India

Question 1

What % of the population are engaged in the private sector?

Answer 1

75%

Question 2

What % of GDP does the private sector account for?

Answer 2

25%

Question 3

What causes high degree of rural poverty?

Answer 3

Majority of landholdings are farmed at subsistence level

Question 4

In 1999 what % of people lived on less than $1 a day?

Answer 4

42%

Question 5

What has limited rapid expansion in India?

Answer 5

Low level of FDI

Question 6

What has the transformation of the Indian economy been led by?

Answer 6

Service sector

Question 7

What does India have a large number of?

Answer 7

Highly qualified professionals who skills are in demand in other countries

Question 8

What has demand and supply of workers been united by?

Answer 8

Telecommunications and worker migration

Question 9

In 1999 what was a milestone in India’s economic progress?

Answer 9

Infosys Technologies (a software exporter) became the first Indian company to list on a US stock market

Question 10

In 1999 what did IT sectors market capitalisation reach?

Answer 10

Exceeded 1,000 billion, highest valuation ever placed on an Indian industry

Question 11

In 2000 what % of GDP did services account for?

Answer 11

47%

Question 12

What has the filter down of employment to India been dominated by?

Answer 12

Links with North America and Europe with relatively low level of involvement from Japan and the other dynamic Asian economies

Question 13

In the decades after 1947 independence what policy did India follow?

Answer 13

Policy of import subsitution which led to the development of a broad industrial base

Question 14

What is import substitution?

Answer 14

Manufacturing its own products rather than importing from other countries

Question 15

What did the lack of foreign competition result in?

Answer 15

Contributed to poor product quality and inefficiencies in production.

Question 16

How were Indian manufactured products viewed?

Answer 16

Viewed as poor quality in the domestic market and for the same reason made little impact abroad

Question 17

In the early stages of economic reform how could foreign companies enter manufacturing sector?

Answer 17

Through joint ventures meaning that India’s 15,000 joint ventures were formed for regulatory purposes rather than strategic ones

Question 18

Since 1999 how has foreign investment changed?

Answer 18

100% foreign ownership has been allowed in many industrial sectors

Question 19

What is India’s most successful joint venture and what did they do?

Answer 19

Hero Honda, which has a 26% stake in the company announced in 1999 that it had secured permission to set up a 100% owned subsidiary

Question 20

What has become the focal point for the car industry?

Answer 20

Madras

Question 21

Since 1991 how has the number of car manufacturers in India increased?

Answer 21

Increased from 3 (190,000 vehicles) to 10 (500,000 vehicles) in 2000

Question 22

What do the western states of Gujarat and Maharastra attract?

Answer 22

Attract about 1/4 of all new investment, both domestic and foreign, into the Indian economy

Question 23

What did India commission in 1999?

Answer 23

World’s largest integrated oil refinery - 27 million tonnes per anumn

Question 24

How much revenue did FDI produce in 2000?

Answer 24

$2 billion

Question 25

By 2005 how does the government hoped to have increased FDI?

Answer 25

$10 billion a year

Question 26

How have revenues from Indian software exports grown?

Answer 26

Grown from less than $1 billion in 1996 to $4 billion in 2000

Question 27

By 2008 what % of GDP will software exports account for?

Answer 27

7%

Question 28

What has India’s IT sector benefitted from?

Answer 28

Filter down of business from the developed world

Question 29

3 reasons why outsourcing occurs in India

Answer 29

Labour costs are lower
Number of developed countries have significant ICT skills shortages
50 million fluent English speakers in India

Question 30

In 1999 what did India establish?

Answer 30

Ministry of IT - main task is to increase software and ICT services revenue for the country

Question 31

Where has emerged as the centres of India’s IT industry?

Answer 31

Bangalore
Hyderabad
Madras
Pune
Dehli

Question 32

What happened to the company Texas Instruments in 2000?

Answer 32

Half of a dozen of its top Indian engineers left the company strike out on their own

Question 33

What did a recent survey by the National Association of Software and Services companies show?

Answer 33

Demand for IT professionals is expected to rise from 340,000 in 2000 to 800,000 by 2005 - possible manpower shortages

Question 34

What did the company Cisco pledge to the Indian government?

Answer 34

Pledged $10 million to set up 30 ‘networking academies’ across the country in order to avoid the impacts of a ‘brain drain’

Question 35

What does NASSCOM estimate?

Answer 35

India will employ 1.1 million people and earn $17 billion from IT enabled services by 2008

Question 36

What are the 2 sections of India’s back office industry?

Answer 36

Captive operations of large western companies seeking to cut back office costs without outsourcing

Shorter term contracts between western companies and subcontractors in India, often booked by middlemen

Question 37

What is a worrying effect of national growth?

Answer 37

Increase in the development gap between north and south - known as regional diversity

Question 38

Where is most investment flowing?

Answer 38

Flowing southwards into a v-shaped region from Gujarat in the west to Andrah Pradesh in the east

Question 39

What models do the growth of Indian economy follow?

Answer 39

Models of regional development constructed by Gunnar Myrdal 1957 and Albert Hirschman 1958 - explain that in the early stages of economic development the wealth gap between core and peripheral regions widens