Monday, September 29, 2008

Full marks for this Marxist

Under Sarkar's able chief ministership Tripura has seen its first dose of foreign funding

Communists have a way of working around their communism occasionally to get capitalist cash into their state: and when they succeed, they become chief ministers, and stay there. For Manik Sarkar, that has meant a third term in a far-flung state where even central funding was a problem; under Sarkar the state has now seen its first funding from abroad.

Just now, as the man gets comfortable in the chief minister’s chair, one that has been his for more than 10 years now, his list of achievements is something to write home about: a steady decline in insurgency, increase in private investment, remarkable improvement in the higher education sector, successful implementation of public-private partnership model... the list, as his supporters like to point out, is long. Given the politician’s prized cake of continuity, Sarkar’s government is viewing natural gas, bamboo and natural rubber as the three main opportunity sectors in the state. To Sarkar, though, it is his government’s success on the insurgency front that is the most important of all. "With the two-and-a-half-decade-old militancy showing signs of abating, countries such as China, Japan, Germany, Thailand & Bangladesh, not to mention Indian investors, have shown interest in Tripura," he told B&E. Sarkar has also been advocating the linking of the East-West corridor through Tripura. “Tripura has 44 km long border with Assam in the plains area, and a 865 km border with Bangladesh. The state can really become the gateway for the North-east to South- east Asia.” ...Continue

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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Monday, September 22, 2008

Thank God, I managed to pass!

Although the real impact of the US slowdown is yet to be felt, India Inc. is facing the brunt in advance
Perhaps ‘slowdown’ is the most talked about word since we entered the year 2008. Raison d’ĂȘtre, the present state of the US economy! While the world is going apprehensive over a probable recession in the US and its impact on the world economy, the word slowly and quietly seems to associate itself with India Inc. A closer look at its Q3 report card confirms the same.

After a superb show for quite sometime now, India Inc.’s profitability seems to be on a downward slope for the third quarter of the financial year 2007-08. As per the results announced so far (2,024 companies as on February 4, 2008) aggregate gross sales of India Inc. stand at Rs.5.49 trillion as compared to Rs.4.75 trillion for the same period in the previous fiscal, registering 15.5% growth. Indeed way below the 28% growth recorded during Q3 FY 2006-07. However, the worst is when you consider the reported profit after tax growth figures, which have come down to 27% to reach Rs.704 billion from a high of more than 50% in Q3, 2006-07. So who is to be blamed?

“Rising input prices are the culprit,” reasons R. K. Gupta, MD, Taurus Mutual Fund. According to him, “Prices of raw materials have gone up during last half year or so. But due to the market competition, companies are failing to pass it to consumers. As a result their bottom line is getting affected.” A further analysis of profitability reveals that the growth story dips further (to 24%) if one doesn’t considers India Inc.’s ‘other incomes’, which would perhaps be injustice as other incomes is one area that India Inc. would gloat over; after all it has gone up by a whopping 77.5%. But then, what about the volatility in the share market? Isn’t this decline in growth going to affect it further? “Markets will definitely react to Q3 earnings, but they will be more interested in the future earnings due to the fact that better earning prospects will continue to lure investors, despite a poor previous quarter earning acting as a caution,” says an optimistic K. K. Mittal, Fund Manager, Escorts Mutual Fund. However, one thing is for sure – the current Q3 results will not help much in eliminating the ongoing volatile phase in the market.
Though the sector-wise results – barring a few like banking and oil & gas – are not very encouraging, analysts are still upbeat on a few sectors like pharma and metals. Commenting on Q3 performance of pharma sector, Sarabjit Kour Nagra, VP Research, Angel Broking says, “Barring Dr Reddy’s (34% fall in gross sales), the numbers are in line with industry expectations.” During the quarter under consideration, pharma companies have managed a PAT growth of 22%; and as per many analysts, this is the end of the lean phase for the industry. Affirms Ramesh Adige, Executive Director, Global Corporate Affairs & Communications, Ranbaxy, “The next three years will see a strong global generics market opportunity unfold with an estimated $60-70 billion worth of branded products expected to go off patent. This will provide significant opportunities to global generics companies like Ranbaxy to offer word class generic drugs at comparatively lower price.”

vely lower price.” While the performance of almost all the sectors has come under scrutiny, banking is one, which has performed quite well. It had a good time during the last quarter with both credits and deposits growing steadily. Affirms Chanda Kochhar, Deputy MD, ICICI Bank, “The growth in profits has been robust on account of a rise in advances and improvement in margins.” Despite the fact that the pressure on net interest margin continued throughout the quarter, the sector emerged as the best in terms of net profit growth due to many reasons like strong treasury gains and reduced provisions. The sector’s outlook also remains positive for the coming quarter. “The trend that was observed during the quarter is expected to continue and the future outlook for the sector – especially for the banks in Tier I and Tier II cities – is very optimistic,” prophesies Manisha Porwal, Research Analyst, Arihant Capital.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Saturday, September 20, 2008

The moditva model

His development model was based on convincing the people about the benefits of his schemes. By priyanka rai
Narendra Modi looks beyond the immediate gratification for the purpose of getting votes. He aims at multi-dimensional development of Gujarat in the long-term. The vision, concept and implementation of such programmes make him a wily politician who thinks of the next generation in the backdrop of the next elections.

Everyone said that you may not win the elections. Everyone, including the RSS, VHP, some of your own party men, didn’t support you. But still, you won with a huge margin. What do you think helped you win again?

Not for a moment did I feel that I was losing. People did their analysis based on various factors, but they failed to check out the hearts of Gujarati people. Your analysis of any election will come true when you will give the maximum numbers to what the voters want, and not the other factors. I expected the Opposition to say that we were losing, but I did not expect such analysis from people who are supposed to stay neutral.

People say if you hadn’t blended development with Hindutva and a bit of communal flavour, you would have lost the elections?

The Election Commission has the CD of the speeches I delivered during the election campaign. And if my speeches were communal, I am ready to declare that I have lost the elections on moral grounds.

But you did use issues like Ram Setu, a two rupee coin with a sign similar to a cross, and the death of Sohrabuddin?

You call it communal? Communal means if I speak against a community or a religion. If I ask for a common civil court, how is it communal? If I talk about terrorism, how is it communal? This means people who call it communal are of a perverted mind.
What are the secrets behind you governance model?

Firstly, one must come up with a scheme that will benefit the masses. Secondly, we must see that there is a road map for the scheme, how one is going to implement it. Thirdly, one must have the resources like human resources, technology and finance. People must have faith in your project. For instance, when I introduced the Sujalam Suflam Project, I personally went to the villages, met farmers, gave them a presentation, and convinced them. Within seven days, the farmers gave us the land for the 400 km canal.

In the past, you had mentioned that any CM must get three chances, or 15 years to work properly in a state. This is your third term, so do we get to see a fully developed Gujarat after five years?

After five years, I will complete 12 years. So, I am still left with three more years (laughs). What I meant was that in the first five years, we should compare any government with the previous one. In the next five years, we should evaluate how much work has actually been done. In the last stage, we should see whether the government has managed to fulfil the expectations of the people.

So, will a lot of work get over in next five years in Gujarat?

See, for instance, we have the girl child education programme. But even after 60 years of independence, we have only 60% enrolment, out of which the drop out rate is 49%. What can be worse than a situation like this? Now, I have got enrolment up to 60% and brought the drop out to 3%. But if the previous governments would have taken care of this problem earlier, I would have had enough time to bring qualitative changes required in primary education. So, there is so much of pending work that I have to do.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
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The Indian Institute of Planning and Management (IIPM)
IIPM Campus

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Tuesday, September 02, 2008

Unauthorised construction inside the fort

Rama blamed the authorities of negligence which allowed unauthorised construction inside the fort. And she insisted that a recent remark by Lonely Planet (travel guidebook), as a prime factor that led to reduction in tourism in 2007. Overhearing our conversation, Samantha, a British tourist sitting on the table next to us explained, “Lonely Planet only says not to stay inside the fort for it may contribute to the destruction of the fort which must necessarily be preserved.”

While to some, the fort is a source of livelihood, to many it is their home. Low, wooden roofs to keep cool in summers and warm in winters are a part of an ancient architectural design that has largely remained unchanged over generations. However, amenities have been added to make living easier. The Jain residences is perhaps the most beautiful and well-preserved houses in the fort and therefore the most popular.

What is truly wondrous isn’t inside the houses though but the masterpieces on the exteriors of the houses – beautifully preserved animated wood carvings. Santosh Purohit, actively involved with NGOs working for the cause of preservation and restoration of the fort, strongly puts forth her opinions and perspective, “Most of the forts in our country are like khandars (ruins) and this one stands apart because it is home to a lot of people and its denizens can take good care of it.” Acknowledging the trouble that the residents cause by violating rules, she pushes for a “mutual solution rather than closure.”

As I wind my way through the streets of Jaisalmer, the setting sun lights up the old lanes inside the fort, the pale orange evening sky looking on admiringly at the ‘golden fort’, its beauty mesmerises... Like me, even the sky and the gravelly desert around seemed captivated with the view and perhaps hopeful too, of the preservation of both the shelter and the sheltered.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Top Articles on IIPM:-
IIPM to come up at Rajarhat
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IIPM Ranked No1 B-School in India
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IIPM Delhi - Indian Institute of Planning and Management New Delhi ...domain-b.com : IIPM ranked ahead of IIMs