The Fascinating World of United States of America (USA):
(Are they being challenged?)


Prof. R.K. Gupta
(B.E. Mech (Hons), MBA, FIE, FIMA)
Aravali Institute of Management
E-mail: /

A US business and Statistics review with 'India Vs US Trade' and other US environmental factors, vis--vis Indian perspective)

Lot has been written about India Vs China, but USA holds key to exports both by India and China .A comparison to US Statistics reveals hereunder that India's figures are far away and below from USA, keep aside India dreaming to become global power including in IT sector (It is reported that I.T. MNCs are planning next sojourn at Indonesia or Thailand). Indian media and Government should stop jumping on 9% growth rate beyond traditional Hindu growth rate of 4 % as India's absolute public spending itself is pea nuts. Dividing anything with population of India, the figures dwarf so much that underdevelopment on comparative basis and high skew ness in earnings of lower, middle and upper 1/3rd segments is self evident. In other words about 70% of Indians have no access to markets, and share in Growth and employment in organized sector. That is a menacing figure (900 million people).

U.S. economic growth has been slowing it is stated, since last spring due to the housing slump. The Current US economy is facing stiff competition from the new growing economies like India and China. These countries are coming together along with Brazil and Russia, in business terms, to form BRIC.

US firms are at or near the vanguard in technological advances, especially in computers and in medical, aerospace, and military equipment, although their advantage has narrowed since the end of World War II. The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits

The United States had experienced trade surpluses during most of the years following World War II. But oil price shocks in 1973-1974 and 1979-1980 and the global recession that followed the second oil price shock caused international trade to stagnate.

At the same time, the United States began to feel shifts in international competitiveness. By the late 1970s, many countries, particularly newly industrializing countries, were growing increasingly competitive in international export markets. South Korea, Hong Kong, Mexico, and Brazil, among others, had become efficient producers of steel, textiles, footwear, auto parts, and many other consumer products (Source: Economy watch)

The darlings for textiles Imports by USA (Next big markets are EU, Japan and Hongkong) are:


NAFTA countries: Mexico and Canada

CBI countries
(Caribbean Basin Initiative ) Central America and the Caribbean countries having 24 beneficiary countries with duty-free access to the U.S. market for most goods Like: Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, British Virgin Islands, Costa Rica, Dominica, Dominican Republic, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Montserrat, Netherlands Antilles, Nicaragua, Panama, St. Kitts( Remember VP singh / Chandraswami Scam of St Kitts for US $ 21 million?) and Nevis, St. Lucia, St. Vincent and the Grenadines, Trinidad and Tobago.

The Big Three : Hong Kong, South Korea and Taiwan

ASEAN countries (Indonesia, etc)

Developed country suppliers

South Asian suppliers (includes India)


United States


Britain's American colonies broke with the mother country in 1776 and were recognized as the new nation of the United States of America following the Treaty of Paris in 1783. During the 19th and 20th centuries, 37 new states were added to the original 13 as the nation expanded across the North American continent and acquired a number of overseas possessions. The two most traumatic experiences in the nation's history were the Civil War (1861-65) and the Great Depression of the 1930s. Buoyed by victories in World Wars I and II and the end of the Cold War in 1991, the US remains the world's most powerful nation state. The economy is marked by steady growth, low unemployment and inflation, and rapid advances in technology.


United States


North America, bordering both the North Atlantic Ocean and the North Pacific Ocean, between Canada and Mexico


38 00 N, 97 00 W

Map references:

North America


Total: 9,826,630 sq km (  India 3,287,590 SQ KM , China & Pakistan occupied area included)
land: 9,161,923 sq km
water: 664,707 sq km
note: includes only the 50 states and District of Columbia

Area - comparative:

About half the size of Russia; about three-tenths the size of Africa; about half the size of South America (or slightly larger than Brazil); slightly larger than China; more than twice the size of the European Union

Land boundaries:

Total: 12,034 km
Border countries: Canada 8,893 km (including 2,477 km with Alaska), Mexico 3,141 km


19,924 km


mostly temperate, but tropical in Hawaii and Florida, arctic in Alaska, semiarid in the great plains west of the Mississippi River, and arid in the Great Basin of the southwest; low winter temperatures in the northwest are ameliorated occasionally in January and February by warm Chinook winds from the eastern slopes of the Rocky Mountains


Vast central plain, mountains in west, hills and low mountains in east; rugged mountains and broad river valleys in Alaska; rugged, volcanic topography in Hawaii

Elevation extremes:

lowest point: Death Valley -86 m
highest point: Mount McKinley 6,194 m

Natural resources:

coal, copper, lead, molybdenum, phosphates, uranium, bauxite, gold, iron, mercury, nickel, potash, silver, tungsten, zinc, petroleum, natural gas, timber

Land use:

arable land:         18.01%
permanent crops: 0.21%
other: 81.78% (2005)

Irrigated land:

223,850 sq km (2003)

Environment - current issues:

Air pollution resulting in acid rain in both the US and Canada; the US is the largest single emitter of carbon dioxide from the burning of fossil fuels; water pollution from runoff of pesticides and fertilizers; limited natural fresh water resources in much of the western part of the country require careful management; desertification (USA has already resorted to organic farming in big way)

Environment - international agreements:

Party to: Air Pollution, Air Pollution-Nitrogen Oxides, Antarctic-Environmental Protocol, Antarctic-Marine Living Resources, Antarctic Seals, Antarctic Treaty, Climate Change, Desertification, Endangered Species, Environmental Modification, Marine Dumping, Marine Life Conservation, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, Whaling
signed, but not ratified: Air Pollution-Persistent Organic Pollutants, Air Pollution-Volatile Organic Compounds, Biodiversity, Climate Change-Kyoto Protocol, Hazardous Wastes

Geography - note:

world's third-largest country by size (after Russia and Canada) and by population (after China and India); Mt. McKinley is highest point in North America and Death Valley the lowest point on the continent


United States


301,139,947 (July 2007 est.) (India-1,129,866,154 (July 2007 est.)

Age structure:

0-14 years: 20.2% (male 31,152,050/female 29,777,438)
15-64 years: 67.2% (male 100,995,752/female 101,365,035)
65 years and over: 12.6% (male 15,858,477/female 21,991,195) (2007 est.)

Median age:

Total: 36.6 years
male: 35.3 years
female: 37.9 years (2007 est.)

Population growth rate:

0.894% (2007 est.)

Birth rate:

14.16 births/1,000 population (2007 est.)

Death rate:

8.26 deaths/1,000 population (2007 est.)

Net migration rate:

3.05 migrant(s)/1,000 population (2007 est.)

Sex ratio:

At birth: 1.05 male(s)/female
under 15 years: 1.046 male(s)/female
15-64 years: 0.996 male(s)/female
65 years and over: 0.721 male(s)/female
total population: 0.967 male(s)/female (2007 est.)

Infant mortality rate:

Total: 6.37 deaths/1,000 live births
male: 7.02 deaths/1,000 live births
female: 5.68 deaths/1,000 live births (2007 est.)

Life expectancy at birth:

Total population: 78 years
male: 75.15 years
female: 80.97 years (2007 est.)

Total fertility rate:

2.09 children born/woman (2007 est.)

HIV/AIDS - adult prevalence rate:

0.6% (2003 est.)

HIV/AIDS - people living with HIV/AIDS:

950,000 (2003 est.)

HIV/AIDS - deaths:

17,011 (2005 est.)

Ethnic groups:

white 81.7%, black 12.9%, Asian 4.2%, Amerindian and Alaska native 1%, native Hawaiian and other Pacific islander 0.2% (2003 est.)
note: a separate listing for Hispanic is not included because the US Census Bureau considers Hispanic to mean a person of Latin American descent (including persons of Cuban, Mexican, or Puerto Rican origin) living in the US who may be of any race or ethnic group (white, black, Asian, etc.)


Protestant 52%, Roman Catholic 24%, Mormon 2%, Jewish 1%, Muslim 1%, other 10%, none 10% (2002 est.)


English 82.1%, Spanish 10.7%, other Indo-European 3.8%, Asian and Pacific island 2.7%, other 0.7% (2000 census)
note: Hawaiian is an official language in the state of Hawaii


Definition: age 15 and over can read and write
total population: 99%
male: 99%
female: 99% (2003 est.)


United States

Government type:

Constitution-based federal republic ; strong democratic tradition


name: Washington, DC
geographic coordinates: 38 53 N, 77 02 W
time difference: UTC-5 (during Standard Time)
daylight saving time: +1hr, begins second Sunday in March; ends first Sunday in November
note: the US is divided into six time zones

Administrative divisions:

50 states and 1 district*; Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia*, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming


4 July 1776 (from Great Britain)

National holiday:

Independence Day, 4 July (1776)


17 September 1787, effective 4 March 1789

Legal system:

Federal court system based on English common law; each state has its own unique legal system, of which all but one (Louisiana, which is still influenced by the Napoleonic Code) is based on English common law; judicial review of legislative acts; has not accepted compulsory ICJ jurisdiction


18 years of age; universal

Executive branch:

chief of state: President George W. BUSH (since 20 January 2001); Vice President Richard B. CHENEY (since 20 January 2001); note - the president is both the chief of state and head of government
head of government: President George W. BUSH (since 20 January 2001); Vice President Richard B. CHENEY (since 20 January 2001)
cabinet: Cabinet appointed by the president with Senate approval
elections: president and vice president elected on the same ticket by a college of representatives who are elected directly from each state; president and vice president serve four-year terms (eligible for a second term); election last held 2 November 2004 (next to be held on 4 November 2008)
election results: George W. BUSH reelected president; percent of popular vote - George W. BUSH 50.9%, John KERRY 48.1%, other 1.0%

Legislative branch:

Bicameral Congress consists of the Senate (100 seats, 2 members are elected from each state by popular vote to serve six-year terms; one-third are elected every two years) and the House of Representatives (435 seats; members are directly elected by popular vote to serve two-year terms)
elections: Senate - last held 7 November 2006 (next to be held November 2008); House of Representatives - last held 7 November 2006 (next to be held November 2008)
election results: Senate - percent of vote by party - NA; seats by party - Democratic Party 49, Republican Party 49, independent 2; House of Representatives - percent of vote by party - NA; seats by party - Democratic Party 233, Republican Party 202

Judicial branch:

Supreme Court (nine justices; nominated by the president and confirmed with the advice and consent of the Senate; appointed to serve for life); United States Courts of Appeal; United States District Courts; State and County Courts

Political parties and leaders:

Democratic Party [Howard DEAN]; Green Party; Libertarian Party [William (Bill) REDPATH]; Republican Party [Robert M. (Mike) DUNCAN]

Political pressure groups and leaders:



United States

Economy - overview:

The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $43,500 ( India $ 700 per year at exchange rate 42:1 with 860 million people spending Half dollar a day per person.

On the other hand, India also houses the most number of billionaires in Asia-36, ahead of economic powerhouse Japan, according to Forbes magazine. These billionaires together control a wealth of Rs 8,60,000 crore: according to IMF at end of 2005, on PPP basis USA had $43,444  and India $ 3,737 at end of year 2004 at 118th  rank with Pakistan trailing behind and as compared to China's $ 7,598 at end of 2005 and 87th rank. Luxemburg topped the list with $80,470)

In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II. The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains in household income have gone to the top 20% of households. The response to the terrorist attacks of 11 September 2001 showed the remarkable resilience of the economy. The war in March-April 2003 between a US-led coalition and Iraq, and the subsequent occupation of Iraq, required major shifts in national resources to the military. The rise in GDP in 2004-06 was under girded by substantial gains in labor productivity. Hurricane Katrina caused extensive damage in the Gulf Coast region in August 2005, but had a small impact on overall GDP growth for the year. Soaring oil prices in 2005 and 2006 threatened inflation and unemployment, yet the economy continued to grow through year-end 2006. Imported oil accounts for about two-thirds of US consumption. Long-term problems include inadequate investment in economic infrastructure, rapidly rising medical and pension costs of an aging population, sizable trade and budget deficits, and stagnation of family income in the lower economic groups. The merchandise trade deficit reached a record $750 billion in 2006.

GDP (purchasing power parity):

$13.06 trillion (2006 est.)

GDP (official exchange rate):

$13.16 trillion (2006 est.)

GDP - real growth rate:

2.9% (2006 est.)

GDP - per capita (PPP):

$43,800 (2006 est.)

GDP - composition by sector:

Agriculture: 0.9%
Industry: 20.4%
Services: 78.6% (2006 est.)

Labor force:

151.4 million (Includes unemployed ) (2006 est.)

Labor force - by occupation:

farming, forestry, and fishing 0.7%, manufacturing, extraction, transportation, and crafts 22.9%, managerial, professional, and technical 34.9%, sales and office 25%, other services 16.5%
note: figures exclude the unemployed (2006)

Unemployment rate:

4.8% (2006 est.)

Population below poverty line:

12% (2004 est.)

Household income or consumption by percentage share:

lowest 10%: 1.8%
highest 10%: 30.5% (1997)

Distribution of family income - Gini index:

45 (2004) **

Inflation rate (consumer prices):

2.5% (2006 est.)

Investment (gross fixed):

16.6% of GDP (2006 est.)


Revenues: $2.409 trillion
expenditures: $2.66 trillion;

Public debt:

64.7% of GDP (2005 est.)

Agriculture - products:

wheat, corn, other grains, fruits, vegetables, cotton; beef, pork, poultry, dairy products; fish; forest products


leading industrial power in the world, highly diversified and technologically advanced; petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, electronics, food processing, consumer goods, lumber, mining

Industrial production growth rate:

4.2% (2006 est.)

Electricity - production:

3.979 trillion kWh (2004)

Electricity - production by source:

fossil fuel: 71.4%
hydro: 5.6%
nuclear: 20.7%
other: 2.3% (2001)

Electricity - consumption:

3.717 trillion kWh (2004)

Electricity - exports:

22.9 billion kWh (2004)

Electricity - imports:

34.21 billion kWh (2004)

Oil - production:

7.61 million bbl/day (2005 est.)

Oil - consumption:

20.73 million bbl/day (2004 est.)

Oil - exports:

1.048 million bbl/day (2004)

Oil - imports:

13.15 million bbl/day (2004)

Oil - proved reserves:

21.37 billion bbl (1 January 2005) *

Natural gas - production:

531.1 billion cu m (2004 est.)

Natural gas - consumption:

635.1 billion cu m (2004 est.)

Natural gas - exports:

24.18 billion cu m (2004 est.)

Natural gas - imports:

120.6 billion cu m (2004 est.)

Natural gas - proved reserves:

5.451 trillion cu m (1 January 2005 est.)

Current account balance:

-$862.3 billion (2006 est.)


$1.024 trillion FOB (2006 est.)

Exports - commodities:

agricultural products (soybeans, fruit, corn) 9.2%, industrial supplies (organic chemicals) 26.8%, capital goods (transistors, aircraft, motor vehicle parts, computers, telecommunications equipment) 49.0%, consumer goods (automobiles, medicines) 15.0% (2003)

Exports - partners:

Canada 22.2%, Mexico 12.9%, Japan 5.8%, China 5.3%, UK 4.4% (2006)


$1.869 trillion FOB (2006 est.)

Imports - commodities:

agricultural products 4.9%, industrial supplies 32.9% (crude oil 8.2%), capital goods 30.4% (computers, telecommunications equipment, motor vehicle parts, office machines, electric power machinery), consumer goods 31.8% (automobiles, clothing, medicines, furniture, toys) (2003)

Imports - partners:

Canada 16%, China 15.9%, Mexico 10.4%, Japan 7.9%, Germany 4.8% (2006)

Reserves of foreign exchange and gold:

$69.19 billion (August 2006 est.) { Much Lesser than India}

Debt - external:

$10.04 trillion (30 June 2006 est.)

Economic aid - donor:

ODA, $6.9 billion (1997)


US dollar (USD)

Currency code:


Fiscal year:

1 October - 30 September (India 1st April-31st march)


Ginni Index explained above


United States

Telephones - main lines in use:

172 million (2006)

Telephones - mobile cellular:

233 million (2006)

Telephone system:

general assessment: a large, technologically advanced, multipurpose communications system
domestic: a large system of fiber-optic cable, microwave radio relay, coaxial cable, and domestic satellites carries every form of telephone traffic; a rapidly growing cellular system carries mobile telephone traffic throughout the country
international: country code - 1; 24 ocean cable systems in use; satellite earth stations - 61 Intelsat (45 Atlantic Ocean and 16 Pacific Ocean), 5 Intersputnik (Atlantic Ocean region), and 4 Inmarsat (Pacific and Atlantic Ocean regions) (2000)

Radio broadcast stations:

AM 4,789, FM 8,961, shortwave 19 (2006)


575 million (1997)

Television broadcast stations:

2,218 (2006)


219 million (1997)

Internet country code:


Internet hosts:

195.139 million (2005)

Internet Service Providers (ISPs):

7,000 (2002 est.)

Internet users:

208 million (2006)


United States


14,858 (2006)

Airports - with paved runways:

total: 5,119
over 3,047 m: 189
2,438 to 3,047 m: 221
1,524 to 2,437 m: 1,426
914 to 1,523 m: 2,337
under 914 m: 946 (2006)

Airports - with unpaved runways:

total: 9,739
over 3,047 m: 1
2,438 to 3,047 m: 6
1,524 to 2,437 m: 157
914 to 1,523 m: 1,728
under 914 m: 7,847 (2006)


149 (2006)


petroleum products 244,620 km; natural gas 548,665 km (2003)


total: 226,612 km
standard gauge: 226,612 km 1.435-m gauge (2005)


total: 6,430,366 km
paved: 4,165,110 km (includes 75,009 km of expressways)
unpaved: 2,265,256 km (2005)


41,009 km (19,312 km used for commerce)
note: Saint Lawrence Seaway of 3,769 km, including the Saint Lawrence River of 3,058 km, shared with Canada (2007)

Merchant marine:

total: 465 ships (1000 GRT or over) 10,590,325 GRT/13,273,133 DWT
by type: barge carrier 7, bulk carrier 67, cargo 91, chemical tanker 20, container 76, passenger 19, passenger/cargo 58, petroleum tanker 76, refrigerated cargo 3, roll on/roll off 27, specialized tanker 1, vehicle carrier 20

Ports and terminals:

Corpus Christi, Duluth, Hampton Roads, Houston, Long Beach, Los Angeles, New Orleans, New York, Philadelphia, Tampa, Texas City
note: 13 ports north of New Orleans (South Louisiana Ports) on the Mississippi River handle 290,000,000 tons of cargo annually


United States

Military branches:

Army, Navy and Marine Corps, Air Force, and Coast Guard; note - Coast Guard administered in peacetime by the Department of Homeland Security, but in wartime reports to the Department of the Navy

Military expenditures - percent of GDP:

4.06% (2005 est.)

Trans-national Issues

United States

Disputes - international:

the U.S. has intensified domestic security measures and is collaborating closely with its neighbors, Canada and Mexico, to monitor and control legal and illegal personnel, transport, and commodities across the international borders; abundant rainfall in recent years along much of the Mexico-US border region has ameliorated periodically strained water-sharing arrangements; 1990 Maritime Boundary Agreement in the Bering Sea still awaits Russian Duma ratification; managed maritime boundary disputes with Canada at Dixon Entrance, Beaufort Sea, Strait of Juan de Fuca, and around the disputed Machias Seal Island and North Rock; The Bahamas and US have not been able to agree on a maritime boundary; US Naval Base at Guantanamo Bay is leased from Cuba and only mutual agreement or US abandonment of the area can terminate the lease; Haiti claims US-administered Navassa Island; US has made no territorial claim in Antarctica (but has reserved the right to do so) and does not recognize the claims of any other states; Marshall Islands claims Wake Island; Tokelau included American Samoa's Swains Island among the islands listed in its 2006 draft constitution

Refugees and internally displaced persons:

refugees (country of origin): the US admitted 62,643 refugees during FY04/05 including, 10,586 (Somalia), 8,549 (Laos), 6,666 (Russia), 6,479 (Cuba), 3,100 (Haiti), 2,136 (Iran) (2006)

Illicit drugs:

world's largest consumer of cocaine, shipped from Colombia through Mexico and the Caribbean; consumer of ecstasy and of Mexican heroin, marijuana and methamphetamine; minor consumer of high-quality Southeast Asian heroin; illicit producer of cannabis, marijuana, depressants, stimulants, hallucinogens, and methamphetamine; money-laundering center

Indo US Trade highlights:

India's exports to major trade partners
(In US$ million)





2001-200 2









Total (Incl. others)






India's imports from major trade partners
(In US$ million) 














Total (Incl. others)






Source: Federal ministry of Commerce, India 

In $ terms, exports during financial 2005-2006 stood at $ 100.6 billion which was 24.71 percent higher than the $ 80.67 billion achieved in previous financial year. India's imports in fiscal 2005-2006 totaled $ 140.23 billion representing an increase of 31.52 percent over the level of imports valued at $ 106.63 billion in 2004-2005. In Rupee terms, the imports increased by 29.80 percent.    

Oil imports during fiscal 2005-2006 increased by 46.84 percent valued at US $ 43.844 billion compared with US $ 29.858 billion in the previous financial year.  Non-oil imports in 2005-2006 are estimated at US $ 96393.39 million up 25.56 percent over such imports valued at US $ 76772.23 million in fiscal 2004-2005.  

The trade deficit for fiscal 2005-2006 is estimated at US $ 39.630 billion which is higher than the deficit at US $ 25.958 billion during financial year 2004-2005.

% of Total US Merchandise Imports - Top ten 2006

Canada and the U.S. is each other's largest single trading partner.

Canadian-based businesses enjoy a unique open trading arrangement with the U.S. while at the same time taking advantage of Canada's competitive business costs.

Where is India in above Histogram?

Summary:  India's business with USA and share in global trade is almost peanuts. Not a single Indian brand or company comes in top 100.

Even considering PPP(Purchasing Power parity- an advantage to low cost economies like India) based per capita income :  India :USA ratio is having  big gap 1:11  ; and for 'population x Area' is  1:11.3 ( some people say add 40% No 2 money not disclosed in India's GDP) in that case PPP per capita will be 1.4:11 or 1:7.8 (Not so bad ?).

But moot point is- Can USA sustain this consumerism and over growth and pollution and radiation problems from nuclear stations and mobiles at another end? USA has largest reserves of oil and Alaska is floating on it. It is seen that USA besides agro products is engaged in manufacturing 'high value' items in US or in other countries as outsource, foreign ventures, based on high level of Technology and patents. It is  matter of concern that Indian Universities and Research Institutes with IITs included don't file even 25-30 patents in a year ( Source: Controller General of Patents and Trademarks-India).

Recently, the IMF has described the US current account deficit as unsustainable. The International Monetary Fund has said it could have a significant adverse effect on interest rates and global capital markets.

The American economy is observing a record-low household saving rate and a large federal fiscal deficit. Thus it is essential to support the adjustment by strong US national saving to avoid a burden falling on investment and growth, both in America and abroad. The Iraq war in March/April 2003 shifted resources to military industries and introduced uncertainties about investment and employment in other sectors of the economy. Though, the United States will continue to be the world leader for many more years, it will have to resolve some long-term problems in order to sustain the growth. These include inadequate investment in economic infrastructure, rapidly rising medical and pension costs of an aging population, sizable trade deficits, and stagnation of family income in the lower economic groups.

As for Airports almost all major airports are international and Atlanta leads in number of passengers and flights per day. About 2700 flights a day and total passengers 86 millions a years. (It is unsafe airport with reported cases of theft of baggage)
The above details
will help us to get some idea of our differences and share in today global economy. Almost every MNC has either an office or manufacturing in
this country. All Japanese technology and car manufacturers are based so are some of the German and other Europeans.
There is no stigma about MNC and there are no licenses or MOU required. It is a free economy and one can open any industry and State will help and not hinder.

Can India manage to remain competitive in only three factors available presently?--

    1. Open economy-The democracy factor, 2. The English speaking erstwhile British colony and 3. Low labor cost (But poor quality and unproductive).

    2.  India has severe problems like widespread unrest and unstable governments at center and States, violence and not very good relations with SAARC countries that matter. India must forge Regional Cooperation groups fast and activate SAARC free markets. India should also develop two-way trade with China but not entering areas where Chinese quality is poor.

    3. India must switch to value added manufacturing and heavy investment in R& D for next 20 years @ 5-6 % of GDP. I.T edge may shift to Indonesia or Thailand. Chinese youth is picking English very fast and getting westernized rapidly and services sector may flatten out after further 5-6% more share in economy than present level of around 58%.

Acknowledgements:  The tables and statistics have been collected from various websites besides ( World Fact book) in particular. Contribution has also been made for some data by my India FORCE Forum member Shaadi Katyal USA.

Note : While most of data on USA are updated recently (20th Sep 2007) the data about India are up to 2005/2006

Prof. R.K. Gupta
(B.E. Mech (Hons), MBA, FIE, FIMA)
Aravali Institute of Management
E-mail: /

Source: E-mail September 24, 2007


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