Indian Political Economy
What are the software and IT services in India compared to China?
$23 billion(60% software, 20% hardware, and 17% services) vs. 3.5 billion (70% hardware, 12% software, and 17% services)
What was India's GDP growth rate in Crisis 1991 before economic reforms?
0.9%
India is currently the ___ largest economy; ___ in Asia.
10th; 3rd
Inda has __% of the word's landmass, but more than __% of the world's population.
2.4; 15
When did India surpass the USA and become the 2nd attractive destination for FDI?
2004
India has __% of the world's undernourished population.
25%
What was India's average GDP growth per year between 1980 and 2005?
6% per year
Who was the finance minister in India's 90s?
Dr. Manmohan Singh the current prime minister
What are India's religious conflicts?
Hinduism vs. Islam, Hindu caste system
How did India learn economically from China?
India's government set up protectionist trade policies and had higher trade restrictions to protect its domestic industries from global competition
How are India's demographics an advantage?
India's population will remain younger than other countries in Asia like China and Japan
What is India's world nickname?
Office of the World
Who initiated India's economic reform stage in 1991?
PM Rao
Due to economic reforms, India's economy sky rocketed above what other two closely related countries?
Pakistan and Bangladesh
What are India's four post-independence economic reform stages? When was each stage?
Pre-planning stage (1950-57), Central Planning Stage (1958-1960s and 70s), Flexible Planning Stage (1980s), Economic Reform Stage (1991-96)
What are India's current long term advantages?
Stability, democracy, demographics
Who are the four little dragons?
Taiwan, Singapore, South Korea, Hong Kong
What is India's biggest advantage in the IT Industry?
They speak English
How has India's relationship with the USA strengthened?
US is India's largest trading partner & USA is the largest contributing FDI in India
What were some other policies India used?
alleviate taxes to attract FDIs, redevelop infrastructure, strong role from central government in economics, & strengthen relationships with USA
What are India's current short term advantages?
continuous economic development, fast expanding middle class, large potential as population moves toward urban areas
What are India's current roadblocks?
crumbling infrastructure, pollution, complex government system (large bureaucracy and corruption), too much diversity, religious conflicts, high illiteracy rate, undernourishment
What were the reasons India made economic liberalizations?
dissatisfaction after watching economic boom of 4 little dragons & the financial crisis of the 1990s
What were the two things that happened allowing India's economy self-sufficiency?
domestic sectors were protected from foreign competition, protected industutries (state-owned enterprieses) becoming insufficient (no longer protected)
What was the main cause for India's rise in economic power?
economic reforms initiated in 1991
What is FDI?
foreign direct investments
What were some of the effects of the economic reforms by PMs Indira Gandhi and Nehru?
government-guided private economy, powerful governmental planning commission, gov rules and regulations, self-sufficiency
How is India already doing well?
growth, establishing a place in global economy, self-reliant 85% domestic consumption, #1 knowledge production center, lifting more out of poverty
What was accepted about the central planning phase?
it did not deliver results
What were the affects of economic liberalization?
reduce budget deficits and the selling of government shares in public enterprises
What were the 90s in India characterized by?
significant economic reforms, which attempted to dismantle the earlier system of the 80s
What is India a major exporter of?
software products and IT services
What is SOE?
state-owned enterprises
Why was there backlash to India's economic liberalization?
the government tried to reduce workers' legal protections and put some SOE's into bankruptcy
How did government rules and regulations affect the economy?
they gave opportunities and incentives for corruption
What is the US's strategic reasons for partnering with India?
to balance the rise of China
What were backlashes to India's economic liberalization?
unions and workers resisted and had strikes in order to oppose changes to labor laws and privatization
