Developing India 3

Mass poverty and high technology - India stands for the juxtaposition of these two supposed opposites. India is the emerging and by far the most important economy in South Asia. Even so, many Indians live in great poverty. Especially in the megacities of the subcontinent there are large slums that are neither supplied with drinking water nor have a sewage system.

Spatial distribution of business locations
In the neighboring states of Bangladesh, Myanmar and Pakistan, only the large cities (Rangoon, Dhaka, Karachi, Lahore) are important industrial locations. Nepal and Sri Lanka, on the other hand, are destinations for international tourism. The development of popular tourist regions usually brings the countries quite high income from abroad (foreign exchange). However, the lack of other industries means that countries like Nepal are heavily dependent on other countries from which the tourists come.
India, on the other hand, is one of the largest industrialized countries in the world and, like Pakistan, has developed branches of high technology. These include, for example, the nuclear industry, rocket construction or the development of computers. Little by little, India is also becoming more and more important as a service location (e.g. in software production).
The spatial distribution of the industry shows a concentration on a few large cities and their surrounding areas (e.g. Bombay, Delhi, Bangalore, Madras). The industrial growth center is the state of Maharashtra with Bombay (Mumbai) as the center. Although heavy rains and floods during the monsoon season repeatedly put Bombay into a state of emergency, the city has developed into an internationally important service center.
The textile industry is traditionally of great importance in all of India, as in Pakistan.

Development of the economy in India
One problem with the economic structure in India is the high proportion of the economy that is owned by the state. Interference by the state in economic decisions was the order of the day and sometimes led to wrong location decisions. Some of the decisions were made against the background that India should develop as independently as possible. Industrialization should focus on basic materials so that as little as possible nothing has to be imported from other countries that can also be manufactured in India. Foreign influences from large, international companies were deliberately kept away from India in order to enable development on its own.
Economic reforms took place in the early 1990s. The Indian market was opened. As a result of these reforms, foreign direct investment, ie investments by foreign companies in the Indian economy, has increased sharply.
M. Felsch, W. Storkebaum, M. Schneider