India's economic development & Foreign Policy
Foreign policy and economic development in India
India is currently the third largest economy of the globe, surpassed only by the United States and China (and the European Union, yet this is not an individual country). India has traditionally been a rather enclosed economy, with its economic operations focused mostly at the domestic level and limited interactions within the international market place.
Throughout the past two decades however, more emphasis has been placed on opening the country and liberalizing its economy. Some reforms that were implemented in this stance include the deregulation of industries, the privatization of state owned enterprises or the reduction of controls of international trade. These measures were implemented starting in the early 1990s decade and they have proved highly beneficial in the country's economic growth. Since 1997, India has averaged 7 per cent growth rate in its gross domestic product.
The process of market liberalization -- as part of the wider international policy of India -- has as such proven beneficial to the economic growth of the country. Nevertheless, at this stage, a question is being posed relative to the possibility of the economic growth in itself to have influenced the development and implementation of India's foreign policy.
In order to answer this question, a liberal theoretical framework for foreign policy would be employed, namely the liberal theory of international relations. Emphasis would also be placed on the economic stance of India, as well as the characteristics of its foreign policy throughout the past recent period (10-15 years).
2. The liberal theory of international relations
The liberal theory of international relations is a non-utopian model of analyzing the international relations of a country. It has initially originated from the analysis of the role of the social stance and the domestic laws, which influence the international relationships and decisions of a country.
The model has two distinctive advantages. On the one hand, it is realistic and considers reasonable and rational facts in its analysis. This means that the results it retrieves are pertinent and relevant in the context in which the assessment is conducted, not the context of an unattainable perfect market place. Then, the second benefit is represented by the fact that the liberal theory of international relations is a flexible…… [Read More]
Political System, Environment, Political Structure, Function
The Indian political system, structure, and function is much like that of the UK, although it also resembles the U.S. In some ways. The Indian political structure has a President, typically a ceremonial role however; it much resembles the British monarch. In the role of President, the head of state advises members of the Parliament, and may serve as an advocate for the people. In emergent times the President may also advise and warn the people of upcoming warfare or political concerns. If there is an issue of Public Policy the Parliament is unable to decide on, one that is critical, then it may be cause for the President to declare state of emergency, in which state there is a lower house in the Parliamentary which typically has a term of 5-years (as opposed to the upper house which may have a permanent term if warranted).
Much of what happens with regard to public policy occurs within the Parliamentary, who advises and councils with and amongst one another, standing in as advisors for the public and people. The national parliament and state legislators are part of an electoral college and may vote in the Presidential election. There is like in the U.S. A Vice President who serves with the upper house in Parliament, which is known as Rajya Sabh. The Prime Minister is in charge of the government, whom the President appoints following nomination by the major part of the Lok Sabha.
The Prime Minister recommends ministers whom the President then appoints who make up the Council of Ministers. The Lok Sabha or House of the People makes up the Legislative Branch, making up no more than 552 members, representing the people of the states of India. This includes up to 20 members of the people of the Union Territories, and two…… [Read More]
High tariffs have contributed to the United States $8 billion-plus trade imbalance with India (India, 2004).
There have been numerous diplomatic and business lobbying efforts over the past several years to further open India's markets to American goods. And, to a certain degree, those efforts have achieved success. India has reduced tariffs on a number of product categories and has cut its basic ceiling tariff rate from 25% to 20% (India, 2004). However, there were notable exceptions to that cut and India's average weighted tariff actually increased to 28% in 2004 compared to 21% in 2001 (2006 Index, 2006). In short, tariffs continue to be high in key product categories.
The good news is that India has been receptive to discussions on lowering its tariffs, but India still remains a protectionist economy that is not completely open for business. The government even controls pricing in certain sectors - such as energy and pharmaceuticals - and tries to regulate pricing in others (India, 2004). India's trade practices remain a sticky issue in U.S.-Indian relations and have closed off the Indian market to some American companies. Although dialogue is ongoing, this is an issue that will need to be addressed.
Arguably India's most pressing security issue is its rivalry with northern neighbor Pakistan, and most of the dispute between the two countries centers around who should control Kashmir in northern India. The dispute over Kashmir - which dates back to even before Pakistan's founding in 1947 - has led to wars between the two sides and frequent lower-level military conflict and terrorist attacks. Both India and Pakistan have aggressively courted the United States' support on the Kashmir issue and have been disappointed by America's near neutrality, even though the United States probably has limited ability to mediate the conflict (Kapila, 2002). Both sides are suspicious about any words or activities from American officials that would seem to indicate…… [Read More]
A lack of any national system subjects individual citizens to the costs of the healthcare system on the whole. As Rao (2006) reports, "public expenditure on health care today is a dismal 0.9% of GDP; the overwhelming majority of health costs are paid by patients out of pocket. For many, even minor illnesses can cause big financial setbacks, and hospitalisation is out of the question." (Rao, 1) the poor indicators for health discussed here throughout are particularly implicated here, with the understanding that the Indian government has willfully failed to positively impact the healthcare system and its severe limitations as an agency for the delivery of public health.
That stated, there is today a most concerted effort at bringing India into line with the ambitions of the world community. Its policies see India moving toward the uptake of a universal healthcare system which seems to be emerging from the environment of heavy foreign investment elevating India's broader economic fortunes.
A nation conventionally and correctly regarded as one stricken by poverty and a dysfunctional distribution of wealth, nonetheless, India has "today become the tenth largest economy in the world with a GDP of over $166 billion. " (Dickenson Associates, 3) This rise in status should not be seen as unexpected. Certainly, it has been a long and difficult climb out of the disadvantages foisted upon it by its history as a deeply conflicted British colony. Nonetheless, India is today a veritable bastion for democracy in a part of the world otherwise resistant to many of the strains of modernity. And in accompaniment with its great expansion has been the increased level of interest that it has attracted from foreign investors, who believe that India has shown the potential to be a center for the capitalist development of South Asia. Private equity investment…… [Read More]
The United States supported Pakistan by sending a naval force to the Bay of Bengal. This resulted in a straining of relations between the two countries. India was expected to be a responsible nonaligned nation by denouncing the Soviet invasion of Afghanistan. It chose to play the role of a silent spectator and did not take any action.
India invited the wrath of the United States as they refused to condemn the Soviet invasion of Afghanistan. India did make up for its past mistakes eventually by improving relations with the United States, China, Countries in the South Asian Bloc and other developed nations while maintaining ties with the Soviet Union. There was a big change in India's policy when the 1990s saw the disintegration of the Soviet Union which resulted in the death of the bipolar political system in the world. This forced India, which was already suffering from economic problems to reassess its foreign policy to face its domestic and international problems.
India's foreign policy had its shares of ups and downs. Its policy led it to suffer a military debacle against China and forced it to reevaluate itself. Their policy prevented it from globalizing early and made their economy suffer from poor growth. India has gone a long way past its close ties with the former Soviet Union.… [Read More]
India's Population Challenges
The United Nations (UN) reports that the world's population stood at about 6.5 billion in 2005, and is growing at about 1.2% each year. The UN projects that by 2050 there will be 9.1 billion people populating the planet, which as a stand-alone statistic is somewhat frightening, given that rapid growth is expected "in a group of 50 countries classified as the lease developed" (UN, 2005, p. 1). Between the years 2000 and 2005, about 76 million persons were added to the world's population each year, and India was responsible for 22% of that population growth (China added 11%). Indeed India is expected to overtake China "as the most populous country in the world by 2030" (UN). India added about 16.5 million people per year in the 2000-2005 period, while China adds only about 8.4 million people per year in that same window of time, the UN reports. What are the problems India faces that are associated with its fast-growing population? This paper reviews those problems and issues through the available literature.
The Literature on India and its Population Explosion
An article in the International Conference on Mathematical Biology (Thukral, et al., 2008) reports that due to India's "…fast depleting resources" it is "mandatory" that India begin to bring its exploding population under control. A better standard of living for the estimated 1,155,347,700 individuals living in India (World Bank, 2009, www.google.com/publicdata).
can only be achieved if population growth is brought under control, Thukral writes (p. 137).
This strategy will require "regulating the instantaneous specific growth rate through rigorous family planning measures," Thukral continues (138). The authors explain that it is "disturbing" to realize that the gender ratio in India has declined from 972 females to 1000 males in 1990 to a ratio of only 933 females to 1000 males in 2001; more males means more babies born. What has been responsible for this decline in females vs. males? "The preference for the male child in India" is the answer, Thukral explains on page 140. The trend now needs to be towards more women than men, "for a balanced social development," Thukral…… [Read More]
India is a culturally rich and vibrant land. Its traditions stretch back to one of the oldest civilizations in human history, the Indus Valley civilization, which blossomed during the 3rd and 2nd millennia B.C. ("India") and reached northwestern India. The Indian culture as we know it today emerged when Aryan tribes from the northwest invaded the subcontinent about 1500 B.C. ("India") and mixed with the original Dravidian culture. South Asia was united during the Maurya Empire during the 4th and 3rd centuries B.C., peaking during the rule of Ashoka ("India"). India experienced a Golden Age experiencing a blooming of science, art, and culture during the Gupta dynasty. Islam was introduced to India via a series of invasions that spanned 700 years. The Delhi Sultanate was established in the 10th and 11th centuries through the invasions of the Turks and Afghans. Emperor Babur established the Mughal Dynasty in the early 16th century which rules India for another three hundred years ("India").
Europeans began visiting India during the Mughal Dynasty, however, by the 19th century Great Britain was the prevailing political force. The British Indian Army participated in both World Wars. India gained its independence through years of non-violent resistance, led by Mohandas Gandhi and Jawaharlal Nehru. Their year of independence is 1947 ("India"). India was portioned into two separate states, the predominately Hindu India and the majority Muslim state of Pakistan. Three wars have been fought between the neighbors since 1947, the last war fought in 1971 resulting in the creation of Bangladesh ("India").
Modern India has a number of problems including corruption, overpopulation, environmental problems, and widespread poverty ("India"). However, there has been economic growth since economic reforms in 1991 and a significantly large youthful population are propelling India's rise a local and global power.
India lies in South Asia, bordering the Arabian…… [Read More]
Communication is sharing of information and meaning (Hassan, 2007) and that meaning dictates the effectiveness of teaching and learning. Students -- and other people, in general -- often interpret the oral information or message according to the non-verbal expression that accompanies it. A verbal approval said in an ironic tone can send an opposite impression of censure. Non-verbal communication should, therefore, be given serious consideration, especially in a second-language school setting (Hassan).
Findings of the study categorized non-verbal communication into 8 (Hassan, 2007). Kinesics consists of boy language and gestures, such as a happy mood, negative body expressions, kind and friendly look, nodding to encourage, exhaustion, and raised fingers, which embarrassed. Proxemics refers to the space between the teacher and the students. The closer they were, the greater the students' understanding of the lecture. Students disliked distance. Vocalics covers the pitch, tone, rhythm and volume of the teacher's voice. Students learn more if there is variation in these and tend to get bored with a monotonous tone. Chronemics refers to the teacher's behavior towards time. If she comes to class irregularly, the students tend to take classes casually. If she keeps looking at her wrist watch, she sends the message that she is running out of time or on overtime. Oculesics means eye-to-eye contact. A cold stare embarrasses students. They like eye-to-eye contact with the teacher, but they look away when they do not know the answer. Locomotion refers to the teacher's movement. Students become active when she moves and lazy when she simply stands still. Adornment consists of the teachers dressing, sex, age and smartness in looks. If she has an attractive personality or smart-looking, her lecture is often successfully conveyed. Gender and age are also important factors in successful teaching. Silence, haptics, facial and other physical expressions consist of touches, smiles, hand-shaking and patting, an interactive class, a well-furnished classroom and a vivacious teacher facilitate her message transmission (Hassan).…… [Read More]
Over a period of time, the Ayurveda medicine lost its importance and today, its benefits are lost to the entire world. The power of herbs was not passed on to subsequent generations and so, the Indian society continues to use the form of medicine introduced by the British instead of relying on its indigenous herbs. This is another example of the decentering of culture due to British influence. Besides, they influenced the agricultural practices, work ethics and industrial manufacturing processes to a large extent. This extensive rule by the British left no aspect of the society untouched and this led to the loss of many indigenous methods of agriculture and manufacturing that were producing superior results.
Another aspect of decentering was the introduction of English into the society. Prior to British arrival, the country was fragmented by different castes and regions and each region had their own language. A significant aspect of the pre-British Indian society was the existence of numerous dialects and languages. When the British came, English became a common language. Many people began to speak English to be able to work with their British superiors and the language was also introduced in schools and colleges as a medium of instruction. Soon, the educated and elite part of the society were able to converse, read and write fluently in English and this gave rise to a multi-lingual society. The influence of English is seen even today. India is the outsourcing capital of the world with millions of call center jobs and one of the primary reasons for this boom has been the importance and fluency of the language that has evolved in the society over many generations. However, this has also led to the loss of numerous local dialects and practices.
British rule also had a profound impact in the country's governance and infrastructure and this can be considered to be one of the positive effects of colonial rule. Today, India is the largest democracy in the world with a parliament…… [Read More]
India, a primarily Hindu country, is emerging as a player in the software industry. With over 1 billion people within her borders, India's culture is one of the oldest and largest in the world. Such a vast pool of talent intertwined with cultural identity makes for an interesting breed of workers, and, at the top of that chain, a fascinating approach to managing these workers.
Sunil Jalihalm, CIO of eVector Mobile, a wireless software provider in Bangalore, India, was born in raised in India and has worked in various executive positions in India and America. Thirty-six years old and he has already worked at several large and start-up companies - several here in America. The toughest part of management has, and always will be, surprisingly enough, the actually managing that must be done. Not the management of decisions and the direction of the company, but leading the people underneath you. Understanding them, relating to them in a manner that they will respect and follow loyally and with one hundred percent. To effectively manage one must understand the people underneath him/her and the appropriate managing style to deal with those people. The physical infrastructure of America's Silicon Valley and India's equivalent in Bangalore "have been very similar for a few years now," states Jalihalm. However, the people behind the machines, the people that need to be managed, have idealistic differences. The general culture of IT companies across the world is similar. Computers will be computers. Indian engineers are rival Silicon Valley workers in creativity, eagerness to do new things, and technical knowledge. However, the basic Indian philosophy of "knowledge for knowledge's sake: don't expect to get any gains from it" holds true for the Indian workers while American workers tend to be more specialized, utilizing the knowledge for specific reasons. Indian workers are more emotional, believes Jalihalm.
Jalihalm, an expert in managing companies in India and the United States, has a bird's eye view on Indian Management. He says that Indian management style is a combination of the American/European and Japanese/Asian styles, because neither approaches can be directly applied to the Indian workforce. "There needs to be a combination of applying structured management techniques, which include driving/guiding people out of their complacency; handling the emotional side of your team;…… [Read More]
Dan Ramirez and Susan Perdorna are interested in starting up a new company in Banglore, India and wish to locate some R&D Staff there and a small sales force to tap into the Indian market. Their families are also interested in the opportunity to invest. The type of corporate governance that they will select to manage the venture is a critical success factor in the new business division's success. The both the managers and investors will undoubtedly have to deal with the principal-agent problem given that the venture is oversees. Since the investors will be foreign based they will want to ensure that they are given rights and treated equitably as shareholders. They will also want to ensure that their agents act with integrity and maintain ethical business behaviors at all times. Furthermore, the investors will want to ensure that there is full disclosure and transparency.
To achieve all of these objectives, Ramirez and Perdona, are their respective families, will want to form a corporate model with a board of directors. The company could choose a local manager to oversee daily operations and have the board present to provide oversight as well as vote on any major decisions. This would ensure that the stakeholders could have a say in major decisions. Foreign members of the board should vote by proxy on major decisions that the company makes. The governance that the board operates by will dictate the decision making process and should be well thought out given the international commerce situation. There…… [Read More]
India and Pakistan -- Poverty posing serious threats
The world renowned country, India, growing rapidly at more than 9%, member of BRICS block (Brazil, Russia, India, China & South Africa), according to Gold Man Sachs, BRICS will produce about 50% of the total world GDP in 2050. But the main threat to India is Poverty which may hurt the sustainable growth. The Indians living in rural part of the country drives their income from agriculture whereas the urban class mostly dependent on scarce jobs. The poverty is nothing new for India; it has been prevailing since independence. In 2010, 1.35 billion (more than 37%) Indians still lives beneath the poverty line. Data revealed that 22% and 15% of the entire rural and urban population of India facing serious financial and physical problems, respectively. There is a huge gap between different states of India owing to bumpy distribution of resources, as well as health in India. A case in point here, in comparison to Bihar and Orissa, Delhi and Punjab are well settled and have low poverty rate. Where as in former states, the situation is very bad and mostly lives below the poverty line. Further analysis of rural region brings some factors which is making the situation worsen there. It encompass, there dependency on agriculture income which relies on rains and monsoon season. Pathetic irrigation facilities are main impediment in the production and their yield. In some parts, it gives zilch production. Another reasons include, large families, caste system which intensify the already worsen position. The people, who belong to lower caste, are deprived from even basic necessities and opportunities. Several actions have been taken over by the Government of India to reduce poverty, but it results is yet to be seen (Economy Watch, n.d.).
Rising population and migration from rural to urban is the main reason of poverty in urban areas of India. The reason for migration of people to urban cities is the unavailability of basic necessities and jobs.
According to Hindustan times, 2,500 children in India die every day because of malnutrition, mainly caused by Poverty. The petitioner, "Colin Gonsalves" put a petition in the supreme court of India which brought…… [Read More]
India is amongst the most populated nations in the world and is one of the oldest civilizations in the world. The economy of India has been an important in the study of world economies for many years. The purpose of this discussion is to provide a detailed view of India's economy. We will focus on Current Statistics such as; exchange rates, inflation, interest rates, Gross National Product, and Gross Domestic Product. The discussion will also discuss the currency that the country currently utilizes. In addition, we will examine current trading partners and policies. We will also discuss trade agreements and dominant industries and companies. Finally, our discussion will focus on the black market transactions that take place in the country.
According to the world fact book India's economy consist of agriculture, participation in a large range of industries, village farming, and handicrafts. (India) The factbook explains that India's large population has crippled the economy of the country. (India) Other threats to India's economy include conflict between religious and political groups throughout the country. (India)
Exchange Rates, Inflation and Interest rates
According to the Universal currency converter at the current exchange rate 1.00 USD is equivalent to 44.6884 INR. Like wise 1.00 Euro is equivalent to 54.1701 INR. (Universal Currency Converter) Inflation was at 5.91% for the week ending February 7, 2004. Current interest rates for FNCR deposits in India are between 1.19 and 1.35 for 1-2-year loans. (Banknet India) The rates are 1.00 to 2.14 for 2-3-year loans and they are at 1.40 to 2.76 for 3 yr loans. (Banknet India) Interest rates for other instruments are displayed in the graph below, which was taken from India Profile: Monetary system, currency and exchange rates.
Deposit Rate3 (>one year)
Call Money (Borrowings)
364 days T-Bills
Relates to January 15,…… [Read More]
India has also become a major proponent of technology and labor exchange in order to promote growth and break down societal and economic barriers (Embassy of India, no date).
Lastly, the Indian foreign economic policy with regards to the United States has been a key driver of economic growth. The U.S. is India's largest trade partner, and services export has become a hallmark of that trade. India has a strong comparative advantage in the English language vs. other major developing nations and has leveraged this through the building of increased trade channels with the United States. India began to forge stronger trade ties with the Clinton Administration, in concert with internal economic modernization policies. Since that point, trade has become a critical part of India-U.S. dialogue, complete with the easing of economic sanctions from the U.S. And a series of agreements and joint governmental alliances. India has become much more proactive in its trade-related U.S. foreign policy, including forming an opposition group of developing nations to the Byrd Amendment.
Much of India's economic miracle can be traced to shifts in its economic foreign policy over the past dozen years. Trade has become the most important aspect of Indian foreign policy and now characterizes relations between India and its major trading partners, in particular the United States and the Gulf States. This paper proposes to analyze these policy shifts and the reasons why they were made.
Works… [Read More]
India's sacred cow" by Marvin Harris explicates the religious, social, and even practical uses of the cow, strengthening Indians' belief in the sanctity of the domesticated animal. Harris' thesis argues that "[t]he sacredness of the human cow is not just an ignorant belief that stands in the way of progress. Like all concepts of the sacred and profane, this one affects the physical world; it defines the relationships that are important for the maintenance of Indian society." From this main point, this summary and analysis paper looks into the religious ritual of considering the cow as a sacred symbol of Hinduism.
The article first elucidates on the practical uses of the cow, an imperative step towards developing Harris' arguments later, explaining why the sacredness of the cow became an important religious ritual in India. Drawing from the activities, processes, and nature of agricultural farming history in the country, Harris establishes how ancient methods of farming reflect the importance of cow, whose ability to produce oxen enables farmers to accomplish farm plowing and other strenuous farm activities that human labor alone cannot finish immediately and easily. Apart from its reproductive capabilities to produce oxen, cows are also essential in producing milk and other forms of dairy products. Even cow dung becomes an important energy source. The cow's usability goes beyond its usefulness; maintaining cows require minimum economic expenditure, since they thrive on unconsumed vegetables and foods that humans no longer need.
These practical uses of the cow in India has become an integral part of the society and hence, this is strengthened by imposing in Hinduism that cows are considered sacred symbols of health and life, preventing Hindus from killing…… [Read More]
India's Outsourcing Firms
Select the appropriate answer from the list and briefly discuss your reasons
The strategy behind attempts by Indian software and outsourcing companies to enter the Japanese market could be termed (c) global integration.
The Indian software and outsourcing companies have worked to enter not only the Japanese economic and business market, but to do so with a level of cultural integration in mind. This is a highly important component of global expansion in business (Wager, 2009). Indeed, the business person must be able to communicate at a certain cultural level in order to make a success of the business (Nelson, 2011). This is something that Indian companies have been highly aware of, providing cultural training for their employees. It is only with a high level of cultural sensitivity that foreign companies can successfully enter a new global market. This is particularly true in the case of Japan, which has been notorious for its parochial, traditional outlook. The eventual success of Indian companies in this market has shown the wisdom of the cultural sensitivity approach.
2. One particular trait of Japanese firms that Indian software and outsourcing companies have noticed is (c) a parochial outlook on global competition.
Japanese companies have traditionally been closed to influences from the outside world. Businesses are family oriented and homogeneous. It is…… [Read More]
Answering one form of the question, "Is there an Indian way of thinking?" Ramanujan (1989) states, "There is no single Indian way of thinking…Each language, caste, and religion has its special worldview. So, under the apparent diversity, there is really a unity of viewpoint, a single supersystem," (p. 41-42). The pluralism of India is not a colonial construct, and nor is it even a modern one. India's diversity and multiculturalism has been embedded in the fabric of its society for millennia. Most critical analyses that attempt to attach singular monadic identities onto India are not only prejudicial but categorically false. Considering the quantitative dominance of Hinduism throughout the subcontinent, it is miraculous from a sociological standpoint that so many strong minority faiths find expression, support, and celebration. "The diversity, fluidity, and complexity within as well as between cultures precludes a reification of their differences and allows one to avoid the kind of monadic essentialism that renders cross-cultural engagement an a priori impossibility," (King, 1999, p. 3). Hinduism is far from monolithic itself, and never has been. The projection of a singular identity onto India is a faulty premise, for India has never presumed the world to be as simplistic or as boring as that. As Ramanujan (1989) points out, there is a unifying "supersystem" that serves as a cultural web in India. This supersystem functions much like the American identity functions in the United States: it provides the means by which to embrace multiplicity under a shared rubric.
From within this kaleidoscopic lens, it is possible to view all ethnic and religious groups in India as being integral to the whole and yet possessing its unique character, culture, and creed. There is an Indianness about each group, but there is also a non-Indianness to all religions save for Hinduism, its counterparts like Jainism, Buddhism, Sikhism, and indeed all religions actually born and bred in India.…… [Read More]
India and Commodity Sample
Commodity production, in many countries, provides both economic and financial stability for its constitutions. In many instances, commodity production can determine overall prosperity of a particular nation, heavily dependent on its production. Many emerging countries, for example, depend heavily on exporting commodities to other more developed nations. Examples include oil from South America, oranges from Brazil, sugar from Costa Rica, and manufacturing from China. As the articles indicate, India is dependent on the textile industry with respect to the production of clothing. As such, government policies and societal norms designed to help this industry flourish are very important to the overall prosperity of the nation. In addition, globalization provides added financial incentive in which to specialize in a particular trade. Being a low-cost producer in the textile industry for instance, provides India with a competitive advantage relative to its rival Asian countries. As such, it can better position itself to prosper through commodity production. However, as will soon be illustrated in this document, many factors determine the extents to which commodity production can help the country flourish. Aspects such as communism, inequality, political unrest, and more, can help abate the economic influences of commodity production.
To begin, the article entitled, "Creating Fame and Fortune from the Ruins of Handloom in Korala, Southern India," explains the relationship to governmental policies and overall economic prosperity. As mentioned in the introduction, India is particularly reliant on the textile related manufacturing. This due primarily to its low cost of labor, combined with its burgeoning middle class. As India is the second most populous country in the world, it naturally has the ability to use a large force within its commodity industries. This labor force has the ability and willingness to produce commodity related products at relatively low costs. As the article alludes to, labor, in regards to commodity production is often the highest expense in which a business must pay. By dramatically lowering this cost, India is in essence, creating a competitive advantage relative to its peers in the industry. However, government intervention an action is needed to create more fortune for the inhabitants of India. Infrastructure for instance, is important in regards to commodity production. The ability to seamless and effortlessly transport finished goods is important in regards to overall productivity within…… [Read More]
Today, industries that are dominated by human services including it, consulting and pharmaceuticals have low tariffs. For FDI-based strategies to be successful for consumer products, the multinational corporations (MNC) looking to expand into India will need to be much more culturally aware and sensitive than the it outsourcing companies hiring call center agents, programmers and systems analysts. For a consumer products company to succeed they will need to navigate the many laws and regulations of running a business in India, negotiate for lower tariffs to import products, and build a supply chain in India as well. It is attractive for MNCs looking to expand into India using Foreign Direct Investment (FDI) strategies, yet they must concentrate on the cultural sensitivities of the country first, partner closely with the Indian government, and establish supply chains that immediately infuse local economies in India with capital. The Indian government has become more accepting of FDI by consumer companies expanding there, yet there must be a plan to achieve cultural integration and infuse regions with economic growth quickly if these plans are to succeed (Shroff, 2008).… [Read More]
The post 1919 era saw the emergence of Gandhi and the Congress that replaced British rule, as well as -- and contrary to Gandhi's attempts -- embracing of violence by some parties in order to gain independence.
India achieved her independence in 1947, but with it came a host of unexpected difficulties that the newborn country, until then dependent on Britain, had difficulties coming to grips with. These included development administration and promoting rapid socio-economic progress in a country that undergoing economic stress.
The state services were constructed according to departments and were divided into a descending level of four groups: Group A, B, C, and D. each distinguished by the responsibility of its work and the qualifications of its performers.
Group A -- the most important -- is the general administrative service whose members are annually promoted into the IAS. The higher civil servants generally come from the urban middle class with representation from rural populations being imbalanced. Add to this is the fact that discrimination is routinely practiced in appointment to civil service position with those from certain castes and tribes being ignored. More so, the fact that members of the civil service are paid in proportionate to their contributions (as are doctors and engineers) is one of the factors that continues to contribute to bureaucratic muddle and slowness as well as corruption with low motivation and morale being a result.
Though recruitment to the civil service is still, allegedly based on merit, in actuality, the system has become increasingly politicized with demotions and promotions as well as employment and firing resting on the higher echelon of the executive body. In this case, an imbalance of power has caused growing political interference in administrative matters and both the civil servant and the politician curry with one another in the grasp for favors.
Kumar, F. Essay on the origin and development of bureaucracy in…… [Read More]