India Development Case Study Flashcards
(30 cards)
Name a “periphery” state and its challenges.
Bihar – landlocked, poor infrastructure, low FDI, high fertility
Compare GDP per capita in Goa vs. Maharashtra
Maharashtra: $4,500
Bihar: $1000
What is brain drain in India?
Skilled workers migrate from periphery (e.g., Bihar) to core cities (e.g., Mumbai, Delhi).
Why does Bihar struggle with FDI?
Poor governance, weak infrastructure, rural economy (80% agriculture).
How could Bihar reduce inequality?
Invest in education (low literacy), irrigation (monsoon failures), and power grids.
What is the Green revolution?
An increase in production of cereals/grains in countries such as India. This allowed developing countries to become more self-sufficient.
The Green Revolution (and also the increase in food exports) was greatest in the south and the west compared to the north and the west. Rajasthan, which borders the rich state of Gujrat, is often affected by drought and crop failure due to the failure of the monsoon.
How has the multiplier effect changed India
These reasons led to the positive
multiplier effect in the south and the west where a high level of development created a well-educated work force. This then attracted foreign investment from
transnational corporations, further increasing the wealth of the south and the west.
Why is Maharashtra a core region of India?
Coastal trade(40% of india), financial hubs (Mumbai), diverse industries (Bollywood, IT), and FDI dominance.
Sectoral changes in India
Agriculture: Declined significantly as farming became more mechanized.
Services: Expanded rapidly, especially in IT, outsourcing, and tourism.
Manufacturing: Grew modestly, with factories creating urban jobs.
Quaternary Sector: Emerged in tech and research (e.g., software design).
Key drivers in India’s sectoral changes
Global Outsourcing: India became a hub for IT and customer service.
Urbanization: People moved to cities for better-paying jobs.
Government Policies: Encouraged foreign companies to invest in factories and tech.
How has FDI in India changed recently?
Rose from $17.8B (2006/7) to $34.4B (2014).
Why do TNCs invest in India?
Skilled, low-cost labor (e.g., IT, manufacturing).
Large consumer market.
Examples: Hyundai (cars), Microsoft (call centers).
Name 3 advantages of TNCs in India.
Job creation (e.g., factories, call centers).
Multiplier effect (local businesses benefit).
Infrastructure upgrades (roads, internet).
Name 3 disadvantages of TNCs.
Pollution (weak environmental laws).
Economic leakage (profits sent abroad).
Exploitative labor (low wages, harsh conditions).
How does public investment support India’s economy?
Funds education, health, transport (e.g., educated workforce for IT sector).
Explain trade in India?
Pre-1990s: India had a closed economy with high tariffs and strict import controls, limiting growth.
Post-1990s: Reduced trade barriers → surge in exports/imports, integrating India into the global economy.
Explain major imports and exports in india’s trade?
Major Imports:
Crude oil (fuels industries), gold/electronics (rising consumer demand).
Top Partners: China, UAE, Saudi Arabia, USA.
Major Exports:
Petroleum products (refined oil), pharmaceuticals, gems/jewellery, IT services.
Top Partners: USA, UAE, China, Bangladesh.
What are the impacts of trade on India’s economy?
Economic Growth:
Trade now accounts for ~40% of GDP.
Services exports (e.g., IT outsourcing) made India the 8th-largest services exporter (2014).
Industrialization:
Imports of machinery/electronics boosted manufacturing (e.g., automobiles, textiles).
Job Creation:
Export sectors (e.g., pharmaceuticals, jewelry) employ millions.
Challenges:
Trade deficit (imports > exports, especially for oil).
Dependency on China for electronics/raw materials.
How has India’s fertility rate changed?
1971: 5.2 children/woman → 2015: 2.3 (near replacement level).
Causes: Family planning policies, urbanization, women’s education.
Mortality trends in india
Infant mortality: ↓ 135/1000 (1970s) → 42/1000 (2015).
Life expectancy: ↑ 50 years (1970) → 68 years (2015).
How do demographic changes boost India’s economy?
“Demographic dividend”: Large working-age population (15–64 years) → labor force growth.
Challenges: Need jobs for youth; aging population long-term.
Who gives aid to India?
India received ODA (Official Development Assistance) which it spends on things like infrastructure projects and education. Japan, Germany, France and the UK are amongst the biggest contributors of ODA to India.
How has India’s neutrality shaped development?
Cold War era: Avoided superpower dependence → self-reliance.
Now: Balances ties with USA (defense) and Russia (energy).
Name one positive and one negative geopolitical impact on India.
✔ Positive: US/UK FDI in tech.
✖ Negative: Kashmir conflict drains resources.
