India: A Background study
India is a country of social and geographical differences. About 26 per cent of the population live below the poverty line. Although the number of poor was slightly reduced in the 1990s, the number of persons living below the poverty line remained unchanged. There are also major challenges to be addressed in the field of human rights in India, particularly in relation to the caste system, child labour and the role of women.

Life expectancy in India is 63 years. Fifty-two per cent of the adult population can read and write; 65.5 per cent of the men and 37.7 per cent of the women, according to the CIA Factbook. Child mortality is 61 deaths per 1,000 live births. India ranks in 124th place among the 173 countries on the UNDP’s Human Development Index 2002. This list indicates a country’s development in terms of life expectancy, education, literacy and income.

Based on these criteria, India is at a medium level of human development.

Political situation
India became an independent nation in 1947, after having been ruled by the British since the 19th century. The country was partitioned into a Muslim and a Hindu state, Pakistan and India. Once the borders were drawn, the greatest migration in the history of mankind commenced; Muslims headed for Pakistan and Hindus and Sikhs made their way to India. Over 10 million people changed sides, and even the most conservative estimates reckon that 250,000 people were killed.

The mountainous area in Kashmir, in the north of India and Pakistan, was an area for which no clear borders were defined in 1947. Today India has an ongoing conflict with Pakistan over this area, where both Muslims and Hindus fight for the right to the region.

India both is and perceives itself as a regional great power and a spokesman for other developing countries. This is reflected in the role India plays internationally through its security, environmental and development policies. India is itself a development aid donor.

Much of India’s development is the responsibility of individual states, and the authorities often choose non-governmental organizations (NGOs) to carry out measures. The system of government differs greatly in the various states. Despite a number of measures designed to give low castes and tribal peoples special advantages, India has no stated distribution policy. Bureaucracy in India is extremely cumbersome and corruption is a major problem. India is in 71st place on Transparency International’s corruption index, where number 91 is the most corrupt.

Economic situation
According to the Human Development Report 2002 published by the UN Development Programme (UNDP), development assistance for India totalled approximately USD 1.5 per capita. In comparison, per capita GNP is USD 460. India today is undergoing an economic downturn that is particularly affecting commercial cooperation and tourism.

India receives development aid, in some cases extensive, from many countries. However, this assistance is of little significance for the Indian economy. There is no common framework for dealing with aid from donors, nor has India expressed any political desire to establish one. Loans from the international financing institutions, on the other hand, play an increasingly important role. Public revenues are mainly based on customs duties and other charges. Less than 10 per cent of the population pay tax.

The greatest challenge facing India is probably the size and growth of its population, which has more than doubled since development cooperation began. The country achieved economic growth in the 1990s, and the percentage of poor people in India has declined. Nevertheless, large groups of the population have not benefited from economic development. This applies primarily to lower castes and tribal peoples, estimated to total around 300-400 million. There are also significant regional disparities.

The widespread lack of electric power is a major obstacle to more rapid industrial development. India is struggling to meet its needs as regards the production, distribution and sale of power, and developing new energy sources is therefore a priority concern. Bio-energy, solar energy and wind power are the focus of considerable attention.

India is doing very well in certain sectors, such as the IT industry. Although the Indian IT sector has also been affected by the international slowdown, the industry is still strong, also in global terms. The IT industry benefits from substantial tax advantages and is considered to be extremely attractive by young Indians. Indian IT experts can now be found in most countries. Pharmaceuticals are another growth industry.

(Updated March 2003)

Source
http://www.norad.no

CIA World Factbook 2002
World Development Indicators Database
EIU Country Profiles
The Far East and Australasia. 2003. - London: Europa, 2002. - 1633 s.: tab.
*Estimated numbers, CIA 2002