216f06 India Project Slides (1)

8/13/2019 216f06 India Project Slides (1)

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Geography

• Area: 1,270,000 squ.miles

• Approx the 1/3 the sizeof the US

• Border: 8800 miles total;2100 miles with China; 1800miles with Pakistan

• Coastline: 4350 miles



Demographics: Population

2006 (est.)

• Population: 1,095,352,000

• 17% of the world’s

population (2nd mostpopulous)

• 5% of county’s population is

within 10 urban areas with2000+ persons/squ mi.

• 28% population is urban



Demographics: Population cont.

2006 cont.

• Growth: 1.38% per year

• Birth Rate: 22.01births/1000

• Death Rate: 8.18deaths/1000

• Migration: -.07/1000

• Median age: 24.9 years

• Population: 1.06males/female



History

• Indus Valley civilization is 5000 years old - one of theoldest in the world• Aryan tribes enter in 1500 BC and merge with early

Dravidian inhabitants to create classic Indian culture

• Incursions by other cultures: – Arabian – 8th century – Turkish – 12th century – European – 15th century

• Independence in 1947 from UK• Country split into 3 at independence – Pakistan, India,and East Pakistan

• 3rd war with Pakistan in 1971 results in East Pakistanbecoming Bangladesh



Government: Central Governmentcont.• Legislative Branch:

– Rajya Sabha/Council of States (Upper House): 245 members;chosen through the electoral college

– Lok Sabha/Council of People (Lower House): 552 members,chosen through direct elections

• All Indian citizens above the age of 18 are eligible to vote

• The Indian National Congress Party has controlled thenational government for most of India’s independenthistory, although opposition parties have intermittentlycontrolled the national government since 1977 and the2004 elections required the Congress to form a coalitionwith Communist and Progressive parties to securecontrol.



Government: State Governments

• 28 states, 6 territories &the National CapitalTerritory of Delhi

• States elect their owngovernments

• Territories are governedby administratorsappointed by the uniongovernment



Culture: Languages

• 22 official languages

• 33 unofficial languages

• 2000 dialects

• Hindi (180 million speakers) is the national languageand primary tongue

• English is an associate language but very important

for national, political and commercial communication• Sanskrit is the classical language (& literature) of

India



Culture: Religion/Ethnicity

Ethnicity of thepopulation

• Indo-Aryan: 72%

• Dravidian: 25%

• Mongoloid and other:3%

Religions of the population• Hindu: 80.5%

• Muslim: 13.4%

• Christian: 2.3%

• Sikh: 1.9%• Jain: 0.4%

• Other: 1.5%

• Significant differences exist within the80% Hindu majority, arising not only outof divisions of caste, but also out ofdiffering religious beliefs. Onedifference is between the devotees of

the god Vishnu and the devotees of thegod Shiva



Culture: The Hindu Caste System

• The caste system is pervasive in India. Although it is entwined inHindu beliefs, it encompasses non-Hindus as well. A caste is a socialclass to which a person belongs at birth and which is ranked againstother castes, typically on a continuum of perceived purity andpollution. People generally marry within their own caste. In ruralareas, caste may also govern where people live or what occupationsthey engage in. The particular features of the caste system varyconsiderably from community to community and across regions.

• Since 1947 the importance of caste has declined somewhat in India. Many people have also been influenced by the nationalist

movement’s ideological commitment to the equality of men andwomen, and lower castes have increasingly used the power of theirnumbers or their right to vote to gain social status in their localcommunity. However, castes are not disappearing, mainly becauseof the system of marriage. Almost all Hindu marriages in India arearranged, and almost all arranged marriages occur between peopleof the same caste, thus providing continuity to the caste system.



Culture: Education

• India has some of the best Universities in the world, butstruggles with literacy

• Enrollment (2001-2002) – Primary (ages 6-11): 113.9 million

– Middle/High (ages 11-18): 44.8 million – Higher Education (college): 30.5 million

• Higher Education: – Must be accredited by the government and indirectly controlled by

the government

• Literacy: 59.5%; defined as 15 years+ that can read andwrite – Male: 70.2% vs. Female: 48.3%



Economics: Currency

• Basis of exchange: Rupee (INR) – Formerly used by Pakistan, Qatar, UAE, Malaysia as

basis of currency

– Most often distributed as 100 & 500 Rupee

denominations from ATMs – Current exchange rate: 1 USD = 44.42 INR (12/8/06)

– Pegged by the Bhutanese ngultrum

– Accepted in Nepal, near India – Nepal border



Economics: National metrics

• GDP: $3.6 trillion using purchase power parity-PPP &785.5 billion measured in USD exchange rate (2005) – 4th largest in the world when measured using PPP & 12th in the

world when measured in USD exchange rate

– PPP: a method of equalizing currencies for comparison bycomparing a given basket of good within each country

• GDP growth: 7.6% (2005) – among the fastest in the world

• GDP per capita: $3300 using PPP (2005) – 122nd in the world

• GDP composition by sector: – Agricultural: 18.6%

– Industry: 27.6%

– Services: 53.8%



Economics: Workforce

• Labor force: 496.4 million

• Labor by occupation and percentage ofpopulation:

– Agricultural: 60% – Industry: 17%

– Services: 23% (accounts for over 50% of India’s

total output)

• Unemployment rate: 8.9%



Economics: Liberalization

• Economic liberalization: – Pre-1991: India focused on self-sufficiency & government control.

Allowed trade was primarily with Soviet Union & eastern block.Foreign countries were viewed as economic threats, notopportunities.

– Liberalization occurred in 1991, catalyzed by the collapse of theSoviet Union and the economic shocks resulting from the GulfWar. Results include a reduction of government influence,privatization of many government enterprises, relaxing of ForeignDirect Investment (FDI) restrictions, incentives for Trade (import offoreign goods) and revision of labor laws.

– Recent activity (2005): High tariffs (20% on non-Agricultural) andFDI limits remain in place. Liberalization of civil aviation, telecomand construction sectors continue. Privatization of government-owned industry slowed/halted.



Economics: Infrastructure• 1.5 million miles of paved

roads (US –2.6 million)

• 39,300 miles of railroad,one of the most extensivein the world (US-140,035)

• 3550 miles of navigablewaterways/canals (US-12,000)

• 243 airports with pavedrunways (US –5200)

• Pipelines: – Oil: 4040 miles (US-152,000)

– Gas: 3221 miles (US-341,000)



Economics: Resources• 4th largest reserve of coal in world, natural gas, petroleum

• Iron ore, manganese, mica, bauxite, titanium ore,chromite, natural gas

• Diamonds,limestone

• Forests: oak,pine, teak



Economics: Industry• Agriculture:

– Ranks 2nd worldwide in farm output

– Gross land use: 49% arable, 3% permanent crops, 216,000 squmiles irrigated land

– In the Gangetic Plain and in the peninsular deltas, groundwateris plentiful and close to the surface, making year-round irrigation

possible. These regions may produce two or three harvests ayear.

• Industry: manufacturing,mining and construction – Ranks 14th worldwide in factory

output

• Information Technology: – A large quantity well-educated,

English speaking people resultin India as a major exporter ofsoftware services and software



Economics: Population Wealth

• Household income bypercentage share of wealth: – Lowest 10% of population with

3.5% of national

spending/consumption – Highest 10% of population with

35% of nationalspending/consumption

• 25% of population is below

the poverty line

• Inflation rate: 4.5%



Economics: Imports/Exports

Imports• Total Imports: $113.1 f.o.b.

billion – Electricity: 1.4 billion kWh from

Nepal & Bhutan (from

hydropower)

– Oil: 2.09 million bbl/day

– Other: machinery, gems,fertilizer, chemicals

• Import Partners: – China: 7.3%

– US: 5.6%

– Switzerland: 4.7%

Exports

• Total Exports: $76.3 f.o.b.billion – Textiles

– Gems/Jewelry

– Engineering goods

– Leather products

• Export Partners: – US: 16.7%

– UAE: 8.5%

– China: 6.6%

– Singapore: 5.3%

– UK: 4.9



Cities: New Delhi, Mumbai(Bombay) & Bangalore



Cities: India for Visitors

• Local Currency: Rupee

• Time Zone: GMT + 5hr 30min

• Electricity: 220 volt, 50 hz

• Climate (January only):

– New Delhi: 45 - 70 deg F daily, heavy fog

– Mumbai: 55 – 83 deg F daily

– Bangalore: 55 - 77 def F daily – Little rain during January

• Business Hours: Public & private offices:9:30am – 5:30pm M-F



Cities: New Delhi

• Location: Within the capital Territory of Delhi.Geographics: 16.5 squ miles (Delhi: ~900 squ miles)

• Capital of the Republic of India and the seat of theGovernment of India

• Population: 320,000 (Delhi:13.8 million)• Government: Municipal Council of 11 members

– Includes: 1 Chairperson, 3 members of New Delhi Legislative Assembly, 2 members nominated by the Chief Minister of NewDelhi and 5 members nominated by the central government



Cities: New Delhi

• History: Delhi has been the historic capital of much of thesub-continent. The British moved the capital to Delhi, fromCalcutta, in 1911.

• Economics (of the Delhi): – A large scale English speaking work force and high literacy (81.7%)

attract multinational companies

– A large consumer market and readily available skilled labor force

– As the Federal capital, the government employs 212,000 federalworkers

– Manufacturing employs 731,000 workers – Other industries important to Delhi: tourism, construction, banking,

telecommunications, defense

– Delhi is projected to be the 3rd largest metro-area in the world by2025, trailing Tokyo and Mumbai



Cities: New Delhi

Parliament House

RashtrapatiBhawan



Cities: New Delhi

Red Fort

Humanyun Tomb



Cities: Mumbai (Bombay)



Cities: Mumbai (Bombay)• Renamed Mumbai in 1995

• Location: Central-western coast of India

• Geographics: 170 squ miles, multiple lakes and rivers within metroarea

• State capital of Maharashtra

• Population: 13 million, the most populous city in India and the 6th largest in the world

• Government: Municipal Council (corporation) of 277 direct electCouncilors representing 24 wards

• History – Area was governed by different Buddhist and Hindu rulers until 15th

century, by the Portuguese in the 16th century and finally the British inthe 17th century

– The American Civil War resulted in Mumbai (Bombay) becoming theworld’s chief cotton trading market (foundation for textile industry). Theopening of the Suez Canal in 1869 transformed it into a large seaport.



Cities: Mumbai (Bombay)• Economics:

– Commercial capital of India:

• Home of Reserve Bank of India, BombayStock Exchange, the National Stock Exchangeof India and many corporate headquarters

– Entertainment capital of India: Bollywood

– Deep natural harbor with a port that handleshalf of India’s passenger traffic and significant

cargo

– Contributes 10% of all factory employment inIndia, 40% of all income tax collection inIndia, 60% of all custom duties in India and40% of all India’s foreign trade.

– Pre-1980s prosperity was due to textile millsand the sea port

– Post-1980s properity is due to engineering,healthcare, information technology, etc




Gateway of India

Marine Drive




SiddhiVinayak Temple



Cities: Bangalore (Bengaluru)

Bull Temple

Glass House



Cities: Bangalore (Bengaluru)

BangaloreHigh Court

Utilities Building

216f06 India Project Slides (1)

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