INDIA: Economic Policy Analysis

This site presents two analyses of the Indian government's economic policies compared to a list of 34 economic policies as prepared by student Gladwin Tirkey and Intern Specialist Tasha Agarwal with the Mike P. McKeever Institute of Economic Policy Analysis in the Fall and Spring of 2013 (MIEPA). To read both analyses scroll through this site. To learn more about the background policies, click here

Introduction and Policy Recommendations

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Tasha Agarwal is a native of India and an Economics graduate from Delhi University; she is a graduate with an M.A. in Economics from Bharti Vidyapeeth University in Delhi capital of India, in Spring, 2012. She has completed a study of India's economic policies as compared to the MIEPA list of policies as outlined above. Her study on India is shown immediately below.

Gladwin Tirkey is a native of India studying in San Francisco in the Fall of 2013; his study of India's economic policies as compared to the MIEPA list of policies is presented immediately after the study by Tasha Agarwal. To read the study by Gladwin Tirkey, scroll down through the study by Tasha Agarwal.

The ratings herein are based on the following rating scale:


5.0 Perfect Facilitation of Wealth Creation
4.0 Midway between Perfect and Neutral
3.0 Neutral Effect on Wealth Creation
2.0 Midway between Neutral and Obstructionist
1.0 Perfectly Obstructionist to Wealth Creation
[Rating scale copyright Mike P. McKeever, 2013. Used herein with permission]

To read a disclaimer about the analysis in this file, scroll to the bottom of the file.

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      1               3.0            9.0             15.0        60%

      2               1.5            4.5             15.0        30

      3               2.5            7.5             15.0        50

      4               3.0            9.0             15.0        60

      5               3.5           10.5             15.0        70

      6               4.0           12.0             15.0        80

      7               4.0           12.0             15.0        80

      8               1.5            4.5             15.0        30

      9               2.0            6.0             15.0        40

      10              2.0            6.0             15.0        40

      11              3.5           10.5             15.0        70

      12              4.0           12.0             15.0        80

      13              3.0            6.0             10.0        60

      14              4.0            8.0             10.0        80

      15              5.0           10.0             10.0       100

      16              3.0            6.0             10.0        60

      17              3.0            6.0             10.0        60

      18              1.0            2.0             10.0        20

      19              2.0            4.0             10.0        40      

      20              3.5            7.0             10.0        70

      21              4.0            8.0             10.0        80

      22              3.0            6.0             10.0        60

      23              5.0           10.0             10.0       100

      24              2.5            5.0             10.0        50

      25              2.5            5.0             10.0        50

      26              1.5            3.0             10.0        30

      27              4.5            9.0             10.0        90

      28              3.5            7.0             10.0        70

      29              3.5            3.5             5.0         70

      30              2.5            2.5             5.0         50

      31              3.5            3.5             5.0         70

      32              3.0            3.0             5.0         60

      33              4.0            4.0             5.0         80

      34              3.0            3.0             5.0         60           

  TOTAL             105.0          225.0           365.0         61.6%
                    =====         ======           =====        =====
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1. Freedom from internal control: 3.0

The two fundamental rights of india are:

Freedom to move freely throughout the territory of India though reasonable restrictions can be imposed on this right in the interest of the general public, for example, restrictions may be imposed on movement and traveling, so as to control epidemics.

Freedom to reside and settle in any part of the territory of India, which is subject to reasonable restrictions by the State in the interest of the general public, or for protection of the scheduled tribes because certain safeguards, as are envisaged here, seem justified to protect indigenous and tribal peoples from exploitation and coercion.

Freedom to move freely throughout the territory of India subject to reasonable restrictions in the interests of the general public or for the protection of any Scheduled Tribe. Freedom to reside or settle in any part of territory of India subject to the restrictions in the interests of the general public . Freedom to practise any profession, or to carry on any occupation, trade or business, subject to reasonable restrictions in the interests of general public and any law laying down technical qualifications and state monopoly of trade or business.though freedom to move freely has been given by the constitution of india but there are few classes or community of people who are not welcomed anywhere else. The are treated very badly if they move to some other place.

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2. Freedom of speech: 1.5

Popular conceptions of political ideals vary depending on the cultural mindset of the population in question. In secular democracies the freedom to speak as and when one wishes is tempered with a sort of commonsense that many find comforting. You would be hard pressed to find anyone who didn’t agree that some forms of expression should not be permitted. The problem then is that in practice very few of us can agree on where to draw the line. It is because of this that we must pay attention to the semantics involved in formulating such principles. Common wisdom on the notion of freedom of speech is that we are free to say anything we want as long as our speech does not impinge upon the ‘fundamental freedoms’ of others. The idea is that one’s freedom of speech must not cause ‘harm’ to others. This sort of reasoning leaves much unresolved, because in reality the problem of deciding what counts as ‘fundamental freedoms’ or ‘harm’ is not so simple. In fact, the reasoning often seen in the media and as popular opinion is simply designed to ignore the question or pretend that it has been answered. The problems begin just shy of where commonsense ends. The law, when it is shaped by such general commonsense notions, remains ambiguous. Such ambiguity is often necessary, given that moral problems are almost always situational. However, there are practical limits to such ambiguity. These limits are to be determined by objective facts and logic.

With a vibrant, critical press and a strong culture of dissent, India stands out as one of Asia's strongest champions of freedom of speech. But even as new technologies give citizens greater power to exercise that freedom, the government is making efforts to the contrary. On the one hand, Indian authorities are capitulating to extremist groups and political parties that demand the banning of books and films claimed to be offensive. On the other, they are flirting with outright curbs on freedom of speech — with new laws governing internet content and the print media. In recent months, India drafted new rules for the web that will allow anyone to demand that internet sites and service providers remove supposedly objectionable content based on a sweeping list of criteria. Even before the rules for internet speech were notified under the IT act in April, the Department of Information Technology had quietly blocked 11 websites, the Center for Internet and Society discovered through a recentRight to Information (RTI) request.

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3. Effective,fair police force: 2.5

The primary institution on which the state relies for the maintenance of law and order is the police. In order to achieve this objective, the police are empowered to use limited coercive power thereby creating conditions for realization of human rights [3]. The constitution itself and the international treaties and covenants ratified by India [4] cast a duty on the state to protect and promote human rights. Article 2(3)(a) of the International Covenant on Civil and Political Rights mandates every state party to ensure that any person whose rights or freedoms as herein recognized are violated shall have an effective remedy, notwithstanding that the violation has been committed by persons acting in an official capacity. By virtue of being born a human, everybody has human rights which are inalienable and indivisible. People cannot take the law into their own hands. The rationale behind this reasoning is that the state is present to protect its citizens and to create an environment for realization of human rights. Citizens only have a limited right vested in themselves to protect their or anyone else's person or property which is guaranteed by the right of private defence. There is no right of private defence in cases where there is adequate time to have recourse to public protection [2]. Anyone employing his right of private defence must justify that there was no reasonable time to approach the state institutions for help. Thus, citizens claim protection from the state for their welfare and it is the reciprocal obligation of the state to ensure the 'rule of law' through its institutions.

Over the past two years, India has been attempting to address problems adversely affecting its law-enforcement agencies. These efforts, all of them initiated by the government, unfortunately are not capable of tackling the central issue concerning law enforcement--the question of torture.

Use of torture is endemic in India. The police consider torture as an effective and thus essential tool for crime investigation and to maintain control over the people. India has one of the largest police forces in the world, though its police-people ratio is one of the lowest in comparison to other democracies. The country does not have a permanent National Police Commission yet. A commission appointed on 15 November 1977 ceased to exist in May 1981, having held office for a mere 29 months after holding its first meeting on 22 December, 1978. The commission had to function without having a formally constituted secretariat or a secretary. In other words, the state of policing inIndia today is an indicator of the reasons for the country's failing democratic experiment.

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4. Private property: 3.0

The Constitution originally provided for the right to property under Articles 19 and 31. Article 19 guaranteed to all citizens the right to acquire, hold and dispose of property. Article 31 provided that "no person shall be deprived of his property save by authority of law." It also provided that compensation would be paid to a person whose property has been taken for public purposes.

The provisions relating to the right to property were changed a number of times. The Forty-Forth Amendment of 1978 deleted the right to property from the list of fundamental rights[45] A new provision, Article 300-A, was added to the constitution which provided that "no person shall be deprived of his property save by authority of law". Thus if a legislature makes a law depriving a person of his property, there would be no obligation on the part of the State to pay anything as compensation. The aggrieved person shall have no right to move the court under Article 32. Thus, the right to property is no longer a fundamental right, though it is still a constitutional right. If the government appears to have acted unfairly, the action can be challenged in a court of law by citizens.[39]

The liberalisation of the economy and the government's initiative to set up special economic zones has led to many protests by farmers and have led to calls for the reinstatement of the fundamental right to private property.[46] The Supreme Court has sent a notice to the government questioning why the right should not be brought back but in 2010 the court rejected the PIL [47] As in 2007 the supreme court unanimously said that the fundamental rights are a basic structure of the constitution and cannot be removed or diluted.

In the three rapidly growing economies of the world - India, Pakistan and China these countries, there is a need for improvement in the area of protection of private and intellectual property rights. A report states the existence of an effective IPR depends upon that the recognition of patent, copyright and trademark legislations, the establishment of systems and mechanisms to enforce IPR. While for greater improvement of the protection of property rights, the legal and the political environment is a main contributory factor. In the report covering 115 countries, Finland again topped the IPRI ranking while Bangladesh ended up at the bottom of the list. India’s rank has gone down considerably from 36th in 2008 to 46th in 2009. the starting point of the Index is the correlation between the protection of private property rights and economic development. This together with the definition of private property and the results derived from the opinion survey constitute the three core categories considered essential to the strengthening and protecting a country’s private property system: Legal and Political Environment (LP), Physical Property Rights (PPR) and Intellectual Property Rights (IPR) India ranks 53rd in the Legal and Political Environment with a score of 4.9, 36th in the Physical Property Rights with a score of 6.7 and 49th in the Intellectual Property Rights with a score of 5.1.

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5. Commercial banks : 3.5

Commercial banking is the most important part of modern banking set up. These days, the function of commercial banks are confined not only to advancing loans to the public and accepting their deposits, their contribution in accelerating the rate of economic development in under-developed and developing countries like that of India is very effective. Not only is that, banking highly effective and useful in the fulfillment of various socio-economic objectives of the Government. Commercial banking in India occupies an important place in the banking set-up of the country, these days. Upto, 1969, the operation and functioning of commercial banks in India was confined only to medium and large sized towns and economically rich people.

Agriculture, small scale and cottage indus¬tries and rural areas were generally neglected by these banks. With the nationalisation of commercial banks in 1969, now these priority sectors have started getting attention, with the result they get more credit and more branches of these banks are being opened in rural areas also. Now these banks are becoming effective and useful in the accomplishment of various socio-economic objectives of the coun¬try. The situation in almost all developing countries resembles the Indian situation where banks have started playing an important role.

The year 2009-10 witnessed a relatively sluggish performance of the Indian banking sector with some emerging concerns with respect to asset quality and a slow deposit growth. Gross NPAs as ratio to gross advances for Scheduled Commercial Banks as a whole increased from 2.25 per cent in 2008-09 to 2.39 per cent in 2009-10. Notwithstanding the weakening asset quality, the Capital to Risk-Weighted Assets Ratio (CRAR) of Indian banks remained strong at 14.5 per cent, way above the regulatory minimum even after migration to the Basel II framework, providing banks with adequate cushion for emerging losses. In 2009-10, the profitability of Indian banks captured by the Return on Assets (RoA) was a notch lower at 1.05 per cent than 1.13 per cent during the previous year. Low levels of financial penetration and inclusion in the global comparison continued to be an area of concern for the Indian banking sector. In the short-term, the Indian banking sector needs to lend support to the process of economic recovery, while in the medium to long-term, it needs to transform itself to become more efficient and vibrant so as to ensure a more sustainable and inclusive pattern of economic growth.

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6. Communication system: 4.0

The various communication system available in india are: Posts and Telegraphs System: Postal system came into existence properly in India in the year 1854 with the help of 700 post offices and Department of Posts was created.

Postal Services:

Postal work is now being performed by Postal Department of India. Formerly, 1, 44,241 post offices were in urban area and 1, 28,559 post offices were in rural area. There was one post office for ever 5,206 persons and one post office in every 22.16 square kilometer's on 31st March, 1984. More than 99% of the villages have postal distribution system everyday.

Telegraph and Telephone:

Telegraph and telephone system was very much backward during the time of independence. In the year 1948, there were only 3324 telegraph offices and it rose to 37, 424 in April, 1986. Now we have telegraph services in every metropolitan city, important cities, and towns in a large number of villages. Except these, telex services and international telex services are now provided.


Akashvani not only provides entertainment programmes like play and music but it also provides other special programmes like news and other cultural programmes. Special programmes are now being provided by Akashvani for military personnel, women and children, young masses, students and rural people. Two Vivid Bharati centres are providing entertainment programmes from Bombay and Madras. 29 Commercial Broad Casting Services use their 10 percentage of their total programme hours for advertisement.


A wireless system has been developed in India. Military personnel and police mainly use this wireless system. The importance of wireless increases during the period of political or economic crisis.


Television service was started on an experimental basis first time in Delhi on 15th September, 1959. Second television centre was started in Bombay in 1972. Five relay centres and 11 independent centres were started in 1986. Near about 70 percentage of the total population were able to see television in the year 1986. The television system of India is known as Doordarshan.


Newspapers in India are published in 92 languages. Maximum newspapers are published in Hindi language. Next to Hindi, newspapers are published more in English. Four news agencies are operating in India. These are Press Trust of India (PTI), United News of India (UNI), Samacfiar Varity and Hindustan Samachar.

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7. Transport : 4.0

India’s transport sector is large and diverse; it caters to the needs of 1.1 billion people. In 2007, the sector contributed about 5.5 percent to the nation’s GDP, with road transportation contributing the lion’s share.

Good physical connectivity in the urban and rural areas is essential for economic growth. Since the early 1990s, India's growing economy has witnessed a rise in demand for transport infrastructure and services.

However, the sector has not been able to keep pace with rising demand and is proving to be a drag on the economy. Major improvements in the sector are required to support the country's continued economic growth and to reduce poverty.


Indian Railways is one of the largest railways under single management. It carries some 17 million passengers and 2 million tonnes of freight a day in year 2007 and is one of the world’s largest employers. The railways play a leading role in carrying passengers and cargo across India's vast territory. However, most of its major corridors have capacity constraint requiring capacity enhancement plans.


Roads are the dominant mode of transportation in India today. They carry almost 90 percent of the country’s passenger traffic and 65 percent of its freight. The density of India’s highway network -- at 0.66 km of highway per square kilometer of land – is similar to that of the United States (0.65) and much greater than China's (0.16) or Brazil's (0.20). However, most highways in India are narrow and congested with poor surface quality, and 40 percent of India’s villages do not have access to all-weather roads.


India has 12 major and 187 minor and intermediate ports along its more than 7500 km long coastline. These ports serve the country’s growing foreign trade in petroleum products, iron ore, and coal, as well as the increasing movement of containers. Inland water transportation remains largely undeveloped despite India's 14,000 kilometers of navigable rivers and canals.


India has 125 airports, including 11 international airports. TIndian airports handled 96 million passengers and 1.5 million tonnes of cargo in year 2006-2007, an increase of 31.4% for passenger and 10.6% for cargo traffic over previous year. The dramatic increase in air traffic for both passengers and cargo in recent years has placed a heavy strain on the country's major airports. Passenger traffic is projected to cross 100 million and cargo to cross 3.3 million tonnes by year 2010. Transport infrastructure in India is better developed in the southern and southwestern parts of the country.

Source:,,contentMDK:20703625~menuPK:868822~pagePK:34004173~piPK:34003707~theSitePK:579598,00.html ;

8. Education : 1.5

The draught of education in India has reached the extreme as it ranks sixth among the seven emerging economies of the world, in terms of education quality. The country has scored only 3.3 points in the study, in terms of primary, secondary, tertiary and demographic parameters, while Russia topped the chart with 7.3 points.

As per the Assocham study, India was at the last position in terms of quality of secondary education while Russia and Brazil had maximum scores. The quality of tertiary education in India was lowest among the other emerging nations. The points it scored on the scale of 2, was 0.1. Even though the demographics of India are considered its strength, the country has scored the minimum in this too and was ranked at last place. Moreover, in terms of students enrollment for primary education, India is highly incompetitive with the gross enrollment ratio standing at 98.1.

The pan-India average of occupancy rate in engineering colleges was around 67 per cent in 2011-12. states such as Madhya Pradesh, Tamil Nadu, and Karnataka have higher than pan-India average occupancy rate on account of the fact that the number of colleges in these states is still low as compared to the top 6 states, and demand for engineering still exists. In fact, the top 6 states together account for around 65 per cent of the total seats on offer. The Indian educational system is very similar to assembly line manufacturing. The system is very rigid and does not offer a lot of room for customization. The system is designed to create a large number of “skilled” professionals fairly quickly (whether most of the graduates want to be doctors, engineers or an accountant is a totally different issue). As the overall literacy rate is increasing there is tremendous pressure on the system to keep cranking more and more “skilled professionals”. Quantity has clearly taken precedence over quality.

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9. Social mobility: 2.0

since economic liberalization in 1991, we are witnessing mushrooming of costly private schools and coaching classes. Success rate of the students from such private schools and coaching classes seems to be much higher than students from public, government schools. It has been reported that, “Private coaching constitutes a significantly large portion of the expense students incur on education, sometimes even bigger than the expenditure on school fees” a study says. Most probably it will translate into lower social mobility in future (particularly when the rapid expansion of our economy will be more stabilized), if not now. It will further worsen social mobility and threaten already fragile social fabric (evident in rise of extremism, higher tendency of common people to take laws into own hands and loss of faith on almost any democratic institutions) the persistence of low spatial and marital mobility in rural India, despite increased growth rates and rising inequality in recent years, is due to the existence of sub-caste networks that provide mutual insurance to their members. Unique panel data providing information on caste loans, marriage, and migration are used to link caste networks to household and aggregate mobility. Wealthier households within their sub-castes are more likely to both migrate and inter-marry, suggesting that they are not being adequately compensated by the network in their role as net lenders. Conversely, among households with the same wealth, those in higher-wealth caste networks are more likely to obtain loans and are less likely to be mobile,providing direct evidence that the networks restrict mobility. At the aggregate level, the networks appear to have coped successfully with the rising inequality within sub-castes that accompanied the Green Revolution. The results suggest that caste networks will continue to smooth consumption in rural India for the foreseeable future, as they have for centuries, unless alternative credit mechanisms of comparable quality become available.

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10. Freedom from outside control : 2.0

Beyond the threat from terrorism and insurgencies, demonstrations and general strikes, or “bandh,” often cause inconvenience. Large religious ceremonies that attract hundreds of thousands of people can result in dangerous and often life-threatening stampedes. Local demonstrations can begin spontaneously and escalate with little warning, disrupting transportation systems and city services and posing risks to travelers. In response to such events, Indian authorities occasionally impose curfews and/or restrict travel. You are urged to avoid demonstrations and rallies as they have the potential for violence, especially immediately preceding and following elections and religious festivals (particularly when Hindu and Muslim festivals coincide). Tensions between castes and religious groups can also result in disruptions and violence. In some cases, demonstrators specifically block roads near popular tourist sites and disrupt train operations in order to gain the attention of Indian authorities; occasionally vehicles transporting tourists are attacked in these incidents. India generally goes on “High Alert” status prior to major holidays or events. In India, security is provided to high-risk individuals by the police and local government. Depending on the threat perception to the person, the category is divided into four tiers: Z+ (highest level), Z, Y and X.

Individuals under the security blanket include Cabinet Ministers, Deputy Chief Ministers, Former Deputy Chief Ministers, Chief Ministers, Former Chief Ministers, High Court and Supreme Judges, leading politicians, and senior bureaucrats. Details of the categories are as follows:

§ Z+ category has a security cover of 36 personnel

§ Z category has a security cover of 11 personnel.

§ Y category has a security cover of 2 personnel.

§ X category has a security cover of 1 personnel.

We advise against all travel in Manipur and against all but essential travel to Imphal. If you plan to travel to Imphal then do so only by air. There is a risk from insurgent groups, mainly in rural areas. Although foreigners have not been the deliberate targets of violence, attacks can be indiscriminate. Although the overall security situation in the northeast has improved in the last year, kidnapping, banditry and insurgency still take place

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11. Protection of domestic enterprise : 3.5

The latest value for Net trade in goods and services (BoP, current US$) in India was ($91,012,990,000.00) as of 2010. Over the past 35 years, the value for this indicator has fluctuated between $962,429,100.00 in 1977 and ($91,012,990,000.00) in 2010. The Indian water industry is at the crossroads today. In a developing country with huge requirements for water recycling and purification of drinking water, there is a huge scope for water and wastewater treatment business. India has devoted substantial resources to the water supply and sanitation sector, significantly increasing its commitment since 1980 with the launch of the International Drinking Water Supply and Sanitation Decade. The government has also got into the action by imposing stringent legislations regarding wastewater treatment. There is also a compulsory requirement of Environment Clearances from Pollution Control Boards at the Centre and the states. The recent Supreme Court directive to move polluting units out of Delhi is also likely to act as an impetus to future sales of water treatment equipment. Also at the same time, many existing treatment plants would need to be replaced or upgraded to meet with more stringent standards.the other sector which may boost up indias growth in the future are—power sector, food processing,banking and finance, infrastructure, oil and gas etc. These sectors are getting huge amount of government prospects since the future of india lies in these industries.

Source:-§ionid=32 ; ;

12. Foreign currency transaction : 4.0

The contemporary set of Indian currency notes, which were introduced in 1996, is known as the Mahatma Gandhi series. Currently, banknotes are circulated with denominations of 5 rupees, 10 rupees, 20 rupees, 50 rupees, 100 rupees, 500 rupees, and 1,000 rupees. The printing of 5 rupee notes ceased previously. However, it has commenced once more from 2009. ATMs (automated teller machines) normally provide currency notes with denominations of 100 rupees, 500 rupees, and 1,000 rupees. The zero rupee note is also there but it is not formally circulated by the Government of India. It is a representation of dissent and a Nongovernmental Organization (NGO) in India prints and circulates it. The Rupee is the official currency of india. In india only rupee is used for all official transaction. Any foreign currency is first converted into domestic currency before it is being used. Officially, the Indian rupee has a market determined exchange rate. However, the RBI trades actively in the USD/INR currency market to impact effective exchange rates. Thus, the currency regime in place for the Indian rupee with respect to the US dollar is a de facto controlled exchange rate. RBI intervention in currency markets is solely to deliver low volatility in the exchange rates, and not to take a view on the rate or direction of the Indian rupee in relation to other currencies.

Also affecting convertibility is a series of customs regulations restricting the import and export of rupees. Legally, foreign nationals are forbidden from importing or exporting rupees, while Indian nationals can import and export only up to 5000 rupees at a time, and the possession of 500 and 1000 rupee notes in Nepal is prohibited.

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13) Border control: 3.0

The failure of the government's recent drive to curb smuggling is illustrative of the self-defeating nature of controls in a partially planned economy. This paper argues that smuggling, like other devices to evade government controls, is inherent in the structure of a mixed economy. Attempts to control such evasion through a manipulation of the instruments open to the State in a mixed economy are not likely to meet with much success unless the reforms are extensive enough to change the character of the State itself. The possibilities of combating evasion of controls by other measures which bring the system nearer a 'market solution' too are extremely limited. In the context of smuggling, such measures would include an attempt to reduce the profitability of smuggling by removing the price differential between the black and the official markets. This could be tried through a relaxation of import restrictions or through devaluation. Since the mid-1990s, India has been involved in the construction of some of the lengthiest separation barriers along its international borders. Six of the nine countries neighboring India are classified as Least Developed Countries. As a consequence, thousands of people from these countries, especially from Bangladesh, Nepal and Burma, illegally immigrate into India. The Indo-Bangladeshi barrier and Indo-Burma barrier are being built to check smuggling, illegal immigration and possible infiltration by terrorists.

In addition, India completed the construction of the Indian Kashmir barrier which runs along the Line of Control in Kashmir. The purpose of this barrier is to prevent infiltration by Pakistan-based Azad Kashmiris to visit their families. The Indian government is also considering the construction of a barrier along the Indo-Pakistan border.

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14) Currency: 4.0

The official currency of the Republic of India is the Indian Rupee. India currency is issued and regulated by the Reserve Bank of India. In India, the bank notes are issued in various denominations such as 1, 2, 5, 10, 20, 50, 100, 500, and 1000 rupees. Coins are issued in the denominations of 1, 2, 5 and 10 rupees and 1, 2, 5, 10, 20, 25 and 50 paisa. The Indian rupee sign has originated from the Devanagari consonant (Ra) and there is an extra flat line. dissimilar to China, consecutive directions (via RBI, the apex bank) have not abided a strategy of pegging the Indian rupee to a particular international currency at a specific swap rate. The involvement of the Reserve Bank of India in money markets is exclusively to render reduced instability in the exchange rates, and not to adopt a standpoint on the rate or trend of the Indian currency with respect to other currencies. The design of banknotes is approved by the Central Government on the recommendations of the Central Board of the Reserve Bank of India. Currency notes are printed at the Currency Note Press, Nasik, Bank Note Press, Dewas, Bharatiya Note Mudra Nigam (P) Limited presses at Salboni and Mysore and at the Watermark Paper Manufacturing Mill, Hoshangabad. The current series of banknotes, which began in 1996, is called the Mahatma Gandhi series. At present, banknotes are issued in the denominations of 5, 10, 20, 50, 100, 500 and 1000. Printing of 5 notes which had stopped earlier restarted in 2009. ATMs usually give out 100, 500, and 1000 notes. The Zero rupee note is not an official government issue but a symbol of protest and it is printed and distributed by an NGO in India.

Officially, the Indian rupee has a market determined exchange rate. However, the RBI trades actively in the USD/INR currency market to impact effective exchange rates. Thus, the currency regime in place for the Indian rupee with respect to the US dollar is a de facto controlled exchange rate. RBI intervention in currency markets is solely to deliver low volatility in the exchange rates, and not to take a view on the rate or direction of the Indian rupee in relation to other currencies.

Also affecting convertibility is a series of customs regulations restricting the import and export of rupees. Legally, foreign nationals are forbidden from importing or exporting rupees, while Indian nationals can import and export only up to 5000 rupees at a time, and the possession of 500 and 1000 rupee notes in Nepal is prohibited.

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15. Cultural and language homogeneity: 5.0

"Unity in diversity". It is not just another phrase or quotation. But, these words are highly prudent to a country like India that is incredibly rich in culture and heritage. Few quotations or statements cannot describe the pedestal that India holds in the world map because of its colorful and unique culture.

From the times of Mauryas, Cholas , Mughals till to the period of British Empire, India has always been famous for its traditions and hospitality. The warmth in the relations and euphoria in celebrations make the country stands out distinctively in the clutter. The country's liveliness and generosity attract a number of tourists. The cuisines, festivals, music, literature, and theatre... everything is 'special' in this 'land of gods'.

The other timeless fact about India, is the homogeneity of her civilisation and culture. Perceptive observers of India from the earliest times have often acknowledged and commented upon the uniqueness of Indian ideas and institutions that pervade nearly every part of India. This cultural homogeneity has come under stress during the last two hundred years or so, basically under the influence of modern ideologies that tend to look upon the homogeneity of India as a source of oppression and backwardness. This ideological prejudice manifests in the public life of India in the name of protection of distinctive ways of life of religious minorities, especially those belonging to Islam and Christianity. Such influences have led to Partition of India into three separate political entities; religious heterogeneity of certain parts of India formed the sole basis for this.

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16. Political effectiveness: 3.0

There is no denying the amazing growth India has managed to achieve over the past couple of decades, one thing that many business owners feel India should seriously look upon is improving its business climate. Many consider India as one of the toughest markets to be in not because of competition but because of government policy and several other external factors such as corruption and red tape. Most analysts would unanimously agree that if India managed to improve its internal business environment and get it to a level somewhere close to the US or other Asian economies such as Singapore or Hong Kong, Indian economy would be unstoppable in its march ahead and could even surpass China and US in the future. However, at the moment it looks like the business environment is going to be at the same position it has been for the past many years and although there are more entrepreneurs or foreign companies entering India each year, the growth rate could have been much higher than what it is. India should also look at the number of licenses and their procurement procedures required for operating businesses in the country. Laws need to be well defined and currently many of the laws are open to interpretation and certain agencies take full advantage of this. There is also no single window system for businesses and they have to run around behind several government agencies to procure licenses and other permissions required for each type of business. All this hurts the business climate in the country and also acts as a roadblock for development. If these are looked upon and improved, the Indian economy would grow at the much faster rate than what it is doing right now. India’s vast rural market offers a huge potential for a marketer facing stiff competition in the urban markets. The rural market environment is very different from the familiar surroundings of the urban market. Rural consumers have customs and behaviour that the marketer may ?nd dif?cult to contend with.

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17. Institutional stability: 3.0

if a country is politically unstable in the sense of being constantly embroiled in destructive war against another country, or is internally deeply divided to the point of endemic armed conflict between its different ethnic or religious groups, such a level of instability will not be conducive to economic development or the peoples' welfare. But the Indian situation is not an extreme one of this sort: here by "stability", most people understand merely the absence of frequent changes of government at the Centre and the absence of frequent general elections. coalition government greatly increases the importance in national politics of the left and democratic movements, without whose support governance is not possible today for centrist formations. Needless to say, such an increased role for the peoples' parties is anathema to imperialism, which would like to see a curtailment of democracy in India, so that the right-wing social forces which have already shown their subservience to imperialism, can provide the "stability" it requires for the pursuit of its agenda.

Indian economy has undergone tremendous structural change over the last 20 years, from consumption and production to investment. These changes, though important, question the accuracy, appropriateness and validity of some of the key economic indicators for decision-making. For instance with regard to inflation, the Reserve Bank of India’s Deputy Governor Subir Gokarn has said that the central bank is debating whether higher inflation is the new normal for India. He has also mentioned the challenges resulting from using the Wholesale Price Index (WPI) based inflation numbers to target inflation in India. This challenge is in part because India does not have a consumer price index (CPI) that properly represents the entire nation, and the RBI uses WPI to monitor its anti-inflationary policies. Similarly, the volatility in the index of industrial production (IIP) data over the past 6 months is analytically surprising. Apart from providing a pool of well trained and high skilled work force, India also houses a 350 million strong middle class which commands a formidable spending power. The increasing affluence – it has the fourth largest billionaire population in the world – makes it even more attractive as a high end products and luxury goods market. In addition, thanks to a vibrant democracy, it has enjoyed relatively higher stability than other regions in its neighborhood. From an entrepreneur's perspective, bureaucratic issues like company registration period, paper work, licensing issues and tax and other incentives also assume importance.

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18. Honest government: 1.0

In India, corruption is a form of patronage; a politician or bureaucrat who takes the bribe then has to let it cascade among a series of lesser bureaucrats and elected officials, who will make sure that the pet projects are completed. An honest politician has no goodies to toss around. This limits his effectiveness profoundly, because political power in India is dispersed throughout a multi-tiered federal structure; a local official who has not been paid off can sometimes stop a billion-dollar project. This is why many Indians have a sneaking suspicion – and there is anecdotal evidence to back this up – that only corrupt politicians are effective ones. There is no public project in India, however big or small, whether in construction, healthcare, or education, that would stand up to a rigorous audit; some numbers will never add up, because someone has pilfered money somewhere. You have to tolerate a certain level of dishonesty if the wheels are to turn. An inflexible insistence on honesty in Indian public life is, generally speaking, a form of moral myopia. The new government hospital may have cost 20% more than it ought to have, but if its opening is blocked by a public inquiry, which could drag on for years, thousands of poor people will suffer. Corruption, which does for Indian political life what sex scandals do for western democracies, is once again in the news in New Delhi, where the furore continues over the allegations that bribes – colossal bribes, ranging into the millions of pounds – were paid to some members of parliament in a bid to save the Indian government. After the Communist parties withdrew their support to Prime Minister Manmohan Singh, because of his decision to push through a controversial nuclear power deal with the US, his government looked likely to collapse. Yet when parliament met on July 22 to vote on Singh's future, he survived. A few opposition MPs, at the very last minute, changed their votes in his favour. A Communist leader alleged that the government's supporters had bought these votes with bribes – he claimed that nearly three million pounds had been paid for each opposition vote. To add to the drama, three MPs smuggled in bags containing nearly a hundred thousand pounds in cash into parliament, and waved the money in front of the gathered journalists, alleging that the money was given to them in a bid to influence their votes. The government has survived, but the furore over the alleged bribes continues to grow by the day, dominating TV and newspaper headlines.

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19. Common law: 2.0

Rich Man’s Law (June 4) was a bold article highlighting the warped and corrupt nature of our judicial system where the high-profile, influential and wealthy lawbreakers can escape the consequences by hook or crook. However, what’s more revolting to digest is the lack of solidarity among the tribe of victims. The sad fact is that even the media in India is controlled by the rich. These incidents make it to the front pages when they happen, but there’s a whimper when blatant injustice is being done. It’s a sad comment on our "free press". We know that law is equal for all the person either poor or rich both same .But if we look back then we can see that Indian law is very tough for poor people .The facility and human rights which has provided by Indian judiciary system practically all of the people are not getting such opportunity specially poor people is not getting such benefit. Like few days ago a news paper report in WB read that couple of under trial prisoner has committed to suicide reason that they have been arrested 3-4 years ago in some case and within three years the case has not started in any court and they don't know when hearing will start. They might be get bail from any court but problem is they not able to furnish the bond. This is not the solitary case. This problem is present in all over the India.

Not only that in any case if anyone who want to prove innocent himself or if anyone want to prove guilty to any other person both case person need money power and man power (because accused person sometimes under the prison anyone has to fight for him/her from outside).We know that lots of famous person and rich person are taking the privilege of law as they can. The Law Commission of India under the aegis of the Ministry of Law & Justice in India is responsible for introducing India law reforms and implementation. The first Law Commission of Independent India was constituted in 1955 by the Government of India for democratic Indian law reforms in accordance with the directives laid down by the Constitution of India. The primary objective behind setting up of the Law Commission was to introduce suitable changes in pre-Constitution laws recognized by the Constitution of India under article 372, as and when required.

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20) Central bank: 3.5

Internationally, following the failure of some large banks and bank related entities, there has been a debate on the segregation of supervision from traditional central banking, citing the conflict between monetary policy objectives and bank supervision objectives. At the same time, there is also a considered view that bank supervision function can provide the central bank with far more information from and control over the institutions and markets and thus assist in maintaining financial stability. The financial markets have become more sophisticated and global in nature, adding to the challenges faced by central banks while at the same time rapid strides in telecommunication and electronic data processing coupled with new funding instruments, growth of securitization, emergence of new institutions have increased the role and responsibilities of bank supervisors.

The legal and institutional framework for bank supervision in India is provided under the Banking Regulation Act, 1949. Until 1994, different departments in Reserve Bank of India were exercising supervision over banks, non-banking financial companies and financial institutions. To keep a close watch on financial markets and avoid recurrence of crisis in the financial system, the Board for Financial Supervision was set up under the aegis Reserve Bank under Reserve Bank of India (Board for Financial Supervision) Regulations, 1994 with the objective of paying undivided attention to the supervision of the institutions in the financial sector. RBI has always been committed to enhancing the element of transparency and adequate disclosures in the financial statements of banks. The formats of balance sheet and profit & loss account have been prescribed in the Banking Regulation Act, 1949, and banks have to strictly comply with this.

The RBI is not constitutionally independent, as the 1934 Act governing its operation gives the government power to direct it.

“The Central Government may from time to time give such directions to the Bank as it may, after consultation with the Governor of the Bank, consider necessary in the public interest,” the Act says.

Technically, the government is also permitted The government appoints the central bank governor and four deputies. by the Act to supersede the central bank if it believes the RBI has failed to carry out its obligations. Over the last quarter century as India’s economy was liberalized, the RBI has been more independent. However, there continues to be much consultation between the bank and the finance ministry, and the government has been known to exert its will, against the wishes of the RBI chief.

There is no legal act mandating autonomy of the RBI, but there is a growing convention that the RBI is allowed autonomy to do what it wants, analysts say.ce ntral bank and the finance ministry are not unusual in India. Personalities govern RBIs independence to a very large extent. Reddy, for example, was seen as fiercely independent.

Mild mannered Subbarao is seen more open to consultations with the finance ministry, although he has demonstrated independence with criticism of the government’s inability to rein in fiscal deficit. He also aired his reservations over setting up a council headed by the finance minister to reconcile differences between regulators.

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21) Domestic budget management: 4.0

The net tax revenue for the year 2011-12 , 2010-11, 2009-10, 2008-09, 2007-08 as a percentage of gdp was 7.40, 7.20, 7.00, 7.94, 8.81 respectively. Whereas for the same years the expenditure by the government was 14.00, 15.44, 15.64, 15.83, 14.39 respectively. Each year we can see that the expenditure by the government was more than the tax receipts. But the difference in each year was-6.6, 8.24, 8.64, 7.89, 5.58 which was all less than 10%. In fact except these years in many other years the difference between receipts and expenditure did not exceed 10% of gdp.

As regards inflation, India has been a cynosure for the past few years in the global economic scenario owing to its varying inflation patterns. In the fiscal year 2004-05 and 2007-2008, India experienced an average growth rate of more than 9%. However the global crunch pinched the economy so badly that the economy gave in to the adverse external shocks and some sectors experienced a slump. Inflation in India 2009 meaning the current rate of inflation in India stands at 11.49% Y-o-Y.

In 2008 industrial bodies, policy makers all were worried with the steadily-rising inflation. The middle of the year augmented the tension as majority of the population was wary about a double-digit inflation. However things changed within a few months. Inflation in India actually dropped below 1% during the 3rd week of March, 2009.

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22) Government debt : 3.0

The internal debt of Indian economy is 2816693 crore whereas the external debt of the Indian economy is 312280 crore.the total of internal as well the external debt amounts to the total of public debt of 3128973 crore.gdp of indian economy in the same ear was 1.537 trillion.the debt-gdp ratio of india approx 66%.the data shows a poor performance on the part of indian government. India’s public debt zoomed to more 76 per cent of the total GDP, which is much higher than our previous economic outlook research (55 per cent was then) and the further fiscal imbalances and rise in government cash balances will keep inflation on the higher side for the next few months but the we have projected the cut in inflation rate backed by lower food price inflation.. India has been a favoured target of foreign finance. And if it does not satisfy its requirements, it can fall out of favour. In its search for new investment targets, global finance has viewed with interest debt markets in countries like India. And in any debt market, what better instrument than relatively risk-free government securities. So, anything that muddies that potential market would disturb finance capital. India may be put on alert and even downgraded. The fact that, at the moment, publicly owned banks largely hold government paper is inadequate insurance.India needs to look at its Tax and Fiscal Policy and try run a balance budget with raising enough tax from both Businesses & Individuals. With 8% to 9% growth, india should be able to collect enough tax to finance its need. In addition, it has to run the Government owned Corporation with much more efficiently. Revenues from Postal Services, Railways, etc should be look after carefully. In addition, it needs to pay off debts. So India needs more revenue.

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23) Economic statistics: 5.0

Data Entry Outsourcing based in India offers a broad range of ITeS specifically Online data entry, Offline data entry, Data conversion, Data processing and Web research that are equivalent to global standards in terms of accuracy and competence. It is an extremely vital area of proficiency that helps enhance the performance standard and competence.

Data Entry Outsourcing in India is a famous solution provider for elite and greatly accurate data entry services. The services offered by Data Entry Outsourcing turns out to be profitable in several ways as it increases the tempo of your business activities rapidly, saves money, saves time and presents you with many other competitive advantages. Outsourcing your complex and diverse database entry requirements to us can be a feasible option as far as cost effectiveness and quality are concerned. Statistics and data released by the Indian government are correct and accurate and does not contain any sort of manipulation.

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24) Protection of public health and safety: 2.5

The infant mortality rate of India in 2005-2010 is 52.91 whereas in other developed countries like Japan is 2.62 , singapore-1.92,iceland-2.07,sweden-2.56, us-6.81.india ranks 152 among 197 in the List by the United Nations Population Division. as according to the List by the CIA World Fact book(all 2009 estimates), infant mortality rate in India is 30.15 and ranks the same as 152 among 224 countries. TB is one of the leading causes of mortality in India- killing -2 persons every three minute, nearly 1,000 every day. Tuberculosis (TB) is a major public health problem in India. India accounts for one-fifth of the global TB incident cases. Each year nearly 2 million people in India develop TB, of which around 0.87 million are infectious cases. It is estimated that annually around 330,000 Indians die due to TB. In terms of population coverage, India now has the second largest DOTS (Directly Observed Treatment, Short course) program in the world. However, India's DOTS program is the fastest expanding program, and the largest in the world in terms of patients initiated on treatment, placing more than 100,000 patients on treatment every month. Tuberculosis is one of the three primary diseases of poverty along with AIDS and malaria. The Global Fund to Fight AIDS, Tuberculosis and Malaria was started in 2002 to raise finances to address these infectious diseases.

The hazardous waste generated in the country per annum is estimated to be around 4.4 million tons while as per the estimates of Organization for Economic Cooperation and Development(OECD) derived from correlating hazardous waste generation and economic activities, nearly five million tons of hazardous waste are being produced in the country annually. This estimate of around 4.4 million MTA is based on the 18 categories of wastes which appeared in the HWM Rules first published in 1989.Out of this, 38.3% is recyclable, 4.3% is incinerable and the remaining 57.4% is disposable in secured landfills.

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25) High wage policy : 2.5

Despite significant economic progress, 1/4 of the nation's population earns less than the government-specified poverty threshold of $0.40/day. Official figures estimate that 27.5% of Indians lived below the national poverty line in 2004-2005. A 2007 report by the state-run National Commission for Enterprises in the Unorganised Sector (NCEUS) found that 25% of Indians, or 236 million people, lived on less than 20 rupees per day with most working in "informal labour sector with no job or social security, living in abject poverty."

The current purchasing price parity adjusted gross domestic product in India is $3,176, which is still quite low. However, India has a growth rate of roughly eight percent per year, which means that it is growing quite fastest and it has what may be the largest middle class in the world. The current number of citizens in the Indian middle class stands at 300 million; however this is by Indian standards, which is lower than the standards set in Europe and the United States. However, the growing middle class means that by 2015, the PPP-Adjusted GDP will be six percent higher than it is now. The level of poverty has also gone down in India over the past few years, currently sitting at 22 percent of Indians living under the poverty line. This number used to be much higher and India is hoping to eradicate poverty by the year 2020.

Due to availability of cheap labour , services involving human labour is always cheaper in India than in US. a Hair cut in a good saloon in India cost normally less Rs100 whereas it would have cost 20-30$ in US. this shows that the condition of labour in india due to massive supply is quiet detoriating. Every state in India have their own minimum wage and there is huge disparity between floor minimum wage of states. If we agree with sources then it will be history. To ensure a uniform wage structure and to reduce the disparity in minimum wages in the country center government had proposed the National Floor Level Minimum Wage statutory and recently which is agreed by states also.

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26) Environmental protection: 1.5

Through the years, the ministry has passed innumerable laws to help them in their task of environmental protection. Sadly, all the regulations and acts have not done enough to protect the environment. The greed of many in the governing bodies has led to misuse of the laws and ruthless exploitation of the land, leading to ecological destruction and social injustices. Most leaders of industry, too, have been lacking in a social conscience. They have exploited our country’s resources and polluted our earth, water and air. Public apathy has not helped either. We, as citizens of this country have not made our voices heard. The opening up of our economy and globalization have put a greater pressure on our resources, further vitiating our fragile eco-system.

As India prepares to enter a new millenium, the degraded state of India's natural environment cannot escape comment or analysis. Some believe that the deterioration in the environment is of such magnitude that all development must cease for the planet to survive. Others dismiss the entire environmental movement as comprised of loony troublemakers who have no right to interefere with the sanctity of private property and private enterprise. Still others berate the environmental movement for being an exclusively middle-class movement that is irrelevant to the class struggle. Few can deny that Delhi's air is deadly to breathe. By some estimates, one in three is now afflicted with chronic breathing ailments. Almost a sixth of all children are reputed to suffer from lead induced mental retardation. India's homes could be better designed to be cooler in the summer and warmer in the winter. More could be done to strengthen the national power-grid, minimize transmission losses and rebuild and improve outdated power plants. Non-polluting alternative power sources such as wind, solar and tidal power need far more national support and funding. These should be particularly useful in residential use and in electrifying remote and poorly connected villages of the country.The last century has seen an unmanageable increase in population, placing a tremendous burden on natural resources. There is not enough food for the world’s hungry. Also, the earth itself is worn out due to excessive farming, use of chemicals and pesticides and excessive use of ground water. Water resources are badly polluted and emission of toxic fumes from industry and vehicles has deprived us of clean air. Industrialisation and a growing consumer economy have led to the creation of huge megapolises with their problems of undisposed garbage and uncontrolled sewage.

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27) Strong Army: 4.5

The Indian Armed Forces (Devanagari: Bharatiya Sasastra Senaen) are the various armed forces of the Republic of India. They include the Indian Army, the Indian Navy, and the Indian Air Force, and are assisted by three paramilitary forces (the Indian Coast Guard, Assam Rifles, and Special Frontier Force) and various inter-service institutions such as the Strategic Forces Command

The IAF is one of the world's largest military forces, with roughly 1.32 million active standing army and 2.14 million reserve forces thus giving India the third-largest active troops in the world as of 2006. after the People's Liberation Army and US Armed Forces. India's official defense budget stands at US$36.03 billion for FY2011 (or 1.83% of GDP) but the actual spending on the armed forces is estimated to be much higher than that. Undergoing rapid expansion and modernization, the Indian Armed Forces plans to have an active military space program and is currently developing a missile defense shield and nuclear triad capability. The Armed Forces of India possess nuclear weapons and operate short and intermediate-range ballistic missiles as well as nuclear-capable aircraft, and naval vessels. India is the world's largest arms importer accounting for 9% of all global imports and ranks among the top thirty in arms export. Currently, India imports close to 70% of its weapons requirements, with Israel, Russia and the United States as its top military suppliers. The country’s defence expenditure will be around US$112 billion by 2016.

The IAF served as India's armed forces in all the country's major military operations — including the Indo-Pakistani wars of 1947, Indo-Pakistani War of 1965, Indo-Pakistani War of 1971, Sino-Indian War, 1987 Sino-Indian skirmish, Kargil War and others. India is currently moving to build a 9,970.16 crore (US$2.2 billion) dedicated, highly secure and state-of-the-art optical fiber cable (OFC) network for the Army, Navy and Air Force. This will be one of the world's largest, closed user group (CUG) networks for exclusive use by the million-plus personnel of the Indian armed forces.[19] Following 1962, the IAF has had close military relations with Russia, including development cooperation, such as on the Fifth Generation Fighter Aircraft (FGFA), Multirole Transport Aircraft (MTA), and others as well.

India has the world's 10th largest defense budget. In 2011, India's official military budget stood at 164,425.19 crore (US$36.67 billion). In 2004, the Global estimated India's budget to be around US$100 billion in terms of purchasing power parity (PPP). According to Stockholm International Peace Research Institute, India's military budget (PPP) stood at US$72.7 billion in 2007. A major portion of India's current defense budget is devoted to the ambitious modernization program of the country's armed forces. Between 2007 and 2012, India is expected to spend about US$50 billion on the procurement of new weapons. India boosted defence spending by 21% in 2009.

China has the largest military in the world, and India has the 4th largest.Economic theory teaches us that incentives drive decision making by a nation or an individual. In case of India, a democracy with no serious military adversary, its militarisation drive is often overshadowed by internal militancy issues and political struggles. In case of a communist China, it has a powerful military adversary in United States; the conflicts over Taiwan give China a strong incentive to beef up its military defence to counter the US military might. The situation is much similar to that of USSR vs USA Cold War, albeit on a much smaller scale. The end result is China walking far ahead of India in military might with overpowering superiority if both conventional and nuclear forces are taken into account.

If a purely conventional war were to take place between india and pakistan, India would most likely overpower Pakistan owing to its superior military technology and infrastructure, larger manpower, more territorial area and a strategic advantage in its sea and air forces. It must also be noted that a war between these two countries will matter more than India’s conventional superiority as both these nations are nuclear powers on an equal deadlock. India has maintained a ‘no first use’ nuclear policy in the lines of a similar policy by China while Pakistan does not have any such policy, considering their only hope against India is in nuclear deterrance. It would be risky for India at the present scenario to go into any aggressive war against Pakistan as the repercussions would be serious a nuclear devastation for both countries.

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28) Foreign trade impact: 3.5

Foreign Trade is one of the significant macro fundamental variable of an economy. India was predominantly a primary goods exporting and mainly an industrial goods importing country. In 1950s, India's share in the world trade was 1.78% which was decline to 0.59% in 1990 and continues to remain around 0.60% till now. India's share in world exports was 0.8% in 2006

Composition of India's foreign trade has undergone a positive change. It is a remarkable achievement that India have transformed itself from a predominantly primary goods exporting country into a non-primary goods exporting country. Under import too India's dependence on food grains and capital goods has declined.

India's foreign trade is handled mainly by Bombay, Calcutta, Madras ports. Therefore, these ports remain over busy. During planning period Government of India has developed three more ports viz; Kandla, Cochin and Vishakhapatnam.Most of India's foreign trade is by sea routes. India has very little trade relations with neighboring countries like Nepal, Afghanistan, Burma, Sri Lanka etc. About 68% of India's trade is by sea.India's foreign trade depends mostly on foreign shipping companies, insurance companies and banks.government has been paying special attention towards these aspects of foreign trade. we can say that india was not dependent totaly on the foreign market which can be seen from the recent 2008 economic crisis.the economic crisis of 2008 swept away most of the countries .we cannot say hat india was totaly resistant from its shock but to a larger extent we may find that the condition was not that worse which prevailed in other countries.infact the traces of such crisis is still present in other countries but india has totally overcomed its downfall.

The India's expedition towards economic liberalization began in 1991 and it opened the door for foreign trade and foreign investments. Within 10 years or so, India showed the potential of being a contender as the world'sfastest growing economy. In fact, the country secured its position as the second fastest growing economy in 2008.The Indian markets have started entertaining increased number of foreign consumers, alongwith the domestic consumers. The entry of the foreigners into the Indian markets was initially criticized but the scene is not the same anymore. The Indian Foreign Trade Policyof 2009-2014 has added 26 new markets to its aim of achieving the export target of US$ 200 billion and export growth target of 15 percent for the first two years. Other aims of the policy are to double India'sexport of goods and services by 2014 and to double India's share in global merchandise trade by 2020. The upcoming decade will play asignificant role in fortifying the country's trading capabilities. if we look at the numeric value of exports and impors as a percentage of gdp we find that export accounts for 18% of gdp whereas import for 25 % of gdp which sum up to 43% of gdp which is too big.when we look at the indian scenario through these numeric value we find that india really is dependent on foreign trade to a large extent. total export and import in india in year 2010-2011 is us $171,304.36 million and us $258,843.59 gdp of the economy is us $1,704 trillion therefore foreign trade in percentage is 39.61%

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29) Management of foreign currency budget : 3.5

INDIA is in a recovery mode from the hugely impacted global financial meltdown surfaced in mid-September 2008. An advance estimate of the Central Statistical Organization indicates to 7.2 percent GDP growth during the current fiscal year ( 2009-10), though the government expects it may even surpass the CSO estimates. Coupled with this, the industry is sending encouraging feeler to fuel the hope for a better revival of the economy from the onslaught of the meltdown that had impacted among others India's exports like most of other countries around the world. The cumulative growth for the period April-December 2009-10 stands at 8.6 percent.

The growth in GDP during 2009-10, according to CSO advance estimates, is estimated at 7.2 per cent as compared to the growth rate of 6.7 per cent in 2008-09. The balance of payment of India in January-march 2011 showed a surplus of 2031 crore. This balance of payment takes into account the capital account,current account and error and the foreign exchange reserve of this country increases by rs 2031 crore. The export of India as a percentage of gdp in the year 2010 was 18%.whereas imports of India as a percentage of gdp in the same year was 25%.the balance of import and export is minus 7%. This reduces the overall money supply of the economy and hence creates further imbalances in the economy india's export and import is us$171,304.36 million and us$258,843.59 million. therefore the deficit amounts to 87,439.23 million which is 5.13% of gdp

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30) Layers of collective action: 2.5

Local self government is the management of local affair of such bodies who have been elected by the local people .local bodies are established on two different principles. The 1st principle comprises local bodies ,which enjoy extensive power to act in any way they like for the betterment of the community unless restricted by the law in any sphere of activity. the 2nd principle comprises local bodies that cannot go beyond the specific functions defined for them in various acts and statues .The local government bodies comes under the state list and are governed by the state statues, or in case of union territories, by the union parliament

Currently around 3 million elected member represent about 2.4 lacs village panchayats,500 district panchayats and 6000 intermediary tiers. the panchayat represents around 5.56 lacs villages and almost 99.6% of population in the rural areas.

Recent years have witnessed an increasing interest and a growing consciousness of the need and importance of local self-government as provider of services to the local community as well as an instrument of democratic self-government. the level of government is closest to the citizens and in the best position both to involve them in the decision making process of improving their living conditions and to make use of their knowledge and capabilities in the promotion of all round development. There are two types of local government: urban local government and rural local government. Until recently, urban local government was manifested in Municipal Corporations, Municipal Councils, Town Area Committees and Notified Area Committees. However, the Seventy-Fourth Constitution Amendment Act adopted in 1992 proposes to form a uniform structure of Municipal Corporations, Municipal Councils and Nagar Panchayats in transitional areas. Rural local government operates through Zilla Panchayats (Parishads), Taluka Panchayats and Village Panchayats.

the Rural-Urban Relationship Committee set up by the Government of India in 1963, pointed out that local government can no longer remain merely instruments of political education and civic conscience. Instead they have to become institutions for the promotion of social and economic development of local communities as well as an integral part of the National Government. The Committee also made significant recommendations on various aspects of local government like the criteria for constitution of municipal bodies with the need for a clear delineation of powers, functions and resources of urban bodies. As far as the municipal government was concerned, it was assumed to be a State Function. Entry 5 of the State list in the Seventh Schedule of the Constitution of India gives legislative power to the State with regards to municipal laws, establishments, constitution and powers of local governments. Except for recognizing local self-government as an essential part of the system of Government, the Constitution does not confer any independent status or powers to local government bodies Municipal bodies (corporations and councils) are prescribed to perform a vast array of functions (obligatory and discretionary) for which adequate financial resources should be available. However, there is no separate list of taxes exclusively for municipal bodies. Many Commissions like the Local Finance Inquiry Committee (1951) and Taxation Inquiry Commission (1953-1954) have been set up from time to time to look into the issue of municipal finance. However, municipal finance was left to the discretion of the respective state governments to specify by law matters relating to imposition of taxes.

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31) Pro-business climate: 3.5

It is not difficult to find the social missions that have become part of the culture of Indian businesses. ITC, a leading conglomerate, made the following statement in describing the company’s purpose. “Envisioning a larger societal purpose” has always been a hallmark of ITC. The company sees no conflict between the twin goals of shareholder-value enhancement and societal-value creation. These companies put their money where their mouths are with respect to mission. A large proportion of the profits of the Tata Group companies, for example, go to its charitable foundations and back into Indian society. The Godrej Group has constructed schools, medical clinics, and living facilities for employees on a scale unknown in American companies.

While it is true that the social needs are greater in India than in most other countries, the efforts of these companies to address them are nevertheless there for all to see. Earlier this week newsrooms received a joint press release from seven multinational food corporations in India announcing “a common commitment to responsible marketing to children.”

A sense of social mission and purpose is one of many characteristics of the India way that has resulted in the incredible success of Indian businesses throughout the years.India scores over other places in terms of being an ideal destination for investments mainly due to its vibrant democratic setup, which is aptly underpinned by a broad legal framework and independent judicial system. Apart from these factors, the presence of a vast network of bank branches, financial institutions, and a well-organized capital market contribute to making India a preferred destination over other places by foreign investors. The strategic location of the country in the context of the third world market in the rapidly growing southeastern Asian markets along with a supportive infrastructure provides India with a competitive advantage over other countries for attracting foreign investments.

• ; •

32) Government enterprise: 3.0

India has a mixed economy, with the government-owned public sector and the private sector playing active roles. The public sector has traditionally been dominant in infrastructure and in basic industries, while the private sector has played an important role in all other sectors. In India, the government owned enterprise is known as public sector undertaking (PSUs). It is the company in which the government owns 51% or more of company’s equity. The term Government Linked Company (GLC) is sometimes used to refer to corporate entities that may be private or public (listed on a stock exchange) where an existing government owns a stake using a holding company.

The government subsidizes everything from gasoline to food. Loss-making state-owned enterprises are supported by the government. Farmers are given electricity for free. Government gives huge subsidies to oil marketing companies like IOC, HPCL, and BPCL for selling petroleum products at subsidized rates. This makes it almost impossible for private players to compete with these state owned companies. That is the reason why reliance had to close down all its petrol pump in 2008.but the government cannot continue to provide subsidy forever. It has already started the deregulation process.

Similarly fertilizer industry is also highly dependent on subsidies. Here both farmer and the fertilizer industry have been subsidized. The total fertilizer subsidy has increased from 13800cr(2000-2001) to 75849cr(200-09). The total explicit and implicit subsidy as a proportion of GDP is equivalent to 4.25% and 4.18% for the year 2002-03 and 2003-04 respectively. Overall, a 2005 article by International Herald Tribune stated that subsidies amounted to 14% of GDP. As much as 39 percent of subsidized kerosene is stolen. Moreover, these subsidies cause economic distortions.

Source:- impact-on-indian-economy-profitable-investment/ ; A Report on central government’s subsidies in india ; ;

33) International security agreement : 4.0

India has built up a strong and capable army , navy and air force which is the 3rd,4th and 7th largest in the world respectively. india’s military is not only large but effective , well trained and increasingly well equipped. Their air force has been known to be the best than that of the US in combat air exercise. In the world of admiral Suresh Mehta(chief of Indian naval staff) India is looking for “mutual respectful partnership that ensures the stability of Indian ocean”

Along with the external security , India’s military also have a strong domestic role in fighting internal militancy .what is perhaps more surprising is that despite having the 3rd largest Muslim population in the world , excepting the attempted suicide attacks in England over the past summer , there are no known Indian Al-Qaida or Taliban member. This fact could suggest that India might have something to teach concerning anti terrorist activities

South Asia is an insecure region, and India is surrounded on all sides by unstable democracies, conflict-ridden countries, militant activity, authoritarian leaders or weak governments, and countries with which India has historically acrimonious relations. In order to ensure that such negative influences do not seep into India, despite the inherent cacophony described by its diverse ethnic and religious population and inequality, India has developed a strong democracy. This has enabled all parts of India’s society (to very differing degrees) to engage in the political process, a fact that helps maintain domestic stability. It is greatly in India’s interest to encourage others in the region to follow its example and in so doing improve the prospects of strong and continuous growth.


34) Protection of domestic enterprise from government mandated cost: 3.0

Wholesale and retail

Permits of Foreign Investment Promotion Board (FIPB) is required for investment in export-oriented wholesale business and wholesale business in which the foreign stake is 51 percent or greater. Investments in supermarkets, convenience stores and other retail sectors are for all practical purposes banned. In recent years, the government of India has intended to open the retailing sector to foreign companies, but no specific regulations have been issued so far. Up to the present, the Government has only allowed multinational companies to open specialty stores in the Country


Most Indian banks are government-owned, and entry of foreign banks remains strictly controlled, including the establishment of bank branches. State-owned banks control 80 percent of the banking system. The liberalization process of India's banking industry is very slow. FDI in state-owned banks remains capped at 20 percent. The banking sector still needs further liberalization.

The government of India takes a cautious position in allowing foreign investment in the media sector. With a view to ensuring the controlling decision-making power of the Indian side in media enterprises, the Indian government stipulates that FDI in newspapers and TV news channels shall not exceed 26 percent and that investment by foreign institutional investors is forbidden. Although there is no restriction on FDI in TV entertainment channels, foreign investment in cable network is not allowed to exceed 49 percent.

The government of India announced in July 2005 that FDI in privately owned FM radio sector was allowed. A public invitation for tender was held to seek for private investors for 330 FM radio stations in 90 cities. Foreign radio stations and participate in the bidding in conjunction with their Indian partners and are allowed to have a maximum of 20 percent ownership. This policy is slightly liberalized, but the government of India stipulates in the mean time that privately owned radio stations shall only broadcast entertainment programs and are not allowed to broadcast news. In addition, the Country will have 15 percent ownership in these FM radio stations, and each station is only allowed to have one channel.

Other barriers

Although the Memorandum of Understanding on Simplifying Visa Procedures between the Government of the Republic of India and the Government of the People's Republic of China was signed on June 23, 2003, the India embassy's examination of visa applications from Chinese nationals remains bureaucratic, and India's visa policy towards Chinese citizens lack certainty and transparency. Chinese business people traveling to India often complain that it is rather difficult and time-consuming to obtain a business visa or work visa. These practices by the Indian government exert a negative impact on other countries

Although import license for most products has been abolished in India, strict import restrictions are still imposed on second-hand products and motor vehicles of various models. Refurbished computer spare parts can only be imported if an Indian Chartered Engineer certifies that the equipment retains at least 80 percent of its residual life. The Indian government stipulated restrictive conditions such as life cycle and entry from specify ports for the importation of new vehicles and used vehicles. Besides, importers of vehicles of any type also face restrictive and trade-distorting import practices. For example, the government of India requires special licenses for importing motorcycles that are virtually impossible to obtain. Import licenses for motorcycles are granted only to foreign nationals: (1) permanently residing in India; (2) working in India for foreign firms that hold greater than 30 percent equity; or (3) working at embassies located in India. The application procedure is unduly complicated and lacking in transparency.

Reference:- ;




      1               4.3           12.9             15.0        86%

      2               5.0           15.0             15.0       100

      3               2.0            6.0             15.0        40

      4               3.5           10.5             15.0        70

      5               4.0           12.0             15.0        80

      6               4.5           13.5             15.0        90

      7               4.0           12.0             15.0        80

      8               2.0            6.0             15.0        40

      9               4.0            8.0             15.0        80

      10              4.5           13.5             15.0        90

      11              4.0           12.0             15.0        80

      12              3.5            7.0             10.0        70

      13              3.0            6.0             10.0        60

      14              5.0           10.0             10.0       100

      15              3.0            6.0             10.0        60

      16              2.5            5.0             10.0        50

      17              4.5            9.0             10.0        90

      18              1.5            3.0             10.0        30

      19              2.0            4.0             10.0        40      

      20              3.5            7.0             10.0        70

      21              4.5            9.0             10.0        90

      22              3.0            6.0             10.0        60

      23              5.0           10.0             10.0       100

      24              3.5            7.0             10.0        70

      25              2.5            5.0             10.0        50

      26              2.5            5.0             10.0        50

      27              5.0           10.0             10.0       100

      28              5.0           10.0             10.0       100

      29              2.0            2.0             5.0         40

      30              4.0            4.0             5.0         80

      31              5.0            5.0             5.0        100

      32              2.5            2.5             5.0         50

      33              5.0            5.0             5.0        100

      34              3.0            3.0             5.0         60           

  TOTAL             122.8          261.9           365.0         72.0%
                    =====         ======           =====        =====
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1: Freedom from internal control : 4.3

The right to speech and right of expression and the liberty to travel and , the right to education are basic principles and the amendments to the constitution.


2: Freedom of speech 5.0

Freedom of speech in india is a fundamental right according to the indian constituition now because of technology and the media citizens of india are able to express their views . People express their views on facebook and other social networks freely . And through the media , people of all classes have this freedom.


3: Effective fair police 2.0

The police in india is mostly corrupt and many criminals get out through bail or bribes the police of india only focuses on major crimes such as murders or mass robbery otherwise they are bribe able. And they usually serve the purpose for the protection of the politicians , and the police force is fairly small.


4: Private Property 3.5

The right to property is a basic right given to all the citizens. On the scale according to index of economic freedom India ranked 50 out of 100.The government has the power to take private property when it is required in the interest of the nation.“India ranked 52 in 2011 index against its position at 53rd among 125 nation.

Sources: ;

5: Commercial banks 4.0

There various commercial banks in india and these banks are regulated by the RBI (Reserve bank of india) . There are public sector banks in which majority of the stakes are held by the government such for example , punjab national bank ,ICICI bank etc. And there various foreign banks such as standard chartered bank and even chase bank. And commercial banks are allowed to make loans and take deposits.

6: Communication System 4.5

india's telecommunication network is the second largest in the world based on the total number of telephone users. There various government owned and private companies such as reliance ltd who compete with government telecommunication’s. It has the world's third largest Internet user base with over 137 million as of June 2012.Major sectors of the Indian telecommunication industry are telephone, internet and television broadcasting.


7: Transportation: 4.0

India has connected all its cities through national highway , these roads are maintained from period to period . India has government owned indian airlines ( domestic) , air india( international) and air ports in all the major cities. The railway station are also connected to all cities and local villages and provide an alternative . India has various sea ports used for trading goods. India also bus and metro services mostly in metropolitan cities.

Source :,,contentMDK:20703625~menuPK:868822~pagePK:34004173~piPK:34003707~theSitePK:579598,00.html

8: Education 2.0

India’s education is regulated by the board of secondary education which is not internationally recognized and the usually this board of education has made the education system in such a way that if he/she graduates her skills can mostly apply to the Indian economy. But there is lot of competition in India among student many students are left out because of space in universities so they have study through correspondence .

Punjab university rank is 226 out 400 and Indian instituite of technology ranked 351 out of 400.


9: Social mobility 4.0

Indian people are divided into caste system the people of inferior caste had less opportunities but since the India constitution passed bills to make sure these groups can move up to social group by reserving space for them in government jobs and universities. Many of these lower caste people are now part of elite social groups which means India has social mobility not only for lower caste for every citizen. Since India’s fundamental right is education and equal opportunity for all.


10: Freedom from outside control 4.5

India has had many political refuge’s such as the dali lama and the jews and the afghans during various period of time’s. When other citizens of other country travel to india they are subject of indian although other countries can put diplomatic pressure on india regarding its citizen it depends on the power of the nation that is putting the pressure .


11: Protection of domestic enterprises 4.0

India imposes tariffs on various foreign goods in order to protect its own domestic products such as medicine , vehicles, and jewelry. India imposed tariffs on vehicles because in order to protect its local vehicle market which is an cheap alternate , even though foreign vehicles provide better quality.


12: Foreign currency transaction 3.5

All the foreign currency is converted into rupees and recently its value has been depreciated, but remains the sole way of currency transaction .


13. Border Control 3.0

The Border Security Force (BSF) is a border guarding force of the Government of India. Established on December 1, 1965, it is one of the Central Armed Police Forces. Its primary role is to guard India's international borders during peacetime and also prevent trans-border crime. Like all paramilitary forces of India, the BSF is under the administrative control of the Ministry of Home Affairs. It is one of the many law enforcement agencies of India. India has borders with Pakistan , Bangladesh and china and there has been various causalities in the border and takes border control as serious prioty.


14: Currency 5.0

The Indian national currency is the rupee and it is used in all states of the country and is convertible to dollars and euro’s according to the RBI (Reserve Bank of india).


15: Cultural language homogeneity 3.0

India is a diverse nation and has many culture residing within it and therefore there is a difference in ideology, belief and values, and such difference causes conflicts within two different culture specially the Hindu’s and the Muslims. There has been riots and massacres because of this major difference but some argue that it what makes the nation stronger and united. And there is also many language in india and dialects that vary from place to place.


16: Political effectiveness 2.5

The Indian government has been known for being slow , it takes months or even years to pass a bill it is because India is the worlds biggest democracy and thus has more members in congress than usual and there is a clash between two major ideliogies of stagnation vs change, that why politically it takes really long time to make decision regarding change.


17: Institutional Stability: 4.5

The party which is in office has been if office for nearly two terms each term being five years and there institution is quite stable because there main objective was to have a stable economy with a stable inflation and they have achieved it through there term. There are always conflict between the two parties between thier ideoliogy.

18: Honest Government 1.5

India’s biggest problem has been corruption and the government has taken no protocols to fix these problems many people of the youth and the working class have been dissatisfied with the government which have resulted into protest rallies. India ranks 94th in the corruption index according to transparency international among 125 nations.


19: Common laws 2.0

There is a common perception among people that the legal system is easily bought by money and power. There is a common feeling that indian laws are flexible enough to make sure thecase is won by the rich. Very rarely are cases that involve common men given high importance. Sometimes media picks up a few cases of injustice by powerful people. But common man is afraid to knock on the doors of the court for justice

20. Central bank 3.5

India’s central bank is called the RBI (Reserve Bank of India) it is responsible for regulating monetary policy and regulating other banks even though it does not have political influence 10 of the 24 board members are appointed by the government who have economical elements of india usually large corporate owners. and they are independent of govertment power and the board of directors has 4 year terms.


21: Domestic budget management 4.5

Tax revenues and expenditures with tax-GDP ratios:

Years	 Revenues % of GDP	Expenditures% of gdp      % Differences     

2007-08	   8.81		      12.9	           -4.09                        
2008-09	   7.87		      14.1	           -6.23
2009-10	   7.07		      14.2	           -7.13
2010-11	   7.35		      15.4	           -8.05
2011-12	   7.40		      14.0	           -6.6 

The inflation rate in India has been over 7% in the last few years. It is currently at 7.55% in July of 2012.


22) Government debt : 3.0

The internal debt of Indian economy is 2816693 crore whereas the external debt of the Indian economy is 312280 crore.the total of internal as well the external debt amounts to the total of public debt of 3128973 crore.gdp of indian economy in the same ear was 1.537 trillion.the debt-gdp ratio of india approx 66%.the data shows a poor performance on the part of indian government. India’s public debt zoomed to more 76 per cent of the total GDP, which is much higher than our previous economic outlook research (55 per cent was then) and the further fiscal imbalances and rise in government cash balances will keep inflation on the higher side for the next few months but the we have projected the cut in inflation rate backed by lower food price inflation.. India has been a favoured target of foreign finance. And if it does not satisfy its requirements, it can fall out of favour. In its search for new investment targets, global finance has viewed with interest debt markets in countries like India. And in any debt market, what better instrument than relatively risk-free government securities. So, anything that muddies that potential market would disturb finance capital. India may be put on alert and even downgraded. The fact that, at the moment, publicly owned banks largely hold government paper is inadequate insurance.India needs to look at its Tax and Fiscal Policy and try run a balance budget with raising enough tax from both Businesses & Individuals. With 8% to 9% growth, india should be able to collect enough tax to finance its need. In addition, it has to run the Government owned Corporation with much more efficiently. Revenues from Postal Services, Railways, etc should be look after carefully. In addition, it needs to pay off debts. So India needs more revenue.

Source:- ; ; 23: Economic statistics 5.0

India has various newspapers and the RBI publishes the economic statistics and these results are broadcast on television and the RBI publishes the result quarterly and these results are also checked by the world bank and have been deemed quite accurate.


24: Protection of public health and Safety 3.5


Population:1,220,800,359 (July 2013 est.) country comparison to the world: 2

Birth rate:20.24 births/1,000 population (2013 est.) country comparison to the world: 87

Death rate:7.39 deaths/1,000 population (2013 est.) country comparison to the world: 117

Infant mortality rate: total: 44.6 deaths/1,000 live births country comparison to the world: 50

male: 43.28 deaths/1,000 live births female: 46.08 deaths/1,000 live births (2013 est.)

Total fertility rate:2.55 children born/woman (2013 est.) country comparison to the world: 81

Health expenditures: 4.1% of GDP (2010) country comparison to the world: 164

These are the numbers from Cia world factbook and it can be proven through these numbers that India has good health conditions compared to other countries .


25: High wage policies: 2.5

The Indian government enacted The Minimum Wages Act in 1948, which regulated the minimum wage a laborer would draw on his work. The wage distribution in India is different as it differs in each state, as well as on the basis of skill. But higher wages are only promised if the labor becomes skilled the wage policy is set up in such a way to satisfy the financial need and to make sure the worker is efficient .

Source: ; ;

26: Environmental protection: 2.5

India has less regard toward the environment in the cities as many of the major cities in India are polluted and some areas don’t even have a good sewer systems but India is taking measures to protect the tiger and various animals that are on the verge of extinction. Most of the focus are on the forest’s


27: Strong army: 5.0

The Indian Army ranks 4th in the world according to its power, and is right after China in terms of numbers. The Indian Armed forces have the Indian Army, Indian Air Force and Indian Naval Forces, along with the paramilitary organization of the Indian Coast Guard. India has involved in many wars and have been victorious in theses battles and have protected its citizens against various foreign threats.

Source :

28: Foreign trade impact 5.0

The GDP of india is 1.842 trillion and import is 500.4 billion which is nearly a third . Many products in india are imported because of their scarcity such as gold and precious gemstones, eventhough these are luxury products they are a necessity in india because of the cultural use of gold in india . recently there has been tariffs on guild so that the economy stabilizes because there was excess import of gold.


29: Management of foreign currency budgets 2.0

The Indian currency has depreciated drastically from 50INR Per dollar to 60INR per dollar. And is slowly recuperating This because of the less revenue from exports(apx 298.4 billion) and high imports (apx 500.4 billion). Which leads to a deficit of -202 billion $.

298.4 billion$ - 500.4 billion$ = -202 billion$

30. Layers of collective action 4.0

India has the largest number of non-government organization in the world according to the Indian express there is an NGO for 400 people and these are funded by private organizations .There has been an increase in the number of organ donors, and the funding has led to the creation of primary schools and public schools. Each state has its own municipal corporation and they have been slow response to their complaints.

India has 3255 urban local bodies which include municipal corporation, muncipalities,town area commitee,notified area commitee.The municipal bodies of India are vested with a long list of functions delegated to them by the state governments under the municipal legislation. These functions broadly relate to public health, welfare, regulatory functions, public safety, public infrastructure works, and development activities.

Public health includes Water supply, Sewerage and Sanitation, eradication of communicable diseases etc.; welfare includes public facilities such as Education, recreation, etc.; regulatory functions related to prescribing and enforcing Building regulations, encroachments on public land, Birth registration and Death certificate, etc


31 Pro Business Climate 5.0

The business climate in India is fairly optimum India has seen an exponential growth in short period of time. This led to increase in jobs in the private sector of India , many Indian’s choose business leadership and jobs in business because it promised high wages and this promised them a prosperous opportunity. Many of the major business leaders have rags to riches history. This inspired many Indians to employ in there company or to start their own.







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32 Government enterprises: 2.5

India is a highly subsidized country , India subsidizes products ranging from food to fuel because of the fact that nearly 30% of the population is poor this results in subsidizing necessary products such kerosene for cooking and heating and milk for nutrients almost 30% of the Indian GDP is because of the subsidy.


33 – International Security Agreements 5.0

In this case India would score a 5.0 due to its large army and international pacts with other nations.India has the world’s 4th Largest military force it has military pacts with the Japan, Vietnam, Cambodia, Laos. Because of the fact of the neighboring growing potential china which poses a threat. Another neighboring country Pakistan also poses a threat so it has pact with Afghanistan. Not only that India is the largest contributor of military force to the United nation .


34- Protection of Domestic enterprises from Government Mandated costs. 3.0

In this case India would score a 3.0 because some precautions are imposed on major sectors but minor sectors have no precautions taken.India has a ministry of labor which has its department in every state and union territory they highly focus only on mining and oil industry. India has legislation on occupational safety and health for 50 years but regulatory authorities are limited 1,400 safety officers and 1,154 factory inspectors and 27 medical inspectors. These numbers can be regarded as insufficient for the inspection due to the fact the inspection that can done with these number of people is only limited to the 10 % of the total workforce (est. 26 million) while it can be concluded that the workforce on informal sectors have no safeguards.



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