Indian Economy - News & Discussion 27 May 2012

[Theo_Fidel]

Vina saar,

Have the sense to hold your tongue at times like this.
Folks are homeless and death has occurred.
At least for the next few days quit your brand of poison.
------------------------------------

Hopefully peace returns and no one does anything dramatic.
Property needs to be replaced and security maintained.
Cooler heads need to prevail.
Dharmapuri has an extremely large dalit population.

[Yogi_G]

Expect Dravidian parties and EJs to descend on the scene like locusts to take advantage of the situation just like they did after the tsunami. Enemies in our midst whom we just seek to ignore.

[Yogi_G]

Is it possible that this analysis could be true which claims that India could have been a 9 trillion dollar economy today if there were no black money?

Without black money, India can be $9 tn economy

One more source saying that the size of the black economy is about 40-50% of the size of the economy. So we are in reality a 3 trillion dollar economy.

[pentaiah]

There is more caste discrimination between the sects of Dalit subjects than Brahmin vs non Brahmin.

Each of the SC, ST BCCI feels they are more privileged than the other and has become a big sham on blaming some one else of forward caste to gain the very oppressing privileges to oppress others while claiming to be victims.

I have seen this first hand in my farm and in my village. This cast based reservations is big scam
That's my humble opinion

[Theo_Fidel]

Yes, all the castes discriminate against each other. It has never been otherwise. Our social system is $hit and indefensible. At some point this nonsense has to end. IMO it will end with the end of caste. It is unfortunate there is no consensus on ending it even at the elite end of our society. If it doesn’t start there it never will.

[Suraj]

Is it possible that this analysis could be true which claims that India could have been a 9 trillion dollar economy today if there were no black money?

Without black money, India can be $9 tn economy

One more source saying that the size of the black economy is about 40-50% of the size of the economy. So we are in reality a 3 trillion dollar economy.

Yes, we have discussed this subject several times in the past. Estimates about the size of the informal economy ranged from 25%-60% a few years ago. I assume it's become a little less now, as more parts of the economy become formal activity. Byt 40-50% isn't unreasonable for a measure of the informal economy.

[RamaY]

Yes, all the castes discriminate against each other. It has never been otherwise. Our social system is $hit and indefensible. At some point this nonsense has to end. IMO it will end with the end of caste. It is unfortunate there is no consensus on ending it even at the elite end of our society. If it doesn’t start there it never will.

Theoji.

It all will end. It is an economic problem all the time.

When Bharat was under continual waves of invasion and fortification, there was little security of one's properties. This translated into hoarding gold as this one precious item (for most part of the history) that can be carried over on self.

Many social customs and their (subsequent) religious approvals came out of this need to ensure that one's hardwork is passed on to ones future generations.

We just got independence 60 years ago. The first 40 years are wasted with our unnecessary flirting with Socialism. Independent India could have built all the institutions (JNUs, JNTUs, IITs and you name it) irrespective of our state economic model (Be it family economy or market economy or socialism).

Anyways we have seen the 2nd wave of economic progress between 1980-2000 and we are into 3rd wave.

Soon (IMHO 2020s) we will get into 4th wave of economic progress and most of these issues will start subsiding.

[lakshmikanth]

Yes, all the castes discriminate against each other. It has never been otherwise. Our social system is $hit and indefensible. At some point this nonsense has to end. IMO it will end with the end of caste. It is unfortunate there is no consensus on ending it even at the elite end of our society. If it doesn’t start there it never will.

Indeed, infact many "castes" have crossed the boundaries of the third step to genocide : Dehumanization. Many are in the Othering stage (2nd stage). I have been trumpetting this around wrt the gora admi in the west doing it everywhere. Unfortunately I have come to realize that "caste" is exactly == to gora admis "othering" and hence one can massacre the "other" without considering them human (i.e. they are already dehumanized due to othering).

On an OT sidenote: This is why I oppose conversions, because they increase "Othering" even more. We have to work within the framework to find unity and not try to find it outside.

[member_20292]

^^^ how does one put an end to black money?

[pentaiah]

When laws are enforced by thrashing people who don't disclose income and pay taxes the money turns white from black.
The most corrupt and fountain of Black Money is Directorate of General Of Economic Enforcement just like Railway Pilferage force (RPF)



Notice the Lion is laughing at us.

[RamaY]

^ That is the confident laugh of Dharma saar!

[krisna]

Once an export hub, Tirupur is today a ghost town

Tirupur was once a powerhouse of exports. A series of events brought South India's largest garment export hub to its knees.

The downfall began with the closure of all dyeing units a few years ago, for polluting the Noyal river.

Finally, they went to Gujarat to find out how dyeing units were still working there. They bought machinery which assured 'zero discharge' and started again in Tirupur. But only a few have managed this.

(what is Gujarat doing differently compared to Tirupur?)

The recession in the United States and the European Union really hit us hard. Bangladesh gets tax concessions as it's a under developed nation. We have lost our competitive edge. Power is not available at most times. We have to use generators which adds to the cost".

Garments are exported to over 100 countries but 65 per cent of the exports are to the Unites States and the European Union.

"We have not given up. We are exploring new avenues in Africa and the South American countries. Bangladesh enjoys tax concession as it's an under developed nation. It's our biggest competitor," he explains.

China is not a competitor as labour costs have gone up there too. Their hope lies on the free trade agreement India is going to sign with the European Union in January 2013. Then it has to be ratified by the 27 participating countries.

Crime rates have gone up. Out of total crimes taking place in Tirupur and nearby Coimbatore, 67 per cent is reported from Tirupur. This is largely due to the floating population from other districts and other states. Crime rates go up when there is lack of work.

According to local journalists add, "There are 300 Nigerians here. Twenty years ago, there were just a few. They actually buy garments but what else they do no one knows, many of them have been caught selling drugs".

[vishvak]

Tirupur should have more tax concessions considering current how power situation. Unemployment, drug selling - all this look too alarming from a place once a hub of activities.

Obviously absence of power should not be prolonged under any excuse.

[shaardula]

being at the heart of TN's economic quad (coimbatore, salem, trichi, dindigul) its never a good thing that tirupur stands broken.

yeah what happened to TN power? I'm hearing 16 hrs down.

[Gus]

Dmk happened

[shaardula]

+1 to what theo and lakshmikanth have said.

this comes as a shock only if we have a poor understanding of indian power structure, at present and through history. dravidization is just reemergence of historic power structures.
specifically retaking of the privilege that the higher castes enjoyed under the colonial rule.

value of higher castes comes from being elites. being elites allowed them to undertake esoteric pursuits. but as the famous fable goes, when midstream on a boat with a leak, it doesn't matter if you know the vedas or if you can belt out the varses, what matters is if you know how to swim. center of gravity of societies has always been with the 'backward castes. there are many many examples where in the guy who captures power and his clan get gentrified and thus earn legitimacy. invariably this turns to be the guy who has actually fought to hold on to his material holdings. nothing new or original in all this. people like m.n. srinivas hypothesized these things like 50 years ago.

dravidization, mandal etc are just ways to return to norm. problem for us is that our norm is itself off kilter. knowing what we know today, return to norm is not sufficient.

this nonsense about caste has to be vanquished.

[shaardula]

go on a limb here. my guess is dmk will do nothing about this. their base is middle/lower castes. rationalization/tanbuddhi or whatever is an attempt at return to old norms. modes of gentrification are different, everything else is same.

[RamaY]

value of higher castes comes from being elites. being elites allowed them to undertake esoteric pursuits. but as the famous fable goes, when midstream on a boat with a leak, it doesn't matter if you know the vedas or if you can belt out the varses, what matters is if you know how to swim. center of gravity of societies has always been with the 'backward castes. there are many many examples where in the guy who captures power and his clan being gentrified . invariably this turns to be the guy who has actually fought to hold on to his material holdings. people like m.n. shrinivas hypothesized these things like 50 years ago.

If we can come up with a social model or construct that can explain this issue without using the word "caste", that will be a biggest contribution of this forum to Indian society.

How is the center of gravity of any society can be (or called) a "backward-bakwas"? How is it possible? Isn't history a testament that new elites come from all parts of the society based on underlying politico-economic trends? Then how can elites be same as the (sic) "upper-bakwas"?

[shaardula]

#1.i could'nt do it. i was just replying to vina and his statements about how the real modernists are only one section of the society.

#2. even if could, i dont see any value to it. from what i see, an unacceptably large section of our people have been put through unimaginable trauma, because of reasons that have zero grounding in rationalism and are thus indefensible, IMHO. no amount of theoretic explaining away can make them full again or alleviate their loss.

i'm not satisfied that the cycles of accountability will catch up with the perpetrators. if possible i want to see accountability while i'm sentient in this life.

[Don]

Maybe its time for the central bank to cut interest rate but there is the danger inflation might take off again.

http://www.ibtimes.com/india-post-slowe ... ine-871648

India To Post Slowest Growth In A Decade As Industrial Output, Exports Decline

BY Moran Zhang | November 12 2012 11:32 AM

A surprise contraction in industrial production and a further fall in exports suggest that the Indian economy is on track to record its weakest growth in a decade, adding to pressure for action by the government and bolstering calls for an interest rate cut by the country's central bank.

Output at factories, mines and utilities shrank at an annual 0.4 percent in September, the Central Statistics Office said Monday. That came as a complete surprise to economists who had forecast a rise of 2.8 percent in a Reuters poll.

Manufacturing output, which accounts for the bulk of industrial production and contributes about 15 percent to overall GDP, declined 1.5 percent in September from the year-ago period. Production of consumer goods dropped 0.3 percent in September from a year earlier. Capital goods, a proxy for capital investment in the economy, contracted 12.2 percent.


Output reading for August was also revised down to show a 2.3 percent expansion, compared with an initial reading of a 2.7 percent expansion.

However, the final figure for September is consistent with India’s very weak industrial performance during the year as a whole. Factory output has shrunk in five of the seven months through September.

Trade data, also published Monday, showed India’s trade deficit widened to a record $21 billion in October.

Exports fell 1.6 percent to $23.2 billion last month, dragged down by slack demand from India's major export destinations in the U.S. and Europe. Meanwhile, India’s imports jumped 7.37 percent to $44.2 billion, as the country's heavy reliance on imports to meet its oil needs pushed up overall imports.

Asia's third largest economy’s poor export performance contrasts with tentative signs of a pick-up in many other emerging economies and clear signs of an upturn in China, where exports rose by double-digit levels in October, writes Andrew Kenningham, a London-based senior global economist at Capital Economics. India’s underperformance suggests that its competitiveness is declining.

The International Monetary Fund last month slashed its 2012 economic growth forecast for India to 4.9 percent from 6.1 percent previously. That would be the slowest growth in a decade.

Following several policy flip-flops that have deterred foreign investors, Prime Minister Manmohan Singh’s administration began a policy overhaul on Sept. 13. It raised fuel prices to reduce its subsidy burden and eased restrictions on foreign investment in important sectors such as retail and aviation to attract overseas capital.

New Delhi was forced to tackle diesel prices after Standard & Poor's and Fitch warned that the burgeoning fiscal deficit could put India's investment-grade credit rating at risk.

The government plans to bring the deficit down to 5.3 percent of GDP this year, and to 3 percent by between 2016 and 2017. The fiscal deficit was 5.8 percent of GDP in the last fiscal year, when growth slowed to 6.5 percent, compared with over 8 percent growth in the recent past.

While the Indian government continues to forecast an upturn in the coming six months, analysts are skeptical.

“There is little reason to expect an upturn in the coming months,” Kenningham said. “For one thing, promises of further reforms have not been backed up with sufficient concrete measures. The liberalization of FDI in the retail, aviation and pension sectors announced in mid- September will have only a small and gradual effect.”

Moreover, slowing GDP growth coupled with rising inflation, gives little room for fiscal or monetary maneuvering.

Inflationary pressures appear to have increased slightly in recent months. Wholesale price inflation, which the Reserve Bank of India gives more weight to in setting policy, rose to 7.8 percent in September, largely due to September’s diesel price hike, and may well breach 8 percent in October (data to be published on Wednesday) and rise further by December. A Reuters poll of economists showed wholesale price inflation was seen accelerating to 7.96 percent, an 11-month high.

The next monetary policy review is due in December. The central bank has said any interest rate cut is "highly improbable" at that meeting, since it expects elevated price pressures following the hike in the price of heavily subsidized diesel in September.

Kenningham expects the central bank to cut interest rate by 25 basis points in early 2013, with another to follow later in the year. However, this is not a done deal.

“Even [if] we are right, rate cuts of 50 basis points will not be sufficient to generate a substantial rise in GDP growth, given that rates would still be relatively high, at 7.5 percent,” Kenningham said. “And with inflation remaining sticky, there is little chance of much larger rate cuts.”

[RoyG]

RBI is doing a good job in keeping rates up. They are waiting for public spending to decrease. Economy has to be society driven not state driven. I recall an interesting strategy in a presentation delivered by MR Venkatesh a while ago well before the likes of James Rickards entered the scene. He said that since the US is now kicking it into high gear to cheapen the dollar, we should drastically cut our public spending and begin covertly buying gold and gold mines around the world. Black money appropriated by the gov could serve as a catalyst for this process. We could then build a fort knox type of facility to house the gold and back up our currency with it.

[vijayk]

Deleted

[Theo_Fidel]

http://www.domain-b.com/economy/trade/2 ... vices.html

India imported goods and services worth an estimated $44.21 billion in October 2012 against exports of 23.25 billion, registering the highest monthly trade deficit of $20.96 billion and a cumulative current account deficit of $110. 21 billion during the April-October 2012-13 period.

[chetak]

The joys of FDI in retail

That's rich! Starbucks paying staff 25p an hour in new Indian cafes

TAX row coffee chain Starbucks is paying workers just 25p an hour at its newly-opened stores in India.

The pittance falls far below the country’s official living wage and means some staff earn less in a day than the price of the ­cheapest cup of Starbucks coffee in the UK.

Details of the wages emerged as the world’s biggest coffee chain, worth £25billion, attempts to gain a foothold in the sub-continent by opening its first three outlets in Mumbai.

Just weeks ago it was revealed that the company, which prides itself on being “ethical”, paid no tax in ­Britain for the past three years.

Our findings have outraged campaigners, who ­accuse ­Starbucks of “ruthless greed” and paying “poverty wages”.

Under Indian law, restaurant, hotel and cafe owners are only required to pay their staff 17p an hour, or £6 a month.

But the Indian “living wage” – the amount people need to eat, drink and pay the bills – is set at 67p an hour.

When our investigators visited the Mumbai Starbucks they found cleaners were earning just 25p an hour – about £2 a day.

And even the baristas who serve coffee were being paid only 56p an hour, less than £5 for a day’s work.

The 36 staff working in the three stores – called “partners” in Starbucks speak – were ­nervous about speaking out for fear of losing their jobs.

Nearby coffee shop owners said it was common for companies to pay low wages.

One explained: “These kids are desperate for work to improve their living conditions and so they are just glad to have a job.

“The TV is full of adverts for all the good things in life and if you are at the bottom, the only way is to take what you are given in the hope that you can one day afford all those nice things.

“To be fair to Starbucks, they are not the worst people here, but it would be nice to see them taking the lead and trying to change the culture of how people are paid.”

Starbucks’ international slogan is “Love Coffee. Love People”.

On its website it claims it has dedicated itself to “earning the trust and respect of our ­customer, partners and neighbours” by “being responsible and doing things that are good for the planet and each other”.

But fair wage campaigners accuse the company of not putting its money where its mouth is.

Murray Worthy, of anti-­poverty charity War on Want, said: “These wages are an insult... less than half a living wage. All workers should receive a wage that can feed their families, put a decent roof over their heads and pay for essential health care and ­education.

“Campaigners and trade unions have calculated a living wage that would cover these basics would be 12,000 rupees a month (60p an hour).

“Starbucks’ wages do not even come close to this. It is nothing less than ruthless greed that drives Starbucks to pay these poverty wages.

“After the recent criticism over not paying tax, you’d have hoped Starbucks might be willing to take the lead and help drive forward fairer wages. Companies should pay a living wage that allows people to live with ­dignity, regardless of where they are in the world.”

Anannya Bhattrcharjee, of Asian Floor Wage which ­calculates the living wage for India, said: “Starbucks’ lack of commitment to even a minimum living wage, which would not even create a noticeable dent in its profit ­margins, is alarming.

“This type of business practice is singularly responsible for the extreme rise in inequality we see in the world and in India.”

Last night a spokesman for Starbucks said: “We are ­dedicated to creating a workplace that values and respects people from diverse backgrounds, and enables our partners (employees) to do their best work.

“We call them our partners because they directly contribute to our success by helping us build the brand one cup at a time, one person a time.

“While we cannot divulge ­details on remuneration ­figures, we lay strong emphasis­ on ­partner development through education, training and engagement and provide them with an ­environment that supports and ­inspires.

“In India they receive the ­highest quality coffee-house experience at our stores.”

[rsingh]

Is it true that we have overtaken Japan in terms of GDP ? One Belgian daily says so and then in latest issue of economist. Is it in terms of PPP ?

[rsingh]

The joys of FDI in retail

That's rich! Starbucks paying staff 25p an hour in new Indian cafes

TAX row coffee chain Starbucks is paying workers just 25p an hour at its newly-opened stores in India.

The pittance falls far below the country’s official living wage and means some staff earn less in a day than the price of the ­cheapest cup of Starbucks coffee in the UK.

Details of the wages emerged as the world’s biggest coffee chain, worth £25billion, attempts to gain a foothold in the sub-continent by opening its first three outlets in Mumbai.

Just weeks ago it was revealed that the company, which prides itself on being “ethical”, paid no tax in ­Britain for the past three years.

Our findings have outraged campaigners, who ­accuse ­Starbucks of “ruthless greed” and paying “poverty wages”.

Under Indian law, restaurant, hotel and cafe owners are only required to pay their staff 17p an hour, or £6 a month.

But the Indian “living wage” – the amount people need to eat, drink and pay the bills – is set at 67p an hour.

When our investigators visited the Mumbai Starbucks they found cleaners were earning just 25p an hour – about £2 a day.

And even the baristas who serve coffee were being paid only 56p an hour, less than £5 for a day’s work.

The 36 staff working in the three stores – called “partners” in Starbucks speak – were ­nervous about speaking out for fear of losing their jobs.

Nearby coffee shop owners said it was common for companies to pay low wages.

One explained: “These kids are desperate for work to improve their living conditions and so they are just glad to have a job.

“The TV is full of adverts for all the good things in life and if you are at the bottom, the only way is to take what you are given in the hope that you can one day afford all those nice things.

“To be fair to Starbucks, they are not the worst people here, but it would be nice to see them taking the lead and trying to change the culture of how people are paid.”

Starbucks’ international slogan is “Love Coffee. Love People”.

On its website it claims it has dedicated itself to “earning the trust and respect of our ­customer, partners and neighbours” by “being responsible and doing things that are good for the planet and each other”.

But fair wage campaigners accuse the company of not putting its money where its mouth is.

Murray Worthy, of anti-­poverty charity War on Want, said: “These wages are an insult... less than half a living wage. All workers should receive a wage that can feed their families, put a decent roof over their heads and pay for essential health care and ­education.

“Campaigners and trade unions have calculated a living wage that would cover these basics would be 12,000 rupees a month (60p an hour).

“Starbucks’ wages do not even come close to this. It is nothing less than ruthless greed that drives Starbucks to pay these poverty wages.

“After the recent criticism over not paying tax, you’d have hoped Starbucks might be willing to take the lead and help drive forward fairer wages. Companies should pay a living wage that allows people to live with ­dignity, regardless of where they are in the world.”

Anannya Bhattrcharjee, of Asian Floor Wage which ­calculates the living wage for India, said: “Starbucks’ lack of commitment to even a minimum living wage, which would not even create a noticeable dent in its profit ­margins, is alarming.

“This type of business practice is singularly responsible for the extreme rise in inequality we see in the world and in India.”

Last night a spokesman for Starbucks said: “We are ­dedicated to creating a workplace that values and respects people from diverse backgrounds, and enables our partners (employees) to do their best work.

“We call them our partners because they directly contribute to our success by helping us build the brand one cup at a time, one person a time.

“While we cannot divulge ­details on remuneration ­figures, we lay strong emphasis­ on ­partner development through education, training and engagement and provide them with an ­environment that supports and ­inspires.

“In India they receive the ­highest quality coffee-house experience at our stores.”

That is because Indians are ready to work for 25 P/HR.

[Suraj]

http://www.domain-b.com/economy/trade/2 ... vices.html

India imported goods and services worth an estimated $44.21 billion in October 2012 against exports of 23.25 billion, registering the highest monthly trade deficit of $20.96 billion and a cumulative current account deficit of $110. 21 billion during the April-October 2012-13 period.

It's about time we instituted Argentina-like punitive duties on luxury goods imports. While it may not be the largest reason for the deficit, anything that balances the trade deficit helps.

[Don]

That is because Indians are ready to work for 25 P/HR.

Thats not fair its not by choice. Poverty is forcing them to take any job, A surplus of labour of millions don't give them much of an option.

[Theo_Fidel]

Well, the rest of the Indian economy does not produce enough wealth to pay them better. Right now it is a zero sum game as the pie is growing slowly. I would recommend that they stay in school and complete 15 years of education. Engineers in India are available at $1 per hour. So how can these guys complain.

Till 2035 India's working age population will continue to expand. So till then there will be no real labor shortage. Recommend folks get a good education.

[RamaY]

This 25p/hr is pure 24ct BS, IMHO.

It works out to be Rs2 per a 8hr work day or 6Rs/day if one ends up working 24hrs.

Even if one assumes this is typo and it is 25Rs/Hr and do convoluted calculations at Rs25/Hr with a 12hr/workday 30day work month; we are looking at Rs 9000 salary, which is reasonable for the skills required in a coffee shop. I think this is more close to reality.

Our DDM is doing what it does best.

This reminded me an interaction I had with an auto-driver in my desh trip in August this year.

This auto driver is a graduate (BA) and asked me how to learn computers and get a BPO job. I asked him how much he makes now. He said after all expenses, he takes home ~800-900 per day. So I calculated it to be ~15-20K based on a 20day work month and he agreed.

I told him he may not get more than Rs 10,000 pay in a BPO job (I know their pay structure) and he would have to work odd hours.

To that his honest answer was, it is cool to say he works in BPO and he will get a girl to marry him. Eventhough he makes more as an autodriver his marriage opportunities are near-zero.

I recommended him to a known English institute and BPO computer skills institute.

[nachiket]

^^It's a brit news article. "25p" probably means 25 pence or a quarter pound. At today's rate that would be about Rs. 21.75/hr.

[Abhijeet]

The article itself is Brit poverty p0rn -- standard MO.

But I don't get the needless spin on why this is an FDI issue. Are CCD and Barista paying their workers more out of the kindness of their hearts because they are Indian chains?

[vina]

It's about time we instituted Argentina-like punitive duties on luxury goods imports. While it may not be the largest reason for the deficit, anything that balances the trade deficit helps.

Dawood Ibrahim will be laughing all the way to the Bank again.

The idiotic gold import law and taxes (these were flushed down the drain in the 1991 reforms, one of the first acts of MMS), was the cause of his wealth in the first place (he ran a legit business in Dubai of "exporting" gold to india).

The root cause of the deficit is not consumption, but overspending by the govt egged on by the commie brotherhood giri. Get the fiscal deficit in control, all the rest will fall in place. The fiscal deficit is the elephant in the room and thanks to Pranab Mukherjee and his Bengal influenced mai-baap politics and commiegiri, we have run into the situation we are in today.

[Singha]

luxury goods imports are already being taxed at punitive rates. the EU which exports a lot of these ranging from cars to smaller items is pressing india to reduce in a phased manner by 2020. taxing them even more will be like drop in ocean.

even stuff like imported biskoots and chocolates are taxed punitively I think. lindt chocs or italian biscotti is unaffordable here!

about foreign made liquor again very high prices - EU is pressing GOI on that.

[Arjun]

The fiscal deficit is the elephant in the room and thanks to Pranab Mukherjee and his Bengal influenced mai-baap politics and commiegiri, we have run into the situation we are in today.

Vina ji, This repeated attempt to deflect blame onto a person who has been kicked upstairs by the Sarkaar is no good. Your own lungi-dancing posts after Pranabda's budgets are well-preserved for posterity...

Your thanks for the current situation should be clearly directed at the doddering Nehru-Maino Parivar - that besides making India the laughing stock of the world, is also bereft of ideas and deeply suspicious of economic reform.

[chetak]

The fiscal deficit is the elephant in the room and thanks to Pranab Mukherjee and his Bengal influenced mai-baap politics and commiegiri, we have run into the situation we are in today.

Vina ji, This repeated attempt to deflect blame onto a person who has been kicked upstairs by the Sarkaar is no good. Your own lungi-dancing posts after Pranabda's budgets are well-preserved for posterity...

Your thanks for the current situation should be clearly directed at the doddering Nehru-Maino Parivar - that besides making India the laughing stock of the world, is also bereft of ideas and deeply suspicious of economic reform.

Did not Pranab Mukherjee buy his way into the president's gaddi?

Leaky do gooder schemes are entirely at the instance of the rani and her courtiers, the NAC.

eyetalian commies have taken root in India.

[vera_k]

I don't see why Pranab Mukherjee should be blamed. If he was stepping out of line, his boss could have always fired him. In any case, the boss man has defended the need to increase government spending.

[kmkraoind]

Ahmedabad's Bus Rapid Transit System to be showcased by United Nations

NEW DELHI: The UN has chosen Ahmedabad's Bus Rapid Transit System (BRTS) as a showcase project to highlight that addressing climate change is not a burden, but an opportunity to improve the lives of people.

The 51-km BRTS will be highlighted as a 'lighthouse project' as part of the United Nations Secretary General Ban Ki-moon's Momentum for Change Initiative at the Doha round of negotiations to be held later this month. The initiative was launched by the UN Secretary General at the 2011 Durban round of the UN-sponsored climate change negotiations. The "lighthouse projects" are an attempt to "transform the impression of slow progress in negotiations, into a positive can do environment that recognises action and progress".

As people need to travel longer distances to work or for leisure, there has been a rapid rise in the vehicular traffic, especially as public transport systems in India's cities have been unable to cater to the rising demand. There is an annual 15% rise in the passenger-km that Indians travel, and a 10% increase in the sale of vehicles particularly cars to meet the requirement, according to official data. Transport has become one of the chief sources of rising emission.

Rising pollution, congested cities, larger imports of petroleum resulting in rising prices of petrol and diesel has prompted cities such as Ahmedabad to look for ways to address the crisis on the roads. The Ahmedabad BRTS, which began as pilot project on a 12.5 kilometre stretch in July 2009, has emerged as an example of how a planned commuting system can help reduce emissions and improve air quality as well as have a positive impact on urban development.

"The city of Ahmedabad, which flanks both banks of the Sabarmati river, has many bridges. About ten years ago, we had a pollution situation that made visibility poor. You just couldn't see the bridges. The pollution was so bad that if you were driving on the bridge or waiting at a red light your eyes would water. So around 2002-03, the city moved to CNG, which improved matters. The next step was to improve public transport," said Akhil Brambhatt, deputy general manager, Ahmedabad Janmarg Ltd.

The Ahmedabad BRTS or Janmarg is part of this effort. In the three years of its existence it has expanded to 51 km. Some 20% to 22% of commuters, who were using two-wheelers to commute, have moved to the bus system. The Janmarg's success comes even as Delhi's attempt at introducing a BRTS failed. Ahmedabad learnt its lesson from the nation's capital's mistake. "We took a lot of care in the route selection. Our slogan was simple-avoid busy roads but connect busy places," Brambhatt explained.

For the first three months, the Ahmedabad BRTS was run as a free service. People used the service out of curiosity and well because it was free. The doors were opened to suggestions, and many of these were incorporated into the working of the system. Even when it became a paid service, the charges were low. Brambhatt points out that the minimum fare of 3 for a 2-km trip is among the lowest in the country. The minimum fare in Delhi is 5.

[vina]

Take That , you ISI/St Stephens/DSE/JNU/Planning Commission/Oxbridge Babalog ding-dongs. Jagdish Bhagwati demolishes them in this PM's ability to deliver handicapped by party politics

India's political system is similar to that of the former Soviet Union, where the party was supreme and the chief of government just a figurehead.

"My wife (Padma Desai), who is a Russian expert, gives me good insights. In Russia (in the time of communist party rule), the party was all-important. The president was a figurehead. We have never had that (in India). Now thanks to (Congress president) Sonia Gandhi, the party is entirely important and the prime minister is at the receiving end," says the Mumbai-born Indian-American economist.

The professor of economics and law at Columbia University adds that the "power shifting completely to the party" has taken a huge toll on reforms.

"His (Singh's) ability to deliver reforms is handicapped by the fact that the people in favour of track-II reforms (social spending, etc) around Ms Gandhi are not appreciative of the fact that track-I reforms (growth-oriented initiatives) are absolutely necessary, that we need to intensify and broaden them to continue making a direct impact on poverty and generating revenues (for welfare schemes)," says Bhagwati.

Take this, Amartya Sen and other ding-dongs.

GROWTH VS WELFARE DEBATE

Bhagwati says he and co-author Arvind Panagariya have addressed the debate yet again in their new book, India's Tryst with Destiny: Debunking Myths that Undermine Progress and Addressing New Challenges. This book tackles many policies-related myths propagated in India over the past several decades, he says.

"A lot of them (even luminaries such as Amartya Sen and Mahbub ul Haq) used to say that growth wouldn't influence poverty. Now, it is clear that growth did influence poverty. And they did shift their arguments continuously... (those economists) are like New York's cockroaches. You can't wipe them out. They will turn up perennially ," says Bhagwati, claiming that he stands vindicated in his position that redistribution alone cannot make a big impact in bringing down poverty.

MYTH OF THE KERALA MODEL

The book also debunks the myth that the Kerala model of development has triumphed, says Bhagwati. "You can't go by a few years' experience (referring to Kerala's growth, which is on a par with the national average for the past many years). You have to take a longer perspective in economics," he says, adding that "Kerala started off with spectacular indices: high literacy, low infant mortality, high life expectancy, etc. On social indicators, the state was way ahead. (Over the past 20 years), there is only extremely pedestrian change (in those indices) in Kerala."

"In a state like Gujarat, which still has bad social indicators, the improvement from 20 years ago has been huge," he adds.

Kerala, he argues, had high social indicators thanks to a lot of factors and one of it, again, is globalisation. "That is what we found out. Apart from foreign remittances from the Gulf, the state was exposed to global trade (for centuries), especially in spices. If it (Kerala) had not been active in the world economy, they would not have been able to achieve that," Bhagwati says.

[RamaY]

A question for members from Kerala.

1. Kerala achieved near 100% literacy long time ago. They also have English advantage.
2. Kerala has a good economy based on natural resources, commercial crops etc.,
3. They also have long coastal area - good for trade
4. They also have stable govts
5. They also have forex remittances long before any other state! One in six work outside the country
6. They also have a strong tourism industry.
7. They also have strong cultural identity
8. It is ruled by non-communal govts
9. It has the right mix of religion (especially the faiths that are said to be more prone for economic progress)

What are the short falls if any in Kerala? Why is its per capita income so low? Why doesn't that state reflect a singapore or something like that?

Thanks in advance.