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1.1 Introduction

The Republic of India is a large country with a population of over one billion people spread over 3.28 million sq. km. It has a federal structure of 35 states and union territories divided into nearly 600 districts. India has 32 different languages and numerous dialects. In the 19th century, Britain had assumed political control of virtually all Indian lands. By 1947 the people of India declared their independence.

1.2 Geography

India is located in Southern Asia, bordering Burma, Bhutan, China, Nepal and Bangladesh along the Arabian Sea and the Bay of Bengal. India has a diverse landscape with flat to rolling plains along the Ganges River, deserts in the west and the Himalaya mountain range in the north.

Figure 2

Image of Republic of India Map

Source :Ministry of Forign Affairs, Kingdom of Thailand

1.3 Socio-economic Profile

Demographics

The nationality of India is Indian with ethnic groups of Indo-Aryan comprising 72% of the population with Dravidian groups comprising 25%, and Mongoloid and others comprise the remaining 3%. Languages include Hindi as the national language which is the primary tongue of 30% of the population. There are 14 other official languages with English being spoken in business and political circles. Religious affiliations are broken down and shown as Figure 3:

Figure 3

Religious Affiliations 2001 Censes

Pie Chart of Religious Affiliations 2001 Census
Description

Other includes Buddist, Jain and Parsi
Source: Office of the Registrar General, Census of India 2001

Population

According to the 2001 Census of India, the total population was 1,027,015,247 compared to 838.6 million in 1991 representing an annual growth rate of approximately 1.5% per year. Estimates by the Asian Development Bank (ADB), have placed the total population in 2002 at 1,055 million.

Table 1: Total Population by Age and Sex 2001 Census
Age Groups Total % Male % Female %
1 − 6 157,863,145 15.4 81,911,041 51.9 75,952,104 48.1
6 − 65 + 869,152,102 84.6 449,366,037 51.7 419,786,065 48.3
Total
1,027,015,247 100 531,277,078 51.7 495,738,169 48.3

Source: Office of the Registrar General, Census of India 2001

Table 2: Total Population by Area and Sex
Sex Total % Rural % Urban %
Male 530,422,415 51.7 380,438,194 71.7 149,984,221 28.3
Female 494,828,644 48.3 359,817,177 72.7 135,011,467 27.3
Total 1,025,251,059 100.0 740,255,371 72.2 284,995,688 27.8

Source:Office of the Registrar General, Census of India 2001
Note:Total population figures differ due to deparate compiltoin source of office of the Registrar

Labor force

According to the 2001 census, approximately 39.3% of the total population were employed representing over 400 million people. Males showed a higher percentage of employment at 51.9% compared to females at 35.7%. Information from the 2001 census on employment figures by industrial sectors was not readily made available. Table 3 represents information from the ADB as of the end of 2000.

Table 3: Employment by Sector 2000 (in millions)
  Total %
Agriculture 1.42 2.0%
Manufacturing
6.62 9.6%
Mining 1.01 1.5%
Other 18.92 27.3%
Employed 27.96 40.3%
 
Unemployed 41.34 59.7%
Total Work Force
69.30 100.0%

Source:Asian Development Bank
As a percent of the working age population - age 15 years and over Includes only organized sectors only

Poverty Levels:

According to the United Nations, country-specific poverty lines are generally used due to variations between countries and is affected by local tastes and cultural norms. However, definitions are not particularly sensitive to more qualitative needs such as health care, housing and education. According to the ADB, in 1999 India had 26.1% of its population below the national poverty line with 27.1% represented in rural areas and 23.6% in urban areas.

Economic Indicators

India's economy encompasses traditional village farming, modern agriculture, handicrafts and a wide range of modern industries and support services. India is a major exporter of software services and workers.

Economic growth slowed in 2002, largely due to a drought-induced drop in agriculture. The industry sector showed increases, which is expected to continue in FY2003 and should lead to a moderate revival in GDP growth. Assuming normal monsoon conditions, the economy is projected to grow by 6% in FY2003 with agriculture and services increasing on average. Exports are expected to increase at over 15% in 2003, based on increasing world demand. Inflation will likely remain moderate at approximately 5%. The fiscal deficit is expected to remain at the average level of 9.5% of GDP during FY2003

Gross Domestic Product

Gross Domestic Product (GDP) growth averaged approximately 6% throughout the 1990s, however, it decreased to an average of 5% for FY2000 and FY2001. During FY2002 (ending March 31, 2003) GDP growth was approximately 4.4%. The general decline in GDP growth over the years is primarily attributable to a decrease in the service sectors growth and from external effects such as a global recession, drought, the impact of the government's large fiscal deficit and slow progress of reforms in certain sectors. The Asian Development Bank forecasts a 6.3% growth in GDP in the FY2003 with agriculture and services increasing on average.

GDP stood at approximately US$2.66 trillion in 2002 of which agriculture comprised 25%, while manufacturing and trade comprised 29.7%. Figure 4 shows the components of GDP by industrial origin.

Figure 4

GDP by Industrial Origin FY2002

Pie Chart of GDP by Industrial Origin
Description

Source: ADB Key Indicators 2002

Budget

According to the Reserve Bank of India, FY2002 revenues were US$48.3 billion, while expenditures were $78.2 billion (including capital expenditures of $14.5 billion) creating a budget deficit of US$29.9 billion. The central government's deficit narrowed to 5.9% of GDP in FY2002 from 6.1% the prior year. Combining the central and state government's deficits, results in a consolidated deficit of 9.3% of GDP. The overall fiscal deficit remains a major challenge for macroeconomic management. Public borrowings to finance the deficits were estimated at 72.6% of GDP in FY2001.

The ADB anticipates that tax measures in the FY2003 budget are expected to enhance the revenue-to-GDP ratio, however believes that without strong measures to contain the rapid growth in expenditures, the consolidated fiscal deficit is expected to remain at the average level of 9.5% of GDP.

Imports

Imports were approximately US$61.3 billion (fob) in FY2002 reflecting moderate growth of domestic industrial activity over FY2001. Imports of capital goods, especially in transport equipment, increased due to a recovery in construction activities along with six core infrastructure industries. Although consumer demand has increased in FY2002, it was led by domestic consumption and not overwhelmingly through imports.

Table 4: Imports FY2002 (In millions US$)
  FY2002 % of Total
Petroleum Products 17,640 28.8
Capital Goods 12,746 20.8
Other 9,836 16.1
Semi-precious stones 6,054 9.9
Gold / Silver 4,234 6.9
Chemicals
2,966 4.8
Consumption Goods 2,368 3.9
Coal, Coke, etc 1,222 2.0
Scientific goods 1,068 1.7
Ores and Metal 1,003 1.6
Textile 956 1.6
Iron and Steel
940 1.5
Nuts 254 0.4
Total 61,287 100.0

Source: Reserve Bank of India, DGCIandS

Exports

Exports were approximately US$52.2 billion (fob) in FY2002 and comprised textile goods, gems engineering goods, chemicals and leather manufacturers. Export growth recovered slightly in FY2002 after a global slowdown, exacerbated by the events surrounding September 11th in FY2001. The growth in exports during FY2002 was largely due to a partial recovery of global demand, an upturn in GDP, consumption expenditures in the US and a revival of growth in many Asian countries. The rise in consumer expenditures in the US in particular has aided the growth of exports of consumer items such as textiles, garments, gems and jewelry.

Table 5
Exports FY 2002 (In millions US$)
  FY2002 % of Total
Textiles 10,567 20.2
Gems and Jewelry 8,854 17.0
Engineering Goods
8,393 16.1
Chemicals
7,031 13.5
Agriculture Products
6,412 12.3
Others 3,149 6.0
Petroleum, Crude and Products
2,421 4.6
Ores and Minerals 1,900 3.6
Leather 1,787 3.4
Handicrafts
721 1.4
Carpets
497 1.0
Total 52,234 100.0

Source:Reserve Bank of India, DGCIandS

Figure 5

Export Trading Partners FY2002

Pie chart of Export Trading Partners
Description

Source: ADB Key Indicators 2002

1.4 Government

There are 28 states and 7 union territories. India is a federal republic whereby the President is elected by an electoral college consisting of elected members of both houses of parliament and the legislatures of the States for a five-year term. Vice Presidents are elected by both houses of Parliament for a five-year term. The Prime Minister is elected by parliamentary members of the majority party following legislative elections. The Prime Minister, Atal Bihart Vajrayee, was elected in March 1998, while the President, Abdul Kalam, was elected in July 2002. Figure 6 outlines the major ministries of the Government.

Figure 6

Major Ministries of the Government

Image: System of Major Ministries of the Government
Description

Source: Japan International Cooperation Agency, Country Profile on Disability, 2002

1.5 National Social Welfare System

The Government provides welfare schemes for the social services sector and over the past 10 years has increased the budgeted amount four-fold for welfare schemes for Scheduled Castes, Other Backward Classes and minorities as well as welfare and development of scheduled tribes. The Government also provides separate allocations for People with Disabilities (PWDS) under separate schemes. Based on the Government' economic survey conducted for outlays for the social sector for the fiscal year 2000, rural development, employment and poverty alleviation encompassed the largest share of social welfare schemes at 42% of total expenditures in the social sector.

Figure 7

Outlay of Major Schemes in Social Sector 2000 − 2001

Pie chart of Outlay on Major Schemes in Social Sector
Description

Source: Economic Survey 2000-2001

1.6 Education Profile

According to the Department of Education, there has been a considerable increase in the spread of educational institutions during the period 1950-51 and 2001-2002. During this period the number of Primary Schools increased by 3 times, while the Upper Primary Schools and Jr. Secondary Schools increased by 16 and 18 times respectively. The number of Colleges for general education and professional education increased by about 24 and 12 times respectively while the number of Universities increased by 10 times during the period. Primary education is compulsory for 5 years as incorporated in the constitution. Compulsory education has been enforced in four States and Union Territories (UTs) at the primary stage of education while in eight States/UTs there is compulsory education covering the entire elementary stage of education. The elementary education system in India is the second largest in the world with 149.4 millions children, ages, 6-14 years old enrolled in schools with over 2.9 million teachers.

Education system:

India's commitment to the spread of knowledge and freedom of thought among its citizens is reflected in its Constitution. The Directive Principle contained in Article 45 enjoins that "the State shall endeavor to provide within a period of ten years from the commencement of this Constitution, for free and compulsory education for all children until they complete the age of fourteen years". Article 29 provides that any citizen having a distinct language, script, special care of the economic and educational interests of the underprivileged sections, particularly, the Scheduled Castes and Scheduled Tribes is laid down as an obligation of the State. Although education is a constitutional right of Indian citizens, the State Governments play a major role in the development of education particularly in the primary and the secondary education sectors.

Structure:

According to the Department of Education, there are approximately 888,000 educational institutions in the country with an enrolment of approximately 179 million students.

A uniform structure of school education, the 10+2 system has been adopted by all the States and UTs of India. However, within the States and UTs, there remains variations in the number of classes constituting the Primary, Upper Primary, High and Higher Secondary school stages, age for admission to class I, medium of instruction, public examinations, teaching of Hindi and English, number of working days in a year, academic session, vacation periods, fee structure and compulsory education.

Each State Government plays a major role in the development of education particularly in the primary and secondary education sectors. The following are the typical primary stages of school education in India.

The Primary Stage consists of Classes I-V, i.e., of five years duration
The Middle Stage of education comprises Classes VI-VIII
The Secondary Stage consists of Classes IX-X

Enrolment Ratios:

According to UNICEF the primary school enrolment ratio, net, from 1995 to 2001 was 78% for males and 64% for females. The net primary school attendance percentage was 79% for males and 73% for females. The secondary school enrolment ratio (gross) for the 1995 to 1999 period was 59% for males and only 39% for females. Table 6 indicates the number of students enrolled by stage of education as collected by the Department of Education.

Table 6: Enrolment By Stages 1950 to 2001 (in millions)
Primary (Grades 1 - 5) Middle/Upper Primary
(Grades 6 - 8)
High/Hr. Sec./Inter/
Pre-Degree
(Grades 9 - 12)
Year Boys Girls Total Boys Girls Total Boys Girls Total
1950 13.8 5.4 19.2 2.6 0.5 3.1 1.3 0.2 1.5
1960 23.6 11.4 35.0 5.1 1.6 6.7 2.7 0.7 3.4
1970 35.7 21.3 57.0 9.4 3.9 13.3 5.7 1.9 7.6
1980 45.3 28.5 73.8 13.9 6.8 20.7 7.6 3.4 11.0
1990 57.0 40.4 97.4 21.5 12.5 34.0 12.8 6.3 19.1
2000 64.0 49.8 113.8 25.3 17.5 42.8 16.9 10.7 27.6
2001 63.6 50.3 113.9 26.1 8.7 44.8 18.4 12.1 30.5
Source:Department of Education

Public Expenditure on Education

According to UNICEF, public expenditures on education as a percentage of GDP was 4.02% in FY2001 compared to less than 1% in 1950. The percentage of expenditure on education and training to total expenditure of all sectors was 13.17% in FY2001. The share of expenditure on Elementary Education to total expenditures for all sectors was 6.6% during FY2001, while the share of secondary and higher secondary education to total expenditures for all sectors was 4.1%.

Literacy Rates

According to the 2001 census, literacy increased significantly to 65.4% of the population or 567 million people as compared to a literacy rate of 42.8%, or 359 million people as recorded in the 1991 census.

Table 7: Literacy Rated by Sex 2001 Census (in millions)
Sex Total %
Male 339,905,576 75.9
Female 226,797,704 54.2
Total 566,703,280 65.4

Source: Office of the Registrar General, Census of India 2001

1.7 Health Profile

According to the World Health Organization (WHO), the life expectancy at birth was 60 years for males and 61.7 for females. It is estimated by the WHO that as of 1992 there were 48 and 45 physicians and nurses, respectively for every 100,000 people living in India.

Total expenditures on health as a percentage of GDP in 2000 was 4.9% according to the WHO, while general government expenditures on health as a percentage of total general government expenditures in 2000 was 5.3%.

The WHO estimates that 3.9 million people were living with HIV/AIDS in 2000, while there were 350,000 deaths related to HIV/AIDS in the 15 to 49 year old population in the same time period. The total estimated adult prevalence rate was 0.8% of the total population.

1.8 Information Communication Technology

India is a major exporter of computer software and computer-based products and services. As of 2000, there were 43 internet service providers in India. It was estimated by the United States Central Intelligence Agency, that there are over 7 million users of the internet while there are 27.7 million land line telephone subscribers and 2.93 million mobile phone users. The internet code for India is .in.




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