Kejriwal vs. Vadra

Posted on October 11, 2012 by indra

We must know the difference between the two and their backgrounds before making any comments based on what media say or show. Many in India even today may not be knowing much about the two. But both have a potential to become important one day in politics of India. In case of one, it will require the permission of the mother-in-law, but the other one is already on the difficult entrepreneurship of raising a political party of his own. 

Arvind Kejriwal is one of those alumni of IIT, Kharagpur, my own institute who instead of pursuing technology decided to join lucrative UPSC. I don’t like those finishing four years of rigorous training in technology joining IIMs or or striving for administrative services. I am biased and consider this as waste of the money spent. However, Kejriwal must have realized his mistake and then decided to an NGO and did wonderful job for RTI.

Kejriwal is leading ‘India After Corruption’ assisted by father son combo of Bhushans , the experienced lawyers and a large number of intellectuals representing the aspirations of the middle class of India. Anna is no more the father figure of the new battle against corruption. 

I had a great respect for Nehruji and to certain extent for Indira too. But I didn’t like the enthronement  of Sonia. She didn’t deserve it on her own.  I don’t know the educational background of Robert Vadra and early professional engagements. However, one can easily find that. 

Robert Vadra, till recently, was known only for his marital relation with Priyanka, the daughter of Sonia Gandhi who heads the oldest political party of Mahatma and runs it as her fiefdom. Vadra is not in politics. as the country has now come to know that he is a business man worth may be Rs 1000 crore or more.

Why should the ministers as senior as Chidambaram, Salman Khurshid , Moily known for integrity as well as the loyalists such as Ambika Soni, Jayanti Natrajan and Rajiv Shukla along with battalion of the Congress spokespersons come out in defending Vadra against whom Kejriwal and his team has come out with serious allegations? One one hand they call Vadra an ordinary citizen of India, on the other the whole government and party machinery is full time busy in claiming Vadra’s innocence and righteousness as business man.

As alleged by India Against Corruption (IAC) activists Prashant Bhushan and Arvind Kejriwal, the realty giant DLF gave properties, currently valued at around Rs 500 crore, to Sonia Gandhi’s son-in law Robert Vadra at grossly undervalued rates in exchange for favours it allegedly received from Congress state governments in Haryana, Rajasthan and Delhi.

It will be really great if Kejriwal team succeeds in its plans to form a political party that becomes acceptable to the new generation of the whole country. The country can be free from the parties dominated by certain castes, communities, or certain families. Perhaps that is or should be the dream Of every honest Indian. 

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“Toilets were more important than temples”

Posted on October 7, 2012 by indra

Jairam! I am ashamed to hear it from an IITian. No, I should not have been so. You don’t have any respect for even your IIT either. Before going ahead, let me ask, why didn’t you use another word ‘mosques’ too. Have you the guts to do that?

It pains when a person who could have been an icon for youngsters makes such a childlike remark that “toilets were more important than temples.”

Open defecation is a curse and a shame for the nation. Why should one go to rural side to see it? Why Jairam is not focusing on the NCR townships and the capital itself? There are pockets right in New Delhi perhaps very near he resides where all the migrants defacate in open in the darkness of early morning. Perhaps that is one reason for them to get up early. I live in Sector 41 of Noida. I can’t walk up to the market of Sector 30. The service lane towards the railway housing complex is the free place for the defecation of those who don’t have any toilet to use. The rich Noida Authority doesn’t provide any toilet facility even in big parks and market complexes and wherever there are, those just so shabby and filthy that any respectable person can hardly use. And can Jairam fist see that all the schools in the region get good toilets and drinking water facilities? As I remember, Mumbai may be worse.

I still remember our visit to Khajuraho in 1998 vividly. As usual I had got up early and gone out for walk up to the temple complex. The Khajuraho village was very near, I thought of seeing it from the nearer quarter. I kept on walking towards the village. Very soon I found the grown up girls and women defecating in open and many still going out in full daylight. I felt ashamed to go any further and returned. I don’t know if it had changed today.

In 2007 we went from Noida to my village and went to Gaya for the rituals of ‘pinddan’ for the ancestors. Right near the main temple on the bank of the river, when the priest took up inside, it was full of human etcetera. I came back. And similar was the condition around the tank of a place called Dev near Aurangabad where we had gone for celebrating Chhuth as my mother wanted that. The place was just full of human excretion.

Naturally, the situation in rural India that I know is in horrible state. One can see it during the train journey or while passing through the roads in the small towns and villages. It’s shame for the nation. Unfortunately even the huge organization such as Indian Railways can’t implement already available and proven technology that could have made country a little better.

The mission to end open defecation is great a great one. Jairam would have appealed to all the religious shrines with a lot of followings to participate in the mission. The shrines can educate the followers. And the education is essential. The shrines can take up the projects to construct and maintain the toilets with the donations of the community. Many rich shrines can accelerate the task.

Jairam must involve the community, the panchayats, the NGOs, the philanthropists, the religious leaders, the educational institutes and teachers and the business community and its associations to participate and contribute in the campaign of Nirmal India.

However, the most important is the right design of the toilets for varying locations and its regular maintenance. Let the country appreciate that a country is judged by the cleanliness of the toilets it maintains for its citizens.

I still wish India gets succeeds to end the open defecation in the next ten years if not earlier.

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FDI in Retails: Some Interesting Aspects

Posted on October 6, 2012 by indra

Here are certain inferences from some studies, some data and some views of wise men for retroinspection:

There is not going to be a calamity because of allowing FDI in multi-brand retail as some opposition parties claim. But the government’s claim of a ‘win-win’ with higher prices for farmers and lower prices for customers with the advent of FDI is not only somewhat but highly exaggerated. If at it happens, it’s not going to happen overnight as the government spokesmen keep on posturing on TV channels. 

Again, the fear of many in opposition about the bleak future of the thousands of existing kirana shops is highly mistaken. The huge size of the rural market consisting of all categories of families including a large number of  poor people  will keep on sustaining the growth of kirana shops generating a substantial demand for low quality food with lower mark-ups.

The claim that FDI in retail would dampen inflation, particularly of food items, is difficult to fathom. The exponentially increasing demand of milk, vegetables and fruits requires matching increase in its production and reduction of wastage because of lack of sufficient and right cold storage facilities, its processing and fast enough transportation to the retail outlets and to the actual users. 

The government must mop up grains only to the extent it can store properly, as presently a huge lot get stored in open and is allowed to rot. Presently, to be on safe side and perhaps to satisfy certain vested interest, the government presently mop up the entire surplus of the farmers. It must allow the private players such as ITC to procure directly. No private players will allow it to rot.  

Here are some hopes for a better day for the farmers:

“Average price realisation for cauliflower farmers selling directly to organised retail is about 25 per cent higher than their proceeds from sale to regulated government mandi [agricultural market. Profit realisation for farmers selling directly to organised retailers is about 60 per cent higher than that received from selling in the mandi.”
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Will the MNCs in retail go for buying directly from the farmers? Will the government amend the law that allows the purchase only through the mandis? Even ITC couldn’t expand it’s e-chaupal initiative as it wanted , because of this restriction.

Moreover, unlike US the MNCs in India will have to deal with many small marginal farmers. It will have to innovate some new model for procurement

The MNCs such as Walmarts and Tescos will set up direct procurement mechanisms with sophisticated procurement systems that will require the elimination of the middlemen.  But it will require support of the government of the statewide years.

Farmers make up more than half the Indian population. The retail trade accounts for only about a tenth.

Those dreaming for a huge employment in the sector may get morose. According to Professor of economics at Jawaharlal Nehru University, Jayati Ghosh, one Walmart will replace 1400 small retailers at the cost of 5000 jobs. It is doubtful if overall employment will increase significantly because of the entries of MNCs in retail.

“Walmart’s expansion in Iowa in 2005 shut down 555 grocery stores, 298 hardware stores, 293 building suppliers, 161 variety stores, 158 women’s stores and 116 pharmacies. A Chicago study showed businesses closest to Walmart were most vulnerable: 40% of those in “immediate proximity” would close in two years. But, by a process called “creative destruction” new businesses spring up to replace them, showed a 2008 West Virginia study.”
 
No doubt, India’s retail market is one of the fastest growing in the world expected to grow at 15 to 20% over the next five years, according to global consultancy firm AT Kearney’s Global Retail Development Index. 

While the share of retail in GDP is 14%, organised retail only accounts for around 6% of this total while 94% comprises of small businesses or kirana stores. Moreover, the industry employs 8% of the population.

Whenever one talks  of MNCs in retail, Wal-Mart comes the first. Wal-Mart:Founded in 1962, Wal-Mart operates 10,000 retail units under 69 banners in 27 countries. It employs 2.2 million people with sales of $444 billion in 2012. It is one of the biggest companies in the world.

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Presidential Debate: Utopian Promises

Posted on October 5, 2012 by indra

Who knows with the rest of the family there we two also may end up as American unless India bestow on us duel citizenship.  With that in mind I keep watching certain developments in US. Naturally, these days, the forthcoming Presidential Election is a hot item. Yesterday, the two candidates went for their first debate. Though it is not mandatory, but it has become an important feature of the Presidential Election. There are many stories about the same. Every American look forward for it. 

I was in US during the period of the last Presidential Election in 2008. As Anand and Rajesh were taking keen interest in Obama I could also learn about this aspect of American election process. The debates have become integral feature of electioneering in US.

I watched the debate yesterday a little after it had finished through u-tube. I also went through the transcript for a better understanding. Somehow Right from the beginning Obama was not in his best. He was fumbling and not putting forth his performance record or future plans very forthrightly. Romney appeared to be more confident and clear in his utopian conviction. While Obama remained with his focus on healthcare and education, Romney stuck to two points that might attract the voters more. He was clear that he will not raise any tax whatsoever and was against the idea of Obama’s plan of taxing the richer class. He also didn’t vouch for the cut in America’s defence budget to reduce deficit, as according to him that will jeopardize the American supremacy. Americans in general will certainly appreciate that.

Somehow, I don’t give much weightage to the promises and claims of the politicians . It hardly means much unless he goes for the next election. However, I liked the zeal with which Obama spoke about improving the science education of US. I wish Indian politicians take a lesson and do everything to improve education, particularly in rural India. How can India compete with other countries in world without having skilled and educated Indians?

In the night I really enjoyed a programme on ‘Time Now’ where Arnab Goshwami was discussing with a number of columnists and intellectuals about emulating the American system of  debating in Indian electioneering. It will certainly be interesting but with many like Manmohan who love to be in mute mode, there is hardly any hope of it getting in our election campaign.

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कुछ समस्याएं, कुछ विचार

Posted on October 2, 2012 by indra

उम्र के साथ स्वजनों के प्रति लगाव भी बढ़ता जा रहा है। उनका आना, रहना और बहुत सारी बातों की जानकारी पाना अच्छा लगता है। पर कुछ उनकी अपेक्षाएँ तकलीफ देती हैं और फिर कुछ नासमझियाँ मन को दुखाती हैं ।हम दो ही रहते है यहां ।सात लोगों की खातिरदारी करना तकलीफदेय है। अब अगर दस आदमी के लिये खाना किसी तरह तैयार करा भी लिया ज़ाय और फिर पता चले आखिरी समय कि  केवल दो ही आ रहे है कितना मानशिक कष्ट देता है। किसमें बांटा जाये यह खाना। गांव में तो दूसरे दिन मजदूरों को या पड़ोस में दिया जा सकता है । कब सीखेंगे लोग जब चालीस साल के तथाकथित पढ़ेलिखे नहीं समझते इस साधारण शिष्टाचार को। क्या गांव का होना इसका कारण है ।शायद नहीं । स्वाभाविकतः यमुना को तकलीफ ज़्यादा होती है ।पर कुछ हल भी नहीं है इसका। या तो अपने सीख जायेंगे ऐसे लोग या कोइ मुझसे ज़्यादा व्यावाहारिक व्यक्ति से पाला पडने पर सीखने के लिये बाध्य हो जायेंगे।
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सितम्बर २६ को अलोक एवं उनकी पत्नी को ले अट्ठा बाजार गया, उन्हे कुछ अपने लिये खरीददारी करनी थी। एक जगह खाली देख गाड़ी लगा अलोक को खरीददारी के लिये भेज दिया ।तीन चार गाड़ियां पहले से वहाँ खड़ी थीं । मैं थोड़ी दूर एक छायेधार जगह खड़ा हो गया, अचानक देखा पुलिस की गाड़ी मेरी गाड़ी में हुक लगा रही है, मैं दौड़ पह़ुचाँ।मैं जानना चाहा मेरी गाड़ी को हीं क्यों ? पर उन पर कोइ असर नहीं पड़ा, मुझे अलोक को सूचित कर घर आना पड़ा ।वे मुझसे पैसा चाहते थे और मैं देने को तैयार नहीं था ।
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अमरीका से वापस लौट एक अदभुत समस्या रोज़ सबेरे घूमने जाते वक्त मिलती है।सड़क पर जहां तहां पालतू कुत्तों का मल पड़ा रहता है और सेक्टर से लगे गांव के गायों, बछडों,और साढ़ों द्वारा किया गंदगी भी । पहली श्रेणी के पालतुओं के मालिक तो सभ्य समाज के हैं फिर वे यह बात क्यों नहीं समझते ? किस तरह नोयडा स्वक्ष और सुंदर बन पायेगा। शायद भारत को साफ रहने की आदत डालने में सदियाँ लगा जाये ।
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आजकल नोयडा में दिन में दो तीन बार बिजली काफी समय के लिये नहीं रहती। प्रातभ्रमण के मित्र इसका कारण नोयडा का मायावती का क्षेत्र होना बताते हैं । आजकल मुख्‍यमंत्री अखिलेश यादव गांधी परिवार के चुनावक्षेत्र रायबरेली और आमेथी के बिजली पर ज़्यादा ध्यान दे रहे हैं । नोयडा ने पिछले चुनाव में न कांग्रेस को चुना, न समाजवादी पार्टी को ।अब बिजली तो तभी बराबर मिलेगी जब नोयडावाले अगले चुनाव में समाजवादी पार्टी को जितायेगें ।
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लगता है लोग राष्ट्रपिता गांधी को भूलते जा रहे हैं । आज गांधी कहने पर लोग इसे सोनिया या अधिक से अधिक राजीव, इन्दिरा, और राहुल से जोड़ते हैं । आज २ अक्टूबर है, सबेरे एक बंधु गांधी को आत्मपरक बतलाते रहे और मेरी एक नहीं सुने लाख कोशिश के बावजूद । जयराम रमेश निर्मल ग्राम की बात करते है । दुनिया में सबसे ज़्यादा भारत के लोग खुले में मल त्याग करते हैं। गावं की बात तो अलग है नोयडा के हर सेक्टर में कुछ ऐसे जगह दिखेगें जहां लोग खुले आम मलमुत्र त्यागते हैं । दिल्ली से लगे अन्य सहर, गुडगांव, फरीदाबाद, यहाँतक की दिल्ली के अधिकाँश नगरों में भी यही चीज दिखने को बहुतायात में मिला जायेगी । जयराम अगर पहले शहरों पर ध्यान देते तो अच्छा रहता, शायद सफलता भी दिखती । महात्मा के जन्मदिन को सफाइ दिवस के रूप में सारे देश में मनाना चाहिये ।

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FDI in Retail: My Apprehensions

Posted on September 30, 2012 by indra

It appears that the political turmoil and protest after the September surge or rush of policy announcements of Manmohan’s government are unnecessary so far the opening up of the multi-brand retails is concerned.

As revealed, NDA during its regime was ready to bring FDI in multi-brand retail and had prepared a detail cabinet note that is now in hands of the present government and so also that Manmohan Singh as the leader of opposition was against the FDI and had written a letter in that regard. BJP has the letter of Manmohan Singh. Today both have changed their mind. Is it a natural change of views? If yes, it is good. But then both the parties should not have any grudge against each other. However, the issue is not that simple.

I was in favour of the big MNCs coming to India in retail in 2006-7 after I had seen its outlets during my long US stay. And one can read many of my entries of the period on dritikona.com. But today I have many apprehensions.

One must appreciate that no MNC will enter India or, for that matter, any country unless it finds the prospect of adding to its bottom-line soon enough. If Wal-Mart or any other MNC in retail comes and invests in India, it must have decided its business plans and would have seen good business prospect… It will come to earn for itself and its shareholders and not for buying offering the best price to the producers and for selling at cheaper price. It can neither be forced to buy straight from the farmers, nor invest in cold storage and other infrastructures unless it justifies its business volume.

Chidanand Rajgatta of ‘The Times of India’ has presented the case nicely in his article. Wal-Mart quality wise is considered at the lowest in US. I don’t think Wal-Mart is very popular destination of the households for perishable items such as vegetables and fruits. I also don’t know how much it has invested for avoiding wastage of the perishable commodities in US or in other countries.

My objection is against the way the ministers including the prime minister are putting all the positive aspects of this policy decision, as if in one stroke it will eliminate all the intermediaries, cut the wastage due to rotting of the perishable items, and provide huge employment. One is not sure if many MNCs will rush to India. It will be better for the government to open the retail too few players only and see how it works. The government must encourage the domestic players so that one of them can become Wal-Mart tomorrow.

I am against it for two other reasons. First, the retail companies will need only low skill people for employment. Second, the retail is one of the most popular choices of even the common men in neighbourhood to become entrepreneur. That lot will certainly get discouraged.

Historically, the today’s trader becomes tomorrow’s manufacturer. There are many examples. With the opening of retail to MNCs, the future of the growth of the manufacturing in small scale will be dim. India will not be able to compete in low cost manufacturing of simple household items; and the MNCs will certainly source them from their already developed global vendors. India needs the huge growth of low-cost, low-skill manufacturing even reaching rural India to keep the large addition of employable population engaged.

My main request to the economist prime minister is to take it easy and make it acceptable rather than forcing it to the people.

Interestingly, the intellectuals and economists of the country are clearly divided in two camps one supporting it and the other opposing it. It has made the people confused. Even the common people are divided.

Why couldn’t Manmohan go for a debate on each of the issues of FDI in retail with the leader of opposition on national TV channel? It will provide an opportunity to the country men to know the views of both the sides and make up their minds. A good democracy certainly can expect this little favour.

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What Brought Reforms Deluge?

Posted on September 27, 2012 by indra

I am sure many must be wondering why it took almost 8 years for Manmohan to come back in ‘reforming mode’ for which he was known when he was the finance minister in Narsingha Rao’s cabinet in early 90s. Who was holding Manmohan back to go for it as prime minister? Was it only because of the allies in the coalition? Was it because Sonia was not sure about the effect of these reforms on the electorate and she was not ready to support Manmohan? Has Sonia been convinced about the reforms as the necessity for the survival and also for coming back in power in 2014?

1.Is it because of the adjectives used by ‘Time’ and ‘Washington Post’ for Manmohan and Manmohan decided to prove them wrong?

2. Is it because of the pressure created by the opposition because of his personal failing resulting in the Coalgate and the politically controversial reforms will divert the focus of the opposition?

3. Is it to make India more attractive destination of investment for global biggies?

4. Is it because the Indian economy was almost on the verge of collapse that Manmohan also warned the nation for?

5. Is it because the reforms will bring a large part of the constituency, particularly the corporate donors that will matter in winning the 2014 election? It appears to be the first priority, and one can witness that in the exuberance of corporate India.

6. Is it because of a genuine love for reform to improve growth rate back to 6-8 percent and the resulting prosperity to millions? Whatever has been done or can be done by the route of executive orders without involving the opposition and getting key bills passed will hardly bring the country in fast forward speed.

7. Was it a pre-planned move to celebrate his birth day and tell the nation that he still can do it? Perhaps the old man after pushing up the former politician finance minister to the Raisina Hill Palace has found one good colleague to support himself and to plead for the necessity of the so-called reform to the supremo without whose agreement; even this much would not have been possible.

It surprises that the foregn media have all praise for the reform deluge. The ‘Economist’ that was so critical of Manmohan, writes in an article: ‘Manmohan Singh has rediscovered his vim’, It has its advices too: The reforming Mr Singh of yore would see them as just the start. He should insist that the government gets a grip on its finances, through swingeing further cuts in subsidies and an overhaul that increases the government’s tax take. Vast, dysfunctional chunks of the economy dominated by the state, notably power and coal, need urgent reshaping. Decision-making within government needs streamlining. Articulate this vision, Mr Singh, and your legacy will be restored—even if you are ousted for your courage.”

And the policy announcement has certainly changed the perception about the business possibility in India.

I couldn’t understand what Manmohan wanted to convey when he said in the address to the nation: Much of diesel is used by big cars and SUVs owned by the rich and by factories and businesses. Should government run large fiscal deficits to subsidise them? Why did Manmojan forget the farmers who depend on tractors and pumps, truck owners who transport every commodity for the common people, and the SME that are forced to use diesel generators that make them uncompetitive in cist with respect to the Chinese counterparts? Will it not increase the farming cost and the prices of everything that the common man buys?

I do also remind Manmohan that today even LPG has reached the homes of villagers and even many huts of so called BPL with costly but smaller juggadu cylinders. Further, it is a necessity, as its use also improves the overall health related issues for every women that are forced to use cow dung cakes or wood or many othe things that produce harmful smoke.

I do understand the logics of Yechuri on the price rise and the oil companies, but can’t understand Arun Shourie and Raghuram Rajan’s support for increasing the prices of diesel.

Can Manmohan and his minister ensure that the MNCs in retail will not flood the Indian market with cheap Chinese household goods and buy straight from the farmers? If they ensure I shall not have any problem.

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Kejriwal and Anna: My Shock

Posted on September 24, 2012 by indra

For nearly two years, Anna and Kejriwal worked together to lead one movement that appeared to change the way India works. The younger generation celebrated the rise of a movement as well as its leadership. Many started hoping and seeing the end of corruption. The crowd at Jantar Mantar, or Ramlila reminded the year of Loknayak Jai Prakash Narayan’s movement.

And today, Anna Hazare and his one-time closest aide Arvind Kejriwal are no more together. Anna sealed the split: “It is unfortunate that the team has separated…I will not join any party or any group. I will not go for their campaign. I will only campaign and devote my life to jan lokpal.”

I have a soft corner for the both for different reasons: Kejriwal as he is from IIT, Kharagpur; and Anna for the exemplary work that he has done in his village, Ralegan Siddhi. However, I got elated perhaps a little too much like many with the getting together of Anna and Kejriwal to fight against the corruption.

But the present government and particularly those who run the Congress party have mastered the art and science of annihilating any individual and institution that goes against its policies. And it uses all methods the character assassination through government machinery of Income tax department and CBI and its own experts such as Dig Vijay Singh and Lalu Yadav. Even the main opposition parties and their top leaders were envy of the media coverage of Kejriwal at some time or the other. Why should not any of the national party embrace Kejriwal and give out of the turn, senior, senior position in their establishments?

As reported, even the mother organization of the BJP conspired for the break between Anna and Arvind.

Anna will work only for jan lokpal. Arvind based on certain survey conducted by IAC has formed a political party and face election. I don’t like their resolve, as I don’t see them succeeding and the people at large will hardly be benefited.

I had a different view at what they would have focused. Together they would have gone for Ralegan Siddhi type of transformation in the villages of India that Anna has brought about and can be emulated. IAC would have selected social volunteers with high integrity in every panchayat all over the country to oversee the cases of corruption and to bring awareness among the common people how their money is being fleeced by few. After working for few years successfully, the group could have entered the arena of election politics. I don’t know why Kejriwal forgets that Gandhi also came and succeeded because of the social work that he undertook to reach the masses.

The political parties today are full time busy in a single task of working for winning elections of all sorts and come in power and retain it. One can know of the party when it organizes protest of all types such as dharna, bandh or raol rook or take out big rallies inconveniencing the major population of common people.

It is unfortunate and shocking to me that Arvind is trying to have new political party doing the same what Lalu, Mulayam and Mayawati are having. Kejriwal is everywhere, be in Madhya Pradesh’s Jal Satyagrah, Kudankulam siege of Nuclear Plant, in the protest march against the rise of power tariff in New Delhi.

I wonder if our intellectual class to which Kejriwal or Bhusahans and their followers belong will be able to compete with the stalwarts with their dirty games.

I still will like and pray that he succeeds, as it will inspire the educated youth of India that always remain aloof of politics.

Arvind must focus on his mission and need not become Meda Patkar or Anna.

Will Arvind be fused bulb as claimed by some politician? The young India and oldies like me expected him to play a role in building of corruption-free India.

Posted in education, governance, indian politics | Leave a comment

A Battle called Retail Reform

Posted on September 21, 2012 by indra

Yesterday I was listening to an interview of Amand Sharma on NDTV. Sharma is an efficient minister. He has tried to sell the policy of FDI in multi-brand retails well. However, I failed to understand at least two of his reasons that forced the government to decide to go for the policy.

1. According to Sharma, the MNCs will give the better price to the farmers.
2. And the consumers will have to pay much less.

It will all happen because of the reduction in number of intermediaries that are today fleecing the maximum gain in the trade and causing the price rise.

I don’t understand why Sharma foresee things to happen this way. Will the MNCs go directly to the farmers? Will the farmers be able to negotiate the best price for their produce? Will not the MNCs, at the best, give only a little more than the MSP, price fixed by the government or a little more than what the intermediaries have been giving them. And at later stage, MNCs even may try to squeeze the best advantage from the farmers. Unlike US, with so marginal land holding and financial condition how will the Indian farmers face the MNCs? I like many, doubt that the farmers will benefit from this. At least there is no guarantee of this.

Why didn’t this happen when and where the Indian big business houses, such as Mukesh Ambani entered the retail with the similar promises?

Will these MNCs set up the cold storages and use refrigerated vehicles that will cut down the so much publicized the rotting and the wastages of the perishables? If they can, why couldn’t Indian business houses do that? Does it require any cutting edge technologies that Indians don’t know?

Perhaps one of the best technology developed by Wall Mart related to the networking and logistics, and it may use it in India, but will be of little value to others. But who will improve the time taken even today in ferrying goods between Maharashtra and Bihar because of the delay at interstate toll plazas?

I doubt these MNCs in retails will go the way Maruti Suzuki developed its vendors for the auto components, Will like PepsiCo these MNCs will help the farmers to develop the farm produce such as potatoes of the quality required by it?

Let the government not sell unnecessarily the big dreams of FDI policy as cure all to aam aadami as it did at the time of getting the bill of Nuclear Deal through the parliament and Rahul Gandhi telling a tribal woman that with nuclear deal she would get electricity in her hut.

I also feel like believing now the leaders in opposition that all these policies have come out of a decision by the present government to divert the public attention from the huge scam or mishandling of the allotment of coal blocks to unscrupulous relatives of politicians and business men who didn’t do anything to make them operative in last 6-7 years.

The government, through media and business houses is trying to project its act as a big ticket reform. However, there is one winner and he is Manmohan Singh. The act has certainly made him a brave administrator. All the foreign media that were campaigning for these policies to save the falling economy of the developed nations in West are having all praise for the India government and Manmohan. Sonia finding no way out succumbed to it.

I wish it happens. All the national newspapers are carrying today the ad marketing the FDI in retails showing the benefits to the farmers. I wish it happens.

There is no trouble in going for the policy. But this is certainly not a big reform. People of India will have to see how many MNCs enter the market with so many constraints. But the offensive decision is certainly neither a game changer nor a reform to benefit the small farmers, though MNCs certainly get another opportunity to expand their tentacles in another big country of 1.2 billion people.

Posted in economy, governance | Leave a comment

FDI in Retail: Is it reform

Posted on September 16, 2012 by indra

Is the FDI in multi-brand retail a reform?

Will the Retail giants rush to India to take advantage of Manmohan’s policy to boost India’s GDP? Why is Manmohan and his government so excited? Is it the cure of all the lapses in governance? Will they be able to get the real advantage out of it, as China has done?

Will these foreign giants be so benevolent to reduce the multiplier, between the price paid to the farmers and horticulturists, and the price paid by the consumer that according to Anand Sharma is 5-10? If it would, why had not it happened with the entry of big business houses in retail?

Why couldn’t then Ambani, Tata, Birlas, or even Safal could do the same what foreign retail biggies are expected to do ? Why could these big houses not set up the infrastructure such as cold storages and improve on the supply chain and logistics ? How is it possible with power shortages and increasing diesel price that runs generators for captive use?

The MNCs in retail will hardly encourage local manufacturers or provide sufficient incentive for the entry of the new entrepreneurs in manufacturing. With the knowledge of the countries having lowest price, instead of small local traders and importers, with the new policy in place, the global Retail giants will import almost everything and pass it on to the Indian buyers that are crazy for imported brands.

As I see the entry of these big retailers will have negative effects on the Indian companies engaged in manufacturing apparels, hosiery and knit wears. Manufacturers of household essentials and fancy items will not be able to compete with the Chinese.

My other fear is about its ill-effect on the fruit producers. In name of quality, the Indian consumers will have to forget our fruits and go for those produced in China and other countries.

The policy outright will favor those global giants in making up their losses due to the bad economical conditions in the industrialized countries of West and US.

Let us not dream that they will create jobs and if at all they create employment, it will be only for those who are not even good enough for call centers.

In 2005, when I was in US for almost six months, I had studied about the Wal-Mart In details and how this largest company of the world is hated by many for different reasons.

It would have been in national interest that domestic retail players would have seriously entered in this sector and would have brought a revolution for the farmers and consumers of the country. Alas! they failed us.

Interestingly, the English media and some economists are calling this as reform. The Economic Times is one. One can see its Sunday issue. Foreign media naturally are agog and have all praise with many adjectives for Manmohan.

I shall agree with just one thing that the announcement though might not be in the interest of the people of India but it will certainly make Manmohan a hero in the countries of those big retail companies that have been planning to come in India.

For me, the biggest reform for Mamohan to focus should have been related to the land acquisition and compensation, industrial labour, reduction in days for starting a new business and so many other essential policies that can make the execution of projects fast.

Let the people decide if it is reform.

Posted in economy, governance, industry, manufacturing, Uncategorized | 1 Comment