ACME 2016 CHAMBER OF COMMERCE

Prelim 2: CLASH OF THE CONFEDERATION

The curious task of economics is to demonstrate to men how little they really know about
what they imagine they can design.
Trade and cultural links between ancient India and Arabia date back to third
millennium BC. By 1000 AD, the trade relations between southern India and Arabia
flourished and became the backbone of the Arabian economy.
Formal diplomatic relations between contemporary India and Saudi Arabia were
established soon after India gained independence in 1947. Relations between the
two countries have strengthened considerably owing to collaboration in regional
affairs and trade. Saudi Arabia the largest supplier of oil to India, who is one of the
top seven trading partners and the fifth biggest investor in Saudi Arabia.
With

a changed global

geopolitical

environment and increasing economic

interdependence, Saudi Arabia today considers India not only a strategic economic
partner, but also as a potential bridging power that can play a constructive role for
regional peace and stability.
A dispute which occurred due to a disharmony of interests, misuse of the resources,
greed for more power and other issues led to an occurrence of a clash between the
two countries.
In the year 2025, this dispute led to a war, as a result of which India has gone into a
Level 5 State of Emergency where the trade cannot be carried out as the countrys
economic resources are depleting at an alarming rate which has affected the
economy.

The rise in tensions between the two countries had instilled fear among the 3 million
Indian expats in Saudi Arabia and this forced them to return to India. The war had a
drastic impact on the countrys economy. The countrys debt financing has increased
considerably along with the interest and tax payments, GDP is decreasing, inflation
rate is also rising at a dangerous rate and foreign investments have been withdrawn.
In particular, the opportunity cost of military spending, the cost of human lives, the
cost of rebuilding after the devastation of war have all had a drastic impact on the
economy. The aftermath of a war is always not so positive and debt seems to be a
constraint to the economic growth.
Keeping all of the ill effects of the war in mind, as a member of the Indian Chamber
Of Commerce, your task is to draft a detailed report and a power point presentation
in order to advise the Indian government regarding
The strategies to revive and stabilise the Indian economy over a period of 10 years
Please note:
The format of the report must be as follows1. Headings Bold, Times New Roman, 14
2. Body Standard, Times New Roman, 12
3. Page borders and Page numbers on every page
4. Cover page
5. Alignment Justified
6. Line spacing 1.5
7. The minimum length of your report must be 15 pages
The deadline for submission of the PowerPoint presentation and MS Word
report (soft copy) and Report is at 8:00 AM on the 28th of January at the
time of registration.
For further queries, contact:
Johanna Pereira : +91 741 152 0373
A K Mannan
: +91 779 526 8468
Junaid Cotticolon : +91 814 727 2671