India Development Case Study

Question 1

India location and context in the world

Answer 1

Geography: South Asia, bordered by 7 countries (China, Pakistan, Nepal, etc.), Indian Ocean, and key water bodies (Arabian Sea, Bay of Bengal).

Significance:
Trade & Energy: Controls vital shipping routes (Strait of Malacca, Hormuz).
Geopolitics: Counters China in Indo-Pacific; member of G20, BRICS, QUAD.
Demographics: 1.4B population, 7th largest by area.

Question 2

How do Maharashtra (core) and Bihar (periphery) reflect India’s core-periphery divide?

Answer 2

1. Economic Disparity:

Maharashtra (Core): Contributes ~15% of India’s GDP; financial hub (Mumbai), industries (automobiles, IT).
Bihar (Periphery): Lowest GDP per capita among states; agrarian economy, limited industrialization.

2. Infrastructure & Urbanization:

Core: Mumbai-Pune belt with highways, airports, SEZs.
Periphery: Poor roads, low electrification, mass migration for jobs.

3. Human Development:

Maharashtra: Literacy ~84% (above nat’l avg.); IMR of 19 (lower than nat’l 28).
Bihar: Literacy ~62%; IMR of 32; high poverty (~34% population).

4. Political Influence:

Core: Policy focus (e.g., Mumbai’s coastal road, FDI in Mumbai-Delhi corridor).
Periphery: Dependent on central welfare schemes (e.g., MNREGA, PM-KISAN).

Question 3

What key statistics define Mumbai’s development and disparities?

Answer 3

1. Economic Powerhouse:

GDP Contribution: ~₹22 trillion (~6% of India’s GDP).
Financial Hub: Hosts BSE (Asia’s oldest stock exchange) and 50% of India’s FDI inflows.

2. Population & Density:

Population: 20.9 million (metro, 2024) – 2nd most populous city in India.
Density: ~20,000/km² (Island City: 30,000/km² – among world’s highest).

3. Infrastructure & Urbanization:

Public Transport: 7.5 million daily commuters (Local trains carry 2,500 passengers per 9-car train vs. capacity of 1,700).
Slums: 42% of population lives in slums (Dharavi, Asia’s largest, houses ~1 million).

4. Human Development Contrasts:

Literacy Rate: 89% (vs. India’s 77%).
Per Capita Income: ~₹4.5 lakh/year (3× India’s avg.) – but top 1% earns 35× more than bottom 10%.

Question 4

How do Bihar (periphery) and Maharashtra (core) compare on key development indicators?

Answer 4

1. Economic Power:

GDP (2024):

Maharashtra: ₹38.8 lakh crore (16% of India’s GDP)
Bihar: ₹7.6 lakh crore (3% of India’s GDP)

Per Capita Income (2023):

Maharashtra: ₹231,000 (2.5× national avg)
Bihar: ₹54,000 (half of national avg)

2. Human Development:

Literacy Rate:

Maharashtra: 84.8%
Bihar: 61.8%

3. Infrastructure:

Urbanization Rate:
Maharashtra: 45%
Bihar: 11%

4. Industrial Base:

FDI Inflows (2023):
Maharashtra: $15.3 billion
Bihar: $0.04 billion

5. Social Indicators:

Poverty Rate (2023):
Maharashtra: 14%
Bihar: 34%

Question 5

What are the primary reasons for Bihar’s persistent underdevelopment?

Answer 5

Historical Legacies:

Colonial Neglect: Bihar’s traditional industries (textiles, metalwork) were destroyed under British rule, turning it into a “labor supplier” for plantations/mines.

Geographical Challenges:

Landlocked: No coastline or major ports; limited connectivity to global markets.

Weak Institutions & Governance:

Corruption: Ranked among India’s most corrupt states (Transparency International, 2023).
Law & Order: High crime rates (e.g., 2,500+ kidnappings/year) deter investment.

Social Factors:

Caste Divisions: 58% population is OBC/EBC; upper-caste dominance historically limited inclusive growth.
Low Human Capital: 25% children out of school (highest in India); 48% women literate (vs. 74% men).

Economic Stagnation:

Agrarian Dependence: 77% workforce in agriculture (vs. Maharashtra’s 45%), contributing only 22% to GSDP.

Question 6

What key factors drove Mumbai’s development into India’s financial and industrial hub?

Answer 6

Historical Advantages:

Colonial Legacy: Developed as a major port by the British (Gateway of India) for trade and administration.

Geographic & Strategic Location:

Natural Harbor: Deep-water port ideal for international trade.
Connectivity: Linked to global shipping routes (Strait of Hormuz, Malacca).

Economic Drivers:

Financial Capital: Home to BSE (Asia’s oldest stock exchange), RBI, and corporate HQs.
FDI Magnet: Receives ~50% of India’s FDI due to infrastructure and markets.

Infrastructure & Urbanization:

Transport: Local trains (7.5M daily commuters), upcoming metro expansion.

Human Capital & Migration:

Skilled Workforce: Attracts talent nationwide (IT, finance, arts).

Question 7

Sectoral changes in India

Answer 7

1950s:

primary: 55% GDP, 70% jobs
secondary: 15% GDP (PSUs)
tertiary: 30% GDP

2024:
Primary 15% GDP, 45% jobs
secondary: 25% GDP (Manufacturing: 16%)
tertiary: 55% GDP (IT, finance)

Question 8

How do trade, aid, FDI, and public investment shape India’s economy?

Answer 8

Trade:
Exports: $450B (2024); top sectors = IT services, pharmaceuticals, gems/jewelry.

Foreign Aid:
Major Donors: Japan (infrastructure loans), World Bank (health/education).

FDI:
Inflows: $85B (2023); top sectors = IT, auto, renewables.
Sources: USA (45%), Singapore (20%), EU (15%).

Public Investment:
Focus Areas: Infrastructure,welfare, PLI schemes.
Spending: ~3.3% of GDP (2024)

Question 9

What is FDI in terms of india?

Answer 9

FDI (Foreign Direct Investment) is cross-border investment where a foreign entity establishes business operations or acquires assets (e.g., factories, companies) in India, aiming for long-term control or influence.

2023 Inflow: $85B (3rd highest globally)

Top Sectors: IT (35%), Auto (15%), Renewables (12%)
Main Sources: USA (45%), Singapore (20%), EU (15%)

Policy:

Automatic Route: 100% in most sectors
PLI Schemes: $26B for manufacturing boost

Impact:
✓ Creates jobs & tech transfer
✗ Regional imbalance (60% to 5 states)

Question 10

What are PLI (Production Linked Incentive) Schemes?

Answer 10

Government cash rewards for companies that increase domestic manufacturing and exports in key sectors.

Question 11

How effective is international aid in boosting development?

Answer 11

Successes in India:
Infrastructure:

World Bank funded $3B for highways, rural roads (PMGSY).

Japan (JICA): ₹1.5L cr for metro projects (Delhi, Mumbai).

Health:

Global Fund: Helped cut TB deaths by 50% (2000–2020).
Gavi Alliance: Vaccinated 300M kids (e.g., polio eradication).

Education:

UK Aid: Improved literacy in Bihar (+12% enrollment).

Failures/Limitations:

Dependency Risk:
Some states rely on aid vs. self-sufficiency (e.g., Odisha’s long-term cyclone aid).

Corruption & Mismanagement:
UNICEF funds misuse (2022 scandal in UP nutrition schemes).

Uneven Impact:
Urban bias (e.g., Delhi metro vs. rural Bihar’s broken schools).

Question 12

How is India’s demoraphic changing?

Answer 12

Slowing Growth: Fertility rate ↓ to 2.0 (2023), nearing replacement level.

Youth Bulge: 65% under 35 (median age: 28 vs. China’s 38), offering a “demographic dividend.”

Aging Future: By 2050, 20% will be 60+ (up from 10% now).

Urbanisation: 35% urban (2024), rising to 50% by 2047, straining cities.

Question 13

How are education and inequality evolving in India?

Answer 13

Education:

Progress:
Literacy ↑ from 65% (2001) to 78% (2024).
School enrollment >95%

Inequality:
Wealth Gap:
Top 10% hold 77% wealth (Oxfam 2024).
Urban-rural income gap 3:1.
Gender and caste inequality

Question 14

How is shifting geopolitics impacting India’s development?

Answer 14

U.S.-China Rivalry:

Opportunity: “China+1” strategy boosts FDI in Indian manufacturing (e.g., Apple shifting iPhone production).
Risk: Tech decoupling (e.g., Huawei 5G bans) may slow innovation.

Russia-Ukraine War:
Energy Crisis: Cheap Russian oil (35% of imports) aids inflation control but risks Western sanctions pressure.

Global South Leadership:

G20 Presidency (2023): Pushed digital public infrastructure (UPI, Aadhaar model for developing nations).
Africa Outreach: Strategic investments (e.g., $14B Line of Credit) to counter China’s Belt & Road.

Question 15

What geopolitical policy does India follow?

Answer 15

Non alignment- balance between east and west

Question 16

How does technological advances help develop india?

Answer 16

Economic Growth:
IT Sector: $250B revenue, employs 5M+

Human Development:

Health Tech: CoWIN vaccinated 1B+ people;
EdTech: BYJU’S (used by 150M students).

Question 17

How does BRICS impact India’s development?

Answer 17

Trade & Funding: Access to 40% global market; NDB financed $7B+ (renewables, metro).

De-Dollarization: Rupee-ruble trade cuts USD reliance.

Geopolitical Voice: Challenges Western dominance in global forums.

Question 18

What are the environmental, social, and economic impacts of rapid development?

Answer 18

Environmental:
Pros: Investment in renewables (solar/wind).
Cons: Deforestation, CO₂ emissions, water pollution, biodiversity loss.

Social:
Pros: Better healthcare (↓ infant mortality), jobs (↓ poverty), community growth.
Cons: Urban slums, poor public health, gender/age inequality (men/youth benefit more).

Economic:
Pros: Strong economy (consumerism, tourism jobs, larger workforce).
Cons: High costs (pollution clean up, infrastructure, service demands).