Economic Growth vs Tradition

Hi Drew,

You asked me some culture related questions which are really valid questions and they display to me that you indeed have good amount of knowledge about India - a very good trait for a budding economist! I have tried to answer your questions below. Once again The questions you asked me are in RED and the answers to these questions are in BLUE.

Has the job market really exploded, I'd imagine especially in terms of jobs in programming, or the infamous call centers.

With a whole new sector opening up, it is bound to attract with a many new job opportunities. It is true that the jobs market has exploded. Many people who are not so well qualified are able to work and earn a decent salary from the BPO (Business Process Outsourcing) industry.

When you call the call centers are "infamous" it is just an American perspective that you portray. Indian call centers are one of the most professional in the World. It is but natural for the American people to be Anti-outsourcing because it is your jobs which are being taken away. But here I ask a question. In India you will find many people who are college educated and hold expert degrees and they work in call centers. They not only are prepared to work at much lower salary than Americans but due to their academic credentials, they contribute to value-addition in the BPOs. Doesn't it then make sense for American companies to set up shop in India?

As I reason out, lack of competitiveness in American BPOs has caused their clients to shift to India. And from a businessman's viewpoint, Indian or American, any BPO which gives him better value for money is the one he would appoint for his company. Nothing so gravely wrong, I must say.

Indian programming companies today, especially Infosys, Satyam, Wipro and TCS are giving nightmares to giants like IBM. Again, the cheap and abundant work-force is really making it a cut-throat competition for the foreign firms. IBM recently launched its Indian arm, which is not employing more personnel (mostly Indian) than any other IBM concern worldwide because they are highly skilled and really cheap to employ.

Also are these jobs considered to be a goal for many, or are they merely lower rank jobs?

These jobs are in no way among the most coveted ones. You are correct to point out that these are infact the lower ranked jobs. They involve working at odd hours (American Day = Indian night), lack of recreation and family time, and also carry with them health issues due to odd working times.

More and more people who are unable to find other suitable jobs tend to work for BPOs. It is definitely not anybody's first choice to work in a BPO. Also an increasing trend is that the students from College and high school pass outs are opting to work for the BPOs as this is a source of pocket money for them.

My main question is, with all this growth in business, how are traditional Indian values holding up?

India is a really dynamic country and with the many influences (Islamic, British, Turk, Mongol, etc.) in the past, it has learnt to cope really fast with changes.

Since the times of Indus valley civilization, India has been a popular trade destination. The British Colonial Rule exploited India's trade potential to the maximum, which pushed our country into poverty. Wealth is not something new to India, we were the "Golden Bird" and the "Diamond of the British Crown" until we were looted and plundered. But now it is a resurgent India, which is working towards attaining all its lost might and wealth, not by war but by a peaceful rise – trying to achieve its rightful place in the World.

Rise in business is bringing out the best of Indian traditional values, rather than destroying them. I would site an example of how economic development has helped us to promote our culture in a bigger way. Recently, a grand Hindu temple was inaugurated in Delhi on the banks of River Yamuna. This temple is very large and its art work is very intricate. The marble works cost a good fortune. It takes one whole day to go around the temple. But how was this temple made in a third world country? The pious people of the Hindu faith contributed via donations to make this temple. Where did the people get so much money from? The burgeoning economy ensured that people have enough for themselves and enough to donate as well. The temple has a museum on Hindu mythology and the entry ticket is nominal. But you shall see, this is a way to generate money for maintenance of the temple, and thanks to increased tourism in India, it is a really viable source of income.

I would like to say, that increased wealth has helped us protect, preserve and promote our culture in a more effective way. In the 1990's when India was on the verge of an economic collapse, Indian disrespected their own culture and tried to ape the west. Then the India-story happened. India suddenly came into the limelight within a period of 10 years. This has instilled confidence and faith in Indians and made them proud of their culture, so much so, that racist and cultural attack against an Indian film actress in the UK's Big Brother television show evoked a mass uproar in India and there were calls to punish the British government by restricting trade with the UK. Later, British Prime Minister Tony Blair had to apologize to Indians in the British Parliament, only then did the issue die down.

Is the household still being maintained in the same way as it had been before? Are families beginning to be structured in a different way?

Traditional Indian families were agricultural joint families in which all blood relations lived in the same household. More and more Indians are now forced to split families and live in separate nuclear families as their job compulsions might force them to move to a different location. But there is no love lost. Indians are very emotional people and they find the earliest opportunity to go and meet their family. Summer and winter vacations (winter vacations are just like your Christmas and New Year vacations, you will find people from different faiths enjoying the Christmas spirit) in India are great times for the economy, because people travel great distances to unite with their families, add to that the shopping spree, it is boom time for the economy. Even otherwise, it is a common practice for Indians to live in their relatives' home than in a hotel if they are traveling to the same city as their relatives. All in all, the split household is still very much bonded with eachother.

I hope I have answered your questions satisfactorily. In case it is not so, you may ask for clarifications.

Take care,

Aseem.

(Just a piece of news i saw on CNBC right now: Indian exports to Walmart placed at $1 Billion a year.)