1. Country Project - INDIA By Sunita Arora

2. Country Background Demography Population - ~ 1.3 Billion Population - ~ 1.3 Billion Agricultural-based society Agricultural-based society Language – 650 dialects; Hindi–30%; English-2% Language – 650 dialects; Hindi–30%; English-2% Religion – Hindus (81.3%), Muslim (12%), Christians (2.3%), Sikh(1.9%),Other (2.5%). Religion – Hindus (81.3%), Muslim (12%), Christians (2.3%), Sikh(1.9%),Other (2.5%).History Pre-Independence – Conquerors, rulersPre-Independence – Conquerors, rulers Post-independence – Pakistan, domestic issuesPost-independence – Pakistan, domestic issues

3. Culture and Education Co-existence of Individualism and Collectivism Co-existence of Individualism and Collectivism An idealistic bent of mind An idealistic bent of mind Nationalism Nationalism Attitude towards time Attitude towards time Hierarchical Culture Hierarchical Culture Education – hand-in-hand with culture Education – hand-in-hand with culture

4. Hofstede Dimensions Hofstede MAS – 56 versus w. a 51. Hofstede MAS – 56 versus w. a 51. Hofstede UAI – 40 versus w.a 65. Hofstede UAI – 40 versus w.a 65. Hofstede PDI – 77 versus 56.5. Hofstede PDI – 77 versus 56.5. Hofstede IND - More collectivist than individualistic. Hofstede IND - More collectivist than individualistic.

5. Economic History Import Substitution – ‘Swadeshi” movement; wall of protective measures to make imports uncompetitive Import Substitution – ‘Swadeshi” movement; wall of protective measures to make imports uncompetitive Permit Raj – Complex system of licensing and controls, high tariffs and quotas Permit Raj – Complex system of licensing and controls, high tariffs and quotas Planned Development – Industrial Policy Resolution, nationalizing financial sector, save the “sick units” Planned Development – Industrial Policy Resolution, nationalizing financial sector, save the “sick units” Export Policy – Relationship with Soviet Union to achieve export-led growth. Export Policy – Relationship with Soviet Union to achieve export-led growth.

6. Path to Globalization Gradual “Washington Consensus” – Market reform policies, remove import and licensing restrictions, reduction of public sector, allowances to private banksGradual “Washington Consensus” – Market reform policies, remove import and licensing restrictions, reduction of public sector, allowances to private banks Success and Failure of “Consensus” Reform: 1995-2003 – 6% economic growth, slowed once the initial crisis passed.Success and Failure of “Consensus” Reform: 1995-2003 – 6% economic growth, slowed once the initial crisis passed.

7. The Turning Point… Growth of IT Growth of IT Impetus on higher educationImpetus on higher education “Brain drain” now turned to “Brain supply”“Brain drain” now turned to “Brain supply” More than 40% of F500 companies outsourced in 2002More than 40% of F500 companies outsourced in 2002 Software exports and services – 2% of GDP, expected to rise to 7% and make up 30% of Foreign Exchange InflowsSoftware exports and services – 2% of GDP, expected to rise to 7% and make up 30% of Foreign Exchange Inflows Privatization Privatization Ministry of DisinvestmentMinistry of Disinvestment

8. Role of Government in IT Industry Department of Information Technology, Ministry of Communications and Information Technology Department of Information Technology, Ministry of Communications and Information Technology National Taskforce on IT and Software Development National Taskforce on IT and Software Development Intellectual Property Protection Intellectual Property Protection Hi-tech parks Hi-tech parks

9. Why Invest in India? Sixth place among top 10 outsourcing locations. Sixth place among top 10 outsourcing locations. Low-cost, English-speaking and IT- savvy labor force. Low-cost, English-speaking and IT- savvy labor force. Steady GDP growth, improving infrastructure. Steady GDP growth, improving infrastructure. Large market potential. Large market potential. Welcoming social structure. Welcoming social structure.

10. Conclusion India is now the home of technological innovations for almost all leading companies in many industries. India is now the home of technological innovations for almost all leading companies in many industries. India looses ~ 100,000 professionals to the US but still has ~ 1 million students enrolled in technical programs per year. India looses ~ 100,000 professionals to the US but still has ~ 1 million students enrolled in technical programs per year. India that is on the move – an India that now rapidly advances to prosperity. It is about an India that banishes poverty and builds on its great resource base, the strength of its human capital and the immense reservoir of its knowledge. India that is on the move – an India that now rapidly advances to prosperity. It is about an India that banishes poverty and builds on its great resource base, the strength of its human capital and the immense reservoir of its knowledge.

11. Questions?

12. Thank you for your patience and attention!