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Economic Development in NEEs

India is an NEE with a huge population and lots of potential. Its level of development is middling, but increasing. India is a rapidly developing NEE. It has the largest population in the world (around 1.5 billion) and is still growing. India has the biggest population and economy in South Asia, so it plays a major role in trade and politics in the region. India's rapid development means its industrial structure is changing, with growth in manufacturing and services. This has impacts on quality of life and the environment.

India is a rapidly developing NEE. It has the largest population in the world (around 1.5 billion) and is still growing. India has the biggest population and economy in South Asia, so it plays a major role in trade and politics in the region. India's position in the Indian Ocean has also allowed it to establish trade links with south east Asia and the Middle East. India is increasingly important globally -- it exports services (e.g. IT support) and manufactured goods (e.g. medicines) across the world, and it's a member of the World Trade Organisation and the G20 (a group of 20 of the world's largest economies). Development in India is happening in a unique political, social, cultural and environmental context.

Key Terms

NEE (Newly Emerging Economy) — A country where economic development is increasing rapidly. India is a key example.
G20 — A group of 20 of the world's largest economies. India is a member.

Case Studies

Exam Tips

  • •Know India's industrial structure changes: primary (42% workforce, 15% GDP), secondary (grew from 16% to 24% workforce), tertiary/quaternary (34% workforce, 62% GDP).
  • •Learn the advantages AND disadvantages of TNCs -- the exam often asks for both sides. Use Unilever as your example with specific statistics.
  • •Understand the four types of aid (short-term, long-term, top-down, bottom-up) with a specific example for each.
  • •Be ready to discuss both positive and negative impacts of economic development on quality of life AND the environment.
  • •Key statistics to remember: HDI increased 0.49 to 0.64; clean water access 68% to 88%; FDI grew from $7.3bn to $44bn; daily wages up 42 Rupees.
  • •If you studied a different NEE country (e.g. Nigeria), you can use that instead -- just make sure you know the equivalent details about industrial structure, TNCs, aid, trade, quality of life and environmental impacts.
  • •For trading relationships, remember: since 1991 India reduced trade barriers; over 3,000 foreign companies by 2014; Asia-Pacific Trade Agreement.