Indian Chilli Enters Guinness Book of World Records

You must have found the title some what amusing and wondered what I was really up to - writing on steel. roses and now chillies. As I am committed to portray India's inner strength despite thousands of blogs still engaged in showing only its poverty, beggars, monkeys, snake-charmers et al, this post had its compelling reasons.
Coming to chillies, I have been reading reports about them in Times of India for the last two days with the last title 'How India won the chilli war'. International honours are hard to come by and when it was to be decided which chilli is the hottest, there were 3 serious contenders. The result (do not mistake in assuming that it was based on tasting them as that would lead to, who knows, terrible consequences) was given after elaborate tests were carried out by New Mexico State University's Chilli and Pepper Institute. The Indian entry known as Naga Jolokia was crowned with the honour scoring 1,001,304 Scoville Heat Units (SHUs) and USA's Red Savina scored 577,000 SHUs. The other entrant Dorset Naga which was developed for years scored 923,000 SHUs. Just to get an idea of hotness of chillies, any chilli having only 300,000 SHUs will bring tears. It is perhaps for the obvious reason, Naga Jolokia has a local name 'Bhoot' (ghost) as one would surely start seeing ghost when it is put in the mouth even accidentally. Records are made only to be broken.
Guinness Book of World Records have many examples of old entries giving way to new entries. In this age of globalisation, one cannot shy away from competition. Till some other chilli is found to be hotter than Naga Jolokia in some other part of the globe, let us savour its global honour (definitely not its taste though!).
To sum up, India is surely very very hot.

India's Acquisition Spree From Steel To Roses

Recently, India proved that it has the nerves of steel by acquiring two steel giants of Europe - Arcelor and Corus to become the world's No. 1(Mittal-Arcelor) and No. 5(Tata-Corus) manufacturers .There might be a mistaken impression among some quarters that its most acquisitions have been made for manufacturing or services.
It all changed after I read a news report on St. Valentine's Day that a firm in Bangalore is negotiating with a Dutch flower company Sher - the biggest in the world for acquisition. Incidentally, it seems 40% of annual rose sales takes place on this occasion alone. It may be too early to speculate whether India will be catapulted to become the world's biggest grower of flowers; but already it is being reckoned as a flower power with exports touching $678 million which is expected to cross $1 billion by 2010.
Adding such feathers to India's cap would be truly admirable if one does not read daily about farmers' unabated suicides and grim struggles of tens of thousands of farmers. The stark reality is that even agriculture is not free of infrastructure weaknesses which have been impeding growth of manufacturing sector. Power has been a laggard for decades although other sectors have been scaling new heights.
Not surprisingly, the noted business school KnowledgeAtWharton and a consulting firm The Boston Consulting Group have said in a new study "India is on its way to becoming world-class manufacturer due to changing environment but poor infrastructure, bureaucratic red tape and restrictive labour laws have kept India's manufacturing a backwater while its services have become red-hot'.
'Sher' means tiger in Hindi and to capture big tigers including the Dutch one, India must firstly have power - to light homes, run factories, turn pumps and also to make roses bloom brilliantly.
Is it not?

How Are You Celebrating Valentine's Day?

My heart leaped in joy today in the morning when I got a SMS with the starting words 'Dinner at Taj for u...'. Soon my soaring spirits got deflated on reading the next line 'On this Valentine Download and Dedicate Romantic Songs and U could be the Winner...'. It did not take me long to realise that the great Valentine's Day has arrived as I glanced over the pages of the morning newspaper. My favourite page had a strange look full with classified ads. Some 250 persons had decided to make the world know that they love someone by displaying their printed messages so that the loved ones can always preserve and produce them as proof of their lovers having remembered them at least on this day.
I learnt that on 14Th day of February, Valentine's Day is celebrated and is dedicated to love. Lovers feel they are on top of the world on this day and the romantic frenzy is sought to be built over weeks in advance with media splashing big ads of special gifts for the occasion. Although this day of the calendar I had crossed 65 times in my life so far, I do not remember to have done anything special. Was it because I expressed my love on all the 365 days of the years instead of letting it out on one single day or I am not "trendy" enough to be influenced by the changes sweeping our society?
I wanted to contemplate further. I read a report in Times of India which answered my query about the origin of Valentine's Day.
"In 270, Roman emperor Claudius II was unpopular for waging wars. He lost so many men that he found it difficult to find soldiers. So, he cancelled all marriages and engagements to force the youths to join the army. St. Valentine, a priest, secretly married couples till he was arrested and beheaded on 14Th February."
Since lovers want this day to be celebrated in a special way, it is their choice. I do not believe in jingoism and hence would not comment that this is a foreign custom making way into our lives. At the same time, I do not agree in this case, with the saying 'What is sauce for the gander is sauce for the geese'.
Don't you agree?

Kudos For India's War Against Global Warming

India's current rapid economic growth is drawing increasing attention from far and near with projections released by reputed agencies that it would dislodge Japan from its third rank by 2032 and USA from its second rank by 2050.
A more deserving achievement by India, however, I feel, is its highest reduction in green house gas (GHG) emissions (which have been responsible for global warming) among the developing nations Brazil, Mexico, China and Chile. As per Kyoto protocol, these nations including India, though not bound to reduce emissions, have been encouraged to adopt measures and at the same time earn 'carbon credits' which are tradable globally so that those who cannot achieve reduction in emissions could buy such 'carbon credits' for offsetting. As per a report, India tops such a list with 155 projects registered out of a total of 492 followed by Brazil 88, Mexico 77, China 37 and Chile 14 projects. Some more projects are awaiting registration. It has been estimated that it may finally bring 350 million 'carbon credits' which on a conservative basis would generate a whopping $3.5 billion by 2012.
It has been like killing two birds in one shot. In my post

India: Yesterday, Today & Tomorrow

Today, Indian economy has slowly started getting a respectable position globally. Her GDP growth has now become, what many economists believe, sustainable at 8-10% and in the process the past low growth @5-6% has been buried. Indian MNCs are out for acquisitions abroad and the latest Tatas-Corus deal - the biggest in size by any Indian company involving $12 billion has proved beyond doubt that India has truly become a global player.
How was it yesterday?

"On the eve of industrial revolution (around 1770), India was the second largest economy in the world, contributing more than 20% of total world output. By the 1970s, after two centuries of relative economic stagnation, that share had fallen to 3% - the lowest in its recorded history. From a long-term perspective, the post-industrial economic decline of India (and China) is a historical aberration, driven to some extent by a lack of openness. After independence in 1947, India followed inward-looking and state-intervenist policies that shackled the economy through regulations and severely restricted trade and economic freedom. The result was decades of low growth termed pejoratively the 'Hindu rate of growth'. Reforms beginning in 1991 gradually removed obstacles to economic freedom, and India has begun to play catch-up, steadily reintegrating into the global economy."

So says a report titled 'A game of Catch-up' appearing in Times of India (having its source Golden Sachs' Global Economic Paper no 152).

About tomorrow, I have already reproduced the forecast made, again, by Golden Sachs in my post 'Do you believe India's economy will be the second largest by 2050?' accompanied by my wish-list. The lesson for Indians out of the vicissitudes in last three centuries is "You must run faster to stay where you are".
Is it not?

Bride Corus Ties The Knot With Tatas

It is a great day for Indians, Indian steel industry and India as a whole. In a fierce battle to win the hands of the Anglo-Dutch steel company Corus, Tata Steel - the oldest steel manufacturer and the second largest in India has come out victorious. As the curtains come down in melodramatic films churned out in dozens by Bollywood, an one-liner usually appear just before the final words "The End" so that no one is left in doubt. The one-liner says 'and they lived happily ever after'. I learnt just an hour back about the happy ending of the Corus acquisition, the popular Hindi song 'Le jayenge, le jayenge, dulhaniya le jayenge'(I will take the bride, I will take the bride) spontaneously started ringing in my mind.
Tata's bid of 608 pence as against the rival Brazilian offer of 603 pence clinched the deal and like a magic wand transformed the Indian steel company from its 53rd position globally to an enviable fifth largest manufacturer. So, there is a lot of wisdom in the saying "Marriages are made in Heaven". But just to remind ourselves lest we forget in such euphoric moments, steel is made by men and he pays the piper who calls the shots.
It is a historic moment for India. Nearly three hundred years back, a British company by name 'East India Company' had touched the shores of eastern India initially for trading in textiles and spices. The British Empire kept the whole of India under its thumb for nearly two hundred years. Now the table has been turned. Tatas have taken over Anglo-Dutch giant steel conglomerate Corus.
My congratulations to Tatas-Corus on their wedding!

Wedding Bells Ringing For Corus

It is billed as a mega event - it is the wedding of Corus. It is also something unprecedented. The wedding is not going to be over in just a few hours. It will start by 10pm Indian Standard Time on 30th January, 2007 and depending upon what transpires, it may continue up to 8-30am on 1st ebruary, 2007. Interestingly, the groom has not been fixed as yet and there are two suitors.
Yes, I am referring to the acquisition drama of the steel giant Corus for which initially the only suitor was Tatas. But CSN of Brazil came out of the blue and demanded the hands of Corus. I was very thrilled at the prospect of Tata-Corus acquisition as it would have been the biggest by any Indian company for about $9 billion and made it the fifth largest steel manufacturer in the world. Though the earlier acquisition by Mittal Steels of Arcelor (which turned out to be a long-drawn corporate tug-of-war) ended making the combine the biggest steel company in the world, it was, in any case, launched from the foreign soils unlike the acquisition bid by Tatas - the oldest steel manufacturer and the biggest in the private sector in India.
There are contradictory press reports emanating from London about who will win the hands of Corus. 'Daily Telegraph' has said "CSN has the great desire to win Corus and may go as far as 600 pence." The Sunday Times quoted sources saying :"Do not write off Tata yet ...they are serious and they believe they can win." The irony lies in the highest bidder getting Corus despite a general impression prevailing that Tatas and Corus want each other.
In my post 'The eternal triangle of Corus-Tata-CSN', I had already said that I would be happy to see Tatas emerge as winner. I had, at the same time, expressed my misgivings about the drama ending like the film Devdas in which the hero (read Tatas) ruins himself without trying to save Paro (read Corus). Barely 30 hours are remaining for the curtains to come down. The suspense is building up. But then, I am keeping cool being reminded of the wise saying: "By all means get married. If you get a good wife, you will live happily ever after. If you do not, you will become a philosopher."
I do not want Tatas to become a philosopher.

Do You Believe India's Economy Will Be Second Largest By 2050?

Yes, I do. After all, I am a hard optimist. Why should I doubt the findings of a study that places India in No2 position ahead of USA by the year 2050 especially when the report has been prepared by the internationally reputed Golden Sachs. It had earlier projected India to No3 position just after China and USA by 2032 overtaking Japan.
The sweet music now released also says that India's GDP will quadruple from 2007 to 2020 and the per capita income will increase 35 times by 2050. This will enable Indians to buy cars five times and increase consumption of crude oil by three times. I do not know whether to rejoice at such projections. The scenario of so many cars in congested cities polluting dangerously the already highly polluted environment besides causing other problems is nightmarish and has been touched in my post 'Small cars boom spell urban doom'.
How I wish each word of the projection comes out true by 2050. Many readers may be around then to determine how much of it was realistic and how much was hog-wash. Of course, it is well known that war, natural calamities, epidemics like AIDs and political upheavals may upset the applecart. Nevertheless, I have a wish-list which should materialise preceding what has been forecast by Golden Sachs. My wishes are:
1. India is a strong, vibrant democracy where honest and capable people get elected as their representatives - not by rigging elections, or by use of money or muscle power.
2. India has eliminated hunger and poverty.
3. Every Indian has access to education, health care and social benefits. Cast, creed, language divide created and perpetrated by wily politicians no longer matter.
4.Every village has electricity as well as drinking water and every citizen has a roof over his head
5. Every nook and corner of the country is easily accessible by modern transport.
6. Every citizen is conscious and concerned about environmental degradation and reaches out to do his part to fight air, water and noise pollution.
7. Corruption has been removed from the public life. No one needs to grease the palms of anybody for getting things done.
8. AIDs and other serious diseases have been controlled or eradicated.
9. Women empowerment is visible in every walk of life.
10. Merit has become the sole criterion for advancement and selection in all spheres of life. Political interference, nepotism and sycophancy no longer work. If my wish-list becomes reality, how glorious it would be for India even if the projections of Golden Sachs attain only 50% accuracy.
Is it not?

Dumping Bio-Fuels

India is racing to emerge as a super economic power. Its rapid progress, however, has got some gaping holes which threaten coordinated and sustainable development. Take for example, the acute power shortage or the lack of infrastructure such as highways and expressways. Measures taken in fits and starts have failed to ensure uniform growth of different segments of the economy.
Bio-fuels can be partial solutions to the whopping needs of petroleum products of the country. Oil extracted from jatropha is blended with diesel to produce bio-diesel which serves as a substitute of diesel. Jatropha can be cultivated even in non-agricultural lands; its farming should receive governmental support by way of subsidies and relief from taxes so that at least for a part of its diesel consumption, India could become self-sufficient. The international crude oil price recently dropped to $50 a barrel and the whole economics of bio-fuels have gone up in smoke. As per a report in Economic Times, the cost of conversion of extracting jatropha oil and blending to produce bio-diesel is Rs5 (.09$) per litre. The current selling price of jatropha is Rs12, 000 ($265) per tonne. The cost of bio-diesel works to Rs43 ($.95) per litre as against the prevailing price of Rs35.75 ($.80) per litre of diesel. A price difference of Rs6 ($.15) per litre cannot compensate customer preference, if any. If more plantation of jatropha is undertaken, the competition should bring down the price of jatropha. The conversion cost will be also reduced if more bio-diesel manufacturers take up production and use efficient technology. By proper pricing of diesel vis-a-vis bio-diesel prices, bio-fuels will be accorded the importance in the economy from a long-term perspective. India will then be less dependent on foreign sources for its crude oil supplies.
Let diesel and bio-diesel thrive together and not at the cost of each other.

Let's Have More Watches To Make Up Lost Time

Modern life demands that man should be strapped to a time-machine. Can you imagine managing your life without a watch? I remember the tension and inconveniences experienced on occasions when my watch had refused to move.Yet, only 25 out of every 1000 Indians have got the prized possession of watch whereas the global average is 250.
According to a report, India manufacturers about 12 million watches a year and the world annual production is 600 million watches. It is claimed that over 50% - 75% of watches sold in India is imported through illegal channels. Time was when having a Swiss-made watch was considered by many as a status symbol. Thanks to the brand building efforts by the domestic watch manufacturers, watches made in India meet a sizeable demand of the domestic market.
India is racing to become a super-economic-power and Indians need to imbibe the value of time. Whether having merely more watches will usher in the change, time alone will tell. Those who are at the top echelon of society should lead by setting examples of respecting the importance of time. Others will follow suit.
So, let us have more watches and a whale of a time!

Moribund Ministries Flushed With Funds

Every year, come January, ministries go overdrive with their unfinished projects and unspent allocated funds. That is because the allocations are for the 12-month period April-March and first 9 months usually pass in warming up and frenetic activity is seen during the last quarter of the financial year (January-March). Reports usually appear about unspent funds in January and then the war cry is given.
One such report in Times of India 'Ministries sitting in funds, may loose unspent chunk' is an eye-opener. The worst ranking ministries are civil aviation 1%( Rs130 crores or $30 million), steel 16% ( Rs45 crores or $10 million), Non-conventional energy 18%( Rs597 crores or $130 million) and tourism 27%( Rs830 crores or $180 million) besides others who have not spent even 40% of allocated funds. So the usual excuse of funds shortage cannot be forked out for miserable progress of these ministries. It is the lethargy and inefficiency of the concerned ministries which is responsible for such a deplorable state of affairs despite a separate Expenditure ministry being there for monitoring expenditures.
I find the non-performance of the ministry of non-conventional energy, tourism and steel particularly very disappointing. India is heavily dependent upon imports for its oil needs and exploiting non-conventional energy can mitigate to some extent its energy crisis. Poor performance in such crucial areas is therefore alarming and unpardonable. So is the case with the steel ministry as growth of steel industry holds the key to removing infrastructural weakness. In case of tourism which has got such a huge potential, opportunities are being frittered away while other competing nations benefit out of our inaction.
Why cannot the concerned officials be held responsible for their callousness and inefficiency? The slogan should be 'Perform or perish' and anyone failing including ministers should be shown the door.
What do you say?

Indian Steel Industry Gasping For Real Autonomy

For the steel industry, the New Year 2007 has brought a mixed bag of news. The good news - International Iron and steel Institute has informed that the global steel production during the year 2006 has been 1.21 billion tonnes registering a robust growth of 9.4% over the previous year. The other good news is that China continues to dominate as the largest steel manufacturer in the world with a production of 421.33 million tonnes and growth of 19.4%. Such growths globally and in individual nations including India is indicative of good demand for steel. It is expected that the market during the year 2007 will have a growth of 10% and thus give the industry some breather.
The bad news is for the Indian steel industry. Demonstrating a typical bureaucratic mindset, the government is reportedly contemplating to regulate steel prices for which a high level committee to monitor price movement has already started working. The industry which was languishing due to governmental controls were freed from the shackles only in 1991. There has been a surge for setting up new steel projects both by Indian investors and foreign giants like Posco and Arcelor-Mittal. This is in line with the National Steel Policy which has fixed a target of 110 million tonnes by 2019-20. But the present government's move to backtrack and reintroduce price control is going to affect the rapid growth of the steel industry which is the need of the hour for India's infrastructure development.
For reasons best known to the government, it has been flexing its muscles from time to time for imposing price controls. India and china both produced measly 2 million tonnes in 1950s. Today China produces the 421 million tonnes ten times the steel produced by India. It is the policy vacillations and lack of political will that have stifled India's steel industry. Remember in what pitiable state our civil aviation industry was before competition was permitted? Today airlines which offer minimum fare of rupees nine have turned corners in just 3 years.
Such are the dramatic changes that take place whenever governmental interference is withdrawn. But packing up existing authority and bringing new order is a far cry. If such stumbling blocks remain, India's steel production may not attain its target and it could slide down further from present level of a mere 10% of China's production. I just cannot accept such a pitiable scenario.

Small Cars Boom Spell Urban Doom

India is basking in the sunshine for the robust growth of economy and the inevitable consumerism it has spurred by way of higher spending and improved lifestyles for Indians. Car - the ubiquitous status symbol delineating the rich from the poor is expectedly much in demand. The nation's image as the one afflicted with widespread poverty has taken a backseat after 1.3 million automobiles have been manufactured during the year 2006. In my previous posts 'Small Is Beautiful' followed by 'Small Cars Make Big News', I had hinted at small cars becoming cynosure of automobile manufacturers.
The year 2007 may see the launch of over 40 new models - many in the small car segment. The scenario is becoming all the more exciting with the international giants Honda, Toyota, GM and Fiat eyeing small car markets and planning huge investments in India. Their combined committed investment in the Indian automotive sector is reported to be a staggering Rs60,000 crores (exceeding $13 billion) over next 4 years. If this is not enough to celebrate, then the forecast made by Golden Sachs that India will have the largest population of automobiles by the year 2050 calls for uncorking Champagne definitely.
Just wait! We should also take into account what is lurking in the darkness. The Indian cities and towns are, as it is, notorious for endemic traffic jams caused by narrow roads with fast moving automobiles vying with slow moving handcarts and three-wheelers besides bicycles for right of way. The air and sound pollution far exceeds the prescribed safe limits. The road accidents in India are also the highest. So if more and more small cars are made, their highly competitive market may benefit the consumers who will also have the luxury to choose from a wide range of models at affordable prices. But it will spell doom for the millions living in the cities. The car density, likewise, will increase several folds from the measly four cars per 1000 people. The boom in the automotive sector will also generate jobs for a few thousand people. However, the flip side is too catastrophic to celebrate India's boom for small cars. Let the government ensure that environmental damage will not take place and more cars are not going to bring more problems in the lives of people.
Then I would also like take part in the celebrations. How about you?

Ah, Plant Trees And Get Tax Concessions!

You may be thinking that it must be a joke. I, too, accepted the news appearing in Economic Times with a pinch of salt. It says the government or more precisely the ministry of Environment and Forests is contemplating to offer tax concessions as incentive for afforestation. Before you start imagining that your personal tax liability will be somewhat reduced if only you planted trees as per the scheme, let me reluctantly pour cold water on your hope clarifying that the whole scheme of things is for the industry.
Be that as it may, I see a ray of hope of such afforestation scheme bearing fruit as no other palliatives worked better than tax concessions for the industry. The appalling deforestation has been largely the result of rapid industrialisation. Industries polluting air, water and land have been held responsible for the impending catastrophe arising out of global warming. Though belatedly, nations have agreed to abide by Kyoto protocol which offers incentives by way of carbon credits for reducing mainly carbon dioxide gas emissions, many are yet to take initiatives as they find that the benefits accrue only on long term even as spending on emission control measures has to be made initially.
I think this new scheme of giving tax concessions when implemented will get good response because of the indication given by the officials that the compensation could be in the form of land tax concession or providing relief from land ceiling. The ministry, as reported by Economic Times, is proceeding on the premise that the country's forest and tree will cover one third of the geophysical area by 2012.
The irony in the scheme has not been lost. Since industry has been the culprit that has played havoc with nature, it is now being made to undo the colossal damage to the environment. It is a classic example of the saying 'sow the wind and reap the whirlwind'.
Is it not?

Rivalry Between India And China Exists Even In Diamond Industry

Everyday, I come across either in print or electronic media some news or the other about China's supremacy over India. The whole world is watching almost in total disbelief as both China and India are racing like Phoenix - the mythical bird in the Arabian desert rising again from the ashes to become second and third biggest economy. In every public platform and discussions, it is now routine to highlight the widening gap in various fields of industry and business of the two nations. I think we are harping on it wrongly as India should try to remove its own deficiencies to improve rather than lamenting all the time about its poor performance in comparison with China.
The latest news about rivalry between India and China came from a survey report of the global consulting firm KPMG which was released by Gems and Jewellery Export Promotion Council. It has made a disappointing projection for India that diamond processing industry in which it had a lion's share would be reduced from its present 57% to 49% by 2015 - a drop of 8% in value terms. It goes on to say that China will emerge as a strong player with a share of 21.3%. I thought both India and China are poor nations and since jewellery is used by only the rich and the very rich, market shares of these two nations would be insignificant. The figures tell a different story. While USA remained the world's biggest market for jewellery with 31% share in 2005, India and China registered their shares at 8.3% and 8.9% respectively. At least in this particular case of market for jewellery, India and China are running neck and neck.
Let us not forget that China got started with liberalisation and globalisation more than 15 years before India finally made up its mind. The Communist regime in China ensured easy implementation of plans and policies whereas in India its political parties with diverse goals cobble up wafer-thin majorities to rule democratically. So India predictably experiences hiccups off and on in adopting globalisation.
Diamond processing industry provides employment and earns foreign exchange. India must do everything to retain its predominant position.

No Chorus Of Approval For Corus Acquisition

The climax of the drama for acquisition of Corus is about to be enacted shortly and ironically there appears to be no chorus of approval. I had concluded my post 'The Eternal Triangle - Corus-Tata-CSN' with "What Tatas will do to win the hands of Corus? I will be happy to see Tatas a winner. Let not the acquisition drama end like the film Devdas where the hero ruins himself instead of trying to save Paro". The vey same premonition has started haunting me.
The Brazilian giant CSN initially had made an offer of 475 pence per share against Tata's offer of 455 pence per share just only to provoke Tatas to revise their offer upwards to 500 pence which was stymied within hours by its 15% hike to 515 pence. In absolute terms, Tata's offer stands at $9.1 billion as against $9.6 billion of CSN. Clearly, the eternal triangle is inviting economical trouble.
Some analysts are of the view that Tata's offer is expensive whereas others feel that this is a golden opportunity for them to emerge as the world's fifth largest steel manufacturer. A report extracted from Economic Times puts the different perspectives succinctly. "ET spoke to 11 top investment bankers, of which five said the bid was now expensive and the Tatas could do well to consolidate their presence in India, one of the largest steel markets in the world, rather than paying dearly for a foreign steel mill. But another half among the deal-makers who were polled, believes that though painful in the short term, it is the larger picture that is still attractive - of a Tata Steel that is the fifth largest in the world, of a company that is able to influence in raw material negotiations and finally, of a company that did not let go of an opportunity to buy a world class firm."
I am sure Tata has the right corporate wisdom devoid of any personal ego and backed by experts' opinion to continue the bidding war avoiding quicksand that may lie ahead. We will have to wait till the curtain comes down.

Global Warming Raises Finger At The Cattle

The poor cow - now is at the receiving end. For ages, man has enjoyed pouring scorn on donkey so much so that the English language makes liberal use of such expressions like 'He is an absolute donkey' or 'The bridge won't be ready for donkey's years.But I was startled to read about a UN report saying the dumb cattle is responsible for global warming. I always thought that among animals, cow serves the man best. Its milk is nutritious for the child and the old alike. Its meat is relished by those who include such animal protein in their food. Its hide is an excellent raw material for leather shoes, bags and belts. Even its excrement has lot of uses - as a manure and fuel of the poor. The blow given by a report of otherwise independent and non-partisan United Nations is too devastating.
The Times of India reported "The increasing world population,a new UN report warns, would lead to further increase in the number of livestock as demand for meat and milk increases and that would mean emission of more greenhouse gases. Not only that. Cattle are also a major contributor to land degradation and pollution of water, the report says. The livestock business, the report says, is among the most damaging sectors to the earth's increasingly scarce water resources, contributing among other things to water pollution from animal waste s, antibiotics and hormones, chemicals from tanneries, fertilisers, and the pesticides used to spray feed crops.
Global warming is a stark reality which is threatening to cause unimaginable damage and loss to the entire population if drastic measures are not taken. That is why nations are jointly trying to fight the menace by Kyoto protocol and carbon emission reduction mechanisms. If cattle indeed are the culprit, we cannot think of a similar carbon trading to reduce their contribution to global warming.
One of the possible ways to reduce their greenhouse emission is to go for their zero-growth population. The good news is that non-vegetarians are gradually turning vegetarians all over the world. Then the meat demand may not rise proportionately with the increase of human population. Substitutes for dung used as manure and fuels may be eventually found. But I cannot think of a world where milk would become a rare commodity. Even as the we are reminded of the apocalyptic end caused by global warming, the very thought of living in a world of perpetual milk famine is equally distressful for me.

High Growth Of Economy Of India & China Causing Sleepless Nights?

I always read about rapid progress of India's economy with avid interest but harboured some doubts at the same time. It excited me to imagine India being ranked the third largest economy in the world by the year 2010. Those forecasts have been made, after all, based on facts and figures; the international watchdogs and analysts corroborate the same even as I fail to get any glimpse as though the same might be taking place obscurely.
The annual deliberations between the Confederation of British Industry and the government of United Kindom, interestingly, have removed remaining doubts from my mind as I learnt who was saying what. The Chancellor of Exchequer, Gordon Brown, has warned "Over the next fifteen years, up to half the world's future growth will come from India and China. By 2020, the G-7 share of growth will fall just to one-third". I quote from The Times of India what George Osborne, the right-hand man of David Cameron, the leader of Tories had told the Confederation of British Industry - "How are we going to compete against countries with low wages and high ambitions? There are quite a lot of lazy assumptions out there that we need to confront. There's the assumption that we'll do the clever stuff and we'll move up the value chain, and leave the Chinese and Indians to do cheap things. Let me tell you no one has told them that." Paradoxically, U.K. and other developed countries are now getting scared of the economic boom taking place in India and China. As reported in Economic Times, the US treasure secretary, Henry Paulson, wailed "We cannot tell the developing countries that we benefited from free markets, but we will not allow them to do the same. It's morally wrong - we are condemning them to being a perpetual underclass."
The cat is now out of the bag. The globalisation mantra chanted for years to the developing countries like India and China for allowing MNCs and FDIs (to exploit the natural resources as well as to escape from the rigid claws of environmental controls in their own countries) has begun to backfire. The disciples i.e. India and China having mastered the mantra are now ready to take on their gurus.
I think India has to wait patiently for poetic justice to be delivered. What do you say?

Malls Threaten To Edge Out Small Retail Outlets

Swanky malls with their eye-catching interiors, cool comfort and convenience of shopping, huge spaces to move around freely and car parking as well as refreshment facilities are drawing huge crowds in India. However, the public accustomed to a entirely different style of shopping and small retail outlets known as 'kiryana stores' stand no comparison to the land, labour and investment made in malls. There are reportedly 12 million such small retail outlets for a population of 1.07 billion and buyers numbering 405 millions in India. The rich number 6 million having a purchasing power of $28 billion and the total purchasing power is estimated to be $230 billion. This gives India a dubious distinction of being known as 'nation of shopkeepers'.
Be that as it may, the retail is one of the fastest growing sectors in the economy. The world's biggies are waiting to spread their wings in India introducing their modern and western management style along with a lot of dazzle. The supremo Wal-mart - a 260 billion retailer has just inked a JV with India's leading Bharti group. The reason for their enthusiasm to have presence in India is understandable as India's GDP will cross a staggering $740 billion by end of this year and is already world's 4th largest economy likely to become the third largest after USA and China by 2010.
So the media hype and the palpable soaring interest among the rich, the urban population particularly the youths who are vulnerable to ape western lifestyles with plenty of cash at their disposal are becoming somewhat disgusting. I am not quite enamoured at the idea of such malls barging into our lives. That is because, I know, it would herald the death of thousands and thousands of small retail outlets. Those are mostly family-oriented business joints which employ least capital, land and labour. They are small in size but their services extend far beyond mere shopping. From giving credits to customers and personalised attention, these outlets serve as a place for social mixing. The shopkeepers know their customers and their families by name and at times discuss personal problems confronting them. Among their other services, home delivery is quite fascinating. In Western countries where the culture is different and almost every person possesses cars - malls are very convenient places for shopping. But why we have to go malls located far away for our daily needs when we can get them round the corner. Let us not forget that shopping is a part of our daily life unlike in the West where it is done weekly or fortnightly. Bargaining is a part of shopping experience in these market places. Moreover, when millions of job-seekers are looking for jobs, why should the millions already working in small retail outlets loose their jobs only for malls to flourish which will require much less hands because of mechanisation and automation. Malls may be very cozy place but you loose your identity and power there.
So all that glitters is not always gold. I cannot think of a life without those small retail outlets - Wal-marts or no Wal-marts!

The Eternal Triangle Of Corus - Tatas - CSN

When Tatas successfully bid for the acquisition of the Anlo-Dutch behemoth Corus, it was an euphoric moment for me as the Indian corporate giant appeared to be emerging as an Indian MNC to take on the world champions of industry. I also found it somewhat ironical that because of the globalisation, Tatas were set to become for U.K. in 21st century what was East India Company when it had entered India in 18th century. The acquisition was very keenly watched as it was slated to be the largest Indian acquisition of any foreign company worth $8.1 billion that could push the rank of the new combine Tata-Corus to become the fifth largest steel manufacturer in the world.
So far, everything seemed to proceed on the expected lines and we were all thrilled to see the beaming smiles of the top Tata officials in TV and print media. The Corus board had also approved the offer of 455 pence a share made by Tatas though a third party could still throw a spanner in the works till the EGM of shareholders put the final seal on it. The acquisition drama would have lost its excitement had not CSN - a Brazilian steel manufacturer announced its plan to bid 475 pence a share raising the buyout price to $8.3 billion. The new suitor CSN's entry can be likened to the usual Bollywood stuff where the hero who is deeply in love with the heroine suddenly faces the risk of loosing her as someone villainously tries to snatch her.
Getting down to brass tacks, CSN has not only made a higher offer, albeit informally so far, it has the advantage of owning iron ore mines and have been exporting 30 million tonnes annually which is likely to go up to 50 million tonnes by 2010. Owning iron ore mines by steel manufacturers is winning half the battle in competition. It is because of such advantages that Tatas are credited with making the cheapest steel in the world. In case of Tata-Corus combine, Tatas would be able to supply slabs only to Corus who would have to alter their existing manufacturing process. CSN's steel manufacturing capacity is higher than Tata's and had made 5.8 million tonnes during the year 2005.
The bidding war has just started and the share price of Corus has already crossed 500 pence a share. In the changed situation, Tatas will have to revise their offer to clinch the deal. I am sure Tatas will not throw in the towel so early. Though Tatas are viewed as a role model in the corporate world, they seem to have a weakness. When it comes to showing its nerves of steel in forays in new locations, it has disappointed its admirers and its image has taken a beating in the past as in Gopalpur and Bangladesh.
What Tatas will do to win the hands of Corus? I will be happy to see Tatas a winner. Let not the acquisition drama end like the film Devdas where the hero ruins himself instead of trying to save Paro.