Imagining Rio like event in India..

Need
One of the root cause why India could not perform up to the mark in Rio 2016 can be India had not hosted any Olympic games till now. India’s youth are not very familiar about sports that are played in Olympic while compared with cricket. India hosted 2011 cricket world cup which has definitely boosted our economy, tourism, foreign currency reserve. Hosting Olympic Games in India, can indisputably drive tourism, boost in public transport, hotels, entertainment, restaurants and retail etc. This is definitely going to increase demand of products to enhance industrial manufacturing.

What Brazil achieved
Budget for Olympic is $5 bn and cannot expect profit in short term. During 2008 to 2014, Rio’s revenue from overseas tourism grew from $1.26 bn to $2.10 bn with the help of 2014 football world cup. Japan is going host 2020 summer Olympic and has shown its strength in Rio Olympic closing ceremony. Japanese PM Shinzo Abe himself appeared in the event with Mario cap to ensure the attraction from world. So we can understand how much important it is to host such games which involves 206 countries (figure from Rio 2016).

Advantages to India
If India hosts Olympic Games, entire world will see the event; entire world will see India’s capacity in financial terms and in terms of security. It will definitely increase confidence of foreign investors on India. Hence this will give good response in foreign direct investment and can change India’s global image in positive direction towards globalization. With the help of Olympic body, India can also improve its infrastructure. Indian citizen especially teenagers and children will see the event and learn from it. This will create a patriotic environment and zeal to bring medals for our country.

Caveats
However, poor show can damage future tourism. Setting up the event can be very expensive and can render a city bankrupt as seen in one of the reasons for Greece went debt ridden hosting 2004 Athens Olympic Games. India has already witnessed scams in commonwealth games in 2010.

Instead of these worries, I am very sure India can beat Bolt's 100m, 200m, 400m records and many sports we can win gold medals. We need to focus on athletes selection process. Government of India has also set up a team for suggestions in upcoming next three Olympics. Let's hope this will bring a positive change in India's Olympic glory. We need to start from basic level i.e. by providing sports infrastructure to schools in urban and rural schools and need to rigorously include sports in student's curriculum. Study and play can be a very good approach.

From scratch to $17.5 billion with Sun shining bright

Early life

       Yes. A person who started his pharmaceutical company in Vapi, Gujarat, now has net worth of whooping approximately $18 billion. Dilip Shanghvi was born in Amreli, a small village in Gujarat in 1955. He completed his bachelor of commerce from University of Calcutta and joined his father’s wholesale generic drug shop in Kolkata. During his work as a drug distributor, he thought of manufacturing his own drugs instead of selling others’ products. 

From Kolkata to Mumbai

        He borrowed 10000 rupees (amount same as Narayan Murthy borrowed from his wife Sudha to establish Infosys) from his father and came to Mumbai from Kolkata in 1982. In 1982, he started Sun Pharmaceuticals with 5 person and 5 products of psychiatry and capsules. Four years later, company started selling across India. In 1989, after launching a few cardiology products, Shanghvi began to export to neighbouring countries, and has never looked back. In 1991, he set up a research centre for his company. Sun pharmaceutical Advanced research company is first ever R&D company enlisted on Indian stock market. Three years later, Sun Pharma went in for an initial public offering.

Grow, buy, grow

       A large part of Shanghvi’s success can be attributed to his acquisition strategy. His first buyout was in 1996 when he acquired a drug manufacturing plant of Knoll Pharma in Ahmednagar, Maharashtra. The same year the company’s sales operations expanded to 24 countries.

The most notable of these acquisitions was a controlling stake in the Israeli drug maker, Taro Pharmaceuticals Industries, in 2010. Two successful purchases of US companies URL pharma and DUSA pharmaceuticals happened in 2012. These acquisitions strengthened Sun Pharma’s position in key markets such as the US, Israel and Canada. In 2014, Sun pharma acquired Ranbaxy. Now Sunpharma's 60% revenue comes from US market.

Acknowledgements

       Shanghvi is richest Indian who surpassed Mukesh Ambani from this title. He is among Asia’s top 10 wealthiest self made billionaire. He owns 60.8% stake in Sunpharma and 23% stake in world’s 5th largest wind energy turbine producer, Suzlon. In 2016, Dilip Sanghvi received Padma Shri honour from Government of India.

Economics of Indian Cricket, now days

     BCCI – India’s richest sporting body and world’s richest cricket board, which lures many politicians for top positions in it. As India is large market in terms of International Cricket revenue, BCCI’s opinion carry weight in ICC’s decision making process. India can decide future of International players as well as can upgrade cricket rules. ECB, Cricket Australia and BCCI are ‘Big Three’ economic players in world cricket. BCCI is independent body which does not depend on Government for its finances. BCCI has tax liability of $4.13 bn who paid only $419mn till now.

     During 2007, Indian Cricket League (ICL) a private cricket league funded by Zee Entertainment initiated in India which feared BCCI. BCCI and ICC refused to recognise ICL and BCCI decided to launch Indian Premier League in 2008 on franchise model. BCCI increased prize money of IPL and banned ICL players. BCCI put Lalit Modi in change of starting T20 of its own.

IPL conducted bidding for selling franchise of each team. Obviously, BCCI made whooping assets from IPL bidding. It is interesting to know how IPL team owners/investors earn. Revenue of the team is generated from media rights for broadcasting, sponsorships, tickets, stall rentals and prize money.

     Media rights for broadcasting IPL matched is decided by BCCI through auction process. Sony network is having worldwide broadcasting rights. Some part of revenue obtained from it goes to each team investor. Revenue earned from media rights creates maximum share of total earning around 60-70% for each team.

     Out of total revenue of the team, 10% revenue comes from match tickets. Maximum the spectators, more is the earning and good view for broadcasters. Hence team owners decides ticket rates based on standard of living of the city. Some tickets are already reserved for BCCI which BCCI can provide to VVIPs and their relatives. KKR in first season of IPL did not do well, but they were in profit due to celebrities’ presence.

     Stalls installed inside stadium for beverages, eatables also acts as an addin to team revenue. And finally the prize money 50 cr for winners. As per the rule, 50% of prize money should go to each team members.

     There are other illegal sides of earnings in IPL. Let’s not go into the details of it. We shall wait for Tuesday 14th July, probe of CSK and RR fate result to be announced by Supreme Court.

Land Bill 1894, LARR Act 2013 and Land Ordinance 2014

Century old land bill of 1894 was amended by UPA govt in 2013. It came into the action from Jan 2014. The new act was named as Land Acquisition, rehabilitation and resettlement act (2013). This act was pro- farmer and pro industrial development. Old land bill was providing monetary compensation of 1.3 times the actual land cost. Whereas LARR Act provides monetary compensation of 4 times the actual market cost in rural area and 2 times the actual market cost in urban area to the landowners. On top of it, it ensures rehabilitation and resettlement of the affected people. It also studies social impact on affected landowners.  The main fact in LARR act which I want to emphasize is it need compulsory consent from 80% landowners to handover the land to private players and 70% consent for PPP projects.

I think LARR Act ensures inclusive growth where industrialists and farmers both are concerned along with the national development. But LARR Act removed local government bodies like state government and panchayati Raj from the purview of bill, saying land deals are not concern of local bodies. During 2007 and 2009, for the construction of Yamuna Expressway, 2800 crore rupees had been spent on land. Land was being acquired with whooping rate of average 15 lakh per acre. However at International arena, as per The Financial Times, France paid average 1.09 lakhs per acre and as per US department of agriculture, US paid average 96 K per acre of land.

Reuters has reported that in 2014, LARR act is a barrier to projects worth $300 bn. Hence due to continuous lobbying by India Inc. on 31 Dec 2014, NDA government cleared an ordinance to amend LARR act by using executive powers. Ordinance defines that there would be same compensation as per LARR act but consent clause will be removed for sectors like defence and rural electrification, security, power and affordable housing. Ordinance also ensures rehabilitation and resettlement. Government will not require any consent from landowners and social impact won’t be studied for these sectors. Hence Land bill ordinance= LARR Act – (consent of landowners + social impact study).

LARR act ensures that if land is not utilised for five years, it will be returned to landowners but there is no such provision in land ordinance.

I think there should be mandatory consent because one can be removed from his home without his permission is against right to property act. Consider that you have been told to vacate the home (against your wish) as some industrialist is going to destruct it and will open shopping center over there. Although you will get 4 folds price of your home, one shop in shopping center as a part of resettlement, might be a new apartment for rehabilitation. But all this cannot make you satisfied as compared to your father’s old home (As per Amitabh Bacchan’s Binani cement Adverisement). Another example, if you have some fertile land where you are cropping every year, tomorrow industrialist came and asks you to vacate it as they want to construct vegetable market building at that place. So with this new bill they can start construction without your will.

I think there is no need of any amendment in LARR act of 2013 because it is more pro farmers than that of industrialists. If $300 bn projects are on hold, let them on hold till all landowners are agreed to sell their land which will ensure inclusive growth of India. In West Bengal communist led left government who ruled Bengal for almost 34 years adopted liberalisation policy and changed its pro farmers policy to capitalist path of industrial development which at micro level endangered food security of small and marginal farmers who formed vote bank of left front government. Eventually left government collapsed but Mamata Banarjee took over.

Alternative to the LARR act can be renting land to the industries for specific period with increasing rate of rent. This will ensure that landowner will get his land with same grace and industry will not need more initial set up charges.

History of Today's Superpower

Superpower, term was first used for giant British Empire. But following to WWII in 1939 – 1945 and Suez crisis in 1956, this status was diminished. British Empire was the most extensive empire in world history and considered the foremost great power, holding over 25% of the world's population and controlling about 25% of the Earth's total land area, while the United States and the Soviet Union grew in power in World War II.

1898 had embarked the rise of superpower United States. Since beginning of 19^th century when colonial rulers left US, US could grow and prosper in virtual isolation since 1815. In 1998, US’s support to Cuba for independence indulged US in war with Spain. As a result of war, treaty of Paris gave independence to Cuba. Spain also handed over Puerto Rico, the Philippines and the small island of Guam. In this way US suddenly became colonial power with dependencies.

US’s role in WWI:-

World War 1 started at 1914. However US entered the war in 1917 for the purpose of global peace especially European peace and to stop the war for all. On the other hand, treasury secretary William Gibbs McAdoo, a son in law of staunch idealist President Woodrow Wilson was already forging plans to replace the pound sterling with dollars as international reserve currency. Wilson argued that goal of the war had to be the establishment of "community power" and not a "balance of power," and to achieve "organized common peace" instead of "organized rivalries." Germany replied William’s letter after nine days for submarine warfare. William’s face became pale on the name of war because he didn’t want any blood neither his soldiers nor others’. Wilson made New York financier Bernard Baruch one of his top advisers. Baruch and his associates, recruited from the top ranks of industry, completed their tasks with breath-taking speed. The nominal economic output of the United States doubled between 1914 and 1918. German Field Marshall Paul von Hindenburg saw Baruch as the real victor over Germany. In 1921, US signed a separate peace treaty with Germany.

US’s role in WWII:-

US played important role in military operations against Nazi Germany in WWII. Washington was preparing to take on a leadership role in the creation of the new Europe. Owing to military supplies and loans, the U.S. received high profits and made many countries dependent on its economic aid. Two months after the defeat of Nazi Germany, a special event took place in the world that radically changed the entire system of international relations. On August 6 and 9, 1945, U.S. heavy bombers dropped atomic bombs on the Japanese cities of Hiroshima and Nagasaki. The use of nuclear weapons was brutal retaliation for Japan's attack on Pearl Harbour and a stern warning to potential U.S. adversaries. A response from the Soviet Union did not take long to follow. Soviet scientists accelerated the work on the atomic bomb. The world saw the beginning of a massive arms race. In the event of a direct military conflict between the United States and the Soviet Union with the use of atomic weapons, consequences for all forms of life on Earth could be catastrophic. The USA and the USSR were struggling for world domination. United States and Germany both were ruling Germany, providing country with considerable economic support without expecting anything else in return. But both United States and Soviet Union were not trying for complete destruction of each other.

Post World Wars:-

Washington skilfully used economic leverage over Europe with a goal to strengthen its military and political influence in European countries. US suggested that European countries should take money from them to reconstruct Europe economically and politically. France, UK, Italy, Belgium and several other countries agreed to take part in the "Marshall Plan." US invested hooping $17 billions in the plan and provided funds in bulk to Europe. England and France, weakened in War could not challenge US in capitalist world. By 1948, the share of industrial production of the U.S. accounted for 55 percent of the West. Washington was not going to give up its positions on the European continent. This is how US took over Europe leveraging its currency.

Now its unchallenged Superpower:-

Nevertheless 16 day shutdown of US government, weak economic recovery and the vast NSA spy scandal, US remains Unchallenged. Barack Obama comes second to Vladimir Putin, still they are #1.

The United States still receives far more immigrants each year (1 million) than any other country in the world.

The United States leads the world in high technology (Silicon Valley), finance and business (Wall Street), the movies (Hollywood) and higher education.

Furthermore who is going to challenge USA?

Europeans?- The EU today has 12 percent unemployment – reaching 26 percent in Greece and Spain – almost zero economic growth, a declining population in many of its member states.

Japanese?- The Japanese are suffering from a declining and rapidly aging population, lack of immigration, a Nikkei Index that is still more than 20,000 points below the level of 1988 and debt that equals 240 percent of GNP.

Russians?- While Russia may have grabbed the headlines for hosting the forthcoming Olympics and Edward Snowden, it’s no super power.  Russia has a  trade profile of a Third World country, a GNP the size of Canada, which is less than 15 per cent of the United States GDP, no soft power, Silicon Valley, Hollywood, Wall Street or highly rated universities.

China?- China suffers from massive official corruption, one party Communist rule, lack of creativity and social stratification. Its massive air, water and soil pollution problems kill 1.2 million Chinese a year.  It will likely be 2050, as its leaders often admit, before China becomes a thoroughly modern country.

India?- As for India, 830 million people (almost 70 percent of the population) live in the largely poor countryside where over 160 million people have no access to water, electricity or sanitation. India leads the world with the greatest number of illiterate individuals – 35 percent of all women are illiterate. No less than 25 percent of the population has no electricity. India has a weak infrastructure, GDP/capita ($1,500) at 138th place in the world that is barely 3 percent of the American figure and massive corruption. Finally, its rapid population growth (180 million people added in the last decade) bodes poorly for its future.

Barely at least for a decade or a two, no one can take status of superpower from US.

My Two years with Gujarat Governance.

I am writing this blog after elections got over and a day before the general election poll results. As per exist polls there is a green signal to saffron party. Meetings between party veterans and renowned leaders are happening to discuss the framework of new government. Centripetal force of all the discussions pulls people towards BJP’s prime ministerial candidate Narendra Modi and his stance in new government. BJP along with all his alliances are all set to establish the stable government. In Maharashtra’s politics Shivsena is hoping good numbers nevertheless Balasaheb. People also believe alliance with the name of Modi. Sensex and Nifty are also blooming due to these expectations.

I got the chance to work at Gandhinagar, Gujarat at the start of my career in April 2012 to Dec 2013 almost two years. I had visited most of the tourist places like Diu, Gir, Dwarka, Somnath, Porbander of Gujarat during holidays. It’s a very good place to live in. There is no discrimination on the name of state. The infrastructure of the state is much improved as compared to other states and it is in progress. The people of Gujarat don’t know the word ‘Load shedding’. News are spreading like US, China and Pakistan are afraid are afraid of Modi. But I think this is not the case otherwise there won’t be successful Vibrant Gujarat summits where international business entered into Gujarat. Women empowerment has been always focused so the safety is. Administration is really admirable in terms of water and electricity supply. Modi has become brand in Gujarat. He has conducted many state level programs for the rehabilitation of poors.

Now Gujarat is shining and Modi is all set for India shining. All the best to Modi and his allies.

Impacts of Crimea annexation with Russia on the World

On 26^th March 2014, twitter hash tag ‘#My Sanctions’ of Russians to forbid Obama and his administrators from red caviar to Russian vodka is initiated. This instantiates the sulk in people against G8 members to abstain the Russia. US and European union has decided to work together to prepare possible tougher sanctions in response to Russia’s annexation of Crimea from Ukraine, including energy sector and make Europe less dependent on European gas. G8 members are doing this unfair with Russia although Crimea have voted 96% in favour of Russia in referendum voted by 82% Crimean folks. The move has been made although G8 do not have any formal mechanism for expelling or suspending any of the members.

BRICS countries have also condemned and disapproved the G8 countries move to make it G7. G8 is World’s one of the most exclusive clubs. G8 summit scheduled in Sochi of Russia in early June would be a G7 gathering on 70^th D-Day anniversary in France. D-Day is celebrated to pay tribute to martyrs of World War II. India’s stand is on Russia’s side as results of referendum are on the side of Russia. However Russia is India’s most important strategic partner in international relations. Defence trade between India and Russia is noteworthy.

Russian Foreign minister Sergei Lovrov replied this crisis as "So be it". "If our western partners believe the format has exhausted itself, we don’t cling to this format", Lovrov added. Canada’s Stephen Harper was the tip to start the allegation. Harper said "We don’t believe it will be a big problem if it does not convene". Now G7 group includes US, UK, Canada, Japan, Germany, Italy, and France.

Norwegian Nobel Institute declared 278 candidates for Nobel peace prize nomination. Russian president Vladimir Putin is also one of the nominees who were being acknowledged for his work to defuse Syria crisis in 2013. Also Putin had intervened veto call in United Nations Security council to the war initiation by USA on Iran for nuclear bombs. This is embarking the spark to the cold war in US and Russia again. Groups of countries are getting formed in the world.