Virtual Reality Baloon and Inflated Indian Economy of Ethnic Exclusive Cleansing Economy All Set to be Blasted OFF as Ohio has banned outsourcing of government IT and back-office projects to offshore locations such as India, raising fears of similar moves by other American states struggling to cope with high unemployment rates!

Ohio outsourcing ban is discriminatory & trade barrier: India Inc

UID has inbuilt security and privacy component

Indian Holocaust My Father`s Life and Time - Four Hundred SEVENTY SEVEN

Palash Biswas

http://indianholocaustmyfatherslifeandtime.blogspot.com/

The Indian IT sector, which gets 60 per cent of its export revenue from the US, today said the move by the state of Ohio to ban outsourcing by government departments to offshore locations like India is discriminatory and amounts to a trade barrier.

Through an executive order last month, Ohio Governor Ted Strickland prohibited the expenditure of public funds for services provided offshore.

The US state of Ohio has banned outsourcing of government IT and back-office projects to offshore locations such as India, raising fears of similar moves by other American states struggling to cope with high unemployment rates.I am afraid that in view of the growing Unemployment rate and JOBLOSS in United States of America, other states would Follow suit. The Governemt of India has Killed Natural Livelihood and Natur Associated Production system,inclusive of UNSKILLED Illiterate Labour localised, specifically Agriculture to boost IT based Economy. Indian Economic growth is hyped so much so that Growth in Agriculture is reduced al low as 2.5. IT has also killed Higher Education and Research in India. Indian Education is now all about Vocational education dependent on Information Technology and the Generation next is indulged in Three Four Five G Spectrum Virtual reality which is Synonymous to INFLATED ECONOMY as well as Shining Nuclear Zionsit Brahaminical India.

The move comes ahead of the impending visit of US President Barack Obama to India in November.It also follows a controversial legislation (border security law) increasing H-1B and L1 visa fees, hitting India's over USD 50 billion IT industry.

The Indian industry will take up the issue with its US counterparts and seek government support to flag it with the American authorities.

"Nasscom is leading a delegation to the US later this month and will be taking this up with relevant officials in the US," the apex body of the IT and ITES industry said here.

Nasscom said it would also seek support from Commerce and Industry Minister Anand Sharma, who is visiting the US later this month. Sharma is likely to take up the matter with the US Trade Representative and other senior officials.

It said since international trade is a federal subject in the US, Nasscom is studying the legality of such an order by a state government.

"Ohio's ban on outsourcing can only be viewed as counter -productive to the US government thrust on reducing public deficit... It only reinforces our stand on discrimination," it said.

Nasscom said it would not be surprised if more such "electoral rhetoric" follows in the run-up to the November elections to the US Congress and Ohio Governorship.

Infosys Technologies, the country's second largest software exporter, said, "We are concerned... about banning offshore outsourcing by Ohio State government departments."

Ganesh Natarajan, the chairman of the CII national committee on IT and the CEO of Zensar Technologies, said that while the Ohio development would not have much of a financial impact on IT firms, the issue would be taken up with the US trade mission visiting India this month. Indian IT firms earn most of their revenue from the private sector in the US.

Despite these irritants, the US would remain the major market for Indian IT firms, he said.

Assocham said the Ohio ban amounts to a trade barrier and the move would be against the US's interest.

However, the stock market shrugged off the developments, with shares of TCS, Infosys and Wipro moving up today.

Infosys, the country's second largest software company, on Wednesday expressed concern over the Ohio state government's move to ban IT outsourcing to offshore locations such as India [ Images ].

Infosys [ Get Quote ] CEO and Managing Director Kris Gopalakrishnan said, "We are concerned about the recent news from US about banning offshore outsourcing by Ohio State government departments.

"Infosys' initiative in the Public Services sector is focused on creating a domestic delivery center in the US hence this should not be affected."

India Inc.

From Wikipedia, the free encyclopedia

                    Jump to: navigation,                     search

India Inc. is a common term used by the Indian media to refer to the corporate sector of the nation.
The Companies Act 1956 allows a variety of formations in the mixed economy of India.. The Ministry of Company Affairs estimates that as of 31 October 2005, there were 712,800 companies registered in India (excluding foreign companies) as detailed below:

Category	Non-government	Government	Total
Private companies limited by shares	628,957	612	629,569
Public companies limited by shares	78,473	724	79,197
Companies limited by guarantee	3,530	7	3,537
Companies with unlimited liability			497

[edit] See also

[edit] External links

India Inc. The official RuneScape clan for India recognised by Jagex Ltd.

India Inc.: Aiming Higher by Susan Kitchens (forbes.com)
India Inc., Still Going Strong by Jaikumar Vijayan (computerworld.com)

India Inc. arrives overseas by Vipul Mudgal for HT Research (HindustanTimes.com)

*	This article related or pertaining to the economy of India is a stub. You can help Wikipedia by expanding it. v • d • e

Retrieved from "http://en.wikipedia.org/wiki/India_Inc."

Categories: Economy of India | Indian economics and finance stubs
7 Sep, 2010, 02.33PM IST,PTI

UID has inbuilt security and privacy component

Anti-outsourcing in US, a 'worrying trend'

Times Now.tv - ‎7 hours ago‎
The Indian Information Technology (IT) industry has criticised the move by Ohio state in the US to ban outsourcing. In a major blow for Indian IT companies ...

Indian IT's concern: Will rest of US follow Ohio's footsteps?

Siliconindia.com - ‎3 hours ago‎
... In the wake of Ohio banning outsourcing of government IT and back-office projects to offshore locations such as India, the Indian Information Technology ...

Nasscom issues statement on US state Ohio's decision to ban outsourcing

InformationWeek India - ‎3 hours ago‎
Globally governments are beginning to see the benefits that can be reaped out of employing Information Technology in public services. India too is opening ...

In an effort to cope with the fast growing unemployment rates, the U.S. state of Ohio has banned outsourcing of government IT and back-office projects to offshore locations such as India. This in turn has raised fears of similar moves by other states as they feel this can bring in more jobs to the local youths, reports N Shivapriya & Harsimran Julka from Economic Times.

"There are pervasive service delivery problems with offshore providers, including dissatisfaction with the quality of their services and with the fact that services are being provided offshore," Ohio governor Ted Strickland said in an executive order passed last month.

The move is yet another blow to the Indian IT industry, which is facing higher visa costs and rising protests against outsourcing in other US states.

Offshoring work to India is a $50-billion industry, and the Indian tech industry has benefitted immensely from American firms wanting to take advantage of its low wages and top-quality skills. The industry employs about three million people across India and has largely been responsible for the sea change in the West's perception about the country.

Last month, the US Congress passed a controversial legislation increasing visa fees for funding the country's Mexico Border Security program. States such as Virginia are facing a massive backlash against outsourcing that could further affect the prospects of Indian IT firms.

Last week, the West Virginia Public Workers Union filed a lawsuit against proposed outsourcing of IT jobs by the state's office of technology.

Though Indian companies largely rely on private companies for the bulk of their business and orders from state governments are rare, that approach has slowly been changing.

TCS is the only Indian company to operate in Ohio. It employs 300 people and gets $19 million in tax credit for creating local jobs. India's second-biggest software exporter, Infosys, has already identified the government outsourcing market as the next big opportunity and established a focused - subsidiary Infosys Public Services, headed by Eric Paternoster - in June this year.

Rival Wipro also has a nine-year, $407-million outsourcing contract from Missouri for delivering healthcare services.

Ohio's move adds to the perception that outsourcing is risky and that it involves serious loss of jobs. Indian companies have been at pains to point out that offshoring work actually improves the health and efficiency of American companies and government departments.

They have also been making serious efforts to hire more Americans and keep much of the work stateside. But that does not seem to have helped. The latest curb could, if replicated by other states, mean increased hiring of local staff in the US for delivering services, affecting the profitability of Indian companies.

Such measures would also make Indian firms less attractive for awarding multi-billion-dollar government outsourcing contracts, experts and officials tracking the sector said.
However, the US state governments are increasingly pushing for legislations aimed at creating more local jobs, as they cope with high unemployment rates of almost 10%.

The Ohio order asks all government and government agency procurement contracts to incorporate standard language where service providers will have to disclose the locations where the services will be performed, including those by sub-contractors. In addition, they will have to disclose any shift in location and the principal location of all the contractors and sub-contractors.

Nasscom, on its part, said at a time when top American firms such as IBM and Accenture are gaining more business from the Indian government's IT spend, such measures by US states are discriminatory.

"The issue here is that when India doesn't discriminate between American and Indian firms when doling out billion-dollar e-governance contracts, US should also reciprocate. This is about services, but state governments in India do not discriminate too, when procuring products like IT hardware between Indian or American firms. It's setting a wrong trend, firstly with the visa issue and now this," said a Nasscom spokeswoman.

6 Sep, 2010, 06.46AM IST,ET Bureau

Indian IT funding cash-strapped client projects

BANGALORE: Indian software companies such as Infosys Technologies and Wipro are entering the unfamiliar area of vendor financing, at the urging of cash-strapped US customers, by using reserves accumulated over years to invest in so-called software platforms that run activities like payroll processing.

The country's $50-billion outsourcing industry has flourished for close to two decades by maintaining the IT systems of US companies at sharply lower costs by writing software application codes in India.

But as customers such as JPMorgan, Philips and Citibank attempt to cope with lower IT budgets by avoiding expensive licensed software, they are asking vendors to invest in building systems and to link payment to the number of transactions.

"We will have to bite the bullet now—if we wait, there may be no option left for us to have such conversations with customers later," said Subhash Dhar, Infosys' global head of sales and marketing and a member of the company's executive council.

"All said and done, if you look at balance sheets and profit and loss, ours look better than them. And by and large, if you look at all the industries, tech is looking pretty okay from all the way from chip to software companies, they are looking good, so why not?" added Mr Dhar, referring to the demands of customers that software companies invest their own money to build platforms or what the industry refers to as software solutions.

This sort of investment is different from traditional vendor financing because companies like Infosys are not offering credit to their customers.

Nonetheless, it is a distinct shift from selling software to users and, at least to some extent, is similar to that of companies like IBM, which bundle computer hardware, software and services together in large outsourcing contracts, according to a consultant.

"The IBM issue was really around freeing up cash during hard times, and the overall value to the company was getting cash while over the long term, IBM probably made a return on the financing they did for that specific customer," said Rodney Nelsestuen, senior research director at US-based TowerGroup.

Mr Nelsestuen, who consults with top vendors and customers about their new outsourcing strategies, said the Indians were doing it a little differently.

This (what Indian companies are doing) is different in that the value to the vendor is often recovered by both selling the service to that individual company and to others as well," he added.

The investments are not large, anywhere between $1 million and $10 million, depending upon the number of user licences to be bought and the extent to which the software has to be tweaked for individual users. Software for running routine functions such as payroll systems or to monitor attendance does not vary too much between companies.

"You are used to (building) training centres and large campuses and that is your investment capital expenditure. Now you have to make this new capex, which is a challenge, but the opportunity is you are going to hook the client," said Mr Dhar.

Indian vendors are buying licences from business software makers such as SAP and Oracle, and are developing a ready stack of solutions that can be offered on a pay-as-you-go basis. Going forward, these vendors can even rope in hardware makers such as IBM or HP and offer bundled solutions, thereby reducing capital expenditure for customers even more significantly.
12 Aug, 2010, 03.00AM IST, Pankaj Mishra,ET Bureau

Cognizant in sniffing distance of TCS, Infosys and Wipro

BANGALORE: Numbers tell the story better. At the end of June 2008, the gap between the quarterly revenue of Wipro and Cognizant was a striking $383 million. Wipro was way ahead in the technology business and Cognizant was just another emerging company.

In the three months ended June 2010, that gap has narrowed to a mere $99 million. Till now, Infosys, India's software bellwether, had only TCS to beat when it came to the size of the banking and financial services business.

Last week, however, Infosys executives watched in amazement as Cognizant notched up revenues of $470 million, perilously close to its own figure of $490 million. There is a reason why India's Big Three software firms are keeping a wary eye on the rear-view mirror. A new competitor is emerging. In the past few years, Cognizant has outpaced the country's top three tech firms — Tata Consultancy Services (TCS), Infosys Technologies and Wipro, quarter after quarter, forcing the companies to rethink their strategy and tweak their sales models.

In the quarter ended June, Cognizant grew its revenue sequentially by 15.2%. The Big Three struggled to get into double-digits with only TCS growing the fastest, by 6.4%. "We are definitely amazed and concerned," said a senior executive at one of the top three Indian tech firms. "Cognizant is doing what we did to IBM and Accenture many years ago — we need to watch our back more carefully," he added, requesting anonymity as he did not want to be quoted on Cognizant's strengths. For Wipro, the threat is real.

Not only has Cognizant narrowed the gap with the third-largest software exporter, but its earnings guidance of 36% for 2010/11 indicates a mindset determined to snatch market share. "Cognizant is increasingly becoming the talk point during every assessment we do — they seem to have tweaked our offshore model with much stronger front end and done some things better than us," admitted the sales head at one of the top five companies.

So, what's really behind Cognizant's growth? After the company decided to invest back any margin in excess of 20% into the business way back in 1998, Francisco D'- Souza who was Cognizant's CEO then, established what was called "two-in-a-box" structure.

For every customer account, Cognizant has a senior account manager onsite and a dedicated delivery head. Some 800 client facing professionals today form the company's "two-in-a-box" team, helped by the same number of staff in delivery locations such as India. This helps Cognizant focus on fewer customers such as JPMorgan Chase and UBS, and increase share of their outsourcing spend.

Wipro Infotech announces launches of FluidState Data Centres

Wipro Infotech, the India, Middle East and Africa, IT Business of Wipro Ltd and a leading provider of IT and business transformation services, Thursday announced the launch of its FluidState Data Centers targeted at small, medium and enterprise businesses.

Based on its model-driven engineering framework for next generation Data Centers called FluidState, the FluidState Data Center from Wipro is essentially a predesigned, prefabricated Data Center which can be setup in less than a week - almost 10 times faster than a conventional Data Center.

With technology powered by Cisco, HP, Hitachi and EMC,among others, the FluidState Data Center offers a contemporary modular design, optimized for efficiency, cooling, power and space, a release said.

Wipro has implemented FluidState Data Center for the Indian Institute of Management, Bangalore (IIMB).
14 Aug, 2010, 06.04PM IST,AGENCIES

India outsourcers angered by US job visa hike

NEW DELHI: India's flagship outsourcing industry reacted angrily on Saturday to a new US law tightening security at the Mexico border with measures paid for by steep hikes in American work visa fees.

The $600 million legislation, signed into law Friday by US President Barack Obama, will nearly double visa fees for some Indian information technology workers entering the United States.

"The US is giving a very strong signal foreigners are not welcome," said Som Mittal, president of the National Association of Software and Services Companies (NASSCOM), which represents India's leading software exporters.

"The law is discrimination," Mittal said.

The row comes as India readies to host Obama later this year and as anti-outsourcing anger in the United States has been stoked by high unemployment.

The law, passed in the run-up to November US polls, earmarks funds from the visa fee hike to pay for the US government's plans to boost security along its border with Mexico to crack down on illegal immigration and drug smuggling.

"While the need to secure greater funding for strengthened security along the US-Mexico border is well understandable, illegal immigration issues are not linked to the temporary movement of skilled professionals," said Chandrajit Banerjee, head of leading business body the Confederation of Indian Industry.

Banerjee noted India and the United States in April launched a "strategic partnership" to promote economic ties and said "a protectionist pushback" does not help the partnership.

The US legislation affects those skilled workers brought in by companies whose employees are more than 50 percent foreign, a move that largely affects India's IT and outsourcing industries.

US high-tech firms such as Microsoft, which bring skilled immigrants into the United States on the same visas, will not be hit the vast majority of their workforce is American.

NASSCOM says the measures will boost annual US visa costs for the outsourcing industry by $200-250 million annually.

"Any new fees should have been required of any firms using the (visa) programs. This would have been fair and equitable," Mittal said.

More than half of the world's top 500 companies outsource work to India which has become the world's back office where Western firms have set up call centres and number-crunching and software development outlets to cut costs.

But the $50 billion revenue industry also flies employees each year to the United States to work at their clients' locations as on-site technicians and engineers,

Sponsors of the bill said the law would hike fees for particular Indian firms -- naming Wipro, Infosys, Tata and Satyam -- which they accused of seeking to "exploit" visas to "import foreign workers into the United States."

Under the law, the fees for non-immigrant "H1B" and "L" visas go up by $2,000 for firms with more than a 50 per cent non-American workforce. The current fee is $2,500.

The Indian outsourcing sector has been particularly upset with statements by the bill's champions calling the industry a "body shop" because it provides Indian professionals to US companies rather than employing Americans.

Offshoring - What is Offshoring?


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Outsourcing Quick Poll
Are you currently offshoring a process, function or set of tasks at your organization?
   Yes, We're Offshoring
   No, We're Not Offshoring
   No, But We're Thinking of Offshoring

So, what is offshoring? Offshoring is a type of outsourcing. Offshoring simply means having the outsourced business functions done in another country. Frequently, work is offshored in order to reduce labor expenses. Other times, the reasons for offshoring are strategic -- to enter new markets, to tap talent currently unavailable domestically or to overcome regulations that prevent specific activities domestically.

India has emerged as the dominant player in offshoring, particularly in software work. Three factors came into play to make this possible. First, in the 1970s the Indian government put in place regulations that mandated that all foreign ventures have Indian majority ownership. Fearing government takeover, many large U.S. corporations, such as IBM, departed, leaving India in the position of fending for itself to maintain its technical infrastructures. This quickly forced the creation of schools to train students in technology.

Next came the global ubiquity of the Internet and massive telecommunications capacity, which enabled companies to get computer-based work done seemingly anywhere, including India.

Third, as the year 2000 approached, organizations hired service providers to update their legacy program code. Much of this work was handled in India, where English was commonly spoken, where there was a large and highly trained population of software engineers, and where labor costs were much lower than in developed countries. Y2K work proved the merits of an offshore labor force, and companies have continued tapping the talents and skills (and cost savings) made available by Indian offshore service providers. Major companies working as offshoring service providers in India include Tata Consultancy Services (TCS), Infosys and Wipro.

Russia, Ireland, Czechoslovakia and Poland have also surfaced as popular offshoring destinations for specific types of software expertise.

The Philippines, which has a highly literate and educated population, as well as language and cultural affinities with the United States, has become a popular offshoring region for call center and customer support work.

The dominant location for much of the manufacturing outsourcing (in the form of offshoring) by U.S. companies is China, which has made a push in recent years to also become a provider of services. The Chinese central government has made the "third industry" -- services -- a priority for its national development plans in the coming decades. English is taught in China starting in the third grade, and its technical schools and colleges graduate tens of thousands of software engineers annually.

At the same time that other countries were coming to the forefront in areas such as software and call center work, the United States was experiencing an economic downturn that struck in 2000 and 2001. The resulting job losses and insecurities created an offshoring backlash, especially among technical workers.

Both the potential for negative publicity and concerns about data security and privacy have prevented some companies from taking work offshore. However, that doesn't always prevent them from outsourcing. Rural sourcing -- having work done in domestic locations where salaries and operating expenses are lower (such as the Midwest for the United States) -- is an alternative for companies that want to avoid the negative aspects of offshoring.

Other Dimensions of Offshoring

Nearshoring is taking the outsourced work to a nearby country (such as Canada, in the case of the United States). Nearshoring is a popular model for companies that don't want to deal with the cultural, language or time zone differences involved in offshoring.

Captive Centers are offshore companies set up by organizations to provide internal services and in some cases to sell those same services to clients. Often U.S. and European organizations set up captive centers for their outsourced work.

Multinational corporations (MNC) are service providers with offices in many countries, which enable them to serve a global market of clients and tap the labor arbitrage available by offshoring certain types of work. Among this category are IBM, EDS, CSC, HP, ACS, Accenture and Keane.
http://www.sourcingmag.com/content/what_is_offshoring.asp

Working Paper*: Getting Hired in a Flat World

    * Do you want to join an Indian Offshoring firm Onsite? Infosys, TCS, Wipro, Satyam, Cognizant, Patni and other Tier-1
    * Indian software service firms are (selectively) hiring in North America

American economy and consequently the global economy seem to be going through a rough patch though experts are divided on whether we are in true recession. Downturn or not, a sector that will continue to thrive in good times and bad is offshoring. Regardless of what politicians and policy makers say or do, businesses continue to find immense cost-benefits in offshoring, which means that the trends are not reversible. This also means that individuals trying to weather a downturn by seeking recession-proof opportunities are looking for jobs with offshoring firms.

A simple search will tell you that over 1600 jobs posted on Dice.com and 2000 jobs on monster.com today* require some familiarity with Offshore outsourcing! Professionals with knowledge of the dynamics of offshoring and globally distributing work, and those comfortable in managing geographically distributed teams have a distinct edge in the marketplace. Though a few academic institutions have evolved training programs around offshore outsourcing, there is no substitute for hands on exposure. A gig with an Indian service company is a great option for those looking to experience offshoring first hand. However, landing a job is not as straightforward as it sounds. This is because offshoring firms are extremely selective in hiring, a practice necessitated by business drivers. Case in point, the Fortune write-up "Harder than Harvard" analyzes the core challenge of joining Infosys. Though the article focuses on recruitment offshore, in India, many find that it is equally challenging to be hired by offshoring firms in the US, Canada or elsewhere in the west.


During the past few years, I have referred several of my former colleagues and acquaintances to my employer, a tier-1 offshoring leader. I have also counseled a few of my peers on some of the internal dynamics at Indian software service firms and their recruitment strategies for those in the West. Getting hired by an Offshoring firm requires an understanding of two key dimensions:

    * Organizational structure, dynamics and management style
    * Organicational Culture

Interestingly, the operational structures, Culture and 'management style' is similar across Tier-1 offshoring firms, with subtle variations in titles, designations and acronyms for business units.

Organizational Structure: Business units and functions at offshoring firms

As with most service and consulting firms, there are distinct business units that support massive operations internally and for clients. The "big 3" - TCS, Infosys and Wipro- alone currently employ over 80,000 people each. Although firms position the strengths and uniqueness of their operating structures - e.g IBUs at Infosys or SBUs at TCS or Wipro -- the functional areas at most firms continue to be similar:

Business Enabler Functions ( BEF): At offshoring firms, roles in BEFs involve a wide array of jobs ranging from corporate functions (including specialized areas like marketing, finance, HR management, legal, administration etc) to support functions like internal IS (Information Systems), communications, facilities management etc.. Staff for these roles are generally hired from top schools and academies 'back home,' though a few are hired by local offices too. Subcontracting is also resorted to: for instance, the receptionists at the Dallas office may be contracted out from a local staffing firm, or a PR firm may be contracted out for a specific marketing campaign. Staff in enabler functions are routinely deputed from home office to global locations, some of whom go on to become resident specialists. An example is that of finance managers, most of whom are Chartered Accountants or accounting specialists from India, who join the firm offshore and are deputed long-term. Many eventually acquire local credentials (e.g. of CPA) while continuing with the firms.
Challenge for Prospective Onsite Hires in this role: Identifying the few opportunities in such enabler functions, primarily by networking.

Operations, a.k.a "Delivery Stream": At the most basic level, this is the part of the firm that earns revenue and involves the majority of people who work on client projects, engagements and initiatives in myriad technologies ranging from old workhorse - mainframes- to cutting edge Web 2.0, SOA, on esoteric tools. The 'complexities' of business arise because of various dimensions including managing people working across geographic locations and with clients from across geographies, cultures and business verticals ranging from Death Care, Hospital Management to financial sector and everything in between. (a topic which I have dealt with extensively in my book*) The staff roles in operations fall into a few (mutually exclusive) categories

    * Developers: Essentially staff at the 'bottom of pyramid' as Prof. C.K. Prahlad would call them. This category includes people with titles like Programmers, Programmer Analyst, Software Engineers, Test Engineer, QA analyst etc. Slightly more 'senior' employees may be given more fancy titles like 'lead.' The bulk of recruitment for these roles happens offshore for obvious reasons: cost arbitrage. This is a pool of people that is eager and willing to pack their suitcase (literally) given a days notice and fly to a distant corner of the globe to earn living allowances and bonuses in foreign currencies. This is also the category mythologized by the business and technology media. How many articles have you read that focus on "hiring programmers in India, who might make a fifth of what programmers do in the U.S"? The truth here is that developers may "make a fifth" of what programmers do but they are not content with that. Articles also fail to report that the same programmers when deputed in the U.S would make almost similar to what a local programmer would.
     Challenge for Prospective Onsite Hires in this role: Are you globally mobile? Are you willing to "make a fifth" if you are deputed to India? A few firms are selectively taking in interns and students in their internship programs [ref: "Infosys recruits & trains US guys". Examples of internship programs include TCS, Infosys [Youtube of Infosys], Wipro

    * Project/Program/Delivery Management: The vast army of Developers [a.k.a 'resources'] employed by offshoring firms necessitates a complex management layer sometimes spanning four or five ranks. The work in this management layer focuses on tactical channenges of keeping the operations running: gathering client requirements, interfacing with client staff, translating requirements into codable specifications (specks), ensuring that developers code to the speck, reporting on the effort (time/cost/people) expended, ensuring compliance with standards, ensuring smooth communication between onsite-and-offshore teams, among other tasks. Most developers aspire to (and eventually do) take on management roles at offshoring firms, ensuring a healthy (read aggressive) competition for 'promotion'
     Challenge for Prospective Onsite Hires in this role: What is it that you bring to the table in this role, as against someone who has grown into it from within the firm? What is your Unique Selling Proposition: Think You, versus a deputee from offshore eager for the role.

    *

     Account / Relationship / Engagement Management: Account and Engagement managers are essentially counterparts of the offshore Project Manager role (described above) but are resident at client locations. Many grow into the role when deputed to client locations and take on some sales responsibilities though the primary focus is to ensure that they are the 'onsite face' of the firm to the client. Engagement managers become more sales focused as the "account" (business relationship) with the client grows. Account managers and Engagement managers have a lot of operational responsibility of billing and invoicing, and are responsible for ensuring that deputees from offshore are eased into their onsite gigs. The most common challenge for people in this role is when they sell more than their offshore counterparts can deliver, which requires an understanding of subtleties of people working offshore and their capabilities.
     Challenge for Prospective Onsite Hires in this role: What is it that you bring to the table? How much do you understand the internal organizational dynamics?
    *

     Sales support: Sales support staff are the rainmakers, essentially people who focus on bringing in new clients and converting prospects into clients. Onsite sales support roles are also complemented by offshore pre-sales staff that helps with proposals, documentation and other back-end client research tasks. They may also be supported by technical sales specialists.
     Challenge for Prospective Onsite Hires in this role: Are you a rainmaker who also understands global delivery? Do you have a pre-existing relationship at Fortune 500, Global or other target clients? Can you translate your contacts and network into concrete revenue?
    * Other Miscellaneous Roles: Offshoring firms have other roles including 'R&D,' software alliance management and other enabler functions that may coordinate with the different business units, sometimes with external software product firms (examples include Infosys' Microsoft alliance or a list of Wipro's alliances Most of the alliance management is done from offshore offices though a few specialists may be deputed to work onsite with the software/product firms too. Alliance sales support staff may also be deputed to support sales teams onsite.

    * Technology and consulting: Consulting is the holy grail of offshoring firms, ever eager to 'move up the value chain.' To their credit, Tier-1 sourcing firms - Infosys, Wipro, TCS, Satyam et al - have either organically formulated their consulting groups or made small acquisitions. Sourcing firms are desperately building a perception of Chinese-walls between their consulting divisions and 'Delivery' arms. Although the consulting divisions aim to provide value-added services to clients, their focus continues to be around ensuring 'downstream' Application Development and Maintenance (ADM) work for their firms. A few niche consulting areas include:
         o Sourcing consulting: These try to compete with pure-play souring advisory firms
         o Technology Strategy and Architecture consulting: These units, staffed by architects and technologists provide architectural consulting services, and compete with Technology Strategy consulting services of IBM, EDS, Accenture et al. [Note: The author leads a group in the North American Technology Strategy Consulting practice for his employer]
         o Domain consulting: This continues to be a challenge for offshoring firms though a few firms have made inroads [eg. Wipro's AMS Energy buyout and units of Infosys Consulting]
    * Challenge for Prospective Onsite Hires in Consulting roles: Do you have a unique brand (of your own) that you can help sell you and your services for your prospective employer? Identifying the right group, role and niche where you can bring in your consulting expertise while learning the ropes around offshoring and globalization is perhaps the biggest challenge. The challenge is equal for sourcing firms that are trying hard to attract world-class talent with the right credentials.

The Culture at Offshoring Service firms

The culture at offshoring service firms is distinct, and an understanding of some of the aspects may help you position yourself (or reflect on where you see yourself in such firms)

    * Bottom-up Culture: Most tier-1 software service firms have designed well oiled boot-camp like machinery that ensures a steady inflow of trained personnel at the bottom rungs recruited out of engineering school and academies "back home" [E.g "This year (2007-08), Infosys Technologies Ltd, Wipro Ltd, Tata Consultancy Services Ltd (TCS), HCL Technologies Ltd and Satyam Computer Services Ltd will together spend $438 million, according to estimates provided by the firms."] Service firms have been hiring tens of thousands of entry-level engineers a year. [TCS plans to hire 30,000 employees this year, Infosys 20,000 and Wipro 25,000- The Hindu] This isn't exactly breaking news, either. And it is not just Indian firms. IBM, Accenture, EDS and others are also hiring tens of thousands of entry level software engineers in India. It is therefore not surprising that a bulk of recruitment and retention strategies are focused on hiring entry level staff and not on recruiting overseas.
     Challenge for Prospective Onsite Hires: Typical hiring cycle for oversesas/lateral recruits is extremely long drawn, requiring many layers of interviews and approvals, taxing all but the most determined candidates.

    * Onsite travel is a huge perk: For a vast majority of new recruits, going Onsite is a big perk. Offshore employees are more than motivated to pack a suitcase and travel globally for any opportunity to earn in dollars, pounds or any esoteric 'foreign' currency. And the aggressive competition ensures that service firms have a steady pool of people able and willing to travel to client locations at extremely short notice, mitigating the need to hire locally. The only impediment to such travel is the local governmental regulations (e.g. the annual H1 Visa cap in the US). Managers and leaders at offshoring firms leverage this 'perk' extremely effectively in motivating staff by formulating onsite-rotation strategies that include periodic travel etc. Offshoring firms have also evolved extremely sophisticated travel/visa management processes, a core competency for some of them, if you will.
     Challenge for Prospective Onsite Hires: How willing are you to pack your suitcase and travel from Boston to Bogota at a day's notice? Are you willing to earn in Rupees or Chinese Renminbi when deputed East?
    * Fast-paced 'growth' oriented culture: Many analysts talk about the mythical 15% raises at offshore firms, pointing it out as a challenge for India Inc. The reality is that the periodic 'raise' comes with rapid and vertical growth for individuals in a distinctly rank-based culture. One can perhaps draw a parallel here to the tenure based promotions at the lower rungs of military's officer cadre. This is akin to what the author in an article says "One of the aspects of being an Army officer that people find very attractive is the structured promotion system". However, I guess even this is still not the best example: the difference here is that unlike in the army, there is no concept of enlisted men (and women). A few developers in Offshoring firms remain (or like to remain) hands-on 'Software Engineers' merely a few years after cutting their teeth in the industry: a challenge of running an army of Commissioned Officers if you will. This culture is distinctly different from the workforce in traditional data processing departments or IS careers in the west where gray haired programmers are just as happy coding in Cobol, Java or other technologies 15-20 years into their career in Information Technology.
     Challenge for Prospective Onsite Hires: Finding a niche in a hierarchical, homegrown organization is difficult for many laterals, more so when they have to contend with dynamics of working across cultures and in characteristically rank based culture.
    * Homegrown leadership: Another distinct characteristic of the culture at software service firms is that most of the leadership is homegrown: most Offshoring firms continue to be lead by founders or those who joined during the startup phases. Such a trend is not necessarily radical or unique, as companies like GE have refined the art of grooming a cadre of middle-managers in-house, promoting and nurturing talent from within. To their credit, many homegrown leaders at offshoring firms have contributed to the astronomical growth during the past decade. Some have been instrumental in the tremendous sales and market penetration that offshoring firms have enjoyed in recent years, while others have helped customize and refine offshoring strategies, and Global Delivery Models for their firms. The pool of internal leadersip talent includes alumni of offshoring firms who move across competing firms. Though Offshoring firms have strong non-poaching agreements, Engagement Managers and account managers routinely move from, say, TCS to Infosys to Wipro.
     Challenge for Prospective Onsite Hires: With a strong inward looking management culture, offshoring firms are not desperate for external leaders: So, what do you bring to the table?
    * Costs budgeted in rupees: Many Indian software service firms continue to be headquartered in India, consequently their cost and operations are budgeted in rupees. Though they operate globally and also report their finances according to U.S. GAAP standards, few have grown to be truly multinational. Listing in western markets is by means of American Depositary Receipts (ADRs) [For Examples Infosys: INFY, Wipro: WIT, Satyam: SAY are listed in Indian markets and their ADRs in American stock exchanges]. Subsidiaries of service firms in North America operate as Business Units (or branches) with local managers enjoying an element of Profit and Loss (P&L) responsibility, albeit without true autonomy for hiring-and-firing. In that sense, Country/Regional managers of Indian service firms don't enjoy the same autonomy as, say, a 'Partner' or General Manager of other multinational firms.
     Challenge for Prospective Onsite Hires: Onsite hiring is budgeted in Rupees, which means competitive hiring in local markets will involve preparing extremely strong business case. Unless there is a strong business driver, preparing such a business case is an overhead most managers running operations in onsite locations would like to avoid (Read between the lines: would it not be easier to get someone like Raj to travel onsite instead of hiring someone locally?)
    * Visas and Immigration: The fact remains that Indian software service firms - Infosys, Wipro, TCS, Cognizant, Satyam, Patni et al - continue to grab the maximum number of coveted H1B visas. Which means the face of these companies remains Brown. While the H1 and similar work visas in other countries helps tactical business operations, it also has longer term consequences. For instance, Indians who migrated to the US, Canada, Europe and other western nations in the nineties on H1 and work visas, acquired Green Cards and other permanent residence statuses; and over due course some naturalized to Citizens of their adopted lands. This fact also adds to an element of fuzzy math about hiring 'natives' in America. For example, if Infosys sponsored an H1 visa for an employee, say Kumar, in 1997 and also his US Green Card petition in 1999

Offshore Outsourcing to India

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What is offshore outsourcing?

What is offshoring? Offshoring is a type of outsourcing. Offshoring simply means having the outsourced business functions done in another country. Frequently, work is offshored in order to reduce labor expenses. Other times, the reasons for offshoring are strategic -- to enter new markets, to tap talent currently unavailable domestically or to overcome regulations that prevent specific activities domestically. India has emerged as the dominant player in offshoring, particularly in software work.
Read the rest of the article here.

http://www.sourcingmag.com/content/offshore_outsourcing_india.asp
7 Sep, 2010, 06.51AM IST, Pankaj Mishra & N Shivapriya,ET Bureau

ABN to renew $1 bn IT outsourcing deals

BANGALORE/MUMBAI: In what could potentially bring outsourcing projects worth $1 billion to India over the next five years, Dutch banking major ABN Amro is set to renew its contracts for managing the bank's software applications and computer hardware systems with IBM, Tata Consultancy Services (TCS) and Infosys Technologies.

The original contract signed by ABN Amro in 2005 was worth $2 billion, spread over five years, and had five vendors — IBM, Accenture, TCS, Infosys and Patni. The bank had then aimed to save nearly $250 million every year by working with fewer vendors and consolidating its IT infrastructure.

Now, having gone through several restructuring itself, including its merger with Fortis Bank and nationalisation, the bank plans to cut the vendor base further, and drive the integration of different banking systems through outsourcing.

According to at least three people familiar with ABN Amro's outsourcing decision, the bank has retained IBM for managing communication networks, desktops and computer servers, and plans to reduce the number of software application outsourcing vendors to two from the current three.

"TCS has already started handling incremental and new projects, and Infosys too has deep relationship with the bank, especially with Finacle. This leaves Patni and Accenture in a tight spot," said one of the persons familiar with ABN Amro's outsourcing.

He requested anonymity because the bank has not yet officially announced the renewal of contracts. He added that around 300 Fortis employees would get transferred to IBM's payroll as part of this transaction.

IBM is also working on an integration plan for ABN Amro and Fortis, and aims to consolidate the IT systems by 2012, another person familiar with the process added. Officials at TCS and Infosys declined to offer any specific comments on Monday. ABN Amro officials had not responded to an email query sent by ET.

In a year when top outsourcing firms are hoping that customers would revive their tech spending, this could be the beginning of a series of such renewal opportunities being pursued by almost every vendor.

Outsourcing experts from research firms such as Ovum said around 500 contracts worth nearly $37.5 billion are set to expire by September this year, ranging anywhere between $1 million and $1 billion each. Among them, while China Mobile plans to adopt a total outsourcing model by giving away computer hardware and application development activities to a set of vendors, Verizon is looking to lower its operational costs by sending out some work overseas.

Larger offshore vendors, which now include the likes of HP, IBM and Accenture, are likely to bid for a number of contractual opportunities, Jens Butler, principal analyst at Ovum said in a recent interview with ET. "Cost-cutting is not the only theme, it is a component of client requirements ," added Mr Butler, who is based in Sydney, Australia.

For vendors seeking to renew an existing outsourcing contract, the pressures of doing more with less is a perennial challenge , experts say.

"Right now, suppliers' leverage is weak in the market, and in general the supplier doesn't gain as much in renewals as when signing the deal for the first time," said Ameet Singh, vice-president , global delivery , at outsourcing advisory firm Everest. "Billing rates are likely to remain same or go up slightly in most renewals given the soft environment. Buyers will look to drive more efficiency, which could be in terms of increased scope of work and better productivity ," he added.

KEY CHANGES

The original deal signed by ABN Amro in 2005 was worth $2 b, spread over five years, and had five vendors The bank had then aimed to save $250 m every year by working with fewer vendors and consolidating its IT infrastructure It's learnt that the bank has retained IBM for managing communication networks, desktops and computer servers, and plans to reduce the number of software application outsourcing vendors to two from the current three Around 500 contracts, worth nearly $37.5 b, are set to expire this month, ranging between $1 m and $1 b each, say experts
6 Sep, 2010, 08.19PM IST,PTI

Satyam accused allowed to argue his case tomorrow

HYDERABAD: The Special Court dealing with multi-crore Satyam fraud case today granted permission to G Ramakrishna, an accused who was vice president of the firm, to argue his case tomorrow prior to the framing of charges.

The XXI Additional Chief Metropolitan Magistrate (ACCM) court on September 3 had allowed the petition of Ramakrishna, who worked as Vice-President (Finance) in the IT firm, to plead the case himself.

Ramakrishna today sought time till Tuesday to argue his case which was granted but the Magistrate asked him to restrict his argument only to the charges made by the CBI.

Later, the court heard the arguments on the discharge petitions by Satyam's former MD Rama Raju and former employee Prabhakar Gupta.

Ravinder Reddy, the counsel of Rama Raju, told the court that there was prima facie no evidence against his client in the case.

Reddy contended that Ram Raju, brother of Ramalinga Raju, prime accused in the case, was implicated by the investigating agency and framed charges without any concrete evidence.

The counsel for Prabhakar Gupta, a former employees of Satyam Computers, said section 420 and 120-B of IPC did not hold in case of his client who was only an employee of the firm.

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IT Outsourcing India - Replicating the magic...

The world is discovering the fact that India is a super power when it comes to developing IT solutions. Swept by the current of the latest trend "IT outsourcing to India", we find many fortune 500 companies like Microsoft, Oracle, Citibank, Morgan Stanley, Wal-Mart, AT&T, General Electric, Reebok, General Motors, Sony, Boeing, Coca-cola, Pepsi, Swissair, United Airlines, Philips, IBM, Lucas and British Aerospace beneficiaries.

A closer look at the factors fanning the potentials of IT outsourcing in India.

1. India's human resources

Being the world's second highly populated country, human resources are a boon by itself. Just as the Gulf is renowned for its natural resource of crude oil, and South Africa for its diamonds, India is proud of the abundance and easy availability of its highly qualified and technically skilled English speaking computer professionals; who are key to success in the field of IT outsourcing to India.

2. Cost efficiency of IT outsourcing in India

Significant cost saving can be achieved by IT outsourcing to India, owing to the wide gap between the personal costs in India and that of the developed countries. Offshore outsourcing to India offers considerable economical benefits for those who are prepared to exploit the advantages of outsourcing.

3. Standard quality that firms doing IT outsourcing in India guarantee

The Indian companies involved in IT outsourcing in India provide high quality work, meeting international standards and complying with the ISO & SEI-CMM standards. Three out of every four SEI-CMM 5 companies worldwide is located in India. Thus India promises quality - IT outsourcing in India as it has the potential to furnish these services perfectly.

4. The reliable communication facilities

Excellent telecom, ISP, and cellular networks are available in all cities & towns in the country. India prides in the reliable satellite and submarine communication links that facilitate good band connectivity with the rest of the world. Thus companies engaged in IT outsourcing to India, can be in touch with the vendors without any connection hurdles. This plays a significant role in determining the success of offshore IT outsourcing to India.

5. Technologically advanced outsourcing firms in India

India's technologies offer excellent software solutions. The applications include E-commerce, Business Process re-engineering, System Migration, Maintaining Legacy system, System integration etc. India prides in outsourcing facilities that are required to compete with others; which is yet another reason as to why the world prefers It outsourcing to India.

6. Galloping growth in Indian economy

The service sector in India contributes 51% of the GDP. Computer software export was prominent with a growth rate of 40%-50% per year during the 90s. India being the second largest software exporter in the world its large business houses and public sector units are growing steadfastly towards raising economic growth..

7. Stable government facilitating IT growth

India has a stable pro - IT government whose policies, economy, GDP growth, taxation, power, telecom, industrial parks & special zones have been helpful in improving the infrastructure as well as communication. The government proves to be a great support for software firms by further providing all the basic facilities required for an outsourcing company to flourish thus playing a major role in contributing to the success and well-being of IT outsourcing to India.

8. Indian government policies

IT is regarded as one of the top 5 priority industries in India. IT is a part of the national agenda, and policies are framed so as to obtain maximum benefit out of IT outsourcing to India.
The liberalization and deregulation initiatives taken by the government are aimed at supporting growth & integration with the global economy. These reforms have enabled the entry of foreign companies to the Indian market. FDI investment from NRI's including Overseas Corporate Bodies (OCB's); owned by the NRI's are warmly welcomed in India.
The new National Telecom Policy has invited private participants to the Indian telecom sector.
The IT bill passed in 2000, gives a legal framework for the recognition of electronic contracts, prevention of computer crime and electronic filing of documents. NASSCOM along with the government is playing a notable role in protecting the interests of the IT sector. Thus with all these help, IT outsourcing to India has reached a point of no turning back.

Tax system in India.

The well structured tax system in India, with the authority to levy taxes is divided between the Central & State Governments. Direct taxes, like personal income tax, corporate tax and indirect taxes like customs duty are collected by the Central Government while State Government levies local and state sales tax. Tax revenue as a percent of GDP has been constantly on the rise.

Taxes

A domestic company having entire management and control in India is bound to pay 35.7% tax to the Central Government. The nonresident Corporation has to pay 48% of the income derived in India from Indian operation; income that is accounted to arise in India and income that is received in India. Minimum Alienate Tax (MAT) is at the rate of 7.65% of book profit of the companies.

Tax Incentives

The tax incentives offered to the investors by the Government of India are a boon for firms involved in IT outsourcing to India. The incentives that facilitate economic growth and development are:

1. Infrastructure:

A 10 years tax holiday to ventures engaged in developing and / or maintaining and operating an infrastructure facility.

2. Power:

10 years tax holiday to undertakings, which generate and / or distribute power.

3. Telecom:

5 years tax holiday for companies providing telecom services including Internet services and broadband services. Also 30 % deduction from profits for the next 5 years in any 10 continuous years out of first 10 years is also offered.

4. Industrial Parks and Special Economic Zones

10 years tax holiday is applicable to ventures that develop and /or operate or maintain in notified IT parks and special economic zones.

5. Other Industries:

5-year tax holiday is available for new industrial units to be set up in backward states and districts.

6. Incentives for Exports:

Tax is deducted on exporters profits for unit set up on EPZs, STPs, EHTPs, FTZ and SEZs.

7. Other Incentives:

Tax concessions are allowed for FTI and a weighted deduction of 150% for scientific research and development expenditure have been offered. 10 years tax holiday is available for R&D companies engaged in scientific and industrial research.

The Quality Accreditation offered to firms engaged in IT Outsourcing to India.

Yet another prominent reason behind Indias glittering success in the global IT market is the maintenance of quality. In the recent years, India has been able to offer IT software products and services, which match global standards of quality.
As on 31 March 2002, 42 IT outsourcing companies in India achieved SEI-CMM Level 5 assessments. 316 Indian outsourcing companies have achieved quality certifications. More and more IT outsourcing firms are striving for it. Moreover, the Indian software industry has accepted and adopted newly emerging People - Capability Maturity Model (People-CMM). As per 27 June 2002 statistics, India has 85 companies at SEI-CMM Levels assessment for this. These statistics indicate the fact that almost all the companies in the Indian IT sector have realized the value of quality and its accepted standards and that they are vigilant towards achieving it. It will be interesting to take a look at the Global Accreditation, which the Indian IT players have won.

1. ISO 9000

The International Organisation for Standards (ISO 9000 series).
International set of documents on quality assurance. Written by members of a worldwide delegation, ISO/Technical Committee 176.
3 core quality systems documents
Models of quality assurance.

2. SEI-CMM Model

SEI (Software Engineering Institute) established in 1984 at Pitts berg, USA.
The CMM (Capability Maturity Model) of SEI is a framework that describes the key elements of an effective software outsourcing process.
CMM - composed of 5 maturity levels.
Each level facilitates a layer in the foundation for continuous process improvement.
Achieving each level of the model institutionalizes a different component in the software process, resulting in an overall increase in the process capability of the organization.

3. People Capability Maturity Model (People-CMM)

Process targeted at managing and developing an organization's workforce and adopts the maturity framework of the CMM.
Aim - to radically improve the ability of software organizations to attract, develop, motivate, organize and retain the talent needed to continuously improve software development capability.
Contains 5 maturity levels.
Lay foundations for continuously improving talent, effective teams, and successfully managing the people assets of the organizations.

4. CMM Model

Aim - to guide organizations in improving ability and processes in development, acquisition and maintenance of products and services.
Places proven practices into a structure, which aids to measure the firms maturity and process area capabilities.
Establishes priorities for advancement and guides the implementation of these environments.

A brief look on Nasscom Manpower Resource Survey

Nasscom conducted a survey in the year 2001-2002, on the IT work force status in the country. These were the issues under study.

To ascertain the present quarter of IT work force in the country.
To make future projections about supplying IT-manpower resources needed to meet the industry demand.
To frame a strategy for the same.

The survey revealed that:

The number of employed IT software and services professionals showed an increasing trend. (A whooping 522,000 by the end of 2001-02 compared to 280,000 employed in the year 1998-99.
This figure covers professionals, who are engaged in application software, IT services and IT enabled services including professionals engaged in software development units in user organization.
South India ranked the highest in hiring of new IT professionals amounting to 41% while the Eastern region was ranked the lowest with 6%.
25.6 years was the overall median age of software professionals.
44% of them had over 3 years of working experience.
Interestingly male domination was seen among the software professionals in Indian IT firms; with ratio of 79:21 (male: female); which is likely to continue to 65.35 by the year 2005.
The areas that required skills are

Software engineering/programmers/analysis
Database administrations.
E-commerce and Internet application
Digital media.
Web based applications.
Java
Communication engineers and Network specialists.
Networking application.
Data ware housing.
Project management.
Business applications of software development.
Client networking.
Quality assurance and technical writing.
Legacy systems etc.

Outsourcing bags the future.

India needs to increase the workforce, at least 10 fold by 2008, to keep in pace with the growing competition. Quoting the 1999, Nasscom-MaKinsey report, India needs to have at least 2.2 million knowledge workers in IT software and services related areas by 2008. To achieve this goal India must focus on taking the following key steps to increase the number of IT experts in the outsourcing field. This will turn influence the growth of IT outsourcing to India remarkably.

1. Establishing IIT/IIIT in each state

Indian Institute of Technology, is renowned for providing fresh IT graduates / post graduates.
Indian Institute of Information Technology (IIIT) a 4 year old institute is a joint initiative by the government and the industry, which aims to give both computer software engineering degrees as well as conduct short-term courses. These institutes allow private sector companies affiliation with their own schools.
Nasscom recommends the allocation of at least Rs.15, 000 crores in the 10th five year plan towards establishing at least one IIT in every Indian state.

2. Course-ware in IIT/IIITs

Areas like Project Management, E-commerce, Java, Software Engineering, etc. are to be given more focus.
The syllabus must take into account the changes in the industry.

3. Setting up of IIITs

Quick steps should be taken to set up IIITs (Indian Institute of Information Technology) in every state while giving deemed University status to IIT's without insisting on the mandatory stipulation period of 3 years.

4. Providing more PhDs

To bring out high quality task force in IT field; India needs to have more number of PhDs at all levels ranging from the faculty to R&D.

5. Bridge courses

Courses offered in Engineering Colleges throughout the country must be restructured so as to accomodate lessons on computer science programming in at least one semester. Whatever the field, computer knowledge will help those who pass out from these institutions to serve the software industry. Moreover, the industry needs more engineering professionals from different backgrounds too.

6. Graduation Courses with IT modules

The graduation courses offered by universities and colleges countrywide must include computer related courses.
Special IT modules must be introduced with a mission to impact the society. IT is a productivity-enhancing tool in a broad range of work situations.

7. Restructuring the courses

Existing institutions like IIT, IISc; RECs; and MCA courses must be moulded in such a way so as to have the maximum output in minimum time.

8. Program to train teachers

A combination of physical and virtual training programmes to train teaches (3T program) at all levels ranging from Primary and Secondary School levels to post and under-graduate courses and Engineering colleges has to be established, to train teachers.

9. Inter Linking Educational Institutes

To facilitate the sharing of high quality education and library resources, the universities, engineering colleges, medical colleges, other educational institutes and R&D organizations must be brought under one network.

10. Retraining

Expert service is needed to lead and support IT projects in areas like CRH/e-CRM implementation (front office automation, supply chain management, custom relationship management etc.) and to provide ITES such as finance and accounting, HR, engineering design. For meeting these current requests, the corresponding industry experts must be given a good training; facilitating them with IT knowledge.
Grooming with IT outsourcing in India, the government of India needs to concentrate on destroying the cobwebs of regulatory hurdles in emerging service lines like IT- enabled services; unlocking growth in domestic market and proactively addressing the potential infrastructure and talent bottlenecks to make sure that the country is ahead in the competition. The government has to ensure 100% of its support in the field of IT outsourcing to India. Nasscom must also sharpen its focus in moulding India as a "Global Services Sourcing Hub".

A few steps more for IT Outsourcing in India.

Firms equipped in IT outsourcing to India have their own unique strengths and capabilities. Indian outsourcing firms look at their businesses differently, behave differently, and do different things from that of the past. Maximise on the benefits of outsourcing with IT Outsourcing India, the team prepared to confront challenges from any part of the globe.
http://itoutsourcingindia.com/india/

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	Applitech Solution Ltd. is an IT Solutions Company specializing in cutting edge technological solutions around the world. We provide a broad spectrum of technology capabilities, from factory floor process control to Web enabled supply chain management and application Services.
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Business process outsourcing

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*	This article is written like a magazine article; it does not use the direct, balanced tone expected of an encyclopedia. Please discuss this issue on the talk page. Editing help is available. (December 2008)

*	This article contains weasel words, vague phrasing that often accompanies biased or unverifiable information. Such statements should be clarified or removed. (December 2008)

Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions (or processes) to a third-party service provider. Originally, this was associated with manufacturing firms, such as Coca Cola that outsourced large segments of its supply chain.[1]. In the contemporary context, it is primarily used to refer to the outsourcing of services.
BPO is typically categorized into back office outsourcing - which includes internal business functions such as human resources or finance and accounting, and front office outsourcing - which includes customer-related services such as contact center services.
BPO that is contracted outside a company's country is called offshore outsourcing. BPO that is contracted to a company's neighboring (or nearby) country is called nearshore outsourcing.
Given the proximity of BPO to the information technology industry, it is also categorized as an information technology enabled service or ITES. Knowledge process outsourcing (KPO) and legal process outsourcing (LPO) are some of the sub-segments of business process outsourcing industry.

[hide]

[edit] Industry size

India has revenues of 10.9 billion USD[2] from offshore BPO and 30 billion USD from IT and total BPO (expected in FY 2008). India thus has some 5-6% share of the total BPO Industry, but a commanding 63% share of the offshore component. This 63% is a drop from the 70% offshore share that India enjoyed last year, despite the industry growing 38% in India last year, other locations like Eastern Europe, Philippines, Morocco, Kenya, Egypt and South Africa have emerged to take a share of the market[citation needed]. China is also trying to grow from a very small base in this industry. However, while the BPO industry is expected to continue to grow in India, its market share of the offshore piece is expected to decline. Important centers in India are Bangalore, Hyderabad, Chennai, Kolkata, Mumbai, Pune and New Delhi.
The top five Indian BPO exporters for 2006-2007 according to NASSCOM are Genpact, WNS Global Services, Transworks Information Services, IBM Daksh, and TCS BPO.[3]
According to McKinsey, the global "addressable" BPO market is worth $122 – $154 billion, of which: 35-40 retail banking, 25-35 insurance, 10-12 travel/hospitality, 10-12 auto, 8-10 telecoms, 8 pharma, 10-15 others and 20-25 is finance, accounting and HR. Moreover, they estimate that 8% of that capacity was utilized as of 2006

[edit] BPO Benefits and Limitations

An advantage of BPO is the way in which it helps to increase a company's flexibility. However, several sources[which?] have different ways in which they perceive organizational flexibility. Therefore business process outsourcing enhances the flexibility of an organization in different ways.
Most services provided by BPO vendors are offered on a fee-for-service basis[citation needed]. This can help a company becoming more flexible by transforming fixed into variable costs.[4] A variable cost structure helps a company responding to changes in required capacity and does not require a company to invest in assets, thereby making the company more flexible.[5] Outsourcing may provide a firm with increased flexibility in its resource management and may reduce response times to major environmental changes[citation needed].
Another way in which BPO contributes to a company's flexibility is that a company is able to focus on its core competencies, without being burdened by the demands of bureaucratic restraints.[6] Key employees are herewith released from performing non-core or administrative processes and can invest more time and energy in building the firm's core businesses.[7] The key lies in knowing which of the main value drivers to focus on – customer intimacy, product leadership, or operational excellence. Focusing more on one of these drivers may help a company create a competitive edge.[8]
A third way in which BPO increases organizational flexibility is by increasing the speed of business processes. Using techniques such as linear programming can reduce cycle time and inventory levels, which can increase efficiency and cut costs[citation needed]. Supply chain management with the effective use of supply chain partners and business process outsourcing increases the speed of several business processes, such as the throughput in the case of a manufacturing company.[9]
Finally, flexibility is seen[who?]as a stage in the organizational life cycle. BPO helped to transform Nortel from a bureaucratic organization into a very agile competitor[citation needed]. A company can maintain growth goals while avoiding standard business bottlenecks.[10] BPO therefore allows firms to retain their entrepreneurial speed and agility, which they would otherwise sacrifice in order to become efficient as they expanded. It avoids a premature internal transition from its informal entrepreneurial phase to a more bureaucratic mode of operation.[11]
A company may be able to grow at a faster pace as it will be less constrained by large capital expenditures for people or equipment that may take years to amortize, may become outdated or turn out to be a poor match for the company over time.
Although the above-mentioned arguments favor the view that BPO increases the flexibility of organizations, management needs to be careful with the implementation of it as there are a issues, which work against these advantages. Among problems, which arise in practice are: A failure to meet service levels, unclear contractual issues, changing requirements and unforeseen charges, and a dependence on the BPO which reduces flexibility. Consequently, these challenges need to be considered before a company decides to engage in business process outsourcing[12]
A further issue is that in many cases there is little that differentiates the BPO providers other than size. They often provide similar services, have similar geographic footprints, leverage similar technology stacks, and have similar Quality Improvement approaches.[13]

[edit] Threats

Risk is the major drawback with Business Process Outsourcing. Outsourcing of an Information System, for example, can cause security risks both from a communication and from a privacy perspective. For example, security of North American or European company data is more difficult to maintain when accessed or controlled in the Sub-Continent. From a knowledge perspective, a changing attitude in employees, underestimation of running costs and the major risk of losing independence, outsourcing leads to a different relationship between an organization and its contractor.[14][15]
Risks and threats of outsourcing must therefore be managed, to achieve any benefits. In order to manage outsourcing in a structured way, maximizing positive outcome, minimizing risks and avoiding any threats, a Business continuity management (BCM) model is setup. BCM consists of a set of steps, to successfully identify, manage and control the business processes that are, or can be outsourced.[16]
Another framework, more focused on the identification process of potential outsourceable Information Systems, identified as AHP, is explained.[17]
L. Willcocks, M. Lacity and G. Fitzgerald identify several contracting problems companies face, ranging from unclear contract formatting, to a lack of understanding of technical IT- processes.[18]

[edit] See also

[edit] References

^ Tas, J. & Sunder, S. 2004, Financial Services Business Process Outscourcing, Communications of the ACM, Vol 47, No. 5
^ Cover Story
^ NASSCOM Announces Top-15 ITES-BPO Exporters Rankings for FY 06-07
^ Willcocks, L., Hindle, J., Feeny, D. & Lacity, M. 2004, IT and Business Process Outsourcing: The Knowledge Potential, Information Systems Management, Vol. 21, pp 7–15
^ Gilley, K.M., Rasheed, A. 2000. Making More by Doing Less: An Analysis of Outsourcing and its Effects on Firm Performance. Journal of Management, 26 (4): 763-790.
^ Kakabadse, A., Kakabadse. N. 2002. Trends in Outsourcing: Contrasting USA and Europe. European Management Journal Vol. 20, No. 2: 189–198
^ Weerakkody, Vishanth, Currie, L. Wendy and Ekanayake, Yamaya. 2003. Re-engineering business processes through application service providers - challenges, issues and complexities. Business Process Management Journal Vol. 9 No. 6: 776-794
^ Leavy, B. 2004. Outsourcing strategies: opportunities and risk. Strategy and Leadership, 32 (6) : 20-25.
^ Tas, Jeroen, Sunder, Shyam. 2004. Financial Services Business Process Outsourcing. COMMUNICATIONS OF THE ACM Vol. 47, No. 5
^ Fischer, L.M. 2001. From vertical to Virtual; How Nortel's Supplier Alliances Extend the enterprise [online]. Strategy+Business, Available from http://www.strategy-business.com/press/16635507/11153 [Accessed 5 February 2008]
^ (Leavy 2004, 20-25)
^ Michel, Vaughan, Fitzgerald, Guy. 1997. The IT outsourcing market place: vendors and their selection. Journal of Information Technology 12: 223-237
^ Adsit, D. (2009) Will a Toyota Emerge from the Pack of Me-Too BPO's?, In Queue http://www.nationalcallcenters.org/pubs/In_Queue/vol3no21.html
^ Bunmi Cynthia Adeleye, Fenio Annansingh and Miguel Baptista Nunes. "Risk management practices in IS outsourcing: an investigation into commercial banks in Nigeria", International Journal of Information Management 24 (2004): 167-180.
^ K. Altinkemer, A. Chaturvedi and R. Gulati. "Information systems outsourcing: Issues and evidence", International Journal of Information Management 14- 4 (1994): 252- 268.
^ Forbes Gibb, and Steven Buchanan. "A framework for business continuity management", International Journal of Information Management 26- 2 (2006): 128- 141.
^ Chyan Yang and Jen-Bor Huang. "A decision model for IS outsourcing", International Journal of Information Management 20- 3 (2000): 225- 239.
^ L. Willcocks, M. Lacity and G. Fitzgerald. "Information technology outsourcing in Europe and the USA: Assessment issues", International Journal of Information Management 15- 5 (1995): 333- 351.

[edit] External links

Report on Business Process Outsourcing (BPO)

Retrieved from "http://en.wikipedia.org/wiki/Business_process_outsourcing"

Categories: Business process | Business terms | Information technology management

Economy of India

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Economy of The Republic of India
* Modern Indian notes
Rank	11th (nominal) / 4th (PPP)
Currency	1 Indian Rupee (INR) ( Paise
Fixed exchange rates	USD = 46.9100 INR (August 27, 2010) [1]
Fiscal year	Calendar year (1 April — 31 March)
Trade organizations	WTO, SAFTA, G-20 and others
Statistics
GDP	$1.250 trillion (nominal: 11th; 2009)[2] $3.526 trillion (PPP: 4th; 2009)[2]
GDP growth	8.8% (2010, Q1)[3]
GDP per capita	$1,031 (nominal: 139th; 2009)[2] $2,941 (PPP: 128th; 2009)[2]
GDP by sector	agriculture (17%), industry (28.2%), services (54.9%) (2009)
Inflation (CPI)	9.97% (July 2010)[4] Food inflation (9.53%) (Aug 2010)[4]
Population below poverty line	42% (456 million earn below $1.25 per day) (2010 est.)[5]
Gini index	36.8 (List of countries)
Labour force	467 million (2nd; 2009)
Labour force by occupation	agriculture (52%), industry (14%), services (34%) (2009 est.)
Unemployment	10.7% (2010 est.)[6]
Main industries	telecommunications, textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, information technology, pharmaceuticals
Ease of Doing Business Rank	133rd[7]
External
Exports	$176.5 billion (18th; 2009)
Export goods	software, petroleum products, textile goods, gems and jewelry, engineering goods, chemicals, leather manufactures
Main export partners	US 12.3%, UAE 9.4%, China 9.3% (2008)
Imports	$287.5 billion (15th; 2009)
Import goods	crude oil, machinery, gems, fertilizer, chemicals
Main import partners	China 11.1%, Saudi Arabia 7.5%, US 6.6%, UAE 5.1%, Iran 4.2%, Singapore 4.2%, Germany 4.2% (2008)
FDI stock	Home: $161.3 billion (24th; 2009) Abroad: $77.4 billion (24th; 2009)
Gross external debt	$223.9 billion (31 December 2009 est.)
Public finances
Public debt	58% of GDP (2009 est.)[8]
Revenues	$129.8 billion (2009 est.)
Expenses	$214.6 billion (2009 est.)
Economic aid	$1.724 billion (2005)[9]
Foreign reserves	$282.84 billion (6th; Aug 2010)
Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars

Throughout this article, the unqualified term "dollar" and the $ symbol refer to the US dollar.
The economy of India is the eleventh largest economy in the world by nominal GDP [2] and the fourth largest by purchasing power parity (PPP).[10] Following strong economic reforms from the socialist inspired economy of a post-independence Indian nation, the country began to develop a fast-paced economic growth, as free market principles were initiated in 1990 for international competition and foreign investment. India is an emerging economic power with a very large pool of human and natural resources, and a growing large pool of skilled professionals. Economists predict that by 2020,[11] India will be among the leading economies of the world.
India was under social democratic-based policies from 1947 to 1991. The economy was characterised by extensive regulation, protectionism, public ownership, pervasive corruption and slow growth.[12][13][14][15] Since 1991, continuing economic liberalisation has moved the country towards a market-based economy.[13][14] A revival of economic reforms and better economic policy in 2000s accelerated India's economic growth rate. In recent years, Indian cities have continued to liberalize business regulations.[7] By 2008, India had established itself as the world's second-fastest growing major economy.[16][17][18] However, the year 2009 saw a significant slowdown in India's GDP growth rate to 6.8%[19] as well as the return of a large projected fiscal deficit of 6.8% of GDP which would be among the highest in the world.[20][21]
India's large service industry accounts for 55% of the country's Gross Domestic Product (GDP) while the industrial and agricultural sector contribute 28% and 17% respectively.[22] Agriculture is the predominant occupation in India, accounting for about 52% of employment. The service sector makes up a further 34%, and industrial sector around 14%.[22] The labor force totals half a billion workers. Major agricultural products include rice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes, cattle, water buffalo, sheep, goats, poultry and fish.[23] Major industries include telecommunications, textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, information technology enabled services and pharmaceuticals.[23]
India's per capita income (nominal) is $1,030, ranked 139th in the world,[24] while its per capita (PPP) of US$2,940 is ranked 128th.[25][26] Previously a closed economy, India's trade has grown fast.[13] India currently accounts for 1.5% of World trade as of 2007 according to the WTO. According to the World Trade Statistics of the WTO in 2006, India's total merchandise trade (counting exports and imports) was valued at $294 billion in 2006 and India's services trade inclusive of export and import was $143 billion. Thus, India's global economic engagement in 2006 covering both merchandise and services trade was of the order of $437 billion, up by a record 72% from a level of $253 billion in 2004. India's trade has reached a still relatively moderate share 24% of GDP in 2006, up from 6% in 1985.[13]

[hide]

1 History

2 Sectors

2.4.1 Petroleum and Natural gas

2.5 Pharmaceuticals

3 External trade and investment

7.1 Issues

[edit] History

Main articles: Economic history of India and Timeline of the economy of India

The spice trade between India and Europe was one of the main drivers of the world economy[27] and the main catalyst for the Age of Discovery.[28]

India's economic history can be broadly divided into three eras, beginning with the pre-colonial period lasting up to the 18th century. The advent of British colonisation started the colonial period in the early 19th century, which ended with independence in 1947. The third period stretches from independence in 1947 until now.

[edit] Pre-colonial

The citizens of the Indus Valley civilisation, a permanent settlement that flourished between 2800 BC and 1800 BC, practiced agriculture, domesticated animals, used uniform weights and measures, made tools and weapons, and traded with other cities. Evidence of well planned streets, a drainage system and water supply reveals their knowledge of urban planning, which included the world's first urban sanitation systems and the existence of a form of municipal government.[29]

The 1872 census revealed that 99.3% of the population of the region constituting present-day India resided in villages,[30] whose economies were largely isolated and self-sustaining, with agriculture the predominant occupation. This satisfied the food requirements of the village and provided raw materials for hand-based industries, such as textiles, food processing and crafts. Although many kingdoms and rulers issued coins, barter was prevalent. Villages paid a portion of their agricultural produce as revenue to the rulers, while its craftsmen received a part of the crops at harvest time for their services.[31]

Religion, especially Hinduism, and the caste and the joint family systems, played an influential role in shaping economic activities.[32] The caste system functioned much like medieval European guilds, ensuring the division of labour, providing for the training of apprentices and, in some cases, allowing manufacturers to achieve narrow specialization. For instance, in certain regions, producing each variety of cloth was the specialty of a particular sub-caste.

Estimates of the per capita income of India (1857–1900) as per 1948–49 prices.[33]

Textiles such as muslin, Calicos, shawls, and agricultural products such as pepper, cinnamon, opium and indigo were exported to Europe, the Middle East and South East Asia in return for gold and silver.[34]

Assessment of India's pre-colonial economy is mostly qualitative, owing to the lack of quantitative information. One estimate puts the revenue of Akbar's Mughal Empire in 1600 at £17.5 million, in contrast with the total revenue of Great Britain in 1800, which totalled £16 million.[35] India, by the time of the arrival of the British, was a largely traditional agrarian economy with a dominant subsistence sector dependent on primitive technology. It existed alongside a competitively developed network of commerce, manufacturing and credit. After the decline of the Mughals, western, central and parts of south and north India were integrated and administered by the Maratha Empire. The Maratha Empire's budget in 1740s, at its peak, was 100 million. After the loss at Panipat, the Maratha Empire disintegrated into confederate states of Gwalior, Baroda, Indore, Jhansi, Nagpur, Pune and Kolhapur. Gwalior state had a budget of 30M. However, at this time, British East India company entered the Indian political theatre. Until 1857, when India was firmly under the British crown, the country remained in a state of political instability due to internecine wars and conflicts.[36]

[edit] Colonial

An aerial view of Calcutta Port taken in 1945. Calcutta, which was the economic hub of British India, saw increased industrial activity during World War II.

Company rule in India brought a major change in the taxation environment from revenue taxes to property taxes, resulting in mass impoverishment and destitution of majority of farmers and led to numerous famines.[37] The economic policies of the British Raj effectively bankrupted India's large handicrafts industry and caused a massive drain of India's resources.[38][39] Indian Nationalists employed the successful Swadeshi movement, as strategy to diminish British economic superiority by boycotting British products and the reviving the market for domestic-made products and production techniques. India had become a strong market for superior finished European goods. This was because of vast gains made by the Industrial revolution in Europe, the effects of which was deprived to Colonial India.

The Nationalists had hoped to revive the domestic industries that were badly effected by policies implemented by British Raj which had made them uncompetitive to British made goods.

An estimate by Cambridge University historian Angus Maddison reveals that "India's share of the world income fell from 22.6% in 1700, comparable to Europe's share of 23.3%, to a low of 3.8% in 1952".[40] It also created an institutional environment that, on paper, guaranteed property rights among the colonizers, encouraged free trade, and created a single currency with fixed exchange rates, standardized weights and measures, capital markets. It also established a well developed system of railways and telegraphs, a civil service that aimed to be free from political interference, a common-law and an adversarial legal system.[41] India's colonisation by the British coincided with major changes in the world economy—industrialisation, and significant growth in production and trade. However, at the end of colonial rule, India inherited an economy that was one of the poorest in the developing world,[42] with industrial development stalled, agriculture unable to feed a rapidly growing population, India had one of the world's lowest life expectancies, and low rates for literacy.

The impact of the British rule on India's economy is a controversial topic. Leaders of the Indian independence movement, and left-nationalist economic historians have blamed colonial rule for the dismal state of India's economy in its aftermath and that financial strength required for Industrial development in Europe was derived from the wealth taken from Colonies in Asia and Africa. At the same time right-wing historians have countered that India's low economic performance was due to various sectors being in a state of growth and decline due to changes brought in by colonialism and a world that was moving towards industrialization and economic integration.[43]

[edit] Independence to 1991

Compare India (orange) with South Korea (yellow). Both started from about the same income level in 1950. The graph shows GDP per capita of South Asian economies and South Korea as a percent of the American GDP per capita.

Indian economic policy after independence was influenced by the colonial experience (which was seen by Indian leaders as exploitative in nature) and by those leaders' exposure to Fabian socialism. Policy tended towards protectionism, with a strong emphasis on import substitution, industrialization, state intervention in labor and financial markets, a large public sector, business regulation, and central planning.[44] Five-Year Plans of India resembled central planning in the Soviet Union. Steel, mining, machine tools, water, telecommunications, insurance, and electrical plants, among other industries, were effectively nationalized in the mid-1950s.[45] Capitalism and Private sector did not exist before 1991. Elaborate licences, regulations and the accompanying red tape, commonly referred to as Licence Raj, were required to set up business in India between 1947 and 1990.[46]

Jawaharlal Nehru, the first prime minister, along with the statistician Prasanta Chandra Mahalanobis, carried on by Indira Gandhi formulated and oversaw economic policy. They expected favorable outcomes from this strategy, because it involved both public and private sectors and was based on direct and indirect state intervention, rather than the more extreme Soviet-style central command system.[47][dead link] The policy of concentrating simultaneously on capital- and technology-intensive heavy industry and subsidizing manual, low-skill cottage industries was criticized by economist Milton Friedman, who thought it would waste capital and labour, and retard the development of small manufacturers.[48][dead link] The rate from 1947–80 was derisively referred to as the Hindu rate of growth, because of the unfavourable comparison with growth rates in other Asian countries, especially the "East Asian Tigers".[41]

The Rockefeller Foundation's research in high-yielding varieties of seeds, their introduction after 1965 and the increased use of fertilizers and irrigation are known collectively as the Green Revolution in India, which provided the increase in production needed to make India self-sufficient in food grains, thus improving agriculture in India. Famine in India, once accepted as inevitable, has not returned since independence.

[edit] Since 1991

Main articles: Economic liberalization in India and Economic development in India

In the late 80s, the government led by Rajiv Gandhi eased restrictions on capacity expansion for incumbents, removed price controls and reduced corporate taxes. While this increased the rate of growth, it also led to high fiscal deficits and a worsening current account. The collapse of the Soviet Union, which was India's major trading partner, and the first Gulf War, which caused a spike in oil prices, caused a major balance-of-payments crisis for India, which found itself facing the prospect of defaulting on its loans.[49] India asked for a $1.8 billion bailout loan from IMF, which in return demanded reforms.[50]

An industrial zone near Mumbai, India.

In response, Prime Minister Narasimha Rao along with his finance minister and current Prime Minister of India Dr. Manmohan Singh initiated the economic liberalization of 1991. The reforms did away with the Licence Raj (investment, industrial and import licensing) and ended many public monopolies, allowing automatic approval of foreign direct investment in many sectors.[51] Since then, the overall direction of liberalisation has remained the same, irrespective of the ruling party, although no party has tried to take on powerful lobbies such as the trade unions and farmers, or contentious issues such as reforming labour laws and reducing agricultural subsidies.[52] Since 1990 India has a free-market economy and emerged as one of the fastest-growing economies in the developing world; during this period, the economy has grown constantly, but with a few major setbacks. This has been accompanied by increases in life expectancy, literacy rates and food security.

While the credit rating of India was hit by its nuclear tests in 1998, it has been raised to investment level in 2007 by S&P and Moody's.[53] In 2003, Goldman Sachs predicted that India's GDP in current prices will overtake France and Italy by 2020, Germany, UK and Russia by 2025 and Japan by 2035. By 2035, it was projected to be the third largest economy of the world, behind US and China. India is often seen by most economists as a rising economic superpower and is believed to play a major role in the global economy in the 21st century.[54][55] In 2009 India purchased 200 Tons of Gold for $6.7 billion from IMF[56] as a total role reversal from 1991.

[edit] Sectors

[edit] Industry and services

The prestigious Tidel Park in Chennai. India has Asia's largest outsourcing industry[57] and is the world's second most favorable outsourcing destination after the United States.[58]

India has one of the world's fastest growing automobile industries [59][60] Shown here is the Tata Motors' Nano, the world's cheapest car.[61]

Industry accounts for 28% of the GDP and employ 14% of the total workforce.[22] However, about one-third of the industrial labour force is engaged in simple household manufacturing only.[62][dead link] In absolute terms, India is 16th in the world in terms of nominal factory output.[63]

Economic reforms brought foreign competition, led to privatisation of certain public sector industries, opened up sectors hitherto reserved for the public sector and led to an expansion in the production of fast-moving consumer goods.[64] Post-liberalisation, the Indian private sector, which was usually run by oligopolies of old family firms and required political connections to prosper was faced with foreign competition, including the threat of cheaper Chinese imports. It has since handled the change by squeezing costs, revamping management, focusing on designing new products and relying on low labour costs and technology.[65]

Textile manufacturing is the second largest source for employment after agriculture and accounts for 26% of manufacturing output.[66] Ludhiana produces 90% of woolens in India and is also Known as the Manchester of India. Tirupur has gained universal recognition as the leading source of hosiery, knitted garments, casual wear and sportswear.[67] Dharavi slum in Mumbai has gained fame for leather products. Tata Motors' Nano attempts to be the world's cheapest car.[61]

India is fifteenth in services output. It provides employment to 23% of work force, and it is growing fast, growth rate 7.5% in 1991–2000 up from 4.5% in 1951–80. It has the largest share in the GDP, accounting for 55% in 2007 up from 15% in 1950.[22]

Business services (information technology, information technology enabled services, business process outsourcing) are among the fastest growing sectors contributing to one third of the total output of services in 2000. The growth in the IT sector is attributed to increased specialization, and an availability of a large pool of low cost, but highly skilled, educated and fluent English-speaking workers, on the supply side, matched on the demand side by an increased demand from foreign consumers interested in India's service exports, or those looking to outsource their operations. The share of India's IT industry to the country's GDP increased from 4.8 % in 2005-06 to 7% in 2008.[68][69] In 2009, seven Indian firms were listed among the top 15 technology outsourcing companies in the world.[70] In March 2009, annual revenues from outsourcing operations in India amounted to US$60 billion and this is expected to increase to US$225 billion by 2020.[71]

Organized retail such supermarkets accounts for 24% of the market as of 2008.[72] Regulations prevent most foreign investment in retailing. Moreover, over thirty regulations such as "signboard licences" and "anti-hoarding measures" may have to be complied before a store can open doors. There are taxes for moving goods to states, from states, and even within states.[72]

Tourism in India is relatively undeveloped, but growing at double digits. Some hospitals woo medical tourism.[73]

[edit] Agriculture

Farmers work inside a rice field in Andhra Pradesh. India is the second largest producer of rice in the world after China[74] and Andhra Pradesh is the 2nd largest rice producing state in India with West Bengal being the largest.[75]

Main articles: Agriculture in India, Forestry in India, Animal husbandry in India, and Fishing in India

India ranks second worldwide in farm output. Agriculture and allied sectors like forestry, logging and fishing accounted for 17% of the GDP in 2009, employed 52% of the total workforce[22] and despite a steady decline of its share in the GDP, is still the largest economic sector and plays a significant role in the overall socio-economic development of India. Yields per unit area of all crops have grown since 1950, due to the special emphasis placed on agriculture in the five-year plans and steady improvements in irrigation, technology, application of modern agricultural practices and provision of agricultural credit and subsidies since Green revolution in India. However, international comparisons reveal the average yield in India is generally 30% to 50% of the highest average yield in the world.[76]

Paddy fields at Kanyakumari district in Tamil Nadu

India is the largest producer in the world of milk, cashew nuts, coconuts, tea, ginger, turmeric and black pepper.[77] It also has the world's largest cattle population: 193 million.[78] It is the second largest producer of wheat, rice, sugar, cotton, silk, peanuts and inland fish.[79] It is the third largest producer of tobacco.[79] India is the largest fruit producer, accounting for 10% of the world fruit production. It is the leading producer of bananas, sapotas and mangoes.[79]

India is the second largest producer and the largest consumer of silk in the world, with the majority of the 77 million kg (2005)[80] production taking place in Karnataka State, particularly in Mysore and the North Bangalore regions of Muddenahalli, Kanivenarayanapura, and Doddaballapura, the upcoming sites of a INR 700 million "Silk City".[81][82]

[edit] Banking and finance

Main article: Finance in India

The Indian money market is classified into: the organised sector (comprising private, public and foreign owned commercial banks and cooperative banks, together known as scheduled banks); and the unorganised sector (comprising individual or family owned indigenous bankers or money lenders and non-banking financial companies (NBFCs)). The unorganised sector and microcredit are still preferred over traditional banks in rural and sub-urban areas, especially for non-productive purposes, like ceremonies and short duration loans.[83]

Mumbai is the financial and commercial capital of India. Shown here is the World Trade Centre of Mumbai

Prime Minister Indira Gandhi nationalised 14 banks in 1969, followed by six others in 1980, and made it mandatory for banks to provide 40% of their net credit to priority sectors like agriculture, small-scale industry, retail trade, small businesses, etc. to ensure that the banks fulfill their social and developmental goals. Since then, the number of bank branches has increased from 10,120 in 1969 to 98,910 in 2003 and the population covered by a branch decreased from 63,800 to 15,000 during the same period. The total deposits increased 32.6 times between 1971 to 1991 compared to 7 times between 1951 to 1971. Despite an increase of rural branches, from 1,860 or 22% of the total number of branches in 1969 to 32,270 or 48%, only 32,270 out of 5 lakh (500,000) villages are covered by a scheduled bank.[84][85]

The public sector banks hold over 75% of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively.[86] Since liberalisation, the government has approved significant banking reforms. While some of these relate to nationalised banks (like encouraging mergers, reducing government interference and increasing profitability and competitiveness), other reforms have opened up the banking and insurance sectors to private and foreign players.[22][87]

More than half of personal savings are invested in physical assets such as land, houses, cattle, and gold.[88] Indian has the highest saving rate in the world at 36 percent.

[edit] Natural resources

Main article: Natural resources in India

India has the world's fifth largest wind power industry, with an installed wind power capacity of 9,587 MW. Shown here is a wind farm in Muppandal, Tamil Nadu.

India's total cultivable area is 1,269,219 km² (56.78% of total land area), which is decreasing due to constant pressure from an ever growing population and increased urbanisation. India has a total water surface area of 314,400 km² and receives an average annual rainfall of 1,100 mm. Irrigation accounts for 92% of the water utilisation, and comprised 380 km² in 1974, and is expected to rise to 1,050 km² by 2025, with the balance accounted for by industrial and domestic consumers. India's inland water resources comprising rivers, canals, ponds and lakes and marine resources comprising the east and west coasts of the Indian ocean and other gulfs and bays provide employment to nearly 6 million people in the fisheries sector. In 2008, India had the world's third largest fishing industry.[89]

India's major mineral resources include coal, iron, manganese, mica, bauxite, titanium, chromite, limestone and thorium. India meets most of its domestic energy demand through its 92 billion tonnes of coal reserves (about 10% of world's coal reserves).[90]

India's huge thorium reserves — about 25% of world's reserves — is expected to fuel the country's ambitious nuclear energy program in the long-run. India's dwindling uranium reserves stagnated the growth of nuclear energy in the country for many years.[91] However, the Indo-US nuclear deal has paved the way for India to import uranium from other countries.[92] India is also believed to be rich in certain renewable sources of energy with significant future potential such as solar, wind and biofuels (jatropha, sugarcane).

[edit] Petroleum and Natural gas

ONGC platform at Mumbai High in the Arabian Sea. As of 2010, India is the world's fifth largest consumer of oil.[93]

India's oil reserves, found in Mumbai High, parts of Gujarat, Rajasthan and eastern Assam, meet 25% of the country's domestic oil demand.[22][94] India's total proven oil reserves stand at 11 billion barrels,[95] of which Mumbai High is believed to hold 6.1 billion barrels[96] and Mangala Area in Rajasthan an additional 3.6 billion barrels.[97]

In 2009, India imported 2.56 million barrels of oil per day, making it one of largest buyers of crude oil in the world.[98] The petroleum industry in India mostly consists of public sector companies such as Oil and Natural Gas Corporation (ONGC), Hindustan Petroleum Corporation Limited (HPCL) and Indian Oil Corporation Limited (IOCL). There are some major private Indian companies in oil sector such as Reliance Industries Limited (RIL) which operates the world's largest oil refining complex.[99]

[edit] Pharmaceuticals

India has a self reliant Pharmaceuticals industry. The majority of its medical consumables are produced domestically. Pharmaceutical Industry in India is dotted with companies like Ranbaxy Pharmaceutical, Dr. Reddy's Laboratories, Cipla which have created a niche for themselves at world level. India including China, Brazil, Turkey, Mexico, Russia and South Korea are called "pharmerging" countries. [100]

Today, India is an exporter to countries like the United States and Russia. In terms of the global market, India currently holds a modest 1-2% share, but it has been growing at approximately 10% per year. India is unable to capture much of the value as most of the innovation taking place is by non-Indian firms. They are developing products in their own R&D centres or outsourcing to Indian engineering services firms and getting the stuff manufactured at either their own factories or through contract manufacturing, as in pharmaceuticals.[101]

[edit] External trade and investment

Further information: Globalisation in India

[edit] Global trade relations

In March 2008, India's annual imports and exports stood at US$236 and US$155.5 billion respectively.[102] Shown here is the cargo of a container ship being unloaded at the Jawaharlal Nehru Port, Navi Mumbai.

India's economy is mostly dependent on its large internal market with external trade accounting for just 20% of the country's GDP.[103] In 2008, India accounted for 1.45% of global merchandise trade and 2.8% of global commercial services export.[104] Until the liberalization of 1991, India was largely and intentionally isolated from the world markets, to protect its economy and to achieve self-reliance. Foreign trade was subject to import tariffs, export taxes and quantitative restrictions, while foreign direct investment (FDI) was restricted by upper-limit equity participation, restrictions on technology transfer, export obligations and government approvals; these approvals were needed for nearly 60% of new FDI in the industrial sector. The restrictions ensured that FDI averaged only around US$200 million annually between 1985 and 1991; a large percentage of the capital flows consisted of foreign aid, commercial borrowing and deposits of non-resident Indians.[105] India's exports were stagnant for the first 15 years after independence, due to the predominance of tea, jute and cotton manufactures, demand for which was generally inelastic. Imports in the same period consisted predominantly of machinery, equipment and raw materials, due to nascent industrialization.

Since liberalization, the value of India's international trade has become more broad-based and has risen to 63,080,109 crores in 2003–04 from 1,250 crores in 1950–51. India's major trading partners are China, the US, the UAE, the UK, Japan and the EU.[106] The exports during April 2007 were $12.31 billion up by 16% and import were $17.68 billion with an increase of 18.06% over the previous year.[107] In 2006-07, major export commodities included engineering goods, petroleum products, chemicals and pharmaceuticals, gems and jewellery, textiles and garments, agricultural products, iron ore and other minerals. Major import commodities included crude oil and related products, machinery, electronic goods, gold and silver.[108]

India is a founding-member of General Agreement on Tariffs and Trade (GATT) since 1947 and its successor, the WTO. While participating actively in its general council meetings, India has been crucial in voicing the concerns of the developing world. For instance, India has continued its opposition to the inclusion of such matters as labour and environment issues and other non-tariff barriers into the WTO policies.[109]

[edit] Balance of payments

Cumulative Current Account Balance 1980-2008 based on the IMF data

Since independence, India's balance of payments on its current account has been negative. Since liberalisation in the 1990s (precipitated by a balance of payment crisis), India's exports have been consistently rising, covering 80.3% of its imports in 2002–03, up from 66.2% in 1990–91. India's growing oil import bill is seen as the main driver behind the large current account deficit.[110] In 2007-08, India imported 120.1 million tonnes of crude oil, more than 3/4th of the domestic demand, at a cost of $61.72 billion.[111]

Although India is still a net importer, since 1996–97 its overall balance of payments (i.e., including the capital account balance) has been positive, largely on account of increased foreign direct investment and deposits from non-resident Indians; until this time, the overall balance was only occasionally positive on account of external assistance and commercial borrowings. As a result, India's foreign currency reserves stood at $285 billion in 2008.

Due to the global late-2000s recession, both Indian exports and imports declined by 29.2% and 39.2% respectively in June 2009.[112] The steep decline was because countries hit hardest by the global recession, such as United States and members of the European Union, account for more than 60% of Indian exports.[113] However, since the decline in imports was much sharper compared to the decline in exports, India's trade deficit reduced to 252.5 billion rupee.[112]

India's reliance on external assistance and commercial borrowings has decreased since 1991–92, and since 2002–03, it has gradually been repaying these debts. Declining interest rates and reduced borrowings decreased India's debt service ratio to 4.5% in 2007.[114] In India, External Commercial Borrowings (ECBs) are being permitted by the Government for providing an additional source of funds to Indian corporates. The Ministry of Finance monitors and regulates these borrowings (ECBs) through ECB policy guidelines.[115]

[edit] Foreign direct investment in India

Rank	Country	Inflows (Million USD)	Inflows (%)
1	* Mauritius	85,178	44.24%[117]
2	* United States	18,040	9.37%
3	* United Kingdom	15,363	7.98%
4	* Netherlands	11,177	5.81%
5	* Singapore	9,742	5.06%
6	* Cyprus	5,742	3.06%

As the fourth-largest economy in the world in PPP terms, India is a preferred destination for foreign direct investments (FDI);[118] India has strengths in telecommunication, information technology and other significant areas such as auto components, chemicals, apparels, pharmaceuticals, and jewellery. Despite a surge in foreign investments, rigid FDI policies resulted in a significant hindrance. However, due to some positive economic reforms aimed at deregulating the economy and stimulating foreign investment, India has positioned itself as one of the front-runners of the rapidly growing Asia Pacific Region.[118] India has a large pool of skilled managerial and technical expertise. The size of the middle-class population stands at 300 million and represents a growing consumer market.[119]

The inordinately high investment from Mauritius is due to routing of international funds through the country given significant capital gains tax advantages; double taxation is avoided due to a tax treaty between India and Mauritius, and Mauriitus is a capital gains tax haven, effectively creating a zero-taxation FDI channel.

India's recently liberalized FDI policy (2005) allows up to a 100% FDI stake in ventures. Industrial policy reforms have substantially reduced industrial licensing requirements, removed restrictions on expansion and facilitated easy access to foreign technology and foreign direct investment FDI. The upward moving growth curve of the real-estate sector owes some credit to a booming economy and liberalized FDI regime. In March 2005, the government amended the rules to allow 100 per cent FDI in the construction business.[120] This automatic route has been permitted in townships, housing, built-up infrastructure and construction development projects including housing, commercial premises, hotels, resorts, hospitals, educational institutions, recreational facilities, and city- and regional-level infrastructure.

A number of changes were approved on the FDI policy to remove the caps in most sectors. Fields which require relaxation in FDI restrictions include civil aviation, construction development, industrial parks, petroleum and natural gas, commodity exchanges, credit-information services and mining. But this still leaves an unfinished agenda of permitting greater foreign investment in politically sensitive areas such as insurance and retailing. FDI inflows into India reached a record $19.5 billion in fiscal year 2006-07 (April-March), according to the government's Secretariat for Industrial Assistance. This was more than double the total of US$7.8bn in the previous fiscal year. The FDI inflow for 2007-08 has been reported as $24 billion[121] and for 2008-09, it is expected to be above $35 billion.[122] A critical factor in determining India's continued economic growth and realizing the potential to be an economic superpower is going to depend on how the government can create incentives for FDI flow across a large number of sectors in India.[123]

[edit] Currency

The RBI headquarters in Mumbai

Main articles: Indian rupee and Reserve Bank of India

The Indian rupee is the only legal tender accepted in India. The exchange rate as on 23 March 2010 is 45.40 INR the USD,[124] 61.45 to a EUR, and 68.19 to a GBP. The Indian rupee is accepted as legal tender in the neighboring Nepal and Bhutan, both of which peg their currency to that of the Indian rupee. The rupee is divided into 100 paise. The highest-denomination banknote is the 1,000 rupee note; the lowest-denomination coin in circulation is the 25 paise coin (it earlier had 1, 2, 5, 10 and 20 paise coins which have been discontinued by the Reserve Bank of India).[125]

The Rupee hit a record low during early 2009 on account of global recession. However, due to a strong domestic market, India managed to bounce back sooner than the western countries. Since September 2009 there has been a constant appreciation in Rupee versus most Tier 1 currencies. On 11 January 2010 Rupee went as high as 45.50 to a United states dollar and on 10 January 2010 as high as Rupee 73.93 to a British Pound. A rising rupee also prompted Government of India to buy 200 tonnes of Gold from IMF.

The RBI, the country's central bank was established on 1 April 1935. It serves as the nation's monetary authority, regulator and supervisor of the financial system, manager of exchange control and as an issuer of currency. The RBI is governed by a central board, headed by a governor who is appointed by the Central government of India.

[edit] Income and consumption

Main article: Income in India

Percentage of population living under the poverty line of $1 (PPP) a day, currently 356.35 rupees a month in rural areas (around $7.4 a month).

As of 2005:

85.7% of the population lives on less than $2.50 (PPP) a day, down from 92.5% in 1981. This is much higher than the 80.5% in Sub-Saharan Africa.[126]
75.6% of the population lives on less than $2 a day (PPP), which is around 20 rupees or $0.5 a day in nominal terms. It was down from 86.6%, but is still even more than the 73.0% in Sub-Saharan Africa.[126][127][128][129][130]
24.3% of the population earned less than $1 (PPP, around $0.25 in nominal terms) a day in 2005, down from 42.1% in 1981.[126][131]
41.6% of its population is living below the new international poverty line of $1.25 (PPP) per day, down from 59.8% in 1981.[126] The World Bank further estimates that a third of the global poor now reside in India.

Housing is modest. According to Times of India, "a majority of Indians have per capita space equivalent to or less than a 10 feet x 10 feet room for their living, sleeping, cooking, washing and toilet needs." and "one in every three urban Indians lives in homes too cramped to exceed even the minimum requirements of a prison cell in the US."[132] The average is 103 sq ft (9.6 m2) per person in rural areas and 117 sq ft (10.9 m2) per person in urban areas.[132]

Around half of Indian children are malnourished. The proportion of underweight children is nearly double that of Sub-Saharan Africa.[133][134] However, India has not had famines since the Green Revolution in the early 1970s. While poverty in India has reduced significantly, official figures estimate that 27.5%[135] of Indians still lived below the national poverty line of $1 (PPP, around 10 rupees in nominal terms) a day in 2004-2005.[136] A 2007 report by the state-run National Commission for Enterprises in the Unorganised Sector (NCEUS) found that 65% of Indians, or 750 million people, lived on less than 20 rupees per day[137] with most working in "informal labour sector with no job or social security, living in abject poverty."[138]

Since the early 1950s, successive governments have implemented various schemes, under planning, to alleviate poverty, that have met with partial success. All these programmes have relied upon the strategies of the Food for work programme and National Rural Employment Programme of the 1980s, which attempted to use the unemployed to generate productive assets and build rural infrastructure.[139] In August 2005, the Indian parliament passed the Rural Employment Guarantee Bill, the largest programme of this type in terms of cost and coverage, which promises 100 days of minimum wage employment to every rural household in all the India's 600 districts. The question of whether economic reforms have reduced poverty or not has fuelled debates without generating any clear cut answers and has also put political pressure on further economic reforms, especially those involving the downsizing of labour and cutting agricultural subsidies.[140][141] Recent statistics in 2010 point out that the number of high income households has crossed lower income households.[142]

[edit] Employment

Agricultural and allied sectors accounted for about 60% of the total workforce in 2003 same as in 1993–94. While agriculture has faced stagnation in growth, services have seen a steady growth. Of the total workforce, 8% is in the organised sector, two-thirds of which are in the public sector. The NSSO survey estimated that in 1999–2000, 106 million, nearly 10% of the population were unemployed and the overall unemployment rate was 7.3%, with rural areas doing marginally better (7.2%) than urban areas (7.7%). India's labor force is growing by 2.5% annually, but employment only at 2.3% a year.[143]

Official unemployment exceeds 9%. Regulation and other obstacles have discouraged the emergence of formal businesses and jobs. Almost 30% of workers are casual workers who work only when they are able to get jobs and remain unpaid for the rest of the time.[143] Only 10% of the workforce is in regular employment.[143] India's labor regulations are heavy even by developing country standards and analysts have urged the government to abolish them.[13][144]

Unemployment in India is characterized by chronic or disguised unemployment. Government schemes that target eradication of both poverty and unemployment (which in recent decades has sent millions of poor and unskilled people into urban areas in search of livelihoods) attempt to solve the problem, by providing financial assistance for setting up businesses, skill honing, setting up public sector enterprises, reservations in governments, etc. The decreased role of the public sector after liberalization has further underlined the need for focusing on better education and has also put political pressure on further reforms.[139][145]

Child labor is a complex problem that is basically rooted in poverty. The Indian government is implementing the world's largest child labor elimination program, with primary education targeted for ~250 million. Numerous non-governmental and voluntary organizations are also involved. Special investigation cells have been set up in states to enforce existing laws banning employment of children (under 14) in hazardous industries. The allocation of the Government of India for the eradication of child labor was $10 million in 1995-96 and $16 million in 1996-97. The allocation for 2007 is $21 million.[146]

In 2006, remittances from Indian migrants overseas made up $27 billion or about 3% of India's GDP.[147]

[edit] Economic trends

India's 300 million strong middle-class population is growing at an annual rate of 5%.[148] Shown here is a residential area in Mumbai.

In the revised 2007 figures, based on increased and sustaining growth, more inflows into foreign direct investment, Goldman Sachs predicts that "from 2007 to 2020, India's GDP per capita in US$ terms will quadruple", and that the Indian economy will surpass the United States (in US$) by 2043.[15] In spite of the high growth rate, the report stated that India would continue to remain a low-income country for decades to come but could be a "motor for the world economy" if it fulfills its growth potential.[15] Goldman Sachs has outlined 10 things that it needs to do in order to achieve its potential and grow 40 times by 2050. These are

Improve Governance
Raise Educational Achievement
Increase Quality and Quantity of Universities
Control Inflation
Introduce a Credible Fiscal Policy
Liberalize Financial Markets
Increase Trade with Neighbours
Increase Agricultural Productivity
Improve Infrastructure
Improve Environmental Quality.[149]

[edit] Issues

[edit] Agriculture

An Indian farmer

Main article: Agriculture in India

Slow agricultural growth is a concern for policymakers as some two-thirds of India's people depend on rural employment for a living. Current agricultural practices are neither economically nor environmentally sustainable and India's yields for many agricultural commodities are low. Poorly maintained irrigation systems and almost universal lack of good extension services are among the factors responsible. Farmers' access to markets is hampered by poor roads, rudimentary market infrastructure, and excessive regulation.

– World Bank: "India Country Overview 2008"[150]

The low productivity in India is a result of the following factors:

According to "India: Priorities for Agriculture and Rural Development" by World Bank, India's large agricultural subsidies are hampering productivity-enhancing investment. Overregulation of agriculture has increased costs, price risks and uncertainty. Government interventions in labor, land, and credit markets are hurting the market. Infrastructure and services are inadequate.[151]
Illiteracy, slow progress in implementing land reforms and inadequate or inefficient finance and marketing services for farm produce.
The average size of land holdings is very small (less than 20,000 m²) and is subject to fragmentation, due to land ceiling acts and in some cases, family disputes. Such small holdings are often over-manned, resulting in disguised unemployment and low productivity of labour.
Adoption of modern agricultural practices and use of technology is inadequate, hampered by ignorance of such practices, high costs and impracticality in the case of small land holdings.
World Bank says that the allocation of water is inefficient, unsustainable and inequitable. The irrigation infrastructure is deteriorating.[151] Irrigation facilities are inadequate, as revealed by the fact that only 52.6% of the land was irrigated in 2003–04,[152] which result in farmers still being dependent on rainfall, specifically the Monsoon season. A good monsoon results in a robust growth for the economy as a whole, while a poor monsoon leads to a sluggish growth.[153] Farm credit is regulated by NABARD, which is the statutory apex agent for rural development in the subcontinent.

India has many farm insurance companies that insure fruit, rice and rubber farmers in the event of natural disasters or catastrophic crop failure, under the supervision of the Ministry of Agriculture. One notable company that provides all of these insurance policies is Agriculture Insurance Company of India and it alone insures almost 20 million farmers.

India's population is growing faster than its ability to produce rice and wheat.[154] The most important structural reform for self-sufficiency is the ITC Limited plan to connect 20,000 villages to the Internet by 2013.[155] This will provide farmers with up to date crop prices for the first time, which should minimise losses incurred from neighbouring producers selling early and in turn facilitate investment in rural areas.

[edit] Corruption

Overview of the index of perception of corruption, 2007

Main article: Corruption in India

Corruption has been one of the pervasive problems affecting India. The economic reforms of 1991 reduced the red tape, bureaucracy and the Licence Raj that had strangled private enterprise and was blamed by Chakravarthi Rajagopalachari for the corruption and inefficiencies. Yet, a 2005 study by Transparency International (TI) India found that more than half of those surveyed had firsthand experience of paying bribe or peddling influence to get a job done in a public office.[156]

The Right to Information Act (2005) and equivalent acts in the Indian states, that require government officials to furnish information requested by citizens or face punitive action, computerisation of services and various central and state government acts that established vigilance commissions have considerably reduced corruption or at least have opened up avenues to redress grievances.[156] The 2009 report by Transparency International ranks India at 84th place and states that significant improvements were made by India in reducing corruption.[157][158]

[edit] Government

Main article: Government of India

The number of people employed in non-agricultural occupations in the public and private sectors. Totals are rounded. Private sector data relates to non-agriculture establishments with 10 or more employees.[139]

The current government has concluded that most spending fails to reach its intended recipients.[159] Lant Pritchett calls India's public sector "one of the world's top ten biggest problems — of the order of AIDS and climate change".[159] The Economist's 2008 article about the Indian civil service stated that the Indian central government employs around 3 million people, including "vast armies of paper-shuffling peons".[159]

At local level, administration can be worse. It is not unheard of that a majority of a state's assembly seats can be held by convicted criminals.[160] One study found that 25% of public sector teachers and 40% of public sector medical workers could not be found at the workplace. India's absence rates are one of the worst in the world.[161][162][163][164]

[edit] Education

Main article: Education in India

India has made huge progress in terms of increasing primary education attendance rate and expanding literacy to approximately two thirds of the population.[165] The right to education at elementary level has been made one of the fundamental rights under the Eighty-Sixth Amendment of 2002.[166] However, the literacy rate of 65% is still lower than the worldwide average and the country suffers from a high dropout rate.[167]

[edit] Infrastructure

Shown here is the Mumbai Pune expressway in Maharashtra.

India has built numerous new airports in recent years. Shown here is new Terminal 1D at Indira Gandhi International Airport in Delhi

In the past, development of infrastructure was completely in the hands of the public sector and was plagued by corruption, bureaucratic inefficiencies, urban-bias and an inability to scale investment.[168] India's low spending on power, construction, transportation, telecommunications and real estate, at $31 billion or 6% of GDP in 2002 had prevented India from sustaining higher growth rates. This has prompted the government to partially open up infrastructure to the private sector allowing foreign investment[139][169][170] which has helped in a sustained growth rate of close to 9% for the past six quarters.[171]

Some 600 million Indians have no mains electricity at all.[172] While 80% of Indian villages have at least an electricity line, just 44% of rural households have access to electricity.[173] According to a sample of 97,882 households in 2002, l,,lelectricity was the main source of lighting for 53% of rural households compared to 36% in 1993.[174] Some half of the electricity is stolen, compared with 3% in China. The stolen electricity amounts to 1.5% of GDP.[173][175] Almost all of the electricity in India is produced by the public sector. Power outages are common.[172] Many buy their own power generators to ensure electricity supply. As of 2005 the electricity production was at 661.6 billion kWh with oil production standing at 785,000 bbl/day. In 2007, electricity demand exceeded supply by 15%.[172] Multi Commodity Exchange has tried to get a permit to offer electricity future markets.[176]

India has the world's third largest road network in the world.[177] Container traffic is growing at 15% a year.[178] Some 60% of India's container traffic is handled by the Jawaharlal Nehru Port Trust in Navi Mumbai[citation needed]. Internet use is rare; there were only 7.57 million broadband lines in India in November 2009, however it is still growing at slower rate and is expected to boom after the launch of 3G and wimax services.[179]

Most urban cities have good water supply water 24 hours a day, while some smaller cities face water shortages in summer season. A World Bank report says it is an institutional problem in water agencies, or "how the agency is embedded in the relationships between politics and the citizens who are the consumers."[180]

[edit] Labour laws

Main article: Indian labour laws

India's labor regulations — among the most restrictive and complex in the world — have constrained the growth of the formal manufacturing sector where these laws have their widest application. Better designed labor regulations can attract more labor- intensive investment and create jobs for India's unemployed millions and those trapped in poor quality jobs. Given the country's momentum of growth, the window of opportunity must not be lost for improving the job prospects for the 80 million new entrants who are expected to join the work force over the next decade.

– World Bank: India Country Overview 2008.[150]

India's restrictive labor regulations hamper the large-scale creation of formal industrial jobs.[13][167][181]

India ranked 133th on the Ease of Doing Business Index 2010, behind countries such as China (89th), Pakistan (85th), and Nigeria (125th). The Constitution provides protection of child labor, slavery, equality of opportunities and forced labor etc. in form of fundamental rights, but the implementation of provisions cited is a matter of concern.[182]

[edit] Economic disparities

Main articles: Economic disparities in India and Poverty in India

Lagging states need to bring more jobs to their people by creating an attractive investment destination. Reforming cumbersome regulatory procedures, improving rural connectivity, establishing law and order, creating a stable platform for natural resource investment that balances business interests with social concerns, and providing rural finance are important.

– World Bank: India Country Overview 2008[150]

Slums next to high-rise commercial buildings in Kaloor, Kochi. Hundreds of people, mostly comprising migrant labourers who come to the city seeking job prospects, reside in such shabby areas.[183]

One of the critical problems facing India's economy is the sharp and growing regional variations among India's different states and territories in terms of per capita income, poverty, availability of infrastructure and socio-economic development.[184] Six low-income states - Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Orissa and Uttar Pradesh - are home to more than one third of India's population.[185]

Between 1999 and 2008, the annualized growth rates for Maharashtra (9%),[186] Gujarat (8.8%), Haryana (8.7%), or Delhi (7.4%) were much higher than for Bihar (5.1%), Uttar Pradesh (4.4%), or Madhya Pradesh (3.5%).[187] However, In 2009-10, Bihar witnessed a growth of about 12.6%, and ended up becoming the 'fastest growing state' , followed by Gujarat with a growth of 11.3%.

Poverty rates in rural Orissa (43%) and rural Bihar (40%) are some of the worst in the world.[180] On the other hand, rural Haryana (5.7%) and rural Punjab (2.4%) compare well with middle-income countries.[180]

The five-year plans have attempted to reduce regional disparities by encouraging industrial development in the interior regions, but industries still tend to concentrate around urban areas and port cities[188] After liberalization, the more advanced states are better placed to benefit from them, with infrastructure like well developed ports, urbanisation and an educated and skilled workforce which attract manufacturing and service sectors. The union and state governments of backward regions are trying to reduce the disparities by offering tax holidays, cheap land, etc., and focusing more on sectors like tourism, which although being geographically and historically determined, can become a source of growth and is faster to develop than other sectors.[189][190]

[edit] See also

*	India portal

[edit] Notes

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^ "Indian economy grows by 8.8% in Q1". Economic Times.com. 31 Aug 2010. http://economictimes.indiatimes.com/news/economy/indicators/Indian-economy-grows-by-88-in-Q1/articleshow/6466705.cms.
^ a b "Food inflation falls to 12.63%". economictimes.indiatimes.com. 8 Jul 2010. http://economictimes.indiatimes.com/news/economy/indicators/Food-inflation-at-953-percent-year/year-as-on-July-24/articleshow/6260127.cms. Retrieved 2010-04-05.
^ "One-third of world's poor in India: Survey". World Bank. Times of India. http://timesofindia.indiatimes.com/india/One-third-of-worlds-poor-in-India-Survey/articleshow/3409374.cms. Retrieved 2010-07-12.
^ "Economy to achieve double digit growth in 2-3 years: Manmohan". The Hindu. 2010-07-03. http://www.thehindu.com/business/Economy/article498804.ece.
^ a b "Doing Business in India 2010". World Bank. http://www.doingbusiness.org/ExploreEconomies/?economyid=89. Retrieved 2010-08-20.
^ Ralph Droms, Public dept of India as of 2009, December 2009.
^ "Field Listing :: Economic Aid - Recipient by country". CIA. https://www.cia.gov/library/publications/the-world-factbook/fields/2064.html. Retrieved 2008-11-17.
^ "CIA — The World Factbook — Rank Order — GDP (purchasing power parity)". Cia.gov. 2009-03-05. https://www.cia.gov/library/publications/the-world-factbook/rankorder/2001rank.html. Retrieved 2009-03-13.
^ "India Vision 2020" (PDF). http://planningcommission.gov.in/reports/genrep/pl_vsn2020.pdf. Retrieved 2009-12-12.
^ Eugene M. Makar (2007). An American's Guide to Doing Business in India.
^ a b c d e f "Economic survey of India 2007: Policy Brief" (PDF). OECD. http://www.oecd.org/dataoecd/17/52/39452196.pdf. Retrieved 2009-06-21.
^ a b Gargan, Edward A. (1992-08-15). "India Stumbles in Rush to a Free Market Economy". New York Times. http://www.nytimes.com/1992/08/15/world/india-stumbles-in-rush-to-a-free-market-economy.html.
^ a b c "India's Rising Growth Potential" (PDF). Goldman Sachs. 2007. http://www.usindiafriendship.net/viewpoints1/Indias_Rising_Growth_Potential.pdf. Retrieved 2009-06-21.
^ "India now second fastest growing economy". Australiannews.net. http://www.australiannews.net/story/366072. Retrieved 2010-04-05.
^ Maurice R. Landes (2009-12-17). "USDA - India". Ers.usda.gov. http://www.ers.usda.gov/Briefing/India/. Retrieved 2010-04-05.
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^ a b "33% of Indians live in less space than US prisoners". Times of India. 2008. http://timesofindia.indiatimes.com/33_of_Indians_live_in_less_space_than_US_prisoners/articleshow/3753189.cms.
^ "India: Undernourished Children: A Call for Reform and Action". World Bank. http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/0,,contentMDK:20916955~pagePK:146736~piPK:146830~theSitePK:223547,00.html.
^ "Malnutrition Among Indian Children Worse Than in Sub-Saharan Africa". Medindia. http://www.medindia.net/news/Malnutrition-Among-Indian-Children-Worse-Than-in-Sub-Saharan-Africa-30955-1.htm.
^ This figure is extremely sensitive to the surveying methodology used. The Uniform Recall Period (URP) gives 27.5%. The Mixed Recall Period (MRP) gives a figure of 21.8%
^ "Microsoft Word - Press Release - March 2007-Approved.doc" (PDF). http://www.planningcommission.gov.in/news/prmar07.pdf. Retrieved 2010-04-05.
^ "NCEUS Report" (PDF). http://nceus.gov.in/Condition_of_workers_sep_2007.pdf. Retrieved 2009-06-21.
^ "Nearly 80% of India Lives On Half Dollar A Day". Reuters. 10 August 2007. http://www.reuters.com/article/latestCrisis/idUSDEL218894. Retrieved 2007-08-15.
^ a b c d "Economic Survey 2004–2005". http://indiabudget.nic.in/es2004-05/esmain.htm. Retrieved 2006-07-15.
^ Datt, Ruddar & Sundharam, K.P.M.. "22". Indian Economy. pp. 367,369,370.
^ "Jawahar gram samriddhi yojana". http://rural.nic.in/jgsyg.htm. Retrieved 2005-07-09.
^ 'India has more rich people than poor now'
^ a b c "Growing Unemployment Problem in India" (PDF). http://newsgroups.derkeiler.com/pdf/Archive/Soc/soc.culture.pakistan/2008-09/msg00054.pdf. Retrieved 2009-06-21.
^ Why India needs labour law reform. BBC
^ Datt, Ruddar & Sundharam, K.P.M.. "24". Indian Economy. pp. 403–405.
^ Embassy of India. "Child Labor and India — Embassy of India". Indianembassy.org. http://www.indianembassy.org/policy/Child_Labor/childlabor.htm#intro. Retrieved 2009-03-13.
^ "Remittances from Indians abroad push India to the top". 2007. http://www.nrirealtynews.com/stories/oct07/remittances-from-indians-abroad-push-india-to-top.php.
^ Marketing in the 21st Century: New world marketing - By Bruce David Keillor. Books.google.com. 2007. ISBN 9780275992767. http://books.google.com/?id=4bXMvrwE_1EC&pg=PA83&dq=india+fastest+growing+middle+class. Retrieved 2010-04-05.
^ "The top 10 challenges for India". Rediff. http://specials.rediff.com/money/2008/jun/17slid01.htm.
^ a b c "India Country Overview 2008". World Bank. 2008. http://www.worldbank.org.in/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/INDIAEXTN/0,,contentMDK:20195738~menuPK:295591~pagePK:141137~piPK:141127~theSitePK:295584,00.html.
^ a b "India: Priorities for Agriculture and Rural Development". World Bank. http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/EXTSAREGTOPAGRI/0,,contentMDK:20273764~menuPK:548214~pagePK:34004173~piPK:34003707~theSitePK:452766,00.html.
^ Multiple authors (2004). Agricultural Statistics at a Glance 2004. http://dacnet.nic.in/eands/4.6(a)All%20lndia%20Area,%20Production%20and%20Yield%20of%20Rice.xls.
^ Sankaran, S. "28". Indian Economy: Problems, Policies and Development. pp. 492–493.
^ Sengupta, Somini (22 June 2008). "The Food Chain in Fertile India, Growth Outstrips Agriculture". New York Times. http://www.nytimes.com/2008/06/22/business/22indiafood.html?_r=1. Retrieved 2010-03-29.
^ "India on the Move". India Reborn. 2009-02-17. No. 2, season 1.
^ a b Transparency International India. "India Corruption Study 2005" (PDF). Centre for Media Studies. http://www.cmsindia.org/cms/events/corruption.pdf. Retrieved 2008-03-14.
^ "2009 Corruption Perceptions Index reinforces link between poverty and corruption". Transparency International. http://www.transparency.org/policy_research/surveys_indices/cpi/2009/cpi_2009_table. Retrieved 2008-03-15.
^ "CPI Table". Transparency International. http://www.transparency.org/policy_research/surveys_indices/cpi/2009/cpi_2009_table. Retrieved 2008-03-15.
^ a b c India's civil service: Battling the babu raj 6 March 2008 The Economist
^ The criminalisation of Indian democracy (2 May 2007). "Jo Johnson". Financial Times. http://www.ft.com/cms/s/21d0f5f8-f8c1-11db-a940-000b5df10621.html. Retrieved 2007-05-12.
^ "Teachers and Medical Worker Incentives in India by Karthik Muralidharan" (PDF). http://econ.ucsd.edu/~kamurali/teachers%20and%20medical%20worker%20incentives%20in%20india.pdf. Retrieved 2009-06-21.
^ Combating India's truant teachers. BBC
^ Private Schools in Rural India: Some Facts (presentation) / Public and Private Schools in Rural India (a paper). Karthik Muralidharan, Michael Kremer.
^ "Teacher absence in India: A snapshot" (PDF). http://globetrotter.berkeley.edu/macarthur/inequality/papers/KremerTeacherAbsenceinIndia.pdf. Retrieved 2009-06-21.
^ "Education in India". World Bank. http://www.worldbank.org.in/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/INDIAEXTN/0,,contentMDK:21493265~pagePK:141137~piPK:141127~theSitePK:295584,00.html.
^ 86th Amendment Act, 2002.
^ a b "A special report on India: An elephant, not a tiger". Economist. 11 December 2008. http://www.economist.com/specialreports/displayStory.cfm?story_id=12749735.
^ Sankaran, S (1994). Indian Economy: Problems, Policies and Development. Margham Publications. ISBN.
^ "Infrastructure the missing link". CNN. 2004-10-06. http://edition.cnn.com/2004/WORLD/asiapcf/09/03/india.eye.infra/. Retrieved 2005-08-14.
^ "Infrastructure in India: Requirements and favorable climate for foreign investment". http://www.asiatradehub.com/india/intro.asp. Retrieved 2005-08-14.
^ "India's Economic Growth Unexpectedly Quickens to 9.2%". Bloomberg. http://bloomberg.com/apps/news?pid=20601087&sid=ayAK98NMbmCA&refer=home.
^ a b c "A special report on India: Creaking, groaning: Infrastructure is India's biggest handicap". The Economist. 11 December 2008. http://www.economist.com/specialreports/displaystory.cfm?story_id=12749787.
^ a b "Reforming the Power Sector: Controlling Electricity Theft and Improving Revenue" (PDF). The World Bank. http://rru.worldbank.org/documents/publicpolicyjournal/272bhatia_Gulati.pdf. Retrieved 2009-06-21.
^ "Housing condition in India: Household amenities and other characteristics (July — September 2002)". Government of India. http://www.mospi.nic.in/nss_58round_press_note_6june05.htm.
^ "India struggles with power theft". BBC. 2006-03-15. http://news.bbc.co.uk/2/hi/business/4802248.stm. Retrieved 2010-01-03.
^ "MCX move to launch electricity future faces legal hurdle". The Financial Express. http://www.financialexpress.com/news/mcx-move-to-launch-electricity-future-faces-legal-hurdle/401592/.
^ "Infrastructure Rankings". https://www.cia.gov/library/publications/the-world-factbook/rankorder/2085rank.html.
^ "Ageing Indian infrastructure causes congestion". Melbourne: The Age. 2005-09-22. http://www.theage.com.au/news/business/ageing-indian-infrastructure-causes-congestion/2005/09/21/1126982123165.html.
^ "Tele-base soars to 543m as mobile cos add record 17.65m in Nov" (doc). Economic Times. http://economictimes.indiatimes.com/News/News-By-Industry/Telecom/Tele-base-soars-to-543m-as-mobile-cos-add-record-1765m-in-Nov/articleshow/5370510.cms. Retrieved 23 December 2009.
^ a b c "Development Policy Review". World Bank. http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/0,,contentMDK:20980493~pagePK:146736~piPK:146830~theSitePK:223547,00.html.
^ "Why India needs labour law reform". BBC. 2005-06-27. http://news.bbc.co.uk/2/hi/south_asia/4103554.stm. Retrieved 2010-01-03.
^ [Sapovadia, Vrajlal K. and Mattioli, Maria C., Laws of Labor: Core Labor Standards and Global Trade. International Trade, Vol. 26, No. 2, June 2004. Available at SSRN: http://ssrn.com/abstract=711542]
^ "BBC News Online | Business | Winners and losers as India booms". News.bbc.co.uk. 2007-05-21. http://news.bbc.co.uk/nolpda/ukfs_news/hi/newsid_6677000/6677645.stm. Retrieved 2008-11-03.
^ Datt, Ruddar & Sundharam, K.P.M.. "27". Indian Economy. pp. 471–472.
^ "Country Strategy for India (CAS) 2009-2012" (PDF). World Bank. http://www.ukibc.com/ukindia2/files/India60.pdf. Retrieved 2009-06-21.
^ "Maharashtra poised for 9 percent growth in 2007-08". Thaindian.com. 2008-03-18. http://www.thaindian.com/newsportal/business/maharashtra-poised-for-9-percent-growth-in-2007-08_10028858.html. Retrieved 2010-04-05.
^ "A special report on India: Ruled by Lakshmi". The Economist. 11 December 2008. http://www.economist.com/surveys/displaystory.cfm?story_id=12749719&fsrc=rss.
^ Bharadwaj, Krishna (1991). "Regional differentiation in India". in Sathyamurthy, T.V. (ed.). Industry & agriculture in India since independence. Oxford University Press. pp. 189–199. ISBN 0-19-564394-1.
^ Sachs, D. Jeffrey; Bajpai, Nirupam and Ramiah, Ananthi (2002) (PDF). Understanding Regional Economic Growth in India. Working paper 88. Archived from the original on 2007-07-01. http://web.archive.org/web/20070701042205/http://www2.cid.harvard.edu/cidwp/088.pdf.
^ Kurian, N.J.. "Regional disparities in india". http://planningcommission.nic.in/reports/sereport/ser/vision2025/regdsprty.doc. Retrieved 2005-08-06.

[edit] References

Books

Alamgir, Jalal (2008). India's Open-Economy Policy. Routledge. ISBN 9780415776844.
Bharadwaj, Krishna (1991). "Regional differentiation in India". in Sathyamurthy, T.V. (ed.). Industry & agriculture in India since independence. Oxford University Press. pp. 189–199. ISBN 0195643941.
Kumar, Dharma (Ed.) (1982). The Cambridge Economic History of India (Volume 2) c. 1757 - c. 1970. Penguin Books.
Nehru, Jawaharlal (1946). Discovery of India. Penguin Books. ISBN 0-14-303103-1.
Roy, Tirthankar (2000). The Economic History of India. Oxford University Press. ISBN 0-19-565154-5.
Sankaran, S (1994). Indian Economy: Problems, Policies and Development. Margham Publications.

Papers

Bernardi, Luigi and Fraschini, Angela (2005). Tax System And Tax Reforms In India. Working paper n. 51. http://ideas.repec.org/p/uca/ucapdv/45.html.
Centre for Media Studies (2005) (PDF). India Corruption Study 2005: To Improve Governance Volume – I: Key Highlights. Transparency International India. http://www.prajanet.org/newsroom/internal/tii/ICS2k5_Vol1.pdf. Retrieved 2009-06-21.
Ghosh, Jayati. "Bank Nationalisation: The Record". Macroscan. http://www.macroscan.com/cur/jul05/cur210705Bank_Nationalisation.htm. Retrieved 2005-08-05.
Gordon, Jim and Gupta, Poonam (2003) (PDF). Understanding India's Services Revolution. 12 November 2003. http://www.imf.org/external/np/apd/seminars/2003/newdelhi/gordon.pdf. Retrieved 2009-06-21.
Kelegama, Saman and Parikh, Kirit (2000). Political Economy of Growth and Reforms in South Asia. Second Draft. http://www.eldis.org/static/DOC12473.htm.
Panagariya, Arvind (2004). India in the 1980s and 1990s: A Triumph of Reforms. http://ideas.repec.org/p/wpa/wuwpit/0403005.html.
Rodrik, Dani and Subramanian, Arvind (2004) (PDF). From "Hindu Growth" To Productivity Surge: The Mystery Of The Indian Growth Transition. http://ksghome.harvard.edu/~drodrik/IndiapaperdraftMarch2.pdf. Retrieved 2009-06-21.
Sachs, D. Jeffrey; Bajpai, Nirupam and Ramiah, Ananthi (2002) (PDF). Understanding Regional Economic Growth in India. Working paper 88. Archived from the original on 2007-07-01. http://web.archive.org/web/20070701042205/http://www2.cid.harvard.edu/cidwp/088.pdf.
Srinivasan, T.N. (2002) (PDF). Economic Reforms and Global Integration. 17 January 2002. http://www.econ.yale.edu/%7Esrinivas/ec_reforms.pdf. Retrieved 2009-06-21.
Williamson, John and Zagha, Roberto (2002) (PDF). From the Hindu Rate of Growth to the Hindu Rate of Reform. Working Paper No. 144. Center for research on economic development and policy reform. http://scid.stanford.edu/pdf/credpr144.pdf.

Government publications

"Economic Survey 2004–2005". http://indiabudget.nic.in/es2004-05/esmain.htm. Retrieved 2005-07-15.
"History of the Planning Commission". http://planningcommission.nic.in/aboutus/history/about.htm. Retrieved 2005-07-22.
"India & the World Trade Organization". http://www.indianembassy.org/policy/WTO/overview.html. Retrieved 2005-07-09.
"Jawahar gram samriddhi yojana". http://rural.nic.in/jgsyg.htm. Retrieved 2005-07-09.
Kurian, N.J.. "Regional disparities in india". http://planningcommission.nic.in/reports/sereport/ser/vision2025/regdsprty.doc. Retrieved 2005-08-06.
Multiple authors (2004) (PDF). Agricultural Statistics at a Glance 2004. http://agricoop.nic.in/statatglance2004/AtGlance.pdf. Retrieved 2009-06-21.

News

"That old Gandhi magic". The Economist. 27 November 1997. http://economist.com/displaystory.cfm?story_id=S%26%29H%2C%2BPQ%27%25%0A.
"Indif_real_GDP_per_capitaa says 21 of 29 states to launch new tax". Daily Times. 25 March 2005. http://www.dailytimes.com.pk/default.asp?page=story_25-3-2005_pg5_13.
"Economic structure". The Economist. 6 October 2003. http://www.economist.com/countries/India/profile.cfm?folder=Profile%2DEconomic%20Structure.
"Indian manufacturers learn to compete". The Economist. 12 February 2004. http://www.economist.com/displaystory.cfm?story_id=S%27%298%3C%2FPQ%3B%21%21P%214%0A.
"India's next 50 years". The Economist. 14 August 1997. http://economist.com/displaystory.cfm?story_id=S%26%29H8%2FRQ%3B%22%0A.
"The plot thickens". The Economist. 31 May 2001. http://economist.com/displaystory.cfm?story_id=S%26%288%20%2BRQ%3F%24%0A.
"The voters' big surprise". The Economist. 13 May 2004. http://economist.com/displaystory.cfm?story_id=S%27%2984%2BRQ3%2B%21%40%20%2C%0A.
"Regional stock exchanges – Bulldozed by the Big Two". http://www.thehindubusinessline.com/businessline/2001/07/20/stories/042062cr.htm. Retrieved 2005-08-10.
"Infrastructure the missing link". CNN. 2004-10-06. http://edition.cnn.com/2004/WORLD/asiapcf/09/03/india.eye.infra/. Retrieved 2005-08-14.
"Of Oxford, economics, empire, and freedom". The Hindu. 2 October 2005. http://www.hindu.com/2005/07/10/stories/2005071002301000.htm.

Articles

[Media:Economic Development of India.pdf "Economic Development of India"] (PDF). Media:Economic Development of India.pdf. Retrieved 17 May 2007.
"Milton Friedman on the Nehru/Mahalanobis Plan". http://www.indiapolicy.org/debate/Notes/fried_opinion.html. Retrieved 2005-07-16.
"Forex reserves up by $88 mn". http://www.business-standard.com/bsonline/storypage.php?bKeyFlag=BO&autono=9047. Retrieved 2005-08-10.
"CIA — The World Factbook". https://www.cia.gov/library/publications/the-world-factbook/geos/in.html. Retrieved 2005-08-02.
"Infrastructure in India: Requirements and favorable climate for foreign investment". http://www.asiatradehub.com/india/intro.asp. Retrieved 2005-08-14.

[edit] External links

*	Wikimedia Commons has media related to: Economy of India

*	Wikiquote has a collection of quotations related to: Economy of India

Government of India websites

Finance Ministry of India
India in Business- Official website for Investment and Trade in India
Reserve Bank of India's database on the Indian economy

Publications and statistics

World Bank - India Country Overview
Ernst & Young 2006 report on doing Business in India
CIA - The World Factbook – India
India Economic Scan

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