The BRICS alliance, initially formed in 2006 by Brazil, Russia, India, China, and South Africa, has experienced a transformative expansion in 2024. The BRICS grouping collectively occupies considerable economic power in the globe. The expansion of BRICS membership has further boosted its influence. The group represents a significant portion of the world’s population, Gross Domestic Product (GDP), global trade, and energy production. In 2023, Brazil’s President called on the BRICS nations to create a common currency for trade and investment between each other, as a means of reducing their dependability on vulnerable American dollar exchange due to rate fluctuations. 

Officials and economists have pointed out the difficulties involved in such a project, given the economic, political, and geographic discrepancies between Brazil, Russia, India, China, and South Africa. Brazil’s president doesn’t believe nations that don’t use the dollar should be forced to trade in the currency, and he has also backed for a common currency in the Mercosur block of South American countries. The Southern Common Market, commonly known by Spanish abbreviation Mercosur, and Portuguese Mercosur, is a South American trade bloc established by the Treaty of Asunción in 1991 and Protocol of Ouro Preto in 1994. Its full members are Argentina, Brazil, Paraguay, and Uruguay. Right now, it’s an assumption that BRICS currency will increase payment options and reduce the vulnerabilities, of currency fluctuation.

What other BRICS leaders think? South African officials said a BRICS currency was not there on their agenda. Building a BRICS currency would be a “tough political project”, South African central bank governor announced in July 2023. He said that for getting BRICS currency they will need a banking union, a fiscal union, to some extent they will need macroeconomic merging of the BRICS nations. A lot of disciplined mechanism will be required for the countries that fall out of line with it. Most importantly, they will need a common central bank, in which country could it be located? Trade imbalances cannot be ignored. All BRICS member countries have China as their main trading partner and little trade with each other.

The potential benefits of a BRICS currency include reducing dependence on the US dollar and increasing economic cooperation among member countries. The potential benefits of a BRICS currency include a dominance in international trade and a preference from 58% of countries.

BRICS leaders have said they want to use their national currencies more instead of the dollar, which strengthened sharply last year as the Federal Reserve raised interest rates and Russia invaded Ukraine, making dollar debt and many imports more expensive. Russia’s sanctions-imposed expulsion from global financial systems last year also fuelled speculation that non-western allies would shift away from the dollar.

Last year’s BRICS summit was a tricky assignment for Indian Prime Minister Narendra Modi, who aimed to tackle several thorny issues: balancing India’s ties with Russia and the West, managing BRICS expansion, and addressing border tensions with China. Modi tackled these issues plus some more upcoming bilateral trade problems gracefully.  

India has a strong voice in the BRICS and the UN, India spoke out against policies or actions that may harm the interests of any member. For example, India turned down China’s request to allow Pakistan, Sri Lanka, and Mexico to join the BRICS.

Coming back to the issue of BRICS currency: each of the BRICS countries supports the currency initiative for different reasons. Russia and China are at the forefront of the de-dollarisation move for their political interests. Russia is trying to avoid US sanctions by challenging the dollar-dominated financial system, while China is promoting the Renminbi (official currency of the People’s Republic of China) as an alternative. Since more than 17 percent of its reserves are in Renminbi, Russia has a greater preference for transacting in Renminbi. On the other hand, India, South Africa, and Brazil have their own pragmatic reasons for supporting the move. Reduced dollar dominance in international transactions will make it easier for these nations facing a dollar crunch to repay their debts owed to international organisations. A 2019 study by Global Business Review compared the regime-switching behaviour of the real exchange rates of the five BRICS nations before and after the group’s formation. It concluded that the inclusion of a stronger policy interaction in the region, especially in monetary management, shows the chance of a strong currency union amongst BRICS members.

From 1^st Jan 2024, Saudi Arabia, Iran, the United Arab Emirates, Ethiopia, and Egypt have announced to join BRICKS block. The expansion of BRICS will diminish South Africa’s significance even further because the two African states joining, Egypt and Ethiopia, are both more populous than South Africa and are experiencing higher rates of economic growth, though in much smaller economies.

More than 40 countries have expressed interest in joining, the question of whether BRICS would admit new members was finally answered during a recent group’s summit. Despite pre-summit reports of division over the potential expansion, leaders from the five-nation bloc announced that Saudi Arabia, Iran, Ethiopia, Egypt, Argentina, and the United Arab Emirates (UAE) would join the group starting in 2024. Argentina was invited to join but declined the invitation.

With the addition of these six countries, BRICS now represents 42 percent of the world’s population and 36 percent of global GDP. The primarily economic bloc was originally created as an alternative to the U.S.-led international order, with the goal of offering growing countries in the Global South a to counterbalance the Western institutions.

Conclusion

The potential impact of a new BRICS currency on the US dollar remains uncertain, experts are debating its potential to challenge the dollar’s dominance. However, if a new BRICS currency was to stabilize against the dollar, it could weaken the power of US sanctions, leading to a further decline in the dollar’s value.

Level 5” refers to the highest level in a hierarchy of executive capabilities that we identify with. Leaders at the other four levels in the hierarchy can produce high degrees of success but not enough to elevate companies from mediocrity to sustained excellence.

Jim Collins is an American researcher, author, speaker and consultant focused on the subject of business management and company sustainability and growth. Companies that seek an enduring presence in the marketplace require extraordinary individuals to lead the way. Executives and managers who capably drive organizational success, researcher Jim Collins calls them as “Level 5” leaders. They represent a unique combination of executive capabilities, something that allows them to ensure their organizations become the best at what they do.

Individuals who wish to become good leaders must work on developing these skills and characteristics to become a Level 5 Leader: develop humility, ask for help, take responsibility, develop discipline, find the right people and lead with passion.

Collins’s discovery is based on a hierarchy of capabilities and traits discovered during his study.

Level 1: Position

This is the lowest level of leadership, which is at the entry level. People who make it only to Level 1 may be bosses, but they are never leaders. They have subordinates, not team members. They rely on rules, regulations, policies, and organization charts to control their people.

Level 2: Permission

Making the shift from Position to Permission brings a person’s first real step into leadership. Leadership is about influencing, and when a leader learns to function on the permission level, everything changes. People do more than merely comply with orders. They actually start to follow. And they do so because they really want to. Why? Because the leader begins to influence people with relationship, not just position. When people feel liked, cared for, included, valued, and trusted, they begin to work together with their leader and each other. And that can change the entire working environment. The old saying is really true ‘people go along with leaders they get along with’.

Level 3: Production

Production qualifies and separates true leaders from people who merely occupy leadership positions. Good leaders always make things happen. They believe in results. They make a significant impact on an organization. Not only are they productive individually, but they also are able to help the team attain goals. No one can fake the Level 3. Either the leader is producing results for the organization and adding to its bottom line or is failing to do so. Some people never move up from Level 2 Permission to Level 3 Production. Why? They are incapable to produce results. When that is the case, it’s usually because they lack the self-discipline, work ethics, organization, or skills to be productive. However, if one desires to go to higher levels of leadership, he/she must simply learn to produce. There is no other way around it.

Level 4: People Development

Good leaders at Level 4 invest their time, energy, money, and thinking into growing others as leaders. How does this emphasis on people and people decisions translate into action? Leaders on the People Development level of leadership shift their focus from the production achieved by others to the development of their potential. And they put only 20 percent of their focus on their personal productivity while putting 80 percent of it on developing and leading others. This can be a difficult shift for highly productive people who are used to getting their hands dirty, but it’s a change that can revolutionize an organization and give it a much brighter future. Developing others to become leaders requires lot of patience and courage.

It is rare to reach Level 5. Not only is leadership at this level a finale of leading well on the other four levels, but it also requires both a high degree of skill and some amount of born leadership ability. It takes a lot to be able to develop other leaders; majority reach level 4; that’s what Level 5 leaders do. The individuals who reach Level 5 lead so well for so long that they create a legacy of theirs in the organization they serve.

Level 5: The Pinnacle

Pinnacle leaders stand out from everyone else. They are a cut above, and they seem to bring success with them wherever they go. Leadership at this high level lifts the entire organization and creates an environment that benefits everyone in it, contributing to the organizational success. Level 5 leaders often possess an influence that transcends the organization and the industry the leader works in.

Level 5 Leadership connotes Honesty and Integrity, Commitment and Passion, Decision Making and Accountability. Over and above, a level 5 leader must be good communicators, creative and innovative, who delegates and empower and are Inspiring leaders. On all these criteria, Indian Prime Minister Narendra Modi stands out. For him, national interest is the only interest. This image got widespread acceptability during his stint of 12 years as Gujarat CM. This stood out against the backdrop of policy paralysis, corruption and vacuum of leadership which country experienced during 2004-14. Therefore, people love him.

Elon Musk is a visionary, and truly believes in every business venture he puts his mind into.  Because he has such a strong vision, he isn’t afraid to face obstacles others might find impossible to overcome. Musk is known for tackling obstacles head on. The projects he’s been involved in tackle almost every major industry and global problem, from automotive, to telecommunications, to energy. He truly personifies the level 5 leader!

Environmental scanning is the monitoring, evaluating, and disseminating of information from the external and internal environment to key people within the corporation or organization. Business environment analysis is a regular business feature. It results in a quantity of information related to forces in the environment. It usually relates to events, trends, issues, natural calamities and expectations. ETOP analysis (environmental threat and opportunity profile) is the process of gathering information about events and their relationships within an organization’s internal and external environments. The basic purpose of environmental scanning is to help management determine the future direction of the organization. Structuring of environmental issues is necessary to make them meaning full for strategy formulation.

Understanding of management strategy or organization policy and effectiveness is not as easy; it requires looking at how company is griped with challenges, looking at the threats and opportunities and finding solutions for facing it. It requires proper evaluation on the position of an organization, whether the adopted strategy is working well and if not why and how should it progress ahead. Strategies are means of operationally signing a policy for goals and objective. For company to function very well and to be productive to its maximum standard effective strategy should not be impeded.  Sometimes very micro and neglected issues mar the strategy.

ETOP involves dividing the environment into different sectors. Each sectors can be subdivided into sub sectors. For example oil & gas  sector can be broken down into sub-sectors such as exploration & production, integrated oil & gas, oil equipment & services, pipelines, renewable energy equipment, alternative fuels producers, oil equipment, services & distribution, alternative energy etc. ETOP further analyzes the impact of each sector and sub-sector on the organization. For example, GE Oil & Gas as an existing organization in this sector requires to scan the environment from an industry perspective: O&NG industry is divided into three major sectors – upstream, midstream and downstream. The upstream sector is a term commonly used to refer to exploration, recovery and production of O&NG. In industry jargon it is simply called Exploration and Production (E&P). The downstream sector is a term commonly used to refer to the refining of crude oil and the selling and distribution of natural gas and products derived from crude oil. The midstream industry processes, stores, markets and transports commodities such as crude oil, natural gas, natural gas liquids (liquefied natural gas such as ethane, propane and butane) and Sulphur.

An organization’s internal environment consists of the elements within the organization, including current employees, management, the organization’s culture which is defined by operating procedures and employee behavior. Though some elements affect the organization as a whole, others affect only the management. A manager’s philosophical or leadership style directly impacts employees. Traditional managers give explicit instructions to employees, while progressive managers empower employees to make many of their own decisions. Changes in philosophy and leadership style are under the control of the manager. Unlike the external environment of a business, the internal environment can be controlled. It is important to recognize potential opportunities and threats outside company operations. However, managing the strengths of internal operations is the key to business success. Leadership matters a lot in controlling the internal environment.

The external environment of an organization are those factors outside the company that affect the company’s ability to function. Some external elements can be manipulated by company marketing, while others require the organization to make adjustments. Organizations need to monitor the basic components of a firm’s external environment, and keep a close watch on it at all times. The external environment consists of customers, government, economy and competition.

Managing image of an organization is most important in the external environment. Corporate image, or reputation, describes the manner in which a company, its activities, and its products or services are perceived by outsiders. In a competitive business climate, many businesses actively work to create and communicate a positive image to their customers, shareholders, the financial community, and the general public. A company that bungles or ignores its image is likely to encounter a variety of problems. Once an organization gets into reputation problems, it goes on growing like weeds in a garden.

Opportunities and Threats: External opportunities provide an organization with a means to improve its performance and competitive advantage in a market environment. Some opportunities can be foreseen, such as being able to expand a franchise into a new city. When organizations can think far ahead, they can create some opportunities

External threats are anything in the outside environment that can adversely affect its performance or achievement of its goals. Ironically, stronger organizations can be exposed to a greater level of threats than weaker organizations, because success raises envy and competition which a successful organization needs to fight to get ahead. Examples of external threats include new and existing regulations, new and existing competitors, new technologies that may make products or services obsolete, unstable political and legal systems in foreign markets and economic downturns. When organizations are alert and have enough resource they can turn a threat into an opportunity, such as a new technology that may displace one of the key products but also provides an opportunity for new product development.

For GE Oil & Gas the opportunities are:

• According to figures released by America’s Cambridge Energy Research Associates, India is home to around 64 trillion cubic feet of unexplored gas at various locations. This gas can be extracted, and supplied into houses and production units to trigger country’s growth.
• Demand for oil and gas in India will keep on increasing due to country’s rising energy needs.
• Oil and gas majors like Cairn, ONGC and Reliance have lined up plans for huge investments in-order to increase oil and gas production in the country, which has fuelled the growth.
• GE oil & gas can grow from within by focusing on niche products and markets where its larger rivals aren’t a factor.
• GE specializes in growth areas such as drilling equipment and compressors.
• GE is cash rich company. It aspires to continue to develop technology overlaps between the businesses it has.
• Narendra Modi government is planning to set up several power plants. It is considering setting up gas based power generation projects in states like- Madhya Pradesh, Odisha and Uttar Pradesh. While it plans to set up thermal power plants in states like Andhra Pradesh, Chhattisgarh, West Bengal, Jharkhand and Bihar which produce coal, this is indeed good news.

 For GE Oil & Gas the threats are:

• The environmental pressure and market demand that oil companies experience today force them to explore new industries, i.e. renewables.
• State owned oil and gas companies like ONGC and Oil India limited are market leaders in the country. However, they are facing tough competition in oil exploration and production from private players like Reliance, Essar, Adani, etc.
• Analysts are doubtful GE Oil & Gas can achieve enough weight without acquisitions to be a major player in the industry.
• GE Oil & Gas needs to get bigger and develop a clearer strategy if it hopes to keep up with its larger competitors.
• The Oil & Gas sector need to emphasize on R&D. India is weak in it.
• Currently, Dehradun based University of Petroleum and Energy Studies is considered as the only private University which offers PHD, post graduate and undergraduate courses in energy and petroleum. This University aims to create professionals who can serve India’s rapidly growing oil and gas Industry.

This is how ETOP analysis provides clarity of which sector and sub sectors have favorable impact on the organization. It helps interpret the result of environment analysis due to which an organization can assess its competitive position.

India is an agricultural country. The land is best suited for agriculture because of its fertility and the climatic conditions. Agriculture is the backbone of Indian economy. The growth in the agricultural sector has made a large impact on generating revenue from the rest of the world. However, storage has always been a big problem; the gap between the produce and storage is simply too wide. Quality production and enhancing storage capacity are all long-term goals of the nation. The solution in storage will reduce the wastage of grains and vegetables.

When each year some state in the country fears drought on one hand, on the other hand, Food Corporation of India loses tonnes of grains brazenly. It is reported that the country lost more than 40,000 tonnes in past two years due to natural calamities like cyclone and floods, experts say it is also an indication of poor storage facilities, pilferage and transit loss.

Food and food grain worth nearly Rs.50,000 crores is lost every year. More specifically, nearly 30% of the country’s fruits and vegetables are lost due to lack of cold-storage facilities, and more than 30% of grains supplied through the public distribution system are lost because of storage constraints. As much as 1, 94,502 metric tonnes of food grain worth crores of rupees are wasted in India due to various reasons. The Food Corporation of India (FCI) has given this information in reply to an RTI query sought by an activist Mr. Om Prakash Sharma. This happens because of lack of proper cold stores and corrupt middlemen, who are also responsible for increasing the prices of vegetables, hoarding and lack of government spirit to bring in scientific systems.

The inadequacy of government operated storage is often cited in the media as a major cause of food waste in the country. The Food Corporation of India has little modern storage such as grain silos, and instead maintains its stock of grains in outdoor depots scattered throughout the country. The government-run grain storage compounds are pathetic; warehouses are 20 foot stacks of 50kg burlap sacks sitting in parking lots and covered with plastic tarps to keep out the rain. This is a common scene in Punjab, Haryana, Andhra Pradesh and many other states. Most facilities are open air and offer no protection from humidity, birds or pests. In many cases, the tarps don’t even fully cover the grain, which rotten the grain depots after being hit by an unexpected rainstorm.

Experts estimate that as much as 20% of the grain stored in these conditions goes to waste. The absolute wastage is worst in recent years when free market prices collapse and the government is forced to buy excess supply at the minimum support price.

The entire food chain requires modernization and the production is expected to be doubled in the coming 10 years. Apart from domestic demand, this industry brings in huge export prospects. At present agri-business may involve either an input or a product or service which encompasses items such as Productive resources (feed, seed, fertilizer, equipment, energy, pesticides, machinery, etc.), agricultural commodities (raw and processed commodities of food and fiber) and facilitative services (credit, insurance, marketing, storage, processing, transportation, packing, distribution, consultancy, soil testing etc.).

Most of the agricultural infrastructure can be built on public-private partnership model to improve storage facilities is a promising solution, and additional deals are in the works. Infrastructure investments would include distribution, quality control, manufacturing, food processing, quality control, storage and warehousing, logistics, packaging and many more.

The main objectives of the Agricultural Infrastructure Development Project are to 1) develop land and water resources for the purposes of increasing farmers’ incomes and protecting the environment through land terracing and harvesting of runoff water in small hill ponds 2) increase access to and from isolated rural areas through the construction of agricultural roads and 3) strengthen the institutional and implementation capabilities of the Green Plan and the Directorate of Studies and Coordination within the Ministry of Agriculture by upgrading their human and material capabilities, financing the conduct of a National Agricultural Census and establishing an Information Management System to provide the data necessary for strategy and policy formulation.

In the private sector agriculture infrastructure companies are the in thing that aims at addressing the needs of the farming communities for farm services and agricultural infrastructure. These companies offer collateral management, grading facility to farmers who can get 15-25 per cent value addition on their crops. There is a huge opportunity in this sector. Farmers need both front-end and back-end infrastructural facilities.

The post-harvest ecosystem is very diverse, and hence has several players like SLCM (Sohanlal Commodity Management Pvt Ltd), Star Agri-warehousing and Collateral Management, Origo India which is a complete post-harvest management services for agricultural commodities, and Gramco Infratech Pvt. Ltd which is an answer to the farmers needs for modern and efficient agriculture. These and many other companies have created a platform and network of infrastructure for framers. More players are entering the market and attracting investors to pump in capital in the under-developed agricultural storage and cold chain industry in India that is hyped as the next big thing and expected to contribute to long-term gains as retail demand and consumption pick up in smaller cities and towns across the country.

The government of India has legislated 100% Foreign Direct Investment in the agricultural sector. This has given a huge boost because investors from foreign countries are provided with a direct route for investing in agricultural warehousing, which would also include investing on cold storage. Similarly, 100% FDI also offers an automatic route for foreign companies who specialize in the development of seeds and other agricultural produce.

The Department of Agriculture and Cooperation is mainly responsible for foreseeing the optimized utilization of soil, water, land, and other natural resources related to agriculture. The department is headed by the Ministry of Agriculture, and is responsible for initiating policies and programs to push growth in the agriculture industry of India.

Currently, there is indeed a dearth of warehouses in India, especially in the agriculture sector. For a country which is primarily an agrarian economy, there is immense potential in the agri-logistics and cold chain industry. In fact, seeing this, risk capital investors such as private equity and venture capital funds are betting big on the business opportunity that the sector has to offer in the long run. There is a significant investor interest in niche segments like cold chain, agri-logistics, and warehousing within the logistics sector. However, there’s need for integrated infrastructure and agri policies, which could lead to more warehouses in the country.

The good news is that there are quite a few private equity (PE) deals in advanced stages of discussion. For instance, ColdEX Logistics, a cold chain company that provides support and distribution services to well-known international brands including Burger King and Starbucks, is expanding its operations. Investments are pouring in this sector. Since 2012, PE investors have infused around $275 million in the sector, according to research firm Venture Intelligence. Recently, Canadian investment giant Fairfax invested $126 million in National Collateral Management Services, a private-sector agricultural commodities Storage Company headquartered in Gurgaon.

Indian cold chain industry is growing annually at 28% the total value of cold chain industry in India is expected to reach USD 13 billion by 2017 through increased investments, modernization of existing facilities, and establishment of new ventures via private and government partnerships. India’s cold chain industry is still evolving. The Indian cold chain market is highly fragmented with more than 3,500 companies in the whole value system. It has tremendous scope because 11% of world’s total vegetables production is accounted by India. 127 Million Tonnes of milk was produced in 2011- 12, but cold storage capacity is only available for 70,000-80,000 Tonnes of milk. Fish production is wasted to a big extent due to lack of cold storage.

There is a big scope for new ventures in Indian agri-business and it has a promising future.

In his maiden speech on 27^th September 2014, at 69^th United Nations General Assembly (UNGA) India’s new Prime Minister Narendra Modi advocated unity among various nations in the world; he advocated “G-All” grouping (group of all nations in the world), rather than participating in smaller fractional groups like the “G 8”.   Mr. Modi solicited the gatherings that in spite of existence of a body like United Nations why nations are operating in various Gs with different numbers?  Every Government will have to discharge their responsibilities for development of the world, which calls for better coordination of policies and understandings. Mr.Modi spoke astutely in the gathering and was applauded by the audience. The gathering went euphoric after his speech.

Talking about the fact that the UN is completing 70 years in 2015, the Indian Prime Minister Mr. Modi said, “We need to think how to create a G-all atmosphere when the UN is about to celebrate its 70 years next year.”

Though in the past, nations could afford to exist in isolation, today it is simply impossible for any nation to do so. The world has changed; the nations are interdependent on each other. The earlier we realize this fact the better. Each nation should realize that it is sharing the planet with others. As nations are progressing in research and development in science and technology, societies are getting unified. Another fact is no nation in the world can exist without bilateral trade; therefore, whatever happens in a nation eventually affects many others. Within the context of our interdependence, isn’t it high time that our self-interest clearly lies in considering the interest of others?

The world is getting highly complex because of the brewing politics between the mightier and smaller – less developed nations. No single nation can call the shorts. At least for the sake of   international trade, nations have to consider each other’s concerns and interests. Mr. Modi offered crisp comments on ethical base of sovereignty of nations. He said there are many pragmatic issues beyond profit and loss. “Let us pledge that 2015 will mark the year when we steer the world in a new direction. Let us work towards a sustainable world,” Mr. Modi said. He solicited a promise to reform UN Security Council by 2015.

The need of the hour is to counter terrorism which is emerging in new forms and names every day. No nation is free of terrorism. And, there are some nations that are giving protection to the terrorists. State terrorism, Bioterrorism, Cyber terrorism, Eco Terrorism, Nuclear Terrorism and Narco Terrorism are challenging law makers, law enforcing authorities and political systems to distinguish different types of terrorism as part of the larger effort to understand how to counter and dissuade it.  All countries need to unite to fight terrorism. The shadow of terrorism must end. A comprehensive Convention on International Terrorism is urgently required.

On the issue of Kashmir, when Pakistan Prime Minister Nawaz Sharif spoke at length, Mr. Modi crisply made it clear to the world that the neighboring country of India needs to create an atmosphere for peaceful talks without the shadow of terrorism.  Pakistan must accept its responsibility of creating conducive atmosphere for the serious discussion. From the first day, NDA government has worked towards promoting friendship and cooperation with its neighbors, and it is keen on resolving Kasmir problem.

Every nation has its own culture and tradition in its foundation of civilization. Mr. Modi said India sees the entire world as a family; it cares for the prosperity of the world. Indian culture believes in brotherhood. Mr. Modi has paved way for world bodies like UN to ponder on restructuring sovereign rights and responsibilities of nations in an interdependent world; a serious thought needs to comprehend on how certain rights stand in the way of achieving important international objectives.

Fragile elements and cyclical alterations are tightly linked to the interdependence of world. I conclude my review of Mr. Modi’s brilliant speech at UNGA on the point of interdependence of world by giving three examples. In 1986, a chemical fire and spill in Basel, Switzerland poisoned 185 miles of the Rhine River; this incident damaged ten years of ecological recuperative work because it threatened public water supplies. The long-term consequences are a matter of debate even today.

In 2007 the subprime crisis in United States led global financial markets to topple since in August 2007; the sensex in almost all major countries fell down with a hefty loss. The American Stock Exchange lost 645 points at 14,936. The NSE Nifty ended at 4,346, down 183 points. Elsewhere in Asia, Hong Kong’s Hang Seng Index slumped 730 points to 22,455. Japan’s Nikkei plunged 378 points to 16,871. Taiwan’s Taiwan Weighted index crashed 395 points to 8892, and China’s Shanghai Composite index shed 170 points at 4,301. The world economy even today is suffering from this global financial and economic crisis that has become severe since the second half of 2008. Europe was the next affected, thereafter its effect spread to the rest of the world. East Asia did not escape. The depth and speed of the worst crisis is worldwide through the financial sector and trade linkages, and its severity has affected the recession particularly in emerging market economics, small countries, and East Asia.

In another episode, a nuclear reactor explosion at Chernobyl produced measurable increases in radiation in far distant places. In the immediate expanse of the reactor, agricultural fields were contaminated. In a number of European countries, crops were contaminated and preventive measures were initiated. The long-term consequences of this case are also a matter of debate and speculation. But the veracity of the convergence and interdependence of world economy can no longer be ignored.

The proverb “United we stand, divided we fall” is so true!!

Modinomics will boost growth 

The book Modinomics – Inclusive Economics, Inclusive Governance authored by Sameer Kocchar talks about Narendra Modi’s thought process and his idealism on the Indian Economy. Mr. Modi feels that neither Soviet style socialist path nor free-market western capitalist economy is going to work for India. He is of the view that the country must have a unique blend of its own socio-economic policies that would leverage India’s unique strengths and propel it further to centre-state economy. Modi also feels that India’s unique strengths – its diverse demography, geography, and natural resources are not utilized so far. Modinomics is about inclusive economics and inclusive governance. The book highlights the uniqueness of the brand Narendra Modi – who is very Swadeshi at heart, while also globalist and pragmatist. He is bureaucratic, always thinks big, while he pays attention to details. A Gujarati to the core and believes in India first.

The book talks about Modi’s rise which has overlapped with the UPA II Government’s downfall due to the economic slowdown. Modi’s intelligence and pragmatism helped him captured the political and economic mind space left vacant by the UPA. Modi’s Gujrat model has stood tall on two things one is his is personal vision and ambition for the state and second is his ability to get the best out of the bureaucracy by delegating it authority and responsibility. Modi’s hawk- eyed administration kept the state administration tick round the clock. His astute communication allowed him to rise; he is blessed with oratory skills. He used social media to the fullest by subtle messaging and a natural wit. He is the most followed leader on social media and his website is interactive. Kocchar has written the book precisely in a chronological order.

Modi’s charisma got the Bharatiya Janata Party (BJP) and its allies the whooping 336 seats in the 2014 Loksabha election. No sooner he came to power, he sent a loud message to corporate houses and investors—both nationally and internationally, that India is open for business again. His mantra “maximum governance, minimum government” says a lot about his liberalization instinct and opening of the economy further by reducing hindrance. He is well aware of the left centered intellectual mainstream in the nation; which will initially create some roadblocks for him to push forward major economic reforms. Modinomics centers on lower government debt, more privatization and greater openness to foreign investors.

India’s economy is stumbling under high inflation and the worst slowdown since free-market reforms in the early 1990s, and the budget is the first major test of Mr Modi’s reformist credentials since he swept to power in May with a pledge to boost growth and create millions of new jobs. In its first ever budget, the new government has promised a new era of fiscal prudence and greater opportunities for foreign investors in key sectors of the economy, what is worth praises is defense is given priority which was overdue. To ensure that the military, which has repeatedly used warned of outdated and inadequate equipment, has its way on the modernization drive, the government has budgeted Rs. 94,588 crores, Rs. 5000 crore more than what was sanctioned by the previous government in February in the interim budget this year. Overall defense spending has gone up by Rs. 26,000 crores.

The budget promotes skilling and vocational training among youth and to make them job-ready. The stress is laid on rural entrepreneurship; to encourage rural youth to start their own ventures, Finance Minister. Jaitley has announced a spending of Rs 100 crore to start village entrepreneurship training schemes. Recognizing the importance of stepping up vocational trainings and bringing it at par with the higher education system, he has announced the ‘Skill India’ programme and allocated an amount of Rs 14,389 crore for job creation, a huge part of which will hopefully be spent in training the youth.

The Finance Minister has also proposed setting up of five new Indian Institutes of Technology (IITs) and five Indian Institutes of Management (IIMs) across the country at a cost of Rs 500 crore, this shows the new government’s inclination and keenness to accelerate the skills of youth, education is given priority. For the farmers, the budget has announced a slew of much-awaited measures. Focus on increasing irrigation facilities, farm markets, financial help to landless farmers and Kisan TV to provide real time information to farmers would help in increasing productivity of the farm sector. Moreover, Haryana, Jharkhand will have research centers in Horticulture, Agriculture and Maharashtra will get agri-biotech clusters.

The budget is has tried to touch the aspirations of all sections of society. Landless farmers will be given cheaper credit, the rural poor have been promised broadband, cheaper TVs and better roads, Dalit-focused schemes have been allocated more money, the middle class have been given tax breaks and India’s holiest river will get funds for a clean-up.

To give a stimulus to the infrastructure and manufacturing sector, a 10-year tax holiday for undertakings that generate and transmit power has been unveiled. Focus on industrial infrastructure such as a plan to establish seven industrial cities in India would enhance industrialization and create employment opportunities in the economy. The allocation for urban infrastructure earmarked at Rs 50,000 crore is really appreciable and this would expedite the pace and urbanization in the country and give a massive boost to growth and expand the national economy much faster.

The boost to Real Estate Investment Trusts (REITS) and Infrastructure Investment Trusts is very encouraging news for the real estate and infrastructure markets as it offers innovative and modern tools of investment to Indians. These are all important signals. Investment allowance of 15% to the manufacturing companies investing Rs 25 crore in plant and machinery would accelerate capital investments and propel manufacturing growth.

Steps are undertaken to revive SEZs would help to rejuvenate the investment cycle. Similarly, facilitation to manufacturing units to sell their products through retail and e-commerce would reduce the selling cost and benefit both manufacturers and consumers. Furthermore, it is also a taxpayer-friendly budget as the income-tax exemption limit has been raised by Rs 50,000 to Rs 2,50,000, the PPF ceiling to Rs 1,50,000, housing loan rebate to Rs 2,00,000, investments under 80C to Rs 1,50,00. In view of this, through appropriate tax planning those drawing a salary up to Rs 6,00,000 can bring down their tax liability to nil.

Taking into account the fact that our Finance Minister got only 45 days’ time to prioritize his priorities and for drawing up the budget for 2014-15, he has done an excellent job because this budget is undoubtedly very progressive, astute and realistic. Modi has consolidated ministries and scrapped cabinet panels to streamline administration and speed decisions. Finance Minister, Jaitley has been honest about not being interested in “mindless populism” in burdening public finances.

I personally think Modinomics is put into practice in the Union Budget – 2014 in inclusive economics and inclusive governance.

I receive a message on WhatsApp “ever heard of a business, which is a monopoly, has a 100 crore customer base, 100% sales (advance payment), capacity utilization 100% but still making a loss…….” The answer to this question is obviously Indian Railways.  It is the second most contributing source to Indian economy, after Agriculture. Indian railway is called veins of India, which runs through almost all parts of the country, from East to West and North to South.

Some fact about Indian Railways: being the world’s fourth largest railway network, its operation spans nearly 170 years since 1843. Has an annual revenue base of Rs. 1,06,000 crore ($19 billion). Ranks as largest employer after the US defense department, the Chinese army, Wal-Mart, China National Petroleum, State Grid of China and British health services; it’s the 7^th largest employer in the world. It runs as many as 19,000 trains every day. Out of which some 12,000 trains are for passengers and 7,000 for freight.   Its network comprises of 7,083 stations. It operates the fourth largest railroad network in the world over 63,974 route-km. It ferries a cargo of over 1 billion tons annually. It transports 2.65 million tons of freight each day.

The new Railway minister in Narendra Modi regime, D V Sadananda Gowda seems to have captured the dilemma of railways stuck with many unfinished projects that were started mainly to earn political brownie points, numerous technical deficits, oversized employee burden, and some wrong decisions which erstwhile ministers have taken and cannot be overlooked any further. And, to add to his problems, he has to decide if passenger and freight fares will be increased soon as the organization faces a resource crunch. Gowda has to risk the unpopular decisions now as any further delay will only hinder the economy of the nation. A poorly managed railway has proved a drag on the economy.

Though Indian Railways carry largest number of passengers and freight, they stand much behind in efficiency, punctuality, cleanliness and services. China’s freight rates are just 58% of India’s and that makes it tough for Indian industry to successfully compete and create jobs at home. Chinese Railways, as we know, is four times more efficient than our railway both in terms of number of passengers carried per employee and freight carried per employee. Most Railways in the world run their trains on time but Indian Railways yet to improve its punctuality whereas they have time schedule for every train.

Some of the glaring facts about the problems faced by the railways are as follows:

The present railway network is overloaded and is inadequate to meet the requirements of the nation. The developing economy of the nation needs quickness and efficiency in the network. Due to rough geographical conditions of the nation, some regions are beyond the reach of railways. These areas need to be opened for removing regional disparity in economic growth. Now this situation needs some serious thinking and tons of money. The Indian railway is overburdened with surplus staff on its regular pay roles. The huge salary and wages bill is eating away railway’s monitory resource which is beyond repair. Is there a remedy to the unwillingness and rigidity of the politician’s motives? In short, the under-productive governance is hampering roads to development. Isn’t this mockery of impotent democracy?

Indian Railways owes huge outstanding payments to diesel and electric power supply companies. Where would the money come from to settle the huge bills? Despite the age and condition of much of the national train network and roads systems, they continue to defy logical explanation by poorly servicing the rapidly increasing population. The State Electricity Boards and NTPC increase the tariffs randomly and thus adding to the burden of railways. Most of the equipment used by the railways are now obsolete and need immediate replacements. The numbers of tenders you see in the newspapers for purchases are callously treated, and nepotism prevails to an unexplainable extent. The numbers of corruption cases, accusations, charges and court cases everything goes on adding to the snail’s speed in decision-making. There is mounting deficit due to non increase in fares and tariffs by the Government. The UPA government disallowed it due to obvious political reasons.

Another fact is that railway’s bulk carriage is facing stiff competition from road transport and thus its share in passenger and goods traffic is declining.

Rapid increase in train accidents raises serious doubts in the public mind about safety of Rail travel and the general health of the railway network. There are several factors which are responsible for increasing number of railway accidents; some reasons are the over-aged tracks, wagons, coaches, bridges and signaling system. According to the Khanna Railways Safety Review Committee Report which was set up in 1998 under Chairmanship of Justice H.R.Khanna, states that nearly 25 per cent of the total railway tracks in India are over-aged and are due for replacement. The tracks suffer from fatigue and wear and tear in due course of time. Their replacement should be carried on side by side. In several derailments poor condition of tracks had been found responsible.

Indian Railways has 34,000 over-aged wagons, 1,322 over-aged coaches, and 1,560 stations with over-aged signaling. Moreover, 262 bridges are listed “disastrous”. The white paper released by the Railway in April, 2003 acknowledges that over 51,000 bridges are of 19th century vintage bridges, which may collapse any time and 56,178 are more than 80 years old.  44.17 per cent of the bridges have outlived their life. According to the review conducted by the Comptroller General of India on various aspects of bridge management between 1997-98 to 2011-02 these old bridges include 339 important, 4,210 major and 51,629 minor bridges built before 1920.

The Khanna Committee had further reported that 76 per cent of all rail accidents are due to derailments, 7 per cent due to collisions, 16 per cent take place at level crossings and 1 per cent is due to fires. Resource crunch is said to be the main cause of all these happenings in the Indian Railways.

If we want to see some positive changes in the scene, we have to accept the hike in fares and freight charges that are implemented after a long time; says Chandrajit Banerjee, Director General of the Confederation of Indian Industry (CII). This will help in resource mobilization. The Confederation of Indian Industries (CII) hopes that the higher fares will lead to better quality and safety of services offered by the Indian Railways. Meanwhile, CII says resources can also be mobilized from inviting multilateral funding agencies to participate in railway projects, better utilization of railway land and creation of a Rail Asset Leasing Authority. However, we all should understand that the freight fare hike as “inevitable.” Railway officials say that the fare hike decision still falls short of the Railways’ requirement. To effectively target under-recoveries, fares should have been raised by almost 50 per cent.

The CII has urged the Government to accord top priority to foreign direct investment (FDI) in Railways. This decision might be taken within next few days. The FDI will enhance safety, security, increasing average speed, punctuality, quality and efficiency. The FDI will allow the Diamond Quadrilateral Project in high speed trains and networking freight corridors. The FDI will also boost supporting industries such as original equipment manufacturers, drills, crushers, screens, earthmovers, and other materials.

It will also help the long awaited project of 235 km railway line to tap Chhattisgarh’s iron ore reserves which is the 2^nd largest in the world. This project was proposed by SAIL along with NMDC in 1983.  Further it will enable clearance for the 2^nd stage railway line between Dallirajhara and Jagdalpur in Bastar District. Imagine what kind of immense facelift it will give to the undernourished, backward Bastar. There is also a proposal to allow foreign investment in sub-urban corridors and freight lines connecting ports, mines and power installations. However, existing passenger and freight network operations will not be opened to foreign investors, a decision has been taken.

People of India don’t want few changes here and there, but a comprehensive change which would take the Railways of this country to match the best in the world. The focus of the Narendra Modi-led government calls for capable governance and building up a strong nation through fast-track development in the areas of agriculture, infrastructure creation, employment generation and economic up-lifting of our people. I know saying all this is easy for us but doing it and implementing some harsh measures is difficult, such as the railway fare hike from this Friday. Some tough decisions may not go down well with some sections of society.

We don’t need committees after committees to report inadequacies in the system, we need actions in solutions. We’ve had enough dilemmas – rounds of discussions, arguments, pros and cons on decisions, policy paralysis, pulling legs of each other between the ruling government and the opposition. Enough is enough; we need drastic improvements in the state-run, monopoly railway system. It runs through veins of the nation and indeed is the lifeline for all sorts of support system.

Bhutan as a nation has always preserved its isolation from rest of the world.  This 39,000 square meter nation with approximately 7,00,000 population cozily exists between Asia’s two giants – India and China. Bhutan not only withstood numerous attempts to be conquered by the Tibetans and Mongols, but also managed to evade colonization and the resultant incorporation into the British Raj, despite two wars against the British. Under the Treaty of Punakha in 1910, Britain guaranteed Bhutan’s independence, and approved Bhutanese Royal Government an increased stipend. The Treaty allowed control of Bhutanese Foreign Relations and defense to Britain. Bhutan has always stayed out of international organizations and has maintained few bilateral trades.

Bhutan was one of the first nations to recognize India’s independence in 1947 and both nations have fostered close relations. The tie between these two countries is augmented further during 1950’s annexation of Tibet by People’s Republic of China and its border dispute with both India and Bhutan. India strengthened its ties with both Nepal and Bhutan as its “Himalayan Frontier” security policy. India shares 605 kilometers (376 mi) border with Bhutan and is its largest trading partner. Bhutan’s smooth transition from political monarchy to a successful democracy is commendable. The credit of course goes to Bhutan’s royal family for ushering in democracy.

After the 1960 government ban on trade with Tibet, Bhutan’s external sector became almost totally oriented toward trade with India. With the completion in 2002 of the second hydroelectric power project financed by India—built largely with Indian migrant labor and designed to deliver the majority of its power outputs to India—India’s dominance in terms of exports has remained over 90%. Import sources, however, have become increasingly diversified.

On his first ever visit to Bhutan for 2 days on 16^th June 2014; Indian Prime Minister Narendra Modi assured cooperation between the two countries related to their mutual security. Both Prime Ministers agreed to continue with their close coordination and cooperation with each other on issues relating to their national interests, and not allowing each other’s territory to be used for interests unfavorable to each other. This was PM’s first foreign trip after assuming office. I think his quick decision making ability and his no nonsense approach in taking executive decisions and assuring quick implementation of policies need salutation from all of us. Security and defense are priority of his governance.

The main objective of the visit was to flush out Northeastern insurgents from the Bhutanese territory. On the eve of Modi’s visit, Bhutan’s PM said this was a chance to celebrate the ties between the two countries and added, “We have to further strengthen this friendship.” Bhutan’s PM Tobgay assured that his county was very serious against terror camps. The nation has dismantled all terrorist outfits or camps. Since then none have entered Bhutan. The Bhutanese PM assured that his territory will never be used in any way against security interests of India. Prime Minister Narendra Modi emphasized having a good neighbor is important for a country’s happiness and in its absence a nation cannot live in peace despite prosperity. He made the remarks while reminding Bhutan that one of the factors responsible for its happiness was having a good neighbor like India!!

Analysis paralysis

The phrase describes a situation where the opportunity cost for making a decision exceeds the benefits that could be gained. In other words, the sheer qualitative and quantitative analysis of decision making is purposely made complicated that it overwhelms the decision maker thus preventing him/her from taking a decision. In Organizational Behavior it is regarded as a dysfunctional behavior.

The BJP released its manifesto in April 2014, prior to the Loksabha Elections, focusing on improving the country’s economy and infrastructure, ending policy paralysis and curbing corruption.

A classic case of policy paralysis is during the tenure of UPS Government in September 2012, the bill of Foreign Direct Investment (FDI) in multi-brand retail was tabled – in this case Carrefour, a 76-billion-euro retail giant which was then interested in setting its India operations, now has reportedly decided to draw curtains on its plans on account of lack of clarity on the future of FDI policy in multi-brand retail in India. How ugly Parliament proceedings can become? Different opposing political parties ran amok disrupting parliamentary proceedings. Well, everyone gets chance to opine his/her decision in parliamentary democracy, everyone gets a chance to shoot questions, yell, disrupt the speaker, and incongruously in this case the crossfire was untidy. I am yet to understand what political dogmas are all about? What resulted subsequently was advancement in retail.

 The $170 billion, crude oil and petroleum products constitute 35% of our import bill. It has been common knowledge that with disturbances persisting in central and west Asia international prices of crude oil are sky-rocketing. The region has been in turmoil for many years now but the Indian government did not take any proactive measures. In the absence of sufficient oil reserves, the government should be looking at alternative sources of energy. This is a case of worrying policy paralysis since past decade.  The crude oil prices have gone up in international market and India has to import crude to meet its fuel needs. But, the burden on common man can be reduced by correctly adjusting import duty and excise duty. It is a fact that this crisis has been aggravated by the government’s failure to ramp up domestic production. What kind of progress can we expect for fuelling the economy?

The Indian rupee has been experiencing a sliding fall in the last couple of years; the government continuously kept assuring the markets that it was only a deviation but the reality is different. And this is not a recent phenomenon. It touched a record low near 69 to a dollar in August 2013, and the government did not just fail to take proactive measures but also failed to react appropriately to tackle the crisis. The external factors did contribute to the currency crisis. They were just additions to the internal problems which the government failed to recognize and eliminate.  Domestic factors such as food inflation, continuous petrol price hikes, and deranged policies of the government made the investors (both domestic and foreign) insecure of the situation, they then started selling off the rupee. We witnessed so many foreign institutional investors (FIIs) pulling their funds out, and some good domestic businesses at once decided to flock to foreign countries in search of better business opportunities. This reverse flow of capital out of the country resulted because of two reasons — corruption and deficit in governance.

Gold is another commodity that has led to the ballooning of our import bill. We are the largest consumer pocket of gold and even with 17 gold mine fields in the country; gold is our second largest imported commodity. We as a nation are ‘Gold Obsessed’. This yet again highlights the policy paralysis and lack of foresight of the government which has failed to think of innovative ways to explore domestic gold. And instead, all it does is increase the import duty on the commodity.

In an ideal world, good governance rarely faces policy paralysis. Procrastinating decisions on flimsy grounds, adjournment of decisions to please some one, too many clauses and sub clauses, heaps of statistical data for analysis, appointing committees and sub committees (too many heads), and hidden agendas create only disruption in decision making; thus, paralyzing policies. It is an abuse to our progress.

Some progressive nations in the world are eliminating age-old customs and functions in parliaments. Canada is looking at including elements of proportional representation for parliamentary constituencies; it potentially illustrates every seat competitive. The British parliament introduced one day a week for general debates, with no voting required. It also empowers various committees to offer policy advice, produce reports or alter legislation. MPs discuss and debate without overriding background noise and un-parliamentary language is not permissible. Now that’s really bringing grace to the parliament.

Public committees have been empowered to take decisions with provisions for oral and written evidences on most government bills. Thus improving public participation and reinforce parliamentary scrutiny. These governments take briefings by outside organizations and experts before passing bills. These and some more moves are created to establish permanent expert legislation committees which would provide practical experience in shaping a bright future.

Back home, If the government plays it role of ensuring favorable environment for smooth operation of the market economy and serve the interests of citizens by protecting them from the worst extremes of the market – this without paralyzing polices every now and then we the people of this nation will say “achchhe din aaye hai”.

A zero-tolerance policy imposes automatic punishment for violating of a stated rule, with the intention of eliminating undesirable conduct in a society. Zero-tolerance policies forbid persons in positions of authority from exercising discretion or changing punishments to fit the circumstances subjectively; they are required to impose a pre-determined punishment regardless of individual culpability, justifying circumstances, or history. This pre-determined punishment need not be severe, but it is always meted out.

Zero-tolerance policies are studied in criminology and are common in formal and informal policing systems around the world. The policies also appear in informal situations where there may be sexual harassment or Internet misuse in educational and workplace environments.

Today when Asia’s third-largest economy is now in its longest slump for a quarter century, and has to face too many odds due to lethargic decision making culture, I think zero tolerance is the need of hour. Well, the new Narendra Modi Government’s pledge of zero-tolerance for violence against women, and requisite steps to strengthen the criminal justice system for its effective implementation is applauded.

India seems to have been plagued in the recent past with loads of  horrifying incidents such as sexual assault and molestation; frequent news of gang rapes are a shame on our law and order. Women in this country are shaken to the core. Let’s stop making baseless arguments regarding our culture and ethos.  Another issue regarding the size and diversity of our country is being dragged a bit too much.

Violence against women comes in variety of forms such as domestic violence, dowry deaths, acid attacks, honor killings, rape, abduction, and cruelty by husbands and in-laws. One of the key challenges is the dowry practice; the bride’s family giving gifts of cash and kind to the groom and his family. Many times the groom’s family ill-treats the bride if such demands are not met with. To protect women against this threat the Indian government had passed the Dowry Prohibition Act and the Protection of Women from Domestic Violence Act and cruelty under Sec 498A of the Indian Penal Code. In 2012, according to the National Crime Records Bureau (NCRB), dowry deaths – or murders of women by the groom or in-laws because of unmet high dowry expectations – constituted 3.4% of all crimes against women. In other words, last year in India on average 22 women were killed per day because their families could not meet dowry demands.

Legal experts point out that many rapes go unreported. Due to “family’s honor” many complaint files are withdrawn and in many cases the police do not give a fair hearing. Medical evidence is often unrecorded making it easy for offenders to pass scot free under prevailing laws. India’s societal changes have been engineered by women getting access to education and jobs. However on the ground regressive notions and crimes continue to halt women from getting out of their homes and joining the work force.

Many activists argue that the rising number of women parliamentarians and the presence of many high profile women in India’s political parties and public offices will act as only ornamental if effective laws and mindsets are not altered to safeguard ordinary women.

To prevent the crime rate further speedier delivery of justice will serve as an effective solution. From 1953 to 2011, rape cases all over the country went up by 873 per cent, the only way left is to deal with the problem efficiently, expeditiously and in a specific time frame. To drive home a strong message that the judiciary will respond seriously against all such crimes. Let’s hope for the best to happen with the announcement by Narendra Modi Government to strengthen the criminal justice system for its effective implementation.

“One in three women may suffer from abuse and violence in her lifetime. This is an appalling human rights violation, yet it remains one of the invisible and under-recognized pandemics of our time.” – Nicole Kidman

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