Monday, July 27, 2015

Vijay Divas - Are we doing enough for our armed forces?

One of the first songs that we hear on days like today is the famous "Ae mere watan ke logon, zara aankh mein bharlo paani" by the evergreen Latadi and no matter how many times I listen to it, it still gives me goosebumps. The song is used to commemorate our brave armed forces and beyond such token symbolism, our government, irrespective of the party in power, does not keep in pace with modern times to reward them.

Except for the 1962 war against China there has not been a single war which we have lost. And we could have saved our face even against China had Jawaharlal Nehru not goofed up as per a former air force chief and used our Air Force. But save that for another day. Our armed forces have shown exemplary behaviour in not being the provocation for foreign forces but at the same time has the capability to give a fitting reply. From the 1971 war (if the film Border is even remotely similar to it, it is a great achievement) to the recent retaliation in Myanmar, the Indian forces have never failed. Forget wars, even in times of natural disasters like the Uttarakhand floods the armed forces ensure that civilians like us are safe no matter what happens to them. That is the level of their commitment and dedication. But have we given them enough? And the answer is a resounding NO.

Unfair Treatment:
While the latest budget for the armed forces is nearing 2.5 lakh crore, as a percent of GDP it is just 1.7%. This is much less than the 2% of China, 3% of Pakistan and almost 2% below the Israel (which has similar conditions like us) and Russian budgets. Critics may argue that in absolute terms, it is a huge number but such low spending affects on the future capabilities of the armed forces. As if the slower-than-a-snail process to modernize and indigenize during the 10-year UPA rule was not enough, the present NaMo government, though big on announcements and vision, has not yet shown concrete results. The likes of Rafale jet deal is something which should be done more. Buy some off the shelf and manufacture the remaining in India under the Make in India campaign. 

Out of this humongous budget, a good part goes towards the salaries and pension of the armed forces (in spite of OROP not been implemented though it should have been much earlier), and thus it leaves very little behind for modernization. This has led to our armed forces using outdated weapons risking their lives further and demoralizing them. It can be seen from the latest numbers disclosed by Manohar Parrikar in the Parliament that the defence forces faces a shortfall of more than 11,000 officers of which 90% is in the Indian Army. And it would take a good decade to fill in this vacancy. So this means that our battalions will keep reducing as there are no majors to guide them. What a shame for the second highest populous nation to have such a distinction! In addition to the personnel shortfall, the Army does not have ammunition beyond 20 days in case of a full blown war. The politicians may slug it out in the Parliament against each other, but they are not the ones to protect the borders in case of an emergency - it is the armed forces. So it is a wake-up call for our government.

The Air force has its own problems. Training mishaps on the MiG-21 are common with loss of finest pilots. Furthermore we have just 30-odd squadrons instead of the designated 42-44 squadrons. And with planes dating back to the 60s and 70s this will further reduce, heavily affecting the air force. It is a matter of concern due to recent bonhomie between Pakistan and China where China is supplying modern fighter jets to Pakistan while our Tejas Mark II is still a long way before induction. For the navy, losing INS Sindhurakshak and 18 valuable soldiers has further crippled it along with an ageing fleet of outdated submarines leading to regular outbreaks of fire in the past two years. How are we supposed to thwart a threat from a superior Pakistani navy and 50+ strong fleet of Chinese nuke subs? And all this because our DRDO is not able to innovate and produce on time. Call it the bureaucracy or financial problem or a defence minister who for years did not sign files for the fear of being called corrupt (A.K.Antony still remains an honest politician in the otherwise corrupt Congress which fulfils his purpose of not being termed corrupt), the fact is we have a problem as a country when it comes to our armed forces. How long can we ignore it?

Talking of ill-treatment of our soldiers, the government leaves no stone unturned to trouble the soldier's kin after his death. There is a long list of benefits for the next of kin of the martyr but the kin has to run to a number of government departments and wait for years before they get that benefit. In a bizarre incident in Chhatisgarh last year, the CRPF jawans were retrieved from a garbage dump at the Raipur government hospital. This was after an earlier incident in 2011 when policemen who were killed in a Naxal attack in Dantewada were transported in municipal garbage truck. They guard us and we literally dump them!! 

Another reason why the money intended for the forces is wasted and they do not get the best treatment is corruption. Our politicians who have not left education, cricket, telecom, real estate, coal and even toilet paper made sure that they do the same with the armed forces. So be it the Adarsh scam or the Sukna land scam, it was ultimately the brave heroes of our country and their kin who had to suffer. Even retd Gen VK Singh was offered a bribe of ₹ 14 crore for purchase of sub-standard Tatra trucks. And the case of Bofors is well documented. We must hang our heads in shame!!

Way Forward:
The only way forward to ensure that the men who ensure our peace are rewarded adequately is to modernize the forces so that loss of lives is minimal. Corruption in the armed forces should be curbed which is easier said than done. But the idea of Joint Chief of Staffs is an idea worth considering. This will give the armed forces greater autonomy as well as increase the co-ordination between the three primary forces which work in silos at present.

Another way is to corporatize the functioning of DRDO and deadlines must be set to deliver results. We have the best of brains, it is time to use them to secure our future. To ensure that DRDO alone does not have the entire responsibility, private players must be taken on board as partners to encourage R&D in this sector. This has already started but the 49% cap stops foreign players from entering India. Give them majority ownership but design rules that the profit must be used to enhance capabilities in India and the government can supersede the Indian company in case it is found to violate the sovereignty and freedom of India. We are the largest importer of arms in the world and financial concerns should be last thing when deciding ownership - we anyway remit too many dollars because of this. 

The perception of the armed forces has taken a beating because of which we do not see many graduates not applying for vacant positions. Once the conditions are improved, I have no doubt that the famed youth of this country will throng to serve the country. 

I am reminded of the dialogue from the film Baby where Danny in response to the minister's question "are we doing enough for them" says, "Kahan sir, but the fact is they don't really care". True, that the armed forces selflessly serve the country and will not shy away from taking a bullet to save it. But this does not mean we take them for granted. Else there will be a time when we will be the largest importer of foreign soldiers in addition to foreign arms - that is if we retain our freedom! Hopefully the government takes cognizance of this issue and follows up on what it has promised. I still choose to be optimistic. Jai Hind! 

Monday, February 9, 2015

Fixing Laws for Make In India

From NaMOBama to IndiAmerica and other such portmanteaus used in the past couple of days to ironing out differences over the N-deal and agreeing cooperation on the climate talks to be held in Paris in December this year this visit by POTUS has been making headlines every single minute if not second.  News channel went ga-ga over Michelle Obama's dress and Narendra Modi's wardrobe.  But that's regular for us now - Indians love 'masala' in their food as well as news and MBA has taught me that an average report when wrapped in a good presentation makes wonders.  Or as they say "A little showbiz never hurt anyone".

As I write this, Obama has announced billions of dollars of investment - from loans to renewable energy and project financing to invoking Gandhi on religious tolerance in India in the National Prayer Breakfast. But as my journalist sister says, "Everything on TV is good to look at, not enough to believe", I would not take everything that they said to fructify.  And the reason is not the intent to not do but the inability by the Centre to implement its plans.  Even if the Centre decides to implement a good thing, the Opposition will stay true to its meaning - oppose blindly and that holds true for the ruling party as well.  If a law is luckily passed by the Centre then it faces hurdles at the State as they have enough provisions to extract money from the Centre in the form of "special packages" in return for approval.   

Though Sagarika Ghose called the metallic lion "YIKES", it caught the eye of each and every viewer. And for Modi to deliver on his "Make in India" , "Digital India" and "24x7 Power" campaigns, he has to lay a strong foundation - he has the numbers in the lower house and its only a matter of time before he gets a majority in the Upper house.  The foundation is change in laws and this needs to be addressed before embarking on this ambitious plan.

Manufacturing:

The manufacturing sector is plagued with problems.  Labour Acts, Land Acts and even tribal Acts act as major hurdles.  Labour force the government to stop modernisation plans, threaten to strike if wages are not raised - basically stop anything that would take away their freedom and force them to work efficiently.  Government institutions have become resting homes for them and any move, even the talk of it, arises so much protest that it becomes difficult to bring about modernisation. Take the example of the incident in Chhatisgarh (http://goo.gl/6IjhyE) where due to a provision in the Forest Act (2006) many of the dozen coal blocks are in jeopardy. The coal block ordinance which did not attract any criticism will face trouble due to this act. And the list for such laws is endless.  Recently, the law ministry ordered repealing many redundant acts dating back to the 19th century. If this is the case then I guess it will be a sorry state of affairs in India.  All laws should be re-looked once in a couple of years and no government should review the laws less than twice in its 5-year term.  But this is after the laws are simplified with no grey areas - it should be either black or white.

Telecom:
It's been a good two and a half years since I graduated as a Telecom engineer but the love refuses to die down.  So it is difficult to see the sector in doldrums. High debt compels telecom operators to cut down on expansion (and it is a pain for the banks as well), spectrum scarcity shoots prices up in all the auctions and creates problems for the customers as well. The government can auction enough spectrum so that the government can fill its coffers and telecom operators can freely expand to the hinterlands with the savings that are made in the auctions. To ensure the latter, conditions can be laid when spectrum is awarded. From my personal experience, not having a net connection these days is a pain in the wrong place. If India has to grow and beat countries like China and USA, last mile connectivity is a must. But sadly it is our inefficient, state-run behemoth BSNL that has to do this single handedly. The best way to bring reforms in the sector would be to give BSNL a corporate-like makeover. This will make BSNL an acquirer from the target. And in the interest of the sector not more than 6 players including the state run entity should be allowed. This will kill cartelization yet keep rates low. On the other hand, manufacturers like Micromax and Lava should be given support to buy marquee brands like Sony if they are planning to spin-off their mobile division as per an article in Reuters in mid January. This will help manufacturing here, increase jobs and save on forex outflow due to import of handsets. But for this lending rules will have to be changed as banks cannot lend beyond a certain percentage to one sector.

Banking & Finance:
The best reform that I can state from my personal experience in this sector is the introduction of the RuPay cards. I was pleasantly surprised when I could use my local (Mumbai) bank's ATM card to pay at an outlet in Hyderabad. This was not earlier possible and helps a long way in financial inclusion. If a bank which has 50 odd branches across Maharashtra and Goa and predominantly in Mumbai can give me alerts and it is possible that I can use its ATM card anywhere in the country then think about the potential if a system developed where all the major cooperative banks serving the rural areas are connected and account holders given RuPay debit cards for easy use, the amount of money that will come into the system will be enormous as farmers have huge amounts of tax free income. It will also benefit the larger banks as they will not have to open loss-making branches in the rural areas leaving them to focus on high margin urban markets. But this will require changes in the Banking Regulatory Acts to ensure there is uniform implementation across the sector. Hope the PMJDY addresses these issues.

Defence:
Until foreign companies are not allowed majority ownership of Indian operations, they will not invest in India. And more than outsourcing of manufacturing, India needs technology to be able to give a fitting reply to Pakistan and China at one go in case the 'all-weather' friends decide to launch an assault together. For this we will have to open the gates by raising the FDI and allowing the private sector to build and supply equipment to the armed forces. The private sector is known to be efficient and honour its commitment on delivery time if the government does not keep throwing spanners in the implementation of the original contract.

These are some of the sectors which require a complete overhaul of rules and it is a great opportunity for the Narendra Modi government to wipe the slate clean and start afresh so that India can truly achieve a dominant status by the years that the rating agencies have expressed as opinions. We need to have clear rules if we want India to produce its own Alibaba, or maybe bigger.

Monday, October 6, 2014

"Swacch Bharat" to "Jimmedaar Pragatisheel Bharat"

Since the time NaMo has taken over as the PM each and every move has captured headlines not only in India but across the globe.  Be it the camaraderie with Shinzo Abe, the hard talk on border issue with China, keeping aside differences with USA over non-issue of visa in 2005 or simply wooing the neighbours, he has charmed all.  While there have been announcements - both big and small - there are some issues which have not found mention.

Relaxing UGC Rules:
A teacher shapes students for the future.  During a casual chat with one of my favourites, Geeta mam, I came across this peculiar problem faced by teachers.  An excellent professor who has now retired and  coaches her kids cannot enroll for part-time teaching at colleges except on contract basis because of certain rules.  This is because UGC rules state that only when absolutely necessary can colleges hire part-time teachers and that too with other restrictions. While post-grad colleges have the facility of part-time faculty, the same benefit is not extended to under-grad courses.  Though I am not too sure how feasible it would be to tweak the rules right away, there can surely be an arrangement where teachers who have vast knowledge but for some reasons have to quit full-time teaching can teach part-time as UGC faculty.  Surely there are many teachers out there with similar circumstances and their expertise can be used to teach the Gen Next.  It can be started on a pilot basis in certain areas to see if can be implemented on a pan-India basis.

e-Voting:
Next comes the issue of voting.  Since I became eligible, I have voted thrice.  I can proudly say that I was the first person at my voting booth (at 7am sharp on all 3 occasions), sometimes even before the officials have set their EVMs.  But unfortunately, I could not vote for the Lok Sabha Elections of 2014 and in all likelihood will not be able to vote for the Assembly elections on 15 October.  My vote may not affect the results on an individual level but if there are at least 5000 people like me in my constituency it will make a difference as can be seen from the last Haryana Assembly elections where the winning margin was approximately the same number in 21 constituencies.  There are talks about allowing citizens to vote electronically but nothing has taken shape.  This facility if implemented would be of immense use to working professionals and students studying outside their home.  If SEBI can implement e-voting for company resolutions (it is quite secure which I can tell from my personal experience), the government can surely implement this for its citizens who are unable to vote.

Sports:
Another area that requires immediate attention is sports.  If I look at the recent performance, then the Indian scorecard looks like this- 
London Olympics - Failed to bag a Gold, 2 Silvers and 6 Bronzes and was 55th in the tally
Commonwealth Games 2014 - 15 Golds, 30 Silvers and 19 Bronzes securing the 5th place in the tally
Asian Games 2014 - 11 Golds, 9 Silvers and 37 Bronzes for the 8th place in the tally.

In Asian Games even North Korea won more silvers than us taking them ahead of India.  This when the population is 24.9 million against a population of 1.25 billion of India as per 2013 estimates.  Such a shame for us that we cannot have a noticeable place in sports.

When Abhinav Bindra wins an individual Gold it makes headlines.  Surely its a great moment but why can't we have many more Golds.  There is no dearth of talent but it is the facilities that has not allowed us to excel in sports.  And how can we? We hardly encourage sports other than cricket with a late but much needed ₹ 400 crore allocation for sports development in J&K, Manipur as well as training.  

But what plagues our sports institutes is the people who head them. Politicians are the kings of these sporting bodies with even NaMo being the Gujarat Cricket Association chief before becoming PM.  Praful Patel heads football and given his reputation of pushing Air India into losses I guess Football is going for a toss.  Similarly Chess uses to be controlled by Srini who now heads BCCI and ICC directly or via proxy.  We all know his alleged misdeeds.  There are many others which can be visited at http://goo.gl/dR2GZ5.  Even the Honorable Supreme Court, in Dec. 2013, observed that Businessmen and politicians are ruining sports and for the second time (the first being the ordinance issue), RaGa made sense when he suggested that politicians should stay out of sports.  But politicians, not known to give up their fiefdoms, refuted this right away with Praful Patel openly opposing his coalition partner.  Such a pity for Indian sports!! Rules need to be changed but the change makers themselves sit atop these bodies.

Recycling:

 India produces a huge amount of e-waste annually.  Rough estimates show that everyday 8500 mobiles, 3000 PCs and 5500 TVs are thrown away.  This amounts to a total of 2.7 million tonnes of waste every year.  But our recycling capacity as per the government website shows that we are well short of recycling the entire waste.  12 States together have a capacity of 296388 metric tonnes per annum and roughly 60% concentrated in states of Rajasthan, Tamil Nadu and Uttar Pradesh.  The stark difference shows us what we need to do.  One solution could be to encourage SEZ specially meant for recycling similar on the lines of SEZ for semiconductors in the recent budget.  We could also encourage the use of refurbished phones in India.  If Flipkart sends a scratched handset surely there was something wrong.  Such handsets can be sold in the refurbished market.  Also phones which have minor defects can be repaired and sold as refurbished.  The Nokia plant in Chennai which has an uncertain fate can be used for the same with the plant being sold off to some player who gets some benefits and a middle path is worked out with Nokia regarding outstanding dues.  And it is not impossible.  It can help the government to fulfill its ambitious plans of providing smartphones to 25 million households ( http://goo.gl/PjjYMR) as well as the various freebies that state governments promise once voted to power.  The Samajwadi distributed free laptops, Amma with her TVs and now the Shiv Sena promising tablets we can surely provide refurbished devices to rural areas instead of those cheap, low quality knock-offs.  

Revamping iconic brands:

For an MBA graduate like me with Finance as the majors, I would say it is prudent to shut down loss making units.  And the government is right in ordering the closure of 6 units while reviving 5 others.  The government knows more than I do so I would not doubt its judgement.  But instead of shutting it down and incurring ₹ 1000 crores towards VRS, the companies can be sold off on an as-is where-is basis and have an agreement with the new owners to phase out the workers gradually.  The value for such companies may not be significant but there are definitely some buyers out in the market for companies like HMT Watches which have a legacy and also the Braille watch in its portfolio amongst others.  There is a sense of pride in these brands as they were amongst the first Indian brands and people are ready to buy them if they are upgraded to be in sync with contemporary watches.  Another company, Hindustan Motors, which has suspended operations should be privatized.  The Ambassador will get a new look yet save its name.

Though I am not too sure how the above issues can be addressed, I trust NaMo to use his skills to get things done.  Swacch Bharat has been in the works for many years under successive governments but none could get the hype that he created.  Though he can only urge to keep our country clean it is our responsibility to implement it.  Similarly it is our duty to ensure responsible growth and hopefully we achieve it sooner than later.


Tuesday, May 27, 2014

A Wish-List for PM Narendra Damodardas Modi

While the country was celebrating with laddoos and crackers on May 16 to celebrate the clear victory to NaMo, the man himself started planning his tasks even before the swearing-in took place.  Secretaries were asked to make presentations not on what was right and what should be done but on what went wrong.  After all a win may teach a line but a failure will teach you a book.  So today after NaMo is the 15th PM of India, I have my own little wish list for him.  And some of these wishes may be small in front of the bigger infrastructure and power needs but none the less I feel that it is important.

First is the critical issue of defence.  Though reports suggest at the time of writing that Arun Jaitley will be given the additional charge of defence apart from finance, I believe that this portfolio should be handled by Modi himself at least for the first year or so.  And the reason for this is not his ability to give a fitting reply to outside attacks (obviously that is a given thing) but his administration skills.  Each year we have a budget of more than Rs. 2 trillion and rising and we have invested in upgrading the Army and to some extent the Air Force.  But the Navy is seriously neglected.  And the recent fire mishaps on many of our submarines are a proof of it.  To ensure that development of Navy as well as Air Force is fast tracked with R&D given top priority there is none better than the man himself.   It was a pity that DK Joshi resigned for no fault of his own.

My second concern is about the state of highways.  And I'm talking from my experience in Mumbai.  It is famously said that in Mumbai there are "roads in potholes."  Though highways need to be built at a very fast pace to connect the whole of the country and to fulfil Vajpayee's dream of the Golden Quadrilateral, but the quality of roads needs to be maintained.  Gujarat and Rajasthan have fantastic highways but the same cannot be said about Mumbai.  Though it is the prerogative of the state government to a great extent, but for a city like Mumbai the Centre should also ensure roads like that in Gujarat.  But with the name of Nitin Gadkari doing the rounds for Highways, this concern seems to be taken care of.

Then comes the issue of the telecom sector.  Being a telecom enthusiast even today after completely disconnecting from the sector since I completed my graduation, my heart pains to see the sector in doldrums.  There are no clear policy rules, the government entities (BSNL and MTNL) are running into losses thereby hindering the chances of communication to the last mile and the ITI being on ventilator support.  The government can work out solutions to create a telecom behemoth by merging BSNL and MTNL, encourage ITI to take up more R&D to improve itself and provide domestically produced telecom equipment which also secures our country.  A small example is the case of SIM cards which are imported and not domestically manufactured posing a huge security threat.

Fourth is the concern about teachers.  A report in Mint has already said that though the percentage of literates has gone up, but the quality of education has gone down.  And the reason for that is government schools which provide education irrespective of religion have very very few good teachers left.  All the good ones are poached by private schools which charge a bomb from kids and as a result only the top 5% of the people can send their children to really good schools.  This is a time bomb ticking and schools have now become a recession proof business.  There will be no talent left in the country.  So instead of populist schemes, the pay of government teachers should be increased so that more and more teachers opt for government schools and also training institutes which improve the quality of teaching.  The issue of establishing top universities is something that has been said about by many.

Next is the issue of IPR.  And it not only includes promoting development of R&D for innovations but also marketing them and making money.  This will help not only the people of India but people from poor African nations as well.  Indians are known to have the best minds but unfortunately we have not used them up to the mark.  This should change.

And last is the revival of Hindustan Motors' manufactured Ambassador car.  Today newspaper reports said that the last plant in West Bengal has shut down thereby indicating that days are almost over.  This may be prudent financially but a car which only last year won the toughest taxi in the world does not deserve this treatment.  The Amby is one car the Indians are proud of and it is more of a matter of pride to popularise it by making changes to suit the current needs yet having its original DNA.  And who better than Dilip Chhabaria to turn it around.  If he believes in turning around the car then it is absolutely possible.

The list for NaMo is endless but these are a few things that I found had not got much limelight amongst the power, infrastructure, CAD and inflation news.  I know expectations are high and Modi will definitely fulfil all of them.  Jai Hind!! 

Saturday, May 17, 2014

Elections 2014 - A humorous outlook!!

Finally the most covered election in all forms of media comes to an end and the people of India have given Narendra Damodardas Modi a clear majority to take the country forward.  A simple chaiwala will now lead the country with the hope of a billion Indians that he will bring about development.  And while the country reached new lows in terms of political speeches with words like ‘neech’, ‘maa-bete ki sarkar’, ‘zeher ki kheti’ and other highly dramatic words being used frequently for a thunderous applause from the audience, once the election results were out each and every person on social media tried to bring out their humorous best.  To clear the serious and tense atmosphere a collection of tweets which sadly mocked the candidates and parties but brought a smile on the faces of Twitteratis and Facebook-wallahs and the whatsapp warriors. 
It’s said “Ladies first” so my first tweet would start with one of the most controversial figures in Bollywood (show biz would have been better), Rakhi Sawant.
At one point when Rakhi Sawant had only 15 votes, someone on Twitter commented:
                “ Rakhi Sawant got 15 votes!! 1 by herself, 1 by Jesus, 1
                   by Mika Singh and maybe 1 by Kamal R Khan.:P What
                   about the rest 11? Swayamwar ppl? “ 


Given Modi’s Gujarati background and his work-style here are other few compilations: 
                Dear Modiji, this is a humble request from a humble
                 Indian that..
                In your quest and eagerness to replicate the Gujarat
                model, please do not make India a dry nation..
                I cannot drive to neighbouring countries to drink 

Even the greatest of greats, Rajnikant was trolled by NaMo.
                “Darwaza khola to Saap nikla
                Wah wah
                Darwaza khola to Saap nikla
                Ye Narendra Modi to Rajnikant ka bhi baap nikla” 

After seeing Modi become PM, Pakistan govt to Geo TV: 
                 “We don’t want Kashmir now.. But we will not give
                  Karachi.” 

                “Modi opened his innings like Sachin Tendulkar, carried
                  it on like Virat Kohli and Finished it like MS Dhoni” 

As if jokes about men having had enough about their wives, the fairer sex found mention with Modi and elections.
                “NaMo victory proved that a man can only succeed 
                 when his mother is near and wife away”

 Manmohan has been the butt of all jokes and he might have relieved a sigh of relief now that he no longer heads a troubled coalition (though he considers it an achievement to keep the coalition intact)
                “Today at 2pm Manmohan Singh begins work on his
                  Autobiography titled “5 mistakes of my life” – 2G, 3G,
                  Sonia G, Rahul G and Rahul ke jija-G.”

Now for some Rahul Gandhi and Congress bashing: 
                “Breaking News: Rahul Gandhi started early
                 preparation for 2019 polls.  Slogan is ready leher ke
                 baad boonda boondi, ab ki baar Rahul Gandhi” 

BREAKING NEWS:
                “Congress files and FIR against BJP for Gang Rape”

Rahul Gandhi had made Women empowerment and RTI his answers to any damn question to which Bhavin (@Compucaholic) on Twitter said: 
                “If Smriti Irani wins in Amethi, it is only because of
                  Rahul Gandhi – women empowerment” 

Sir Ravindra Jadeja had this to tweet about Rahul Gandhi’s adolescence:
                Rahul Gandhi is praying for rain so that he can win by
                  Duckworth Lewis System 

And to end with the list on Congress, @andy_jadeja effectively turned BJP’s slogan to indicate Congress’ end:
                “Congress’ slogan after #ElectionResults : Abki baar,
                  Antim Sanskaar! #Results2014.” 

The popularity of Whatsapp which was acquired for an astronomical $19bn by Facebook can be gauged from this message:
                Good news for Congress for winning under 50 seats –
                  they can now make a Whatsapp group without leaving
                  any MP out. And there's space for AAP too ” 

And the man (resembles a lot like Kancha of the new Agneepath) who turns any event into a hilarious tweet, Ramesh Srivats, had a few to offer as well.

                “Current Situation : BJP+ : 292, Congress+ : 76..
                  Congress needs 12 to avoid follow-on” 

                “Rahul, Modi, all same yaar. First thing they did today
                  was run to their mummy.” 

How can cricket be far behind in his tweets:
                “Good thing no IPL match today. Would have definitely
                  been washed out by this Modi wave."

The famous Meira Kumar, former Speaker of Lok Sabha and famous for her Baith jaiye remarks was not spared when she was routed.             
                "Tragic. She told everyone else to take their seats, but 
                  lost her own RT @firstpostin Lok Sabha Speaker Meira
                 Kumar loses from Sasaram, Bihar"

How can AAP be far behind:
               Delhi Daredevils Good on paper, Lousy on field
                Articulate captain, Chaos tactics Best team in Delhi.
                Worst team in India. Wait. They're AAP.”
While Gujaratis have been the butt of many jokes this election season, one to end with a joke on Sardars.. Or should I say AAP.
                 "Mystery of AAP's win of 4 seats in Punjab solved..
                  Actually AAP ka button dekh ke sardaro ne daba diya..
                 "socha khud PM banenge"..."  

And finally to the youth which played a big role in this election, by @shivika_gupta26 :
                
                  "For the first time ever, the youth of the country is
                   excited about 16th may instead of 14th feb.” 

And as I compile this, the next PM of India, Narendra Modi, would be singing the remix of “Saala main to Sahab ban gaya” with his own version..   
                 sala main to PM ban gaya, ye victory meri dekho, ye
                  history meri dekho, jaise model mere Gujarat ka”..

Actually it’s what India Today conceptualised in the form of a
video So Sorry..  

Jokes apart, there are many expectations from Modi given the development he has talked about and his immediate challenge would be to restore growth and confidence in the story of India. Here’s wishing him tonnes of luck for the 60 months to come. Adios!!

Sunday, February 16, 2014

Improving India - Holistically.

After a great start to the millennium for the country with the GDP even touching 9% in the latter part of the first decade, it has been only one way for India since then – downhill.  Be it the slowing economy, rising fiscal deficits, border tensions with neighbours and the humungous scams that surfaced has put India on the back foot again.  Some of the problems that India faces today were highlighted in an earlier blog (http://bit.ly/NVd2NP) and it received some constructive criticism as well that I can crib about the current condition but not suggest improvements that can develop the country.  It did not take much time to find solutions to some of the problems.  And if a no-brainer like me can think of it, the rulers in the capital (any party that comes to power) are much more intelligent and diplomatic to develop India.

First - coming to the problem of economic turmoil in the country.  The finances of the country are in pretty bad shape.  CAD is rising and has already hit 95% of the budgeted CAD in the first 9 months of the year.  Major reasons are populist schemes like subsidizing kerosene, Food Security Bill which will be a pain for the next government no matter which party comes into power.  Instead of going for such populist schemes the government can manage their supply chains better and avoid leakages.  For example, India has a bumper harvest in almost all seasons of rice and wheat which make up the staple diet of the people.  But the problem is managing them.  This leads to humungous wastage which can be avoided if there are adequate storage facilities.  FDI in FCI would be of great help.  Food Corporation of India (FCI) is one company which can be managed to end the food woes of India.

Next is defence.  No country, especially countries like India which are surrounded by countries like Pakistan on one side and China on the other, can afford to rely on imported weapons to give a fitting reply.  India, even though says that it has started an indigenization drive, imports as much as 55% of the parts used to build missiles like Brahmos.  R&D must be encouraged and investments must be made to make sure that in the coming decade we supply technology required to make defence weapons.

If the foundation is not strong, the building is bound to crumble.  Our education sector is like that base.  If we do not provide quality education, the future is bound to be doomed.  A recent report in the Mint has described India as a country where the percentage of people receiving education has increased but the quality of education has decreased substantially.  Why can’t the government invest in schools instead of bailing out, say Air India or financially supporting banks which are loss making.  A country’s natural resources or PSU undertakings are considered to be a nation’s wealth and need to be run effectively to support the entire industry in times of crisis but if good money is constantly being put to bail out bad money it is not a wise decision.  Some divestment is appropriate.  It is a shame that we do not have a single world class university which we can call to stand out in the top-10.

Inclusive banking is one thing that India still has not been able to achieve.  In spite of an initiative by RBI to open a certain amount of branches to encourage people to avail banking services, it has not achieved its aim.  More than 50% rural bank accounts are dormant.  Also none of the Indian banks feature in the world’s largest banks.  To ensure India has a considerable number of banks in the world map, consolidation of nationalised banks is important.  This will improve both efficiency and ranking of Indian banks.  Having 27 nationalized banks and over 3000 private and cooperative banks is way too fragmented for a country like India.

Another major problem for India is the telecom industry.  There are no set rules and it seems that rules are framed for just one group (rather 2 after the split).  Rules have to be such that there is healthy competition.  Another problem is the functioning of MTNL and BSNL.  It makes very little sense to have one operator in 2 circles while the remaining telecom circles have another entity.  Schemes like VRS and reshuffling should enable merger of the two entities.  While private telecom players have moved to third party managed infrastructure which enables them to optimise their services, BSNL is still stuck with old methods.  One of the major reasons for BSNL’s failure is its inability to award tenders for expansion.  Since it is not efficiently managed, fixed number of lines is laid beyond which tenders have to be floated.  A PSU telecom company can take the country to the next level of telecom revolution but in India, BSNL is trying to survive its evolution.  Even the SIM cards used in phones cannot be produced in India which can pose a huge security threat in the future.  Such is the shoddy infrastructure for a sector I love and belong to.

These are just some of the things that are in the planning but not implemented by subsequent governments.  There is an Indian version about the ants and grasshoppers story (http://goo.gl/xLqG9y).  If the government does not plan well it is not far that the story will turn into reality.  The sardars and rulers in Delhi need to do something before it is too late.



Saturday, January 11, 2014

An Open Letter to PM Dr. Manmohan Singh!!

Dear Mr. PM,

First, I am very sorry for being a week late in giving my reactions on your speech last week.  But if you as the PM of India could make a speech after a near 5 year delay, I'm way better.  But I would not compare myself with you and so I apologise for the delay.  I waited eagerly for your speech to hear something new and different given the drubbing in 4 states (in one you had to eat the humble pie) and the Lok Sabha elections are just months away.  But alas. Forget the usual self, you gave yourself clean chit in the multi billion dollar scams.  What a shame!

You started with a positive outlook for the Indian economy and the country as a whole and reasoning that the initiatives taken earlier will now bear fruit.  Let me first remind you that you had famously said in 2009 that the inflation would be brought down in 100 days if your government came into power.  That promise still remains unfulfilled and you show us dreams of a better future.  Moving further, you outlined your government's contribution for the betterment of rural areas by introducing schemes like the MNREGA and increase in wages for rural India and a record output.  But despite such huge output, the cost keeps increasing every year and the 'mango' people literally cry when onions skyrocket and the Agriculture Minister does nothing except filling his coffers. Even though you say that the per capita income has increased and there has been a drastic reduction in BPL people, the real picture is a huge deviation from the numbers.  And when Dr. Montek Singh announces ₹ 27-₹ 32 per day as the poverty level, it is bound to make your picture rosy.  And while poverty has reduced, there is huge disparity.  Some people have so much money that they can free their son in the hit and run case while others don't get meals even once a day.  

The 9% growth rate you talked about was the after-effect of the policies of the previous government.  UPA-1s policies were disastrous and are reflected during the ruling of UPA-2 (For reference http://bit.ly/1aNZR5L and http://bit.ly/1gpXlXe). By your own admission NDA's 6 years had more kms of highways built than your 9 year rule. The only good part of the speech came when you highlighted the Sarva Shikshan Abhiyaan giving importance to education of the girl child.  And then came the confession of not creating enough jobs in manufacturing - one of the many reasons why India cannot even dream of matching China.

As if this was not enough came a blunder from a renowned economist - that high inflation is a concern but it has been offset by the increase in wages faster than inflation.  Forget an economist, even my sister who hardly understands finance or economics would not dare to make such a statement.  It seems all your intellect has gone in holding onto the PM's chair as you yourself consider this as an achievement.  The Food Security Bill which is considered your government's pet project has worsened the finances of the country and it will be a painful task for the next government irrespective of the party to repair it.  While your statements about implementing policies, faith in people are not new, they are too late as elections are near and you have sensed the people's mood.  People want real development and not subsidies, merit based systems and not quota systems which you have misread.

Now other famed statements which you made.  I may sound like supporting Narendra Modi but as the PM calling the PM nominee of the opposition who enjoys the support of India Inc. and is high in public ratings is a political sin.  You have disrespected the people's verdict and is the worst political mistake according to me. If being remote controlled by Sonia Gandhi was not enough, you went ahead and praised Rahul Gandhi and called him excellent to be the next PM.  I would like to ask you what has he done to prove himself.  Eating at farmer's home or citing Jupiter's escape velocity(please ask ISRO to issue a statement explaining this as most could not understand) for upliftment of poor does not make him excellent.  Secretly even you would accept this.

The 9 year UPA rule had many opportunities to take India on the development path.  But it reversed the cycle.  There has been record agricultural output but no proper storage facilities.  Airlines is now Naresh Goyal and Etihad's monopoly.  Oil and Gas is Reliance's monopoly and no action is taken when output drops to historical lows.  Environment for business is gloomy with honest businessmen like KM Birla named in scams and investors are scared with retrospective taxes and red tape.  CAD is ballooning and investments dwindling.  And then you have the scams which I took 2 minutes just to confirm the amount of 0's in the figure released.  And they keep getting bigger.  Lalu Prasad was convicted for a fodder scam which was valued at ₹ 900 crore by the CBI.  But then came the 2G scam, Coalgate, CWG and the list is endless.  Yet nothing is done and you say that people have forgiven you by electing you again in 2009.  It seems that an intelligent octogenarian has lost all his intellect.

It is said that Sardars are the first people to die for the country.  But you have been just the opposite.  You have been a mute sardar in this circus called UPA.  Forget asardar, you don't even come near to being "a sardar".  I don't like parties but love individuals, including you, for their intellect.  But now you compel me to drop you from the list.  By announcing the retirement, you were again late by 5 years and as they say it is 'too little, too late'.  To give you some credit I'd say "its never to late to do something good.' Hope the remaining 4 months you undo some damage done.

With a painful heart,
India's mango person.