Substantiating the growth steam of India- II

[Another flow of thoughts, influenced by the articles of Mr Mark Dutz and Mr Kala Seetharam Sridhar…]

The Indian economy today comprises two distinct groups of enterprises; the first leading enterprises are at par with the most advanced parts of world whereas the second group, the one at the lower end of the scale, is far behind the first group. The gap between the two is extremely large, though the second group provides employment to 90% of the workforce of India. But in a sense it can prove good to economy as we have a massive area to improve on and if all the opportunities are properly tapped, no one can hinder the transition of the second group into the first one. According to Economist, India’s fortune lies as much on the power of diffusion and absorption as on its power of invention. So, in order to promote the innovation and technological advancements across the country, many a things need to happen.

-Encouragement of stronger competition among the enterprises. This has already being seen in 1991, when the huge number of private sector investments in R&D went into sectors that were most open to competition
-Introduction of more market relevant skills in higher education.
-The programs offered by a large number of central public institutions for the creation of enterprise and absorbing knowledge are often overlapping. Different ministries run similar programs in any area. Also a third party monitoring and evaluation with international benchmarking would make clear benefits.

-Only 22% of Indian enterprises are internationally quality certified (such as ISO or sector specific certifications). This is only half the percentage of China. Awareness of the benefits of such certifications should be proactively imparted.

-Around 2% of Indians live abroad and they earn almost two third of India’s GDP. These talents should be attracted to their own country. One way to encourage top scientists and research scholars to India is to develop a national research and education network for high end research institution and other applications, similar to Internet2 in US or DANTE in Europe.

-Innovation system and process must be permeated through common people, especially relevant to poor people, so that entrepreneurial qualities can be developed at grass root level as a cluster of talent is still untapped at the bottom of the pyramid.

One more important trend being seen these days in the country is the changing practices in government, which is contributing to the economy’s growth.
For instance municipal bodies are the primary providers of the key urban services like water supply, sewerage, sanitation/solid waste management and city wide roads. To raise funds, some of the urban local government are adopting innovative ideas in their management practices. Ahmedabad Municipal Corporation became the first local body in the country in 1996 to tap the capital market to raise funds through the issue of bonds. Indore has come up with a 50:50 program in which citizens of a jurisdiction get their roads revamped from a private contractor and the municipal corporation contributes to the remaining 50% of the bill. Many cities has privatized their mass transport systems.
Last but not the least, the Right to Information act, which was passed in parliament in 2005, is indeed a very powerful weapon in the hands of a common man. While RTI can’t be used to solve any problem but it definitely provides a mean to seek more information about the problem. It can be used to get the knowledge of government functioning and service delivery which have implications for the public. RTI cat had thrown up instances of plain chicanery in governance. For example bureaucrats in Punjab are reported to have misappropriated the funds collected for the victims of Kargil war, Orissa Cyclone and Gujrat earthquake....

I know these are very positive pictures of the system. Only few cities are like Ahmedabad, Indore or Surat in India. Only a small portion of the population is using RTI appropriately. But the beau idéal can be achieved if every concerned body learn from each other. No gain in cribbing about the dark picture of the country. Just look at the good one, emulate them and try and create a paragon. There is a lot at stake for this nation. India has enormous untapped potential, she just needs to wake up and start working towards it…

Substantiating the growth steam of India- I

Continuing with my previous post Diversity, I would discuss here the diversity of India in many fields like economy, income, living standard and growth.
At the time when reporters are raving about India’s rapid economic growth, the billion dollar mergers and acquisitions, the every year of accelerating average $12 billion Foreign Portfolio inflows, and the new heights that Sensex scales everyday, I wonder about the another face of India; Is the cursory examination of these much hyped about growth determinants enough, How about the slums of the cities, the villages and sub urban areas of India where a large population does not have even a day’s meal to eat, how about the increasing rate of farmer suicide or the Hafta which small shopkeepers and businessmen have to pay to the gangsters…..

I’ll evince my views on few of these points:
[These points are collected from different sources (newspapers, expert’s perspectives etc) combined with my own views]

Firstly, the most basic issues; the key areas like irrigation, agriculture, education and healthcare

· Instead of more than doubling the spending by Government on these areas, these are still at a very unsound stage. The large portion of two third of the population is still dependent on the mercy of the monsoon. Despite India being the top in Asia and third in world in terms of intangible assets; like intellectual properties and talent, many rural people are not able to access and tap the technological advancements. If the nation has to combat effectively with poverty, the solution is not the subsidies and handouts but rather the execution of a concerted plan to improve the productivity, profitability and sustainability of the small farmers. Several studies have proved that GDP growth originating from agriculture is at least twice as productive in reducing poverty as from non-agricultural industries.

· The state of infrastructure –roads, power, housing and office space, drinking water and other municipal services- despite the 40%+ growth in tax revenues are still dismal.

· Some of the state governments (like UP) are coming up with schemes like mid day food, providing uniforms, books, scholarships etc to fillip the level of primary education, but are these schemes actually serving the purpose. First of all a large part of the funds allocated flies out at it changes hand from one bureaucrat to another. Secondly, there are families in villages where the members are dying out of poverty. Their children join primary schools just to avail the facilities. Now even if these children complete their primary studies, they don’t have essential social conditions, enough money or facility to continue with their education.

· Not all farmers are equipped with modern techniques of farming. Moreover, because of intermediaries the farmers get only a paltry amount of the price of their production; resulting in the poor hinterland residents.

· In some areas like UP the cash crop like sugarcane is almost collapsing. The slow growth rate of agriculture combine with high growth of population has led to increasing landlessness, joblessness and pauperisation.

So, what could be the solution? Some of them could be as under:

-Check on bureaucracy, government should make sure that the allocated funds are going in proper hands.

-Introduction of vocational courses. The short term training programs will enable the less skilled people to be employable. The institutions like ITIs should be enlarged in number and should be improved on quality.

-Introduction of training programs/workshops for farmers, to make them aware of modern techniques and also equipped them with the knowledge of the latest market conditions and best possible moves.

-Though the emergence of organised retail is hampering the presence of local kirana stores, it is improving the condition of farmers in the areas where the stores are getting set up (like in Maharashtra). They provide farmers the best quality seeds, farming techniques, and eliminating the role of intermediaries.

-Government is also setting up some special marketplace for the farmers where they can directly sell their products. This kind of project is already being exercised in MP; it’s expansion in other parts of India can be very useful for the economy.

-Focus on management of infrastructure; this will create employment also. Government has allocated Rs 16680 crore under the seventh phase of NHDP program. It should come up with such projects in other infrastructure facilities also.

-Quality primary education should be provided to the poor people by offering more attractive packages to the teachers, making the teaching process more stringent. In Kerala, the primary government teachers were provided with lucrative offers, which resulted in better teaching effort and came up with Kerala as the state with highest literacy.

-Instead of allocating massive funds and scholarship, government can tie up with some private schools and provide vouchers to the poor children. These children can use these vouchers as the fees and thus can get quality education in competitive private schools.

There are several ways to improve the system, and as being acclaimed worldwide, there is no dearth of brains in India. The only thing necessary is the proper execution of the ideas coming out of these brains. I hope that the India 2020 dream of our esteemed former president and the great scientist Mr Abdul Kalam will get materialised and the whole India will be able to taste the fruit of growth which at present is available only to a part of the nation….

Diversity...

The flight expedition from Chennai to New Delhi was though usual, but full of ebullience in me, partly because I was returning home after 4 long months (why long? The second reason…) and partly because of completion of the rigorous two first quarters of the most sought after “MBA” degree.
So anyway, 2 beautiful creatures of God were my co passengers, a very pretty mother with an equally cute and smart little son. I was reading The Google Story (One of the initial trials of the transition in my interest from fiction to non fiction management books…the must for all MBAAAs), but couldn’t refrain my tympanic membrane to flutter with the sound of their conversation. Then I closed the book n tried sleeping, because of only 2 hours of the sleep last night [It’s my birthday that day n after the submission of final report of my last project at 10 at night, I was performing my duties to spend time with friends, cut the cake, treat them and attending the phone calls(I am one of the fortunate people of this world who have people around them to care for) ………the whole procedure lasted at 4 in the morning and 7:30 I had to leave IIT for airport] I started dozing off and the 2.5 hours passed cosily.
There is no much difference in Delhi and Chennai as being metro cities you can find all types of cultures and attitude in both the cities. From airport I went to my sis’s place….. on the way I could feel the difference between the type of people, the typical north Indians(in Delhi) and south Indians(in Chennai). Two days in Delhi n NCR, and finally the time came when I caught the train for my home town (a typical small north Indian city of UP).
In train I again resumed the transformation process of my interest, It was an overnight journey, I got in at 6 in the evening and was suppose to reach at my destination at 9 in the morning. In the morning from the window North Railway tagged lines were clearly visible, I enjoyed thinking about the diversity of India, two altogether different places, as if two different world. Just 3 stations before my hometown, the train suddenly stopped… the single line problem, because of which only one train at a time can got through that line, so this time some express train was passing by and to give it line, this train has to be stopped. I could hear people talking about politics, studies, prices….but they were all unaware of subprime crisis, they didn’t know about P&G’s strategy to enter in Indian market, they didn’t know about organized retail which can hamper the business of neighbourhood Kirana storekeepers…. In this journey, I got to see 2 faces of India.
The train got late…I arrived at 12:30. From the station straight to home. In this town mostly government servants, bank officers, teachers, professors, lawyers, farmers and businessmen stay. No CEOs, IITians, consultants etc….(Those who belong to corporate world, left the place like me n wonder in the same way when come here..... )Anyway, reached home, had the delicious food n slept off. In the evening I got up. The maid was talking about the new dress which my mom gave to her few days back. She was very happy, unperturbed by subprime crisis, cap on ECBs, FII and budget deficit of India…or even marks, grades, looks, attitude, BF, sophistication bug………………..This is also another face of India!!!

I want to see you, touch u, be with u........I want to talk to u, argue with u..where were u when everything was going wrong, ask you.......... was it really u who couldn't see it and wiped off my tears, went out of the way and blessed me with all the contentment.
I just want to tell u that I luv you, m not selfish....I belong to you n you belong to me
I care for u, though you don't need it, may be it's like a drop in the huge endless ocean, but it's true.
Yes, sometimes I think only 'bout me, but u too never forget to teach me hard lessons..

A teacher, a torch bearer of my life, a true companion or a guardian, u always played the appropriate roles mightly. U make me wonder how do u put structure in all the happenings..
I wanna know your contour, your dimention.. in space n time. r u the same form which my mind conceive or something beyond my imagination....
My contemplation says u r Purna, am I heading towards you? am I going in the right direction..from shunya to purna?
I m not a pure soul....very materialistic, selfish, schemer, purturbed mortal being...Can I make it here?
U can see I have to interrogate you....
U can see how daring I m, to question u........ the Almighty!!