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Showing posts with label India. Show all posts
Showing posts with label India. Show all posts

Thursday, January 26, 2017

India ranks sixth on eight great powers in 2017: magazine 01-27






India is ranked at the sixth spot, behind China and Japan, in a list of eight great powers for the year 2017 by a leading American foreign policy magazine which is topped by the US. The list is topped by the US, whereas Chin and Japan are at tie for being on the second spot. Russia (fourth) and Germany (fifth) are the other two countries ahead of India. Iran is ranked seventh and Israel is on the eighth spot. "Like Japan, India is often overlooked in lists of the world's great powers, but it occupies a rare and enviable position on the world stage," The American Interest magazine said in its latest annual report of eight great powers.

India is the world's largest democracy, home to the second-largest English-speaking population in the world and boasting a diversified and rapidly growing economy, it said. On the geopolitical front, India has many suitors: China, Japan and the United States are all seeking to incorporate India into their preferred Asian security architecture, while the EU and Russia court New Delhi for lucrative trade and defence agreements, it noted. "Under the leadership of Prime Minister Narendra Modi, India has deftly steered its way among these competing powers while seeking to unleash its potential with modernising economic reforms," it said.

According to the magazine, despite internal problems in the aftermath of demonetisation, and the Pakistan scare, India found its footing elsewhere in 2016. "Long hesitant to pick sides, New Delhi took several clear steps this year to deter a rising and aggressive China, announcing that it would fast-track its defence infrastructure projects in the Indian Ocean, amid fears that China was trying to encircle India with a 'string of pearls'," it said.

"Likewise, Modi explored new naval cooperation with both the US and Japan, and signed a host of defence deals with Russia, France and Israel to modernise the Indian military," it observed. "From the Middle East and East Africa to Southeast Asia, India is making its presence felt in both economics and security policy in ways that traditional great powers like Britain and France only wish they could match," The American interest said.

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Tuesday, November 29, 2016

The Effects of India's Currency Reform? 'Chaos' Say Analysts 11-29


The Effects of India's Currency Reform? 'Chaos' Say Analysts
























NEW DELHI — The sudden withdrawal of 86 percent of India's currency has left cash in short supply, retail sales stumbling and wholesale markets in turmoil.

That's just the immediate fallout from Prime Minister Narendra Modi's surprise effort to stamp out corruption by making cash hoards in large denomination bills worthless. But what lies ahead could be even worse, some analysts say.

"Basically, you've created chaos," said Steve H. Hanke, an applied economist at Johns Hopkins University in Baltimore and a global authority on currency policy. "India is a cash economy. It's not like Europe or the U.S. where everyone is running around with a credit card. That's not the world of India."

"It doesn't look like this thing was thought through at all," he said.

Every day or so, soothing assurances about India's overnight currency reform spill from the offices of top government officials.

"Enough cash is available," Economic Affairs Secretary Shaktikanta Das said Thursday during a nationally televised press conference, as millions of people waited in hours-long lines. A few days earlier, the finance minister urged patience with what he called "a period of inconvenience."
But the decision to ban India's highest denomination bills, 500 rupee and 1,000 rupee notes worth about $7.50 and $15, goes far beyond an inconvenience.

India's economy has become one of the world's largest in recent years, but millions of businesses, and hundreds of millions of people, lack bank accounts and use cash to pay for everything from groceries to hospital stays to land purchases.

The shadow economy — countless transactions hidden from the authorities — is believed to amount to about a quarter of the country's gross domestic product.

The government used a similar demonetization in the late 1970s. But it failed to curb corruption, and the underground economy has grown immensely larger since then.

Plenty of Indians do use cash transactions to hide their wealth and avoid taxes — less than 3 percent of the population pays income taxes — and the authorities occasionally arrest businesspeople or corrupt officials with currency hoards that can fill trucks. But plenty more people use cash because of habit, poverty or a lack of easy access to banks.

So instead of just aiming squarely at wealthy tax dodgers, the demonetization is also hammering the poor, the working-class and small business people whose lives have been turned upside down during the transition to new currency notes.

Across India, people are waiting in lines that often form hours before banks open and last well into the afternoon, though the government has limited most withdrawals and currency exchanges to a maximum of $30 a day.

"It is unclear whether this exercise will achieve any lasting results other than having created a national economic crisis, destroying confidence in the national currency and unleashing tremendous suffering for ordinary Indian citizens," Rajiv Biswas, Asia-Pacific chief economist at HIS Global Insight, said in an email.

"This will have a direct negative effect on retail sales and industrial output during the coming weeks," Biswas said.

In worst-case scenarios, the effects of demonetization could last for years, driving the country into recession and pushing Indians to keep their wealth in more stable currencies, such as the euro or U.S. dollar.

"When you don't trust a currency and you don't trust a government you start using foreign currencies," said Hanke. "That's what this is going to do, I think: People will not trust the rupee."
Raghuram Rajan, the former head of India's central bank and one of the country's most respected economists, warned in 2014 that demonetization programs can easily stumble.

"It's not that easy to flush out black money," he said after a speech, while he was still the country's top banker. He added, "my sense is that the clever find ways" to get around currency overhauls.
Rajan has instead suggested better monitoring of financial transactions, such as using government ID cards to track major purchases, and improved tax enforcement.

Hanke was surprised that India would even try a demonetization program, given that its failure in the 1970s is well-known in currency policy circles.

"They're usually done in some kind of crisis situation and panic," said Hanke, "and they ultimately have all kinds of negative unintended consequences."



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Wednesday, October 5, 2016

Is India Capable of a Surgical Strike in Pakistan Controlled Kashmir? 10-05


Is India Capable of a Surgical Strike in Pakistan Controlled Kashmir?



On Thursday India claimed it had conducted a “surgical strike” in Pakistan controlled Kashmir across the Line of Control (LoC). Pakistan denied that India carried out a surgical strike and claimed that two of its soldiers were killed in cross border fire.

“The notion of surgical strike linked to alleged terrorists’ bases is an illusion being deliberately generated by India to create false effects,” the Pakistani military said in a statement.

India’s director general of military operations, Lt. Gen. Ranbir Singh, publicly announced the strike. He stated, “Based on receiving specific and credible inputs that some terrorist teams had positioned themselves at launch pads along the Line of Control to carry out infiltration and conduct terrorist strikes inside Jammu and Kashmir and in various metros in other states, the Indian army conducted surgical strikes at several of these launch pads to pre-empt infiltration by terrorists.”

Enjoying this article? Click here to subscribe for full access. Just $5 a month.India has provided few details of the operation but sources indicate that the “surgical strikes” consisted of a heliborne unit and Special Forces that infiltrated the LoC and conducted assaults on seven suspected terrorist launch pads that were two to three km beyond the LoC.

Throughout the day Pakistan has continued to deny any surgical strike took place. “There has been no surgical strike by India, instead there had been cross border fire initiated and conducted by India which is existential phenomenon,” the Pakistan Army said in a statement.
A surgical strike operation by Indian forces begs the question of whether Indian forces have the capability to launch such a sophisticated and coordinated attack.

Surgical strikes can be conducted through airborne or artillery based precision guided strikes or ground force based assaults; both of which require sophisticated intelligence collection, platforms to conduct collections, and surveillance of target sites and objectives.

India is still on the cusp of building a sophisticated and modernized asymmetrical capability to conduct counterterror operations, while much of its forces are still organized and trained on Cold War models.

Over the last decade, India has spearheaded efforts to modernize her military to include domestic production of unmanned aerial vehicles (UAVs). Rostum I and Rostum II could provide India with an air platform capable of surgical strikes, long loiter times for target surveillance, and intelligence collection. However, these platforms are still in development and Rostum II just began test trials this summer. India’s drone development program is still in its infancy.

As for artillery, in 2015, India and BAE finalized contracts for the sale and development of new M777 155 mm howitzer system, capable of firing the new Excalibur GPS guided shell. However, development and production of the artillery system is not slated to begin until 2018.
India does currently field a Russian GPS guided munition called the Krasnopol, though its precision fire support is within a 30-40 km radius and its accuracy is far less when compared to the new Excalibur shell.

As far as precision strike missile capability, India has recently acquired the U.S. anti-tank guided missile (ATGM) Hellfire, which has frequently been used for targeting operations by U.S. forces. India is currently producing a domestic ATGM called the Helina, a helicopter launched precision strike missile, though this missile is still undergoing testing.

In other words, much of India’s asymmetrical warfare capability is still being developed and tested. The examples above are by no means an exhaustive list but it certainly details a capacity not fully developed by Indian forces.

Furthermore, a cross border air raid by either heliborne assets or drones would still prove exceedingly difficult as Pakistan boasts an incredibly impressive air defense system. Pakistan controlled Kashmir is a high threat area for shoulder fired surface to air missiles, some of which have found their way into the hands of militant groups. Any air operation over the territory would be under threat from these weapon systems.

India has released little detail on the operation; however if India in fact carried out a cross border surgical strike on terrorist facilities and not Pakistani military posts, it would be a paradigm shift in India’s war against terrorist and militant organizations. It would also boast the perception that India’s asymmetrical warfare capability is further along than many may perceive.

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Saturday, September 6, 2014

Social Power of The Republic of India 09-06


Social Power of The Republic of India




Facebook and Twitter have helped us harness the true power of our opinions. Ignored customers now have a platform to air their grievances and take on big companies

Once upon a time, big business and big government monopolised any communication there was. They had the reach, the resources — and yes, the impact — to command media coverage or to buy exposure through advertising. That hasn’t changed.


But social media has made it possible for us, as individuals, to do more than just tell the world what we had for breakfast; popular services like Facebook and Twitter have helped us truly harness the power of our opinions. 



Our grievances and scorn, and our approval and support, have become weapons that we wield in the here and now, in hours and days, not months (or the years between elections). We, the people, can make behemoths stop and think. 


‘Team Anna’, for instance, didn’t just skillfully manage the media; they also assiduously built a following using social media. They were a prominent example of how social media can be a force-multiplier for word-of-mouth, but they were not the only ones.


Wrong Number: Corporates Can’t Control Communication



Mumbai resident and journalist Dhaval Valia had switched phone providers, to Vodafone, because he wanted to use its 3G services. But he discovered that he didn’t seem to be getting much. 



Over weeks of sometimes acrimonious conversations, escalating from customer care to senior executives, Valia established that Vodafone had enabled 3G services in only half the cell tower sites in Mumbai. 



Cornered, Vodafone’s marketing head offered Valia two months of free 3G.



Then, in May 2011, Valia posted his experiences on Facebook. Somehow, Vodafone found out, and sent him a legal notice. Valia sent them one in return. 



From there, it snowballed, becoming front page news in major newspapers and a raging thread on Twitter. Thousands of people were soon accusing Vodafone of Big Brother tactics and all the telco could do was listen to a conversation over which it had no control. 



In the end, Vodafone simply withdrew its case against Valia. 



Rites of Admission: PR Disasters Can Be Turned Around



There is a famous — but, alas, apocryphal — story that Tata group founder Jamsetji Tata decided to build the Taj Mahal hotel as a way of getting back at discriminatory practices that did not allow ‘Indians and dogs’ into posh hotels. Over 100 years after the iconic hotel was built, another posh property — The Leela, in Bangalore — made a faux pas: Its security guards turned away a customer because he was riding a bicycle which the guards said could not be parked inside.

Perhaps, they hadn’t realised that cycling was no longer limited to those who couldn’t afford the expensive vehicles their driveway was accustomed to and that bikes were a style and health statement in the SEC A crowd.



At any rate, the issue travelled, from cycling enthusiasts’ bulletin board, to the Leela’s Facebook page, to newspaper articles and, finally, Twitter. 



On March 27, a bunch of cyclists demonstrated in front of the hotel. The management saw the light pretty quickly and, within a month, The Leela had a bicycle stand in its parking lot. 


Social Capital: Little Organisations Can Cast Large Shadows



As India’s chances in the ICC World Cup were getting hotter, Nachiket Mor (@nachiketmor on Twitter), a former board member of ICICI Bank, now working on a healthcare project in rural Tamil Nadu, tweeted: “I have caught the www.rangde.org World Cup fever. Have pledged to invest Rs. 10,000 for every wicket that Zaheer Khan takes in the finals!” 



Nagesh Kukunoor (@nkukunoor), film director, pledged Rs. 10,000 to the same organisation if India won against Pakistan, and added: “My small pitch during this cricket madness — pl make a pledge on rangde.org. social investing does change lives”. 



They weren’t the only ones. All sorts of people were placing all sorts of ‘bets’, with Rang De as the recipient of their pledges. At the end of the season, Rang De had collected Rs. 10 lakh. 



These funds were destined to be disbursed as micro loans; Rang De lends at an affordable 6-10 percent, raising funds from ‘social investors’ who can give as little as Rs. 100. So far, it has raised Rs. 5.4 crore, and given loans to over 10,000 small borrowers identified by its partners. 



Rang De launched its Web site (rangde.org ) in early 2008, around when Facebook and Twitter use began to accelerate sharply, and social media was part of its strategy from day one. 



Word has spread through referrals from friends. N.K. Ramakrishna, co-founder, says nothing beats that. After all, “That’s what it finally comes down to: Trust.”



The Voice of the People: Mashing Up Phones and the Net



The Internet is a huge enabler. But in countries like India, its reach is hampered by three factors: Low PC numbers, lack of electricity and low literacy. Does that mean hundreds of millions of poor Indians should wait for things to change?


No, say three interesting start-ups that are harnessing the reliability, ease-of-use and ubiquity of mobile phones to create a voice-driven Internet.



CGNet Swara (cgnetswara.org ) uses a voice-based platform to help tribal communities make their voices heard. They can call in and report what is happening and listen to stories of local interest. Journalists moderate the recordings, which are then made available online or over the phone.


Awaz Otalo (which subsequently gave birth to Awaz De — awaaz.de ) is a similar project in Gujarat, which lets farmers call in and pose questions around agricultural practices, which then get routed to other farmers who can provide answers. 



Labor Voices (laborvoices.com ) allows migrant construction workers to rate their employers on various parameters like working hours, salaries and working conditions. 



I Saw It On the Telephone: Corporates Can’t Hide Uncomfortable Truths



“If a tree falls in a forest and no one is around to hear it, does it make a sound?” Today, we ask, “If companies do ugly things, but consumers don’t hear of them, are the companies still guilty?”



Two startups are collating and channelling supply chain and labour practices information from around the world and putting it right into your hands. 



Good Guide (goodguide.com ) reveals the story behind the creation of over 120,000 everyday consumer products ranging from packaged foods to cars to cellphones, tracking and analysing the supply chains used to manufacture these products, assigning scores around multiple environmental, societal and ingredient factors. Using it is as simple as scanning the barcode of a product using your phone at a store.


Free2Work (by notforsalecampaign.org ) is a listing of many well known companies such as Nestle, Fisher-Price, Adidas and Levi-Strauss. Each of them is assigned a grading based on the way they treat their employees. A revelation made by the app is Amazon’s abysmal “D” grade, based in turn on the way its Kindle contract manufacturer in China allegedly ill-treats its workers. 



Saturday, February 15, 2014

India’s New HR Challenge: Managing a Multigenerational Workforce 02-16


India’s New HR Challenge: Managing a Multi-generational Workforce



Diversity and inclusion have been steadily gaining traction in corporate India in recent years. Much of this is centered on gender diversity, and companies are beginning to realize the business imperative of hiring women and creating an equitable work environment. But there is another aspect that human resource managers in India need to wake up to: The importance of effectively managing a multigenerational workforce.
One may argue that organizations across the world have always had to manage a multigenerational workforce. While that is true, India’s demographics are creating some unique challenges. Even as the world is graying, India is getting younger. By 2020, the average Indian will be only 29 years of age compared with 37 in China and the U.S., 45 in Western Europe and 48 in Japan. Currently, more than half of India’s population is less than 25 years of age.
Given India’s population of over a billion, these make for very large numbers. What’s more, this large pool of new workers comes with a mindset very different from that of the earlier generations. Experts note that this difference between generations is far more striking in India than elsewhere because of the country’s rapid pace of liberalization and increasing globalization since the 1990s. India has also leapfrogged through tremendous advances in technology, including the adoption of mobile phones, the Internet and social media.
Adding to the Complexity
“India has gone through more changes in the past 20 years than most countries witness over a century,” says Amit K. Nandkeolyar, assistant professor of organizational behavior at the Indian School of Business. Pointing to India’s vast socio-economic and cultural diversity, Nandkeolyar adds: “Employees come from different regions, religions, linguistic traditions, castes, communities, culinary tastes, races and genders. A generational difference adds another layer of complexity. This creates a workforce that can find itself divided in more ways than comparable workforces in most countries.”
Vishalli Dongrie, senior director at consulting and services firm Deloitte Touche Tohmatsu India, notes: “The current generation in India entering the workforce has seen abundance in options and affluence early in life. They are also more independent and more aware of global opportunities. This is reflected in the decreasing loyalty toward their employers and the increasing focus on short-term goals. Globally, the shift has not been so pronounced.”
Puja Kohli, an independent human resources consultant, points to another aspect: The dissonance between the home environment and the workplace. Kohli observes that parents in India have become far more open to including their children in decision making — what kind of house to live in, what make of car to buy, where to go on a holiday and so on — but the workplace continues to be in a “plan, control and review” mode. “This results in conflict and disengagement at the workplace,” says Kohli.
Last year, Kohli conducted a study titled, “Managing in a Multigenerational Workplace,” in collaboration with the National Association of Software and Services Companies (Nasscom). The objective of this study was to understand the competencies needed to manage millennials in the information technology/information technology enabled services (IT/ITeS) sector, which is among the largest recruiters of youth in India. More than 60% of the employees in this sector are less than 30 years of age.
In her study, Kohli focused primarily on five areas: Values, interpersonal relationships, commitment, work ethics and world view. Kohli notes: “The need to build skills and competencies, and freedom and empowerment are the topmost priorities for the youth in this sector, followed by recognition and appreciation.” Interestingly, the need for freedom and empowerment spans a host of issues: vocabulary, dress code, flex-time, work-life balance, use of social media and so on.
Dilpreet Singh, vice president of human resources at IBM India & South Asia, observes: “This is a generation that is not hierarchical in its outlook. It respects competencies and knowledge and not so much authority that simply comes with age or position.” And herein lies the rub: In most organizations, policies are created by a group of senior people who don’t understand the mindset of the youth. Som Mittal, who until recently was president of Nasscom, says: “We find that the gap between the traditional outlook of people who are taking decisions and those who are getting impacted by these decisions is increasing. This is resulting in a mismatch.”
Building a ‘Salsa Culture’
What is at stake if this gap continues to increase? Last year, Deloitte and the Confederation of Indian Industries released a report titled, “Gen Next Workforce Study, 2013.” Based on its findings, Deloitte’s Dongrie says: “The evolving preferences of the current generation [in India] pose perplexing challenges for organizations looking at attracting, engaging and retaining them.” According to Dongrie, if organizations don’t address the issues arising out of a multigenerational workforce, it can result in “a lower engagement rate, loss in productivity and a higher attrition rate.” It could also lead to a “situation of unrest among the workforce. Ultimately, the output from the investment in human capital will be much lower than its true potential.”
If organizations don’t take appropriate steps, “they will lose out on the best talent and what it can do for them,” Singh of IBM notes. “They will lose out on new ideas. This severely impact an organization’s competitiveness. At a national level, India will lose out on the human resource that can take it forward.”
So what is it that companies need to do? According to ISB’s Nandkeolyar, firms must emphasize the commonalities that bind all employees together and deemphasize the differences, especially in terms of age and experience. “We need to understand, celebrate and encourage diversity in workplace. This will help all employees to work toward a common goal.” According to Mittal of Nasscom, the generational gap can be bridged through constant dialogue. “We need to break hierarchical boundaries and involve all generations of employees in decision making.”
Nirmala Menon, founder and CEO of Interweave Consulting, which focuses on diversity management and inclusivity in the workplace, believes that senior employees need to be more open to making adjustments and changes since the workforce and the workplace will now be increasingly defined by younger employees. “It’s more a mindset issue than chronological age. One needs to be open to accepting differences, whatever they may be. A one-size-fits- all approach will not work,” she says.
According to Subhro Bhaduri, executive vice president at Kotak Mahindra Bank, companies need to provide “high clarity, sharp direction, in-depth job knowledge and abundant skills” to their young employees, along with keeping them abreast of the latest developments in their industry. “The current generation is keen to know what they are doing, why they are doing it and what they would derive from the same,” Bhaduri says. “The new workforce is also keen to get variety in roles and functional areas in order to remain excited about work. In addition, there is an increased aspiration level and corresponding growth expectations which have to be managed.”
Saundarya Rajesh, HR professional and founder-director of Avtar Careers Creators and Flexi Careers India, suggests that organizations must invest in building “generational competence” — that is, “firms must develop a greater awareness of what [influences] shape each cohort without stereotyping.” According to Rajesh, organizations must work toward developing a “salsa culture, which is a sum of many parts and where each part retains its unique identity.” Rajesh adds that organizations also must “target the right talent strategies to the right set of employees.”
Defining Non-negotiables
Some companies are starting to address this issue. At IBM, for instance, in keeping with the younger generation’s preference for using their own devices at work, employees are allowed to bring these to the workplace. These devices are allowed be connected to the organization’s IT systems after ensuring due security measures. IBM also has its own internal social networking platform where employees can raise queries, post their views and interact with colleagues without having to go through the traditional organizational hierarchy. “This is a media that the new generation identifies with strongly, and it has made quite a difference in managing the workforce. [Employees] can reach out to anyone anytime they want without having to go through their immediate boss,” says Singh.
At HCL, initiatives include being more interactive on social media at the time of recruitment, the use of the gamification to motivate workers, an increased emphasis on change management, and ensuring that training methodologies are more aligned to the ways of the young employees. “For instance, the one-to-many training is not easily adaptable to the way the newer generation likes to learn,” says Naveen Narayanan, lead of talent acquisition, development and mobility at HCL. “The technologies that some of these youngsters experience for free outside of work is perhaps more savvy than what they have within the workplace. We need to be conscious of this and devise new ways of interacting with them.”
Santosh Singh, talent acquisition director for the Asia Pacific region at construction and mining equipment firm Caterpillar, notes that a major challenge of a multigenerational workforce is to move away from stereotypes and engage with employees as individuals. “We encourage and position our supervisors and managers to get to know their employees better and to understand and champion their aspirations,” he says.
But this raises another pertinent question: How can an organization maintain its culture and at the same time address the needs and aspirations of different generations at the workplace? IBM’s Singh says that the answer lies in ensuring that there is no compromise when it comes to the core values of the organization. “Our values are what bind us together. While we may be flexible in many areas, there is no compromise on this. We work hard at ensuring that these core values are understood and imbibed by every new generation that comes in.” Menon of Interweave agrees: “The core values of the organization must be non-negotiable. Everything else that can be accommodated, should be.”
According to Kohli, in order to be effective and impactful, the initiatives around the multigenerational workforce must be part of the top management’s agenda. “It must be addressed not only by HR teams or diversity groups but also by business heads.” Pointing out that in most companies in India the awareness of the challenges of a multigenerational workforce is still at a very nascent stage, she adds: “If organizations don’t awaken to this issue fast and take the necessary steps, they will become cultural dinosaurs and lose their best talent and their competitive edge.”

Tuesday, November 26, 2013

South India’s Street side Coffee Culture 11-27


South India’s Street side Coffee Culture


( There is a possibility that some tamil words may have been 

misspelt as the author is not from India)

David Hagerman
India is most often associated with tea, but java culture runs deep in the country’s southern states. Click to see slideshow.

Early one morning last week I queued outside Sri Gopi Iyengar Coffee and Tiffin Center, a coffee bar just outside the monumental Meenakshi Sundareswarar Temple in Madurai, Tamil Nadu. My long wait under a scorching sun was rewarded with a small glass of fragrant, caramel-hued brew topped with a fluff of white foam. Though a moderate coffee drinker at home, I was already on my fourth dose of the day. It would be far from my last, for in this South Indian state, coffee is as delicious as it is ubiquitous.
India is most often associated with tea, but java culture runs deep in the country’s southern states. Coffee was introduced to what is now Tamil Nadu’s neighboring state of Karnataka in the 17th century by an Indian Muslim saint named Baba Budan, who smuggled seven beans from Yemen while on pilgrimage to Mecca. Cultivation flourished under the British, and India now produces some 300,000 tons of coffee per year. Tamil Nadu is the country’s third largest grower after Karnataka and Kerala.
“No true blue South Indian would ever do without his or her filter coffee early morning ,” says Chennai food writer Sadita Radhakrishna. The author of a forthcoming book on Tamil Nadu cuisine, Ms. Radhakrishna remembers that when she was growing up in Bangalore, “every single day, coffee seeds were roasted and ground on an old coffee grinder with a handle” and brewed in a traditional lidded drip filter made of brass.
David Hagerman

The perfect cup in Karaikudi, Tamil Nadu. Click to see slideshow.



Tamil Nadu residents still sup at home, but coffee is also served in messes, restaurants and chain cafes with catchy monikers like Hot Chips. But the majority of the state’s java is served and drunk at coffee bars, a term that describes a range of street establishments from standalone shacks just wide enough to accommodate a vendor and carts parked under a corrugated roof to huts carved out of the ground floor of permanent structures. 
At a coffee bar, your hot drink (many serve tea as well) is ordered, prepared, served and paid for at a window fronted by a small counter. It’s at the counter that you drink while standing on the pavement, perhaps as you nibble a piping-hot crispy daal fritter or a tea biscuit plucked from a metal-topped glass canister. Takeaway is always an option, provided you bring your own receptacle.
In southern India, the brew method of choice is slow drip in a brass filter, which can hold a cup of water or be sized for a crowd at up to 10 liters, and is kept gleaming via regular applications of tamarind paste. Some java jockeys use the sock method, pouring hot water or milk through fine grounds in a piece of muslin suspended from a metal ring. Beans are Arabica, robusta or a mix of the two, always blended with chicory.
 Sugar is a given (ask for konjam jeeni for a less sweet brew), and so is India’s wickedly rich full-cream milk, kept hot on a burner near the counter. To prepare an order the vendor places sugar in a wide-lipped metal tumbler, adds a shot of coffee and a ladle of milk, and then simultaneously blends, cools and froths the liquid by pouring it back and forth between two tumblers, often from great heights (thus its nickname “meter coffee”). Utter the words konjam kuda and he’ll add a flourish of black coffee to the surface of the drink.
David Hagerman
Black coffee is added at the end to finish the glass. Click to see slideshow.
Depending on the type of bean used, southern Indian coffee can be smoky, winey or even a bit cinnamony, and the chicory adds a hint of nuttiness. In over a week of steady sampling around Tamil Nadu, I drank my best (and strongest) glass at Gopi Iyengar, though I’d rate all of the others nothing less than wonderful.  Served in small doses for as little as 8 Indian rupees (about $0.13) a glass, southern India’s coffee-bar coffee goes down like ice cream — leaving room, pocket change and a hankering for just one more.
Coffee bar at Sri Gopi Iyengar Coffee and Tiffin Center, 37/35 West Chitrai Street, Madurai, Tamil Nadu. 

Saturday, November 23, 2013

The rediscovery of India 11-23

The rediscovery of India


Is diversity an excuse for disunity?

 CNN’s Fareed Zakaria says Indians must embrace their common ambitions if the nation is to fulfill its tremendous potential.



Is India even a country?

It’s not an outlandish question. “India is merely a geographical expression,” Winston Churchill said in exasperation. “It is no more a single country than the Equator.” The founder of Singapore, Lee Kuan Yew, recently echoed that sentiment, arguing that “India is not a real country. Instead it is thirty-two separate nations that happen to be arrayed along the British rail line.”
India gives diversity new meaning. The country contains at least 15 major languages, hundreds of dialects, several major religions, and thousands of tribes, castes, and subcastes. A Tamil-speaking Brahmin from the south shares little with a Sikh from Punjab; each has his own language, religion, ethnicity, tradition, and mode of life. Look at a picture of independent India’s first cabinet and you will see a collection of people, each dressed in regional or religious garb, each with a distinct title that applies only to members of his or her community (Pandit, Sardar, Maulana, Babu, Rajkumari).
Or look at Indian politics today. After every parliamentary election over the last two decades, commentators have searched in vain for a national trend or theme. In fact, local issues and personalities dominate from state to state. The majority of India’s states are now governed by regional parties—defined on linguistic or caste lines—that are strong in one state but have little draw in any other. The two national parties, the Indian National Congress and the BJP, are now largely confined in their appeal to about ten states each.
And yet, there are those who passionately believe that there is an essential “oneness” about India. Perhaps the most passionate and articulate of them was Jawaharlal Nehru, India’s first prime minister. During one of his many stints in jail, fighting for Indian independence, he wrote The Discovery of India, a personal interpretation of Indian history but one with a political agenda. In the book, Nehru details a basic continuity in India’s history, starting with the Indus Valley civilization of 4500 BCE, running through Ashoka’s kingdom in the third century BCE, through the Mughal era, and all the way to modern India. He describes an India that was always diverse and enriched by its varied influences, from Buddhism to Islam to Christianity.
Nehru well understood India’s immense diversity—and its disunity. He had to deal with it every day in trying to create a national political movement. The country’s chief divide, between Hindus and Muslims, was to create havoc with his and Mahatma Gandhi’s dreams for a united India. But he was making the intellectual case for India as a nation as the essential background for its national independence. And he had a good case to make. India has existed as a coherent geographical and political entity, comprising large parts of what is modern India, for thousands of years. Despite its dizzying diversity, the country has its own distinct culture. Perhaps that’s why, for all its troubles, India has endured.
Where Nehru and Churchill were both wrong was in their political conception of the nation-state itself. India could not follow the example of the European single-ethnic, single-religion nations that sprouted up in the 19th century. The British unified India using technology—the railroad—and arms. That nationalizing trend produced, in turn, a unified national opposition to British rule in the Indian National Congress, bringing together all India’s communities against foreign rule. But all this was a historical aberration. India had existed as a loose confederation for much of its history. Even when there had been a ruler in the national capital, he had exercised power by co-opting vassals, allowing regions autonomy, letting local traditions flourish. It was a laissez-faire nation in every sense. Despite the rise and fall of dynasties, the entry and exit of empires, village life in India was remarkably continuous—and unaffected by national politics. “India has historically been a strong society with a weak state,” says Gurcharan Das, the CEO turned author and philosopher.
Modern India went down a different path. Nehru and many of his contemporaries were deeply influenced by 19th-century European nationalism and 20th-century European socialism. They could not conceive of modern India without a powerful national government. The centralizing impulses were more forceful in the economic than in the political sphere, where local leaders were often strong and autonomous. Even so, by the late 1960s, the Congress started losing ground to regional parties, first in the south on linguistic grounds and then later to caste-based parties in the north. The harder the Congress tried to fight this tendency, the greater the local backlash. This opposition to New Delhi reached its zenith under Nehru’s daughter, Indira Gandhi, who as prime minister attempted an extreme form of centralized rule in the 1970s, dismissing dozens of local governments, hoping to crush or co-opt regional parties. The result was half a dozen violent secessionist movements in the north, south, east, and west, one of which claimed her life in 1984.
Over the last 20 years, India has been moving toward a different model of nationhood. The power of regions and regional parties is now undisputed. Starting in the early 1990s, New Delhi has been overturning the license-permit-quota raj and opening up the economy. The result is an India that is quite different from the one its founders might have imagined—a motley collection of communities, languages, and ethnicities living together in an open political and economic space. Some older nationalists find this new India too marketized, decentralized, noisy, vulgar, and messy, but it reflects India’s realities and, for that reason, it has tremendous resilience.
Now, without central plan or direction, there are forces pushing India toward a greater sense of nationalism than before. Economic liberalization has created a national economy, and technology is creating a national culture. While there has been a proliferation of regional television channels for news and entertainment, there is also a growing set of national programs and media events. From cricket to Bollywood, a common popular culture pervades every Indian’s life. As India grows, its people will discover that there is much that distinguishes them from other Asian countries—and that binds them together.
Economic growth has created one more common element in the country—an urban middle class whose interests transcend region, caste, and religion.
This is already having political consequences. Between 2011 and 2013, millions of Indians took to the streets to protest, first against corruption and then against the brutal gang rape and murder of a 23-year-old woman in Delhi. The people marching came from cities and towns. In the past, mass agitations in India often originated in the countryside, with farmers petitioning for government largesse or some groups—defined by caste or religion—asking for special rights. The recent protests have a different quality: They ask the government to fulfill its basic duties. They seek an end to the corruption that is rife throughout the Indian political and bureaucratic system. They ask not for special government programs for women but rather simply that the police and courts function efficiently so that rape victims actually get the justice they deserve.
Most of India’s wealth is generated from its cities and towns. Urban India accounts for almost 70 percent of the country’s GDP. But almost 70 percent of its people still live in rural India. “As a consequence,” writes Ashutosh Varshney of Brown University, “for politicians, the city has primarily become a site of extraction, and the countryside is predominantly a site of legitimacy and power. The countryside is where the vote is; the city is where the money is.”
The United States is a middle-class society. Most of the country considers itself middle class, and politicians cater to that vast group in every speech and policy proposal. In India, politicians have generally pandered to the villager. No party has a serious urban agenda, but all have elaborate rural schemes. Popular culture used to reinforce this divide. Village life in traditional Bollywood movies reflected simplicity and virtue. Cities were centers of crime and conflict, controlled by a small, wealthy, often debauched elite.
This focus on the rural poor has, ironically, been one of the major obstacles to alleviating poverty. For decades the national political parties handed out lavish subsidies for work, food, and energy—among other things—thus distorting all these markets and perpetuating many of India’s basic economic problems. Even after India’s economic reforms started, these patronage schemes continued, and this mentality has often taken precedence over good governance, efficient regulations, and fiscal sanity. Policies that actually alleviate poverty by promoting economic growth are often enacted quietly and are even guiltily called “stealth reform” by their advocates. In a broader sense, too much of the political elite still thinks of India as a poor, third-world country, a victim of larger global forces rather than one of the world’s emerging great powers that could and should be governed by the highest standards.
The middle class itself has played into this narrative, traditionally thinking it was politically irrelevant and so adopting an apolitical stance. Its response to India’s problems was to expect little of government. Rather than demanding better government schools, they sent their kids to expensive private academies. Rather than trusting the police, they hired security guards for their homes and neighborhoods. Rather than running for office themselves, they didn’t bother to vote and pined for the authoritarian efficiency of Singapore or, now, China.
But 20 years of strong economic growth have transformed the country. The Indian middle class now numbers more than 250 million; over 30 percent of the population of 1.2 billion lives in urban areas. And these numbers are growing fast. Indian movies are now often focused on this group, seen as young, aspiring, and filled with idealism and ambition.
Globalization has raised the expectations that this new urban middle class has for itself and its government. The opening of the Indian economy has exposed them to a new world—a world in which other countries like India are growing fast, building modern infrastructure, and establishing efficient government. Whereas they used to assume that to get rich one needed political connections, today they can dare simply to have good ideas and work hard. India is still a parochial country—for good reason, given its size and internal complexity—but this middle class sees no reason why its democracy shouldn’t work for them too.
Technology is giving them the power to make their voices heard, even when outnumbered by other interest groups. India is unusual in combining the growth of an emerging market with the openness of a freewheeling democracy. (China has the former but not the latter.) The result has been an information explosion. The country boasts more than 170 television news channels, in dozens of languages. Three-quarters of the population has mobile phones. Texting and similar methods have now become a routine way to petition government, organize protests, and raise awareness. The Aadhaar program (aadhaar means “foundation” in Hindi), spearheaded by India’s tech pioneer Nandan Nilekani, which will give every Indian a unique biometric identity, could have a much larger impact than imagined. Its stated goal is to make it possible for Indians to get the rights and benefits they deserve, without middlemen, corruption, or inefficiency blocking their path. But it could also make it possible for Indians to think of themselves for the first time as individuals, not merely members of a religion, caste, or tribe.
Many foreign observers, particularly Western businesspeople, look at India today and despair. The country simply cannot reform at the pace necessary to fulfill its ambitions for growth and progress. Everything gets mired in political paralysis, and the governing class remains committed to a politics of patronage and pandering. This is all true and deeply unfortunate. But it is a snapshot of today’s reality, not a moving picture of an evolving society. In states as disparate as Gujarat, Odisha, and Bihar, state governments are aggressively promoting economic growth. And this is not simply a story about Narendra Modi, the controversial chief minister of Gujarat. That state of 60 million people has grown faster than China over the last two decades—with three different chief ministers. India itself, for all its problems, has been one of the fastest-growing large economies in the world over that period.
Can the country live up to its potential? If so, it will happen only because of a bottom-up process of protest and politics that forces change in New Delhi. India will never be a China, a country where the population is homogeneous and where a ruling elite directs the nation’s economic and political development. In China, the great question is whether the new president, Xi Jinping, is a reformer—he will need to order change, top-down, for that country.
In India, the questions are different: Are Indians reformers? Can millions of people mobilize and petition and clamor for change? Can they persist in a way that makes reform inevitable? That is the only way change will come in a big, open, raucous democracy like India. And when that change comes, it is likely to be more integrated into the fabric of the country and thus more durable.
I remain optimistic. We are watching the birth of a new sense of nationhood in India, drawn from the aspiring middle classes in its cities and towns, who are linked together by commerce and technology. They have common aspirations and ambitions, a common Indian dream—rising standards of living, good government, and a celebration of India’s diversity. That might not be as romantic a basis for nationalism as in days of old, but it is a powerful and durable base for a modern country that seeks to make its mark on the world.

Wednesday, October 2, 2013

Can Raghuram Rajan Reverse the Indian Economy’s Decline? 10-02


On September 5, Raghuram Rajan took over as Governor of the Reserve Bank of India (RBI). His predecessor, D. Subbarao, had made several controversial decisions in his five years in charge. His last two months in office were especially difficult. In an effort to control inflation, Subbarao raised interest rates again and again to bring down liquidity — but he failed. In July, the Wholesale Price Index (WPI) rose to 5.79% against 4.86% in June.

Can Raghuram Rajan Reverse the Indian Economy’s Decline?







The Bombay Stock Exchange Sensitive Index (Sensex) reflected this pessimism. The markets had been dropping vertiginously the past few weeks. Then, on September 5, came the appointment of Rajan. In the next three days, the market rose from 18,567, to 18,979 to end the week at 19,270.
Monday was a holiday in the Indian markets. Tuesday saw the Sensex gain 727 points or 3.77%, just three points short of the psychological mark of 19,000. The rupee — the public face of the crisis — closed at 63.84 per dollar, up 2.20% from Friday’s close of 65.25. It had gained on Thursday (1.6%) and Friday (1.2%).
“On the surface, it may appear that the fall of the Indian rupee is a bolt from the blue. It is not. The underlying issues have been building up for some time; they did not happen overnight.”
raghuram-rajan
The media has started calling this the “Rajan effect.” It is true that Subbarao generally swam against the tide when it came to taking policy decisions. Consir interest rates. Finance Minister P. Chidambaram had often called for a cut in rates. Industry leaders wanted lower rates so that they could borrow and invest in growth. But Subbarao insisted that his job was to contain inflation; growth and the rupee were subsidiary. Inflation has thumbed its nose at Subbarao; and, from January this year, the rupee has weakened 7.45%. It is currently 63.84.

The New Measures
In a speech on the day he took over, Rajan announced several steps and intentions to prevent further downturns. First, he said, the RBI “should be a beacon of stability as to its objectives. That is not to say we will never surprise markets with actions. A central bank should never say ‘never’. But the public should have a clear framework as to where we are going, and understand how our policy actions fit into that framework. Key to all this is communication.”
Rajan said he would step on the gas as far as licensing new banks is concerned. More interestingly, he said: “We will not stop with these licenses.” He encouraged “foreign banks to move to a wholly-owned subsidiary structure, where they will enjoy near national treatment.”
On the rupee Rajan does not appear to favor more controls. “This might be a strange time to talk about rupee internationalization, but we have to think beyond the next few months,” he noted. “As our trade expands, we will push for more settlement in rupees. This will also mean that we will have to open up our financial markets more for those who receive rupees to invest it back in. We intend to continue the path of steady liberalization.”
Will Rajan’s approach succeed in turning around the Indian economy? The country faces enormous problems. The biggest is the current account deficit (CAD). Chidambaram says that the CAD will be contained at 3.7% of GDP in 2013-2014. (In 2012-2013, it was 4.8%; the comfort level is 2.5%.) Chidambaram is counting on US$12 billion of additional foreign exchange inflows. But observers are skeptical whether the new measures — some of which are yet to be announced — will deliver.
The Missing Link
The missing link in the India story is reforms. In fact, the reverse seems to be happening today. The Food Security Act passed by the government aims to provide subsidized foodgrains to poor families. The budgeted amount for 2013-2014 is US$1.6 billion. “The impact of the National Food Security Act on food subsidies is manageable for 2013-2014,” according to the RBI. “In the years to come it will add to the fiscal pressure.” That pressure has been compounded by another populist measure — the National Rural Employment Guarantee Act of 2005. This guarantees 100 days of wage employment in a financial year for every family in rural areas. It costs some US$6 billion annually. More importantly, it has stopped the migration of construction workers from the villages, causing a huge shortage of manpower for infrastructure projects.
The real impact of that shortage has yet to be felt since infrastructure projects, like many other sectors of the economy, are almost at a standstill. The prime culprit here is the interest rate. This is where a new approach from Rajan may help, observers say.
So what lies ahead for the Indian economy and what impact will Rajan’s policies have? Jitendra V. Singh  , a Wharton professor of management, notes that the recent precipitous fall of the Indian rupee and the volatility in the Indian financial markets is a hot topic. “On the surface, it may appear that the fall of the Indian rupee is a bolt from the blue. It is not. The underlying issues have been building up for some time; they did not happen overnight.”
According to Singh, a close look at India’s recent macroeconomic data points to quite serious underlying issues: a significant CAD, a fiscal deficit and a trade deficit. “FII [foreign institutional investor] inflows have helped finance part of the CAD in recent times. However, with the possibility of ‘tapering’ by the U.S. Federal Reserve, there have been outflows of foreign capital, putting even more pressure on the rupee. Some are questioning confidence in the India story,” he says.
Singh suggests that “even as we consider what can be done to stem the decline of the rupee, the question must also be asked: Just how did we get here, and what can be learned from this experience?” The responsibility, he says, appears to lie primarily with the incumbent Indian government. “Little wonder, then, that many in the international community have pointed their fingers that way. The real task ahead is to rebuild confidence in India, and this may take time.”
The one good recent decision, Singh notes, is the appointment of Rajan as Governor of the RBI. “He is first-rate, but he has his work cut out for him. His choices will not be easy, since he will inherit a difficult situation.
“On the face of it, raising interest rates might reduce capital outflows, help prop up the rupee and control inflation,” Singh continued. “But that will also reduce the growth rate of GDP. The period ahead is likely to be challenging, and thoughtful consideration of available alternatives is needed. Surviving the short term without too much damage is essential to realize the long-term potential that lies ahead. But will [Rajan] have a free hand in doing what is in India’s long-term interests?”
According to Kartik Hosanagar  , a Wharton professor of operations and information management, the two main factors for the problems in the Indian economy are the increase in long-term interest rates in the U.S. and sluggish growth in India. “Higher interest rates [and expectations of further increase] in the U.S. have contributed to dollars being pulled out of many markets causing currency devaluation in them. India has fared particularly poorly because growth has been slow the past couple of years and investors are losing confidence.”
“People look at India as a large and diverse place with enormous potential. And it is. But it’s one thing to be the most populous economy and another to realize that potential.”
The short-term prognosis, Hosanagar says, is very poor. “Recovery will be slow. In the short-term, the only hope is that it is an election year. Perhaps a change in government after the elections might change investor confidence. In the long term, I think the outflow of dollars will stabilize and the macro factors will be less relevant. The long-term prognosis depends on reform and governance.”
Hosanagar adds that the government needs to restore investor confidence. “It needs to open up more sectors to foreign investment and improve taxation. To address the import-export misbalance and unemployment, and to stir growth, India needs to invest more in its manufacturing. To address the fiscal deficit, the government needs to reduce many subsidies. I doubt they will do that in an election year even though it’s badly needed,” he notes.
According to Hosanagar, one of the biggest issues is that of misgovernance. “This is perhaps best seen through all the infrastructure scams (2G, coalgate, DLF land deal, etc.).”
“I think the ‘disappointment’ with progress to date comes in part from the curse or weight of expectation,” adds David R. Bell  , a Wharton marketing professor. “People look at India as a large and diverse place with enormous potential. And it is. But it’s one thing to be the most populous economy and another to realize that potential.”
Bell notes that comparisons with China are inevitable and people expect the boom to come to India as well. “China has progressed and so people assume that India will do the same at the same rate, or at perhaps an even greater rate. ‘Positive’ attributes of India might be touted here — democracy and [a population with] fluency in English. But, again, these alone are not sufficient for realization of potential.
Pointing out that all economies need both hard and soft infrastructure to grow and thrive, Bell says: “Hard includes basic distribution systems (roads, electricity, Internet, and so on). Soft includes rule of law and absence of corruption. India still needs to progress in the hard infrastructure domain and some recent events and scandals have undermined confidence in the soft infrastructure. The latter is especially sensitive to perception.”
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