Economic Development - India Flashcards
What type of economy is India?
Newly Emerging Economy
What’s India’s population like?
2nd largest population in the world & still growing
Give some history about India
Was British colony until 1947 = now has own democratically elected government
What is the development like in India?
Medium level of development (HDI = 0.61)
- Some people = very wealthy
- But majority poor & over 20% of population live in poverty
- Education is improving
- But adult literacy rate is still less than 70%
Name 3 facts about India’s primary industry
- Employs 50% of working population
- Becoming smaller part of India’s economy
- Makes up only 17% of its GDP
Name 3 facts about India’s secondary industry
- Employ 22% workforce
- Provide people with reliable jobs (compared to seasonal agricultural work)
- Selling manufactured goods overseas = more income than selling raw materials
Name 3 facts about India’s tertiary and quaternary industry
- Employs 29% of workforce
- Contribute 53% to India’s GDP
Why has India’s tertiary and quaternary industry become much larger part of the economy? (2 reasons)
Due to growth in IT firms & supplying services for foreign companies
Give an example of a TNC in India and a fact about it
Unilever
1 of world’s biggest food and consumer goods manufacturers
Name 4 advantages of TNCs in India
- Provide employment
- More companies = greater income from tax
- Some TNCs run programs to help development in India
- Unilever works with charities
How many people do Unilever employ?
16,000 people
Describe one of Unilever’s programs to help development in India
Unilever’s Project Shakti
- Helps poor women in rural villages to become entrepreneurs
- By providing loans
- products for them to sell in places that Unilever would struggle to supply
- 45,000 women in this scheme
Explain how Unilever works with charities
- Help run hygiene education programs
- Provide sanitation to 115 million people
- Improves health (& increase sales)
What is Hindustan Unilever annual sales?
$4.5 billion+
Name 3 disadvanatges of TNCs in India
- Some profits from TNCs leave India (Unilever = Dutch-British company)
- TNCs move around India to exploit local government incentives
- TNCs cause environmental problems
Give an example of TNC causing environmental problems
- Mercury-contaminated glass from Unilever factor (in Kodaikanal) = ended up in waste dump instead of being safely disposed
- Mercury = environmental damage + healthy problems (e.g. brain damage)
What did Unilever do about the mercury incident and what were people’s responses?
- Unilever did remove waste and dispose it & monitors area/those affected
- But environmental + public interest groups = unhappy
Give an example of a TNC moving around India to exploit local government incentives
Unilever closed factories in Dharwad and Mumbai once located tax breaks ended
Describe India’s changing relationship with the wider world in recent years
Government has improved relations with its immediate neighbours & global trading partners
Explain how international trade is growing in India (3x)
- India reducing barriers to trade & encouraging FDI
- Trade with foreign businesses (especially companies in large service sector doing office jobs) is increasing
- India working with its neighbours to build TAPI pipeline to carry natural gas from Turkmenistan through Afghanistan and Pakistan to India
Name 4 types of aid India receives
- Short-term Aid
- Long-term Aid
- ‘Top-down’ Aid
- ‘Bottom-up’ Aid
What is short-term aid?
- Intended to help recipient countries cope with emergencies
- Can come from foreign governments or NGOs
Give an example of short-term aid in India
e.g.
- UK sent £10m, rescue team & 1200 tents after earthquake in 2001
- NGOs like Oxfam provided supplies & temporary buildings
What does the short-term aid help with?
Helps with immediate disaster relief
What doesn’t the short-term aid help with?
Not able to help longer-term recovery efforts
What is long-term aid?
Intended to help recipient countries funded to become more developed
Give an example of long-term aid in India
Until 2015, India received £200m+ each year from UK to tackle poverty
What is the downside of long-term aid in India
Impact can vary
India has problems with corruption and aid does not always reach poorest people
What is ‘Top-down’ Aid?
When organisation or government revives aid & decides where it should be spent
What is ‘Top-down’ Aid often used for?
Large infrastructure projects e.g. dams for hydroelectric power or irrigation schemes
What can ‘Top-down’ Aid help improve?
The economy
What is the downside of ‘Top-down’ Aid?
May not improve quality of life of poorest people
What is ‘Bottom-up’ Aid?
Money given direct to local people
e.g. to build or maintain well
Give an example of ‘Bottom-up’ Aid in India
WaterAid trains local people to maintain village handpumps in rural India
What is the benefit of ‘Bottom-up’ Aid?
Can have large impact
Schemes generally supported by local people & can improve health, skills and income
Name 2 positive impacts economic development in India has on the quality of life
- More jobs
- India’s daily wages have increased by 42 Rupees since 2010
- People have more money to improve their life
- e.g. access to clean water, higher quality home and medical care
- People have more money to improve their life
Name a negative impact economic development in India has on the quality of life
- But some jobs in industry e.g. coal mining = dangerous or have poor conditions
- Which reduce workers’ quality of life
Name 2 negative impacts economic development in India has on the environment
- Energy consumption increased with economic development ∵ coal and oil = the most readily available and affordable fuels
- Release lots of pollution & greenhouse gases
- Demand for resources = lead to destruction of habitats
Give an example of how increased energy consumption affects the environment in India
Capital, Delhi = most polluted city in world
Give an example of demand for resources leading to destruction of habitats in India
e.g. Mining in Karnataka
Name a postive impact economic development in India has on the environment
Increased income from economy development = people can afford to protect environment
Give an example of the environment being protected in India
Since 1990, India’s forest cover = stopped decreasing & started to grow
