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Did you knows about India October 17, 2006

Posted by Sharath Rao in economics, india.

Its not always that I get my hands on quite a bit of interesting data about India – reasons ranging from there not being enough data in public domain to me not knowing where to find it to there not being data at all !!
This post is so heavy in data that some might prefer to just skim through, although I would think some o of these are trends that are good to know.

About private schools in Hyderbad‘s slum areas :

In each area, we found the majority of school children attending private schools. In the areas officially designated as “slums” of three zones of Hyderabad’s Old City, we found 918 schools, of which only 35 percent were government schools, fewer than the 37 percent of unrecognized private schools. In total, 65 percent of schoolchildren in those low-income areas attended private unaided school.

The raw scores from our student achievement tests show considerably higher achievement in the private than in government schools. In Hyderabad, for instance, mean scores in mathematics were about 22 percentage points and 23 percentage points higher in private unrecognized and recognized schools, respectively, than in government schools. The advantage was even more pronounced for English. In all cases, this achievement advantage was obtained at between half and a quarter of the teacher salary costs.

So, there, as it is said, almost whatever the government can do, the private sector can do, better.

For something totally different but interesting here from rediff :

As against the common belief that India is predominantly vegetarian, 64.4 per cent families consume non-vegetarian food with the highest reported in southern states (92.2 per cent) and the least in north (40.4 per cent).

Backs up my statement when I say that being a vegetarian puts me in a minority even in my home country. Ofcourse this isnt felt because you are never far away from a hotel that serves vegetarian food in India. Infact I wont be suprised if it is found that though there are more non-vegetarians out there, number of hotels serving atleast a small variety of vegetarian food is more. Ofcourse, every hotel that serves non-veg does serve vegetarian food, but there has to be sufficient choice for a vegetarian for it to be considered ( unlike most places in United States ). This south-north divide was even more suprising !

I work in the area of information retrieval and this no doubt interests me.

Internet users in India—37 million at last count in September—will grow to 42 million by March, estimates the Internet and Mobile Association of India (IMAI). Indians also undertake over a billion searches each month, according to a report—’The State of Search Engine Marketing in India’—by the IMAI, a trade body of online content, advertising, e-commerce, mobile content and advertising industry.

Now, to put that in perspective, 42 million is larger than all but the population of 5 European countries. But we arent there yet – what is the net used for and how much a part of life it is – and how much people are willing to spend online decides the size of the market. But this is a sign of just how much growth there is to come in the long run ( which means not withstanding major or minor hiccups on the way ) in India and other developing economies in terms of IT spending by businesses. So when Narayanamurthy and friends are hiring 2000 engineers a month (quite a figure if you have been reading US media about job losses !), they probably know what they are doing.

And finally, here is an example of why businesses have something called an IT budget ! The boldfaced are facts I was quite surprised to know.

Full disclosure : I was sent this link for the simple reason that Sridhar Pai, who has been quoted later in the extract is my mother’s brother.

For example, take Hindalco Industries, the 44-year-old flagship company of the Aditya Birla Group—itself one of the oldest organizations in India, having been founded in 1857 as a cotton trading operation. Hindalco is a vertically integrated manufacturer, extracting bauxite from mines, transforming raw materials into primary metals, and fabricating them into everything from rolled products, extrusions, and foil to alloy wheels for cars. Hindalco’s product portfolio consists of more than 50,000 finished goods. Like many businesses in India, one of Hindalco’s biggest business challenges is managing exploding growth.

To help with that challenge, Hindalco turned to Oracle E-Business Suite in 2003. “When we started the project to convert our business applications to Oracle E-Business Suite five years ago, Hindalco was a [US]$500 million company. Now we’ve grown to $2.5 billion and our plan is to become a $5 billion company by 2010,” says Sanjeev Goel, senior vice president of information technology for Hindalco. The results are spectacular: “We’ve gotten nearly 30 to 50 percent cycle time improvements since migrating to Oracle E-Business Suite,” says Goel. “Production and sales have gone up by nearly 18 to 20 percent, but our inventory has come down—we’ve reduced our outbound inventory by about $12.47 million, while our inbound maintenance, repair, and operations [MRO] inventory has been reduced by about $1.69 million.”

“It’s beginning to occur to everyone that some of the large Indian companies, particularly the fast-growing ones in the automotive, transportation, and banking sectors—plus other sectors—are some of the largest growing in the Indian economy. They’re not just absorbing the software talent, they’re actually doing some of the largest deployments of enterprise applications on a global scale,” says Sridhar Pai, CEO and founder of Tonse Telecom, a Bangalore-based market research company focused on the telecommunications industry. “That means there’s a huge opportunity for companies like IBM, HP, Sun, and Oracle.”



1. abhaya - January 20, 2007

I guess there is a difference to be made between those whose primary diet is nonveg and those who take nonveg food. I think the data reported is about the second category, it would be lower for the first one I guess.

But I agree that pure veg people always seemed to be in short supply when going on treats and I only see more and more people around me starting to take nonveg. I am a example myself :-).

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