Category Archives: Economics

Hope for Chennai’s recovery

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Ripon Bldg

The Chennai Municipal Corporation is divided into 15 zones, which include Manali, Royapuram, Anna Nagar, Alandur, Adyar and Perungudi, most of which were submerged after the incessant rains battered the city and triggered a civic, transport and communication infrastructure collapse. It has 200 wards, which have grown under it, since its humble beginings in the late seventeenth century. being the oldest Municipal corporation in India having started in 1695 almost 320 years ago, and has grown into the colonial Ripon Building. It hopes to deploy over 20,000 employees, and get help from surrounding corporations to clean up the mess. It is a herculean task for such an ancient corporation, and it needs all the help that we can give to it in manpower, trucks, loaders and civic garbage removal equipment.

Post clean up, proper reengineering of certain areas of the city is required to make Chennai a city capable of handling such a natural disaster. Engineering to allow water flows to remove excessive waters, by use of huge pumps like New Orleans at flood prone zones, and other diverting measures, from lessons learned in this last flood; should be implemented. We have to make Chennai into a modern city and remove the weaknesses in the civic center, by recognizing flood zones, and becoming better at draining them; using modern methods. The people of Chennai should demand this from their corporation as countless man-hours have been lost, which could have been used for better purposes. Climate change is here and if we do not change and adapt, then nature will change us.

In another sign of things to come India’s oldest IIT in Madras, had for the first time resort to using Skype to hold interviews for companies, which are not able to make it to the campus, for the placements. Internet video calling has come to IIT Chennai, and HR of major corporations; and I wonder if virtual reality, is next! New technologies are disrupting the most important human functions and interactions, such as hiring, which are major milestones in an individual’s life.

At a minimum we need to ensure fail-safe and secure information systems for a modern city. After the floods valuable lessons were learned, and now remedial measures can be implemented in a planned manner. We need the best minds to work on helping this great city.

We wish Chennai and its citizens a speedy recovery from this natural calamity, and hope for its corporations to emerge stronger at the end!

Will Paris be the beacon of hope?

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Bird at lake

A little bird told me that all the leaders of the world are gathered together after 5 years to discuss climate change. In Paris < 02, India initiated the Solar Alliance and will play a key part in its initiation at New Delhi. Metropolitan Delhi with 16 million people and the suburbs include another 9 million to total about 25 million citizens and growing rapidly, is one of those giant urban sprawls on earth; that defy imagination. It is now the most polluted city in the world, and in most measures way ahead of Beijing in a similar size. The need for green energy and clean transportation and mass transit for Delhi itself, should be paramount in any efforts, as the city has outgrown its infrastructure. Delhi has the highest level of the airborne particulate matter, PM2.5 considered most harmful to health, with 153 micrograms. Stopping its neighboring agricultural states from burning their paddy fields for the wheat field’s readiness, will reduce the environmental disaster, as the same can be better disposed off. We need modern machines and methods to improve the recycling of the bio mass, instead of burning it. Innovation also on an urban scale by roof use conversion and water harvesting and the cleanup and revival of the neighboring Yamuna River can go a long way for eco conservation. Green belt forestation so prevalent in traditional Delhi, must be revived, with massive investments, before this urban jungle dies without its lungs.

The future is in innovation and finding better wind/solar/nuclear/hydro/biomass solutions for energy and reducing our carbon footprint going forward across the world. It is anybody’s guess at the time as to how Modi’s Solar energy proposal for the 120 countries in the solar belt, will get the required funds to build giant solar farms. India also became a partner of Mission Innovation with numerous Indian Private Sector leaders wowing to support Bill Gate’s push on innovation, for new ways to solve the problem of Climate Change and energy consumption. “We will be proposing many new things. They are on cards.” We are talking of giga projects here of alternate energy that will reduce future human pollution into the air we breathe.

“China (is at) 29 per cent, US is second with 16 per cent, Europe third with 10 per cent and India at fourth with 5 per cent emission. “ As per the ET analysis current trends will balloon emissions, if our leaders do not take decisive action. India is just on the verge of increasing its energy footprint in one of the largest growth rates projected in the coming decades. It is increasingly coal, CNG and oil based for now with tankers of imports from Qatar and other trading partners feeding the needs of the hungry masses. Bihar almost a poster child for underdevelopment, is now the fastest growing state, as it has coal, iron steel and other industries to feed the nation. As Dams and canals to harness its ample water resources are built and its agricultural productivity increases through modernization, green development can spread in the land.

State Area km2 Population
Bihar 94,163 103,804,637
Germany 357,168 81,083,600
 It many be only a matter of time and investment that Bihar alone could rival Germany in the future if all the plans for rapid growth bear fruit!

Modern ports along the Arabian Sea and Bay of Bengal should adorn India.

Portal integration of modern logistics for freight,  automobile and passenger ferries along India’s ports has a huge scope. We need to use green methodology for Indian Ocean sailing and shipping and logistics by using clean diesel and renewable solar combinations. We have to augment existing road, rail and airports by making them green with wind, solar, biomass projects. The new Government is intent on improving Port infrastructure through the construction of a string of major ports around the Indian coast like a Samudramala. . These plans Port/Rail covered the linking of Mundra Port and Pipavav-Surendranagar, Hassan- Mangalore, Gandhidham-Palanpur and Bharauch-Dahej gauge conversion projects. These projects have added about 1030 km of rail lines also into the hinterland for better economic logistics, the official said. Many tens of thousand km more are required for a modern India, to match the developed countries.

Besides, railways have offered 400 stations to be redeveloped with private participation for improving passenger amenities inviting open bids from interested parties. This is a huge initiative that can spread best practices and improve services, using Private bidders, in an open electronic system. The model can then be rolled out to thousands of other stations to make clean green zones around these existing stations. Addition to India’s infrastructure by building these corridors of industrial and resource movements for energy and transportation, linking the land in an economic development, fueled by massive investments from the developed nations, to keep climate change at bay; is a must. We have to tackle this tough problem in our generation, as it cannot be allowed to fester and cause distress to future generations. The time to act is now after five years of waiting for Paris. There can be no turning back from this carbon loaded atmosphere, if we do not find a better way together; as it is well known that all living beings will suffer its terrible effects, on our mother earth soon.

Global trade must grow

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Rank Commodity Value in US$(‘000) Date of
information
1 Mineral fuels, oils, distillation products, etc. $2,183,079,941 2012
2 Electrical, electronic equipment $1,833,534,414 2012
3 Machinery, nuclear reactors, boilers, etc. $1,763,371,813 2012
4 Vehicles other than railway $1,076,830,856 2012
5 Plastics and articles thereof $470,226,676 2012
6 Optical, photo, technical, medical, etc. apparatus $465,101,524 2012
7 Pharmaceutical products $443,596,577 2012
8 Iron and steel $379,113,147 2012
9 Organic chemicals $377,462,088 2012
10 Pearls, precious stones, metals, coins, etc. $348,155,369 2012

The US trade deficit narrowed to $40.8 billion in September, down 15% from a $48 billion deficit in August, the Commerce Department reported Wednesday. The U.S. deficit with China rose 3.8% to an all-time high of $36.3 billion in September as imports from China hit a record. The U S dream is being fulfilled by Chinese factories it would appear, eager to satisfy the demands of the largest consumer society in the world. The mutually beneficial trade relationship has been one of the greatest eliminators of poverty in the world, as Chinese GDP rose at an unprecedented pace lifting millions out of poverty.

The fate of global growth sits on the buoyant shoulders of the American middle class’s ability to consume, beyond its means. Currently there are no signs of any of the high consumption years, as the consumer continues to increase our savings as a result of the fall in energy prices. The state of the economy is steady, and Christmas, should bring cheer all around. We can rest assured that the American consumers will open their purses to the world. Enough revenue will be generated from Black Friday to the holiday’s end to generate jobs all around the world.

It is the exports growth that is the true story here as manufacturing and infrastructure starts to pick up in the US. Public and private spending is required and finally the States and Center are starting to expand employment and projects. While the politicians in DC come to a stalemate, the business of the people must go on. The Trans Pacific deal could help to increase these exports for America. With our cheap gas and scope for renewal energy, the new industrial age is about to unfold in the US. Hydro carbons will find new uses as we move to a greener environment and climate change forces our hand on cheap coal.

There can be a steeply rising export curve for the US in the production, refining, producing, shipping products for the world’s hydro carbon needs. If DC does not get behind the proposal, do they really expect the world to sit back and wait, on what may in the long term be a good deal for all the countries? World trade will go on and with greater expectations from the general public, as there are no limits on human aspirations. Great industries will flourish on all sides of the Pacific and human needs will be met with greater efficiency. To increase international trade of the world is essential, to meet our future goals for humanity. Innovation and entrepreneurship will bring new prosperity to nations, who trade to their competitive advantage and the US must continue to lead the world in free trade.

New Delhi drug problem

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Delhi Law Minister Somnath Bharti said that “I feel like spitting on the face of leaders like Arun Jaitley who do not care about their own public being affected by drug intakes,” he said. “It is not my fault if there are pimps sitting in the Congress and the BJP,” said Bharti in an apparent effort to defend the AAM party’s record in power in New Delhi. The law and order situation is of course not under his control but of the lieutenant governor in this strange arrangement in the city. So Mr. Bharti is excusing the deteriorating situation on everyone around him, and has no immediate plans for improvements, or actions being carried out to bring civility and service to New Delhi. A modern city has to be more effective in carrying out the law.

It is a case of mistaken municipal boundaries and jurisdictions, which are the comedy of what New Delhi; has become. It is a wonder that everything works as well as it does, in spite of all the municipal, State and central organizations, playing their separate parts. Surrendering your public to drugs is clearly a misappropriation of justice, no matter which way you look at it. No excuse for allowing this cancer to fester in a modern city and Mr. Bharti should pound more on the how instead of the why not’s. Vague accusations against leading statesmen do not help this serious cause. Neighboring states are encouraging the outlaw behavior further by being an easy conduit, compounding the problems of drugs slowly spreading in the streets of New Delhi. Vigilance and security need commitment from the Law Minister to go forward in this war, just as the graph shows the drug war in the US, needs constant political commitment..

The energy dilemma

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Finally the growth of renewable energy outpaced that of fossil fuels in the electricity sector last year, with a record of 135 gigawatts of capacity added from wind, solar, hydro-power and other natural sources, a new study by REN21 in Paris, shows. China the leader in coal use today, is becoming the leader in renewable energy now. Globally every day in 2014, seven billion people were gorging on 15 million tons of coal, 92 million barrels of oil, 328 billion cubic feet of natural gas, 200,000 kilograms of uranium and millions of hectares of wind farms, solar panels, forests, cornfields and hydroelectric reservoirs as per a BP study.

Each percentage point of energy’s primary source market share (coal, oil, nuclear, wind, solar, bio fuels, geothermal, etc) is worth hundreds of millions of dollars a year. The stakes are enormous and the market leaders will fight for each point of share, as the demand will continue to boom. Developing countries will increase production to meet the demands of their energy starved citizens, choosing the cheapest alternatives. The good news is that overall energy intensity has stepped down again, which means that a dollar of GDP needs 15 per cent less energy to transact today, than only five years ago.

With a billion people India is just embarking on its coal build out, while nuclear, and other green sources will also grow. Germany is the clear leader in Europe and the US is just limbering up for the fight, with its dystopian public policy and rhetoric, as opposed to ground reality. The G7 may want to go to an alternate energy model by the 21st century but for that to happen, current transportation and heating and cooling of cities are unsustainable and will have to change. Just like the move from wood to coal in the 18th century and from coal to oil in the 20th, we have a lot of work to do in the next few decades.

In the absence of a giant catastrophe that reduces billions of our population, we will have to plan to meet the needs of our young, in a growing population. The next generations need our commitment to reduce waste and improve energy efficiency, while at the same time reducing greenhouse emissions. Climate change will have unintended consequences wiping out many species of flora, fauna and other living beings. As intelligent beings we have to look beyond our own selfish needs, and ensure the Earth is kept as pristine as possible, for life to evolve properly. We will become the dinosaurs of the 22nd century, if we cannot overcome our technical, financial and social problems and resolve our energy needs in an Eco-friendly manner. Disruptive technology is the need of the hour, whether it is fusion, or thorium based nuclear, better bio-fuels, solar, wind etc. and our best brains should be engaged in this race. The survival of humanity is at stake.

Having always had great respect for the Jesuits, it is good to see that Pope Francis, the first Jesuit Pope, using science. When Rick Perry (Republican candidate) said that pronouncements on Climate change, are best left to the scientists; he is perhaps forgetting that the head of his Catholic church, is a trained chemist, and knows what he is talking about. Energy for our future generations is one of the biggest dilemma’s we face and the hard decisions we face today, will shape our future earth and our very survival. May the greening of our energy continue, with greater disruptions in consumption, production and storage.

New Gang of four

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Country Share of Contribution to
Global GDP Growth
—   World 100.0%
1  United States 19.5%
—  European Union 19.1%
2  China 11.4%
3  India 5.1%
4  Japan 4.0%

BNY Mellon Cox’s newest simulation assumes Japan manages to average growth of 2 percent for the rest of this decade, the U.S. 3 percent, China 7 percent and India 8 percent. He says that if this Gang of 4 starts to fire on all four cylinders, then we could see another $ 10 Billion added to the group’s GDP by 2020. This is not an unrealistic scenario as the current leaders Abe, Obama, Xi and Modi are all pushing for better trade treaties and greater growth. In fact these targets may be exceeded if we can only keep war at bay, and not allow any economic shocks to develop.

The banks and the largest corporations have survived the Great Recession, and have learnt a valuable lesson, and their balance sheets are stronger now. The consumer is more willing to spend, and create the demand, that growing industrial companies and service corporations will provide. There is an opening up of trade and commerce, and the next cycle of cheap manufacturing for the masses, is about to start in India. The newly created billions of consumers in Asia will become a driving force, and the young generations will develop the next smart cities, and mass transportation systems.

In my optimistic view these numbers can be surpassed with cheaper fuel costs and greater use of Green energy to save the environment. There is so much demand for green housing, higher education, better skill training, improving healthcare, more geriatric care and improved logistics, that nation building can go on for decades. We just need to balance incomes so the poor can become self-sufficient, and productive citizens. Current disparity if it continues will lead to Larry Summers ‘secular stagnation’ and we will not benefit from a growing middle class. Greater opportunity and greater trade and commerce is the only way out of this morass of low growth. Financial inclusion for the poorest of the poor, is the cry of the hour.

The time is now ripe as we have abundant resources and technology to take humanity, to the next level of existence. With a well-oiled economic engine, we can expect current growth; to create more savings and investments, in a virtuous spiral of growth. We are all in this together and if the stars align, then the new leaders will take the steps to create the right political and social environment, for this economic miracle to take place. I welcome all steps in the direction of human development and peace and prosperity for all. May the next decades be the time, for the emergence of this unlikely  gang of four; to rise to their pinnacle. We look forward to finally eradicating poverty, and bringing human equality, prosperity, dignity and well being to all our citizens.

Wealth creation for masses

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World Wealth Report: 2.8nm Indian HNIs, Yet 90% Population in Lower Income Bracket

RBI, Deputy Governor, S S Mundra says, “according to census 2011, out of 24.67 crore households in the country, only about 14.48 crore or 58.70 % households had access to banking services. Further, of the 16.78 crore rural households, only about 9.14 crore or 54.46 % households were availing of banking services.”

“The World Bank Findex Survey (2012) points out that only about 35% of Indian adults had access to a formal bank account and a meager 8% borrowed formally in the last 12 months,” says Mundra.

Historically even Lord Curzon vexed by the bureaucratic Indian Banks observed, “In respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments.”

In 1960, the State Banks of India was given control of eight state-associated banks under the State Bank of India (Subsidiary Banks) Act, 1959. These are now called its associate banks. In 1969 the Indian Government nationalized 14 major private banks. In 1980, 6 more private banks were nationalised. These nationalised banks are the majority of lenders in the Indian economy. They dominate the banking sector because of their large size and widespread networks.

My request to India’s finance Minister is that when Indira Gandhi nationalized the banks and the Insurance Companies, it was for the purpose of ‘Garibi Hatao’ or the reduction of poverty, for the masses and the proletariat. If this is the property of the poor, then the time has come to return their property back to them. We now have the technology, microfinance systems and means; to finally bankroll the biggest financing and banking endeavor at an individual digital level. Do the greatest good by unleashing the power of the citizens, for the long term improvement, of the largest proletariat, of poor citizens in our history. Divest all the banks and lend all the money back to the poor and the needy, and let them decide what entrepreneurship they want to follow, to improve their lives. Human ingenuity knows no bound and unleashing its potential, is the greatest duty of its government.

The government has long tried its hand at Banking, Insurance and Finance, and it is time now for the people to learn and use what is theirs. Electronic banking can spread to the most remote digitally identified persons, who can borrow small loans, to take up a livelihood or trade. Whether it is the soon to be millions of urban poor, or the needs of the largely disguised unemployed in the rural sector, this money has been put in trust, for their use. This trust can now be upheld and the minister can prove himself trustworthy by disinvesting all these banks and insurance companies, and investing the proceeds in the modern schemes; of direct deposits, and microloans for over five hundred million citizens.

By husbanding this wealth in government hands, and not to let lose its benefits on the people who need it the most today, would be foolhardy and make little economic sense, or policy. The policy should be the greatest good at the fastest pace, and in the most efficient manner possible, for and by the people. It is time for the people to rise, and for the government to stand aside, and let it happen. The government can be a facilitator, but not the creator of wealth. The wealth belongs to the people, and they have first right on how to use it. We have the old socialists’ leftist parties in the opposition clinging on to an idea whose time has come and gone. The model of the Government being the “Ma Baap” of its citizen, crumbled with the Berlin wall, and China’s affirmation that it is glorious to be rich.

While my example talks only of Banking and Finance the whole communication revolution of digitized media is going to be the greatest enabler for India’s citizens. As the Minister for Information & Broadcasting it helps, as the digital revolution of providing information, and enabling broadcasting; is the base, for any digitally enabled economy. The example can be safely extended to Railways, Highways, Industry, Commerce and other areas where the government has no business being in any longer, and they should be allowed to grow on their own. The greatest fire sale in India, of its so called Public Enterprises; will go a long way in enabling the current government, to meets its new investment and developmental goals.

The goals for the country are economic and financial equality like the Nordic nations rumored to be amongst the happiest in the world. All the people’s money should now be invested in health, education, housing and infrastructure with the government as an investor and enabler. The people will grow the wealth, as they alone know how to do it. Given the knowledge and technology of the modern world, seamless digital transactions; will allow for the raising from poverty, of India’s masses. Just like China has achieved in the past decades, India can also continue to have a double digit growth for decades. Only India’s policy and methodology should not be central controlled, but pass to a million points of light. It is the people’s land and they will husband it and grow it, and make it fruitful, and you are only a custodian; of their wishes.

Sell everything that is publicly held, and convert that into the greatest private investment in the world. To lend a $ 1,000 to five hundred million people you only need fifty billion dollars. A Keynesian behemoth of spending, of this this size; by depositing these sums directly into individual accounts, will transform India for ever. The thing is that it does not have to be done all at once and can be spread out over decades. These private investments will grow well over the rate of inflation, given the growth potential, of the young population. This initial seed money, can grow exponentially over the century; to truly make India, into what it can be as an economic power.

For centuries the villages of India have been treated as the forgotten masses. For all the talk precious little was achieved in raising financial inclusion through education or technology. Now a simple mobile phone can become the vehicle of mass inclusion. Numerous new finance organizations in existence in Africa and elsewhere can now provide a loan within an hour to deserving candidates. A unique identifier for each citizen coupled with this new credit will allow each one to prosper, at his or her own pace. The multiplier effect of this mass infusion of capital; into a largely landless labor, will have a very beneficial impact, on the gross domestic product. Consumption will rise, and demand will go up; in an economically beneficial and ever expanding spiral.

At the same time the privatization of public enterprises, will allow for further innovation and improvements, in the disinvested large corporations; who will be free to grow, and become more efficient and better corporations. Foreign investments will pour in, as the diaspora and its friends learn of the new economic miracle, about to be unleashed in human potential. The direct growth in consumer consumption will allow for more expansion of the economy. For double digit growth we need transformation of the current finacial, insurance, mining, industrial and logistics, into a modern infrastructure built by the best engineering talent, and not bureaucrats living out their tenure. We can grow the talent as we have so much youth, and need to invest in them and not for them. You are the guardian of a great wealth, and as per the doctrine of parmo dharma, it is best to invest in the citizens, whose karma will make the new India.

Let me explain what will happen. Rural individuals engaged in agriculture will be able to buy their seeds, fertilizer, agricultural implements and sell their produce directly, without any middlemen taking their share of the profits, and making the systems inefficient. Those not actively engaged directly in agriculture, will be able to enter into trading, or providing services, required elsewhere. These will be the hidden labor that will become available to make the modern India. The industrial workers and the builders of the infrastructure and cities will come from these individually enabled citizens. Development needs great sacrifices and discipline and the government should provide better governance, defense and law and order. Get out of the people’s business, while it is still time, and let people live in a just and free society, or face a future of their unfulfilled dreams.

Pradhan Mantri Jan Dhan Yojana is only a small step in this direction and there is a lot of work to be done, to make a secure digital transaction system using mobile. This has not been tried before on the scale that India requires, but that is the beauty of new technology, which is easily scalable. A lot of it can be free funded by advertising, from the consumer goods and technology giants, which will help fund this new revolution. As money flows to the poorest of the poor, we will all benefit, for financial inclusion is the only way forward.

Art is life

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Women of Algiers

“Picasso’s 1955 oil painting, “The Women of Algiers (Version 0),” sold for $179,365,000 after more than 11 minutes of furious bidding from telephone buyers at a packed auction room at Christie’s. “ reported the Economic Times. In our modern times great wealth has become so anonymous, that it is hushed voices, heard over the conference telephone bidding on priceless works; to be preserved, for their private viewing. At no time has the contrast between the rich and poor been so great in our recent history and the have nots can only hope for a decent dinner before bed, if they get lucky.

I love the painting, as it is truly remarkable how the vision of the artist; sees our world, in so many dimensions and colors. The women are so wonderfully posed in their leisure as they await life. Sensuality runs rampant and the imagination comes alive, to what they must be thinking, as they live their exotic ways. It is one of his best compositions, for that special period; when he surprised the world by taking his art, into a new way of representing the human figure. The interwoven geometric designs, blend together; in a riot of shapes and this three dimensional peeking, comes with great delight for the beholder of these beautiful women. Depth and perception have been mastered, and one can get lost into the heart of the piece; trying to find, its deeper meaning, from this wonderful artist, who lived life in its fullest measures in many ways.

I am no art critic but the stupendous out pouring of serious money for these small canvas pieces runs into billions of dollar. This is at a time when billions are malnourished and hungry and art may be the last thing on their minds. Prices are very strong right now as Christie’s auctioneer says that they cannot find enough masterpieces, to sell for the rich and famous. So it looks like the rich continue to get richer and the poor are not seeing the trickle down effect and in fact are being pushed further away from a civilized life. The ‘Women of Algiers’ is just an example of what is happening in our crazy world. Their juxtaposed body parts reflect our crazy world like no other, and we can see what the artist saw and painted. It is a mirror of our modern world where everything is now divided into the ones who live in luxury, and the ones who are driven to despair by their life.

Double digit GDP growth

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GDP Growth rate in the world between 1990 to 2007

” Indian Economy is now clearly on a recovery path with a 7.4 per cent growth in the first three quarters and the new government is committed to maintain overall macroeconomic conditions on a sustained basis,”Indian Finance Minister Arun Jaitely said.

With aims of restraining inflation to around 4 % for the next three years, and a reduction in India’s current account deficit (CAD) which, declined sharply from 4.8 per cent of GDP in 2012-13 to 1.7 per cent in 2013-14 and is expected to decline further to 1.3 per cent in 2014-15. We need rapid disinvestment, as without it the investment in the future for Smart Cities, Industrial corridors along Railroads and National Highways is not possible. We need to bring industrial manufacturing to the rural areas to provide employment, and for that the state must pass the land bill.

With millions of employable people mushrooming from these rural areas in the coming decades, the states must provide great employment opportunities, by allowing private entrepreneurial ‘Make in India’ initiatives. With Mudra and the financial inclusion of hundreds of electronic millions into the economy, with micro financing, and direct deposit of social benefits; a new social good, is being achieved. There is an opportunity to tie in health and social security into the fastest digitization of Bank Accounts for hundreds of unbanked millions. With 300 million people landless in the rural sectors, these corridors will provide the employment; for these poor and deprived unemployed, in the countryside. Without these new employment opportunities they will end up and be treated as migrant labor, so it is best to bring jobs and skills to them, rather than cause a mass exodus.

Urbanization is not the only solution for modern living, but at the same time the rural land has to be converted; into these new industrial, and modern hubs. The more investment from a current account surplus, through widespread disinvestment; in the public sector, is required to boost the economy. Investment in infrastructure can only come from the state, if it generates a surplus, for the advancement of its people. Modi and Jaitely have been at major International nations recently in a display of Indian thinking today. They have pledged their intent to improve the economy with concentrated effort to make it simpler, economical and faster to Make in India. The government is open to business and will be an enabler instead of a procrastinator and a better rating is the result.

Mr. Modi has just concluded the best long term deal for Green energy by going nuclear for a billion people. With long term uranium commitments from Canada India can plan to provide electricity down its corridors in a reliable manner by including, hydro, solar, wind and biogas into the mix. The challenges are uniquely Indian as Mahatma Gandhi had pointed out that India lives in its ½ million villages. Unless we provide income, sanitation, irrigation and power to these villages from green projects India will become dependent on its abundant coal resources which it is starting to unleash. Coal will still be a mainstay of India’s immediate energy needs, but it is a cause of pollution and global warming.

Modi and Jaitely are both promising the new normalization of foreign and domestic investments, into GDP rate of annual growth of double digits, for decades in India’s future. The number is not plausible right now, but just the thought process is different; from ex Finance Minister Mr. Manmohan Singh’s under Narasimha Rao PM opening in 1991. They had struggled with a balance of payments crisis and a growth of 5% and more had looked good from their perspective, after the anemic Hindu rate of growth since Independence. A rate of 5-7% today, will not be enough for providing the jobs and growth required. The demographic dividend from South Asia is an opportunity for India to provide leadership, skill sets, and employment, by rapidly increasing manufacturing and energy. Qatari LPG and Iranian Oil can supply India for most of its immediate needs. Long term contracts with strategic pipelines should be built for these supplies and the infrastructure to build for transportation, refining and distribution of petroleum energy. India has the technology that south Asia needs, in one of the greatest growth stories that is about to unfold; as the next middle class of millions emerge, similar to China’s growth in the past decades.

A lot of things need to administratively, legislatively and judicially come together for India to attain its true potential. So far it has been just the start with the first year of the new economic thinking and a lot of work still remains to be done. Given time it should yield rich rewards, if the new leaders can keep their promises. While the euphoria of the BJP victory and Modi wave, may be subsiding, it is now up to these leaders, to forge a new reality; by simplifying and allowing into action the work of a million entrepreneurs. The time has come for the rise of a new India to seek its destiny, as the fastest growing nation on the planet. After a long time we have the visionaries who can take India in a new direction. Having forsaken my citizenship, I never thought that I would ever say again, that I am proud to see articulate Indian leaders, showing fearless leadership on the world stage.

Negotiating sincerely

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To quote today’s Wall Street Journal “Mr. Obama negotiates more sincerely with Ayatollah Khamenei than he does with Congress.” The P5 +1 powers are racing against time as the 75 year old Iranian leader is suffering from Prostate cancer to get the Nuclear deal signed, as once he passes away all bets will be off, as to who will come to power in Iran.

The Congress has been racing against time to repeal the law of the land in Obamacare and slip in abortion provisions in otherwise necessary legislation. According to Paul Krugman the new Republican budget proposals will be a giant transfer of wealth from the poor and middle class to the 1%. As all actions of the Obama administration are suspect from the get go and considered overreach at best and unconstitutional at worst, this kind of fear mongering is uncalled for. Let sensible and clear spending legislation be prepared by Congress and let the President sign it, so the country can go about its business to repair its ailing infrastructure.

Holding up worthy appointees like Ms. Lynch for Attorney General will not aid the country or its business. Who is not negotiating in good faith is a question everyone outside the beltway can see, except for Congress and its baiters like the Journal, urging ever more divisions in faith, in an already fractured house. Sincerely the journal has sensationalized a la Mr. Murdoch the uber journalist and given no constructive opinion, and only added fuel to a raging fire. We deserve better from our elected representatives and the so called free press.