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Indian delegation in China to explore business opportunities

New Delhi, Aug 2: Indian industry honchos are visiting China to explore investment and business opportunities, with special focus on steel, under the aegis of the Confederation of Indian Industry (CII).

A nine-member business delegation is visiting Beijing, Nanjing and Shanghai from July 31 to Aug 3 to interact with Chinese companies, identify new emerging technologies and interact with government officials to support the ongoing India-China Strategic Cooperative partnership.

"India-China bilateral trade reached about $25 billion in 2006. The trade missions have played an important role in achieving the trade targets set by the two governments. The business community of India is keen to identify the key opportunities to enhance business ties with the Chinese economy," CII said in a statement here Thursday.

The leading industry body also emphasised the need to promote India as a brand to propel bilateral trade and exports between the two countries.
 
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Indian New Age guru busts stress with breathing
by Penny MacRae
FRANCE24, France

Dozens of people are crammed into a small room, lying on the floor and breathing in rhythm to the loud whooshing sounds coming from the mouth of India's leading New Age guru, Sri Sri Ravi Shankar.

The eager crowd is learning a stress-busting technique that the perpetually smiling Shankar -- dubbed by one Indian magazine as the "fastest-growing guru in the marketplace of happiness" -- says he discovered meditating 26 years ago.

"Stress makes the vision narrow -- it doesn’t allow you to think clearly or take the big decisions," Shankar, the founder of India's Art of Living movement, tells AFP in an interview.

"And, of course, you can’t be happy," he adds.

With India's economy booming, Shankar and other New Age gurus have become increasingly sought after as overworked Indians seek new ways to cope with the pressures created by their materialistic lifestyles.

"Many people who come to us suffer from stress overload. They live pressure cooker lives. They need a way to decompress," says Sanjiv Kakar, programme director for the movement, which offers courses tailor-made for executives.

The telegenic Shankar hopscotches around the world to help out stressed-out A-listers. He once spoke at the ultra-exclusive World Economic Forum in Davos, where political leaders rub shoulders with the elite of the business world.

He says his programme of short, medium and long breaths has been taught in 145 countries to at least 20 million people over the past quarter century.

Shankar -- a student of Maharishi Mahesh Yogi, who famously taught "transcendental meditation" to the Beatles in the late 1960s -- says his goal is to make the world happier by showing people how to breathe properly.

He calls breathing "the forgotten secret of life" that can bring inner peace.

"For every emotion there's a corresponding breath, so when you're angry you have short fast breaths and when you're happy you take long deep breaths," he explains. "By breathing in certain rhythms we release negative emotions."

-- Breathe to stay young --

The guru, who tacked on the second honorific Sri to his name to distinguish himself from the Indian sitar master Sri Ravi Shankar, also says his breathing programme "keeps you young."

"Don't I look young?" Shankar, 51, asks executives at a retreat outside the capital New Delhi with an impish giggle that punctuates most of his sentences.

Indeed Shankar -- the prototype of a guru with white robes, shoulder length black locks and black beard -- looks in fine form for someone who says he gets by on just three hours of sleep a night.

Critics accuse him of offering nothing but Bobby McFerrin-style "don't worry, be happy" platitudes.

But he has nevertheless developed a big following among India's upper crust -- liquor baron Vijay Mallya and former Miss Universe Lara Dutta are fans -- with his laid-back message that people do not have to be poor to be spiritual.

While critics also label him "guru to the rich and famous," Shankar defends the right of the wealthy to inner peace.

"The Indian system does not say you have to take a vow of poverty to be spiritual. It is interesting to see that in the West, the basic ingredient of spirituality is to take a vow of poverty," Shankar says.

Renuka Narayanan, religion editor of India's Hindustan Times newspaper, says the Art of Living's "basic product is about peddling yoga," labelling Shankar as "syrupy but genuine".

"What's not to like about yoga?" she says. "It's all about breathing right, replenishing supplies of oxygen, feeling better about life."

Followers say the movement is about more than just tension-releasing lessons -- it is also about community service.

"Our spirituality is functional," says Shankar, who this year travelled to war-torn Iraq to impart his breathing technique.

Many people who do the course later work as Art of Living volunteers, the movement says.

-- Breathe out trauma --

"We teach people whose lives have been torn apart by natural disasters and wars to breathe out their trauma," says Kakar, the programme director.

Volunteers like Kakar have taught Shankar's techniques to survivors of the devastating 2004 Asian tsunami. Indian soldiers fighting Islamic militants in Kashmir learn the breathing as part of an army bid to cut stress in the ranks.

Art of Living teams also lead convicts in breathing courses at prisons in India, Canada, the United States and elsewhere. And at India's premier state-run medical facility, the All-India Institute of Medicine, the course is used to help drug addicts in rehab.

"We find addicts who do the course have higher motivation to recover," says psychiatrist Anju Bhawan.

Shankar is a devout Hindu, but he insists the movement is secular.

"The spirituality or common values are the same in every religion -- religion is like the banana skin and spirituality is the banana," he chuckles.

The group, headquartered in a massive wedding cake-style building near the southern city of Bangalore, says it is funded by course fees and donations. It costs 37 dollars to do a course in India and several hundred dollars abroad.

"You can't do charity out of an empty bowl. We do programmes, we earn money and we spend it on charity," said Kakar.

Many practitioners say Shankar's programme changed their lives.

"It brought me a lot of inner peace," says Ajay Bagga, 38, chief executive of Lotus Asset Management in Mumbai. "I'd been a very aggressive, task-oriented manager, and then I became a much more humane kind of boss."

Shankar shrugs off his worldwide fame, but an adoring personality cult has nevertheless developed around him. Followers call him "His Holiness."

The guru, whose middle class parents were keen for him to be a bank manager, says he knew early on that he wanted to lead a spiritual life. He displayed a precocious ability to master the Hindu scriptures as a child, followers say.

"I would bunk the sports class and come home early. I would go to play football, and looking at my feet, I would say, 'these feet are going to be worshipped, they cannot kick anybody, let alone an inanimate ball'," he says.

Shankar may not have been an athlete in his youth, but he insists he never wants to grow up -- and thinks his breathing and meditation techniques will help him do that.

"I am just a child. I am no different from any one of you. Everyone has a childlikeness in them," he says, again with his signature giggle
 
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The empire Strikes Back
Telegraph, UK
Last Updated: 12:01am BST 03/08/2007

From Raj to riches: as India celebrates 60 years of independence, acclaimed historian William Dalrymple salutes a country returning to its pre-colonial wealth

When I moved back to India with my family four years ago, I took a lease on a farmhouse five kilometres from the boom town of Gurgaon on the south-western edge of Delhi. From my road I could see in the distance the rings of new housing estates, full of call centres, software companies and fancy apartment blocks, all rapidly rising on land that only two years earlier was billowing winter wheat.

The first time I lived in Delhi, in the late 1980s, Gurgaon was a semi-rural Haryana market town, with a single large Maruti car plant to one side; it was home to no more than 100,000 people.

Now it had become a city of several million; some said three million, some said more - the speed of growth was so enormous that it was difficult to obtain accurate figures. Either way, Gurgaon was now home to a population almost equal to that of my native Scotland.

Here an increasingly wealthy middle class had suddenly taken root in an aspirational bubble of fast-rising shopping malls, espresso bars, restaurants and multiplexes. These new neighbourhoods, most of them still half-built and ringed with scaffolding, were invariably given such unrealistically enticing names as Beverly Hills, Windsor Court, West End Heights - an indication, perhaps, of where their owners would prefer to be and where, in time, they might eventually migrate.

Four years later, Gurgaon has galloped towards us at such a speed that it now abuts the edge of our farm and the proudly-touted "largest mall in Asia" is arising a quarter of a mile from my house.

What was farmland and a pool for water buffaloes when I moved in is now a mass of cranes, flanked by billboards advertising the latest laptops and iPods. There are still no accurate figures but the population has probably topped five million.

The speed of the development of Gurgaon is breathtaking to anyone used to the plodding growth rates of western Europe: the sort of construction that would take 25 years in Britain comes up here in five months, even if, at the end of it, the "luxury" flats will probably only have electricity for a couple of hours a day and the water supply will be intermittent at best.

The speed of change in Gurgaon reflects that of the growth of the Indian economy in general: economic futurologists all agree that China and India will at some stage in the 21st century come to dominate the global economy.

The various intelligence agencies estimate that China will overtake America between 2030 and 2040, while India will overtake the US by roughly 2050, as measured in dollar terms. Measured by purchasing-power parity, India is already on the verge of overtaking Japan to become the third largest economy in the world.

Incredibly, India now trains a million engineering graduates a year (against 100,000 each in America and Europe) and stands third in technical and scientific capacity - behind the US and Japan, but well ahead of China.

Today India's IT sector alone annually earns the vast sum of almost $25 billion, mostly in export earnings. With an average growth rate over the last decade of 6 per cent and current growth of 9 per cent, it is little wonder that average incomes are doubling every 15 years: the number of mobile-phone users has jumped from 3 million in 2000 to 100 million in 2005; the number of television channels from one in 1991 to more than 150 last year.

It is a similar picture on India's roads: in the early 1990s, as India was starting to relax import and investment restrictions on foreign manufacturers, there were only six or seven makes of car.

More than 90 per cent of them were Hindustan Ambassadors, the Indian- made version of the 1950s Morris Oxford - effectively clumpy vintage cars. Now the new six-lane highways are full of sleek and speedy Fiats, Fords, Mercedes-Benz and even the odd Porsche and Bentley.

So extraordinary is all this to us today, particularly to those who knew the sluggish India of 20 years ago, that it is easy to forget how little of it would have surprised our ancestors who sailed there with the East India Company. The idea of India as a poor country is relatively recent: historically, South Asia was always famous as the richest region of the globe, whose fertile soils gave two harvests a year, and whose mines groaned with minerals.

Ever since Alexander the Great first penetrated the Hindu Kush, Europeans fantasised about the wealth of these lands, where the Greek geographers said that gold was dug up by gigantic ants and guarded by griffins, and where precious jewels lay scattered on the ground like dust.

In Roman times, there was a dramatic drain of Western gold to India. This is something the Greek historian Strabo comments on with great anxiety in his writings - an image graphically confirmed by the recent finds of huge Roman coin hoards around Madurai in Tamil Nadu and a large Roman coastal trading post near Pondicherry.

At the peak of the trade, during the reign of Nero, the south Indian Pandyan Kings even sent an embassy to Rome to discuss the latter's balance of payments problems. Even today, the English "pepper" and "ginger" are loan words from Tamil - respectively, pippali and singabera, testaments to the spice trade that was once a staple of this lucrative Indian export traffic.

It was similar legends of India's extraordinary wealth that drew the merchant adventurers of the Company eastwards. They came not as part of some Tudor aid project, or on behalf of a charitable Elizabethan NGO, but as part of a desperate effort to cash in on the vast riches of the fabled Mughal Empire, then one of the two wealthiest polities in the world.

What the Poles are to modern Britain - economic migrants in search of better lives - the Jacobeans were to Mughal India.

At their heights, the Mughal Emperors were really rivalled only by their Ming counterparts in China. The Great Mughals ruled over most of India, all of Pakistan and Bangladesh and great chunks of Afghanistan.

Their armies were all but invincible, their palaces unparalleled and the domes of their many mosques glittered with gold. For their contemporaries in distant Europe, they were potent symbols of power and wealth. The word Mughal (or Mogul) is still loaded today with connotations of this, even when it is divorced from its original Indian context.

In Milton's Paradise Lost, for example, the great Mughal cities of Agra and Lahore are revealed to Adam after the Fall as future wonders of God's creation. This was hardly an understatement: by the 17th century, Lahore had grown larger and richer even than Constantinople and, with its two million inhabitants, dwarfed both London and Paris.

"The city is second to none either in Asia or in Europe," said Portuguese Jesuit Father Antonio Monserrate, "with regards either to size, population, or wealth. It is crowded with merchants, who foregather there from all over Asia. There is no art or craft useful to human life which is not practised there. The citadel alone has a circumference of three miles."

It was, in terms of rapid growth, instant prosperity and unlimited opportunities, the Gurgaon of its day.

What changed all this was quite simply the advent of European colonialism. Following Vasco da Gama's discovery of the sea route to the East in 1498, bypassing the Middle East and conquering the centres of spice production in South Asia, European colonial traders - first the Portuguese, then the Dutch and finally the British - slowly wrecked the old trading network and imposed with their cannons and caravels a western imperial system of command economics.

It was only at the very end of the 18th century that Europe, for the first time in history, had a favourable balance of trade with Asia. At the same time, the era of Indian economic decline had begun and was most precipitous in the region around the British headquarters in Calcutta.

As the 18th century historian Alexander Dow put it: "Bengal was one of the richest, most populous and best cultivated kingdoms in the world… We may date the commencement of decline from the day on which Bengal fell under the dominion of foreigners."

This was certainly the view of Edmund Burke, who impeached Warren Hastings, India's first Governor General, charging him with oppression, corruption, gross abuse of power and ruthlessly plundering India.

On February 13, 1788, huge crowds gathered outside Parliament to witness the members of the House of Lords troop into Westminster Hall to sit in judgement on Hastings.

Tickets for the few seats reserved for spectators were said to have changed hands for as much as £50. In the audience was Sarah Siddons, the great society actress (and courtesan), as well as Edward Gibbon, Joshua Reynolds, the novelist Fanny Burney, the Queen, two of her daughters and most of the ambassadors in London.

For all the theatre of the occasion - and, indeed, one of the prosecutors was the playwright Richard Sheridan - this was not just the greatest political spectacle in the age of George III. It was the nearest the British ever got to putting the Empire on trial and they did so with Edmund Burke, one of their greatest orators, at the helm, supported by the similarly eloquent Charles James Fox.

Hastings stood accused of nothing less than the rape of India - or as Burke put it in his opening speech: "Cruelties unheard of and devastations almost without name… crimes which have their rise in the wicked dispositions of men, in avarice, rapacity, pride, cruelty, malignity, haughtiness, insolence - in short everything that manifests a heart blackened to the very blackest; a heart dyed in blackness; a heart gangrened to the core… We have brought before you the head, the captain general of iniquity - one in whom all the fraud, all the tyranny of India are embodied."

When Burke began to describe the violation of Bengali virgins and their mothers by the rapacious tax collectors the British employed - "They were dragged out, naked and exposed to the public view, and scourged before all the people… they put the nipples of the women into the sharp edges of split bamboos and tore them from their bodies" - Mrs Sheridan "was so overpowered that she fainted and to be carried from the hall".

Hastings was in many ways the wrong target for Burke's Parliamentary offensive and, after a trial lasting nearly 10 years, he was eventually acquitted on all charges.

But it is worth recalling the damage that the Company undoubtedly did to the flourishing economy of India as the 60th anniversary of Indian Independence dawns amid unprecedented excitement at India's rapid rise towards its projected superpower status.

Today, academics, historians and economists are fiercely divided between those who believe European colonial rule brought great benefits to India and those who believe Britain put India into irreversible political and economic decline.

Given the complex and emotive issues involved, it is hardly surprising that there is little neutral territory in this politically super-charged debate: did Western mercantile-imperialism bring high capitalism and free trade to India, as supporters such as historian Niall Ferguson would have us believe; or did it irrevocably destroy millennia-old trading networks?

Did it bring democracy to a part of the world inured to despotism and tyranny; or did it remove political freedom of expression from lands with long traditions of debate and public expression of dissent, as argued by the Nobel Prize winner Amartya Sen?

Did the British Empire bring in constitutional guarantees of the freedom of the individual; or promote slavery, exploitation, indentured labour and forced migration? Did the British bring just governance and irrigate the deserts, or did they plunder natural resources, drive a number of species to extinction and preside over a succession of famines that left many million dead while surplus grain was being shipped to Britain?

Most important of all, did the British promote religious tolerance, or did they instead sow the seeds of religious conflict with cynical policies of sectarian divide and rule - thus laying the scene for the politico-religious divisions we see around us and what Bernard Lewis and Samuel Huntingdon would have us believe are today's civilisational clashes?

There are no easy answers to any of these questions. Looking back at the role the Europeans have played in South Asia until their departure in August 1947, there is certainly much that the West can unambiguously be said to have contributed to Indian life: the Portuguese, for example, brought that central staple of Indian life, the chilli pepper; while the British brought that other essential staple, tea, as well as the far more important innovations of democracy and the rule of law, along with the railways, all of which have helped India rise again to greatness.

In the light of so much post-colonial disapproval, it is also worth remembering the impeccable reputation Victorian rule in India (if not that of the Company) once enjoyed, even from Britain's fiercest critics.

Bismarck thought Britain's work in India would be "one of its lasting monuments". Theodore Roosevelt agreed that Britain had done "such marvellous things in India" that they might "transform the Indian population… in government and culture, and thus leave [their] impress as Rome did hers on Europe".

The French traveller Abbé Dubois extolled the "uprightness of character, education and ability" of British officials in India, while the Austrian Baron Hübner ascribed the "miracles" of British rule to its administrators' "devotion, intelligence, courage, and skill combined with an integrity proof against all temptation".

It is also true that factors such as cricket and the English language have been crucial to India's modern success, cultural indicators that in their different ways set Indian eyes looking westwards to the rising power of Britain, and later the US, and away from the declining Islamo-Persianate culture of Central Asia and the Middle East, a world that would go into ever greater cultural and economic decline as the 19th century gave way to the 20th.

In the days that followed the fall of the Mughals after the great Indian Mutiny of 1857, this turning away from the old cultural moorings and the reorientation of India towards the West caused heartbreak to the old Urdu- and Persian-speaking elites.

As the poet and critic Azad wrote: "The glory of the winners' ascendant fortune gives everything of theirs - even their dress, their gait, their conversation - a radiance that makes them desirable. And people do not merely adopt them, but they are proud to adopt them."

Yet it was the depth of that reorientation and adoption, and the ease which Indians can now cross the globe and work in either Britain or the US, that today has given the country's anglicised elite such easy access to the jobs and opportunities of the Western economy.

Nevertheless, for all this we British should keep our nostalgia and self-congratulation over the Raj within strict limits. For all the irrigation projects, the great engineering achievements and the famous imperviousness to bribes of the officers of the Indian Civil Service, the Raj nevertheless presided over the destruction of Indian political, cultural and artistic self-confidence, while the economic figures speak for themselves.

In 1600, when the East India Company was founded, Britain was generating 1.8 per cent of the world's GDP, while India was producing 22.5 per cent. By 1870, at the peak of the Raj, Britain was generating 9.1 per cent, while India had been reduced for the first time to the epitome of a Third World nation, a symbol across the globe of famine, poverty and deprivation.

Today in India, the dramatic increase in wealth that we see on all sides is less some sort of economic miracle - the strange rise of a once impoverished wasteland, as it is usually depicted in the Western press - so much as things slowly returning to the traditional pattern of global trade in the pre-colonial world. Last year, the richest man in the UK was for the first time an ethnic Indian, Lakshmi Mittal, and our largest steel manufacturer, Corus, has been bought by an Indian company, Tata.

Extraordinary as it is, seen from the wider perspective the rise of India and China is merely nothing more than a return to the ancient equilibrium of world trade. Today, we Europeans are no longer the gun-toting, gunboat-riding colonial masters we once were, but instead are reverting to our more traditional role: that of eager consumers of the much celebrated luxuries and services of the East.

William Dalrymple's new book, The Last Mughal: The Fall of a Dynasty, Delhi 1857, published by Bloomsbury, has just been awarded the Duff Cooper Prize for History.
 
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Indian American Democrats Discuss Strategies to Raise Community's National Political Clout
Earthtimes.org
Thu, 02 Aug 2007 23:17:54 GMT

WASHINGTON, Aug. 2 /PRNewswire-USNewswire/ -- The Indian American Leadership Initiative (IALI) will host the first Indian American Democratic Dialogue (Dialogue) at the Center for Strategic and International Studies (CSIS) on Friday, August 3, and Saturday, August 4. This path-breaking conference marks the first time that Indian-American Democratic elected officials, candidates, political appointees, policymakers, consultants, and fundraisers have gathered to discuss politics and policy. Among the expected topic of discussions are the Hindu prayer incident, nuclear deal, outsourcing, and "Macaca" slur from the United States Senate race in Virginia.

Founded in 2001, IALI is a non-federal 527 that seeks to connect, promote, and invest in Indian American Democrats. For more information, visit http://www.ialeadership.com/. The Indian-American community is one of the fastest-growing, wealthiest, and best-educated immigrant groups in the United States. There are 42,000 Indian-American physicians. Over fifteen percent of Silicon Valley's start-up firms are owned by Indian-Americans. And, Indian- Americans own half of the economy lodge sector and thirty-seven percent of all hotels.

EVENT HIGHLIGHTS Friday, August 3 8:45 a.m. Sen. Robert Menendez (D-NJ), Rep. Frank Pallone (D-NJ), Rep. Joseph Crowley (D-NY), and Rep. Nick Lampson deliver opening remarks. 9:30 a.m. Sen. Harry Reid's national security advisor Rich Verma, USINPAC founder Sanjay Puri; and House Committee on Foreign Affairs staff member Manpreet Singh Anand discuss U.S.-India foreign policy issues. 11 a.m. Long Beach City Council Member Suja Lowenthal, District of Columbia Chief Technology Officer Vivek Kundra and Assistant to the New York City Human Resource Commissioner Udai Tambar discuss Indian American local issues. 12:15 p.m. Georgetown University Law Center professor Neal Katyal delivers keynote address 1:30 p.m. House of Delegates Majority Leader Kumar Barve (D-MD) and State Rep. Swati Dandekar (D-IA) discuss Indian Americans and state legislative issues. 2:45 p.m. South Asian American Leaders for Tomorrow executive director Deepa Iyer, National Federation of Indian-Americans President Rajen Anand, Indian American Political Forum for Education President Ravi Sakhuja, Association of American Physicians from India Vice President Vinod Shah, and Immigration Voice Vice President Sivakanth Mundru discuss Indian-American grassroots mobilization efforts 4:15 p.m. New Jersey Transportation Secretary Kris Kolluri, Virginia. Technology Secretary Aneesh Chopra, and former New York Solicitor General Preeta Bansal discuss policy trends affecting Indian Americans. Saturday, August 4 9:30 a.m. DGA communications director Mona Mohib, DCCC Indo-American Council Chair Ro Khanna, Indian-American Forum for Political Education President-Elect Yogi Chugh and Campaign for America's Future communications director Toby Chaudhuri discuss the Indian American community and Democratic politics. 11 a.m. State Rep. Raj Goyle (D-KS), State Rep. Jay Goyal (D-OH), DGA political director Raghu Devaguptapu, former Ohio Attorney General candidate Subodh Chandra, former Georgia Secretary of State candidate Shyam Reddy and former Arizona State Treasurer candidate Rano Singh discuss running for state office. 1:30 p.m. India Abroad editor Aziz Haniffa, ABC Digital News Producer Nitya Venkataraman, and Sepia Mutiny blogger Anna John discuss media coverage of Indian American politics. 3 p.m. DNC Indo-American Leadership Council co-chair Shekar Narasimhan, DNC At-Large Member Kamil Hasan, Hillary Clinton for President fundraiser Reshma Saujani, John Kerry finance committee member Samir Desai, and John Edwards for President finance committee member Shi Shailendra discuss fundraising for candidates and the Democratic Party. 4:45 p.m. KPMG Federal Relations director Priya Dayananda, Mammen Group president Anil Mammen, Monument Group Principal Kathy Kulkarni, Dewey Square Group Associate Anu Rangappa and The Bonner Group Vice President Bhavna Pandit discuss policy issues facing Indian Americans from the lobbyist and political consultant perspective. Indian American Leadership Initiative.
 
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A Young Giant Awakes
TIME
By Simon Robinson

Political slogans often outpace reality. when rajiv gandhi was campaigning in the late 1980s, he liked to say "Mera Bharat Mahan [My India is Great]." A TV advertisement put the phrase to a catchy tune. But few Indians had TVs in those days and while millions appreciated the sentiment, not all believed it.

It makes more sense now. Sixty years after independence, India is beginning to deliver on its promise. Over the past few years the world's biggest and rowdiest democracy has matched its political freedoms with economic ones, unleashing a torrent of growth and wealth creation that is transforming the lives of millions. India's economic clout is beginning to make itself felt on the international stage, as the nation retakes the place it held as a global-trade giant long before colonial powers ever arrived there. That success may yet act as an encouragement to Pakistan and Bangladesh, still struggling to overcome longstanding questions around Islam's role in their societies. Despite its current political turmoil, Pakistan's economy, too, has boomed over the past few years, and Bangladeshis hope that if the current military-backed government can sort out its mess of corruption, the country can soon return to democracy and a re-energized economy.

The challenges facing the subcontinent, of course, are enormous. Indian infants are more likely to be malnourished than African ones, infrastructure is straining to keep up with the economic boom, while corruption, discrimination, religious violence, child labor, bad schools and pollution persist. When the economy tightens or when tensions with Pakistan threaten war, a new slogan appears on India's auto-rickshaws: "Mera Bharat Pareshan [My India is Troubled]."

But none of this means that the country's massive shift is an illusion. Twenty years ago the rest of the world saw India as a pauper. Now it is just as famous for its software engineers, Bollywood movie stars, literary giants and steel magnates. Photographer Prashant Panjiar, who took the photos for the following story on the Malhotra family, has detected a new confidence in the past few years. "A lot of people are still poor but there is a sense of purpose now," he says. "That old Indian fatalism has gone." Indeed, these days a new slogan has appeared on the back of the auto-rickshaws, a simple statement that captures the excitement and promise palpable in many parts of the country. "Mera Bharat Jawan," it reads: "My India is Young."
 
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The Real Estate Mogul Leading India's Charge
TIME
By SIMON ROBINSON/NEW DELHI

From the window of his ninth-floor office, Kushal Pal Singh looks down over New Delhi's Jantar Mantar, an elaborate astronomical observatory built by a far-sighted 18th century Hindu ruler renowned for his diplomacy and the monuments he left behind. The stone curves and pillars of the observatory worked in conjunction with its massive sundial to create one of the most reliable and accurate scientific instruments of the day, allowing astronomers to measure time, forecast eclipses and determine the positions of stars and planets. The Jantar Mantar "gave me inspiration," says Singh, the chairman of DLF, India's largest real estate company. "And the inspiration was that if this guy who conceived and made the Jantar Mantar centuries ago could be a forward-looking man, why is it that we can't be forward looking in our development and start to do something ahead of the time?"

If you listen to Singh tell it, DLF is doing just that. Barely known outside its north Indian base a few years ago, the company is building houses, apartments, office towers and shopping malls across India. It has plans for airports, hotels and cinemas. Singh, 75, doesn't just want to cash in on India's economic boom, he wants to be a prime mover in the country's drive to erect modern cities where India's new middle class can live, work, shop and play. To do all that, though, DLF needs a lot more money, which is why on July 5 the company listed on the Bombay and National stock exchanges. An initial public offering for just over 10% of the company closed in mid-June and brought in some $2.24 billion. In the three weeks after it listed, DLF's shares rose nearly 9%, giving it a market capitalization of $24.5 billion — roughly $3 billion more than General Motors. The IPO, which was about twice the size of India's previous biggest, netted Singh and several family members, who together hold 87% of DLF, nearly $20 billion — enough to make them one of the richest clans in the world. "Frankly that is embarrassing to me," Singh says. "That is not the yardstick by which I want to be known. I feel proud that what I championed 25 years back has blossomed into something good for the country. That is what I want to be known for."

Whether he likes it or not, the fortune Singh has amassed is bound to attract attention. DLF is, after all, the hottest property developer in one of the hottest markets in the world. India's economy has grown at an average annual rate of more than 8% over the past four years, bestowing prosperity upon millions of Indians and boosting demand for houses, offices, megamalls and hotels. Real estate prices have skyrocketed. A 2006 study by the Federation of Indian Chambers of Commerce and Industry and professional-services firm Ernst & Young found that total revenue from sales of commercial and residential property throughout India had grown 30% a year for the previous three years. Land prices in some areas have tripled in value since 2004, while office rents in Mumbai and New Delhi are now more expensive than those in Paris, Hong Kong or midtown Manhattan, according to a 2007 survey by real estate consultant CB Richard Ellis. Yet the boom may still have room to run. Merrill Lynch forecasts India's property industry will grow to $90 billion by 2015, up from $12 billion in 2005.

During an interview in late May, Singh, who is widely known simply by his initials, K.P., espouses a similarly optimistic view. "As prosperity comes through I see massive opportunities," he says. "You will need 100 DLFs, there will be so much work." DLF, though, has a big head start on the rest of the industry, thanks largely to Singh. The amiable septuagenarian, who this day is dressed in a white suit with a polka-dot handkerchief poking from his breast pocket, recalls how prescient strategy — and a stroke of luck — turned DLF into a property powerhouse. Founded by Singh's father-in-law, Chaudhury Raghuvendra Singh, DLF (originally Delhi Land & Finance) got started in 1946, a year before India won its freedom from Britain. A former civil servant, Raghuvendra bet that hundreds of thousands of refugees, who were expected to settle in India's capital when partition split Hindu and Muslim India, would need places to live. He convinced farmers around New Delhi to hand over their land on the promise of future payment, borrowed money to develop residential neighborhoods and then sold at considerable profit to the influx of newcomers.

But the good times ended in 1957 when New Delhi's socialist government granted itself sole development rights for the city, forcing private firms out of the business. By then, K.P. Singh had married into the family and would soon join his father-in-law's firm. The son of landlords himself, K.P. had studied science and then moved to Britain to train in aeronautical engineering before returning home as an officer in the Indian army. Military life was tough and family legend has it that Singh planned to return to his engineering studies in London when he was dragged before a colonel who had learned of his intentions. "You can leave," the senior officer told him, "but you will always be known as the coward who ran away." Singh stayed, serving in the Deccan Horse, a celebrated cavalry regiment, in the early 1950s, and learned the discipline that he says would help him in business years later.

By the time he joined DLF in 1960, real estate development work had dried up completely. Instead, the company tied up with two U.S. firms to manufacture electric motors and automotive batteries. Although the battery joint venture eventually foundered, Singh says he learned a lot about American management techniques during the period. By 1980, he had hit upon a new scheme that would eventually help transform India. "I was hungry," he says now. "And the best things in life are done when you are hungry for more business."

Singh's plan centered on Gurgaon, a dry, scrubby plain in the state of Haryana, just across the border from New Delhi. If he could buy enough land and then convince authorities to change their regulations, perhaps he could outdo his father-in-law's success in New Delhi. By 1981, though, the company had acquired just 40 acres. Singh had failed to persuade the state government to change a law preventing companies from acquiring farmland for commercial use. Frustrated and despondent, he sat beside a well one scorching summer day. "What the heck can you do in this place?" he recalls asking himself.

That was when the driver of an overheating four-wheel drive stopped to request some water. The supplicant was Rajiv Gandhi, son of Prime Minister Indira Gandhi and soon to be India's leader himself. "Rajiv Gandhi was like a ray of hope for India," says Singh, who hit it off with the political scion and was later repaid for his water when Gandhi pushed the Haryana state government to ease commercial-development restrictions on farmland. "It didn't take me any time to convince him, frankly," Singh says. "We found that we were on the same wavelength very quickly." Their two-hour conversation that day as Gandhi's car cooled, says Singh, was "the birth of the entire urban-development policy of India today."

Over the next two decades, as economic regulations were slowly liberalized, DLF amassed 3,500 acres in Gurgaon and began building some of India's first modern commercial structures, including offices for General Electric and, more recently, for Swedish cell-phone maker Ericsson and Swiss food giant Nestlé. The company also built luxury apartments and houses, including one residential estate incorporating an 18-hole golf course designed by golfing legend Arnold Palmer. Land that cost Singh as little as $65 an acre at current exchange rates now sells for about $4 million an acre. Meeting Gandhi "was lucky in one way," says Singh now. "But it wasn't only luck. It gave me an opportunity to fight."

Singh has also had some pretty good advisers in his corner. Former General Electric CEO Jack Welch became a fan after the DLF chief helped set up Welch's first visit to India in the 1980s. In his autobiography, Welch wrote that Singh — whom he described as "tall, natty and aristocratic" — and his friends "showed us an India and a people that we loved. We saw all kinds of opportunities there." Singh later became a GE adviser. "I learned a lot from Jack Welch about how to run a business," he says.

In the run-up to its IPO, DLF has been on another buying spree. Holdings in 31 cities now have the potential for 570 million sq. ft. (53 million sq m) of development, according to the company — more than double the amount that DLF has completed over the past few decades. The company likes to think big. Last year DLF began work on the Mall of India in Gurgaon, which will be one of the five biggest shopping complexes in the world. It has just opened a new technology park in Chennai; tenants include Symantec and IBM. In recent years, it has tied up with a host of foreign companies to develop airports (in partnership with Fraport AG, owner and operator of Frankfurt Airport), hotels (Hilton), and industrial estates and urban hubs (Dubai-based developers Nakheel). "Our collaborations are all with the very best from abroad," says DLF's energetic group executive director Rajeev Talwar. "We want to bring global best practices to India."

Over the past few years, Singh has handed over much of the day-to-day running of DLF to his son and DLF vice-chairman Rajiv Singh, 48, who studied engineering at Massachusetts Institute of Technology (the younger Singh declined requests to be interviewed for this story). Daughter Pia, 36, a Wharton economics graduate, runs the company's retail business. Older sister Renuka handles some international business. K.P. says he plans to slowly step away from DLF to concentrate on his golf (handicap: 14), collect more art (DLF owns one of the biggest private collections in the country) and travel (Singh is the Honorary Consul General of Monaco and holidays in London regularly). "He's a perfectionist who will move heaven and hell if he wants something," says Pia, who recalls watching her father take over a hospital ward after her mother was badly injured in a helicopter accident that killed four other people. "He managed her case how he ran the business. He literally gave up everything for two years."

DLF, which obviously remains a family-run operation, will need that kind of focus to successfully execute its ambitious agenda amid growing scrutiny, a by-product of going public. Some analysts say DLF, like the Indian property market itself, isn't transparent enough. There are questions surrounding the true value of DLF's recent land acquisitions, in part because 35% of the land on its books is not owned but under "agreement to purchase," according to IPO documents. In a pre-IPO report, Sydney-based Macquarie Research also criticized the fact that more than half of DLF's land is in New Delhi, Gurgaon and Mumbai, cities that some analysts believe will lag growth in smaller centers over the coming few years — a view rejected by DLF management. "These guys are perhaps not used to aggressiveness in business development," says Singh.

The biggest threat, though, remains an outside shock, especially a crash in the property or stock markets. When U.S. property and media tycoon Sam Zell visited India in April, he told local real estate executives that they were "on the brink of excess" and that the boom could end in a bust. Indeed, the past few months have been shaky ones. Real estate stocks plunged as much as 50% in a general market sell-off last spring, while property prices have fallen by 20% or so in some areas in the past six months. Both the government and the Reserve Bank of India are trying to cool the real estate sector without crashing it. The RBI has cautioned banks against excessive lending for property deals and has raised interest rates six times in the past 18 months to try to rein in inflation, which peaked at almost 7% in March. The Securities and Exchange Board, meanwhile, has tightened up regulations on foreigners investing in real estate firms ahead of public listings. All that has made it harder and more expensive for Indian builders to raise money.

Considering the challenges, it's hard to see how DLF's spectacular growth rate can be sustained for long. In its fiscal year that ended March 31, 2007, DLF reported that its profit grew by more than 1,000% to $470 million, while sales tripled to just under $1 billion. That record is fully reflected in the stock price, says Mukesh Agarwal, a manager at Indian financial-services firm HDFC Securities. "Since we have already had a stupendous run-up over the past two years, prices have been fully factored in," says Agarwal. "The upside may be limited."

Singh doesn't see it that way. "Urban development in India ... will be the biggest sunrise industry that any country has seen in any part of the world," he says. "And this is going to be a long haul, not three or four years but 20 years or more." The trend is being driven by macro forces, such as the country's demographics, that aren't usually taken into account by stock analysts, he says. Not only will India pass China as the most populous nation on the planet in a couple of decades, its citizens are a lot younger than its rival; one in three Indians is currently younger than 15. As the country becomes richer (with a little help from the strengthening rupee, India became a $1 trillion economy in late April) and more urban (the number of people living in cities will rise to 461 million by 2025 from 286 million today, according to the Asian Development Bank), demand for housing should go right on booming. Already India's Ministry of Housing and Urban Poverty Alleviation puts the shortage of homes at 25 million.

As its economy grows, India will need millions more square feet of offices as well. Industry analysts estimate India has less modern urban office space than a single large American city. India's infrastructure demands, too, should keep plenty of companies in business. The government estimates the country needs $320 billion of investments in roads, ports and bridges by 2012. "It's not a bubble," says Arjun Divecha, the California-based manager of investment firm GMO's $15 billion emerging-markets fund. "In India the reason why prices have risen so rapidly is because there has been so little increase in supply. If you look at the experience of other emerging markets, the real wealth escalator has been real estate and I expect the same in India."

So does Singh, who laments that in its first 60 years, India's philosophy was to "think small, make small buildings and never to think that we could make bigger things, better things." He pauses for a second, looking old when he stops, but animated and younger as soon as he begins talking again. "I ask you, why can't we be excellent?"
 
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India's Democratic Advantage
TIME
By ISHAAN THAROOR

At the height of Britain's empire in India, Rudyard Kipling famously declared, "Oh, East is East, and West is West, and never the twain shall meet." Kipling thought the cultural gap between the colonizers and the colonized was unbreachable, but India's sophisticated independence movement, uniting Oxbridge thinkers and mass protests, proved him wrong. To be sure, Kipling's axiom still echoes in India today — not for divides of geography, but class. Beneath the glitz of India's ebullient film industry or the sheen of chrome-and-glass IT centers, a vast, confusing and poor India lurches onward. It shares little with the country's jet-setting globalists, high-powered intellectuals or high-rolling industrialists. It knows more about enduring hardship than enhancing hardware. Yet, again in India, the twain do meet. Sixty years of freedom have bound all Indians, rich and poor, to a single commitment: democracy.

Visitors always seem to be astonished by the cacophony of the Indian street and the vibrant mix of ethnicities, cultures and religions that gives it life. With a sixth of humanity living within its borders, India is more linguistically diverse than Europe. But, apart from a few hiccups along the way, it remains one of the most stable and unified societies in all of Asia. "India has proven once and for all that countries which are poor and diverse can be democratic," says Rajeev Bhargava, director of the Centre for the Study of Developing Societies in New Delhi. "Now, the idea of India and democracy are inseparable."

The hurly-burly of India's politics is not for everyone. Elsewhere in Asia, many rulers have favored an orderly, sternly run society over a boisterous, democratic one. Taiwan, South Korea and Singapore all grew their economies while keeping politics under a short leash. Today, China, the Asian giant whose shadow looms largest over India, tightly monitors public opinion and swiftly quashes dissent. The Chinese leadership vaunts harmony over all else, and points to the hundreds of millions it lifted out of poverty in just two decades as a vindication of its development-first policies.

It's an argument not easily dismissed. Even the fiercest supporters of Indian democracy cannot ignore its dark underbelly. May's elections in the state of Uttar Pradesh — India's most populous — saw dozens of candidates run despite holding criminal records; at least six even coordinated their campaigns using mobile phones while detained in prison. It's one thing if such behavior was an aberration, but, in India, this is par for the course. Corruption pervades all strata of society — Transparency International ranks India worse than countries like El Salvador and Bulgaria in the corruption stakes — mostly because the nation's bloated, unwieldy bureaucracies encourage it. And as graft stifles the poor, separatist insurgencies in Kashmir and the country's troubled northeast continue to simmer, asking tough questions of a nation that values popular sovereignty and self-determination.

But India perseveres nonetheless. "What's unique about Indian democracy," says Jay Panda, a young Member of Parliament from the eastern state of Orissa, "is that it has succeeded despite consistent predictions of its demise." Panda belongs to a regional party that leverages its seats in Parliament to ensure that his smaller state doesn't get the short end of the stick from federal policies. He sees himself as part of a "self-correcting mechanism" of the democratic system, which has, over time, learned how to accommodate diverse interests, enfranchise those on the margins and topple dynasts. In India, Panda believes, "the electorate is always the great leveler."

The May elections in Uttar Pradesh, though controversial, are a case in point. If the northern state were an independent country, it would boast the sixth largest population in the world. Its people, many impoverished, more than a few illiterate, went to the polls and voted the most unlikely of parties into power. The Bahujan Samaj Party was once a small, rural movement agitating for the rights of untouchables, or Dalits. This year, on a platform of social justice, it formed a coalition of candidates from across backgrounds of caste and creed and shunted aside the more established Congress Party and the Hindu nationalist BJP. "It was an important affirmation of Indian democracy," says Bhargava. "Through parliamentary elections, through group recognition, people who in other places would remain on the outside get co-opted. They realize that they have a stake in the process, that they have hope."

Indian democracy works because it welcomes everyone, identity politics and all, into its big tent — a habit that it developed during the years of its freedom struggle. At the turn of the 20th century, the Indian National Congress, a body led by mostly Western-educated Indian élites who spearheaded India's decolonization, was a broad umbrella organization composed of many different camps. According to Gowher Rizvi, lecturer in public policy and head of the Ash Institute for Democratic Governance at Harvard University, the debates and compromises thrashed out between independence leaders set the tone of the movement: "With this constant back and forth, Indian nationalism emerged hand in hand with a pledge to democracy."

A generation of extraordinary revolutionaries cemented this pledge. Homespun-clad Mahatma Gandhi planted the spirit of an inclusive, secular nationalism at the grass roots. India's first Prime Minister, Jawaharlal Nehru, and his contemporaries nurtured it following independence, building democratic institutions and a system of checks and balances that remain entrenched to this day, while neighbors Pakistan and later Bangladesh routinely threw out constitutions and fell under bouts of military rule.

That's why India's brief flirtation with authoritarianism was far less damaging than any junta-backed coup. Between 1975 and 1977, then Prime Minister Indira Gandhi imposed Emergency rule in order to curb mounting disorder sparked by mass political protests. The press was censored, hundreds were detained, and thousands of rural poor were forcibly sterilized under a campaign orchestrated by Gandhi's son, Sanjay. But what didn't kill Indian democracy made it stronger. "Every grown child needs chicken pox in order to become immune to it," says M.J. Akbar, editor in chief of both the Asian Age and Deccan Chronicle newspapers and a onetime MP. Gandhi called elections soon after the Emergency was lifted and irate Indian voters swiftly booted her government out the door.

The power and durability of the Indian ballot is significant, given that more than a few Asian governments claim liberal democracy to be an alien, Western invention. As a screen to justify top-down rule, the "Asian values" hypothesis suggests that human rights and universal suffrage matter less to Asians than attaining prosperity. But in the wake of the spectacular crash of numerous Asian markets in 1997, spurred by the cronyism of its regimes, Rizvi believes "there is not an iota of truth in that idea."

A trade-off between development and democracy can prove damaging. While China's economy soars, hundreds of millions of migrant workers and rural peasants have been left on the outside looking in. In India, says Rizvi, "growth may have been slow, but over a period of time it is more certain and sustainable because of its democracy." Some would dispute that assertion, but there's no arguing that economic policies and commercial decisions in India rope in a greater number of stakeholders than in many other places in Asia.

True, India, a noisy nation of over 1 billion voices, can't match the hyper-affluence of Singapore or China's titanic boom, but it shows that hearing those voices is the best long-term strategy. "Attila the Hun was great for his country's GDP also," says Akbar, "but the future of the world is not just about growth rates. It's about the principle of human equality." India is neither East nor West as Kipling saw it, but in its diversity and exuberance a reflection of something universal. It is, as Akbar concludes, "the first modern nation of the emerging world." A nation where, more than anything else, democracy rules.
 
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Why India's Rise is Business As Usual
TIME
By WILLIAM DALRYMPLE

The idea that india is a poor country is a relatively recent one. Historically, South Asia was always famous as the richest region of the globe. Ever since Alexander the Great first penetrated the Hindu Kush, Europeans fantasized about the wealth of these lands where the Greek geographers said that gold was dug by up by gigantic ants and guarded by griffins, and where precious jewels were said to lie scattered on the ground like dust.

At their heights during the 17th century, the subcontinent's fabled Mughal emperors were rivaled only by their Ming counterparts in China. For their contemporaries in distant Europe, they were potent symbols of power and wealth. In Milton's Paradise Lost, for example, the great Mughal cities of Agra and Lahore are revealed to Adam after the Fall as future wonders of God's creation. This was hardly an overstatement. By the 17th century, Lahore had grown even larger and richer than Constantinople and, with its two million inhabitants, dwarfed both London and Paris.

What changed was the advent of European colonialism. Following Vasco da Gama's discovery of the sea route to the East in 1498, European colonial traders — first the Portuguese, then the Dutch and finally the British — slowly wrecked the old trading network and imposed with their cannons and caravels a Western imperial system of command economics. It was only at the very end of the 18th century, after the East India Company began to cash in on the Mughal Empire's riches, that Europe had for the first time in history a favorable balance of trade with Asia. The era of Indian economic decline had begun, and it was precipitous. In 1600, when the East India Company was founded, Britain was generating 1.8% of the world's GDP, while India was producing 22.5%. By 1870, at the peak of the Raj, Britain was generating 9.1%, while India had been reduced for the first time to the epitome of a Third World nation, a symbol across the globe of famine, poverty and deprivation.

In hindsight, what is happening today with the rise of India and China is not some miraculous novelty — as it is usually depicted in the Western press — so much as a return to the traditional pattern of global trade in the medieval and ancient world, where gold drained from West to East in payment for silks and spices and all manner of luxuries undreamed of in the relatively primitive capitals of Europe.

It is worth remembering this as India aspires to superpower status. Economic futurologists all agree that China and India during the 21st century will come to dominate the global economy. Various intelligence agencies estimate that China will overtake the U.S. between 2030 and 2040 and India will overtake the U.S. by roughly 2050, as measured in dollar terms. Measured by purchasing-power parity, India is already on the verge of overtaking Japan to become the third largest economy in the world.

Looking back at the role Europeans have played in South Asia until their departure in August 1947, there is certainly much that the West can be said to have contributed to Indian life: the Portuguese brought the chili pepper, while the British brought that other essential staple, tea — as well as the arguably more important innovations including democracy and the rule of law, railways, cricket and the English language. All contributed to India's economic resurrection. But the British should keep their nostalgia and self-satisfaction surrounding the colonial period within strict limits. For all the irrigation projects, the great engineering achievements and the famous imperviousness to bribes of the officers of the Indian Civil Service, the Raj nevertheless presided over the destruction of India's political, cultural and artistic self-confidence as well as the impoverishment of the Indian economy.

Today, things are slowly returning to historical norms. Last year the richest man in the U.K. was for the first time an ethnic Indian, Lakshmi Mittal, and Britain's largest steel manufacturer, Corus, has been bought by an Indian company, Tata. Extraordinary as it is, the rise of India and China is nothing more than a return to the ancient equilibrium of world trade, with Europeans no longer appearing as gun-toting, gunboat-riding colonial masters but instead reverting to their traditional role: that of eager consumers of the much celebrated manufactures, luxuries and services of the East.
 
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From Partition to Prosperity: A Family's Journey
TIME
By SIMON ROBINSON/NEW DELHI

No single family perfectly captures the diversity of a country of more than a billion people, so when TIME set out to tell the story of India's first 60 years through the experiences of three generations, we had to make choices. Should we pick a rural clan, because India's masses live in villages, or city folk, because change is coming faster to urban India? What about a family living in one of the high-tech southern hubs of Bangalore or Chennai, or one from the teeming, poorer northern cities? In the end we settled on the Malhotras, a middle-class clan in New Delhi, because their experiences echo modern India's three ages: the joy and pain of independence; the era of stifling socialism; and the current burst of growth and optimism. The family history that follows tells how far India has come — and how far its people still wish to go.

In the months leading up to India's independence in August 1947, millions of people in villages and cities around the land prepared to mark the event with ceremonies and fireworks, speeches and parties. For those living along the religious fault lines that dissected the north of the country, though, the mood was more fearful than celebratory. Would the departing British colonial rulers partition the country — split it into separate Hindu and Muslim nations — before they handed over power? And if they did, where exactly would the new frontiers lie? In Lyallpur, the third largest city in the predominantly Muslim northwest, 21-year-old teacher Santosh Malhotra, a Hindu, was debating whether to move east to avoid getting stuck on the wrong side of a new border. Religious tensions were rising, stoked by historical grievances, demagogic politicians and a sense of chaotic urgency as the day of independence drew closer. Santosh's father, the son of a successful Punjabi trading family, was away at his job in the army. Her mother and her younger siblings had already left to stay with an uncle in New Delhi. With her in Lyallpur were her husband Devraj, a clerk at a cotton mill, and her charismatic older brother Ram Swarup, who said he would ride his beloved horse across the new border if things got too hot. "The situation was not clear for a long time," Santosh remembers now of that period. "We weren't sure what the future held."

One afternoon, about two months before independence, word came to Santosh that her brother was dead. To this day, the family believes Ram Swarup died after drinking milk poisoned by a Muslim extremist intent on driving out the Hindu community. "A Muslim bribed the Hindu shop owner to poison him," says Santosh. "It broke my heart." The following days were a blur: Santosh's father rushing home from his army job, her mother and uncle returning from New Delhi, her brother's funeral — and growing unrest in the streets after the British confirmed that Lyallpur would be part of the new nation of Pakistan. "We used to discuss freedom from the Britishers," she says. "But we were, to be honest, happy with the existing situation. Freedom, yes, but the changes upturned our lives."

Santosh's family, while not wealthy, had much to lose. Now 82, Santosh remembers growing up in Lyallpur with affection. "It was a very comfortable childhood," she says, sitting on her bed in New Delhi, a fan slicing slowly through the thick summer air. "We played outside in the streets with no worries." Her father's family traded foodstuffs — wheat, lentils, sugar — and owned property in one of the city's Hindu neighborhoods. Soon after Santosh was born, her father, who had joined a local bank as a clerk, was promoted. "He used to say that I had brought him good luck," says the old woman, the second of her parents' six children.

Santosh lives now with her son, daughter-in-law and granddaughters in a middle-class neighborhood called Vivekanand Puri. Her bedroom is painted fawn and has a bed, a bedside table and a television on a small wooden stand. She struggles with arthritis and in the past few months has begun spending most of her days in bed watching TV, talking to family members or sleeping. Her long hair is pulled back tightly off her face. Her earlobes hang heavy with gold earrings. She tires easily but when she speaks about the past her eyes light up.

Most girls in her extended family left school by age 10, but Santosh studied until she was 13. "My mother was educated and she wanted education for me and my sisters," she says. Later Santosh began teaching in a tiny private preschool a few blocks away. When she was 19, a local pandit, or educated man, offered to tutor her so that she could work in a government school. "Teaching was one of the few jobs women could do," she says. "Yes, I liked it but it wasn't a choice. Today's women are more active and it's good they have that choice." Santosh's family arranged her marriage, to a young man named Devraj. Through the heavy veil that covered her face at the wedding, Santosh couldn't make out her new husband's features and didn't lay eyes on him until they arrived at his house the following day. "He was a good man," she says of Devraj, who died in late 2002 and whose photo hangs above her bed. "I was lucky."

Growing up in the last days of the Raj, Santosh says she was hardly aware of India's colonial overlords. "We were happy in the sense that we could wear gold and go out and there was no theft — it was safe," she remembers. "We were aware of Mr. Gandhi, but everyone used to talk that he would be killed one day because of the work he was doing." On the night of independence, Santosh, her husband and her mother were still in Lyallpur, now renamed Faisalabad, despite the rising violence against Hindus and Sikhs in the city. Santosh's Muslim neighbors said they would hide her and her relatives until things calmed down. But when a cousin in the army offered the family a place on a military truck heading for the safety of India, Santosh and her mother signed up. (Her husband decided to stay on to tie up their affairs, hopeful that his policeman brother-in-law could offer him some protection.)

Leaving was incredibly dangerous. There were four army trucks and one car in all, into which some 500 people were crammed like entombed warriors, upright and shoulder to shoulder, Santosh's mother perched on a box that contained her only remaining possessions — a sari, a suit, some jewelry and a photo of her dead son. "It was raining, children were thirsty," remembers Santosh. "I was worried about my husband." Just before they reached Lahore, one of the trucks broke down and the convoy stopped for about an hour while it was repaired. There was a steady stream of buses and trucks headed for the border and trucks coming the other way, too, carrying Muslim refugees from India. Rioters were attacking some of the vehicles headed out of Pakistan. At one point, Santosh says, she saw a truckload of bodies. "Everyone was praying to the gods that we would reach India safely," she says. Finally, the convoy reached Amritsar, just across the new border.

Over the coming weeks between 800,000 and 2 million people died in the sectarian fighting. Up to 14 million people crossed the world's newest frontier, an incredible exchange of humanity and one of the largest mass migrations in history. Santosh and her family ultimately reached New Delhi, where they lived in tents for 18 months until the ruling Indian National Congress gave them (and thousands of others) land as compensation for their forced migration. Jetendar Malhotra, Santosh and Devraj's chubby-faced third child, was born in 1953. By then Santosh had started teaching again. "I had to earn because everything we had was left in Pakistan," she says. Her husband got a job with a government cotton mill. "I don't have ill feeling about that time," she says. "I was angry but when you see so many people in the same position with the same problems, you know it's not just happening to you. It was not a personal suffering."

With both his parents working, Jetendar Malhotra spent much of his childhood at home with his three brothers. He liked school, he says, but also got into trouble occasionally for pulling pranks on teachers and classmates. He loved playing cricket and badminton. By the beginning of the 1960s, India's direction for the next few decades had been set. Under the paternalistic watch of Jawaharlal Nehru, who led independent India for its first 17 years, the government poured money into education, gave more rights to women and criminalized caste discrimination. Economic policies were increasingly socialist and protectionist. The government began investing heavily in industry and agriculture, and nationalized companies in so-called strategic industries such as mining, banking and airlines. "The world saw us as a poor place," says Jetendar today. "And we were. The idea was to protect the country until we could survive against everyone else." But while high import taxes were good for the country in the short term, Jetendar says, they also meant goods such as televisions, cars and refrigerators weren't available or were too expensive for average Indians.

The shift to socialism and the "license Raj" — the government system of restricting competition in key industries to a handful of large family-owned companies — left India's economy mired in mediocrity. Economic growth averaged just 3.6% in the 1970s, a laggardly rate that barely kept up with population growth. Commentators dubbed India's performance "the Hindu rate of growth" as if the nation was doomed to poverty because of some innate flaw. With so much of the economy under state control, government jobs were often the best and safest option. After leaving school, Jetendar studied commerce via correspondence courses. During the day he would sell small electrical goods — irons, toasters, heaters — at a 40-50% markup. In a day he could make 300 to 500 rupees, $7.50 to $12.40 at today's exchange rates and a fortune in the early 1970s. But after trading for a few years, Jetendar decided on a government job — first at a state-owned chemical mill and then with the New Delhi tourism department. "Trading was temporary. I looked at it like, 'Today I have a business but tomorrow I might not.' With a government job the earning might not have been as much but it was guaranteed and the security was there for a long time."

For those without a job with the government or one of the heavily protected family-owned conglomerates, life was much tougher. Millions sought a new start in places like Britain and the U.S. One of Jetendar's cousins moved to London in the 1970s to marry an Indian there, and in 1976 Jetendar's family arranged for him to marry a girl in the U.K. But at the elaborate engagement party the family held in India, Jetendar's would-be father-in-law insisted he move to London. Jetendar refused. "I liked her," he says now. "But I wanted to stay in India."

In 1979 Jetendar began managing a state-owned liquor store in New Delhi. Three years later he bought his first scooter and the following year married Madhu, a Hindi teacher his mother Santosh had met when visiting a school. The couple had two girls, Yukti and Neeti. At one of two government-owned liquor stores Jetendar now helps manage, he shows me boxes of Indian whiskey that, at just over $1 per 750-ml bottle, is popular with working-class men. In the past few years, as the Indian middle class has grown and tastes have changed, government stores have also begun to sell wine. Jetendar recently attended a three-day wine-tasting course, though he admits that in his neighborhood "wine is not yet that popular." Jetendar spends most days sitting at a metal desk perched on a concrete mezzanine floor that juts out over the shop's basement. A fluorescent light casts an artificial glow across his books. A stint at a government catering company "was better," he says. "The office had air-conditioning." He pauses to look around his modest fief. "But you work hard wherever you are to make your kids' lives better. That's the way I look at it."

In the living room of the Malhotras' modest, single-story home hangs a religious picture along with a painting by Yukti, now 22, depicting a white dove. An air-conditioning unit hums in the window and a red carpet covers the floor in the middle of the room underneath a wooden coffee table. A cabinet at one end of the room holds a stereo system, some vases and porcelain knickknacks. In a tiny parking area outside sits the family's first car, a boxy Maruti 800, which Jetendar bought in 1995. In the car's rear window a large L in sun-bleached red warns other motorists that Neeti, 19, is learning to drive.

Yukti was born just as a new revolution was getting underway — this time not political but economic. Annual growth rates had risen to about 5% during the 1980s. But by 1991 the economy was a mess. The Indian government was broke and about to default on its international loans. Forced to act, New Delhi began a far-reaching economic-liberalization program that opened up trade and foreign investment, began to dismantle the infamous "license Raj" and set India on a path to the growth rate of more than 8% that it enjoys today.

Yukti, who is shy and screws her face up in a frown when she's thinking hard, might not have experienced the old India firsthand, but she has little doubt that the changes are for the better. Her life has been much easier than that of her parents, she admits. She grew up knowing she would go to college. "My mother used to do household work as well as study," she says. "We hardly step into the kitchen." Halfway through an M.B.A. at Indraprastha University in New Delhi, Yukti says she wants to work for a big multinational or one of India's successful software or outsourcing firms. "With a government job you don't have opportunity for growth," she says, adding that she expects to be earning as much as her father within two or three years of starting her career. "The new generation understands that before, people looked for security. But now security is not the only criteria. Now people are more focused on growth."

Like most young urban Indians, Yukti moves easily between the traditional and the modern. She wears jeans and T shirts around the house, business attire during her recent stint as an intern at Tata Consultancy Services, India's biggest software company, and saris to weddings and other family celebrations. Likewise, her views on marriage are a blend of the new and of traditionally conservative Indian beliefs. Unlike her grandmother, Yukti cannot imagine marrying someone she has never met. If her marriage is arranged, she says she will approve the man first, and she is free to find a mate on her own. But either way, she says she would never marry without her parents' blessing. "I obviously want them to be happy," she says. Her father Jetendar nods his agreement: "We want to be sure that the boy is educated, that he's stable in his life and his job."

But Yukti isn't thinking about marriage just yet. She spends much of her time studying. In the final year of her undergraduate degree she took private classes designed to help her win a spot in an M.B.A. course. Her sister Neeti is doing the same. When they aren't studying they spend time with friends or family — or on the Web. "Television I used to like more, but now it's surfing the Net," says Yukti, who regularly chats with friends online. "We scrap [message] each other about all sorts of stuff: movies, study, whatever." Madhu, Yukti's mother, who is as outgoing and talkative as her husband is reserved and quiet, says she has given her "full freedom — but I always keep watch whether she's online or wherever."

Whatever happens in the future, India will be Yukti's home. "I would like to travel for a holiday but never to live," she says. "Somehow I feel we have a pretty good home country. Why do we want to give all the other countries the benefit of what we can do here? There are so many opportunities." India's fractious politicians, though, need to start delivering. "The political scene here is very bad," she says. "No one has the responsibility to complete things. They promise and then just leave [projects]. We need to finish what we start."

The coming decade or so may determine whether India is able to finish what it has started. For the country to prosper, India's government and its people need to figure out a way to spread the current boom to the two-thirds of the population in rural areas who are still poor. Succeed, and India could become a global power alongside China and the U.S. Fail, and there is a real chance that insurgencies festering around the country could explode.

Expectations are higher than ever. India is seeing not only a revolution of the economy, but also one of the national mind-set. Fading from consciousness is Gandhi's spinning wheel and the dignity of poverty. Today improving your situation is desirable. Striving is O.K. "The big thing now is the whole world is around money and everything is so expensive," says Yukti. "In my parents' time you just needed the basic necessities. Now you need an a/c car, you need a TV, you need more luxurious things. Knowingly or unknowingly you compare yourself to others and decide that you, too, must have this."

Madhu remembers when her father bought their first television. Everyone in the neighborhood would drop by to watch. "It was suffocating with everyone in there," she remembers. "But my father wanted to invite people so no one would think we were rich. Now everybody is rich in their own sense." Perhaps not rich — not yet. But three generations after India's independence, wealth is no longer something to be hidden from the neighbors. Better still, India's youth have something that is more valuable than TVs and cars and designer handbags: they have the hope that goes with a future full of possibilities.
 
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Rising Star
By MICHAEL ELLIOTT, EDITOR, TIME INTERNATIONAL

Jawaharlal Nehru's speech on Aug. 14, 1947, is one of the great pieces of oratory, something that still puts a chill down my spine whenever I read it. Nehru — referring to India's "unending quest" from the "dawn of history" — knew that there was something odd about celebrating political independence as if it was a dawn: colonial masters didn't invent India when they first arrived there or when they left. At the same time, shaking off the European yoke plainly marked a change, not just for the subcontinent, but the world. "A new star rises," said Nehru, "a new hope comes into being."

Even those who love India with the crazy passion it engenders would admit that such hope has not always been made flesh in the past 60 years. But when we came to prepare our special issue on the anniversary of independence, we saw sign after sign that many of the old doubts and disappointments had fallen away. "I was born in the 1970s," says Nilanjan Das, deputy art director of TIME Asia, who designed the issue, and is Indian himself. It was, he says, "a time of indecisiveness and insecurity. But now we are in the middle of this amazing ride."

It's well known that economically, India is going places. "Western businessmen who have been losing sleep over China may be worrying about the wrong country," says senior editor Jim Erickson, who managed the project wonderfully with his customary sure editing touch and attention to detail. "It is Indian corporations that are proving to be formidable competitors in the global, information-driven economy." At the same time, we wanted to make sure that we captured the human dimension of change, which New Delhi bureau chief Simon Robinson did by looking at three generations of a family. The Malhotras, Robinson says "were gracious in their welcome and generous with their time — their tale is a great reminder that the changes in India over the past 60 years are not just abstract numbers on paper but the stories of lives and families." In her study of Islam on the subcontinent, Aryn Baker looks at the way in which such lives and families have been shaped by faith, and by memory. "It always amazes me," she says, "how the past is very present in Pakistan's politics and society."

Our writers and editors were, as always, supported in their endeavors by our terrific art and photo team in Hong Kong. Graphics maestro Dennis Wong worked alongside Das, and TIME Asia picture editor Maria Wood and deputy picture editor Wei Leng Tay did a tremendous job tracking down the photos needed to make the package sing. Tim Morrison, with Robinson and reporter Ishaan Tharoor, ensured that what couldn't fit in the magazine was beautifully displayed on TIME.com.

I'm grateful to all of those who produced this issue and trust that you will enjoy reading it. India, says Tharoor, whose essay on democracy you will find inside, is a place that one sees through a "kaleidoscopic prism, its cacophonous street unafraid of its blemishes and warts." We hope you'll find evidence of that newfound Indian confidence — a confidence for which Nehru yearned 60 years ago — in this issue.
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I have posted almost all the articles that are presented by TIME magazine. Please, refer to the above posts on this page.
 
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ANA launches business-class flights to Mumbai
The News, Pakistan

TOKYO: Japan’s All Nippon Airways announced on Thursday a new service between Tokyo and the Indian financial capital of Mumbai catering exclusively to well-heeled business travellers.

A Boeing-737 with 36 business class seats will fly six times a week to and from Tokyo Narita airport and Mumbai from September 1 with no room for economy class passengers in the rear.

“Mumbai is India’s western gateway and centre of culture and finance. Many Japanese firms have entered Mumbai,” said ANA vice president Shinichiro Ito.

“With this new flight we would like to contribute to the further development of relations between Japan and India,” he said at a press conference.

The new service reflects expanding business ties between Japan and India, which is enjoying near double-digit economic growth. It also follows the success of business class-only services criss-crossing the Atlantic between the United States and Europe.

ANA does not currently offer any flights to India. The cheapest fare for the new ANA business jet service between Tokyo Narita airport and Mumbai is 430,000 yen ($3,622), according to ANA’s website.

Passengers get a standard business-class seat with a 61-inch pitch, as well as a portable media player with HDD for music, movies and videos to keep them entertained during the nine hour-plus flight.

“Our main target is Japanese business people flying from Japan to India as there are already many Japanese companies investing in the Mumbai area,” said Ryoichi Fujisaki, a spokesman for Japan’s second largest airline. But he said ANA would also promote its new flights to Indian travellers.

From October 28 until next March 29 the service will make a stop in the southwestern city of Nagasaki on the outbound flight to Mumbai, also known as Bombay.

With no Concorde to whiz rushed executives across the Atlantic faster than the speed of sound, business-class only flights have grown increasingly popular between the United States and Europe in recent years.

Their success has spawned a new wave of carriers offering nothing but business class seats, such as Britain’s Silverjet, US airline Eos and France’s L’Avion.
 
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Salaries of India's forex traders will jump by 30%
Gulf News, United Arab Emirates
Published: August 02, 2007, 23:15

Mumbai: The salaries of foreign exchange traders in India are expected to jump by up to 30 per cent this year as the rising rupee stokes demand for hedging services and trading volumes swell.

Some traders are now earning as much as their counterparts in Asian centres like Singapore, and keeping experienced staff is increasingly expensive. Banks face turnover of up to a fifth of staff each year.

"Retention is the name of the game. Banks don't mind paying heavily for it. Treasury is making so much money that they don't mind sharing a bit of the profits," said Tzeitel Fernandes at human resources firm Hewitt Associates.

India's annual foreign exchange market turnover has grown to a gross $6.5 trillion in the fiscal year 2006-07 from $1.4 trillion six years earlier.

"Volumes flowing through the system are much more than last year," said Hitendra Dave, co-head of global markets for treasury at HSBC in India.

Dave guesses salaries have at least doubled in the past 12 to 18 months, while treasury revenues for the industry have doubled in the past year.

More banks are offering treasury products to their corporate clients, whose overseas exposure is increasing as India's economy opens up, and foreign banks that are boosting operations in financial centre Mumbai are willing to pay more for talent.

Global houses like Credit Suisse, Lehman Brothers and Goldman Sachs have been ramping up in India and hiring experienced treasury sales and dealing staff. The new arrivals often do not train staff up themselves, they buy experienced talent, senior traders say.

"I lost a lot of people last year, but the bank is getting wise to the fact it's silly to lose people - that you have to do all you can to retain them," said one head of trading at a foreign bank that has been in India for several years.

Beating the traffic

Traders say the average annual salary for a middle manager in treasury at a private sector or foreign bank is between Rs1.5 million and Rs2 million ($37,000-$49,500). That's excluding bonuses, which can add another Rs8 million, nearly $200,000.

That's still below Hong Kong, where middle-ranking foreign exchange traders pocket $220,000-$300,000 a year, including bonus. But it's near or exceeding levels in Singapore, the world's fourth-largest currency trading centre, where traders earn about S$100,000 ($66,000) a year before sales commissions.

In London, big bonuses often mean new sports cars or diamond pendants. But Mumbai's traders use their new-found wealth to beat the traffic and upgrade their homes.

One senior currency trader, who moved from a private sector Indian bank to a foreign one, used to commute for an hour-and-a-half on the city's overflowing trains. After a big bonus last year, he has a Honda City sedan and a bigger apartment just half an hour's drive from his office.

The advent of private equity and venture capitalists has also taken a toll on employers' wage bills and staff turnover.

Talent drain

"It's a huge drain in talent on treasury, which has contributed to the rise in wages and attrition," Fernandes said, adding banks were getting creative to retain staff, offering them equity, deferred bonuses and overseas postings.

Some banks also train up B or C teams.

"We always have people sitting on the bench," said a senior trader at an Indian bank. ICICI Bank, India's largest private bank, says its treasury team has grown by 63 per cent since March 2006, on top of a 60 per cent expansion in the 12 months before.

Seasoned market players doubt the boom times will last. They expect consolidation between local banks as a central bank regulatory review nears in 2009.

Others think the sector will see an influx of talent attracted by the high pay, eventually forcing down wages.

But for now, the only way to do business is to pay up.
 
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India ready to help SA with 2010 preparations
Mlambo-Ngcuka says South Africa stands to benefit a lot from India
SABC News, South Africa
August 02, 2007, 22:15

Phumzile Mlambo-Ncguka, SA's deputy president, says South Africa stands to benefit a lot from India, in terms of acquiring necessary skills in specialised fields such as software engineering and financing. She was speaking at the South Africa-India Business Conclave, under way in Sandton, Johannesburg.

The two-day meeting aims to promote business, investment and tourism between the two nations. More than 500 delegates are attending. The deputy president says India and South Africa are key role players in advancing the developmental agenda of the South.

Ashwani Khumar, India's minister of industry, says New Delhi is ready to assist Pretoria with the infrastructure development ahead of the 2010 World Cup. Khumar has also invited South African companies to take advantage of the growing Indian economy.
 
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The Heart Of The Matter
India's interests, in both the civilian and strategic fields are protected. Whatever the strategic purposes of the US, a friendlier and closer relationship is probably reflective of the goals of India's new generation for technological freedom.

Arundhati Ghose

July seems to be a particularly significant month for Prime Minister Manmohan Singh--in July 1991, as Finance Minister in the Narasimha Rao government, he announced the liberalization of industry from government controls in his budget speech, starting the move towards the opening up of the Indian economy. In July 2005, in a Joint Statement with President Bush, he initiated a process aimed at removing three decades of technology denial to India by most of the countries with advanced technology. The process was centred on an agreement with the US, the progenitor of the denial regimes, in civilian nuclear energy. And then, last week, after a rocky and strenuous two years of negotiations, the government of India approved such an agreement.

While the text is not yet publicly available, it is clear that, in spite of fears and dire prognostications, India’s negotiators have been able to project and protect India’s interests, in both the civilian and strategic fields. It is true that, as in the case of his economic reforms, Prime Minister Manmohan Singh is not solely responsible for this achievement; he built on a basis established by his predecessors and has been assisted be an outstanding team of negotiators.

To briefly put the agreement--called the ‘123’ agreement as it is under that section of the US Atomic Energy Act that the US signs such cooperation agreements with other countries--into a context, it is necessary to recall that India started her nuclear energy programme with international cooperation, including with the US, and in fact signed on to a Partial Test Ban Treaty in 1963. However, when the US and the USSR pushed through a discriminatory Nuclear non-Proliferation Treaty in 1970, after China had conducted her first nuclear test in 1964, India refused to join. In 1971, the nuclear armed USS Enterprise sailed into the Bay of Bengal to put pressure on an India that was winning the Bangladesh war, India tested a nuclear device, in 1974. Enraged, the US not only passed domestic laws to curtail the flow of all dual use technology to India, but by 1975, had established the Nuclear Suppliers Group to ensure that the technology denial regime was broad based. The nuclear issue became, and remained, for the next thirty years, a major obstacle in normal India-US relations.

In 1998, India conducted five nuclear tests and declared herself a nuclear weapon state . After an initial period of outrage, the US government, under President Clinton, a Democrat, appeared to move towards an engagement with India, recognizing that India’s security interests had to be taken into account, even while pushing for a global non-proliferation regime with progressively stricter controls on the export of dual use items and technologies to India. The objective of that government was to discuss civilian nuclear cooperation with India, even while attempting to ‘cap, roll back and eliminate’ India’s weapons programme. Clearly, this approach did not lead to any significant improvement in relations.

In the meanwhile, India’s economy had started to grow and the world itself had started to change. The Bush Administration, a Republican one, realized that it had much to gain if it could forge a new and friendly relationship with India, and for that, the nuclear ‘issue’ had to be resolved. To accomplish this, the US had to change its domestic law to favour only one country, India. For India, an opportunity presented itself to unshackle the nuclear energy sector, and to benefit from free flows of high technology to enable her to build a competitive knowledge based economy, without compromising her security interests or her technological independence.

India offered to separate her civilian and military facilities and place the former under IAEA safeguards; in return the US proceeded to change its laws to ‘exceptionalise’ India. The Hyde Act, finally passed by the US Congress, did ‘exceptionalise’ India, but it also introduced a series of conditions which made the Act as much a non-proliferation act as a cooperation one. This was a reflection of an entrenched distrust of India in parts of the US establishment, with memories of not only India’s own hostility to the US during the Cold War, but the indignation at India’s nuclear weapons tests, still alive. It was this mind set ( with an almost mirror image in India) that the negotiators of the Agreement had to contend with. It has been held that the US Congress, in permitting civilian nuclear cooperation with India, has only reiterated those sections of US law that were not amended; however, the inclusion of sections of a US non-proliferation law that had generic reference were made specific to India.

This would have been the biggest hurdle before the negotiators, one that was handled by the US side as the law applied to them and could not bind India. Clearly, this obstacle was overcome by intervention at the political level which had determined that friendly relations with India required flexibility and sensitivity to India’s concerns. There are already reports of a negative reaction in the US, with some US Congressmen taking strong exception to the ‘concessions’ made by the US to India in the Agreement.

However, India had specific concerns, too. India’s nuclear programme depends on reprocessing spent fuel; the US, in its other 123 agreements gives such rights (when using US fuel or materiel) only to safeguarded facilities. India, which had not, in its separation plan, provided for any reprocessing plants to be placed under safeguards, offered, as a compromise to build a special reprocessing plant for US fuel which it would place under safeguards. In any case, US law does not bar reprocessing rights. Secondly, India had, in March 2006, agreed to place each civilian facility under safeguards for the lifetime of the facility, provided such facility was assured fuel in perpetuity. This was a major issue, as India still had bitter memories of Tarapur. According to US law, if a non-nuclear weapon state tested a nuclear weapon all cooperation would cease, and all materiel or fuel imported from the US would have to be returned. This would have implied that either India’s investments or her freedom to test in the future, should she require to do so, would be jeopardized. Obviously, while politically the US accepted India’s possession of nuclear weapons, no amendment had been introduced to the legal provisions. A third area of difficulty related to the transfer of enrichment and reprocessing technologies; while India does not need such technologies, having developed her own, she could not accept any discrimination in treatment, which might impact on some components she may require in the future. According to the Prime Minister and the External Affairs Minister, all India’s concerns have been "satisfactorily" met in the Agreement.

Of course, there are still further steps to be taken and obstacles to be overcome. The Nuclear Suppliers Group has to be persuaded to make the same exception for India--will China agree, without some provision for Pakistan? India has to negotiate a sui generis India-specific safeguards agreement with the IAEA for her civilian reactors, the US Congress has to approve the whole deal after it is completed, not necessarily a foregone conclusion. In India, opposition Parties, particularly the Left front have to concur-an uncertain eventuality.

To try and change mindsets, to overcome decades of estrangement, distrust and adversarial relations, through a single Agreement, however significant, is a giant task Whatever the strategic purposes of the US, a friendlier and closer relationship is probably reflective of the goals of India’s new generation for technological freedom.. It is the heart of the matter.
 
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‘PSBs handicapped by curbs on equity’

KOLKATA: State Bank of India Chairman and Managing Director O. P. Bhatt on Thursday regretted that public sector banks (PSBs) were restricted from raising capital which was hindering them from advancing lendable resources.

He said there was restriction on banks that the government holding in PSBs should not go down below 51 per cent.

Speaking at the Banking Conclave 2007, organised by the Federation of Indian Chambers of Commerce and Industry (Eastern Region) here, Mr. Bhatt said 78 per cent of the Indian banking industry was PSBs.

Mr. Bhatt said the Indian banking system was not in a position to finance the entire amount needed for the development of the infrastructure sector, which was put at $300-400 billion.

He said there was a possibility that the country’s booming economy might falter due to inadequate growth in the infrastructure sector. The issue of restrictions of government holding in PSBs would have to be debated, adding that there was scope to do away with it, he added.

“This has to be made to happen, and there is a potential to make it happen,” he said. Mr. Bhatt said for SBI, the bank had the option to dilute up to 55 per cent of the equity from the present government holding of 59 per cent. Under the current valuation, the bank could raise up to Rs. 5,000 crore by diluting four per cent of the equity, he added. In spite of capital raising restrictions, SBI was the largest lender to the infrastructure sector.

During the current financial year, the asset base of the bank was projected to be in the region of Rs. 80,000 crore to Rs. 100,000 crore.

Mr. Bhatt said banks would have to deal with risk mitigating issues, particularly in new businesses. Banks did not know how to finance knowledge-based industries as they lacked expertise. SBI was focusing on financial inclusion by reaching out to distant villages, he added.

Mr. Bhatt said the bank had shortlisted three foreign partners for its proposed foray into the general insurance venture. He said SBI would form a holding company for SBI Life and SBI Mutual Fund shortly. Strategic investors might also be given a part of the stake in the holding company.

Giving the rationale for floating the holding company, Mr. Bhatt said it would be done to synergise operations and get a valuation. The holding company might get listed on the bourses at a later date, he said. SBI would create a separate company for management of pension funds, he said. On capital requirement, he said SBI would require Rs. 15,000 crore to sustain business. — PTI
 
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