INDIA Country Facts by Murali Konchada International Business Fall 2002 GGU

INDIA Introduction Introduction Geography Geography Country Facts Country Facts Culture Culture History History Resources Resources Economic Profile Economic Profile Software Industry Software Industry FDI & Business Environment FDI & Business Environment The Future The Future Gateway of India

Country Facts INDIA AreaOne third of USA Home of 16 per cent of world’s population Climate :Hot tropical weather with variations from region to region CapitalNew Delhi Population (2002 est.): 1,045,845,226 Major RiversIndus Ganga Yamuna Brahmaputra Godavari Narmada Kaveri Meenakshi Temple at Tamil Nadu which has a hall of 1000 pillars

Country Facts cont… Religions Hindu82.8% Islam11.3% Christian2.4% Sikh2.0% Buddhists0.71% Largest Cities Mumbai Kolkata Chennai Hyderabad Bangalore Infosys’s (India’s No1 Software development Company) one of the Development Centers

Country Facts cont… Population Details… Population growth rate 1.51% Birth rate23.8 per 1000 population Infant Mortality rate 61.5 per 1000 population Literacy rate65.38% in 2001 Languages Hindi (official) English (official) Bengali Gujarati Kannada Kashmiri Malayalam Marathi Oriya Panjabi Tamil Telugu Urdu Sindhi Sanskrit Marine Drive Mumbai

Culture Culture has been defined in numerous ways and the one accepted by majority of modern scientists defines it as `that complex whole which includes knowledge, belief, art, morals, law, custom and any other capabilities and habits acquired by man as a member of the society. Sardar Panikkar identifies what he calls, `Outstanding Facts of Indian Culture'. These are: 1) Tradition of tolerance, adding to the richness and variety of Indian life 2) Sense of synthesis reflected in racial harmony, the primary institutions of the village and the family, sculpture, architecture, music and painting, modes of worship, faith in democratic institutions etc. 3) Universal outlook as reflected in views such as `The world is one family, `the world is one nest' 4) Philosophical outlook with its basis in the belief in the unity of creation. 5) Respect for the individual based on the philosophical equation of the soul and the Oversoul. Odissi Dance

History & Government Nonviolent struggle for Independence under the leadership of Mohandas Karamchand Gandhi ( ) Jawaharlal Nehru ( ), 1947 India gained Independence from Britain Largest secular parliamentarian democracy of the world st Prime Minister Jawaharlal Nehru PM Indira Gandhi was killed by two Sikhs in her bodyguard PM Rajiv Gandhi was killed by a suicide bomber PM P.V. Narasimha Rao brought many industries (especially computer and high-tech) PM Deve Gowda 1998-till date Shri Vajpayee is Prime Minister Since independence, India and Pakistan have fought three wars over “Kashmir” Sept 16, 2002 Elections were conducted in J&K

Shazahan built Taj Mahal in memory of his wife Mumtaj mahal

Mysore Palace

Resources Natural Resources: Coal (fourth-largest reserves in the world), iron ore, manganese, mica, bauxite, titanium ore, chromite, natural gas, diamonds, petroleum, limestone, arable land Gold, silver, and diamonds make up a small part of other natural resources available in India Arable Land: 54% permanent crops: 1% permanent pastures: 4% forests and woodland: 23% other: 16% (1993 est.) Irrigated land: 480,000 sq km (1993 est.)

Economic Profile Economy GDP$2.5 trillion (2001 est.) GDP - real growth rate 5% (2001 est.) GDP - per capita$2,500 (2001 est.) Inflation rate3.5% (2000 est.) Labor force4.6 million (1999) Agriculture – 67% Services – 18% Industry – 15% Unemployment rate4.4% (1999) Industrial production growth rate 4.3% (2001 est.) Worli Sea face Mumbai

Economic Profile …. Imports and Exports IndustriesTextiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery Agricultural productsRice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes; cattle, water buffalo, sheep, goats, poultry; fish Exports$44.5 billion (f.o.b., 2001) Export CommoditiesTextile goods, gems and jewelry, engineering goods, chemicals, leather manufactures Export partnersUS 22.8%, Hong Kong 5.8%, Japan 5.3%, UK 5.3%, Germany 4.6% (2000) Imports$53.8 billion (f.o.b., 2001) Import CommoditiesCrude oil, machinery, gems, fertilizer, chemicals Import partnersBenelux 8.5%, US 8%, UK 6.2%, Japan 5.7%, Saudi Arabia 4.6% (2000) Economic aid received$2.9 billion (FY98/99) CurrencyIndian Rupee; $1 = Rs (Jan 2002)

Software Industry Indian IT Software and Services Industry (Figures in US$ Billion) India is best positioned for cross border IT services Indian software industry is expected to gross $87 billion in 2008, with $50 billion coming from exports!

FDI  India welcomes foreign investment in virtually all sectors except defense, railway transport and atomic energy  India has formulated a sectoral FDI policy Key Sectors for FDI Bio-TechnologyCivil Aviation Electronics and Information Technology Entertainment Industry Food ProcessingInsurance Banking and Financial Markets PortsPower RoadsTelecommunications Drugs and PharmaceuticalsE-Business PortsPower MiningUrban Infrastructure Housing Tourism

FDI cont…  FDI Inflows cross US$ 4 Billion in  India's most valuable resource, its technologically capable English- speaking workforce, can position India as the services hub of the world.  One of the best examples is GE which was able to cut costs by outsourcing to India.  Banks, insurance companies and mutual funds can save money by shifting their back-office work to India.

NEWS  Wipro-Microsoft combine can take on IBM: Bill Gates  India can be manufacturing hub too, says Gates Microsoft chairman and chief software architect Bill Gates commended India to turn into a manufacturing hub as it had the required skills, low-cost labor, good sense of technology, and advanced software expertise