Global Standing and Credibility

India’s global standing as an economic power and its credibility as a nation are under threat, to put it mildly.

Anyone who follows the India story would have detected the signs quite some time ago. The financial analysts and credit rating institutions have closely tracked the Indian economy and government policies, and so are clearly best positioned to highlight the issues (though their recommended solutions may not always work).

The business class and the middle class are now seriously worried. The Indian economy is on a free fall, having hit a big drop to just 5.3% GDP growth rate in Q4 (Jan, Feb, Mar of 2012), which is the lowest growth rate in nearly a decade of growth and development.

We will not go into economic theory and principles here in this post. What needs to be understood by the people who govern this country is that growth is THE only solution for pulling India out of poverty. There is no other solution – if economy does not grow at a minimum of 8% for the next 25 years, India would still be far below the world’s leading economies in terms of GDP per Capita and poverty levels.

Nothing else matters more. All the economic reforms should be directed at creating growth, employment and new consumption. Exports should reach USD 1T (yes, that is a trillion dollars) in the next 5 years from the USD 300B now. The trade deficit should become a surplus. The current account deficit should be contained at 3% by removing subsidies. 

It is not that the Indian Government is unaware or incapable of finding solutions to the ills of the economy. It full well understands what needs to be done. The whole spoiler today is the political compulsion – first from the main party of the UPA (United Progressive Alliance) Coalition and the second (and most vociferous) from the constituent parties of the alliance.

But what is needed now for the country is clearly economic leadership, notwithstanding political costs and equations. If the UPA Government wastes the next 2 years in power preceding the elections in costly political maneuvering, then it would have squandered its legacy of building an economic success story from 2004 to 2010 ; even when the world was hit by the Lehman crisis in 2008, India was doing pretty well.

So, the immediate leadership question that is being asked of the Government – “are you capable of pulling India out of its serious and apparently intractable economic problems that have engulfed its people, with all the parameters heading south ?”. If the Government does not act immediately with a clear-minded strategy, then India is done for. Unfortunately, notwithstanding the fact that the Indian business successes are due to the entrepreneurship of its business-oriented professionals, the terrain is still dominated by the enabling government policies and recovery actions. The Indian Government plays a huge role in the Indian economy and business – it even controls entire sectors of business by its own companies (the “public sector” companies).

All in all, the time is very short and the Government needs to act very fast. Otherwise a huge opportunity would have been squandered and the current party would leave the Government with a negative legacy. It should formulate strong policy actions (irrespective of protests from any quarter) and implement quickly. There will be temporary pains for all sections of the society, but that is to be expected. India cannot be the only country with a protected economy and less pain for its people.

In a nutshell, courage and dynamism are badly required now. Let us see what the Government does………not much time left though.

Cheers,

Vijay Srinivasan

2nd June 2012

Mumbai

A Local Call

Courtesy: Anu, my IIM-B Classmate

An American decided to write a book about famous churches around the world.

So he bought a plane ticket and took a trip first to China.

On his first day he was inside a church taking photographs when he noticed a golden telephone mounted on the wall with a sign that read “$10,000 per  call”.

The American, being intrigued, asked a priest who was strolling by what the telephone was used for.

The priest replied that it was a direct line to heaven and that for $10,000 you could talk to God.

The American thanked the priest and went along his way.

Next stop was in Japan. There, at a very large cathedral, he saw the same golden telephone with the same sign under it. He wondered if this was the same kind of telephone he saw in China and he asked a nearby nun what its purpose was.

She told him that it was a direct line to heaven and that for $10,000 he  could talk to God.

“O.K., thank you,” said the American.

He then travelled to Pakistan, Sri Lanka, Russia, Germany and France.

In every church he saw the same golden telephone with the same “$10,000 per call” sign under it. The American, then decided to travel to India to see if Indians had the same phone.

He arrived in India, and again, in the first church he entered, there was  the same golden telephone, but this time the sign under it read “One Rupee per call.”

The American was surprised so he asked the priest about the sign.
“Father, I’ve travelled all over World and I’ve seen this same golden telephone in many churches. I’m told that it is a direct line to Heaven, but everywhere the price was $10,000 per call.  Why is it so cheap here ?”

The priest smiled and answered, “You’re in India now, son – it’s a local call”. – KEEP SMILING

Courtesy: Anu, my IIM-B Classmate

Cheers,

Vijay Srinivasan

2nd June 2012

Mumbai

MASI CAMPOFIORIN 2006

This is an outstanding Italian red wine. It was recommended by The Wine Society of India.

It is ruby red in colour, a bit dry but full-bodied fruity wine, which is to be relished on its own or with some good pasta with lots of cheese. I have not had the opportunity to get and enjoy many Italian reds, so this MASI wine came as a refreshingly new addition to my wine sense.

MASI is a famous Venetian winery from the Northern region of Italy – located around the city of Verona. It has a long history of winemaking, and produces premium wines.

MASI wine which I had has a long name which goes like this – “BROLO DI CAMPOFIORIN 2006″. “Brolo” is the equivalent of the French term “clos”, a walled vineyard, according to the literature available on this unique wine. The Veronese grapes used in this wine are from a variety called Corvina, which produces a dry, rich and velvety wine.

This is a great wine, and grab a bottle if you can find one.

Cheers,

Vijay Srinivasan

28th May 2012

Mumbai

What a Summer !

I was visiting Chennai last week.

From an average of 34 deg C in Mumbai, the increase was to the extent of some 8 deg C in Chennai ! While I am not a newcomer to Chennai, it was made clear to me (by my relatives and friends) that I had landed in what was the “Agni” week of the Chennai Summer. “Agni” means fire !

The simmering heat during the peak sun was barely bearable, but the worst thing was that the electricity board cut off the power supply to residential premises for some two hours every day – different parts of the city have the power cut at different times of the day. In my house, it was from 2 PM to 4 PM. In some areas, it was from 8 to 10 AM and in most other areas, it was from 10 AM to 12 Noon. You can imagine the torture when you are at home or office and the air conditioner stops working !

I noticed that most residential premises have invested in a unique contraption – the “inverter”, which provides electricity during the power cut for a duration of 2 to 4 hours (depending on battery capacity and the number of rooms/lights/fans to be covered). The approximate cost of such a device is some INR 12,000 (USD 220) for addressing the needs of the living room and one bedroom (an approximate estimation only). So, in Chennai, a family has to invest in such devices, import water (as water supply is equally erratic) at high cost, pay for inflation in fruits and vegetables, pay one of the highest prices for petrol in the country, suffer the heat, and still sustain one of the highest real estate prices in the country !

This is not to complain – Chennai is far better organized than most metropolitan cities in India, has better quality roads, is in the process of completing the metro rail network, has a booming IT (Information Technology) economy now supplemented by a fast-emerging automotive industry, has a conscientious workforce, and is challenged with much less crime than other States of India. In devising its model for development of the State, the Tamil Nadu State comes only next to Gujarat. So, overall, the situation is good and should improve vastly if the State Government manages to fix the power situation and continues to provide incentives to the manufacturing and IT industries.

But, can we buy the weather ? Of course, not. The prudent thing is to ensure continuous power supply to both residential and industrial customers across the State.

Now, I am back in the 32 – 34 deg C Summer in Mumbai and surely, I did not feel the heat wave during the day though it was slightly uncomfortable if one is over-dressed !

Welcome to the Summer ! Enjoy it with cold buttermilk and fresh juices !!

Cheers,

Vijay Srinivasan

28th May 2012

Mumbai

Cricket Thriller

There is no thrill in a finals match, unless the teams are evenly matched in all departments. Certainly this applies to cricket – it is better to witness a thrilling cricket match, rather than a pre-ordained one with hardly any adrenaline flowing.

The Sunday (27th May) finals of the IPL (Indian Premier League) Competition which was held in Chennai between the Kolkata Knight Riders (KKR) and the Chennai Super Kings (CSK) teams was one such thriller. KKR was already in the finals, and CSK fought its way into the finals by winning the play-offs against two other teams (the Mumbai Indians team and the Delhi Dare Devils team). It was anyway expected to be a good finals match, but the odds were heavily in favour of the CSK team winning the finals.

So, when the CSK team batted first and set a high target of 191 runs for the KKR team to beat, there was jubilation amongst the Chennai fans – as expected, the stadium was full of CSK supporters, being the home base of the CSK team. Hence the moral and physical show of support was just phenomenal for the CSK team, and obviously they were very much encouraged. Had they won this finals, it would have been a neat hat-trick for CSK, having won the previous two titles in two previous years at the IPL finals.

But then, such fine teams are made up of fine players, and it was to be expected that there would be a tough fight – only that hardly anyone expected KKR to put up a valiant fight, rightfully so after the KKR team lost their Captain Gambhir in the first over of the match itself – they had hardly started batting. So, the whole stadium was expecting a total rout of the KKR team by the CSK bowlers and its well-oiled fielding formation.

However, that was not to be. Maninder Bisla of the KKR team played an outstanding game with a score of 89 runs – many of them fours and sixes. He was totally unfazed with the fact that KKR’s captain had just fallen and the figure to beat looked unachievable, atleast initially. But bat he did, without batting an eyelid. And Jacques Kallis, that most experienced all-rounder of the KKR team ably supported Bisla, allowing Bisla the space needed for quick run scoring.

Overall, this was a turnaround story crafted by these two fine players, and even though wickets fell at a faster clip thereafter, it was only a question of some firmness on the part of couple of latter KKR players, especially Tiwari, who could swing the bat effectively for couple of fours which sealed KKR’s win ultimately.

But what I did not like seeing was the lack of “captaincy” by Gautam Gambhir (Captain of KKR team), demonstrating that he is still far too young to lead a major team. Yes, KKR did win the IPL Finals and Gambhir was their Captain, no doubt. But, many a time when the camera focused on Gambhir, he could be seen sulking and brooding, and looking down on the floor, and it appeared that he could not accept his own dismal performance, and more so, he could not handle the stress which comes as part of such very competitive matches. He appeared to have given up hopes for a win, and that in itself, was bad. There was no sense of direction in him apparently, and he was not seen discussing strategy or providing guidance (unlike MS Dhoni, Captain of the CSK team who constantly engaged with his team working on alternative strategies for winning the match). Energy levels are critical in competition and as Captain, the least which Gambhir should have shown is his own energy level, pushing, goading and advising his team rather than sitting there in the pavilion with zero energy.

Well, well, that was the match of the year – KKR taking away the IPL Finals Trophy away from CSK to their home base of Kolkata. Very well done, indeed.

Cheers,

Vijay Srinivasan

28th May 2012

Mumbai

Auto Haggling and Fleecing

Last few days, I have experienced the haggling that the common man is forced into doing with the auto rickshaw (the three-wheeled scooter rickshaw popular in India and few other countries such as Thailand) drivers in the city of Chennai. It has always been a problem in Chennai, even when the fare meters were working properly. The drivers will always ask for a top-up on top of the fare shown by the meter in the past. But now, the meters are all OFF – yes, no fare meter is working on any auto rickshaw vehicle in Chennai.

The situation is pretty bad (it looks very bad when compared to the situation in Mumbai where all auto rickshaws have working meters and the drivers rarely ever ask for a “top-up” of the metered fare), and the haggling is getting to the nerves of most hapless commuters that I saw in Chennai last week. There is really no choice but to haggle, the minimum fare has gone up to INR 40 (it was supposed to be somewhere in the region of INR 15 or 20 – not sure). Even for a few hundred metres, the auto drivers ask for the minimum fare, and anything beyond is anybody’s guess. Relentless push is required to bring down the highly unreasonable fares down to something close to a reasonable number which actually is far higher than what anyone would pay in other cities across India.

The problem is lack of enforcement and political patronage given to the auto drivers at the cost of the common commuter who is put into deep hardship. Fleecing of the common man is an everyday occurrence in Chennai with the auto drivers demanding big amount for not such a big distance.

Let me give some examples – for a distance of 1.5 KMs, the fare demanded was INR 120, later reduced to INR 70 which I flatly refused and walked away. Then after a couple of tries, I got an auto rickshaw which took me the distance for INR 40. For a distance of some 8 KMs, the fare demanded was INR 200, which I managed to reduce to INR 100 (probably because it was early in the morning and there was not much business, and the auto driver did not wish to turn away the first deal which would have been inauspicious for him as per usual belief in this part of the country). The key lesson is that if you are in a hurry and have to reach a place at a specific time, you could well be taken for a literal “ride” by unscrupulous drivers.

Mumbai is far, far better when it comes to such matters of public service – not in everything, but certainly the auto rickshaw drivers follow the fare rules, carry the fare card, and show the translation of the metered fare to actual fare via the fare card, pay back the balance amount due to the commuter instead of swallowing it like what they do in Chennai, et al.

Really sad situation in Chennai. With petrol prices having gone up, the auto drivers have found a new excuse for raising the fares again – notwithstanding the fact that most of them do not use petrol !

Enjoy the expensive rides in Chennai !!

Cheers,

Vijay Srinivasan

27th May 2012

Mumbai

Professional Approach – Call Centres

The nuisance calls on cell phone have not ceased completely.

Though I had chosen only certain categories of calls to be permitted on my cell phone via the national “do not disturb” registry, after a while the calls somehow started off again. Since one does not wish to shut off “financial institutions-related” calls and text messages, there are now increased number of calls coming in from such institutions trying to sell some or the other financial product, offer loans at low interest rates, offer a new credit card, etc., etc.,

The messy thing in such calls is that these calls come in at any time, and can affect business transactions. Further, the caller from a bank’s call centre cannot speak proper English (usually) and indulges in chaste Hindi or sometimes Marathi, making an invalid assumption that the other side would understand. If you insist that any such conversation needs to be conducted only in English, the caller quickly switches off.

Such behaviour gives me the impression that even reputed banks (and other financial institutions) do not really ensure that their call centre employees are bilingual. I am also not sure if they really train these folks on how to engage in a conversation properly with customers, instead of opening the call with a question “would you be interested in our new product” ? I will rate the call centre employees below 5 on a scale of 1 to 10 when it comes to conducting a conversation in English.

This is not the case with the Credit Card Centre employees of many banks – they are well equipped, well prepared to handle any customer or situation, ready with the data, etc., May be because they are actually running a credit operation, the bank invests in better quality employees !

I have put off many a caller, sometimes rudely, especially when I am in the middle of something. The caller will then insist to get an alternate date/time to call, and almost invariably not call if you do provide such an alternate timing. So unprofessional, and that’s why I do not believe in the efficacy of customer service rendered via ordinary call centres (mostly outsourced).

Couple of call centre operations which are highly professional come to mind at this juncture – one is Dell and the others are HDFC Bank / Standard Chartered Bank. Excellent trained employees operate these call centres and give a feeling that you are indeed talking to the company or institution directly. Service is very good and prompt.

Overall, the disturbance which emanates via one’s cell phone can be done away with almost entirely, but for the proof of certain banking and credit card transactions which give comfort feeling. Otherwise, the cell phone is to be used only for important calls and messages which are to be expected rather than abrupt ones which disturb one’s equilibrium oftentimes.

The key thing for success in customer handling via call centre operation is a solid professional approach with knowledge of the customer and his problems. Someway to go to attain that situation………..

Cheers,

Vijay Srinivasan

20th May 2012

Mumbai

 

Who wants to be a Teacher ?

Courtesy: Ashraf, my childhood classmate

From A School Principal’s speech at a graduation……….

  
He said “Doctor wants his child to become a Doctor…….
Engineer wants his child to become an Engineer……
Businessman wants his ward to become CEO or Boss of his business…….
BUT a teacher also wants his child to become one of them…..a Doctor, an Engineer or a CEO !!!!

Nobody wants to become a teacher BY CHOICE” ….Very sad but that’s the truth…..!!!”
  
The dinner guests were sitting around the table discussing life. One man, a CEO, decided to explain the problem with education.

He argued, ”What’s a kid going to learn from someone who decided his best option in life was to become a teacher?”
To stress his point he said to another guest seated around the table:
“You’re a teacher, Bonnie. Be honest. What do you make?” 
  
Teacher Bonnie, who had a reputation for honesty and frankness replied, “You want to know what I make? (She paused for a second, then began…) 
  
“Well, I make kids work harder than they ever thought they could.
I make a C+ feel like the Congressional Medal of Honor winner. 
I make kids sit through 40 minutes of class time when their parents can’t
make them sit for 5 min. without an iPod, Game Cube or movie rental. 
  
You want to know what I make? 
(She paused again and looked at each and every person at the table) 
I make kids wonder.
I make them question. 
I make them apologize and mean it. 
I make them have respect and take responsibility for their actions. 
I teach them how to write and then I make them write.
Keyboarding isn’t everything. 
I make them read, read, read. 
I make them show all their work in math.
They use their God given brain, not the man-made calculator. 
I make my students from other countries learn everything they need to know about English while preserving their unique cultural identity. 
I make my classroom a place where all my students feel safe. 
Finally, I make them understand that if they use the gifts they were given, work hard, and follow their hearts, they can succeed in life.
  
(Bonnie paused one last time and then continued.) 
“Then, when people try to judge me by what I make, with me knowing money isn’t everything, I can hold my head up high and pay no attention because they are ignorant. You want to know what I make?

I MAKE A DIFFERENCE IN ALL YOUR LIVES, EDUCATING YOUR KIDS AND PREPARING THEM TO BECOME CEOs and DOCTORS and ENGINEERS……….”

  
“What do you make Mr. CEO?” she asked

His jaw dropped; he went silent.

Courtesy: Ashraf, my childhood classmate

Cheers,

Vijay Srinivasan

20th May 2012

Mumbai

Marco De Pegoes 2009

Yet another good wine. This time from Portugal !

This red wine is a mixture of a special Portuguese grape variety called “Castelao”, Syrah and Cabernet Sauvignon. It has an amazing texture and a smooth finish that has not been seen in any Indian red wine.

I could get the aroma of berries and some kind of spices. The wine drinks well, very smooth in the mouth. The longish and soft silky finish leaves an excellent and enjoyable after-taste, which I liked very much. Many a time, we quickly drink the wine, briefly enjoying while drinking and then forget the wine with some quick munchies. Not to be done with this kind of wine, the after-taste needs to be relished on its own.

Smooth wines like the Marco De Pegoes are great for a weekend evening when you have some guests and wish to ensure that the red wines that you select are good enough for everyone interested in drinking red wine. There can be no complaints on this wine, and it is very important to positively influence your guests when wine is involved. Since wine is a complex choice for most folks, a good recommendation is critical to ensure enjoyment of the same.

Knowledge of the wine is lacking in general, so it is important to be able to articulate the particular type of wine chosen for the evening. A brief lecture would be in order, so that people appreciate the wine that they are drinking.

I am engaged in this discovery of great wines, and amazed at what is yet to be learnt about wines and viticulture.

Try getting this wine and you will see that it is really a wine that delivers what it commits ! And it comes from an agricultural cooperative in Portugal !!

Cheers,

Vijay Srinivasan

19th May 2012

Mumbai

 

Great Truths

Courtesy: Anu, my IIM-B Classmate

1. In my many years I have come to a conclusion that one useless man is a shame, two is a law firm and three or more is a congress. 

– John Adams

2. If you don’t read the newspaper you are uninformed, if you do read the newspaper you are misinformed.

– Mark Twain 

3. Suppose you were an idiot. And suppose you were a member of Congress. But then I repeat myself.

– Mark Twain

4. I contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.

– Winston Churchill

5. A government which robs Peter to pay Paul can always depend on the support of Paul.

– George Bernard Shaw
6. A liberal is someone who feels a great debt to his fellow man, which debt he proposes to payoff with your money.

– G. Gordon Liddy 

7. Democracy must be something more than two wolves and a sheep voting on what to have for dinner.

– James Bovard, Civil Libertarian (1994)

8. Foreign aid might be defined as a transfer of money from poor people in rich countries to rich people in poor countries.

– Douglas Casey, Classmate of Bill Clinton at Georgetown University 

9. Giving money and power to government is like giving whiskey and car keys to teenage boys.

– P.J. O’Rourke, Civil Libertarian

10. Government is the great fiction, through which everybody endeavors to live at the expense of everybody else. 

– Frederic Bastiat, French economist(1801-1850)

11. Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.

– Ronald Reagan(1986) 

12. I don’t make jokes. I just watch the government and report the facts.

– Will Rogers

13. If you think health care is expensive now, wait until you see what it costs when it’s free!

– P.J. O’Rourke 

14. In general, the art of government consists of taking as much money as possible from one party of the citizens to give to the other.

– Voltaire(1764)

15. Just because you do not take an interest in politics doesn’t mean politics won’t take an interest in you!

– Pericles (430B.C.) 

16. No man’s life, liberty, or property is safe while the legislature is in session.

– Mark Twain(1866)

17. Talk is cheap…except when Congress does it.

–Anonymous 

18. The government is like a baby’s alimentary canal, with a happy appetite at one end and no responsibility at the other.

– Ronald Reagan

19. The inherent vice of capitalism is the unequal sharing of the blessings. The inherent blessing of socialism is the equal sharing of misery.

– Winston Churchill 

20. The only difference between a tax man and a taxidermist is that the taxidermist leaves the skin.

– Mark Twain

21. The ultimate result of shielding men from the effects of folly is to fill the world with fools.

– Herbert Spencer, English Philosopher (1820-1903) 

22. There is no distinctly Native American criminal class…save Congress.

– Mark Twain

23. What this country needs are more unemployed politicians.

– Edward Langley, Artist (1928-1995) 

24. A government big enough to give you everything you want, is strong enough to take everything you have.

– Thomas Jefferson

25. We hang the petty thieves and appoint the great ones to public office.

–Aesop 

FIVE BEST SENTENCES 1. You cannot legislate the poor into prosperity, by legislating the wealth out of prosperity. 2.What one person receives without working for…another person must work for without receiving. 3. The government cannot give to anybody anything that the government does not first take from somebody else.  4. You cannot multiply wealth by dividing it. 5. When half of the people get the idea that they do not have to work, because the other half is going to take care of them, and when the other half gets the idea that it does no good to work, because somebody else is going to get what they work for, that is the beginning of the end of any nation!

Courtesy: Anu, my IIM-B Classmate

Cheers,

Vijay Srinivasan

19th May 2012

Mumbai