Stuck Deep

The buzz over UPA’s overnight introduction of FDI policies in retail ,aviation,power trading etc has given the economists a new thought to churn upon. The policies may not be welcomed by some strata of the society but it undoubtedly gives an impetus to the UPA  govt which was time and again accused of suffering from policy paralysis. Whether it will a boon or bane is still a very subjective matter and cannot be answered till the time things actually materialize.

As all big economic decisions have a doublewhammy effect so will this have.

1    1)  As per the notion of most optimists ,it will increase jobs in Indian market. Currently 12 million people are employed in form of short scale retailers or kiranawalas in the Indian retail industry which is of $ 400 billion whereas if we see the total business of Walmart which  runs to the score of $400 billion ,employs just 1.3 million people. In view of this statistics it cant be very safely concluded that   but wWe must keep in mind that small retailers in India cannot be completely driven out of business because of the basic mindset of Indian household would not like to drive 10 kms  to purchase their daily chores.

They will sporadically in 2 or 3 months but not very often.

But the argument that FDI will give a lot of jobs and ministers quoting high figures seems uncalculted.

2)Storage of Agriculture products which has been  a major problem for the FCI  appears to get solved with big retailers like Walmart entering Indian Retail Industry.

Wastage of agricultural produce will thereby be reduced.

3)The third incentive would be for the farmers precisely by the Matter of fact that better             technology could be implemented in farms and better quality of seed hence better agricultural yield.

Whether farmers will get better prices than in current scenario which involves a lot of middlemen ,is still a  question looking at the Statistics of US and Europe where every minute a farmer is quitting agriculture .It doesn’t suggest whether the plight of Indian farmers would be improved but certainly here is no scope for further deterioration.

The picture will get clearer once FDI comes to India.May be the model that big chain retailers like walmart and future group adopt in India  is different  and according  to the Mindset of people.

Amidst so much opposition and threat from TMC ,with a kind of hope that NASA’s scientists have for finding life of the red planet,  I hope that we will get to see a lot of dynamics in Indian economy which was becoming stagnant of late.UPA is sitting on a tinderbox being in news for all the bad reasons and over it coming with the recent fuel price hike and FDI .But the real test is to sail through  with the decision of FDI.  If UPA gives way to the unscrupulous demands of Mamata Didi, and rolls back the decision ,it will undoubtedly be the last nail in UPA’s coffin.

      

   

M quite optimistic of the fact

The problem with the current UPA govt is much more than that is

Meltdown at Olympics

The performance of Indian athletes in London Olympics 2012 is no better than that in Beijing or any preceding that. If we use medal count as a yardstick, the performance is not on an upward stride. As they say that comparisons are done among equals (with effect to size and economy), dragging China and drawing parallels between the two becomes unavoidable. We Indians boast of becoming a superpower by 2020, which inflates my expectations in the sports domains too. China’s haul of medals between 1984 and 2012 has almost tripled. The conventional reason may be because of the huge population and good economy. But if that’s the case why is India lagging behind in spite of basking in similar glorious numbers.

I would try shedding some light to that effect.

1. In India, government spending on Sports is a bare minimum. Training the athletes and coaching them properly is by far elusive. A certain number of “Olympic Gold Quest” or a certain number of Tata Athletics Trust is not much to fund the spending that a country of the size of India should be spending on sports .On the other hand China sends its potential swimmers to get trained in Australia, a country that has produced world class swimmers. The state run athlete agencies of China are huge in number in addition to the 15000 government funded sporting schools in the country. Even countries of the size of North Korea spend a larger chunk on Sports.
2.  The mindset of Indian society is not very conducive for sports other than Cricket. One most probable reason which I can conclude is the hype and glamour that is attached to Cricket here. Cricket followed as a cult to the extent that the other sports overly undermined. Other sports should be promoted too.
   
3.  There is a lack of a proper system to tap potential in sports in India. In china children with athletic talent and potential are identified at an early age and then are trained at Chinese athletic training programme. Indian education system does not attach relevance to sports. To make a plant bear fruits, it has to be nurtured since it is in the seed stage. Larger returns demand prolonged investment. Tapping potential at an early age and providing proper guidance and training is the key to produce good athletes.
4. Then there has to be a strategy behind picking up the target sports too. The physical build of Asians is different from The Africans and Europeans so there is little wisdom in wasting resources on field and track sports. Like China doesn’t waste its resources on fields and track where it has little hope of muscling out the Europeans and Americans. Instead focussing on obscure spots which requires training seems prudent.

India has a long road to tread if it wants to come in the league of Sporting Superpowers like China and U.S. Let India borrow the strategy of winning credits in sports from its neighbour country where winning is everything. If the meltdown In Olympics continues we will have to part ourselves with the notion that we are going great guns and that ours is an engine that  is about to reach the station of a Super Powerdom.

Flying Low

The merger of Indian Airlines and Air India back in 2007 was not a very foreseeing move on the part of the then Aviation minister Mr Prafulla Patel. IA once the market leader in domestic routes in 2001 is now close to shutdown.

                                  The decision of purchase  of 110 odd aircrafts (Airbus 777 & 787) at the time of merger was a reciepie for disaster sinking the airlines in a debt of Rs 40,000 crores.The high pilot to aircraft ratio is the bone of contention between  the ICPA and IPG as the career graph of the pilots and co pilots is very much dependent on their flight on the newer aircrafts. But this is just the tip of the Iceberg.There is much more to it.      

                                   The most important feature of the metamorphosis of the merger should be the aligning of the firms in all its aspects majorly being its  Human Resources.The lack of Hr integration of the two fliers is the iceberg beneath.Also the variability in the salaries of the pilots of Air India Pilots and Pilots of Indian Airlines is a cause of the uproar.There being no standardised policies for hiring for rank and file.

                                   No underlying policy for promotion of the staff.Arrears stuck over long time periods,Uneven policies for training on the broad aircrafts and uneven deputation to the narrower ones all add up to employee dissatisfaction which gets reflected in the service at the flights thereby affecting the customer satisfaction.

                                   The other major issue was the sellout of the Ground Handler business. In India,Air India was the major ground handler in all major airports and the revenue earned from this was more than 1000 crores per annum.

                                   The Govt decision to bring in foreign players as joint venture of AI took away this revenue and was the worst decision.The AI management used this as a  tool to sell out the GH business to this joint venture along with its infrastructure.

So the whole fiasco is much more than the Strikes of the pilots and the debt to which the Airlines is falling prey ........To be continued...

 

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