Following is the chronology of major blasts in the country:Varanasi, Dec 7, 2010: Two-year-old girl killed and 25 others injured in a blast which takes place between the Dashashwamedh and Shitla ghats on the river Ganga.Pune, Feb 13, 2010: 17 people killed and over 60 injured when a bomb rips out the famous German bakery in the city.Mumbai, Nov 26, 2008: 166 people killed in coordinated serial explosions and indiscriminate firing across Mumbai including the crowded CST railway station and two five-star hotels -- Oberoi and Taj.Assam, Oct 30, 2008: At least 77 killed and over 100 injured in 18 bombings across Assam.Imphal, Oct 21, 2008: 17 killed in a powerful blast near Manipur Police Commando complex.Malegaon, Maharashtra, Sep 29, 2008: Five people killed after a bomb kept in a motorbike goes off in a crowded market.Modasa, Gujarat, Sep 29, 2008: One killed and several injured after a low-intensity bomb kept on a motorcycle goes off near a mosque.New Delhi, Sep 27, 2008: Three people killed after a crude bomb is thrown in a busy market in Mehrauli.New Delhi, Sep 13, 2008: 26 people killed in six blasts across the city.Ahmedabad, July 26, 2008: 57 people killed after 20 synchronised blasts in less than two hours. Jaipur, May 13, 2008: 68 people killed in serial bombings.January 2008: Terrorist attack on CRPF camp in Rampur kills eight.October 2007: Two killed in blast inside Ajmer Sharif shrine in Rajasthan during Ramzan.August 2007: 30 dead, 60 hurt in Hyderabad terror strike.May 2007: A blast at Mecca mosque in Hyderabad kills 11 people.February 19, 2007: Two bombs explode on board a train bound from India to Pakistan, burning to death at least 66 passengers, most of them Pakistanis.September 2006: 30 dead and 100 hurt in twin blasts at a mosque in Malegaon.July 2006: Seven bombs on Mumbai's trains kill over 200 and injure 700 others.March 2006: Twin bombings at a train station and a temple in Varanasi kill 20 people.October 2005: Three bombs placed in busy New Delhi markets a day before Diwali kill 62 people and injure hundreds. (PTI)
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It happens every year. When monsoon rains lash Mumbai, the city turns into a cesspool, which along with its potholed roads and gridlocked traffic, mocks its ambition of becoming a global financial centre.India has Asia's third-largest economy and the increasing global clout that goes with it. It is already home to a quarter of the world's 20 most densely populated cities.One of them is Mumbai, where some 18 million people crowd into slums and skyscrapers, stretching the city's amenities and making it less attractive for investors.While rapidly modernising cities such as Shanghai and Sao Paulo are winning business from centres such as London and New York, the slow pace of urban development in India is harming its cities, which by 2030 will be home to about 590 million people -- nearly twice the population of the United States today.Indian cities over the next two decades will also house 40 percent of the country's population and generate some 70 percent of new job opportunities, McKinsey Global Institute (MGI), the research arm of consultancy McKinsey, estimates in a report.To cater to this growth, India needs to invest $1.2 trillion in capital expenditure, mainly infrastructure, over that period, an eight-fold increase of current spending levels, MGI said."Across all major quality-of-life indicators, India's cities fall well short of delivering even a basic standard of living for their residents," the report said.India now spends $17 per capita on urban infrastructure, compared to rival China's $116.That figure is clearly inadequate: while it took about 40 years for India's urban population to rise by nearly 230 million in 2008, it will take only half that time to add the next 250 million people, analysts say.India will, over the next two decades, see an urban transformation the scale and speed of which has not happened anywhere except China, with many cities becoming larger than many countries, in terms of population size and GDP."It's going to be one of the most defining changes that we have yet to see," said Roopa Purushothaman at Everstone Investment Advisors.Poor infrastructure shaves an estimated 2 percentage points off India's economic growth."There cannot be high economic growth without a high degree of urbanisation," said Ashish Sharma, a principal at consultancy Booz & Co. "There is a clear, positive correlation between the GDP of a country and its degree of urbanisation."Focus On VillagesHistorically, India's politicians and policy-makers have focused on villages. Urbanisation has largely been a result of existing cities expanding economically and demographically, rather than anything planned, Sharma said.This largely haphazard growth has created inequity. With more than 500 million mobile phone subscribers, more people in India have access to a mobile phone than a toilet, a "tragic irony", a recent UN report noted.Lack of affordable housing means India has the largest urban slum population in Asia. Mumbai boasts some of the world's priciest real estate but some 60 percent of its residents are homeless or live in slums.Foreign firms entering India or looking to expand are scouting locations away from Mumbai and Delhi, Booz's Sharma said, because of poor liveability, which drives up costs."Our cities are not the magnets that Singapore, Dubai or even Shanghai are. Anecdotally, it's very clear we're losing our edge to these cities because of poor infrastructure," he said.When it comes to planning, India also lags rival China, which has clear policies, giving its major cities the same status as provinces, and investing ahead of demand."China has embraced and shaped urbanisation, while India is still waking up to its urban reality and the opportunities that its cities offer for economic and social transformation," McKinsey analysts Richard Dobbs and Shirish Sankhe noted.The government, which estimates urban areas can contribute about 65 percent of India's GDP by 2012 with improved services, has a Rs 1-trillion ($212 billion) urban renewal project aimed at building and improving infrastructure, revamping archaic land and property laws and making 63 cities and towns self-governing.But it has little to show since its 2005 launch."We have great plans on paper but when it comes to execution, we've faltered. That's also the case with urban development," said Abhishek Kiran Gupta, head of research at real estate consultancy Jones Lang LaSalle Meghraj."But the stakes in this case are high."(Reuters)
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As the Environment Minister, Jairam Ramesh was known for taking the government head on over different contentious issues. On his first day as the Minister of Rural Development, Jairam Ramesh continued on this path when he reversed a stand taken by the rural development ministry last week on the Land Acquistion Bill.Ramesh said on Wednesday that he has accepted the recommendations of the National Advisory Council, headed by Sonia Gandhi, on the Bill. The government had last week indicated that it would not accept several guidelines mooted by the NAC. At that time, Vilasrao Deshmukh handled the Rural Development Ministry.The Sonia Gandhi-led National Advisory Council (NAC) had advocated 100 per cent acquisition by the government to ensure that farmers and other land dependants are not exploited by investors and brokers. NAC also wanted land acquisition and rehabilitation - so far handled via different bills - to be combined into one new Act.Further, NAC also wanted land from farmers to be acquired at six times the market rate. The government had suggested that farmers should get at least 60 per cent more than the market rate for their land. Mamata Banerjee, the most important UPA ally, on the other hand, had insisted that the government should have no role in land acquisition for private investors.The draft finalised by the ministry last week had stuck to a near-middle path between NAC recommendations and the suggestions of Mamata Banerjee, the most important ally of the UPA governmenrt. The ministry last week had suggested the 70-30 formula under which the private investor was expected to buy at least 70 per cent of the required land directly from the people while the government could acquire the remaining 30 per cent.Ramesh said a draft of the new bill will be placed online next week for feedback, and that the Bill will then be introduced in the monsoon session of Parliament which starts on August 1.He also said a review of the achievements of the Mahatma Gandhi National Rural Employment Guarantee Act (NREGA) and completion of the census of families living below the poverty line would be among his key priorities."The BPL census was last held in 2002. We hope to complete it by the end of the year," Ramesh said a day after he was sworn in as rural development minister."We will also review the NREGA. We need to find out whether Rs 40,000 crore spent on it has benefited the people," he added.Burning Midnight OilJairam Ramesh had assumed charge of the new ministry immediately after taking oath as Cabinet Minister at the Rashtrapati Bhawan on Tuesday evening and flagged the land acquisition bill as his priority. He spent his first day as the rural development minister in extensive meetings with officials stretching well past midnight.He held discussions with Ministers of State and senior officials on various issues and met two members of the National Advisory Council (NAC) which had recently made recommendations on the Land Acquisition Bill."We will soon put out a draft Bill for public debate by middle of next week. That was my approach in the Environment Ministry and it will be the same in Rural Development ministry," he said.Ramesh said besides compensation to land owners, he felt that the issue of giving benefits to those whose livelihoods depend on the land to be acquired also needs to be addressed."It is not just compensation to land owners but more important issue is to compensate those whose livelihood depends on the land being acquired. This is the most important matter. Compensation is the second important issue," he said.Ramesh said he held extensive meetings in the ministry till 1:00 A.M. and followed it up with more discussions on Wednesday morning."The purpose for which the land is being acquired -- whether it is for critical infrastructure or golf courses -- are important issues that have to be discussed," he said.(With Agencies)
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India's high economic growth is leading to inflationary pressures, Finance Minister Pranab Mukherjee said in parliament on Wednesday.Asia's third largest economy is seen expanding 8.5 per cent in the year to end-March 2011. Wholesale price inflation in June stood at 10.55 percent and Chief Statistician of India T.C.A. Anant said last month that July headline inflation could be around 11 percent.India's central bank raised interest rates more forcefully than expected last week, signalling its urgency to stamp on inflation.Mukherjee was replying to a parliamentary debate on price rise, a political hot potato that has given the opposition a handy tool to attack the government with and block proceedings in the house since its opening last week.(Reuters)
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India's industrial output in June rose at a slower-than-expected 7.1 per cent from a year earlier, its slowest pace in 13 months, government data showed on Thursday.The median forecast in a Reuters poll was for an annual rise of 8.4 percent. Manufacturing output rose an annual 7.3 per cent in June, the federal statistics office said in a statement.- Manufacturing production rose 7.3 per cent in June from a year earlier.- May's industrial output annual growth rate was revised downwards to 11.3 per cent from 11.5 per cent.-Industrial output rose 10.4 per cent in the 2009-10 fiscal year (April-March), faster than an upwardly revised 2.8 percent in 2008/09.A. PRASANNA, ECONOMIST,ICICI SECURITIES PRIMARY DEALERSHIP; MUMBAI:"The numbers are slightly below our expectations. The negative surprise is primarily from the capital goods sector where growth has slowed down after 5 months of double-digit expansion."However it is too soon to conclude that the capital goods growth is cooling off. Overall this moderation in IIP growth in year- on-year terms is along expected lines. We see growth settling in the 8-10 percent trajectory in the coming months."This reading is unlikely to sway RBI's thinking as far as policy action in the September review is concerned. Inflation data holds the key for likely direction of monetary policy."We look for 50 basis points hike in Reverse Repo and 25 basis points hike in Repo in September as long as July WPI inflation prints above 10 per cent."SAUGATA BHATTACHARYA, CHIEF ECONOMIST, AXIS BANK, MUMBAI"The number is lower than our estimates but it seems that consumption demand in consumer goods is more or less intact. The drop has come in from capital goods, which is largely due to a base effect.""Going forward, we stick to our full year average forecast of 10-11 percent in 2010-11.""And the probability of a rate hike in the September review by the RBI is lower now. But people may wait for the inflation data before taking a call on that."RUPA REGE NITSURE, CHIEF ECONOMIST, BANK OF BARODA, MUMBAI:"Deceleration in IIP growth is along expected lines, as the statistical base effect has started diminishing."However, rising cost pressures are also responsible to some extent. Going forward, we will see IIP growth numbers in the range of 7 percent to 9 percent."SEAN CALLOW, SENIOR CURRENCY STRATEGIST WESTPAC INSTITUTIONAL BANK, SYDNEY:"IIP was certainly due to cool down after hectic growth earlier this year, but the extent of the deceleration is rather eye-catching, slipping below the 8.4 percent average growth rate of the past five years.""Inflation is running too fast to allow the RBI the luxury of skipping a hike at the next meeting.""USD/INR remains well supported near term and will need a clear improvement in global equity sentiment in order to resume last week's probe of 46.00."BRIAN JACKSON, SR EMERGING MARKETS STRATEGIST, ROYAL BANK OF CANADA, HONG KONG:"The data for India's manufacturing is giving off mixed signals at the moment - today's official industrial production data show growth has come off sharply over the last two months, but PMI numbers suggest conditions remain robust.""The RBI has taken a balanced approach to policy tightening in recent months, and today's number - and concerns about the global outlook - will factor into its deliberations.""However, getting inflation down remains its main priority, and WPI inflation data out early next week will play a more important role in determining whether more rate hikes are likely.""We expect another double-digit number for July, suggesting the RBI still has more work to do to contain price pressures, and we continue to forecast another 50 basis points of rate hikes by the end of 2010."ANUBHUTI SAHAY, ECONOMIST, STANDARD CHARTERED BANK, MUMBAI:"Two factors have weighed on this number. First, as the impact of restocking and pent-up demand wanes, slower but more sustainable IP growth is inevitable. However, an elevated base last year has accentuated this impact."In particular, unlike the usual seasonal pattern of lower industrial activity every June versus May, June 2009 defined the upturn in the cycle as India emerged from the global financial crisis."This was evident as IIP growth surged to 8.3 percent in June 2009 from 2.1 percent in May. Thus, in addition to the usual seasonal slowdown, the headline figure this time might also suffer from an elevated base last year."ANJALI VERMA, ECONOMIST, MF GLOBAL, MUMBAI"It is below expectations and I think it is largely the manufacturing side that has disappointed. Although the base was higher, but on that basis only I was expecting around 8 percent."Yes it is below expectations and one will have to see the trajectory going ahead. Overall, I think one will have to be more vigilant."We are seeing that the infrastructure index is below par and it has not been performing for months. So one will have to be a little more vigilant now"MARKET REACTION:- The partially convertible Indian rupee fell to 46.96 from 46.93 after the data. It ended at 46.70/71 per dollar on Wednesday.- The yield on the benchmark 10-year bond fell to 7.78 percent, from 7.80 percent before the data. It had ended at 7.81 per cent on Wednesday.- The BSE Sensex was down 0.56 percent vs down 0.44 percent earlierBACKGROUND:- The government expects the economy to grow around 8.5 percent in the current fiscal year that started on April 1, after expanding 7.4 percent in the previous year.- Robust growth has raised prospects of capacity constraints, which are seen aggravating price pressures.- Official data last month showed the wholesale price index rose an annual 10.55 percent in June.- The Reserve Bank of India is still widely expected to tighten monetary policy and raise rates in the coming monetary policy review due to inflationary pressures.- The RBI raised rates by 25 basis points each in March, April and early July, and followed this with a more forceful hike at a scheduled review late last month..(Reuters)
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The Group of Eight leaders agreed on Friday that the global economy recovery was becoming more "self-sustained", although higher commodity prices were hampering further growth.In a communique to be issued at the end of a two-day summit in France, a copy of which was obtained by Reuters, European nations, the United States and Japan all agreed to ensure their public finances were sustainable."The global recovery is gaining strength and is becoming more self-sustained. However, downside risks remain, and internal and external imbalances are still a concern," the communique said."The sharp increase in commodity prices and their excessive volatility pose a significant headwind to the recovery. In this context, we agreed to remain focused on the action required to enhance the sustainability of public finances, to strengthen the recovery and foster employment, to reduce risks and ensure strong, sustainable and balanced growth, including through structural reforms."Europe has adopted a broad package of measures to deal with the sovereign debt crisis faced by a few countries, and it will continue to address the situation with determination and to pursue rigorous fiscal consolidation alongside structural reforms to support growth."The United States will put in place a clear and credible medium-term fiscal consolidation framework, consistent with considerations of job creation and economic growth."In Japan, while providing resources for the reconstruction after the disaster, the authorities will also address the issue of sustainability of public finances."(Reuters)
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Faced with rising oil and food subsidy, Finance Minister Pranab Mukherjee said on Wednesday the austerity measures, like curbs on foreign travel, will help government save "wasteful expenditure"."I am quite confident that some wasteful expenditure will be saved," Mukherjee said adding a similar exercise to check government expenses in the past had paid dividends.In a communication to ministries and departments on July 11, the Finance Ministry had said there would be a ban on holding seminars and conferences in 5-star hotels and that foreign travels would be undertaken only in necessary and unavoidable cases.Besides, there is a ban on creation of jobs in the government.The government faces a challenging task to keep fiscal deficit target at 4.6 per cent of the GDP in 2011-12."...last time when we had the austerity measures a couple of years back, we had good dividends and let us see how does it work (this time)," the Finance Minister said.In September 2009, the government had put several restrictions on expenditure. These included instructions to ministers to fly in the economy class, leading to some resentment and the controversial "cattle class" remark by then Minister of State for External Affairs Shashi Tharoor.Due to volatility in global crude prices, the government's subsidy on fuel is likely to increase. It spends about Rs 73,637 crore a year on fuel and fertiliser subsidies.It plans to spend about Rs 82,000 crore on food subsidy this fiscal which may go up to Rs 95,000 crore once National Food Security Act comes into play. Besides, the government is expected to lose around Rs 36,000 crore during the current fiscal on account of duty cuts on petroleum products.On the other hand, the government may find it difficult to mop up Rs 40,000 crore from sale of equity in the public sector companies during the 2011-12 financial year.Austerity measures were announced to ensure availability of adequate resources for meeting the development and priority schemes, the Finance Ministry had said.(PTI)
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State-owned oil companies have threatened to stop jet fuel supplies to Air India after the cash-strapped national carrier repeatedly defaulted on payment of fuel bills.Air India was put on cash-and-carry from December, but the airline has not been able to pay for even its daily fuel purchases.Oil companies last week sent a notice for stopping aviation turbine fuel (ATF) supplies to Air India at some airports like Calicut and Jaipur, officials said here.Air India owes Indian Oil Corp (IOC) about Rs. 1,900 crore. IOC meets 63% of Air India's jet fuel needs. The national carrier has run up an outstanding bill of over Rs 300 crore with Bharat Petroleum Corp Ltd (BPCL), while its dues to Hindustan Petroleum Corp Ltd (HPCL) are relatively small.Officials said Air India buys jet fuel worth Rs 18.5 crore per day from the three state oil firms, but it pays only Rs 13.5 crore.This led the oil firms to threaten to stop supplies of ATF beyond what Air India pays for."Oil companies already incur huge losses on selling diesel, domestic LPG and kerosene way below their production cost and to expect them to sell ATF at subsidised rates is not acceptable," an official said.At a meeting called by cabinet secretary K M Chandrasekhar in March to resolve the payment impasse, Air India sought discounts similar to the ones given to private airlines.Oil companies give a Rs. 1,600-1,800 per kilolitre discount to private airlines on promise of assured payment. After adding finance charges for a 90-day credit period, the discount comes to Rs. 3,600 per kl."Even if this discount is stretched to Rs. 5,000 per kl, the Rs. 18.5 crore per day fuel bill will not become Rs. 13.5 crore. After including some more concessions, the fuel bill at best will come down to Rs. 17 crore a day, a far cry from the Rs. 13.5 crore paying capacity of Air India," he said.Officials said Air India was discussing only the payments for future ATF purchases and there was no word on how the state carrier will clear the past outstanding."Air India talks of getting the same discounts as private airlines, but does it know that ATF purchases by airlines such as Jet Airways and Kingfisher Airlines are covered by a bank guarantee in case of default?", an official asked.Both Jet Airways and Kingfisher have brought down their outstanding to manageable levels and have provided bank guarantees to cover against any default.(PTI)
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Terror struck Mumbai when three serial blasts rocked crowded areas in Zaveri Bazar, Dadar and the Opera House on Wednesday evening leaving at least 50 people injured in a grim reminder of 26/11 when 166 people were killed.In New Delhi, the Union Home Ministry said the multiple explosions were a terror strike and that Improvised Explosive Devices(IED) were used.According to govenment sources, 18 people were dead and 131 injured.Police said the nature and intensity of the explosions were not known but the blasts revived memories of the terror attack in November 2008 in which 166 persons were killed by 10 gunmen of Pakistan-based terror outfit Lashkar-e-Toiba(LeT).Police said all the blasts took place in a crowded markets and busy areas.The first explosion took place in south Mumbai's Zaveri Bazaar, near famous Mumbadevi temple, this evening in which some people were injured, said Mumbai Police spokesperson Nisar Tamboli. The bustling market also has a number of jewellery shops.The second explosion was reported in a taxi in Dadar area, he said. The site of the explosion was close to dadar railway station."We are verifying the nature of explosions. At this moment I cannot say anything more than this," Tamboli said.The third blast was reported from Opera House in Charni.Teams of Maharashtra Anti Terrorism Squad (ATS) have rushed to the spots. Maharashtra PwD minister Chhagan Bhujbal said, "Can confirm blasts in three locations. Can not say how many people injured or killed. Impossible to say anything about it right now. Trying to gather information."The blasts came on the birthday of Mohammad Ajmal Amir Qasab, the sole surviving gunman from the 2008 Mumbai attacks which killed nearly 170 people.They hit the city around 1900 local time (1330 GMT).The city has been put on a state of high alert.The authorities have not yet said who they believe might be behind the explosions and no group has said it carried them out. Prime Minister Manmohan Singh spoke to Maharashtra Chief Minister Prithviraj Chavan shortly after the serial blasts shook Mumbai.NSG perssonnel and forensic experts were rushed to the western metropolis in a BSF plane from Delhi.Today's explosions came two days after the fifth anniversary of the Mumbai serial train blasts in which 186 persons were killed.The explosion in Zaveri Bazaar occured in an electric pole in a crowded area. Zaveri Bazar area has been constantly targeted in the blasts and 54 people were killed during the explosions in 2003.High alert has been sounded in the national capital and other parts of the country. (PTI)
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The recent opening of Delhi's T3 (new international airport terminal) is a chapter of jubilation in India's infrastructure story. Built in a record 37 months at $3 billion, this engineering feat exemplifies how India's infrastructure challenges can be overcome with technology and funding. However, there are three caveats — India requires much more than just physical infrastructure; technology and funding are not the only enablers necessary; and long-term goals are much more difficult to set and follow up on. Unfortunately, India's higher education infrastructure seems to be crippled by debilitating circumstances on all three counts.The Slip Is ShowingWith over 25,951 colleges and 504 universities, India has the largest number of higher education institutions in the world. At 13.64 million students in universities and colleges, another 3 million enrolled in distance learning programmes and over 1.4 million in degree level programmes in technical education, India also has the third-highest aggregate enrolment after the US and China. However, India's 12.4 per cent gross enrolment ratio (GER) in higher education as claimed in the HRD (Human Resource Develoment) ministry's Report to the People on Education 2009-10 is half the world average, one-third the average of BRIC countries, and one-sixth that of developed countries.Between 1980 and 2007, enrolments in higher education in India grew at a CAGR (compound annual growth rate) of 5.39 per cent compared to 13.07 per cent in China. Making the grade at 15 per cent GER by 2011-12 requires a growth of 7.5 per cent in higher education enrolment for all states with the population in the age group 18-23 growing at 2 per cent throughout this period — a near impossibility. Considering that Uttar Pradesh, Bihar and Madhya Pradesh will account for 40 per cent of the increase in the age-group of 15-59-year-olds with only 10 per cent share in GDP growth, there will be an increasing migration of knowledge capital from these states. On the other hand, Maharashtra, Gujarat, Tamil Nadu and Andhra Pradesh will account for 45 per cent increase in GDP with less than 20 per cent addition to the working population.So, making higher education inclusive by bringing about parity in GER across both genders, various population sub-groups, religions or even between urban and rural populations is a pipe dream. For India, achieving higher education target numbers is paramount but the quality of higher education is equally critical.Treat The Disease, Not The SymptomsWhile GER is the most important metric to target, it is not a solution. Many studies have pinned the blame for this decadent state of affairs on lack of reforms, where state universities have old syllabi, decrepit infrastructure and are mostly focused on arts, commerce, science courses that do not impart employable skills. It is also true that almost half of India's higher education institutes have come about in the past 10-15 years, through private enterprise. So, it may be surmised that private institutes have also not contributed to the quality aspect of higher education. According to a survey by National Assessment and Accreditation Council (NAAC), about 90 per cent colleges and 70 per cent universities are of middling or poor quality with depleted and inferior faculty, libraries, computing facilities and other support infrastructure.Missing Quality StandardsIn a changing world, quality standards are dynamic. What is world class today may become irrelevant soon. Ten-year-old course content, little or no industry focus in skilling and poor research environment are only the tip of some cold facts that threaten to sink India's knowledge voyage in high seas. Quality research is not on the agenda of any of the stakeholders — students, teachers, institutions, state and central governments, or even the private sector. India ranks a lowly 13th among nations with less than 2.6 per cent share in published research papers between 1994 and 2004 compared to 38.5 per cent for the US, 10.3 per cent for Japan, 9.5 per cent for Germany and 8.6 per cent for the UK. China, a relatively late entrant in academic research, pipped India to reach 9th position with 3.9 per cent share. Also, each paper published in India during this period was cited 3.17 times on average compared to 13.01 for Switzerland, 12.31 for the US, 11.7 for the Netherlands, and 10.54 for the UK. None of India's universities, colleges or technical institutes rank amongst the top 500 universities in the world, save two of the 15 IITs.break-page-breakChina has 30 institutes in the same list. Outcomes of the research create opportunity to develop completely new industries, and these opportunities create human capacity to develop more higher education institutes, as happened in India with the IT boom in the 1990s. R&D is the engine as well as the fuel that powers higher education. In India, the engine itself needs overhauling. Of the Rs 84,000 crore allocated in the 11th Five-Year Plan, not even Rs 30,000 crore have been spent in the first three years.‘Tomorrow-Ready' Knowledge EconomyAs time is running out for the 11th Five-Year Plan, numbers may get misreported in the misplaced enthusiasm to meet GER targets. The government must prevent misreporting and accreditation of sub-standard institutions while promoting self-governance and private participation. Importantly, inclusiveness should not become an alibi for lack of quality.Thankfully, the HRD ministry is showing some urgency in adapting the National Knowledge Commission and Yashpal Committee reports. Both the committes have recommended reforms in existing universities and have proposed coalescing of functions of professional bodies, with variations in emphasis. While National Knowledge Commission has suggested a structure with UGC and a regulatory body, Yashpal Committee prefers a single commission that subsumes all professional bodies including UGC with a distinct mandate for research apart from higher education. Both committes have highlighted the need for at least 1,500 more universities to meet a GER target of 15 per cent. Importance of upgraded curricula, periodic assessment processes, and recruitment and retention of quality faculty have been highlighted.Also, we should set up research centres at select central universities to benchmark and plan their higher education programmes against global institutes of excellence. It is equally important that we develop a centralised inventory of skills, vocations and cross-disciplines that will be necessary in the next 10-20 years. Research–academia–industry–private funding must form a strong alliance to not only build institutions of tomorrow, but also shape the higher education and research of the future. With one of the most educated leaders of the world at the helm, India today needs to make the best of this opportunity to reap its demographic dividend, lest generations to come curse us for building a nation that has world class airport terminals to travel to Harvard, Cambridge and Tsinghua universities but not a single centre of excellence for higher learning to prevent this exodus.The author is director of Lucid Solutions(This story was published in Businessworld Issue Dated 23-08-2010)
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