India a global leader in world affairs

MY INDIA

A GLOBAL LEADER IN WORLD AFFAIRS

LETS ANALYSE OUR STATUS ON THIS EARTH.WHERE ARE WE AND WHEREARE WE HEADING TO?

INTRO

• INDIA’S STABLE DEMOCRATIC POLITICAL

SYS, HUGE MIDDLE-CLASS POPULATION,

IMMENSE MILITARY CLOUT IN SOUTH

ASIA, RISING ECONOMIC FORTUNES AND

GLOBAL AMBITIONS MAKE IT A

POTENTIAL POWER THAT COULD PLAY A

VERY IMPORTANT ROLE IN WORLD

AFFAIRS.

C

• INDIA’S POLICIES EMBODY A BLEND OF PRAGMATISM AND NATIONALISM, AND ITS GOAL IS TO PLAY A KEY ROLE IN WORLD AFFAIRS. INDIA’S ECONOMIC GROWTH AND ABILITY TO MANAGE ITS KEY DIPLOMATIC RELATIONSHIPS WILL DETERMINE THE SIZE OF THE INTERNATIONAL ROLE IT CRAFTS OVER THE NEXT FIFTEEN YEARS. ITS LEADERS’ SKILL IN BALANCING THE COMPETING OBJECTIVES OF ITS FOREIGN POLICY WILL HELP SHAPE THE DIRECTION TAKEN BY BOTH INDIA AND THE WORLD.

AIM

THE AIM OF THIS PRESENTATION

IS TO UNDERSTAND THE ROLE OF

INDIA AS A GLOBAL LEADER IN

WORLD AFFAIRS.

SCOPE

THE SEMINAR WOULD COVER THE FOLLOWING ASPECTS:-

o RISE OF INDIA.o INDIA’S STABLE DEMOCRATIC POLITICAL

SYS. o ECONOMIC LEAP. o INCREASING MILITARY CL OUT. o GLOBAL REACH. o FOREIGN AFFAIRS. o INFLUENCE IN WORLD AFFAIRS. o FUTURE COURSE. o CONCLUSION.

TIME PLANS/NO TOPIC TIME

(MINS)REMARKS

1 INTRO 05

2 RISE OF INDIA. 10

3 INDIA’S STABLE DEMOCRATIC POLITICAL SYSTEM.

05

4 ECONOMIC LEAP. 15

5 INCREASING MILITARY CLOUT. 10

6 GLOBAL REACH. 05

7 FOREIGN AFFAIRS. 10

8 INFLUENCE IN WORLD AFFAIRS. 10

9 FUTURE COURSE. 05

10 INTERACTIVE SESSION & CONCLUSION.

15

TOTAL 90

ASPECTS COVERED

o TRANSITION FROM AGRARIAN TO INDUSTRIAL ECONOMY. CURRENTLY A PERFECT BLEND OF THE BOTH.

o DECREASING POVERTY.

o WORLD’S BIGGEST HUMAN RESOURCE POOL. 63 PERCENT OF POPULATION BELOW 30 YEARS.

o ABUNDANCE OF SKILLED TECHNOCRATS.

o ABUNDANCE OF NATURAL RESOURCES LIKE BAUXITE, IRON ORE, MICA AND COAL.

o TRADE POLICIES LIBERALISED. VARIOUS TRADING PARTNERS INVITED FOR TRADE.

o PHENOMENAL RISE OF THE CORPORATE SECTOR.

o INCREASED REVENUE AND PUBLIC EXPENDITURE OF INDIAN GOVT.

 o EMERGENCE OF A STRONG AND SUBSTANTIAL RURAL AND

URBAN MIDDLE CLASS.

RISE OF INDIA.

• TRANSITION FROM AGRARIAN TO INDUSTRIAL ECONOMY. CURRENTLY A PERFECT BLEND OF THE BOTH.

• IN ADDITION TO AGRICULTURE THERE HAS BEEN DEVELOPMENT IN ALMOST EVERY SECTOR

THE INDIA MODEL IS UNIQUE

Employment

Sector 1961 2004-05

Agriculture 75.9 56.4

Industry 10.6 18.2

Tertiary 12.4 25.4

Total 100.0 100.0

DECREASING POVERTY

INDIAS POVERTY LEVEL HAS CONSIDERABLY COME DOWN IN THE

PAST FEW DECADES. HERE ARE SOME FIGURES.

Poverty• Income poverty declined from 55% in the early

1970s to 28% in 2004-05. • Although there has been progress in decline, still

more than 300 million below poverty line.• World Bank Estimates: 42% below $1.25 poverty

line. ADB 65% with $1.35 poverty line• 80% of the poor are from rural areas.• Poverty concentrated in few states (Bihar, Uttar

Pradesh and Madhya Pradesh and Orissa, Chattisgarh and Jharkhand)

• Concentrated among agricultural labourers, casual workers, Scheduled Castes and Scheduled Tribes

RISE IN PER CAPITA INCOME: LAST FIVE DECADES

2013

7

36

70

1950s 1960s 1970s 1980s 1990s

The fastest rise in incomes….

% rise in per capita income

1980 46%

2000 26% 2010 16%

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

Poverty is declining

Number of poor (in million)

Year Number (million)

1973-74 321

1983 323

1993-94 320

2004-05 302

Trends in Poverty (%): India

Year Rural Urban Total

1973-74 56 49 55

1983 46 41 45

1993-94 37 32 36

2004-05 28 26 28

(US$ ppp)

1980 1178

2000 3051

Source: World Bank

Per capita income gains

HUMAN RESOURCE POOL- OUR BIGGEST SRTRENGTH

• WE HAVE SUCCEEDED IN CONVERTING OUR HUGE POPULATION AS OUR BIGGEST ASSET

• WE HAVE ABUNDANT YOUTH WITH EDUCATIONAL STANDARDS AKIN TO THE WESTERN WORLD.

• WE HAVE ABUNDANT TECHNOCRATS AND TRAINING INSTITUTIONS

The Indian Population: An Overview

36

30

37 3839 39

44 44

USA China Russia UK

24

30

35

40

45

50

Med

ian

ag

e in

yea

rs

24

India

31

2000 2025

Indians are Younger than the World…

India: Increasing Working Population

-3

0

10

17

31

33

44

64

71

314

-5 45 95 145 195 245 295 345

Stock Position 2005

South East Asia 362

Southern Asia 132

India 691

Africa 500

China 934

Latin America 359

USA 200

Europe 497

Japan 85

World 4,168

Growth in Global Working Age Population (15-64)

In Million

Countries worldwide are anticipating a shortage of working population in the future. India is expected to emerge as a clear winner and by 2050 it will have the largest working age population.

Addition to working age population by 2010

LIBERALISED TRADE POLICIES

1000 Indian Companies have received foreign institutional investment 100 Indian Companies have

market capital of US$ 1 billion

FDI : Inward and outward

02 August 2008 24General: AV

0

5

10

15

20

25

30

35

FDI

(

US

$

billion)

FDI Inbound FDI Outbound

Rise of globally competitive

Indian companies:

Reliance, Jet Airways, Infosys, Wipro,

Ranbaxy, Bharat Forge, Tata Motors,

TCS, Bharati, ICICI and HDFC Banks

INDIA’S STABLE DEMOCRATIC POLITICAL SYS

• WORLD’S MOST DIVERSE NATION- MULTILINGUAL, MULTIETHNIC AND VARIOUS RELIGIONS, SUB-RELIGIONS, CULTURES AND SUB-CULTURES.

• WORLD’S BIGGEST SUCCESSFUL DEMOCRACY COMPRISING OF 1100 MILLION PEOPLE.

• SUCCESSFUL IN MAINTAINING A NEUTRAL AND SECULAR IMAGE ON CONFLICTING SOCIAL ISSUES.

• IMMENSELY SUCCESSFUL IN ACHIEVING SOCIAL AND POLITICAL STABILITY IN SPITE OF HAVING POTENTIALLY HOSTILE NEIGHBOURS AND IMMINENT INTERNAL SECURITY THREAT FROM TURBULENT AREAS WITHIN OUR OWN TERRITORY.

• AN EXEMPLARY JUDICIAL SYSTEM FURTHER IMPROVED BY INTRODUCTION OF FAST TRACK COURTS.

• EXTENSION OF RIGHTS TO THE CITIZENS(RIGHT TO INFORMATION).

Fastest Growing Free Market Democracy

ECONOMIC LEAP• CURRENTLY INDIA IS THE WORLD’S FOURTH LARGEST

ECONOMY. SOON IT IS GOING TO SURPASS JAPAN TO BECOME THE THIRD LARGEST ECONOMY.

• LABOUR INTENSIVE ECONOMIC STRATEGY PAYING DIVIDENDS INCREASING THE INCOME AND PURCHASING POWER OF COMMON PEOPLE.

• GROWTH RATE OF OUR ECONOMY IS 7.5 PERCENT I.E. COMMENDABLE AND VERY HIGH IN COMPARISON WITH REST OF THE WORLD.

• THE NEW CONSUMPTION DRIVEN MODEL IS PEOPLE FRIENDLY.

• PHENOMENAL SUCCESS OF PRIVATE ENTERPRISES. SOAR IN THE STOCK MARKET IS A TESTIMONY TO THIS.

The Indian Economy: An Overview

The economy is riding high

% annual growth in GDP

4.4

8.56.9 7*

2002-03 2003-04 2004-05 2005-06

• India is the 4th largest economy in the world as measured by purchasing power

• Between 1980 and 2003, India’s economy grew at an average rate of 5.7%

•

The Indian Economy: An Overview

India: Pacing Ahead to Emerge as the Major Economy in the Globe

Projected GDP Growth Rates for Select Upcoming Economies

0

2

4

6

8

GD

P G

row

th R

ate

(%

)

Brazil

China

India

Russia

0

20

40

60

80

100

India Russia Vietnam Ukraine China Chile Latvia

GR

DI

Sco

re

2006 Global Retail Development Index (GRDI)

2005 Global Services Location Index

3.27

1.62

3.56

2.95

3.21

3.47

1.51

2.67

1.06

2

1.17

1.26

0.94

1.44

1.16

1.12

1.76

2.14

Thailand

Singapore

Philippines

Malaysia

China

India

Financial structure Business environment

People and skill availablity

India has been ranked superior to other major countries by many prominent surveys…

AT Kearney placed India among the top three in its FDI confidence index…

… retail market along with services sector has been attracting lot of interest from the major players

India is expected to outperform its rivals in the BRIC, in terms of GDP growth rates from 2015 onwards…

• PROLIFERATION OF SMALL SCALE INDUSTRIES.

• TRADE TIES STRENGTHENED WITH DEVELOPED COUNTRIES. CURRENTLY CHINA AND US ARE OUR BIGGEST TRADE PARTNERS.

INCREASING MILITARY CLOUT

• SIGNIFICANCE OF INDIA BEING A NUCLEAR STATE IS BEING ACKNOWLEDGED BY EXISTING SUPERPOWERS.

• COMBAT EXERCISES WITH LEADING ARMIES OF THE WORLD. TO NAME A FEW ARE JOINT EXERCISES WITH RUSSIAN SPECIAL FORCES IN THE DESERT OF RAJASTHAN, MOCK ASSAULTS FROM THE SEA WITH FRENCH TROOPS. LOW LEVEL EXERCISES UNDER CONSIDERATION WITH COUNTRIES LIKE MONGOLIA, SINGAPORE AND UZBEKISTAN.

• PROACTIVE NAVAL EXERCISES. CONDUCT OF MULTI NATION EXERCISE “MILAN”.

• ACQUISITION OF “DEEP NUCLEAR STRIKE CAPABILITY” TECHNOLOGY FROM RUSSIA BY PURCHASE OF SUKHOI-30MKI.

• CLEARANCE OF AGNI-III, THE NUCLEAR CAPABLE LONG-RANGE (3500KM) MISSILE FOR INDUCTION INTO THE ARMY.

• INDIA HAS ATTAINED SELF SUFFICIENCY IN ITS MISSILE PROGRAMME.

• ACTIVE MILITARY ROLE IN SOUTH ASIA SINCE1970 (BANGLADESH, MALDIVES, SRI LANKA) AND IMPORTANT ROLE IN UNITED NATIONS PEACE KEEPING MISSIONS.

• STRATEGIC LOCATION OF INDIA BORDERING PAKISTAN, CHINA, AND AFGANISTAN ENHANCES ITS MILITARY IMPORTANCE.

• HUGE RESERVOIR OF ABLY TRAINED PARA MILITARY FORCES AND COUNTER INSURGENCY EXPERIENCED ARMY INCREASE INDIA’S MILITARY CLOUT.

GLOBAL REACH

• INDIA’S SPACE PROGRAMME HAS BEEN QUITE SUCCESSFUL IN THE PAST. THE LAUNCH OF GSLV-D3, THOUGH A FAILURE REPRESENTS THE ENDEAVOUR TO ACHIEVE EXCELLENCE IN SPACE TECHNOLOGY.

• THE ADVANCEMENT IN IT SECTOR HAS BENEFITED INDIA BY PROVIDING A GLOBAL REACH IN TRADE AND COMMERCE. AS OF NOW INDIA IS ONE OF THE BIGGEST EXPORTERS OF COMPUTER SOFTWARES.

• THE IMMENSE POPULATION OF NRI’S VIRTUALLY PRESENT IN EVERY CORNER OF THE WORLD PROVIDING US WITH FOREIGN EXCHANGE AND TRADE OPPORTUNITIES.

• RISING NUMBER OF INDIAN COMPANIES GOING GLOBAL.

• SOARING NUMBERS OF INDIAN STUDENTS GOING ON EDUCATION VISAS TO US, EUROPE AND AUSTRALIA. 

 • INDIA’S ENDEAVOUR TO ENHANCE ITS GLOBAL

REACH IS VISIBLE IN PURSUIT OF GETTING A PERMANENT SEAT IN UN SECURITY COUNCIL AND G8.

FOREIGN AFFAIRS• INDIA’S ENDEAVOUR TO SEEK INTERNATIONAL SUPPORT FOR

PREVALENCE OF PEACE IN DISTURBED AND TERRORISM INFLICTED AREAS ESPECIALLY WITHIN ITS OWN TERRITORY.

• GETTING INTERNATIONAL SUPPORT AGAINST WAR ON TERROR INSTIGATED BY HOSTILE NEIGHBOURS.

• STRATEGIC PARTNERS AS RUSSIA, ISRAEL, AFGANISTAN, FRANCE, NEPAL, AND BHUTAN.

• ISRAEL TO OVERTAKE RUSSIA AS STRATEGIC MILITARY PARTNER. MILITARY RELATIONS WITH US, UK, JAPAN, SINGAPORE, BRAZIL, SOUTH AFRICA, AND ITALY.

• DEFENCE ACCORD WITH QATAR IN 2008.

• “LOOK EAST POLICY” HELPED IN GREATER ECONOMIC AND STRATEGIC PARTNERSHIP WITH SOUTH KOREA, JAPAN, AND TAIWAN.

INFLUENCE IN WORLD AFFAIRS

• MOST PROMINENT ROLE TO PLAY IN ENSURING PEACE IN SOUTH ASIA.

• US ITSELF BEING A VICTIM OF TERROR HAS BUT NO CHOICE TO LOOK UPON INDIA WHO CAN PLAY A PIVOTAL ROLE IN CURBING THE MENACE OF TERROR ORIGINATING IN PAKISTAN.

• INFLUENCE ON REGIONAL NEIGHBOURS LIKE NEPAL, BHUTAN, AND BANGLADESH.

• BID FOR INCLUSION IN UN SECURITY COUNCIL AND G8.

• INFLUENCE THE WORLD LEADERS FOR SECURING THE FUTURE OF ENERGY RESOURCES VITAL FOR INDIA’S GROWTH.

FUTURE COURSE RATE OF POPULATION GROWTH HAS DIPPED FROM 2.2% IN 1980

TO 1.7% IN 2008. GOOD NEWS.

GROWTH RATE OF ECONOMY CAN FURTHER BE INCREASED TO 9% FROM THE EXISTING 7.5%.

  NUCLEAR DEAL WITH US SEES ITS WAY THROUGH.  THE GROWING DEMAND FOR ENERGY NEEDS TO BE FULFILLED.  INCLUSION IN UN SECURITY COUNCIL AS A PERMANENT

MEMBER.  ESTABLISH OUR OWN GPS SERVICES.  MODERNISATION OF SECURITY FORCES.

By 2020 India’s GDP is likely to quadruple from the current $ 1.1 Trillion to about $ 4.5 trillion Per capita income from Rs 50,000 to Rs 1,50,000

CONCLUSION

EVERY ONE HAS WITNESSED THE BEGINNING OF INDIA’S EMERGENCE AS A GLOBAL LEADER. WE NEED TO CAPITALISE THE DEVELOPMENTS WE MADE IN THE LAST DECADE. WE ARE STILL A LONG WAY TO GO. KEEPING OUR CURRENT PACE CLUBBED WITH SOME MORE DEVELOPMENTS WE CAN HOPE OF BECOMING A SUPERPOWER IN NEXT 20 YEARS.

THANK YOU