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"Chabahar"India's Economic Gambit by Jawad Falak, Zeeshan Muneer and Hassan Riaz INTRODUCTION

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Issue Brief "Chabahar"India's Economic Gambit By Jawad Falak, Zeeshan Muneer and Hassan Riaz www.cscr.pk INTRODUCTION: India is an important South Asian country and a regional power. India in addition to having vast territory and huge population of 1.2 billion also possess abundant natural resources, including agricultural land, oil and gas. It also possesses nuclear weapons and maintains a large military. India is one of the largest economies in the world and is an emerging market. It has a GDP of 1.8 trillion (USD). Indian industrial base is strengthening with new textile, pharmaceutical, automobile and IT units being set up across India. The literacy rate in India is also rising which is producing skilled work force and proficient technicians, doctors, engineers etc and this has attracted FDI in India in shape of software services, call centers and business process outsourcing. Indian economy has been growing at a rate of 7 % since 2001. If India is able to sustain this growth rate for the next decade, it will most likely become third largest economy in the world next only to USA and China. Favorable growth factors such as cheap and trained labor, low cost manufacturing, consumer spending power and countless business opportunities has made India an attractive business destination for western multinational companies and firms. The increasing cooperation and trade between India and West has lead India to find shorter and cheaper trade routes. Iran, an important Indian partner provides India with such route. India has decided to invest $500 million to develop strategically important Chabahar port. The port would open a transit route to Afghanistan and Central Asia for Indian goods and products. Chabahar port would also enhance Indian oil and gas import opportunities which would also help tackle Indian future energy shortage crisis. This port would also create new economic opportunities for India in Middle East. This port will enable India to trade with Europe and Russia through International North South Transport Corridor. Chabahar port will help boost Indian economy and will increase its trade ties with Central Asia, Middle East and the West. Indian economic strength will depend on this port in future. COMPLETE OVERVIEW OF INDIAN ECONOMY: The strength of a country can be determined by various factors above all it is economy as if a state possess strong economy then international community will also give attention towards its issues. By dividing economy into various heads industry is just one component of economic development. Behind industrial development effective policy mechanism, bureaucratic structure of decision making and some other things determine the economic strength. India is also one of world’s largest economies with massive land and man power and also has massive economic growth potential. For better understanding of Indian economy and industrial power, we divided India into four zones: South, North, West and East India. As India, geographically is very big country so there are about twenty nine states, all has their separate industries especially according to the terrain of a state. This will decide that whether the state will produce the agrarian products, dairy products or that will provide software to outside world. The link of a state with sea port also determines its work and its collaboration with other states as well. Seven States include in South India named as Maharashtra, Telangana, Goa, Andhra Pradesh, Karnataka, Tamil Nadu and Kerala. Twelve states include in Eastern India named as Odisha, Jharkhand, Bihar, West Bengal, Sikkim, Meghalaya, Tripura, Assam, Arunachal Pradesh, Nagaland, Manipur and Mizoram. 2 www.cscr.pk Indian Industrial Regions (Courtesy Blog Berlin) States in South India: South India mainly comprises on seven states namely Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Goa Maharashtra, and Telangana. 3 www.cscr.pk 4 www.cscr.pk Major Industries in South India State wise: Telangana is mainly an agrarian state and various agrarian products like cotton, sugarcane, mango and tobacco, these all crops are also called cash crops. Vegetable oil is also made with sun flower and peanuts used in daily meal also grown in this province. Some hard technologies include information technology, biotechnology even the province is also rich in coal reserves. Goa is popular for Garments, diamond cutting factories, jewels, gems, automotive parts, IT and pharmaceuticals. A report published by Rajiv Gandhi Institute for Contemporary Studies and Confederation of India under which Goa was ranked on 4th number in industrial development. Goa also has twelve plus industrial zones which mainly handle the division of massive industry. Karnataka is also known as large number of educational institution which shows the highest literacy in state. It is only reason the main industries are IT, Pharmaceuticals, electronics which is mainly run by intellectual people. Some other industries run by man power include leather, steel tourism, cement and automobiles. Tamil Nadu another important state for IT, it export software worth of 51 Billion $ alone 2007 and also considered as India’s hum for IT. Kerala another important state in South India possess many household or cottage industry and it gave employment opportunity to more than one million people in just one state. Some other industries include rubber, tea, coffee, black pepper, rice, coconut, areca nut, cashew kernels, coffee curry powder as all are related to agrarian products. Fisheries is also another source of income for state which includes squid, tuna, shrimps, lobster, cuttlefish and sardines even Kerala fulfill have of country’s fisheries demand. Maharashtra is also another important state, Mumbai with is capital, which is also considered as hub for film industry even India’s biggest city. The main industries lies here are wine, biotechnology, chemicals, IT, engineering, electronics, petrochemicals, pharmaceuticals, transportation, textile and waste recycling. The corporations like Maharashtra Industrial Development Corporation are present in every state with full willingness for economic development. Even these are present in every state and with their collaboration with each other they produce massive industrial output. States in Eastern India: States include in Eastern India are Mizoram, Manipur, Nagaland, Arunachal Pradesh, Assam, Tripura, Meghalaya, Sikkim, West Bengal, Bihar, Jharkhand and Odisha. 5 www.cscr.pk 6 www.cscr.pk Various Industries in East India: All States in East India have different products according to their terrine and play their role in country’s progress. Here we mention as a whole the industrial strength of East India as states have been already mentioned. The various Industries include bamboo, agricultural, horticulture, tourism, food processing, IT, medical plants, handlooms, handicrafts, sericulture, hydropower, allied industries, minerals, mining, arts and crafts, weaving, sugar cane, carpet weaving, wood carving, ornaments, iron and steel, chemicals, beverages, floriculture, hydroelectric power and cement. States in North India: States in North and Central India includes Chhattisgarh, Madhya Pradesh and Uttar Pradesh. Industries in North and Central India: North India is locked between other states and Nepal even then the industrial growth is quite well here the industries like iron and steel, cement, biotechnology, auto components textiles, agro and forest based industries, pharmaceuticals and tourism and IT. Some cottage industries are handlooms, handicrafts, food processing and sports goods. 7 www.cscr.pk States include in Western India: West India includes Occupied Jammu and Kashmir, Himachal Pradesh, Punjab, Rajasthan, Gujarat, Haryana, Uttarakhand. Industries in Western India: The terrain of this region is more prone towards agrarian products however some other industries also lie there. These include paper, cement, pharmaceuticals, light engineering equipment, IT, electronics, hydropower, chemicals and petrochemicals, gems, oil and gas. Some agrarian industries include textile especially silk textile including woolen textile, food based industries and diary. These were some industries states wise and how these are playing the vital role in Indian development however there are some other industries which have their significance these may include. Industries on Broader Paradigm: India is rich in natural resources with second largest man power in world which signifies cheap labor mad massive cheap exports. Mainly Indian economy is run by 60 plus major and minor industries, however remaining are mentioned below. As these have their significance for India’s regional development. India’s Major and Minor Industries: • Zinc Industry: Two giants in Zinc Industry Hindustan Zinc and Binani Zinc • Turbine Industry: Mainly related to Wind energy • Tractor Industry • Toy Industry • Television Industry: Massive viewers • Telecom Industry: Started in 1851 • Tea Industry 172 Years old • Solar Industry: Especially in rural areas • Soap Industry: Different Brands of Soap according to someone’s income • Silk Industry: 2nd largest producer, 18 % of world production, their own demand is high • Shipping Industry: 90 % Indian trade via sea, • Rubber Industry • Retail Industry: Fifty largest retail industry, • Real Estate Industry: 26.53 Million Houses • Railway Industry: One of the largest network in world • Printing Industry • Power Industry: Necessary for economic progress • Poultry Industry: Constantly in rising • Plastic Industry: •
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