India (IN)

This is India, a country of about 1.35 billion. It is located in South Asia. It is the country with the second highest population in the world. The capital is New Delhi. The official languages are Hindi and English. The most common religion is Hinduism and is about 80% of the population, followed by Islam at 14%.

India | History, Map, Population, Economy, & Facts | Britannica


Extent of Globalization

1. TRADE

by Grace Johnson

The trade indicator of globalization displays information on India’s imports of goods and services, exports of goods and services and the total percentage of trade in the country. Imports of goods and services represent the value of all goods and services India received from other countries around the world. The exports of goods and services represent the value of all goods and services provided by India to other countries around the world. Imports and exports can include the value of merchandise, freight, insurance, transport, travel, communication, construction, personal and governmental services, etc. Imports and exports exclude the compensation of employees, investment income and transfer payments. Trade is the sum of exports and imports of goods and services measured as a share of Gross Domestic Product (GDP).

The data below presents the flow of trade, imports, and exports over the past five years, 2015-2019. Trade is represented by orange; imports is represented by yellow; exports is represented by green. The data compares the number of exports, imports, and overall trade percentages over the span of five years in graph one. You can see in graph one, India has imported more goods and services than exported goods and services from 2015-2019. Graph two demonstrates the flow of trade from 2015-2019. You can see in graph two that the percentages of trade have fluctuated from 2015-2019 but peaked in 2018.

2015 2016 2017 2018 2019
Trade 41.9 40.1 40.7 43.4 40
Imports 22.1 20.9 21.9 23.6 21.4
Exports 19.8 19.2 18.8 19.9 18.7

Graph one
Graph two

 

 

 

 

  https://databank.worldbank.org/reports.aspx?source=world-development-indicators)

2. ATTITUDES TOWARD GLOBALIZATION

by Jack Miller

In India today, according to The Pew Research Center as well as Europa there are varying degrees of receptiveness of the public to the idea of globalization. These different receptions can be summed up in a set of survey questions asked to the public. These include questions like, does trade lead to increase of wages, opinions on foreign companies, and overall attitude towards business ties with foreign entities. As the data shows the population of India is relatively split for all of these questions with the population all taking different stances on the issue.

 

Does Trade Lead to Increase of Decrease in Wages for Individual Local Workers

Source: Pew Research Center

Are Foreign Companies Buying Local Companies Overall Good or Bad

Source: Pew Research Center

 

The Overall Attitude Towards Foreign Companies Building New Factories

Source: Pew Research Center

Overall Attitude Towards Growing Trade & Business Ties With Foreign Companies

Source: Pew Research Center

3. FOREIGN DIRECT INVESTMENT

by Peter Smith

The foreign direct investment inflows indicator includes information on investment inflows, in % of GDP (Gross Domestic Product) and BoP (Balance of payments) of US dollars, from foreign parties in India between the years 1987 and 2017. Essentially, foreign domestic net inflows are the assets transferred between a foreign direct investor and a resident investor enterprise. In Layman’s terms and in the context of India, foreign investors are non-Indian nationals or corporations who bring inflows of assets to Indian businesses.

The data as a whole is from the last thirty years, and was taken from the World Development Indicators via the World Bank’s DataBank. Analyzing the data, we can see a drastic increase in the number of foreign direct investment inflows overall between 1987 to 2017. Specifically, between the year 2005 and 2008, the amount of foreign direct investment inflows in USD, spiked from roughly 7 billion USD to 43 billion USD.

https://datahelpdesk.worldbank.org/knowledgebase/articles/114954-what-is-the-difference-between-foreign-direct-inve

https://databank.worldbank.org/reports.aspx?source=world-development-indicators#

4. INTERNET ACCESS

by Cameron Howell

Internet access is a very important factor for globalization. The more internet access the population has the more they can explore other cultures. They can also interact with global economies by investing and purchasing goods from other countries.

The first chart is data from 2001 to 2018. It shows data on individuals using the internet as a % of population. In 2001 it was nearly 0% and it grew slowly until 2009. The peak was in 2017 at 32% of the population.

The second chart is data from 2010 to 2018. It shows data on secure internet servers per 1 million people. In 2010 there was only 1 secure server. The number of servers began increasing in 2015 and hit 190 servers per 1 million people in 2018. A secure server is one that uses SSL (Secure Sockets Layer). This is used to encrypt data so that others are not able to access it easily. https://www.entrust.com/resources/certificate-solutions/learn/secure-server#:~:text=Secure%20servers%20are%20those%20servers,or%20encrypted%20and%20decrypted%20communication.

5. PARTICIPATION IN TRADE AND INVESTMENT AGREEMENTS

by Jordan Robinson

The participation in trade and investment agreements for India can be broken down into three categories; European treaties, Regional Trade Agreements, and Investment treaties. Being apart of a treaty means that there is an international agreement established between States in written form and governed by international law. There are two types of treaties; bilateral and multilateral. A bilateral treaty is a treaty that states only two parties. A multilateral treaty is a treaty that states multiple parties to a treaty. Once a treaty or agreement is “Entered into Force” it indicates that a treaty or agreement has become legally binding for both parties to the treaty. The graphs include data referring to the total treaties or total agreements India is involved with, to give additional context to India’s participation.

The data for Multilateral European treaties was collected from the last 72 years, 1945 to 2017, from the Treaties Office Database of European External Action Service. The data for Bilateral European treaties was collected from the last 63 years, 1956 to 2019, from the Treaties Office Database of European External Action Service. The data for Regional Trade Agreements with India was collected from The World Trade Organization. The data Bilateral Investments for India was collected from the International Centre for Settlement of Investment Disputes.

Looking at Figure 1, India, in total, has 698 more bilateral European treaties than multilateral (Figure 1). Comparing the multilateral Regional Trade Agreement to the bilateral agreement, India has four more bilateral agreements to multilateral agreements (Figure 2). Finally, Figure 3 displays the total bilateral investment treaties India has, while also showing the treaties that have and have not been entered into force (Figure 3).

Figure 1. The direct comparison of total Bilateral European Treaties to total Multilateral European Treaties.
Figure 2. The sum of Regional Trade Agreements with India sectioned into Multilateral and Bilateral Agreements.
Figure 4. The sum of Bilateral Investments Treaties with India sectioned into Entered force and Non-entered force treaties.

https://icsid.worldbank.org/resources/databases/bilateral-investment-treaties

http://rtais.wto.org/UI/PublicSearchByMemberResult.aspx?MemberCode=356&lang=1&redirect=1

https://ec.europa.eu/world/agreements/searchByType.do?id=1

https://ec.europa.eu/world/agreements/searchByType.do?id=2

6. STUDY ABROAD / HOSTING INTERNATIONAL STUDENTS

by Samantha Hampton

There are many students across the world that hosts international students who are studying abroad. In 2018/2019, there was 1,905,299 international students and had an increase of 0.05% from the previous year. Many students who study abroad are obtaining their undergraduate degree from another country’s university. The United States hosts many international students around the world; however, the top three countries are China with approximately 369,548 students, India with 202,014 students, and South Korea with 52,250 students. Students from China had a large increase after the year 2007, students from India had an increase around 2014, and students from South Korea has slowly decreased over the recent decade. In the United States, international students make up approximately 5.5 of all students in higher education. The top six states that host international students are: California, Massachusetts, New York, Illinois, Texas, and Pennsylvania. Approximately 52% of all international students’ study in the STEM fields with a focus on engineering and Math & Computer Science. Students from India, 80% of students are in the STEM field, 10% are in Business and Management, 3% are in Social Sciences, 2% are in Fine and Applied Arts, and 5% making up all other fields. Other countries with similar features of fields of study is Bangladesh and Nigeria. The number of students who travel to India to study abroad is between 2,500 and 5,000. 26% of students who study abroad are STEM majors. Ethnic diversity and racial diversity have improved from 18% to 30% within the past decade. Women make up approximately two-thirds of students who study abroad. International students have increased significantly over the past decades as students are interested in traveling to another country and gaining their learning experiences while they are young. On the International Student website, it lists ten major reasonings as to why students choose to study abroad. This list includes seeing the world, education, taking in a new culture, developing language skills, career opportunities, finding new interests, making lifelong friends, personal development, graduate school, and the life experiences that come along with it.  

https://p.widencdn.net/6tpaeo/Open-Doors-Annual-Data-Release-2019-11-17-Print https://www.iie.org/Research-and-Insights/Project-Atlas/Explore-Data/India https://www.internationalstudent.com/study-abroad/guide/ten-benefits-to-studying-abroad/ 

6. Tourism

by Amy Smith

The graph below shows the rates at which air transportation is the main form of transportation for tourism in and out of India. As observed in the figure below, in the past five years the rate of air travel through the country has had a steady and continuous increase in passengers being carried through the country via air travel. There is no current data for the 2019-2020 year, but it wouldn’t be too far of a stretch to be able to predict that the rate of air travel dropped to almost nothing during the past year due to our lovely little friend Corona. However, the rate has begun to slowly inch its way back up as quarantine slowly begins to lift, and will probably be right back on track to begin to increase as soon as the pandemic is over. The next two points can be a little hard to decipher as they lay almost perfectly right on top of each other, but as seen in the graph below, they are not as identical as they look. For instance, registered carrier departures worldwide have increased at roughly twice the rate of freight air transportation in the past since 2016. Because of that, on the graph registered carrier departures worldwide rests just on top of air freight transport.

Country Name Series Name 2016 [YR2016] 2017 [YR2017] 2018 [YR2018] 2019 [YR2019] 2020 [YR2020]
India Air transport, passengers carried 119577835 139752424 164035637.5 .. ..
India Air transport, registered carrier departures worldwide 917625 1029426 1200111.363 .. ..
India Air transport, freight (million ton-km) 1893.8815 2407.098107 2703.964174 .. ..

Business Environment

1. Income Category

by Cameron Howell

Income category is an important indicator of the country’s level of development. The higher the countries income the more development they can do to improve the country. The first graph shows that India has been steadily increasing since the early 2000’s and has moved from low income to nearly hitting upper middle income. The second graph is GNI per capita in terms of USD in 2010.

2. Market Indicators

by Jordan Robinson

The Gross Domestic Product, GDP, is an important representation of economic production and growth. When an economy is flourishing their GDP growth over time will display as increasing. When an economy is approaching a recession or an economic downturn, the GDP growth over time will display as decreasing.  An Economist looks for positive GDP growth over time to assess how the economy can grow. While the GDP explains the economic growth in the previous quarter/ year, it can be utilized to look at how economic growth and production have affected stocks and past investments. That said an investor would pay attention to the GDP to create an investment strategy. The data displayed was collected from the last 10 years, excluding 2020, between the years 2011 to 2019. All data were retrieved from the World Bank Group.

The GDP growth is the difference between the current year’s GDP to the previous year’s GDP (respectively). The GDP growth ignores the changes in both population and price changes of products. Looking at Figure 1, India has had a steady increase in annual percent growth between 2011 and 2016 (Figure 1). In Figure 1, we see that 2016 is where India begins to peak with a consistent decrease as the data approached 2019 (Figure 1). The table displaying the values for GDP growth annual percentage also shows the steady increase of percentage, then displays the peak in 2016, and finally the decline of annual growth percentage thereafter (Table 1).

The GDP (constant 2010 US$) is a fixed base year, when calculating GDP for another year it is assumed that everything costs the same as it did the base year. Looking at Figure 2, India has had a steady increase in product production from 2011 to 2019 (Figure 2). When looking at the table we can observe the product production increasing from 2011 to 2019 (Table 1).

Table 1: numerical values for both the GDP growth (annual %) and GDP (constant 2010 US$) between 2011 and 2019.
Figure 1: The GDP (constant 2010 US$) values collected between the years 2011 and 2019.
Figure 2: The GDP growth (annual %) values collected between the years 2011 and 2019.
Figure 3: A direct comparison of the GDP (constant 2010 US$) and GDP growth (annual %) over the years 2011 and 2019, graphed by the World Bank Group.

3. Control of Corruption

by Peter Smith

Definition: Control of corruption captures perceptions of the extent to which public power is exercised for private gain, including both petty and grand forms of corruption, as well as “capture” of the state by elites and private interests. This table lists the individual variables from each data source used to construct this measure in the Worldwide Governance Indicators

India’s Control of Corruption, over the last nineteen years, has stayed relatively the same, ranging from the mid-thirtieth percentile to the mid fortieth percentile. No drastic changes are visible from the last nineteen years. India is in the bottom half of the world’s nations in terms of ability to control corruption.

4. Rule of Law

by Everyone

Rule of law captures perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police, and the courts, as well as the likelihood of crime and violence. This table lists the individual variables from each data source used to construct this measure in the Worldwide Governance Indicators.

5. Terrorism

by Grace Johnson

Terrorism is defined as the unlawful use of force and violence against people or property in order to intimidate or coerce, especially for political purposes. This portion provides data that displays the highs and lows of terrorism in India. The fist graph displays the number of incidents of terrorism that occurred in India over time. The second graph demonstrates the number of incidents of terrorism  starting in 2000 to 2018; it shows peaks of attacks in 2009, 2014 and 2016. The third graph shows what institutions or people were targeted during terrorist attacks in India from 2000 to 2018. This graph displays that the police, private citizens, the Indian government, and business were the top four focuses of terrorist attacks from 2000 to 2018.

Graph one: India’s terrorism over time
Graph two: terrorism in India between 2000-2018
Graph three: targets of terrorist attacks in India

https://www.start.umd.edu/gtd/search/Results.aspx?charttype=pie&chart=target&casualties_type=b&casualties_max=&start_yearonly=2000&end_yearonly=2018&dtp2=all&country=92

6. Freedom

by Samantha Hampton

In India, the country has a lot of freedom compared to other countries. In 2019, India had an overall score of 75/100 free. However, in 2020, the score has dropped to 71/100 with political rights being 34/40 and civil liberties as 37/60. The country still remains free in 2020, only it has slightly decreased from the previous year. India does particularly well on guaranteeing civil liberties that includes freedom of expression and freedom of religion through the constitution; however, India does particularly poorly on harassment of journalists and creates religious attacks against non-Hindus under the Prime Minister Narendra Modi and the Hindu nationalist Bharatiya Janata Party. In terms of political rights, India does particularly well on the electoral process through a free and fair election; however, India does particularly poorly on the financial aspects of political parties that will allow the donors to obscure their identities when donating to their desired political party. In terms of civil liberties, India does particularly well on freedom of assembly when protests occur; however, India does particularly poor on allowing free and independent media because the journalists risk harassment, death, and physical violence while trying to do their job.

7. Government Effectiveness

by Jack Miller

Government effectiveness captures perceptions of the quality of public services, the quality of the civil service and the degree of its independence from political pressures, the quality of policy formulation and implementation, and the credibility of the government’s commitment to such policies. This table lists the individual variables from each data source used to construct this measure in the Worldwide Governance Indicators (The World Bank 2020). Comparatively India’s governmental structure has been increasing over the years. The effectiveness of this government ranks relatively well compared to other southeastern countries analyzed along similar lines.

 

Source: https://info.worldbank.org/governance/wgi/Home/Reports

Source: https://info.worldbank.org/governance/wgi/Home/Reports