Prompting Prescriptions

Time and again, you read news reports such as ‘Red wine may ward off wrinkles’, and ‘Grape juice protects heart’.

Scientists have concluded that red wine could help slow the ageing process. Melatonin, a substance found in grape skins, can protect cells from age-related damage. Melatonin is a naturally occurring hormone, and plays a key role in the body clock and is used by some frequent travellers to try to counteract jet leg.

But the findings are based on trials on mice, and human beings are not mice. But the good news is that I can remain with my vow as the source of Melatonnin can be some food items that I already take.

“Melatonin is also found in foods such as onions, bananas, rice and cherries. A study by scientists in Spain suggests that taking a daily supplement of melatonin from the age of 30 or 40 could delay ageing.”

But then why do the scientists recommend before taking care of the side effects? Can’t it be the producers lobbies that might be pushing the scientists to do that?

But I am happy with the second similar finding that have come from the French scientists instead of Spanish in the first case. Researchers at the Universite Louis Pasteur de Strasbourg were examining the effect on the heart of Concord grape juice.

“Grape juice can have a similar effect (against heart disease) as red wine but without the alcohol. That is a very important message,” said Dr Valerie Schini-Kerth, lead author of the study published in the journal Cardiovascular Research. Red wine and certain types of grape juice have high levels of polyphenols, which block the production of a protein linked to cardiovascular disease – the number one killer in many Western countries. REUTERS.

Is it not alluringly prompting to go back on the vows after these researches for one who has only given up the wine for a moral reason or medical advice?

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India poised’- Manufacturing Sector- My Apprehensions-I

The Times of India, New Delhi has published three stories in the special series on ‘India Poised’, Make 2007 The Year of India’ on manufacturing sector. I think all the columnists have painted a rather too rosy a picture of the manufacturing sector that is strategically the most important as on today for India and millions of young Indians that will be joining the workforce in years to come.

Indian manufacturing may be growing at an average of 10% with growth touching 12-14% in some months. But all these don’t give confidence enough that the growth will get stabilized at 12% or more that is the target set by the National Manufacturing Competitiveness Council to ensure the required employment generation. A visit to all the shopping complex and hyper markets will show how the small as well as big retailers are promoting the household appliances, accessories, and even some cases, the eatables of doubtful quality from the cheaper Asian markets in attractive packages. India must expand its manufacturing in all sectors, specially low-tech, labour intensive manufacturing that can take the manufacturing to even the rural areas with improving connectivity. The statement such as ‘China is slowly taking a back seat’ with reference to manufacturing sector will be self-defeating. Even the graphics provided prove the same. China (418.8 million tones) produces about 9 times more crude steel than what India (44 million tones) does. Its cement production is about 8 times more than that of India. China produces almost twice the number of cars that India does. Its electricity production is four times of India. And India can’t hope to catch up with China without electricity.

It sounds like sweet music to our ears that ‘as per the findings of a joint report of Confederation of Indian Industry (CII) and management firm Boston Consulting Group, titled ‘Manufacturing Innovation’, ‘Indian companies were the active innovators compared to their counterparts in the major rapidly developing economies. Between 1999 and 2003, Indian companies had filed more patents as compared to Russia, China, South Africa and Brazil.’

I give just one example quoting from an article in Business week. “Hisense is a good example. Describing itself as “a national high-tech enterprise and technological innovation base,” the manufacturer of refrigerators, air conditioners, computers, and cell phones now invests more than 5% of its annual sales revenue in research and development. The Hisense R&D Center, known internally as Tech-Incubation Park, houses more than 1,500 researchers. In 2005, the company introduced the first Chinese-made “digital media-processing chip.” Company scientists in just the past two years have applied for more than 400 patents.”

Another reference to cost benefits seems to be equally doubtful in reality. ‘According to another report titled ‘Indian Manufacturing in Global Perspective’, authored by research scholars at Indian School of Business, Stern School of Business and consultancy firm Deloitte, “the Indian auto industry had a 6% benefit relative to China in costs due to its engineering capability. A typical Indian auto company bought barebones equipment and developed all the software and detailed tooling in-house, in contrast to the complete turnkey purchase of all equipment and software in China.’ The speed and skill with which the Chinese auto manufacturers can copy the products of the global brands such as those of GM and even Bajaj Auto is a prove that the manufacturing facilities installed in its factories are latest, and the skill is world class.

India can count only on three Indian domestic companies in auto sector- Tata motors, Ashok Leyland, and Mahindra & Mahindra as against the presence of a large number of Chinese automakers with potential to become a force in time. Though Tata Motors with ‘Indica’ and ‘Ace’, Mahindra with ‘Scorpio’ have proven its capability of developing and producing world class vehicle, but they will have to expand their product lines many times and further improve the manufacturing quality to really compete with the global manufacturers. Can Tata Motors, Mahindra & Mahindra, Askok Leyland grow fast enough to be high-ranking major global players in passenger cars, SUVs, and commecial vehicles respectively?

It is true that ‘the profits of companies also grew rapidly during this period as most big companies implemented software programmes to systematise their operations and increase efficiency.’ However, the fortunes of the employees at the bottom of the organizational pyramids have not significantly improved, nor have been a significant increase in employment.

India’s manufactured exports are certainly rising, accounting for more than three fourth of all the sectors exports, and it is true that the manufactured exports of the Indian industry will and can drive the overall growth of the sector. But India must go miles to catch up other developing economy in manufacturing. Besides expansion of scale of the existing manufacturers which is happening, India need a huge number of entrepreneurs to join the manufacturing sector for small and big items. It does not have any significant players competing major global players in passenger cars, household appliances, in electronic gadgets, in heavy industries, in machine tools, and many sectors including networking. The older domestic companies feel comfortable by selling the enterprises with potentials or stagnate because of certain disadvantages of family business. Unfortunately, most of the manufacturers are those who got into manufacturing from trading routes. And with free market, they found it better to give up to the competition of the new breed of traders taking advantage of the free flow of imports.

“According to CMIE estimates, the value addition or the incremental profitability of the Indian manufacturing industry has been slowly declining over the last few years. In other words, though companies grew up in scale, their profitability did not keep up with sales growth during the last four years.” The focus of Indian companies must shift from the ‘cost’ related restructuring to ‘cost plus value’ based strategies. And as clear from the recent CII survey that found 70% of the Indian executives agreeing that their companies would increase spending on innovation in the coming years, the change is coming. In the last five years, the R&D expenditure of Indian manufacturing companies has increased 115% to Rs 4,707 crore from Rs 2,182 crore in 2000-01. The manufacturing sector in India must go for innovations in big way with more and more attractive and new products suiting to both local as well as global tastes at frequent intervals to be in completion or excel.
Indian Manufacturing in a Global Perspective- Setting the Agenda for Growth

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Retail Sector Meet The Aspirations of India?

As reported Reliance Industries has started the retail spree. And as it’s other projects and enterprises, the business is going to be bold and big. It opened nine retail outlets in the NCR last week. By the year-end, the number will go up to 250 stores in NCR. And the company is aiming at opening 6,000 outlets in 784 cities and towns by 2010-11 with revenue hitting Rs one lakh crore. Is it not aiming to become Indian Wal-Mart?

However, the best part of the business model with these big retail enterprises will be its mission to connect farmers to end consumers without involving any middleman. As per the plan, the company will have 6,400 procurement centres all over the country. Each centre will have a cold storage to store the vegetables and dairy products. At the district level towns, the procurement centres will have food processing facilities where seasonal fruit and vegetable will be processed to enhance their self-life. The vegetable and fruits collected at the procurement centre would be aggregated at the district level to supply them to the big cities as per the requirements and process the rest. This will push up farmers’ income, as they would get better price of their seasonal products, and the end customers would be paying less. It will also work out the most efficient logistics and inventory management to cut the cost down.

However, my concern is about its real impact on the prosperity of the farmers. Will it help the marginal farmers? Can they get the best price or exploited by the retail company? Will the other retail companies be following the same model without the middlemen with the social responsibility for the best price for the farmers?

I wish the retail companies would go for contract farming with small farmers and producers providing all sorts of help- credit at low rate, fertilizers, insecticides, and seeds of the best quality, and also the technical support during farming. This is the expectation from the big business houses such as Birlas, Ambanis, Mittals, Godrej, and so many others that are mushrooming in the organized retail sector.

However, there must be some regulator in retail sector too. The big retailers with huge resources must not get tempted to source the commodities from the cheaper foreign producers on the pretext of free market instead of encouraging the local farm producers, food processors, and small as well as big manufacturers of the commodities. Only if these big retailers acquire and own the retail companies in foreign countries, they can help in encouraging and developing the commodities by the Indian manufacturers as per the demand in those markets. At one stage, the organized retail sector can help manufacturing sector grow and expand too. The coming of big business houses in organized retail will be beneficial only if it helps the agriculture and manufacturing sectors to expand fast. Let them not get all the wares and produces on the racks imported from China and other cheaper sources that are happening now.

Tata Chem to distribute fresh fruits/vegetables
‘Carrefour close to signing India retail deal’
Tata-Total Produce JV for retail back-end

P.S>India is the world’s second largest producer of fruits and vegetables. But 40% of the produce is wasted due to poor infrastructure. The fresh produce business is estimated to be worth Rs 1,00,000 crore in India. Total Produce with Tata Chemicls in a new venture is expected to help farmers realise better returns on their produce, besides cut wastage of perishable farm products

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Is English-medium for education necessary?

Balanced scorecard makes better gradeEducation in English is spreading. English is the most sought after medium of instruction in India today. Even in the small towns and villages, the parents are aware that the mastery of English is necessary for a respectable living. I get reminded time and again about my own medium of education at the high school and intermediate in science level. The switch over from the vernacular in school final to English in intermediate science was not very difficult for science education. Why is then English medium spreading so fast and is being recommended right from primary stage even by National Knowledge Commission in its report? Perhaps, the better employability of the students of English medium education demands this.

Kerala and Delhi states ranked at the top of the recently developed Educational Development Index (EDI). However, according to the State Report on Elementary Education in India, 2005, a National University of Educational Planning and Administration publication, Andhra Pradesh has more students studying in the English medium than any other state, followed by Tamil Nadu. The study only account for students studying in government and government-aided schools- primary, upper primary, secondary and higher secondary schools.

In Andhra Pradesh, while 90.34 lakh students out of a total of 1.13 crore students go to schools where Telugu is the medium of instruction, 19.32 lakh attend English medium schools. However, In the EDI list, AP is ranked eighth.

In Tamil Nadu, third on the EDI list, out of total enrolment of 97.8 lakh, 78.2 lakh students go to the schools with Tamil as the main medium of instruction, while 18.06 lakh go where English is the preferred medium.

In Maharashtra, 7.58 lakh go to English-medium schools while 1.04 crore go to Marathi-medium schools.

In Bihar and UP, English-medium students lag further behind in enrolment numbers. Both the states are the last in ranking. One reason may be the less urbanization of the states.

Surprisingly in Jammu and Kashmir, more students study in the English medium than any other language.

Interestingly, Kerala and Delhi states ranked at the top of the recently developed Educational Development Index (EDI). EDI rankings did not take the medium of instruction as a performance indicator. But students enrolled in English-medium schools are only a small fraction of those receiving instruction in Malayalam and Hindi respectively. In Delhi, Hindi is the most favoured medium with nearly 15.5 lakh students opting for schools with national language as the medium of instruction. Again, English is way behind with only 4.34 lakh students going where it is medium of instruction.

The medium of instruction for the subjects other that English must be the vernacular. The kids at the tender age coming from all sorts of social status can’t be sufficiently comfortable in understanding the subject if taught in a language that is not their mother tongue.

The Kerala and Delhi model can work and are better. Students may start learning English from the primary class itself and can continue learning up to school final or higher secondary as one language. The medium for other subjects may remain the language of the majority of the students- one of the major Indian languages. But the emphasis must be on using newer techniques. The students after 12 years or more for school final or higher secondary must be able to communicate perfectly in English. They need not be mastering the fine intricacy of grammatically correct English and appreciate the finer literary aspects of English writers and poets. But they must be as good in written and verbal communication as those studying in English medium or better. Teaching, testing, and examination must aim for attaining this skill of communication through rigorous language labs, group discussions, dramas, debates, and presentations through audio and video aids. And that will serve the purpose of the market.

However, it will require first the training and development for the teachers responsible for teaching this foreign language to the students. Students can’t be expected to learn a language from the teachers who themselves are deficient in communicating in English language. And that must be taken care of on priority in education.

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Congratulations to Ratan

Congratulations to Ratan Tata and all in Tata Steel

Whenever the history of Corporate India’s coming of age is written, Tata Steel’s acquisition of Corus will figure as a landmark event. Acquisition was a matter of pride. Tata will pay $12.15 billion (around Rs 55,000 crore) in cash for the Anglo-Dutch steelmaker, making it the largest acquisition by an Indian company and the second largest in the industry after Mittal Steel’s $38.3 billion acquisition of Arcelor.The acquisition makes Tata Steel the world’s fifth largest steelmaker, adding 19 million tonnes of steel-making capacity.

Surprisingly, the stock market, amid fears that Tata Steel may have overpaid, beat the stock down 11 per cent on the Bombay Stock Exchange. The global rating agency Standard & Poor’s today put its BBB long-term corporate credit rating on credit watch with negative implications. CSN gained 6.2 per cent in Sao Paulo and Corus climbed 7 per cent in London. Ratan Tata, chairman, Tata Steel, said: “The market is taking a short-term view and a harsh view… Hopefully, it will look back and say the acquisition was the right move.”

And the people who make it happen, the dream team that backed Ratan

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See ‘India Everywhere’

New York Stock Exchange recently acquired a 5% stake in National Stock Exchange, and has expressed a desire to raise its holding in India’s largest bourse to 20%.

Swiss cement major Holcim is looking to expand its presence in the country by 40% by adding another 10 million tonne manufacturing capacity to its existing 25 million tonnes.

Coca-Cola following in the footsteps of rival PepsiCo intends to launch fruit juices, and as per Kamal Nath, “wants to invest in rural areas besides setting up a university for retailers to help our kirana stores cope better with competition from retailers.”

Tupperware, Carrefour, Metro AG and electronics chain Best-Buy almost all biggies in retail business intend seriously to either set up shop or expand their presence.

Unilever is chalking out plans for expanding food-processing activities in India in a bid to occupy more shelf space in new stores.

Agility, a West Asian logistics company, plans to set up cold chains and private container terminals to cater to the needs of retailers.

Blackstone – world’s largest buyout private equity fund that manages $75 billion fund – has bought 26% stake for $275 million in the Hyderabad-based Ushodaya Enterprises, an unlisted investment arm of media baron Ramoji Rao.

And the Indian companies are on run to acquire the companies abroad.

Ranbaxy is interested in acquiring German pharma major Merck’s generics or offpatent medicines business, estimated at $5 billion, received a fillip with private equity funds and bankers queueing up to finance the bid.

The aditya Vikram Birla Group is seriously exploring the possibility of acquiring Novelis Inc, one of the leading aluminium companies of US.

With Indian stock markets booming, global players are eyeing a share of the pie. NYSE, private equity firm General Atlantic, Goldman Sachs and Japan’s Softbank Asian Infrastructure Fund recently bought 5% each in NSE. Others like Nasdaq and some European exchanges are keen on buying a stake in BSE.

Swiss bank UBS AG bought Standard Chartered PLC’s mutual funds management business in India for 147 million Swiss francs ($119 million) and will form an Asian fund distribution alliance with the U.K.-based bank.
British telecom major Vodafone would submit a formal offer to its takeover target in India, Hutch-Essar, in the second week of February.

Tata Steel is fighting a bidding war with Companhia Siderurgica Nacional (CSN) of Brazil to get Corus under its fold. The UK Takeover Panel has decided to put the Anglo-Dutch steel maker under the hammer on January 30. Tata Steel is expected to raise its current 500 pence a share offer for Corus above CSN’s 515p bid. Corus shares are running high.

The Communications Commission of Kenya (CCK) has cancelled the tender for the country’s second national operator (SNO) licence awarded to Vtel Holdings, for failing to adhere to tender conditions. CCK has now invited Reliance Communications, which was the second highest bidder for the SNO licence.

Infosys aimed at having about 30 percent of the work on its typical contract done in the country where the client is, and the rest done remotely. All of that remote work used to be done in India, but now Infosys has added locations in China, Mauritius and the Czech Republic, and is looking for a location in Latin America.

Moser Baer India is exploring the option of having a research and development as well as manufacturing set-up outside India, to be closer to the US and Europe markets. The company would look at niche segments including highend archiving products, special discs for professional recording and blu ray hi-definition products for movie archiving, amongst others. Moser Baer currently has a small R&D lab in Japan, would explore both organic and inorganic routes to achieve this.

India presents a significant market as well as a significant pool of managerial and technical talent. Further, it is in a rapid growth phase. Various industry segments are growing up the value chain and maturing as businesses and MNCs see it as the perfect time to consolidate in the Indian market. And so India is getting noticed with awe and respect.

Why should one doubt that India and Indians couldn’t make its GDP grow at 10% or more?

Some news reports>Tata team told to go for THE KILL
Could the loser get another chance?

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Media Shortchanging

While for many causes and on number of issues, the Indian media do a great job and has got the due appreciation too. But on quite a number of counts media appear to be shortchanging Indians.

In last few days, I felt miserable as media didn’t satisfy my expectations that might be of many more Indians too. Why couldn’t media cover the profiles of ‘Padma’ awardees? Padma awardees are supposed to serve as the benchmarks and examples by their deeds for the people of all ages of India, particularly for younger generations who will like to take some lessons from their lives.

Why should it not let the people know how Padma Bhushaan, Mr. O. Suzuki, Chairman &CEO, Suzuki Motor Corporation, Japan, contributed in bringing a new revolution in automotive industry when two local and private manufacturers were controlling the whole market and making the consumers pay for their shoddy products? Suzuki was not the top among the auto manufacturers of Japan, but Mr. Suzuki could India’s latent strength. It was for Maruti-Suzuki that Indian manufacturing sector could learn and master most of the Japanese manufacturing practices that makes it a strong force globally. Example is the highly developed auto components sector, exporting $2.2 billion today and hopes to reach figure of $20 billion by 2015 that grew with Maruti-Suzuki as nucleus. Why should the media not write about the success stories of the visionaries that inform and educate the people, otherwise one day one from the ignorant lot can raise question too?

Noted Hindi writer Kamaleshwar passed away on last Saturday. He was a successful and great author of many excellent quality books, short stories, novels, and commentaries with a lot of popularity. He successfully worked in film industry as scriptwriter such as ‘Mausam’. And ‘Aandhi’ with Suchitra Sen and Sanjiv Kumar was based on Kamaleshwar’s novel of the same name. And I am sure many would have enjoyed his Doordarshan show ‘Parikrama’ too. Kamaleswar was impressive. If I am not mistaken, Kamaleshwar also worked as special commentator on special occasion too. Why should English media that reach the most of the middle class of India not cover his death news and come out with a suitable obituary? Was Kamaleshwar lesser in any way with those English writers that are making million these days and all publicity of small screens?

And next comes my worst agony of the day after reading a full throttled story ‘EX &Y FACTOR’ about the India’s top science man, R.A. Mashlekar in one of the few good news magazines. I pity the newsmagazine and the reporter who put in so poor a story just to prove that it is free to print anything about anyone. Instead of writing about the scientific contribution of RA Mashelkar in such a detail, the storywriter has gone by a union leader version of charges that are very usual in any organization. Perhaps, the columnist does not have any idea about the way the union leaders in West Bengal go on charging the management executives. I am sure it would hardly matter, but it is in poor taste and irresponsible journalism. Will the reporter and the magazine try to dig out how all the candidates for the assembly election of Punjab are multimillionaires? If the media don’t help the technocrats, scientists, teachers, and executives become known to the people for the great work done by them and that must be its responsibility, it must not cover such silly accusations that is just personal vendetta and the judiciary would not have admitted the PIL. However, as it appears the magazine is trying to get it branded as one with left leaning. It has published a photograph too with the story where Mashelkar has been shown with RSS leaders giving him some award. However, while concluding the writer says, “the current campaign against Mashelkar is being pushed through by the CPI (M). Left parties have been agitated by the stance that India- and Mashelkar -have taken on the issues of patents, genetic resources and traditional knowledge.” Can some one say why the Congress goes on supporting such an anti-national political party?

I wish media stopped shortchanging the people of the country who still trust it to a great extent.
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Read about a Japanese management tool-Hoshin – managing for objectives
See what our moneyed English writers are producing. Mumbai, Meet The Mob

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Soft Power And India- some views

The term ‘soft power’ was coined by Harvard academic Joseph Nye to describe the many strengths of the United States. Nye attributed America’s world dominance to the fact that the American lifestyle is its most successful export, taking the American Dream global and making its cultural currency-blue jeans, burgers, Beyonce, Hollywood-the currency of aspiration. Soft power “is the ability to get what you want by attracting and persuading others to adopt your goals”- multiculturalism, democracy, and a free press.

India has much more of past and present that can make its excel. India is a resilient and vibrant democracy, a multicultural federation with an astonishingly complex mix of race, religion, caste and language, a great civilisation with a rich artistic heritage and history that can be excavated all the way back to Harappa. The recent achievements of Indian entrepreneurs has ushered in a season of hope.

I happened to watch a panel discussion- ‘Is India poised to take off as a global soft power?’, organised by ‘The Times of India’ as part of its ‘India Poised’ campaign.

Some of the interesting and informative aspects of the interactions were as follows:

Shashi Tharoor– “England’s curry houses employ more people than its coal, oil and shipping industries combined.” The country’s core strengths are its remarkable multiculturalism and successful management of diversity. “One of the most extraordinary events took place when a Roman Catholic stepped aside for a Sikh prime minister who was sworn in by a Muslim president. I was traveling in the Arab world at the time and I remember the effect it had. The best thing of course is that it wasn’t aimed at the rest of the world. The fact that we can enshrine this diversity is remarkable.”

Mahesh Bhatt– “Let us have the guts to confront our innermost, hideous selves and stop talking about our status as a spiritual civilisation. I was recently in Benares where 15 lakh people were taking a dip for moksha…and at the same time, an old woman died of neglect on the street. ” “We pat ourselves on the back for being secular. But the Sachar Committee has been a slap in the face of the government. What have you given the Muslims in 60 years?”

Jaggi Vasudev: “Mark Twain (who visited India in 1896) said, ‘Anything that can ever be done by God or man has been done in this land.’ But in all this talk about divinity, we have forgotten about humanity. At every street corner we have built toilets, not temples. A pee is more important that a prayer; it is certainly more compelling than a prayer.” “A lot of junk spirituality has gone to the West over the years. People do a two-week course and think they are spiritual teachers or read one chapter of a book and become teachers.”

Shobhaa De: “We haven’t really leveraged our strengths. Why are we still crawling to the West for attention? When I wrote Starry Nights years ago, it was torn to shreds. But at the recent Frankfurt Book Fair, my books received huge acclaim. Starry Nights is being read all over now. We constantly seek appreciation from the West and that is why we embrace writers with any kind of India connection. Let’s face it, the only book we’ve ever produced that really counts in the West is the Kama Sutra. Writers like Jhumpa Lahiri and Salman Rushdie who live abroad and are shaped by those societies, cannot strictly be called Indian. The only three writers in English of significance that India has produced are Arundhati Roy, who I think is brilliant, Vikram Seth and R K Narayan. I think this whole thing is pathetic-begging for an Oscar, begging for a Booker, begging for a foreign readership.”

Prasoon Joshi– “What kind of image are we portraying to the world? “We need to define India. Bollywood is hardly India.” A Vikram Chatwal wedding becomes India. What we are projecting now is a caricature. Premchand’s body of work is much greater than Jhumpa’s, but more people know about Jhumpa’s work.” “India is a coexistence of contradictions.”

Mahesh Bhatt: “I have met the kind of Indian you need to project. He is a boatman in Bastar, deep in Madhya Pradesh, who charges Re 1 to ferry people across the river. I asked him, ‘Bhai, are you aware of the bridge the government is building? Phir tumhara kya hoga?’ He replied, ‘Humara jo hoga so hoga, logon ka bhalla hoga.’ That generosity of spirit is what defines the true Indian, not the man who is a wannabe, who craves for the West’s attention”.

Neville Tuli– “In order for a country to become a power its three value systems have to move in harmony: its economy, spiritual core, and culture. We have no great cultural infrastructure. What I have tried to do is give financial self-sufficiency to the arts. At the heart of the arts is knowledge, and we have failed to build the infrastructure that will transform that knowledge into wealth.”

Sadhguru– “In every profession there are fakes. There are fake engineers, fake doctors, and fake gurus. When it comes to gurus, the hurt is much deeper since you go with greater expectation and trust. This expectation is no new thing, but something that has been built up over generations. Yes, there are people shivering in the cold. You cannot talk spirituality to them and no fool is talking to them about this either. But just as much as there is a need for economic well-being there is a need for inner well-being.”

Neville Tuli: One of the problems facing India was the conflict between the intelligentsia and materialism. There is a deep sense of pseudo-corruption among intellectuals who feel that if they enter the world of commerce to implement their ideas, they somehow corrupt themselves. “And when you try to get good people on board you have people saying you’re trying to advertise your art fund.”

And then Shobhaa De explained what ‘India Poised’ is. “When we say India Poised, we are recognising a psychological moment. Today we are proud to be Indian, which we have not been for a long time-and thank God it’s not linked to cricket.”

And the next moment the news came. India lost the match with West Indies<

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Happiness- the goal of all other goals

The views of Deepak Chopra gave me a feel of a management tool, ‘Root Cause Analysis’. Perhaps the tool can be used for all the problems including getting happiness too. Deepak Chopra says:

Over the course of my career, thousands of people have come to me with various problems and challenges in their lives. My career began as a physician, and in the beginning, most of the people whom I met, had some form of illness such as heart disease or cancer. One day I was sitting with a patient, who had heart disease and I happened to ask him, ‘Why do you want to get better?”

The look in his eyes told me, ‘What kind of ridiculous question is that?” He said “Doesn’t everybody want to get better when they’re sick?” Yes, I said,” but why do you want to get better?” He replied, ‘If I get better, I can go back to work and make more money.” For some unknown reason, I persisted in asking him why. “Why do you want to make more money?”

Apparently amused, he agreed to play the game and said, “Because I want to send my son to a good university.”

I asked him why he wanted to send his son to a good university. I kept asking him the question, “Why, why, why?” In the end he answered, “Because I want to be happy.”

Since then, I have played this game not only with sick patients wanting to get better, but with anyone who wants anything. You can try this yourself. Ask anyone what they want, and when they tell you what they want, keep asking why, until you hear the ultimate answer: “Because I want to be happy.”

Happiness seems to be the goal of all other goals, and yet most people seek happiness in a roundabout way.

We have material goals as in wanting a better house, a better automobile, or items of luxury. We have goals that deal with relationships. We want to feel safe; to feel that we belong; we want to be able to express ourselves freely and creatively. Some of us might want wealth or fame; others might seek power. But if you ask people why they want these things, the ultimate answer remains the same: They believe that if they attain these things, then they will be happy.

The happiness out of the material possessions and personal achievements are very much short-lived. One can’t go on possessing and achieving that fast. One must search for it in the numerous sources with a speed good enough to be prevailed by anything that can take away the happiness from him.

I have tried to find when do I feel happy. One will laugh when I reveal that. I feel happy when I get to know of a good book or come across a good article on a subject of my interest. I feel happy when I hear about someone who have achieved even against all odds. I feel happy when my friend, Shri Singh, an advocate by profession, talks of his winning a case because of his arguments that impressed the judge. I feel happy when a media enterprise takes an initiative such as ‘India Poised’.

I believe we must look for happiness all around and in all the incidents of our life. Perhaps, there is no other course to get to the happiness as goal.

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India Poised, But vs. China?

I was excited by the most prominent top headline on January 24 in ‘Times of India’, ‘India to overtake US by 2050′. Goldman Sachs’ research arm in a global research paper has scaled up estimates of the country’s prospects in its October 2003 research paper widely known as the BRICs report. Productivity growth will help India sustain over 8% growth until 2020 and become the second largest economy in the world, ahead of the US, by 2050. India’s growth acceleration since 2003 represented a structural increase rather than simply a cyclical upturn. Productivity growth drove nearly half of overall growth and expected it to continue for some years.

”We project India’s potential or sustainable growth rate at about 8% until 2020. The implication is that India’s contribution to world growth will be even greater (and faster) than implied in our previous BRICs research,”

The original report had projected that India’s GDP would outstrip Japan’s by 2032 and that in 30 years, it would be the world’s third largest economy after China and the US. The new report goes one step further by moving India up from No. 3 and No. 2 in the global sweepstakes of tomorrow. A turnaround in manufacturing productivity was central to the ratcheting up of productivity growth. The private sector was the principal driver of this turnaround, as it improved efficiency in the face of increased competition due to the cumulative effects of a decade of reforms.

Average tariffs have fallen to below 15% from as high as 200% as India began to reintegrate with the global economy. The impact of opening up has been significant. Exports have risen 14 times as India has rapidly gained trade share. This development has been most evident in the past 3 years, when trade has grown, on an average, 25% a year.”

Productivity in industry and services is more than four times that in agriculture, which employs nearly 60% of the labour force

Since 2003, there has been a structural increase in potential growth to nearly 8% from 5%-6% in the previous two decades

From 2007 to 2020, India’s GDP per capita in US$ terms will quadruple (a third higher than the original BRICs projections).

Indians will also consume about five times more cars and three times more crude oil as compared to 3.5 times more motorcars and 2.3 times more oil estimated by Dominic Wilson and Roopa Purushothaman in October 2003.
More than 100 million people are estimated to enter the labour force by 2020

India has 10 of the 30 fastest-growing cities in the world and is witnessing rapid urbanisation.

140m rural dwellers will move to urban areas by 2020, while 700m people will urbanise by 2050

But ”India will have to educate its children and its young people (especially its women) and it must do so in a hurry. Lack of education can be a critical constraint to the growth of the knowledgebased IT sector, as well as in the move to mass employment in manufacturing. The demographic dividend may not materialise if India fails to educate its people.”
(The President’s confirms the prediction.)
While I was happy with this report, an article by Shankar Acharya, ‘Only one new Giant for now?’ Honorary Professor at ICRIER and former Chief Economic Adviser to the Government of India gave me the running commentary of India’s status in global economic race.

India has been a gradual “globalizer”, China’s surging development has been far more intensively based on global trade and capital flows. China’s integration with the world economy has accelerated sharply over the five years 2000 to 2005, as well as the much milder rise in India’s international economic integration. For example, China’s goods exports increased by an amount, which was five times India’s total goods exports in 2005. During these scant five years China’s share of world exports jumped from 3.9 to 7.3 per cent, while India’s share rose sedately from 0.7 to 0.9 per cent. The increment in inward FDI flows into China was seven times total FDI inflow into India in 2005. Similarly, the increase in oil consumption in China was almost equal to India’s total oil consumption in 2005. Aside from the dominant factor of China’s full-blooded embrace of global opportunities (compared to the much more hesitant policy stances adopted by India) there are several other reasons which explain these strikingly different outcomes. First, over the last 25 years, China’s per capita growth rate has been about double India’s, around 8 per cent as compared to 4 per cent. So, depending on how you measure it, today China’s economy is perhaps two and a half times as large as India’s.

Second, India’s growth has been propelled more by domestic consumption than external demand as compared to China. Third, China’s growth has been powered much more by the rapid growth of industry, especially labour-intensive manufactured exports, while in India the growth of services (mostly non-tradeables) has been more dominant. (It is a striking fact that the share of manufacturing in GDP in 2004 was only 16 per cent in India as compared to nearly 40 per cent in China.) Even in services, China’s total services exports exceeded India’s in 2005 and the increment over 2000 was comparable in absolute terms, though the rate of growth was lower. The one area where India has displayed China-type growth rates is software exports, which quadrupled from about $6 billion in 2000-01 to $24 billion in 2005-06. But even in 2005-06 the IT/ITES sub-sector accounted for less than 3 per cent of India’s GDP and employed about 1.3 million workers directly (and perhaps double that number indirectly). By itself this sector cannot be expected to transform India’s economy and employment profile.

It is only fair to acknowledge India’s development as simply lagging China’s by 10 to 15 years. Barring unforeseen political or economic turmoil, in the next ten years the global economy will have to contend with only one new burgeoning “giant”.

And that is my agony as well as the challenge for all Indians. I wish the politicians also would have been with the rest of the Indians.

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