107-india still not flat

8/8/2019 107-India Still Not Flat

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IndiaIndia Still NotStill Not FlatFlat


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Globalization and IndiaGlobalization and India

Thomas Freidman hasThomas Freidman hasasserted thatasserted that globalizationglobalizationhas made the worldhas made the world flatflat asas

evidenced by the growingevidenced by the growingservice sector within India.service sector within India.

This also implies thatThis also implies that IndiaIndia isis

flat.flat.Reality on the ground mayReality on the ground may

differ.differ.


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Populations impactPopulations impactCurrently the worlds 2Currently the worlds 2ndnd

largest country withlargest country with1,121,800,0001,121,800,000 people in midpeople in mid2006.2006.

1.7%1.7% natural increasenatural increase

20252025 approachingapproaching 1.41.4

billionbillionWill surpassWill surpass ChinaChina byby 20322032

70 million have moved to the70 million have moved to the

cities between 1991cities between 1991--20012001


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70% Rural70% Rural600,000 villages600,000 villages


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Poverty AboundsPoverty Abounds


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Open sewage and toiletOpen sewage and toilet


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By the NumbersBy the NumbersPer Capita GDPPer Capita GDP -- $3600$360060% agricultural/ but only60% agricultural/ but only

20% ofGDP.20% ofGDP.

100 million farmers own NO100 million farmers own NOland.land.Approximately 80% of allApproximately 80% of all

Indians live on the equivalentIndians live on the equivalent

of less thanof less than$2 a day$2 a day..


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InformationInformation

Technologys ImpactTechnologys ImpactIndia produces about 100,000India produces about 100,000

new engineers a year. About 3new engineers a year. About 3times the number of the U.S.times the number of the U.S.

But stillBut still only 1.6 million peopleonly 1.6 million peopleare employed in IT and Serviceare employed in IT and ServiceCenter jobs.Center jobs.

Key centers include Bangalore,Key centers include Bangalore,New Delhi, Gurgaon, andNew Delhi, Gurgaon, andHyderabad.Hyderabad.


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U.S. companies in IndiaU.S. companies in IndiaIT ServicesIT Services--design,design,

support, and or productionsupport, and or production

Adobe, Cisco Systems,Adobe, Cisco Systems,D

ell,G

oogle, HewlettD

ell,G

oogle, Hewlett--Packard, General Motors,Packard, General Motors,IBM, Intel, Microsoft,IBM, Intel, Microsoft,

Motorola, TexasMotorola, TexasInstruments, YahooInstruments, Yahoo


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Indian IT and ServiceIndian IT and ServiceDevelopmentDevelopment

IT giantsIT giants

InfosysInfosys

WiproWipro

TATA Consulting and FinancialTATA Consulting and Financial

Also TATA MotorsAlso TATA Motors

ConvergysConvergysWorlds largest call centerWorlds largest call center

companycompany


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Brain DrainBrain Drain Young talent leaving India seems toYoung talent leaving India seems to

bebe slowing downslowing down..

Average starting salary for an ITAverage starting salary for an ITengineer in India today isengineer in India today is

approximatelyapproximately $10$10--12,00012,000.. Many are graduates of the IndianMany are graduates of the Indian

Institute of TechnologyInstitute of Technology

Several campuses locatedSeveral campuses located

throughout the countrythroughout the country This salary provides a comfortableThis salary provides a comfortable

lifestyle in modern India for thelifestyle in modern India for theprivileged few.privileged few.


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Disparate TaxationDisparate TaxationO

nly 35 million people payO

nly 35 million people payincome tax to the federalincome tax to the federalgovernment.government.

Formal SectorFormal Sector

Over 1 billion pay NO federalOver 1 billion pay NO federaltaxes!taxes!

Informal SectorInformal Sector

Largely agricultural orLargely agricultural orvillage basedvillage based


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Growing Middle ClassGrowing Middle Class

Over 200 million people falling into aOver 200 million people falling into agrowing middle class of consumers.growing middle class of consumers.

Technically defined as those earningTechnically defined as those earning

between $4000between $4000--$21,000 a year.$21,000 a year.This actually only accounts for 60 M.This actually only accounts for 60 M.

Middle classMiddle class--ness seems to includeness seems to include

those going from living on $5 a daythose going from living on $5 a dayto $10.to $10.


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Education is far fromEducation is far from

universaluniversalCompulsory and freeCompulsory and freeeducation (6education (6--14 yrs.)14 yrs.)

guaranteed with theguaranteed with the RightRightto Education Bill2005to Education Bill2005

Virtually unVirtually un--enforceable.enforceable.

Literacy rate of IndiaLiteracy rate of Indiastands at 59%stands at 59%


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Realitys impactRealitys impactEconomicEconomic

conditionsconditionsnecessitatenecessitate

children aschildren asday workersday workersin cottagein cottageindustries orindustries orininagricultural.agricultural.


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MidMid--day in Delhiday in Delhi


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Cultural bias reigns supremeCultural bias reigns supreme

O

ther Backward Caste law toO

ther Backward Caste law toincrease quota up to 27%increase quota up to 27%(currently 22%) of students in(currently 22%) of students ingovernment higher educationgovernment higher education

was recently put on hold.was recently put on hold. March 2007March 2007

Higher caste are increasinglyHigher caste are increasinglyhaving to share power as OBCshaving to share power as OBCs

make up nearly 50% of themake up nearly 50% of thepopulation.population.


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Private schoolsPrivate schoolsare very costlyare very costly

and for theand for themost partmost partexclusive.exclusive.

Rural villagesRural villagesdepend ondepend onuntraineduntrained

teachers andteachers andNGOs for help.NGOs for help.


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Conditions in theConditions in therural villagerural village

schools areschools areusually far lessusually far less

modern andmodern andfundedfunded..


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Lacking InfrastructureLacking InfrastructureMajor cities are not connected at thisMajor cities are not connected at this

point by a highway system.point by a highway system.

Golden Quadrilateral Highway ProjectGolden Quadrilateral Highway Projectwill eventually connect New Delhiwill eventually connect New Delhi--

MumbaiMumbai--BangaloreBangalore--ChennaiChennai--Kolkata.Kolkata.-- $12 billion$12 billion

Currently only 3,700 miles ofCurrently only 3,700 miles of

highways!!!highways!!!40% of farm produce goes to waste40% of farm produce goes to waste

as a result of poor transportationas a result of poor transportation


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Scheduled ImprovementsScheduled Improvements

New $430 million BangaloreNew $430 million BangaloreInternational Airport to beInternational Airport to becompleted by April 2008.completed by April 2008.(European built and operated)(European built and operated)

Roads to the airport areRoads to the airport areuncertainuncertain

Vallapardam Ship Terminal inVallapardam Ship Terminal in

Kochi (southwest coast ofKochi (southwest coast ofKerala) to be completed byKerala) to be completed byDubais DP World at a cost ofDubais DP World at a cost of

$555 million$555 million


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The Caste SystemThe Caste System I

ndias source of strength and tragicIndias source of strength and tragicweakness!weakness!

Though outlawed in the constitution;Though outlawed in the constitution;it remains a strong force controllingit remains a strong force controllingupward mobility.upward mobility.

Changing laws is easier thanChanging laws is easier thanchanging minds.changing minds.

Compare it to the Civil rightsCompare it to the Civil rightsmovement in the United States.movement in the United States.


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Yet Hope Springs Eternal!Yet Hope Springs Eternal!

Indias people is in fact herIndias people is in fact hergreatest asset.greatest asset.

An optimistic attitude seemsAn optimistic attitude seems

to exist within this country.to exist within this country.Indias ability to function as aIndias ability to function as a

democracy despite itsdemocracy despite its

massive population, culturalmassive population, culturaland religious diversityand religious diversityprovides hope.provides hope.


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To flatten?To flatten? Provide universally enforced qualityProvide universally enforced quality

elementary and secondary education.elementary and secondary education. Continue to slow the brain drain.Continue to slow the brain drain.

Improve the quality of itsImprove the quality of itsinfrastructure such as roads, waterinfrastructure such as roads, water

treatment and sewage, ports,treatment and sewage, ports,railroads and airports.railroads and airports.

Improve energy reliability.Improve energy reliability.

Continue to provide tax incentives toContinue to provide tax incentives to

encourage foreign investmentencourage foreign investmentincluding manufacturing.including manufacturing.

Maintain peaceful political posture, inMaintain peaceful political posture, inparticular with Pakistan.particular with Pakistan.


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SourcesSources In Spite of the Gods: The Strange Rise ofIn Spite of the Gods: The Strange Rise of

Modern IndiaModern India by Edward Luceby Edward Luce The Worldis Flat: A Brief History of theThe Worldis Flat: A Brief History of the

TwentyTwenty--First CenturyFirst Centuryby Thomas L.by Thomas L.FriedmanFriedman

PlanetIndiaPlanetIndia by Mira Kamdarby Mira Kamdar

The Trouble with India,The Trouble with India, BusinessBusiness WeekWeek,,3/19/073/19/07

www.prb.orgwww.prb.org www.countrywatch.comwww.countrywatch.com

www.forbes.comwww.forbes.com Trip to IndiaTrip to India World Affairs Council ofWorld Affairs Council of

Houston (March 10Houston (March 10--20, 2007)20, 2007) Prepared by Jeff CherryPrepared by Jeff Cherry

107-india still not flat

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