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    which public / private partnership will become not one of the options

    but the very condition for survival.

    Analyzing E-Commerce for Development : -

    E-commerce is spreading rapidly. Worldwide, more than

    US$1 trillion worth of goods and services are likely to be traded

    electronically by 2003, covering b2c (business to consumer) and the

    far larger b2b (business to business). In the North, impacts on both

    business and trade have been uneven but rapid, particularly in

    certain sectors. Possibilities exist for both existing enterprises and

    new entrants: new supply-chain models are emerging around bothdisintermediation and reintermediation of existing firms (Markus

    2000).

    In the South also e-commerce is present and expanding,

    albeit from a far smaller base. In the short-term, international trade

    will be the main locus for development of e-commerce, with a model

    as shown in Figure 1.

    Figure 1: Conceptual Model of E-Commerce and International Trade

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    * Northern model key growth areas; potential disintermediation

    opportunities

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    Note: South exchanges/flows can be local, national or international

    (South-South)

    Identifiable opportunities already present include:

    sb2nc (Southern business to Northern consumer): for

    example in tourism and in social trading portals (such as

    PEOPLink).

    sb2nb (Southern business to Northern business): for

    example the multi-billion dollar trade in software from India that is

    increasingly ICT-mediated, and other intermediated trade (e.g.

    UNCTAD Global Trade Point). South-South e-commerce links arealso emerging which may present a key opportunity growth area.

    Existing intra-country opportunities include:

    sb2sc (Southern business to Southern consumer): for

    example, rediff.com in India

    It must be recognized that the principal opportunities liefor large, established enterprises and for b2b models. Nevertheless,

    there will be some opportunities for Southern small and medium

    enterprises as producers. These enterprises can accrue the e-

    commerce benefits of reduced costs and increased revenues

    particularly around b2b models. However opportunities for the

    majority of poor women and men to directly use e-commerce as

    consumers are currently limited (Networked Intelligence 2000).

    In analyzing the impact of e-commerce on development,

    these potential opportunities and benefits must be gauged against a

    considerable threat posed by e-commerce. The threat exists in two

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    forms, the first being that barriers to e-commerce entry are

    considerable for Southern businesses and are found at the micro-level

    of individual enterprises and at the macro-level of national

    infrastructure and policy. Enterprise support activities and

    national/global policy making in the South must become betterinformed of the new capacities that are required (Singh 1999). The

    second threat is that e-commerce will reverse import substitution

    (e.g. replacing sb2sc with nb2sc) more than it will open export

    opportunities. Poor countries must be alive to this threat just as to

    the opportunities it provides for Southern consumers. Opportunities

    also exist for Southern business for sales and distribution. There are

    already suggestions from India that e-commerce to Southern

    consumers may be less disintermediated than Northern models would

    suggest.

    E-commerce presents a new model for trade and business.

    Diffusion of this new model will not be as instantaneous as the

    'hypesters' predict. Nevertheless, entrepreneurs, enterprise supportpractitioners and policy makers in the South must be made aware of

    the implications of this new model. They must understand how to

    encourage development of e-commerce in ways that will optimize

    beneficial effects and minimize adverse ones.

    Some of the key questions that remain to be answered

    about e-commerce for development include the following:

    What is the likely impact of e-commerce on DCs? What are the main beneficial opportunities for application of e-

    commerce for DCs?

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    Which enterprises and which sectors will be best placed to take

    advantage of e-commerce? What package of policy and enterprise pre-conditions must be in

    place for this beneficial application of e-commerce? How can this 'e-commerce package' best be put in place in DCs? What are the main threats and negative effects relating to

    application of e-commerce in DCs? How can these best be addressed or mitigated?

    From these questions, three stands of analysis can be drawn.

    i. Impact Strand: Impact Analysis of E-commerce :-

    E-commerce is generally presented in very positive terms

    but, along with the potential benefits, come potential problems for

    DCs. Understanding the impact of e-commerce means viewing

    impacts from two perspectives:

    Top-down, from an economic analysis of global trade and

    the alterations to models of global trade that e-commerce is likely to

    bring throughreductions in transaction and other costs.

    Bottom-up, from the experiences of individual enterprises

    using SWOT analysis of e-commerce in relation to Southern

    enterprises, and business analysis of those enterprises pointing to

    relevant business models, strategies and trajectories.

    ii. Capacity Strand: Support for E-commerce in

    Enterprises :-

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    If e-commerce is to be taken up by enterprises in DCs, it

    will require a number of underlying capacities to be present. An

    understanding of these capacities is therefore required. It may be so

    that enterprises themselves and also the market can supply some of

    these capacities. However in other cases, there may be a case forpromotional interventions at a national or support agency level.

    Likely areas for support include skill development, facilitation of

    market access, infrastructure deployment (e.g. telecentres), and

    promotion of e-procurement within the local NGO, government and

    business community.

    It is important that capacity building efforts recognize and

    support the 'stepping stones' to e-commerce. From this, it emerges

    that behind the limited picture of full e-commerce activity, there is a

    much broader picture of precursor e-commerce activity in the South,

    as shown in Figure 2.

    Figure 2: Stepping-Stones to E-commerce in Development

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    iii. Policy Strand: National/International e-commerce policy :-

    Concept papers and the UN Commission on International

    Trade Laws model law on e-commerce provide a generic

    understanding of some of the policy issues raised by e-commerce.Relevant areas include trade (tariffs, intellectual property rights,

    market access), infrastructure (telecom, human, transport), and

    business (contract law, enterprise development).

    Policy makers in the South do not face the issue of whether

    or not to support e-commerce: if e-commerce is not supported, e-

    commerce-based foreign businesses will poach markets at home andoverseas. The issue is how best to support e-commerce.

    References :-

    Markus, L. (2000) E-markets and E-commerce, paper

    presented for Manchester Information Systems Seminar series,

    University of Manchester, 12 July.

    Networked Intelligence (2000) Briefing Kit on E-commerce

    for Micro and Small Enterprises in Africa, Toronto, Canada.

    Singh, D. (1999) Electronic Commerce: Issues for the

    South, South Centre, Geneva, Switzerland.Richard Heeks

    IDPM, University of Manchester, UK

    3G Reforms: Policy and Regulatory Implications :-

    mailto:[email protected]:[email protected]:[email protected]
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    Centre for Telecom Policy Studies (CTPS)

    Indian Institute of Management (IIM), Ahmedabad

    October 13-14, 2000

    The annual workshop of the CTPS provides a forum for

    policy makers, academicians and industry professionals to meet,

    reflect and deliberate on anticipated developments. Like the previous

    annual workshops, this workshop on 3rd Generation (3G) Reforms:

    Policy and Regulatory Implications provided an opportunity to discuss

    policy issues that had emerged during the last year, and plan future

    policy options.

    This year's workshop began with Shyamal Ghosh,

    Secretary, Department of Telecommunications, presenting an

    overview of the telecom industry dynamics and the issues confronting

    the policy makers. The key issues brought out by him were

    technological convergence and universal service.

    N. Vittal, Central Vigilance Commissioner, Government of

    India outlined the shortcomings in the current policy regarding

    various technology options and also put forth some suggestions for

    expanding rural telecommunication services. Suggestions included

    use of Railway property and a policy tailored for rural India, much

    different from the policy for urban India.

    R. R. N. Prasad, Member, Telecom Regulatory Authority of

    India (TRAI), analyzed the issues confronting the regulator in the

    convergence era. The issues included costing of long distance calls in

    data networks, interconnection between different networks and

    ensuring quality of service.

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    N. R. Mokhariwale, Member, Telecom Commission, India

    described the services provided by the erstwhile Department of

    Telecom Services in India now the Bharat Sanchar Nigam Ltd. He

    presented a chronological index of various developments in the

    Indian telecom sector including opening up of various services tocompetition. The presentation also highlighted the problems faced by

    the former monopoly in this competitive era.

    In the session titled Organizational Transformation:

    Responding to Policy and Regulatory Changes; Rakesh Basant and

    Pankaj Chandra of IIMA shared the results of their survey on

    organizational practices adopted by various telecom equipment

    manufacturers to face the challenge of competition. The data

    presented included nature of alliances and spending on Research and

    Development.

    K. N. Gupta, Executive Director, Centre for Development of

    Telematics (C-DOT), summarized the role played by C-DOT in

    expanding telecom services in India. He also highlighted the effect of

    C-DOT technology deployment in development of electronic

    manufacturing capability in India. The achievements conveyed by him

    include annual deployment of 4.5 million C-DOT lines per year and

    also development of 7000 vendors to produce various components for

    which no capability existed previously.

    Bhaskar Ramamurthi of the Indian Institute of Technology,

    Chennai, put across the difficulties in commercializing new telecom

    technologies developed by Indian laboratories: new products not

    being the priority for companies; lack of interest on the part of

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    licensees to do additional work to commercialize technologies; and

    lack of vendor financing provided by multinational companies.

    In the same session, Air Commodore Motial, former

    Chairman of the ITI Ltd. traced the steps taken to transform theformer monopoly player into a competitive organization. Some of the

    measures implemented by ITI include re-training of manpower,

    improving manufacturing skills, and re-focussing the company as a

    total solution provider and turnkey solution implementer.

    G Venkatesh of Silicon Automation Services (SAS) Ltd.

    showcased the role of small technology boutiques in the changingtechnological environment. The work done by SAS includes

    commercializing technologies and representing India in various

    standard setting bodies.

    Rekha Jain and Pinaki Das of IIMA shared results of their

    study on costing of rural telecom services and the effect of cost of

    rural telecom services on Universal Service Obligation funding. Thecosting results presented included the variations in cost per line for

    various exchange sizes, and cost of local loop for various subscriber

    densities. Policy suggestions were also made.

    Sidharth Sinha of IIMA, looked into the ongoing controversy

    regarding the 'calling party pays' (CPP) regime in cellular mobile

    telephony and its possible effects on traffic. The paper also presentedthe history of the role played by Telecom Regulatory Authority of

    India (TRAI) in implementing the CPP. He also touched upon the

    guiding principles adopted by the TRAI in fixing the tariffs for the

    calling party pays regime.

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    S. D. Saxena of Department of Telecommunications

    pinpointed the effect of tariff rationalization on the current universal

    service provider, Bharat Sanchar Nigam Limited (BSNL). The main

    problems confronted by BSNL are declining revenue and stagnant

    long distance calling revenue despite a considerable reduction in longdistance tariff.

    Anurag Agarwal of ICICI Ltd. discussed issues confronting

    the financier while lending to telecom service companies under the

    current policy environment. He outlined the risks involved in lending

    to a typical telecommunication project and outlined the process of a

    telecom project attaining financial closure.

    R. L. Bharadwaj of Enkay Telecom discussed issues

    regarding IP Telephony.

    Richard Janda, Guy Lachapelle, Joseph Wilson (all from

    McGIll University) and Manikutty of IIMA did a cross-country analysis

    of telecom policy making. The countries studied were Brazil,Argentina and Mexico.

    Rakesh Basant and Ramadesikan G. R. of IIMA discussed

    feasibility of competition in the broadband access markets and its

    implications for policy making. The key result presented was that

    broadband access is going to be through a cable monopoly. The

    implication of this market failure was analyzed.

    Rakesh Basant discussed the various institutional options

    for regulation in the converged era. His main suggestion was to do

    away with the Telecom Dispute Appellate body as all the functions of

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    the appellate body can then be taken care of by the proposed

    competition commission.

    Dann Donnes of McGill University spoke on effects on

    media due to convergence. The issues that affect the media are thescope and diversity of corporate holdings, the tensions between

    telecommunications and broadcasting paradigms in regulation and

    the confusion about the importance of content.

    The workshop concluded with Richard Janda presenting a

    seminal work titled Gaps in Global Governance in

    Telecommunications. Shortcomings in the process of regulation inIndia and suggestions to overcome the gaps in the global

    telecommunication governance using Indian values were discussed.

    Ramadesikan G. R. Indian Institute of Management, Ahmedabad

    "COMMUNICATION DEVELOPMENT : ROLE OF UNESCOIN INDIA :-

    Information is knowledge, and knowledge is power.

    Communication is the process of information dissemination and

    empowering people. Through communication we seek willing

    cooperation of others and build social organisations of varied

    complexities. It is through communication that fire of hatred and

    conflict is fanned and so are done the tender feelings of love,

    cooperation and peace. It is in this context, perhaps, that the United

    Nations Educational Scientific and Cultural Organisation (UNESCO)

    pro-claimed that "since wars begin in the minds of men, it is in the

    'minds of men that defences of peace must be constructed" as its

    preamble and emphasised the need to collaborate in the work of

    mailto:[email protected]:[email protected]:[email protected]
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    advancing the mutual knowledge and understanding of the peoples,

    through all means of mass communication in Article 2 of its

    Constitution.1 As such, information and communication development

    has been one of the major concerns of the United Nations in general

    and UNESCO in particular since their inception.

    The United Nations Conference on Freedom of Information,

    in 1948, called freedom of information, one of the basic freedoms,

    and free and adequate information, the touchstone of all freedoms to

    which the United Nations is dedicated. It was generally believed that

    for free and adequate information in any country there must be

    adequate development of mass 'Fernando Valderrama, A History of

    UNESCO, UNESCO Reference Books, (Paris: UNESCO, 1995).

    communication in that country. Therefore, all countries were and are

    concerned about development of their communication systems. In

    India, such a concern for development of communication system was

    clearly reflected in the country's first Five Year Plan itself.

    Internationally, efforts were made to facilitate the growth

    and development of communication facilities, especially in new and

    emerging countries. In 1958 the UN General Assembly called for a

    "programme of concrete action" to build up press, radio broadcasting,

    film and television facilities in these countries as part of economic

    and social development. To draw up a suitable programme and

    assess the resources required, the General Assembly requestedUNESCO to carry out a fact finding survey. Based upon the UNESCO

    report submitted to UN, the General Assembly, in 1962, unanimously

    adopted a resolution "expressing its concern that the survey

    disclosed 70 per cent of the population of the world lack in adequate

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    information facilities and are thus denied effective enjoyment of the

    right to freedom". The UN General Assembly also emphasised that

    information media have an important part to play in education and in

    economic and social progress generally and that new techniques of

    communication offer special opportunities for acceleration of theeducation process. Consequently, governments, especially of newly

    emerged developing countries, were urged to include in their

    economic development plans adequate provision for development of

    national information media. UNESCO was specially called upon to play

    active role and support programmes and activities leading to

    development of communication systems in the developing countries.

    Development and growth of communication facilities is a

    complex process and their consequences and impact on society are

    multiple. However, the question of communication and the role of

    UNESCO in India could be examined from three distinct, though

    related, stand points of view: viz.

    (i) as a means of bringing about desired social change,

    (ii) the issues and concerns relating to free flow of information,

    (iii) institution building.

    SOCIAL CHANGE:-

    The part that information communication can play, if used

    wisely, to speed and smooth what Julius Nyerere called the `terribleascent' of the developing nations towards social and economic

    change, has been of special interest to all developing countries,

    including India. The contribution that effective communication can

    make to social and economic development is of vital importance to

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    developing countries. Free and adequate information which the UN

    and UNESCO have emphasised is not only a goal in itself, it is also a

    means of bringing about the desired social change.2 It is strongly

    believed and rightly so, that the goal of economic and social

    development, an agenda high on the most developing countries'priorities, can be facilitated by adequate and effective

    communication. Conversely, without adequate and effective

    communication, efforts for economic and social development would

    be seriously hampered.

    In India the significance of communication in equipping

    people with new information and skills and mobilising them for their

    willing participation in various development programmes and

    activities has been well recognised and emphasised in various Five

    Year Plans, the blue print of country's development strategies.

    In the first Five Year Plan itself,

    2 Wilbur Schramm, Mass Media and National Development, The Roleof Information in the Developing Countries, (Paris: UNESCO, 1964).

    the need for understanding and appreciation of the various

    development programmes and schemes by the people was clearly

    underlined. In the subsequent plans, the concern about

    communication with the people even in remote villages has been

    voiced with increasingly greater emphasis and force. Consequently,

    all available methods of communication have been developed and

    strengthened manifold over the years.

    Responding to the UN General Assembly's call to

    strengthen and develop information and communication facilities,

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    UNESCO and the Government of India, launched in 1956 a pilot

    project "Radio Rural. Forum' covering 150 villages in Pune region of

    Maharashtra. Learning from the Canadian experience of Farm Radio

    Forum (1940s) India started radio rural forums on pilot basis with the

    help of UNESCO. It was an experiment in utilising broadcasting tocreate greater awareness among rural people about various improved

    techniques of agriculture production, health and hygiene, and other

    community development programmes. The project followed

    innovative approaches in the form of programme planning and

    presentation, organised listening and discussion and evolving a

    mechanism of feedback from the audiences to ensure greater

    involvement and participation of people as well as making more

    relevant the programme contents of the radio broadcasts.

    The pilot project was a great success and was extended to

    many other areas. In 1969, about 0.2 million radio rural forums were

    operating in different states and union territories. Although,

    subsequently with the advent of transistor revolution the relevance of community

    3 J. C. Mathur, and Paul Neurath, An Indian Experiment in Farm Radio

    Forum (Paris: UNESCO, 1959). radio-sets and radio rural forums

    declined, even so these are still operative in many parts of the

    country as "Charcha mandals" (discussion groups) etc.

    Furthermore, the basic concept and philosophy of radio rural forums

    was adapted and adopted in a decade long programme in 1980s on

    use of radio in support of mother- child health care. Similarly,

    beginning from Literacy Mission, Lucknow in 1960s radio has been

    extensively used in promotion of adult literacy in the country.4 Thus,

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    deriving inspiration from UNESCO-supported pilot project in radio

    rural forum, broadcasting in India, first radio and later television, has

    been playing important role in disseminating information and creating

    awareness about topics and issues relevant to the needs of rural

    masses thereby contributing to the process of development andsocial change in India.

    FREE FLOW OF INFORMATION :-

    The sanctity of freedom of expression and its importance

    to mankind is enshrined in Article 19 of the "Universal Declaration of

    Human Rights" and was reiterated by the UN Conference on Freedomof Information in 1948. As early as 1952, the UN General Assembly

    resolved that "it is essential for a proper development of public

    opinion in under-developed countries that independent domestic

    information enterprises should be given facilities and assistance in

    order that they may be enabled to contribute to the spread of

    information, to the development of native culture and international

    understanding". The UN General Assembly invested UNESCO with the

    responsibility for matters pertaining ID information and freedom

    4 J.S. Yadava, Media and Adult Education: Indian Experience. A study

    conducted for UNESCO (New Delhi: Indian Institute of Mass

    Communication, 1984). of expression and urged UNESCO to evolve a

    concrete plan of action in this respect. As stated earlier, this led to

    undertaking of a survey of communication infrastructural facilities

    available in different countries so that appropriate policy initiative

    and support could be provided to ensure adequate development of

    communication facilities so as to achieve the objective of free flow of

    information.

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    Consequently UNESCO and various U.N. bodies supported

    many programmes in developing countries to build mass media

    infrastructure and institutions.

    "Freedom" and "Freedom of Information" are. one of thoseterms that cast a spell on peoples' mind. People seldom pause to ask

    whose freedom of information to be true, has to be equitable and

    reciprocal.5 However, freedom of information as obtaining, is largely

    freedom of western developed countries. Similarly free flow of

    information is largely one way from western developed countries to

    developing countries. Against this inequitable and largely one way

    flow of information, many developing countries started protesting in

    various international fora as it was being increasingly realised that

    such a situation is detrimental to their economic, political and cultural

    interests. At the 1974 general conference of UNESCO, the third world

    developing countries maintained that the concept of free flow would

    have little meaning until action has been taken to put all nations on a

    free and equal footing in their ability to communicate.

    There was growing realisation among many developing

    countries that the political freedom which they have acquired in

    recent years through great struggle and turmoil would

    5 D. R. Mankekar, Whose Freedom? Whose Order?, (New Delhi:

    Clarion, Delhi, 1981)have little meaning in the absence of economic

    freedom, which is consequently related to information and

    communication situation prevailing in these countries. They realised

    that though they have become free, the economic structure and

    information communication flow structure continue to be broadly-

    along the patterns set up during the colonial period. As such there

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    was a. growing demand from the third world countries for a "new

    international economic order" and also "new world information and

    communication order".

    Consequently there were fierce debates at various levels. The Nonaligned Movement was spearheading the demand for a new

    world information and communication order which was vehemently

    opposed by the western developed countries in the garb of freedom

    of expression and desirability of free flow of information. UNESCO

    became the focal point of this great debate during 1970s and 1980s.

    An intense series of professional, scientific and diplomatic activities

    involving communication in general and international communication

    in particular were initiated at various levels.5 A number of scientific

    research studies were undertaken to marshal facts in support of their

    respective positions. UNESCO appointed McBride Commission to find

    out facts and report. Many "national media policy" documents were

    prepared.

    The great debate on issue of freedom of expression and

    free flow of information versus equitable and balanced flow of

    information became, at times, so intense as to acquire

    confrontational postures threatening the very existence of UNESCO. It

    may be recalled that it is in this context that the United States and

    the Great Britain (along with Singapore)

    6 Kaarle Nordenstreng, The Mass Media Declaration of UNESCO

    (Norwood, N.J.: Ablex Publishing Corporation, 1986). withdrew from

    the UNESCO in 1984. Some of the highlights of this debate can be

    summarised as follows:

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    News and views circulated through mass media have

    significant bearing upon attitudes and actions relating to international

    relations. With the revolution in communication technologies the

    world is shrinking into a global village, making interdependence of

    nationstates imperative for the very survival of human race on thisplanet. Relentless battles for minds are fought through mass media.

    Today, not only sophisticated technologies like satellites and

    computers are utilised to generate enormous news and information

    but subtle techniques are put into operation to colour such news and

    information.

    In the information game the western developed societies

    have tremendous advantage over the developing third world Afro-

    Asian countries. The international flow of news and information is

    largely one way; from developed west to the developing South.

    The imbalance in news flow not only portrays the world

    realities in a distorted fashion but also creates geopolitical

    environment detrimental to the third world's political, economic and

    cultural, interests, There is an increasing realisation that political

    freedom from colonial rule, if not meaningless, is not enough in the.

    context of prevailing world economic and information orders. The

    conduits of western influence and domination established during the

    colonial period are still operational and are even strengthened with

    the advancement of communication revolution.

    7 J. S. Yadava, Politics of News: Third World Perspective (New Delhi:

    Concept Publishing Co., 1984). As such, the developing countries in

    general and the nonaligned in particular have been demanding

    restructuring of the existing patterns of international relations. There

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    is some progress as a consequence of the decade-long debates and

    discussions in international fora. The concept of `new world

    information order' finds wider acceptance today.8 `News Pool' and

    many other third world initiatives and bilateral arrangements have

    come into existence to facilitate the process of greater exchange of news and views about and among themselves.

    It was the nonaligned countries, at their summit in 1973 at

    Algiers, which first asked for a change in the monopoly of information

    by the western media.9 UNESCO gave a call for a New Information

    Order in 1978, five years after the Algiers summit.

    Then onward, of course, UNESCO extended strong support

    to the concept and formulation of the new information and

    communication order. The MacBride Commission,10 appointed by

    UNESCO in 1977, underlined the imbalance in the information flow,

    and the formulation of the resolution on the New Order was

    completed at the General Conference in Belgrade in 1980.

    Some of the western countries have taken the view that

    the New Order is an attempt at legitimising government control of the

    media. Even though there is no reference in any of UNESCO's

    documents justifying, directly or indirectly, a code of conduct or

    censorship.

    8 Hamid Mowlana, Global Information and World Communication,New Frontier in International Relations (New York: Longman, 1986).

    9 Indian Institute of Mass Communication, News Agencies Pool of

    Non- aligned Countries: A Perspective (New Delhi, 1983).

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    10 UNESCO, Many %ices: One World: S. McBride Commission Report

    (Paris, 1982).government control of the media, the campaign against

    UNESCO on this account has continued unabated.

    However, despite all difficulties, UNESCO succeeded inadopting by acclamation a declaration on Mass Media which is of

    great importance. This UNESCO declaration called Declaration. On

    Fundamental Principles concerning the contribution of mass media to

    strengthening the peace and international understanding, to the

    promotion of human rights, and to countering racialism and apartheid

    and incitement to war, is perhaps the most painstakingly negotiated

    text about journalism, mass communication ever adopted in UNESCO.

    By adopting the Mass Media Declaration in which UNESCO played a

    pivotal role, the international community laid down for the first time

    overall guidelines for the mass media. In the words of Amadou-

    Mahtar M'Bow, the then Director-General of UNESCO, the Mass Media

    Declaration is, "a new set of principles which all creators and

    distributors of information. would be able to endorse", "since for thefirst time the international community has at its disposal a body of

    principles and ideals such as can provide guidance for action and

    practice of all those whose hearts are set on justice and peace".*11 It

    also led to the setting up of a special programme, IPDC,-International

    Programme for Development of Communication -- at UNESCO.

    In this great debate on free flow of information India playeda very significant role, and UNESCO India office made valuable

    contribution by supporting some studies of the issue and facilitating a

    number. of debates and seminars that were organised to put the

    whole issue into proper perspective.

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    11*The Mass Media Declaration of UNESCO.

    INSTITUTION BUILDING :-

    Right from the beginning UNESCO has been extending

    support to programmes leading to the development of mass

    communication infrastructure and institutions in India. In 1960, the

    UNESCO India Office extended its support by inviting a team of

    international experts to study communication and development scene

    in India, which led to recommendation and setting up of the National

    Institute - the Indian Institute of Mass Communication (IIMC) at Delhi.

    In the initial stages, UNESCO also provided for two consultants tostart the training programmes at. the Institute. It also provided

    funding of some equipment for journalism/mass communication at

    the Institute. The objective of the IIMC is to train media personnel

    from India and third world countries. Over the years UNESCO has

    supported several training and research programmes at the Institute.

    To build infrastructure facilities, UNESCO also startedNational Institute of Audio Visual Education, which later developed

    and merged with the National Council for Educational Research and

    Training (NCERT). UNESCO also helped to some extent development

    of facilities for news agency journalism, and setting up of the news

    pool at Press Trust of India. Of late there has been greater emphasis

    on informatics and library science. UNESCO has supported many

    programmes and activities relating to development of skills and

    facilities in computers and information science. The IPDC has been

    supporting a number of activities in support of developing

    communication infrastructure in developing countries, including India.

    The Centre for Mass Communication Research at Jamia Milia Islamia

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    got some grants from IPDC. India has also been making financial

    contribution to IPDC, beside supporting strongly its philosophy and

    plan of action.

    :- J.S.Yadava

    The role of Infrastructure in development The Infrastructure provides the base for all the

    developments to be done in the country. Therefore it plays the

    significant role in the development and prosperity of the country, in

    this sector many of the private construction companies are also

    taking the active part in the growth in India.

    Infrastructure and India's rich :-

    It's easy, perhaps too easy, to become pessimistic about

    India's deficient infrastructure. Everything from potholed roads and

    clogged airports to frequent power blackouts and creaking urban

    transportation would appear to be daunting, if not intractable,

    shortcomings.

    Sure, the challenges are humongous, and the pace of their

    resolution is slow. The highly indebted Indian government hasn't the

    wherewithal to make a decisive improvement, which is estimated to

    require additional spending equal to 3.4 percent of gross domestic

    product. That's almost three-quarters of what India is spending on

    transportation, power, water, irrigation, communications and storage

    capacity in a year.

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    The case for glumness is probably overstated.

    Private enterprise is playing an increasingly important role.

    Inadequate public spending is still a huge constraint, yet domestic

    non-state companies are slowly taking the lead in allocating much-

    needed capital to some of India's most overlooked requirements.

    A glance at the latest Forbes magazine list of 40 richest

    Indians should prove that point. Except for the ``knowledge-

    economy'' czars -- the computer-software and generic-drug exporters

    who are mostly sticking to what they know -- almost everyone else on

    that list is investing in infrastructure.

    To cite a few examples:

    -- Mukesh Ambani, the second-richest Indian after steel baron

    Lakshmi Mittal, is building a whole new port city near Mumbai.

    Ambani, the chairman of Reliance Industries Ltd., is also setting up a

    badly needed farm-to-store supply chain in agricultural commodities.

    -- Estranged younger brother Anil Ambani, No. 3 on the Forbes list, is

    building a 7,480 megawatt electricity plant in the northern state of

    Uttar Pradesh. If he can find the gas to fire his plant, he can bring

    cheer to a power-starved New Delhi. The younger Ambani is also

    partnering the city of Mumbai on the first phase of a $4 billion

    suburban railway system.

    -- Three places below Anil Ambani on the wealth list is Sunil Mittal,

    the founder of India's largest mobile-phone service provider. Mittal

    may soon announce a tie-up with a global retailer. Like Mukesh

    Ambani, he has serious plans to create a robust food-supply system in

    the country.

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    -- Tulsi Tanti, the eighth-richest Indian, has made all his money in

    wind energy. As much as 45 percent of the 100,000 megawatts of

    power that India is expected to need in the next five years may be

    supplied by windmills, he says. Another Indian billionaire, Jaiprakash

    Gaur, has similar hopes from hydropower.

    -- Grandhi Rao's GMR Infrastructure Ltd. is modernizing the New Delhi

    airport and constructing a new one in the southern city of Hyderabad.

    Rao is No. 18 on the Forbes list, just ahead of Baba Kalyani, whose

    Nandi Infrastructure Corridor Enterprises Ltd. is building a $500

    million Bangalore-Mysore expressway that will ease the congestion in

    India's software capital.

    The government's biggest headache is acquiring land;

    Mukesh Ambani's plan to build a new city a third as big as Mumbai is

    already dogged by the protests of farmers who feel they are being

    compensated too little for their land.

    For the developer, the political risk is also intimidating. The

    Bangalore-Mysore corridor, approved in 1995, has been stuck in a

    political and legal quagmire. The Indian Supreme Court recently

    threw out the objections of the Karnataka state government, giving

    the final go-ahead to India's first privately built expressway; the

    politicians may yet find a way to torpedo the project. Already, the

    state government has hit back by withdrawing a pollution clearance.

    Setbacks such as these would have been very dispiriting

    10 years ago. Now, they are being shrugged off.

    The private sector in India is awash with money and has a

    huge appetite for risk. Infrastructure-related work is already so brisk

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    that it's creating capacity bottlenecks for machinery suppliers, says

    Ved Prakash Chaturvedi, managing director of Tata Asset

    Management Ltd. in Mumbai.

    ...Supply-side bottlenecks, across a range of capital-goods

    businesses, may become a short-term impediment, especially if the

    economy continues to grow at about 8 percent, the pace at which it

    has expanded the past three years.

    "An economy growing 8 percent annually becomes almost

    1 1/2 times its original size in five years,'' Chaturvedi says. ``When

    this growth is domestic-demand-driven, as it is in India, the strain on

    infrastructure from the increase in the sheer number of transactions

    is stupendous.''

    ...Give it a few years. The private sector in India will build

    and operate substantial amounts of physical infrastructure. Quality

    public-sector projects will remain limited to rare successes such as

    Delhi Metro Rail Corp. because of the sheer paucity of management

    skills within the government.

    Adequate power supply and tolerable transportation

    networks are within India's reach, and sooner than people realize. Yet

    the key is with India's entrepreneurs, not its government.

    Above-average economic growth in India. Strong population

    growth, a large pool of highly-skilled workers, greater integration withthe world economy and increasing domestic and foreign investment

    are expected to drive Indias real GDP by 6% p.a. over the next 10 to

    15 years.

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    Services outsourcing revving up office demand. India is the

    prime destination for IT services outsourcing. In the coming five

    years, at least 55 million m of extra office space must be completed

    in the premium office segment alone.

    600 new shopping centres by 2010. Indias burgeoning middle

    class will drive up nominal retail sales through 2010 by 10% p.a. At

    the same time, organised retail is becoming more important. At

    present organised retail accounts for a mere 3% of the total; by 2010

    this share will already have reached 10%.

    By 2030 India will need up to 10 million new housing units per

    year. Rapid population growth, rising incomes, decreasing household

    sizes and a housing shortage of currently 20 million units will call for

    extensive residential construction. The financing of owner-occupied

    housing in particular holds out enormous market potential.

    Capital market still underdeveloped. The total stock of

    commercial property is estimated at over USD 300 bn. So far the

    invested market accounts for only USD 4 bn of this. Capital market

    products, such as commercial mortgage-backed securities or listed

    property vehicles are still almost entirely lacking.

    Heed risks. Property investments in India are not risk-free. Market

    transparency is far behind European or US standards. It is therefore

    vital for foreign investors to have a professional local partner. The

    lack of liquidity and upward pressure of pricing remain the main

    concern within the market.:- Bloomberg's Andy Mukherjees report

    The boom in construction in India :-

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    It was a tiny construction company founded in 1986 with

    the modest goal of developing farmland in Sohna, 30 km from

    Gurgaon.

    Today the Vatika Group's flagship project is the multi-croreVatika City, a sprawling township of more than 2,500 apartments

    surrounded by parks and well-laid pavements, that's scheduled to be

    ready by 2005.

    The mini-city has been designed by a firm of British

    architects which designed London's ambitious Canary Wharf.

    Travel southwards to Bangalore and Hyderabad. It has

    been a year of breakneck growth for IDEB Construction which is

    breaking new ground in both the southern cities.

    IDEB is building almost 2 million sq ft of malls, residential

    apartments and a software park. If that isn't enough it's about to start

    developing another 1.6 million sq ft in the next few months.

    Mid-sized companies like Vatika, Senior Builders, Omaxe and

    Ambience in Delhi or IDEB in Bangalore are taking on giant

    projects to cash in on the real estate boom. To stand out in the crowd builders are coming out with

    ambitious projects like an auto mall in Gurgaon, a furniture mall

    in Bangalore and India's first exclusive jewellery mart. Many smaller companies have grown by 100 per cent annually

    for the last two or three years. The riskiest element of the building boom is that it's almost

    completely dependent on infotech and IT-enabled services. If

    anything goes wrong the smaller companies would be badly hit.

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    Its most unusual project: a mall in Bangalore in which over

    100,000 sq ft will be devoted only to furniture.

    The building boom sweeping metropolitan India is coming

    as manna from heaven for a group of mid-sized constructioncompanies.

    A few years ago they were the relative minnows of the

    construction business following in the footsteps of giants like DLF, the

    Hiranandanis and the Ansals.

    Today companies like Vatika, Senior Builders, and

    Ambience in Delhi or IDEB in Bangalore are taking on giant projects of

    their own and hoping to cash in on the real estate boom that's

    sweeping the country.

    Even in Mumbai the construction boom has pushed smaller

    companies into the limelight. Take the 43-year-old Evershine Builders

    which is involved in two mega projects in suburbs like Vasai and

    Kandivli.

    It's currently building 1,000 flats in Vasai and about 500 in

    Kandivli -- both projects are being developed in phases.

    Says J S Augustine, CEO, Evershine Builders: "You could

    say our growth has been 100 per cent year on year. This year we'll

    grow at 50 per cent, because we're a large company now and

    obviously growth rates can't be that high now."

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    Figures in the construction industry are notoriously

    unreliable. But there's no question that smaller builders are making

    the leap into the big time.

    Nevertheless, they are still far behind industry's giants.DLF, for instance, is building about 4 million sq ft of residential

    property and 2.5 million sq ft of office space.

    Besides that it's also building about 500,000 sq ft of

    shopping complexes.

    Similarly, the giant Ansal Group has just signed a deal to

    build a new township on 500 acres of land in Kundli adjoining north

    Delhi.

    The new township which will be called Sushant City will

    house 50,000 people. The Ansals are taking care to move away from

    the herd of builders heading for places like Gurgaon.

    But the smaller companies certainly aren't short onambition. Travel along the outskirts of Delhi to Noida and Greater

    Noida where the Omaxe Group has called in the cranes and

    bulldozers to turn its ambitious projects into reality.

    Most ambitiously, there's the 1.4 million sq ft Omaxe

    Connaught Place billed as the largest shopping complex in India.

    Equally ambitiously, it's building a mini-township called NRI

    City on 85 acres of land in Greater Noida. NRI City will have 2,500

    apartments with a slew of modern facilities thrown in.

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    Move back to Gurgaon where the Ambience Group is

    building a 150-acre luxury township called Ambi Island.

    In the first phase about 325 luxury dwellings are being built

    in the township. To service the township the Rs 250 crore group isalso building the hi-tech Ambi Mall in Gurgaon scheduled to be ready

    by 2006.

    Ambi Mall will offer the usual food courts and theatres. But

    there'll also be a 225-room deluxe hotel, which will be a joint venture

    with the Marriott chain.

    In addition, the shopping mall will have an only by

    invitation Platinum Floor for VIP shoppers. Ambience currently has

    projects worth over Rs 850 crore (Rs 8.50 billion) in hand in Delhi and

    Gurgaon.

    All the newcomers are facing one problem: how do they

    make their presence felt when scores of new glass-and-concrete

    projects are already dotting the landscape?

    Many builders are scouring the world for new concepts that

    can be transplanted on Indian soil.

    IDEB, for instance, is hoping that a giant furniture section

    at its proposed Outlet Mall on the outskirts of Bangalore will bring in

    customers.

    Most ambitiously, there's the Senior Auto Mall to be

    constructed in Gurgaon by Senior Builders. What's an auto mall?

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    The Senior Auto Mall will be a 10-storeys of auto

    showrooms complete with a test track where would-be owners can try

    out new vehicles.

    To make the transaction smoother there'll be banks andinsurance companies vying to offer the best terms. And, there'll be

    food court so that a car buying expedition can be turned into a family

    outing.

    "When a family is planning to buy a car, everyone is

    interested in seeing it," says Vijay Dixit, managing director, Senior

    Builders. The company says it is handling projects worth around Rs1,600 crore (Rs 16 billion).

    If that's not exotic enough, how about the Gold Souk in

    Gurgaon billed as India's first exclusive jewellery mart. The Souk will

    be ready next March and it has room for 70 showrooms spread out

    over 100,000 sq ft.

    Aerens is also constructing a Rs 60-crore (Rs 600 million)

    entertainment complex that will be ready by June and it hopes to

    start an IMAX theatre by 2006.

    "Our focus is on entertainment, since we believe that is

    where the future of this industry is," says Sanjay Kakkar, project

    director, Aerens Group.

    Is there enough demand to sustain this building boom of

    epic proportions? The builders certainly think they are constructing on

    firm foundations.

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    Kalpataru Group in involved in projects all the way from south

    Mumbai to Mira Road in the west and Thane in the east.

    Is this a real estate bubble that's about to burst? Ansal

    Group Chairman Sushil Ansal is sceptical about the future and thegold rush mentality that is building up.

    He's taking care to build in areas like Kundli, which is on

    the Chandigarh highway where others haven't started looking (most

    building in Delhi, borders the affluent south Delhi area).

    Ansal reckons there'll be a double bonus in building in the

    area. Land will be cheaper allowing for escalation. And there will be

    strong demand from the affluent traders who live in north Delhi.

    Says Ansal: "Our strategy is to go to areas where the

    market is not already congested."

    Of course, it should be noted that despite his scepticism

    Ansal is putting up 1,200 residential units in Gurgaon.

    Also, he has built a 700,000 sq ft multiplex and shopping

    complex called Ansal Plaza in Greater Noida of which 80 per cent has

    already been sold.

    But the others are more confident about the future.

    Pradeep Jain, chairman, Parsvnath Developers, points out that his firmhas grown by 154 per cent in the last year, "It's common knowledge

    that Delhi is bursting at its seams. But the opportunities available in

    other parts of the NCR are boundless," he says.

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    Jain doesn't believe that the construction boom is on shaky

    foundations.

    He cites factors ranging from cheap homes loans, to family

    fragmentation and improved connectivity across the NCR.

    Similarly, Raj Singh Gehlot, chairman, Ambience Group,

    points to the changing consumer attitudes.

    "Earlier, there was the conservative culture of

    accumulating one's savings and sacrificing the present to the future,"

    he says. "But now people are spending a lot more."

    The key to success in the real estate business, of course,

    depends on the price at which the land has been bought. That's

    where many mid-sized companies are at a disadvantage compared to

    the bigger groups.

    DLF, for instance, bought up large tracts of land in Gurgaon

    several decades ago. This put them in a particularly happy positionand it means that many builders are also forced to buy from them.

    Inevitably, a lot depends on infotech and IT-enabled

    services. Front-running companies like Wipro Spectramind and Daksh

    e-Services have been booming and hiring in the thousands in the last

    few months.

    "The boom in commercial activity is being driven by IT and

    IT-enabled services. So both commercial demand and residential

    demand, which is generated from the former, will continue to

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    increase," says Sanjay Verma, executive director India, Cushman and

    Wakefield.

    Verma reckons that building activity won't slow down yet.

    "There should definitely be adequate demand in areas like Gurgaonand Noida for at least the next two years," he says.

    Others are equally confident about Bangalore and Mumbai.

    In Bangalore, of course, the boom is almost entirely dependent on the

    infotech boom.

    Is this a building boom that will go on forever or is the

    music about to stop?

    Will Bangalore be the Silicon Valley of the east and the

    scene of unstoppable growth? And will Gurgaon be for India what

    Pudong, the giant suburb of Shanghai is for China? Pudong didn't

    exist in 1990 and today it's a sprawling twin city to Shanghai.

    The builders certainly believe they are building cities forthe 21st century and they will keep pushing the pile drivers into the

    earth.

    Jai Arjun Singh | December 13, 2003

    Additional reporting: Raghavendra Rao and

    Arti Sharma Business Standard

    Part 4 :

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    Comparison between Worlds Fastest growing

    Country :-

    India versus China

    Amit Varma's post China v India points us to a very interesting piece by Shankar Acharya:

    Acharya, a former Chief Economic Adviser to the Government of

    India, does not pull his punches: "Let me put this bluntly: as an economy, we

    are simply not in China's league." His table shows the stark differences:

    INDIA versus CHINA

    ECONOMY/SCAL

    E

    Units Year China India China to

    India ratio

    Population Million 2003 1288 1064 1.2

    GDP (PPP) $ billion 2003 6090 2908 2.1

    Per capita GDP growth % 1980-2004 8.2 3.7 2.2

    Share of manufacturing

    in GDP

    % 2003 39 16 2.4

    Living standards

    Per capita GNP (PPP) $ 2003 4980 2880 1.7

    Life expectancy Years 2002 71 63 1.1

    Female adult literacy % 2003 87 45 1.9

    http://indianeconomy.org/2005/09/27/china-v-indiahttp://indianeconomy.org/2005/09/27/china-v-india
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    rate

    Under 5 mortality Per 1000 2003 37 87 0.4

    Under 5 malnutrition % 1995-2003 12.1 45.8 0.3

    Poverty ratio (% below

    $1 a day)

    2001 &

    2000

    16.6 34.7 0.5

    INFRASTRUCTURE

    Electricity production Billion kwh 2002 1640.5 596.5 2.7

    Goods hauled(Railways)

    Ton-kmbillions

    2002 1508.7 333.2 4.5

    Container traffic (ports) Millions 2003 61.62 3.9 15.7

    Air freight Ton-km

    millions

    2003 5650.6 580.0 9.7

    Telephones (land +Mobile)

    Per 1000 2003 424 71 6.0

    EXTERNAL

    SECTOR

    Merchandise exports $ billion 2004 593.4 81.0 7.3

    Service exports $ billion 2004 62.4 51.3 1.2

    FDI inflow $ billion 2004 60.6 5.5 11.0

    Tourist arrivals Millions 2003 33.0 2.4 13.8

    Forex reserves $ billion 2004 614.5 135.2 4.5

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    Sources: World Development Indicators (2005); Institute of International Finance, RBI and CSO.

    2004 data for India refer to the fiscal year 2004-05.

    Comparison on GDP :-

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    Comparison between the performing management of

    Governance:-

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    Part -5 :-

    Conclusion :-

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    India will thus become the fastest growing economy out of

    34 developed and emerging markets during that period and the

    worlds third largest economy by 2020. Moreover, its GDP per capita

    will double, from roughly USD 2,500 today (at purchasing power

    parity) to almost USD 5,000 in 2020. Favourable demographics,increasing investment in education and infrastructure and further

    integration with the world economy are the factors behind our

    projections.

    India finally regained full investment-grade status on

    Tuesday after a hiatus of more than 15 years, as Standard & Poors

    followed the lead of Moodys and Fitch in removing the speculativetag from its sovereign credit rating.

    The upgrade is symbolic for reformers in the

    government. S&P had downgraded Indias sovereign rating to junk

    status in May 1991, during the balance of payments crisis that

    triggered the start of the reform era.

    ...Fitch raised Indias rating to investment grade in

    August 2006, while Moody did so for its foreign currency

    borrowings in January 2004. Gurchuran Das, an economic

    commentator, said: This is long overdue. S&P have been overly

    cautious.

    The upgrade will open the countrys capital market to awider investor base, but is unlikely to trigger a re-rating of asset

    values as both fixed-income and equity investors had priced in the

    fiscal progress that prompted the move.

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    Indias financial establishment hailed the change. P.

    Chidambaram, finance minister, said he was happy at the rating

    agencys acknowledgement of Indias improving macroeconomic

    stability and strength.

    Today India's central bank raised its growth forecast to 9

    per cent, raised the official repo rate for a fifth time in a year to

    curb inflation, and warned of further signs of overheating.

    Cherian Thomas from Bloomberg reports :

    Governor Yaga Venugopal Reddy raised the Reserve

    Bank of India's estimate for growth in the year ending March from8 percent and increased the repurchase rate at which it lends

    overnight by a quarter point to a four-year high of 7.50 percent.

    Reddy also today unexpectedly left the overnight

    borrowing rate unchanged, surprising investors for the sixth time in

    the past nine scheduled central bank meetings as he tries to

    prevent the world's second-fastest growing major economy after

    China from overheating. India's record growth has kept inflation

    above the central bank's 5 percent tolerance level since

    September.

    As to growth prospects, India is now the second fastest

    growing major economy after China. The FT report, India central

    bank warns of overheating , notes:

    The economy expanded by 9.1 per cent in the first half

    of 2006/07 to September 30th and is set for its fastest annual

    http://www.bloomberg.com/apps/news?pid=20601080&sid=auGo0oTW_Bqs&refer=asiahttp://www.bloomberg.com/apps/news?pid=20601080&sid=auGo0oTW_Bqs&refer=asiahttp://www.ft.com/cms/s/7dbb0782-b0ff-11db-b901-0000779e2340,dwp_uuid=a6dfcf08-9c79-11da-8762-0000779e2340.htmlhttp://www.ft.com/cms/s/7dbb0782-b0ff-11db-b901-0000779e2340,dwp_uuid=a6dfcf08-9c79-11da-8762-0000779e2340.htmlhttp://www.bloomberg.com/apps/news?pid=20601080&sid=auGo0oTW_Bqs&refer=asiahttp://www.ft.com/cms/s/7dbb0782-b0ff-11db-b901-0000779e2340,dwp_uuid=a6dfcf08-9c79-11da-8762-0000779e2340.htmlhttp://www.ft.com/cms/s/7dbb0782-b0ff-11db-b901-0000779e2340,dwp_uuid=a6dfcf08-9c79-11da-8762-0000779e2340.html
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    India GDP (2000 to 2040) :-

    ==========================

    Population 15% to 18%

    Land 2% to 10%

    Food Production 8% to 15%

    Electricity 4% to 10%

    Tech 4% to 15% (Cell Phones, Computers, etc)

    Roads 5% to 15% (Roads, Waterways, Railroads)

    Culture 10% to 25% (Movies, Resturants, Events)

    Forex 1% to 10% (Euro, Dollar, Yuan, Taka)

    Debt -1% to -15% (External, Trade Deficit)

    Anticipated GDP 10% of world economy (6% to 16%)

    Posted by: Roy | Wednesday, May 30, 2007 at 03:

    http://neweconomist.blogs.com/new_economist/2007/01/booming_india.html#comment-71046404http://neweconomist.blogs.com/new_economist/2007/01/booming_india.html#comment-71046404