The Biochar Blog

Posts Tagged ‘Opportunities’

This report is the most comprehensive treatment of the biofuels market available. Worldwide data is provided on biorefineries, conversion and separation technologies, manufacturing, research and development, organic biofuels, consumption, capacity, components and competition.

This report delves into the global efforts to develop technologies that improve the refining processes associated with many different types of biofuels and its growing consumption among nations throughout the next few decades.

Biofuel is expected to become a major renewable resource to produce fuel, electricity, heat, and other sources of power. To compete with other energy types will require development and implementation of an enhanced biorefinery process that minimizes its impact on local environments. Developing sustainable fractionation and separation technologies will be a key factor for the success of refining biomasses into renewable energy.

Biorefinery technology differs from traditional oil based refinery technology because it will be mainly water-based. Today’s biofuels involve either ethanol or diesel, with the former accounting for roughly 90 percent of the market. Brazil, the United States, and China are the greatest producers. More than half of the world’s bioethanol is generated from sugar cane; the rest comes mainly from corn. Biodiesel is mostly derived from rapeseed and sunflower.

TABLE OF CONTENTS
Chapter 1: Executive Summary
Outlook for Biofuel Consumption
External Factors Affect Growth of Biofuels
Food Prices Fuel Biomass Debate
United States Remains Hotbed of Biomass Activity
Biofuel Technology Research
Global Market Values
Manufacturing, by Country, 2009 and 2014 (in $ millions)
Shipments of Organic Biomass Feedstocks
Imports of Organic Biomass
U.S. Shipments of Biomass Conversion Technology Components
U.S. Backs Biofuel Innovations
Federal Funding Fuels Innovation
Innovations in Biorefineries
Innovations in Biofuel Processing
Biofuel Energy Policy Fuels Debate
Biofuel’s Effect on Food Prices
Biofuels Lobbying Efforts
Global Policies toward Biofuels
Market Value Forecast Through 2014

Chapter 2: Introduction and Overview
Report Scope
Methodology
Terminology
Future Biomass Conversion Technologies
First- and Second-Generation Liquid Biofuels
Ethanol Production Processes
Biomass Feedstocks

Chapter 3: World Bioenergy Activities & Technologies
External Factors Affect Growth of Biofuels
Food Prices Fuel Biomass Debate
United States Remains Hotbed of Biomass Activity
Biofuel Technology Research
Reduction of Greenhouse Gases

Chapter 4: World Biomass Market Trends
Shipments of Organic Biomass Feedstocks
Manufacturing, 2004 and 2009 (in $ thousands)
Biodiesel Trade Market in Flux
Imports of Organic Biomass
U.S. Shipments of Biomass Conversion Technology Components
Imports of Technology Components
Biomass Conversion Technology Exports
Market Value Forecast Through 2014

Chapter 5: Manufacturer Profiles
Archer Daniels Midland (ADM)
Bunge
CHS
Royal Dutch Shell
Foster Wheeler
Wilmar
Tenaska

Chapter 6: Innovations in Biofuel Technology
U.S. Backs Biofuel Innovations
Diversity of Cellulosic Feedstocks
Federal Funding Fuels Innovation
DOE Funds Advanced Biofuels Projects
Innovations in Biorefineries
Whole Crop Biorefineries
Ligno Cellulosic Feedstock Biorefineries (LCFBR)
Green Biorefineries
Two Platform Concept Biorefinery (TPCBR)
Marine Biorefinery (MBR)
Thermo Chemical Biorefinery (TCBR)
Innovations in Biofuel Processing
Advances in Ethanol Separation Technologies
Germ and Fiber Separation
Enzymatic Dry Milling
Dry Fractionation
Ammonia Process in the Wet Mill
Continuous Membrane Reactor for Starch Hydrolysis
Alkali Wet Milling
High-Gravity Fermentation
Improved Yeast
Conversion of Pentose Sugars to Ethanol
Enzymes for Liquefaction and Saccharification
Enzymes to Reduce Sulfur Dioxide
Distillation Technology
Control Systems
Environmental Technologies
Biodiesel Derived From Tallow

Chapter 7: Consumers of Biofuels
Biofuel Energy Policy Fuels Debate
Feedstock Implications
Legislation Favors E85 Production
Biofuel’s Effect on Food Prices
Studies Point to Ethanol’s Effect on Food Prices
Biofuels Lobbying Efforts
Global Policies Toward Biofuels
European Union Changes Biofuel Composition
Japan Continues Import Strategy
India Ethanol Blends Fluctuate
China Steps Up Corn Ethanol Production

The world’s dependence on crude oil for transportation is particularly marked, with the International Energy Agency (IEA) estimating that fuels from crude oil currently supply about 96% of the worldwide energy demand for transport purposes.

As the world’s population grows and developing countries look to expand their economies, this insatiable demand for fossil fuels is unlikely to show any sign of easing, with oil and gas accounting for 60% of the world’s increasing energy demand between now and 2030. Furthermore, with most significant reserves of fossil fuels unevenly distributed throughout the world, energy security is set to become an increasingly critical economic and political issue over the coming decades. Real or perceived disruptions to the global supply of fossil fuels – notably crude oil – are likely to grow in frequency and cause wild fluctuations in the price of energy, as they have done so in the past.

However, one of the most pressing reasons for seeking alternative sources of energy and fuel lies in the form of climate change. The combustion of fossil fuels releases carbon dioxide (CO2), a potent ‘greenhouse gas’ (GHG), which are considered to be responsible for ‘global warming’. According to the IEA, if no changes are made to the world’s existing energy economy, related emissions of CO2 will grow marginally faster than energy use, meaning that by 2030 global CO2 emissions will be more than 50% higher than today. Over two-thirds of that projected increase in emissions is expected to come from emerging economies, such as India, China – both of which are set to rely heavily on coal-based power stations to drive their rapidly developing economies.

Key features of this report

• Analysis of biofuels by type, resources available, production volumes, production technology capacity installed.

• Market projections to 2020, including an evaluation of energy type and national and international growth potential.

• Overview of trends impacting on and shaping innovation in the energy market.

• New renewable energy technology analysis including innovation, capacity and biofuels investment.

Scope of this report

• Achieve a quick and comprehensive understanding of how global market trends and legislation are influencing the development of the biofuels industry.

• Realize up to date competitive intelligence through a comprehensive review of global markets in the biofuels energy industry between 1990 and 2008.

• Assess the emerging trends in the biofuels industry – Biomethanol, Hydro Thermal Upgrading (HTU) diesel, Fischer-Tropsch (FT) diesel, Lignocellulosic ethanol, Algae fuel, Photo-bioreactors carbon emission absorption.

Key Market Issues

• Environmental regulations: Environmental targets set to control Carbon dioxide emissions globally are creating a path for lower carbon emission fuel technologies.

• Energy security:- Oil pricing structures are volatile and uncontrollable, due to the majority imported from non-domestic countries. This volatility is likely to increase as reserves of the natural resources decline.

• Resource allocation: Some of the currently available biofuels have a number of disadvantages that are related to their feedstock. The current costs of rapeseed biodiesel and ethanol from cereals or beets are much higher than the costs of petrol or diesel, with substantial subsidies required to make them competitive. Second generation biofuels have been developed due to limitations of first generation biofuels, primarily that the resources used threatens food supplies.

Key findings from this report

• Worldwide production of biodiesel reached 11,016m liters per annum, with the EU representing 72% of that global biodiesel production and consumption.
• Germany, France, Italy, the UK and Austria were the largest biofuels consumers in the EU in 2008. The USDA forecasts that biofuels consumption in the EU will continue to grow throughout 2009, despite the economic downturn. The increase is a result of mandates and tax incentives.
• There are currently 192 bioethanol production plants in the US, which together have a production capacity of 36,300m liters per year.
• The US accounted for 24% of the global biodiesel market in 2008 – accounting for 2,650m liters per annum.
• It is also notable that Brazil is by far the world’s largest exporter of ethanol at 3.5bn liters (from production of 19bn liters). Production is estimated by the IEA to increase to over 4bn liters in 2009. Most exports go to the US, Europe, Korea and Japan.

Key questions answered

• What are the drivers shaping and influencing development in the biofuel industry?
• How will biofuels production share perform to 2020? What are the opportunities?
• What are the forecast market growth rates 2008-2030? Which markets will see the highest value growth and which the highest volume growth?
• Which regions and countries offer the greatest opportunity for growth?

Table of Contents :
Table of Contents
Next Generation Biofuels
Executive summary 14
What are biofuels? 14
Next generation biofuels 15
Industry forecasts for biofuels 16
Biofuels drivers and inhibitors 17
The biofuels economy 18
Biofuels market size and forecasts 19
Biofuels policies and regulations 20
Chapter 1 Introduction 22
Audience 22
How to read this report 22
Chapter 2 What are biofuels? 26
Summary 26
World energy demand 27
Climate change 27
Renewable energy 28
Biomass 30
What is biomass? 30
Population, energy consumption and biomass 31
Regional resources 32
What are biofuels? 39
Solid biofuels 40
Liquid biofuels 40
Gas biofuels 41
Biofuels in current use 41
Ethanol 41
Distribution, storage and blending 42
End-use 42
Biodiesel 42
Distribution, storage, blending 43
End-use 43
Chapter 3 Next generation – advanced biofuels 46
Summary 46
Introduction 47
Second generation biofuels 49
Second generation biofuels under development 51
Biohydrogen 51
BioDME 51
Biomethanol 51
Butonal and Isobutanol 52
Dimethylfuran (DMF) 52
Hydro Thermal Upgrading (HTU) diesel 52
Fischer-Tropsch fuels 52
Bioconversion of biomass to mixed alcohol fuels 53
Wood diesel 53
Key players in second generation biofuels 53
Market possibilities for second generation biofuels 54
Third generation biofuel 55
Algae fuel 55
Background 55
Limitations of previous biofuels 56
Algae types 56
Algae cultivation 57
Photo-bioreactors 57
Closed loop systems 57
Open pond systems 58
Algae fuel potential 58
Development timeline 60
Aircraft biofuels testing 61
Key players for third generation biofuel 64
Market possibilities for algae biofuel 65
Chapter 4 Forecasts for biofuels 68
Summary 68
Introduction 69
Economic competitiveness of biofuels and biomass 69
Biofuels technology development 72
Biofuels drivers and inhibitors 73
Chapter conclusion 76
Chapter 5 Biofuels drivers and inhibitors 80
Summary 80
Market background 81
Drivers of the biofuels market 85
Greenhouse gases and environmental concerns 85
Regulatory incentives/pressure 86
Concern about energy security 88
Rising cost of existing fuel supplies 88
Consumer pressure 90
Inhibitors of the biofuels market 91
The biofuels economy 92
Sustainability concerns and the rising price of food crops 92
Limited biofuels infrastructure 93
Biomass and land availability 94
Chapter 6 The biofuels economy 98
Summary 98
Introduction 99
American market 99
American Recovery and Reinvestment Act of 2009 100
Biofuels new direction away from corn-based ethanol 101
The biofuels economy 102
Production costs 102
Cost of distribution 103
Cost at filling station 105
Third generation algae fuel costs 108
Algae fuel leading players costs comparison 110
Transport fuel blends 113
Car costs and fuel efficiency 114
Chapter conclusion 116
Chapter 7 Biofuels market size and forecasts 120
Summary 120
Worldwide energy demand 121
Biofuels market sizing 124
Worldwide 124
Ethanol 124
Biodiesel 127
Europe 130
Ethanol 130
Biodiesel 134
US 141
Ethanol 141
Biodiesel 145
Brazil 147
Ethanol 147
Biodiesel 150
India 153
India’s fuel economy 153
Ethanol 153
Biodiesel 155
China 157
China’s fuel economy 157
Ethanol 157
Biodiesel 158
China working with the US for biofuels development 159
Chapter 8 Biofuels policies and regulations 162
Summary 162
Introduction 164
Policy frameworks 165
Renewable energy targets 166
Kyoto Protocol 166
European Union 166
US 169
Renewable Fuel Standard (RFS) 169
Renewable Portfolio Standards (RPS) 170
Developing nations 171
Biofuels targets 172
Biofuels policy overview by region 173
The European Union 173
Biofuels Directive 173
Directive 2003/96/EC 174
Incentives for biofuels 174
Tax incentives 175
The United States 177
US Energy Policy Act 2005 177
Brazil 178
Proalcool Program 178
India 179
Biodiesel policy 179
Bioethanol policy 180
China 181
National Biomass Ethanol Gasoline Project 181
The Renewable Energy Law of the People’s Republic of China 181
Chapter conclusion 182
Report conclusion 183
Abbreviations 186
Energy content and conversion rates 187
Index 189

List of Figures
Figure 2.1: World renewable energy, 2008 30
Figure 2.2: Current and predicted EU biomass resources (Mtoe/y) 33
Figure 2.3: Current and potential US biomass resources (Million dry tonnes/y), 2005 34
Figure 2.4: Potential power generation from biomass among ASEAN countries (MW) 36
Figure 2.5: Breakdown of currently available biomass in China by type 37
Figure 2.6: Maximum regional bioenergy production potential, 2050 38
Figure 2.7: Typical oil extraction from 100kg of oil seeds (kg) 44
Figure 3.8: Global biosphere, 1998 60
Figure 3.9: Biofuels time period to availability (years), 2009 61
Figure 3.10: Cushing, OK WTI Oil Spot Price FOB prices (Dollars per Barrel), 1986-2009 66
Figure 4.11: Relative competitiveness of alternative energies in five years, 2009 69
Figure 4.12: Relative economic competitiveness of biofuels now and in the next five years, 2009 70
Figure 4.13: What proportion of global fuel production will biofuels account for by 2020? 71
Figure 4.14: Within how long will biofuels account for the primary source of global fuel production? 72
Figure 4.15: Which regions will lead the development of biofuels over the next five years? 73
Figure 4.16: How important will the following factors be in driving the biofuels market over the next five years? 74
Figure 4.17: How important will the following factors be in inhibiting the biofuels market over the next five years? 75
Figure 4.18: Biofuels impact on global food crop prices, 2009 76
Figure 5.19: Projected world energy demand to 2030 (Mtoe) 82
Figure 5.20: Growth in energy demand by region (2000-2030) 83
Figure 5.21: Projected worldwide oil consumption (million barrels per day), 2005-2025 84
Figure 5.22: Average annual oil price (US$ per barrel), 2008 89
Figure 5.23: Opting for green energy is one behavioural aspect of rising environmental attitudes 90
Figure 5.24: The potential biomass availability of EU15, AC10 and/or Europe according to five studies (left part of the figure) 94
Figure 6.25: Cost of distribution and dispensation of various fuels from a central production facility to a filling station (€/GJ) 105
Figure 6.26: Costs of various biofuels at the filling station using existing technology (2004) 106
Figure 6.27: An algae production process, 2009 109
Figure 6.28: Algal fuel capacity projections 2009-2014, 2009 112
Figure 6.29: Gasoline ethanol (kpa/%v/v), 2008 114
Figure 6.30: Car costs (€) and fuel efficiencies (km/GJ of fuel) of passenger cars by fuel and engine system 115
Figure 7.31: Worldwide biofuels fuel production volume (billion liters), 2008 123
Figure 7.32: Global bioethanol production growth (thousand tons of oil equivalent), 1998-2008 126
Figure 7.33: Top bioethanol producing countries (thousand tons of oil equivalent), 2008 127
Figure 7.34: Biodiesel (million L/a), 2009 129
Figure 7.35: Bioethanol in Europe (million L/a), 2008 131
Figure 7.36: Biodiesel production in Europe (million liters/annum), 2009 136
Figure 7.37: EU market share of biodiesel production in 2008 (%), 2009 138
Figure 7.38: Projected US ethanol production (billions of gallons), 2006-2012 142
Figure 7.39: US ethanol market revenue forecast ($bn), 2006-2012 143
Figure 7.40: US bioethanol development (million L/a), 2009 144
Figure 7.41: US biodiesel (million L/a), 2009 147
Figure 7.42: Brazil biofuels development (million L/a), 2009 150
Figure 8.43: Renewable fuels targets in the US (billions of gallons per year), 2006-2012 170
Figure 8.44: EU biofuels targets, 2008 174

List of Tables
Table 2.1: World renewable energy, 2008 29
Table 2.2: Population, energy consumption and biomass contribution in selected regions, 2005 31
Table 2.3: Current and predicted EU biomass resources (Mtoe/y) 32
Table 2.4: Current and potential US biomass resources (Million dry tons/y), 2005 34
Table 2.5: Potential power generation from biomass among ASEAN countries (MW) 35
Table 2.6: Breakdown of currently available biomass in China by type 37
Table 2.7: Maximum regional bioenergy production potential, 2050 38
Table 2.8: Typical oil extraction from 100kg of oil seeds (kg) 44
Table 3.9: Comparison of first and second generation biofuels 48
Table 3.10: Biofuels comparison (Liters of oil yields (hectares/year)), to 2009 59
Table 3.11: Viable Bio-SPK feedstock alternatives, 2009 61
Table 3.12: Fuel property comparisons: Neat, 2009 63
Table 3.13: Fuel property comparisons: Blends, 2009 64
Table 5.14: Projected world energy demand to 2030 81
Table 5.15: Growth in energy demand by region (2000-2030) 82
Table 5.16: Projected worldwide oil consumption (million barrels per day), 2005-2025 84
Table 5.17: CO2 equivalent emissions savings from biofuels (g/km), 2006 85
Table 5.18: Average annual oil price (US$ per barrel), 2008 88
Table 5.19: Key barriers for biofuels 91
Table 6.20: Production costs of biofuels from various crops 103
Table 6.21: Cost of distribution and dispensation of various fuels from a central production facilityto a filling station (€/GJ) 104
Table 6.22: Costs of various biofuels at the filling station using existing technology (2004) 106
Table 6.23: Cost comparison of biofuels with gasoline fossil fuels 107
Table 6.24: Cost estimates of various biofuels at the filling station using future technology, post- 2010 108
Table 6.25: Cost of harvesting, dewatering and drying algae, 2009 110
Table 6.26: Top biofuels companies, 2009 111
Table 6.27: Algal fuel capacity projections 2009-2014, 2009 112
Table 7.28: Comparison of worldwide fuel production from hydrocarbon sources versus biomass sources, 2005 122
Table 7.29: Worldwide biofuels fuel production volume (bn liters), 2008 122
Table 7.30: Amounts of raw materials to meet worldwide fuel demand, 2005 123
Table 7.31: Global bioethanol production (thousand tons of oil equivalent), 2008 125
Table 7.32: Biodiesel (million L/a), 2008 128
Table 7.33: Bioethanol in Europe (million L/a), 2008 130
Table 7.34: EU bioethanol production, supply and demand (1,000MT) 132
Table 7.35: EU bioethanol production – number of plants and capacity (1,000 MT) 132
Table 7.36: Feedstock use for bioethanol production (1,000MT) 133
Table 7.37: EU bioethanol consumption – main consumers (1,000 MT) 134
Table 7.38: EU bioethanol and gasoline consumption (Ktoe) 134
Table 7.39: Biodiesel production in Europe (millions liters/annum), 2009 135
Table 7.40: EU Biodiesel production – number of plants and capacity (1,000 MT) 137
Table 7.41: EU market share of biodiesel production in 2008 (%), 2009 138
Table 7.42: Feedstock use for biodiesel production (1,000MT), 2009 139
Table 7.43: EU biodiesel consumption (1,000MT), 2009 140
Table 7.44: EU biodiesel and diesel consumption (Ktoe), 2009 140
Table 7.45: Projected US ethanol production (billions of gallons), 2006-2012 141
Table 7.46: US ethanol market revenue forecast (US$bn), 2006-2012 142
Table 7.47: US bioethanol development (million L/a), 2009 143
Table 7.48: Existing and future ethanol capacity in the US, 2009 145
Table 7.49: US biodiesel (million L/a), 2009 146
Table 7.50: Ethanol profile comparison of the US and Brazil (2006) 148
Table 7.51: Brazil biofuels development (million L/a), 2009 149
Table 7.52: Brazilian biodiesel production, supply and demand (January-December, 000 Liters), 2009 151
Table 7.53: Brazilian fuel consumption matrix (000 m3) 151
Table 7.54: Brazilian soybeans and products production (000 hectares, 000 metric tons) 152
Table 7.55: Brazilian cotton and products production (000 hectares, 000 metric tons) 152
Table 7.56: Projected demand and supply of ethanol in India for 5% blend with gasoline 153
Table 7.57: India’s ethanol requirement for 5% blending with gasoline sugar 154
Table 7.58: India’s production & distribution of molasses and alcohol/ethanol in sugar (million Tons/ million Liters), 2008 155
Table 7.59: Projected demand for gasoline and diesel in India to 2012 (MT) 156
Table 7.60: Diesel and biodiesel demand in India using Jatropha (MT) 157
Table 7.61: China’s major biodiesel plants production capacity (MT), 2008 159
Table 8.62: Biofuels infrastructure profiles,Q209 165
Table 8.63: Mechanisms to incentivize renewable energy generation 166
Table 8.64: EU renewable energy targets for 2020 (%) 168
Table 8.65: Renewable fuels targets in the US (billions of gallons per year), 2006-2012 169
Table 8.66: Biofuels energy targets 172
Table 8.67: Biofuels policy overview of selected countries 182 

 For More information please contact :

http://www.aarkstore.com/reports/Next-Generation-Biofuels-Market-drivers-growth-opportunities-and-regulatory-change-38029.html

Incoming search terms:

• eu biochar

GLOBALIZATION- OPPORTUNITIES AND CHALLENGES

(with impact on Indian Economy)

Introduction

Indian economy had experienced major policy changes in early 1990s. The new economic reform, popularly known as, Liberalization, Privatization and Globalization (LPG model) aimed at making the Indian economy as fastest growing economy and globally competitive. The series of reforms undertaken with respect to industrial sector, trade as well as financial sector aimed at making the economy more efficient.

Globalization has many meanings depending on the context. In context to India, this implies opening up the economy to foreign direct investment by providing facilities to foreign companies to invest in different fields of economic activity in India, removing constraints and obstacles to the entry of MNCs in India, allowing Indian companies to enter into foreign collaborations and also encouraging them to set up joint ventures abroad; carrying out massive import liberalization programs by switching over from quantitative restrictions to tariffs and import duties, therefore globalization has been identified with the policy reforms of 1991 in India.

Impact of Globalization of Indian Economy

At the present, we can say about the tale of two Indias: We have the best of times; we have the worst of times. There is sparkling prosperity, there is stinking poverty. We have dazzling five star hotels side by side with darkened ill-starred hovels. We have everything by globalization, we have nothing by globalization.

Though some economic reforms were introduced by the Rajiv Gandhi government (1985-89), it was the Narasimha Rao Government that gave a definite shape and start to the new economic reforms of globalization in India. Presenting the 1991-92 Budget, Finance Minister Manmohan Singh said: After four decades of planning for industrialization, we have now reached a stage where we should welcome, rather fear, foreign investment. Direct foreign investment would provide access to capital, technology and market.

In the Memorandum of Economic Policies dated August 27, 1991 to the IMF, the Finance Minister submitted in the concluding paragraph: The Government of India believes that the policies set forth in the Memorandum are adequate to achieve the objectives of the program, but will take any additional measures appropriate for this purpose. In addition, the Government will consult with the Fund on the adoption of any measures that may be appropriate in accordance with the policies of the Fund on such consultations.

The Government of India affirmed to implement the economic reforms in consultation with the international bank and in accordance of its policies. Successive coalition governments from 1996 to 2004, led by the Janata Dal and BJP, adopted faithfully the economic policy of liberalization. With Manmohan Singh returned to power as the Prime Minister in 2004, the economic policy initiated by him has become the lodestar of the fiscal outlook of the government.

The Bright Side of Globalization

The rate of growth of the Gross Domestic Product of India has been on the increase from 5.6 per cent during 1980-90 to seven per cent in the 1993-2001 period. In the last four years, the annual growth rate of the GDP was impressive at 7.5% (2003-04), 8.5% (2004-05), 9% (2005-06) and 9.2%(2006-07). Prime Minister Manmohan Singh is confident of having a 10% growth in the GDP in the Eleventh Five Year Plan period.

The foreign exchange reserves (as at the end of the financial year) were $ 39 bn (2000-01), $ 107 bn (2003-04), $ 145 bn (2005-06) and $ 180 bn (in February 2007). It is expected that India will cross the $ 200 bn mark soon.

The cumulative FDI inflows from 1991 to September 2006 were Rs.1, 81,566 crores (US $ 43.29 bn). The sectors attracting highest FDI inflows are electrical equipments including computer software and electronics (18 per cent), service sector (13 per cent), telecommunications (10 per cent), transportation industry (nine per cent), etc. In the inflow of FDI, India has surpassed South Korea to become the fourth largest recipient.

India controls at the present 45% of the global outsourcing market with an estimated income of $ 50 bn.

In respect of market capitalization (which takes into account the market value of a quoted company by multiplying its current share price by the number of shares in issue), India is in the fourth position with $ 894 bn after the US ($ 17,000 bn), Japan ($ 4800 bn) and China ($ 1000bn). India is expected to soon cross the trillion dollar mark.

As per the Forbes list for 2007, the number of billionaires of India has risen to 40 (from 36 last year)more than those of Japan (24), China (17), France (14) and Italy (14) this year. A press report was jubilant: This is the richest year for India. The combined wealth of the Indian billionaires marked an increase of 60 per cent from $ 106 bn in 2006 to $ 170 bn in 2007. The 40 Indian billionaires have assets worth about Rs. 7.50lakh crores whereas the cumulative investment in the 91 Public Sector Undertakings by the Central Government of India is Rs. 3.93 lakh crores only.

The Dark Side of Globalization

On the other side of the medal, there is a long list of the worst of the times, the foremost casualty being the agriculture sector. Agriculture has been and still remains the backbone of the Indian economy. It plays a vital role not only in providing food and nutrition to the people, but also in the supply of raw material to industries and to export trade. In 1951, agriculture provided employment to 72% of the population and contributed 59% of the gross domestic product. However, by 2001 the population depending upon agriculture came to 58% whereas the share of agriculture in the GDP went down drastically to 24 per cent and further to 22% in 2006-07. This has resulted in a lowering the per capita income of the farmers and increasing the rural indebtedness.

The agricultural growth of 3.2% observed from 1980 to 1997 decelerated to two per cent subsequently. The Approach to the Eleventh Five Year Plan released in December 2006 stated that the growth rate of agricultural GDP including forestry and fishing is likely to be below two per cent in the Tenth Plan period.

The reasons for the deceleration of the growth of agriculture are given in the Economic Survey 2006-07: Low investment, imbalance in fertilizer use, low seeds replacement rate, a distorted incentive system and lo post-harvest value addition continued to be a drag on the sectors performance. With more than half the population directly depending on this sector, low agricultural growth has serious implications for the inclusiveness of growth.

The number of rural landless families increased from 35 %in 1987 to 45 % in 1999, further to 55% in 2005. The farmers are destined to die of starvation or suicide. Replying to the Short Duration Discussion on Import of Wheat and Agrarian Distress on May 18, 2006, Agriculture Minister Sharad Pawar informed the Rajya Sabha that roughly 1, 00,000 farmers committed suicide during the period 1993-2003 mainly due to indebtedness.

In his interview to The Indian Express on November 15, 2005, Sharad Pawar said: The farming community has been ignored in this country and especially so over the last eight to ten years. The total investment in the agriculture sector is going down. In the last few years, the average budgetary provision from the Indian Government for irrigation is less than 0.35%.

During the post-reform period, India has been shining brilliantly with a growing number of billionaires. Nobody has taken note of the sufferings of the family members of those unfortunate hundred thousand farmers.

Further, the proportion of people depending in India on agriculture is about 60 % whereas the same for the UK is 2 %, USA 2 %and Japan 3 %. The developed countries, having a low proportion of population in agriculture, have readily adopted globalization which favors more the growth of the manufacturing and service sectors.

About the impact of globalization, in particular on the development of India, the ILO Report (2004) stated: In India, there had been winners and losers. The lives of the educated and the rich had been enriched by globalization. The information technology (IT) sector was a particular beneficiary. But the benefits had not yet reached the majority, and new risks had cropped up for the losersthe socially deprived and the rural poor. Significant numbers of non-perennial poor, who had worked hard to escape poverty, were finding their gains reversed. Power was shifting from elected local institutions to unaccountable trans-national bodies. Western perceptions, which dominated the globe media, were not aligned with local perspectives; they encouraged consumerism in the midst of extreme poverty and posed a threat to cultural and linguistic diversity.

Social Services: About the quality of education given to children, the Approach to the Eleventh Five Year Plan stated: A recent study has found that 38 per cent of the children who have completed four years of schooling cannot read a small paragraph with short sentences meant to be read by a student of Class II. About 55 per cent of such children cannot divide a three digit number by a one digit number. These are indicators of serious learning problems which must be addressed. The less said about the achievements in health the better. The Approach to the Eleventh Plan concedes that progress implementing the objectives of health have been slow. The Report gave the particulars of the rates of infant mortality (per 1000 live births) for India as 60 against Sri Lanka (13), China (30) and Vietnam (19). The rate of maternal mortality (per 1, 00,000 deliveries) of India is 407 against Sri Lanka (92), China (56) and Vietnam (130).

Growth of Slum Capitals: In his 2007-08 Budget Speech, Finance Minister Chidambaram put forth a proposal to promote Mumbai as a world class financial centre and to make financial services the next growth engine of India. Of its 13 million population, Mumbai city has 54 per cent in slums. It is estimated that 100 to 300 new families come to Mumbai every day and most land up in a slum colony.

The cumulative FDI inflows (until September 2006) to the New Delhi region were of Rs. 27,369 crores and to Mumbai Rs. 24,545 crores. The two spots of New Delhi and Mumbai received 46 per cent of the total FDI inflows into India. The FDI inflows have in no way assisted in improving the health and environment conditions of the people. On the other hand, the financial capital of India and the political capital of India are set to become the topmost slum cities of the world.

To make Globalization Work

Under the phenomenal growth of information technology which has shrunk space and time and reduced the cost of moving information, goods and capital across the globe, the globalization has brought unprecedented opportunities for human development for all, in developing as well as developed countries. Under the commercial marketing forces, globalization has been used more to promote economic growth to yield profits to some countries and to some groups within a country.

India should pay immediate attention to ensure rapid development in education, health, water and sanitation, labor and employment so that under time-bound programmes the targets are completed without delay. A strong foundation of human development of all people is essential for the social, political and economic development of the country.

Though at present India appears to be dominant in some fields of development as in IT-ITES, this prosperity may be challenged by other competing countries which are equipping themselves with better standards of higher education. As detailed earlier, our progress in education has been slow and superficial, without depth and quality, to compete the international standards.

The government should take immediate steps to increase agricultural production and create additional employment opportunities in the rural parts, to reduce the growing inequality between urban and rural areas and to decentralize powers and resources to the panchayati raj institutions for implementing all works of rural development. Steps should be taken for early linking of the rivers, especially in the south-bound ones, for supply of the much-needed water for irrigation.

It should be remembered that without a sustainable and productive growth of the agricultural sector, the other types of development in any sphere will be unstable and illusory. Despite the concerted development in manufacturing and service sectors, despite the remarkable inflow and overflow of foreign reserves, agriculture is still the largest industry providing employment to about 60 per cent of the workforce in the country.

Mere growth of the GDP and others at the macro level in billions does not solve the chronic poverty and backward level of living norms of the people at the micro level. The growth should be sustainable with human development and decent employment potential. The welfare of a country does not percolate from the top, but should be built upon development from the bottom

References:

Globalisation and Poverty: Centre for International Economics, Australia. Globalisation Trend and Issues T.K.Velayudham, Globalisation and India Lecture: Prof .Sagar Jain, University of N.Carolina. Repositioning India in the Globalised World Lecture: V.N.Rai. Globalization of Indian economy by Era Sezhiyan Globalisation and India’s Business prospective Lecture Ravi Kastia. Globalisation and Liberalisation Prospects of New World Order Dr.A.K.Ojha, Third Concept An International Journal of Ideas, Aug 2002. Globalisation: Imperatives, Challenges and the Strategies.