Revision Note
Test Yourself
Author
Bridgette
Expertise
Geography Lead
Location & Significance
Site and situation
- Located to the north of the equator
- Most of India is a peninsula with water on three sides
- It has a diverse landscape with mountains, deserts and plains
- India is located in Asia between the Arabian Sea and the Bay of Bengal
- It has borders with six countries - Bangladesh, Nepal, Myanmar, Pakistan, China and Bhutan
Significance
- India is the seventh largest country in the world
- It is a rapidly developing nation
- Currently the fifth largest economy in the world (overtaking the UK in Sept 2022)
- Predictions suggest it will be the second largest economy in the world by 2050
- Located between the Middle East and South East Asia it has access to both:
- Customers
- Labour
Political, Social, Cultural & Environmental Context
India's Political, Social, Cultural and Environmental Context
Context | Examples |
Political |
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Social |
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Cultural |
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Environmental |
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Key Economic Trends
Gross Domestic Product (GDP)
- In 2021 GDP was US$3.176 trillion
- GDP per capita was US$2,256
- Since 1990 there has been a 500% increase in GDP
India's GDP per capita
- Annual growth of the Indian economy is approximately 8.7%
Gross National Income (GNI)
- India has the seventh highest GNI in the world
- The GNI per capita was US$2,320 in 2022
Economic sectors
- The contribution of economic sectors to GDP has changed from being dominated by agriculture to being dominated by service activities
Contribution of the economic sectors to GDP
- Agricultural is remains the largest form of employment but is decreasing from 75% to just over 50% in 2010
- By 2019 decreased to 43%
Economic sectors - employment %
Trade
- Imports and exports have both increased since 1990 by almost 20 times
- Imports (2019) US$478 billion
- Exports (2022) US$323billion
- Main exports:
- Petroleum products, jewellery, chemicals, pharmaceuticals, machinery, clothes
- Main imports
- Petroleum, gold/silver, electronic goods, pearls and precious stones
- Imports mainly come from:
- China, USA, UAE, Saudi Arabia and Iraq
- Exports
- USA, UAE, China, Hong Kong and Singapore
Foreign Direct Investment (FDI)
- Foreign Direct Investment (FDI) has rapidly increased since 1990
- In 2021 India's total FDI inflows were $45 billion
- Investments in the automobile industry, electrical machinery and textiles have increased significantly
- The main countries investing in India are:
- Singapore (27%)
- USA (18%)
- Mauritius (16%)
- Netherlands (8%)
- In 2022 Google announced a US$1 billion investment in Bharti Airtel an Indian telecommunications company
- In 2020 Facebook invested $5.7 billion in Reliance Bio an Indian telecommunications company
- India firms also invested in other countries $17.24 billion
- India is the second largest FDI contributor in the UK
- Mastek has invested £79 million to create 1600 jobs in the UK
- TVS Motors have invested £100 million in Norton Motorcycle
The Role of Globalisation
- Globalisation has led to increasing investment by other countries in India (FDI)
Infrastructure
- Improvements in transport and communications infrastructure
- India has 24 International Airports and 13 major ports (212 non-major)
- India has the second largest telecommunications network in the world (telephone users) and internet users
Transnational Corporations (TNCs)
- Attracted to India due to a workforce which is:
- Skilled, low cost
- Mainly English speaking
- Well educated
Government policy
- Since 1991 the government has taken less control over what industries produce -economic liberalisation
- They have reduced import tariffs to encourage imports
- Special Economic Zones have been set up to reduce taxes for TNCs
Aid
- India receives Official Development Assistance (ODA) which is multilateral aid
- In 2017 India received US$4,240.34 million with more than 50% of being donated by Japan
- Aid is focussed on poorest states in India such as Madhya Pradesh
- In the past India was the recipient of large amounts of tied aid
- A new policy announced in 2003 stated that they would no longer accept tied aid except from certain countries including UK, USA and Germany
- India is now a donor of aid as well as a recipient
Education
- In 2009 primary education became free
- In 2020 a National Education Policy was launched to improve equality and overall education
- Education gives the population more skills increasing their employability
Impacts
- Encourages the positive multiplier effect
Multiplier effect
- Improves trade links with other countries
- Increases investment in education/healthcare/infrastructure
Worked example
Explain one way in which outsourcing affects economic development in an emerging country.
(3 marks)
Answer:
- Capital investment by TNCs for infrastructure (electricity / rail / telephone) (1), encourages multiplier effects as other
companies co-locate (1)creating further job opportunities (1) - Increased manufacturing / production (1) could grow bilateral trade links with surrounding countries (1) providing income for government spending (health / education etc) (1)
- Training and education upskills the labour force making them more employable (1) over time demand higher wages(1)which might in turn raise consumer spending power (1)
Rapid Economic Growth & Demographic Change
- Rapid economic growth has led to significant change in the demographic characteristics of India
- Death rates and infant mortality rates have fallen
Population pyramid for India 1960
Population pyramid for India 2022
- Life expectancy has increased from 45 years in 1960 to 70 years in 2021
- Diets have improved
- Healthcare is more available and has improved
- Water quality and access has improved
- Fertility rates are falling
- Women are more educated
- More women work
- Greater access to contraception
- Education about family planning
Urbanisation
- In 2021 about 34% of India's population live in urban areas
- This amounts to 475 million people
- Urbanisation is increasing by approximately 2% a year
- Approximately 20 million people migrate from rural to urban areas each year in India
Regional differences
- There are stark regional differences in India
Table Showing Differences Between Delhi and Bihar
Urban Core - Delhi | Rural Periphery - Bihar |
Higher life expectancy (72.9 years) Higher literacy rate (86.21%) Higher GDP (US$7,500) Lower death rate (4.1 per 1000) Lower fertility rate (1.6) | Lower life expectancy (68.7 years) Lower literacy rate (69.83%) Lower GDP (US$630) Higher death rate (5.4 per 1000) Higher fertility rate (3.0) |
- Delhi has a much higher population density
- People move to Delhi for work (pull factor) from rural areas
- Bihar suffers recurring floods which hampers development (push factor)
- Many people from Bihar migrated to other areas reducing the working population in Bihar
- Poor infrastructure in Bihar makes it difficult to attract investment
Worked example
For a named emerging country, explain two socio-economic differences between regions
(4 marks)
- There are a number of socio-economic differences which can be identified the maximum you will get for identifying these is 2 marks
- The second set of 2 marks is awarded for explaining the differences
Answer:
- Possible socio-economic differences -Population density and rates of growth, average income levels, ethnic differences, migration history and trends, levels of economic growth and structure, health and education provision (2 marks)
- Reasons given to explain the differences – geographic location/isolation and the ease of historical trade, differences in land fertility and topography, the development of industry and the cycle of growth idea, a flow of skilled labour to the core, government policies (2 marks)
- In India, Maharashtra has a higher population density than Bihar (1)
Mumbai is in Maharashtra which attracts migrants from rural areas for work (1) - Shanghai has a higher population density than Gansu (1) Shanghai’s coastal location has seen it grow as an important port attracting workers (1)
Social Impacts of Economic Development
Positive impacts
- Equality between genders has improved as more women have:
- Access to education and increased literacy rates - though still lower than males
- Improved family planning and access to contraception
- Increased work/career opportunities
- Health has improved in all age groups
- Average incomes have increased
India's per capita income
Negative impacts
- Children in rural areas are more likely to work
- Migration of younger people leaves older population in rural areas
- Investment in rural areas is much lower
- Development of illegal settlements around cities
- Lack clean water supply
- Increased spread of disease
- Poor quality housing
Environmental Impacts of Development
Air pollution - causes
- In 2019 21 of the 30 most polluted cities in the world were in India
- Air pollution levels are below the national standards in 132 cities caused by:
- Increased car ownership - New Delhi has over 10 million vehicles
- Fossil fuel power stations - increased burning of fuels due to increased energy demands
- Factories - there are between 3-4,000 factories in New Delhi
- Burning of stubble
- Construction dust
- Cooking fuel - over 100 million people rely on biomass for cooking
Effects
- It is estimated that life expectancy is on average 5 years lower due to air pollution
- In 2019 over 1.5 million people died due to air pollution
- Increased levels of asthma, lung diseases and cardiac problems
- Contributes greenhouse gases leading to global climate change
India's CO2emissions
Water pollution - causes
- Only 30% of all sewage in India is treated
- The Indus and the Ganges are in the ten most polluted rivers in the world
- Of the remaining rivers in India 33% are moderately or severely polluted
- The use of pesticides in agriculture is common with chemicals, such as DDT, which are banned in many countries, still being used in India
- Waste water from industry contains many toxic metals such as mercury, lead and arsenic which are found in both surface and groundwater
- Approximately 70% of surface water is unfit for human consumption
Effects
- Damaging to aquatic life
- Increases in liver and kidney disease, gastric cancers and birth defects
- Decreases crop yields and quality
Land pollution - causes
- Increasing population leads to more waste
- There are more than 3,000 landfills across India
- Ghazipur is the largest in Delhi at 65 meters high
- An average of 2.01 billion tonnes of waste is generated each year
- About 90% of waste goes to landfill
Effects
- Increased methane emissions
- Leaching of toxins into ground and surface water
- Fires - in March 2022 Ghazipur caught fire increasing air pollution
Worked example
Explain two negative impacts of the rapid economic development of an emerging country on different age groups
(4 marks)
Answer:
- Air pollution (1) leads to breathing problems amongst the elderly / young people (1)
- Often there are not enough jobs leading to unemployment for young people (1) as a consequence of rapid rural to urban migration (1)
- Rapid rural to urban migration(1) leads to an ageing population in rural areas who have no-one to look after them (1)
- TNCs in emerging countries are known to employ young children resulting in them not attending school(1) and their education suffering as a consequence(1)
- Rural to urban migration (1) leads to an inactive ageing population in rural areas who are often economically inactive (1)
Geopolitical Influence
- India's geopolitical influence has increased over the last 40 years
- It has increasing influence in theAssociation of Southeast Asian Nations (ASEAN)
- It is a member of a number of internationalorganisations including:
- BRICS (Brazil, Russia, India, China and Singapore)
- G20 - intergovernmental forum which addresses issues related to the global economy
- UN Security council
- World Bank
- According to the International Monetary Fund (IMF) India is responsible for 15% of global growth
Relationship with EU and USA
- India's relationship with the USA and the EU is increasing:
- The EU is India's third largest trading partner
- In 1994 EU-India Cooperation Agreement was signed
- Imports and exports to the EU are balanced (exports €46.2bn, imports €41.9bn)
- India exports more (US$49.7bn) to the USA than they import from the USA (US$26.6bn)
Other political issues
- In 1947 the partitioning of India and Pakistan led to social unrest, one million deaths and the displacement of 15 million people
- There remain tensions between India and Pakistan
- It impacted on development and still affects trade with other countries such as China
Costs & Benefits of Changing International Relations
Costs and Benefits of Changing International Relations
Costs | Benefits |
Increased pressure to reduce greenhouse gas emissions - this may hinder future development | Economic growth leads to greater investment in services improving healthcare, education and infrastructure |
To attract TNCs India has low tax for these companies which impacts on investment in services | Trade increases with countries around the world |
Increased reliance on TNCs | Wages increase improving average quality of life |
Lack of regulations can have environmental consequences | India now provides aid to other countries |
Increased military spending can cause tensions in the region | Increased spending on defence/military which increases the country's security |
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