Interdependence of India

• Population

  1.4 billion
• Urban population

  35 %, which is low for a growing country
• GDP patterns

  • 7th largest in the world
  • GDP per capita rose from $500 (in the year 2000) to $2500
• In 1990, agriculture accounted for 32% of the total GDP, and fell to 15% in 2024
• In 1990, industry accounted for 27% of the total GDP, and fell to 23% in 2024
• In 1990, services accounted for 41% of the total GDP, and rose to 61% in 2024
• Overall, there has been a deficit in trade due to consumer spending, however there has been a surplus received from USA, UK and UAE due to increased service exports
• Service exports increased via economic liberation - trades became more open which allowed for more privatisation, FDI / outsourcing
• Main trading partners

  • China
  • USA
  • Germany
  • Belgium
• Geopolitics- India and China

  • competing to build infrastructure along the border
  • Major clash in 2020 triggered by India's construction of a new road, resulting in the deaths pf 20 Indian troops and 4 Chinese troops
• India's economy

  • developing an open-market as it moves away from protectionism
  • rapid economic growth through the service economy rise to become the largest growing in the world - mainly facilitated through outsourcing
• Trade during the 90s

  The import substitution policy saw to reduce imports by developing industries within a country. As a result, India imposed high tariffs on goods coming in, consequently limiting its role in global trade.
• As a result of India's increasing interdependence, a fundamental south-south trade relationship formed - especially with China. There's over 100 Chinese companies trading in India and over 165 Indian firms in China.
• As India's interdependence with China continues, both countries are working together to achieve common goals of:

  • improving life expectancy
  • human rights
  • better living standards
  • reduce social and gender inequalities

  HOWEVER- there is a clash due to political differences, China is predominantly communist whereas India is very democratic.
• As a result of continued interdependence, India must address its role in carbon emissions. Both China and India are signed members of COP, however the lack of progress is urging both countries to seek more advanced and efficient methods of renewable energy, as well as helping water supply and reducing land degradation in the Himalayas.
• Social impacts as a result of India's interdependence

  • A positive correlation between India's bigger role in global trade and its HDI, which has doubled since 2000
  • A positive multiplier effect has occurred through improved trade, resulting in:
  • improved infrastructure and services --> improved social conditions and living standards
  • providing a higher skilled workforce --> develops trade
  • inequalities have reduced - poverty improvements and balanced gender access to education and healthcare