India  

A combination of a large labour force and very low foreign direct investment as a percentage of GDP could provide a possible explanation for the extremely low availability of productive physical capital per worker. Even though the source of India’s export revenues are manufactured goods rather than raw materials and natural resources, generally its terms of trade remain weak. India’s domestic saving is moderately high, and household expenditure as a percentage of GDP is robust enough to sustain a significant domestic market. Low interest margins and very low default rates on loans indicate that the banking sector is efficient, placing 35th and 36th, respectively, in these variables.

With only 11 formal business start up procedures and approximately 20,000 new businesses registered in 2007, India ranks 34th on this variable, having a favourable environment for entrepreneurship. However, India suffers from a weak communication infrastructure. With less than one secure internet server per one million people and approximately two personal computers per 100 people, India ranks in the bottom 30 countries and as such India’s recent high-tech prowess is not widely spread amongst the workforce. However, India ranks 26th in terms of total bandwidth, and the country’s service industry contributes a value equivalent of 60% of its GDP, ranking the country in the top half, worldwide. India’s rankings on ICT and high-tech exports are low, placing the country 54th and 61st, respectively. However, a reasonable R&D expenditure and above average royalty receipts signify India’s awareness of the importance of innovation.

India scores well on democracy variables compared to other countries at similar income per capita levels. Ranking in the top 40 with respect to political rights and slightly lower regarding civil liberties, Indian citizens enjoy moderately high levels of freedom to participate in political processes and express their political beliefs. India scores highly on levels of competition in selection processes for the legislative and executive branches and has a fully independent judicial system. India’s above average score for political checks and balances places this nation 44th on this variable. The country’s regime has been in place for over 50 years, ranking the country 21st on this variable of political stability.

Primary and secondary education enrolment rates are quite low in India, placing this nation amongst the bottom 30 countries in this measure. Tertiary enrolment rates are similar at a mere 12%, placing India 77th on this variable. India also performs poorly on the number of students per teacher - there are approximately 40 students per teacher in primary education. There is also very low education expenditure per students, which places India amongst the bottom 30 countries worldwide. The girls to boys enrolment ratio indicates a strong bias towards male enrolment in schooling, with just 91 girls for every 100 boys, ranking the country 92nd. Labour productivity could also be significantly improved if average education per worker rose beyond three and five years for tertiary and secondary education, respectively.

Poor healthcare facilities and the general low level of health are matters which cause concern. Severe underinvestment in medical facilities is shown through the lack of adequate doctors and hospital beds per capita. In fact, India ranks amongst the bottom 30 countries according on these two variables. While only 28% of the population has access to improved sanitation facilities, 69% claim that water quality in India is high.* Approximately 20% of the population are undernourished, placing this country in the bottom 26. Infant mortality rates are very high. On average, Indians have a health-adjusted life expectancy of only 53 years, indicating alarmingly short life spans and high disease prevalence when assessed on a national average.* It comes as a surprise when 83% of respondents claim to have good health while 25% report to have health problems or have experienced pain - respectable scores for these subjective health measures.*

India faces significant problems related to refugees and internally displaced individuals, and is ranked 56th in that measure. Legacies of group grievances and conflict resulting from insecurity and human flight are additional challenges for this nation: India is in the bottom 50 for both variables. Insecurity in terms of state-sponsored violence and torture is a significant problem, placing India’s ranking in the bottom 15 countries worldwide. Although homicide rates are about average at four homicides per 100,000 people, just 5% of Indians reported having property stolen in 2008, the second-lowest proportion worldwide.* Just 2% were assaulted, ranking 12th, and nearly three-quarters of the population feel safe walking the streets at night, a high percentage, globally.* India suffered from high casualties due to civil and ethnic unrest in 2008.

India’s performance in terms of bureaucratic quality and effective implementation of policies is average. In terms of regulatory quality and enforcement of the rule of law, India ranks 68th and 46th out of 104 countries, respectively. While three-quarters of respondents claim to have confidence in courts and the judiciary system and 94% declare confidence in their military, 87% of Indian citizens believe that government and businesses in India are corrupt.* Although political participation is considered to be fair and free, only 49% of individuals believe that elections are honest.*

Indian citizens enjoy moderately high levels of freedom of speech, religion, and movement. While 85% of respondents believe that tolerance towards ethnic minorities is high, only 60% believe that their country is a good place for immigrants.* In terms of freedom of choice in their daily lives, 75% of Indian respondents claim to be satisfied, placing the country in the top 50 with respect to this variable.*

India’s high ranking in this category is mainly a product of the high membership rate of its citizens; between 59% and 68% of the population report that they belong to a variety of community organisations.* While only 23% of Indian citizens believe they can trust others, and just 64% believe they can rely on family and friends – an extremely low percentage compared to the rest of the international community - most find friends to be very important.* Very few respondents declare that they have given donations or volunteered and only 28% claim to have helped strangers in 2008.* Levels of religiosity are rather high in India, placing this country in the top 35 countries worldwide on this variable.*

* Data taken from the Gallup World Poll

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