- Business and Employment
Can India bail out America from economic crisis Part-2
Indian middle class
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.
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
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.
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
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?
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:
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.
Mahesh Manjarekar says:
India has the capacity to beat any country. It can also potentially bail out America and the world from economic crisis.
Jyoti Kothari says:
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.
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