Category Archives: Indian Economy

To face Terrorism, Act, just praying does not help

Posted on by
Reply

One of my colleagues sent me an email to say that we should build national spirit among ourselves and therefore every meeting should start with Vande Matram and end with Jana Gana Mana.   My reply was as under:

“Yes, though I agree to National Anthem and Prayer in the EC meeting, that itself is not going to solve the problem. 

 

USA had 9/11 problem, but did anything major repeat thereafter.  Why is this a fornightly affair in our country?

 

It is time that we act in the National interest. It is the corruption which has spoiled our politicians and the Government governance.  Every time we talk about the protest and steps we need take on political level, we hear: “we are businessmen and let us remain businessmen.  Let us not get involved by raising our voice but let us quietly manage the things and go ahead”.  That is how we ourselves have nursed corruption, inefficiency and resulting havocs.  If our system is not corrupted and is efficient, I don’t think the terrorists would have crossed the Indian waters and landed on our grounds to slap on our face.  I personally derive that we are responsible for the terrorist activity of last week as we have failed to make the system to realise their responsibilities.  Most of our politicians and officials in authority are busier working out the plans which gives them larger benefit, instead of greater benefit to the Society/Nation.

 

What counts is the action we take, not what we pray.  We have placed national benefit far behind to our own benefit which in fact should be the other way.  Therefore, if we are seriously sincere, just praying national anthem/song alone does not solve the problem.  Let each of our action to the benefit of the country.  Are we prepared to take oath and implement:

 

            (a) Not to bribe anyone and fight for our legitimate rights even if it means sacrifice of personal benefit

            (b) To have the entire business of ours without parallel records      

            (c) To raise our voice against any injustice and inefficiency irrespective of             who feels offended, as long as it is to the benefit of the Nation?

 

If we implement this, we will have the confidence to fight any injustice and inefficiency.  That would keep every one alert to perform their duties and control the unfortunate episodes like what we had last week.

 

Let us Act to the benefit of the Society in general; just murmuring alone would not help.  Let us learn to sacrifice our own benefit for the benefit of the Society/Nation in general. 

Mother Of All Solutions: Be A Part Of Politics

Posted on by
Reply

I quote well phrased following extract from PPI:

“If India-born, India-educated Indians can run many global corporations which operate in hundreds of countries worldwide, with turnovers of thousands of crores of rupees, employing millions of people of every nationality, why, after six decades of self-governance, are 300 million Indians below the poverty line, and 350 million Indians illiterate ? Why are water and electricity still in short supply?”  Why should there be poverty and illiteracy in the first place?” The government has all the capabilities and resources to eliminate these two scourges but the willingness is absent.

Still we failed because there are many unenlightened and uneducated politicians, even criminals, sitting in our legislatures and making policy decision.  Parliament has to be run professionally like the way you run your respective organizations run.

Encourage your employees to participate in politics.  Spread the word.  Don’t be afraid. It is only when the educated and enlightened come into politics that things will change.  You don’t need to spend your time, effort, and money on uplifting literacy and poverty.  It can happen automatically if there is good governance in Indian politics.”

Badri Baldawa

To Face The Present Challenge, Change Our Business Approach:

Posted on by
Reply

 

Present problems:

As I pen this note, the financial world and the global economy are in the throes of the worst crisis of our times. The global financial bubble has now burst, some of the largest financial institutions have collapsed , liquidity has dried up, wealth has shrunk to unimaginable level and investor confidence is wiped out,

 

Recession, starting from US, has shaken the nerves of many a countries.  This has dampened the exports and the profits.  Experts say the situation is likely to remain so in the near future, but it looks the worst is still to come

 

When everything was looking so handsome world over, why did it suddenly collapse?  Detailed diagnosis by the experts is important so that we do not fall prey to the same problem again.

 

India too witnessed the meltdown.  Look at the way the stock markets are bleeding.   .  India, in comparison, to even many advanced countries has stronger internal drivers for growth, robust financial system, excellent regulatory mechanism, and pro-active and pre-emptive monitoring of the situations.  Therefore let us not panic

 

Favourable factors:

There are many favourable factors which can help us in facing this global storm

 

Oil prices have dropped down practically to 1/3, Inflation has dropped down to below 9% compared to high of 13% couple of months back.  Raw material prices have dropped down to almost half or even less.

 

Economies of most of the other countries are worse and this is expected to work in our favour.  Rapid inflation in China and other countries which are India‘s competitors has and will bring business in India’s way. 

 

Our Government also appears to be in a supportive mood.  Loan interest rates have been lowered, loans are liberalized and liquidity is being improved.  They are striving to improve these factor further.  We can certain suggest that upgrading the list of Focus products to include stainless steel utensils and cutlery will certainly help the Stainless Steel industry from the status of seriously illness.

 

Though Rupee exchange rate has changed to the advantage of Exporters, the impact is still to be reflected in the accounts of exports as they were forced to go for forward booking earlier, when the Rupee was appreciating at a very fast rate.  Considering the very wide currency fluctuations, the exporters are confused to quote the prices as the adverse rate fluctuation could ruin him whereas safer rate may mean losing the order to the competitors.   The Government and RBI may have to interfere to maintain stable currency rate.  Till such time, the exporters could still hedge their requirements to their advantage at present.

 

Possible solutions:

While the government does its part of duty, we have to question ourselves, ‘Do I change my strategies based on the current global scenario and thrive in future, or do I carry on with my age-old strategies and just watch to survive?’   It is time to take a decision…a decision that will decide the future.  I believe that those who can face the present challenge are the winners for future.

 

Every crisis carries an opportunity with it and we should accept this opportunity to our advantage. 

 

Exporters now need to find other alternatives to remain in business. 

  • Look for the alternative destinations to USA market.  Diversify to Latin America and ASEAN regions, the European Union, Middle East and African countries can be the next best market options to counter the shortfall.

 

  • Both manufacturers and exporters need to sit together, see where every penny can be saved and revamp their product catalog and their price tags. They need to integrate in their operations

 

  • Multiple price options can be offered to the customers. If a buyer finds the price of a product beyond his target price, offer an alternative product which suits to his range.

 

  • Different prices for different geographical locations can help exporters to balance their p their profit margins.

 

  • Dealing in difference currencies for different countries could help in protecting heavy fluctuation in one currency

 

  • Plan and shorten delivery time.  This will protect, to certain extent, any possible loss arising out of cancellation of orders due to changes in the economy of the importing country.

 

  • Change in marketing strategy by negotiating more on E-commerce media could reduce the overseas travel expenses

The nation today expects from us much more than ever before.   Well, let us try, if we can get the change in our business.

 

Badri Baldawa