OPINION Vol.1, No.1 June 2013 - National Defence University

However, it remains to be seen, whether India can redistribute the fruits of its economic growth to
the wider society across the board.
Macroeconomic Indicators. India has been one of the world’s best-performing economies since
late 1990s, claiming to recover millions out of poverty. According to World Bank, Gross Domestic
Product (GDP) in India was worth 1.847 Trillion US dollars in 2011-12. Historically, from 1960
until 2012, India GDP averaged 368.8 Billion USD 15 . Sheer rise in reserves from one billion USD in
1991 to around 300 billion is a great indicator of the immense Indian economic potential. India
accounts for 1.3 percent of world merchandise trade and ranks 21 st among leading exporting
countries in the world. Among leading importers, India is ranked 14 and accounts for 2 percent of
total global imports. India is ranked second after China in A.T.Kearney FDI Confidence Index
2012 16 . UNCTAD’s World Investment Prospects Survey 2010-12 ranks India as second most
favored investment destination (behind China). Symbols of India's new found wealth and power
abound. In 2012, 55 Indians were included in Forbes' list of the world's billionaires, up from 23 in
2006. Indian firms have been going global; in 2006, Indian steel magnate Lakshmi Mittal purchased
the French company Arcelor, creating the world's largest mining and steel firm; in 2008, the Indian
conglomerate Tata purchased the iconic British Jaguar and Land Rover brands from Ford. India has
spent $514 billion in infrastructure development during the 11 th Five Year Developmental Plan
(2007-2012) and planning to invest approx one trillion USD in current 12 th Five Year
Developmental Plan (2012 - 2017) 17 . India is the leading country for offshore outsourcing. The
offshore outsourcing industry started in India and it has been able to capture more than half the
world offshore outsourcing industry. 18 One of the most dynamic contributors to the country’s
economic growth has been the information technology sector, employing 1.8 million workers
directly with spin-off effect to other sectors like bio-pharmacy, healthcare and finance.
English: Language of Success. India is ranked second after USA with over 100 million population
having expertise in speaking English 19 . This factor has greatly facilitated the entrance of Indian
companies into position of global market leadership, thereby accelerating India’s transition to a
position of global economic leadership.
Demographic Dividend. India’s biggest asset is its people. At a time when the industrialized
world is aging rapidly, India has the advantage of a young population. It is expected that, in 2020,
the average age of an Indian will be 29 years, compared to 37 for China and 48 for Japan. However,
a young population is an asset only if it is educated, skilled and finds productive employment.
India’s demographic transition is presently well underway, and, unlike in China, the age structure of
the population here is likely to evolve favourably over the next two to three decades 20 .
Excellence in Higher Education Standards. India has devoted a large proportion of its education
resources to higher education, particularly in science and technology. There are 380 universities and
1,500 research institutes; from which 200,000 engineers, 300,000 technicians and 9,000 PhDs
graduate every year 21 . Indian government is planning to create 800-1000 new universities in next
one decade in collaboration with International Universities 22 . Central government spending on the
social sector, including health care and education, has risen from 13.4 percent of the total budget in
2007 to 18.5 percent in 2012.
Indian Diaspora. The Indian Diaspora is strong and spread across all continents and most countries
of the world. It is a great potential tool for attracting investment, accelerating industrial development
and boosting international trade and tourism effort for India. Only in US, Indian Diaspora today
stands over 3 million. While the 2012 presidential election drew less than 1 million voters from the
community; Indian-Americans are becoming very visible in the political scene 23 . Such an influential
Indian Diaspora also provides strong guarantee for developing a long term Indo-US strategic
partnership. Similarly, a large number of influential politicians, businessmen, professional and think
tanks are pursuing a supporting agenda for India in major power centres across the world.
Soft Power. India's soft power has now been on display for many decades: Indian philosophy has
captivated Western minds since the 1960s; Bollywood's impressive celluloid fare has long drawn
huge audiences in Asia, Africa, and beyond. 24 Indian government’s efforts over the last decade have
further helped promote a new and modern image of India abroad. Simultaneously many aspects of
Indian culture like music, food, style and religions have become fashionable in many parts of the
world.
OPINION Vol.1 No.1 36 June 2013