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Flashcards in India Deck (39):
1

What % of the population are engaged in the private sector?

75%

2

What % of GDP does the private sector account for?

25%

3

What causes high degree of rural poverty?

Majority of landholdings are farmed at subsistence level

4

In 1999 what % of people lived on less than $1 a day?

42%

5

What has limited rapid expansion in India?

Low level of FDI

6

What has the transformation of the Indian economy been led by?

Service sector

7

What does India have a large number of?

Highly qualified professionals who skills are in demand in other countries

8

What has demand and supply of workers been united by?

Telecommunications and worker migration

9

In 1999 what was a milestone in India's economic progress?

Infosys Technologies (a software exporter) became the first Indian company to list on a US stock market

10

In 1999 what did IT sectors market capitalisation reach?

Exceeded 1,000 billion, highest valuation ever placed on an Indian industry

11

In 2000 what % of GDP did services account for?

47%

12

What has the filter down of employment to India been dominated by?

Links with North America and Europe with relatively low level of involvement from Japan and the other dynamic Asian economies

13

In the decades after 1947 independence what policy did India follow?

Policy of import subsitution which led to the development of a broad industrial base

14

What is import substitution?

Manufacturing its own products rather than importing from other countries

15

What did the lack of foreign competition result in?

Contributed to poor product quality and inefficiencies in production.

16

How were Indian manufactured products viewed?

Viewed as poor quality in the domestic market and for the same reason made little impact abroad

17

In the early stages of economic reform how could foreign companies enter manufacturing sector?

Through joint ventures meaning that India's 15,000 joint ventures were formed for regulatory purposes rather than strategic ones

18

Since 1999 how has foreign investment changed?

100% foreign ownership has been allowed in many industrial sectors

19

What is India's most successful joint venture and what did they do?

Hero Honda, which has a 26% stake in the company announced in 1999 that it had secured permission to set up a 100% owned subsidiary

20

What has become the focal point for the car industry?

Madras

21

Since 1991 how has the number of car manufacturers in India increased?

Increased from 3 (190,000 vehicles) to 10 (500,000 vehicles) in 2000

22

What do the western states of Gujarat and Maharastra attract?

Attract about 1/4 of all new investment, both domestic and foreign, into the Indian economy

23

What did India commission in 1999?

World's largest integrated oil refinery - 27 million tonnes per anumn

24

How much revenue did FDI produce in 2000?

$2 billion

25

By 2005 how does the government hoped to have increased FDI?

$10 billion a year

26

How have revenues from Indian software exports grown?

Grown from less than $1 billion in 1996 to $4 billion in 2000

27

By 2008 what % of GDP will software exports account for?

7%

28

What has India's IT sector benefitted from?

Filter down of business from the developed world

29

3 reasons why outsourcing occurs in India

Labour costs are lower
Number of developed countries have significant ICT skills shortages
50 million fluent English speakers in India

30

In 1999 what did India establish?

Ministry of IT - main task is to increase software and ICT services revenue for the country

31

Where has emerged as the centres of India's IT industry?

Bangalore
Hyderabad
Madras
Pune
Dehli

32

What happened to the company Texas Instruments in 2000?

Half of a dozen of its top Indian engineers left the company strike out on their own

33

What did a recent survey by the National Association of Software and Services companies show?

Demand for IT professionals is expected to rise from 340,000 in 2000 to 800,000 by 2005 - possible manpower shortages

34

What did the company Cisco pledge to the Indian government?

Pledged $10 million to set up 30 'networking academies' across the country in order to avoid the impacts of a 'brain drain'

35

What does NASSCOM estimate?

India will employ 1.1 million people and earn $17 billion from IT enabled services by 2008

36

What are the 2 sections of India's back office industry?

Captive operations of large western companies seeking to cut back office costs without outsourcing

Shorter term contracts between western companies and subcontractors in India, often booked by middlemen

37

What is a worrying effect of national growth?

Increase in the development gap between north and south - known as regional diversity

38

Where is most investment flowing?

Flowing southwards into a v-shaped region from Gujarat in the west to Andrah Pradesh in the east

39

What models do the growth of Indian economy follow?

Models of regional development constructed by Gunnar Myrdal 1957 and Albert Hirschman 1958 - explain that in the early stages of economic development the wealth gap between core and peripheral regions widens