THE
Introduction and Policy Recommendations
To learn more about MIEPA, click here
Several foreign born students living in California have completed a study of their home country governments' economic policies as compared to the MIEPA list of policies as outlined above. The study on India is shown below. The ratings herein are based on the following rating scale:
RATING SCALE
5.0 Perfect Facilitation of Wealth Creation
4.0 Midway between Perfect and Neutral
3.0 Neutral Effect on Wealth Creation
2.0 Midway between Neutral and Obstructionist
1.0 Perfectly Obstructionist to Wealth Creation
[Rating scale copyright Mike P. McKeever, 2009. Used herein with permission]
To read a disclaimer about the analysis in this file, scroll to the bottom of the file.
INDIA:
Comparison of Indian economic policies to MIEPA criteria as prepared by native student of India, Vinnie Mehta, studying in San Francisco in Spring, 2009.
RATING SUMMARY
POLICY NUMBER RAW SCORE ADJUSTED SCORE POSSIBLE PERCENTAGE
1 2.0 6.0 15.0 40%
2 4.0 12.0 15.0 80
3 4.0 12.0 15.0 80
4 2.0 6.0 15.0 40
5 4.5 13.5 15.0 90
6 4.5 13.5 15.0 90
7 2.5 7.5 15.0 50
8 2.5 7.5 15.0 50
9 2.0 6.0 15.0 40
10 3.0 9.0 15.0 60
11 4.0 12.0 15.0 80
12 3.5 10.5 15.0 60
13 3.5 7.0 10.0 70
14 4.0 8.0 10.0 80
15 3.5 7.0 10.0 70
16 4.5 9.0 10.0 90
17 4.0 8.0 10.0 80
18 4.5 9.0 10.0 90
19 4.5 9.0 10.0 90
20 3.0 6.0 10.0 60
21 4.0 8.0 10.0 80
22 5.0 10.0 10.0 100
23 3.5 7.0 10.0 70
24 2.5 5.0 10.0 50
25 2.5 5.0 10.0 50
26 4.5 9.0 10.0 90
27 4.0 8.0 10.0 80
28 5.0 10.0 10.0 100
29 3.0 3.0 5.0 60
30 2.0 2.0 5.0 40
31 4.5 4.5 5.0 90
32 5.0 5.0 5.0 100
33 4.0 4.0 5.0 80
34 2.0 2.0 5.0 40
TOTAL 121.5 261.0 375.0 69.6%
===== ====== ===== =====
Return to MIEPA's Home Page
INDIVIDUAL POLICIES
1. Freedom from Internal Control: 2.0
INDIA continues to systematically undermine its global competitiveness by undermining its internal competitiveness. The internal markets for human energy and effort, information, credit, materials, infrastructure and utilities are subjected to wholly unnecessary controls. These controls are often repressive; they tilt economic profits towards rent-seekers and away from the risk-takers. The controls undermine the resourcefulness and competitiveness of India's unincorporated and produce sectors.
The repression of the internal markets for human minds and muscle, money and materials has earned India a global rank of 45 in the dimension pertinent to the freedom of internal markets. As a consequence, the domestic business environment has been undermined. India's domestic business environment is ranked 44 in the world. Therefore, not surprisingly, India's global competitiveness rank is 44.
http://www.blonnet.com/2005/01/13/stories/2005011300110800.htm
http://towardfreedom.com/home/content/view/1044/60/
2. Freedom of Speech: 4.0
The Constitution provides for freedom of speech and of the press, and the Government generally respected these rights in practice; however, there were some limitations. A vigorous and growing press reflected a wide variety of political, social, and economic beliefs. Newspapers and magazines regularly published, and television channels broadcast, investigative reports and allegations of government wrongdoing, and the press generally promoted human rights and criticized perceived government lapses.
Under the Official Secrets Act, the Government may restrict publication of sensitive stories or suppress criticism of its policies. On January 10, the Government found that the 2002 detention under the Act of Syed Iftikhar Gilani was unjustified and released him.
In January, the Government passed a Freedom of Information law. This law allows citizens to request and receive documents from the Government that are considered to be in the public domain.
http://en.wikipedia.org/wiki/Fundamental_Rights_in_India http://www.ncbuy.com/reference/country/humanrights.html?code=in&sec=2a
3. Police Force: 4.0
The crime graph in major cities is falling. Police force is doing their best to make it till nill.The Central Reserve Police Force is an armed Force of the Union of India, with the basic role of striking reserve to assist the State/Union Territories in Police operations to maintain law and order and contain insurgency. Its role is that of a catalyst in maintaining law & order, and returns to barracks once this objective is achieved. The force is also being used for various police duties in various States. During the year 1999-2000 a total of 374 militants of various outfits were killed and 6981 militants were apprehended by the Force. Besides above the Force recovered 1299 arms of various type and 51326 rounds of ammunition during this period. The Central Reserve Police Force, established under the Central Reserve Police Force Act of 1949 (66 of 1949), includes some 165,000 personnel organized into 70 battalions, including seven rapid action battalions and two women battalions. The force is lightly armed and deployable throughout the country, serving as a back-up for the State Police should situations get out of control. Though initially created to respond to riots and civil disorder, orver time the Force has become involved in counter-insurgency operations for they have proven poorly prepared.
http://www.globalsecurity.org/military/world/india/crpf.htm http://timesofindia.indiatimes.com/Cities/Allahabad/Crime-graph-drops-in-city/articleshow/4401478.cms
4. Private Property: 2.0
Should the right to property be restored to the status of a fundamental right so that citizens are able to challenge state acquisition of land? This has been the subject of a long-standing debate. The right to property was a fundamental right till 1978 when it was repealed through the Constitution Amendment Act. Thereafter, the acquisition of private property by the government could not be challenged in the courts on the basis of constitutional law.
On February 27, 2009, the Supreme Court of India, reacting to a petition, asked the government why the right to property should not be allowed as a fundamental right. As a result, the issue whether governments should have the right to acquire private property has once again come to the fore. The government is already facing a number of PILs on land acquisition, including one on the SEZ policy.In this case, Sanjiv Agarwal, founder of a Kolkata-based NGO, has stated in his petition that the downgrading of the right to property has granted the government the licence to abuse its power of eminent domain by taking over private property for purported public use.
http://indialawyers.wordpress.com/2009/03/09/of-property-rights-and-wrongs/
5. Commercial Banks: 4.5
Banks play the major role for people in India. It helps them make deposits and pays interest over it, and also lends money out to others. Banking in India originated in the last decades of the 18th century. The oldest bank in existence in India is the State Bank of India, a government-owned bank that traces its origins back to June 1806 and that is the largest commercial bank in the country. Central banking is the responsibility of the Reserve Bank of India, which in 1935 formally took over these responsibilities from the then Imperial Bank of India, relegating it to commercial banking functions. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers. In 1969 the government nationalized the 14 largest commercial banks; the government nationalized the six next largest in 1980.
http://en.wikipedia.org/wiki/Banking_in_India http://www.rbi.org.in/scripts/BS_SpeechesView.aspx?Id=313
6. Communication Systems: 4.5
general assessment: recent deregulation and liberalization of telecommunications laws and policies have prompted rapid growth; local and long distance service provided throughout all regions of the country, with services primarily concentrated in the urban areas; steady improvement is taking place with the recent admission of private and private-public investors, but combined fixed and mobile telephone density remains low at about 30 for each 100 persons nationwide and much lower for persons in rural areas; rapid growth in cellular service with modest declines in fixed lines.
domestic: mobile cellular service introduced in 1994 and organized nationwide into four metropolitan areas and 19 telecom circles each with about three private service providers and one state-owned service provider; in recent years significant trunk capacity added in the form of fiber-optic cable and one of the world's largest domestic satellite systems, the Indian National Satellite system (INSAT), with 6 satellites supporting 33,000 very small aperture terminals (VSAT)
international: country code - 91; a number of major international submarine cable systems, including Sea-Me-We-3 with landing sites at Cochin and Mumbai (Bombay), Sea-Me-We-4 with a landing site at Chennai, Fiber-Optic Link Around the Globe (FLAG) with a landing site at Mumbai (Bombay), South Africa - Far East (SAFE) with a landing site at Cochin, the i2i cable network linking to Singapore with landing sites at Mumbai (Bombay) and Chennai (Madras), and Tata Indicom linking Singapore and Chennai (Madras), provide a significant increase in the bandwidth available for both voice and data traffic; satellite earth stations - 8 Intelsat (Indian Ocean) and 1 Inmarsat (Indian Ocean region); 9 gateway exchanges operating from Mumbai (Bombay), New Delhi, Kolkata (Calcutta), Chennai (Madras), Jalandhar, Kanpur, Gandhinagar, Hyderabad, and Ernakulam (2008)
http://www.indexmundi.com/India/telephone_system.html
7. Transportation: 2.5
India is not a country most foreigners can drive in. The traffic can be chaotic and daunting, with herds of cattle often bringing all movement to a halt. The choice of driver and vehicle is of utmost importance to ensure the success of a tour. The best part is everything is easily locatable and most of the transportation services are available for others now.
http://www.india-welcomes.com/transport.html
8. Education: 2.5
Education in India has a history stretching back to the ancient urban centres of learning at Taxila and Nalanda. Western education became ingrained into Indian society with the establishment of the British Raj. Education in the Republic of India falls under the control of both the central government and the states, with some responsibilities lying with the centre and the state having autonomy for others. The various articles of the Indian constitution provide for education as a fundamental right.
India has made huge progress in terms of increasing primary education attendance rate and expanding literacy to approximately two thirds of the population.[1] However, education is still far behind developing countries such as China or Thailand. Most children never attend secondary schools.[1] An optimistic estimate is that only one in five job-seekers in India has ever had any sort of vocational training.
9. Social Mobility: 2.0
No aspect of Indian history has excited more controversy than India's history of social relations. Western ideologists and Western-influenced Indian intellectuals have seized upon caste divisions, untouchability, religious obscurantism, and practices of dowry and sati as distinctive evidence of India's perennial backwardness. For many Ideologists, these social ills have literally come to define India - and have become almost the exclusive focus of their writings on India. They were right in the past but today’s modern time, this is not helpful.
During the colonial period, it served the interests of the British (and their European cohorts) to exaggerate the democratic character of their own societies while diminishing any socially redeeming features of society in India (and other colonized nations). Social divisions and inequities were a convenient tool in the arsenal of the colonizers. On the one hand, tremendous tactical gains could be achieved by playing off one community against the other. On the other hand, there were also enormous psychological benefits in creating the impression that India was a land rife with uniquely abhorrent social practices that only an enlightened foreigner could attempt to reform. India's social ills were discussed with a contemptuous cynicism and often with a willful intent to instill a sense of deep shame and inferiority.
http://india_resource.tripod.com/social.htm http://www.econ.yale.edu/seminars/labor/lap05-06/Rosenzweig091605.pdf
10.Freedom from Outside Control: 3.0
Rights which are considered essential or fundamental for the well-being of a person are called Fundamental Rights. The Fundamental Rights in India enshrined in the Part III of the Constitution of India guarantee civil liberties such that all Indians can lead their lives in peace and harmony as citizens of India. These include individual rights common to most liberal democracies, such as equality before law, freedom of speech and expression, freedom of association and peaceful assembly, freedom to practice religion, and the right to constitutional remedies for the protection of civil rights by means of writs such as habeas corpus. Violations of these rights result in punishments as prescribed in the Indian Penal Code, subject to discretion of the judiciary. The Fundamental Rights are defined as basic human freedoms which every Indian citizen has the right to enjoy for a proper and harmonious development of personality. These rights universally apply to all citizens, irrespective of race, place of birth, religion, caste, creed, color or sex. They are enforceable by the courts, subject to certain restrictions. The Rights have their origins in many sources, including England's Bill of Rights, the United States Bill of Rights and France's Declaration of the Rights of Man.
http://en.wikipedia.org/wiki/Fundamental_Rights_in_India http://en.wikipedia.org/wiki/Civil_liberties
11.Foreign Currency Transactions: 4.0
Foreign exchange transactions in India have become more liberalized with the Foreign Exchange Management Act, 1999 (FEMA) which came into operation as of 1st June 2000.
Foreign exchange dealers in India today have been given powers of making all types of remittances in foreign exchange subject to present rules.
The previous requirements of seeking Reserve Bank of India permission has been eliminated for most transactions.
I remember leaving India in 1970 when I was allowed to purchase only 8 dollars in foreign exchange for my travel abroad. Things have indeed changed today in India as far as foreign currency transactions are concerned. Here are some of the significant provisions from FEMA
http://www.nriinformation.com/foreign_exchange.htm http://shabbir.in/foreign-currency-transaction/
12. Border Control: 3.5
Specifically, the term Line of Control (LOC) refers to the military control line between the Indian- and Pakistani-controlled parts of the former princely state of Jammu and Kashmir - a line which, still to this day, does not constitute a legally recognized international boundary but is the de-facto border. Originally known as the "Cease-fire Line", it was redesignated as the "Line of Control" following the Simla Agreement, which was signed in December 1971. The part of the former princely state that is under Indian control is known as the State of Jammu and Kashmir. The two parts of the former princely state that are under Pakistani control are known as the Federally Administered Northern Areas (FANA) and Azad Jammu and Kashmir (AJK).
http://en.wikipedia.org/wiki/Line_of_control http://www.searo.who.int/LinkFiles/Cross_Border_Activites_chp-2.pdf
13. Currency: 3.5
The rupee (Hindi: ?????) (code: INR) is the currency of India. The issuance of the currency is controlled by the Reserve Bank of India. The most commonly used symbols for the rupee are Rs, ? and ??. The ISO 4217 code for the Indian rupee is INR. On 5 March 2009 the Indian Government announced a contest to create a symbol for the Rupee. The modern rupee is subdivided into 100 paise (singular paisa).
In most parts of India, the rupee is known as the rupee, rupaya (Hindi), roopayi in Telugu(??????) and Kannada(??????), rubai in Tamil(??????), roopa in Malayalam(???) or one of the other terms derived from the Sanskrit rupyakam (Devanagari: ???????), raupya meaning silver; rupyakam meaning (coin) of silver. However, in West Bengal, Tripura, Orissa, and Assam, the Indian rupee is officially known by names derived from the Sanskrit Tanka. Thus, the rupee is called ???? Taka in Bengali, ??? tôka in Assamese, and ????? Tôngka in Oriya, with the symbol T, and is written as such on Indian banknotes.
http://en.wikipedia.org/wiki/Indian_rupee http://wwp.greenwichmeantime.com/time-zone/asia/india/currency.htm
14.Cultural, Language Homogeneity: 4.0
With the increasing trend of globalization, the impact of globalization has lead to a fast changing environment the boundaries for business is diminishing day by day so is the movement of people between different countries and cultures. The requirements of multinational organizations like expansion plans in international market has continuingly increased the need to understand the cultural dimensions of different countries to achieve better results. Therefore the companies are required to understand a national culture’s impact on areas like communication in multicultural teams in different countries which has a high degree of effect on team performance. So our research question revolves around this topic as “How does culture influence communication in multi cultural teams”. This thesis makes an attempt to investigate the influence of national cultures on communication in project teams in China and India by focusing on construction industry based on a number of factors including Hofstede’s (1980) cultural dimensional framework. The researchers intend to explore the cultural factors having major impact on communication in multicultural project teams of both countries. Throughout our research and study, useful lessons on national cultures impact on communication can be drawn for multicultural project team in China and India. It can provide a better insight for the project teams to have concern for and understand why people from different countries and cultures react or respond to various situations in a different manner, giving high emphasis to communication process.
http://www.essays.se/essay/bbb5ebe452/ http://www.estatevaults.com/bol/archives/2006/08/21/the_importance.html
15. Political Effectiveness: 3.5
In recent years, successive Indian Governments have sought to improve the performance of these programmes by decentralizing their administration, vesting village governments with greater responsibility for their monitoring and oversight. An academic literature hypothesizes that socioeconomic divisions within villages and the weak political strength of the poor reduces the effectiveness of decentralized programmes since, under these conditions, elites are able to 'capture' funds intended for the poor. This paper argues that the effect of administrative decentralization of poverty programmes and local public goods on the magnitude of benefits to the poor depends not just on their political strength but also on the incentives the non-poor have to improve the welfare of the poor. The design of policy pays insufficient attention to such incentive issues. Empirical analysis provides support for this belief. The regression analysis of the paper reveals that welfare receipts affect the labor supply decisions of the poor and that the implementation of welfare programmes under control of village governments takes these effects into account.
http://www.informaworld.com/smpp/content~content=a904742253~db=all~jumptype=rss http://www.routledgepolitics.com/books/Governing-Women-isbn9780415956529
16. Institutional Stability: 4.5
Dr. Y.V. Reddy, Governor, Reserve Bank of India, while releasing of the India Development Report 2008 on January 3, 2008, stated that there is no visible immediate threat to financial stability in India, at this juncture. However there is need for continued but heightened vigilance.
He reiterated the continued commitment of the Reserve Bank to lay stress on macro-economic stability in a way that it enhances the prospects, not merely for accelerated growth but for a genuinely more inclusive growth.
According to Dr Reddy a major area of vulnerability for India is the high consolidated public-debt to GDP ratio of over seventy percent and persisting, though moderating, consolidated fiscal deficit.
According to the India Development Report 2008 “The improvement in macroeconomic stability could be due to macroeconomic policies. While the prospects of achieving high growth are good, the prospect of maintaining macroeconomic stability must be rated low. The Indian economy is likely to be susceptible to periodic shocks originating from the global economy such as those related to global financial crises and volatility in crude oil prices.”
http://www.banknetindia.com/banking/80112.htm http://www.kashmir-information.com/Miscellaneous/KNPandita1.html
17. Honest Government: 4.0
Bad management can be corrected easily but the attitudinal mindset of those who do not believe in respecting pluralism, the only real strength of India, particularly in this new century, can be dangerous and frighteningly divisive. European countries have been through destructive contortions in the not so distant past. The Middle East is in inhuman turmoil. We in India have been saved each time as we hurtled towards the precipice of disaster.
http://www.financialexpress.com/old/fe/daily/20001216/fed16060.html http://indiainteracts.com/columnist/2009/04/20/Left-Leaders-share-a-common-trait-with-Manmohan-Singh/
18. Common Laws: 4.5
Law of India refers to the system of law which presently operates in India. It is largely based on English common law because of the long period of British colonial influence during the British Raj period. Much of contemporary Indian law shows substantial European and American influence. Various acts and ordinances first introduced by the British are still in effect in their modified forms today. During the drafting of the Indian Constitution, laws from Ireland, the United States, Britain, and France were all synthesized to get a refined set of Indian laws, as it currently stands. Indian laws also adhere to the United Nations guidelines on human rights law and the environmental law. Certain international trade laws, such as those on intellectual property, are also enforced in India.
Indian civil law is complex, with each religion having its own specific laws which they adhere to. In most states, registering of marriages and divorces is not compulsory. There are separate laws governing Hindus, Muslims, Christians, Sikhs and followers of other religions. The exception to this rule is in the state of Goa, where a Portuguese uniform civil code is in place, in which all religions have a common law regarding marriages, divorces and adoption.
http://en.wikipedia.org/wiki/Law_of_India http://www.supremecourtofindia.nic.in/speeches/speeches_2008/Abu_Dhabi__as_delivered.pdf
19. Central Bank: 4.5
The Reserve Bank of India (RBI) is the central bank of India, and was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. The Central Office of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937. Though originally privately owned, the RBI has been fully owned by the Government of India since nationalization in 1949.
Duvvuri Subbarao who succeeded Yaga Venugopal Reddy on September 2, 2008 is the current Governor of RBI.
The Reserve Bank of India was set up on the recommendations of the Hilton Young Commission. The commission submitted its report in the year 1926, though the bank was not set up for nine years.
The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage.
It has 22 regional offices, most of them in state capitals.
RBI was started with a paid up share capital of 5 crore.on established it took over the function of management of currency from government of India and power of credit control from imperial bank of India.
http://en.wikipedia.org/wiki/Reserve_Bank_of_India http://en.wikipedia.org/wiki/Central_bank
20. Domestic Budget Management: 3.0
There is a consensus among observers that it is a watered-down version of the original intentions. Explicit targets for the reduction of the fiscal and revenue deficits as well as the ceiling on government borrowing have been removed from the draft.
It was originally envisaged that there should be a cap on public debt at 50 per cent of Gross Domestic Product. Instead of mandating a half per cent cut in deficits annually, the revised version says that the government should undertake appropriate measures to eliminate revenue deficit by March 31,2008 and let the targets to be set for annual reduction in fiscal and revenue deficits remain till then.
As could be expected, there is an enabling clause to escape from the rigours of the discipline on grounds of national calamity, security or other exceptional circumstances. However, there is an important provision, which has been retained from the original. The Bill seeks to bar the Reserve Bank of India from operating in the primary market for government securities from April 1, 2006.’
http://world.rediff.com/news/article/www/money/2003/may/15guest.htm http://www.theindiastreet.com/fiscal-responsibility-and-budget-management
21. Economic Statistics: 4.0
The economy of India is the twelfth largest in the world by market exchange rates and the fourth largest in the world by GDP, measured on a purchasing power parity (PPP) basis. The country was under socialist-based policies for an entire generation from the 1950s until the 1980s. The economy was characterized by extensive regulation, protectionism, and public ownership, leading to pervasive corruption and slow growth. Since 1991, continuing economic liberalization has moved the economy towards a market-based system.
http://en.wikipedia.org/wiki/Economy_of_India http://www.indiaonestop.com/dense.htm
22. Economic Statistics: 5.0
For the most part, statistics released by the Indian government are precise and accurate. There has not been any large scale manipulation of economic statistics by the Indian government uncovered as of yet, and there have not been many instances of statistics corruption by government agencies. The economy of India is the twelfth largest in the world by market exchange rates and the fourth largest in the world by GDP measured on purchasing power parity (PPP) basis.
The country was under socialist-based policies for an entire generation from the 1950s until the 1980s. The economy was characterized by extensive regulation, protectionism, and public ownership, leading to pervasive corruption and slow growth. Since 1991, continuing economic liberalization has moved the economy towards a market-based system. By 2009, India had prominently established itself as the world's second-fastest growing major economy
Personal; http://en.wikipedia.org/wiki/Economy_of_India
23. Protection of Public Health and Safety: 3.5
For the past three years, the HIV/AIDS Task Force of the Center for Strategic and International Studies has been examining the HIV/AIDS epidemic in India, and particularly, U.S. policy dealing with that epidemic. A high-level delegation visited India in January 2004. Since then, a few elements of broad consensus on HIV/AIDS policy have emerged: that HIV/AIDS is one of the major question marks hanging over India's promising future; that changing the trajectory of the epidemic will require substantially more resources than are currently available; that, as in other countries, the response to HIV/AIDS cannot rely only on medical means and instruments but must include the social dimension as well; that India's size calls for a strategic approach from its central government and for a more widespread surveillance effort; and that India's decision to decentralize its HIV/AIDS program was a wise move and perhaps the only way to make room for tailor-made approaches that suit India's extraordinary diversity.
http://www.csis.org/index.php?option=com_csis_pubs&task=view&id=3412; http://www.globalenvision.org/library/9/1214
24. High Wage Policy: 2.5
Standard of living in India is modest and is improving. The standard of living in India shows large disparity. For example, rural areas of India exist with very basic (or even non-existent) medical facilities, while cities boast of world class medical establishments. Similarly, the very latest machinery may be used in some construction projects, but many construction workers work without mechanization in most projects
http://en.wikipedia.org/wiki/Standard_of_living_in_India http://www.gopetition.com/petitions/national-wage-policy-for-india.html
25. Environmental Protection: 2.5
Present Euphoria for rapid economic development has created enormous pressure on India's natural resources. Forests are subjected to rapid degradation due to growing demand for forest-based inputs for industrial use. Rivers are becoming dumping grounds for industrial wastes, often with toxic materials. Construction of large dams is displacing millions of people from their age-old roots. The development projects are carried out for the prosperity of the poor and the marginalized; but the latter never get benefited by this. Their notion of development is different. They share a unique harmonious relationship with nature.
http://www.chillibreeze.com/articles_various/Environment-in-India.asp http://www.legalserviceindia.com/articles/peiln.htm
26. Strong Army: 4.5
As of 2005, India has the second largest military manpower in the world - at 3,773,300 personnel, next only to China. Pakistan’s manpower of 1,449,000 personnel, although smaller in numbers, is proportionally higher than India in terms of their population ratios. Pakistan’s ground forces are equipped with American or Chinese weapons like FIM 92 Stinger SAMs, BGM-71 TOW anti-tank missiles, T-82 tanks and other equipments. Indian ground forces are equipped with mostly home-made and Soviet technologies like IR guided 9K35 Strela-10 SAMs, 3rd Gen IR guided Nag anti-tank missiles, UAVs and a large inventory of tanks and support vehicles. In terms of both numbers and equipments, Indian military dominates the Pakistani ground forces.
The Indian Army is the largest branch of the armed forces of India and has the responsibility for land-based military operations. Its primary objectives include defending India from external aggression, maintaining peace and security within the country, patrolling borders and conducting counter-terrorist operations. It also conducts rescue and humanitarian operations during calamities and disturbances. Control and operation of the Army is administered by the Ministry of Defense.
With more than 1,130,000 soldiers in active service and about 1,800,000 reserve troops, the Indian Army is the world's second largest. It is a completely voluntary service and though there is a provision for military draft in the Indian constitution, it has never been imposed.
http://www.youtube.com/watch?v=ZzNCePxoxp4&eurl=http://www.abytheliberal.com/military/india-pakistan-military-strength http://www.abytheliberal.com/military/india-pakistan-military-strength http://en.wikipedia.org/wiki/Indian_Army
27. Foreign Trade Impact: 4.0
According to the data released for the year 2006-2007, India's GDP grew at an impressive 9.2 per cent. The share of different sectors of the economy in India's GDP is as follows: Agriculture - 18.5 per cent, Industry - 26.4 per cent, and Services - 55.1 per cent. The fact that the service sector now accounts for more than half the GDP is a milestone in India's economic history and takes it closer to the fundamentals of a developed economy. At the time of independence agriculture occupied the major share of GDP while the contribution of services was relatively very less. One of the most important phenomena in post-war economic history has been the enormous expansion of world trade. Indian trade grew poorly from 1950 to 1980 as compared with the world. However, from 1980 onwards, Indian exports have been rising at one and a half times the pace of growth in world exports. In 1993, India ranked 33rd in top exporting countries and 32nd in top importing countries.
Source : http://www.iloveindia.com/economy-of-india/india-gdp.html http://library.thinkquest.org/11372/data/f1-over.htm#f1
28. Protection of Foreign Currency Earning Enterprises: 5.0
Poised to become a key participant in the global economy, India is the second fastest-growing economy in the world. Many investors and corporations see enormous potential in India, from the retail potential of a growing middle class population to economic policies that promote financial globalization. Foreign direct investment has been a crucial factor for the record appreciation of the Indian rupee in recent year
With the opening up of the Indian economy there has been a considerable statistical enhancement and substantial improvement in the country’s foreign exchange reserves, constructive growth in the foreign trade, and rationalization of various tariffs. In addition there has also been a significant liberalization of Indian investment abroad and relaxation of policies regulating foreign investments in India, increased access to external commercial borrowings by Indian companies and major participation by the foreign institutional investors in the domestic stock markets.
Souce: http://www.everbank.com/002CurrencyIndia.aspx http://www.legalserviceindia.com/article/l282-Foreign-Currency-Convertible-Bonds.html
29. Management of Foreign Currency Budget: 3.0
India's trade has grown fast.[4] 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.India's current account deficit - a broad measure of trade in goods and services--for the April-June quarter was up from $6.3 billion for the same period last year. India imports about 70 percent of its oil and last quarter it had to pay $118.80 a barrel for imported oil, up from $66.40, the Reserve Bank of India said. Oil accounted for about 35 percent of India's total imports, and just over half the total increase in import costs was due to oil. Net capital inflows were lower for the quarter as well, falling to $13.2 billion from $17.3 billion. Foreign direct investors rushed into India during the quarter, pouring $10.1 billion into the nation's manufacturing, construction and financial services sectors. During the same period last year net FDI inflows were just $2.7 billion.
http://en.wikipedia.org/wiki/Economy_of_India http://au.ibtimes.com/articles/20080930/india-current-account-deficit-hits-10-7-billion.htm
30. Layers of Collective Action: 2.0
The Indian government structured is not fair. With federal and state governments, all with individuals that are locally elected the private business owners are not elected by the people. People does not have the choice to elect their by their own.
Source: Personal
31. Pro-Business Climate: 4.5
India is a country of both diversity and continuity. It is a creative blend of cultures, religions,races and languages. The nation’s identity and social structure remain protected by a rich cultural heritage that dates back at least 5,000 years, making India one of the oldest civilisations in the world.
One of the fundamental components of Indian culture, vital for your business organisation to succeed, is an understanding of the traditions and ways of communicating with others that form the basis of India’s society
The Centre for Social Markets (CSM) is an independent, non-profit organization dedicated to making markets work for the triple bottom line- people, planet and profit. Through offices in India and the UK, and an international network of partners and associates, CSM works to accelerate the transition to sustainable development and the realization of human rights and social justice. Founded in 2000, by Indian social entrepreneur, Malini Mehra, CSM's primary constituencies are domestic industry and stakeholders in developing countries, and Diaspora communities in industrialized countries.
From 2007 onwards, CSM has focused its attention on three major program areas where it seeks to bring challenge and leadership:
(1) Climate Change- lead a major public engagement initiative, ‘Climate Challenge India’, to promote a pro-active domestic response to climate change in India.
(2) India as a Global Player - examine India's emergence as a major player on the global stage with particular reference to sustainability and human rights challenges.
(3) Corporate Responsibility – undertake innovative research, education and leadership program as India Inc. goes global.
http://www.csmworld.org/ http://www.highbeam.com/doc/1G1-182861749.html
32. Government Enterprises: 5.0
The term Government Linked Company (GLC) is sometimes used to refer to corporate entities that may be private or public (listed on a stock exchange) where an existing government owns a stake using a holding company. There are two main definitions of GLCs are dependent on the proportion of the corporate entity a government owns. One definition purports that a company is classified as a GLC if a government owns an effective controlling interest (>50%), while the second definition suggests that any corporate entity that has a government as a shareholder is a GLC. So, Government has more enterprises than public. Government of India Enterprise provides comprehensive engineering, consultancy and project management services in the transport infrastructure sector under single roof. Since its inception in 1974, company has made steady progress and diversified into new areas of business such as, export/leasing, maintenance and rehabilitation of railway rolling stock, operation and maintenance of railway systems under concession agreements and BOT, BOOT and PPP projects.
Presently, we have over 600 on-going projects in India besides over 30 projects overseas.
33. International Security Agreements: 4.0
Since September 2001, the Western public has found a renewed interest in South Asia. On the border between the Muslim and non-Muslim world, the region has seen its strategic importance to the West heightened, while the fact that the two major competing regional powers, Pakistan and India, each possess nuclear weapons has raised new anxieties. Given the importance of South Asia to current global conflicts, A Military History of India and South Asia provides a much-needed overview of the military history of the region since 1700, covering the areas that later evolved into the states of India, Pakistan, Sri Lanka, and Bangladesh. In chapters devoid of academic jargon, the book provides lucid introductions to various topics, from the rise of the British East India Company, to the Indian Army in the First World War, to the current tensions between India and Pakistan in Kashmir. With chapters written by established experts, the book makes important contributions to the study of modern South Asian history, British Imperial history, and the history of war and society. It will appeal to students, scholars and laypersons alike with an interest in the social, political and military history of the region. Chapters in the book document the rise of the British East India Company and the uprising of 1857-59, in which the largely Bengali army rose up against the British officer corps, and the subsequent decision by the British Crown to take direct control of India and its army. Further chapters document the colonial Indian Army's role in British imperial wars in Afghanistan and in World Wars I and II. Half of the book explores the development of national armies for India, Pakistan, and, later, Bangladesh, giving accounts of the wars that have torn South Asia since independence, including the Indo-Pakistani wars, the India-China War, and the Sri Lankan War, the continuing conflicts over Kashmir, and the proliferation of nuclear weapons.
http://www.thaindian.com/newsportal/uncategorized/india-france-finalise-social-security-agreement_10090337.html http://www.greenwood.com/psi/book_detail.aspx?sku=C8570
34. Protection of Domestic Enterprices from Government Mandated Costs: 2.0
Commitment not to increase a rate of duty beyond an agreed level. Once a rate of duty is bound, it may not be raised without compensating the affected parties. Higher import duties on semi-processed products than on raw materials, and higher still on finished products. This practice protects domestic processing industries and discourages the development of processing activity in the countries where raw materials originate. Relatively high tariffs, usually on "sensitive" products, amidst generally low tariff levels. For industrialised countries, tariffs of 15% and above are generally recognised as "tariff peaks".
http://commerce.nic.in/PressRelease/pressrelease_detail.asp?id=772 http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6VCC-3VWPNFP-4&_user=10&_rdoc=1&_fmt=&_orig=search&_sort=d&view=c&_acct=C000050221&_version=1&_urlVersion=0&_userid=10&md5=e2a1efeba65bd1a08ab1384d6038ebbe
DISCLAIMER
All the information and conclusions in each country analysis are solely the responsibility of the individual student and have not been verified, corrected, checked for copyright infringement or evaluated in any way by MIEPA or Mike P. McKeever. You are solely responsible for the results of any use you make of the information and conclusions in these studies. Use them at your own risk as interesting supplemental information only instead of seasoned judgements about the policy factors contained herein. Each student has granted permission for his or her work to be displayed here under his or her own name or wishes to remain anonymous and have either created a pen name or used no name at all; if you wish to contact them for any reason, forward your request to MIEPA and the student will be notified of your interest.To learn more about other countries, click to other files here:
mpmckeever@earthlink.net
Please place the acronym MIEPA in the subject line.