LLM: Distance learning Programme

1st year: Business Law Group

Title

Globalization of India Business

Prepared by : Varsha K Kshirsagar

LLM-I- Business Law

Bharti Vidhyapeth University

New Law College

Pune - 411038
Bharti Vidhyapeth’s New law college, Pune

LLM: Distance learning Program

1st years: Business law group

Title

Globalization of India Business

Prepared by : Varsha K Kshirsagar

Class: LLM- I – Business law Group

 DECLARATION

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” submitted to the [UNIVERSITY NAME], is a record of an original work done by me

under the guidance of [RESPECTIVE NAME], Faculty Member, [RESPECTIVE COLLEGE OR
UNIVERSITY NAME AND PLACE FROM WHERE THE FACULTY MEMBER IS FROM ], and
this project work has not performed the basis for the award of any Degree or diploma/
associate ship/fellowship and similar project if any.

[YOUR NAME]
 Certificate

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award of degree of [COURSE NAME] of [UNIVERSITY NAME] under my guidance. This
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 Acknowledgment

I would like to whole hearty thank and express my sincere gratitude to many people who helped
& supported me during the writing of this project.

I also sincerely thank ___________________________________., the guide of the

project for guiding, constant encouragement and support provided to me.

I also wish to thank the Principle for their valuable advice and support.

I extend my sincere thanks to my guide _____________________________ for

continuous support throughout the development of this project.

I also extend my sincere thanks to my institution and faculty members without whom this
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wishers.
 SYNOPSIS

Title:

Globalization of India Business

Prepared By: Varsha K Kshirsagar

Class: L.L.M I

Under Guidance of: Prof. U.S Dive

1. Importance of Research:

To know Indian as well as International business by which regional economies, societies, and
cultures have become integrated through a global network of communication, transportation,
and trade. The term is sometimes used to refer specifically to economic globalization: the
integration of national economies into the international economy through trade, foreign direct
investment, capital flows, migration, and the spread of technology.

2. Scope of Research:
 Growth of Gross domestic product of India.
 Growth of Foreign exchange reserve.
 Growth for Outsourcing market.

3. Hypothesis:

The growing integration of economies and societies around the world – has been
one of the most hotly-debated topics in international economics over the past few years.
Rapid growth and poverty reduction in China, India, and other countries that were poor 20
years ago, has been a positive aspect of Liberalization Privatization and Globalization
(LPG). But Globalization has also generated significant international opposition over
concerns that it has increased inequality and environmental degradation. There is a need to
study the impact of globalization on developing countries from the viewpoint of inward
foreign direct investment. Attention should also be focused on the role which some
developing countries, particularly from parts of Asia and Latin America, are playing as
initiators of globalization through their own MNCs.
 4. Research Methodology:

Formulation of research problem- identification and operationalization of the problem, survey of

literature, development of working hypotheses, preparation of research design, investigation in
availability of information, sampling design, error minimization, evaluation of time and cost,
collection of information, processing of collected information, hypothesis testing, interpretation and
generalization, systematization of findings, writing of report, references and bibliography.

5. Source of Data Collection:

 Financial crisis of 2007 to 2010.
 World economic outlook database.
 World trade organization
 Ministry of Commerce & Industry.
6. Chapterisation:

Chapter 1: Introduction

Chapter 2: Modern Globalization

Chapter 3: Effects of Globalization

Chapter 4: Globalization of India

Chapter 5: Indian economics Indicator

Chapter 6: Conclusion

7. Conclusion:

Globalization in India had a favorable impact on the overall growth rate of the economy.This is major
improvement given that India’s growth rate in the 1970’s was very low at 3% and GDP growthin
countries like Brazil, Indonesia, Korea, and Mexico was more than twice that of India. Though India’s
average annual growth rate almost doubled in the eighties to 5.9%, it was still lower than the growth
rate in China, Korea and Indonesia. The pickup in GDP growth has helped improve India’s global position.
Consequently India’s position in the global economy has improved from the 8thposition in 1991 to 4th
place in 2001. A growth rate of above 8% was an achievement by the Indian economy during the year
2003-04.India’s GDP growth rate can be seen from the following graph since independence.
 Index

Chapter 1: Introduction

Chapter 2: Modern Globalization

Chapter 3: Effects of Globalization

Chapter 4: Globalization of India

Chapter 5: Indian economics Indicator

Chapter 6: Conclusion
 Chapter 1

Introduction

Globalization describes a process by which regional economies, societies, and cultures have become
integrated through a global network of communication, transportation, and trade. The term is
sometimes used to refer specifically to economic globalization: the integration of national economies
into the international economy through trade, foreign direct investment, capital flows, migration, and
the spread of technology.[1] However, globalization is usually recognized as being driven by a
combination of economic, technological, sociocultural, political, and biological factors. [2] The term can
also refer to the transnational circulation of ideas, languages, or popular culture through acculturation.

History:

The historical origins of globalization are the subject of on-going debate. Though some scholars situate
the origins of globalization in the modern era, others regard it as a phenomenon with a long history.

Perhaps the most extreme proponent of a deep historical origin for globalization was Andre Gunder
Frank, an economist associated with dependency theory. Frank argued that a form of globalization has
been in existence since the rise of trade links between Sumer and the Indus Valley Civilization in the
third millennium B.C.[14] Critics of this idea point out that it rests upon an over-broad definition of
globalization.

An early form of globalized economics and culture existed during the Hellenistic Age, when
commercialized urban centers were focused around the axis of Greek culture over a wide range that
stretched from India to Spain, with such cities as Alexandria, Athens, and Antioch at its center. Trade
was widespread during that period, and it is the first time the idea of a cosmopolitan culture (from
Greek "Cosmopolis", meaning "world city") emerged. Others have perceived an early form of
globalization in the trade links between the Roman Empire, the Parthian Empire, and the Han Dynasty.
The increasing articulation of commercial links between these powers inspired the development of the
Silk Road, which started in western China, reached the boundaries of the Parthian empire, and
continued onwards towards Rome
 Chapter 2

Modern globalization

Globalization, since World War II, is largely the result of planning by politicians to break down borders
hampering trade to increase prosperity and interdependence thereby decreasing the chance of future
war. Their work led to the Bretton Woods conference, an agreement by the world's leading politicians to
lay down the framework for international commerce and finance, and the founding of several
international institutions intended to oversee the processes of globalization.

These institutions include the International Bank for Reconstruction and Development (the World Bank),
and the International Monetary Fund. Globalization has been facilitated by advances in technology
which have reduced the costs of trade, and trade negotiation rounds, originally under the auspices of
the General Agreement on Tariffs and Trade (GATT), which led to a series of agreements to remove
restrictions on free trade.

Since World War II, barriers to international trade have been considerably lowered through
international agreements — GATT. Particular initiatives carried out as a result of GATT and the World
Trade Organization (WTO), for which GATT is the foundation, has included:

 Promotion of free trade:

o elimination of tariffs; creation of free trade zones with small or no tariffs
o Reduced transportation costs, especially resulting from development of containerization
for ocean shipping.
o Reduction or elimination of capital controls
o Reduction, elimination, or harmonization of subsidies for local businesses
o Creation of subsidies for global corporations
o Harmonization of intellectual property laws across the majority of states, with more
restrictions
o Supranational recognition of intellectual property restrictions (e.g. patents granted by
China would be recognized in the United States)

Cultural globalization, driven by communication technology and the worldwide marketing of Western
cultural industries, was understood at first as a process of homogenization, as the global domination of
American culture at the expense of traditional diversity. However, a contrasting trend soon became
evident in the emergence of movements protesting against globalization and giving new momentum to
the defense of local uniqueness, individuality, and identity, but largely without success. [32]
The Uruguay Round (1986 to 1994)[33] led to a treaty to create the WTO to mediate trade disputes and
set up a uniform platform of trading. Other bilateral and multilateral trade agreements, including
sections of Europe's Maastricht Treaty and the North American Free Trade Agreement (NAFTA) have
also been signed in pursuit of the goal of reducing tariffs and barriers to trade.

Chapter 3

Effect of Globalization

Globalization has various aspects which affect the world in several different ways such as:

 Industrial - emergence of worldwide production markets and broader access to a range of

foreign products for consumers and companies. Particularly movement of material and goods
between and within national boundaries. International trade in manufactured goods increased
more than 100 times (from $95 billion to $12 trillion) in the 50 years since 1955. [37] China's trade
with Africa rose sevenfold during 2000-07 alone. [38][39]
 Financial - emergence of worldwide financial markets and better access to external financing for
borrowers. By the early part of the 21st century more than $1.5 trillion in national currencies
were traded daily to support the expanded levels of trade and investment. [40] As these
worldwide structures grew more quickly than any transnational regulatory regime, the
instability of the global financial infrastructure dramatically increased, as evidenced by the
Financial crisis of 2007–2010.[41]

As of 2005–2007, the Port of Shanghai holds the title as the World's busiest port.[42][43][44]

 Economic - realization of a global common market, based on the freedom of exchange of goods
and capital.[45] The interconnectedness of these markets, however, meant that an economic
collapse in any one given country could not be contained. [citation needed]
Almost all notable worldwide IT companies are now present in India. Four Indians were among the
world's top 10 richest in 2008, worth a combined $160 billion.[46] In 2007, China had 415,000 millionaires
and India 123,000.[47]

 Health Policy - On the global scale, health becomes a commodity. In developing nations under
the demands of Structural Adjustment Programs, health systems are fragmented and privatized.
Global health policy makers have shifted during the 1990s from United Nations players to
financial institutions. The result of this power transition is an increase in privatization in the
health sector. This privatization fragments health policy by crowding it with many players with
many private interests. These fragmented policy players emphasize partnerships, specific
interventions to combat specific problems (as opposed to comprehensive health strategies).
Influenced by global trade and global economy, health policy is directed by technological
advances and innovative medical trade. Global priorities, in this situation, are sometimes at odds
with national priorities where increased health infrastructure and basic primary care are of more
value to the public than privatized care for the wealthy. [48]
 Political - some use "globalization" to mean the creation of a world government which regulates
the relationships among governments and guarantees the rights arising from social and
economic globalization.[49] Politically, the United States has enjoyed a position of power among
the world powers, in part because of its strong and wealthy economy. With the influence of
globalization and with the help of The United States’ own economy, the People's Republic of
China has experienced some tremendous growth within the past decade. If China continues to
grow at the rate projected by the trends, then it is very likely that in the next twenty years,
there will be a major reallocation of power among the world leaders. China will have enough
wealth, industry, and technology to rival the United States for the position of leading world
power.[50]
 Informational - increase in information flows between geographically remote locations. Arguably
this is a technological change with the advent of fibre optic communications, satellites, and
increased availability of telephone and Internet.
 Language - the most popular language is Mandarin (845 million speakers) followed by Spanish
(329 million speakers) and English (328 million speakers). [51]
o About 35% of the world's mail, telexes, and cables are in English.
o Approximately 40% of the world's radio programs are in English.
o About 50% of all Internet traffic uses English. [52]
 Competition - Survival in the new global business market calls for improved productivity and
increased competition. Due to the market becoming worldwide, companies in various industries
have to upgrade their products and use technology skillfully in order to face increased
competition.[53]
  Ecological - the advent of global environmental challenges that might be solved with
international cooperation, such as climate change, cross-boundary water and air pollution, over-
fishing of the ocean, and the spread of invasive species. Since many factories are built in
developing countries with less environmental regulation, globalism and free trade may increase
pollution. On the other hand, economic development historically required a "dirty" industrial
stage, and it is argued that developing countries should not, via regulation, be prohibited from
increasing their standard of living.

The construction of continental hotels is a major consequence of globalization process in affiliation with
tourism and travel industry, Dariush Grand Hotel, Kish, Iran

 Cultural - growth of cross-cultural contacts; advent of new categories of consciousness and

identities which embodies cultural diffusion, the desire to increase one's standard of living and
enjoy foreign products and ideas, adopt new technology and practices, and participate in a
"world culture". Some bemoan the resulting consumerism and loss of languages. Also see
Transformation of culture.
o Spreading of multiculturalism, and better individual access to cultural diversity (e.g.
through the export of Hollywood and, to a lesser extent, Bollywood movies). Some
consider such "imported" culture a danger, since it may supplant the local culture,
causing reduction in diversity or even assimilation. Others consider multiculturalism to
promote peace and understanding between people. A third position gaining popularity
is the notion that multiculturalism to a new form of monoculture in which no
distinctions exist and everyone just shift between various lifestyles in terms of music,
cloth and other aspects once more firmly attached to a single culture. Thus not mere
cultural assimilation as mentioned above but the obliteration of culture as we know it
today.[54][55]
o Greater international travel and tourism. WHO estimates that up to 500,000 people are
on planes at any one time.[citation needed][56] In 2008, there were over 922 million
international tourist arrivals, with a growth of 1.9% as compared to 2007. [57]
o Greater immigration,[58] including illegal immigration.[59] The IOM estimates there are
more than 200 million migrants around the world today. [60] Newly available data show
that remittance flows to developing countries reached $328 billion in 2008. [61]
o Spread of local consumer products (e.g., food) to other countries (often adapted to their
culture).
o Worldwide fads and pop culture such as Pokémon, Sudoku, Numa Numa, Origami, Idol
series, YouTube, Orkut, Facebook, and MySpace. Accessible to those who have Internet
or Television, leaving out a substantial segment of the Earth's population.
o Worldwide sporting events such as FIFA World Cup and the Olympic Games.
 o Incorporation of multinational corporations in to new media. As the sponsors of the All-
Blacks rugby team, Adidas had created a parallel website with a downloadable
interactive rugby game for its fans to play and compete. [62]
 Social - development of the system of non-governmental organisations as main agents of global
public policy, including humanitarian aid and developmental efforts. [63]
 Technical
o Development of a Global Information System, global telecommunications infrastructure
and greater transborder data flow, using such technologies as the Internet,
communication satellites, submarine fiber optic cable, and wireless telephones
o Increase in the number of standards applied globally; e.g., copyright laws, patents and
world trade agreements.
 Legal/Ethical
o The creation of the international criminal court and international justice movements.
o Crime importation and raising awareness of global crime-fighting efforts and
cooperation.
o The emergence of Global administrative law.
 Religious
o The spread and increased interrelations of various religious groups, ideas, and practices
and their ideas of the meanings and values of particular spaces.
 Chapter 4

Indian Globalization

Globalization in India has allowed companies to increase their base of operations, expand their
workforce with minimal investments, and provide new services to a broad range of consumers.

The process of globalization has been an integral part of the recent economic progress made by India.
Globalization has played a major role in export-led growth, leading to the enlargement of the job market
in India.

One of the major forces of globalization in India has been in the growth of outsourced IT and business
process outsourcing

(BPO) services. The last few years have seen an increase in the number of skilled professionals in India
employed by both local and foreign companies to service customers in the US and Europe in particular.
Taking advantage of India’s lower cost but educated and English-speaking work force, and utilizing
global communications technologies such as voice-over IP (VOIP), email and the internet, international
enterprises have been able to lower their cost base by establishing outsourced knowledge-worker
operations in India.
As a new Indian middle class has developed around the wealth that the IT and BPO industries have
brought to the country, a new consumer base has developed. International companies are also
expanding their operations in India to service this massive growth opportunity.

Notable examples of international companies that have done well in India in the recent years include
Pepsi, Coca-Cola, McDonald’s, and Kentucky Fried Chicken, whose products have been well accepted by
Indians at large.

Globalization in India has been advantageous for companies that have ventured in the Indian market. By
simply increasing their base of operations, expanding their workforce with minimal investments, and
providing services to a broad range of consumers, large companies entering the Indian market have
opened up many profitable opportunities.

Indian companies are rapidly gaining confidence and are themselves now major players in globalization
through international expansion. From steel to Bollywood, from cars to IT, Indian companies are setting
themselves up as powerhouses of tomorrow’s global economy

. Globalization and India

India's economy opened up during the early nineties. The policy measures on the domestic front
demanded that there was a requirement of multinational organizations to set up their offices here. The
market became more open and the economy started responding to the external (global) market. Due to
globalization, contacts have been developed all across the globe, with the pace of integration
dramatically increasing.

Impact of Globalization

It was in July 1991, when foreign currency reserves had tumbled down to almost $1 billion; inflation was
at a soaring high of 17%, highest level of fiscal deficit, and foreign investors loosing confidence in Indian
Economy. With all these coupling factors, capital was on the verge of flying out of the country and we
were on the brink of become loan defaulters. It was at this time that with so many bottlenecks at bay, a
complete overhauling of the economic system was required. Policies and programs changed accordingly.
This was the best time for us to realize the importance of globalization.

Measures of Globalization

1. Devaluation: The first initiative towards globalization had been taken the moment there was an
announcement of devaluating the Indian currency by a hoping 18-19% against all the major
global currencies. This was a major initiative in the international foreign exchange arena. The
Balance of payment crisis could also be resolved by this measure.
2. Disinvestment: The core elements of globalization are privatization and liberalization. Under the
privatization scheme, bulk of the public sector undertakings have been/ and are still being sold
to the private sector. Thus the concept of PPP (public private partnership) came up.
3. Allowing Foreign Direct Investment (FDI): Allowing FDI inflows is a major step of globalization.
The foreign investment regime has been quite transparent and thus the economy is getting
boosted up. Various sectors were opened up for liberalizing the FDI regime.

Is globalization delivering all the desired results to the masses? Or only a few can feel the benefits of
globalization? Figures have out rightly proved that the global average per capita income showed a
strong surge throughout the 20th century but the income gap between rich and poor countries have not
been bridged for many decades now. The ultimate inference being that globalization hasn't shown
positive results.
 Chapter 5

Indian Economic indicators

India is amongst the world's 10 largest economies. The GDP growth average rate was 9.4% over the
period 2006-07. It decreased in 2008 and reached 4.5% in 2009. From 2010, growth should bounce.

Despite the economic crisis, domestic demand remained strong. This should enable the country to
reduce its trade deficit, which is still at almost USD 5 billion because of the fact that the country is highly
dependent on imported petroleum products. With a rate of over 6% over the past year, India is facing an
inflation surge due particularly to rising food prices. The public finances situation is also worrying, with a
deficit of about 4.5% of the GDP. India remains a poor country with 25% of its population still living
below the threshold of poverty.

Main indicators 2008 2009 2010 2011 2012

GDP (billions USD) 1,206.68 1,235.97e 1,367.22e 1,496.51 1,643.98e

GDP (constant prices, annual % change) 7.3e 5.7e 8.8 8.4 8.0

GDP per capita (USD) 1,021 1,031 1,124 1,214 1,316e

Inflation rate (%) 8.3 10.9 13.2e 5.5e 4.1

Unemployment rate (% of the labor force) 6.8 - - - -

Current Account (billions USD) -26.62 -25.89e -29.70e -30.43 -32.36

Current Account (in % of GDP) -2.2 -2.1 -2.2 -2.0 -2.0e

Source: IMF - World Economic Outlook Database ; CIA - The world factbook

Note: (e) Estimated data

Main sectors of industry

India is the world's fourth agricultural power. Agriculture contributes about 20% of the GDP and
employs almost two-thirds of the active population.
Coal is the country's main energy source (India is the third largest world producer of coal). In the
manufacturing industry, textile plays a predominant role. In terms of size, the chemical industry is the
second largest industrial sector (12% of the GDP).

Services sector is the most dynamic part of the Indian economy both in terms of employment potential
and contribution to the national income. The rapidly growing software sector is boosting service exports
and modernizing Indian economy.

Breakdown of economic activity by sector Agriculture Industry Services

Employment by sector (in % of total employment) - - -

Value added (in % of GDP) 17,468.0 28,832.0 53,700.0

Value added (annual % change) 1,602.0 3,875.0 9,668.0

Source: World Bank - last available data.

Monetary indicators 2004 2005 2006 2007 2008

Indian Rupee (INR) - Average annual exchange rate for 1 USD 45.32 44.10 45.31 41.35 43.51

Source: World Bank

Indicator of economic freedom

Score: 54.4/100

Position: mostly unfree

World Rank: 123 out of 179

Regional Rank: 25 out of 42

Distribution of Economic freedom in the world

Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk
See the country risk analysis provided by Ducroire.

Foreign trade in figures

India had been protectionist state for a long time, but from the begining of the 1990's, the country has
gradually opened up to international exchanges. In 2008, India was the world's 26th biggest exporter
and the 16th biggest importer. India shows a strong trade deficit, caused by the increase in prices of raw
materials, which renders imports more expensive. As for exports, the increase is slower due to the
appreciation of the rupie in relation to the dollar (most exports being made in dollars) and the
contraction in global demand.
The Indian government lowered the customs duties and the others non-tariff barriers on all the sectors.
Nevertheless, agriculture, insurance, and retail are still widely protected.

Foreign trade indicators 2005 2006 2007 2008 2009

Imports of goods (millions USD) 142,870 178,410 229,371 321,031 243,636

Exports of goods (millions USD) 99,616 121,808 150,159 194,828 155,249

Imports of services (millions USD) 47,025 58,345 70,338 88,394 74,387

Exports of services (millions USD) 52,199 69,456 86,648 102,562 86,255

Imports of goods and services (annual % change) 45.6 24.5 7.7 17,852.0 -

Exports of goods and services (annual % change) 14.8 18.9 7.5 12,827.0 -

Imports of goods and services (in % of GDP) 22.7 25.2 24.4 28,024.0 -

Exports of goods and services (in % of GDP) 19.9 22.2 21.3 22,673.0 -

Trade Balance (millions USD) -32,526 -43,078 -81,663 -127,150 -

Trade Balance (including service) (millions USD) -24,684 -31,261 -42,290 -80,755 -

Foreign trade (in % of GDP) 42.5 47.4 45.7 50,697.0 -

Source: WTO - World Trade Organization ; World Bank

 
Main partner countries

Main customers
2008
(% of exports)

United States 11.8%

United Arab Emirates 10.5%

China 5.6%

Singapore 4.9%

Hong Kong 3.7%

United Kingdom 3.6%

Netherlands 3.6%

Germany 3.3%

Saudi Arabia 3.0%

Belgium 2.6%

Italy 2.2%

South Korea 2.1%

Japan 2.0%

Brazil 1.8%

Bangladesh 1.8%

France 1.7%

Malaysia 1.7%

Sri Lanka 1.6%

Spain 1.5%

Indonesia 1.5%

See more countries 63.6%

Main suppliers
2008
(% of imports)

China 10.0%

United States 7.8%

Saudi Arabia 7.3%

United Arab Emirates 6.2%

Iran 4.4%

Switzerland 4.1%

Germany 3.6%

Kuwait 3.4%

Nigeria 3.2%

Australia 3.0%

Iraq 3.0%

South Korea 2.6%

Singapore 2.6%

Japan 2.5%

Malaysia 2.4%

Indonesia 2.0%

France 2.0%

United Kingdom 2.0%

South Africa 1.8%

Belgium 1.7%

See more countries 64.4%

Source: Comtrade

Main products
Main exports
2008
(% of exports)

Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their
18.1%
distillation; bituminous substances; mineral waxes

Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious

stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; 11.1%
coin

Iron and steelIron and steel 4.5%

Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical
4.5%
appliances; parts thereof

Organic chemicalsOrganic chemicals 4.3%

Electrical machinery and equipment and parts...Electrical machinery and equipment and parts
thereof; sound recorders and reproducers, television image and sound recorders and 3.9%
reproducers, and parts and accessories of such articles

Ores, slag and ashOres, slag and ash 3.6%

Articles of iron or steelArticles of iron or steel 3.4%

Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock,
3.3%
and parts and accessories thereof

Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not
3.2%
knitted or crocheted

Pharmaceutical productsPharmaceutical products 2.8%

CottonCotton 2.5%

Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted
2.4%
or crocheted

CerealsCereals 2.2%

Plastics and articles thereofPlastics and articles thereof 1.5%

Residues and waste from the food industries;...Residues and waste from the food industries;
1.5%
prepared animal fodder

Ships, boats and floating structuresShips, boats and floating structures 1.4%

Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and 1.3%
Main exports
2008
(% of exports)

worn textile articles; rags

Copper and articles thereofCopper and articles thereof 1.3%

Miscellaneous chemical productsMiscellaneous chemical products 1.1%

Coffee, tea, maté and spicesCoffee, tea, maté and spices 1.0%

Rubber and articles thereofRubber and articles thereof 0.9%

Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel
0.9%
goods, handbags and similar containers; articles of animal gut (other than silkworm gut)

Man-made filamentsMan-made filaments 0.9%

Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles 0.9%

Sugars and sugar confectionerySugars and sugar confectionery 0.9%

Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof 0.8%

Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their
derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other 0.8%
mastics; inks

Man-made staple fibresMan-made staple fibres 0.8%

Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials,
0.7%
lime and cement

Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other
0.7%
aquatic invertebrates

Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of

0.7%
precious metals, of rare-earth metals, of radioactive elements or of isotopes

Aluminium and articles thereofAluminium and articles thereof 0.7%

Meat and edible meat offalMeat and edible meat offal 0.7%

Carpets and other textile floor coveringsCarpets and other textile floor coverings 0.7%

Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons 0.6%

Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, 0.6%

measuring, checking, precision, medical or surgical instruments and apparatus; parts and
Main exports
2008
(% of exports)

accessories thereof

Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous
0.5%
grains, seeds and fruit; industrial or medicinal plants; straw and fodder

Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos,
0.5%
mica or similar materials

Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and
0.5%
leather

Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery,
0.4%
cosmetic or toilet preparations

Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers 0.4%

Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes 0.4%

Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of
0.3%
base metal; parts thereof of base metal

Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage
0.3%
products; prepared edible fats; animal or vegetable waxes

Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of
0.3%
paper or of paperboard

Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress

supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere
0.3%
specified or included; illuminated signs, illuminated name-plates and the like; prefabricated
buildings

Lac; gums, resins and other vegetable saps and...Lac; gums, resins and other vegetable saps and
0.3%
extracts

Glass and glasswareGlass and glassware 0.2%

Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey;
0.2%
edible products of animal origin, not elsewhere specified or included

Zinc and articles thereofZinc and articles thereof 0.2%

Miscellaneous articles of base metalMiscellaneous articles of base metal 0.2%

SilkSilk 0.2%
Main exports
2008
(% of exports)

Works of art, collectors' pieces and antiquesWorks of art, collectors' pieces and antiques 0.2%

Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing

preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring
0.2%
preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental
preparations with a basis of plaster

Miscellaneous edible preparationsMiscellaneous edible preparations 0.1%

Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other

0.1%
parts of plants

Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans,

0.1%
molluscs or other aquatic invertebrates

Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk;

0.1%
pastrycooks' products

Miscellaneous manufactured articlesMiscellaneous manufactured articles 0.1%

Special woven fabrics; tufted textile fabrics;...Special woven fabrics; tufted textile fabrics; lace;
0.1%
tapestries; trimmings; embroidery

Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches;

0.1%
glues; enzymes

Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other
0.1%
products of the printing industry; manuscripts, typescripts and plans

Ceramic productsCeramic products 0.1%

Other vegetable textile fibres; paper yarn and...Other vegetable textile fibres; paper yarn and
0.1%
woven fabrics of paper yarn

Prepared feathers and down and articles made of...Prepared feathers and down and articles made
0.1%
of feathers or of down; artificial flowers; articles of human hair

Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal 0.1%

See more products 57.5%

Main imports
2008
(% of imports)

Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their
36.7%
distillation; bituminous substances; mineral waxes

Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious

stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; 11.1%
coin

Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical
9.0%
appliances; parts thereof

Electrical machinery and equipment and parts...Electrical machinery and equipment and parts
thereof; sound recorders and reproducers, television image and sound recorders and 7.1%
reproducers, and parts and accessories of such articles

FertilizersFertilizers 3.9%

Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof 3.9%

Iron and steelIron and steel 3.4%

Organic chemicalsOrganic chemicals 2.8%

Ores, slag and ashOres, slag and ash 1.7%

Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of

1.5%
precious metals, of rare-earth metals, of radioactive elements or of isotopes

Ships, boats and floating structuresShips, boats and floating structures 1.5%

Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic,

measuring, checking, precision, medical or surgical instruments and apparatus; parts and 1.5%
accessories thereof

Plastics and articles thereofPlastics and articles thereof 1.4%

Articles of iron or steelArticles of iron or steel 1.2%

Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock,
1.0%
and parts and accessories thereof

Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage
1.0%
products; prepared edible fats; animal or vegetable waxes
Main imports
2008
(% of imports)

Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials,
0.8%
lime and cement

Miscellaneous chemical productsMiscellaneous chemical products 0.7%

Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of
0.6%
paper or of paperboard

Rubber and articles thereofRubber and articles thereof 0.6%

Aluminium and articles thereofAluminium and articles thereof 0.5%

Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal 0.5%

Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers 0.5%

Copper and articles thereofCopper and articles thereof 0.5%

Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons 0.4%

Pharmaceutical productsPharmaceutical products 0.3%

Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their
derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other 0.3%
mastics; inks

Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material;
0.3%
recovered (waste and scrap) paper or paperboard

CottonCotton 0.2%

Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress

supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere
0.2%
specified or included; illuminated signs, illuminated name-plates and the like; prefabricated
buildings

Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of
0.2%
base metal; parts thereof of base metal

Nickel and articles thereofNickel and articles thereof 0.2%

Man-made filamentsMan-made filaments 0.2%

Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated

0.2%
textile fabrics; textile articles of a kind suitable for industrial use
Main imports
2008
(% of imports)

Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other
0.2%
products of the printing industry; manuscripts, typescripts and plans

Ceramic productsCeramic products 0.2%

Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and
0.2%
leather

Glass and glasswareGlass and glassware 0.1%

Lead and articles thereofLead and articles thereof 0.1%

SilkSilk 0.1%

Wool, fine or coarse animal hair; horsehair yarn...Wool, fine or coarse animal hair; horsehair yarn
0.1%
and woven fabric

Miscellaneous articles of base metalMiscellaneous articles of base metal 0.1%

Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing

preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring
0.1%
preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental
preparations with a basis of plaster

See more products 32.1%

Source: Comtrade

See more products

More imports (Intracen Data)

More exports (Intracen Data)

Sources of general economic information

Ministries

Ministry of Finance
Ministry of Agriculture
Ministry of Commerce and Industry
Ministry of Micro, Small and Medium Enterprises

Statistical Office

Directorate General of Commercial Intelligence & Statistics

Central Bank

Reserve Bank of India

Stock Exchange

National Stock Exchange

Bombay Stock Exchange

Search Engines

123India
Altavista India
Cyberindian
Indiaa2z
India Atlas
India Connect
Indiatimes
India-World
Indo Link
New India
Search India
Sify
Surf India
Web India
Yahoo! India

Economic portals

Business World
Business Line
Business Standard
Business Today

Political outline
Executive Power

President is the chief of the state and is elected by an electoral college consisting of elected members of
both houses of Parliament and the legislatures of the provinces for a five-year term.

Prime Minister is the head of the government and is chosen by parliamentary members of the majority
party following legislative elections, to serve a term of five years. The President, on the recommendation
of the Prime Minister, appoints the Cabinet.

Legislative Power

The legislature is bicameral. The Parliament consists of: Council of States and the People's Assembly.
People of India enjoy considerable political rights.

Main political parties

India has a multi-party system with predominance of small regional parties.

The major political parties in the country are:

- Indian National Congress: a major political party involved in India's independence movement
- Bharatiya Janta Party: pro-Hindu, nationalist ideology,
- Communist Party of India: Marxism-Leninism,
- Bahujan Samajwadi Party: draws support from backward classes & religious minorities.

Current political leaders

President: Mrs. Pratiba Patil (since July 2007) - non-partisan

Prime Minister: Manmohan SINGH (since May 2004, reelected in May 2009) – INC, heading a coalition
government with CPI(M) & other parties.

Next election dates

Presidential: July 2012

Indicator of freedom of the press

World Rank:

118/173

Evolution:

2 places up compared to 2007

 Chapter 6

Conclusion:

Globalization in India had a favorable impact on the overall growth rate of the economy. This is major
improvement given that India’s growth rate in the 1970’s was very low at 3% and GDP growth in
countries like Brazil, Indonesia, Korea, and Mexico was more than twice that of India. Though India’s
average annual growth rate almost doubled in the eighties to 5.9%, it was still lower than the growth
rate in China, Korea and Indonesia. The pickup in GDP growth has helped improve India’s global position.
Consequently India’s position in the global economy has improved from the 8thposition in 1991 to 4th
place in 2001. A growth rate of above 8% was an achievement by the Indian economy during the year
2003-04.India’s GDP growth rate can be seen from the following graph since independence.