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  Home > Socio-Economic Factors > Public Relations
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1. India's PR spend too low - visibility of India needs enhancement!

Based on our discussions with NRI's in the USA and other parts of the world, we have been advised that our PR needs to be pepped up multifold, from the present budgeted expense of around US$1 million or a few million per year! This should immediately be increased to US$25 million, in order to see the benefits.

2. Why India's PR spend should be bigger - the advantages to us

The present PR budget seems to be inadequate, for lobbying with the various Senators & Advisors in Washington, Think Tanks, Universities, NGO's & the American media. For the size and complexity of a country like India, which has 21 languages and cultures, a history going back to 10,000 years, 17% of the world population, 2.2% of the land mass, 1.4% of the world's GDP but only 0.6% of the world's trade!
In the last 54 years our foreign trade has had a negative growth from 3% to 0.6% of world trade, or minus 500%!It is obvious that 98.6% of the world's buying power [based on GDP], is outside India and 99.4% of the world's trade is also outside India. Therefore, high class lobbying and PR with different organizations in the USA, can only benefit the people of India, in the short, medium and long term.
Obviously India has to export much more, to the outside world. This has many advantages. Exports will improve Governance, Administration, Efficiency in manufacturing and services, cost competitiveness, FDI inflow, latest & best technology will come into the country, more jobs will be created, the infrastructure will have to improve and the standard of living of the people will go up. Indian organizations, in manufacturing or services, will start bench marking with the best, and not with each other, as was mentioned by Claude Smadga, last year at the WEF.

3. Pakistan spends more on PR

Pakistan seems to spend about US$10 million per year. Some Americans have the wrong perception that Pakistan is much better managed than India. Many times, Pakistan is able to convey a wrong impression about India and the Jammu & Kashmir problem, which hurts us as a country, in International forums. So far they are getting away with it! Their PR seems to be for Kashmir & Military needs.

4. Israel's PR spend

It is estimated, that Israel spends about US$100 million in PR and gets nearly 4 to 5 US$ billion, as grants alone! They also benefit in many other ways, such as in trade, tourism, etc.

5. China seems to spend a lot on PR

It is estimated, that even China + Hong Kong + Macau, has stepped up its PR budget to around US$100 million a year. It enjoys the status of the Most Favored Nation, exports nearly US$ 410 billion worth of goods/year to all countries, with a large slice, going to the USA. India with all the hype of IT and a potential Superpower, can only export US$42 billion/year! This includes US$6 billion from software exports.
Present OIL imports are US$17 billion/yr? India's oil needs, will triple by 2007. Oil imports alone, will go from 70 million/ton/year to nearly 210 million, or US$50billion by 2007! India's present exports are only US$42 billion/year. China's is US$ 410 billion/year. China's (+ Hong Kong + Macua) PR spend also benefits its promotion of tourism, 87 million vs 2.5 million to India. The Tourism Industry, world wide, is seven times the size of Information Technology, about US$3700 billion per year, and generates a lot of jobs, as well forces countries to improve their Governance, Administration and Infrastructure. Tourism benefits a country also in trade and investments, since people travel, meet people and then some of them invest in that country. China + Hong Kong attracts nearly US$ 106 billion as FDI against US$ 3 billion for India.

6. Why appropriate PR spending in the USA is important to India

USA, with only 4% of the world's population but with 30% of the world's GDP, is the one of the key and strategic centers of the world's media and thought process for most International and other issues. Many reports emerge from USA and then find their way into the media of other countries, such as, Europe, Middle East, South East Asia, Japan, China, Latin America, etc., all of whom are important for India's growth and survival of trade. Many international opinion makers and think tanks, who matter, operate out of the USA. PR in USA is not only in Washington D.C., but also in all the 51 states and many universitys of America.

7. What NRI's in USA say about advantages of appropriate PR spend

Some NRI Republicans have mentioned that since they are on the President George Bush's, council of CEO's, it may be possible to push a thought process, that India, the largest democracy in the world, should get grants of US$10 billion per year, say for 4 years! For this, a proper PR plan and PR budget has to be allocated. Our PR should be tilted towards the Economy, Trade, Tourism, Heritage of India, Disaster Management, Spirituality of India, Fighting International Terrorism and Military & Defense of India. In that order. Similar studies need to be made for the EU, Japan and other trading blocks.

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