दृष्टिकोण – Indra's Viewpoint

Mumbai blasts killed about 200 people and seriously injured 800 more without making any distinction of the religious identities. It shocked the billion plus of the countrymen. We know, it’s enemy sponsored.

Am I wrong somewhere? Why are we not doing something that can stop these acts?

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Our great President has some clear solution to the problem of corruption that India is so famous or infamous for. Every one talks about it. Even in a TV programme from Davos World Economic Forum on January 28, one Chinese expert talked of the rampant corruption among the elected representatives of India. Bimal Jalan in his book ‘The Future of India’ says if we can somehow reduce corruption, our GDP growth can automatically jump into twodigit figure. But no one provides any solution. Hre is what our President said in his Republic Day Address:

On 21st November 2005, I had visited Adhichunchanagiri Math, attended a function of FUREC (Foundation for Unity of Religions and Enlightened Citizenship) and interacted with over 54,000 students of various schools and colleges of Karnataka.

A 10th class student Bhavani studying in Adichunchanagiri Composite High School, Shimoga asked me the following question. ” Dear Sir, What is the role of students to stop corruption, which is deeply rooted in our county just like cancer?”

Agony of the young mind is reflected in this question. For me it was an important question, since it comes from a young mind. I was thinking what type of solutions we could give. My thought process was the following:

I said there are one billion people in the country and nearly 200 million homes. In general most of them are good people. However, if we find that people in few million houses are not transparent and not amenable to the laws of the country, what can we do? These houses apart from parents have one daughter or one son or both. If the parents in these houses are deviating from the transparent path the children can use the tool of love and affection and correct the parents to come back to the right path. I asked all the children assembled in that gathering, whether parents of a few children get deviated from transparency, will you children boldly tell your parents, father or mother you are not doing the right thing. That is what we are taught by you and in the school. Most of the children spontaneously responded. “We will do it.”

The confidence comes from them that they have love as a tool. Similarly I have also asked the parents in some other meeting, initially there was a silence, later, many of them hesitantly agreed that they would abide by the children’s suggestion since it is driven by love. The children took an oath. The oath was: I will lead an honest life free from all corruption and will set an example for others to adopt a transparent way of life. Finally I told the students that they should start a movement starting from their home.

Can we follow this route to end corruption? Perhaps this concept of appealing through the children is behind the new ad of the revenue department where the son asks his father- “Dad, you say honesty is the best policy. Then why are you suggesting your client to save by avoiding paying tax through cash payment?” Many would have opposed to the President’s suggestion to appeal the students in the task of removal of corruption. But perhaps his personality is such that no one can dare do that. I am myself of the opinion that the issue must be discussed in the school. If the students require lessons on sex, they should also get some lessons on the dangerous and contagious corruption.

As pointed out by a person no less than the imminent Narayana Murthy, there are 5.3 million unemployed graduates in the country.

Another news report says, IT and service sector industries are thinking to relocate abroad because of a skills crunch in India.

McKinsey and Nasscom study also talks of a shortage of 1,50,000 IT workers and 350,000 business process staffs.

Naturally these figures raise certain questions and also demand some solutions to the problem of shortages.

Before appreciating the solutions, you have to work for some questions.

How many men and women in ages up to 40 years you know are graduates, but not employed or may be marginally engaged?

What percentage of these people are interested to undergo some refreshing of their education or re-education to make them usefully employed?

What all they need to learn as students mature in age and may be, in a need for good living?

Industry beside the shortage is also complaining of the increasing demands of the existing workers in the industry. Iteration rates are very high. All these problems can find some solutions in one go even if just 50% of the unemployed graduates are made to re-educate themselves in skills required by the industries such as BPO and other service sectors such as hospitality and retails. If we can raise their self-confidence, the re-education can transform their lives.

I assume a 6 months-1 year of properly designed course will suffice, if the facility and faculty in the reeducation institutes are adequate.

What must be the part of the courses and skill buildup? It must contain:
1.Personality building education- manners, dressing, self presentation, etc
2.Skill in fluent English or another foreign language conversation refined to the level to meet the customers’ requirements
3.Knowledge of computer operation
4.A subject that the person feels himself comfortable with such as say, economics, law, or any other subject that may be useful for employability.

Even the older people can find the reeducation interesting and not very difficult. It will be for an improved quality of life as incentive. Institutes must provide the customized training as required by the enterprises in need of employees.

Who all can do it?

NIIT, Apple, and other smaller players in education can design the interesting and relevant courses. Can’t the government, local bodies, and community provide the reasonable support and incentives? Can’t Nasscom come out with some examinations to ensure the uniformity and its utility to the industry? Can’t the existing college of engineering, sciences, and technologies also initiate these courses?
However, beside the financial incentives, the government must provide the desired level of autonomy too to ensure the quality of education. It may mean some change in rules to make the passing out oldies good employment, such as entry age.

When the longevity of our people has gone up, all the willing population must have opportunity to work effectively with re-education.

And Thousands Blooming Roses

I love to go for my morning walk in ‘Ban Bitan’ (part of Central Park) of Salt Lake. With instrumental music on the public address system, it is apleasure to walk. Ban Bitan, as it appears, is equally popular for the people of all ages. Upto 7.30AM, it remains free for the morning walkers- generally elderly groups. Thereafter, one is to pay a small fee. And it becomes popular with the younger groups. The other day, I met an old gentle man who was very critical of the youths coming to the park. Perhaps it is a very typical complaint.

The walking track has been smoothened with bitumen layer. I wonder if it would last with the heavy rain in this place. The artificial water body is another attraction. Some professionals come regularly for fishing. I like to see them and observe their attention at work. But my main attraction is the garden of roses. It is large. The variety and size of the flowers are appealing. Many differently prepared flowers’ beds in different corners of the Park are also nice.

Besides, the general agreement that China would emerge as world factory and India with its knowledge power, the world office, India is resurging fast. On this Republic Day, I give below some splashes of those happenings:

 India is emerging as a land of opportunities for business and investment. Canadian companies doing business in the country have revealed in a survey. Despite challenges, entering India has been rewarding and majority (63 per cent companies) plan to expand operations in the country,” the survey conducted jointly by KPMG, a leading audit, tax and advisory multinational company, the Canada-India Business Council (C-IBC), and the Canadian Manufacturers and Exporters and association (CME) said.

 “There is a very good chance of the economy to grow by 8 per cent this year. Higher growth rate was possible in the future and the distance of 8 to 10 per cent was very much achievable,” Praful Patel, vice-president (South Asia), World Bank, said on the sidelines of a conference on micro-finance. Prime Minister Manmohan Singh had recently said India should target 10 per cent growth over the next two-three years. India’s GDP grew 8.1 per cent during the first half of 2005-06.

 Indian firms have started acquiring a global footprint with global acquisitions of over $3.5 billion in the past two years; from Tata’s acquisitions of Tetley Tea and Daewoo Motors to Videocon’s purchase of Thomson and Bharat Forge’s buyout of Federal Forge. According to our estimates at the India Brand Equity Foundation, this number could cross the $10-billion mark in the next two years.

 20 of India’s top 100 companies, ranked in terms of market capitalisation, generate 50 per cent or more of their revenues from international sales. Mahindra wants to build the largest tractor brand in the world; TCS, Wipro and Infosys are targeting slots amongst the top five IT consulting firms in the world. “Incredible India” continues to draw global attention. Now, high-end surgeries and world-class management, engineering and medical education are helping build the medical and educational tourism industries. Apollos and Escorts; the IITs, IIMs and Manipals are bound to become globally preferred brands.

 In a landmark development on Dec 5, the US and other partners- the European Union, Russia, Japan, South Korea and China in International Thermonuclear Experimental Reactor (ITER) project have decided to invite India as a full partner in the ambitious multi-billion energy venture at the ITER negotiations meeting in Jeju, South Korea, to invite India as a full partner, India’s acceptance as a full partner was an “acknowledgement of India as a responsible nuclear state with advanced nuclear technology, including in the field of fusion research”.

 Microsoft plans to pour $1.7 billion into India over four years and employ another 3,000 people to deepen its presence in the fast-growing software player. About half of the money will be spent on its existing research and development center, its global software delivery unit and expanding to 33 more cities by opening retail outlets. Leading chipmaker Intel Corporation on Dec 5, announced a multi-year investment plan for India, totalling over $1 bn, including $800 mn over the next five years for business expansion. Intel Chairman Craig Barrett said. IT giant Cognizant would be investing around $76 million across its centres in India.

 Airbus SAS, the world’s largest commercial planemaker, will revise its forecast of sales in India because of the country’s higher economic growth. India may buy between 800 and 1,000 planes by 2026, according to Kiran Rao, Airbus Vice-President in charge of sales for India.

 Gartner projects that total Indian enterprise IT spending (not including consumer IT spend), including hardware, software, telecommunications and IT services, will reach $25 billion in 2006 growing at a CAGR of 20.8 per cent from 2004 to 2009.

 Top 300 firms of India Inc. have lined up investments of Rs 3.2 trillion (Rs 320,000 crore) to be made over the next 12 to 18 months. Senior bankers estimate that greenfield projects will account for roughly half of these investments.

 India, along with US is estimated to house almost two-thirds of the world’s developers. “India has the second largest developer community outside the US. Bill Gates launch of Visual Studio is an acknowledgement of the fact that India has a strong developer community. The same is true of Intel’s investment into R&D. It is primarily for developers (not software alone but hardware designers and hardware developers).

 8.8 mn jobs likely, India may become biggest example of export-led growth. The information technology industry is projected to contribute around 7 per cent to the country’s gross domestic product by 2010, a joint report by Nasscom and McKinsey, released today, said. At present, the sector contributes about 3 per cent to the GDP. The export revenue from the sector is projected to more than treble to $60 billion by 2010, compared with $17 billion in 2005. The IT sector would also account for over 44 per cent of the export growth over the next five years, compared with 12 per cent at present, the report said. “The IT industry will grow at a compounded annual growth rate (CAGR) of 28 per cent to reach $60 billion in export revenues by 2010. It will become one of the biggest examples of export-led growth in the world, rivalling the oil exports from the Gulf,” said TCS Chief Executive Officer S Ramadorai.

 $10 billion foreign direct investment in 11 weeks, $9 billion in IT/telecom alone in the first 11 months of the year! Those are the mind-boggling numbers being bandied by a host of investors making a beeline for India. Contrast this with the $8.5 billion through the portfolio route during the calendar year to date and the true significance of the sea change on the anvil comes home as never before. All these years, FDI trailed FII. According to the Reserve Bank of India’s latest annual report, FDI at $3.3 billion in 2004-05 was less than half the total portfolio inflow during the year. Worldwide, it is exactly the opposite. According to the IMF’s World Economic Outlook, portfolio investment at $29 billion was completely dwarfed by direct investment of $197 billion in calendar year 2004. Could it be, as the AT Kearney report points out, that ‘India is on the cusp of an FDI takeoff?’

 India may become engg sourcing hub Global engineering companies such as Siemens, Cummins, ABB, Aker Kværner, Wartsila, Alfa Laval and SKF are planning to increase their sourcing of engineering equipment and services from India three-four times from the current level in the next three years.

 Usha Martin is planning to become the number one wire rope manufacturer in the world by December 2006, surpassing the largest wire rope manufacturer in the world. Korean transnational Kis now holds the top slot in wire rope globally. Reliance Industries claims India has become the first country in the world to market apples in a particular variety of plastic packaging cartons.

 In rural Shimla, in the mid hills of Himachal Pradesh, there has been a fast-growing trend to shift from growing traditional subsistence crops like wheat, corn, and barley to vegetable cash crops like cauliflower, cabbage, tomato, French beans, peas, among others.

 As per the report titled “From the Ganges to the Thames” which states that the Indian Foreign Direct Investment in British capital is second only to that of the US and Indian FDI project in Europe has increased from just 5 to 119 during the period 1997 to 2004.

 When Tata Chemicals on December 23, 2005 announced the acquisition of 63.5 per cent stake in Brunner Mond Group of the UK for Rs 508 crore, the Tata Group’s spend on overseas buyouts during the year went up to Rs 4,120 crore – its largest so far in a single year.

 Nike has won a Rs 196.66 crore bid to sponsor the Indian cricket team’s clothes for the next five years. Close on the heels of Rs 313 crore sponsorship deal with Air Sahara, the announcement has made the Indian cricket team the most valuable sports team, ahead even of Europe’s football clubs.

 India a hub for aircraft engineering design

 According to a report by ‘Global Sourcing Now,’ KPO business is supposed to touch $17 billion by 2010 of which at least 70 per cent — or $12 billion — is to be outsourced to India. There will be over 300,000 new jobs from the current just 25,000.

 According to a study by the United States-based Forester Research, the current annual value of legal outsourcing, which is worth $80 million can rise up to $4 billion and can fetch 79,000 jobs in India by 2015.

 Indian and multinational companies are announcing fresh investments in the metals sector at a breakneck pace. Eleven Indian and multinational metal companies have already lined up investments of $69.9 billion (Rs 31,800 crore) in greenfield and brownfield projects. These projects are to be implemented in the next four to six years and are likely to increase the capacity of the steel industry by a whopping 103 million tonnes.

 According to a Manpower Employment Outlook survey for the first quarter of 2006, India leads other countries with a positive overall net employment outlook of +27 per cent. Another survey, by Hewitt, projects Indian salaries to increase by 14 per cent in 2006 – the highest in the Asia-Pacific region. Topping the recruiters’ list is the information technology and IT-enabled services industry, which will continue to recruit an average of 400 people every day. Industry body Nasscom estimates fresh IT labour supply at 250,000 in 2006-07.

Long Live Republic India

‘India Everywhere’ in the Alps

I still remember the election days, when we used to live in the residential flats of Hind Motors factory in West Bengal. The factory’s union leaders used to be on poll duties inside and outside the booth that used to be in our high school. People were afraid of them. To avoid any problem, people will toe their line. Later on I found, the people are going to them as they only could get something from the management that even a senior manager failed for his man.

In his last book, Arindam Chaudhry talked about the mass scale rigging in West Bengal election. I took that with a pinch of salt. I was not much convinced that something like Bihar happens in West Bengal. For West Bengal, election rigging is through the election management that makes the difference. The CPM machinery works all year only with the sole purpose of seeing the win in any election.

After many years now, I have been able to find out the arithmetic or mathematics of the record CPM election wins in this state. I read about the party’s colossus organizational might in an article in ‘Telegraph’ by one Ashis Chakrabarti. I would have loved to talk to him. But I assume his information to be correct.

 CPM has 2.84 lakh full time members.

 Krishak Sabha, the peasants’ wing has 1.4 crore members.

 Student and youth wings together have another close to 1 crore members.

 CITU, the trade union units, has about 29 lakh members.

 Gantantrik Mahila Samiti, the women wings, has 36.62 lakh members.

 Schoolteachers’ unions have memberships of 2.3 lakh.

All these categories of people, having direct affiliation with CPM, total to 271.12 lakh (2.71 crore).

And it is but certain that these people (271.12 lakh in number) will vote for CPM or other allied leftist party. (In 2004 election, the number of total voters was 4.74 crore, and 3.69 of them voted. Basically, 73% of those voted were CPM members directly. Only 98 lakhs were non-CPM.) Beside CPM, other leftist parties do also have similar membership and cadre, though much less in number and may be only in their respective area.

How can CPM lose an election in West Bengal with so strong an organization?

Even if we don’t consider student and youth wing, some 171 lakh of CPM members are available to convince, threaten, or force 98 lakh people to vote for CPM and allied political parties. All these years of its rule, CPM has strengthened its organization. Its members will remain with the party as they have been benefited. It is the fear and the hope of favour. Any help coming from any government or non-government agencies comes through the party machinery and the members. That has made the difference. Those were the reasons for many bloody conflicts in many areas, when Mamta was coming up.

And over and above this, the CPM members take help of fake ration cards, voter’s identity cards, get manipulated the electoral rolls that eliminate the names of those who may not vote for the party. After all, most of the persons involved in preparing the roll are CPM members. And CPM is the ruling party now for more than three decades in West Bengal. It will be clear from just one report:

“The Bengal government on Monday figured out what K.J. Rao was all about. The unassuming Rao landed in Nadia district. He met leaders of all political parties and then went on a recce trying “to identify bogus voters and the fake photo identity cards (EPICs).” At the end of the day, he lived up to his name. He got hold of a large number of voters with fake photo identity cards and bogus voters across the district. The man who ensured one of the cleanest polls in Bihar showed that Bengal was no different from Bihar when it came to bogus voting. “All these names should be off the rolls. What is happening here?” an angry Rao demanded of the district magistrate Rajesh Pandey, who accompanied him. Rao’s whiplash comes after several parts of Bengal were rocked by reports of large scale fake ID and ration cards. Over 10,000 forged ID cards were seized from various parts of the district. Rao also made sure that he moved around unescorted and made it a point to chase away a group of policemen. His unscheduled visits put the bureaucracy in a tizzy. He did not spare the BDO and the deputy magistrates: “You people are useless,” he lashed out. And at the end of the day, Rao signed off with one promise. “Elections will be different in Bengal this year. Everybody can vote. It will be free and fair.”

But perhaps that’s what Rao wishes. Even with free and fair elections, there is no opposition unlike one under the leadership of Nitish here in West Bengal that can bring the change neither West Bengal has a Rabri’s rule and Laloo’s brother-in-laws that the people want to get rid of.

Let us understand how the election is managed. The election-in-charge of the village knows the name of persons on the roll who shall not be present to vote. The members manage to get those votes in the favour of their party through fake ration cards and as we know now even by producing fake voter’s ID cards. Most of the officers on election duty in each polling booth, though government employees are the members of the party too. Teachers are the most popular choice for the election duty. But almost all teachers in West Bengal are members of the leftist parties otherwise they would not have got their appointments. I think election commission has also a plan to keep the teachers out this time from electoral duties.

I don’t think any other party or combination can win West Bengal from CPM and its allied parties, unless it comes up with equally strong parallel organization. At one time, I used to think Mamta has the capability. But with all her inconsistent political moves, she is no more the force. And I doubt she will be able to create her ‘Grand Alliance’ (Mahajot)

“Of the top 10 diamonds of the world in terms of fame or size, more than half come from India. Most of the biggies are outside India now: Koh-I-Noor with the British crown jewels, the Orloff with the Kremlin, the Desden Green in Poland, the Hope at the Smithsonian and the Regent with Louvre.” And there are some still in India, but hardly anyone knows about it.

Chidanand Rajghatta in TOI in January 22, 2006 provides the above story on India’s precious traditions, and talks of the 173 pieces of Nizam’s jewellery on display in Salaar Jang Museum in Hyderabad during Pravasi Bhartiya bash. In 1995, the government of India acquired the Nizam’s collection, including the Jacob, for around $45 million after a protracted legal battle, and the collection now worth more than $4 billion. But story of the Jacob, the most faultless diamond in the world is interesting. Discovered in South Africa, it came to India and remained here. And how did Nizam use Jacob? Nizam used it as a paperweight. His heirs found it tucked away in an old shoe.

The same paper also carries a special page on management education. It had a box listing seven Indian global gurus: CK Prahalad (University of Michigan), Amartya Sen (Cambridge and Harvard), Sumantra Ghosal (London Business School), Meghnad Desai (London School of Economics), Raghuram Rajan (University of Chicago), Dipak Jain (Kellog School of Management), and Kaushik Basu (Princton University). I am sure there are many more of significant senirity and eminence in the US universities itself. I have heard or read about most of them. Are they not also the diamonds from India radiating their brilliance outside India and getting respected?

I am sure there must be some equally good or better mangement gurus in some of the 1000 or odd management schools in India including famed IIMs. But if someone asks me to name even the five known ones, I shall not be able to do that. I may be blamed for my fault of not keeping in touch of IIMs guru of global reputation. But how’s that I don’t find any mention about their names, their contribution, research or expertise in Indian media too. Is there any restriction from the government or the media is so indifferent?

I wish our news and business magazines devoted some of its resources on those reputed gurus of the various institutions of the country and their achievements. And the gurus on their own also would have done some marketing of their works and considered the interactions with industry and government but more so with people essential for the overall benefits of the society. Why can’t they work on various types of real case studies or surveys rather than depending mostly on the external sources?

Let them not think that they are the ‘Ghar ki moogi’ and so ‘dal barobar’.

Even today some of the Indian manufacturing companies are in top five of the world. And remember all these companies have come to this stage against all the government restrictions of post-independent India, and global competition. Most of them have grown big because of their business models and innovations in product and manufacturing processes. Honda Cycle is the largest cycle manufacturer of the world because of its cost competitiveness, scale, and innovations. Hero Honda is the largest manufacturer of motorcycles. It may be depending on Honda for the product design, but it has mastered the product selection and business model with excellence of manufacturing. Bajaj Auto holds second position today in India, but its product designs are its own so much so that the Chinese are copying its Pulsar as Gulsar and selling in Latin America. It has good rational tie up too for motorcycles with its Japanese partner- Kawasaki.

Essel Propack is the largest manufacturer of the laminated tubes of the world. And Bharat Forge is the second in position globally for the manufacture of forgings. Both these companies have gone global with plants in almost all key markets.Moser Baer is today a world leader in the development and manufacture of removable data storage media. The company today ranks among the top three optical storage media manufacturers in the world with a broad and robust product range of floppy disks, compact discs (CDs) and digital versatile discs (DVDs) and presence in over 82 countries.

India manufactures and sells more than one million cars. 60% and more are in A and B segments. Tata motors’ ultra low-priced car (Rs 1 lakh or so) expected in 2008 can further the India’s innovative approach to provide mobility to its working class and a manufacturing business model that many may envy. India can certainly become the global manufacturing hub for the entry level cars. Beside Tata Motors, Maruti (Suzuki) and Hyundai are making India its global base for the small cars with a significantly higher volume. Hyundai is exporting about 1 lakh of its small cars from India manufacture. And in two-wheelers sector, India already manufactures around 6 million units and exports too.

India manufactures about 3.5 lakh commercial vehicles inclusive of light, medium and heavy too. Though the domestic players such as Tata Motors and Ashok Leyland hold the majority market share till date, the scenario may change with the entry of global truck manufacturers such as DaimlerChrysler, MAN AG, and International. However, both the domestic truck makers have their own strategies to keep growing and reaching world market too.

And with this base of auto manufacturing, it will be clear why India is being considered as a hub for auto components manufacturing. Auto components industry has already revenue of Rs 40,000 crore with an estimated 1,000 manufacturers. Most surprisingly, over the last seven years India has been figuring prominently on the list of Deming Prize winners. This is going to be the India’s strength and hope to reach the McKinsey estimates that Indian suppliers could potentially tap $25 billion in export alone by 2015. And the growth will be realized with an all-out approach to invest in innovations through R&D at the company level as well as at the national level through various laboratories in institutes of national importance.

There are many companies in other sectors such as textiles, electrical and electronics appliances, engineering products, pharma, etc. that can be global in scale enhancing thereby the India role as major global contributor to manufacturing. I wish some of the public sector enterprises, such as BHEL, BMEL, BEL, etc. also get the autonomy necessary and aspire to be a global player and try to be in the top five lists in its sector.

How can any one doubt the capability of India to become a manufacturing giant with its success in setting up its own nuclear plants, satellites and its launchers, missiles of all sophistications? Can’t many of the technologies with India’s IT strength be deployed through innovation to design and develop products of civilian use as mass manufacturing items? India can win China only with innovations in every area.

India must keep its door open for the international manufacturing giants from Japan, Switzerland, Germany, UK, US and other EU countries that are trying to relocate their facilities in low cost countries. It will further strengthen the manufacturing sector.

I have only one fear from our traders. They are huge number of pretty unscrupulous traders that may spoil the manufacturing initiatives by cheap import of sordid quality goods at very cheap price from China. I was seeing a glimpse of that yesterday at Bhidhan Nagar Annual Fair.

I keep on reading some good articles about Brand Nitish and Brand Bihar and get pleased with the nomination of Nitish number 3 position by ‘India Today’. But the news from Bihar and Patna are disturbing. I know all the law and order issues will not be set right in one go. As a commoner, I dream a miracle. I wish the intention and sincerity must be visible and media must help in erasing the bad perception by not reporting all odd news of no worth from Bihar.

I was very happy after reading the news of Kiran Bedi being appointed as DGP, Bihar in Patnadaily.com. But perhaps, it was not correct. The reporter perhaps had guessed it. My happiness was short lived. Are you still giving chance to the local police talents? It’s good if they can take the challenge. They are be totally professional, fair, and ruthless to succeed. I wish, they are. But you must wait for long and must bring in some of the reputation of Bedi or Gill. It will be image building too, besides showing your sincerity to the basic problem of the state.

I would have loved if you could appoint at least two technocrat professionals of proven reputation in project management as cabinet ministers: one for rapid construction of roads both under NHDP and Bharat Nirman, and the second for rural electrification with an objective of getting some visible progress before monsoon sets in.

Will it not be necessary to appoint some reputed consultants to help in the industrial development of Bihar? Mc Kinsey enhanced the image of West Bengal’s intention to create business-friendly perception. However, you may go for requesting CK Prahalad, Bimal Jalan, or Rajat Gupta.

Basically a very able PR expert under you must develop the useful interactions of the government with the industry. He could have contacted all the enterprises and institutions playing active roles in rural development such as ITC’s Deveshwar for bringing in its e-Choupal, HLL for its Shakti, ICICI’s Kamath for its microcredit, Swaminathan Foundation for its Knowledge Centre initiatives. Vinod Dham, the reputed IITian also had a wonderful rural development model.

As it appears, you are regularly talking with your party people. I wish you requested them to take care of the problem of teachers’ negligence of duty at village levels. And I wish a second campaign could have been undertaken for educating people about their own responsibility in the development of their villages and that of their households.

If you take the initiative, many will come forward on own in the state. Many individuals and institutions are willing to help the state as a test case of development of a region which some wise people predicted moving in the dark age.

Media started with reports and studies that claimed China as superpower that will surpass even the American supremacy very soon and without any mention of India as a world economic power. Soon the consultants, columnists and economists started mentioning China and India growing as Asian superpower and consumer markets. And now many reports are appearing that are putting India ahead of China in many areas and are predicting that India may go ahead of China.

Nicholas D. Kristof wrote in ‘New York Times’ on January 17, 2006:

“India has a solid financial system, while China’s banking system is a catastrophe. And India is in better shape demographically for long-term growth: China is now rapidly aging, but India’s population will be disproportionately working-age for many decades to come (a factor that strongly correlates with economic growth).
India’s democracy, free press and civil society also provide a measure of political stability. The risks of social and political explosions in India are declining, while in China they may be rising.”

However, he cautions too.

“Yet if democracy is one of India’s strengths, it’s also a weakness. India’s basic problem is that its economic policy-making isn’t nearly as shrewd, pro-growth or farsighted as China’s.
That’s a tragedy: we should all want India to demonstrate that democracy is an advantage. But Indian lawmakers aren’t helping.
In India, it costs 6.6 rupees to transfer 1 rupee’s worth of food to the poor. Only about one million people work in technology, and manufacturing, which could absorb tens of millions of poor rural laborers, trails even Bangladesh. The losers are India’s poor.
The bottom line is that the once-great nation of India is reawakening from several centuries of torpor, and facing less risk of a political cataclysm than China. India is poised to again be a great world power.”

Forbes magazine then reported- ‘While the 40 richest Indians are worth $106 billion, China’s 40 richest add up to only a paltry $26 billion. Last year, the overseas Chinese sent home $21.3 billion but the NRI remittance was $21.7 billion. While China hushes up demonstrations, India’s electoral politics demands that the media should play them up.

But Forbes talks of the major drawbacks of Indian picture. “What we don’t publicise sufficiently is that India lags behind China in almost all the indicators of progress. 88 million Chinese still languish below the poverty line and last year’s $1,162 per capita income was on par with the Philippines. But only 13 per cent of Chinese live on less than $1 a day compared to 30 per cent in India with another 30 per cent struggling along on $2.”

However, there is something more fundamental that India can rejoice. The internal consumption-led structure of the Indian economy is closer to that of the developed economies of the West. “What excites me most about India is the potential for an increasingly powerful internal consumption dynamic-an ingredient sorely missing in most other Asian development models, including China’s,” says Stephen Roach, managing director and chief economist, Morgan Stanley. “Private consumption accounts for 64 per cent of India’s gross domestic product (GDP-the value of all goods and services produced in a country in a year). For Europe the figure is 58 per cent, in Japan it is 55 per cent and in China it’s only 42 per cent. Many economists consider the internal consumption-dependent growth model more sustainable than trade-dependent models because an economy led primarily by domestic consumption is less vulnerable to external disturbances.”

India’s per capita income and consumption levels may be only about half of China’s levels. But with higher growth rate in consumption, the income is bound to grow.

While the experts are talking of a bright future for INDIA, Indians individually and in groups and wherever they are working, must look into increasing the productivity, and must try to be innovative. It can boost our GDP by at least 2%. Many times, we can get great improvement in productivity without much investment that may be one’s constraint.