Strong fundamentals of Indian Economy

Please see the total debt , interest and principal payments by the Government of India . Still do you think that we can pull this country out of the mess under the UPA ? We need radical changes

As per data made available by the Ministry of Finance on debt vide RTI dated 13th May 2013 letter dated AAAD/COORD/ L(1)2012;  AS ON 31/12/2012

Government Loans :

Total multilateral debt is INR 2,401,829,740,367

Total bilateral debt is INR 1,046,418,091,740

Total Government loans ( multi-lateral and bilateral ) is INR 3,448,247,832,107

Non – Government loans

Multi-lateral INR 302,495,682,321

Bilateral INR 190,240,677,456

Total Non-governmental Multilateral & Bilateral loans  – INR 492,736,359, 778

Grand total ( Government & Non-Government ) 3,940,984,191,885

Total yearly payments of interests & principal

2011-12                                     2012-13 ( 01.04.12 – 31.12.2012)   Figures in 1000 INR

Interest                 2425686378                                 2028398390

Principal               34823428250                               24641868095




Economy to grow 6 % ? Are we fooling ourselves !

Car sales in India slumped 25.7 percent in February, the biggest fall in more than 12 years and the fourth consecutive monthly slide, an industry body said on Monday, as sluggish economic growth continues to weigh on demand.

The industry is expected to see it first decline in annual sales in a decade as high interest rates and rising fuel costs in Asia’s third-largest economy put off buyers in a market that was once one of the world’s most promising.

Automakers sold 158,513 cars in India last month, data from the Society of Indian Automobile Manufacturers (SIAM) showed. Car sales are down 4.6 percent for the first 11 months of the fiscal year ending in March, it said.

“There is no improvement in the market sentiment. People have more or less stopped discretionary purchases,” Sugato Sen, deputy director general of SIAM told Reuters.

“This has really impacted the bottom of the pyramid, people who buy the smaller cars,” he said, referring to the slowing economy that is expected to grow 5 percent, a decade low. “That is getting reflected in the numbers.”

Our Finance Minister is now doing road shows in Hong Kong, Japan etc to attract investors ….. If the Finance Minister of India has to take to road shows, Indian economy is entering a ‘No show’ time ……

This is what i have been writing for the past one year ……..Wake up call for our ‘Learned Handicapped’ Politicians, who are disconnected from the ground realities

Rajendra Pratap Gupta

Financially, India is nearing a melt down

Indian rupee has depreciated more than 20 % against the dollar and nearly 50 % against the Chinese renminbi. Household savings , as a percentage of GDP , have plummeted to a 21 year low……..IIP numbers ,automobile sales & agriculture production are telling the sad story of how upper , middle and lower class are getting into this negative spiral 

Worse could happen , if Pakistan or China ups the military action seeing the financial problems of India ?

Rajendra Pratap Gupta

Shoot first ( without an aim ) ……principle of the Government

Centre for Participatory Democracy

With the UID scheme involving a Rs 5,000 crore rollout in the initial stage, now, it was felt the proposal be subjected to a more detailed examination by a GoM ! Can you imagine how the public money is being spent without having clarity ?  This is not just a blatant loot of the public money , but a plunder more brutal than what Mughals did !  On one side , we have 300 million starving , one the other side , this Government is throwing away the money on its whims and fancies in the name of a common man ?

The Cabinet discussion on Thursday ( 31st January 2013) revealed that , the ministerial panel was not immune from contradictory and blurred perceptions about Aadhaar, as UID is known, with some ministers saying they had received a card along with a number.

Confusion over whether the unique identity number is a number, a card or both, and concerns over UID and the National Population Register duplicating functions prompted the Cabinet to refer UPA-2’s ambitious project to a group of ministers.

Differences persisted as concern was also expressed over duplication or overlap between the National Population Register (NPR) and the UID. Both processes involve a similar collection of biometric data including iris scans.

And this is being done after spending thousands of crores of the hard-earned money, when we have a dangerous levels of external debt and fiscal deficit ?   Why have we not converted NPR into UID ?

This Government follows the principle ‘Shoot without a target’ in the name of the common man.

Most of the Government schemes have been executed with no end in sight and this is what is faulty with the Government .

Time to question this Government

Rajendra Pratap Gupta

12th Five Year Plan – DMAI


Rajendra Pratap Gupta

President & Member

Board of Directors

March 09, 2012

Via e-mail / Speed-Post

Dr. Manmohan Singh,

Prime Minister

Government of India

Shri Ghulam Nabi Azad,

Union Minister for Health & Family Welfare

Government of India.

Subject: Strategic Considerations for Healthcare in the 12th five year plan


Dear Dr. Singh & Shri Ghulam Nabi Azad ji,

I am writing this note on behalf of DMAI – Disease Management Association of India.

Disease Management Association of India (DMAI – The Population Health Improvement Alliance) is formed by leaders from the Global Healthcare fraternity, to bring all the stake- holders of healthcare on one platform (Both the public & the Private sector). DMAI has been successful in establishing an intellectual pool of top healthcare leaders to become an enabler in building a robust healthcare system in India. India is on the verge of building its healthcare system, and it has a long way to go. DMAI is building the resource – knowledge pool to contribute & convert ‘Ideas’ into ‘Reality’ for healthcare in India. DMAI is the only not-for-profit organization focused on population health improvement in India.

Earlier in 2009, I have authored the comprehensive healthcare reforms agenda for India, and this has been appreciated by political and policy-making leadership at the highest level. Further, the healthcare reforms agenda  (detailed agenda is available at the DMAI website has been incorporated in the healthcare planning in the state of Chhattisgarh.

Further, DMAI has given inputs to various government bodies, as sought from time to time on:

Re-structuring of ICDS

NCD Policy

Re-structuring the 12th Five year plan for healthcare

Formation of NCHRH

Inputs in the high level UN summit for NCD’s (DMAI was an official invitee to the UN)

DMAI has raised important issues w.r.t. The Mental Health Act 2010, banning of Junk food in schools, reservations in airlines and railways for critically ill and in times of medical emergencies, radical changes in Jan Aushadhi scheme, healthcare reforms in J & K, Protocols and treatment guidelines for all major acute and chronic illnesses; besides other issues. Details available on

12th five year plan is being talked of as the ‘Plan for Health’, and through this note, DMAI wishes to bring a few important issues before the policy makers for debate and appropriate action:

Quality of Healthcare: Last year, I was nominated to the five member Healthcare committee of the Quality Council of India. Since then, I have been discussing with all the stakeholders in healthcare, including the patient groups, about how to improve the quality of healthcare in India.

Action:  It must be made mandatory for all healthcare providers (Care Givers), to submit the Patient / treatment outcomes data e.g. for hospitals (including admissions, no. Of night stays, re-admissions, infection rates, deaths, referrals, etc.) to the government every year without fail. Also, getting similar data for doctors, clinicians etc. should also be looked at. This data could be maintained under the Quality Council of India (QCI) or an entity under QCI, funded jointly by the government and private players or, as an independent organization. This organization must analyze the data and post it on the website, so as to enable the patients to make an informed choice when it comes to choosing the doctors / hospitals or the caregivers. This will be the first step in bringing transparency in healthcare and a major boost to improving quality in healthcare. A hospital stay costs an average of $236 per day in India, $655 per day in France and an average of $3,949 per day in the US, according to a report — 2011 Comparative Price Report Medical and Hospital Fees by Country – released by the International Federation of Health Plans.  After paying USD 236 (Approximately Rs. 11328.00 / day (USD 1= INR 48), what does the patient get in return?  . We believe that by implementing this reporting by caregivers, the caregivers would work harder to improve their performance in terms of outcomes for treatment and, in a way, it will lead to ‘Pay for Performance’.  Patient would be able to make choices based on whosoever provides the best care!

Also, all the hospitals / care givers must ensure appropriate patient follow-up and feed back mechanism, and the government must devise an institutional mechanism to collect the data on success rate of treatments and examine the reasons for failure so that the quality of healthcare delivered can be improved.

This must be done by setting up the National Institute for Research in Healthcare Quality Improvement.

This institute must focus on coming out with annual reports on improving the quality of healthcare in all the states, as the healthcare issues vary from state to state. We have seen that recently, West Bengal has been home to dozens of child deaths in major government hospitals.

But as of now, there is no investigating body for healthcare to look into these issues, and the crime investigating agencies (Police) lack the necessary qualifications & skills to carry out any meaningful investigation and suggest remedial steps for such incidents. It is the time to correct this by setting a dedicated national body for such incidents.

USA has moved towards ACO’s (Accountable Care Organizations); and it is high time that India sets up the guidelines for all healthcare delivery organizations to become self-regulated ACO’s

Recently, DMAI was actively involved in doing the biggest Healthcare camp in Ajmer (the constituency of Shri Sachin Pilot), and examined over 50,000 (according to some media estimates, approximately 71,000 people). The people were given free diagnostic tests & medicines only due to active participation & support from the private sector. It is high time that the government acknowledges that the private sector has a pivotal role to play if the ‘Healthcare for all- Universal Healthcare’, has to move beyond ‘mike & paper’! Private sector has always shown commitment by providing resources for ‘pilots’ and ‘Free camps’, but we must not forget that, ‘Charity is as deep as the pocket’! It would be a win-win, if the government starts with launching the mass screening program with the private sector, re-launching the ‘Jan Aushadhi’ scheme with the private sector & implementing mass scale telemedicine / mHealth projects with the private sector

I was an invitee to the meeting called by the Hon’ble Health Minister /WHO on 23/ 24th August 2011 at Delhi, and was also involved in the writing of the document called ‘Delhi call to action’.  I recall, that the Hon’ble Minister made an announcement to screen 200 million people for diabetes and hypertension by March 2012. I have learned through reliable sources that this mass screening plan, that was to start with 100 districts was reduced to 10 districts and finally to slums of two districts, and the results were not encouraging! In a way, even 10 % of the target of 200 million (2 crores) has not been achieved. This reminds me of the Sir Joseph Bhore Committee report in 1946, which talked about Universal Healthcare.

Also of the National Health Policy (NHP) 1983, which talked about ‘Health for All’ by 2000 AD’.

Both these committees failed to deliver Universal Healthcare. So, essentially, even after 65 years, ‘Healthcare for all’ has just remained a ‘concept’ & a mere ‘talking point’.

In the current plan – 2012, we are again talking about the same thing ‘Healthcare for all’. This time, we have a high level committee and the wordings have changed to ‘Universal Healthcare’. Doubling of budgets for healthcare will not be able to address the healthcare problems facing the nation, till we ‘double our understanding’ of the real issues and the solutions and give up the parochial approach to remedy the ills in our system!

It is clear that the government lacks an execution plan, and also that; ‘execution’ has never been the forte of the government. It is high time that government puts “PPPr”- Private Public Performance based rewards partnership in place like the NHAI and then only releases the budget for the 12th five-year plan.

It is time to learn from what you did in UID! A person from the private sector has already issued 30 million Aadhaar cards, and this has already become the biggest biometric program in the world. Can we not learn from UID and implement in MOHFW ?

We need a ‘Professional’ CIIO (Chief Innovation & Information Officer) in the Ministry of Health, who will bring the necessary capabilities in the ministry to make a difference in the ‘Health for All’.

Free insurance & Free medicines: This scheme is a ‘Killer Combination’.  ‘Social healthcare’ has failed miserably in the western world, and we seem to have not picked up the lessons but are hell bent on ‘Importing failures’ of the west into the Indian healthcare system. As I mentioned in the 2009- ‘Healthcare reforms agenda’, I will re-iterate that we need a ‘Co-pay’ model for healthcare delivery.  Except the BPL families, all others must have’Co-Pay’ component in the healthcare services even if it is a token of 5-10 % of the total healthcare cost borne by the government. Co-Pay must go up with the income slabs!

Rajiv Aarogyashree scheme (highly publicized scheme of Andhra Pradesh), is now widely talked of as a ‘failure’, and the government is not in a position to pay the empanelled facilities for the ‘free treatment’ that has been a part of the popular scheme

It is time to re-look at ‘Free universal healthcare schemes’. If the government examines the free healthcare schemes currently offered all over the world, it would think twice about free healthcare!.

Free medicines scheme: During my visits to Rajasthan (medicines are given free in Rajasthan government hospitals), I was made to re-think about this scheme

This scheme has created a peculiar situation for doctors.  Doctors are told that the family member is suffering from cold, cough or backache, and s/he is asked to give the medicine!

When the doctors request to examine the patient as to check if it is dry cough, TB induced cough etc., the response that the family members give is, ‘ When the medicines are provided free by the government, then why do you ask so many questions?

If the doctor refuses to give medicines, political pressure is applied and the doctors are harassed! Doctors have been reduced to ‘compounders’, and are just dispensing medicines rather than treating patients, because of the ‘free medicine scheme’!  Even in the USA, we have seen scams where ‘dummy patients’ were created under Medicaid, and reimbursements taken from the government in the name of ‘diabetic patients’. India will witness large-scale organized frauds if such a scheme is rolled out without adequate checks and controls.

When it comes to medicines, I must request the government to monitor the pharma industry closely, as the customer is not getting the benefit of ‘low prices’ (read as- schemes that are offered by the industry to the distributors).  Just for the sake of information, I am quoting two examples:

Panegra is available at an MRP of Rs. 124.00 and the scheme offered by the manufacturing company is- seven strips free on purchase of one strip! Still the end consumer buys the medicine on MRP!  The manufacturer distributor – retailer nexus swallows the entire margin.

Another example is that of Cifran, priced at Rs.58.80 and the scheme offered by the manufacturing company is – one strip free on buying two strips. But, such benefits are never passed on to the ignorant end customer- patient. Similarly, 1000’s of products are available with such ‘deals’ but the patient does not get the benefit.

Government must take decisive action against such pharma companies. The two companies quoted here are just for reference and most of the companies are indulging in these practices

Also, the government must give a big push for mobile healthcare (mHealth & Telemedicine). CDAC Mohali (a government body) has developed a great application for telemedicine, and DMAI used that service during the mega healthcare camp at Ajmer, in collaboration with PGI, Chandigarh. It is time to promote such institutes and organizations.

May be, it would be worth having a joint working group between the ‘Ministry of Communications & IT’ and ‘Ministry of Health & Family Welfare’, to explore the commercially deployable models of telemedicine & mHealth

It is the right time to train all our nurses & pharmacists in healthcare counseling through online training modules and create a special cadre of healthcare counselors for chronic diseases.

It is the right time to set the Patient Charter for Healthcare, which includes the patient’s rights and responsibilities. DMAI is driving an initiative to come out with a ‘Patient Charter’ under the leadership of Dr.Aniruddha Malpani.

These changes are required if we wish to make an impact on the healthcare delivery system.

Currently, there is a big gap between ground realities, policy formulation & execution framework. We need radical changes in our thinking to create an ‘Inclusive Healthcare Ecosystem’. It is better that immediate steps are taken to correct the loopholes so that Healthcare for all can become a reality without compromising on the quality of care.

DMAI would be willing to volunteer with its knowledge pool and resources should the policy makers need the same

Yours in good health

 Rajendra Pratap Gupta


Mrs.Sonia Gandhi

Shri Nitin Gadkari

Dr.Manmohan Singh,

Dr.Murli Manohar Joshi, Chairman, Parliamentary Accounts Committee

Minister for Communication & IT, GOI

Montek Singh Ahluwalia

Dr.Syeda Hameed.

Shri L.K.Advani

Smt. Sushma Swaraj

Shri Sudip Bandyopadhyay

Sam Pitroda

Rahul Gandhi

Sitaram Yechury

Secy, Health & Family Welfare, GOI


Dr. K. Srinath Reddy

Dr.Girdhar Gyani, QCI.

Dr.V.K. Singh, QCI

Board of Directors – DMAI

Inaugural Speech delivered by Rajendra Pratap Gupta on March 14th 2011, at ‘Spardha’ – A national level event organized by VAMNICOM , Pune, for students of Management & Agricultural institutes across India

Good Morning friends !

I feel honoured to be here and am thankful to my friend, Dr.Yash Patil and the Director, Dr.Reddy, for giving me an opportunity to be a part of your National event, ‘Spardha’ .

Whenever I address students – the young , energetic and vibrant crowd , I am quite convinced that India will change . You are all full of great energy and ideas, but sadly , at present , India does not offer you a readymade & attractive platform due to our inefficient leaders at the helm of affairs and corrupt bureaucracy who are eating away the money and opportunities meant for the common man . But I see that the winds of change are on the horizon , and I believe that each one of you will push India ahead ; to set a new bench mark for the world in all spheres.

Today , India stands at a very critical juncture , and institutes like VAMNICOM hold the key for either India’s meteoric rise or a gradual fall !!

I was going through your chairman, Dr.Chandra Pal Singh Yadav’s message , and I was impressed with his views that we need to support farmers ,workers and weaker sections of the society for the development of this country. I believe that the education imparted via VAMINICOM aims to deliver that goal . This is exactly what India needs today .

It is an ironical fact that IIM’s and IIT’s have lost direction and failed to deliver the mission with which they had started with. Today, IIT’s & IIM’s are about fat packages from MNC’s . In fact , they have become subservient to MNC’s packages and are doing little for this country’s betterment . In these times , we want you all to pass out of VAMNICON and set goals that will re-define the future of this great nation.

Let me put things in a little perspective so that you do not have illusions in future when you move out of the campus. I believe that you will pass out this year or next year, depending if you are in 1st year or the final year. Some of you will get back to their family business , some will seek jobs and some will become entrepreneurs . No matter which path you take , the formula for success would remain the same . So let’s understand the realities of professional life :

Each one of you needs to have two goals in mind – Urgent ( short term ) & Important (Long term )goals . ‘Urgent’ is about the present i.e. your studies, to clear the exams with good marks . ‘Important’ is about future . What are you going to do after passing out from VAMNICON ? Don’t ever commit the mistake that President Obama did ! When President Obama started his election campaign, he talked about healthcare reforms & the Wall Street reforms. By the time he became the President , things had changed, but he still focused all his energies on the ‘Urgent’ & forgot the ‘Important’; that the market conditions had changed and there was a deep recession . People were losing the jobs every hour . President Obama still kept working on his ‘Urgent’ agenda,not realizing that the conditions had changed . He accomplished Healthcare reforms & Wall Street reforms !! Mid-term elections came in for the congress . President Obama had missed out addressing the Important , and so he lost to the Republicans in 2010, and finally , he is fighting to save the essence of the bills that he had passed on healthcare & Wall Street . The point is, never loose sight of the changed circumstances and keep focusing on both the urgent & the important . Else , you will have to compromise to survive . We are living in a very dynamic and an ultra -volatile world .

We live in a material world :. Don’t try to kill your desires. Reality in life is that people worship knowledge, position, influence & money. So you need to have each of them if you want to be successful. You must aim to be debt free by the age of 40 and, have a house , vehicle and savings good enough to last you without working for a year or two. It is extremely important to draw a line as to how much is much ? If you do not have those boundaries, you are bound to get into the mad rush for making money without realizing where to stop ! This is what our current politicians are doing . They lack moral boundaries, and they go for more and more and do not stop before nature pulls the carpet under their feet !!

Getting settled in life : How many of you want to get settled in life soon? Well let me quote you an interaction with one of my dear friends – Shiv Khera . He is the biggest motivational Guru in India . Sometime in 2009, we were coming out of The Grand Hyatt hotel , and he was discussing with me about the new path he had undertaken that required tough decisions . So I asked him ‘Shiv , can you leave your book writing and speeches and join politics full time ? To which , he immediately replied ‘ I am not yet settled’ . Imagine , if a person who is the highest paid speaker and the best motivational writer, is not settled , how will people like you and me be settled ? So it is wrong to assume that we ever get settled in life . Life is about facing constant challenges. Have you ever seen an ECG ? If ECG comes out as a straight line , the patient is dead !

You cannot have a long ride without a puncture : While all of you will do well in life , but you can never drive a vehicle always in the fifth gear . Long rides cannot be without a puncture . Some time , you will feel that you weren’t wrong but still you were punished . Never mind , even Gods were punished without fault ! Lord Ram & Lord Christ were punished for no fault of theirs . But do fight back for what is right !!

Keep reading books and newspapers to update yourself on the global and national scene & across sectors . If five friends came together , you could buy one book each and read five books . Form a habit to read at least two news papers a day . But learn to appreciate the difference between education , knowledge and wisdom . A highly educated person might not necessarily be a wise person .

Stay Fit : As you move up the corporate ladder , you will need to be mentally fit and physically active . Devote 5 % of your daily time for yoga , mediation and gym Working is important but so is networking . How many of you are on facebook , Orkut or twitter ? How many of you are on  a professional networking group ? Professional networking groups are a powerful professional tool for career progression . Please do not ignore them .

Always look for new ideas & not become copy cats : I was heading a large retail chain as a COO, and every time in the review meetings , I would solve the operational problems with a new approach . Once , my team member asked me , ‘Sir, every time you come out with something new , but one day you will run out of ideas , then what will you do ? I asked him “Since how many years river Ganges is coming out from Gangotri ? . He replied ‘ Since ages’. I asked him again ‘has it stopped ?’ . He replied ‘never’. He got the answer . That there is no limit to new ideas . While you are working in an organization , ensure that your work & experience profile changes every 2-3 years . Else , you would be like a truck driver with 20 years of experience. Remember that a truck driver faces the same road conditions every year . So his actual experience is just one year !!

You are amongst the five % Indians that are graduates . So you are also responsible for the remaining 95 %……… Let me ask you a question ? I know of a family where 56 % of the income goes in paying loans , 30 % of the income goes in running the household and another 10 % is miscellaneous expenditure , and only 4 % is invested to increase the income or to create assets . How would you rate such a family? Well to do, not good not bad or in a serious financial crisis ? So here are the facts about Indian economy : 55.9 % of the GDP goes into servicing the debt, approximately 30 % is the cost of running the government and bureaucracy, 2.5 % goes to subsidies , 2.6 % goes to defense . One fact is clear that only about 4 % of the GDP is going towards asset creation or wealth creation in this country . This is a very serious issue facing the nation.

How will the country be prosperous which spends about 96 % of its income with no wealth creation strategies & adds 17 million people to its population every year !!

If our country borrows Rs.80 lac a minute how will its citizens be prosperous ? Similarly, If the 99 % of the system is corrupt , you & your family members and even your next generation will certainly be harassed unless the system gets changed ?

Let me ask you another question. If you were earning handsomely after working hard, how many of you would share your monthly income with you neighbours or servants after paying your taxes ? We keep hearing that the fruits of growth has not reached the masses.

Common man will not reap the fruits of India’s prosperity unless he is the one driving it !! Why should someone share the earnings of his hard work with someone who hasn’t ? This is where each one of you can make a real difference . Agriculture continues to employ 65 % of its population and contributes just 17.2 % of the GDP. There is so much to be done but none at the policy maker level knows what to do ?

A few weeks back I was with the policy advisor of Rahul Gandhi , and we were discussing about how we could transform rural India . He informed me that he was advising Rahul to create 600 new districts at a cost of USD 1 billion each to transform India, but he could not convince me as to how 600 new districts transform the population’s standard of living ? After an hour of discussion , he admitted that the future of the villages was doomed ? Should we let this to happen ? We know the problem , lets take the challenge to change the fate of these ‘doomed’ villages . Each one of you can contribute effectively . We know that the government might not have the right answers but we must not just find solutions but also go ahead and implement them.

Rural India can transform if we understand that the basic requirement for such a transformation is having ‘transactions’ in rural India . The good thing about money is that whenever it changes hands , the hand becomes heavier ! I request you to think of creating business models that can utilize the local inputs and create products and services that leads to more transactions for rural India . Co-operatives & SHG’s ( Self Help Groups) are central to rural India’s transformation. Think about the 1.55 lac post offices , 2.38 lac gram panchayats and millions of kirana stores . Can we not create rural millionaires out of 700 million rural Indians ? We need micro-preneurs & agri-preneurs, if we want to change the rural landscape . Due to uncertainty of variable factors and no clear political vision for the prosperity for rural India , people do not want to remain in agriculture any more . If they get a job they keep moving and are selling their land. Because of the haphazard developmental policies , land and employment under agriculture is decreasing . In the western world, people are migrating to rural areas for better quality of life and in India , it is just the opposite, as Indians are migrating to urban areas. God forbid, if India ever faced a famine or severe draught , what will happen to a billion people ? Have we planned for it ? Can we guarantee it will never happen ?? We have not been able to tackle inflation even ??

A day before yesterday , I read that government wants to open the FDI in retail for metros and we have heard in the past that ‘Mumbai is being made Shanghai’ . So if we are creating hype and investing in metros , why should people not migrate ? We must create more ‘Mumbai’s in India rather than trying to create ‘Shanghai’ in Mumbai . Government has always said that opening up the FDI in retail will improve the supply chain. But we know that FDI in supply chain is already permitted . So we know that this is a wrong reason to justify FDI in retail.

Most of our growth is inspired due to the growth in China. India woke up for growth when China started growing at 10 + % per year with a much larger population . The current growth in India is about GDP and sensex . India’s growth is only applicable & benefits people who read The Economic Times . Such a growth has no strong fundamentals .

The government has allocated Rs,500 crore for skills development programme, and Rs. 40000.00 crore in NAREGA . This is, when we are facing acute shortage of trained man power in every sector at every level ! If a few thousand crore was invested in skills development for rural India , it would create a lasting value for the rural people and the economy

 Wastage of agriculture produce due to lack of proper infrastructure is to the tune of Rs.30000.00 per year . Can we address this issue ? Some of you go and start a daily transportation service that carries the farm produce to the nearest town for sale . Imagine the value addition it would bring to the farmers ? You charge them a fixed percentage of sale ?? All will make money in the process and Agriculture will be lucrative for farmers – something that is missing today .

Can some of you go and set up low cost rural cold chain facilities for rural India Can some of you set up international technical collaborations for enhancing the quality and quantity of farm produce India has the largest number of cattle but not milk products . Can some of you create more Amul’s & Warna’s in India ?

India is the largest producer of milk in the world but not the top most exporter !! India is endowed with livestock resources of vast genetic diversity and accounts for about 11 percent of the world livestock population. The country boasts of 55 per cent of the world buffalo population, 20 per cent of the goat population and 16 per cent of the cattle population in the world. India has the largest cattle and buffalo population in the world and holds the second rank with respect to goat and sheep world population. Some of you could take food processing techniques to rural India

Kiwi fruit is sold at Rs. 25 a piece and it is given to pigs in Manipur as the road infrastructure is so bad that the fruits are unfit for consumption by the time they reach the markets . Some of you develop technologies to save such a wastage

Healthcare reaches only 24 % of rural India . Some of you could create a viable rural healthcare delivery model .Some of you should go and set up telemedicine centres across rural India

Some of you could maybe set up veterinary care centres ?

Kirana stores in rural India are still lagging behind . Some of you can start a rural Kirana store chain

Can some of you go and set up SHG’s in different states in India and empower them to form a national level marketing channel for rural India Opportunities are countless , just go and execute .

Let me tell you that Indian system is very good but manned by wrong people , and so public has lost trust .

Despite all the odds , everywhere in India, I see so much opportunities to work on , and it is a great boon to be born in India . It is how you take it . I believe that each one of you will have a lot to accomplish in life , and am sure that this institution will equip you with the right tools to handle the opportunities that will come your way

I wish you all the best and hope to see you again


Budget , Governance & Political leadership

Budget , Governance & Political leadership

Few important points :

Paridhi : Here is the answer on how budget could have been better: Besides ,there are many other points that i have covered based on queries from other Blog subscribers

1. If the budget was not just a statement of account or an announcement . All the investments should be related to quantifiable outcomes

2. What will 37 % investment in infrastructure lead to ? How many jobs ? How much time will it take ? Were there any other opportunities that can have a better ROD ( Return on decision ?? )
3. If the PSU will get divested , what is the return on Divestment (ROD ). When you divest, you are giving away profits to the investor forever . How much profit will we give away because of divestment ? one is the ROD ( Return on divestment ) or the cost of divestment ( COD ) over the next 10 years & the last is the Return on Opportunity loss ( ROOL ) .
4. Every year 3 % of the population ( 30 million ) go below the poverty line due to healthcare costs . Last year due to recession , at least 3 % more would have gone down below the poverty line + 1.55 % annual population growth rate adds another 15.5 million people to India every year . Where does the budget put in place these numbers and the plan to address the needs of additional 75.5 Million people ? . Can we call the current budget without such considerations & provisions an all-inclusive budget ?
5. Budget should also give an account of the last year’s budget versus achievement and also state how many plans have been shelved and what is the amount that has been unused by the various departments . So that we can ensure the sanctity of the budget and the accountability of the people at the helm of affairs
6. On one side we are talking of revenue / budget deficit , on the other side , we have given a 30 year tax holiday to SEZ ? What is the logic ?
7. Over Rs.6 Lac crore worth of Black money is lying in the banks . Government should promise the people that the money will be brought back to the country in the next few years . This should actually cover the revenue deficit
8. The current budget is provoking budget for Naxalites . Naxalites strives on poverty and poverty thrives on poor governance
9. If the government wants to increase spending for employment generation , it must pass a rule that from 2015, any company bidding for government tenders should have a manufacturing base in India to cater to 50 % of the delivery of products and services
from its Indian company . This will fuel large-scale investments and generate phenomenal employment opportunities .
10. The budget must have allocated money for solar energy in Rajasthan and for villages that still do not have electricity
11. Pentakota in Orissa has one school for 40,000. We need one university and 15 -30 schools in that town. Such things should be considered if we talk about all-inclusive growth .
12. It will take 320 years to clear the judicial back log, Every Indian judge has a load of about 2147 cases. This must be addressed or else i might consider becoming a hard core criminal than writing such emails expecting a change . Simply because my case would beyond 2147 and it will never get settled in my lifetime at least !!

India has the biggest problem with the average age of the political leadership that is a big disadvantage seeing the average age of Indians . The ratio’s are out of sync . Age of political leadership should match the national age group . I am totally against reservation that divides the society and the nation. The best thing would be to provide financial and institutional support to those who need and may be get 50 % of the youth in government ( without any reservation )to lead this nation’s political agenda



See the case of 3G spectrum : few questions .

Why are we launching 3G. Can we not move directly to 4G ? Smaller countries like Sri Lanka started 3 G five years ago. Why are we so late ? It could be a better decision to move directly to 4G . Government wants to collect more than Rs.30,000.00 crore. But it has not stated what is the benefit of 3G for the investor over the next 5 years . What is the life cycle (Span )of 3G,  when the 4 G comes , what will the players do then ? This could prove to be very costly and killer for some of the telecom players. India is still a voice driven cell phone market .

2. Why India should have 16 circles . Why not one India . USA has single geography for its mobile user
3. I personally believe that 3 G will hit the telecom companies mercilessly . It might lead to losses and mergers & finally consolidation amongst telecom companies in India

In India , i believe that the basic problem is ‘powerful announcements and powerless execution’

Corruption & leakage is leading to a black money economy : Why it is that giving bribe is a crime ? No one gives bribe willingly . It is only a choice-less option when you are pushed against the wall . We need to encourage people to report bribing . But seems that the current law is to protect and patronizing bribe takers. The law must be amended with a clause that giving bribe is not a crime as long as it is reported with the vigilance authorities after the bribe has met its purpose. This will help ensure that the work will get done and the person taking bribe can be brought to the book. We must encourage people to come out and report without the fear of getting caught and that their genuine work does not stop !

China – India : Politicians in India are trying to ape china . The fact is that, a few decades from now China will be a big economy and an old nation. India is not a big economy now but is a young nation today and we will lose our Future demographic advantage (FAD ), if our politicians do not act with right policies now .

We are a victim of a good government , but poor governance .