Trade in India

Question 1

Why did India take a long time to start growing economically?

Answer 1

There was excessive bureaucracy which caused very slow economic growth. There was a traditional emphasis on home-grown industrialisation and self-sufficiency.

Question 2

What annual growth has India sustained since 1991?

Answer 2

7%

Question 3

What sector has caused India’s huge economic growth?

Answer 3

The service sector.

Question 4

What has happened to primary secondary and tertiary sectors in India since 1980?

Answer 4

Primary from 42% - 15.5%
Secondary from 20%- 23%
Tertiary from 38% - 61.5%

Question 5

What is outsourcing?

Answer 5

The practice of hiring an external organisation to perform some business functions such as IT provision or accounting.

Question 6

What is offshoring?

Answer 6

Where outsourcing takes place in a country other than the one where the products or services are developed or manufactured.

Question 7

What is happening to the amount of multinational companies (MNCs) emerging from EDC’s?

Answer 7

More are coming from EDC’s, especially the BRICS nations. 40 of the top 500 MNCs came from EDCs in 2007 but it rose to 122 in 2014.

Question 8

What is south south trade?

Answer 8

Trade amongst developing countries.

Question 9

How much of India’s trade was taken up by south-south trade in 2013?

Answer 9

60%

Question 10

Why has south-south trade been growing?

Answer 10

Rising demand for raw materials in China and India. Growing consumer market in Asia and Latin America. Increasing demand from growing middle class of Brazil, China and India. Growth of trading blocs. Growth of FDI into developing countries.

Question 11

Why is Karnataka India’s silicon valley?

Answer 11

Had first engineering colleges. Frist technology university, introduced state wide policy to promote IT industry with grants and tax incentives. has software technology parks and has the best telecom infrastructure in the country.

Question 12

How many people does offshoring employ in India and how much money does it generate?

Answer 12

Over 4 million and 57 billion dollars a year.

Question 13

Who is India’s main trade partner and how much do they import and export to eachother?

Answer 13

China, India exports $18.8 billion to China and gives $27 million in FDI. India Imports $47.8 billion and gives $25 million in FDI.

Question 14

Why does India have significant influence in global, socio-economic political affairs.

Answer 14

It is seen as the largest democracy in the world and is a member of the G20.

Question 15

Outline the relationship between India and the UK.

Answer 15

They have strong business links, have agreed to collaborate on issues such as finance, defence, nuclear power and climate change. Have a strong social relationship due to UK’s high Indian population.

Question 16

How has India’s HDI changed between 2000-2013?

Answer 16

from 0.483 in 2000 to 0.586

Question 17

What has happened to the GINI coefficient in India in the last 7 years?

Answer 17

Decreased from 36.8 to 33.6

Question 18

What did the 1991 IMF loan force India to do?

Answer 18

Devalue currency, economic reform, import FDI, Deregulate industry, tax reform, reduction on import and export duty.

Question 19

How many people does India employ in IT outsourcing?

Answer 19

10 million

Question 20

What city is India’s main IT city and how much industry does it have in it?

Answer 20

Bangalore, 40% of the countries IT industry, over 500 companies and $85 billion exports annually

Question 21

What industries have MNC’s been allowing to develop in developing countries?

Answer 21

Telecommunications, financial services, food processing, infrastructure

Question 22

What happened to the growth of merchandise exports globally in 2013 as opposed to services?

Answer 22

Merchandise grew by 2% and commercial services grew by 6%

Question 23

What It advantages does India have over other countries in the world?

Answer 23

It is the second largest human speaking country. Has investment friendly govt policy, adaptable to new tech, good infrastructure, 2.5 million tech professionals, third most in the world, stable democracy, large market with middle class population growing, tax incentives.

Question 24

What offshoring services does India provide?

Answer 24

back office functions, such as Data processing, payroll and customer call centres. Has expanded into medical transcription, diagnosis and decisions on surgical intervention. Legal firms are offshoring as are high skilled operations like computerised design, software design, product development and marketing.

Question 25

What are India’s main merchandise exports?

Answer 25

Refined petroleum, engineering goods, chemicals, pharmaceuticals, gems, jewellery, agricultural products, clothing.

Question 26

Who are India’s main export partners?

Answer 26

The EU, USA, UAE, China and Singapore.

Question 27

Who are India’s main import partners?

Answer 27

China, EU, Saudi Arabia, UAE, Switzerland

Question 28

What previous conflicts have calmed down between China and India?

Answer 28

Border conflict, environmental issues such as water supply, deforestation and land degradation, have been the beginnings of flood warning management.

Question 29

What government policies have caused India to have a greater world share of trade?

Answer 29

Open market economy with privatisation of state owned companies, trade liberalisation, growth of inward and outward FDI, investment in education, investment in infrastructure, development of global trade agreements.

Question 30

What are India’s main imports?

Answer 30

Crude oil, gold, silver, machinery, electricals.

Question 31

Why is karnataka and Bangalore the silicon valley of India?

Answer 31

First state to have engineering colleges, first tech univerosty, tax incentives to promote IT, best telecom infrastructrue in country.