G3: India REVISION GUIDE

A2 GEOGRAPHY
G3: Section A
Answer ONE essay
question from a choice of
two.
25 marks

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Key Question 1:
What are the main Physical and Demographic characteristics of the country of
India?
Physical Geography

It is not easy to generalise about Indias climate as the country covers such a large area India makes up
the majority of the Indian subcontinent - and its climate is strongly influenced by both the Himalayas and
the Thar Desert. India has six climatic subtypes ranging from desert to alpine tundra. In general,
temperatures tend to be cooler in the north, especially between September and March. India has four
seasons: winter (January and February), summer (March to May), the wet monsoon season (June to
September) and the dry monsoon season (October to December).

The wet monsoon season occurs with the movement of the ITCZ into the region bringing an area of
low pressure and drawing in hot, moist winds from the ocean, Rainfall is increased by orographic
uplift where these moist winds are drawn over uplands such as the Western Ghats.

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Human Geography

Indias population 1.1 billion in 2008 is the fastest-growing in the world and by 2030 Indias
population will have permanently overtaken Chinas as the worlds largest. The population is
concentrated in the fertile northern floodplains.
India is an emerging economic power but is weakened by a poor level of development. It is 135th
(out of 187) for its human development index. There is huge inequality within the country;
between rich and poor, men and women, rural and urban, upper and lower caste.

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Key Question 2:
Why and how is the economy changing?
It is essential for this key question, and the whole of this topic, that you are able to show the examiner that
you understand how Indias economy has been completely transformed since the 1990s to become one of
the fastest growing economies in the world. You should also make it clear that you understand the scale of
change (India is set to have the largest population on the planet) and that the countrys economic growth
has not benefitted everyone. There are huge differences in wealth between urban and rural dwellers;
between men and women; between upper and lower castes and between the growing middle class and
the poor.
Ten facts you should learn about Indias economic growth to use in essay introductions or to add detail
throughout your essay. If you think it will be too difficult to learn 10 then chose 5!
India has the 10th largest economy in the world when measured by GDP
India is the third largest by PPP (Purchasing Power Parity or GDP adjusted to the local cost of living)
Currently Indias average GDP growth is around 5%
During the early 2000s Indias GDP growth averaged at an incredibly impressive 10% per year
A third of Indias population are considered middle class with rising disposable incomes, this is
around 350 million and growing
6. It is one of the BRIC economies showing substantial economic growth at a large scale in recent
decades
7. Indias has a young, vibrant and entrepreneurial workforce. 50% of the population is under 25. By
2025 it is expected the average age will be 29 (compared to 48 for Japan and 37 for China). It has a
low dependency ratio.
8. Literacy rates in India have risen from 12% in 1947 to around 74% today, although there are huge
regional disparities
9. Average life expectancy has risen from 48 in 1980 to 62 in 2000 to around 70 today; again there
are huge regional variations.
10. Despite huge economic growth 1/3 of the worlds extreme poor live in India. 80% of Indias wealth
belongs to 20% of the population.
1.
2.
3.
4.
5.

Changes in traditional agriculture and the role of agribusiness

How has agriculture changed?

There are two main time periods and reasons for change. Firstly from Indian independence to the
1960s huge transformation came about because of the green revolution. Since the 1990s
globalised agricultural companies have dominated the sector with gigantic profit margins.
Much of Indias economic growth is in the service sector however the agricultural sector remains
very strong and provides employment for the majority of the population. 60% of Indias workforce
is employed in agriculture.

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Indias agricultural sector has been completely

transformed throughout the last century and
particularly since the 1990s. Traditionally Indian
agriculture was small scale and subsistence today it
is operates on a global scale and in many cases in
controlled
by
corporate,
profit
making
agribusinesses.
There are both positive and
negative consequences of this shift.
From 1947 (independence) to 1979, the yields per unit of farmland improved by more than 30%.
From 1978 1979 there was a record grain output of 131 million tonnes establishing India as one of
the worlds biggest agricultural producers. At about that time India became an exporter of food
grains.
Having already established a vibrant and successful agricultural sector, post 1991 India has seen the
introduction and widespread success of agribusiness in India.

Why has agriculture changed?

The green revolution in the 1960s began the

transformation of the agricultural economy in India.
Following a time when food supplies in India were
dangerously low and too dependent on imports, the
government of India invested in new agricultural
technology to increase crop yields.
The green revolution includes investment in new high
yielding varieties of crops and increased use of
artificial fertilisers, pesticides and irrigation.
Agribusiness has become well established in India because of its efficiency gains. McCain, a
Canadian multinational, has established contracts with local farmers in Gujurat to grow potatoes to
supply to McDonalds. This cut their expenditure by 35% and increased farmers incomes by 104%

How has Manufacturing changed?

India has emerged as a global manufacturing hub. Since 1991 a range of companies have invested
in India. Samsung plans to spend $100,000 over 4 years in its factory in Chennai; Coca Cola opened
a bottling plant in N.India in 1993. By 2008 they employed 6000 people directly but claim a further
125,000 jobs indirectly; LG are looking to make India its global core for mobile handsets in Europe;
Skoda plans to make India a manufacturing core to sell cars to India, Bangladesh, Sri Lanka and
Nepal; and Airbus will use India as a key centre for the design and development of its A350 plane.
India has a significant textiles industry contributing around 25% share in the world trade of cotton
yarn. Exports have grown at an average of 9.47% p.a over the last decade
India is the fourth largest producer of crude steel globally. The steel industry showed a 10% annual
growth rate between 2010 2013.
The Indian pharmaceutical industry is the fourth largest in the world by volume of sales and was
worth $20 billion by 2012.

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India is now a major global production hub for the auto industry. Early in 2008 Tata announced
that it was making the worlds cheapest mass produced car, called the Tata Nano. This aimed at
the growing middle class of consumers who are now able to afford a car.

Why has Manufacturing changed?

There are a range of reasons that vary in importance for each type of industry, the following
reasons are considered the most important for the manufacturing industry
Foreign direct investment (1991) the government of India made changes to its economic policy in
1991 by which it allowed foreign direct investment (FDI) into the country.
Special Economic Zones India has set up special economic zones where businesses have favourable
tax benefits, reduced rates and built in infrastructure. Before 2005 there were 20 SEZs today there
are 100s
A growing middle class of Indian consumers the middle
class in India has grown from 8% in 1980 to 32% in 2010.
A growing middle class has a greater disposable income.
Low wage and highly skilled work force: A skilled ICT,
software or call centre worker earns $4000 - $10,000 a
year, much lower than Europe and even China.
Karnataka state alone has 77 colleges churning out
29,000 graduates each year.
Good work ethic: Workers are prepared to work long
hours and flexible shifts; union membership is not a wellknown concept, as workers are first generation urbanites.

How has the Service sector changed?

Outsourcing has been one of the keys to Indias success. Growth has focused on call centres and
other back-office administrative work, plus software development. Often a TNC outsources to India,
and later spins off the outsourced business so it is run wholly by a local Indian company. The TNC
then buys the services it requires but does not have any other overheads. Numerous TNCs have
outsourced:
In the 1990s, British Airways and American Express pioneered the transfer of call centres and
administrative functions to New Delhi.
IT, software, BPO and call centres have seen startling growth in the last few years. IT outsourcing in
India in 2008 was estimated to employ 700000 workers and be valued at $11 billion. Annual growth
rates have been 3035% in recent years and India has some 40% of the global market in IT
outsourcing.

Why has the Service sector changed?

All of the above factors apply with the addition of

English speaking workforce: widely spoken by
graduates and the middle class, and is important
for North American and European businesses.

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Key Question 3:
What are the economic and social challenges facing rural communities?
Many of the challenges are both economic and social so for a question where this is specified it is best to
make it clear how the challenge is economic and/or social. The question will probably ask you to assess,
evaluate or discuss the challenges; this would require you to look at the challenges from a range of
different views and perspectives. You will need to reach a conclusion as to the relative worth of the
challenges for different groups of people.

72% of the population is classed as rural with 58% being farmers.

In some ways India is rapidly becoming a middle-class country with Western lifestyles, in other ways
it remains a rural country where social and religious traditions are embedded.

Most rural Indians have lower educational levels, higher mortality and fertility, greater poverty, and
access to fewer services and amenities than urban dwellers.

Incomes in rural India are far lower than in urban areas. Half of its households live below the
poverty line, and 80% of people work in low- level jobs paying little. Six households in ten have
electricity, and one in eight water-flushed toilets.

Few people own land; most land is owned by a wealthy minority. Most farmers rent their land and
can only afford small plots.
Most are trapped in poverty and find that earning wages for large
landowners brings in greater income than cultivating their own land. Few ever have surplus
income and survive on subsistence farming. Much of the work is done by hand. Ploughs are
traditional wood and iron, pulled by oxen or buffalo. With no surplus crops, farmers cannot invest
in machinery or fertiliser to help them grow more. They are trapped in a cycle of poverty. In bad
years, with little work, many borrow from local moneylenders at high interest rates. Finance and
credit are hard to come by.

Rural families are larger, compared to those in cities; rural fertility rates are often over 4, compared
to urban areas where the figure is 2 or less. This is a response to poverty; rural families need more
children to work for wages or domestically in collecting wood or water.

Rural women are less educated than men, and rural literacy rates are especially tow. Only one third
of children go to primary school in some rural areas, and only 2% reach Years 12 and 13.
Caste is also a factor; almost all members of higher castes are
literate, compared to near-zero literacy in the lowest castes. This
impacts upon population uneducated women marry early, often as
early as 16 or 17, and have more children. They are poorer than men;
they rarely own land, usually working as poorly paid landless
labourers, and have few rights. Women are therefore the clue to rural
development.

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Challenge 1: Caste discrimination

The caste system is a social challenge that affects the economic progress of rural communities

The caste system is a religious and social class system in India, where social class is defined by birth
and family.

The system is split into 4 sub-divisions but below this are the Dalits, or untouchables that suffer the
most discrimination

Their existence and treatment is part of a vicious cycle; they have fewer years of schooling, are less
qualified, and are employed mainly in the lowest-wage occupations in the most unhealthy,
unpleasant or polluting jobs. They suffer social prejudice, segregation, and extreme poverty.

Prejudice is greatest in rural areas, where they are isolated, humiliated, and discriminated against;
they cannot worship in temples with others, and must obtain water from different sources. They
cannot stray from their own parts of the village. Dalit children are sometimes forced to sit in the
back of classrooms where they receive less attention than other children. The system is stacked
against them.

Untouchability was outlawed in 1950, and has declined; the process of urbanisation has also
helped to break down barriers between groups. President Narayanan of India (1997- 2002) and the
present Chief Justice each belonged to lower castes.

However, the caste system runs deep and is a long way from removal in Indias society. Though
inter-caste marriages are now more common, caste is still a factor in some marriage choices. Some
Indian matrimonial websites, internet dating adverts, and news columns contain caste-based
categories, and adverts for marriage partners are allowed to state caste as a preference.

The challenge is to address the discrimination that is associated with caste to allow economic
progress to filter down to all members of Indias society.

Challenge 2: The Impacts of Migration

Migration to cities has occurred due to the lack of opportunities in rural areas. This push factor
affects the sustainability of urban growth, which has become a concern for state and national
governments. Development of rural areas could do much to stem internal migration and take
pressure from urban centres.

70% of job seekers in urban areas are from rural

communities; about 40% of them are poorly
educated.

This puts increased pressure and demand on the

people who are left behind. Families may have more
children to help as labour on farms.

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It increases the dependency ratio with more elderly people dependent on the younger generation.

There are fewer people left behind with the skills needed for formwork as those of working age are
the ones more likely to leave

However, migration to cities can boost local rural economies through remittances that are sent
back to family members

Challenge 3: Social Welfare Services

This includes pensions, old age support, disability support, income support, employment support, ill
health, accident support, housing/ living conditions.

In urban areas and wealthy countries the government/ state provides systematic support.
However, in rural areas this is often provided by families, local communities, religious groups and
charities. As a result the support can be unspecialized and lack the necessary resources for
adequate care. The situation worsens as the more economically active migrate to cities for work.

There are many welfare concerns, such as the need to provide minimal social and income security
for agricultural workers. Education is a challenge in many rural areas, particularly the education of
girls, and drop-out rates are high and attendance is poor. Poorer agricultural households show the
worst attendance levels, especially in migration and harvest seasons.

It is difficult to provide adequate schooling because children are needed to work on farms that can
often be seasonal. Children are also needed to collect firewood and do other household chores. It
is difficult to attract good teaching staff and caste discrimination exists within the rural education
system.

When children do get educated, the general lack of economic progress in rural areas means that
government jobs are the only alternative to farm labour, yet these jobs, in practice, require bribes
to secure which poorer families cannot afford. This leads to educated youths working on the
farms, much as uneducated ones do, and leads parents to question the investment of sending
children to school in the first place.

The Informal sector in rural areas

The unorganised informal sector is huge, with 70% of the workforce being rural, in agriculture or
subsistence living

The national government appears limited in its powers to enforce the minimum wage in work such
as agriculture because the sector is so decentralised and activities so dispersed. Most agricultural
employment has no contracts, while workers do not know their rights, or are too poor to go to
court. t is difficult to see how the Indian authorities can provide minimal social and income security
for unorganised workers (including those in agriculture) as well as developing more flexibility in the
organised labour market. This is particularly challenging given Indias socialist background and the
different approaches taken by state governments as opposed to national government

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Challenge 4: The Green Revolution

The Green Revolution has encouraged agribusiness to grow crops industrially for export. This
means less food for domestic use.
The GR resulted in increased pressure on the land and increased levels of pollution from pesticides/
fertilisers...etc. Some farmers were unable to afford this and some got into debt. In addition to this
many farmers were forced off their land because they didnt have legal papers when large
businesses took over farmland.
Farmers forced onto marginal land food it less suitable for crops.
Climate change has resulted in more unpredictable monsoon rainfall and a lower guarantee of
regular food supplies.

Challenge 5: Hunger

Indias growing population increases the challenge of food security. There is growing demand for
fertile farmland to be used by multinational companies to grow industrial and food crops for
export. New industries also demand land in order to expand. Both of these developments also use
up water resources and increase pollution of soil and water. Poor farmers are often forced on to
more marginal land that, without expensive fertilisers and pesticides, produces lower yields. Those
farmers who do try new technologies are at risk of debt if crops should fail, with more people to
feed and less quality land available, the poor face an increased risk of hunger.

A key question for India is how to provide sufficient food for an expanding population while at the
same time encouraging agricultural and industrial development. Individual states have very
different attitudes to this problem.

Key Question 4:
What are the economic and social challenges facing urban communities?

Again the challenges are both economic and

social so for a question where this is specified it
is best to make it clear how the challenge is
economic and/or social. The question will
probably ask you to assess, evaluate or discuss
the challenges; this would require you to look
at the challenges from a range of different
views and perspectives. You will need to reach
a conclusion as to the relative worth of the
challenges for different groups of people.

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The urban population of India has rapidly increased in recent years. In 1961 about 79 million
persons lived in urban areas of the country; by 2001, their number had gone up to over 285 million,
an increase of over 350 % in the last four decades.

Although less than 1/3 of Indias people live in cities and towns, these areas generate over 2/3 of
the countrys GDP and account for 90% of government revenues. Indias towns and cities have
expanded rapidly as increasing numbers migrate to towns and cities in search of economic
opportunity.

The service sector now dominates urban areas of India. There are increased job opportunities in
foreign owned companies. Sectors include software development, business process outsourcing,
call centres, high end products and services. The multiplier effect means associated industries also
benefit.

Challenge 1: The Impact of migration on urban areas

Migration to urban areas and interdependence of rural and urban communities; in India, rural
urban links are strong. Family members return to rural homes to help with the harvest and money
sent by urban dwellers to rural areas makes a significant contribution to poverty reduction despite
increasing urban poverty. The reverse also happens, with rural families sending money to urban
relatives in order to support students or men seeking work.

The impact of this on urban areas is staggering. Services are completely overwhelmed with poor
housing, overcrowding, inadequate sewerage systems, poor schools/ hospitals, slums, pressure on
roads, water supply and electricity.

In 2012 millions of people and businesses across India suffered severe power cuts because of this
increased pressure on resources.

Challenge 2:
Delivering modern infrastructure and social welfare services; the growth of slums

Dharavi in Mumbai is an excellent example of a thriving slum in the centre of a built up world city.

Dharavi is one of the most famous slums in the world with 75,000 hutments and an estimated 1
million inhabitants. Its 2.0 km2 area right in the heart of Mumbai makes it a highly desirable piece
of real estate. Although developers have been trying to redevelop it for years, it is a vibrant and
successful part of Mumbai. In many ways it is not a typical slum community.

The stereotype of high density, makeshift homes

with limited access to clean water and sanitation is
only part of the story. Dharavi is a self-sufficient
and self-sustaining group of townships. Residents
have lifted themselves out of poverty by
developing hundreds of small manufacturing and
service businesses, usually located in or near their
homes.

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The government and developers are planning a $2.1bn investment which could transform Dharavi
into a modern township. They want to replace the slums with high rise apartments, shopping
complexes, hospitals and schools. This would immediately destroy the home-work relationships
which have been so effective in providing a livelihood for the poor. There is no doubt that
improvements and refurbishments are vital, but the Dharavi Development Plan seems to favour
outsiders such as property developers rather than local people.

Challenge 3: Addressing Increasing inequalities within urban areas

Indian cities are characterised by rising inequalities of wealth where the expanding middle classes
live in gated estates within metres of acute poverty. A chaotic mix of different land uses exist next
to each other.

Bangalore is Indias third largest city, nicknamed the Silicon Valley of India. Around 1300
information technology (IT) companies operate in Bangalore and it is home to around 110,000
technology workers, plus 60,000 people in Business Process Outsourcing (BPO). Famous names in
Bangalore include Texas Instruments, Yahoo and Infosys Technologies.

Bangalore has been described as the largest job-creating city in India with more than 65,000 jobs
created in 2004. However, rapid city growth comes at a cost, with traffic congestion, lack of hotel
accommodation and lack of public service amenities. Inevitably this has encouraged competition for
IT investment from other Indian cities such as Hyderabad and Chennai.

Of the 5.3 million inhabitants, 8% live in the 600 slums spread across the city. Wealthy, middle class
and slum dwellers live side by side in a kind of organised chaos which emphasises the high level of
social inequality. Although unplanned, the city generates hundreds of small enterprises which
respond to local demand.

There are two economies here. One is based on the high income, corporate high tech, IT businesses
located in the south and south east of the city. The high rise office blocks are located in planned
urban and industrial estates. The other economy is the informal, low wage local businesses which
serve the elite groups. Located primarily in the north and west of the city, these areas include
hundreds of small silk weaving and garment manufacturers. This mixture of land uses includes
many slums where life expectancy is 55 60 years and many children are malnourished. Despite
the best efforts of the authorities, almost 50% of the population has no access to piped water.
What water there is comes from public fountains and bore holes. Toilets exist but the fees are
prohibitive.

In contrast, the edge of Bangalore sprawls with dormitory communities, farmhouse clusters and
apartment blocks homes for young IT executives with swimming pools, health clubs and private
security.

In Bangalore the tree-lined streets of old mansions of

Basavanagudi, and the colonial bungalows of Fraser Town have
now become high density development with new apartments
built in the grounds of older homes. There is considerable
pressure on disintegrating sewerage, water and road systems.
Also near the centre are slums such as Bagular Slum, former
illegal squatter settlements which have become permanent.

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Industrial zones have developed along rail and road routes out of the city. Wealthy residents
continue their flight to the suburbs to live in well planned, gated communities such as Indiranagar,
complete with all shops and services.

Challenge 4: The informal sector and urban poverty

Although there is a greater chance of

finding more secure employment in
urban areas across India the informal
sector has a huge presence. The informal
sector presents challenges as there are
no formal contracts and employment can
be terminated at any time. There is no
minimum
wage, no
employment
protection and a lack of pensions.
Workers can be exploited and conditions
can be dangerous.
There are an
increasing number of beggars and
prostitution.

Challenge 5: Sustainable development in cities

Effects of urbanisation on the coastline of Mumbai - Maharashtra, one of the coastal states in
India, located on the west coast of India is endowed with a coastline of 720 km with the continental
shelf area of 1.12 sq. km. Four major cities are situated on the coast of Maharashtra.

Mumbai city has rich natural resources of lakes, coastal water forests, wetlands and mangroves. It
is blessed with a coastline of 26 km along its western edge. The coastline in indented with large and
small creeks. Although the majority of the population in Mumbai is provided with houses and
sanitary facilities, almost half of the citys 12 million residents are either slum dwellers or homeless
without any access to sewage and sanitation facilities and use coastal areas in and around the city
as a natural toilet. As a result a huge amount of sewage is released directly into Arabian Sea.
Coastal water in and around Mumbai is under the grip of pollution. The Mahim estuary and
adjacent area of the Mahim coast is the eye opening example of human impact on the coastal
ecosystem. Water from the Mahim estuary and nearby areas shows high level of nitrate,
phosphate and hydrogen sulphide and sometime zero oxygen level. The general trend of elevation
of nutrients is recorded in Mumbais coastal waters. Moreover, a drastic depletion in faunal and
floral diversity of it has also been noted. Mangrove species has been reduced from 14 to only two
species at present.

Five Indian cities are included in the global Sustainable Cities Programme: Chennai, Bangalore,
Hyderabad, Delhi and Kolkata. The key development issues for the sustainable development of
cities are; to secure housing rights, to provide access to civic amenities, public health and
education, to provide safe and secure drinking water and to improve food security.

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Key Question 5:
What are the effects of globalisation on India?
This key question has many similarities with key question 2. It can be looked at in respect to the different
sectors of the economy. The focus is on globalization and a full understanding of the term is required. It is
essential that you appreciate the full impact of the liberalization of the economy in 1991 and how this had
benefits and costs for different groups of people in both the short and long term.

Indias Globalised Economy

Globalisation is the process by which regional

economies, societies, and cultures have become
integrated through a worldwide network of
communication and exchange. The main reasons for
this are the growth and influence of TNCs, the
liberalisation of economies and the vastly improved
transport and communications network.

The liberalisation of Indias economy was adopted by

India in 1991. This aimed to encourage free enterprise,
the setting up of businesses, risk taking and foreign
investment.
Essentially it allowed foreign direct
investment in India and opened up the door to
globalised companies to take full advantage of the
potential India has to offer.

India has considerable influence over world trade as a founder signatory of the General agreement
on Tariffs and Trade (GATT), the forerunner of WTO. India leads the developing nations in global
trade negotiations and is trying to encourage a more liberal global trade regime, especially in terms
of services. India is one of the top ten exporters of services in the world and is famed for its
specialist trade in IT services.

Globalisation has transformed the agricultural sector from small scale subsistence farming to large
scale agribusiness from globalised companies. This has grown from the green revolution of the
1960s. For example, McCain, a Canadian TNC has contracts with farmers in Gujarat to grow
potatoes that are then sold to McDonalds. Monsanto has a huge influence in the supply and
distribution of agrochemicals and seeds.

This has both benefits and costs. Companies such as McCain have provided employment and job
security, improved the skills of local farmers, raised awareness of global issues and invested in
many local and small scale rural projects. However, in many cases they have forced farmers from
their land, increased the gap between the rich and poor, been accused of groundwater depletion
and negatively affected the environment.

The manufacturing sector has also seen the effects of a globalized economy. India has emerged as
a premier global manufacturing hub with the foray of a number of multinational corporations such
as Coca Cola (USA), Samsung (S Korea), LG (S Korea) Skoda (Czech Republic) and airbus (France).

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This has also led to a number of costs and benefits that include economic, social and environmental
elements.
Coca Cola first opened a bottling plant in
1993 and have provided many job
opportunities, opening 70 factories throughout
India. In Plachimada and Mehdiganj the rural
economy has been supported and seen growth.
The company is also keen to enhance its image
by investing in local rural community projects.
Coca Cola support farmers in Rajasthan by
raising awareness and implementing drip irrigation which uses less water than other techniques.
They have also provided clean and separate toilet facilities in rural schools and invested in
community sports programmes by sponsoring under 16 cricket and football clubs.

However, Coca Colas presence in India has also been

met with controversy. It is claimed that there are
water shortages in villages in Plachimada and
Mehdiganj from groundwater depletion where wells
have run dry. Deeper water sources are often more
polluted and unfit for use. It is claimed that Coca Cola
has dumped this waste water onto fields and rivers.
The soil and groundwater becomes polluted and well
unfit for use. It is also claimed that Coca Cola in India
contains a high level of pesticides and waste was sold
to farmers as fertilizer that has since been found to be
toxic.

Production of the TATA Nano in rural Singur in West Bengal was also met with controversy. Despite
the hundreds of skilled and semi-skilled jobs that would have been created from TATA and 20
associated companies the factories pulled out because of local opposition, mainly because people
feared they would be forced off their land as they hand no legal papers to prove they owned it.

One of the most significant developments in the global economy over the past few decades has
been the rapid growth of service industries.

Initially overseas TNCs including American Express, General Electric, British Airways, Citibank and
AOL set up wholly owned captive companies to carry out their back office operations. This was
followed by experienced professionals setting up start-up operations in India, often funded by
venture capital. Infosys was established in 1981 and is now one of the worlds top-performing
companies in the software and services sector, with 50 offices and development centres in India,
China, Australia, the Czech Republic, Poland, the UK, Canada and Japan, employing over 100,000
staff.

This has many advantages for India, a major one being job opportunities. In 2013 Npower
announced it was transferring 100 jobs to India. This also creates a catalyst for badly needed
infrastructure development and a range of associated job opportunities through the multiplier
effect (cleaning, catering, taxi drivers...etc.). However there are also negative impacts such as the
effect on the environment and the increasing wealth gap within urban areas.

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The Growth of Indian TNCs

Indian owned multinational companies such as TATA are very successful in the world economy. In
2008 India was ranked 10th country in the world by Forbes 2000, which lists the location of the
worlds biggest 2000 companies.

TATA is an extremely well known TNC. It was founded in 1808 by the

Tata family with the current chairman being Cyrus Mistry (since 2012).
Tata Sons is the parent company that owns 114 companies in 80
countries. In 2001 the company was estimated to be worth $84 billion.
Subsidiaries include Tata Chemicals, Tata Steel, Tata Motors, Tata
Power, Tata Tea. Acquisitions include Corus (2007), Jaguar/ Land Rover
(2008) and Tetley Tea (2000)

Other Indian owned TNCs include IT service companies Wipro and Infosys.

PunjLloyd Ltd. Have won an order worth over $290 million for pipeline projects in Libya. Mahindra
and Mahindra have entered into a contract with the government of the Gambia to provide tractors
and farm machinery. TurboTech have received orders for the supply of turbines to Taiwan.

Education and training has also become globalized, where between 2000 2005 12% of doctors
who trained in India now work in the UK. This huge brain drain from India has many disadvantages
and some benefits.

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Key Question 6:
What are the environmental challenges and solutions facing India?
The relationship between the environment and economic growth is complex and poses something of a
conundrum. As a country develops it uses more energy and mineral resources to support manufacturing.
More offices, transport, houses and water, all use natural resources. Most human activity, domestic and
industrial, produces waste which has to be disposed of and in turn affects air quality.

1. Deforestation and soil erosion

After Independence Indias forests were exploited commercially for pulp and paper and they
continue to be over-exploited. Huge areas have been deforested, accompanied by serious soil
erosion.

There has been pressure from local rural communities to be able to use forests for food, fuel and
grazing. The Chipko Movement is a famous example of Indian villagers trying to protect their
livelihoods through non-violent resistance. Thousands of Chipko supporters succeeded in making
governments reconsider felling forests all over India.

2. Air Pollution and industrial pollution in Major Cities

Air pollution in urban areas involves the usual culprits: NO2, SO2, CO, CO2 and Suspended
Particulates (SPs) for the usual reasons: rapid industrialisation, energy production, urbanisation
and increase in motorised vehicles. Delhi, Mumbai, Kolkata are among the top 15 most polluted
cities in the world. Along with Chennai, the acute air pollution in these cities is reflected in SP levels
exceeding 360 mg/m3. The WHO threshold is 150 mg/m3.

Transport is essential for development but there is potential conflict between the importance of
the environment and the role of transport in sustainable environment. The demands for more
efficient transport, especially from industry, businesses, tourists and the middle class, are
potentially at odds with rising standards of urban living, the economic demand for jobs and
environmental controls.

Although there is much opposition Delhi's

chief minister, Sheila Dikshit, said she
wanted to see auto rickshaws phased out
within five years.

The Bhopal disaster is the worlds worst

industrial accident. It occurred in 1984 at
the Union Carbide pesticide plant in
Bhopal, Madhya Pradesh. There were
devastating and long lasting effects on
the environment.

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3. Sustainable use of Water resources

Indias water problems are essentially too much in some places and too little in others. The areas
which flood in the monsoons, and the population who are affected, increase every year. Increased
demand for water in rural areas results from the demands of agriculture, rising standards of living
and rural industrialisation. The unpredictability of rainfall in many semi-arid areas is increasing
because of failed monsoons and climate change.

Depletion of groundwater reserves is linked to land use changes. Although only 20% of Indias farms
are commercial they are having a significant impact on water resources. Globalisation and the
changing middle class diets requiring meat, dairy and milk products are leading to increases in the
production of BT cotton, floriculture, and wheat production. Embedded water (the concept of
water contained in products which is then exported within the crop or product) is proving to be a
major loss of water to the environment. The dairy industry in India has been called the white
revolution as it transforms diets as well as the environment.

The traditional techniques of rain water harvesting (RWH) are being revived as India attempts to
meet its water deficit, particularly in water shortage areas such as Rajasthan and Gujarat. More and
more rural communities are adapting RWH to increase water availability, raise agricultural yields,
recharge wells and raise levels of groundwater. The real problem is the level of bureaucracy which
slows the pace of change and adaptation in rural communities.

The Narmada Dam project will supply water to 30 million people and irrigate crops to feed 20
million however it is surrounded in controversy as it would mean submerging natural forest,
disrupting fisheries and displacing many communities.

4. The need for energy Supplies

With rapid economic growth and one sixth of the worlds population, India demands increasing
energy resources; in 2006, it was the sixth largest oil consumer globally. As affluence increases,
energy demand for transport will grow, as car ownership increases rapidly. It lacks domestic energy
resources and imports much of its growing energy demands. Electricity shortages are frequent as
they depend on oil imports to meet demand. Indias ability to secure reliable energy supplies will be
critical in shaping its future economic growth.

Biogas, which uses cow dung to produce

methane, which in turn is piped off and used as
cooking gas, has proved revolutionary in
thousands of communities. It provides biogas for
cooking, and for powering generators for
electricity. It is in plentiful supply; one cow can
produce up to 10 tonnes of dung in a year. Now,
cattle dung is collected and fed directly into a
brick-, clay- or concrete-lined pit that forms part
of a biogas plant. The pit is sealed with a metal
dome, under which it ferments to produce
methane. As pressure builds up, the methane is
then piped into homes.