The Indian Middle Class- some data, some views

Posted on November 6, 2007 by indra

The Indian middle class is emerging real strong and is surging ahead as a force to be reckoned with. The success story of India is to a great extent the story of the growth of this class. The Indian middle class was around 15% in 1996, and today it has galloped to 37% at present.

The two major visible aspects of the revolution that has happened in India are the role of IT sector and the women of the society in last two decades or so. The increasing participation of woman in the labour force to sectors that suit it well, have and will have a profound impact in the future of the nation in increasing the value addition to the traditional middle class with increased take home salary as well as living standard.

The McKinsey Global Institute (MGI) has published a new study. Here are some findings.

If India continues its recent growth, average household incomes will triple over the next two decades and it will become the world’s 5th-largest consumer economy by 2025, up from 12th now. Can one think of the scenario if the growth rate hovers around 10% or goes higher up? There may be constraints, but why can’t China be benchmarked?

In 2005 private spending reached about 17 trillion Indian rupees ($372 billion), accounting for more than 60 percent of India’s GDP. In this respect, India is closer to developed economies such as Japan and the United States than are China and other fast-growing emerging markets in Asia. Further, the aggregate consumer spending could more than quadruple in coming years, reaching 70 trillion rupees by 2025, according to the study. The life of the average Indian will change vastly by 2025.

Households earning $1 per person per day

In 1985, 93 percent of the population lived on a household income of less than 90,000 rupees a year, or about a dollar per person per day; by 2005 that proportion had been cut nearly in half, to 54 percent. By McKinsey’s estimate, 431 million fewer Indians live in extreme poverty today than would have if poverty had remained stuck at the 1985 level. May be, If India can achieve above 9 percent annual growth over the next 20 years, there will be none living a life of extreme deprivation.

Rural India has also benefited from this growth: extreme rural poverty has declined from 94 percent in 1985 to 61 percent in 2005, and it will drop to 26 percent by 2025 (if GDP grows at around 7%).
Today only 29 percent of Indians live in cities, compared with 40 percent of the Chinese and 48 percent of Indonesians, and the study projects the level of urbanization will increase to only 37 percent by 2025.

Middle Class

India will witness the rapid growth of its middle class-households with disposable incomes from 200,000 to 1,000,000 rupees a year. That class now comprises about 50 million people, roughly 5 percent of the population. By 2025 a continuing rise in personal incomes will spur a tenfold increase, enlarging the middle class to about 583 million people, or 41 percent of the population.

By 2025 the Indian middle class will dominate the cities. And about three-quarters of India’s urbanites will be part of the middle class, compared with just more than one-tenth today. About 400 million Indian city dwellers-a group nearly 100 million people larger than the current population of the United States-will belong to households with a comfortable standard of living.

And with better affluence, the middle class will certainly bring about some major changes in the governance and society that may be difficult to foresee today.Pawan Verma writes so correctly in the introduction of his newly revised edition of “The Great Indian Middle Class’: ” As India appears to be finally emerging as a global power, one overriding sentiment that infuses the middle-class world-view is a sense of pride.”

Posted in economy | Leave a comment

Booming and Bubbling India-XXV

Posted on November 5, 2007 by indra

“It is undeniable that India is on a new growth trajectory. A trajectory where sustained economic growth of 9-10 per cent per annum – growth rates which were considered impossible even five years ago – seems possible for many years to come,” Prime Minister Manmohan Singh told a conference organised by a business magazine. Indian economy is likely to expand at close to 9 per cent this fiscal and the government may take more steps such as relaxing norms for infrastructure companies to raise funds abroad for sustaining high growth, Finance Minister P Chidambaram said.

Sensex surpasses 20K: Stock market benchmark Sensex achieved the 20K milestone on 29 October in intra-day trading on all-round buying by foreign as well as domestic investors in blue chip stocks led by Larsen & Toubro and Reliance Industries.

Mukesh Ambani becomes world’s richest: Billionaire Mukesh Ambani became the richest person in the world, surpassing American software czar Bill Gates, Mexican business tycoon Carlos Slim Helu and famous investment guru Warren Buffett, courtesy the bull run in the stock market, following a strong share price rally in his three group companies — India’s most valued firm Reliance Industries, Reliance Petroleum and Reliance Industrial Infrastructure Ltd — the net worth of Mukesh Ambani rose to $63.2 billion (Rs 2,49,108 crore).

Sebi curbs fail to slow down markets: Indian stock markets shrugged off concerns of a short-term slowdown in foreign fund inflows, with the Bombay Stock Exchange’s (BSE) benchmark index closing at a new high, and fund managers saying that this was due to continuing inflows from foreign institutional investors (FIIs) and renewed interest from domestic institutions, including mutual fund (MF) houses.

Q2 good show keeps going: Indian Inc report high net up of Q2: HDFC 75%, SAIL 18%, Nestle 40%, Bharti Airtel 87%, and RCom 86%,….. India Inc seems to have warded off adverse macroeconomic factors, including a rising rupee and growing raw material costs, with better cost-management and by reworking their product portfolio.

India Inc invests : India is set to become a potential goldmine as investment announcements surge to Rs 1,75,629 crore for August-September 2007, bulk of which will go to Petroleum sector, especially in Orissa and West Bengal, according to Assocham’s Eco Pulse Study on ‘Investment Announcements’.

Goldman may invest $2 bn: Goldman Sachs, which has invested more than $1 billion in the Indian market, is ready to double or triple its exposure to the country, its chairman and chief executive said in a newspaper interview published on Monday 28 Oct. Dubai’s DP World to invest $500 mn in India: Dubai’s DP World plans to invest $500 million in India over the next two years to development infrastructure at its port operations in the South Asian country, including rail links and roads.

Cisco on track to invest $1.1 bn in India: Cisco Systems Inc is on target to invest the $1.1 billion (Rs4, 337 crore) it committed in 2005 to spend in India and plans to scale up its staff strength to 10, 000 people in India by the end of 2010, chief executive John Chambers, who is currently on a trip to India, said on 29 October.

Steel outplays other sectors: Steel seems to have outplayed other sectors in wooing investments, both foreign and domestic, as the sector is set to attract investment worth about Rs 3,00,000 crore within the next five years.

Rs 1-lakh house: After the National Rural Employment Guarantee scheme, the UPA government is working to launch another scheme for the aam aadmi. Tentatively called the Aam Aadmi Awas (AAA), its goal is to provide “affordable” homes that ensure “reasonable quality of life” for the “urban-rural poor.”

Harvard dresses up for growth courses in India: Harvard Business School will start an executive education programme in India next year, stepping out of its traditional East Coast venue in the US, targeting companies with global ambitions to address what it believes is the typical challenge in the booming economy–managing hypergrowth.

GFL to invest Rs 6,000 cr in wind power: Gujarat Fluorochemicals (GFL), India’s largest refrigeration gas producer and part of the Inox group, is diversifying into the power sector, and plans to invest over Rs 6,000 crore to produce 1,000 mw of wind energy within the next five years.

Indian markets among top wealth creators: Indian equity markets have been one of the top performing markets when it comes to wealth creation, witnessing an 89 per cent expansion in the total market capitalisation in 2007.

Global tech, local help: A knowledge processing and outsourcing (KPO) unit in Calcutta is teaching people in the US how to set up and use the latest electronic gadgets.

Airbus in talks with Air India for selling 12 superjumbo A380s: European aircraft maker Airbus Industrie is in talks with flag carrier Air India for sale of up to 12 superjumbo A-380 planes, as it looks for a greater presence in the world’s fastest growing civil aviation market.

US House of Representatives passes resolution honouring Diwali: The US House of Representatives has for the first time passed a resolution recognising the “religious and historical significance” of Diwali. The House Resolution 747, was passed by an overwhelming vote of 358 to 0 (with 66 members abstaining).

Infosys pursuing 15 global deals worth $100 m each: “Globally, Infosys is in the reckoning for at least 15 opportunities, all are $100 million-plus each. These are all overseas deals and typically take 8-10 months for closure. They are across various areas including hi-tech, retail, manufacturing, and Banking, Financial Services and Insurance (BFSI), ” Mr Kris Gopalakrishnan, CEO & MD, Infosys Technologies Ltd.

German pact to take science to industry: India and Germany will invest 10 million euros (Rs 56.8 crore) each to establish an Indo-German technology centre in New Delhi for industry-relevant research under a slew of agreements the two countries signed today. The agreements will expand existing scientist-exchange programmes and launch joint research projects in futuristic manufacturing, energy technologies and health research.

Cisco, Wipro announce strategic alliance: US networking firm Cisco and India’s third-largest software maker Wipro Ltd announced a strategic alliance to develop and deliver IT service solutions to help both companies meet their customer’s needs. Under the pact, Cisco and Wipro together will build new IT infrastructure service solutions that combine the US company’s industry-leading networking solutions with the Indian firm’s infrastructure and managed services portfolio.

Dow plans $100mn R&D facility near Pune: The Dow Chemical Company will be investing $100 million for a research and development (R&D) facility at Chakan near Pune.

FieldFresh targets turnover of Rs 500 cr: Field Fresh Foods (P) Ltd, a 50:50 joint venture between Bharti Enterprises and Del Monte Pacific India Ltd (DMPL), is targeting a turnover of Rs 500 crore in the next three years. At present the company is exporting fresh fruits and vegetables to key markets, including the UK, West Asia and Europe.

NCAER raises GDP growth forecast to 8.9%: The National Council of Applied Economic Research, which had forecast the country’s economy to grow by 8.5 per cent in 2007-08, has raised projection to 8.9 per cent on improved performance of agriculture and services sectors.

India to stay in talent top club till 2012: For 2012 ranking, India gets the 2nd rank on its demographics; 9th on its labour mobility and relative openness of the labour market; 13th on its proclivity to attract talent; 13th on its environment to nurture talent, but a poor 25th on education and 26th on FDI inflow.

India geared up to tap $31 bn drug outsourcing market: Contract Research and Manufacturing Services (CRAMS), is becoming one of the most promising opportunities for the Indian pharma industry. India, with its intrinsic competitive advantages, remains as one of the most preferred outsourcing destinations with the global manufacturing outsourcing opportunity estimated at $20 billion targeting $31 billion by 2010.

India’s exports rise by 19.26% despite rupee rise: India’s exports increased by 19.26 per cent in September this year, despite a rise in rupee value, while imports went up by a moderate 2.31 per cent.

HCL to set up 5 tech centres at Rs 1,000 cr each: The country’s fourth largest software exporter HCL Technologies will set up five technology hubs across the country which will entail an investment of Rs 1,000 crore each, and the new initiative would generate employment for nearly one lakh people in the next 5-7 years.

Suzlon plans exports to 40 countries: World’s fifth largest wind turbine manufacturer Suzlon Energy seeks to export its products to 40 countries including South Africa, South Korea and parts of emerging Europe.

India tops in carbon credit deals: India has registered the largest number of Clean Development Mechanism (CDM) projects in the world. The country accounted for 283 CDM projects out of the 819 registered by the CDM Executive Board.

HTMT to buy 3 overseas BPOs for $300 million: Hinduja TMT Global Solutions (HGSL), the business process outsourcing (BPO) arm of the Hinduja group, is in final stage of negotiations for acquiring two BPO companies in the US and one in the UK for a total consideration of around $300 million (Rs 1,200 crore).

IIT Madras, Bombay tie up with auto cos for low-cost robots: IIT Madras and IIT Bombay have entered into an agreement with a consortium of automobile companies to design, development and manufacture of low-cost robots that can be deployed on the shop floor.

India may add 78,000 MW in next five years: India may add 78,000 MW of power generation capacity in the five years to March 2012, according to Planning Commission Deputy Chairman Montek Singh Ahluwalia.

Japanese investments in India to touch $5 b: Japanese investments in the country are expected to touch $5 billion over the next three years.

For most who matter in the developing countries, India is becoming important, though many skeptical in India are counting the days the booming mood lasts. But look at the revolution that one sees on the street. “India’s economy is growing at over 9%, and younger consumers, especially those working in call centers, can now afford the personal digital assistants and Research In Motion (RIMM) BlackBerrys that, as recently as a year ago, seemed out of reach to everyone but wealthy businesspeople and other professionals.”

Posted in economy | Leave a comment

Shocked and Ashamed

Posted on November 3, 2007 by indra

The whole Bihar must be under a shock and many like me must be ashamed too, as by destiny we are from Bihar. How long can the well wishers wait to stop getting the humiliating stories of feudal sick mentality and exploitation of the commoner?

I had been requesting our CM, who may be a gentleman to be ruthless. It would have been easier for him to be so if he could select an outsider belonging to a class of Gill or Kiran Bedi, or Rebiero to head the police administration. But perhaps he has his own political constraints and limitations. However, this is an opportunity lost forever even for him and certainly for the state.

Last summer I was in Patna and I asked every one I came across why the construction boom has not touched Patna when it is changing the face of the country all over. I know the answer now from a press report in TOI. “Such is Anant’s terror that his mere gaze at a building sends shivers down the occupants’ spine. The other day he was driving through in his Mercedes when he stopped by a building and got out – almost simultaneously the cops got a phone call with a quavering voice at the other end complaining that Chhote Sarkar was looking in the direction of his house. ”Usually, he gets the building his eyes rest on,” said an upscale Fraser Road shopkeeper.” And this don is an MLA of the ruling party. As the report says, he runs a parallel government, and keeps his own army. He claims to be the icon of an influential caste with Brahminical background but perhaps cursed to live a life of Ravana. Unfortunately, there is no Rama incarnated till now. By owning him the caste as whole gets degraded. As it happens, Anant Singh is pretty near to Nitish Kumar. I wish this were not true.

How can one think of development and investment to come with this sort of mafia strength in a state? Perhaps this is the answer to the question I keep on asking: “Why are the hundreds of proposals for the new projects of factories and colleges that the new government has approved, are not getting started?”

Nitish Kumar must use the revelations from media as tool to weed out the unlawful activities ruthlessly through the fast track courts. And I only wish that media is not partisan in its reporting. Let us remember it is the same class of people who enjoy the dances of the bar girls before the rally or kill Reshma. Bihar must get rid of that mentality by perhaps making the second rung political leaders and their followers to undergo an intensive training under gurus such as Ramdev or Ravi Shankar. I find media showing special likings for Laluji even when the roots for all the present maladies go back to his reign. The media covers Lalu’s ‘Chetawwani’ rally or may be ‘raillaa’ with lot of spicy stories rather than the endeavours of the present government to make things right and take the state on the path of development with so many good educational initiatives in the state.

If Nitish fails to crush these dons, he must confess and declare his helplessness publicly so that the people of the state can retire and take it as their destiny.

I get reminded of Late poet Dinkar’s urging the almighty (if He is there) to send back Arjun and Bhima. We need many Ramas, as Ravanas are large in number. Will they come and save Bihar?

Posted in bihar | Leave a comment

Hope and Endeavours Making Difference

Posted on November 3, 2007 by indra

While one way of going for inclusive growth is reservations, perhaps the most effective way will be bridging the gap between the needs of industry and the skill-sets of the socially disadvantaged. Many states have started initiatives that focus on training programmes to improve the employability of educated youth.

Over the last few years, AP has trained and helped over one lakh people from marginalised communities get jobs, while thousands have become entrepreneurs.

The AP government aims to create five lakh more manufacturing jobs by March ’09, and has started Jawahar Knowledge Centres to help poor students with engineering and other degrees improve their employability. Thousands who have thus augmented their skills have already landed jobs in companies like Infosys and Microsoft.

In Madhya Pradesh, over three lakh people have benefited from its District Poverty Initiative Project (DPIP). Those involved in the projects are heartened by the response from rural communities that are active partners in the project along with the government, NGOs and institutions like the World Bank. MP has been able to improve the employability of the poorest of poor.

According to Ravindra Pastor, coordinator of MP’s DPIP, “In the six years since we started with World Bank help, some 3,17,000 families have benefited. Of them, 56 per cent chose land-based activities, 22 per cent took up animal husbandry, the remaining started their own enterprise or took up jobs.” An independent survey reveals 29 per cent of the beneficiaries in MP are women, 25 per cent SC, 25 per cent ST and the rest economically weaker. Overall, about 40 per cent beneficiaries in various entrepreneurship and job-training schemes are women.

In Kerala, the standard instruction to state-run agencies is to help the poor generate self-employment. In 99.9 per cent cases, proposals from SC/STs for starting small-scale units are assisted, and put on the fast track.

However, some states are taking a narrower view to reserving the jobs in the industries of the state for its own people. As we all know it is troublesome and creates problems with huge immigrations in the country.Haryana is among the states, which stipulate that new industries give 25 per cent jobs to locals.

The hill states of HP and Uttarakhand too made it mandatory in ’03 for all new enterprises to allocate 70 per cent jobs to locals, though not on a caste basis. Between January ’03 and May ’07, 33,704 small-scale units were set up in HP with a capital investment of Rs 1,471.23 crore that meant 1,58,483 local jobs. Alongside, both HP and Uttarakhand are focusing on worker training.

The Velugu project (Indira Kranti Patham) has benefited 8 million women in AP, MP and Rajasthan. The World Bank has commenced a rural livelihood project in Bihar and is firming up similar projects in West Bengal and Orissa. Rajasthan emphasises on asset creation for inculcating a savings habit and making the beneficiaries bankable. “So far, some two lakh families have acquired livestock, started handloom-based enterprises or created land assets.”

Reservations do widen the social base of industry, but do not ensure retention or adequate wages unless backed by skill upgradation. States, NGOs, and private sector must get into skill building and training in big way. And with skill, one can get a well paying engagement easily in this vast world that is getting flat.

Posted in management | Leave a comment

Shashi Tharoor’s Classifications of American Indian Migrants

Posted on November 1, 2007 by indra

Last Sunday, in his column in ‘Sunday Times of India’, Shashi Tharoor questioned, “Should we be proud of Bobby Jindal?” followed with “Is our pride misplaced? Who is Bobby Jindal and what does he really stand for?”

I myself took pride reading Bobby’s successful endevour to become the youngest Governor ever and also the first non-white candidate to win the post in highly conservative white-dominated Louisiana State. Articles in the latest ‘Outlook’ and ‘India Today’ proved salability of the story.

However, I like Shashi because of his writings and his achievements in UN and his own endevour to fight for the post of general secretary of UN after Kofi Anan retired. I was morose when he failed to get elected.

Shashi has categorized the Indian migrants in two-the atavists and the assimilationists: “The atavists hold on to their original identities as much as possible, especially outside the workplace; in speech, dress, food habits, cultural preferences, they are still much more Indian than American. The assimilationists, on the other hand, seek assiduously to merge into the American mainstream; they acquire a new accent along with their visa, and adopt the ways, clothes, diet and recreational preferences of the Americans they see around them.”

To sum up it appears, Shashi doesn’t agree with the Indians taking pride in Bobby Jindal, and concludes ‘let us not make the mistakes of thinking that we should be proud of what he stands for’.
Shashi may be right in his arguments. But I feel with not many things to be proud of here in the country with the media, particularly the English ones, hardly writing rather blacking out the success stories of domestic intellectuals, let the aspiring Indian youth be satisfied with Bobbys of US. Shashi has mentioned some names I didn’t know and I feel proud of each of them and so must be many Indians.
” Vinita Gupta, in Oklahoma, another largely white state, won her reputation as a crusading lawyer by taking up the case of illegal immigrants exploited by a factory owner (her story will shortly be depicted by Hollywood, with Halle Berry playing the Indian heroine). Bhairavi Desai leads a taxi drivers’ union; Preeta Bansal, who grew up as the only non-white child in her school in Nebraska, became New York’s Solicitor General and now serves on the Commission for Religious Freedom.”

Through another story by Chidanand Rajghatta on the same page of the newspaper, I came to know of some more of the American Indians who have been making a mark in the American legal sphere: “Sanjay Tailor, Anil Singh, and Jaya Madhavan serve as judges in various courts; one of the most cited constitutional experts in the US is Akhil Amar; Preeta Bansal was solicitor general for the State of New York; and Sarita Kedia was an attorney for the mobster John A Gotti.” The story mainly deals with Amrit Singh, who is the youngest daughter of PM Manmohan Singh. And we in India celebrate all successes of persons with Indian connection, be it Kalpana Chawla, Sunita Williams, Hargobind Khorana, Jagdish Bhagwati, Amartya Sen, CK Prahlad or Jhumpa Lahiri or Anita Desai. Why should Indians bother to find all the details that are personal, if those are not anti-Indian that Shashi Tharoor has tried to provide about Bobby Jindal? Why should we here in India bother how bloggers in US posting uncomplimentary comments about Bobby Jindal as reported in the story of ‘India Today’? How does it matter if these achievers ‘change their names, religion and do not wear their Indianness on their sleeve’? I shall be the happiest man and so must be many if Bobby Jindal is ranked as the best Governor of US some day. I loved to read that, ‘he is first foremost a Louisianan’.

With five of my India-born family members out of the total of ten in US, can I differentiate and go by Shashi’s definitions before taking pride in their achievements during my lifetime, even if they turn into ‘assimilationist’ class? Naturally my answer will be an emphatic “NO”.

In India, the reason for taking pride of a person varies based on many factors. I like Amitabh Bacchan, as he is son of Haribans Rai ‘Bachhan’. Some one else likes him as he is the son-in-law of Bengal, and some may like him, as he is kayastha by caste. I don’t find anything wrong with that unless the person is a rogue.

I wish Shashi had not written this story of Bobby Jindal. It makes him pygmy which I hate him to be branded as by any one. I am sure Shashi wouldn’t like if someone writes similar story about him, as the writer didn’t not like the name of Christa Giles associated with Shashi.

Let Shashi allow me and other Indians too to take pride for Bobby Jindal. And let me keep on being under impression that Piyush became Bobby because of his parents liking for the Raj Kapoor famous film ‘Bobby’.

Posted in education | Leave a comment

Noida- Government Misuses The Right To Transfer

Posted on October 31, 2007 by indra

Some called the business of transfer as industry. It happens quite often in government sector. In many cases, as I hear, one is to pay for getting a transfer to profitable locations. One is also to pay for getting out from a dry location to a green pasture. Politicians use it for penalizing the honest and disobeying officers too, so that others can take lessons and remain obedient. May be, they use it as motivational tool too.

For the first time, I noticed the national newspapers of the capital covering the transfer of Balwinder Kumar, the CEO, and Noida with so much detail. HT had a headline-‘Noida CEO transferred after 3 months in office’. TOI said, ‘Noida gets its 14th CEO in 7 years’.

I wrote about the transfer business when Monica Garg had joined after the demise of Mulayam’s government replacing Sanjiv Saran. That was usual. Noida being a gold mine, it always happens with the change of the government in Lucknow. Then Monica Garg also got shifted within 3 months. Balwinder Kumar replaced her. Perhaps Ms Garg was a stopgap CEO in a process that tries to find the most reliable candidate of its own choice. However, I never imagined, it would come again.

TOI talked of a speculation about the transfer. Kumar’s reluctance to accommodate the person nearer to the chair for the allotment of a 150 acre plot worth around Rs 2, 000 crore in Noida might have caused his ouster. Kumar wanted to have a global tender to have transparency. The bigwig in Lucknow wanted to use the discriminatory route.

According to HT, some highly connected officials might have got Kumar transferred as he had exposed many scams. We ourselves came across the suspension of a project engineer, when we were pleading to block the building of the boundary wall just in front our residences with the CEO.

Some say, Kumar had a wonderful record of exposing scams in UPSIDC. He did the same in Noida about the hotel allotments, SEZs, and other big contracts. So Mayawati shifted him to the Social Welfare Department to expose the scams committed during the previous government. It is very difficult to find the truth behind the transfer. But why can’t in this era of transparency for better governance, the administrative transfer accompany an explanatory note giving the reason of transfer as mandatory? Kumar on appointment talked about various development projects for Noida and promised to kick start them soon. We took it as customary with any new CEO. But he appeared to be different. How can any CEO do anything for Noida during this short a period? Mayawati would have allowed him to be in Noida for at least two years. Normally, no project takes less than 3-5 years. A CEO must be in for sufficient period so that the accountability for the projects can be fixed.

I had an opportunity to meet Kumar along with some residents of our sector who selected me to represent against the NA plan of raising the boundary wall. G. Kumar appeared to me as pretty professional in understanding the problems, and taking decisions. The best part was his visits to the sectors and meeting the residents to hear their problems.

Time and again, we in Noida have been hearing of many development projects such as City Centre, Multilevel car parking, Noida Habitant Center, library and many other projects of world class standard. Noida could have become a Bangalore minus its climate. Kumar had raised the expectations of Noidites in the very short period he occupied the chair. But if CEOs are to work on the mercy of and for Lucknow with the sword of transfer hanging on head, Noidites mustn’t expect any significant development. Every Noidites must protest against this trasfer menace in her or his own way.

Why can’t Noida Authority become fully autonomous in administration with a council of professional residents to assist and get isolated from frequent political turmoil- real or virtual? With perhaps some of the best of the talents available in the country living in Noida, some way can certainly be found to use their expertise to transform Noida in a city worth living that people in other township envy.

Posted in governance, indian politics | Leave a comment

Manufacturing India-III

Posted on October 31, 2007 by indra

Auto Sector Provides Lead

For all the developed countries, be it Germany, US, or UK, the automobiles led the industrial development. It happened in the same way for Japan as well as South Korea. It is happening in China and India too.

Last Monday, some great news about the Indian manufacturing sector came simultaneously from three centers- Pune, Chennai, and New Delhi. It all related to automobile sector.

In Chennai, Ashok Leyland (ALL) signed agreement with Nissan for 3 ventures. In Pune, Carlos Ghosn and Rajiv Bajaj agreed to work for a $2500 car together. The old man of Suzuki Motor Co, president and CEO Osamu Suzuki announced a management change and also an investment of $1.8 billion for setting up a research and development unit at Manesar in New Delhi. Till very recently, Suzuki was not ready to get its transmissions manufactured in India and was importing it for all its vehicles.

R Seshasayee, MD of ALL and Carlos Ghosn, CEO of Nissan signed an MoU to foray into the manufacture of light commercial vehicles (LCVs) with an initial investment of $500 million under three different JVs: one each for vehicle manufacturing, power train manufacturing and R&D.

In the manufacturing JV, ALL will hold 51% while Nissan the rest. The plant with a production capacity of one lakh units a year will be located in India in one of the three states- Tamil Nadu, Andhra Pradesh and Uttarakhand. Production will start in 2010 and will include the Nissan Atlas F24 light duty trucks in addition to the range of products covering applications from 2.5 to 8.0 tonne gross vehicle weight.

The second joint venture will be for manufacture and assembly of engines and other drive train components to be fitted in the LCV and for exports with manufacturing facility located in India. Nissan will hold 51% while ALL will hold the rest.

The third is a technology development company headquartered in Chennai in which both parties hold equal stakes. The products developed and made would be sold under both Nissan and ALL badges.

In Pune, Carlos Ghosn, CEO of Renault and Nissan visited the Bajaj Auto’s 198-acre two-wheeler manufacturing facility at Chakan, near Pune, on Monday afternoon to announce the collaboration of both Renault and Nissan with BAL for making and selling an ultra low cost car (ULC) priced at around $2,500. “If Tatas can do it, there is no reason Bajaj cannot with the help of Renault and Nissan,” said Ghosn. Bajaj would lead the tripartite tie-up, while the two global automakers support the venture in design, engineering and even equity participation in the project if needed. The idea is to build a car of robust quality that meets the basic requirement of the customers in India initially and then see if it can be exported to other markets. In a few months when the feasibility study will be completed, and if the report is favourable, then the company can launch the ULC car by end 2011.

The old man of Suzuki Motor Co, president and CEO Osamu Suzuki who brought automobile to India in real big way was also in New Delhi. Shinzo Nakanishi, currently the chairman of MSIL will be replacing Jagdish Khattar. Mariuti Suzuki announced plans to invest $1.8 billion for setting up a research and development unit at Manesar, as well as marketing and production expansion. The company already has a production unit in Manesar. The R&D facility would be set up in an area of 500 acre.

Both Carlos and Suzuki are now ready to use the Indian talent for product innovation as other MNCs in IT sector are doing. GM is already having its R&D facility in India. According to Karl Slym, the new president and MD of General Motors India, the company is evaluating the possibility of setting up an engine manufacturing facility in India to cater to domestic as well as export demands. Automobile major General Motors expects to source components worth $1 billion from India for its worldwide operations in the next two to three years.

It is obvious, automobile will lead the manufacturing sector in India too.Tata Motors has been able to provide the benchmarks of Rs 1-lakh car and ACE truck to even the global players.

Posted in industry, management, manufacturing | Leave a comment

Amritsar- Some Observations

Posted on October 30, 2007 by indra

For years, I wanted to visit Golden temple of Amritsar. When we went to Manali, the plan was to return via Amritsar. But it didn’t happen. A month or so ago I expressed my desire to Arora and as usual he made it happen. Yamuna wanted to have an outing with Aroras too. He is so much a helping person in the matters that I couldn’t learn in the whole of my life.


Host and guests

We drove to Ludhiana on last Thursday and became the guests for Amit and Rakhi in Rajgurunagar, Ludhiana. That was the way Mr. Arora wished. We were very hesitant at first, as we felt it was troublesome for the host. But the hosting couple was wonderful. The young couple provided exemplary hospitality and respect too about which we, the elders grumble. They took us to a beautiful dining outlet ‘Haveli’ and offered their bedrooms against all our requests for not doing so for our comfort. They themselves slept in the living room. Their son Sahib was the main attraction for me to be with them. He was so good and playful all the time. The drive through Ludhiana was sufficient to convince that it is one of the fastest growing cities of India. However, it must be one of the most polluted too.




At Jalianwala Bag

In afternoon on Friday we reached Amritsar, and settled in Sidhaarth Niwas, a hotel near the Golden Temple. After a wonderful lunch of Kulchas, we visited Jalianwala Bag that reminds one of the freedom struggles. The entrance is unimpressive and poorly maintained. The tourism department and the municipality can certainly make it more attractive for visitors. The story of the butchery by an English General can get into a mind-shattering light and sound programme. The martyrs certainly deserve a better and grander memorial. Unfortunately, we as nation are very poor in that. All our administrators and political leaders are just callous about it.


At Wagha Border

We reached Wagha Border with Pakistan via Attari by 4.30PM. It was a great scene with some 20-30,000 spectators to watch the retreat function. BSF jawans were playing patriotic songs. Groups of kids from schools were dancing to the enjoyment of the spectators. The occasional loud and spirited slogans of ‘Hindustan- Jindabaad’, ‘Vande- Mataram’ were reverberating the atmosphere. At 5.30PM, the rituals of retreat started. It was very difficult to see the proceedings because of the distance and location. Digital display screens at right places through CCTV could have certainly made the proceeding of retreat more enjoyable for the thousands of spectators who come every day to watch it. As I could understand from a conversation with one officer of BSF, they may have it soon.


Harmandar Sahib in night and morning

On return, we went straight to the Golden Temple known as Darbar Sahib. It was a unique experience for me. The flowing water channel to clean the feet of visitors before they enter the shrine is a unique idea and must be emulated at other temples in India. It is huge and beautiful campus with gold sheet covered Harimandar Sahib in a big tank of water (nectar). I got reminded of Shershah Tomb in Sasaram and Pawapuri’s Jain shrine. Akal Takhat on one side reminded me of the dark days of 1982 and how some rogues could make the whole nation ashamed of what happened here.

We joined into huge and highly disciplined queue through Darshni Deodhi and Holy Bridge, and made our head touch the floor in front of Guru Granth Sahib in Harmandar Sahib. Next morning I was ready by 5 AM finishing my bathe and ‘path’ of Sundarkand for Saturday. Yamuna didn’t join us. We went to Harmandar Sahib again. Majority of the visitors at this time was of the followers of Sikh faith from far and near unlike the night when I assume the majority was in favour of the people of the other faiths. Why can’t all Hindu temples try to be like this? Surprisingly, many faithful ones work to provide all the services to the visitors including cleaning and wiping at the shrine.

However, I was surprised that there was no restriction on taking camera, video or cell phone inside the temple and using them anywhere. Are the people in management of the shrine not afraid of terrorists attack here? When I raised this question with Arora, his answer was lighthearted and humorous. “How can the petty terrorists dare to face the masters or be not afraid of the consequences?” But perhaps, most of our temples such as Aksaradham are overdoing the security drills causing a lot of inconvenience to the visitors. Perhaps the managers of Harmandar Sahib must train those from the other temples and shrines about the security tips. Durgiana Temple built by Hindus of the city has tried to copy Harmandar Sahib. But Hindus don’t even copy well. We visited it while leaving Amritsar for Noida where we could reach by 11.30 PM on Saturday.

At Durgiana Temple
Posted in Uncategorized | Leave a comment

Booming and Bubbling India-XXIV

Posted on October 29, 2007 by indra

India now $4 trillion economy: India’s economy, which swelled close to a trillion dollars last year, is actually worth four trillion dollars when measured in terms of purchasing power parity (PPP) and accounts for 6.3 per cent of the global economy.

Economy likely to sustain growth at 10%: “I think a growth of around 10 per cent will be sustained in the next 10-15 years. We have come through various challenges like inflation and ‘overheating’. But growth has been sustained,” said ICICI Bank’s Managing Director and CEO K V Kamath.

India has fifth largest forex reserves in world: India on Friday joined the elite group of world’s five biggest holders of foreign exchange reserves as it added about $4.5 billion last week to take the kitty to $261 billion. The country surpassed South Korea, which had $257 billion in forex reserves as of September-end, to stand at the fifth spot.

Sensex Breaking record after after record: In just five months, India’s market capitalization rose by $500 billion to $1.5 trillion now. Sensex recorded its biggest evr weekly gain of 1,634 points (9.6%) toclose at 19,243, a record high. Investors’ wealth jumped Rs 6.1 lakh crore during the week to a new peak at Rs 60.4 lakh crore. On October 23, 2007 Sensex recorded its biggest single-day gain of 879 points on the Bombay Stock Exchange. Market players see sensex touching 22,000. It’s a trillion dollar tidal wave. Nearly 500 firms gained even in meltdown. Even when the stock market fell like ninepins last week, eroding over Rs4 trillion from investors’ wealth in just three days, as many as 494 companies, including top five IT firms and some PSUs, added to their market value.

International firms looking beyond IIMs: International recruiters are going beyond the top IIMs to hire students for the two-month-long summers, a mid course training programme of sorts. It must be to allure the prospective employees.

Uniform accounting norms push KPO: A new opportunity is knocking on the doors of the Indian BPO, or more precisely, the KPO (knowledge process outsourcing), industry. And the indications are that it would be a mega opportunity.

‘Chips’ in cattle to detect insurance frauds: The Gujarat Government would be implanting 1.5 lakh cattle with the RFID chips to prevent fraudulent applications for loans or claims against cattle insurance policies. It would be by permanently injecting the microchips in the cavity behind the ear of cows and buffaloes. India is becoming tech-savvy.

Small towns drive Internet boom: Internet usage in India has grown more than 11 times over the last seven years. The boom is being driven not by metros, but by smaller and non-metro towns, where the number of users has risen by a whopping 69 times and 33 times respectively since 2000.

250mn telephone target achieved 2 months in advance: India has achieved its target of 250 million telephone connections two months ahead of the scheduled December-end, according to a statement from telecom regulator Trai. The gross number of telephones crossed 248.66 million in September with the addition of 7.64 million telephone connections.

ONGC-Mittal JV buys 30% in Turkmenistan block: ONGC-Mittal Energy Ltd, the joint venture company formed by ONGC and Mittal Investment, has acquired a 30% participating interest in an exploration block in Turkmenistan. Himatsingka Seide, the Bangalore-based company has now announced the acquisition of US-based DWI Holdings, its third buyout this calendar year. Wockhardt acquires US-based Morton Grove: Pharmaceutical major Wockhardt Ltd has acquired Morton Grove Pharmaceuticals, a liquid generic and specialty dermatology company in the US with sales revenue of USD 52 million. The acquisition would boost the company’s US revenue by providing a complete range of dosage forms right from tablets, capsules, liquids to injectables.

Two Indians on Time’s global “Heroes of Environment” list: Domestic wind power firm Suzlon Energy chief Tulsi Tanti, along with Wadia Institute of Himalayan Geology’s D P Dobhal, have made to a list of global environment champions prepared by the Time magazine.

Tamil Nadu Govt to introduce ‘rural tourism’: Tamil Nadu Government has decided to introduce ‘rural tourism’ showcasing Tamil culture and customs. Two villages in the district, where Tamil culture and customs were still preserved, had been identified for the new tourism concept. Rs one crore each would be spent on Kadampadi village and Punjarasanthangal villages in the district have been selected for inclusion in the rural tourism sector.

A fund to engineer entrepreneurship: India’s second largest software and services firm Infosys Technologies Ltd’s chief mentor N.R. Narayana Murthy and venture capitalist Gururaj Deshpande have committed $600,000 (Rs2.4 crore) of their own money to hone the entrepreneurship skills of engineering students across India. The money will be spent on getting professors from top universities in the US to take courses in non-IIT engineering colleges, in drafting effective business proposals and helping them network with leading venture capitalists in the US.

Vizag Pharma City: Jawaharlal Nehru Pharma City, country’s first pharma industrial estate, which is being developed by the Ramky group near Visakhapatnam, is almost ready. Three pharma companies – Glochem industries, Actumum Chemicals and Vijayasri Chemicals – have already started production.

Patni Computer ties up with BITS, Pilani: IT services and business solutions provider Patni Computer Systems has signed an MoU with Birla Institute of Technology and Science (BITS), Pilani, for a two-year masters degree in Embedded Systems for its employees for upgrading the skills of its employees for growing Product Engineering Services (PES) division of the company. Revenues of Indian IT companies from engineering services are growing exponentially with NASSCOM estimating engineering services offshoring to be a $55-billion opportunity by 2020. .

Sun Pharma gets US approval to sell generic Exelon: Sun Pharmaceutical Industries Ltd, India’s biggest drugmaker by market value, has got approval to sell its generic version of Novartis AG’s Exelon, in the US market. Exelon is used to treat dementia.

Suzlon to raise Rs 5,000cr for expansion: Country’s largest wind power equipment maker Suzlon Energy will raise up to Rs5,000 crore for expansion purposes, including raising production capacity to 5,700 MW.

S&P puts TCS in investment grade: Global rating agency Standard & Poor’s has assigned an investment grade to TCS. The corporate credit rating with a positive outlook, BBB, is higher than India’s rating and “highlights the financial robustness of our business model and operating strengths of the company,” said TCS.

BSNL to invest Rs 60,000 cr: State-run telecom giant Bharat Sanchar Nigam (BSNL) is investing a whopping Rs 60,000 crore in next three years to expand its GSM, Broadband and WLL services, a move that would help the PSU achieve top position by 2010.

Goldman Sachs eyes 33% stake in Bhatia’s Nano City: The Nano City, which would have five lakh inhabitants, would focus on nano technology, bio-sciences, software product development, next-generation internet products, material research and energy.

IT exports to touch $80 bn by 2011: The government expects IT exports to touch 80 billion dollars by 2011, growing at an average rate of 30 per cent annum.

Essar to construct refinery in Iran: Iran’s state oil refining firm and the Essar Group are expected to start building a 3,00,000 barrels per day refinery in southern Iran. The facility, estimated to cost $8-$10 billion (Rs32,000-40,000 crore) and which would be the first foreign-invested downstream project in sanctions-hit Iran, will boost the OPEC member’s stagnant refining sector that is struggling with petrol shortages.

Cookson Electronics opens India R&D center: Cookson Electronics, a US-based company, which provides basic materials used in electronic assembly processes, has opened a research and development (R&D) centre in Bangalore at an investment of $10 million that will focus on innovative new materials, components and technologies for the electronic, manufacturing, assembly and packaging.

ONGC plans Rs 31,000 cr capex in 11th Planz; Oil and Natural Gas Corporation Ltd aims to invest over $ 5 billion and produce 25 million metric standard cubic metres per day of gas from its fields in the Krishna Godavari basin by 2012-13.

And the news of some other booms and birsts is building confidence and providing hope to many in the country.

Burst of justice, from Delhi to Coimbatore: One after the other, the blasts went off in packed courtrooms. The heat sent 60 persons to a life of confinement, but none died.

Posted in economy | Leave a comment

Durga Puja: Enjoy a Tale

Posted on October 28, 2007 by indra

One can get confused with the large number of goddesses and gods in any of the Durga Puja pandal that is getting celebrated these days all over India, particularly wherever, the Bengali community is in number good enough to organize one. I unscrupulously try to listen to the queries of little boys and girls who visit the pandals and try to impress each other about his or her knowledge of the mythology. While Saraswati with her vina and books represents learning and fine arts, Kartikeya stands for military prowess for protection and preservation. Ganesha, the elephant god and his little mouse entertain the little ones while representing the subtle intelligence. And the world can’t survive without Lakshmi’s wealth and her owls. While the main festival is for Durga with ten weapons in her ten hands and she dominates the pandal and rituals, Shiva and other Gods are also in attendance sometimes. Normally, it presents pretty complex situation for a devotee. He is to be equally faithful to all. And the result may be devastating sometimes that reminds me of a story given by Jug Suraiya.

Jug Suraiya has started with this interesting tale in a lead article in Times of India, New Delhi on October 17, 2007.

A Muslim, a Christian and a Hindu are crossing a river in a ferry. A storm springs up and the ferry is pitched and tossed about. The passengers begin to pray for salvation. “Save me, Allah”, pleads the Muslim. And a divine being on a winged horse carries the Muslim to safety. “Save me, dear God”, cries the Christian. And a chariot of fire descends and conveys him to the shore. “Save me, oh save me!”, begs the Hindu. But despite all his entreaties, no help is forthcoming and the poor fellow drowns. He finds himself in Heaven, where Brahma welcomes him with a warm “Swagat”. “What swagat!”, the newcomer huffs. “How you showed me up in front of that Muslim and that Christian. They prayed to their respective gods who came and saved them. But though i prayed and prayed, no one bothered to come and save me”, he grumbles. Brahma shrugs helplessly. “What could I do, my son. You started praying to Vishnu to save you, so I adopted that avatar and was coming for you, when you began to call on Ram. I was stringing my bow as Ram, when you suddenly called Krishna. I was getting my flute and my gopis, when you invoked Durga. I was putting kajal in my eyes before coming to rescue you, and in the meantime you went and drowned”.

I went through the story many times, enjoyed it thoroughly and shared it with Yamuna as well as with some friends too. You can think over the situation a little lightly, and you can also enjoy it more.

Posted in Uncategorized | Leave a comment