You have lived in a property for centuries through your lineage. Consider your house, full of your kith and kin, where you were born, where you brought your bride, where the first son was born, your sisters were married off, where you lived through, in your twilight years, is being taken over for ‘Development’. The seedlings you got from Haridwar, Nanital, Amroha, and many other places, the lush Alphanso mango tree which was planted by your grandmother 60 years ago, are all going to bite dust. You are going to be uprooted from your own house, from your moorings. Your neighbourhood held many of your friends, relatives, and your favourite sojourn in the evening where your idle pastime was gossip about people who were long dead and who’s some famous gestures were imprinted on your mind, etc. The Government authorities are trapped in a web of complexities, seeking solutions here and there, without doing arithmetic or planning to foster development. They do not understand your pain. Your anguish. Instead of reducing a lot of grief and gripe, they are adding misery to the old and uncared citizen of India in the name of Developmental Planning.
Right to Property was a fundamental right appearing in Chapter III of the Indian Constitution under 3.17 when the Constitution was adopted. In the same Chapter, under Serial Nos 25 to 36 appear Directive principles. The founding fathers remarked that the ‘aspirations of renascent India were secure in the justicable Fundamental Rights and non- justicable Directive principles’. But by bringing in the 44th amendment, “Right to Property” ceased to be a fundamental right. The reason for introduction of 44th Amendment was due to the fact that though Article 31 B and 9th Schedule [to keep them secure from attack on the ground that such enactment or a provision thereof is inconsistent with any provision of Part III of the Constitution] gave protection to Government against judicial intervention. However, time and again, the Supreme Court in various cases brought in synthesis of Fundamental rights with Directive principles. They held that Directive Principles effectuate Fundamental Rights. The ‘theory that Parliament had no right to change the basic structure of the Constitution’ was enunciated by the Supreme Court in the Keshavananda Bharati Vs state of Kerala. But the judgment did not clarify what the ‘basic structure was’. However, Supreme Court clarified that the ‘scope of certain fundamental rights could be adjudged reading into them or reading them not only in the light of Directive Principles of State Policy but also international covenants or covenants which were harmony with the Fundamental rights.” Supreme Court conferred itself the Right of Judicial Review. Government’s contention was that Directive principles in Art 39(b) and 39(i) had edge over Fundamental rights, in pith and substance, as the welfare state can be created only through the sphinx of development.
Under Article 300 A, Right to property is a Constitutional Right, but not a Fundamental right. Government is of the strong opinion that ‘Directive Principles’ were conscience and core of the Constitution, even though the Constitution makers were of the firm view that ‘Fundamental rights’ gave meaningful and efficacious value to Liberty, Equality and Fraternity.
Recently, in a case involving acquisition for a lay-out, Supreme Court was aghast that there was no proper or adequate survey and meticulous planning undertaken before embarking on discriminate acquisition using emergency provision of notification of areas; it wondered the nature of public cause espoused by the acquisition and why it was done, what is the area needed for the lay-out, and why after notification some areas were deleted?; why payment of compensation was low, and parameters on which it was arrived,etc. The Court queried on the rehabilitation programme of the evictees and time-frame to complete the process. It wanted to know whether the lay-out benefited the Society or benefited an individual. Supreme Court drew a parallel between Public and Private Cause and wondered in the case of private parties, the land losers would be feeling that precious land was taken away for exploitation by somebody when they were deprived of livelihood opportunities. Is this development or empowerment? The losers of land should be made beneficiaries of the acquisitions, opined Supreme Court. It also suggested that the Law Commission update the century old Land Acquisition Act 1894.
India unfortunately has no Rehabilitation and Resettlement Policy, even though a Bill piloted by the Rural Development Ministry was introduced in the Lok Sabha on Feb 24, 2009 and lapsed. No body is overly concerned about brushing off the indigent, on whose way of life, culture and livelihood, the land grab mafia wants to trample. In the name of planned development, involuntary dislodgment must have displaced around 50 million persons and even 1/4th of them have not been properly settled. Commercial calculations about the land acquired should be based on actual / notional loss and not arbitrary. The Navy acquired around 20,000 acres of land across the Arabian Sea at Karwar, and no compensation was even considered for small sized fisherman who fished on the periphery of the Arabian Sea. As Sardine and Mackerels bred at this coast during monsoons, this was a vulnerable area for catch of Sardines and Mackerels. All that fishermen got was a ban near to the coast, as naval operations were confined to this area. No protective umbrella for rehabilitated families. They are up-rooted and put in a place often where the land is follow or barren. Adequate cost-to-cost compensation is not arrived at. Their socio-economic and cultural infrastructure and quality of life are no more the same. There must be a percentage of expenses in the R&R included in the Project Cost.
International Covenant on Economic Social and Cultural Rights, 1966(ICESCR) has formed a set of Rights regarding taking over of land. “Where the resources of the nation are involved, a question of priority arises, the remedy cannot be judicial. Concept here is not justifiability at the instance of individuals in Courts of Law, but the concept is one of enforceability which means State must make justifiable and equitable legislation. (Para 10, General Comment No 3 of 1990 of the US Committee on Economic, Social and Cultural Rights)”
It is in this context, the attachment of many of our ancestral houses for ‘Development’ has to be looked at. When I am displaced, I should be given the facilities equal to or in lieu of what I have enjoyed and in similar surroundings. Otherwise, the private lands must not be taken over, but public, follow and Government lands can be used for acquisition.
Saturday, May 22, 2010
World's wealthiest Men
Often we talk about the disparity between the ‘haves’ and have-nots’. World’s devastating economy continues to be morbid. It does not get shaken by the Sheiks and other world class wealthy people whose rankings are announced by a magazine called ‘Forbes’. It is ambitious for the rich and the mighty to get a ranking in it. It proclaims one’s status as a rich man in the World.
The billionaire Club has been decreasing like Law of Diminishing Returns. Yesterday’s billionaire is today’s ‘ex-billionaire’. This Club has taken the severest hit in the past 15 months more than any other year since the Magazine started grading the richest to the rich. The total number of Billionaires around the globe plunged to a new low from a record number of 1125 in the beginning of 2008 to around 793 in March 2009. This decline of 332 billionaires in a year worked to 29.5%. The Net Present Worth of world’s billionaires dropped from $ 4.4 trillion (in 2008) to $ 2.4 trillion, the percentage of rate of decline @ 45.4%. This translates to a per capita wealth per billionaire @ $ 3 billion, a steep decline of 23% or a per capita drop of $ 910 million (against 2008 figures)
At least 373 people joined the ranks of "ex-billionaires" (355 as a result of business misadventures or declining asset values and 18 who died), while only 41 climbed onto the billionaire band wagon which included 38 newcomers and three who regained spots on the 10-figure list they'd lost earlier..
Indeed, the analysis carried out by Forbes clearly indicates real estate as the villain of the piece in reducing the ranks of billionaires, with more than 250 of the "2008 billionaires " registering substantial losses due to shrinking property values, which also accounted for drop in net worth among many of those who stayed on the list. When the property market crashed Ramesh Chandra's NPW (Net Present worth) plunged from $9.6 billion to just $600 million. Real Estate also played a crucial role in the depletion of wealth of India’s biggest loser Anil Ambani who was ranked No 6 in the 2008 list with a NPW of $ 42 billion. Real estate massive losses, which accounted for 76% of his fortune, left him with $ 10.1 billion and a ranking of 34 in the 2009 list.
29 of the Indian billionaires who figured in the list during 2008 lost their ranking while the remaining 23 of the 24 still on the list had diminished NPW. Russian billionaires figured in the hit-list with 55 of the 74 knocked out of the list while the remaining 19 with decreased wealth stood in the list due to inclined and depressed markets in metals, minerals, and other natural resources including gas. Mikhail Prokhorov, the richest Russian who still figures on the current list was ranked 40 with a fortune of $ 9.5 billion. The other six Russians who were in the top fifty dropped out of the list as their wealth depleted to below $ 1 billion.
United States became the greatest causality with 110 billionaires losing their rankings.
New York City alone lost 16 billionaires while media driven fortune of Micheal Bloomberg notched up $ 16 billion (from $ 11.5 billion 2008) to get listed at number 17 from his previous 65. Twenty-eight of the Manhattan billionaires who dealt in hedging funds lost their rankings while 11 managed to hold on to the list.
Among the celebrities, television giant Oprah Winfrey with a present worth of $ 2.7 billion. Designer Ralph Lauren with 4 2.8 billion and jetsetter Richard Branson with $ 2.6 billion managed to stay on the list. Dallas Mavericks (Mark Cuban) recorded his wealth at $ 2.3 billion while jerry Jones net worth came down to $ 1.3 billion as he ended up at the 559th spot in the Forbes List of Billionaires. Wang Chuanfu of China’s was a fresh entry (seller of electric cars in China) with a recorded wealth of $ 1.4 billion. He joins the illustrious band of 23 Chinese billionaires. . Germany’s Aloys Wobben (windmill manufacturing) found his way into the list with a record net worth of $ 3.5 billion. The top ten honours went to Bill gates ($ $ 40 billion), Warren Buffet ($37 billion), Carlos Slim Helu (Mexico)($35 b), Lawrance Ellison(422.56), Ingvar Kamprad(Sweden)($ 22.6 b), Karl Albrecht(Germany)($21.5 b), Mukesh Ambani (Ind)($19.5b), Lakshmi Mittal(Ind)($19.3b), Theo Albrecht(Ger)($18.8 b), Amanico Ortega(Spain) ($18.3 billion) [Courtesy: Forbes Magazine] Even though the list made surprising ups and downs for some, elimination for some others, the addition of 38 new billionaires to the diminutive group of billionaires may send comforting signals. 2008-9 will go down in history as the Year of Economic disaster. Will hope gather momentum in 2010? We will wait and watch.
The billionaire Club has been decreasing like Law of Diminishing Returns. Yesterday’s billionaire is today’s ‘ex-billionaire’. This Club has taken the severest hit in the past 15 months more than any other year since the Magazine started grading the richest to the rich. The total number of Billionaires around the globe plunged to a new low from a record number of 1125 in the beginning of 2008 to around 793 in March 2009. This decline of 332 billionaires in a year worked to 29.5%. The Net Present Worth of world’s billionaires dropped from $ 4.4 trillion (in 2008) to $ 2.4 trillion, the percentage of rate of decline @ 45.4%. This translates to a per capita wealth per billionaire @ $ 3 billion, a steep decline of 23% or a per capita drop of $ 910 million (against 2008 figures)
At least 373 people joined the ranks of "ex-billionaires" (355 as a result of business misadventures or declining asset values and 18 who died), while only 41 climbed onto the billionaire band wagon which included 38 newcomers and three who regained spots on the 10-figure list they'd lost earlier..
Indeed, the analysis carried out by Forbes clearly indicates real estate as the villain of the piece in reducing the ranks of billionaires, with more than 250 of the "2008 billionaires " registering substantial losses due to shrinking property values, which also accounted for drop in net worth among many of those who stayed on the list. When the property market crashed Ramesh Chandra's NPW (Net Present worth) plunged from $9.6 billion to just $600 million. Real Estate also played a crucial role in the depletion of wealth of India’s biggest loser Anil Ambani who was ranked No 6 in the 2008 list with a NPW of $ 42 billion. Real estate massive losses, which accounted for 76% of his fortune, left him with $ 10.1 billion and a ranking of 34 in the 2009 list.
29 of the Indian billionaires who figured in the list during 2008 lost their ranking while the remaining 23 of the 24 still on the list had diminished NPW. Russian billionaires figured in the hit-list with 55 of the 74 knocked out of the list while the remaining 19 with decreased wealth stood in the list due to inclined and depressed markets in metals, minerals, and other natural resources including gas. Mikhail Prokhorov, the richest Russian who still figures on the current list was ranked 40 with a fortune of $ 9.5 billion. The other six Russians who were in the top fifty dropped out of the list as their wealth depleted to below $ 1 billion.
United States became the greatest causality with 110 billionaires losing their rankings.
New York City alone lost 16 billionaires while media driven fortune of Micheal Bloomberg notched up $ 16 billion (from $ 11.5 billion 2008) to get listed at number 17 from his previous 65. Twenty-eight of the Manhattan billionaires who dealt in hedging funds lost their rankings while 11 managed to hold on to the list.
Among the celebrities, television giant Oprah Winfrey with a present worth of $ 2.7 billion. Designer Ralph Lauren with 4 2.8 billion and jetsetter Richard Branson with $ 2.6 billion managed to stay on the list. Dallas Mavericks (Mark Cuban) recorded his wealth at $ 2.3 billion while jerry Jones net worth came down to $ 1.3 billion as he ended up at the 559th spot in the Forbes List of Billionaires. Wang Chuanfu of China’s was a fresh entry (seller of electric cars in China) with a recorded wealth of $ 1.4 billion. He joins the illustrious band of 23 Chinese billionaires. . Germany’s Aloys Wobben (windmill manufacturing) found his way into the list with a record net worth of $ 3.5 billion. The top ten honours went to Bill gates ($ $ 40 billion), Warren Buffet ($37 billion), Carlos Slim Helu (Mexico)($35 b), Lawrance Ellison(422.56), Ingvar Kamprad(Sweden)($ 22.6 b), Karl Albrecht(Germany)($21.5 b), Mukesh Ambani (Ind)($19.5b), Lakshmi Mittal(Ind)($19.3b), Theo Albrecht(Ger)($18.8 b), Amanico Ortega(Spain) ($18.3 billion) [Courtesy: Forbes Magazine] Even though the list made surprising ups and downs for some, elimination for some others, the addition of 38 new billionaires to the diminutive group of billionaires may send comforting signals. 2008-9 will go down in history as the Year of Economic disaster. Will hope gather momentum in 2010? We will wait and watch.
Thursday, May 20, 2010
Billionnaires' club shrinking?
Often we talk about the disparity between the ‘haves’ and have-nots’. World’s devastating economy continues to be morbid. It does not get shaken by the Sheiks and other world class wealthy people whose rankings are announced by a magazine called ‘Forbes’. It is ambitious for the rich and the mighty to get a ranking in it. It proclaims one’s status as a rich man in the World.
The billionaire Club has been decreasing like Law of Diminishing Returns. Yesterday’s billionaire is today’s ‘ex-billionaire’. This Club has taken the severest hit in the past 15 months more than any other year since the Magazine started grading the richest to the rich. The total number of Billionaires around the globe plunged to a new low from a record number of 1125 in the beginning of 2008 to around 793 in March 2009. This decline of 332 billionaires in a year worked to 29.5%. The Net Present Worth of world’s billionaires dropped from $ 4.4 trillion (in 2008) to $ 2.4 trillion, the percentage of rate of decline @ 45.4%. This translates to a per capita wealth per billionaire @ $ 3 billion, a steep decline of 23% or a per capita drop of $ 910 million (against 2008 figures)
At least 373 people joined the ranks of "ex-billionaires" (355 as a result of business misadventures or declining asset values and 18 who died), while only 41 climbed onto the billionaire band wagon which included 38 newcomers and three who regained spots on the 10-figure list they'd lost earlier..
Indeed, the analysis carried out by Forbes clearly indicates real estate as the villain of the piece in reducing the ranks of billionaires, with more than 250 of the "2008 billionaires " registering substantial losses due to shrinking property values, which also accounted for drop in net worth among many of those who stayed on the list. When the property market crashed Ramesh Chandra's NPW (Net Present worth) plunged from $9.6 billion to just $600 million. Real Estate also played a crucial role in the depletion of wealth of India’s biggest loser Anil Ambani who was ranked No 6 in the 2008 list with a NPW of $ 42 billion. Real estate massive losses, which accounted for 76% of his fortune, left him with $ 10.1 billion and a ranking of 34 in the 2009 list.
29 of the Indian billionaires who figured in the list during 2008 lost their ranking while the remaining 23 of the 24 still on the list had diminished NPW. Russian billionaires figured in the hit-list with 55 of the 74 knocked out of the list while the remaining 19 with decreased wealth stood in the list due to inclined and depressed markets in metals, minerals, and other natural resources including gas. Mikhail Prokhorov, the richest Russian who still figures on the current list was ranked 40 with a fortune of $ 9.5 billion. The other six Russians who were in the top fifty dropped out of the list as their wealth depleted to below $ 1 billion.
United States became the greatest causality with 110 billionaires losing their rankings.
New York City alone lost 16 billionaires while media driven fortune of Micheal Bloomberg notched up $ 16 billion (from $ 11.5 billion 2008) to get listed at number 17 from his previous 65. Twenty-eight of the Manhattan billionaires who dealt in hedging funds lost their rankings while 11 managed to hold on to the list.
Among the celebrities, television giant Oprah Winfrey with a present worth of $ 2.7 billion. Designer Ralph Lauren with 4 2.8 billion and jetsetter Richard Branson with $ 2.6 billion managed to stay on the list. Dallas Mavericks (Mark Cuban) recorded his wealth at $ 2.3 billion while jerry Jones net worth came down to $ 1.3 billion as he ended up at the 559th spot in the Forbes List of Billionaires. Wang Chuanfu of China’s was a fresh entry (seller of electric cars in China) with a recorded wealth of $ 1.4 billion. He joins the illustrious band of 23 Chinese billionaires. . Germany’s Aloys Wobben (windmill manufacturing) found his way into the list with a record net worth of $ 3.5 billion. The top ten honours went to Bill gates ($ $ 40 billion), Warren Buffet ($37 billion), Carlos Slim Helu (Mexico)($35 b), Lawrance Ellison(422.56), Ingvar Kamprad(Sweden)($ 22.6 b), Karl Albrecht(Germany)($21.5 b), Mukesh Ambani (Ind)($19.5b), Lakshmi Mittal(Ind)($19.3b), Theo Albrecht(Ger)($18.8 b), Amanico Ortega(Spain) ($18.3 billion) [Courtesy: Forbes Magazine] Even though the list made surprising ups and downs for some, elimination for some others, the addition of 38 new billionaires to the diminutive group of billionaires may send comforting signals. 2008-9 will go down in history as the Year of Economic disaster. Will hope gather momentum in 2010? We will wait and watch.
The billionaire Club has been decreasing like Law of Diminishing Returns. Yesterday’s billionaire is today’s ‘ex-billionaire’. This Club has taken the severest hit in the past 15 months more than any other year since the Magazine started grading the richest to the rich. The total number of Billionaires around the globe plunged to a new low from a record number of 1125 in the beginning of 2008 to around 793 in March 2009. This decline of 332 billionaires in a year worked to 29.5%. The Net Present Worth of world’s billionaires dropped from $ 4.4 trillion (in 2008) to $ 2.4 trillion, the percentage of rate of decline @ 45.4%. This translates to a per capita wealth per billionaire @ $ 3 billion, a steep decline of 23% or a per capita drop of $ 910 million (against 2008 figures)
At least 373 people joined the ranks of "ex-billionaires" (355 as a result of business misadventures or declining asset values and 18 who died), while only 41 climbed onto the billionaire band wagon which included 38 newcomers and three who regained spots on the 10-figure list they'd lost earlier..
Indeed, the analysis carried out by Forbes clearly indicates real estate as the villain of the piece in reducing the ranks of billionaires, with more than 250 of the "2008 billionaires " registering substantial losses due to shrinking property values, which also accounted for drop in net worth among many of those who stayed on the list. When the property market crashed Ramesh Chandra's NPW (Net Present worth) plunged from $9.6 billion to just $600 million. Real Estate also played a crucial role in the depletion of wealth of India’s biggest loser Anil Ambani who was ranked No 6 in the 2008 list with a NPW of $ 42 billion. Real estate massive losses, which accounted for 76% of his fortune, left him with $ 10.1 billion and a ranking of 34 in the 2009 list.
29 of the Indian billionaires who figured in the list during 2008 lost their ranking while the remaining 23 of the 24 still on the list had diminished NPW. Russian billionaires figured in the hit-list with 55 of the 74 knocked out of the list while the remaining 19 with decreased wealth stood in the list due to inclined and depressed markets in metals, minerals, and other natural resources including gas. Mikhail Prokhorov, the richest Russian who still figures on the current list was ranked 40 with a fortune of $ 9.5 billion. The other six Russians who were in the top fifty dropped out of the list as their wealth depleted to below $ 1 billion.
United States became the greatest causality with 110 billionaires losing their rankings.
New York City alone lost 16 billionaires while media driven fortune of Micheal Bloomberg notched up $ 16 billion (from $ 11.5 billion 2008) to get listed at number 17 from his previous 65. Twenty-eight of the Manhattan billionaires who dealt in hedging funds lost their rankings while 11 managed to hold on to the list.
Among the celebrities, television giant Oprah Winfrey with a present worth of $ 2.7 billion. Designer Ralph Lauren with 4 2.8 billion and jetsetter Richard Branson with $ 2.6 billion managed to stay on the list. Dallas Mavericks (Mark Cuban) recorded his wealth at $ 2.3 billion while jerry Jones net worth came down to $ 1.3 billion as he ended up at the 559th spot in the Forbes List of Billionaires. Wang Chuanfu of China’s was a fresh entry (seller of electric cars in China) with a recorded wealth of $ 1.4 billion. He joins the illustrious band of 23 Chinese billionaires. . Germany’s Aloys Wobben (windmill manufacturing) found his way into the list with a record net worth of $ 3.5 billion. The top ten honours went to Bill gates ($ $ 40 billion), Warren Buffet ($37 billion), Carlos Slim Helu (Mexico)($35 b), Lawrance Ellison(422.56), Ingvar Kamprad(Sweden)($ 22.6 b), Karl Albrecht(Germany)($21.5 b), Mukesh Ambani (Ind)($19.5b), Lakshmi Mittal(Ind)($19.3b), Theo Albrecht(Ger)($18.8 b), Amanico Ortega(Spain) ($18.3 billion) [Courtesy: Forbes Magazine] Even though the list made surprising ups and downs for some, elimination for some others, the addition of 38 new billionaires to the diminutive group of billionaires may send comforting signals. 2008-9 will go down in history as the Year of Economic disaster. Will hope gather momentum in 2010? We will wait and watch.
Kerala garner No 1 slot in Exports
Kerala is considered to a weakling when it comes to trade, industrialization and insipite of the fact that it has one of the best natural harbour in the World and world renowned from the dawn of the Christ era about its far flung trade. India’s trade with Arab is legion, and it was the fairytale land eyed by almost all the European powers and voyagers starting from Vasco-da-Gama. Its natives have gone to forlorn countries and cities to earn, work like no other and have created a brand for Kerala labourer as the ‘best hardworker’ from anywhere.
In addition to all the banks putting their anchor here to get a pie of the NRI remittance, and even though their CR ratio is a deep wide, they make profit by deploying funds elsewhere.
But a little known fact, which makes Kerala proud, went unnoticed. It is something unprecedented. I refer to the Economic Survey 2009-10 laid on Feb 25, 2010 in Parliament give flattering account of Kerala’s exports. In Page 171 of the Economic Survey, under Table 7.16 ‘State wise Exports of top 15 States’ are highlighted. Growth rate percentage of different states (reference to US $) between April-September 2009-10 show that Maharashtra had a negative growth of 49.1%, West Bengal 49.1%, Gujarat 27.1%, Delhi 55.2%, UP 51.1%, Andhra 12.3% while only two States came out with positive growth. In the first place is Kerala with 9.2% growth while Haryana posted a positive growth of 0.1%. This is despite the fact that Kerala’s export sectors get poor help and support in the form of benefits of Chapter III Schemes of the Foreign Trade Policy, and has negligible Duty Drawback benefit and poor support under Schemes like Assistance to States for Infrastructure Development for Exports which had an outlay of Rs 570 Cr during 2009-10.
Kerala’s share in total exports of the Country was 2.6% (2008-9). Its growth rate percentage in US $ compared to its earlier year was 101. Maharastra accounted for 24.1% of the total Indian exports in 2008-9 followed by Gujarat (21.7), Tamilnadu (10), and Karnataka (6.6). Kerala’s exports consisting of Spices, Marine products, Cashew, Coir, Coconut products, Service exports, Ayurvedic products, agricultural powders, have done extremely well. It was individual entrepreneur initiative that was responsible for the coaster drive of Kerala, which gets the first position in terms of export growth rate. Well done Kerala Exporters. Well done Kerala entrepreneurs. Kerala can do it.
In addition to all the banks putting their anchor here to get a pie of the NRI remittance, and even though their CR ratio is a deep wide, they make profit by deploying funds elsewhere.
But a little known fact, which makes Kerala proud, went unnoticed. It is something unprecedented. I refer to the Economic Survey 2009-10 laid on Feb 25, 2010 in Parliament give flattering account of Kerala’s exports. In Page 171 of the Economic Survey, under Table 7.16 ‘State wise Exports of top 15 States’ are highlighted. Growth rate percentage of different states (reference to US $) between April-September 2009-10 show that Maharashtra had a negative growth of 49.1%, West Bengal 49.1%, Gujarat 27.1%, Delhi 55.2%, UP 51.1%, Andhra 12.3% while only two States came out with positive growth. In the first place is Kerala with 9.2% growth while Haryana posted a positive growth of 0.1%. This is despite the fact that Kerala’s export sectors get poor help and support in the form of benefits of Chapter III Schemes of the Foreign Trade Policy, and has negligible Duty Drawback benefit and poor support under Schemes like Assistance to States for Infrastructure Development for Exports which had an outlay of Rs 570 Cr during 2009-10.
Kerala’s share in total exports of the Country was 2.6% (2008-9). Its growth rate percentage in US $ compared to its earlier year was 101. Maharastra accounted for 24.1% of the total Indian exports in 2008-9 followed by Gujarat (21.7), Tamilnadu (10), and Karnataka (6.6). Kerala’s exports consisting of Spices, Marine products, Cashew, Coir, Coconut products, Service exports, Ayurvedic products, agricultural powders, have done extremely well. It was individual entrepreneur initiative that was responsible for the coaster drive of Kerala, which gets the first position in terms of export growth rate. Well done Kerala Exporters. Well done Kerala entrepreneurs. Kerala can do it.
Awake and arise, Indian Commerce Minsitry
United States of America which had bi-lateral trade to trillion worth of Dollars is slowly on the ebb. These goods are no more seen on the shelves of the biggest and largest retail malls. China can fret and fume as its exports to United States dipped by 20.5% to US$957.36 billion. The prime reason for such a decline was the falling Dollar. . More the dollar falls, the more costly the export becomes. Trade value between China and the country’s three major trade partners, the EU, the U.S. and Japan, was US$292.42 billion, US$239.36 billion, and US$182.34 billion during the first ten months of 2009, which averaged a drop in growth of 18.7%, 14.9% and 19.3%.
Did not this do a bit of good to the United States as it gained a lot due to compressed imports from other Countries?
Will it not pave the wave for higher consumer consumption? When exports of choked, the production from inland market is expected to rise. The demand will chase the supply. The consumer index which showed much improvement in the first ten months of 2009 proves this point.
The US domestic sector has been given a boost and it has acquired space to their own local producers to manufacture the goods and supply to their own people which has resulted in lesser imports.
So long as the Dollar remains weak, the Asian countries and China which has made a deep dent into American markets at a quick pace will tarry. They will stop exporting to the United States, and this will result in a commercial boom for the local industry which would be able to capture the markets vacated by these aggressive players, as a weak dollar would not be an advantage for these countries to continue with exporting their goods. At the same time US GDP growth is pegging up as more domestic products will be consumed and this would naturally diminish exports. .
One would be tempted to ask, Is America deliberately trying to downsize the Dollar, so that American economy which is in the doldrums will recover, there will be free float of money, the loss of employment can be prevented drastically. By artificially keeping the Dollar value low, US will encounter fiscal deficit if Dollar gets downsized.
The ambitious China is to go for mass production, GDP had an average growth rate of 10.5%.The economy is also getting back on its feat of maintaining the average rate. In the comings days china will face one of the hard times to push its products in other economies. China is running beyond 100% productivity which will result to cheap prices and lower profitability for the goods of Chinese origin. When as and when Dollar depreciates and stays at such a level, China will find it hard to find space to dispose off their products; this will result in their looking at new markets, nascent markets, and emerging markets .When this happens, the domestic industry in these places will suffer severe heat from Chinese imports and they may have to slap anti dumping duties. This would result in countries which look for replacement of American markets at short to medium level facing anti dumping charges and naturally, they will have to knock at the door of WTO. The over capacity bubble will put brakes on the revival path of Recession which will reverberate across the countries and continents and will devastate the economies of these countries who have excessive dependence on exports especially to America. Asian economies will have to cut back on many things from manufacturing to industry growths. Moreover new economies need to be developed so that the loss from trade to US market is compensated by the growth in exports to emerging, nascent and new markets. Otherwise Asian economies will have severe structural problems in trade, export, employment, economy, Foreign Exchange, etc.
China has taken serious cognizance of the situation and in the recent past has increased its industrial investments to record levels. Chinese fixed asset investment was 15.07 trillion Yuan ($ 2.21 trillion). This investment have resulted to increased productivity beyond 100% and antidumping their goods to other economies. Chinese investment in the Agricultural sector especially the primary sector covering farming, fishing and forestry jumped 54.1% year on year. The industrial sector, or the secondary sector, posted a 26.8% growth in investment and the tertiary industry, including commerce, finance and services saw investment up 37.8%. This shows that not only Government stimulus resulted in China’s higher growth even in the worst of Recession times, but steady investment has resulted in higher growth. Industrial production has not decelerated but has progressed with a higher percentage.
If China needs to find new vendors across the globe to convert their manufactured products to money, they need to depend on other economies. The Chinese government conscious of the dangers of the external markets, have taken caution to stabilize their internal manufacturing set up by going in for A & M and restructuring the steel sector to create three globally competitive steel making giants who can withstand the global cartels. They have also taken care to stick to the environmental concerns, reduce energy consumptions, putting the end products to standards and quality, optimum but careful use of resources and carefully watching the production scale. Another industry which they plan to merge through M&A is the Automobile industry. Two conglomerate Chinese automakers with an annual production of 2 million vehicles will be planned from dozens of small domestic car manufacturers to bring and strengthen global competitiveness.
It is a fact of economic history that when the United States car makers are struggling with their financial sheets, China made a remarkable feat by getting their Car sales soaring by 72% from the same period of last year when 1.2 million vehicles were sold.
The mergers and acquisition deals in China grew from $ 1.3 billion in the first quarter of 2009-10 to US $ 8.9 billion in the thirds quarter. The increase in economy of scale, expansion and growth of their business size will give these giants competitive strength and power to go in for overseas expansion. China’s planning is meticulous, it has got wind of the changed times, it is aware of quality, price and competitiveness will play an improved role in the new world. Chinese steel and auto exports will remain a threat to the American steel and auto companies, as the meticulous precision with which China has expanded the capacities of all the steel/automotive companies so that they can venture into the international arena with full fledged strategy, planning and execution.
Our Indian Comrades, who are opposing the integration of Banks into three or four strong banks through mergers and acquisitions, should take a leaf out of the Chinese comrades instead of saying what is good for china is not good for India. When will one learn?
Indian Government, Indian organizations, Indian institutions dealing with commerce and exports should plan, strategize, with meticulous scheduling , the way export route must be executed instead of wailing that give us stimulus otherwise we will perish, give us support like China etc. We need to stand on our own legs. We need to plan for the future. We must have a Disaster Plan Management on our hand or an alternate strategy. . Neither our Exporter giants nor the Commerce Ministry has any inkling as to how to conquer the problems, how to exploit the Strengths, how to overcome the weaknesses, how to use the advantages of opportunities and how to face the threats. Better late than never. Awake and arise Commerce Ministry!
Did not this do a bit of good to the United States as it gained a lot due to compressed imports from other Countries?
Will it not pave the wave for higher consumer consumption? When exports of choked, the production from inland market is expected to rise. The demand will chase the supply. The consumer index which showed much improvement in the first ten months of 2009 proves this point.
The US domestic sector has been given a boost and it has acquired space to their own local producers to manufacture the goods and supply to their own people which has resulted in lesser imports.
So long as the Dollar remains weak, the Asian countries and China which has made a deep dent into American markets at a quick pace will tarry. They will stop exporting to the United States, and this will result in a commercial boom for the local industry which would be able to capture the markets vacated by these aggressive players, as a weak dollar would not be an advantage for these countries to continue with exporting their goods. At the same time US GDP growth is pegging up as more domestic products will be consumed and this would naturally diminish exports. .
One would be tempted to ask, Is America deliberately trying to downsize the Dollar, so that American economy which is in the doldrums will recover, there will be free float of money, the loss of employment can be prevented drastically. By artificially keeping the Dollar value low, US will encounter fiscal deficit if Dollar gets downsized.
The ambitious China is to go for mass production, GDP had an average growth rate of 10.5%.The economy is also getting back on its feat of maintaining the average rate. In the comings days china will face one of the hard times to push its products in other economies. China is running beyond 100% productivity which will result to cheap prices and lower profitability for the goods of Chinese origin. When as and when Dollar depreciates and stays at such a level, China will find it hard to find space to dispose off their products; this will result in their looking at new markets, nascent markets, and emerging markets .When this happens, the domestic industry in these places will suffer severe heat from Chinese imports and they may have to slap anti dumping duties. This would result in countries which look for replacement of American markets at short to medium level facing anti dumping charges and naturally, they will have to knock at the door of WTO. The over capacity bubble will put brakes on the revival path of Recession which will reverberate across the countries and continents and will devastate the economies of these countries who have excessive dependence on exports especially to America. Asian economies will have to cut back on many things from manufacturing to industry growths. Moreover new economies need to be developed so that the loss from trade to US market is compensated by the growth in exports to emerging, nascent and new markets. Otherwise Asian economies will have severe structural problems in trade, export, employment, economy, Foreign Exchange, etc.
China has taken serious cognizance of the situation and in the recent past has increased its industrial investments to record levels. Chinese fixed asset investment was 15.07 trillion Yuan ($ 2.21 trillion). This investment have resulted to increased productivity beyond 100% and antidumping their goods to other economies. Chinese investment in the Agricultural sector especially the primary sector covering farming, fishing and forestry jumped 54.1% year on year. The industrial sector, or the secondary sector, posted a 26.8% growth in investment and the tertiary industry, including commerce, finance and services saw investment up 37.8%. This shows that not only Government stimulus resulted in China’s higher growth even in the worst of Recession times, but steady investment has resulted in higher growth. Industrial production has not decelerated but has progressed with a higher percentage.
If China needs to find new vendors across the globe to convert their manufactured products to money, they need to depend on other economies. The Chinese government conscious of the dangers of the external markets, have taken caution to stabilize their internal manufacturing set up by going in for A & M and restructuring the steel sector to create three globally competitive steel making giants who can withstand the global cartels. They have also taken care to stick to the environmental concerns, reduce energy consumptions, putting the end products to standards and quality, optimum but careful use of resources and carefully watching the production scale. Another industry which they plan to merge through M&A is the Automobile industry. Two conglomerate Chinese automakers with an annual production of 2 million vehicles will be planned from dozens of small domestic car manufacturers to bring and strengthen global competitiveness.
It is a fact of economic history that when the United States car makers are struggling with their financial sheets, China made a remarkable feat by getting their Car sales soaring by 72% from the same period of last year when 1.2 million vehicles were sold.
The mergers and acquisition deals in China grew from $ 1.3 billion in the first quarter of 2009-10 to US $ 8.9 billion in the thirds quarter. The increase in economy of scale, expansion and growth of their business size will give these giants competitive strength and power to go in for overseas expansion. China’s planning is meticulous, it has got wind of the changed times, it is aware of quality, price and competitiveness will play an improved role in the new world. Chinese steel and auto exports will remain a threat to the American steel and auto companies, as the meticulous precision with which China has expanded the capacities of all the steel/automotive companies so that they can venture into the international arena with full fledged strategy, planning and execution.
Our Indian Comrades, who are opposing the integration of Banks into three or four strong banks through mergers and acquisitions, should take a leaf out of the Chinese comrades instead of saying what is good for china is not good for India. When will one learn?
Indian Government, Indian organizations, Indian institutions dealing with commerce and exports should plan, strategize, with meticulous scheduling , the way export route must be executed instead of wailing that give us stimulus otherwise we will perish, give us support like China etc. We need to stand on our own legs. We need to plan for the future. We must have a Disaster Plan Management on our hand or an alternate strategy. . Neither our Exporter giants nor the Commerce Ministry has any inkling as to how to conquer the problems, how to exploit the Strengths, how to overcome the weaknesses, how to use the advantages of opportunities and how to face the threats. Better late than never. Awake and arise Commerce Ministry!
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