problems and issues facing india

Problems and Issues Facing India

Overpopulation Overpopulation 1 billion & 1 billion & climbing.climbing.

Economic development.Economic development. Hindu-Muslim tensions.Hindu-Muslim tensions. Gender issues Gender issues dowry dowry killings.killings. Caste bias Caste bias

discrimination against discrimination against untouchables continues.untouchables continues.

The Kashmir dispute and The Kashmir dispute and nuclear nuclear weapons. weapons.

Political assassinations.Political assassinations.

Major problems & Major problems & Issues Issues

in India todayin India today

India and the Subcontinent

• Conflict over Kashmir – India & Pakistan – Irrigation – Pride

• Nuclear Weapons – India & Pakistan• Flood control – India & Bangladesh• Humanitarian Aid – India & Bangladesh

Economic Strength

Why is India becoming an economic superpower?

Even though the world has just discovered it, the India

growth story is not new. It has been going on for 25 years

old

1) Rising GDP growth

% average annual GDP growth

1900 – 1950 1.0 1950 – 1980 3.5 1980 – 2002 6.0 2002 – 2006 8.0

Sources: 1900-1990: Angus Maddison (1995), Monitoring the World Economy, 1990-2000:Census of India (2001), 2000-2005 Finance Ministry

India Story

2) Population growth is slowing

% average annual growth

1901 – 1950 1.0 1951 – 1980 2.2 1981 – 1990 2.1 1991 – 2000 1.8

2001 – 2010 1.5

Sources: 1900-1990: Angus Maddison (1995), Monitoring the World Economy, 1990-2000:Census of India (2001)

India Story

The Population Factor• The world’s 2nd largest

country with 1,121,800,000 • Only 1/3 the size of the U.S.• 1.7% natural increase• 2025 – approaching 1.4

billion

World’s largest!• Will surpass China by 2032• 70 million have moved to the

cities between 1991-2001• Growing massive cities such

as: Mumbai, New Delhi, Kolkata, Chennai

India’s demographic advantage means that its high

growth will continue longer term while China will slow

India has law, China has order

-India got democracy before capitalism and this has made all the difference-It will be slower than China but its path will be surer-India more likely to preserve its way of life

“By 2010 India will have world’s largest number of English speakers”

“When 300 million Indians speak a word in a certain way, that will be the way to speak it.”

-Prof. David Crystal, Cambridge Encyclopedia of the English

Language

% 1950 17 1990 52 2000 65

2010 (proj) 80

Source: Census of India (2001)

3. Literacy is risingIndia Story

% Million People

1980 8 65

2000 22 220

2010 (proj) 32 368

Source: The Consuming Class, National Council of Applied Economic Research, 2002

4. Middle class is exploding

India Story

% 1980 8 2000 22 2010 32 2020 50 West of the

Kanpur-Chennai line

2040 50 East of the Kanpur-Chennai line

INDIA WILL GRADUALLY TURN MIDDLE CLASS

Growing Middle Class• Over 200 million people falling into a

growing middle class of consumers.• Technically defined as those earning

between $4000-$21,000 a year.• This actually only accounts for 60 M.• “Middle class-ness” seems to include

those going from living on $5 a day to $10.

1980 46%

2000 26% 2010 (proj) 16%

1% of the people have been crossing poverty line each year for 20 years. Equals ~ 200 million.

5. Poverty is decliningIndia Story

6. Productivity is rising India Story

30% to 40% of GDP growth is due

to rising productivity

(US$ ppp)

1980 1178

2000 3051

Source: World Bank

7. Per capita income gains

India Story

($)

2000 2100 2005 3050

2020 5800 2040 16,800 2066 37,000

This means a per capita income roughly of (on a ppp basis):

8. India is now the 4th largest economy

India Story

And it will cross Japan between 2012 and 2014 to become the 3rd

largest

Government and the Economy

• India is the world’s largest democracy.

• India is one of the strongest nations in Asia.

• One of India’s largest industries is its moviemaking industry—called Bollywood.

• Although India is one of the world’s top five industrial countries, millions of Indians live in poverty.

Globalization and India• Thomas Freidman has asserted

that globalization has made the world “flat” as evidenced by the growing service sector within India.

• This also implies that India is “flat.”

• Reality on the ground may differ.

DRIVERS OF GROWTH

India East and S.E. Asia

Domestic Exports Services Manufacturing Consumption Investment High tech, capital Low tech, labour intensive industry intensive industry

The “mix” refers to private and The “mix” refers to private and

public ownership. Socialism… public ownership. Socialism… Foreign aid and foreign Foreign aid and foreign investment investment are crucial (also something are crucial (also something Gandhi disagreed with).Gandhi disagreed with).

Urban areas have high-tech Urban areas have high-tech companies. companies.

Three quarters of the Three quarters of the population are population are farmers living in small villages. farmers living in small villages.

India’s “mixed India’s “mixed economy”economy”

Reasons for Success

India’s success is market led

whereas China’s is state induced. The entrepreneur is at

centre of the Indian model

“Licence Raj”• Licence Raj, also the Permit Raj refers to the elaborate

licenses, regulations and the accompanying red tape that were required to set up and run businesses in India between 1947 and 1990.

• The Licence Raj was a result of India's decision to have a planned economy where all aspects of the economy are controlled by the state and licences are given to a select few.

• Up to 80 government agencies had to be satisfied before private companies could produce something and, if granted, the government would regulate production.

• The social democratic plan is too optimistic for Inidan immature environment.

Rise of globally competitiveIndian companies:

Reliance, Jet Airways, Infosys, Wipro, Ranbaxy, Bharat Forge, Tata Motors, TCS, Bharati, ICICI and HDFC Banks

India has a vibrant private space > 100 Indian Companies have market cap of US$ 1 billion > 1000 Indian Companies have received foreign institutional investment> 125 Fortune 500 companies have R&D bases in India> 390 Fortune 500 companies have outsourced software development to India.< 2% bad loans in Indian banks (vs ~ 20% in China)> 80% credit goes to private sector (vs~10% in China)

Public space is a problem

+ Dynamic democracy + Free, lively media and press - Poor governance - High subsidies High fiscal deficit - Creaky infrastructure - Inefficient government companies

What explains India’s economic success?

1) Even slow reforms add up-state getting out of the way

2) Young minds are liberated

3) India has found its competitive advantage in the knowledge economy

Key Reforms

• Opened economy to trade and investment

• Dismantled controls

• Lowered tariffs

• Dropped tax rates

• Broke public sector monopolies

Agriculture

By the Numbers• Per Capita GDP - $3600• 60% agricultural/ but only 20% of

GDP.• 100 million farmers own NO land.• Approximately 80% of all Indians

live on the equivalent of less than $2 a day.

2

Agriculture

• Farming methods have improved, but few families own enough land to support themselves.

• Many farmers have set up cottage industries to add to their income.

• India is a leading industrial nation, and advances have been made there in technology and consumer industries.

• The growing middle class forms the market for consumer goods.

INDIA: ECONOMIC GEOGRAPHY

Primary Sector:• Indian agriculture is inefficient and labor intensive. • Animals are frequently used for power. • The village is the focus of life for 74 percent of the Indian

population with an estimated 580,000 villages. • Approximately 2/3 of India's huge working population (63

percent) depends directly on the land for its livelihood.• Substantial progress toward modernization has been made in the

Punjab's wheat zone. • In the early 1980s more than 1/4 of India's cultivated area was

still owned by only 4 percent of the country's farming families. • Half of all rural families either owned as little as a half hectare

(1.25 acres) or less, or no land at all. • Land consolidation efforts have had only limited success, except

in the states of Punjab, Haryana, and Uttar Pradesh.

INDIA: ECONOMIC GEOGRAPHY• Major crop zones:1. Wheat. Dry northwest notably in the Punjab and neighboring areas of the

Upper Ganges. Many gains from the Green Revolution through the introduction of high-yielding varieties developed in Mexico.

2. Rice. Moist east and a summer monsoon drenched south. More than 1/4 of all of India's farmland lies under rice cultivation, most of it in the states of Assam, West Bengal, Bihar, Orissa, and eastern Uttar Pradesh. This area has more than 100 cm (40 inches) of rainfall. India has the largest acreage of rice among the world's countries. Yields per hectare are still low at below 1,000 kg (900 lbs./acre), however.

3. Coconut. Malabar Coast. (Kerala)4. Millet. Southwestern India. A cereal grass, Setaria italica, extensively

cultivated in the East and in southern Europe for its small seed or grain, used as food for man and fowls, but in the U.S. grown chiefly for fodder.

5. Groundnut. Kathiawar Peninsula.6. Cotton. West-Central India (Deccan Plateau).7. Chick Peas. Northwest.8. Plantation. Northeast.


• Livestock: • India has more livestock than any other country in the

world. – Cows - 200,000,000– water buffalo - 60,000,000 – Goats and sheep - 60,000,000 – Horses, donkeys, and elephants - 5,000,000

• Sheep are of major importance in the drier west where the Islamic population is clustered.

• Water buffalo is dominant in the Ganges Delta and coastal regions.

• Cattle (particularly the Brahman or Zebu breeds) are found throughout India.

INDIA: ECONOMIC GEOGRAPHY• Cattle are an integral element of the Indian agricultural economy.

– They are the primary source of draft power (plowing, pulling carts, grinding grain, and a host of other tasks).

– Cattle graze on forage which would otherwise be wasted during a dry season. – Cattle consume secondary agriculture byproducts (straw, rice husks, and corn

stalks). – Cattle produce an estimated 771,000,000 metric tons (850,000,000 tons) of cow

dung, the principle source of domestic fuel a year. – Dung is also mixed with mud and used for plaster; also a major source of

fertilizer. – Cattle also produce most of India's milk (the bulk of which comes from the

water buffalo). – When a cow dies, it is consumed by the untouchables (who have no prohibitions

about consuming beef when it is available) of the large Hindu population. – Cow hides are a major source of leather. – The maintenance of the large numbers of cows and buffalo is a completely

rational activity in the Indian agricultural economy.

India’s “Green India’s “Green Revolution”Revolution”

Introducing higher-Introducing higher-yielding varieties of seeds in 1965.yielding varieties of seeds in 1965.

Increased use of fertilizers & Increased use of fertilizers & irrigation.irrigation.

GOALGOAL make India self-sufficient in make India self-sufficient in food grains.food grains.

India's India's "Green Revolution""Green Revolution" allowed allowed RICHRICH farmers to triple their crop by farmers to triple their crop by using modern science and using modern science and technology.technology.

INDIA: ECONOMIC GEOGRAPHY• Green Revolution describes the development of extremely high-

yielding grain crops that allow major increases in food production, particularly in subtropical areas.

• In 1953, scientists developed rust-resistant dwarf wheats which doubled Mexico's per acre production in the next decade.

• After a major drought in India in 1965, Mexican dwarf wheat was widely planted in the Punjab region, producing dramatic increases in wheat yields.

• The improved rice (IR)- IR-8 was spotted in 1965 at the Los BaZos research institute in the Philippines, which was set up using aid from the Ford and Rockefeller Foundations.

• Its first harvest, from 60 trial tons of seeds, produced a six-fold increase of rice under field conditions.

• About 10% of India's paddy land is now planted with IR-8 varieties.

INDIA: ECONOMIC GEOGRAPHY• Green Revolution benefits:

– Two to four times the yield of indigenous grains.– A shortened growing season allows two crops per year.– “Miracle grains" have a wider tolerance for climatic

variations.• Green Revolution problems

– Need for high application of fertilizer and insecticide, and in the case of rice, there is a need for copious irrigation.

– "Miracle grains" have been adopted in the most prosperous areas and among the most prosperous farmers. As a result, interregional and social gaps have widened.

– Traditional marketing patterns have been upset. Thailand and Myanmar (Burma) have found their traditional markets disappearing, and Japan now looks for exports.

Industries

INDIA: ECONOMIC GEOGRAPHY• Secondary sector:• At the time of independence (1947), Indian industries emphasized

textiles and food processing. • Gandhi championed development of the cottage industries that

existed prior to the intervention of Britain. – A cottage industry involves small scale production using high

labor inputs. – Cottage industries are very important because they are labor

intensive. – They employ 40 individuals for every one employed in a large

automated factory producing the same products. – A total of 750 products is produced by small industries which

use <=$100,000 in capital. (Receivers, tools, plumbing fittings, etc.).

• Manufacturing employs only 13% of the labor force.

INDIA: ECONOMIC GEOGRAPHYManufacturing Regions:1. Kolkata (Calcutta) and Jamshedpur form an

emerging industrial region in northeastern India. – Calcutta forms the center of the Bihar-Bengal area where

jute manufacturing dominates, but engineering, chemical and cotton industries also exist. Jute: a strong, coarse fiber used for making burlap, gunny, and cordage; it is obtained from two East Indian plants-Corchorus capsularis and Corchorus olitorius of the linden family.

– The Jamshedpur region 240 km (150 mi) west of Calcutta has the Tata Steel Works, India’s single largest steel making complex (Indian Ruhr).

– In the nearby Chota-Nagpur district, coal mining and iron and steel manufactures have developed, and Bhilai is a growing nucleus of heavy industry.


Manufacturing Regions:2. Western Zone-Mumbai (Bombay)-Ahmadabad:

This Maharashtra, Gujarat area specializes in cotton and chemicals with some engineering and food processing, automobiles, and petrochemicals.

3. Southeastern Zone- Chennai (Madras): specializing in textiles.

4. Bangalore supports diversified electrical manufacturing, machine tools, the construction industry, and food processing.

Technology

India’s Economy Today

• 60% of people work in agriculture• 28% of people work in new service

industries• New Technology has helped expand the

economy• Important Industries

–Textiles, chemicals, steel, software, mining

India: Technology Superpower Geneva-based STMicroelectronics

is one of the largest semiconductor companies to develop integrated circuits and software in India.

Texas Instruments was the first to open operations in Bangalore, followed by Motorola, Intel, Cadence Design Systems and several others.

80 of the World’s 117 SEI CMM Level-5 companies are based in India.

5 Indian companies recently received the globally acclaimed Deming prize. This prize is given to an organization for rigorous total quality management (TQM) practices.

15 of the world's major Automobile makers are obtaining components from Indian companies.

This business fetched India $1.5 Billion in 2003, and will reach $15 Billion by 2007.

New emerging industries areas include, Bio-Informatics, Bio-Technology, Genomics, Clinical Research and Trials.

World-renowned TQM expert Yasutoshi Washio predicts that Indian manufacturing quality will overtake that of Japan in 2013.

McKinsey believes India's revenues from the IT industry will reach $87 Billion by 2008.

Flextronics, the $14 billion global major in Electronic Manufacturing Services, has announced that it will make India a global competence centre for telecom software development.

India: Technology Superpower Over 100 MNCs have set up R&D facilities in India in the

past five years. These include GE, Bell Labs, Du Pont, Daimler Chrysler, Eli Lilly, Intel, Monsanto, Texas Instruments, Caterpillar, Cummins, GM, Microsoft and IBM.

India’s telecom infrastructure between Chennai, Mumbai and Singapore, provides the largest bandwidth capacity in the world, with well over 8.5 Terabits (8.5Tbs) per second.

With more than 250 universities, 1,500 research institutions and 10,428 higher-education institutes, India produces 200,000 engineering graduates and another 300,000 technically trained graduates every year. (note: per capita numbers are lower in comparison with first world, Russia and Israel, indicating India should increase the number of educational institutions and educational opportunities to its 1.3 billion population)

Besides, another 2 million graduate in other areas in India annually.

The Indian Institute of Technology (IIT) is among the top three universities from which McKinsey & Company, the world's biggest consulting firm, hires most.

Information Technology’s Impact

• India produces about 100,000 new engineers a year. About 3 times the number of the U.S.

• But still only 1.6 million people are employed in IT and Service Center jobs.

• Key centers include Bangalore, New Delhi, Gurgaon, and Hyderabad.

U.S. companies in IndiaIT Services-design,

support, and or production• Adobe, Cisco Systems, Dell,

Google, Hewlett-Packard, General Motors, IBM, Intel, Microsoft, Motorola, Texas

Instruments, Yahoo

India: Trade Tata Motors paid $ 118 million to

buy Daewoo commercial vehicle Company of Korea.

Ranbaxy, the largest Indian pharmaceutical company, gets 70% of its $1 billion revenue from overseas operations and 40% from USA.

Tata Tea has bought Tetley of UK for £260M.

India is one of the world's largest diamond cutting and polishing centres, its exports were worth $6 Billion in 1999.

About 9 out of 10 diamond stones sold anywhere in the world, pass through India.

Garment exports are expected to increase from the current level of $6 billion to $25 billion by 2010.

The country's foreign exchange reserves stand at an all-time high of $120 Billion.

India's trade with China grew by by 104% in 2002 and in the first 5 months of 2003, India has amassed a surplus in trade close to $0.5M.

Mobile phones are growing by about 1.5Million a month. Long distance rates are down by two-thirds in five years and by 80% for data transmission.

Wal-Mart sources $1 Billion worth of goods from India - half its apparel. Wal-Mart expects this to increase to $10 Billion in the next couple of years.

GAP sources about $600 million and Hilfiger $100 million worth of apparel from India.

India: Self-Reliance India is among six countries that

launch satellites and do so even for Germany, Belgium, South Korea, Singapore and EU countries.

India's INSAT is among the world's largest domestic satellite communication systems.

India’s Geosynchronous Satellite Launch Vehicle (GSLV) was indigenously manufactured with most of the components like motor cases, inter-stages, heat shield, cryogenic engine, electronic modules all manufactured by public and private Indian industry.

Kalpana Chawla was one of the seven astronauts in the Columbia space shuttle when it disintegrated over Texas skies just 16 minutesbefore its scheduled landing on Feb 1st 2003, she was the second Indian in space.

Back in 1968, India imported 9M tonnes of food-grains to support its people, through a grand programme of national self-sufficiency which started in 1971, today, it now has a food grain surplus stock of 60M.

India is among the 3 countries in the World that have built Supercomputers on their own. The other two countries being USA and Japan.

India built its own Supercomputer after the USA denied India purchasing a Cray computer back in 1987.

India’s new ‘PARAM Padma’ Terascale Supercomputer (1 Trillion processes per sec.) is also amongst only 4 nations in the world to have this capability.

India is providing aid to 11 countries, writing-off their debt and loaning the IMF $300M.

It has also prepaid $3Billion owed to the World Bank and Asian Development Bank.

India: Pharmaceuticals The Indian pharmaceutical industry at $6.5 billion and

growing at 8-10% annually, is the 4th largest pharmaceutical industry in the world, and is expected to be worth $12 billion by 2008.

Its exports are over $2 billion. India is among the top five bulk drug makers and at home, the local industry has edged out the Multi-National companies whose share of 75% in the market is down to 35%.

Trade of medicinal plants has crossed $900M already.

There are 170 biotechnology companies in India, involved in the development and manufacture of genomic drugs, whose business is growing exponentially.

Sequencing genes and delivering genomic information for big Pharmaceutical companies is the next boom industry in India.

India: Foreign Multi-National CompaniesTop 5 American employers in India:

General Electric: : 17,800 employeesHewlett-Packard : 11,000 employeesIBM : 6,000 employeesAmerican Express : 4,000 employeesDell : 3,800 employees

General Electric (GE) with $80 Million invested in India employs 16,000 staff, 1,600 R&D staff who are qualified with PhD’s and Master’s degrees.

The number of patents filed in USA by the Indian entities of some of the MNCs (upto September, 2002) are as follows: Texas Instruments - 225, Intel - 125, Cisco Systems - 120, IBM - 120, Phillips - 102, GE - 95.

Staff at the offices of Intel (India) has gone up from 10 to 1,000 in 4 years, and will reach 2000 staff by 2006.

GE's R&D centre in Bangalore is the company's largest research outfit outside the United States. The centre also devotes 20% of its resources on 5 to 10 year fundamental research in areas such as nanotechnology, hydrogen energy, photonics, and advanced propulsion.

It is estimated that there are 150,000 IT professionals in Bangalore as against 120,000 in Silicon Valley.

Top 5 American employers in India:

General Electric: : 17,800 employeesHewlett-Packard : 11,000 employeesIBM : 6,000 employeesAmerican Express : 4,000 employeesDell : 3,800 employees

General Electric (GE) with $80 Million invested in India employs 16,000 staff, 1,600 R&D staff who are qualified with PhD’s and Master’s degrees.

The number of patents filed in USA by the Indian entities of some of the MNCs (upto September, 2002) are as follows: Texas Instruments - 225, Intel - 125, Cisco Systems - 120, IBM - 120, Phillips - 102, GE - 95.

Staff at the offices of Intel (India) has gone up from 10 to 1,000 in 4 years, and will reach 2000 staff by 2006.

GE's R&D centre in Bangalore is the company's largest research outfit outside the United States. The centre also devotes 20% of its resources on 5 to 10 year fundamental research in areas such as nanotechnology, hydrogen energy, photonics, and advanced propulsion.

It is estimated that there are 150,000 IT professionals in Bangalore as against 120,000 in Silicon Valley.

William H. Gates, Chairman and Chief Software Architect Microsoft

Corporation(b-1955):

Gates emphasized that India had emerged as a major global IT hub not because of the availability of low-cost skills, as many believe. Rather, it had more to do with the ''quality'' and ''world-class skills'' to be found in India, he said. ''The key is the quality of the human talent here. When people do software projects in India, they do so because this is the place they can find people with the latest skills. It is not on the (cheap) price (of labor),'' he was quoted as saying by The Times of India newspaper. Gates had high praise for the ''quality of educational institutions which could make India into an IT superpower.'’ September 19, 2000.http://www.atimes.com/ind-pak/BI19Df01.html

.”

Goldman Sachs Report of 1 October, 2003 – "Dreaming with BRICs: The path to 2050"

India's GDP will reach $ 1 trillion by 2011, $ 2 trillion by 2020, $ 3 trillion by 2025, $ 6 trillion by 2032,

$ 10 trillion by 2038, and $ 27 trillion by 2050,

becoming the 3rd largest economy after USA and China.

In terms of GDP estimates, the continental India (1.3 billion, with $ 0.5 trillion in 2000) will overtake Italy (60 million, $ 1.2 trillion in 2000) by

the year 2016, France (60 million, $ 1.4 trillion in 2000) by 2019, UK (60 million, $1.5 trillion) by 2022, Germany (85 million, $ 2.0 trillion in 2000)

by 2023, and Japan (130 million, $3.9 trillion in 2000) by 2032.

Indians abroadA snapshot of Indians at the helm of leading Global businesses

The Co-founder of Sun Microsystems (Vinod Khosla), Creator of Pentium Chip (Vinod Dahm),

Founder and creator of Hotmail (Sabeer Bhatia), Chief Executive of McKinsey & Co. (Rajat Gupta)

President and CFO of Pepsi Cola (Indra Nooyi) President of United Airlines (Rono Dutta)

GM of Hewlett Packard (Rajiv Gupta) President and CEO of US Airways (Rakesh Gangwal)

Chief Executive of CitiBank (Victor Menezes),Chief Executives of Standard Chartered Bank (Rana Talwar)

Chief Executive officer of Vodafone (Arun Sarin) President of AT & T-Bell Labs (Arun Netravali)

Vice-Chairman and founder of Juniper Networks (Pradeep Sindhu) Founder of Bose Audio (Amar Bose)

Founder, chip designer Cirrus Logic (Suhas Patil ) Chairman and CEO of Computer Associates (Sanjay Kumar)Head of (HPC WorldWide) of Unilever Plc. (Keki Dadiseth)

Chief Executive Officer of HSBC (Aman Mehta)Director and member of Executive Board of Goldman Sachs (Girish Reddy)Chief Economist of the International Monetary Fund (Raghuram Rajan)

Former CTO of Novell Networks (Kanwal Rekhi)

“Brain Drain”• Young talent leaving India seems to be

slowing down.• Average starting salary for an IT engineer in

India today is approximately $10-12,000.• Many are graduates of the Indian Institute of

Technology– Several campuses located throughout the

country• This salary provides a comfortable lifestyle

in modern India for the privileged few.

Indians in the USA.

Of the 1.5M Indians living in the USA, 1/5th of them live in the Silicon Valley.

35% of Silicon Valley start-ups are by Indians.

Indian students are the largest in number among foreign students in USA.

Statistics that show:

38% of doctors in the USA,12% of scientists in the

USA,36% of NASA scientists,34% of Microsoft

employees,28% of IBM employees,17% of INTEL scientists,13% of XEROX employees,

… are Indians. 1. India 44% 2. China 9% 3. Britain 5% 4. Philippines 3% 5. Canada 3% 6. Taiwan 2% 7. Japan 2% 8. Germany 2% 9. Pakistan 2% 10. France 2%

US H1-B Visaapplicants country of origin

“IIT = Harvard + MIT + Princeton”“IIT = Harvard + MIT + Princeton” , says CBS ‘60 Minutes’.

CBS' highly-regarded ‘60 Minutes’, the most widely watched news programme in the US, told its audience of more than 10 Million viewers that “IIT may be the most important university you've never heard

of."

"The United States imports oil from Saudi Arabia, cars from Japan, TVs from Korea and Whiskey from Scotland. So what do we import from India? We import people, really smart people," co-host Leslie Stahl

began while introducing the segment on IIT.

“…the smartest, the most successful, most influential Indians who've migrated to the US seem to share a common credential: They are

graduates of the IIT.”“…in science and technology, IIT undergraduates leave their American counterparts in the dust.”

“Think about that for a minute: A kid from India using an Ivy League university as a safety school. That's how smart these guys are.”

There are “cases where students who couldn't get into computer science at IIT, they have gotten scholarships at MIT, at Princeton, at Caltech.”

Religious Conflict Between Hindus and Muslims in India

HINDU-MUSLIM TENSIONS

• Ayodhya riots• Mumbai riots• 1992-93.

Thousands dead.

1992: Hindu mob destroyed the mosque in

Ayodhya.

http://asia.cnn.com/2002/WORLD/asiapcf/south/02/27/ayodhya.background/story.mosque.jpg

Riots followed killing over

2000 people.

Hindu fundamentalists want to build a Hindu temple in

place of the mosque.

Hindu fundamentalism opposes Indian National Congress’s secularism.

1996: Fundamentalist

Bharatiya Janata Party (BJP) won

the election.

But they did not have a majority and had to form

a coalition government.

The coalition only lasted a

month, and the United Front

took over.

The United Front was a coalition of

small leftist parties including the Communists.

1997: BJP came back to power. Atal Bihari Vajpayee

became Prime Minister.

HINDU NATIONALISM• BJP Party wins national

elections in 1998. • Favors confrontation

with Pakistan• Develop nuclear

weapons program, acccomplish little else.

Tamil Nationalism and Militarism

Greater Tamil NaduGreater Tamil Nadu

Tamil separatists want their own nation

Demographics Of Sri LankaDemographics Of Sri Lanka

3 Major Groups…(in descending order)

Sinhalese (Buddhists, speaks Sinhala)

Tamils ( Hindus, speaks Tamil)- Sri Lankan Tamils (indigenous Tamils)- India Tamils (tea/rubber plantation workers from

India)

Moors (Muslims)

Conflicts In Sri LankaConflicts In Sri Lanka

Conflicts in the areas of… Citizenship Rights

Jobs in the Govt (‘Sinhala Only’ policy)

University Admission Criteria

Resettlement of Population

Impact of Conflict In Sri LankaImpact of Conflict In Sri Lanka

Political Consequence

A. Armed conflict Tamils felt they were 2nd class citizens tried to make peaceful demands early 1950s… Federal Party asked Tamil areas to be recognised as a federation did not ask for separate state did not use violence … so why was there violence used against them?


till 1976, demands were not met a new political party emerged - Tamil United Liberation Front - asked for a separate INDEPENDENT state to be called Tamil Eelam

why asked for a separate state? believed only separation would ensure the rights of the Tamils


proposal rejected by the Sinhalese govt result: anger & dissatisfaction!!!

Tamil youths formed a militant group… Liberation Tigers of Tamil Eelam (LTTE) or popularly known as the Tamil Tigers, terrorist group:

- attacked Tamil members of the police force- attacked members & supporters of the ruling party - attacked Tamil politicians who did not support the proposed separate state- attacked Sinhalese

Tamil Separatism:Tamil Separatism:The “Tamil Tigers”The “Tamil Tigers”

They are called the

Tamil Nadu Liberation

Front.

Tamil Nadu is the name of a state in

India

The area demanded by the Tamil

nationalists includes most of southern

India and northern Sri Lanka

Tamil Nationalism: Sri Lanka has a

majority of Sinhalese and a

minority of Tamils.

Following independence the Tamils demanded their own nation

called Eelam


unfortunately, violence also came form the Sinhalese - eg 1956…1st anti-Tamil riot (as a response to a peaceful Tamil protest against the ‘Sinhala Only’ policy)

hundreds of Tamils lost their lives, millions $ worth of property

many incidents between 1981-1983

encouraged by Sinhalese security forces (army) consequence - thousands of Tamils fled to Tamil Nadu - Indian govt was forced to intervene


B. Foreign Interventionconflict attracted big neighbour… India

Foreign Minister sent to Sri Lanka to mediate … failed

3 June 1987: Indian tried to help the Sri Lankan Tamils - 20 Indian ships of food and petroleum products for the Tamils - turned back by the Sri Lankan navy - 4 June 1987: Indian Air Force dropped the food and medical supplies instead and violated the Sri Lankan airspace


B. Foreign Intervention

July 1987: Sri Lankan signed a peace accord with India - a ceasefire between the Tigers and the Sri Lankan forces - Tigers to surrender their arms to Indian peacekeeping troops - merging of the Tamil dominated Nn and the En provinces

Oct 1987: Tigers did not surrender their weapons fully - Indian troops took control of the Tiger-controlled Jaffna by force


B. Foreign Intervention Oct 1987 to Dec 1988: clashes in the N and E of Sri Lanka bet the Tigers and the Indian peacekeeping forces

the latter withdrew in March 1990

the Tigers moved in to take control of the NE

tensions continued… up to now…once in a while, clashes bet the Sinhalese and the Tigers would appear in the news no settlement in sight due to LTTE’s demand for a separate state

Fighting continued

from 1976 to present.

Political◦ Armed Conflict◦ Foreign Intervention

Economic◦ Unemployment◦ Loss of Investments from other Countries◦ Fall in the Number of Tourists

Social◦ Sri Lankan Tamils Driven Out of their Homeland

Factors (Consequences)

One consequence of the Sinhalese-Tamil conflict has been an armed conflict between the LTTE (Tamil Tigers) and Sinhalese government forces.

When the Tamils’ peaceful demands were rejected, a group of youths formed the LTTE (Tamil Tigers) who believed that violence was the only way to demand and obtain rights for the Tamils.

Riots which occurred in the 1980s between the Tamils and the Sinhalese sparked off a long armed conflict between the Sinhalese government forces and the LTTE (Tamil Tigers).

Political – Armed Conflict

• This has led to a bitter 20 year war between the Sinhalese government and the LTTE and has cost more than 60,000 lives and has resulted in other economic and social consequences which have affected Sri Lanka.

Political – Armed Conflict

Results of the Armed Conflict

Tamil villagers identify the bodies of their loved ones killed during clashes between

government forces and Tamil Tigers

1983 Riots in Sri Lanka

Aftermath of the 1983 Riots in Sri Lanka

Economic - Unemployment• The Sri Lankan riots of 1983 lead to massive

unemployment. • Both Tamils and Sinhalese lost their jobs. • Many of the jobless Sinhalese also took part in

vandalizing, looting and burning their places of work.

• With unemployment and the subsequent destruction of places of work would result in suffering and economic hardship for Sri Lanka and its citizens.


Economic consequence

Unemployment breadwinners killed during armed struggles factories and plantations closed/destroyed looting, vandalising, burning places of work by the Sinhalese thousands of workers, self-employed persons lost their jobs (Tamils and Sinhalese alike)

Wrecked businesses following the 1983 Riots in Sri Lanka (also known as Black July)

Economic – Loss of Investment

• The Sri Lankan conflict has scared off potential investors to Sri Lanka who are afraid that the instability in the country would cause them to lose their investments.

• With a loss of investment, Sri Lanka cannot grow its economy, re-build damaged infrastructure or create jobs


Loss of foreign investments

foreign investment needed

but political instability is an unattractive factor

foreign investors may not have the confidence to invest in a politically unstable country

US$66m (‘82) to US$39m (‘83) to US$22m (‘86)

Economic – Fall in the Number of Tourists

The Sri Lankan conflict has scared off many tourists who do not dare to travel to Sri Lanka.

As tourism is one of Sri Lanka’s major income earners, there has been a fall in tourism earnings and a loss of tourism-related jobs.

With a loss of foreign investment and a drop in tourist earnings, Sri Lanka cannot get the funds needed to re-build infrastructure or to develop attractive amenities and facilities causing the country to be in a state of continuous financial hardship.


Decline in tourism tourism was a major income earner

seriously affected by the violent internal conflict

tourist arrivals decreased, loss of jobs, fall in earnings

less funds to develop attractions, amenities and facilities (hotels, transport, housing etc)

Tourist Attractions in Sri Lanka


Social consequence

Refugees 65k Tamils fled to India after 1983 riots

creation of High Security Zones to keep LTTE away

army move into Tamil areas

refugee camps overcrowded

Social – Sri Lankan Tamils Driven Out of Homeland

Following the 1983 riots, thousands of Tamils fled to India

In the early 1990s, the Sri Lankan Army set up High Security Zones (HSZ) where access is controlled and occupied large parts of Tamil-dominated areas to deal with the Tamil Tigers.

Due to this conflict, many Tamils have fled from their homes and live in overcrowded refugee camps.

Social – Sri Lankan Tamils Driven Out of Homeland

• Most Tamils have lost their homes as a result of the conflict and have to suffer in overcrowded, unhygienic conditions in refugee camps.

• Many families have also been broken up or separated during the fighting and many Tamils have suffered during the 20 years or so of endless conflict, robbing them of a bright future in their country.

Tamils fleeing from their homes in Jaffna, the northern part of Sri Lanka

Tamils fleeing Sri Lanka by ship following the 1983 Riots

Sri Lankan missing in Tamil sea raidMarch 21, 2001

TRINCOMALEE, Sri Lanka -- Seven sailors were killed when a Sri Lankan navy boat was sunk by Tamil Sea Tigers in an attack .

February 2003: Truce signed by both sides.

Peace In Our TimesPeace In Our Times

no sight of peace

violence is a daily happening even after the 2004 Tsunami

political assassinations (political leaders to law makers) common

Political Cartoon on Sri Lanka Conflicts

Is the dream gone for Is the dream gone for South Asia?South Asia?

problems and issues facing india

Documents

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census of india

india todayindia

slow india

india overpopulation

largest economy india

finance ministry india

kanpurchennai line india