just search "state of the union." from all of us here at "state of the union," a happy new year to you and yours. fare fareed zakaria is next for our viewers in the united states. welcome to this "gps" special report. i'm fareed zakaria. 2014 will be a year of surpri s surprises. events that no one can predict. but there will be one great spectacle in the spring, an event that never fails to move me deeply. india will hold its national elections. the largest democratic process in human history. more than 700 million people at 800,000 voting booths using 1.3 million machines will cast their ballots. aside from the extraordinary affirmation of democracy, this

election is turning into a pivotal contest, a clash between a rising controversial figure and the sign of an old dynasty. the issues at stake are crucial, not just for india but the entire world. will india push forward to become the next china? the next big global growth engine? or will it relapse into its old, confused ways? india has been growing impressively for 15 years. it's a different place from the stagnant country i grew up in in the 1970s. but the numbers don't look so good anymore. democracy has left a deadlock, delay, and dysfunction. were a billion dreams misplaced? can india right itself? will a democracy make the hard choices? this hour, one-sixth of humanity at a crossroads.

why it matters for america and the world. we'll show you what some have called the country's arab spring, a grassroots movement against corruption. we'll visit an indian state that's growing faster than china. the man who runs that state is gunning for a bigger job, prime minister. then, to bali wood, where you'll meet india's tom cruise, but this guy is now using his celebrity to solve india's toughest problems. first, you think washington is gridlocked? you haven't seen new delhi. let's get started. ♪ >> a country that lives in several centuries simultaneously.

>> india as she points out is a country of profound contradictions. >> india's people at any given time encapsulate all of the multireligions, multilingual, multicultural society. >> so with all those contradictions, how on earth is the country moving forward? >> when foreigners come to india, they see the visible manifestations of the state, the infrastructure and such, as being terrible. and yet, the economy, by and large, continues to do well. how does that happen? >> well, india grows at night when the government sleeps. liberty, equality -- gehrtrand, former ceo of proctor & gamble india, says india has grown despite its broken government. broken because if you think the united states' congress is

chaotic and dysfunctional, look at india's parliament. >> the government is not obliged to implement a law passed by parliament. which sounds ridiculous. >> there was one expectation ten years ago. >> jay ponda is a member of the lower house of parliament. he maintains that democracy has been good for india, but says there have been too many logjams in recent years. >> in the u.s., the congress and senate have rules for how you set agendas. now, our rules go back to before independence, and there are no rules, it just says the agenda is set by consensus. >> if you think consensus is hard to reach in america with two political parties, imagine how little use it can be in india's lower house of parliament which has 37 parties. [ shouts ] in 2011, parliament was adjourned 102 times. and it was only in session for

about 15 weeks out of the year. so the work of governance often happens at the local level. for jae, that means regularly opening his home to constituents from his state of odisha, people like these lecturers who are threatening a hunger strike over pay disparities at state-run colleges. >> equal pay for equal work. >> then, about 14 days a month, he travels to see those who can't make it to the capital, and he actually flies himself. >> flying is actually a little bit like some people would consider yoga or meditation. it relaxes me. and it also helps save a lot of time. >> when he lands -- [ chants ] -- he's greeted with campaign slogans and fanfare. he gets on a motorcycle to make his way through the village --

stopping to talk to people like this handicapped man. >> the government provides tricycles to those who are not quadriplegic, but only whose hands are operational, so he can be mobile. so he has not yet got one of those. >> he will help him navigate the bureaucracy and cut through the red tape to claim his government benefit. >> when campaign in your state, do you feel that what's going to work is if you offer free power, rice? or do you feel as though what's going to work is if you explain how you're going to get policies put in place that will create growth? >> the candid answer is both. if you only do populous policies, you may be able to get by one election or so. but then, the chickens come home to roost, and the numb beb ers add up. if you only talk about investments that pay off in ten years, you aren't going to get elected.

>> the city has a long way to go, but what was once considered a basketcase of india has grown on average about 8% every year for a decade. and it's not just odisha. isn't it extraordinary, with all of the problems, the bureaucracy, the bad politics, if you take average growth over the last ten years, it's 7% -- >> yeah. >> -- so does that mean that a few of the things were fixed, it could be 10%? >> yeah. >> is it the price of democracy? >> well, yes, to some extent it is a price of democracy. but democracies have reformed, have fixed themselves. look at chicago in the 1920s. look at chicago today. look at england. england in the early 19th century. it was a corrupt society. could you buy any job in the government, but then they did the hard work of politics. >> one of the most powerful people in india's government

thinks india can reform and even become the next china. >> i feel that we're just behind china by 10 to 15 years, and we're a democracy, and there's rule of law and the courts are independent. of course, we have to do a lot to improve it further. but the fundamentals are very sound in my view. >> if the economic fundamentals are sound, india's politics does need work. up next, one major hurdle in india's path -- corruption. but there's good news there, as well. india might just have a homegrown solution. ♪ hmm. mm-hmm. [ engine revs ] ♪ [ male announcer ] oh what fun it is to ride. get the mercedes-benz on your wish list at the winter event going on now -- but hurry, the offers end december 31st. [ santa ] ho, ho, ho!

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regardless of how dysfunctional american politics might be, it would be hard to imagine 30% of america's legislators with criminal charges pending against them. that was precisely true for india's lower house of parliament following india's

last elections in 2009. charges ranged from rape and murder to corruption. but something here is changing. the usually apathetic indian middle class is making demands of its government, and from this anger, a movement has emerged. call it "the indian spring." >> the problem that hits 99% of indians is every day i go for a birth certificate and i'm asked for a bribe. i go for a completion certificate for my house, i'm asked for a bribe. >> the former ceo of proctor & gamble in india argues that corruption is endemic across the country, even in small everyday transactions. >> when i die, my children will have to bribe somebody to get a death certificate. now, that birth-to-death corruption is the bain of the problem.

>> arwen goes a step further. he says living honestly is just not possible in india. kajala is a trained engineer who once worked in india's version of the irs. he was so outraged by what he saw in government, he became an anti-corruption activist. >> the people of india are the best people in the world, with the worst government. [ chants ] his inspiration is a frail 74-year-old man named ana hasari, the face of india's anti-corruption movement. in august 2011, thousands rallied around hasari when inspired by none other mahatma gandhi, he went on a hunger strike to end corruption. >> he was being led by a person who was esteemed. no one could raise a finger at him. he brought the spirituality to the entire movement. [ shouts ]

>> his 12-day fast ended with a success of sorts. parliament agreed to consider a bill for a strong independent anti-corruption agency. do you think you were successful in getting the government to respond and adjust? >> the people wanted strong anti-corruption, but the government did not do that. most of the people sitting in the goflt, most of the ministers have directly indulged in corruption. >> and since he couldn't get politicians to listen to him -- he became one of them. if you can't beat them, join them, right? he formed the am amne party, the party of the common man, and that party has found quite success. in december, his party won 28 of the 70 seats in the new delhi state assembly. but not everyone thinks kadriwah is the new leader that india

needs. >> he's a populist demagogue. he's illiberal, a socialist, and he's out of sync. >> people think still of the constitution as something that came from above. >> they met while he was writing the latest book, "india grows at night." he says he has his sights set on the wrong target. what kadriwha rails against is the type of cronyism that in one case alone costs india as much as $40 billion. when higher officials were alleged to have sold off big portions of india's mobile airwaves. >> but that's a problem which really hits about 1% of indians. instead of worrying about corruption at the highest level, worry about the corruption in your neighborhood. >> one of the men at the highest levels of indian government, alawahi, agrees corruption is a daily phenomenon, but he says the government is responding. >> lots of people look at india

and say the corruption is terrible at every level. what would you say to them? >> the notion that india is the only emerging market that is corrupt is complete nonsense. what is true is that worry about corruption and indeed the politicization of corruption in india is immense. to my mind, that's actually to a credit of india. >> meaning? >> meaning that government recognizes -- and we've said this at the highest level -- government recognizes "a," this is a concern, and, "b," it's a legitimate concern. >> the government has adopted a few transparency measures and the anti-corruption bill that new delhi introduced following the hunger strikes, it just passed -- more than two years later. in the end, they do agree on one thing. you think the india that your son will live in is going to be

less corrupt, richer, with a government that is more responsive than the one we currently have? >> absolutely. >> five years from now, will india be less corrupt than it is today? >> of course. india will be less corrupt, less illiteracy, less poverty. i am very upbeat about the country. >> you are? even though you say there are so many things wrong with it? >> that is because the hope is from the people of the country, the people are coming together, protesting. now they're not sitting back. they're not cynics anymore. >> ironically, some people allege that the anti-corruption party has been corrupted itself. it's a charge he denies vigorously, but his anti-corruption platform is increasingly being adopted, at least rhetorically, by other opposition parties who all believe that the upcoming national elections will be a protest against corruption and graft for the first time ever. it's a sign that voters are maturing and demanding better government. up next, can india grow like china?

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when we think of china, we imagine authoritarian land where

things work, where freedom is sacrificed but in return you get strong, economic growth. when we think of india, we think of a messy democracy, of organized chaos, a place where growth is sacrificed for freedom. now, imagine a place in india where both are true, where there is democracy but also strong economic growth. well, the top official of this state might well be leading india after the 2014 national elections. >> if you look at the growth, right, it has been better than china, if you think about it as a country. >> he is not only the richest man from the state of gudrat, but is also the richest man in india. >> what gudrat has demonstrated is that over decades you can attract investment, and with sensible governance, you can really improve. >> you may think that sensible governance is lacking in

america, but india has a way of making us look like a marvel of efficiency. just listen to tata. in 2008, when he was still running india's largest conglomerate -- >> this has been referred to as one man's dream. >> -- tata unveiled the world's cheapest car. initially, he built the factory for the nanowith west bengal, then a communist governed state. when the plant was 80% complete, a local politician accused the group of usurping farmers' land, a false allegation, tata says. >> our walls got breached, materials got stolen. how could we run a plant in such a hostile environment? >> so tata decided to move the thnano operation to gudrat, whe

they provided a business-friendly home instantly. >> in effect, he delivered in three days what other states, which were also trying to woo us, could only offer their best to do. no side deals, no quid pro quos. >> no bribes? >> none whatsoever. >> first generation entrepreneur, dasai embodies the possibilities of gudrat. he was born in a small village where his father was a grain merchant. >> one day, my father told me, now you have to do something, you have to go big city. >> armed with the ambition to help his family overcome what he calls their helpless financial condition, dasai drove a scooter to school. >> i arrived very rough scooter, very old scooter. >> now in the big city, the second largest in gudrat, he drives a ferrari.

and not just any ferrari -- one that used to belong to the formula one racing legend michael schumacher. he probably drives it around surat, the city where he co-founded the group, a textile, entertainment, and real estate company. his dream is for each of his employees to drive a mercedes, a bmw, or an audi. >> surat has a lot of millionaires, very hard work people. >> he chose surat, because it's one of the fastest growing cities in the world. the city produces 40% of india's textiles, and eight out of every ten diamonds in the world are cut or polished here. municipal commissioner das runs surat. >> the per capita income is one of the highest in the country. there's a vibrancy here.

>> even an empire state building and a world trade center. every ten years, the city of 4.5 million adds 2 million new people. >> and that is continuing today because of almost zero unemployment rate, the ability of waters and everything. >> but not everyone has been a part of the growth. imam lives in the muslim slum in surat. >> translator: if you go out, you'll see number-one facilities for everything. but if you visit our slums, all you find is waist and drains. he is working, but he's getting rid of the poor, he's building pala palaces. >> he's talking about the controversially elected and chief minister mody. >> the industrialists seem as

superb administrator who's delivered for nine or ten years very high levels of growth. >> why can't you say that you regret the -- >> on the other hand, journalist tapper, who has interviewed mody, says the chief minister is revialed for failing to stop the 2002 riots, a massacre in which upwards of 1,000 people -- mostly muslims -- were killed. >> mody is perceived as a villain, as the man who presided over the killings of thousand protesters, by either deliberately failing to stop the rioters, and some accounts he gave instructions to the police to permit the rioting so the sanger could be quelled after a certain amount of blood had been shed. >> mody straddles the two realities. the united states has denied him a visa to visit citing his

complicity in the riots, and he is the leading opposition candidate for prime minister in the 2014 national elections. has bujhrat got it right? indians head to the polls in 2014. they're angry with the ruling congress party for its mismanagement of the ruling party, and mody has been dynamic on the campaign trail. if he and his majority gain the votes, he will be the next prime minister. up next, how in the world do you keep track of 1.2 billion people? india has a high-tech solution. avo: the volkswagen "sign then drive sales event is back. which means it's never been easier to get a new passat, awarded j.d. power's most appealing midsize car, two years in a row.

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hello, everyone, i'm fr frederiqricka whitfield with a k of the top stories. the white house is condemning a deadly bombing at a train station in southern russia. at least 16 people were killed in the blast, including a police officer. 34 other people were injured. most troubling for russia, the bombing comes just weeks before the winter olympics in sochi. authorities think the explosion may be the work of a female suicide bomber. >> translator: according to the available information, the explosion was carried out by a female suicide bomber who saw a police officer next to her on the way to the metal detectors. she became nervous and activated

the explosive device. preliminarily, the explosion was equivalent to 10 kilo grams of tnt. >> we'll talk to a terror expert about this attack in 30 miemts from now. 74 people stranded for a week on a ship in antarctica are very close to being rescued. an australian icebreaker is plowing through the ice and could reach them at any moment. this is the latest rescue attempt. a chinese icebreaker failed to get close enough last week. we'll have a live update at 2:00 eastern time. a nationwide manhunt for a suspected bank robber and cop killer appears to be over. police in phoenix, arizona, shot and killed a man saturday after he left a bank with a bag and a gun, and fired at them. the fbi believes he is the same man who killed an officer in mississippi during a bank robbery last week. hours before that robbery, police say the same man tried to rob a bank in atlanta before robbing an atm customer.

i'm fredricka whitfield. fareed zakaria "gps" continues right now. imagine trying to identify every single person in a nation of more than 1.2 billion people. if you cataloged one person every second, the effort would take 38 years. sounds crazy? well, in 2010, india's government began just such an effort, hoping to create the largest personal database in human history. in the waning hours of a hot afternoon in northeast india, noshad waits patiently in a dimly lit room full of laptop computers. he's here with his three sons to get their fingerprints recorded,

their eyes scanned, and their photos taken. his hope is that all of this high-tech gadgetry will give his boys something they've never had before -- an official identity. today, millions of indians like akhtar have trouble proving who they are. that means they're shut out of the basics of modern life, like bank loans and government services. so the government is aiming to give every one of its 1.2 billion residents a 12-digit number, similar to the american social security number, but high tech and more tamper-proof, since it will be linked to his or her fingerprints and iris scan. >> that's a great example of using the most sophisticated technology to solve the challenges of the people who are the most left out. >> nunili is the brains of the

operation. he is the founder of a company that started in 1981 with $250. now it's worth billions with a sprawling campus in banglor, three times larger than google's headquarters. you were one of the founders of infosys, one of the most successful technology companies in india. why would you leave all of that to get involved in trying to create this huge and complex and bureaucratic system in india? >> the prime minister invited me to lead this project. i realize that this project had the kind of project management challenges and technology challenges that i was familiar with, so i could execute on something like this. >> he gathered some of the best minds in india's tech sector, asking them to take a take-up, and contribute to india's version of the moon shot. it was a daunting challenge, even for them. >> i'm not a very religious

person, but i started going to temples, basically. what about response time? >> shrit, a veteran of silicon valley, who helped start webmd, was one of the chief architects of the project. >> the system had to run in 22 languages. it had to deal with a billion people. running tens of thousands of enrollment centers across the country. it is the most complex project that i've, you know, ever been associated with. >> to make sure that multiple i.d. numbers aren't issued to the same person by accident, he and his dream team built a tech center in banglor that checks every new number against the millions that already exist. >> this is the largest such system in the world. >> new enrollments are monitored in realtime. the morning we visited, more than 100,000 i.d.s had been created that day. all told, they've already turned

out more than 500 million i.d.s, covering about half the indian population. the national i.d. is a sort of technological version of the great infrastructure projects in the 19th century in the west. >> yes. >> do you think it will have the same kind of impact as roads tying in the entire country in the united states, or railroads or things like that? >> oh, absolutely. in fact, because we're keying in on the i.d., we think over time, lots and lots of innovative applications will come on this platform. >> the idea's already being used in a number of different ways. badija and his wife live in a small village in the northeastern state of djarkan. he has a job thanks to a government program guaranteeing work in rural areas. but actually getting his wages for that work at the far-off post office was a job in itself.

>> translator: we wouldn't get the money on our first or second visit. it would take two or three days, sometimes a week to get the work done. >> reporter: but since he got his identity card, badijia says things have changed dramatically. [ car horn ] he opened a bank account thanks to his i.d., and just down the road, there's now a mobile atm dough vice -- device that uses a thumbprint for identification. now, instead of hageling with a bunch of bureaucrats, he has his hard-earned cash right at his fingertips. >> the government spends billions of dollars on entitlements and subsidies. you know, if you look at the entitlements like scholarships, pensions, medical benefits. >> and so, in using the i.d., you can get those benefits to the right person -- >> yes. >> -- directly, without any intermediaries and without any

fraud. >> the entire thing in between is electronic. >> his i.d. project could revolutionize the way india does business. but it has also been a lightningrod for controversy. >> everything is being linked up, so that your a datebase citizen. >> an advocate for the poor is one of the project's many critics. she points out some could be denied government services thanks to the i.d., because some welfare programs want to require an i.d. to gain access. >> if you don't appear as a citizen, the fingerprint doesn't work, then you get excluded altogether. >> india's supreme court entered the fray saying no one should be denied benefits for lacking an i.d., and the case is pending. critics of the i.d. also worry about the government having so much access to personal information. >> a number of institutions and agencies that have been started up, like the national intelligence group, they say they're going to keep tabs on

all suspected terrorists, their friends, families, supporters. track all of them. how are they going to track them? >> you know the people have concerns about privacy. should people be worried? >> no, obviously, we should have a very clear privacy architecture. but privacy is about creating some privacy for convenience. you're getting access to all of the benefits and services, so that's a very easy trade-off to make. >> bhatan with his i.d.-enabled bank account would agree. >> translator: life has changed a lot. now we know we have some savings in our hand. next up, another intriguing case of the private sector finding solutions for india's public problems. this time from the country's huge film industry known as "baliwood." and ah, so you can see like right here i can just... you know, check my policy here, add a car, ah speak to customer service,

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in 2012, a television talk show in india drew 90 million viewers. numbers rivaling any super bowl. one of india's biggest film stars decided to use his fame to start a remarkable program -- part journalism, part entertainment -- that's shaken up this country of more than 1 billion people.

meet ahmed kham, the tom cruise of india. he's one of the biggest stars in po bollywood. >> one, two, three, four! >> india produces about twice as many movies per year as hollywood. khan is a big draw at the box office. his 2009 film, three idiots, was one of the highest grossing movies of all time. his latest film, in theater now, "doom 3" is another big hit. but khan took a big risk with another recent career move. he wanted to host and produce a television show, one that would explore some of india's most taboo subjects. [ sirens ]

including its caste system. this is like tom cruise and "60 minutes." >> yes, i agree it's unusual, but it's something that's been troubling me, something i felt like doing. >> the show was called to "truth alone prevails," and also india's official national motto. >> domestic violence. >> khan's goal? a vivid in-depth discussion of some of india's biggest problems in the hope of sparking a national conversation about the direction of the country. each 90-minute episode would focus on a different topic. >> we do a lot of research on each of the topics, and once we've gathered that material, we try to tell it to you in a way that hits home.

>> the first episode examined one of the nation's most troubling social ills -- female feticide, the practice of aborting a fetus because it is female. women outnumber men in india by over 45 million. the problem is so bad that the government actually banned doctors from telling expectant parents the gender of their own fetus. >> the ratio of girls against boys is dramatic, you'll have huge psychological problems across the country. >> some families are so eager to have a boy instead of a girl, one will do almost anything. one woman said she was forced to get an abortion by members of her own family.

the woman told khan she was forced to abort five more daughters in the next eight years. entire communities have been affected. in a satellite interview, khan asked a group of men to raise their hands if they were of marrying age. when he asked them who was married, they all put their hands down. we discovered that there were villages without children and they cannot find anyone to get married. it is absurd levels.

>> once more, the authorities of ten do very little to enforce the law. >> hidden camera sting operation featured on kahn's show caught a slew of doctors providing illegal konsonograms and aborti. the video has been available for several years but said none of the doctors had been punished in court. >> he made a direct appeal to his audience. >> and support him they did. the show's website got so much traffic that it crashed. 90 million people watched and a

khan hit the cover of time magazine. >> well, i was hoping that it would be successful. me and my time believerd in it. we thought every indian will want to watch. >> the roger's government set up courts to more efficiently try these cases just as khan asked. days after another trial the parliament's house passed legislation. and a show about the system was followed by a meeting between khan and prime men ster singh. people are still talking.

>> people are calling from small villages. i didn't know the names of these places. telling me what they thought about the show. >> and in people are reacting in different parts of the countries. >> when you look at the protests against the gang rape in del de? >> will change happen overnight? certainly not. but i hope that one day things will change dramatically. >> season two of the show is expected to air early in 2014. up next i'll give you my take on whether india will make it. is it africa? the middle east?

canada? or the u.s.? the answer is... the u.s. ♪ most of america's energy comes from right here at home. take the energy quiz. energy lives here. to help secure retirements and protect financial futures. to help communities recover and rebuild. for companies going from garage to global. on the ground, in the air, even into space. we repaid every dollar america lent us. and gave america back a profit. we're here to keep our promises. to help you realize a better tomorrow. from the families of aig, happy holidays.

the most important global trend of the last 20 years has surely been the rise of china which has changed economics and culture around the world. and brought india to unlock it's economy. the country'sdemographics alone would be for the next 20 years. that is what is at stake for india and the world for the upcoming national elections. will it finally live up to it's potential? will it look at india today and

despair? everything gets mired in political paralysis. this is true and unfortunate. but the india that we showed you in this report is a moving picture. i left india 30 years ago but have visited every year since. and the picture has gotten brighter and more dynamic and hopeful. the country's economy might be sluggish now, but it has grown faster than any large economy larger than china. governments are aggressively promoting economic reforms. this is not simply a story about one person. that state of 60 million people has grown and other states are

growing fast as well. 20 years of economic growth have transformed the country. the middle class now numbers more than 250 million. technology is giving the new middle class the power to make it's voice heard. they have now become a routine way to petition government and raise awareness. india will never be a china a country where the population directs the nation's economic and political development. in china, the question is whether the new president is a reformer. they will need to order change top down for the country. are indians reformers and can millions of people mobilize change and can they persist in a

way that makes reform inevitable? that is the only way change will come in a democracy like ind thea. and when that change comes, it is likely to be more independent greated in the fabric of the country and more durable. were it to succeed? it could have enduring lessons for the world. it is a pro growth one party state. it is difficult to emyou late. india is a diverse democracy. if it can make the hard choice that is ensure growth and progress, then many manycount countries can find their own path to success. if india's democracy can deliver there might be lessons in there for washington, d.c.

go to our website for parts of my new book. thank you for watching this special. we will be back next sunday with our regular programming. >> hello everyone. look at our top stories this hour. an explosion rocks a train station in russia. more than a dozen people are dead. a manhunt across the u.s. for an alleged cop killer is over. we have the latest. and help is on the way for a chip stu ship stuck in ice. but the rescue ships are running into the same problem. how the people onboard are doing next.