Panel No. 12

Panel Title: Industrialisation in South Asia – economic, social and environmental aspects

Convenor: Prof. Gunnar Jacks, Dept of Land and Water Resources Engineering, Royal Institute of Technology (KTH), Stockholm, Sweden

    Tuesday 6 July, 13–18

Panel Abstract: The developed countries have exported polluting industries to South Asia, such as textile, leather and metal industries. Also waste materials are exported and in the receiving countries dealt with little care. These industries are in many cases economically successful, giving employment to many people and giving export incomes to the respective country. However, they are not environmentally sustainable, polluting soil and water.
The panel is supposed to discuss the possibilities of introducing a cleaner technology and the social, economic and environmental implications of that. The problem is not only local, but one of the aspects is also to raise the awareness of the consumers in the developed countries.

Papers accepted for presentation in the panel:

Paper Giver 1: Prakash Nelliyat, Madras School of Economics, Chennai, India

Paper 1 Title: Socio-economic, environmental and clean technology aspects of textile industries in Tiruppur, South India

Paper Abstract: Recently, many of the South Asian countries are experiencing severe environmental problems due to their rapid industrialization. This phenomenon is very common where the polluting industries like textile dyeing, leather tanning, paper and pulp processing, sugar manufacturing, etc. thrive as clusters. The effluents discharged by these industries leads to serious pollution of surface water sources, ground water and soils and ultimately affects the livelihood of the poor. Generally, the above-mentioned industrial units are functioning in small/medium scales with high employment generation and foreign exchange potential. But the pollution control mechanisms among these units are extremely weak. To some extent the pollution enforcement agencies (say the Pollution Control Boards in India) followed a lenient attitude to industries on account of its socio economic contributions and low investment capacity towards pollution control. Unfortunately, this approach further discouraged the industries to introduce successful pollution management strategies either through effective effluent treatment or through production process change through cleaner production technologies. This paper is an attempt to examine the socio economic benefits and environmental impacts of the rapid industrial growth in Tiruppur, a major textile industrial cluster in South India. Besides, the limitations of the existing pollution control practices and the scope for cleaner production approaches among these industrial units are also examined.

      Full paper to be downloaded (as a pdf-file)

Paper Giver 2: Yogesh C. Joshi, Lecturer in Economics, Sardar Patel University, Anand, India, and Rajiv Kurulkar, Management Consultant, Vadodra, India

Paper 2 Title: Greening the Golden Corridor: Exploring the possibilities in Ankleshwar and Vapi Industrial Estates of Gujarat, Western India

Paper Abstract: The State of Gujarat has been among one of the top industrialized states in India. During last decade and more, consistently it has maintained a higher pace of industrialisation and economic development. Gujarat ranks second in respect of statewise percentage share in Net Value added by manufacturing factory sector of India among all the states (Socio-Economic Review, Gujarat State, 2002-03). In yearr 2000-01 the net value added by manufacture under factory sector was Rs. 19,149 Cr. (Rs. 19,1490 million). According to annual survey of industries 2000-01, the industry group of chemical and chemical products accounted for about 48.72 percent of the net value added by the factory sector, followed by textiles (8.02 percent) in Gujarat.
The nature of chemical and chemical products group industries in the region is highly polluting. An attempt has been made in this paper to study Ankleshwar and Vapi industrial estates. The problem of pollution in these estates and efforts made to tackle this problem are studied. The paper critically discusses the role of various stakeholders as of now and its socio-economic and environmental consequences for the region and for the economy of Gujarat. Based on the conclusions the policy implications for greening of these industrial estates and the “Golden Corridor” are being suggested. The implementation of these will help in pursuing sustainable development in the state. The study is based on secondary sources of information and getting first hand information through personally contacting related experts in the two industrial estates.

      Full paper to be downloaded (as a pdf-file)

Paper Giver 3: Faizal Yahya, South Asian Studies Programme, Faculty of Arts and Social Sciences, National University of Singapore

Paper 3 Title: The Software Industry: India´s Economic Powerhouse

Paper Abstract: The emergence of India as an attractive outsourcing destination for multinational corporations around the world is based on India’s strengths in software development. Despite having one of the highest illiteracy and poverty rates in the world, India has managed to produced competent and skilled information technology (IT) workers. India produces every year approximately 220 000 software and computer science engineers. In the southern Indian city of Bangalore alone, often regarded as India’s “Silicon Valley” produces some 25 000 software and computer science engineers, almost as many as the United States (US). The potential for the IT industry to enhance India’s economic development is quite evident with a consistent annual growth rate of 50 percent or more since 1991. The IT industry in India earned around US $ 8 billion in export services at the end of 2002. However, the Indian IT industry mainly caters to overseas markets because of low domestic demand. The rate of penetration for computers in India is one of the lowest in the world. India’s IT industry contributes around 2 percent of its GDP, but PC penetration is just about 6 per 1,000 people. Internet penetration in India has been able to reach just 1 percent of the total population, with 10 million users and IT spending as a percentage of GDP is just 0.8 percent. In comparison countries like China where IT contributes 7 percent of GDP has a PC penetration of 16 per thousand people.
The creation of a fast expanding Indian IT middle class earning upwards of US $ 4000 per year and the creation of more IT and engineering colleges has not made a significant impact in reducing the disparity gap and some would argue it actually increases the disparity. The infrastructural limitations to sustaining the “IT boom” in India is becoming obvious with the need for more investments in roads, power generation, buildings, telecommunications and even airports. The ongoing strategy to maintain the cost advantage of an IT capital such as Bangalore has been privatization and initiatives to attract more foreign direct investments into establishing software technology parks (STPs) and MNC subsidiaries. The inability of Bangalore to maintain its cost advantage in the IT industry will cause more MNCs to explore other IT locations in India such as Hyderabad and Chennai or even shifting to alternative countries like Malaysia or the Philippines. This paper aims to examine the challenges facing India’s IT industry in relation to software development and its outsourcing potential. These challenges also have an internal and external dimension and India has to overcome them to sustain growth in its IT industry.

      Full paper to be downloaded (as a pdf-file)