Country Report
India
Brief History
Human civilization in the Indian subcontinent can be traced back to the Early Stone Age (about 400,000BC). The hunters and gatherers inhabited that area for many thousands of years. The first agricultural settlements in the Indian Peninsula were at the same time as those in Egypt, Persia, and Mesopotamia. The settlements grew and the people began to domesticate animals, use metals, make pottery, and conduct trade.
The first Europeans to arrive were the Portuguese who were attracted to India due to the spices available. When the Cape of Good Hope route was established by Vasco de Gama in the late 15th century the Portuguese settled in India. They had rather a tenuous hold on the territory with the British, French, and Dutch also establishing settlements by the 16th century.
Inevitably the settlers developed rivalries with the British the eventual victors. India became the "jewel in the crown" of the British Empire. India provided a boost to the Industrial Revolution of the 19th century by providing raw materials, capital, and a large market for British goods. By 1857 the British had total imperial rule over all of India. In that year there was a mutiny in the British army by Indians, which resulted in the First War of Independence. The uprising was brutally quashed by the British and ended with the British declaring that the Crown's viceroy in India to be the chief executive.
Unwittingly the British aided in the Indian struggle for independence. First, the railway system built by the British to link all of India and facilitate the transportation of raw materials to port cities also gave the people of that vast country the opportunity to connect with each other. Secondly, the British needed to recruit Indians to help in the administration of the country and this necessitated establishing a western education system. The Indians were educated in the western ideas of democracy, freedom, and equality, which led to the rise of their freedom movement. In 1885 the Indian National Congress was formed in a spirit on national unity.
A British trained lawyer, Mohandas Gandhi became the undisputed leader of the Congress in the early 20th century. Under his leadership the Indians began a series of civil disobedience movements known as the Non-cooperation Movement of 1920-1922. In August of 1942 the Quit India Movement was launched to allow Indians freedom from the "slavery" of the British who launch their own brutally oppressive retaliation. After the Second World War the British decided that maintaining their empire in India would cost them enormously so they transferred power to the Indians. On August 15, 1947 the Indians gained their independence from the British.
Economic Profile
| Year | 1995 | 1996 | 1997 |
| GDP | US$326 billion | US$372 billion | US$427 billion |
| GDP Per Capita | US$354.00 | US$397.00 | US$449.00 |
Average GDP growth (1995 - 1997) was 7%
1980s Indian policies of fueling economic growth through high government expenditure proved unsustainable in the 1990s. Since an international payment crisis in 1991 India has been adapting its semi-socialist, insular economy into a more open, market-oriented economy. Production, trade and investment reforms have provided new opportunities for Indian businesspersons and middle class consumers.
Major imports: crude oil and petroleum products, machinery, gems, fertilizer, and chemicals.
Main partners: US, Germany, Saudi Arabia, UK, Belgium, and Japan.
Total US$ 34.5 billion (includes freight charges)
Major exports: clothing, gems and jewelry, engineering equipment, chemicals, cotton yarn and fabric.
Main partners: US, Japan, Germany, UK, and Hong Kong.
Total US$30.5 billion
Fourth largest coal reserves in the world, iron ore, manganese, mica, bauxite, titanium ore, chromate, natural gas, diamonds, petroleum, limestone.
Average annual rate (1995 - 1997) was 22.5%
370 million
By occupation: agriculture 65%, services 4%, manufacturing and construction 3%, communications and transportation 3%, and others 25%.
Recently the Indian government has introduced new policies in the industrial, financial and infrastructure sectors. These policies continue the liberalization and privatization of key industries as well as the reduction of entry barriers and regulatory controls. The Disinvestment Commission was created in 1996 in order to enhance receipts and minimize budgetary support for unprofitable units by selling government controlled companies to private investors.
Seven years after beginning a concerted effort to modernize its economy, India has attracted the attention of the international investment community. With a vast pool of skilled labor, an estimated 300 million middle class consumers, and a fairly well developed financial system, India offers a rich market and enormous production capacity. The economic policies instituted in 1991 opened India to foreign investment that had previously been allowed only if the foreign company possessed technology not available in India. The country is now the third most preferred destination for medium term foreign direct investment (5-10 years) behind only China and the US.
India is a member of the South Asia Association for Regional Cooperation along with Bangladesh, Bhutan, Maldives, Nepal, Pakistan, and Sri Lanka, which promotes regional cooperation among the countries.
-US$4.0 billion (7/98)
8.3% (7/98) down from 10.3% (1995)
Political Profile
India is a federal republic of 25 states and 7 union territories. The country has a bicameral parliament and an independent judiciary with their legal system based on English common law. National and state legislators are elected for 5 year terms, but elections can occur more frequently if a government is unable to maintain parliamentary confidence.
India is the largest democratic republic the world.
With the transition in governments and the testing of nuclear weapons, India political stability is tenuous at best.
Bangladesh, Bhutan, Burma, China, Nepal, and Pakistan
The countries ethnic groups as well as religious groups are represented in the elected legislators. The Hindu religion is the largest by far at 82% with Muslim 2nd at 12%, Christians 2.3%, Sikhs 2.1% and all others at less than 1% each.
India became a Republic on January 26, 1950 and chose to adopt the British system of Parliamentary Democracy. The Indian Parliament consists of two houses: the Rajya Sabha or Council of States and Lok Sabha or House of Representatives. The Council consists of 250 members mostly elected by the people, but some nominated by the President and is presided over by the Vice-President. The House is made up of 543 elected members. The President is the Head of State and is appointed through votes by an electoral college. The Prime Minister is the head of the government and is the majority leader in the House of Representatives.