By Rajesh Kumar
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Extra resources for Doing Business in India
The global Indian diaspora is estimated to be about 25 million people and their importance seems to be on the rise. What are the implications of the potential emergence of India as an economic superpower for foreign investors seeking to do business in this country? This is the central theme that we attempt to address here. Although the resurgence of India as an economic power is a view that is now widely held by scholars and business people, India is still a country in the process of economic transition.
There are numerous infrastructure bottlenecks in power, transportation, ports, and telecommunications sectors. An infrastructure survey by the World Economic Forum in 1999, ranked India 55 out of 59 in terms of the adequacy of the infrastructure. 24 One gets additional perspective on the nature of the problem by looking at more micro level data. 25 It has also been pointed out that given the unreliability of the power supply more than 70 percent of the Indian firms possess their own generating sets.
The reforms in the telecommunications sector have progressed more smoothly vis-à-vis the power sector. Although much has been accomplished compared with the situation in the early 1990s the pace of movement needs further acceleration. 6 telephone lines per 1,000 people compared with 444 in Korea, 107 in Brazil, and 96 in Mexico. Ten years ago the information technology structure in India was on par with China. However, in 2000, the “teledensity” in China was 112 telephone main lines per 1,000, whereas in India the figure was 32.
Doing Business in India by Rajesh Kumar