Please enable JavaScript.

Coggle requires JavaScript to display documents.

India Case Study - Coggle Diagram

- - - - FDI
        
        India's government has been keen to encourage investment through FDI from TNCs in order to improve its infrastructure. The main two sources of FDI have come from Mauritius and Singapore bringing in $34,400mil in in 2014
        Make in India is an example of the govt wanting to increase FDI
      - public investment
        
        investment in the public sector has been key to educating its workforce for the ICT sector. in recent years, India has sold off many of its public-sector companies through privatisation. this has generated money as well as further FDI
    - - advantages of TNCs + FDI
        
        have created jobs and offered education and training to employees, helping to break the cycle of poverty through the education + training offered, which can also benefit the employees in the future as it will create more job opportunities
        
        many jobs are in the tertiary and quaternary sectors which are higher paid so people have more disposable income, which is reinvested into the economy, leading to economic growth
      - disadvantages of TNCs + FDI
        
        economic leakage occurs - when profit is sent abroad to the country of origin. this is a problem as it does not help India's economy grow, so the economic benefit is reduced. this means that the Indian economy does not grow, but other countries economies do grow
        
        exploitation often occurs - relaxed environmental laws in the country mean that the corporation can then damage the environment by creating lots of pollution + wasting natural resources in the country and conditions and pay in factories can be very bad - exploiting workers
      - case study: example of a TNC in India
        
        Coca-Cola operates 58 water-intensive bottling plants in India, particularly in rural areas
        
        brings jobs and investment -> good economically
        
        plants have led to a lack of groundwater leading to persistent droughts and has dried up local wells, causing water poverty -> bad environmentally + socially
        
        droughts damage the quality of life - residents have to rely on water supplies trucked in daily by the government
        
        also impacts local farmers who are now losing income as crops fail due to these problems
        
        although the Coca-Cola plant had short-term economic benefits, the problems severely outweigh the benefits as there are long-term social, economic and environmental impacts
      - overall
        
        negative impacts outweigh the positive impacts
        
        while there are some positive economic impacts, there are much more damaging long term impacts, particularly environmentally and socially. rural, poor areas are the most negatively impacts, exacerbating existing problems such as inequality and core-periphery. also, there are some economic drawbacks, which limits the positive impact of other economic benefits
  - - - 2015
        
        birth rates have declined
        
        better gender equality - women have greater job opportunities and so marry later in life and have fewer children
        
        lower infant mortality rate - healthcare improvements
        
        due to high birth rates in 1975, economically active population has expanded, leading to low unemployment, a growing economy and a large workforce that has led to increases in FDI
        
        this refers to India's demographic dividend - when the population structure benefits the economy due to expanding workforces
        
        India now one of the largest economies in the world
      - 2040
        
        ageing population
        
        high proportion of elderly people
        
        problematic because older citizens do not pay income tax, rely on the government for pensions and also spend a lot of time in hospital relative to the rest of the population
        
        birth rates remained low whilst death rates continue to fall rapidly
        
        economically active age group is still quite large so economy stable, however as people grow older and retire, they are not being replaced by young workers
        
        shows that whilst a demographic dividend may help bring about economic growth, this is no guarantee that there will be continued growth into the future
      - 1975
        
        youthful population
        
        a high proportion of young people relative to the economically active age group
        
        birth and fertility rates are particularly high due to limited access to contraception, a high infant mortality rate and also gender inequality, with women's role being that of childcare
        
        death rates also high as healthcare was basic whilst sanitation was poor
        
        economically active age group was relatively small, restricting economic growth
        
        life expectancy also relatively low
  - - - until the 1990s India was a closed economy with very high tariffs on imports with further restrictions. by reducing these barriers, India became more integrated within the global market and has therefore increased both imports and exports
    - - in the past, India received large amounts of money through aid. in recent years however, India sends aid to many countries including Afghanistan and Sri Lanka and it is mow predicted that its aid expenditure is double what it receives
  - - - education
        
        education is free and compulsory for children aged between 6-14
        
        India has 1.4 million schools and 36,000 higher education establishments
        
        education has been important for the Indian government in social and economic development and has attracted considerable FDI
      - inequality
        
        still a problem in gender equality
        
        women seen as having a low status in society
        
        this is hindering further development of the country
        
        many older people are also marginalised as they have not benefitted from recent improvements in education and healthcare
        
        as a result they tend to remain in poorer rural areas
        
        still a large difference between core and periphery regions
      - expanding middle class
        
        as many jobs are found in the urban area, rural-urban migration has occurred and urban population has grown
        
        as jobs are better paid, middle class has developed
        
        expanding economically active age group raised the proportion of the workforce in the total population has set the stage for a huge expansion in the middle class
        
        modernising economy - employment shifting from largely agricultural to industrial and service
        
        outsourcing provide high skilled quaternary jobs - high paid
        
        +ves and -ves
        
        higher wages -> better living standards
        
        technological advances will spread more rapidly
        
        increased consumption + consumer spending -> acceleration in manufacturing (even more jobs)
        
        middle class can afford to take a holiday, boosting domestic tourism
        
        middle class saves for its own retirement, housing and children's education -> economic growth, less pressure on the govt + improvement in social provisions such as education
        
        drives urban economies, but rural communities left behind
        
        this has further increased inequality between the middle class and the poor
        
        pressure on govt spending will increase dramatically
        
        govt unlikely to be able to be able to provide the quantity and quality of services that will be demanded by mid class
        
        govt starts encouraging privatisation - can be good, but problems arise when key services such as health and education are taken over
- - - - limits opportunities for people
        
        poor human rights - limits placed on you from your parents
        
        unequal society
        
        inequality
        
        uneven development
        
        lower castes stuck in cycle of poverty
    - - political development - everyone has a vote + representation + fairness
        
        freedom (speech, expression)
        
        suggest potential for even development/widespread development - each state has potential to invest
    - - far reaching trade networks
        
        international investment - FDI
        
        global status + influence
        
        respected internationally
    - - skilled workers/educated people leaving India - leaves unskilled people back in India - brain drain
        
        remittances - people send money back to family in India - 'free money' - money that hasn't had to be invested that goes into the economy
    - - monsoons may ruin crops
        
        some areas more prone to natural disasters - death, loss of money, damages infrastructure
        
        diverse climate - agriculture - can grow range of food - economic growth - some areas perfect for crops
        
        not going to be able to grow crops in some areas - uneven development as rural people have no livelihood
    - - massive workforce - drives economic growth and attracts FDI - big workforce so companies will put factories etc. there
    - - development is extremely unequal - even though economy is booming, people are still poor -wealth concentrated in a small proportion of the population -> uneven development
  - - - one of India's core regions - economically central regions with high populations, good services and growing economies
        
        good trade links (near sea), good climate (temperate)
        
        skyscrapers (suggests FDI)
        
        high building density
        
        sophisticated transport
        
        tourism
        
        large population - large workforce, customer base - FDI
        
        Bollywood - income, employment source, tourism, rural-urban migration - generates 180bn rupees per year (bigger than Hollywood). 2.2 mil employed at any one time
        
        outsourcing - FDI - big companies investing in Mumbai, not Bihar
        
        economically active population
        
        companies with big offices in Mumbai include TATA (revenue $113bn, HQ: Mumbai, employs 15,000 in Mumbai), Google, JP Morgan and GSK
      - cumulative causation - when one economic investment (e.g. Google building an office) encourages further growth and development, creating an upward cycle. also known as the multiplier effect
        FDI - foreign direct investment - when a business/corporation invests somewhere, e.g. having an office in a city
      - FDI and businesses will benefit Mumbai and enable it to develop as it will provide employment, particularly quaternary jobs which are higher paid and highly skilled which will lead to investment and also more disposable income for the employees, which will then be spent, leading to economic growth. the investment from these companies will improve the infrastructure of the city. this investment leads to cumulative causation, so the quality of life will continue to improve. one example of this is TATA, which has its HQ in Mumbai and employs 15,000 people in Mumbai.
      - Mumbai's industrial past
        
        1850s during British occupation
        
        high employment - wage increases
        
        industrialisation brought technological advances
        
        developed trade links internationally + across India
        
        drew in workers and resources from poorer regions (core-periphery)
      - Mumbai's industrial past has helped it develop as industrialisation brought technological advances and developed trade links as Mumbai now had a commodity to sell. the high employment led to wage increases, meaning more disposable income to invest in shops, growing the economy. as Mumbai grew, this drew in workers and resources from poorer, periphery regions, benefitting Mumbai with workers and resources and furthering the development gap between areas as poorer areas could not develop
    - - one of India's periphery regions - outlying regions characterised by unemployment, out-migration, poor quality of life and low investment
        
        poor climate (cold, not good for agriculture)
        
        less developed infrastructure - housing, internet cables, pavements
        
        informal
        
        polluted
        
        unreliable water - poor quality of life, bad infrastructure
        
        landfill
        
        crime
        
        corruption
        
        caste based politics - caste system - cycle of poverty
        
        low investment - govt/FDI - neglected
        
        high birth + fertility rates, high infant mortality rates - children are an economic asset
        
        poverty is more widespread than the average - 33.73% in poverty
      - Bihar is marginal - far from India's biggest cities
        
        less exposure to technology, modern jobs and lifestyles
        
        traditional practices prevail - the caste system still dictates who is given opportunities and wealth
- - - - positive impacts
        
        technology advances and economic growth
        
        potential for renewable energy expanding - India aiming for 40% electric power to be renewable by 2030
        
        development in health/hygiene means life expectancy increased from 38->68 years
        
        less youthful population - demographic dividend + expanding middle class
        
        National Area Tribunal - cleaning India's cities -> environmental conservation + protection
        
        improved quality of life - govt improving water supply, sanitation and health, electricity, affordable housing, education and public transport
      - negative impacts
        
        development/rising middle class -> rapidly increasing energy demand - India more reliant on coal (currently 70% of energy is from coal)
        
        skill development + employment -> half of Indian workers need reskilling by 2022 to meet demands
        
        rural India being bypassed by development -> by 2030, 40% of Indians will be urban residents with many others living in small urban towns and in developed rural towns (similar income profiles to urban India) -> but rural will experience constrained physical connectivity, lack of digital connectivity and limited financial inclusion unless urban-rural divides are reduced
        
        pollution - 13 of the world's most polluted rivers are found in India, Delhi is the most polluted city in the world, India has low standards of air pollution which are reducing life expectancy by 3.2 years - illness reduces labour productivity and crops struggle to grow in the presence of ozone, reducing crop yields
        
        deforestation - caused by commercial logging and urban and industrial expansion leads to issues such as flooding, loss of biodiversity, soil erosion and climate change (climate change has led to droughts, putting the farming sector under immense pressure, impacting income and jobs)
        
        India is the world's 3rd largest contributor of CO2 due to heavy reliance on coal as a source of energy
  - - - metro systems
        
        more efficient train network, no overcrowding, more trains, more services, greater capacity, greener
        
        problems aimed to solve: severe congestion, overcrowding, slow transport, poor social mobility, safety and a lack of services
      - water transport
        
        increase use of waterways, achieves a more efficient + sustainable water system, increase trade routes
        
        aimed to solve: not enough transport, lack of trade through waterborne transport (3.5% in India compared to 47% in China)
      - smart cities mission
        
        govt initiative in 100 cities to improve water supply, electricity, sanitation, affordable housing, health and education and public transport
      - improved global status
        
        India is a member of the G20 and BRICS nations. with this influence they hope to have a larger global influence and have a permanent seat on the UN Security Council
        
        a member of the UN and Commonwealth - respected globally