Can India bail out America from economic crisis Part-2

Indian middle class

The rise of India's aspiring middle class showing in a graphic chart
The rise of India's aspiring middle class showing in a graphic chart

Indian Economy: Fourth largest in the world


American economy is in serious problem. People of America are looking for a bail out. Who can do this and how can? India can bail out America from its present economic crisis and financial problems.

How can India bail out?

I have already discussed Strength of Indian economy (fourth largest in the world in price parity parameter, PPP) in the previous part of the article.

Can India bail out America from present economic crisis?

It is in the best interest of the American citizens to go through the articles to know how to get rid of their economic crisis. Followings are the potentials and opportunities in India that gives a wide angled view of the Indian economy. It describes Para by Para how India can bail out America and rest of the world from present economic crisis.

1. Two hundred fifty million Indian middle class along with many billionaires and millionaires creates a huge and potential market for everyone. The Americans and people of rest of the world can use this market in selling their products and services and bailout them from present economic crisis.

2. Indian citizens save thirty five percent of their annual income and the country has the fifth highest foreign currency reserve in the world. Foreign currency reserve of India is more than the US and most of the European countries. This reserve provides Indian Government, corporations and citizens at large an opportunity to invest all over the world.

3. India has a well regulated and strong banking system. Most of them are well capitalized. Not a single bank or financial institute is failed so far. Indian government need not to come out with a bailout plan for their banks and financial institutes.

It is something unusual in this particular time of economic crisis and financial problem. Most of American and European banks and financial institutes are either collapsed or in financial crisis. Many Asian banks are also in problem. Indian banks provides a safe heaven of investment for the global investors small or big.

The United Bank of India

The United Bank of India building on Hemanta Basu Sarani, Kolkata
The United Bank of India building on Hemanta Basu Sarani, Kolkata | Source

Concerns of President Obama and India


4. Skilled and young workforce of India has the ability to change the destiny of the world. They are well trained and educated. They have shown their abilities in Silicon Valley and in many other sectors in the US.

5. India has world class educational institutes such as Indian Institute of Technology (IIT), Indian Institute of Management (IIM) etc. where costs are moderate in comparison to American, Australian or European institutes. Indian Medical colleges and IT institutes are also doing very good. It is advisable for American students to include India as one of their destinations, particularly when education loans look burdensome.

6. There are many world class hospitals and health care centers in India with state of art facilities. Indian medical professionals are world class. India is also home for Ayurveda, Naturopathy and Yoga. It also excels in alternate therapies e.g. Homeopathy, Yunani, Acupressure and Su-zok. The most fascinating feature is that all these facilities are significantly cheaper.

Is not it a good news for American citizens who have practically lost their health care facilities in their own country? Obama, the President elect, has already expressed his concern about health-care facilities to his citizens. It is worth for him to act with Indian Government in this sector.

Indian agriculture

Describing Indian economy


Some points have been described above to show the capabilities of India in bailing out America and rest of the world from its present economic and financial crisis. Some more are here.

7. India is a leader in agricultural products such as Tea, sugar cane, spices, jute, aromatics and herbs etc. Indian agriculture sector consumes huge quantity of fertilizers, seeds, agro-tools and other equipment. India.India is also producing healthy food from organic farming.

There are many processing industries in India for agricultural products. However, it needs much more. There is a huge potential in processing industries in agricultural sector.

8. India produces more than two hundred million tons of food grains but it has inadequate warehousing facilities. Hence, Americans and entrepreneurs of rest of the world have ample opportunities to develop infrastructure for warehousing. Food processing industries may be another major sector to look at.

9. India produces highest quantity of milk in the world. Hence potential for processing units is enormous.

10. India has signed a nuclear treaty withAmerica and France. It requires a supply amounting to $ 150 B for its energy needs. This can generate huge employment in the US and France. India and America can also join their hands in clean energy sector to fight global warming and climate change.

India has also started generating green collar jobs along with America. Again, America can collaborate with India in the green collar job sector.

11. India has forty five percent market share of global business process outsourcing. Skilled and trained Indian manpower help American corporations to enhance their efficiency and cut cost. It in turn increases their global competitiveness. It is not in the interest of Americato discourage outsourcing.

Farm in Meghalaya, India

 Agricultural farm in Meghalaya, north east state in India  near Shillong growing Mustard
Agricultural farm in Meghalaya, north east state in India near Shillong growing Mustard | Source

Strength: Economy India


12. India is growing at the rate of seven to nine percent per annum. It is to be continued at least at the rate of six to seven percent even in the period of global recession.

13. However, India is lacking far behind the developed nations in physical infrastructure. This is the main drawback of the country. Core sectors are roads, sea-ports and airports; energy, warehousing, laboratories etc. Prime Minister Man Mohan Singh has recently invited $ 500 B foreign investment in this arena. India also needs advanced technologies from the US to develop its industries. Technology is also needed in clean energy field. American corporations may come forward with their expertise in these fields to handle the tasks and be benefited. It can generate enough employment for the common Americans.

14. Sixty percent of total Indian population has to be uplifted to global standards. This marathon task needs huge investments, technological support and continued action. This alone can bring America and rest of the world out of recession.

15. Indian entrepreneurs are opening their offices in cities like New York generating employment to the common Americans.

Above mentioned are just the glimpses and there are many other points worth mention. It is in the best interest of American Government and people to increase bi-lateral co-operation with India. Having this done India can bail out America and the entire globe from present economic crisis and financial problem.

(This hub is published on 13 November 2008).

Which feature of India fascinates you the most?

  • Foreign currency reserve
  • Strong banking system
  • Large economy
See results without voting

Updates


1. Ms. Clinton visited India few days back and urged India to play its role as economic mega power.

2. India has launched its nuclear submarine 'Arihant' on 26 July, 2009, on the occasion of 10th victory day of Kargil war. It is worth mention that only five other nations have nuclear submarines.

Update: November 2011

Indian Prime Minister Dr. Manmohan Singh announced in G-20 summit that India is willing to be part of bailout in Europe.It is worth mention that Greece in EU is facing severe economic crisis and needs a bailout plan for its survival.

Greece is in risk of throwing out from the EU. Credit crisis in Greece has put European Union in severe problem. The whole EU is facing slow down. India can be a part of bailout and solution.

Credit crunch in America hampering jobs...

Narendra Modi will address from Madison square in America


Narendra Modi, newly elected Indian Prime Minister will visit America soon ans address American people from famous Madison square in New York. It will be the first time that a head of foreign nation will speak to the US people from such renowned place. It is worth noted that the US had denied visa for Modi just few years back and now is ready to welcome him with red carpet.

Narendra Modi is emerging as a global leader and a Statesman from the very first day of his oath as Indian Premiere. He is. trying to present India as a brand and showing real strength of India presented in this article.

He has already visited neighboring countries likes of Bhutan and Nepal, attended BRICS summit in Brazil and lastly visited Japan successfully American foreign and defense secretaries have already visited India in short regime of Modi government.

Australian Prime Minister recently visited India and has signed a bi-lateral nuclear treaty for supplying uranium for Indian nuclear power projects.

Updated on September 7, 2014

State Bank of India in US

Some earlier comments


Two hubs are merged here. there are some comments those were in the previous page. I am reproducing those for a purpose to keep history.

Earnest hub commented:

1. I agree that you put a very strong case for America and other countries to grow markets and exchange goods and services with India.

Your hub certainly points out the solid base that India has to work from, which is becoming a unique position with China needing to dig its way out with controlled growth now that unemployment figures are rising rapidly

2. Jyoti Kothari Said:

Dear earnest,

Thanks for commenting on my hubs. China is a leader in manufacturing sector and India in service sector. China produced more blue collars and India white. Percentage of highly educated people is much more than China in India that gives it competitive advantage over China.

People normally forget that America has given China status of most favored nation. That is behind China's growth. India has grown despite sanctions over India imposed by the US in 1998. The US had to withdraw its sanction because nothing happened to India. On the contrary the US was losing business with India.

India is a democracy and therefore, growth seems slower than that of China. However, I hope, It will surpass growth rate of China with in few years.

Thanks again for valuable advice.

Johnson Blake says:
3 months ago

I am disagreeing with some pf the points. It is difficult to grow at the rate of 6-7 % in this time. Global recession will affect Indian economy badly.

Johnson

Mahesh Manjarekar says:

Hi,

India has the capacity to beat any country. It can also potentially bail out America and the world from economic crisis.

Mahesh

Jyoti Kothari says:

Hi Mahesh,

Yes, India can bail out America and rest of the world from present economic crisis if given opportunity. If President Obama continues ban on out sourcing then it will be difficult.

Jyoti Kothari



India and America

show route and directions
A markerIndia -
India
[get directions]

India, the fourth largest economy in the world can bailout America and rest of the world from economic crisis and financial problems.

B markerAmerica -
United States
[get directions]

America, the US are in economic crisis and needs bailout. India can bailout America....

More by this Author


Comments 29 comments

JYOTI KOTHARI profile image

JYOTI KOTHARI 19 months ago from Jaipur Author

Hi Pramod,

Thanks for commenting.


JYOTI KOTHARI profile image

JYOTI KOTHARI 19 months ago from Jaipur Author

Hi Pramod,

Pl start writing in Hubpages. If you need my help I will do for your first hub. Mail: jyoti_kothari@yahoo.com


pramodgokhale profile image

pramodgokhale 19 months ago from Pune( India)

Sir,

Bail out looks idiomatic but America's foreign policy and economic cooperation is clueless.

US had funded and armed dictators across the globe and cold war time their arms industry flourished and smart weapons had been tested on developing nations and communities.

To my knowledge , USA behaves as big brother when they deal other country except Russia. When we deal with them we should prepare what may come.

Our leftists and so called socialists protest loudly against agreement, their memories are short.

After China war 1962 , John Kennedy dispatched arms and air crafts to India to strengthen our defenses plus Germany and UK also supplied weapons to us, yes they made money .

In 1970 USSR supplied weapons to Pakistan to cool down as they claimed cold war.!!

US invites global talent and invested them in R & D and reaped benefits and market advanced products in the world.

We are not Anglo-Saxon by race so Europe and Japan are always there allies.

Indians have global ambitions , so nothing is wrong there, we need

lead third world and rekindle Non Aligned Movement because we are capable for funding and trading in volumes.

Bail-out for stipulated period can be considered.

pramodgokhale


pramodgokhale profile image

pramodgokhale 19 months ago from Pune( India)

Sir,

I appreciate your call but i tried to write but was rejected by HUB pages. Please guide what to do? I need someone to edit my articles.

I will dispatch my written articles on international issues please produce your Email address then i can send .

pramodgokhale


JYOTI KOTHARI profile image

JYOTI KOTHARI 19 months ago from Jaipur Author

Thanks Pramod for commenting. This article is written in 2008 when the US was in recession. This may be seen at that context.


pramodgokhale profile image

pramodgokhale 19 months ago from Pune( India)

Sir,

India is growing and recent visit of Obama may be a game changer. Democratic India is closer to US but our system is slow and not efficient like China.

Our planned economy and target oriented plans is a history and we have open economy and under Modi , we are more practical and pragmatic.

We have burden of subsidies and welfare schemes and we can not close.Ours is multi party democracy and mixed economy so it makes more confusion and low performance.

When we say bail out of US then national interest of India to be protected as US. There are many unresolved with US but within a decade we must get benefit of US cooperation as in defense, technology transfers, joint production of industrial goods.

Our problem is that we can't join their camp

Useful interdependence can be continued .

pramodgokhale


Vipul 4 years ago

Hi,

I have never read such thought provoking article about American and Indian economy. America is in crisis, serious economic crisis. This is well researched article. India is growing in rapid pace of 7 to 9 percent and has capacity to bailout America.

Rest of the world can also be benefited from India and Indian economic growth.


divisha 5 years ago

I completely agree with the fact that India is no doubt growing at an impressive rate but growing corruption in India is also a big concern. why our planning commission not taking measures to uproot corruption completely while they are aware of the possible measures that will surely combat this problem.


JYOTI KOTHARI profile image

JYOTI KOTHARI 7 years ago from Jaipur Author

Dear Vishal,

No doubt. Even Ms. Clinton agreed to that while visiting India last week.

Thanks for commenting.

Jyoti Kothari


Vishal Agrawal 7 years ago

Jyoti ji,

I deeply believe that India has huge potential to be world leader in economy.

extremely informative article.


infocity profile image

infocity 7 years ago from United States

Good Work Sir g, can u please post articles like these on expertscolumn.com too..


JYOTI KOTHARI profile image

JYOTI KOTHARI 7 years ago from Jaipur Author

Hi Mary,

Yes. India is a democratic country and it is continuing as largest democracy in the globe. China is not democratic and their growth is largely coming with suppresion of their own people.

you can refer to hub "China: Present and Future".

Jyoti Kothari


Mary 7 years ago

Yes, I agree.

india can bail out america and rest of the world. It has acheved tremendous growth in last decades. Its growth is more important than China because India has achieved with in democratic way. growth of China is by suppressing ite own people.

Mary


JYOTI KOTHARI profile image

JYOTI KOTHARI 7 years ago from Jaipur Author

hi Ontheway,

thanks for your comments.

Jyoti Kothari


JYOTI KOTHARI profile image

JYOTI KOTHARI 7 years ago from Jaipur Author

Hi Josephine,

Thanks for commenting on the hub. India was world leader in knowledge, trade and power for centuries. However british conquerred India and wrote its history as they liked. India is not under developed but it is a ruine of past glory. indian systems were destroyed by the then rulers , the British.

western people have been progressing since last fouir to five hundred years and have accumulated enormous wealth. that is the reason of their ego. However India has started getting its ground after independence in 1947.

Now it is in a much better stage and have capabilities to bail out America and rest of the world from economic and financial crisis.

Thanks for giving some hub love.

Jyoti Kothari


ontheway profile image

ontheway 7 years ago

India bail out America and the world from economic crisis

well written, I come on , welcome to my hub


Josephine 7 years ago

Hi Jyoti,

it is difficult to digest that an under developed country like India can bail out wealthier west. You have strongly advocated India's position that compells me to think about.

You may be right and we westerns are still living with our bias.

Thanks for writing off-topic and thought provoking articles. I rated it up!

Josephine


JYOTI KOTHARI profile image

JYOTI KOTHARI 7 years ago from Jaipur Author

Hi linjingjing,

Thanks for your comment because you have believed on this creative idea.

Jyoti Kothari


linjingjing profile image

linjingjing 7 years ago

India bail out America and the world from economic crisis

Very creative


JYOTI KOTHARI profile image

JYOTI KOTHARI 7 years ago from Jaipur Author

Hi,

Indians are doing extremely well in Us, canada and other countries. Yes, Indians in Us are one of the richest communities there.

Jyoti Kothari


Khushwant Singh 7 years ago

Hi Jyoti,

Yes, india can bail out America. Some of my relatives and friends live in US and Canada. They are doing very well there. They are richer than the native americans and canadians because they work very hard and save a lot.

Khushwant Singh


JYOTI KOTHARI profile image

JYOTI KOTHARI 7 years ago from Jaipur Author

Dear Raju,

I will check the same in net. I will love to read this. It is not promoting India but it is true potential of India.

Jyoti Kothari


Dr. Raju M. Mathew 7 years ago

Just now I have gone through your work. You are promoting India. It is really good.

On Great Depression II of 2009, I have some works : 'Strategy for Survival and Growth in the Age of the Great Depression II' and 'Saving America from Further Crisis in the Age of the Great Depression II' that can be found in the net if a search is made under 'Dr. Raju M. Mathew' or "Great Depression II'. My strong Indian background helped to prepare them.


Johnson Blake 7 years ago

This is again a hub with difference. Generally people take India lightly in the economic field. Most of the Americans think it a poor economy. However, this hub describes Indian economy as 4th largest in The world. This is unbelievable. If this is true, It may bail out America.

The most, Indian banking system is strong and it attracts in this particular time of banking collapse.

Johnson


JYOTI KOTHARI profile image

JYOTI KOTHARI 7 years ago from Jaipur Author

The beauty of Indian education system is that it makes all round performers. People study in a narrow range in many of the developed countries. They are super specialists in their domains but lacks common sense many times.

Common sense and general knowledge of Indians are very good in general.

I do not know much about Australlia. Why do you not put some hub about business environment in Australlia?

I may think of visiting Australlia if I get some business oppurtunities there. I have a well established gem and jewelry business in India.

vardhamangems.webs.com


earnestshub profile image

earnestshub 7 years ago from Melbourne Australia

I do hope India can co-operate with Pakistan after this terrible shock attack on India first Jyoti. If war is kept out of the configuration there may be great hope from India for the world. I have seen some of the talented Indian youth working here in Australia. They seem well developed not only at their chosen professions but also as well rounded and confident young people in general.


JYOTI KOTHARI profile image

JYOTI KOTHARI 7 years ago from Jaipur Author

Vrajvala,

Indians are culturally conservative in spending. they know how to save and convert them into good investments, that is how they survive.


Lgali profile image

Lgali 7 years ago

very nicely done I really beleive this India can rule the world if corruption is gone..


vrajavala profile image

vrajavala 7 years ago from Port St. Lucie

It has been my experience that the Indian people are veery conservative, and, rather than spending more than they have, are ready to make concessions

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