Jesus Christ and Gandhi on This Christmas

On this holy day, I came across two stories that try to change the prevailing notions about the two great persons that the world produced.

The Times of India published a story by David Leafe, ‘Did Jesus have a secret family?’, from Daily Mail on December 24,2006.

Deep in the Judean desert, in a remote part of the Holy Land that has changed little since Biblical times, stands an ancient Greek Orthodox monastery with a highly unusual portrait of the Holy Family in its chapel. Showing young Jesus being carried on the shoulder of Joseph, while his mother Mary rides behind them. Next to Jesus, Mary and Joseph is a mysterious fourth figure – a young man with a golden halo who is wearing a simple dark robe and carrying his belongings on a stick. is name is James and, a controversial Channel 4 documentary to be screened on Christmas Day has made a story out of that. According to the programme, Jesus did have a hidden family. Not a wife and daughter, but brothers and sisters: James, Joses, Simon, Jude (sometimes referred to as Judas), Salome and young Mary. These siblings apparently played a key role in founding Christianity, but their teachings proved too dangerous for the church. The documentary claims the church tried to eradicate them from history by rewriting Christ’s story, fabricating his birthplace, falsely crediting him with the Lord’s Prayer and inventing the idea that his mother Mary remained a virgin lifelong.

Dr Robert Beckford, a committed Christian and reader in theology at Oxford Brookes University is the author of the programme. According to Dr Beckford, the Bible supports his arguments.

The St Gerasimos monastery houses that intriguing painting of the Holy Family that dates back many hundreds of years and clearly shows the relationship of James to Jesus. Dr Beckford believes that the early clerics suppressed such portraits because they knew these were Jesus’s full-blood brothers and sisters. The same censorship is apparent in the Gospels. Both Matthew and Mark mention Jesus’s family briefly, but although the Gospel of Luke drew heavily on these earlier works, it does not mention any other children of Mary and Joseph. Dr Beckford maintains that the reasons for this censorship can be found in a vicious power struggle among the early Christians in the years after Christ’s death in approximately 33AD. The Gospel of John suggests that Jesus asked his disciple Peter to take care of his flock and, indeed, it is Peter who is traditionally regarded as the first leader of the Christian church.

And then Mr. Singh passed on to me last evening the latest ‘Outlook’ that has a story by Rajmohan Gandhi, the grandson of Mahatma Gandhi, Bapu’s Human Tryst’. It deals with the passionate love relationship the Mahatma had with a fiery beauty from Bengal called Sarladevi.

It was the one relationship in his life that even a compulsive confessor like Gandhi barely spoke about, keeping her deliberately out of his otherwise candid autobiography. His grandson reconstructs the story in his forthcoming biography, ‘Mohandas: A True Story of a Man, His People and an Empire.’

Why are these stories written? Does it serve any purpose? The views may be inferences from some circumstantial evidences in letters and painting, but may not be the truth. Even what the eyes see many times and try to infer or conclude are not truths. Are these stories created to get a fame to become a thinker who went out of the traditionally accepted notions? Why should we hurt the feelings of millions and millions of human beings who worship them as lords?

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2006-12-24 06:29:44
IIT Alumni 2006 Global Conference- My Views
The President inaugurated the Pan IIT 2006 convention in Mumbai on Dec 23, 2006 that will discuss for 3 days the initiatives and projects to transform India with focus on governance, knowledge economy, entrepreneurship, poverty eradication and advanced technologies. An ad says, ‘Participants include over 40 IITians who have contributed towards nation-building.’ A question flashed in my mind and morosed me. Have the rest of the thousands of IITians passed out from IITs not contributed? Many IITians could have become more distinguished ones, if the circumstances in which they worked would have been more conducive. If I just start thinking about some of my own friends, each performed differently. Some who were more distinguished in the performance in IIT couldn’t do that great in real life. Dhingra, Budhani, Shikhar, and Agrawal couldn’t become distinguished. Why can’t the conference such as this one look into the factors that make a person with all the potentials just an average one? How can the system produce the ‘distinguished’ ones more and in abundance?

Another observation is about the focus of this and other conferences. Why should not IITians just focus on making their own IITs more distinguished and comparable to Stanford, Harvard, MIT, and Carnegie Mellon with regards to scale, the quality of teachers, contributions to industries and society, innovations and researches?

And if the IITians have some real spareable resources, why should they not help the schools and colleges, and their own village and small towns that they came from before joining IITs?

Next year I shall be celebrating the golden jubilee of my admission in IIT, Kharagpur in 1957. It gives me an immense happiness that I am still continuing to contribute in my own ways with small little ideas in my writings.

IITs must add more value to social grid: Kalam
Tharoor at the Pan IIT 2006 meet in Mumbai
George Soros participated in Pan IIT 2006

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2006-12-22 21:26:23
End of Poverty-Some Questions
As per the figure coming from different sources, 28% of the Indians are below the poverty line. Let us look at the definitions.

Official estimates are based on a norm of 2,400 calories per capita per day for rural areas and 2,100 calories per capita per day for urban areas. These calories level, if translated into money for food, means, anyone earning more than Rs 600, as of 2005, is considered above poverty line.

The World Bank defines extreme poverty as living on less than US$1 (PPP) per day, and moderate poverty as less than $2 a day. And what it means in simple word is the dismal living condition. According to the World Food programme, nearly 50% of the world’s hungry live in India. Another report says 35% of world’s poor live in India. Is it not an abysmal situation, extremely worrying, and sufficient to make you as Indian look a pygmy?

What is this number? Is it the number of individuals or households? If it is the number of individuals, does it include all children as well as old men who can’t work? If it is households, does it consider the income of all the earning members correctly? Are the people hesitant to give the correct figure just as some do to escape the income tax?

I see all around and find in households below BPL, more than one member of the family contributes to the overall earning of the household. For example, I have an assistant to help my wife in household works. We pay him good money plus all the food and clothing and other expenses plus some more tips at times. His mother also works, while his father plies a riksha. I don’t know if these facts are recorded in data collected. If all the earnings coming in family are concerned the household must fall in ‘moderate poverty’ or may be a little better.

My only apprehension is that the system must not encourage people to keep themselves in BPL category. All the schemes must empower them to be proud citizen and encourage them to explore all means to improve their earnings.

Let us look at the aspect about going to sleep without food. Almost 70% of so-called BPL households live in rural India and most of them have dwelling of their own. This is a boon, but one will have to work hard to exploit every bit of it. The household can grow some vegetables such as different kinds of pumpkins that grow as bumper crop. It can grow on the roof of the house. They can also easily plant some fruit bearing trees such as jackfruit that can serve them as some nutritious dishes in their daily intake and may earn some extra earnings too. Additionally, the households can also have some animals such as buffalos, cows, goats and poultry that can produce the nutritious content of the food requirements. Why should the household depend so much on the doles from the government? Why should they not look into possibility of growing all that they can?

I know many will not agree to this. However, I am of strong opinion that unless the people are empowered to find their own way to earn their living they shall go on getting more and more lazy and dependent that can serve only the politicians.

Read T N Ninan: How to be `inclusive`

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2006-12-22 05:07:54
India’s Manmade Power Crisis
India dreams to be the major global manufacturing hub with labour intensive industries-small and big, spread all throughout the country. And almost every one, be it the Prime Minister, or the Finance Minister, or the head of Planning Commission, agrees that manufacturing can only play the role of saviour for the teeming millions youths in India.

Is it is possible without having sufficient capacity in power generation and efficient transmission and distribution? The answer is simply a ‘no’.

The country must have abundance of power to reach right up to all the villages so that manufacturing can go everywhere to engage the people productively. Is it possible to have the power in abundance and soon? Perhaps here also the answer is a plain ‘yes’.

Recently concluded Nuclear deal with US for civil use, mainly for generating the clean power had maximum media coverage. But it is not going to happen tomorrow or on short term. Instead India must follow the power projects based on traditional fossil fuels that have already been conceived.

Why has India not overcome the pwer shortage till date? The answer is simple. It is plain failure of the execution of the projects in time. The majority of power generation is in public sector. And the public sector starts big projects, but never completes it in scheduled time. The projects of private sector also suffer due to many controls. For example, Reliance Dadri Project is one such.
And how will India achieve the sufficiency in power in future? India must have to do away the red tapes causing the delays. It must complete a power project that it takes up, at the most in 3-4 years following the best world standard. And that is doable.

NTPC remains the main power plant builder for India. It must become a 1,00,000 MW company. Many private players are also now in the field with Reliance Energy and Tata Power as main. Many other domestic as well foreign players are ready to jump or are already in the race, as it was evident in the recent bids for the mega power projects.

BHEL remains the sole major provider of power plant equipment. Many are sceptical about its ability to maintain the supply to all the projects in process. Naturally, either BHEL adds on its capacity by expansion or acquisition, or the entrepreneurs will go for alternative import route. And the government must not put any restriction. This is not the time to encourage the growth of an enterprise, as it is domestic and hold the growth of the country. The task is decidedly onerous for the suppliers of power plants manufacturers if India is to achieve the target of adding 66,463 mw to its generation capacity in the 11th Plan Period and another 86,500 mw in the 12th Plan Period.

And if the two warring ministers wish so, NTPC can go additionally for the manufacture of plant and equipment, and BHEL can go for setting up power plants on its own in natural process of expansion and diversification. But let it be decided by the CEOs and their technical teams of the two companies rather than the ministers.

Can India then add 1,50,000 MW of generation capacity in next 5-8 years? It must. The capacity must have a good lead over the requirement. Let all the private power companies be encouraged to go full blast. As reported, REL has lined up close to a dozen projects to take the company’s installed capacity to around 18,000 mw by 2012. Tata Power has similar ambitions. Many in the country are having similar ambitions to be a major player in power sector. The government and its bureaucrats must facilitate in all manner in cutting down the time for the initiation and the completion of the projects.

Two ultra mega projects of 4,000 MW each are already approved. Hyderabad-based Lanco Infratech, in association with the Singapore-based Globleq, has won the bid for the pithead project, Sasan in Madhya Pradesh by offering a price of Rs 1.19 per unit. Tata power emerged the winner for Mundra in Gujarat. Tata Power’s tariff bid for the imported coal-based Mundra power project was the lowest at Rs 2.26 a unit. Tata Power has joined hands with Siemens and Doosan for equipment procurement and construction. Number of companies participating with a total of 16 bids for the two projects brings hope. There is a 14-month limit for financial closure and commencement of construction too. And many more of the mega power projects are in pipeline.

The significant decisions for locating the power plants near a port or at pitheads are already in place. It will eliminate the delays in coal movement between the coalmines and the power plants.

The efforts are on for all avenues to kill this bug. Tamil Nadu and Gujarat are leading a revolution in renewable energy installations and generation, especially from wind. Major wind turbine manufacturing companies are making investments to manufacture renewable energy equipment. Investments are taking place in solar energy, co-generation, biomass and biogas-based power projects.

Naturally, parallel actions are also directed for de-bottlenecking of the transmission and distribution by cutting down the huge losses too. Power conservation is another area that must get a lot of attention.

One can think of an India with surplus power in next five years. And it must happen.

Read “Will ultra-mega power projects deliver?”

It’s boom time for equipment makers with the…Power sector on high voltage

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2006-12-21 16:40:10
Next Bill Gates From China or India
Chidanand Rajghatta provides this information in one of his report in ‘The Times of India’, Deceember21, 2006. A cartoon on a blog run by 463 Communications had a headline that read: ‘American Say Next Bill Gates is currently Studying Math in Beijing.’

A new survey of Internet Attitudes in the US released by Zogby International and 463 Communications showed how Asia’s tech ability is getting into American minds.

Nearly half of all Americans (49%) believe that the next great technology leader will come from either China (26.7%) or Japan (22.4%). Only 21% believe he or she could come from the US, while a surprising 13% backed India as the next home of a prospective Billji. The other two of BRIC- Russia (2.1%) and Brazil (0.4%) were also among the choices.

However, higher-income group of Americans ($1,00,000 salary and above) were more bullish about American prospects, listing US first (27.6%), followed by India (25.9%) and then China (23.1%).

Naturally for those higher up the economic ladder, who are more in contact with Indians as colleagues in offices or in business dealings, saw almost as much promise in India as in the US and China.

As I mentioned somewhere, it is this brand image of India because of the Indians in US, say some IITians that made the representatives of the nation to agree for US-India Nuclear Deal almost unanimously.

But I feel India has already its Bill Gates who needs to be emulated by more and more Indians and may be American entrepreneurs of tomorrow in US. Dhirubhai Ambani and Lakshmi Mittal were no way less than Bill Gates in their arena.

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Zooming or Booming Indian Economy

The major media players as well as financial institutions world over are watching India moving in faster gear in the global competition. While Tata and CSN war over Corus is on, other Indian biggies are fully busy with their own acquisition projects. Even PSUs such BHEL are preparing to go for some big kills. Some of the reports and studies confirming the zooming booming Indian economy are here:

According to the reported assertion from global research firm Credit Suisse, India is set to surpass China as the fastest-growing economy in Asia next year on the back of increasing consumer demand and public investment in infrastructure. In its December forecast, the firm upgraded India’s economic growth rate to 9.5 per cent in 2006 from 8.5 per cent projected in September this year. The economy is predicted to grow by 10 per cent in 2007 and 10.5 per cent rate in 2008.

A report by McKinsey and Indian trade association Nasscom says India’s BPO export revenues will surge 37% by 2010, to touch $25 billion, from the current $7.5 billion. According to Sourabh Kaushal, who leads the ICT Practice at research firm Frost & Sullivan, of the 600 BPO companies in India, 65% are captive and 35% are third-party vendors.

India has progressively improved its ability to compete as measured by the Switzerland-based International Institute of Management’s (IMD) World Competitiveness Yearbook (WCY), jumping from 50th position in 2003 to 29th place in 2006. The ranking analyses the competitiveness of 61 economies on the basis of over 300 criteria dealing with economic performance, government efficiency, business efficiency and infrastructure.

India boasts the world’s largest population of qualified engineers, an impressive availability of IT skills, and one of the youngest demographic profiles. But competitiveness is enhanced with resourceful management of change, anticipating and adapting better and faster than competition. Here, India has a major asset, ranking fifth for its “resilience of the economy to economic cycles”.

In the global ranking, India ranks 29th this year. The WCY also gauges India’s performance within regional and peer group rankings based on population size and GDP per capita. India ranks ninth out of 15 economies in the Asia-Pacific region, 10th out of 30 economies with populations greater than 20 million, and its best ranking: fifth out of 25 economies with GDP per capita less than $10,000.

India gained on three of the four major factors that IMD uses to measure competitiveness. In Economic Performance, India rose an impressive five ranks from 12th to seventh, primarily due to a stronger domestic economy than last year. India’s real GDP growth in 2005 was a booming 8.1% and business confidence was more optimistic than in previous years. We are now starting to see the positive impact of economic reforms undertaken in the past.

The ranking for Government Efficiency progressed from 39th to 35th, with the best performance in Fiscal Policy (12th). India is in above average position for Business Efficiency, increasing from 23rd place last year to 19th; but there has been no change in the Factor ranking for Infrastructure (54th). This last measurement analyses the efficiency of basic, technological and scientific infrastructure, as well as health, environmental concerns and education. That the ranking has remained flat reflects lack of investment in basic infrastructure.

India is moving fast for development from a “working power” based on a supply of low-cost labour to a “brain power” comprising skilled and educated workers.

According to IDC, China will maintain its position as the largest IT market in the Asia-Pacific region, excluding Japan–making up 32 percent of the region’s IT spending. The Chinese market will be trailed closely by India at 23 percent, IDC said. Both countries are expected to account for the lion’s share of the region’s IT spending at more than 43 percent.

With the encouraging figure of the GDP for the first half of this fiscal year available, the confidence level is pretty high. The finance minister must be pretty happy, but for the higher inflation. Impending pressure of the pay commission and the political pressure for popular projects may be some unpredictable speed breakers worrying the FM that are to be smoothened to sustain the growth and boom.

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2006-12-20 07:16:02
Steel And Textiles- Where Indian Business Houses Failed
India would have developed textiles as well as steel as ‘national’ industry just as we had national bird and national flag. Besides some failures of the government, the big Industrial houses too failed the country that could have become the largest producers of textiles as well as steel.

Most of the big industrial houses such Tata, Birla, DCM, and Wadia were in textile sector. Some of the entrepreneurs also started manufacturing textile machines too. India was the largest cotton producer of the world with a glorious history of textiles since the Harappan days. But the business houses didn’t keep the sector changing with the time, and couldn’t grow to the global scale and quality standard as the Chinese did. There was nothing to stop the industrial houses from doing that. But none demonstrated that acumen and zeal to become the big enough and global player. Gradually, the big houses kept textile only as marginal part of the business and many of them exited. Even, the tie-ups for manufacturing of textile machinery didn’t get upgraded and finally made exit.

After the US dropped the quota, the floodgate of opportunity for export of textiles and clothing opened. But the Indian manufacturers in the sector were neither big enough nor had up scaled to take the advantages. However, some of the new ones and some who have come to the manufacturing via trading route are trying to make up the losses with rapid expansion and even global acquisitions. For example, Welspun and Spentex are two among the new ones. I am opinion that India has some special advantages in the textile and apparel sectors. India can easily become the world leader because of its skill and low-cost manpower, its raw material and glorious history of developing unique texture and attractive design. And the future seems to be bright. As reported, the domestic textile sector is poised to attract Rs 2-lakh crore investment, to provide15 million jobs and to reach a $110 billion business volume by 2012. India would join the top five textiles markets (after the US, Germany, China and the UK) with a size of $55 billion by 2015. According to a World trade Organisation study, India’s share in clothing is projected to increase from 6% to 9% in EU and from 4% to 15%in the US.

In steel sector, Tate made a wonderful contribution to the nation by establishing the first steel plant at Jamshedpur. India had huge iron ore stock. The steel plants could always come with captive power plants too. But after independence, the sector didn’t grow much. Tata Steel couldn’t provide the lead. Nehruji had to come with the steel plants in public sectors that grew in size with number of additions, but that couldn’t match the best of the global steel companies in scale and product lines.

Tata Steel had its mines. Later on it came in power sector too. It had an excellent engineering and growth division to develop plant and machinery for the steel industry. Tata Steel claims the lowest cost steel producer of the world, but it didn’t expand fast to the world-class capacity or with product lines to meet the requirements of various sectors. Tata took all the advantages that the government came out with in interest of its own public sector steel plants and maintained very good profitability, but it miserably failed to add new plants and product lines to come in the list of the five biggest plants of the world. It was basically a lack of management strategy and ambition. It could have certainly come to the fifth position on its own what it is trying to do by buying Corus so frantically. Even today I ma not sure how serious Tata Steel and other entrepreneurs in the sector are to complete the green field projects of huge capacity in Jharakhand, and Orissa for which it has signed MOU. Many feel it is all for acquiring mines from the government. An expert in the sector commented, “The whole idea of announcing green-field projects is for mines. Now, with Corus acquisition, Tata Steel will not get additional mines, because Corus is not integrated backward. So they will require additional mines to feed Corus as well.” With so many years in steel sector, why should Tata Steel and others be apprehensive of the entry of Mittal, Korean Posco or Chinese steel manufacturers? Even Paswan today suggests that Steel Authority of India Ltd (SAIL) should emulate Tata Steel in expanding globally.

Why India can’t think of building a steel manufacturing capacity anywhere near to the Chinese one? Does India lack anything else but the support from the politicians and NGOs? Should Indians be happy that a total 116 MoUs have been signed with an intended capacity of 150 mt and an investment of Rs 3,57,000 crore? And the minister proclaims that production of steel will touch 80 million tonnes (mt) in India by 2011-12. What a low level of ambition for a country leader?

I am still of the opinion that the textile with apparel and the steel must become the national manufacturing sectors of India. And India must be its largest producer in the world.
Latest> Arcelor Mittal gets OK to build $9 bn India plant

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Corus, Tata, And CSN- The war of nerves

I am sure all those who are closely following the story that started with the media report of Tata Steel’s historic take over of Corus and the resulting celebration of a sort in media must be getting disheartened with every media report about the possibility of Tata Steel loosing the race. Brazil’s Companhia Siderurgica Nacional (CSN) raised its offer to 515-pence-a-share and announced that in case Tata Steel outbids it, CSN can go further high.

Some expert opined that Tata Steel could stretch its balance sheet to the extent of $10 billion, which would amount to nearly 550 pence a share, without hurting its shareholders’ interest. But many don’t advise this adventure.

Should Tata Steel go for that high a price? Should Tata Steel walk away from the race with its break-up fee of $91 million, if CSN bids anything beyond 550 pence a share?

I have a different view. Why can’t Tata Steel with its strategists think of taking over CSN too? It is certainly stretching a little too far. With CSN already holding 3.8% share of Corus, CSN has certain advantage in the race. But perhaps in war of this sort, one is to be real offensive to win even at some extra cost of it.

Further, can’t some consortium of Indian steel manufacturers group together and buy CSN?

Latest Will Tata get Corus?

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2006-12-18 05:42:57
Nalanda Becomes Brand Bihar
I was skectical about the Nalanda International University project when I made my entry ‘Can International Nalanda University Get Materialized? that also appeared on the website of Bihar Times.’

But got excited when I went through NKSingh and Jessica S Wallack article, ‘Nalanda as an innovation hub’ in The Financial Express, Saturday, December 16, 2006 issue. As it seems, NK Singh happens to be the chief coordinator of the project.

Plans for the university have been discussed at high-level meetings between China and India, India and Japan, and most recently at a multi-country interaction in Singapore, which had President Abdul Kalam participating via teleconference, sharing his views and vision for the Nalanda of tomorrow. The university would have been on the agenda of the postponed Pan Asia Summit at Cebu.

And then I could reach the article, ‘Really Old School’ by the former Dean of the Yale School of Management Jeffrey Garten in ‘New York Times’ as well as ‘International Herald Tribune’ on December 9, 2006.

At a summit meeting of leaders next week in the Philippines, senior officials from India, Singapore, Japan and perhaps other countries are scheduled to discuss the revival of an ancient university in India called Nalanda. It is a topic unlikely to receive much mention in the Western press. But no one should underestimate the potential benefits of this project to Asia, or the influence it could have on Asia’s role in the world, or the revolutionary impact it could make on global higher education.

Founded in 427 in northeastern India, not far from what is today the southern border of Nepal, and surviving until 1197, Nalanda was one of the first great universities in recorded history. It was devoted to Buddhist studies, but it also trained students in fine arts, medicine, mathematics, astronomy, politics and the art of war.

The university was an architectural and environmental masterpiece. It had eight separate compounds, 10 temples, meditation halls, classrooms, lakes and parks. It had a nine-story library where monks meticulously copied books and documents so that individual scholars could have their own collections. It had dormitories for students, perhaps a first for an educational institution, housing 10,000 students in the university’s heyday and providing accommodations for 2,000 professors. Nalanda was also the most global university of its time, attracting pupils and scholars from Korea, Japan, China, Tibet, Indonesia, Persia and Turkey.

A consortium led by Singapore and including India, Japan and others will discuss raising the $500 million needed to build a new university in the vicinity of the old site and perhaps another $500 million to develop the roads and other infrastructure to make the institution work. The problem is that the key Asian officials are not thinking big enough. There is more talk about making Nalanda a cultural site or a center for philosophy than a first-rate modern university.

The rebuilt university should strive to be a great intellectual center, as the original Nalanda once was…..

The original Nalanda might have been the first to conduct rigorous entrance exams. The old university had world-class professors who did groundbreaking work in mathematical theorems and astronomy. It produced pre-eminent interpreters and translators of religious scriptures in many languages.

The new Nalanda should try to recapture the global connectedness of the old one… A new Nalanda, starting as it will from scratch, could set a benchmark for mixing nationalities and cultures, for injecting energy and direction into global subjects and for developing true international leaders.

It appears the dream coming true and with one this project Bihar can rebuild its lost image and glory lost in the pages of the history. Bihar can be prosperous too because of the limitless possibility of investment that can, in proper hand, can go to any amount, even $100 billion.

I dream of a 8- or 10- lane Super Expressway corridor from Lumbini to Boddh Gaya via Vaisalli, Nalanda and Rajgrih with Nalanda as the center of the major attraction with the 21st Century University City of 10,000 teachers and 1,00,000 students from almost all countries of the world studying, teaching, and reasearching the latest knowledge about all the contemporary and futuristic subjects covering arts, sciences, commerce, medicines, law, and technologies.

Can Nalanda get a visionary and missionary to see the project realized?

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2006-12-18 03:37:54
Singur Story- Where Buddha Went Wrong?
In February this year when I was in Kolkata, I got the chance of hearing some of the lectures that the Bidhannagar Mela sponsors arranged. I was amazed. I heard some of the leftist intellectual and political leaders selling the ideas of the state government about the agricultural land acquisitions for industrial development of Bengal. It was a proactive action from the party. It was very much in line with the demand of the day and place. As such, the political parties and its cadre play a major role in everything in West Bengal.

Buddha Babu tried to sell his ideas of building a changed image of Bengal by investor friendly-steps to his cabinet members and party men. Many were sold, but some old and shrewd hardliners didn’t digest his ideas. Buddha Babu knows it but can’t confess publicly. They (CITU, CPM, and cabinet) pretended to agree with the fast track transformation activities of the chief minister, but the differences were there. Moreover, Buddha Babu didn’t show his statesmanship to bring Mamta on his side in his effort to change the industrial development of Bengal. He would have tried to take care of her ego by going to her once or twice for the sake of the future of the state. He would have lost anything in process. He would have convinced that whatever he is doing is for the interest of Bengal and its people and not for his party and cadre. Moreover, when he agreed for the handing over the land at Singur to Tata Motors, he would have realized that Singur was in a Mamta’s party own constituency.

Secondly, Buddha Babu would not have agreed to the demand of Tata Motors for so huge a land area in hurry and that too from a three-crop fertile region and would have consulted experts. If Hindustan Motors could build its huge plant in early 50s in marshy land at Hind Motors (Uttarpara), why can’t Tata Motors build its plant on similar land that was available in Singur itself as suggested by Mamta Banerji to break the stalemate today? Why should it appear that he is going all the way out even neglecting the interest off the local people to help the industrial house? Buddha Babu has his strong cadre force of the party and the whole of the government machinery to help him but its strength should not be used for everything and so blatantly.

Unfortunately, Tata Motors didn’t play a very positive role in the conflict. Even though it selected the plots from the choices offered by the West Bengal government, it would have applied its own commonsense and shown its social responsibility for which it has a name. Tata Motors would have agreed to technical solutions and on its own, preferred waste and marshy land for the plant instead of preferring for the fertile land under cultivation.

Again, Tata Motors would have used its resources to sell the project among the local people along with Buddha Babu’s men. Tata group being the master in developing programme for the local community could have sold the project very easily to the people.

According to Mamta Banerji, about 450 acres of low-lying land is available at Singur itself, unutilised, on the opposite side of the road. She wants the government to restore to the owners plots, claimed as acquired ‘forcibly’ and to utilise the unused low-lying land beside the highway at Singur.

I am sure no one wants Tata Motors to abandon the project in Singur or to shift out. But there is nothing wrong in agreeing to Mamta Banerji suggestion if it is technically feasible.

Latest > Mamata Banerjee’s health going downhill

Price Of Power by Paranjoy Guha Thakurta

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Paternal Sacrifices

Today is Sunday and normally I don’t like to take in some serious topics in my thought process. And these days, I am alone at home, as Yamuna is visiting her village home after many years. When I am alone, many ideas crop in mind. Here are two stories that somehow are troubling me for quit sometime.

One is from Ramayana that is mythological, though many in India believe Rama is a historical figure.

Dasrath was the father of Rama. Dasrath couldn’t bear the separation of Rama, the eldest son when he left for forest. He died after hearing from the charioteer that Rama or even Sita have not returned. Is there any story in other such epics or history where the father or the mother dies because of the separation of the son?

Second story is historical and that is from the Mogul period. Babur started the Mugal Empire in India. Once his son, Humayun was extremely sick and was not recovering even after all the medication by his doctors. Babur prayed to Allah that He takes his life and in return cures his son. It is said thereafter Babur fell ill and died. But Humayun had recovered.

Have you heard of any other story where the father or the mother has gone for such wishes?

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2006-12-16 18:31:18
PM Pleads to Japanese
Our economist PM Man Mohan Singh is presently on a visit of Japan with his party and trying to market India to Japanese. Japanese are as such very difficult people to get maneuvered.
Japanese philosophy of product and process design is based on quality engineering (Taguchi) where conceptualization and planning takes the maximum time, unlike the Western method of working where engineering goes on changing till last moment of putting the product to the customers.

Japanese learnt almost all its modern technologies and management techniques from US, but assimilated and adopted so well that it got branded as Japanese manufacturing system. Prime Minister and his colleagues as well as the distinguished members of CII in his team must do everything to get the Japanese to assist India in making it a significant player in manufacturing. He must facilitate, and remove all the irritating speed breakers in FDI from Japanese manufacturers. Here is some of what our PM said while in Japan.

Today India has emerged as an important player in knowledge-based sectors like information technology, biotechnology and pharmaceuticals. The expansion and modernization of physical and social infrastructure consisting of roads, railways, telecommunications, sea and airports will greatly add to the competitiveness and efficiency of India’s manufacturing sector.
India’s trade and investment ties with Japan are well below potential. Japanese has already been introduced as an optional foreign language in our secondary schools. We hope to see thousands of our youth learning Japanese in the next few years.

In the first half of the current fiscal year our growth rate recorded a new high of 9.1%. The manufacturing sector is fast catching up with the services sector. These two sectors account for almost 80 per cent of our national income. This remarkable growth is being led by an investment rate of 31 per cent of GDP, financed almost entirely by a matching savings rate of over 29 per cent. India’s stable macro – economic indicators lead me to believe that we have the potential to achieve double digit growth in the coming years. Growth has already helped millions of our citizens to emerge from abject poverty, which is reflected in the decline of the poverty ratio from above 50% in the seventies to below 20% today. South Korean consumer brands have moved aggressively into India and their brands have very high recognition value among our consumers. On the trade front, India’s trade with both China and South Korea is booming and grew last year at around 40% with both countries. China’s trade with India is nearly three times India’s trade with Japan and Korea’s trade with India is almost equal to Japan’s trade with India.

Since the end of 2004, over $ 5 billion have been invested from Japan in India’s capital markets. The number of Japanese companies in India has grown by 50% in the last three years. A JETRO survey conducted in 2005, which concluded that the profit prospects of Japanese manufacturing companies was the best in India as compared to all ASEAN countries. As a consequence, more than 90% of such companies in India were planning to expand their operations in the next couple of years.

An economically resurgent India today offers a variety of investment opportunities, both in traditional and new sectors, in labour-intensive and knowledge-based industries. In bio-technology, nano-technology, information technology, automobiles and aerospace, textiles and leather, marine products and in many other areas Japan and India can come together. The focus of our government has been to create world class infrastructure in India. I am personally monitoring all the major infrastructure projects every quarter as head of the Committee on Infrastructure. We have estimated that India’s investment needs in area of infrastructure will be at least $320 billion in the next five years in infrastructure alone. We have estimated that our total investment requirement would be closer to US$ 500 billion.

There are already more than 70 Indian software companies and 5,000 Indian engineers operating in Japan and Indian companies are making significant efforts to train software professionals for the Japanese market. Japanese has already been introduced as an optional foreign language in our secondary schools and the government is committed to increasing Japanese language learning opportunities in India. There are many opportunities for collaboration between Indian and Japanese companies in the area of energy efficient and environmentally friendly technologies. We must exploit this vast latent potential.

Every Indian wishes that India gets closer to Japan through technical tie-ups in manufacturing sector, and Japanese manufacturers make India their low-cost base for manufacturing to supply their produce to nearer markets of West Asia, Europe and Africa.

Read > Sony Outsources IT Development to India

Invite Japan’s toymakers to India
`For Japan, India is a first mile investment’

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Has Bengal Changed?

Yesterday strike and its Bengal style have showcased Bengal with its real face that goes unbearable and inhumane when it comes to general protest by CITU. The protesters use all innovations to create inconvenience to the people both domestic and also poor foreigners who have been very lately changing their mindset about India and Indians because of their colleagues in offices back home.

Let us see what happened yesterday.

Kolkata airport: Jurgen Vanduffel is having his longest transit ever at any airport across the globe. A professional diving instructor from Belgium, Vanduffel was among the 130 passengers stranded at Kolkata airport due to the strike. ”I knew it is a Left-run state, but had no idea that life would come to a halt because of a strike. Now I can’t even venture out of this place. Imagine getting stuck here without food,” said Vanduffel.

‘This is my first trip to India and may be my last one. How can the government allow the protesters to shut down everything? And if bandhs are like this, we should have been informed by the airline so that we could have decided whether to travel here at all,” added Greg Raymond from Australia.

Writers Building: Buddha Babu spent a full day in office (all alone), but the rest of Writers’ wore a deserted look, as almost all rooms remained under lock-and-key.

Howrah Railway Station: Some local and long-distance trains did reach Howrah station early on Thursday, but it was full stop from 6 am. A few taxi drivers were willing to defy the bandh, but for a fat fee – Rs 900 for Salt Lake, Rs 500 for Shakespeare Sarani…

Sector V- IT City: Despite police bandobast in Sector V, the shutters were downed in a hurry and the autorickshaw drivers switched off their engines as the clock struck 6. “Bandh shuru hoye gechhe (The bandh has begun),” shouted someone. The early hours of hectic activity over, the man in charge of logistics outside Wipro – the biggest BPO outfit in the city with over 2,500 employees – could afford a smile. “Our last pick-up car arrived before 5.15 am. Everybody is in,” he announced.

Durgapur: S.P. Badyakar was stopped around 10 last night when he was on his way to work on his scooter. He had planned to stay at the plant overnight. Citu activists ordered him to go back. When Badyakar said he was a senior executive and wanted to work, the men beat him up. One of his teeth fell out and he slumped to the ground, bleeding. Badyakar was taken to hospital by collegues and had to undergo a minor surgery on his gums. The general secretary of the Citu-affiliated union, P.K. Das, said: “We are ashamed.”

Kalyani: At Kalyani town in Nadia, residents were warned on loudspeakers against letting part-time maids work and all approach roads were blocked. If this was not enough, women activists searched houses for maids and dragged them out. Again, the Citu was apologetic. Sumit Dey, the Nadia secretariat member, said: “What they did was wrong.”

Has Bengal changed? Do you think then that the farmers of Singur have willingly given their lands to the government for Tata Motors? But even with all this Tata Motors is adamant to set up its ‘crown jewel’ plant at Singur.

“NO”
Nemesis of Bengal?

1537
2006-12-15 17:59:20
Indian leader Must Learn from Blair
British Prime Minister recently announced a list of 500 concrete steps, large and small, to cut red tape in the nation bureaucracy. The measures, which range from simplifying forms to providing fire safety certificates more easily is estimated to save individuals, corporates and charities over 14 billion pounds (Rs 119,000 crore). And Blair promised to come out with another 500 administrative ‘burdens’, which would save them another 2 billion pounds.

Are India’s highly qualified and experienced Prime Minister and the Finance Minister, or for that matter the vice-chairman of Planning Commission not aware of the timeworn, and useless administrative procedures that must be costing billions in cost of red tapes? How can India attract the FDI that it is seeking so aggressively, if as per an Assocham, nearly 62,000 proposals, involving a cumulative investment flow of around Rs 1,550,000 crore, are pending approvals from various states and central government for the past 18years or so. ” It is observed that even at 40% fructification of these investment proposals, investment of Rs 644,000 crore can come through, generating employment for about 7.4 million people.” The sectors involved include food processing, textile and clothing, leather goods, automobiles, auto components, minerals, steel, cement, electronic products and components, paper and paper products, chemical and allied products and polymers and plastics. How can one have confidence in the intention of the leaders in the driving seats after going through these reports? Why can’t a proposal that is unacceptable, be dropped?

Why should they waste so much of energy and resources of their own and the country, if they can’t improve the basic requirements for getting the foreign investment? Can the investment climate be called congenial if it takes 89 days to start a business, 67 days to register a property, 425 days to enforce a contract and seven days to a month to clear goods from customs, and almost 155 of management time is wasted to deal with officials? Is it something that the Prime Minister can’t get corrected? Why can’t he confess this?

Though the British Empire where the sun never used to set is dead, but the nation and its leaders are conscious of the competition from the emerging economies specially ‘Chindia’ to give a sharp competitive edge to British business in global trade. Chancellor Gordon Brown, the next prospective tenant of 10 Downing Street has been talking of the threat, ” Once responsible for just one-eighth of the world’s growth, China and India will soon capture almost half. They are competing not just on low cost, but on high skill.” And that is reason for the steps to cut the prevailing red tapes. The nation is preparing to face the challenge. For information, in the same process of restructuring the administration, UK is having an ambitious target to cut unnecessary bureaucracy by 25% by 2010. At least it appears the national leaders of UK are following the strategies necessary to correct the situation, if it is bad and correctible.

Why can’t similar steps be taken in India? Why can’t India take a cue from the story from Britain that has given India the present bureaucracy as legacy and act?

1536
2006-12-14 21:18:44

The battle on Singur is hot. Left government of West Bengal has gone all out to show the strength of its cadre and police force. Against all odds, it has acquired the huge area of land about 1000 acres from farmers and has also got it fenced. It never asked even why should Tata Motors need so much of land. Ratan Tata is busy with Corus. MD, Tata Motors is enjoying the battle royal between Mamata and Buddha. But perhaps all the preparations are as per schedule and going on simultaneously in Tata Motors Pune plant. As I wrote earlier, the Tata’s dream car project can be revolutionary and change the confidence level of the manufacturing sector of the country. I wish Tatas would maintain its quality and would provide the customer service to the worldclass level. However, I am still very much skeptical about the work culture of West Bengal even today and the way its trade unions maintain control over every activity of the management on shop floor level. It damages the basic discipline among the workforce that is necessary to get the best contributions from the people directly on the job. I think Tata Motors must have developed expertise in handling the irritating labour conflicts. Some one in Tata Motors must be totally sold on West Bengal; otherwise it would have not selected Singur. Even today, the state goes for very frequent strikes or bandhs for reasons best known to the leaders of the political parties. And in the state the strike is always total as it’s state sponsored in most of the cases. No one can dare to go for any work outside the house, if there is strike. Even train, airport and all transport are dead.

I am also eager to see the ultimate result just for technical reasons. I am really sorry that a company like Tata Motors has no consideration for the farmers who shall be loosing their land and its agricultural produce. Why can’t such a mechanical plant be located in the desert of Rajasthan on the Delhi- Mumbai wing of of GQ? Will it any way affect the efficiency of the operation or the supply chain? Unfortunately, the wrongly directed competition between the states of the country is causing the problems. The smarter states rather smarter political leaders are trying to bring in all the industrialists to invest in their states by offering all sorts of allurements. The other day I saw Tata Motors’ another plant coming up on the very fertile land of Uttaranchal for manufacturing the mini-truck that has become very popular. The country can’t get the replacement of the fertile land producing different grains, though the plants can come up in many locations in the country without much difference in operational efficiency.

An Article on Tata Motors Rs 1-lakh car: Carmaking in India -A different route While China’s carmakers copy, India’s are inventing

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In Service of Mankind

RFID is one technological breakthrough that can be of great help to every person if properly innovated and commercialized. One of the applications can be to help locating the goods stolen or lost and reducing the burglary or theft. Cars are the most sought after items by gangs near around Delhi. As the news goes, after killing Dr. Papiya Ghosh and her maid in her Patna house, the burglars have taken away the booty in her car and the police have not been able to find even the car till date. Perhaps with RFID incorporated in car design, the problem of locating the position of the car would have been easy.

Another fixtures that women like very much are the costly ornaments. However, they hardly use them because of the fear of snatching outside or of theft from house. Can’t RFID be integrated in costly ornament design to give its location on real time basis if so required? With abduction of children of rich and influential people becoming an industry in some part of the country, perhaps an intelligent RFID is to imbed in all the children to assist in case of emergency.

Gemma Simpson and Jo Best have compiled a list of 10 the best, worst… and craziest uses of RFID.

Children:
Japanese authorities decided to start chipping schoolchildren in one primary school in Osaka a couple of years ago. The kids’ clothes and bags were fitted with RFID tags with readers installed in school gates and other key locations to track the minors’ movements. Legoland also introduced a similar scheme to stop children going astray by issuing RFID bracelets for the tots.

Pub tables:
Thirsty students can escape the busy bar and still get a pint thanks to RFID tables that deliver orders remotely. The high-tech bar is fitted with touch screens so students can get a round in, order a taxi or even chat-up someone at the next table.

Fulham Football Club:
Fulham FC has started issuing RFID-enabled smart cards to fans to cut queues at the turnstiles and increase safety around the stadium. Around 20,000 of the smart cards have been issued to mainly season ticket holders and club members and contain data on matches each cardholder has paid for.

Air passengers:
It was also suggested by boffins at University College London that air passengers should be RFID-tagged as they mingle in the departure lounge to improve airport security.

Tanks:
RFID has also made an appearance in the army to try and reduce casualties from ‘friendly fire’ incidents.

Hospital in-patients:
In an effort to trim clinical errors, hospitals in New York and Germany have been tagging their patients. Visitors to the hospitals are given RFID-chipped wristbands to wear, which are scanned by medical personnel to bring up their records and make sure the patients are given the correct dosages of drugs.

Blood:
The same clinic, which tags its patients, is also tagging blood. No vampire-pleasing effort this, rather the Klinikum Saarbruecken is using the tags to make sure the right blood reaches the right patient. Nurses will be able to scan the tags using reader-equipped PDAs or tablet PCs and check that the blood data matches the information held on an RFID-tagged bracelet worn by the patient. The National Patient Safety Agency in the UK is also considering a similar move.

Suits:
Marks and Spencer has long been associated with being at the forefront of flogging ladies’ undies. It’s also now at the forefront of item-level tagging, having chipped some of its men’s clothes. The retailer has avoided questions of privacy protection by attaching the tag to a label on the suit that can be cut off. M&S has now extended the trials nationwide.

Passports:
One of the more controversial applications is soon-to-be mandatory use of RFID in passports. The US is leading the way in deployments and the UK isn’t far behind. As well as the obvious privacy fears that surround such rollouts, experts have questioned how secure the passports are with some claiming to have cracked and cloned them already.

Books:
The first item-level rollout in Europe has already taken place in Dutch book store BGN. Each of the books in BGN’s Almere store is chipped and a second store, in Maastricht, will soon go the same way, allowing the retailer to track each book from its central warehouse to the shop floor.

Technology will be at the service of mankind, if we use it properly. RFID can be a revolutionary in this direction. Are Indian entrepreneurs listening?

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Can PM Allure Japanese Manufacturing Sector to India?

Our PM Left for the official visit of Japan today. It is a great opportunity that our economist PM is visiting Japan and shall be interacting with the top leadership of the country that is more known for its cutting technologies rather for its political clout.. Each nation and ethnic group has “national traits” and “ethnicity”. Japanese are not so good at financial business, may be Indians are. Japan’s strong point is in “Manufacturing”. I have been a fan of Japanese manufacturing capability. Japanese have perfected manufacturing, and India must do everything to bring as many as possible Japanese manufacturing companies to India.

Japanese are today the leader in automotive industry with Toyota very soon coming to the number one in the world. Japanese are also superb in household appliance and electronics. By integrating Japanese manufacturing strength with India’s IT technology, both the countries can get into a win-win position. India with a vision to become global manufacturing must strengthen its electrical electronics sector. Japan can provide much of the technology needed for the manufacture of advanced high-end electronics components and products.

Japanese manufacturing was the first to pioneer the low volume high variety method of flexible and reconfigurable manufacturing system to satisfy customers’ various demands. With many management tools such as lean manufacturing, quality engineering, QFD and modular designing, Japanese have fine tuned product and process design and achieved ultimate in manufacturing. Speed, quality and the ability to provide the customer with the right price are some of the competitive advantages that Japanese have mastered.

Japanese got disenchanted in their first effort to come in manufacturing in India in 1980s in big way. Even today, except for Suzuki neither Toyota nor Honda have gone for significant investment in product design or even manufacturing in India, as Korean Hyundai in automobiles or Samsung and LG in household appliances have done. Japanese manufacturers have their own constraints, and perhaps apprehensions about the work culture in India. I don’t think either business or political leaders have made much effort to change the impressions of Japanese business leaders.

Japanese attention was substantially diverted to China, which over the past ten years has won investments of over $27 billion in a wide range of sectors when India got barely a tenth of that, and that too largely in two spheres, automobiles and electronics.

However, with changing global political equations and its historical problems with China, Japanese also may like to come nearer to India. It appears so from many of the recent statements of the Japanese bureaucrats. As reported, Ryoichi Horie, deputy chief of mission of Embassy of Japan in New Delhi, has said recently, “Many top Japanese companies have manufacturing hubs in Asean countries, but their products are sold in India. It’s more a multilateral business. But now, many Japanese companies are willing to set up their own manufacturing base in India.” And the Japanese Ambassador, Yasukuni Enoki, in an interview to ‘Hindustan Times’ made very encouraging promises for the Indian’s manufacturing sector on the eve of the PM’s visit. He said, ” Japan helped the Asean countries develop their manufacturing industries in the eighties, and did the same with China in the nineties. Now, in the new century, Japanese investment and technology will benefit India similarly. I believe this elephant is about to start galloping and we are there to give it a push.” Naoyoshi Noguchi, director general of Japan External Trade Organisation (JETRO) argues that Japanese companies have realised the missed opportunities in Indian market, and are now serious about long-term stay in the country. “The market dynamics in India are very different. It’s a highly price-sensitive market. That’s why many quality-conscious Japanese companies hesitated to explore the Indian market. Now, as many as 352 Japanese companies are operating in India and the number will only increase substantially,” unlike the Chinese and Indians, the Japanese don’t take hasty decisions. Their decision-making process is very slow. But once they decide, there’s no going back. I feel Japanese companies are convinced that the future lies in investment in India.” No sayonara any more.

The CII delegation of Indian CEOs accompanying Prime Minister Manmohan Singh to Japan will be expected to assuage fears among Japanese companies about growing incidence of labour unrest in the country and slow pace of decision-making in the government.

India must do everything to convince Japan to bring its manufacturing sector to India as a reliable global base for domestic as well export market. Will Toyota and Honda make India its main base for R&D and manufacturing of its whole product range?

To the land of rising opportunities
SEZs, industry corridor: Delhi, Tokyo in new economic deal

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Image Spoilers from Bihar

Some news items from Bihar are causing worry for two reasons. Will Bihar remain behind forever? Can’t the government and the people there change when the whole world is changing? Here are three stories:

It is almost twelve days that noted professor of History, Dr Papia Ghosh and her maid were brutally murdered in her house in Patna. Police has not been able to get anywhere. Dr Ghosh’s IAS officer sister, Tuktuk Ghosh, has reportedly taken up the matter with Prime Minister Manmohan Singh. The PM has spoken to Nitish Kumar. But Bihar Chief Minister Nitish Kumar is of opinion that the CBI does not have the expertise to solve murder cases. Why should Nitish Kumar so bluntly refuse the request about the CBI? What is he afraid of?

The second story is about the showcase Golden Quadrilateral, the 30-km stretch from Sasaram to Dehri-on-Sone of the Delhi-Kolkata GQ. It is unfortunately my hometown too. As claimed, a “mentally deranged” (the police version) stoned Sunil Kumar Sharma 35, the supervisor in the project with Nagarjuna Construction, to death around midnight on Wednesday, Dec 7. The police maintain that it was a stray incident. “Everybody knows the killer was a mentally deranged man. We have arrested him and there was no need for the company officials to get terrorised”, said N H Khan, Rohtas SP. Sharma’s colleagues on the spot differ. “He (the alleged killer) owns three buses and manages them. How can he be mentally deranged?” On Wednesday night, Sharma was at the site under a bridge in Dehri when a worker came running and said that someone was throwing stones at him. His younger brother Anil said, “When he came out, the attacker struck him with a big stone and he fell on the ground. Then Tunna Singh struck his head again and ran away.” Sunil died on his way to hospital.

And the third one is the most damaging and really worrying one. If the parents of Bihar don’t mend their wards, Bihar can’t get its image improved.

Hyderabad, Dec. 11: Eight hundred youths from Bihar and Jharkhand took over the Howrah-bound Falaknuma Express for eight hours yesterday, grabbing seats, harassing women, beating up catering staff, robbing vendors and pulling the chain 22 times. The torment ended after a heavy police and Railway Protection Force contingent detained 500 of them at Tadepalligudem around midnight, while the other 300 escaped into the town. Only half of the group, returning home from a railway recruitment exam in Secunderabad, carried tickets. Some had the free coupon railway board examinees are entitled to, while the rest had neither. One Pushpa Kumari, who was in the women’s compartment, lodged a complaint at Guntur and said, “The boys forced their way into our compartment. They sang lewd songs and danced in the corridor in an obscene way.” An aged couple from Salt Lake got off the train at Guntur after being threatened by the youths. At Tadepalligudem, the police registered cases against only 15. As per a policeaman, “They were given tea and (apart from the 15 detainees) sent in another train to Howrah after a warning.”

How do you take these instances of going-on in Bihar? Bihari youth will have to behave properly, and give up it’s the ‘dadgiri’ behaviour, particularly in dealing with people of other part of the country or the world. If the people in Bihar don’t change themselves, there is hardly any hope for Bihar.

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India Must Deal With China Cautiously

A report in ‘Times of India’ makes one think.

“China has trounced India 4-1 in trade in the first 10 months of this year with a trade surplus of $3 billion against India as compared to a trade deficit of $946 million in the same period in 2005. Chinese exports to India shot up 61% to reach $11.58 billion in that period. Indian exports notched a minor rise of 4.49% totaling $ 8.5 billion, according to the latest statistics released by the Chinese Customs for the January-October period.

Indian trade and industry has been far more receptive to Chinese goods rather than energetically taking up the task of selling Indian goods to China. Indian trade bodies visiting China, ostensibly to promote Indian goods are more interested in sourcing cheap Chinese products.

The $20 billion target of the bilateral trade set for 2008 was reached in October 2006 itself, because of a dramatic growth on the Chinese side and a slide by India, which lost the trade advantage it enjoyed in 2005. A Beijing-based businessman says, “Indian companies have been most aggressive in sourcing low-cost goods from China. Most of the businessmen visiting China are only looking for sourcing opportunities.’

How do you feel after going through this report? Is it not disgusting?

And do you know what India exports to China?

The two of its most important export items are – ores, including slag and ash, and iron and steel. Ores, mostly iron ore accounted for 57% of India’s export basket last year. With the humongous Olympics facilities in Beijing nearing completion, their demand has tapered off. Unfortunately, in the last 60 years Indian steel sectors could not expand sufficiently. Till late nineties, none of the Indian steel producers could produce the extra deep drawn steels, leave aside the more sophisticated ones, for the outer skin panels of passenger car industry Iron ore export is a real lucrative business for small players to make huge money with no value additions and exhausting the natural national wealth. Cotton is another major export item to China. India is the second largest producers of raw cotton, but Indian textile and apparel manufacturing capacity is just miniscule in comparison with the Chinese.

China exports all value-added finished products- electrical machinery, iron and steel products and paper and paper boards besides all the junk households things that are flooding the markets all over India courtesy our unscrupulous traders who visit China and buy all the rejected third class flashy stuffs that are rejected by other countries and sell to Indian consumers at huge margin.

Unfortunately, China’s quality control system is very flexible. Its manufacturers leave it to the buyers to evaluate. Wal-Mart and other buyers of US and the Western countries have their own quality control checks. Indian traders buying consumer supplies in bulk hardly bother about the quality. They are hardly accountable for the quality off the Chinese goods. It is for the consumers to buy the cheaper Chinese goods or go for the goods from other sources. And in process, the majority of them get cheated but they come to realize that late when they can’t do anything. Will the traders associations taking all the advantages from the government stop this practice of importing all the sundry items from China and cheating the domestic consumers?

If India wishes to win the race with Chinese, it will have to be smarter in deciding the strategies to save its different manufacturing and service sectors where it has some inherent superiority. Chinese are moving so fast that it will be difficult to survive. The latest news from pharma sector is the warning.

Ind-Swift Laboratories, a pharmaceutical major based in Chandigarh, halted the production of roxycomycin and arithromycin last month. “While our manufacturing cost comes to $115 per tonne, the Chinese supply the same drug at $105 a tonne. Since we could not match their rates, we discontinued the production, which stood at 1.5-2 tonnes a month,” said V K Mehta, joint managing director, Ind-Swift. It is not Ind-Swift alone. Companies like Alembic, Kopran and Torrent are all bearing the brunt of Chinese imports.

Read The 10 Gadgets That Changed the World

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India’s Changing Rural Scenario

The news of suicides of framers in rural India pains one and all. But many good things are happening all over India that brings hope of a better tomorrow even in rural India.

1.In Bilashpur, Himachal Pradesh, Jagdish Thakur has sold 2.5 lakh carnation stalks, grown on a part of his 13-acre plot, in the last seven months at the whole mart in New Delhi. His earnings have been Rs 10 lakh. It didn’t happen the first time. In 1997, when Jagdish experimented with gladioli flowers, it turned out to be a dismal failure and he lost Rs 20,000. But with time changing, Jagdish tried again. And by this time he knew about the greenhouse technology that helped increase yields. Further, he could ship his products directly to Delhi-based commission agents, without depending on local middlemen. The demand of flowers has boomed. A Dutch company wishes to import his products.

2.Jaswinder Singh Bhondli village in Ludhiana Punjab is making hay by selling vegetables, instead of traditional crops like wheat and rice. From the 22 acres (of the 35 he owns) devoted to vegetables, he gets an annual income of Rs 14-15 lakh. And he’s building a Rs 35-lakh mansion, and waiting to ink a contract farming deal with either Reliance Industries or ITC.

3.As reported, another Bilaspur farmer is making a killing by growing red and yellow capsicums, which sell at Rs 100-140 per kg in Delhi, and each plant yields nearly 10 kg. His income from just one crop sowed on a small portion of his 20-25 acres (most of which is devoted to traditional crops like maize) this April: a whopping Rs 9 lakh.

4.An employee of Spencers, a retail chain spotted Yellapa, a poor farmer from Mallu village near Bangalore who used to travel to the city to sell coriander, spinach, and other vegetables on the roadside. With help of Spencers, Yellapa increased his yield of spinach from 50 bunches a day to over 800. Yellapa has taken the land of his neighbour too on lease.

This is happening across the country. Retail chains, food processing companies, and even restaurants like Mc-Donald’s with huge requirement of farm produce are increasingly avoiding the city wholesale dealer and instead, are talking directly to farmers, eliminating middlemen, deciding on mutually beneficial prices and collecting the produce in their own trucks directly from the farmers in villages. Farmers are not spending on transport or sharing revenues with middlemen anymore. And that is resulting in better earnings for the farmers.

A farmer such as one 40-year-old Shiwarkar has become the direct supplier to the retail chain Spinach that has 17 stores in Mumbai. He does not deal with the transport agent anymore, nor the market agent. Instead, it’s the executives from the retail companies he’s in touch with the most. The men from the Spinach retail store monitor the packing of tomatoes. The intermediaries are going out from the value chain, and for the farmers, hopes, opportunities and wealth are all finding their way into their homes. Some advantages are incredibly basic. Once farmers take their goods to the market they are at the mercy of the market forces. They cannot take their vegetables back to the village if the prices are too low. Now, everything is neatly settled by the corporates.

Further, the traders in mandi used to be unscrupulous. As narrated by one farmer, on an average, the net weight loss used to be 10 kg for every 100 kg of produce due to faulty measures. So the weights are right, payments are instant and damage to the crop is less. And the farmers can have an assured demand all year round.

As the organized retail sector moves further in, the biggest gainers will be the farmers, especially those who are small and illiterate and completely dependent on the village agent.

I only wish these retailers or its employees didn’t get too greedy. It all means the farmers need to change from the traditional system to make their earnings better. The success stories above can only provide the inspirations to go for more perspiration and, in turn, prosperity.

Please Read Farmers take a `Fresh’ look at retailing

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