3.2 - India's Changing Economy
GDP growth
1980's 7% - 2015 7.3% compared to UK's 2.2%
Outsourcing in India
1990's - BA & AA outsourced. Employs 2.8 million and valued at $11 billion. Has 40% of global outsourcing market Infosys & WiPro Call centres earn more than teachers or nurses
Need for development of infrastructure
2008 - 13% connected to sewage works India = 8,000km of dual carriageway compared to china = 50,000km 29th July 2012 - Northern grid collapsed = 300 mill dark 2004 - 60% Small to medium business own generators
Finance in India
23 stock exchanges with 9,000 listed companies. Software exports to the US at $99 billion in 2015
Textile & Pharmaceuticals
25% share in the world trade in Cotton Yarn. 46% total textile exports are ready made garments. Exports grown by 7% annually..... 3rd largest in world. $20 billion by 2015. Research scientist earn 1/5th of US counterparts.
Indian Economy
4th largest by purchasing power parity and 10th largest economy in the world
Services in India
50% of GDP Agriculture dominates the Countryside with services only in a few urban areas.
1991 reforms
After assassination of 2 prime ministers. Aimed at opening India up to the world. Devaluing the Rupee (make exports more competitive), simplifying regulations, and import taxes reduced from 80% to 25%
Manufacturing industries in India
Coca Cola - 24 bottling plants which employs 25,000 directly and another 150,000 indirectly. Samsung - 1 mega factory in Chennai, invested $100 billion in factory for TV and mobiles. Airbus - Research and design centre which creates doors and wing flaps.
GR in India
Collaborated with USAID to import huge amounts of wheat seed and began its own program or plant breeding, irrigation, and fertiliser development
Golden Quadrilatral
Completed in 2012 $6 billion Chennai, Mumbai, Delhi, Kolkata Land disputes have limited expansion from 4 to 6 lanes
Tata Business
Emerging TNC accounts for 3% Indian GDP. 90th Largest company in the world. Employs 350,000 people. Last 15 years it's global strategy has resulted in high level takeover. 2000 - Tetley Tea 2007 - Corus - $12 billion
AB in India
Exported $39 billion in food in 2013. Agriculture accounts for 16% of Indian GDP Produced 220 mill tonnes of grains and 370 mill tonnes of sugar cane that year
Tata Nano
In 2008 - worlds cheapest car - Tata Nano. 100,000 rupees - average teacher earns 120,000 rupees. Hoped to get Indians off mopeds. European version - Europa for export. One windscreen wiper, one side mirror, no boot, no power steering.
Affects if AB in India
Largest producer of Milk, Coconut, tea, and Black pepper. 10% global fruit trade. Dairy farmers in Pune use computers to analyse and set price of milk. McCain - Potato - transfer knowledge - increase yield from 10 to 15 tonnes while decreasing expenditure by 36% - 100 farmers on 1,500 acres
Negative impacts of the GR
Machinery lead to job loses and migration. Pesticides accumulate in food chain. Watertable decreased to unsustainable levels. Wealthier farmers could afford fertilisers At one point in 1966 India only had enough food for 2 weeks
Car ownership in India
Major production hub within 5 years. Since 2000 - flood of foreign auto companies. Rise in the last 7 years due to skilled workforce. Rising wealth increases number of cars. Car production expected to rise from 3 mill to 9 mill by 2020.
Outsourcing
Often TNC outsource to India, then later take over much of the business so that it is run wholly by a local company. The TNC then buys the service without paying any overheads
SEZ
Provide tax incentives and good infrastructure. Promote domestic and international development. $2.4 billion invested in them between 07-09. Mahindra city, 16000 jobs producing $0.5 billion of exports. 2015 there were 436 SEZ
Agribusiness definition
The large scale agricultural operations that control much of the farming chains from the seeds & fertilisers to finance, distribution, and marketing
Middle Class
Tripled since 1990's. Expected to be 50% of the population by 2025. 1% cross poverty line every year. Cycle of salaries and consumption. 8 million new mobile phone contacts every month.
Green Revolution Definition
Worldwide transformation of agriculture from the 1940's onwards that occurred as a result of research and irrigation development which helped food production keep pace with and even overtake worldwide growth
Positive impacts of the GR
Yield per unit farmland increased by 30%. Demand for fertilisers spurred the growth of industry. Rice yields increased by 30%. Record grain output of 131 mill tonnes in 1979 established India as one of the works leading food producers.
