Why have NICs emerged? (WJEC Eduqas GCSE Geography B): Revision Note

Specification links

The notes on this page cover part 1.3.3. of the WJEC Eduqas B specification – What are the causes and consequences of uneven development?

• The reasons for the emergence of Newly Industrialised Countries (NICs) as economic powerhouses in the world economy are.

• The positive and negative consequences of this development in one NIC (the same country chosen in the first strand of 1.3.3).

India as an economic powerhouse

• NICs such as India, Brazil, China, and South Korea have grown rapidly over recent decades due to a combination of globalisation, government reform, and demographic advantage

Background

• India is now the fifth-largest economy in the world (2024)

• It has become a major exporter of IT services, pharmaceuticals, steel, and automobiles

• Strong economic links with the UK, USA, and Japan demonstrate its growing global importance

• Economic reforms in 1991 allowed India to open its markets to international trade and foreign investment

• India’s success has helped reduce poverty—over 250 million people have escaped extreme poverty since 2000 (UNDP, 2024 (opens in a new tab))

India and the world economy

Economic growth

• Economic liberalisation and government policies have led to rapid GDP growth — over 6% annually for the last decade

• Higher wages and an expanding middle class increase domestic spending

• Employment growth in manufacturing, IT, and services

  • India has diversified from agriculture into manufacturing and engineering

  • Industries such as textiles, steel, and automobiles (e.g. Tata Motors, Mahindra & Mahindra) have grown rapidly

• Increased tax revenues allow more spending on healthcare, education, and infrastructure

• Reduced tariffs, privatised state industries, and restrictions on foreign companies were lifted

  made India more attractive to MNCs such as Tata, Infosys, and Samsung

• The government also developed Special Economic Zones (SEZs) offering tax incentives and modern infrastructure to investors (Government of India, 2024 (opens in a new tab))

  • Example: Bangalore’s growth as 'India’s Silicon Valley' has created thousands of high-skilled jobs

Social growth

• Improved access to education, especially for women and young people

  • English-speaking graduates give India a competitive advantage

  • Education also provides a large, low-cost, and skilled workforce

• Increased life expectancy and reduced poverty levels

• Rising urbanisation has expanded access to modern housing, healthcare, and leisure

• Social mobility has improved for many families moving from rural to urban areas

  • A growing middle class (currently over 350 million people) increases spending power and boosts consumer markets

Environmental and technological impacts

• Investment in renewable energy (solar and wind) has grown significantly

• Government schemes promote electric vehicles and waste reduction

• India is developing green technology and playing a larger role in international climate discussions

• India has become a global leader in information technology (IT) and business process outsourcing (BPO) to IT giants like Infosys and Wipro

• The service sector now contributes over 55% of India’s GDP (World Bank, 2024 (opens in a new tab))

Improved infrastructure and global links

• Expansion of transport networks, ports, and airports allows easier trade and travel

• The Golden Quadrilateral Highway Project connects major industrial cities (Delhi, Mumbai, Chennai, Kolkata)

• Investment in communication technology has made India one of the world’s largest digital markets

• India’s membership in international groups such as the G20 and BRICS gives it a voice in global decision-making

Impact of growth on India

Economic impacts

• Inequality remains high — wealth is concentrated in cities and among skilled workers

• Rural regions such as Bihar and Uttar Pradesh lag in development

• Dependence on global markets makes India vulnerable to economic slowdowns

• Inflation and rising property prices reduce affordability for poorer groups

Social impacts

• Rapid urbanisation causes housing shortages, traffic congestion, and pressure on services

• Growth has not been evenly distributed — around 20% of India’s population still lives in poverty (World Bank, 2024 (opens in a new tab))

• Migration from rural areas leads to overcrowded slums in cities like Mumbai and Delhi

• Gender inequality and caste barriers persist in employment and education

Environmental impacts

• Industrialisation has led to pollution of air, water, and land

• India is the third-largest emitter of CO₂ globally (IEA, 2024 (opens in a new tab))

• Deforestation and loss of biodiversity continue in some regions

• Poor waste management in cities threatens health and sanitation