Some NEEs are Experiencing Rapid Economic Development Case: India

Question 1

India’s Regional and Global Location and Importance

Answer 1

• India’s urban population is growing fast (projected to increase by 300 million by 2050).
• The percentage of GDP from the service sector has risen from 33.25% in 1950-1 as more people are employed in tertiary (service) jobs (e.g. the growth of IT firms, especially in Bangalore, has resulted in a dramatic increase of jobs in customer service centres).
• India has the second largest population in the world.
• India’s economy is the second fastest growing economy in the world (after China). Experts believe that it will overtake China’s economy in the next five years.
• The percentage of GDP from industry has increased from 14.1% in 1950-1, as manufacturing becomes more important to the country’s economy.
• Huge inequality between the rich and the poor with just 1% of the population owning 58% of India’s wealth.
• India’s population is growing so fast that in 5 years it will become the most populated country in the world.
• India is in the ‘medium human development’ category, and is 131st in a list of 188 countries.
The percentage of GDP from agriculture has declined from 51.8% in 1950-1, as other industries became more successful.

Question 2

Political, Social and Cultural Context

Answer 2

• India was a British colony until 1947 when it gained a democratically-elected government.
• India has recently improved its political links with its neighbouring countries.
• India has a strong legal system and many English-language speakers; this has attracted inward investment from foreign businesses.
• India has a fast-growing population of working age. There are 700 million Indians under the age of 35. Many are forward-thinking and looking to break from their cultural roots.
• Wage costs are low in India.
• India’s economy has successfully developed highly advanced clusters of IT businesses e.g. Bangalore is a hub for global software businesses.

Question 3

Environmental Context

Answer 3

The rapid growth of urban populations has resulted in many environmental problems in India.

Question 4

Air pollution

Answer 4

The World Health Organization has ranked Delhi’s air quality the worst in the world. The air pollution in India’s capital kills around 1.5 million people each year. The Indian government has yet to take substantial action to reduce the problem.

Question 5

Water pollution

Answer 5

The major polluting industry along the Ganges is the leather industry from which Chromium and other chemicals leak into the river. Another issue is sewage, with almost 1 billion litres of mostly untreated raw sewage that enters the river every day.