Western countries always debate how Asia/India is taking their jobs and business. This current recession has given other perspective to this debate. India is playing a role of saviour or rescuer during this Eurozone and US recession in whatever possible way. India has announced help to Eurozone crisis management programme, giving orders/contracts worth billions to European/US companies and opened its multi-billion dollar retail and aviation market for western companies. It is a much needed crisis management package for west and may be long term opportunity for India.
- $ 10 billion to IMF for Eurozone crisis
In 1991, there was a time when India was in deep crisis, India “flew down 67 tonnes of gold to Europe to get $600 millions to tide over a dire import payment crisis”. Now after 20 year time has changed, India is keen to help European crisis.
Currently Indian economy is 10th largest in the world (by nominal GDP) and 3rd largest (by purchasing power parity-PPP). India is the 9th largest exporter and 10th largest importer in the world.
Indian booming economy was not that affected by European crisis as expected and it is grew at 5.5% in June-2012 . In September 2012, Indian government announced “big bang reforms” to improve economic growth further . More on Indian economy here
As a committed member of IMF, India offered $10 billion USD to tackle current European crisis India will contribute this to IMF crisis management fund which was formed to lift Eurozone from crisis.
- $10 to 11 billion deal with France (Europe)
- Indian Contract saves Boeing and 25,000 American Jobs
In June 2011, Government of India approved $ 1.9 billion deal to purchase aircraft from Boeing-USA. This will save about 25000 jobs in Boeing-US. In terms of creation of new jobs, about 22000 jobs will be created in US after India signed new $4.1 billion deal with Boeing
- In 2012, India opened $450 billion Indian Retail Market for European and US companies
India retails sector is ranked top 5 in the world with economic value estimation of $450 billion market. It account for about 15% of India’s GDP and is fastest growing retail market in the world with population of over 1 billion.
In September 2012, India announced new Retail reforms to by allowing foreign companies to open stores and business in one of the most booming sectors in India. Many foreign companies such as IKEA, Wall-Mart, Carrefour and Tesco Plc can now open their stores in India.
European furniture giant IKEA has already decided to invest $1.9 billion in India with its plan to open 25 stores soon. In June 2012, IKEA announced it has applied for permission to invest $1.9 billion in India and set up 25 retail stores. IKEA is officially entered in India after Government has cleared its proposal .
Wall-Mark will also join the party soon by opening its stores across India after this government decision of allowing foreign companies in India’s huge Retail sector .
Thus, India is creating jobs in crisis affected countries like at Eurozone and US by either helping them by giving cash for crisis management fund or by allowing their companies to enter in Indian market. Also, look at the timing of all these decisions. It all happened after 2008 Eurozone and US economic crisis.
I hope now western countries will not blame Indian/Asians for taking their jobs. India is actually creating or helping to retain their jobs in their worst crisis time!
This is truly 21st century’s Globalized world. I am amazed to see so much have changed in last two decades! I guess this is what they called in Globalization – the world has become flat!