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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 country’s

economic resources are depleting at an alarming rate which has affected the

economy.

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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 country’s economy. The country’s debt financing has increased

considerably along with the interest and tax payments, GDP is decreasing, inflationrate is also rising at a dangerous rate and foreign investments have been withdrawn.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 follows-

1. 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 Wordreport (soft copy) and Report is at 8:00 AM on the 28th of January at thetime 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