india: factors that made it an emerging economy
Post on 13-Apr-2015
31 Views
Preview:
DESCRIPTION
TRANSCRIPT
ARU Student ID: 1128537
1.0 Introduction
According to Heakal R. (2009), an emerging economy can be described as a fast-
growing economy and is in the transitional process of opening its market to the world for
investment. India, for instance, is one such emerging economy. Since 1991 (Bureau of South
and Central Asian Affairs), India had undergone a market-oriented economic reform such as
the reduction in tariffs and trade barriers, and has brought global attention to the country.
However, in the below segment of this worksheet, we will be discussing about the political,
economic and also technological factors that made India an emerging economy.
2.0 Political Factors
2.1 Economic Development Incentives
To attract foreign direct investment (FDI), the government of India has offered
economic development incentives to attract foreign firms through the setting up of Special
Economic Zones (SEZ). SEZs are special duty free zones which promotes exports into the
country (Invest India, 2012).
2.1.1 FDIs due to Special Economic Zones(SEZ)
According to Nishith Desai Associates (2006), SEZ can either be set up by the
government or private sector such as foreign companies. On top of that, the incentives offered
to the developer of these SEZs are very lucrative, such as 100% tax holidays of the export
income of the SEZs for the first 10 years. Due to the incentives received in operating this
SEZ, it is able to attract FDIs like foreign firms to operate in it such as the Special Economic
Zone in Tamil Nadu is developed by Nokia (India Brand Equity Foundation, n.d.).
Besides, incentives such as exemptions from customs duty and service tax provided to
operating units in the SEZ (Nishith Desai Associates, 2006) can also attract more foreign
firms, and therefore, encourage exports. According to India Brand Equity Foundation (n.d.),
exports in the SEZ during 2006-2012 have increased at a compounded annual growth rate of
59% to US$ 78.7 billion.(see Figure 2.1).
1.
ARU Student ID: 1128537
The phenomenon of inward FDIs due to the provision of economic development
incentives by the government through the use of SEZs, can be explained by the concept of
“trade openness” stated by Taylor(2000) as cited in Wall, Minocha and Rees (2010, p.66-67).
“Trade openness” suggests that there is a positive relationship between open trade policies
and inward FDI. Taylor states that countries (like India) that have more open trade policies
(less trade restrictions : tax exemptions in the SEZs) , will be able to attract more inward
FDIs from foreign firms. In conclusion, the economic development incentives provided by
India through the use of SZEs can make India an emerging economy.
Figure 2.1 Exports from SEZs in India (Source: Ministry of External Affairs, Government of
India, Aranca Research as cited in India Brand Equity Foundation, n.d.)
2.
ARU Student ID: 1128537
2.2 Reduced or No Barriers to Trade
To encourage the flow of trade, India has opted actions to reduce its barriers to trade
like reduction in tariffs. By forming a regional trading agreement with other countries or
regional pact like the ASEAN, the government of India is able to form a free trade area with
the corresponding country. Within this free trade area, member countries can enjoy a
reduction or abolishment of trade restrictions such as tariffs between each other, while able to
maintain their individual protectionist measures against non-members (Wall, Minocha and
Rees, 2010, p.107).
2.2.1 India-ASEAN Regional Trading Agreement
A notable regional trading agreement India has formed is that with the ASEAN
countries. Under this agreement, a free trade area of goods and services has been formed
between India and ASEAN that improves economic cooperation, through the relaxation of
trade policies and the elimination of tariff and non-tariff barriers. According to Export-Import
Bank of India (2007), the trade with ASEAN has increased till US$ 30 billion in 2006-07
over the past five years, growing at an average of 31% annually. Interestingly, Export-Import
Bank of India (2007) has noted that during 2001-02, the total trade with ASEAN increased
steadily. Yet, a more proliferating increase can be observed since 2003, when India and
ASEAN has agreed to form the agreement (see Table 2.2). This difference in growth has
proven that regional trading agreements are important instruments used in reducing or
abolishing the barriers to trade to encourage trade.
Table 2.2 Trends in India-ASEAN Trade (Source: DGCIS, Ministry of Commerce and
Industry, Government of India as cited in Export-Import Bank of India, 2007)
3.
ARU Student ID: 1128537
2.2.2 Benefits of Removal of Trade Barriers
Likewise, a reduction in barriers to trade will also be beneficial to countries involved
under the same trade area such as the Indo-Pak trade. As of now, India and Pakistan is
undergoing a slight trade liberalisation such as improvement in procedural management, that
boosts this bilateral trade to US$ 2.6 billion (Zeenews.com, 2012). According to Consumer
Unity and Trust Society (CUTS) International as stated in Zeenews.com (2012), if barriers to
trade between these two countries were removed, India would gain US$ 80 billion whereas
Pakistan stands to gain US$ 1.4 billion, benefiting both countries. This clearly shows that a
reduction or removal of barriers to trade can be beneficial to countries involved. In
conclusion, reduced or no barriers to trade can make India an emerging economy.
3.0 Economic Factors
According to Ernst and Young's India Attractiveness Survey (2012), investors has
seen huge growth opportunities in India due to its rapidly increasing numbers of middle class
group. Besides, the attractiveness survey also found out that India's cost competitiveness has
attracted FDI as well.
3.1 India’s Rise of Middle Class Group
According to Banerji D. and Shah R.(2012), India has recently replaced Japan to
become the third largest economy in terms of purchasing power parity. This achievement can
be explained by the recent rise in numbers of middle class group in India. This rise of middle
class is due to more people moving into the cities to be employed in the growing high-tech
industries (Dunn S., 2012). Since more people are getting employed in the city, this means
that they are gradually earning more and with a higher disposable income, they tend to create
a higher demand for products such as cars (Shukla as stated in The Economic Times, 2011).
The increase in demand for products like cars can be supported by the concept of
income elasticity of demand (IED). According to Wall, Minocha and Rees (2010, p.159-160),
IED measures the responsiveness of demand for a product due to the change in the real
income of consumers. If a rise in real income will shift the demand curve to the right
(increase), this shows that the product has a high (positive) IED value. In this case, the cars
4.
ARU Student ID: 1128537
have a positive IED. Figure 3.1 better illustrates the effects of more of a product X (cars)
being demanded at any given price of X due to an increase in real income.
Figure 3.1 IED curve showing the increase in demand due to the rise in real income
(Source: Wall, Minocha and Rees 2010, p.160)
3.1.1 FDIs from Major Car Industry Player
As investors have realized the growth of this middle class group, there has been a
gradual increase in FDI in the car industry. According to Philip L. (2012), BMW Group has
upped its investment to US$ 106 million in 2012 from US$ 50 million in 2010. This
increment in investment will be used to enhance the group’s product and service offerings so
that the Indian consumers are attracted to purchase more cars. Besides, Volkswagen also
foresee the opportunity created from the rising middle class, therefore, the group also decides
to invest US$ 130.8 million in the next two years to further upgrade its products and facilities
(The Hindu, 2012). As the 160 million middle class individuals in 2011 are expected to grow
to 267 million in 5 years (The Economic Times, 2011), more industry will see this as an
5.
ARU Student ID: 1128537
opportunity and invest more. Consequently, FDI inflows of car companies into India due to
the rise in spending power of middle class Indians will make India an emerging economy.
3.2 Cost Competitiveness Environment
Another reason that enabled India to become an emerging economy is the low labour
cost that the country possesses. According to The Hindu Business Line (2012), India will
soon take over China as the key supply of low-cost labour. The article also states that India’s
main advantage is in its supply of an estimated 85 million college-educated worker by 2030,
second to that of China. In a recent research done by 2point6billion.com (2012), it showed
that India has a relatively lower minimum wage levels as compared to China in the year
2012(see Table 3.2).
Table 3.2 Minimum Wage Levels in China and India (Source: 2point6billion.com, 2012)
6.
ARU Student ID: 1128537
In this case, India has a comparative advantage over China in terms of its supply of
low-cost skilled labour. According to the Heckscher-Ohlin (HO) theory (Wall, Minocha and
Rees, 2010, p.87-89), a labour-abundant country will be able to produce (and export) labour
intensive products relatively cheaper than a labour scarce country. According to Ernst and
Young (2011), India has a large young workforce, a median age of 25 compared to age of 34
of that in China in 2010. Besides, India also contains a large pool of English-speaking
workforce, having an estimated 2 billion English-speaking people by 2020 (Ernst and Young,
2011), an advantage that China does not have. So, based on the human capital version of the
HO theory, India will have a comparative advantage over China as it is able to supply a
young and large pool of skilled labour at a lower cost than China.
3.2.1 FDIs from the Manufacturing Industry
With its cost competitive environment to work in, it has attracted many FDIs
especially that of the manufacturing industry. According to the Ernst and Young’s India
Attractiveness Survey (2012), 45% of their respondents with international presence cited that
the attraction of low labour cost and inexpensive manufacturing facilities are the main
reasons that made them invest in India. During 2011, having a total of US$ 58,261 million of
FDI inflows, 71% of the amount went into the manufacturing industry and it helped created
320 projects as well as 144,449 jobs. Specifically, exports of electronic goods manufactured
in India rose by 56% whereas the imports of electronic goods from China fell by 32% during
2010-2011 (Seth S., 2011). This increase in exports is due to the rising labour costs occurring
in China as investors seek to India for its competitive pricing as well as its inexpensive
manufacturing capabilities. Therefore, FDIs from the manufacturing industry in the coming
future will create more employment and make India an emerging economy.
7.
ARU Student ID: 1128537
4.0 Technological Factors
According to Business Portal of India (2012), due to lower cost structure, India has
emerged as the 21st century's software powerhouse, becoming an ideal destination as a global
hub for outsourcing, especially in the business-process outsourcing (BPO).
4.1 The Business-Process Outsourcing Industry
During 1996, when British Airways set up data entry work and American Express set
up call centres in India (Businessworld as cited by Webmaster, 2010), such business-process
outsourcing(BPO) services has ever since led India to become the leading offshore
outsourcing market in the world with a 58% share in 2012 (Thirani, N., 2012).
According to Porter’s diamond (Wall, Minocha and Rees 2010, p.90-91), India’s
competitive advantage in the BPO industry can be determined by four key variables. India
has a favourable demand condition as the local market demands for more voice-based
(including local language) services (NASSCOM Strategic Review, 2012). India also has a
favourable factor condition as it provides an unparalleled source of skilled talents
(NASSCOM Strategic Review, 2012). A favourable firm strategy, structure, and rivalry also
determines India’s competitive advantage as leading outsourcing industry players (Infosys
and Wipro Technologies) are able to deliver value to customers, by having a re-engineered
business structure and also focus on delivery innovation (NASSCOM Strategic Review,
2012). Besides, a favourable related and supporting industry determines the outsourcing
industry as India’s competitive advantage, due to the improvement in India’s technology
infrastructure (e-Governance projects), with the USD 1 trillion investment from the
government (NASSCOM Strategic Review, 2012).
4.1.1 Exports to Advanced Countries
As the BPO industry grew, it has attracted many customers from the Americas and
Europe and local outsourcing companies has started to export its services to these advance
countries. For example, Tata Consultancy Services has offered cost-effective software
solutions in telecommunication to Ericsson worldwide in 2001 (The Economic Times, 2012).
According to Figure 4.1, it showed that the IT-BPO service industry’s exports have gradually
8.
ARU Student ID: 1128537
increased from the year 2008 to the year 2012. The increase in exports is mainly due to
contribution by major BPO companies like Tata Consultancy Services and also the cost
savings these companies are able to provide (see Table 4.1). Due to the attractiveness of cost
savings provided by the Indian outsourcing companies, the exports to advanced countries will
also be expected to rise in the future and make India an emerging economy.
Figure 4.1 IT-BPO Revenues (Source: NASSCOM, 2012)
US$ Cost per FTE(Full Time Employee)
United States India India as % of US costs
Personnel 42,927 6,179 14%
G&A Expense 8,571 1,000 12%
Telecom 1,500 2,328 155%
Property Rentals 2,600 847 33%
Depreciation 3,000 1,500 50%
TOTAL EXPENSES 58,598 11,854 20%
Table 4.1 Cost savings by the US for outsourcing to India (Source: Industry Sources, Merill
Lynch 2003 from the Nasscom Strategic Review as stated by Webmaster, 2012)
9.
ARU Student ID: 1128537
5.0 Recommendations
5.1 Political improvement
5.1.1 Increase Transparency of FDI and Incentive Process in SEZ
Ever since India introduced the use of SEZs to promote FDIs, it has greatly improved
the trade flow between that of India and foreign investors. Although SEZs in India have been
performing well, but the provision of incentives, if left unchecked , the FDIs could eventually
cause the misallocation of resources and even corruption (Raj N.and Sager E., 2005).
To avoid such a problem from happening, the government of India should raise the
transparency of the process of FDI and incentive, especially at the SEZs governed by private
companies. The government of India can increase this transparency by quantifying the
incentives given. Instead of being made a provision, the incentives should be made in a cash
based transaction or in other easy to understand methods (Raj N.and Sager E., 2005). By
doing so, the Indian government and parties involved are able to monitor and analyse the
transactions being made. Thus, problems such as resource misallocation and corruption are
minimized and even avoided.
5.1.2 Change to a Freeport
Besides being transparent, the government can also opt to upgrade the SEZ to a higher
standard operating zone. This can be done by upgrading it to a modern version of the SEZ,
called a freeport. According to Roy J.and Banerjee P. (2007), a freeport is a suitable concept
for countries wanting to become a developed country. A freeport resembles very much of that
of an advanced country's SEZ in terms of its trading environment. It will be functioning in a
less trade restriction, smoother flow of procedures, sound infrastructure and convenient
access to world-class ports and airports. Roy J.and Banerjee P. (2007) also states that
freeports are able to attract small and medium enterprises (SME) type of businesses. If that is
the case, this means that India will be able to gain more exports not just from major
companies, but also the cream market of the SMEs.
10.
ARU Student ID: 1128537
5.2 Economic Improvement
5.2.1 Increase Labour Productivity to Maintain Cost Competitiveness
Even though India still maintains a cost competitive edge over many countries such as
China, Thailand and Malaysia (Devonshire-Ellis C., 2011), yet it still faces a severe threat of
being taken over by Vietnam which is also able to offer low wage costs (Mason P., 2010).
According to a comparison made by World Economic Forum as stated in Business Standard
(2012), India's global competitiveness ranking has slipped from 49 during 2009-2010 to a
position of 59 during 2012-2013 (see Table 5.2).
Table 5.2 India's Competitiveness Ranking Comparison during 2009-2010 to 2012-2013
(Source: World Economic Forum as cited in Business Standard, 2012)
Even so, India can still maintain its status as a cost competitive country in accordance
to relative unit labour cost (RULC) as global competitiveness is related to it. According to the
concept of RULC, RULC is a tool used to calculate the international competitiveness of a
country (Wall, Minocha and Rees, 2010, p. 9 and 10).
11.
ARU Student ID: 1128537
According to the formula of RULC, it stresses that lower RULC computes to higher
competitiveness. To achieve lower RULC, India either has to reduce relative labour costs, or
by increasing its labour productivity. Since India already has low labour costs, all India has to
do now is to increase its labour productivity to ensure its global competitiveness.
One of such ways to raise labour productivity is to increase the education level in
India. Indians have to be more educated so that they can be more productive. This is
supported by a study by Sandra and Lynch (1996, as cited by Jajri I. And Ismail R., 2009)
that shows that there is a positive relationship between years of schooling and productivity.
Besides, labour productivity can also be raised by giving proper training to workers. Jajri I.
And Ismail R. (2009) stated that workers who attended these trainings will be more efficient
and productive, and therefore, increase in productivity growth. Lastly, having a leaner
production can also raise labour productivity. For example, IBM developed an Application
Assembly Optimisation approach. It is applied in the car manufacturing industry whereby it
breaks up broader works into smaller works and flow it into an “assembly line”. This process
produced a 20-30% increase in labour productivity as workers are more specialised in those
smaller works (Carroll A.M., 2011).
5.3 Technological Improvement
5.3.1 Sustain India's Cost Advantage
Although India currently remains as the leading business-process outsourcing (BPO)
country in the world, its position is still threatened by other emerging economies such as the
Philippines. According to Bajaj V. (2011), the Philippines took over India as the leader in the
call centre outsourcing services in 2011, due to their Americanization way of interaction with
customers as compared to the British-speaking Indians.
Nevertheless, one suggestion that India can still maintain its cost advantage in other
services like the voice-based and data entry services is by relocating the BPO hub to smaller
cities (known as Tier II/III cities in India). According to the NASSCOM-Everest India BPO
Study (2008), BPO companies that allocate their operations to smaller cities are able to save
12.
ARU Student ID: 1128537
up to 20-30% of their existing total operating costs. At the same time, BPO companies are
also able to effectively uncover more talent pools across several states in India.
5.3.2 Move up the Value Chain
If India is unable to sustain their low-cost leadership position, another suggestion is
that India's BPO industry should move up the value chain and enter the higher end knowledge
work industry, known as the knowledge-process outsourcing (KPO). In the future, India may
not remain low-cost due to increase in wages (Aggarwal A.and Pandey A., 2004). Besides, as
the BPO reaches maturity and boosted by the higher profit margin in the KPO, India will shift
its focus to the KPO industry (Aggarwal A.and Pandey A., 2004).
6.0 Conclusion
Ultimately, there are three main factors that make India an emerging economy: the
political, economic and technological factors. Political factors like the economic development
incentives and reduced barriers to trade, and also economic factors like the rise of India's
middle class group and cost competitive environment can altogether make India an emerging
economy. Meanwhile, the technological factor like the established business-process
outsourcing industry will also make India an emerging economy. Yet, political improvements
like increasing the transparency of process in the SEZ or changing it into a freeport can
further sustain India's economic growth. Besides, economic improvement like increasing
labour productivity, and technological improvements such as sustaining cost advantage or
move up to the KPO industry can also sustain India's economic growth.
(Word Count: 3005 words)
13.
7.0 References
2point6billion.com, 2012. Minimum Wage Comparisons Between China and India. [online]
Available at: <http://www.2point6billion.com/news/2012/06/07/minimum-wage-comparisons-between-
china-and-india-11264.html> [Accessed 5 November 2012]
Aggarwal, A. and Pandey, A., 2004. The Next Big Opportunity- Moving up the Value Chain-
From BPO to KPO. [pdf] EVALUESERVE. Available at:
<http://www.asiapacificdirect.com.au/big_opportunity_moving_up_the_value_chain%20-
%20from_bpo_to_kpo.pdf> [Accessed 17 November 2012]
Bajaj, V., 2011. Philippines Overtakes India as Hub of Call Centers- A New Capital of Call
Centers. The New York Times, [online] 25 Nov. Available at:
<http://www.nytimes.com/2011/11/26/business/philippines-overtakes-india-as-hub-of-call-centers.html?
pagewanted=all&_r=0> [Accessed 17 November 2012]
Banerji, D. and Shah, R., 2012. India Overtakes Japan to become third-largest economy in
purchasing power parity. The Economic Times. [online] 19 Apr. Available at :
<http://articles.economictimes.indiatimes.com/2012-04-19/news/31367838_1_ppp-terms-india-s-
gdp-power-parity> [Accessed 3 November 2012]
Bureau of South and Central Asian Affairs, 2012. Background Note: India. [online] U.S.
Department of State. Available at: <http://www.state.gov/r/pa/ei/bgn/3454.htm>
[Accessed 16 October 2012]
Business Portal of India, n.d. Outsourcing Industry. [online] Available at:
<http://business.gov.in/outsourcing/index.php> [Accessed 20 October 2012]
Business Standard, 2012. India slips in global competitiveness. Business Standard, [online] 6
Sept. Available at: <http://www.business-standard.com/india/news/india-slips-in-global-
competitiveness/485542/> [Accessed 15 November 2012]
14.
Carroll, A.M., 2011. The pursuit of productivity in corporate India. The Economic Times,
[online] 4 Mar. Available at:
<http://articles.economictimes.indiatimes.com/2011-03-04/news/28657592_1_labour-productivity-wage-
rates-ibm> [Accessed 16 November 2012]
Devonshire-Ellis, C., 2011. China Now Has Third Highest Labour Costs in Emerging Asia.
China Briefing, [online] 19 Jan. Available at:
<http://www.china-briefing.com/news/2011/01/19/china-near-top-of-the-list-for-wage-overheads-in-
emerging-asia.html> [Accessed 16 November 2012]
Dunn, S., 2012. INVESTING IDEAS: Could you make money investing in India's growing
middle classes? This is Money [online] (Last Updated 9:49 AM on 4th July 2012) Available at:
<http://www.thisismoney.co.uk/money/investing/article-2168318/How-invest-India-growing-
middle-class.html> [Accessed 6 November 2012]
Ernst and Young, 2011. Knowledge paper on Strategic and implementation framework for skill
development in India [pdf] Available at:
<http://www.ey.com/Publication/vwLUAssets/EY_FICCI_Skills_for_India_2020/$FILE/
EY_FICCI_Skills_for_India_2020.pdf> [Accessed 6 November 2012]
Ernst and Young's Attractiveness Survey, 2012. Ready for the transition [pdf] Available at:
<http://emergingmarkets.ey.com/wp-content/uploads/downloads/2012/03/india-attractiveness-final-
version1.pdf> [Accessed 6 November 2012]
Export-Import Bank of India, 2007. Regional Trade Agreements: Gateway to Global Trade.
[pdf] Quest Publications. Available at: <http://www.eximbankindia.com/op/op120.pdf> [Accessed 8
November 2012]
Heakal, R., 2009. What Is An Emerging Market Economy? Investopedia, [online] 11 Aug.
Available at: <http://www.investopedia.com/articles/03/073003.asp#axzz2CIwEB3FN> [Accessed 16
October 2012]
15.
India Brand Equity Foundation, n.d. SEZs' Role in Indian Manufacturing Growth [pdf] Available
at: <http://www.ibef.org/download/SEZs-Role-in-Indian-Manufacturing-Growth.pdf> [Accessed 8
November 2012]
Invest India, 2012. SEZ's. [online] Available at: <http://www.investindia.gov.in/?q=sezs-sector>
[Accessed 10 November 2012]
Jajri, I.and Ismail, R., 2009. Technical Progress and Labour Productivity in Small and Medium
Scale Industry in Malaysia, European Journal of Economics, Finance and Administrative
Sciences, [pdf] Available at: <http://www.eurojournals.com/ejefas_15_15.pdf>
[Accessed 16 November 2012]
Mason, P., 2010. Low wage costs attract investors to Vietnam. BBC News Business, [online]
(Last updated 11:01 PM on 17th June 2010) Available at: <http://www.bbc.co.uk/news/10344233>
[Accessed 15 November 2012]
NASSCOM, 2012. Indian IT-BPO Industry. [online] NASSCOM Available at:
<http://www.nasscom.in/indian-itbpo-industry> [Accessed 20 October 2012]
NASSCOM-Everest India BPO Study, 2008. NASSCOM-Everest India BPO Study: Roadmap
2012- Capitalizing on the Expanding BPO Landscape. [online] Available at:
<http://www.britishcouncil.org/learning-nasscom-report.pdf> [Accessed 18 November 2012]
NASSCOM Strategic Review, 2012. The IT-BPO Sector in India. [pdf] Available at:
<http://www.nasscom.in/sites/default/files/researchreports/SR_2012 _ Executive_Summary.pdf >
[Accessed 20 October 2012]
Nishith Desai Associates, 2006. Special Economic Zones- An Indian Perspective. [pdf] Available
at: <http://www.nishithdesai.com/Research-Papers/SEZ-Final.pdf> [Accessed 10 November 2012]
16.
Philip, L., 2012. BMW Group increases its investment in BMW Financial Services. The
Economic Times, [online] 30 Apr. Available at: <http://articles.economictimes.indiatimes.com/2012-
04-30/news/31508161_1_bmw-financial-services-india-bmw-group-andreas-schaaf> [Accessed 10
November 2012]
Raj, N.and Sager, E., 2005. FDI Incentives: A Framework for Governments to Maximize
“Good” Investments [pdf] Available at:
<http://people.hbs.edu/mdesai/IFM05/IFM_Paper_NikhilRaj_EricSager_051212_vfinal.pdf> [Accessed
20 November 2012]
Roy, J.and Banerjee, P., 2007. Attracting FDI from the Indian Diaspora: The Way Forward [pdf]
Available at:
<http://www.oifc.in/Uploads/MediaTypes/Documents/AttractingFDIFromIndianDiaspora.pdf >
[Accesed 20 November 2012]
Seth, S., 2011. India set to gain as China losing manufacturing edge due to rising labour costs.
The Economic Times, [online] 10 Sept. Available at:
<http://articles.economictimes.indiatimes.com/2011-09-10/news/30139297_1_labour-costs-goods-
manufacturing> [Accessed 3 November 2012]
The Economic Times, 2011. India's middle class population to touch 267 million in 5 years. The
Economic Times. [online] 6 Feb. Available at: <http://articles.economictimes.indiatimes.com/2011-
02-06/news/28424975_1_middle-class-households-applied-economic-research> [Accessed 3
November 2012]
The Economic Times, 2012. Company History- Tata Consultancy. The Economic Times. [online]
Available at: <http://economictimes.indiatimes.com/tata-consultancy-service-ltd/infocompanyhistory/
companyid-8345.cms> [Accessed 20 October 2012]
The Hindu, 2012. Volkswagen to invest 100 million euros in India in 2 years. The Hindu,
[online] 6 Sept. Available at: <http://www.thehindu.com/business/companies/article3865549.ece>
[Accessed 10 November 2012]
17.
The Hindu Business Line, 2012. India will edge out China as key hub for low-cost labour:
McKinsey. The Hindu Business Line. [online] 14 Jun. Available at:
<http://www.thehindubusinessline.com/industry-and-economy/article3527363.ece> [Accessed 30
October 2012]
Thirani, N., 2012. Fast Growth for India's Outsourcing Industry, Despite Weak Global Economy.
The New York Times, [online] 23 Feb. Available at:
<http://india.blogs.nytimes.com/2012/02/23/fast-growth-for-indias-outsourcing-industry- despite-weak-
global-economy/> [Accessed 20 October 2012]
Wall, S., Minocha, S. and Rees, B., 2010. International Business. 3rd ed. Gosport: Pearson
Education Limited Webmaster, 2010. Chronology of BPO in India. [online] Available at:
<http://www.bpmwatch.com/knowledgebase/chronology-of-bpo-in-india/> [Accessed 22 October
2012]
Webmaster, 2012. Do you have any comparison of India Vs US BPO operating costs? [online]
Available at: <http://www.bpmwatch.com/knowledgebase/comparision-of-india-and-us- bpo-
operating-costs/> [Accessed 22 October 2012]
Zeenews.com, 2012. Remove non-tariff barriers to facilitate Indo-Pak trade: CUTS.
Zeenews.com, [online] (Last updated 2:37 PM on 31st July 2012) Available at:
<http://zeenews.india.com/business/news/economy/remove-non-tariff-barriers-to-facilitate-indo-pak-
trade-cuts_57005.html> [Accessed 8 November 2012]
Management Study Guide, 2012. The Future of BPO (Business Process Outsourcing) in India.
[online] Available at: <http://www.managementstudyguide.com/future-of-business-process-
outsourcing-india.htm> [Accessed 20 November 2012]
18.
top related