Tagged: Inflation

Has the country’s central bank ( Reserve Bank of India – RBI ) collapsed ?


On 22nd March 2012, i had written that we have ‘Oversold the India story’ http://commonmansblog.com/2012/03/ ) , and what i had predicted for the economy in the April , May and June quarter,  happened ! 

Again , on 11th October 2012, i wrote on my blog ‘How India was fast turning from a ‘Emerging economy’ to a ‘Submerging Economy’ ( web link  :  http://commonmansblog.com/2012/10/11/india-from-emerging-to-a-submerging-economy/ . Now , read the fact about our Central Bank . As i said earlier , i am not worried on the 2014 for elections , but for the economic scene that will unfold in 2013 for the average Indian middle class , we are building a disaster  & fooling ourselves ! It is a call to action !

On November 5th ,2012 ,  The Economic Times carried the report that , the country’s central bank , Reserve Bank of India ( RBI ) would run into losses if asked to pay interest on mandatory percentage of deposits banks have to park with the centre bank , called the Cash Reserve Ratio ( CRR).  The RBI has stopped paying interest on such mandatory reserves since 2007.  Finance ministry had suggested the bank to pay 7 % interest on these deposits . 

 Does it mean that the country’s central bank has collapsed ?  If yes , why have we not discussed this in parliament, and are looking at FDI and other ways like stake sales in PSU’s and auctions of the sovereign assets to hide this news and infuse money in the system . 

 
Prime Minister and Finance Minister owe and explanation to this nation on this issue .
 
 

NEW DELHI: The finance ministry has decided to review the expenditure and reserves position of the Reserve Bank of India (RBI) after the central bank indicated that it is not in position to pay interest on the reserves banks maintain with it.

A government official downplayed it as a routine review of the reporting structure and disclosure requirements of the RBI, but it comes at a time when there is already obvious tension between the finance ministry and the central bank over the conduct of monetary policy.

“It is the government which tables the annual report of RBI in Parliament, so there is nothing wrong if it (government) wants to know how RBI prepares its balance sheet. We are not questioning them or raising objections,” a ministry official said.

However, another finance ministry official admitted that the review started after the RBI had indicated that it would run into losses if asked to pay interest on mandatory percentage of deposits banks have to park with the central bank, called the cash reserve ratio (CRR). The RBI had stopped paying interest on such mandatory reserves since 2007.

The finance ministry had suggested that the RBI should pay 7% interest on these deposits, pitching it as a measure that will help lower rates even if the central bank does not ease monetary policy. It had argued that all major central banks either do not mandate a reserve ratio or pay an interest on the mandatory reserves they ask banks to set aside.

“RBI had made certain arguments. Now, we want to understand their expenditure sub heads, format of disclosures so that we both are on the same page,” the official said.

The government is studying RBI’s expenditure, revenue, contingency reserves and investments, he added. On Tuesday, the RBI dashed hopes of a rate cut, but lowered the cash reserve ratio (CRR) by 25 basis points to 4.25%.

Please check more eye-opening statistics on Indian Economy on my blog .

From January , 2013, i will be working full-time to figure out the economic model for India , that will take the country out of the current crisis

Rajendra Pratap Gupta 
Healthcare I Retail I Rural Economy I Public Policy

Give us a Prime Minister – Manmohan Singh is a good professor but certainly not a PM material


Dear Mrs.Sonia Gandhi,

Since you are the President of Congress party , please look into this email

Over the last few years , we have tried to accept Dr.Manmohan Singh as our Prime Minister , but his performance as a congressman might be good , but he has failed completely as a Prime Minister . Congress has been blinded by Gandhi dynasty to such an extent that it has become poor in chosing the right people for the right job. May be that your and Rahul’s intellect is not upto the mark where you can choose competent people .

Over the years , congress government under your Presidency has become a government of faulty planning , false promises , blaming coalition for your failures and blame free investigations in most of the scams 

  •  This government has too many highly educated people, economists & NRI experts & advisors , but still the wisdom to understand the problems and give exact solutions is missing .
  •  Every time your Congressmen give a new date about controlling inflation , and every time they miss it . When the inflation is perpetually high , you blame coalition politics for it. So why do Indian’s pay a price for your forming the government ?Dissolve the government and go for fresh elections .
  • You are not able to judge the talent and most of your ministers are highly inefficient and corrupt , and we were hoping that Sharad Pawar would be removed so that he could focus on the ICC world cup in 2011( Which he will do anyways !!), but he seems to have hypnotized you !! He is still around !
  • Your party believes that , by revealing the names of those who stole the government money and deposited them in Swiss Banks , would pose a security risk ! So you are trying to tell India that, majority of your office bearers are Swiss account holders !! And that their getting caught would mean that the government would collapse !! Anyways , Julian Assange is on the way for dropping a few names , and I do hope that they are not from India & Congress !!
  • Industrial growth has been reduced to 2.7 % , lowest in the past 18 months . Would like to answer it why ? Rather , I must ask you if your people know at all why it happened ? 
  • People are very bullish about rural India, and every major FMCG , White good & vehicle manufacturing company is over- joyed with the growth coming from rural India in terms of the purchases being made . Let me take you through a very dangerous & disturbing development in rural India – I call it Rubble ( rural bubble ). I have been visiting rural India and talking with villagers . Here is what I want to tell you. Let’s take the example of Chavane village in Raigad. The village has changed dramatically in the past 3 years. It is great to see concrete (Pucca )houses with two wheelers parked in front of the houses. As you dig deeper , the facts reveal that people sold their land to MHADA for Rs.30,000.00 per acre for SEZ, and with sudden flow of funds, the thatched roof houses got converted into Concrete (Pucca ) houses, and two wheelers were also purchased along with some jewellery . Villagers had for the first time seen so much money, so instant money that came by selling land was used to make aspirational purchases , and it is over now , lands are gone as well !! What will the farmer do ? What will the farm labourers do ? How will they earn their living ? Let’s take another village 80 Kms from Nagpur , where Lanco plant is being built . Villagers have sold land for the rates as high as Rs. 25 lac per hectare . In India , average size of the land holding would be around 5-7 acres. Selling the entire land would fetch Indian farmers between Rs. 1.25 lac to 1.75 crore depending upon the size of the holding and the rate paid by the acquirer. On these lands , manufacturing plants would come up. We would never see greenery again. And farmers and their children who do not have jobs and land to do farming will be the next anti social elements or naxalites !! With land not available for agriculture , inflation would be higher than what it is today . Today farming is seen as a disdainful activity , and people want to do a job of Rs. 4000 but do not want to work in farming . Your congress government has kicked the ass of 100’s of millions of farmers over the past 60 years , and we are on a temporaray rural growth that I call as a rural bubble – Rubble !! India is headed for a major crises , & all because of the faulty policies of successive congress governments focused just on building billionaires , industries and encouraging FDI !! Get retail FDI in India , and see how the 12 million kirana stores and their families will starve to death . I have had discussions with the Parliamentary Committee of Commerce , Chairman in 2009 , Dr.Murli Manohar Joshi , and have given him in detail the reasons why we need to avoid FDI for the next 5 years at least !!
  • For price rise , last year ,Manmohan ji said that it was due to poor rains , in 2010 we had good rains and good crop , so why the price rise ? Kindly explain 
  • I was in Nagpur on 17th / 18th , and I read in one of the news papers about the fact stated by none other than Mr.Subramanian Swamy that, your bank balance was about Rs.10 crore some twenty years back , and now it is Rs.80,000.00 crore !! I think that this shows that inflation is very high at 10, Janpath . Please clarify if you actually made 60 % money in the 2G scam or this money came from abroad ? You are answerable 
  • Ironically , in the current times , we have a strong opposition but a weak ruling party . How can this government run ? If BJP comes down on its demand for JPC in budget session, Indian public will assume that it ‘settled’ the matter with congress and will never let them win again the seats that they are looking for, and if they keep their agitation on like the winter session , your government will have to go , and India will see a sign of relief !! 
  • Madam, congress might be your personal fiefdom , but not this country . You have created multiple power centers more powerful than the PM , like Rahul , NAC etc….You are the worst Congress President in the history of this country . But usual , we have a saying ‘Andhon main Kane Raja’ So you are the right person for the congress, which does not have any talent left !!
  • We have an outdated finance minister , unfit Agriculture minister , Hyper environment minister and an ineffective Person on the seat of the PM. All along, I have heard that we need 100 good people or 1000 good bureaucrats etc. But the fact is that , we just need one right person : at the seat of Prime Minister . One right person will change the future of this nation , and Manmohan certainly is a disaster at the cost of people . At this time , we cannot afford to have a lame duck as a Prime Minister of this youthful nation . Please give us a Prime Minister , we do not need a professor !! 
  • A suggestion for controlling food inflation : Please ask the government to start a daily free ( even if you charge the farmers for this service,  it is fine ) truck service from the remote villages to cities , where only farmers can come directly to the market and sell their products, rather than selling through agents , mandis or APMC . This will ensure that the person who adds maximum value and takes maximum risk for growing the produce ( farmer ) should also get the maximum profit . The profit at every point of sale post the harvestor ( farmer) should not cross 15 % , and this will bring down the prices to reasonable levels permanently . I read Subbarao stating that the government is desperate to control inflation and will raise the base rate , I heard Chidambram that government is clueless about the tools to control inflation , Sharad said that he cannot control what the farmers want to grow and so he cannot control food inflation . All these stupid statements come because you have bookish professors and so-called highly placed intellectuals and NRI & outdated advisors , who have no connection to ground reality . I do not understand how will raising the rates decrease inflation ? You have been doing this for the last two years and the result has been same – inflation has only increased . Do we need such economists who do not have answers to the common man’s problem ?
  • Do you never apply your brains about this fact that, the prices of the grains and vegetables are sky-high , still the farmers are committing suicides ? Does this not help you understand the problem and get an answer ? You all must be high level fools then !! 
  • In addition to high prices of food stuffs, by increasing the price of petrol again you have signaled the common man that ‘do not eat , do not go to work’

 Nitin Gadkari ji , please take up these matters with utmost seriousness , as congress is forcing the poor people to take to suicides by failing to control prices . If BJP does not take the matter seriously , the people of India will feel betrayed. Congress is fast becoming a failed party under you Sonia Gandhi ! Please either give us a PM or you and PM can go now ….. do not let this great country go to dogs !! This email is marked to Sharad, your dear son , FM , HM etc. to do some soul-searching and step down

Rajendra Pratap Gupta

www.rajendragupta.wordpress.com

Let not inefficiency , inflation and corruption get into 2011


Dear Mr. Singh ,

Last year was the worst year of the decade, and perhaps after independence due to your weak leadership as Prime Minister.

I read today in the newspapers that, the food inflation is in double digits , i feel it is not just double digits , but a double blow for the poor or medium class fixed earners, whose salary does not increase with inflation . Think about daily wage earners that earn 40-60 Rs a day and manage their family of four ( two children and parents , though we know that poor people have more than  two children !!) ? Do you not feel the guilt , that you have caused irreparable damage to the nation, and its people both economically , and its image in the eyes of the world ? Today we are called a scam friendly corrupt nation – a nation of scamsters!!

People have got carried away with your degrees, but seeing your miserable performance , i have realised the difference between being educated , being knowledgeable and being wise . You might be educated , but you are definitely not knowledgeable and not at all wise ! A Prime Minister is expected to be Wise and pro-active on important issues . You have built your good image , but ruined the nation’s image !

You and Pranab are fooling the people of this nation by showing 8-9 % GDP growth and a higher forecast . Reality is before us, it is difficult to survive for a common man in today’s time when one cannot get anything done without paying money , when one cannot live within his salary seeing the high price of daily food intake . A big Shame on you both and Sonia !!  With such revolting conditions , i am sure you are working for pushing people to take to Naxalism and crime !!

Two days back i was talking to Dr.Murli Manohar Joshi  and discussing the current developments , and i told him that, Dr.Joshi you could have proved to be a better PM ! Incidentally , there is only one Dr. in Congress and in BJP. In Congress ,It is yourself ,  and Dr.Joshi is the Dr. of BJP. I have had a chance to work with him on several issues , and have seen his grasp of real issues facing the nation,  and no wonder , even you have been high in praise for his abilities as PAC , Chairman, besides, other colleagues in congress . I am sure that he would have proved to be a much better Prime Minister . I cannot comment on others , as i do not know other leaders much .

My humble request Manmohan ji, give Indians a chance to celebrate the new year , Please resign and go ……………we do not want more corruption , more inflation and more GDP !!

We would happily settle for no corruption , low inflation or no inflation and a moderate GDP .

Go now Sir , take rest .Let’s celebrate New Year with a new Hope

Hope this does not fall on deaf ears

Wish you a great year ahead

Rajendra Pratap Gupta

Email : Office@rajendragupta.in

www.rajendragupta.wordpress.com

3 G & BWA Auctions – Things could have been done in a better way


Dr.Murli Manohar Joshi

Chairman

Public Accounts Committee

Government of India

6 , Raisena road , New Delhi 110001

Dear Dr.Joshi,

I am sure this finds you fine .It was really nice talking to you yesterday. I wish to submit the following for your kind consideration

Recently , the government has raised Rs. 1.06 Lac Crore from the 3 G & BWA auctions. Though it is a different issue that the government was expecting a modest Rs. 32000.00 Crore from the auction ! The following should be considered

  1. What was the basis of the government’s projections ? Was it a failure on the part of the government that the proceeds of the auctions exceeded by 3 times of the projections from the government ?  This clearly gives a reason to believe that there was a systemic failure on the part of the government and it shows up in government’s failure to arrest price rise ( inflation )
  2. Was the spectrum auction and sale the best option ?
  3. If the government went for a zero price or nominal booking price,  and allotted spectrum for the entire India as one circle with say a 25 % – 30 % of the recurring revenue share from the telecom providers, would it not be better in serving the interest of the government in the long term ? It would have eventually generated much higher return per year and every year rather than one a time high auction fee ! What was the basis of deciding one time auction fee with an expected collection of Rs.32000 crore ?  This money ( Rs.1.06 lac crore ) might give temporary sound bites to Pranab Da ( and the PM ) for no efforts of his or Mr. Raja . But the fact is that , it will put a strain on the telecom companies and will also suck the liquidity from the markets . This will also cause a long term loss to the government as it could have gained immensely , had it gone for a lower or zero initial fee and a larger share in the recurrent revenue from the telecom providers. This is a myopic policy of this government and a big loss to the exchequer
  4. What was the total loss in previous auctions done in arbitrary allocation of telecom spectrum, and what is the progress in the CBI investigation ? Why has the FIR lodged by the CBI not named anyone ? When the senior most minister or the bureaucrat should be named in the FIR , what has prompted the CBI to lodge the FIR against unnamed persons ?
  5. Since Rs.10.6 Lac Crore is already raised through the auctions, i suggest that the government allocates the 10 % the money raised in India Innovation and Entrepreneurship fund to promote innovation and entrepreneurship amongst youth of the nation

I am sure you will take up these matters in appropriate forums . We look at your leadership in addressing some important issues concerning the nation .

With best regards

Rajendra

Rajendra Pratap Gupta

Email: office@rajendragupta.in

Office.rajendra@gmail.com

High GDP but low GDP per capita – Time to give a public explanation – the Congress and the Opposition


If we see , India’s GDP is growing but the majority of the population is not prospering . Why ??

Let us consider this

The quarterly growth report card shows that Mining and Manufacturing contributed between 18-22 % of the GDP  in the Q 1 , 2010 numbers released last week.( Remember mining is concentrated in a few government PSU’s or some mining barons like Reddy’s of Karnataka etc )

Exports are roughly 13  % of the GDP

Agriculture contributes 20 % of the GDP  ( Supporting 60 + % of the population )

My view is that,  the decline in agriculture & growth in mining can be related directly to the growth of Naxalism , as one creates a naxalites and the other nurtures it !!

Rate of growth of yields per unit area in Agriculture  has fallen in:

Food grains from 3.39 % in 1992-93 to 1.39 % in 2001-02

Non-Food grains from 3.19 % to -0.57 %

According to the Economic survey between 1980-81- 2001-02 the capital formation in agriculture has fallen from 3.4 % to 1.3 %

FDI in Agriculture was never encouraged or focussed – Announcements does not matter Dr. Manmohan Singh ji ?

Between 2002-08, population growth has been 1.4 %  and the labour force has been growing at 1.9 %

According to the World Bank Development report

Between 1988 to 2008( 20 years ) as a percentage of GDP the :

Agriculture sector decreased from 30.5 % to 17.3 , whereas 65 % of the population depends on agriculture

Industry grew from 26.2 % to 28.8 % ( Population & people employable has been growing faster )

Manufacturing decreased from 16.2 % to 15.1 %

Services increased from 43.4 % to 54.6 % ( Private sector contributed to this )

Household final consumption expenditure decreased from 65.8 % to 54.1 %

Imports of goods and services increased  from 7.5 % to 28 %

Yesterday , in the Times of India , the Finance Ministry’s chief Economic Advisor said that GDP growth of 8.9 % in the Q 1 of 2010-11 was due to robust growth in capital goods and consumer good production

Does it not look like some Middle eastern countries , where the GDP is very high but GDP per capita is less,  as the high GDP is due to mineral oil wealth , and low GDP per capita is due to the fact that the oil wells are in the hands of a few royal families !! In India , Mining , Exports and trade is in a few hands and the focus , incentive and investment is maximum from the government !! For Agriculture , we all do not depend on the government but on the Rain Gods !!

BJP must act as a responsible opposition . The current state of affairs is not just a failure of the ruling front,  but of the entire opposition . Public demands an explanation from both !

What is government doing ? Bhopal Gas tragedy GOM’s is just an issue to divert the attention from real burning concerns of the public

Politicians are addressing 90 % urgent matters and 10 % important matters.

Time to act responsibly and explain or else both Congress and the opposition would be damned in the next election

Rajendra Pratap Gupta

Email: office@rajendragupta.in

Judiciary, Diplomacy and political leadership of the nation will be tested soon


The recent confessions of David Coleman Headley about his involvement in 26/11 proves his guilt . With this ,  India must seek David Coleman Headley and Tahawuur Rana’s extradition for trail in India . Both David & Tahawuur have committed an offence on Indian soil and there is no reason for India to give up the demand . If America does not extradite David Coleman Headley and Tahawuur Rana to India , it would mean the failure of Judiciary, Diplomacy and political leadership in India

India created NIA after 26/11 along with a lot of show biz and media hype to show that India is committed to fight terror. India needs David and Tahawuur more than the nuclear deal from America

I am sure that India will get to try and execute these gruesome offenders soon on Indian soil as per the law of the land .

Rajendra Pratap Gupta

Email : office@rajendragupta.org

Budget or Fudget ?


Thanks Paridhi for regularly reading my blogs and your comments . Regarding your observation on the price rise . Why i am not convinced that this was the best step is because  :

People like you and me do not make 1.2 Billion people . We are amongst the 5 % of the population who can afford a Rs.2 increase in the price or may be even more

  1. For farmers in India , the input cost has gone up for their daily livelihood with subsidies going down . Their cost of living is going up due to inflation, that is going up. Recently , due to hike in fuel prices , the transporters have increased their rates by 15 %. This will be passed on to the consumers . I always hear a famous line from C.K.Prahalad – ‘fortune at the bottom of the pyramid ‘. I must say after this budget , i would call it ‘Unfortunate at the bottom of the pyramid’ . Imagine the lives of such people who would hot have even seen a Rs.500 note ? Who do not know if they will have a meal tonight ? Who are shivering in cold but know that no one will help them with a blanket ? Life is not as easy as you read in the Economic Times of the Times of India ? It is a ‘hell across the bottom of the pyramid’
  2. NAREGA has worked well for congress  and helped it come back to power. As NAREGA was used to legally pay for who vote for congress . People should know the real intent of this scheme . Congress found a clever way to buy voters- No wonder the allocation has been increased for such so called ‘Social schemes’. I am not against congress or its leadership. I am just putting my point across for them to stop saying that out of Rs.100 meant for the poor only Rs. 10 reaches them ? Why ? This statement was made by Rajive Gandhi in 1980’s . So after being in power for 25 years , Congress has not addressed this question !
  3. Pranab Da is the  finance minister is for the urban areas , for rural India , he can be rightly called the ‘Famine Minister’. Due to his policies , the so called BPL families are living in the same condition that prevail during the famines .  Showing increase in taxes does not pave the way for a prosperous nation . I have seen on 27th Feb at Delhi how industrialists behave like Sycophants, and shower heaps of praises on the Finance Minister seeking favours for the industry, and they are not even a bit concerned about the nation
  4. Instead of addressing the needs of the ‘Common Man’ . The definition of the common man has been redefined . Anyone earning above Rs.3 Lac / year is a common man as the budget has gone all out to appease him with the best possible

Instead of budget , it will call it ‘Fudget’ – a fudging of figures in the name of budget.

Please feel free to share your views, and i shall attempt to answer them with my little  knowledge & understanding .

Best regards

Rajendra

Rajendra Pratap Gupta

Mobile:
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Create wealth , increase employment – Shape up Dr.Manmohan Singh


14th February 2010

Dr. Manmohan Singh

Prime Minister of India

7, Race Course road,

New Delhi.110011

 

Sub : Some important issues that needs to be attended on priority

Dear Dr.Singh,

This note needs your esteem , kind and personal attention

I have written to you in the past on healthcare reforms agenda with a detailed note on what needs to be done. Through this note, I wish to draw your attention to broader topics that have a deeper impact on our all inclusive growth agenda and if attended properly, can result in more than 10 % GDP growth.

I have been watching the economy across sectors, government initiatives and speaking to people from all walks of life. I feel that it is the time to do an introspection , look carefully at the realities and take immediate corrective action. This letter might be a bit long for you to read, but it might be worth spending a few minutes .

We all know that India has been passing through a trying time . Last two years, we had a recession and it played havoc on our growth and also rural India. This year we are passing through one of the worst inflation & in not the very best of times. We had not fully recovered from recession when inflation hit us. Today, because of inflation, where the prices of essential food items is beyond the reach of 2/3rd of India’s population for its recommended daily calorific  intake , we are slowly pushing people towards ‘Partial Starvation’.  Exceptional circumstances require exceptional decisions .We need immediate intervention. I recently read that you formed a committee for price control. I had presumed that we must be already having a department for price monitoring & regulating supplies in the ministry of agriculture .  It is high time that the current Minister for Agriculture is replaced and the right person is chosen for a very important job. A job that determines the lives of farmers (2/3rd of the population ) cannot be handling cricket and agriculture and also a political party (NCP is headed by Sharad ). He is dedicating just 1/3rd of his time to his ministry. Also, I see that firstly a wrong person was appointed and now he is wrongly blamed for food price hike ! It is an irony that as a Prime Minister , you are equally responsible for the situation that is created and the congress is just playing a blame game when millions of people are being pushed below the poverty line and death. If you see,  Agriculture , forestry and fishing recorded negative growth in 2009 but I still don’t see proactive approach of the government . I know price rise is an urgent issue , but there is a more important issue ; Supply versus demand of agricultural products. You must take note of the statement issued by Dr.Murli Manohar Joshi , M.P. on 17th January about the sugar prices going up due to bulk allocation of the sugar produce to soft drink companies and chocolate manufacturers. I must state that these MNC’s take cheap raw material from Indian system and sell expensive drinks & chocolates to our people !! High time that they import their raw materials or produce them . Government must not let the common man pay a price for their products in such a manner . Also, let each state have a state farmers pricing authority that fixes the prices of common products till the next season based on regional produce , buffer stock and demand . No one should be allowed to trade in agricultural commodities , hoarding and speculative pricing

Fund utilization : I understand that CAG has stated in his latest report that most of the programs that were announced have not used the funds allocated to them . So, in all, the government’s commitment and efficiency is put to a serious question.

Recently , i also learned that the plan is to discontinue the NUHM ( National Urban Health Mission ). This shows clearly that either the projects are not thoroughly planned or not properly executed. Infact, it is a truth that major projects do not cross the announcements stage and do not go beyond the paper work

Some of the action points I feel are important are mentioned herewith & I would like you to act on them or let me know your views :

Employment generation : It is high time that the government thinks about increasing employment and earnings to raise the GDP numbers of the nation. All I see from the statements of  your finance minister is that the tax collections have gone up or missed their targets .  So , are we confusing the portfolio of finance minister with Union Minister for tax collections ? There is no wealth generation happening in the country . Whatever we have we are depleting our resources . You can privatise our PSU’s , Banks etc and reduce our deficit for the next 2-3 years . What will you sell after that ? We will go back to the World Bank & IMF for loans ? We need to create wealth for rural masses and for India . This is the precursor for an All inclusive growth. NAREGA is a bottomless pit and there are suspicions that this scheme is used to rehabilitate political workers for the ruling party. Please understand the seriousness of the situation and act . We need wealth creation strategies .

Here are suggestions of some of the means to create employment opportunities in India in the existing government set up.

Post offices : India has 155,000 post offices( Check http://www.indiapost.gov.in/New_Code.pdf ) . Whereas , it might be worthwhile to implement PAL code instead of PIN code but it more important to create 1 million employment opportunities out of this network. Just think, Post offices remain open from morning to evening on weekdays, they are closed after 5 PM ( Except the 24 hour post offices ), and on weekends and holidays . If we gave an opportunity to college going students and unemployed youth to provide some basic services of post offices which do not have a time bound delivery like selling stamps etc  from their residence, and they can work on some commission or may be , take a surcharge for the convenience offered say @ 10 %. We can create a minimum of one million jobs  @ home

Passport : Let us look at appointing government authorised agents for each pin code at least in urban and semi urban India , and let people use their services . This gives the citizens the convenience to get things done locally and they will be willing to pay a little more for their comfort , and this will also create additional jobs . People can work from their home .

Bill payment : Bill payment agents can be appointed by the government and these can be the people who can operate from their residence and get a commission on bill payments

RTO : Learning license should not be issued by RTO because people actually don’t know driving when they apply for the new  or driving license . Like I mentioned in the above 3 options , people can get their temporary driving license or their learners license from these approved agents and then go to the nearest RTO  and give a test to get the permanent license . This will free up a lot of people at RTO from the job of learners license and the proceed of issuing the permanent driving license can be speeded up as well.

Train tickets : Why should only railway stations issue tickets ( Only reservation is available online , normal tickets are still procured from the local station booking counter ). Say even for local trains in Mumbai. There are around 79 sub-urban stations and people should have the comfort to buy a local train ticket at their comfort in their locality , and step in to board the train at the station . This will ease the queue at the stations and people will not hurry up and get tense reaching the station and buying the tickets and then boarding the train

Forms for different office work should be sold by such agents @home .

India is the global capital in Information Technology. We can have MPRSO’s ( Multi-Purpose Resident Service Officers ), who operate from their homes and provide services 24 X 7. It is do-able . We need political will , rest is possible

Indian Restaurants abroad : The world is turning towards vegetarian food and we have an opportunity to open restaurants abroad , create the India brand abroad and win the hearts of people and feed them healthy Indian food. Indian dishes are relished in U.K. / U.S etc . Same is possible for Indian herbs & Ayurveda , Yoga schools , mediation etc . These opportunities create employment , wealth , and do brand building for India

Tourism : India has tremendous potential and the irony is that , it remains to be ‘Potential’.  Giving advertisements in newspapers does not help. Major tourism destinations have terrible infrastructure and poor connectivity

Organic food presents a great opportunity for farmers , industry and India . We are missing a multi –billion dollar opportunity . If we work on this , I see that some farmers in every state can earn enough to have their own helicopters to spray insecticides etc and drive BMW’s .  Today , even after 62 years of Independence , when we think of farmers , the image that we get is that of an ill clad , dark skinned , white bearded old age person looking at the sky . We must live up to the fact that ‘ Farmers of the nation are the fathers of the nation’ and give top most priority to the sector. Government must allot land to the tillers. When government can acquire land for SEZ for big business houses why not for landless farmers !!

SEZ should not be allowed. No more development should be allowed in already crowded towns . New towns should be built in remotest part of the country .

Courier Service : Government must start courier service as a PPP with existing players or with unemployed youth . This can create lacs of jobs across India .

There is a lesson to learn from Dubai. The vision of one man could convert a desert into  a business and tourism hub ( Though they overdid it !! ). People from all over the world go to Dubai . India has a desert ( We too can have a desert safari ) and our products are cheapest . So we can have a shopping festival and our Duty free can be the cheapest in the world . But unfortunately , our politicians are ‘Duty Free’ !

Youth : We have reduced the age for voting and increased the age for retirement but no one thinks about lowering the age for employment . India is yet to ratify the minimum age convention ( No.138 ) of the International Labour Organization (ILO ). Rahul must rethink about the call to youth to join politics at young age and change the politics .Rahul has been running around the country to do that- I find this call quite ridiculous ! While Congress party is in power why are your people asking the poor Indians to join politics ? You run the government, and can change the things the way you want ! I would say let the youth do their jobs and let you do your job rightly. Please do not drag people for doing what you have already been voted for doing . Only message that you, or for that sake any politician must give is to ‘vote’ during elections and keep a watch on the tax payers money.

Remember it is not the defence, technology , Industry, SME , agriculture that will take the nation to the next level of growth, but it is the power of the youth that will push the nation ahead on 10 + % growth per year and we can do it only by empowering the youth with employment and wealth creation opportunities .

Today , every youth is disturbed by competitiveness and lack of options after doing hard work at school and college . Students are committing suicides . Please control the same . Those who are not committing suicides live worse lives .

Agriculture supports more than 65 % of the population but government still has a casual approach towards agriculture . In 2009, agriculture , forestry and fisheries grew negatively . If this sector can grow 4 % , the overall economy will grow more than 10 % . Which will be an all inclusive growth . Government spending in agriculture is neither planned and neither committed .  Occasional waver of loans does partially solve the problems of the past but does not open opportunities for the future .

Foreign policy : We do not have a single friendly neighbour . All our neighbours are hostile.

Our relations with the three big world powers are on a shaky ground . Recent statements made by Barack has created a lot of unrest in the IT & BPO industry. We are failing in our foreign policy

Internal security : Blasts in Pune and continuous increase in infiltration are not a good omen . Some areas of the country are not under the control of the government . Go and see in Darjeeling & Maoists areas which is approximately 1/6th of the nation . They run their rule of law  . Police and politicians fear treading into their territory .

Healthcare : I will not mention much about what needs to be done as i have already written to you about the same in November 2009. (Link http://rajendragupta.wordpress.com/2009/12/04/india-needs-massive-healthcare-reforms-rajendra-pratap-gupta/ .I read that the Ministry of Health & Ministry of Railways are working on setting up hospitals on railway land near stations . I believe that this is not the best option, as some of the medical equipments need pin drop silence ( For Electron Microscope , the doctors even have to stop their breath for a second to avoid any noise for the sake of accurate results ). Please drop this plan . Else , there could be more harm than general good . Remember bad decisions taken with good intentions are still bad decisions !!

You are building six AIIMS like institutes ,but you are not even able to control the exits from AIIMS ? AIIMS  has become a center of excellence due to its intellectual wealth and not due its buildings or medical equipments . You must realise this point . There is no fun spending thousands of Crores from our money ( taxes that we pay ) for things that you will not be able to manage .  Work out alternatives, or  go back to the drawing board .

I don’t see that the government has concrete plans for healthcare . Ideally , along with six AIIMS , government should have set up National Research & Resource Center for Diabetes, Similar centres for Epidemiology , CVD , Arthritis , mental health , Telehealth etc. Healthcare is becoming expensive due to the high cost of equipments. MRI costs a few thousand due to our lack of technical R&D . Our health minister must push more funds & incentives for research for technical & clinical R&D. This one factor will drive down the cost of diagnostics . Retail margins must be increased from 20 to 25 % for pharmacies so that the storage conditions can improve and the public can take medicines that are efficacious . Still you can drive down the cost of medications by asking doctors to write just generic medications. Please refer my earlier note on healthcare reforms sent to your office in November 2009.

Legal System or Judiciary ? : I will quote CJI , Justice K.G Balakrishanan , who apprehends public revolt because of delayed justice with an every –increasing back log . He once said ; For many , real life is different from reel life . Our judicial system has become an adjournment based judicial system  . Parties take stay order in initial date , and then never care to allow the case to proceed by seeking adjournments on one excuse or the other

My personal view is that , we do not have a judicial system at all. What we have is a legal system that works for the benefit of lawyers ,criminals & politicians in power. We can safely say that the current CJI will be sitting on some assignment after retirement. Similarly , we can say the same about our Chief Election Commissioner or the Chief of Armed forces or the Chief of CBI etc. The possible rehabilitation after retirement in return for their political obedience and return gifts.

Judicial system is one that not only acquits or convicts but delivers justice . Our judicial system delivers only incomplete judgements about either conviction or about acquittal ; mostly about acquittal. I will quote two cases for your better understanding

Jessica lall murder case : The judgement that came can be safely concluded as that ‘No one killed Jessica ‘ . This is what it meant when it acquitted the so called ‘Suspects’. Ideally a judicial system should have stated that Jessica was killed by ———– and he is found guilty and convicted . Stating that the suspect was not guilty and freed, the judiciary did not state who killed Jessica ? Why at all we call ‘Black coats’ as ‘Judges’ or ‘Justice’ ? . You cannot call it a judicial system !! It is a legal system where all can argue but outcome is one ‘Justice delayed if not denied or both in most of the cases’.

Second case – Babri Masjid :  It took few hours to demolish the mosque with all video clippings and it took 17 years to figure out who did it ? It took seventeen years for Justice Liberhan to deliver his ‘TRASH Report’ on the demolition of Babri Masjid. While a lot of finger pointing is being done at Raji Gandhi who did the Shilanyas in 1989 and opened the doors to the problem , then it comes to the turn of P.V.Narasmiha Rao, during whose ‘Rule’ the Masjid was demolished and lastly, comes the names of politicians like Atal Behari Vajpayee , Dr.Murli Manohar Joshi and Shri L.K.Advani et al. From different political perspectives , you can blame all of them or either of them !! History is always written by who wins the war !! This time the history was written by ——————-( Anyone’s Guess ) !!

Over the last few weeks i have followed the Liberhan Commission report , the discussions and the writings in the media about the blame game on this Babri Demolition . If i were Justice M.S.Liberhan , i would have concluded my report in just three lines .

When love fails , people resort to justice ,

When justice fails people resort to power,

When power fails , people resort to violence

My understanding is that ,the  Babri Masjid case has been running for decades. What the hell was judiciary doing for all these years ? Had they decided the case , the people would not have taken the law in their hands . History has proven that whenever law fails to deliver justice on time , people lose patience and take the law in their hands . So I would say that , neither Congress nor BJP nor Kar sevaks nor the politics of this nation was responsible for the demolition of the Babri Masjid . It was the failure of the Indian Judicial system that led to the demolition.  I have been reading that our CJI has been asking for reimbursements for his wife’s bill who travelled with him abroad. Shame on him ! India is running a huge budgetary deficit and the government is following an austerity drive .  CJI must understand that his legal system is a sham when it comes to efficiency but he has the temerity to demand allowances from a government in deficit . On the contrary , he should not have taken his spouse with him under the current circumstances and given up the cabinet status enjoyed by him as CJI .

RTI : We must move RTI online and provide information by email as well. Why should I have to go to a post office to give my form . Get an online payment gateway so that the people can use online application and get an online form . The process saves hassles of travel ( Fuel cost ), Paper ( Eco friendly ) and time .

Role of ministers : We have approximately 100 people who work as union ministers and it is their responsibility under your leadership to run this nation as per the mandate of the people.

Delay of the 3G auction has cost our tax payers a loss of approximately Rs. 7000.00 crore. Read this : http://rajendragupta.wordpress.com/2009/10/18/vulgar-salaries-indian-corporate-world/I would say that the basic responsibility of each and every minster should be measured on few Key parameters every six months against targets set for each . Incase people fail thrice, remove them. They cannot be wasting our money.

  1. Wealth creation – ironically no ministry works for it . Please don’t take divestment as wealth creation !
  2. Job creation
  3. Managing expenditure
  4. Regulation , controls & reputation ( Brand building for India )
  5. Protecting the citizens
  6. Enhancing the international foot print of their respective ministries as applicable .
  7. All the above should be self-sustaining  and the ministers must spend half of their work time amidst the public and not in the comforts of their AC cabins and cars.

Charitable public work cannot be a long term plan. It can at best work as a short time gimmick which costs exorbitant to the exchequer and loss to the citizens ; in a sense it is like a bottomless pit . One must remember that , any investment that does not build assets or results in outcomes that positively impact the future become ‘case studies of fraud, faulty implementation and finally, failure ‘

Dr.Singh, you are known for knowledge ,integrity and obedience to 10 Janpath . But that is no measure of your performance. I tried to rate you on the following parameters as a Prime Minister of India on a 10 marks report card for each of the following key performance Indicators:

  1. Performance on national integrity & Secularism: 00/10 ( India is fast becoming regional – A dangerous sign that can split India )
  2. Performance on Preparedness for war – defence capability – 2/10
  3. Performance on population control : 00/10
  4. Performance on forecasting , identifying key priorities : 00/10 .
  5. Performance on preparation and pro-activeness of the government for unforeseen contingencies : 00/10
  6. Performance on action time from the time of identification of problem : 3/10.
  7. Performance on Team work  :  5 /10 .
  8. Performance on foreign policy : 0.5 /10 ( 0.5 marks for signing the nuclear deal )
  9. Performance on law and order at home : 2 /10
  10. Performance on planning , fund allocation and utilization : 2/10
  11. Performance on enhancing the competitiveness of Indian industry & exports :  2/10
  12. Performance on making India’s voice heard in the global affairs : 3/10
  13. Performance on rural upliftment  – farmers , rural infrastructure : 3/10
  14. Performance on healthcare : 2/10
  15. Performance on delivery of justice : 00 /10
  16. Performance on Raising funds from divestment, issue of Telecom licenses : 1/10
  17. Performance on wealth creation in India : 00 /10
  18. Performance on brand building for India : 1/10
  19. Performance on climate change : 00 /10
  20. Performance on empowerment of youth : 1/10
  21. Performance on women welfare : 1/10
  22. Performance on long term planning : 00 /10 ( Infact, there is no plan )
  23. Performance on budget / deficit : 2 /10
  24. Performance on approvals / industry : 3/10
  25. Performance on SME : 2/10
  26. Performance on Education reforms and capacity building including vocational courses : 2/10
  27. Performance on infrastructure creation & new towns : 1/ 10
  28. Performance on curbing corruption : 00 /10
  29. Performance evaluation of the team / reports : 00 /10
  30. Performance on transparency & accountability of public servants and representatives  : 00/10
  31. Performance on public perception : 2 /10 ( This was much higher before elections in 2009 )
  32. Overall performance versus commitment & mandate : 1.5 /10

Dr.Singh , i believe that leadership is performance and you are failing badly. Time to shape up  !! Good image is not performance !I am not surprised as your team of advisors lack ‘common man’ and internal critiques . You have advisors who are out of touch with reality . Correct this immediately .

As a honest tax payer , it is my duty to seek answers from the people who use our money and run the ministries and as bureaucrats . Every minute you people spend in your office or every inch that you move is funded by money collected as tax from people like us . I need your response

Please respond at your convenience . Should you require any details , feel free to connect . This is an environmental friendly mail and so not sending a hard copy

Best wishes & with warm regards

Rajendra Pratap Gupta

Email : office@rajendragupta.org

Office.rajendra@gmail.com

Cell : +91 9 22 33 44 542

India is 1/3rd of what it is made to believe -


We must consider accepting a new rule which i call the “1/3rd India rule”

It is so relevant & applicable to most of what we measure .

 In India , 1/3rd of the population is beneficiary of reforms . 2/3rd still pays a price for negligence of 1/3rd

 India has 1/3rd of its population living in urban India and the rest lives in rural India

India talks about 500 million cell phone subscribers . Actually, most of them are multiple / unused / dumped sim cards . So the actual number of users could be just approximately 1/3rd of the number projected In India 

Rural per capita GDP is around 1/3rd of the per capita GDP in urban India Even the actual GDP growth is one third of what is shown by the government . If you see for 2009, Agriculture , forestry and fishing grew negative . These three sectors are the basic means of subsistence for 2/3rd of the population . But the government is just working for 1/3rd of the population ignoring a major chunk

 Till we address SME , Agriculture and manufacturing , we will be subject to negative cycles

For most of the schems for upliftment , one third of the funds remain unused , which clearly proves that it is not lack of resources , but lack of governance which is dragging the nation backwards .

 Last year during the recession , and this year due to inflation (exorbitant price rise) , India has pushed more people below the poverty line then we could have thought . Still the government says , India has been unaffected by recession? India still wants to increase the price of fuel ?? We must take our current policy makers to task and question them about the 1/3rd rule that is shaking the economy and dragging us backward . We are among the lucky 1/3rd of the privileged population . It is our duty to raise the standards of remaining 2/3rd .