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Turning the wheels again
August 05, 2007

Software is great and business process outsourcing is wonderful. But the trouble is that you can’t eat software or wear a BPO product.

India’s economic buzz in the past decade or so has been about knowledge-based service industries. But it is important to remember that the nation of 100 crore people whose economy is growing at 9 per cent needs things that people wear, ride, use or eat. So the manufacturing industry may have lagged behind the glamorous white-collar service industry in recent years, but it is central to an economy.

What this means is that jobs and careers can be sought, if you are technically inclined or believe more in work connected with touching and feeling things. The industry consists of establishments engaged in the mechanical, physical, or chemical transformation of materials, substances, or components into new products.

According to skills measurement agency MeritTrac, the percentage of people employed in manufacturing is expected to increase to 21 per cent by 2020 from the current 19 per cent. The industrial sector as a whole contributes a little over 27 per cent to India’s gross domestic product, and of this, the manufacturing industries contribute around 15.5 per cent.

While China is emerging as a global leader in the industry, India has its own manufacturing story. India’s manufacturing sector recorded a growth of around 12.3 per cent in 2006-07, steadily rising from 6.6 per cent in 2003-04. Industry was sputtering for about eight years since the mid-1990s. Manufacturing, too, began to suffer.

But many of its segments have bounced back since then. Cheaper finance, more liberalisation, a growing population, newer technologies and focused management have helped many of these turnaround stories.

According to a study by HR consulting firm Elixir Web Solutions, the rate at which foreign investments are proceeding nearly 10 million people would be joining the manufacturing sector workforce annually till 2015.

"This will follow the pattern of more and more people moving into the manufacturing and service sector activities from agriculture and farm activities. This will further have a direct impact, as salaries and incomes will see a definite rise, hence augmenting the standards of living," the study says.

The flip side is that India’s vaunted ‘demographic dividend’ can become a ‘demographic deficit’ due to a shortage of skills.

"The challenge lies in harnessing the productivity and nurturing the potential talent pool to avoid turning the dividend into a liability. Skilled Indian manpower will be the country’s legal tender of the world," Lt Gen (retd) SS Mehta, director-general of the Confederation of Indian Industry, told Hindustan Times.

A Federation of Indian Chambers of Commerce and Industry survey said that shortage of skilled, semi-skilled and unskilled workers have emerged as a critical factor impacting the competitiveness of Indian industry.

Experts say the segments that would require the maximum number of jobs would also see the largest shortages. Those that are expected to hire the most include food processing, oil and gas, textiles, mining, heavy engineering, automotives, plastics, chemicals and petro-chemicals, paper and glass.

The emergence of special economic zones (SEZ) is also expected to drive growth in manufacturing employment. In the next five years, investments by SEZ developers are expected to be over $60 billion (Rs 2,40,000 crore). According to estimates of the Union commerce ministry, the over-350 SEZs are expected to provide direct employment to over 4 million people.

During 2006-07, FDI (foreign direct investment) equity inflow reached a level of $16 billion — a 185 per cent increase over the previous year. Such investments will also directly or indirectly create manufacturing jobs.

Manufacturing can be suitable to those who enjoy working in factories, dealing with machines or designing or dealing with assembly lines. Building skills for that would be at the heart of a career in manufacturing.
 
Booming India creating jobs in US
Sandeep Phukan
Sunday, August 5, 2007 (Seattle):

In recent times a rapidly growing Indian economy has actually meant job opportunities for many in the US.

In the past outsourcing has been a big political debate in the US.

Those who opposed it argued that countries like India, a preferred outsourcing destination for US companies, were eating into the American job market. But that's changing now.

The President of Boeing commercial Scott Carson hosted a private party on a luxury yacht in Seattle’s lake Washington. A gesture for a very special guest of honour Air India.
After ordering 68 planes estimated to be around $7 billion, Air India is now Boeing's most valued customer.

“This is the biggest ever order by any airline to Boeing in the past few years," said V Thulasidas, Air India CMD.

Air India is a special customer also because it will be one of the first to use the 787 Dreamliner, the most modern plane from the Boeing’s table.

Reviving fortunes

For the plane manufacturer, it means a ready customer for a product that's only going to be launched in September. Just the sort of deal Boeing needed to revive its fortunes.

“Each of these planes cost $260 million. That's a lot of money to Boeing and United States and the jobs it creates," said Dinesh Keskar, Vice-President, Air India.

Boeing and United States both have reasons to celebrate. After 9/11, airlines like United Airlines collapsed. There was an aviation meltdown the world over.

Boeing's fortunes dipped too. The 220,000-strong workforce came down to 140,000 retrenchments and job cuts were the order of the day.

But all that's changing now. Boeing's on an upswing hiring more people and their order book is full for the next five years.

And quite clearly India has a role to play. Air India, Jet Airways and Spicejet are all lining up in Seattle.

“In India in the next five days we will be delivering six news planes to Indian carriers. It will be a historic thing for us," said Dinesh Keskar.

Seattle is at the center of interesting employment debate. Seattle is home to IT giant Microsoft.

Now when you think of Microsoft you think of IT, you think of outsourcing.

The picture that you have of India is not very positive one. But then there is the other side of the story at the Boeing factory.

Thanks to the aviation boom in India, more and more Indian carriers are ordering planes. Now that simply more jobs for America.

Many argue outsourcing has worked for both India and US.

Here's how this year India's IT industry earned a revenue of $ 39 billion and a majority of this came by exporting services to US-based companies.

New found wealth

This new found wealth has thrown up a new Indian middle class who loves to travel by air, hangs out at American fast food chains and does not mind splurging money on branded products, many of which are imported from the US.

“Globalisation is not a one way traffic. India is a big consumer. Our purchasing power is increasing. We will be buying more equipment," said Jayanta Bhuyan, Deputy Director General, CII.

Companies like Boeing, whose military wing is only too keen to sell its F-18 fighters to the Indian Air Force, argue the Indo-US nuclear deal will only help business ties.

“The challenge is to understand two biggest democracies who are culturally very different. How to bring them together," said Scott Carson, President Boeing Commercial Planes.

So far, Seattle's India connection has been Microsoft and Boeing. But now after the Indo-US nuclear deal finally sealed many new opportunities are likely to open up.
 
Dabur eyes Pak's drug market
6 Aug 2007, 0418 hrs IST,PTI

NEW DELHI: Stepping up its overseas expansion, Dabur Pharma has made a foray into the anti-cancer drug market in Pakistan and Turkmenistan.

"Increasingly, our focus is to expand not only in the developed markets but also in emerging ones. Recently we have started exporting our anti-cancer drugs to Pakistan," Dabur Pharma additional director and non-executive chairman Mohit Burman said.

The move follows the Pakistan government allowing imports of anti-cancer drugs from India since last month. The country's health ministry has already granted permission to two companies — Atco Pharma and AJ Mirza Pharma to import from Dabur Pharma.

Besides Pakistan, in the first quarter of the fiscal Dabur Pharma had also started dispatches to Turkmenistan from its dosage form manufacturing unit at Baddi in Himachal Pradesh. With the next generation of Burmans being given more responsibility of running the Dabur empire, its pharma division is also on the prowl for acquisitions abroad.

"Similar acquisitions like the one we did in Thailand are a possibility in key markets, which we have identified," Burman said. Dabur Pharma had acquired sales and distribution network of Biosciences and the company's drug Intaxel became the first ever generic oncology drug to cross 100 million Baht sales mark in the country.
 
Online retail spreads its net
6 Aug 2007, 0416 hrs IST,Kavita Kukday,TNN

Here's no secret about selling online. It's a simple three-step formula: lure more users to your website, hook them on to your site and see profits soar. It's all about being able to drive more traffic by creating better user experience. Then when these new users finally show up, you retain their interest and finally convert their interest into a sale.

But how do you get the traffic in the first place?

Interestingly, online retailers are looking beyond traditional online advertising methods like search engines, banner ads and email marketing to lure online consumers. Many online entrepreneurs these days are finding gold elsewhere—offline marketing is what's helping them boost their online sales!

Real world doorway to online shop
If you happened to notice the huddle around this tiny kiosk right in front of Big Bazaar at Lower Parel, Mumbai on January 26 this year, you'd know exactly what we are talking about. This was one of the first few offline experiments that Future Bazaar, the online arm of the Future Group, tried. And it was a runaway success.

What they did was set up tiny kiosks in some key areas in various towns including Mumbai, Delhi and Hyderabad. These kiosks had catalogues of the merchandise that sell on their website. One had to simply walk into the kiosk, look at these catalogues and approach the sales people to place an order. These sales people in turn would log on to the Future Bazaar site and place an order for the items which would be delivered to the customer at home.

What worked with the kiosks is the fact that although the sale was happening online, the consumer never had to log on to the web. This made them more comfortable while placing an online order.

Although these kiosks were temporary initiatives, there is no denying their success. A normal retail outlet such as Big Bazaar has an annualised sale ratio of Rs 8,000 per square foot, while on sale days their annualised sale ratio can touch Rs 20,000 - Rs 25,000 per square foot. "But the kiosk did about 20 times more sales per unit of area as compared to the sale a normal retail outlet does even on sale days!" says Sankarson Banerjee, CEO Future Bazaar.

Thanks to this success, Future Group is planning to make these kiosks a permanent fixture at various locations in suburbs of metros and tire-2 cities.

Wooing customers from smaller cities
What prompted Future Bazaar to try this experiment? There are many facets to this, say analysts. The biggest factor is about location. As with brick-and-mortar retail, finding the right location is the most important factor for online sale too. Metros are important of course, but the real test comes when you are trying to attract non-metro customers. These customers are neither as tech-savvy as their metro counterparts nor do they have easy access to the internet.

Take for instance a city like Asansol which is a three hour drive away from Kolkata. Here the population is rich enough to be able to buy expensive brands, but they don't want to drive all the way to Kolkata to buy it. Nor are they comfortable about logging on to the internet on their own to buy products. This is the kind of population these offline marketing plans target. And these strategically placed kiosks do exactly this.

"Interestingly these kiosks helped us attract a very different kind of customer," says Banerjee. "For instance, a much larger percentage of women came to the kiosk than come online. We also saw people from different walks of life—from senior professionals to daily wage earners—wanting to take advantage of the offers available through this format," he adds.

Ironically, these offline initiatives have been very successful in the metros too. Future Bazaar's experiment at the Lower Parel Big Bazaar for instance, saw large number of customers who had just finished shopping in the store come and pick up more products at the kiosk. "This is because the same customer will buy different things at different times inside a Big Bazaar and for home delivery," said Banerjee

Partners in the game
Players like eBay have given a slightly different twist to the kiosk strategy. They are tapping internet cafes around India.

"We have partnered with Reliance Web World in 100 Web Worlds in 16 cities with plans of scaling up this quarter to 140 Web Worlds in 24 cities," says Rathin Lahiri, CMO, eBay India.

It works almost similar to the kiosks, the only difference being that the consumer goes to an internet cafe instead, where the cafe owner handholds her though the entire process of buying online.

There is no denying the fact that even today, the most widely used window to the internet is still cyber cafes. According to IAMAI (Internet and Mobile Association of India) 24% of India's 50 million-odd internet users still accesses the net via pay-and-surf cyber cafes. So it makes superb business sense to have these cafe owners bring in newbies to your website. The strategy has worked for eBay India at least.

"Reliance Web Worlds were among our top three new user acquisition channels for the year,” says Lahiri.

Campaigning for more
Then of course there is the good old print media that online players are reaping benefits from that. Like the Indiatimes ad campaign called 'Readers offers'. Here, Indiatimes would select a product each day and place print ads with a special price in frontline publications such as TOI or the Mumbai Mirror. These offers would also run parallel on the Indiatimes site (www.indiatimes.com).

"The response so far has been brilliant. With this we managed to capture the entire readership of the print dailies which runs into lakhs of Indians," said an Indiatimes spokesperson.

Celebrity charm
Then of course there is the old trick of using celebrities to charm users into buying your product. eBay India has been running campaigns like 'Green House' that were heavily publicised in multiple channels such as radio and print ads. The campaign spoke about sports anchor Mandira Bedi decorating her house in Bandra with items bought only from the eBay India site. This worked wonders for the site, as people would log in to buy just the same products as Bedi. The number of hits soared for sections such as home décor and furnishings.

The same went for the apparel section which now ranks among the top accessed sections on eBay thanks to the 'Style Diva' campaign. This saw thousands of users voting for Kareena Kapoor, Priyanka Chopra or Bipasha Basu as their best dressed style icon.
 
P&G to enter Indian skin care market
4 Aug 2007, 1740 hrs IST,PTI

NEW DELHI: US-based FMCG firm Proctor and Gamble (P&G) on Saturday announced its foray into the Rs 2,100- skincare market in India with the launch of a range of products including an anti-ageing cream.

The skincare market in India has been growing at 16 per cent annually and is currently valued at Rs 2,100 crore.

"With the launch of four new 'Olay' brand skincare products, we are want to establish a strong presence in the country," P&G India Marketing Head Sumeet Vohra said in New Delhi.

The anti-ageing cream, Olay Total Effects, has been launched in six metros in the first phase and has been endorsed by former Miss Universe and actor Sushmita Sen.

Vohra said the anti-ageing products market in India is currently at Rs 60 crore. It has doubled in the last three years and would continue to grow at a faster pace, he added.

Globally P&G's personal care market is to the tune of 20 billion dollars, of which two billion dollars are contributed by 'Olay Total Effects'.

Asked about the kind of market share the company is looking at in India with the launch of the new product, Vohra said the anti-ageing products market was still nascent in the country, so there was ample scope for the company to grow.

"Initially 'Olay Total Effects' would be available at around 2,000 outlets including hyper retail stores, chemists, beauty advisors and the existing distributors in Delhi, Mumbai, Kolkata, Chennai, Hyderabad and Bangalore," Vohra said.

The company has planned huge investment on electronic and print media including online promotion for publicity and marketing of the product.
 
India Inc’s import intensity of exports slides as rupee rises
6 Aug, 2007, 0537 hrs IST,Tushar K Mahanti, TNN

Indian policymakers are facing a new dilemma. The rupee has been appreciating sharply against the dollar — it has appreciated by 11% since August last year — something they did not experience often in the past. A huge current account deficit in the US and steady capital inflows are expected to strengthen the rupee further in the coming months.

The appreciation of rupee, of course, has come as no surprise. The mounting foreign exchange reserves over the years always had the potential for a stronger rupee and it was the intervention of the central bank that kept it from a dramatic rise. But even the central bank now finds it difficult to restrict the forward march of rupee.

The question is: How will the appreciation of the rupee affect our economy? The immediate impact will be on our exports, economists argue. And if in terms of volume, exports do not suffer significantly in the short run, earnings will decline due to lower realisation in rupee terms. This is reflected in the fall in export growth in the current year. Exports have grown 18.1% in the first quarter against 28% targeted for the whole year.

Exporters attribute the dip in growth rate to the appreciating rupee and have warned that the poor realisations due to appreciation of rupee is impacting their competitiveness, forcing them to cut down on their order bookings.The strengthening of rupee, however, has a brighter side too. As imported goods become cheaper and global competition gets intensified, corporate India will be pressurised to raise productivity. This will benefit the domestic consumers as not only the imported goods will be cheaper but the domestic manufacturers too will be compelled to cut prices to retain their market shares.

But that will be in the future. For the present, Indian companies seem to suffer heavily from rupee appreciation as import intensity of exports is falling. An ET survey of 150 large companies finds that their import intensity of exports, measured as number of times imports as percentage of sales over exports as percentage of sales, has declined from an already low 0.87 in 2005-06 to 0.83 in 2006-07.

What is significant is that the fall in import intensity of exports during this period was largely due to higher shares of exports in sales and not because of rise in the share of imports in sales. That is, although the companies will lose in export earnings due to appreciation of rupee, they will not benefit the same way from imports.

The share of imports in sales has nearly stagnated at around 24% — up by only 0.6 percentage points from 23.7% in 2005-06 to 24.3% in 2006-07. The share of exports in sales at the other end has increased by more than two percentage points during this period from 27.4% to 29.5%. A stronger rupee is now feared to change the equation.

The worst affected has been the engineering industry. The average import intensity of exports of 11 engineering companies in the list has declined from 1.31 times in 2005-06 to 0.90 last year. This was because of the sharp rise in exports — up by 80% against 24% rise in imports.

The import intensity of exports of the drug and pharmaceutical industry, which was already very low, has declined further from 0.53 times in 2006-07 to 0.43 in 2006-07. But more than the fall in import intensity, what will probably affect the drug and pharmaceutical industry more is its dependence on the export market. Appreciation of the rupee will reduce its export earnings proportionately.
 
Wanna attrition-proof your co? Go for expats
6 Aug, 2007, 0105 hrs IST,Vivek Sinha & Chaitali Chakravarty, TNN

NEW DELHI: Want to attrition-proof your company? Start recruiting expatriates. They are anonymous, focused and not part of any “old boy” network. Indian employers are discovering that expats, apart from bringing capabilities scarce in the country, are also more reliable and seldom jump employment contracts.

While many Indian professionals would dismiss this and say it is merely to fill gaps in the talent crunch economy, Indian firms in private agree that “expats in key positions” bring stability in operations. In the past two years, expats have come in large numbers, especially in sectors like oil and gas, energy, construction, training, aviation design and retail.

Hindustan Construction alone has 80 expats, Reliance Retail has about 100, AV Birla Retail’s top operation team comprises mostly expats (it has around eight) and Dabur’s health and wellness retail project is headed by an expat who will be assisted by two more.

Managing partner of head-hunting firm Transearch, Uday Chawla, says unlike senior Indian managers, expats are unknown faces, both for head-hunters as well as companies. They are not part of an alumni or any other “old boy” network. So, the chances of them being poached are that much less.

For instance, the new expat head of Dabur’s retail venture, Peter Baker, feels that hopping jobs may not be possible as he is in India on a purpose. Also, he is unfamiliar with the market and its people. “Besides, I am well taken care of,” he says.

However, the global head of Lee Cooper, who’s also had a stint with AS Watson in Hong Kong, feels that expats have just started coming to India in large numbers and it may be too early to draw conclusions.

But at the moment, the main reason for expats’ stickiness to jobs is related to work permits. When an expat is hired on a contract, the work permit is sponsored by the employer. While it is technically possible for the employee to cancel the current work permit and get a fresh one to be sponsored by the new employer, it almost never happens.

“Getting a new work permit in itself is a disincentive for switching jobs,” says a head-hunter. This apart, the expatriate employee also sticks to the job for the project bonus — an effective tool to retain them.

As Mumbai-based HR consultancy firm Cerebrus Consultants’ CEO Anita Ramachandran explains, “While retention bonuses are there for Indian employees as well, they are compensated with a joining bonus by the new employer in case they leave before term. The big-packet joining bonuses are not common abroad because there are more people to do the same job. Also, India’s growth story allows the employer to pay huge sums as sign-on bonus.”

While this may be the case, HR heads agree that expats are quite conscious of their reputation. They know they are in India on a mission and any snafu would make the next assignment difficult to come by. “But this is not to say they are more loyal than Indian professionals,” says the HR head of AV Birla group, Santrupt Mishra.

There is also the factor of market knowledge. Says BPO service provider OfficeTiger’s vice-president, HR (APAC), Vishal Mehra, “Our experience has been that expatriates tend to stick to their jobs in India for any or all of the following reasons: they’re new to the country and therefore anxious about moving jobs, they’re not sure about the Indian job market to look elsewhere and they’ve come to India on stringent contracts drafted in the US.”

“By contrast, the average Indian employee knows the job market well, is familiar with the head-hunters and possesses greater brand awareness. So he is likely to get more offers and move,” he adds. OfficeTiger, which was acquired by US-based RR Donnelley, has expatriates working across mid-senior levels.

But there is also a flip side to hiring expats. They may not like the culture of the work place and since most of them are located in Mumbai and Delhi, they often complain of the harsh climates. Head-hunters say the phenomenon of getting expats with a specific strategy to ensure that he or she does not leave is observed in areas such as oil and gas, design and R&D.
 
The Wild One machismo seems to be surrendering
6 Aug, 2007, 0346 hrs IST,Moinak Mitra & John Sarkar, TNN

NEW DELHI: When a girl taunts a beret-capped, leather-strapped, Hog-hogging Marlon Brando in the 1953 Hollywood classic, The Wild One , with a ‘What-are-you-rebelling-against?’ query, Brando shot back with darting eyes and a terse ‘Whaddya got?’ That was attitude with a capital A, peppered generously with cynicism, that bikers over the years have imbibed and reflected. True, sales of motorcycles are down 14.5% in the first quarter and the roar is beginning to sputter with rising interest rates.

But inflated interest and the exit of financiers from certain high-volume but risky markets alone don’t quite justify the bumpy ride down south. Perhaps, the Brando-like attitude is changing and new riders would rather be safe than sorry. Or, is it more affordable four-wheelers with CNG and all? Maybe, more women in the workforce who’d rather prefer to scoot to work than thunder in on a bike. ET pulls up by nosediving motorcycle volumes to get one up on the phenomenon.

The 100-125cc commuter segment (Rs 30,000-Rs 45,000), the mainstay of the motorcycle industry until now, is the worst affected as manufacturers in the quest for better margins are focusing largely on high-powered bikes.

From 1996 to 2006, motorcycle volumes grew from 0.8 million to 7 million, as the two-wheeler market (which also includes scooters) boomed from 3 million units to 8.4 million units in the same time frame. Clearly, motorcycles were the mainstay of the volume-driven two-wheeler market. But somehow the wheels are not clicking anymore.

In the April 2006-07 period, scooters have registered 10.2% growth, whereas bikes are down 9.7%, although in sheer volume terms, motorcycles score over scooters, with 84% share of the 8.4-million odd units market.

But it’s not only the stagnation that’s cause for concern. An NCAER-Maruti Suzuki study conducted last year showed that there is a potential of nearly 1.14 lakh two-wheeler owning households switching to cars within three months from the date of the survey. Taking into consideration India’s bullish economy, that number would have increased manifold.

An EMI checklist at this juncture between high-end motorbikes and basic cars reveals a narrowing gap too. Blame it, maybe, on growing per capita income and consumerism. So, the Bajaj Pulsar 180-cc bike costs Rs 63,621 in Delhi, and at 12% interest, over three years, the EMI works out to Rs 1,622 after a down-payment of Rs 22,000.

The on-road price of a non-AC Maruti 800 in Delhi sits at Rs 2,13,856. This works out to an EMI of Rs 3,126 over seven years at 12% interest. Now consider the deal from Maruti True Value refurbished second-hand non-AC Maruti 800, which sports a Rs 1,25,000 tag. Interest rates are higher for second-hand cars. Given the 17% interest charged by True Value, on a three-year run, the EMI tots up to Rs 3,500, which over five years, sits at a paltry Rs 2,400. Bottomline, for many buyers, the difference between Rs 1,622 and Rs 2,400 is fading, and fast.

Even a look at the rural-urban split of the motorcycle market is unfavourable to volumes. Almost 51% of the motorcycle sales in the country come from rural India, which largely comprises the commuter segment. However, financing options in rural areas is low and the industry figure sits at a paltry 30%, which was just 12% three years back.

For the village folk, their purchasing power depends on rural prosperity, which is cyclical in nature. Moreover, RBI’s ‘Know Your Customer’ criteria is very stringent and hinders credit offtake. So financiers in rural areas have upped the ante as default rates have touched 3.5-4%, which is unacceptably high,” says S Sridhar, CEO of Bajaj Auto.

The tightening of liquidity alone hasn’t hit motorcycle volumes. “Apart from the growing second-hand car market, there is an anticipation of a Rs 1-lakh car in the horizon. Besides, the ownership of a car is a sign of arrival and four-wheelers enhance image and safety,” says author-sociologist Ramachandra Guha. “There are also more women in the workforce today resulting in a sharp offtake of scooterettes, which is seen as a sign of convenience for women. They can even wear a sari and ride a scooter,” observes Mr Guha.

For Honda Motorcycles & Scooters India (HMSI), its scooter offtake over the last one year has been encouraging. “Since scooters are a means of comfort and convenience, the market is shifting toward scooters. Furthermore, the growth really is in automatic gearless scooters, which are unisex in orientation,” says Sanjay Gupta, senior manager, marketing, HMSI. An in-house study by the company shows that 60% men buy its fastest-selling Activa scooters for co-use (both spouses ride).

Add the scooter cannibalisation to the threat from the tube, and it’s a recipe for disaster for the commuter bikes. As per a Delhi Metro Rail Corporation (DMRC) urban study, since cars provide safe door-to-door service, car users are not likely to shift to the Delhi Metro. Therefore, typically, bus and two-wheeler users will make the switch.

Delhi Metro carries 6.5-lakh passengers each day and around 70% of them are literate, says Anuj Dayal of DMRC. According to a recently conducted survey by the Central Road Research Institution (CRRI), Quantification of Benefits from Implementation of Phase-I of Delhi Metro, owing to the Metro in the Capital for the last five years, as many as 34,985 motorcycles have come off the roads as against 17,403 scooters. On average, 2.5 lakh bikes are sold in Delhi every year.

A recently conducted Upgrader Survey by Maruti Suzuki points out two interesting observations — the youngsters who bought bikes now prefer cars since ‘it is not good to take girls out in the open’. Secondly, a car is much safer than a bike. “About 70% of True Value buyers switch from the two-wheeler category, of which 28% are first-time vehicle buyers,” claims a Maruti executive. Industry figures for the pre-owned car market stands at one million cars today, which is growing at a scorching 30% each year. “

But this figure is only 40% of the total market, since 60% of the market is still unorganised and transactions happen at a personal level from customer to customer,” says a Maruti executive. At the same time, sales at Maruti True Value, already accounting for around a fifth of company’s total cars sold, is doubling every year.

Even Hyundai Motors India is aggressively looking to tap the pre-owned car market. Arvind Saxena, V-P, sales and marketing, says, “We want to expand the Hyundai Advantage to 50 dealers from 23 dealers this year. Last year (July to December), with seven dealers we saw a sale of 210 cars.

This year (from January to July) we sold 1,542 cars.” Hyundai Advantage dealers have a sales target of 15% of the total retail done through their showrooms. With big car makers aggressively pushing their new cars sales through upgrades of either existing old-car or two-wheeler owners, obviously the throughput velocity in the old car market has increased many-fold, and obviously some people who may have gone for a bike are now straight away graduating to old cars, and many of these in smaller cities and towns across the country.

Though it’s hard to determine the country’s second-hand motorcycle market for want of an organised structure, it is substantial. “More second-hand bikes sell in rural India than second-hand cars in the sub-Rs 20,000 bracket,” claims Yezdi Nagpurwalla, auto analyst at KPMG. At rock-bottom prices, many in India’s villages don’t even care to register their bikes. But clearly, the village-bound motorcycles are utility vehicles owing to joint families and the nature of work from farm to farm. “The (second-hand) commuter segment bikes die a natural death in cities since their offtake is minuscule, with ready finance options and spoilt-for-choice consumers,” he adds.

But bike makers aren’t ready to declare war yet. A senior official from one of biggest two-wheeler manufacturers in the country dismisses the threat from four wheels as being as temporary as a popped clutch. “It is improbable that car sales are eating into bike sales. Maintaining the car is a big issue for a first-time buyer,” he says. “Taking into consideration the fuel charges and parking problems (parking charges are more too), it’s going to be difficult for him. If the user wants CNG, the price of the kit will be an additional expense too. Sales in the two-wheeler industry have been hit in the entry segment, where a bike would cost around Rs 35,000. So, it’s a tall claim that car sales are eating into bike sales,” he adds.

Conflicting views apart, the real folks’ wagon today seems to be the four-wheeler. Plummeting car prices, scooting women, the convenience of the metro and surging affluence are perhaps applying the brakes on motorcycle volumes. Alas, machismo seems to be surrendering to the girl’s taunt in The Wild One—it’s the rebel without a cause.
 
Served Right
6 Aug 2007, 0256 hrs IST,TNN

As the economy continues to evolve and people have more disposable income in hand, the travel, tourism and hospitality sector has witnessed a phenomenal accretion. Where 10 years ago, the industry was not yet fully developed, the advent of multinational hotels and the boom in Indian tourism has resulted in the emergence of a streamlined, efficient and focussed segment. The demand for professionals in the hospitality industry too is at an all-time high.

The careers in this field are manifold, ranging from high flying managers, directors and chefs to the more subdued receptionists, housekeepers and stewards. If you have the right aptitude and personality, the hospitality industry provides ample opportunities to leave your mark.

Current scenario

Going by the recent growth rate, it is anticipated that the hospitality sector will continue to grow rapidly in the country. Hence, it is not surprising to see that today, hospitality graduates have a wider range of options to choose from, as compared to a few years ago. Explains Ruchita Verma, principal, ITM Institute of Hotel Management, "The market for hospitality is growing by leaps and bounds due to shifts in society and a surge in tourism. There is a huge gap between the demand and supply of trained hospitality workforce along with the challenges of attrition which the service sector faces. This has resulted in an increased demand for trained hospitality professionals. To fulfil the growing human resource demands of the industry, numerous schools of hospitality have sprung up.

No longer limited to five-star hotels, the hotel industry includes fine dining restaurants, travel agencies, luxury resorts, high-end casinos, sports venues, cruise lines, health spas, theme parks, etc. Points out Tanmay Arurkar, a chef management graduate, working with the Taj group of hotels, "The industry holds great promise since it draws a large amount of money and talent. Jobs in the hospitality industry are lucrative wherein professionals get to meet high profile guests and attend to them. This makes it attractive for many people and also improves their confidence and grooming style." According to Rattan Keswani, executive vice president, Oberoi Hotels and Resorts, the growth of a number of hotels in various categories is responsible for the upswing in the hospitality industry.

Also, employers around the world are looking towards qualified graduates who are expected to possess a superior level of training over a person who does not have a specialised hospitality degree. Keeping this in mind, a number of institutes in India are offering specific courses in hospitality, with the result that a prospective student need no longer look towards an international education as a stepping-stone to a career in the hospitality industry.

Getting in

A class XII pass grade in science, commerce or arts is sufficient to make one eligible to a hospitality course. However, most schools require students to perform satisfactorily at the entrance exam, whether it is the all-India entrance exam or a separate examination conducted by a private institute. At the all-India exam, students have to prove their proficiency in subjects such as English, general knowledge, reasoning and logical deduction, numerical ability and scientific aptitude. Besides this, questions are also asked on the service sector. Ranks are allotted to students and admissions are given. There are 4000 seats available all over the country, and most states have an institute that is affiliated to the national exam. The advertisements for the centralised admissions are published in leading newspapers in the months of January and February and the exam is generally scheduled for April.

Private institutes that conduct separate examinations have their own set of subjects and grading criteria to judge the students they take in. In certain cases, group discussions or personal interviews are also conducted. Explains Ruchita, "The hospitality industry is all about 'handling people'. No matter how clichéd it sounds, it is about pampering people and making them feel at home. Qualifications add operational value and make you aware of the processes." Besides, many institutes offer campus placements to top- level companies such as the Taj group of hotels, ITC, Mc Donalds, Pizza Hut, etc, making the recruitment process simpler for students.

Career options

The hospitality field offers a wide range of career options in hotels, restaurants, resorts, spas, ships, airlines, clubs and any other place where people go to relax. Says A D Bagul, UDC at the Institute of Hotel Management, Catering Technology and Applied Nutrition, "In a basic hospitality course, one can specialise in either of four options, ie food production, front office, food and beverage service and housekeeping. Besides these, as one moves up the hierarchy, one can also become a manager, administrator or vice president of either of the four options."

(a) Food production: This involves working in the kitchen of the organisation. Job options include that of a chef, sous chef, commis and chef de cuisine. One could also establish positions such as an F&B manager.

(b) Front office: The front office involves welcoming guests and attending to their problems and concerns. This includes jobs of a receptionist, lobby manager, cashier, captain, travel desk manager, and so on. One can move up to managerial positions including a duty manager, guest relations executive, customer care executive etc.

(c) Food and beverage service: This involves service of any kind of food or beverages to the customer. Typical jobs are those of a steward, butler, bartender, or host/ hostess. Managerial jobs include the head, vice president or general manager of food and beverage.

(d) Housekeeping: It involves taking care of the requirements of guests in their rooms. Housekeeping includes two positions- the housekeeping executive/ assistant and housekeeping manager. The assistant is in charge of manually doing the work, while the manager is responsible for supervision.

The right personality

Says Ruchita, "You need to be a people's person and strive to make your customer feel at ease. You must have a pleasing personality and gifted communication skills." Since the industry is all about providing service to customers and making them feel spoilt and at home, one needs to have dedication, tolerance as well as the ability to work flexible hours. According to Keswani, "The right attitude and listening skills contribute a great deal towards one's success." Also, the person must have an avid interest in travel, tourism, and entertainment.

Overseas - a better option?

For many people, the study of hospitality management is synonymous with a fancy school in Switzerland. However, over the years, India and other countries have proved to be equally good options. Affirms Keswani, "We do not particularly prefer to hire students with a foreign degree. Ultimately, it boils down to the content taught and the candidate's ability to learn, not the location of the school."

Elucidates Ruchita, "Although Swiss schools are very skill- focussed, a Swiss diploma may have a slightly limited acceptability across the globe for continual education. Also, the skills imparted by Swiss schools are similar to those taught in Indian institutes. However, Swiss schools do not impart research, which adds more value to your professional life and helps you analyse and synthesise information to make better decisions."

Conversely, Arurkar believes that employers do give preference to students having an international degree. "However, unfortunately for them, most students who go abroad do not return to work in India, which leaves employers with no choice but to hire candidates with degrees from Indian institutes," he explains. Agrees Prathamesh Kakirde, a hospitality graduate, who has worked with hotels such as the Taj President and Hotel Intercontinental, "In my experience, I have found that employers prefer students with international degrees. This does not mean that an Indian degree isn't good. The Indian education system has evolved to provide quality education at reasonable rates, leading to the inception of a number of good hospitality institutes in the country."

Remuneration

The salaries offered differ by virtue of the individual's personality and the institute from where they complete their education. The bigger the organisation, the fatter the pay cheque.

Generally, fresh graduates are hired as management trainees with an average salary of Rs 7,500 to Rs 12,000 per month. As they gain experience, salaries can even go up to Rs 50,000 per month.
 
Stronger rupee: End of India`s export boom?
Kalpana Kochhar & Andrea Richter Hume / New Delhi August 06, 2007

The high profitability of India's corporate sector should buffer the costs of rupee appreciation.

Since March, the rupee has risen sharply, by roughly 9 per cent against the US dollar, to a nine-year high. The rise has also been significant in what economists call “real effective” terms, meaning appreciation that is adjusted based on inflation, and measured against the currencies of a range of India’s trading partners. This trend has brought a chorus of concerns that the strong rupee is eroding India’s competitiveness, and that it represents a threat to the country’s buoyant export growth. These concerns are overstated.

All else being equal, exchange rate appreciation will, of course, make India’s exports more expensive, and hence less competitive. But all else is not always equal. For starters, the rupee’s appreciation has lagged behind the regional trend. For example, between July 2005—when the Chinese renminbi was revalued—and December 2006, most regional currencies appreciated by about 10 to 20 per cent in real effective terms. At the same time, the rupee actually depreciated by about 4 per cent.

Moreover, the exchange rate is only one of many factors that determine an economy’s ability to compete. Since India is becoming more competitive along other fronts—for example by boosting productivity and improving business conditions—export growth can remain buoyant despite a stronger rupee. Finally, and equally important there are benefits to a strong rupee. Corporations benefit from cheaper imported inputs, and households benefit from increased buying power.

In any case, a weaker rupee would provide no guarantee that exports would grow faster. India’s experience during the 1970s and 1980 makes this clear. Even though the rupee lost more than half its value in real terms against the U.S. dollar, exports grew slowly, and India’s share in world trade fell by a third.

A survey of Asia illustrates how strong export performance can go hand-in-hand with a strengthening currency. In Korea, for instance, export growth averaged 20 per cent per year between 2003 and 2006—even as the won appreciated about 23 per cent in real effective terms. Exports in Indonesia and Thailand have also grown rapidly despite stronger currencies. Even India’s 30 per cent export growth—the fastest export growth in 33 years—was achieved in 2005, when the rupee appreciated by over 4 per cent.

Rapid productivity growth plays an especially important role in explaining why a country’s export performance can remain robust even when its currency strengthens. Again, the experience of the fastest-growing Asian economies is instructive. In Korea, industrial productivity growth averaged over 6 per cent between 1972 and 2004. This was significantly higher than in the United States and Japan, where industrial productivity grew by a mere 2 per cent and 2½ per cent, respectively, during the same period.

In India, strong productivity growth, robust corporate profits, and corporate pricing power augur well for continued competitiveness in the medium term. Over the last 15 years, total factor productivity growth—the productivity of capital and labour taken together—has averaged about 2 per cent per year, more than double that in the U.S. for the same period. With total factor productivity growth expected to rise to 2¼ per cent in the coming years, India should continue to gain competitiveness. In addition, service exporters may have some scope to raise prices, especially in industries that focus on customer-specific services. Finally, the high profitability of India’s corporate sector should buffer the costs of rupee appreciation.

Where does this leave monetary policy? The Reserve Bank of India remains under pressure to resist the strengthening of the rupee by buying foreign currency. But the liquidity that such intervention would create could stoke inflation. And to mop up the impact of this liquidity, the Reserve Bank of India would have to issue bonds, possibly at higher interest rates. This could encourage further capital inflows and further appreciation pressure. Moreover, given the productivity-driven momentum of the rupee’s appreciation, intervention is unlikely to be successful in the long run, since financial markets expect the rupee to appreciate eventually.

The best policy response would be to push ahead with reforms to boost competitiveness. The list is well-known. It includes investing to address the very serious problems in infrastructure, which cost an estimated 1 per cent per year in foregone growth. It also includes reducing import duties on capital goods to stimulate investment. Other possible measures include making labour markets more flexible to encourage job growth and a more efficient allocation of workers, and scrapping small-scale reservations to promote competition and innovation. Reforms in education are also vital to address the critical shortage of skilled labour. Finally, continuing to rein in fiscal deficits will make room to fund infrastructure investment. Implementing these measures on an aggressive footing will give India the best chance of realising its full export potential, and it will make currency appreciation less worrisome.
 
THE DE-BUG UNIT
Heidi Benson, Chronicle Staff Writer
San Francisco Chronicle
Sunday, August 5, 2007

The vice principal of his San Jose high school looked him right in the eye.

"Raj," he said, "you'll never be anything but a high school dropout."

At the time, "it was just like an after-school special," Raj Jayadev recalls. "I thought, 'Are you kidding me?' " Such an ego-punch could have been flattening. Instead, he took it as a challenge.

"After that, I was motivated to prove that other people weren't better than me." A decade after his teacher's taunt, Jayadev had earned a political science degree from UCLA, won a Rockefeller Foundation fellowship, founded a nonprofit in Silicon Valley called De-Bug and been named by Utne Reader one of "Thirty Visionaries Under Thirty."

In bestowing the title, Utne Reader described De-Bug - Jayadev's magazine and its offshoots - as a "combination zine and collective of workers, writers and artists that educates temp workers on their rights as employees," and "aims to inspire a rage to take action."

The glass door doesn't quite fit the frame at De-Bug's bare-bones office, which is inside the labyrinth of the Koll Circle industrial park in San Jose.

With a jostle, it opens to a kind of lobby, where Jayadev, 32, perches on the arm of a couch, his feet on the coffee table. Wearing a blue-gray T-shirt, jeans and Converse All-Stars, his head sleekly shaved and a tiny gold hoop in each ear, Jayadev has striking good looks and a low-key manner.

Just now, he is in the middle of an on-camera interview with a student from Santa Clara University, part of an oral history project for her multicultural journalism class. This is history to the 20-year-old blonde behind the Canon videocam. Founded in 1999, De-Bug is pre-millennial.

Jayadev squirms when people ask how the magazine's doing. "I don't really care how the magazine's doing," he says.

"I care how the people are doing. They could outlaw magazines in San Jose, they could kick us out of our office, unplug our electricity and take our computers, but we would still come back to that same Vietnamese restaurant and ask each other 'What do you want to do now?' "

After his video interview wraps up, Jayadev heads for that restaurant, Chez Croissant on First Street, where the group that became De-Bug first started meeting after work. He orders beef Pho and, using chopsticks to spiral noodles into a white ceramic spoon, begins to talk about his life.

Born in Milwaukee in 1975, he is the youngest of Leela and Tumkur Jayadev's two children. The Jayadevs had emigrated to Wisconsin from southern India after his father won an engineering scholarship - the beneficiary of affirmative- action programs launched after the nation won independence from Britain. "They came before 'the wave,' " he says, alluding to a swell in emigration from India to the United States 20 years ago.

In 1990, the family moved to San Jose; Jayadev was in junior high. By the time he entered Lynbrook High School, he had become a problem kid. He was skipping class and getting into trouble. When he dropped out during his junior year, his parents were stunned.

It didn't take long for him to regret it. That's when he went to the vice principal. And, after that snub, he took his high school equivalency tests and went on to junior college.

"That's when I started really getting into school," he says, and then he set his sights high, on UCLA, "the biggest-name school I knew." He got in, entering as a sophomore and a spring transfer student. The first time he ever set foot in Los Angeles was the day he moved into the dorms.

"I was this random guy who just showed up," he says, laughing. "But I felt so lucky. I remember thinking someone was going to come up to me and say, 'It was a mistake, and you have to go.' " He majored in philosophy, switching to political science after being electrified by a course in globalization taught by a woman from India.

"Until then, I hadn't met many role models," he says. She gave him what he calls "permission to be creative." Until then, he had never seen himself as a part of any group. But soon he became politically active, founding a South Asian student group focused on political identity.

"I was all about being South Asian," he says with a laugh, then grows thoughtful. "A weird thing happens with children of immigrants. You distance yourself from your background. But sometime in your late teens, the pendulum swings, and as dismissive as you've been about your ethnicity, it becomes the source of pride and identity."

When his parents asked what he wanted to do when he graduated, he said he planned to organize workers in India. "You think you can do what 100 Indians couldn't do?" his father asked. "You don't even speak the language."

College exposed Jayadev to the notion that the way to get ahead is to fill out an application.

When he found himself in the counseling center just days before commencement, he studied an array of glossy brochures. A leaflet caught his eye: "In five lines," it said, "tell the Oakland-based LeFetre Fellowship for Youth of Color why you should receive one of seven annual traveling scholarships." He filled it out and won a monthlong summer fellowship to India.

"I was totally fired up, I was at the peak of my rhetoric," he says. "I had all these romantic ideas about Gandhi and spirituality. I had researched all these 'social movement groups' I wanted to meet," he said. In such a state, he found his initial assignment - teaching basketball - deflating. But eventually, he was able to meet with these groups, traveling with tape recorder in hand while en route to his father's village in the south.

"On the train down, everything's collective," he says. "You're with people for a week. There are fewer social barriers than on the Greyhound here. If you've got a bunch of bananas, someone will just walk by and pull one off. I had a toy for my nephew that I was really pleased with, so I was playing with it. I passed it to the guy next to me, so he could play with it, and then he passed it to the guy next to him." It went all around the car before he got it back.

In his father's village, he stayed with his grandmother. He learned about his people, the Veershivaites (devotees of Shiva), and heard the language ( Kannada) that he had resisted learning.

"It was wild to visit where my father walked," he says, noting that his father didn't own shoes until he was in his teens. "They don't have concrete. There's one room for the people and one room for the cow." Jayadev learned that the history of the Veershivaites, a monotheistic branch of Hinduism, hinges on a mixed-caste revolt that was ultimately unsuccessful. "It was the story of a people who believed that everyone was equal," he says. "That's how our people started. It was there the whole time, but I'd never thought about it or cared."

He was riding a bus when he had another epiphany. "I looked up, and for a split second I tripped out, because all the guys look like me. All the older guys look like my dad. All the women look like my mother and sister," he says. "It seems superficial, but it meant a lot to know that I physically fit in. That I come from a place. There's a reason for me."

Once Jayadev got home, his only ambition was to return to India. "Here, everything seemed an indulgence," he explains. "In India, life is so precious, so fought-for. I wanted to live the principles I'd learned there."

To earn money for the trip, he got a temp job at Hewlett-Packard. It was 1998, and the dot-com boom was in full flower. "Silicon Valley was a rock star," he recalls. But he wasn't rubbing elbows with digital zillionaires. He was working on the assembly line, boxing laser-jet printers alongside the folks who keep the new economy humming - for $8 an hour. By his side were people of all ages and many ethnicities, from single mothers to grandfathers.

"You get to know people well when you're working these jobs," Jayadev says. "When you start work at 6 a.m., you're pretty raw. There's no pretense. You just woke up." His co-workers warned him to keep an eye out - the plant's temp workers' paychecks were being shorted. Repeated complaints had been made. The human resources department of the temp agency was looking into it. But nothing had been resolved and the shortings continued.

Inspired, Jayadev wrote a petition demanding that paycheck issues be resolved immediately and that all lost wages be reinstated. Co-workers passed around the petition, even translated it. Their enthusiasm took him by surprise. They were supporting their families on temp jobs - "they had the most risk and the least hope of change," he explains - and still, they wanted to sign their names. As one woman said, "I want them to know it's me."

Amazed by their courage, Jayedev asked one co-worker, an African American man in his late 50s, why he signed. "Because I know this stuff works," he told him. "My brother and I were involved in the civil rights movement back in the '60s." He remembered that as a time of dignity.

Another co-worker - a Hispanic woman in her mid-40s, born in the Central Valley and now putting her daughter through college - told him she signed because she remembered her mother taking her to the fields during Cesar Chavez's farmworkers' strikes.

"These people had a point of reference in their lived experience," Jayadev says. "They knew collective action works." When the petition was presented to the temp agency, it was just the leveraging tool they needed. "Every pay issue was resolved in two weeks, and it never came up again," he says. The lost wages were reinstated. It was a huge victory.

"The raw virtues - including courage and compassion for fellow workers - trumped all the other reasoning," he says. "That stuck with me, even now."

During this period, Jayadev began keeping a journal. He recorded the wisdom passed along by those working beside him in the shadow of the dot-com boom. Many were older Indian immigrants, who considered themselves his "automatic aunties and uncles." "They'd look out for me, give me advice - and ask when I was going to get married," Jayadev recalls. (He is in a long-term relationship with a woman who is also an activist.)

They told him their stories - how they came to this country, what they hoped for their childrens' futures, the sacrifices they had made. "Some were engineers or professors in their home countries - India, Somalia, Ethiopia, Central America," he says. "They were well-educated and successful, but it didn't transfer. Their supervisors were in their mid-20s, making at least a dollar more an hour, but they treated them as inferiors.

"People weren't really talking about that side of Silicon Valley," he says. But now, he was writing about it.

When a fight broke out on the line, one of his colleagues - an older Indian man from Goa - had a powerful reaction. "This wouldn't happen in India, because there, workers are united," the man said. "You wouldn't pick a fight with your brother." Other workers wouldn't stand and watch, he insisted. They'd intervene and stop it. "After that I picked his brain - he knew so much about organizing," Jayadev says. "All that knowledge was right beside me, and offering me chapati at the break!"

He wrote the story and posted it on a South Asian Web site. Suddenly, he was on the radar. Sandy Close picked up his signal. A long-time champion of ethnic and youth media, Close is executive editor of San Francisco's New American Media, a national coalition of news groups. After reading Jayadev's work online, Close invited him to be part of a television panel discussion on the "digital divide."

"Raj is a dazzler," Close says. "He has literary gifts but an organizer's instincts. That's a rare combination, and he's been very true to it."

Over coffee after the broadcast, she asked Jayadev if he knew others who could write about working in entry-level Silicon Valley jobs. He promptly enlisted a small band of co-workers from HP, explaining that New American Media was looking for stories from their lives.

Meeting to share ideas once a week at Chez Croissant, they soon had enough stories for a two-page spread - called "Voices of the Young and Temporary" - in a weekly publication of New American Media called Youth Outlook.

They delivered it by hand to lunch trucks all over Silicon Valley, and the publication was snapped up enthusiastically. "For a lot of people, it was the first time their reality was reflected," Jayadev says. Encouraged by their success, the group was determined to stick together. They found a name for their enterprise on the assembly line, where "the de-bug unit inspects a malfunctioning product, finds the root cause and corrects it," Jayadev explains. "That's what we wanted to do with the magazine."

The focus wasn't on learning skills, but on answering questions: Who do we want to become? What do we need to get there?

"The better we got to know each other, the closer we got. And the more we found that people wanted to talk about everything that mattered to them, not just work," Raj says. "They wanted to talk about their neighborhood, home life, relationships, even God."

With the help of a grant from New American Media, Jayadev and his band of young lower-wage Silicon Valley workers created a grassroots media group: They launched Silicon Valley De-Bug, a bilingual magazine of writing and art. It comes out in print form every other month or so; an online version is updated more often. They launched a radio talk-show and, with just one video camera and a computer editing program, produce a television show that can be viewed on the Web site (www.siliconvalleydebug.com). De-Bug staffers consider themselves activists as well as citizen journalists.

"All the media stuff is just an excuse for us to build community in a really intimate way," Jayadev tells the Chronicle. "De-Bug is a tool for peoples' transformations. We've seen people break drug addictions, bad family cycles. We've seen people start expecting the world from themselves, when the world expected nothing from them," he says.


"Young people's facility with multimedia puts them ahead of the game," Close says. And they know it, if a recent New American Media survey of Californians, age 18-25, is an indication. The results took Close by surprise. "Where does this extraordinary optimism come from in this generation," she wondered, "especially at a time when it would appear that there is very little to be optimistic about" - including family dysfunction, neighborhood violence, high drop-out rates and rising tuition.

Then she understood: It's the Internet. "You have undocumented kids, kids with no particular support at home - but they're very optimistic," Close says. "They will hand you a business card that says, 'I'm a media content provider.' The Internet has allowed these kids to imagine being part of a global media culture."

The group's latest contribution to the culture is "De-Bug: The Underside of Silicon Valley," an anthology of the best work from the magazine. "Kinko's, that's our publisher," Jayadev says, with his easy laugh as staffers arrive for a meeting one recent afternoon.

They trickle in, in pairs or solo, as they have every week for seven years, meeting at the San Jose Peace Center, founded in a bungalow on South Seventh Street by anti-nuclear activists in the 1950s. This was De-Bug's first home, but staffers hold their weekly meeting here for more than sentimental reasons. The downtown location is handier for people to drop by after work.

Today, in the Peace Center's front parlor, beneath a black-and-white poster of a smiling Cesar Chavez, 10 people take seats around a conference table. The first order of business is "check-ins." As each talks about how they're doing and what they've been up to, story ideas percolate.

"One of my cousins just got out of jail," writer Shana White says. "I asked him about his job search and he said it's not easy, since he has a rap sheet. So he's living with a girl who supports him." He doesn't love her, but he calls the living situation his "program" for staying out of jail. After some discussion, the group agrees he's an in-house gigolo, and not an honest one.

Jayadev is more interested in a larger question: Does the story hint at a social trend?

"There are some people who think they've found a way to beat the matrix by living off others," he suggests. It's a way to survive when you're not part of the economy.

"Maybe it's working temporarily," Jayadev says, "but how do people break that kind of dependency on other people? Has anyone seen examples of people who broke the dependency?"

He isn't running the meeting. He's steering it. And he ends it like a sports coach: "You have something to write, write it."

Even natural leaders have moments of doubt, and while imagining De-Bug's future, Jayadev has had his share. "We're always told we do things wrong, that everything's *** backwards," he says. De-Buggers don't fill particular jobs; their job titles evolve from their interests. "We don't think about the product - how many magazines we can get out. We think about the transformative power of the process."

His confidence in the De-Bug approach got a boost when he got a chance to test it in an academic setting. Jayadev was the youngest of 25 leaders tapped by the Rockefeller Foundation for a 2004 Next Generation Fellowship. The group met in four cities over the course of the year to discuss the "future of democracy."

"When I went to these fancy Rockefeller forums - with these eloquent, well-resumed people - they'd have us discuss race and racial dynamics and they'd bring in an author of a famous book," he recalls. "But when I sat in those circles, it felt like the discussions were 10 strides behind the conversations we were having at De-Bug." After all, De-Bug was engaged from the start in drawing larger themes from everyday experience.

"Asking a group of people in San Jose - 'How do you define yourself if you have to tell someone on MySpace who you are?' - is a way of getting at identity in a more nuanced, and much more real, way than talking to a professor."

One of the Rockefeller fellows, a former White House aide, asked about De-Bug's potential for growth. "Can you scale it?" he asked Jayadev, who laughed and explained that De-Bug can't be franchised, since it takes its shape from the individuals within it.

Still, because of the success of the model, Jayadev soon had to face the fact that De-Bug was growing. Could they do so and stay true to their community values? His concern became a preoccupation. "Discouragement is infectious, just like courage is," Jayadev says. So he kept his worries to himself. Still, his mother sensed that he had something on his mind. Finally, visiting his parents' home one evening, he confided in her.

"She drinks this thing at night - warm milk, sugar and saffron - it helps her sleep," he says. As he was talking, she pulled a saffron stem to the lip of the cup. "Look at how pretty this is," she said. "This is the stem of a really beautiful flower. Imagine the flower." Jayadev thought, "Man, are you even listening?"

Then she tilted the cup so he could see the surface of her drink, covered with saffron stems. "Imagine all those flowers," she said. Jayadev realized she was telling him something about the power of imagination. "She could see all these flowers," he says. "It really put me at peace."

He thought of the positive influence De-Bug could have if it did grow. He thought of the lives that had already been transformed - and how many more could benefit - through De-Bug.

"It's like pulling one of the saffron stems to the edge of the cup," Jayadev says.

"Imagine the flower."
 
Reinvent government to make India liveable
6 Aug, 2007, 0428 hrs IST,ARUN FIRODIA,

Six decades of central planning has not made India particularly ‘liveable’. We all know that rural India (Bharat) wallows in extreme poverty but even urban India is not exactly a Garden of Eden. All the basic amenities of life — water supply, public health, functioning of schools, sewerage and traffic condition — are in a state of disrepair. Those who can afford opt for expensive private alternatives, for example in education or health. And where private services are not possible we just fret and fume.

Who is supposed to fix all that? Way back in 1993 our Constitution was amended (73rd and 74th Amendment). The task of providing basic amenities, viz., roads, water supply, public health, sanitation, waste management, environment, culture, education, slum improvement, gardens, street lights, etc., is now assigned to urban and rural local bodies like municipal corporations and gram panchayats, which form the third tier of government, the first two being central and state governments.

Although it is mandatory, the state governments are extremely reluctant to devolve functions, finances and functionaries to local bodies. Not only that, they have created overlapping authorities like metropolitan development boards, water boards, slum rehabilitation authorities, housing boards, electricity boards, school boards, state road development corporations, etc., leaving only garbage removal as possibly the sole exclusive responsibility of local bodies! Naturally, they are unable to carry out their constitutionally assigned duties of providing basic civic amenities and make India liveable.

The combined budgets of central and state governments are Rs 13 lakh crore. Half this amount is required in the hands of local bodies to make India liveable (presently only 7% is available). But how can central and state governments transfer such vast sums of money to local bodies when they are running huge fiscal deficits themselves? The answer lies in trimming these governments to their core responsibilities. Our central government has 46 ministries, (thanks to coalition politics), whereas Japan has only 10 and the United States has only 15.

Even state governments (e.g., Maharashtra) have 40-odd ministries. The time has come when the central government should confine itself to the tasks that Constitution of India has assigned to it, viz., defence, foreign affairs, etc, and providing viability gap funding for mega infrastructural projects like international airports, nuclear power plants, etc.

Similarly, state governments should confine themselves to what the Constitution of India has assigned to them, viz., law and order, university education, ecology, etc, and viability gap funding of infrastructure projects like roads, irrigation, electric power and special economic zones. What local bodies can do, central or state government should not do. Would you believe that ‘cattle fodder’ is one of the items on the ‘concurrent list’ (i.e., both central and state governments could legislate on that subject)?

When central and state governments shed their non-core responsibilities, they will need just Rs 250,000 crore to carry out their core functions (defence, foreign affairs, law and order, administration, etc). Another Rs 300,000 crore can be earmarked for viability gap funding for infrastructure (power, roads, airports, etc). After providing for interest on government borrowings a whopping Rs 500,000 crore can be transferred to local bodies.

Local bodies should raise at least Rs 100,000 crore through local taxes and user charges so that they have a total of Rs 600,000 crore to spend. And they should spend it to make India liveable.

Urban local bodies should use these funds for urban renewal (mass transit, roads, flyovers, parking, water supply, garbage collection, slum improvement, playgrounds, street lights, etc). Rural local bodies should use these funds for rural renewal (watershed development, irrigation, sanitation, bio-energy and solar energy, primary and secondary education, primary health centres, food processing, food storage, etc). These functions are detailed out in the 11th an 12th schedule of our Constitution.

But many urban local bodies do not have the wherewithal to speedily execute such activities. So we should focus on private-public partnership. A number of cities have shown us the way. Indore has introduced a 50:50 scheme where citizens in a locality get their roads revamped from a private contractor and municipal corporation foots 50% of the bill. Ahmednagar has privatised bus transport and octroi collection. Surat, once afflicted by plague, has become khoobsoorat (beautiful) and so the local citizens don’t mind paying high property taxes. Ralegan Siddhi, a village in Maharashtra has blazed a new trail in rainwater harvesting . And so on.
Most of the rural local bodies possess neither the skills, nor the resources, nor the manpower to execute such activities. Yet they ought to be involved in deciding the scope of rural renewal. ‘Top down’ approach would fail because it would not value local knowledge and initiative .So the following model may be adopted:

Rural local bodies should appoint consulting firms to discuss with the stakeholders to prepare detailed project reports. This report should be forwarded to the district planning board having experts from various fields. Once approved by the board it would be given to a CEO for execution.

The CEO would be a bright young government officer (or a civic minded MBA or an experienced NGO organiser) who would be posted to a cluster of 10 villages. He will be empowered to spend the budget on the approved project. His remuneration/promotion will depend on completion of the project successfully. He will be provided with good living accommodation and his children will be admitted to good schools with hostel facility.

But he would be required to stay in the village and work from there. Out of his tenure of, say, 35 years, he will spend the first 10 years in the rural area and then move up to cities. He will be assisted by 10 officers having skills in different areas relevant to rural needs. We would not need to recruit any extra manpower. The required 600,000 officers could be easily found from among the government and public sector undertakings which employ 1.90 crore people

This way both India and Bharat could become liveable. We may then go on to catch up with China and even surpass it in economic prosperity — in a true democratic fashion.
 
Roads that change destiny
6 Aug, 2007, 0550 hrs IST,Dipal Gala, TNN

For a city that has seen a flood of FDI and employment opportunities opening up to thousands of people, Hyderabad is understandably getting congested and her roads are permanently busy.

The colossal ORR (outer ring road) project conceived by the Hyderabad Urban Development Authority is the answer to all this as it is the orbital linkage to decongest the traffic flow on the existing major arterials.

Aimed at the development of well-planned and well-connected urban settlements around the current Hyderabad metropolitan area, it is perceived tobe the growth corridor which will lead to a balanced spread of townships and commercial areas. It is a fine example of how governments can plan a city piece by piece in a manner that its citizens do feel truly cared for and get to live by global standards.

Thinking Tomorrow

What is refreshing about Andhra Pradesh is the approach to infrastructure projects in the state. Both funding and execution are now in the public private partnership mode and that has brought in a high level of vigilance and international standards. It is said of India that with infrastructure projects it is the requirement of yesterday that is being executed, not even the requirement of today.

But when HUDA (Hyderabad Urban Development Authority) drew up plans in 2004 to create infrastructure that would pave the path for the growth and development of the city, it was looking at the requirements of the next couple of decades. The vision and the sheer willpower of the present government to implement the plans at a pace that can rival other comparable projects in other countries are noteworthy.

Pied Piper Effect

Instead of a piecemeal approach to development, the proposed Outer Ring Road (ORR) in one stroke extends the canvas of Hyderabad city three times. Given its geography, the city can grow on all sides. It is easy to see why the ORR is likely to be the growth engine of the city.

Umpteen real estate developers in the city have taken cue and today Hyderabad is dotted with property projects, many of which are corporate campuses, private integrated townships, row houses, exclusive office and retail space and so on. Villages the ORR plan touches or bypasses are now being viewed as prime land. It is difficult to imagine the absolute interest of the umpteen MNCs setting up campuses in Hyderabad without the promise of the ORR and the private initiatives that have followed.

Creating Value, Long Term

While the national highway development project costs Rs 10-11 crore per km, the ORR costs approximately Rs 28-30 crores. Anywhere in the world, ring roads that surround a city are not easy to construct, and tend to landlock a city.

London, for example, has an elevated ORR. Given Hyderabad’s rocky terrain, innovative designs needed to be conceptualised with the best city planning expertise available in the world (India does not have homegrown expertise at present).

While Rs 4000 crores will be spent on the project, it is estimated that the economic benefits it will bring in will be to the tune of Rs 1,35,000 crores in the first five years itself.

Walking The Talk

The ORR that began in mid 2004 is close to completion of the first 22-km phase. Inspite of the very high international standards, the ORR will be effectively completed in five years. Comparatively, an ORR in France began in 1983 and was completed in 2003.Roads planned in the 60s and 70s made America and parts of Europe what they are today. Hyderabad looks geared to repeat the story, with its unique twist.Just like the bend of a road.
 
Unleashing hidden gems
6 Aug, 2007, 0554 hrs IST,Dipal Gala, TNN

The domestic traveller loves Andhra Pradesh. It has recorded the highest leap in numbers for travel, according to ‘Incredible India’ findings. Hyderabad’s composite and cosmopolitan culture, its good weather and modern feel make it a naturally attractive destination.

The city still retains its old world charm and has a freshness that cannot be seen in done-to-death touristy places. Research shows that it is not just Hyderabad the travellers visit, they now tend to go to various places in the heartland of the state, from Srikalulam to East Godavari.

Whether it is the spanking new Balayogi Paryatak Bhavan, the National Institute of Tourism and Hospitality Management,

the renovation of breathtaking and historical Taramati Baradari, or even the plans to dot the city with budget hotels, efforts are afoot to give the state its due place on the tourism map.

Worldwide, tourism accounts for 10.4 per cent of the global GDP and 8.1 per cent of the global employment. Andhra Pradesh is seriously looking at tourism as an industry and a major employment provider. “We are finally set to harness the direct and multiplier effect for employment generation, economic growth and poverty alleviation with tourism projects in the state,” avers tourism secretary Chitra Ramachandran.

Enhancing private sector participation in the tourism sector with the government working as the facilitator and the catalyst is a key part of the programme. Developing major centres of historic stature and natural beauty such as Vishakapatnam, Warangal and Tirupati with unique concepts such as beach tourism, rural tourism, eco-tourism, medical tourism, and developing the Buddhist and Jain travel circuits is top priority now.

Looking back Chitra says, “Attracting the domestic traveller starts with infrastructure, and the general feeling of well being in India right now just adds to it.” The migration of the IT worker to Hyderabad has led to travel tales all over the country describing the city and its beneficence. For once, the attitude towards tourism is in step with the times – one is likely to see a sea cruise, river cruise in coastal Andhra and an entire temple circuit develop in parts of Warangal. Statewide, spas, entertainment centres, star hotels and budget hotels are in various stages of completion.

Interestingly, it is the bright new ideas era now. Ideas like the Southern Splendour Express train, the Sri Ram Sagar dam project called the “The river country getaway” are a sharp shift from the tried and tested ideas. Why, there is even a plane called Andhra Pradesh now!

A lot of the corporate good will is actually because Hyderabad is now a leading MICE destination and international conventions happen here as a routine. Hyderabad International Convention Centre (HICC) is South Asia’s first truly world class convention centre. The Shilpa Kala Vedika and Ramoji Film City come a close second, and both are exceptionally impressive .

There is something about Hyderabad that gets people to say “wow”. Like we said, the world is Hyderabad’s oyster now!
 
Israel proposes FTA with India, to open second trade office

Jerusalem, Aug. 6 (PTI): Israel has proposed a Free Trade Agreement (FTA) with India to boost burgeoning economic and bilateral ties.

Israel's Deputy Prime Minister and Minister for Trade and Industry, Ellie Yishai, conveyed this during a meeting with Indian Minister of State for Trade and Industry, Ashwani Kumar, who is leading a high-level FICCI business delegation to Israel.

"The wish to renew and deepen bilateral ties were re-iterated during the meeting, outlining major areas of cooperation for comprehensive economic development," Kumar said adding, India will also actively consider Israeli proposal for an FTA.

Israel also plans to open its second trade office in the country, which is likely to come up in Bangalore where several of its hi-tech companies have been active for almost a decade.

High-tech, genomics, nanotechnology, water technology, security systems, agriculture etc were mentioned as some of the areas where existing cooperation could be enhanced and new areas explored.

"The focus on multi-dimensional, multi-faceted comprehensive economic development can give a new dimension to Indo-Israel bilateral ties," the minister said.

The two countries had agreed to consider a Preferential Trade Agreement (PTA), proposed by a Joint Study Group (JIGS), during Yishai's visit to India in December last year.

The two leaders also agreed on the necessity to exchange ideas on creation of jobs with economic growth, something that both Israel and India have been working to achieve.

Several leading Israeli companies have shown interest in investing in India during the minister's visit, with more than a hundred companies registering to participate in a India-Israel Joint Business Council meeting.

The Israeli Deputy Prime Minister has also invited Kumar to attend a water technology conference in October.

Yishai has also shown interest in the participation of Israeli companies in building the infrastructure for the 2010 Commonwealth Games.

The Indian minister will be meeting Israeli President Shimon Peres, Transportation Minister Shaul Mofaz, and several leading Israeli company heads during his two day visit.

The Indo-Israel bilateral trade has registered impressive gains during the recent past with India's export increasing by 10.77 per cent and Israel's by 4.1 per cent, reaching the US$2.7 billion mark.
 
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