India got her independence to the present day. the country that defined democracy as “of the people. The personal dislike of the then government officials in both the countries hampered the foreign trade between them. British used to buy raw materials from India at cheaper rates and finished goods were sold at higher than normal price in Indian markets. The arrival of East India Company in India ruined the Indian economy. wars and invasions].3% in 1700 AD to 3. which is evident from the coins of various civilizations found at the site of Indus valley.60 percent in the last quarter. The economy has posted an average growth rate of more than 7% in the decade since 1997. Before the advent of East India Company. The excessive licensing and permit system of the country hampered the American exporters as well as importers. India’s GDP Growth Rate The Gross Domestic Product (GDP) in India expanded at an annual rate of 8. Even before India got her freedom from the British. During this phase India’s share of world income declined from 22. India’s diverse economy encompasses traditional village farming. reducing poverty by about 10 percentage points. a wide range of modern industries. accounting for more than half of India’s output with less than one third of its labor force.

IT giants like Microsoft. iron/steel products. valves.761. Since the last decade. which boosted international trade.686 and $3.551. One of the biggest exports of India is perhaps in the IT sector.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. The amount has been going up since then as more and more Indian exporters comply with stringent safety and . India has emerged as a software giant thanks to the ingenuity. IBM along with Coco Cola had their license revoked by the Indian minister George Fernandez. organic chemicals and machineries like taps. USSR started to disintegrate and ultimately collapsed. Indian exporters as well as importers also cheered the changes the government started to implement. which IBM did not adhere to. The export of shrimp and other seafood have risen from $188 million in 1999 to $270 million in 2000. 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. All these initiatives bore fruit and started a rapid increase in trade volume between the two countries. Hyderabad and Gurgeon into “the back office of the world”. and the several section of the market was opened for direct investment by American investors. a joint Indo-US Working Group on Trade was established with participation on the ministerial level from both sides. IBM. American exporters made $2. was then the finance minister under the Narshimha Rao led government who started the process of liberalization. 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. The thawing of the relationship started in the last decade of the 20th century as the former alley and trading partner of India. The fact that most Indians can speak and converse in proper English have turned cities like Bangalore. Indian manufacturers are bringing in the much needed foreign exchange by exporting precious stones. For President George Bush. Wipro. The focus of the group was to regularly discuss on issues important to the improvement of the trade relation between USA and India. and 3M have made India one of their hottest destinations. While in 1993 Indian exporters brought in $4. and that too only in goods! If we add the software export. The Bush government in 2001 restored 42 products in the GSP for India. GSP or Generalized System of Preference is a list of product specific to a country. changes. These have doubled the volume of foreign trade between the two countries. and others have not only developed a national presence. In the long run. A New Beginning The new millennium brought a new chapter in the Indo-US trade relationship. The visit of President Bill Clinton saw the signing of the historical “Vision Document”. Another big area where Indian exporters are thrilled with the rise of indo-us trade relation is agriculture and fisheries. hard work. Intel. the relationship between US and India remained somewhat frosty. During the same time. Indian exporters were thrilled by the demand of Indian products specially shrimp and processed stones in the US market.663 respectively. The test brought a host of sanctions. Manmohan Singh. the Indo-US bilateral trade reached a staggering $21. it was seen that the Glenn Administration Sanction had a negative impact on the American exporters and manufacturers. transmission lines. which lifted some of the sanctions boosting the trade relationship between the two countries. and technological prowess of Indians. Mr. etc. It sought to reduce foreign investment to 26%. That is why an amendment was brought and sanctioned by President Clinton. The nuclear test in 1998 saw a new change in relationship between USA and India. As cold war raged on. The present prime minister of India. but made its foray into the US market as well. The same figure in 2000 was $10. The license policies were heavily reviewed much to the comfort of the companies doing business with India. As a result. As a part of the agreement. the Indian government began the long needed economic reforms of its present laws. which affected both American exporters as well as Indian exporters. 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. The Main Items of Trade The first product on the list that has benefited Indian exporters very much is Jewelry. These are just the material things that are being exported by India. textile floor coverings. Through outsourcing the growing IT sector of India and companies like Infosys. Clinton government was quick to notice the growing economic power and India and identified it as one of the top 10 emerging market. worked gold and diamond jewelries textiles. The government changed in both countries but the reform and liberalization started by the previous government continued. which enjoys reduced duty access to the US market.68 billion.

indicating a lower rate of return on investments. General Electrical. … Future Trade Between India [and the] United States No international trade between two countries can be without hiccups. during the late 1980s India relied . From FY 1980 to FY 1989. However. or 3. other agro-based food products produced in India have also captured the US market. and Yum! Group have a substantial presence in the Indian market. flavor. they have seen a steady rise in the demand for Engineering goods and machinery including electrical goods (30. The red tape and multiple layers of permits and certifications frustrate the American investors who are used to working fast. high-end cars. from indianchild. but in the context of overall international FDI done by USA abroad. Many American manufacturers give up hope of conducting business with India. retail and insurance does not go well with companies doing business with India. As a result. distilled spirit and wine frustrate USA exporters. it held the 24th position among US exporters. Besides these. The company is expecting an order of anything between $86 billion to $105 billion! The growing middle class. required a higher rate of investment to attain comparable economic growth than did most other low-income developing countries. Both the countries are keen on improving the amount of international business transaction between them. – More here. As for Indian exporters. Industry grew at an annual rate of 6.50%. but some barriers remain. organic chemicals (7%).quality standard of US Food and Drug Administration. got a further boost due to the new Boeing orders in both passenger and freighter category. The same is between India and United States of America. In matter of doing business with India.5 percent. is a great market for USA exporters and manufacturers.6 percent. however. delayed completions. and aroma than Mexican or South American varieties that were previously found in the US market. Similarly. Whirlpool. as claimed by the Indian Minister Kamal Nath. and infrastructure. the economy grew at an annual rate of 5. which occupies 10. the main contention against America and other developed nations is the subsidy they give to their farmers. but by the mid-1980s further growth in private savings was difficult because they were already at quite a high level. The slow progress of economic reforms especially in these sectors is holding back the much-needed FDI that can flow from US to India. Coco Cola. think twice before entering the market. Though at present USA is the second largest investor in India. long-gestating. the caps in FDI in certain sectors like banking. and underuse of capacity were contributing factors. precious stones and metals (9. the aviation industry.25%).24% as of 2002. cost overruns. especially in the biotechnology field. makes many American manufacturers. It puts the economically weak farmers in India in a poor position. Beside these popular brands. The middle class of India today is flushing with money like never before. India’s patent law. multinational companies like McDonalds. while Indian exporters stood at the 18th position. A high rate of investment was a major factor in improved economic growth. The fact that many commodities. In fact. or the latest gadgets. Part of the adverse Indian experience was explained by investment in large. are much better in taste. India only shares . Mention can be made of Indian mangoes. many FMCGs have found success by adopting unique business methods like using the small sachet of popular items like shampoo. The Antidumping & Countervailing law of USA is hurting many Indian manufacturers. Furthermore.3 percent on a per capita basis. Ford have all scripted their success story in the Indian market.20%). food products have to go through stringent checks and quality standards of Indian government forces. 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. which is one of the latest exports of India that have thrilled the American importers due to their demand. capital-intensive projects. Pepsi.6 percent and agriculture at a rate of 3.com: India’s Growth Since 1980 9/1995 edited by Daniel Knight The rate of growth improved in the 1980s. such as electric power. India. optical instruments and equipments (also 7%). As for US exporters. for example. Even luxury brands are eyeing their share of the market whether it is designer clothes. The high tariff barriers in some sectors. Companies like Proctor and Gamble. which is nearly equal to the population of the USA. Indian mangoes. Subway. especially. which is not WTO-consistent and poor enforcement of Intellectual Property Rights Protection. Private savings financed most of India’s investment. Investment went from about 19 percent of GDP in the early 1970s to nearly 25 percent in the early 1980s. and detergent. irrigation. toothpaste.

seminomadic shepherds. but low productivity and intermittent employment keep incomes low. it was estimated that 332 million people. especially rises in food prices. Steel production rose from 1. ch.8 percent. and cottage industries. was 27. Officials and economists make an important distinction between the formal and informal sectors of the economy. the Indian economy was transformed between 1947 and the early 1990s. services. 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. forestry. The steady increase in the proportion of services in the national economy reflects increased market-determined processes. such as the spread of rural banking. forestry. 7). accounted for 32. or land-owning farmer. Poverty was reduced during the 1980s. which contributes more than 50 percent of GDP. The Indian government’s poverty line is based on an income sufficient to ensure access to minimum nutritional standards. Bihar. Space and Nuclear Programs. Life expectancy increased from twenty-seven years to fifty-nine years. refrigerators. or 220 million people. and public. lived below the poverty line. telecommunications. and quarrying. In FY 1991. About 10 million Indians are considered upper class. and government itself. lawyer. although it is possible that the poorer half of the population improved its position slightly. transportation. The bulk of the population is employed in the informal economy. Farmers and other rural residents make up the large majority of India’s poor. Appendix). construction.and private-sector services. such as defense spending (see Agricultural Credit. and such publicsector enterprises as railroads. and Jammu and Kashmir. In the 1980s. Estimates in the late 1970s put the number of people who lived in poverty at 300 million. the growth of the middle class was reflected in the increased consumption of consumer durables. Studies have suggested that income distribution changed little between independence and the early 1990s. in order to receive new loans. In the early 1990s. Defense Spending. increased more than fiftyfold. this ch. contributed 39. considerable dualism remains in the Indian economy. and even most persons above the poverty line have low levels of consumption compared with much of the world. real estate and finance. are capable of lowering the standard of living of many families who normally live just above the subsistence level. utilities.4 percent. and in FY 1989 it was estimated that about 26 percent of the population. ch.. and utilities. and Madhya Pradesh. and automobiles. Himachal Pradesh.8 percent of GDP in FY 1991 (see table 17. In FY 1991. This commitment to economic reform was reaffirmed by the government that came to power in June 1991. ch. including manufacturing. The greatest disappointment of economic development is the failure to reduce more substantially India’s widespread poverty.5 million tons a year to 14. motorcycles. or unorganized. the contribution to GDP of industry. physician. The bulk of the poor work. The number of kilowatt-hours of electricity generated. including agriculture. or nearly 50 percent of the population at the time. ch. fishing. Some own very small amounts of land while others are field hands. The urban poor include many construction workers and petty vendors. or 38 percent of the population. and roughly 300 million are part of the rapidly increasing middle class. including trade. fishing. 10).increasingly on borrowing from foreign sources (see Aid. 2). It also includes petty vendors and some small-scale mechanized industry in both rural and urban areas. and its scientists and engineers produced an atomic explosive device (see Major Research Organizations. this ch. Uttar Pradesh. domestic and foreign businesses hoped to . 7. for example. Although the population increased by 485 million between 1951 and 1991. The formal economy consists of large units in the modern sector for which statistical data are relatively good. economy is largely rural and encompasses farming. Punjab. Typical middle-class occupations include owning a small business or being a corporate executive. 10). major financial and commercial businesses. economic changes led to the growth in the number of Indians with significant economic resources. lived below the poverty line. communications. white-collar worker. India’s primary sector.7 million tons a year. the government had no choice but to agree to further measures of economic liberalization. The informal. Despite a sometimes disappointing rate of growth. Slower economic growth and higher inflation in FY 1990 and FY 1991 reversed this trend. mining. such as televisions. and least prevalent in Haryana. or migrant workers. 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. The modern sector includes large-scale manufacturing and mining. ch. The country produced space satellites and nuclear-power plants.). 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. By the early 1990s. and government activities. This trend led to a balance of payments crisis in 1990. Poverty is most prevalent in the states of Orissa. However.

Such dwellings lack piped water. the estimated growth rate for FY 1994 was 5.3 percent. and the country found it increasingly difficult to borrow internationally. 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. especially in the area of foreign trade. the 1990′s. In the early 1990s. and then accelerated again. thus reducing the flow of remittances (see Size and Composition of the Work Force. reaching 11 percent in late FY 1994. Housing and the ancillary utilities of sewer and water systems lag considerably behind the population’s needs.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. ch. One of those exceuses has been that there is a Hindu rate of growth that is significantly lower than the rate of growth that . In the early 1990s. which helped fuel economic growth. As a result. The bureaucracy has been rather competent in generating excuses for the failure of their policies.5 percent in FY 1993. 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. 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.take advantage of India’s economic liberalization to increase the range of consumer products offered to this market. ch. many Indian workers resident in Persian Gulf states either lost their jobs or returned home out of fear for their safety. Judged with respect to an promoting the welfare of the Indian people those policies were ridiculously bad. and much of the bureaucracy. This increase was attributed to a sharp increase in prices and a shortfall in such critical sectors as sugar. oppose liberalization. to the point of stupidity. 9). Liberalization in the Early 1990s Increased borrowing from foreign sources in the late 1980s. They hypocritically aver that they are doing what they are doing in the interest of the people of India. India had and probably still has a parasitical class of politicians and bureaucrats that micromanage the economy in the interests of their class. There has been some official allegiance to socialism with a goal of achieving it through Stalinist central planning. Inflation peaked at 17 percent in FY 1991. cotton.). The central government fell in November 1990 and was succeeded by a minority government. fell to 9. and new areas were opened to private capital. However. The problem came to a head in August 1990 when Iraq invaded Kuwait. labor unions. 3. ch. and electricity. this ch.9 percent in FY 1989 to 4. India was probably on the short list of almost every economist outside of India of the countries with the worst economic systems. Many analysts agree that the poor suffer most from the increased inflation rate and reduced growth rate.” The policies implemented by the Government of India before the last decade were brilliant only in maintaining the power and influence of the bureaucrats. considerable progress was made in loosening government regulations. The direct economic impact of the Persian Gulf conflict was exacerbated by domestic social and political developments. 8). and oilseeds.9 percent in FY 1990 to 1. The government has attempted to build housing facilities and utilities for urban development. including private firms that have benefited from protectionism. Administrative controls and other aspects of government policy have discouraged many private investors from constructing housing units. India remains one of the world’s most tightly regulated major economies. India’s cities have large shantytowns built of scrap or readily available natural materials erected on whatever space is available. led to pressure on the balance of payments. and the price of oil soon doubled. Political Issues. 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. including sidewalks.1 percent in FY 1991. – Source from sjsu. Many restrictions on private companies were lifted. There is also considerable concern that liberalization will reinforce class and regional economic disparities. sewerage. but the efforts have fallen far short of demand. which fell from 6. In addition. The balance of payments crisis of 1990 and subsequent policy changes led to a temporary decline in the GDP growth rate. In March 1995. Many powerful vested interests. The cumulative impact of these events shook international confidence in India’s economic viability.

Government planning also involved requiring businesses to produce in particular areas. The first five year plan (1951-55) called for the planned development of only a few industries. The large enterprises in seventeen industries were nationalized. the bureaucratic control over the economy. with its high level of population and poverty. When a business was hopeless an owner might take away. the product of P. It also might require the production of certain goods such as cheap cloth for the poor. The two makes of automobiles produced in India. Mahalanobis’ work. or half the rate of growth. These programs to help agriculture and the countryside generally came from resources which the Government took away from agriculture and the countryside.other countries could achieve. Such a program was not likely to alleviate poverty and so in 1971. Not only did the Indian Government require businesses get bureaucratic approval for expanding productive capacity. but when India’s performance is compared to that of other countries one sees that the Government’s contribution to growth was negative. The fertilizer subsidy may have been of greater benefit to the wealthier farmers than to the poorer farmers. Indians out from under the oppression of the bureaucracy of the Indian Government have succeeded spectacularly in professions and business. 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. for producing new products or expanding production capacities. 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. India got domestic production but it was production of low quality. License were required for starting new companies. The followi shows the magnitude of the shortfall in growth that India’s oppressive system is responsible for. What the bureacrats dare not say is that in maintaining a pool of economic rents the bureaucrats’ policies were an outstanding success. could ill afford low rates of economic growth. all the equipment that could be moved and disappear themselves. Between 1970 and 1989 agricultural production in India did grow but the rate of increase was only 2. Nehru chose the goal of economic self-sufficiency with economic development to be achieved by central planning modeled on that of the Soviet Union. illegally. This development probably put an end to famine from natural causes. was more inteventionist. Jawarharlal Nehru. The second five year plan (1956-1961). busineeses had to have bureaucratic approval for laying off workers and for shutting down. One can imagine how chaotic and unproductive a business would be under such conditions. It sought to eliminate the importation of consumer goods. The Government of India generally takes credit for growth. India’s output did grow but not as much as did that of other countries in the region. the ones that private industry had not developed for one reason or another. The policies stifled economic growth and India. labor intensive enterprises. Indira Gandhi. Probably the misguidance of India development can be attributed to India’s first prime minister. by means of high tariffs and low quotas or banning some items altogether. One of the most wonderful things to happen to the world was the genetic development of high-yielding grain varieties. 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. The planning and adminstration of the economic did not emerge full blown. the Government tried to eliminate poverty by promoting small. Ultimately this meant starving agriculture to feed inefficient industries the Government favored. remained unchanged for more than forty years. By cutting off imports India gave a protected market to domestic producers.C. obsolete products. under Nehru’s daughter. 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. 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. This is when India got its License Raj. It tried to implement the elements of British socialism and combine them with the tenets of Mahatma Gandhi. In such cases the Government would try to keep the business functioning by means of subsidies to the employees. usually economically backward areas. particularly luxuries. copied from models of the British Austin and Hillman of the 1950′s. In the first five year plan the other industries were left to the market.1 percent per year . the Green Revolution. 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.

Honey exports however. after the US and the European Union.753 crore) which accounted for over 30% of the export animal products other than milk. from globalpolicy.” the Paraguayan foreign minister said. 4. this also poses exciting opportunities. and Gulf countries.358 crores during 2006-07 followed by Silk (Rs. 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. Among exports of other animal products other Raw skin/hide accounted for over 60% of exports earning Rs. and not solely on account of the extraordinary growth that we have witnessed in some sectors.7%. For India. reliable and enduring ground rules to further the development of trade and investment”. eggs.224 crores during 2006-07. Mauritius. Tariff concessions on a reciprocal basis and the mutual reduction of Customs duties should follow soon after. in shell. As may be seen from the following table. artwork & antiques are leading imports into India from America. the Philippines and Thailand were 3. – Complete report here. 3. 436 crores in 2006-07. this offers major trading possibilities since Mercosur is the third largest common market in the world. Birds. 1.” the official spokesman for the Indian Ministry of Commerce said in New Delhi. which together accounts for nearly 78% of net milk and milk products exports during the year 2006-07. 318. which has been keen to develop markets outside the US and the EU. The protocol calls for “clear-cut. “India is a significant point of reference for Mercosur. India’s exports of poultry products attained a peak in 2006-07 (Rs.com Most Popular Products Traded Between India & America 6/29/2007 by Daniel Workman. 343 crores in 2006-07 as against Rs. The demand for bovine meat in international market has sparked a sudden increase in the meat exports from India. The procedure for a Preferential Trade Agreement (PTA) and a subsequent Free Trade Agreement (FTA) is likely to be concluded by August 2003. . The main markets for Indian bovine meat are Malaysia. respectively. For Mercosur.5%. The cost of the License Raj more importantly is in the slower pace of alleviating poverty. while military products. The exports of skimmed milk reached Rs. Again the cost of the License Raj to growth in India was about half the rate of growth. India.whereas over the same per period the annual rates of growth of farm output in Indonesia. Philippines. preserved or cooked constitute the largest segment with about 50% share. such as information technology and specialty chemicals. from vuatkerala. 3. Concentrated milk and cream products such as skimmed milk continues to be the largest item of export. decreased by half contributing only 1% of the total exports. 78 crores in 2001-02.3 crores) as compared to previous years. Malaysia. from: suite101. its largest trading associates outside of Latin America. egg and meat. edit by Daniel Knight Zinc. Paraguay.org: Free Trade Between Mercosur and India 7/18/2003 by Ranja Sengupta. can offer a market which is both large and possesses considerable buying power. fresh. Frozen bovine meat dominated the exports with a contribution of over 97%.7%. with its second highest growth rate among the developing nations and a population of over one billion. butter oil. prior to the actual signing of the agreement. ghee and other milk fat together accounted for just over 10% of the net milk and milk product exports from India during 2006-07. – More here. “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. 3.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. On the other hand butter. India’s export of meat and meat products reached Rs. Meat products accounted for very low share of around 1%. – More here. Processed egg products accounted for about 48% of the exports.S. 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. sugar & steel are the fastest growing Indian exports to the U.6% and 4.

rugs) … $602.400%) 3. Industrial machinery … $431. Steelmaking materials … $3. Jewellery (e.1 million (up 25. exports.4%) 4.7%) 5.India exported US$21.7%. 1. rose 26.1%) 6. transformers & accessories … $398 million (1. Zinc … US$42. The U. Industrial organic chemicals … $398. rings) … $2.7 billion in 2006. up 37.5% in 2006 – down from the 14. Medicinal.3 billion (14. up 16. down 14%) 7. America’s trade deficit with India was $11. Cotton household furnishings & clothing …US$3.6 million (3.8%.4 billion (11. Textile floor coverings (e.6%) 9. trade deficit with India increased 8. up 13. Generators. In terms of the merchandise flow between the two countries. Precious metals … $12. Sugar … $3. Semi-finished iron & steel products … $735.1%.4 million (up a staggering 51. up 52% from 2002. Indian imports from the U.S. up 11.000% from 2005) 2.5 million (1.2 million (3.3% to $10.S.0%. up 19.3 million (3.9%.2 million (2.1% of India to U.S. Non-cotton household furnishings & clothing … $668.4 million (up 226%) 5.8%.3 million (up 286%) 4.g.5 billion (16.9%) 8.8%.3 million (up 192%) .1% from 2005 and up 84. 1. up 47.Source .1 billion in 2006. up 101.9%) 10. dental and pharmaceutical preparations … $799. Below are American imports from India in 2006 with the highest percentage sales increases from 2005.S.7% in just 4 years. up 5.8 billion in American imports from India in 2006.5 million (2. India’s Exports to U. up 144%) Fastest-Growing Indian Exports to U.1%. watches.g.8 billion worth of merchandise to the United States in 2006. up 25. Of the $21. Rubber … $11. Diamonds … $3.8%) 3.5% from 2005) 2. up 146% since 2002. the following product categories had the highest values.3% deficit increase in 2005 from the year earlier.4%.S.

But if it is long and deep. “Countries in the western world are net importers. Funding in sectors like real estate are showing signs of drying up altogether. And don’t forget the liquidity crunch – India Inc is already having difficulty in raising funds. ”This will affect our rate of growth. RPG Foundation chairman and economist.M. As per S&P India Principal Economist. 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. but more about access to credit and the slowdown it is causing in America and other European economies. Pai Panandikar. When big countries hit a recession.H. Joshi. If it is shallow (and the US comes out of it quickly). it is bound to have an effect on the Indian economy. Other Indian companies looking at borrowing outside will also have more difficulty. .” he says.com: Global Financial Crisis[: What Is] India’s Status? 10/5/2008/11:44 P. and the GDP growth too is expected to stall. India may not suffer much of an impact. He adds that Europe is on the brink of recession. D. India’s exports will be hit. Market sentiments remain weak as FIIs pull out money and uncertainty rules. 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. and Germany is already in it.K. If they slow down. D. Asian imports will also slow down.Exchange rate of the Indian Rupee from 10/3/2006 to 12/3/2007 from livemint. Economists point out that the extent of the effect will be decided by the nature of the US recession.

. Adivasis’ concern about the impact of investment in forest has already led to Naxalite violence. loans.8% this year. 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. A more holistic development-based approach must be taken to address the grievances and economic insecurities faced by peasants and dalits supporting the movement. 282 Naxalites have surrendered in Maharashtra. They administer retributive justice in the areas they control through jan adalat.” lacking access to adequate shelter. Also its large domestic demand does shield it to some extent from the events outside. While there is no nation-wide rehabilitation program. For instance. Maharashtra provides cash benefits. In turn it will be helped by the decline in prices of commodities. including ministries of education and agriculture.25 trillion deal with major corporations such as Tata. New Delhi’s Response: The national government has invested in weaponry. however. Naxalites will most likely spurn the incoming development or try to extort money from the companies. but its responses have only served to increase bloodshed. In March. In Chhattisgarh alone. some states have implemented surrender policies that provide families with economic support in return for dispensing arms. India is different from some other large emerging market economies in that it is not a net commodity exporter. In May. but Naxalite leaders continue to see capital infusions as attempts to curtail their power. Most of the troops will be dispatched along the eastern corridor that includes Chhattisgarh. Coordination between the national and state governments is weak.” he says. the group has perpetrated violent crimes against civilians and Naxalites alike. Health. But poor implementation policies have undermined these efforts.000 tribal people. and five of the states in the “red corridor” provide 85 percent of the country’s coal. – More here. The state supports the Salwa Judum. Since 2005. Panandikar adds that IT companies may actually benefit as there will be pressure on US companies to cut costs. promotion of selfemployment. education and infrastructure have also been neglected. In spite of the violence. 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. The government has also announced a $125 million initiative to aid mobility for forces in jungle areas by providing basic infrastructure. the Maoists declared a parallel government in the state. Money for development in tribal and rural areas has also been provided under the Backward District Initiative and other economic programs. but only 18 of them have been rehabilitated so far. The Indian Army has pledged to help train state police. and the clashes between state forces and Naxalites have uprooted more than 45. 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. and are attracting major investment plans in steel and in oil refining. These states are also rich in bauxite and iron ore. Civilians have been marched to government camps where conditions are described to be “deplorable. or clean water. 3.D. modern equipment. ”Next year will be slower. According to the Asian Centre for Human Rights. India uses coal for 75 percent of its electricity generation. a paramilitary force that attempts to reestablish control. or people’s courts. So outsourcing to Indian IT companies may actually increase in the long run. secure camping grounds and helipads. Comprehensive Strategy Needed: Government officials have constantly argued that using armed force alone against the rebels is not enough. that empower local people to decide on violent punishments for crimes.K. Sanjay Panth. IMF India Representative. 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. food. and intelligence. 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. Joshi says that his company has forecast India to grow by 7. and education to defectors. Jharkhand. and Orissa grants cash. In April 2008. but tribal opposition is strong. Why it Matters – Energy Security: Minerals from areas of Naxalite activity are vital for the Indian economy. and free government health care. says that different countries will benefit or be affected differently. The security situation will affect the viability of these investments. the government has approved a Rs. Yet there are some bright spots amid this gloomy scenario. the fact remains that economic growth and development in these regions may not occur without investment inflows. and Orissa.

India. In 2001. and luxury hotels here. office space near the center of town sold for $1 a square foot. At the same time. One of the guards makes a break for the gate. Three guards who stood their ground lie bleeding on the floor. the violent Maoist insurgency has filled a void in the villages and hinterlands of India. Bangalore accounted for more than a third of India’s $34 billion IT export market in 2007. – Source from wired. Large block letters painted on the wall read: this property belongs to chhabria janwani. wanted for murder by the Indian police. Bangalore. he’d be better off just letting his assailants have the property in exchange for a fraction of its value. as in the rest of . is soaking up a gentle rain. Some carry buckets of blue paint. 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. modeled after the Empire State Building. Today. more than 500 multinational corporations have established office parks. or should they stand watch another few hours? A guard wearing a dirty work shirt is the first to notice signs of trouble. and first-rate educational institutions like the Indian Institute of Science set the standard for what India could become. eight men—two armed with shotguns—confer in hushed voices as they peer out the windows. but at this point there do not appear to be close organizational links. 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. The arrival of US companies like Adobe. The attackers have achieved their goal. call centers. In the distance. By the time a police jeep pulls up. Wired’s Scott Carney talks to the Bangalore land baron. Before the others can do much more than scramble to their feet. Naxalites may continue to gain a foothold in the eastern states. The dispute is no longer just a criminal matter of a gang of outlaws taking over a piece of ground. has transformed this sleepy outpost into a premier showcase of globalism.com: The Godfather of Bangalore 10/20/2008 by Scott Carney It’s a little past midnight. Thanks to the convoluted rules surrounding land ownership. and a criminal underworld more than willing to maim and murder its way into control of the city’s real estate market. This kind of legal battle. sprinting toward a police station a mile away. Most land in the city. accompanied by a chorus of voices. Now it can go for $400 a square foot. As tech companies gobble up acreage. Firmly in control. Photograph: Scott Carney But high prices are only part of the problem for businesses looking for space in the city. along with the emergence of homegrown outfits like Infosys and Wipro. There’s a hole in the roof and a bushel of ginger drying under an awning. the removal of Janwani’s lettering throws his claim into question. the marauders shift gears. Some 85 percent of citizens occupy land illegally. it’s worth $3 million. and it could become a problem the government cannot afford to ignore. a University of Toronto urban studies professor who specializes in Bangalore’s real estate market. the sign is only a memory. is the tech outsourcing capital of the world. As the gap between the rich and poor widens. and Yahoo. At the center of the lot is a house surrounded by a low stone wall. For more.000. Is it safe for them to go to sleep. There are indications that some arms transfers and training in guerrilla warfare tactics may have taken place between the two groups.com/video. In the past decade. 20 attackers brandishing swords and knives emerge from the shadows. Impact on India’s Future: India has registered large economic growth figures since it liberalized economic policy. It takes them only a minute to overrun the building. The lights advance. the fifth-most populous city in India. If Janwani hopes to develop or sell the parcel during that time. It’s nearly impossible to determine who actually owns any given piece of Bangalorean real estate. as the poorer members of society failed to get much benefit from good governance or economic prosperity. Then the sound of people scrambling over the wall. Indian Maoists have been critical of the electoral approach taken by their Nepali counterparts. now it’s a civil issue that will have to be mediated in the courts. even undeveloped. Bangalore’s Mobster Turned Mogul: Muthappa Rai is an Indian real estate power broker. demand has pushed prices into the stratosphere. Microsoft. with its near-endless appeal process. Dell. Janwani bought his 6-acre plot in 1992 for $13. visit wired. according to Solomon Benjamin. Upscale commercial spaces like UB Tower. He used to be a mafia don. IBM.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. Intel. They pull out rollers and slather paint over Chhabria Janwani’s claim to the land. could easily last 15 years. Inside. and a lonely parcel of farmland not far from the new international airport in Bangalore. The others surrender. flashlight beams sweep the roadway. But there’s a dark side to Bangalore’s rocket ride. a Byzantine justice system.

and other service-based jobs from the US. gangsters offer to secure deeds in days rather than years.” says Gopal Hosur.000 32……………………………. rivaling all in the region. which is by no means excessive. according to Arun Kumar. India’s Exports In 2007.8 billion (2007) Year………………………Exports Rank…. but many times the system does not permit them to do it. is bound by ancestral ties that go back hundreds of years. with a GDP of US $1. “Because of escalating land values. ever since foreign direct investment (FDI) was allowed on a large scale.92%……2006 est. A buyer who wants to acquire a large parcel may have to negotiate with dozens of owners. call centres. With the courts tied up in knots. 2008 $140. including aircraft Mineral fuels and lubricants Beverages and tobacco Chemical fertilizers Medical equipment Electronics and computer accessories . and some of Asia. 2004 $57. and most of the state-run industries were privatized. closed-off economy is now becoming a massive economic force in Asia. making it the 26th-largest export economy in the world. Little undisputed documentation exists.India.8 billion.000.71%……2007 est.800. India’s exports stood at $140. unscrupulous elements get involved.000. making it the second largest country in the world.000.000.230. the city’s joint police commissioner.089 trillion) and the fourth largest in the world by purchasing power. “Businesspeople like to do their business. much of India’s GDP is contributed to by the business process outsourcing (BPO) industry.000. 2006 $76. Disputes are inevitable. # Products exported by India include: Petroleum products # Textile goods # Gems and jewelry # Engineering goods # Chemicals # Leather products In addition to these goods and products.000 33………………20.63%……2003 est. as families mingle and fracture over generations.000 31………………28. as one of the most corrupt and inefficient institutions in India.000 33………………10. That’s where Bangalore’s land mafia comes in.995.19%……2005 est. Below is a table illustrating the volume of exports India has seen between 2003 and 2008: Total Exports: $140. which oversees urban planning.147. but is a huge increase from the 6% it was in 1985.86%……2004 est.904. They use muscle power to take control of the land. In 2006.% Change…Date 2003 $44. India’s trade reached 24% of GDP.240.000. Moreover.” Some 40 percent of land transactions occur on the black market.500. 2007 $112. Most of these changes have occured since the economic reforms India implemented in 1991. Europe.2001 est.180. Often the local authorities facilitate these deals. India has a population of 1. – More here.000 29………………46. 2005 $69.000. an economist at Jawaharlal Nehru University. The economy of India is twelfth largest in the world (in exchange rates.000 26………………25. A World Bank report rated the Bangalore Development Authority. Indian trade represents 1% of the world’s commerce. What was once an undeveloped. ownership becomes diluted along with the bloodline. India’s Imports # # # # # # # Machinery Vehicles.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. On a global scale. The country’s exports have grown steadily in the past few decades. from economywatch.

some say. so far. chronic underemployment and an unsustainable rate of rural-urban migration. while ignoring the needs of the biggest segment of Indian consumers: the poor.2 percent. India’s trillion-dollar economy remains a relative bright spot. founder of BASIX. But as the buyers for $200. India banned all toy imports from China in February 2009. “India is not as vulnerable” as other countries.com via huffingtonpost. reported Friday that gross domestic product for the end of the year had contracted at an annualized rate of 6.7 percent.As the middle class of India becomes more affluent and wealthy. a microfinance company that provides credit to more than a million poor customers. 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. from globalpost.000 to $1 million apartments have dried up and falling property values have left builders scrambling to finance the completion of existing projects. “And there’s a whole slew of clean drinking water products.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. While that was down from the 7.” Now that’s starting to happen. optimism reigns in much of India as its economy continues to grow. During the salad days of the past decade. “There are a whole slew of energy products.3 percent in the quarter ended in December when compared with the previous year. Led by Tata Housing’s so-called “Nano homes. These have both health and economic benefits. and Japan recently reported that its economy shrank at an annual rate of 12.6 percent growth in the earlier quarter. in part because the country’s bureaucracy and its protectionist polices have kept it insulated from the fallout of the global downturn. The trust factor that these players . including figures like Jaithirth Rao (founder of outsourcing heavyweight Mphasis).” affirmed management consultant Harish Bijoor. all of which are aimed at reducing fuel consumption or replacing traditional fuels. comes from the real estate sector. posh high rises were the name of the game in Indian real estate. for instance. it was in sharp contrast to the retrenchment in other countries. these ventures represent the entrance of respected business leaders into the low-income housing market.” which will go for as little as $8.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. The result could be the solution of some of India’s most persistent problems — an abysmal housing shortage.K.” On Friday. Ramesh Ramanathan (founder of the citizen’s action group Janaagraha) and established companies like Bangalore’s CSC Constructions. and Indian businessmen are finally starting to look at the teeming masses as something more than cheap labor. – Source from nytimes. for example. domestic consumption will continue to increase. India’s entrepreneurs grew fat selling gas guzzlers and palatial homes to the country’s new rich. Prahalad. who first posited that there were millions to be made selling to the “bottom of the pyramid.000. This will fuel more imports.” said Vijay Mahajan.” Story continues below The best example of the upside of the downturn. This was due to fears about safety issues of the Chinese toys and worries about the fate of domestic toy producers in India. The rich aren’t buying. who recently wrote a report titled “India: Better Off Than Most Others. Throughout the boom years. the University of Michigan’s C. – More here. both solar and thermal. as it has been doing in recent years. said Rajeev Malik. India reported that its economy grew 5. a dozen-odd companies have begun to take interest in building housing for the nearly endless market represented by the urban poor. “The slowdown was a great thing to happen to India. and cook stoves and all types of things. Interestingly. the economic crisis may actually be good news. It was an expatriate Indian. Washington. head of Indian and Southeast Asian economics at Macquarie Capital.

– More here. “We are advising our clients to stay away from trading till selling by Foreign Institutional Investors (FIIs) stops. Recently Airtel.” – More here.000 in 2006 to 3. it’s beginning to happen in solar energy. then competition sets in. These paper losses of more than a trillion dollars may be the sneeze that disrupts global markets. up from 500 last year. whereas in the upscale category you can only sell tens of thousands.1%. Before we get into detail about how much this US problem is spreading globally. Also. and the same thing is beginning to happen in microfinance.595.3% figure it projected a month ago. although this was revised down from the 3. for instance. In the Great Depression unemployment was higher than 25%. while Nokia has rolled out its Nokia Life Tools range of agriculture. said. and Russia have been affected by the US financial crisis.3% to 12. according to the US Bureau of Labor Statistics. The stock market sank to an 18-month low and the rupee a 5-year low.com: India Economy: Effects of the US Financial Crisis in India 9/30/2009 by Charles Cole New Delhi[. we should understand the severity of it and the possible consequences in the US. This three-part series looks at how India. By increasing competition. has put more muscle behind the network-based computing devices like Novatium’s NetPC — which provides a computer.” Jaithirth (Jerry) Rao said. vice-president of Karvy Stockbroking Ambareesh Baliga.com: . The sales network for fast-moving consumer goods and products like motorcycles and refrigerators is also expanding into the rural hinterland. there is no support to the markets from any domestic institution.500 wholesalers in small towns and villages this year. We are not seeing such extensive suffering in the US. for instance. chief economist at Crisil.” said Mahajan. this expansion lowers prices. according to Subir Gokarn. fear has gripped investors and there is panic selling. How sick is the US? Some have compared the situation in the US with the Great Depression of 1929. According to Business Standard. Even before this controversial rescue plan was shot down. Samsung has launched Solar Guru. “The focus on the base of the pyramid to create scale businesses was overdue. China. will appoint 1. software and support to consumers for a bundled price as low as $25 a month.500 in 2008. and it’s a win-win for all sides.. has boosted its “touch points” in rural areas from 2. the Indian arm of Standard & Poor’s. 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. While markets are below their fundamental levels. In the US. while Godrej Consumer Products Ltd.” The push to widen the footprint of broadband internet and boost the average revenue per user from lowincome mobile subscribers. connects the dispossessed to the broader economy and makes new. income-generating products affordable. broadband access. The stock market dropped 5. 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. Indian markets took a dive of their own on Monday 29 September.” But real estate isn’t the only sector where the financial crisis has had an unexpected upside for India’s future. launched a similar service. “You can sell millions of homes in this category. In the Great Depression there was no work and there was widespread poverty. The kind of price at which a rural poor person can now talk to their migrated family members and so on is incredible. education and entertainment services for consumers in small towns and rural areas.] It is often said that when the US sneezes the rest of the world catches a cold. from in. August 2008 unemployment figures were at 6.8%. but this situation is far from a depression – in fact it’s not even a recession. Motorcycle maker Hero Honda. hardly indicative of a recession. “Telecom is a great example.. from economywatch. “That’s all happened because of the penetration rush and price competition. The Commerce Department reported that GDP growth was at 2. People struggled through the winter with no heating and no food. The volumes attract new suppliers and as more suppliers come in.75.bring has given this sector new viability. India’s largest integrated telecommunications company. a solar-powered mobile phone.

International credit has shrunk with adverse effects on our corporates and banks. which the Prime Minister felt “is now likely to be more severe and prolonged”. The situation is being watched on a day to day basis and more steps will be taken if required. The trigger to this entire controversy was an alleged land deal of Lok Janshakti Party MLA Shoaib Iqbal. – More here. 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. He asked industry to refrain from any “knee-jerk” reaction such as large-scale lay-offs. banning the registry or mutation of all enemy property on “the list. "]Economic crisis hurting India.” The notification directed that the name CEPI be put in place of the present owners listed against the said property. from dnaindia. The data comes from a letter written by state revenue minister Raj Kumar Chauhan to the top brass of the Delhi government. and a woman named Jawahar Sultan.” Sajjan Jindal Vice Chairman & MD. which might lead to a negative spiral.Manmohan Assures Industry[. A recently released list of the department of revenue shows only a handful people control more than 80% of these properties.” the Prime Minister assured industry leaders. joint secretary in the state revenue department. One Fatima Bi owns four of these properties. Huma . “A crisis of this magnitude was bound to affect our economy and it has. All property left behind by people who migrated to Pakistan are owned by the Mumbai-based Custodian of Enemy Property for India (CEPI). Delhi government sources have made available documents which show plans for construction of a structure in the name of Shoaib’s wife. which functions under the Union home ministry. Iqbal has called it a “political conspiracy”. issued a notification on January 14. and said “industry must bear in mind its societal obligations in coping with the effects of this global crisis”. Most of the properties owned by these four persons are shops located in Jama Masjid and central Delhi.” “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. JSW Steel said. “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.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. Following the approval of Chauhan’s communique by Khanna. Global uncertainty is also tending to dampen investor sentiment.” he was quoted as saying by PTI. Zahir Ul Aslam. 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. The plan was to set up a hotel. Huma. They are followed by Rehman Elahi and Mohammad Yusuf Wasim who own 17 and 15 of these enemy properties respectively. These are properties evacuated by people who migrated to Pakistan during partition. Nearly 78 of the enemy properties are collectively owned by Tahir Ul Aslam. Shahidul Islam. 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. seeking permission to initiate action against these land-grabbers. The letter was sent to lieutenant governor (LG) Tejendra Khanna and chief minister Sheila Dikshit. “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. Vinay Kumar.

” it said. a four-fold increase in less than a decade. with particularly rapid growth over the past decade.75%. 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. it is illegal to conduct transactions in such properties. 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. “We have been fighting a case in Delhi high court for the past 18-19 years. 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. fuel and food. It accounted for 40 per cent of total goods exports to India in 2008-09. India’s central bank should be more cautious in shifting its monetary policy. Dinesh Singh of CEPI had visited some of these properties in Delhi on December 12 and met the principal secretary (revenue) on the issue. Not surprising. disinvesting state run companies.5 per cent. inflation is becoming a growing concern.M.6% boosted by industrial production and services. The government has made progress in new tax laws. Yet. “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. 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. Jama Masjid. 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. RBA had released its quarterly statement on monetary policy on Thursday.” said Ibrahim.” the daily quoted the bank as saying. – Source from livemint. – 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. The Australian daily reported. In fact. on plots 913-921 in Ward No 9. in the first three months of 2010 India’s economy expanded 8. More importantly. IST Melbourne: Australia’s Reserve Bank has said that Indian economic growth will continue to work in favour of the country’s mineral exporters.Semiramis. raises taxes for petroleum products and reduces for middle-income families it fails to slash inefficient subsidies on fertilizer. In fact. while Union Budget for 2011 increases infrastructure spending. However. One Ibrahim who identified himself as the eldest son of 84-year-old Fatima Bi denied any transaction. Iqbal has denied the allegations and said he will file a defamation suit against the government.com: 2/5/2010/1:29 P.” RBA said coal exports to India has risen strongly over the past decade is likely to rise in the next few years. Liquefied natural gas (LNG) is another likely source of future growth in Australia’s good exports to India. with demand growing at a faster pace than supply. the Reserve Bank of India has raised its benchmark interest rates twice to 3. it formed an experts panel . stimulus spending had expanded fiscal deficit from 2. 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. The central bank said the rise in India’s prominence in the global economy has been a boost to the Australian economy. And it is expected that by the end of June the rate may increase as much as 100 basis points. “Indian demand for Australia’s exports has risen sharply.” As per the official data. Under the Enemy Property Act of 1968. Looking further. two stimulus packages providing tax cuts and increasing infrastructure spending in connection with lower interest rates have supported significantly domestic demand. the new administration is slow in implementing economic reforms promised investors after last year’s wider-than-expected election victory. And although due to strong growth numbers the shortfall is more than sustainable. adding that “This has seen India’s share in Australia’s total exports increase to around 6.6% of GDP in 2007/08 to 10% in 2009/10. “India was Australia’s fourth largest export market in the second half of 2009. But.

Dalit women make up the majority of landless laborers and scavengers.000 cases of rape. Recently. 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. … Over 100. they come into greater contact with landlords and enforcement agencies than their upper-caste counterparts. Yet. A Dalit farmer’s wife. Moreover. they are forced into prostitution in temples under the devadasi system. women were raped and mutilated before being massacred by members of the Ranvir Sena in 1997. arson and other abuses against Dalits are reported in India each year. – <a href=”http://www. daughter and two sons were lynched and beaten to death by an upper-caste mob in a land dispute in 2006. Newly confident and organised. Dalit women have also been arrested and raped in custody as a means of punishing their male relatives who are hiding from the police. the chairperson and managing director of Reliance Industries has become the richest man in the world with assets worth 63. The magic run of the Indian share market was largely responsible for this somewhat unprecedented development. and sometimes tortured during violent search and raid operations on Dalit villages in recent years. some Indian authorities are finally being pushed and pressured into action. .to ease foreign investment in the financial sector. What is unusual about this case is that the perpetrators were successfully prosecuted.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. he adorned this prestigious and coveted title for almost a decade. In Laxmanpur-Bathe. As very young women. albeit slowly and exceptionally. the killers of Dalits walk free. The women were also raped. There has been a wave of mass demonstrations by Dalit people demanding justice and equal treatment. 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. Bihar. the police themselves are sometimes the perpetrators of abuses against Dalit people. in Bihar and Tamil Nadu. – More here. largely uneducated and consistently paid less than their male counterparts. Indian Economy Disparity in Wealth Distribution By Anne Catherine (edited a little by me) Bill gates.aspx? Symbol=INR”>Source</a> from guardian. the one name that is almost synonymous to Wealth and to Microsoft was till recently the richest man in the world.15 As such. the Dalits are fighting back with strikes and boycotts. the whole world was shocked when it was declared that Mukesh Ambani. but Slim’s stint at the top was short term and was again overtaken by Gates. class. labor reforms and farm prices release are far from being executed.com/Economics/GDP-Growth. One reason why the murderers have been bought to justice is the rising tide of Dalit militancy.2 billion USD. Normally. with assets worth 59 billion dollars! Declared the richest man in the world in the year 1995.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. women have been beaten. Like other Indian women whose relatives are sought by the police. and gender hierarchies.co. as well as a significant percentage of the women forced into prostitution in rural areas or sold into urban brothels. from hrw.tradingeconomics. murder. arrested. Shaken by this burgeoning protest movement. Their subordinate position is exploited by those in power who carry out their attacks with impunity. Some time back he was briefly overtaken by Mexican tycoon Carlos Slim. Some states record conviction rates as low as 2-3%. – Complete report here. Throughout this report.

Many Indian concerns are into offshore software development. Jim Rogers: You really believe it will happen? Go back over the years and see their previous claims. Vast and unending. 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. on the other hand Indian youth is counted among the highest spending youths in the world. On one hand mergers and acquisitions have been made worth millions. On one hand larger then life malls. But there are very few concerns in India that are ready to open an estore. Srinivasan. Forbes: He has got a lot of praise for that in India. Thus they take the easy way out and buy things online. There are people who buy stuff online. The subsidies distort the economy in less-productive areas. the backbone of the Indian economy is yet to show profits and improvements. population. what would it be? JR: Cut spending and subsidies dramatically. They are making the problems worse in extraordinary times which require tough measures to correct decades of abuse. one trend that so far India has not taken from the west! ‘India Will Muddle Along Until The Debt Crisis Hits’ S. 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. around 22-23 crores of people are still living below the poverty line. Why? JR: Even if it happens. the government.5%. unemployment. Forbes: The finance minister rolled back some of the economic-stimulus measures he had announced last year. Ecommerce is one such concept. Many studies have shown that countries start having serious growth problems when debt is 90% of GDP (gross domestic product). thanks to the highly unequal distribution of income in the Indian economy! The question is whom to blame. illiteracy. Infact there are many who are too short of time or energy to go hunting for stuffs. edited by Daniel Knight (added who was speaking) 3/16/2010 After all the budget euphoria. Investor and venture capitalist Jim Rogers remains deeply skeptical of India’s future. India is a country that is plagued by much social malice like poverty. the entrepreneurs. Forbes: The finance minister has changed the direction of India’s budget deficit by reducing the target for 2010-11 to 5. gender biasness.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. Forbes. superstitions. Venturing into this topic is like counting the stars in the sky. Would you have preferred to see a complete rollback rather than a partial one? JR: Yes. there are quite a few software development companies in India that provide ecommerce solution and ecommerce software to people living outside India. social stigmas etc. Srinivasan. Disparity in the distribution of wealth continues to be a big blow to the Indian economy. India is now [at] 80% and will be [at] 90% soon under this budget. It is from selling off the family jewels. luxury foreign car showrooms are opening. In this country that has a population of over a billion. Forbes: If you were to set an agenda for the government. The rich are growing richer and the poor are growing poorer. it is time for a reality check. 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. They have clients from all over the world who come to them for software development in order to do business online. On one hand there are people who are not even earning a dollar per day. or the constitution? Everybody has a role to play. 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. They are just trying to push the problems out into the future rather than solving the underlying problems. it is not being done by sound budgeting. The population. Still you are not impressed. And more. – More here . he argues that the country is sitting on a fiscal time bomb. One would not know whether to be happy for India or sad at the superficiality of its development. but it’s very rare that one would find an Indian company venturing into ecommerce web site development. Conversely however. the system. if it happens. on the other hand the agricultural sector. In an interview with S. 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. Many of them are not even earning 1 dollar a day. Nobody is to be blamed solely yet everybody is responsible for the situation India is in today.

compared with 8.” the central bank said in the March 17 statement. car sales and credit growth. such as the latest purchasing managers’ index. the commerce ministry said in a statement in New Delhi today.India Inflation Quickens to 8. Food prices rose 8. putting pressure on policy makers to raise interest rates in Asia’s third-largest economy.” The Bombay Stock Exchange’s Sensitive Index extended declines after the inflation report. Production Growth Still. compared with 11. 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.98%. today’s report showed.08 percent bond due in August 2022 was at 8. India’s inflation accelerated more than economists estimated in March as the cost of fuel and manufactured goods rose. That exceeded all 28 estimates in a Bloomberg News survey. Reserve Bank Governor Duvvuri Subbarao on March 17 increased the repurchase rate by a quarter point to 6. PT Expansion in India’s $1. falling 1. Rate Increase Rising oil and commodity costs and sustained economic growth are escalating pressure on Asian central banks to boost borrowing costs. a report showed this week. where the median forecast was for an 8. The yield on the 8.21 percent before the data was published. India’s industrial production growth unexpectedly slowed to 3. when he estimated it at 7 percent by March end.75 percent after raising the inflation forecast for the second time since late January.31 percent gain in February. compared with 9. India relies on imports to meet three-quarters of its annual energy needs. car sales and credit growth.M. Expansion in India’s $1. merchandise exports and bank credit. the commerce ministry said in a separate report today.92 percent. suggest that the growth momentum persists.18 percent in the previous week.25 percent in the year ending March 31. China on April 5 raised rates for the fourth time since mid-October.28 percent in the week to April 2.3 trillion economy has boosted consumer demand and spurred manufacturing. The central bank’s next monetary policy announcement is scheduled for May 3.4 percent from a year earlier. South Korea and Thailand also increased borrowing costs this year to curb inflation.m. compared with 4.49 percent the previous month.6 percent in February. Food Inflation “In the absence of a strong supply response.21 percent in March. India’s economy may expand as much as 9.” said Leif Eskesen. 2012. increasing demand will inevitably lead to higher prices. He said a “monetary response is warranted” should demand exceed supply and stoke inflation. a report showed today. .7 percent in the first quarter and inflation accelerated in March to the fastest pace since 2008. Increasing Pressure on Rates by Unni Krishnan. Manufactured-products inflation was 6. Singapore-based chief economist at HSBC Holdings Plc.4 percent at 11:52 a. Vietnam. other indicators. direct and indirect tax collections. in Mumbai.3 trillion economy has boosted consumer demand and spurred manufacturing. stoking price risks and prompting the central bank to raise rates eight times since early 2010.98 percent from a year earlier after an 8. “The RBI needs to raise rates more aggressively and we are looking at three more rate increases this year. Taiwan. “Inflation is going to remain uncomfortably high this year.” Reserve Bank Deputy Governor Subir Gokarn said April 5.94 percent in February. edited by Stephanie Phang 4/15/2011/1:16 A. with consumer prices rising 5. stoking price risks and prompting the central bank to raise rates eight times since early 2010. Fuel and power prices rose 12. “Even as industrial production continues to be volatile. and Singapore said yesterday it would allow further currency gains. The benchmark wholesale-price index rose 8.25 percent.36 percent increase. China’s economy grew a more-than-estimated 9. the finance ministry said in February.

which he spent on everything from paying his staff to feeding his children. most people lived frugally all their lives. when it registered a 12. The company’s sales climbed to a record in March. He bottled up his growing sense of shame. The amount of outstanding credit card debt in India tripled between 2004 and 2007.000 rupees. according to industry reports.000. rebounded to 15. Private and foreign banks marketed credit cards and loans to consumers who had little experience of borrowing. Spending under the government’s National Rural Employment Guarantee Act of 2005 has surged almost fourfold to 399 billion rupees.9 percent in September and then recovered in October. 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. which plans to spur spending and exempt incomes below 180.” recounts Mr Sayed. fueling consumer demand. higher than the previous threshold of 160. 2012. Rising Salaries Manufacturing grew for a 24th straight month. Commercial loans rose 21.” he remembers.9 in March from February. the Indian middle class were deeply conservative borrowers. The father of two in Mumbai was guarding a dark secret from neighbours.4 percent from the previous year as of March 25.Pacific region. Maruti Suzuki India Ltd. credit cards and loans flooded onto the markets of most Asian countries. or you commit suicide.000 rupees from tax.India’s industrial output has fluctuated since May. Debt trap Mr Sayed didn’t realise that with most credit cards. With a strong cultural aversion to loans and with very little finance on the market. 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).2 percent in June. Until recently. After several years of signing up to all the credit cards and personal loans he could find. a survey by Aon Hewitt LLC showed March 8. high interest charges kick in immediately when you withdraw from ATMs. slid to 4. Chief Financial Officer Ajay Seth said in an interview on April 6. he had notched up Rs 3. when it accelerated at the fastest pace in three months. Mr Sayed remembers his lowest point in late 2008.1 percent in July.000 ($66. His business was failing. BBC News 7/10/2011 The Pawar family The Pawars took financial advice when they started losing their savings . so he started using the credit cards to withdraw cash. India’s recent binge on credit cards and personal loans has ended badly for some – but there are ways to fight back against debt. Salaries in India this year may rise the most in the Asia. “I thought better you run away from Mumbai. Demand may find more support from Finance Minister Pranab Mukherjee’s budget for the fiscal year ending March 31. with few questions asked. “They would fill out the forms for you.2 percent expansion.” He got six cards and nine unsecured loans. with the purchasing managers’ index holding unchanged at 57. (MSIL). His feelings of shame prevented him from seeking help. according to government data. The growth eased to 7. the nation’s biggest carmaker. But in the years before the global economic crunch. HSBC Holdings and Markit Economics said April 1. Recent data show lenders are giving loans at a faster pace than the central bank’s target.000) in debt. –More here India’s middle class pays the price for growth By Mukul Devichand Reporter. – Source India’s middle class struggles with personal debt burden By Mukul Devichand Reporter. “Getting credit cards in India two or three years back was very easy. more than the 20 percent rate prescribed by the Reserve Bank of India. friends and even his wife.

The world is jealous of Asia’s sky-high growth rates. recently became a full-time mother. provide specific reasons and get permission from the HEAD of their Mission abroad. Categories:Economies of the World. This has been largely due to the actions of the government in inhibiting visitors to come to India.” says Manasi. Hindu behavior. This advisory is stamped right next to the visa on their foreign passports !! . Naxals. India's Red Corridor. Across Asia. There are many many procedural impediments to prevent tourists from coming to India. real estate mafia. India's economy. slow growth rate. failure of Hinduism. Hindu morality. land mafia.” Manasi. 2010 at 11:58 AM | #1 Reply | Quote For the amount of culture. performance of Indias. 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. Intense inflation The inflation rate measures how fast prices are going up. For tourists who have multiple entry visas. inflation rate of India. Naxalites' effect on India's economy. “We’re staying in a big house. economic forecast on India. various pressures are pushing inflation up – from growing wage bills to the high global prices of food. India's economyTags:charts. economic review of India. statstics. dalits. Hopi Krishnan February 21.” says Manasi Pawar.economic stagnation. India poverty map. performance of India's economy in 2011. failed state. Indian Mob. untouchables Comments (4)Trackbacks (1)Leave a commentTrackback 1. “We were actually losing money. forecast. 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. The couple epitomise the emergence of a well-to-do middle class in Asian countries – except there’s one significant snag. The pressures are so intense that some economists fear that inflation will now derail Asia’s high economic growth altogether. India's GDP growth rate. “From outside it looks good. inflation of India. economic forecast of India. “We were sitting on a bunch of cash but we didn’t know where to put it. paying so much in rent and our kids are going to great schools. And if one needs to do that. situation of India's middle class. India GDP chart. Indian Government advises them NOT TO REVISIT within a period of 2 months of a visit to India. – More here Share this: • • • • Like this: Like StumbleUpon Digg Reddit Be the first to like this post. Her husband also works in the IT industry. a qualified software worker in hi-tech Hyderabad in India. but for ordinary people the price of success is corrosive inflation which could eat away their savings. commodities and fuel in resource-hungry economies. India debt crisis.” she says. graphs. sites of history and antiquity. Tourism as an Industry in India has yet to develop and match even small countries like Thailand.

the Kashmir Valley.○ knight February 21. 2011 at 4:38 AM | #4 Reply | Quote It’s a conspiracy. which controls approximately 37% of Kashmir. including Aksai Chin. and the Trans-Karakoram Tract (also known as the Shaksam Valley). 2. Also the UFO people are about to conquer Kashmir and give it to me. administers approximately 43% of the region. including most of Jammu. false religious teachings and demons. The CIA and FBI are also watching you and planning on cloning you. Ladakh. namely Azad Kashmir and the northern areas of Gilgit and Baltistan.. 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. – Wickedpedophilia Leave a Reply Top of Form Enter your comment here.. which was ceded by Pakistan in 1963. When I am the King of Kashmir all your hottie sex women will belong to me. . India’s claim is contested by Pakistan. 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. 2010 at 12:56 PM | #2 Reply | Quote Conceited rich men and women. and the Siachen Glacier. China controls 20% of Kashmir. Sumit Pareek August 15. which it occupied following the brief SinoIndian War of 1962. hinder India.

a false Christian exalts his own will. So then. To deny God's existence is to deny the existence of truth and right from wrong. Animals Are Not Primitive More irrefutable evidence against Darwinian evolutionary theories: animal brains are much faster than fastest known public computers on Earth. The narcissist prizes attention. to deny the existence of God is neither logical nor moral. Psychologists and psychiatrists who say it exists are wrong. the sociopath cares only for pleasure. Please read the differences between Christian groups and why they matter. it’s existance is a myth. Bill Maher is an excellent example of the extreme confusion that doubting God and belief in Darwinian Evolution causes. "absolute truth". 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. "absolute good" and "absolute evil". Support this journal. the psychopath is a sadist.• • • 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. Bipolar Disorder There is no such thing as bipolar disorder. an evil woman gets pleasure and only craves more. Atheist and Catholic bullies who murdered their victims. A logical man sees the universe and worships the Designer. What I mean by truth and right from wrong are the redundant terms. 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. .

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