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Cisco Plan Will Create 360,000 Network Engineers In India
The five-year strategy builds on Cisco's $1.1 billion investments in Indian ventures in recent years.

By Mary Hayes Weier
InformationWeek, NY
February 4, 2008 11:31 AM

Cisco (NSDQ: CSCO) released on Monday its plan to help India increase its number of networking engineers from about 60,000 today to 360,000 in five years. The plan entails, of course, training and certifying those engineers on Cisco technologies.

Cisco says it has established partnerships and is opening testing facilities to meet that workforce goal. Two of India's largest tech training organizations, IIHT (Indian Institute of Hardware Technology) and NIIT (National Institute of Information Technology), have become certified for training on Cisco technologies. Those organizations and another, Global Knowledge and Training Partner Ltd., have begun Cisco training and certification from 200 locations in India.

Another Cisco partner in India, Pearson VUE, says it will add 150 testing facilities for Cisco certification by the end of the year, including several mobile testing centers to reach engineers in rural areas. Pearson VUE is requiring centers to adopt "increased security measures in order to safeguard the value of IT certifications."

"With these initiatives in place, we are able to ensure that our customers and partners have the resources available to train and equip the thousands of motivated students in India with the knowledge and skills necessary to shape the country's burgeoning information economy," said Leo Scrivner, VP of human resources for Cisco Services & Globalisation Centre East, in a prepared statement.

Cisco inaugurated a new development center in Bangalore last October, and has spent more than $1.1 billion in Indian ventures in recent years, said a Cisco spokesman. A year ago, Cisco announced plans to triple its India-based workforce from 2,000 to 6,000 employees within several years. To support that growth, the company's chief globalization officer, Wim Elfrink, who reports to CEO John Chambers, relocated from the United States to Bangalore last year.
 
Having visited Japan in connection with technology related stuff, I would say the need is for the Japanese to realize that they simply cannot do without learning English. We have had dealings where every single word, presentation etc. had to be translated or we really experienced "Lost in translation" in person.

Indians and others learning Japanese is a minor thing, the need is for the Japanese to pick up the most prominent lingua franca, I.E. Angraizi..there is no other way around it.

Lack of english is the only reason why there isn't any major migration happening into Japan considering that people are willing to migrate even to Australia with an economy 1/7th the size of Japan.
 
Surgeon: Indian ophthalmology is poised for global leadership

BANGALORE, India — With knowledge, expertise and technology, in addition to a growing economy, India is poised to become a global leader in the elimination of needless blindness, said the guest of honor here at the All India Ophthalmological Society meeting.

"I believe Indian ophthalmology is poised very well to become a global leader," said G.N. Rao, MD. "But like everything else in life, if we are going to lead ... it takes certain fundamental changes and a lot of effort to accomplish those tasks."

The opportunity comes in eliminating needless blindness within India, he explained. In order to achieve this goal, Dr. Rao laid out three necessary steps.

First, he said every qualified ophthalmologist should commit to providing quality eye care in a comprehensive manner to the general public.

"That means anybody that actually comes to us seeking our care should get the right kind of attention without compromising quality," Dr. Rao said.

Second, he said there must be major changes in residency and postgraduate education to improve overall education and remove short-term fellowship programs and cataract surgery and laser training programs.

"Whether we like it or not, the truth is the quality of our postgraduate education today is grossly suboptimal," Dr. Rao said. "If our residency training is up to quality, all these short-term training programs will not be necessary."

Lastly, he said members must work to strengthen the All India Ophthalmological Society.

"All of us as members of the All India Ophthalmological Society have a responsibility to make sure this society becomes stronger, that this society actually represents us well and that this society will provide us adequate educational experiences," Dr. Rao said.

He asked all the members attending the meeting to realize their own power to make a difference and to make a personal commitment to change.

"I hope that we choose the path of shifting the paradigm instead of shifting the responsibility to the next generation," Dr. Rao said. "I think that is in our hands."
 
India's Glittering Jewellery Market
By Commodity Online
04 Feb 2008 at 09:47 AM GMT-05:00

MUMBAI (CommodityOnline.com) -- With exports of $17.1 billion in 2006-07, India's gem and jewellery industry has been second only to textiles in earning foreign exchange for the country.

As per the Gem and Jewellery Export Promotion Council (GJEPC), the Mumbai-based apex body of the trade, exports of diamond merchandise alone touched $9.77 billion last year.

According to Tehmasp Printer, MD of the fast growing India branch of the Antwerp-based diamond certification authority of the International Gemological Institute, no country can match India in the cutting of gemstones and crafting of fine jewellery.

According to the World Gold Council (WGC), India’s gold consumption this year could in fact cross the 1,000-tonne mark for the first time.

The booming domestic market along with export advantage of the industry and the Government's decision to allow foreign direct investment of up to 51% in single brand retail stores has attracted a large number of players to the sector.

  • Swarovski, the global crystal goods manufacturer and marketer, is on an expansion spree in India and hopes to achieve 5% to 10% of its global turnover from the country in the next 10 years. The company plans to set up 30 stores by 2009, from the current 13.

  • Damas India, part of one of the largest jewellery retail outlets in the world, is adding 16 new stores to its present dozen stores in India.

  • Morgan Stanley, Citigroup, Goldman Sachs and BSMA Ltd. collectively purchased a 7% stake in Gitanjali Gems for around $27.8 million.

  • Goldman Sachs and UBS Securities have acquired 6.28% in Shrenuj & Co at around $2.07 million and $2 million, respectively.

  • Gemology Headquarters International (GHI), a U.S.-based gemological grading and research laboratory, has opened its first Indian branch at Opera House, Mumbai.

  • Reliance Retail is planning an aggressive entry into the jewellery retail market through its about 400 to 500 jewellery retail outlets across the country.

Government Initiatives

In the New Annual Supplement to Foreign Trade Policy (2004-2009) announced on April 19, 2007, the government has extended the following facilities to this sector:

  • Service Tax on services (related to exports), which are rendered abroad have been exempted.

  • Re-import of Diamonds & Jewellery (either in complete or partial lot) exported on consignment basis have been allowed.

  • In the light of increase in global prices of precious metal, duty free entitlement for consumables for export of rhodium plated silver jewellery has been increased to 3%.

  • To reduce the transaction cost for the diamond sector, testing facility at International Diamond Laboratory (IDL), Dubai, has been incorporated in the list of laboratory/certifying agencies.

  • Duty free import entitlement of tools, machinery & equipment has been allowed. For metals other than gold, platinum, it will be 2% and for gold and platinum, it will be 1% of FOB value of exports during the previous financial year.

  • Categorisation of exporters as One to Five Star Export Houses has been changed to Export Houses and Trading Houses with rationalisation and change in export performance parameters.

Hallmarking

In addition, the government has decided to make gold hallmarking mandatory from January 1, 2008.

Hallmarking of jewellery is yet to gather momentum in India as proper laws are yet to be implemented in right spirit. According to World Gold Council (India) Managing Director Ajay Mitra, the pace is slow as the amendment to the law is still pending in the Parliament.

The WGC is in talks with the Bureau of Indian Standards and jewellery associations to try and address concerns that they have put forward to the ministry of consumer affairs.

Mitra was speaking on the at a D’damas’ function in Mumbai. Across the country, there are over 70,000 gems and jewellery traders, who had threatened to shut shops if the government does not amend the BIS Hallmarking Act before it is made mandatory in the four metros from January 1.

The government’s move to introduce licensing of jewellery as part of the BIS Hallmarking Act has led traders to fear that the law could be similar to the Gold Control Act, which hampered gold trade for 20 years.

Jewellers’ organizations also asked the Central government to provide them with proper infrastructure before implementing the act across the nation.

There are only 25 hallmarking centres in the four metros against an estimated requirement of 500 centres.

Mining Policy

The Government is also set to unveil the new mining policy to make it easier for foreign and domestic firms to invest in the exploration and mining of diamonds, gold and other metals. Currently, India produces merely 0.4% of its gold consumption despite having 9% of global gold reserves.

It has also made the import of polished diamonds completely duty free. Also, special economic zones dedicated to gems and jewellery are to come up in Surat, Kolkata, Goregaon, Dhulia and Hyderabad.

Looking Ahead

The booming economy along with the rapid increase in income levels is estimated to further accelerate the growth of this industry.

According to a KPMG study, India’s growing importance in the global jewellery market is only expected to increase in the future with total estimated jewellery sales of $21 billion by 2010 and $37 billion by 2015. Diamond jewellery consumption in India is also estimated to jump by 78% in 2010.
 
A Tale of Two Economies
Rajan Chandras
Intelligent Enterprise, CA
Monday, February 4, 2008

The signs are familiar and worrying: a US economy that cannot seem to rebound, job losses on the rise, and consumers getting increasingly jittery. Will US companies, in a desperate bid to cut costs, intensify their push to send work offshore? Not so fast.

As I land in India's economic capital Mumbai (erstwhile Bombay) on a work and personal trip, headlines in The Economic Times — India's answer to The Wall Street Journal — present a contradictory picture about the opportunities for the Indian offshore industry. Here are some representative news items.

• US recession could be good news for Indian IT firms: Narayan Murthy, Infosys Founder and Chief Mentor says, "The fact that there may be a slowdown in the US means people will become much more concerned over better value for money... we could look at it as an opportunity."

• TCS cuts salaries: India's largest software exporter TCS plans a 1.5 percent cut in salaries of its over one lakh [100,000] employees in the fourth quarter, as it fell short of certain financial targets. Not coincidentally, the Indian Rupee has appreciated about 14 percent against the US Dollar in the last one year.

• Wipro to hire more freshers: Continuing with its focus on recruiting more new graduates, Wipro has given out job offer letters to 14,000 rookies from engineering colleges for FY09.

• IBM dismisses 700 freshers in India. 700 entry-level trainee programmers across major IBM offices in India were asked to go based on their performance in aptitude tests.

There is no doubt that US businesses will be under great pressure to cut cost and send more work offshore. Unfortunately, the weak US dollar is not cooperative;it is buying less services than ever and, in turn, the weak dollar and resulting strong local currencies are squeezing profit margins — and hence pricing flexibility — for offshore vendors.

US business and offshore vendors will both survive these rough times, but I think America's domestic outsourcers and IT workers stand to gain the most, with a real opportunity to narrow the gap with offshore competition. It's a little too early to celebrate, but perhaps there's a trend in the making.
 
A stake in India's new economy
Indo-Canadian business owners trickle back to India to serve a growing middle-class

Peter Diekmeyer
Financial Post, Canada
Published: Monday, February 04, 2008

NEW DELHI -Ravi Gupta studies a hunk of metal pulled from a rack adjoining a blast furnace at a supplier's aluminum-parts plant. "Quality is one of our major concerns," says Mr. Gupta, vice-president of Powercast Manufacturing, based in St-Eustache, Que.

"The equipment here is similar to what we have in Quebec, yet Indian labour costs are lower. That means we can save customers a lot of money if we do business here. But the payoff will only come if the quality measures up," he says.

Mr. Gupta's father, Chris, bought Powercast Manufacturing in 1994. The company produces custom-made parts for the electricity, construction and housing-fixtures industries. But in recent years, strong competition from China-based producers has forced Powercast to lower costs.

"These orders are just tests," says Mr. Gupta, regarding the work done at the plant located a short drive from India's capital.

"But, if we can do marketing, product design, storage and distribution in Canada, as well as manufacture selected products here, it would make our supply chain far more efficient."

Mr. Gupta, like many Indo-Canadians, closely follows his father's home country's staggering economic progress. Economic reforms are opening up India to increased trade and investment, making it possible for more foreigners like Mr. Gupta to do business here. His family maintains close ties with relatives back home and, three years ago, they bought a three-bedroom condominium in the burgeoning New Delhi suburb of Gurgaon, which they use as a base.

Mr. Gupta's case is not unique, says Kenny Zhang, a senior research analyst at the Asia Pacific Foundation of Canada. "Canada has a very strong and vibrant Indo-Canadian community. There is a very positive link between diaspora communities and increased business relationships between the countries involved."

Newly arrived Canadians and their families don't forget about their roots. Like many of the 900,000-or-so Indo-Canadians, Mr. Gupta returns to India every year. He closely follows differences in the two economies, and for an entrepreneur, differences often signal opportunities.

One key difference between Canada and India is their growth rates. India's GDP grew by 8.9% during the most recent quarter, more than three times as fast as Canada's. Furthermore, at the World Economic Forum's India summit, which was held in New Delhi in early December, Indian government officials expressed confidence the country can maintain that pace during the coming years.

If India continues to grow at its current pace, income levels there will almost triple and, by 2025, the country will become the world's fifth largest consumer market. The strong Indian growth has rubbed off on Canadian companies whose exports there have been rising in the double digits the past several years to $1.7-billion in 2007.

However, industry experts say the Indo-Canadian community has not yet been as active in strengthening business relationships with its mother country as the U.S.-Indian or the Chinese-Canadian communities. Part of the reason is due to a simple time lag. China began opening up its economy more than decade before India did, a period many economists use as a yardstick to measures the two countries' respective economic progress.

According to Maneesh Nanda, a consultant who specializes in India-Canada issues and whose work is increasingly bringing him back in touch with his motherland, things are starting to change. "The composition of Indian immigrants into the United States has been far more centred on their educational and business qualifications than in Canada. So naturally the American-Indian community has had a bit of a head start," Mr. Nanda said. "But India's economy is now becoming so strong that it is lifting all boats."

Ravi Singh, president of Apparel Sourcing, an Indian national who has lived in Canada for 20 years, agrees. Mr. Singh recently signed a contract to help a European retailer scout opportunities to set up shop in India and will be meeting with several Canadian firms in the coming months to share his experiences. "Many retailers think that India is too poor to support an expansion there, but they are underestimating the size and strength of the country's growing middle class," he said.

Demand for retail space in India is so strong, many companies simply cannot get space, despite that there are malls popping up everywhere. According to Mr. Singh, rents in many prime Indian malls are now $40 a square foot per month, which is what some Canadian malls are charging in a year.

Mr. Gupta is also dazzled by the opportunities. "You know it's funny. We are sitting here in what will probably be one day the world's largest economy and we are thinking of importing aluminum parts into Canada. But domestic demand here will make opportunities back home pale in comparison," he said.

Later in the day, from the balcony of his family's Gurgeon condominium, he surveys the highrises and malls rising as far as the eye can see. "I have a feeling that the really smart Indo-Canadian entrepreneurs are the ones who will come back from Canada to invest here."
 
India's Capital Inflows Complicating Monetary Policy, IMF Says
By Shamim Adam
Bloomberg

Feb. 4 (Bloomberg) -- India will attract "large capital inflows'' as the economy expands, complicating efforts by the central bank to curb the rupee's accelerated gains, the International Monetary Fund said.

The inflows are helping to boost investment in Asia's third- largest economy, which may expand 8.7 percent this fiscal year, the Washington-based lender said in a report released today. The growth may slow to 8.3 percent the next fiscal period, IMF said.

"Given India's vibrant growth outlook and sizeable capital demands, inflows will likely remain strong,'' the IMF said. "Large capital inflows are complicating the conduct of monetary policy, creating excess liquidity and pressuring the rupee.''

India expanded at more than 9 percent since April 2005 as Ford Motor Co., Tata Steel Ltd. and other companies increase output at the quickest pace in a decade to meet soaring demand from a growing middle class. Rising prices prompted the Reserve Bank of India to keep its benchmark interest rate unchanged near a six-year high last week.

Wholesale prices unexpectedly accelerated to a five-month high in the week ended Jan. 19 from a year earlier, vindicating the central bank's decision to refrain from cutting rates.

"Inflation risks are to the upside due to rising international food and fuel prices, ample domestic liquidity, tight capacity utilizations, and rising skill premia,'' the IMF said. Wholesale prices are projected to rise between 3.5 percent and 4 percent in the "near term,'' the report said.

Fuel Subsidy

India needs to prioritize spending, the IMF said, pointing to the government's fuel subsidy bill that is growing as oil prices rise.

There is a need "to adapt to higher international oil prices through a phased reduction in subsidies for most fuel products, while ensuring that adequate and well-targeted safety nets are in place to protect the poor,'' the report said. "A tighter fiscal stance could help offset the liquidity impact of buoyant capital flows and thus relieve appreciation pressures.''

The Indian rupee gained 12.3 percent against the U.S. dollar last year.

The "rupee appreciation reflected strong fundamentals and increasing productivity, and the policy of a managed float'' remains appropriate, the IMF said. Still, there is some concern "that rupee appreciation has adversely affected India's external competitiveness in certain labor-intensive sectors.''

Rising imports will probably lead to a widening of the country's trade deficit and boost the current account deficit to 1.5 percent of gross domestic product this fiscal year, the report said.

"Nevertheless, with low levels of external debt, ample reserves and limits on the amount and end-use of foreign debt financing, India's external position is sustainable and robust to significant shocks,'' the lender said.
 
Bollywood: The musical
Edward Tsumele
Sowetan, South Africa
04 February 2008

It was a couple of years ago and the venue for the party was a friend’s flat in suburban Killarney, in northern Johannesburg. The hostess was Indian. The food was delicious curry.

While some of us were waiting for late guests, we indulged in everything culturally Indian, first trying our luck at dancing.

Then, thank goodness, the clever hostess played a Bollywood movie.

This really saved the situation as it meant that some of us would not continue to embarrass ourselves trying out those tricky dance moves.

Indians have really made big strides when it comes to reviving their country in cultural terms – as well as their economy – and Bollywood, the high-flying Indian film industry, is a good example of this rebirth.

This week I was reminded of that Killarney party and how Bollywood has become a successful part of the world’s global film market with the news that a theatrical dance spectacular, The Merchants of Bollywood, direct from Mumbai, will hit South African stages in May.

Brought out by 94.7 Highveld Stereo and East Coast Radio, the all-singing, all-dancing Bollywood-type musical extravaganza has already been hailed as a success by audiences and critics in Australia, Germany, Switzerland and the UK.

The performances are scheduled for the Indoor Arena at the International Convention Centre in Durban on May 19 and 20 – and at Montecasino’s Teatro on May 24 and 25 – with matinee shows on both days in Johannesburg.

The Merchants of Bollywood, according to its advance publicity, is a dynamic, vibrant and energetic spectacle, based on the real life story of the show’s choreographer.

It is a potent mixture of dreams and sacrifices, family rebellion and romance, and is set to some of the most memorable songs and dance routines drawn from the Indian film industry.

Written and directed by Toby Gough, the show features music by Salim and Sulaiman Merchant and is choreographed by leading film choreographer, Vaibhavi Merchant.

With a cast of 40 dancers and singers from the film industy, the musical follows the story of Ayesha Merchant, her grandfather Shantilal, and dramatises the inevitable clash of values between generations representing the old and new India.

It sounds like a must see.
 
Facing skills shortage, Indian cos recruit Sri Lankans
Monday, 04 February , 2008, 11:49

Colombo: Faced with a labour and skills shortage in India, some Indian companies have started recruiting from Sri Lanka.

"I have recently received three enquiries from south India for engineers and unskilled workers," said Anwar Ulumudeen, proprietor of a leading Colombo-based recruiting agency, Hamad International Pvt Ltd.

"A construction company in Bangalore has asked for engineers, and a garment factory in Tirupur (Tamil Nadu) has asked for unskilled workers," Ulumudeen told IANS.

"They say they are not able to get workers locally, and are offering Dubai-type salaries to attract foreign workers!" said Ulumudeen, former president of the Association of Licensed Foreign Employment Agents.

Clearly, the domestic labour force is unable to meet the mounting demands of a booming Indian economy. The shortage exists despite the fact that Indians are finding it increasingly difficult to get jobs in the Middle East and Malaysia.

In the Middle East as well Malaysia, restrictions on the intake of Indians have been put in place because the governments want to restore the ethnic balance in the work force, the Sri Lankan recruiter said.

Currently, Indians are the predominant group among foreign workers in the Middle East. So much so that Hindi is the lingua franca of the expatriate workers from South Asia.

In place of Indians, Sri Lankans and Bangladeshis are getting jobs in Middle Eastern firms and openings for these nationalities had increased in Qatar, Saudi Arabia and the United Arab Emirates (UAE), Ulumudeen said.

The Sri Lankan government has itself reported an eight per cent increase in foreign employment over the past year. But the new vacancies in the Middle East have mostly been in the skilled sector, Ulumudeen pointed out.

This means that Sri Lankans will have to acquire the necessary skills if they are to exploit the new opportunities. "We are not able to cater to the demand because of a lack of skills among our workers," Ulumudeen said.

Sri Lankan recruiting agencies have been finding it difficult to get applications in the engineering, accountancy, hospitality and construction sectors, though the IT sector had had no problem, he pointed out.

According to the Sri Lankan ministry of skills development, about 40,000 workers are being trained in various skills. But Ulumudeen would like the training to suit the requirements of overseas employers also.
 
Korean students learn Hindi for jobs in India
February 04, 2008

New Delhi: Hindi is becoming more popular among foreign students who want to get huge employment opportunities at various professional sectors in India. The recent instance came from young Korean students who are opting for Hindi and other Indian regional languages during educational exchange programs with colleges in India.

Students from Pusan University foreign studies department have come to Delhi University last month to learn Hindi, English and cultural trends to explore opportunities in Indian markets in future.

The group of 14 Korean students including ten girls and four boys, completed their one month long course under the Memorandum of Understanding between Pusan University and Motilal Nehru College (MLNC) of Delhi University.

A senior professor at MLNC said, "The young Korean students were immensely impressed by the bright Indian pool of professionals and the growing Indian economy. They wanted to absorb the prevailing culture in the country."

The students also expressed their views about this exchange program. They said in order to work in Korean and Indian establishments it would be ideal to be well versed with the prevailing culture.

"The objective of the programme is to be aware about Indian system and people. It is great to be here and exchange ideas with each other, said a first year student," Seo In Suk.
 
Nano-manufacturing : The next big thing
4 Feb, 2008, 1011 hrs IST, TNN

Small is the new big. As is evident from reducing size of all the equipments and accessories that we are using. And helping produce smaller objects is the new technology called nanotechnology. It is the science of controlling matter on a scale smaller than one micrometer.

The fabrication of devices on this nano-scale has given rise to the birth of nano-manufacturing. It is a highly sophisticated field, as every modification to the atomic layer changes the properties of the material and the manufacturing process has to be highly precise in order to make controlled changes to the materials.

The prime impact of using such technology is in the reduced size of the appliances. For example, it is the reduction in the size of the various technology elements that has led to producing flat display panels that occupy very less space. This leads to many benefits, as the devices produced from such technology not only save space, but are also aesthetically appealing.

However, ironically, the machinery that supports nano-manufacturing is not small; they are much like the traditional manufacturing assembly parts. The demand for nanomanufacturing is the result of the drive towards miniaturization of the various consumer appliances.

In fact, one of the prime drivers is also the fact that the appliances are being used for multiple uses. For instance, earlier, when the cell phone was invented, it used to be a bulky device with only phone features. Now, it is also your camera, radio, and even miniature television and internet browsingdevice.

This means in the same limited space, all these devices have been integrated. This is possible only as a result of manufacturing miniature devices. Same can be seen in the case of data carrying devices as well. There used to be a time when the maximum data that could be carried on a computerhard disk was in Mega Bytes.

With new technologies coming in, now there are hard disks with a capacity that easily goes into Tera bytes! Not only that, this has led to the gradual decrease in the production costs as well. The cost of hi-tech consumer devices has steadily seen a downward trend thanks to innovation on the technology side.

The industry especially would have to take risks as the initial investment in the nano-manufacturing facilities might be very high. This industry is highly cost-intensive , but considering the current economic boom which is leading to high profits, the profit making companies can consider investing in these technologies. The government, on its part, needs to incentivise this industry as well, just as it has supported the IT and manufacturing industry with its industry friendly policies.

However, the key to fuel real growth in nano-manufacturing is creating and tapping the talent pool that is aware of nanotechnology and is excited to work in the field. People must be convinced of the enormous opportunities in the nano-technology area and they should look it as a rising industry. Also entrepreneurs must be encouraged to invest in this area. Once people know the potential of nanotechnology , they will come ahead to invest and venture in this sector.

The education pattern and curriculum must include the relevant subjects and skill sets that will make students equipped for a career in nano-technology. Nanotechnology applications in the medical, pharma, food, and electronics sectors hold a very promising potential. The hype of nano technology is essential to some extent but it should not be over-hyped.

Nano technology has wide applications in nano manufacturing and other sectors and being a high tech, high cost industry the payout period may differ depending on the application. Usually, pay-out periods in the nano manufacturing are longer than industries like software.

The Indian economy is witnessing a boom and the time is ripe to make big leaps ahead in the area of nano manufacturing. The growth will come fast and so will the revenue. Thus the core of nano technology is small, but it holds the key to big revolution.
 
Budget ’09: Rs31,000 cr mission to develop skills
Expected to be operational in the next fiscal year, the skill development plan is to extend training facilities to 10 mn people a month, up from 2.5 mn a year at present

Sangeeta Singh
New Delhi font size

To address India’s growing skills shortage, the Union government is setting up a Rs31,000 crore skill development mission, a measure that is likely to be announced in the Union Budget for 2008-09.

Expected to be operational in the next fiscal year, the programme is to extend training facilities to 10 million people a month, up from 2.5 million a year at present.

The mission, accorded top priority by Prime Minister Manmohan Singh, is expected to oversee and facilitate the entire process, which the government will run in collaboration with the private sector.

While the mission will be headed by the Prime Minister, Planning Commission deputy chairman Montek Singh Ahluwalia will be its vice-chairman. Heads of industry associations are expected be part of the mission’s general body.
“Planning Commission has been given directions by the Prime Minister to expedite implementation of the mission and seek immediate cabinet approval, so that the mission could be announced in Budget 2008-09,” said a senior government official who did not want to be identified.

The impetus for the initiative stems from the concern that the 9%-plus growth recorded in the past three years has not witnessed a commensurate jump in employment. At the same time, several sectors, especially in services such as information technology, growth is beginning to be curbed due to lack of skilled personnel.

The mission will be anchored in the Planning Commission, even as it could end up being set up as an autonomous body, a society or a special purpose vehicle.

Besides, 17 Union ministries, which are already associated with skill development projects of some sort, will help implement the programmes.
Mint had earlier reported that a cabinet note on giving concrete shape to the skills development mission was ready on 9 January.

The finance ministry has worked out a tentative allocation of Rs1,700 crore in the coming Budget, also the first year of the mission. The government has projected that 70 million jobs will be created during the 11th Plan (2007-12) and proposes to spend Rs31,000 crore during that period.

The mission will oversee short-term vocational courses ranging from six months to two years, which will be provided by both government and private sector institutions as also certification of such courses. More than 8,000 vocational training institutes run by the government together with those run by the private sector are expected to facilitate the mission and will play the role of sub-missions.

According to the latest National Sample Survey, which is conducted at a micro level through extensive field work, in 2004-05, only 2% of the population in the age group 15-29 was reported to have received formal vocational training. An additional 8% received non-formal vocational training, the report said.

The government has identified 20 growth areas for skill development in manufacturing and services. These include automobile and auto component, transportation, logistics, warehousing and packaging, travel and tourism, media and entertainment and health care services, all of which are perceived as high-growth sectors.

Amir Ullah Khan, economist with the India Development Foundation, a think tank that has done considerable work in this sector, said, “According to estimates made by the Confederation of Indian Industry and McKinsey and Co., currently the shortage in skilled labour is anywhere between five million and 10 million. With the economy growing at 9-10%, this may shoot up to 50 million in five years. And since growth is largely service-sector-driven, requirement of skilled labour is going to be a serious problem.”

He added that a skill development mission has to focus on employability, since in the past, several graduates from these vocational institutions did not have the desired skills to be employed.

To promote job-oriented education, he also suggests reforms in the All India Council for Technical Education, the body which plans and coordinates technical education.
 
Don't wallow in mayoral scandal
By TOM WALSH
Detroit Free Press, United States
February 3, 2008

When Gov. Jennifer Granholm spoke Thursday to a breakfast crowd of businesspeople at the MGM Grand hotel in Detroit, the room was abuzz with chatter about Mayor Kwame Kilpatrick's televised apology the night before.

But Dick Blouse couldn't stop talking about India.

"It's incredible," said Blouse, president and CEO of the Detroit Regional Chamber, who returned Wednesday from a five-city, 11-day trip to scout business opportunities for Michigan companies to profit from India's explosive growth.

"There are many, many companies there that are flush with cash," he told me, "and they want to do business here in the States. They speak English. They're from a democracy. They have similar ethical beliefs about the importance of intellectual property."

Blouse said plans are afoot to set up an incubator for Indian entrepreneurs to grow companies in Detroit's TechTown development near Wayne State University.

A couple of Indian companies have already staked out turf in Michigan via acquisition: Bharat Forge bought Lansing-based Federal Forge out of bankruptcy in 2005 and has been expanding output of auto parts. Wipro Technologies purchased mechanical engineering and design firm Quantech Global Services LLC of Okemos in mid-2006 and plans to boost employment.

India, of course, isn't the only growth hotbed abroad. China's economy has been surging at a 10% annual clip for 15 years. Russia is hot. Vietnam is on the rise.

Thankfully, Michigan business and political leaders -- after decades of whining and blaming the rest of the world for our problems -- are actively engaging with the dynamic growing regions of the world.

Automation Alley, the consortium to promote the region's high-technology prowess, leads missions to numerous spots around the globe.

Wayne County Executive Robert Ficano has led three visits to China and plans another in November. Blouse's just-completed trip was his third to India in three years; this time his group included Oakland County Executive L. Brooks Patterson.

Detroit City Council President Ken Cockrel Jr. and two council colleagues just visited Taiwan.

All this exploration makes it doubly sad to see Detroit wallowing in the text message scandal.

The rest of the world, folks, is moving at warp speed into a dynamic new high-tech era, while Detroiters are stuck in leadership limbo, not knowing whether Kilpatrick can survive the storm clouds he has brought upon himself.

So be it. Kilpatrick's problems will run their course, as the rest of us step up to deal with threats and opportunities of a new world order.

"India and China," Patterson told me Friday, "are going to be economic powerhouses. We clearly are going to have to do business with them." And that's not a bad thing. Oakland County currently has 700 foreign-owned companies that provide 125,000 jobs.

"We were fat, dumb and happy around here for so long," Patterson added. "Now we've got to focus and kick it in gear."

With eyes wide open around the world, I would add, and precious little time to wallow in the sordid swamp of the text message mess.
 
We'd buy it in a Nano second
By JULIAN BELTRAME
Toronto Sun, Canada
Sun, February 3, 2008

It may not be available in Canada for years, if ever, but Canadians have already fallen in love with Tata Nano, the world's cheapest car.

With 105 km/h top speed, a 33-horsepower engine and the looks of a snub-nosed beagle, the Tata Nano from India is hardly a "babe magnet."

But the expected $2,500 price tag and the Nano's fuel economy -- 20 km per litre -- is drawing plenty of attention, a poll of Canadians suggests.

The Canadian Press Harris/Decima survey suggests the Nano would be a hit in here.

The most likely to say they'd buy one were young Canadians in the 18-34 age group.

More than one in three (36%) said that someone in their household was either certain or likely to buy one if they could. It will be manufactured strictly for the Indian market for the next two years.
 
Program to bring students from India to PSU
By JILL WHALEN
Staff Writer
Sunday, 03 February 2008

As early as next year, Penn State Hazleton will begin welcoming students from India as part of a new exchange student program.

Through the India Initiative, up to 25 students annually will study Information and Sciences Technology at Penn State. They’ll attend college in their native India for their freshman and sophomore years, then finish their degrees at Penn State.

Gary Lawler, chancellor of the local campus, said York will be the first Penn State campus to welcome the students, but Hazleton is next. In time, eight campuses will host students through the program.

The India Initiative is the idea of Samir Shah, who instructs Information and Sciences Technology at the York campus.

“It’s similar to an articulation program,” said Lawler, who recently visited India with Shah to put the finishing touches on the program. “The idea is to help diversify the Penn State student body.”

It’s also hoped that through the program, students will be prepared to work in a global economy.

Shah, who is still in India, said the idea for the project came after he introduced a global software development project to his students in 2006.

“As part of this project, IST stidents from Penn State York and University of Baroda, India, successfully worked on designing and developing two software products for a multinational company,” he said. “After the project, I arranged an optional field trip to India for Penn State York students where they met their counterparts in India.”

The first students will be from the Vidyalankar School of Information Technology, Mumbai, India, which is affiliated with The University of Mumbai.

According to Lawler, the Indian students enroll in courses that parallel Penn State’s curriculum so that they’re working on the same levels as students here when they transfer. Upon completion of studies, a student will be awarded a bachelor’s degree.

While the Mumbai college will be the first to send students to the United States, other colleges are on the horizon.

“We met with officials from several colleges” during the January trip, Lawler said. Two additional colleges have expressed interest in the program.

Students from one of those colleges will likely begin studies at Penn State Hazleton in 2009.

Indian colleges are very different than colleges in the United States, Lawler discovered. It’s not uncommon for one to have to take off his shoes before entering a classroom building. Many buildings don’t have air conditioning despite the hot climate. Men and women don’t live in the same residence halls and dormitory rooms are “very spartan,” Lawler explained.

“It’s bed, desk, bed,” he said, illustrating the arrangment of rooms. Students do not have televisions or radios in their rooms because complete focus is on education, he said.

Lawler guessed that American students would not want to – or be able to – tolerate the differences.

It wasn’t just the education system that was different, Lawler said. The 9,000 miles he traveled really was half a world away.

“The whole lack of infrastructure is huge,” Lawler said. “You recognize the tremendous level of poverty, and the difference between those who are destitute and those who are successful is phenomenal.”

In his travels, Lawler saw people living in shacks. He saw beggars and young men carrying pick axes going to work to support their families.

“The sad part is that there is public education, but families can’t afford to send their children – they need them to go to work,” he noted, and explained that India has no welfare, public health system or anything similar to Social Security. “You either survive or you die.”

On the flip side, he said, cities like Delhi were modern yet still steeped in tradition. Residents place much emphasis on their religion and spend the greater part of their mornings practicing it.

“The country is very friendly toward Americans,” he said. “There were no negative concerns.”

Lawler said is hoping that the welcome reception continues so that the India Initiative will continue to grow.
 
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