By D.P. Sharan The BJP appears to be working out multi-pronged strategies to ward off possible threats from rising prices - in a sequel to that experienced by pulses - of agricultural goods. While the party is exploring economic solutions through political gambits, it is all set to resolve the political crisis in the Western region in particular by roping in trade bodies that are dominated by political stalwarts. The BJP, which has been instrumental by proxy in poll-bound Bihar to abet the divide in the non-NDA grand alliance and the newly-formed third-front, has made enough political overtures towards Nationalist Congress Party (NCP) chief Sharad Pawar recently. The party can neither afford to ignore a political crisis in Maharashtra, where it has a coalition government with the Shiv Sena, nor can it resolve the issues of price rise of pulses and other commodities without negotiating with the economic bodies that hold substantial control over agricultural produce and their marketing. The ongoing mutual distrust between the BJP and its ally Shiv Sena in Maharashtra is believed to have reached an alarming level and the BJP is on the lookout for an alternative partner to dump the Shiv Sena. The NCP is believed to be the party's ideal choice to provide an alternative to the Shiv Sena. Political experts believe the NCP and Pawar are supposed to play a key role to help the BJP get rid of both the political and economic crises. Pawar has complete control over the association of cooperative societies that implicitly determine the pricing and marketing of agricultural produce in Maharashtra and many other states that are supplied commodities by Maharashtra. There are about 2.3 lakh cooperative societies in Maharashtra and barring a few, all of them are dominated by NCP and the Congress. Victory in the regular elections to the cooperative societies for any political party is believed to be significant in the light of the fact that they hold the reign of the rural economy: cooperative banks, sugar mills and dairies. Since private agencies dominate the Indian foodgrain trade and farmers often complain of getting lower prices for their produces owing to flaws in the marketing system and other malpractices, cooperative societies are expected to function as competitors to private traders in favour of farmers. The cooperative organizations have been recognized for the marketing of the produce of farmers and making inputs available for them at the right price and time. These cooperative institutions pool the produce of the small farmers with a small surplus in the market and improve their bargaining power. They also help government agencies in the execution of the policy decision bearing on the procurement and distribution of foodgrains and other essential commodities. They act as agents of the government in the procurement of foodgrains and other commodities at the announced procurement or support prices. The state-level marketing cooperative societies have their apex organization, the National Agriculture Cooperative Marketing Federation of India (NAFED), which is the central nodal agency for undertaking price support operations for pulses and oilseeds. While the state marketing federations and the national cooperative development corporations are members of NAFED with its headquarters at Delhi and branches in Mumbai, Kolkata and Chennai, it has jurisdiction across the country. As such, cooperative societies under the control of the NCP or Pawar are potent enough to dictate their terms as members to NAFED while deciding prices for pulses and oilseeds. The recent past bears testimony to the growing proximity between the BJP and the NCP. Senior leaders of BJP, including Prime Minister Narendra Modi and Finance Minister Arun Jaitley, have hailed Pawar's role in public in their bid to send political overture towards him. While Modi shared in public how Pawar had been cordial and supportive to him when he was the CM of Gujarat and Pawar was the agriculture minister at the Centre, Jaitley visited Pawar's home town Baramati in Pune district recently in connection with attending a function at an educational institution that has been founded by Pawar. Jaitley praised the Baramati-model of development under the leadership of Pawar and endorsed the schemes to be replicated across the country. In fact, the NCP has 41 MLAs in the Maharashtra Assembly while the BJP, with a numerical strength of 122 legislators in the house of 288 members, requires only 15 MLAs to hold on to power if it severs ties with the Shiv Sena. Subsequently, the NCP has preferred to move out of alliances in the fray against the BJP and its alliance partners in Bihar. First, the NCP severed its ties with the non-NDA Grand Alliance and then it moved out of the third front too - albeit reacting the to the pro-BJP statement by its co-ally Samajwadi Party chief Mulayam Singh Yadav. Indeed, the overture appears to be entirely political and seems nothing beyond an exercise by the BJP to settle scores with a tormenting Shiv Sena in Maharashtra, but possibilities of an ulterior economic motive behind the strategic political move cannot be ruled out too.
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After the grand success of Conclave & Expo on Food and Beverage 2015, BW Hotelier hosted The Rooms & Housekeeping Conclave 2015, its second event that was organised by BW Businessworld on 1 October 2015 at Le Meridien, New Delhi.Discussions at the conclave saw participation from the Indian hospitality sector which presented its views on subjects such as the need to hire multi-skilled workers, waste reduction and ways to increase revenue per guest. The participants also discussed issues pertaining to revenue management and housekeeping. The event witnessed both group discussions on crucial topics surrounding rooms as well as knowledge sessions by eminent Indian hoteliers.(This story was published in BW | Businessworld Issue Dated 02-11-2015)
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Five minutes, Five ideas! BW Smart Cities asked speakers at a recently held THINKATHON in New Delhi to ditch PowerPoint presentations, put their thinking caps on and share their five big (or small ideas) for making Indian cities smarter. Speaking at the inaugural session, the guest of honour and former urban development secretary M. Ramachandran mapped the journey from the Jawaharlal Nehru National Urban Renewal Mission to its successors Atal Misison for Rejuvenation and Urban Transformation (AMRUT) and the proposed 100 Smart Cities Mission, kicking off the discussion.Some of the big ideas that were shared included the supremacy of better infrastructure planning on which a smart city edifice can rest; a strong legislative framework with a strong regulatory regime; a resolution of conflict for public spaces via shared infrastructure, vertical segregation and multi-modality; building more humane cities that are climate resilient; financial self-sustainability for cities to get fitter; and the need to think ‘safe’ before we think ‘smart’.(This story was published in BW | Businessworld Issue Dated 02-11-2015)
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Suchetana Ray At a time when the only things trending in India are intolerance and soaring pulse prices, RSS supremo Mohan Bhagwat’s address to the nation was keenly followed by all and sundry. On the occasion of Vijayadashami, Bhagwat delivered his customary speech at Nagpur to mark the founding day of RSS. His 55-minute speech assumes significance not only because it was telecast live by the national broadcaster but also since this speech by the head of the Hindutva fountainhead will set the agenda for all its political and social affiliates. Many also keenly followed Bhagwat’s speech as his last had created a storm for its comments on reservation; an issue crucial to the ongoing Bihar elections. Mohan Bhagwat’s speech in Nagpur on Vijayadashami is an annual affair, but it has never been of national significance till Doordarshan decided to telecast it live since last year, ensuring its relevance to the nation. While no mention on reservations was made today, Mohan Bhagwat spoke at length about India’s culture of unity in diversity. He went on to explain that, “Small episodes happen. They get exaggerated and presented in a big way... But it does not distort Indian culture, Hindu culture. Since time immemorial, it respects diversity, coordinates among diversities to establish unity... This is Hindutva." He was obviously referring to the reports of lynchings over cow slaughter and beef consumption hitting headlines from several corners of the country. Bhagwat’s majoritarian arrogance is not to be missed. After all in a country of over a billion how does it matter if a few are killed, as long as they don’t belong to the majority community. With his comments today, Bhagwat now joins the long list luminaries in history who have been known for their communalism; racial or political. Hitler in 1920 had referred to Jews as “political bacillus” saying their annihilation is inevitable just as the “eradication of any disease”; so too much attention should not be paid to this. More recently, in 2008 the then Chief Minister of West Bengal, Buddhadeb Bhattacharya had commented on the Singur killings referring to them as “small and unrelated episodes”. We all know that the Singur agitation and State Government approved police firing there was the beginning of the end of the 34 year-old Left-front regime in that State. Such disdain by Bhagwat in the face of growing intolerance in the country, many believe, will also set the tone for the government of the day; already under severe criticism for its silence over the several killings across the country, be it for daring to dissent or for simply being part of the minority community. The RSS mouthpiece Panchjanya, has already carried a cover story saying the Vedas order the killing of “sinners” who slaughter cows. And now Bhagwat has also put his stamp of approval to these killings by not condemning these heinous acts. Instead by declaring his myopic view of diversity on national television. According to Bhagwat, unity in India is possible only if the diversity of this country is forced to follow the diktats of one community.
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Sandeep Bamzai For years, one has been hearing about the merger of Indian public sector telecom twins - Bharat Sanchar Nigam Ltd and MTNL. Every once in a while it surfaces like a trial balloon and then is deflated and forgotten. In September, the periscope resurfaced yet again. Now it is believed 'yet again' that the morphing into a single entity process is underway with a timeline attached to it. Effective April 1, 2016, the two state-owned utilities with separate charters - BSNL to serve customers outside of metro Mumbai and Delhi and MTNL with the limited swathe of the two metropolitan cities - are finally likely to become one merged organisation. If this idea fructifies, then one only hopes that the merger is more organised than the infamous Air India- Indian Airlines which after so many years resembles a train wreck. At this juncture, this is the only silver bullet to save the twins. Sandeep BamzaiBut that is secondary. In the long line of deadlines, the latest of July, 2015 has already been missed despite the PMO asking IIM Bangalore two work on a feasibility study. Remember that this state owned telecom entity will have to compete in the brutal and litigious world where private operators are struggling to cope. Of the many imponderables in the merger path, a major impediment was the fact that MTNL was also listed on the US bourses. It is believed that MTNL will be delisted before the final process of merger with unlisted BSNL and telecom equipment manufacturer ITI Ltd is green lighted. In 2001, MTNL was listed on the NYSE and then in January, 2013, its ADS was listed on the OTCQX. OTCQX provides a listing platform and access to US investors and to non-US companies listed on a qualified stock exchange in their home country. As such, MTNL has to be delisted from both OTCQX and the Bombay bourses. Government owns 56.25 per cent shareholding in MTNL. Debt is another issue that the owner - Govt of India - has to grapple with other than buying back MTNL shares. Earlier this year, BSNL's debt stood at Rs 4,459 crore, while MTNL's debt was overflowing at Rs 14,120 crore at end of the last financial year. It has been clear as daylight for a long time that the government's telecom twins can't tango anymore.BSNL and MTNL have seen rapid erosion in their top line, earnings and brand equity as they struggle to stay afloat in an increasingly competitive environment. Realistically speaking, they are both dead in the water due to the competition that is killing them softly. BSNL reported a net profit of over Rs 10,000 crore in 2005-06. By March 31, 2011, it was deep in the red by Rs 6,384 crore. Its select indicators revealed that it had a turnover of Rs 29,687 crore and a net loss of `6,384 crore based on available financials for March 31, 2011. Since the trajectory was southwards, it only accentuated - BSNL and MTNL incurred losses of Rs 3,785 crore and Rs 1,567 crore, respectively, till September 30 for the 2014-15 financial year. The balance sheet has seen large strokes of red for years now - BSNL had incurred a Rs 7,019 crore loss in 2013-14, Rs 7,884 crore in 2012-13 and Rs 8,850 crore in 2011-12, whereas MTNL had reported a loss of Rs 4,109 crore in 2011-12 and Rs 5,322 crore in 2012-13. MTNL showed a profit of Rs 7,825 crore in 2013-14 mainly due to write back of provisions on account of pensionary liabilities and spectrum amortisation costs after decisions of government taken for revival of MTNL. Bidding for expensive spectrum came as a death blow to these twins, subsequently the government chose to give financial support of Rs 6,724.51 crore to BSNL and Rs 4,533.97 crore to MTNL on surrender of broadband wireless access spectrum. Worse still is its vast army of employees - as many as 229,447 across the country reminding you of the problems being faced by Air India in rationalising its work force. A voluntary retirement plan for employees as part of efforts to revive the loss-making company has been in the works forever at BSNL. It had set an internal target of 99,700 employees - Group A (1,483), Group B (6,262), Group C (76,655) and Group D (15,214). The VRS has been on the table since 2009 when a panel headed by Sam Pitroda, adviser to the Prime Minister on public information infrastructure and innovations, recommended that BSNL take the VRS route to prune its nearly 2.81 lakhstrong workforce by a third. The rapidity of its fall can be best explained through its annual revenue figures - BSNL saw its overall revenue fall from Rs 39,715 crore in 2006- 07 to Rs 38,053 crore in 2007-08 and further to Rs 35,812 crore in 2008-09, before dipping to Rs 32,046 in 2009-10. For 2014-15, revenues were down to Rs 27,996 crore. It is actually a most piquant situation for a combined BSNL and MTNL separation scheme involving 1.21 lakh workmen will cost the government an additional Rs 17,445 crore. Former telecom secretary and NASSCOM boss R. Chandrasekhar once made a very telling point to this writer, "DoT needs to take proactive and pre-emptive measures to salvage and save these two companies. Remember, there is a public interest which is being served by public sector companies. If they are left unattended and a business-as-usual approach is applied, then they could run into severe problems.Drastic measures are the need of the hour and we are alive to this." Yes, BSNL in particular serves a public interest purpose by going deep into the innards of the country through its rural telephony mandate and by hooking up telecom infrastructure which is commendable because private operators have been loathe to doing this for it is not lucrative enough. MTNL is an abomination. It has a market capitalisation, as of Wednesday closing, of Rs 1,165 crore on an end of day price of Rs 18.50 and 34,391 employees as of December 31, 2014. For the quarter ending June 30, 2012, its losses had overtaken its revenues - Rs 1,059 crore and Rs 833 crore, respectively. For the full year ended March 31, 2012, the story was exactly the same - revenues of Rs 3,368 crore against losses of Rs 4,018 crore. The total debt on its books for 2011-12 was Rs 9,647 crore and its staggering wage bill was Rs 1,740 crore. Throw in a pension bill of Rs 340 crore and you can't begin to imagine the financial burden that the running of this company places on the government. its financials for 2012-13 were a total income of Rs 3783 crore squared off against a net loss of Rs 5322 crore. For 2013-14, total income stood at Rs 3872 crore and a net profit of Rs 7820 crore for reasons explained above. Stock broker Ramesh Damani appalled at the state of play had told me, "They are basket cases. Obviously, they have been bypassed by the telecom revolution. Both have to be sold off; there is no business case anymore for the Government to stay in the telecom sector. "In a competitive set-up, they have seen erosion in their market share. MTNL's market cap is less than its payroll cost." Both companies went belly up primarily because they were asked to match the top bids made private telecoms in the 2010 3G and BWA auctions. This was the inflection point for the twins whose financial condition had already begun to worsen due to tough competition. The matching of bids broken their backs. MTNL had to shell out Rs 6,564 crore for the 3G spectrum and another Rs 4,534 crore for the BWA spectrum in the Delhi and Mumbai circles. At the start of the previous financial year, the company had a net cash position of around Rs 6,300 crore. After the spectrum payments and the operational losses incurred in 2010, it ended fiscal 2011 with a net debt of nearly Rs 11,000 crore. The company's high level of indebtedness further weakened its financial performance. Staff costs, excluding expenses for retirement benefits, fell marginally to Rs 423 crore, while the actual payout for retirement benefits climbed by 22 per cent to Rs 124 crore. Besides, provisions for retirement benefits rose to Rs 254 crore. "There is a clear business case for a merger," Chandrasekhar had said to me, adding, "There is no ambiguity about this and, in fact, it is now increasingly being driven by compulsions; this is the only way to go." Public interest is all very good, but market forces determine the future of commercial entities. Relics of socialism cannot be allowed to continue if they don't bring any value to the economy. Somewhere this realisation eludes those who dot the corridors of power in this country. Sadly, the mandate with which these companies were seeded has been overtaken by free market policies, leaving them in a shocking state of disrepair. Saving them through a merger and a rationalisation of workforce may be a reform that will make headlines, for one has waited endlessly for its actualisation. My concern is that October is almost over and the process of buying back MTNL shares hasn't even begun...
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A.S. Chandhiok In the past few days, the Supreme Court (SC) has been expressing constitutional disappointment. The government was called upon to update the court of the steps it had taken to implement a Uniform Civil Code as decreed by Article 44 of the Constitution of India. Incidentally, the State of Goa is the only state in the country having a Uniform Civil Code, and it is working well. A.S. Chandhiok Unlike the instances in 2G and coal case, in the Sanjeev Rajendra Bhatt’s case the Apex Court refused to constitute a Special Investigation Team (SIT) last week and remanded the matter back to the trial judge. And yet in the same week came the much-awaited judgment of the Constitution Bench striking down the National Judicial Appointments Commission Amendment Act (NJAC). The three decisions dealing with three distinct matters, if put together, establish one predominant fact, namely, judicial review is a constitutional affair and the decisions by the SC are not given for any political or extraneous reasons, but juridical alone. All the three decisions are in accordance with the traditions, the discipline and the constitutional and statutory interpretation of law. In the NJAC case the apex court following the past precedents came to the conclusion that independence of judiciary is a paramount part of the basic structure of the Constitution. No Parliament can amend the Constitution so as to take away, abrogate or destroy its basic structure. The judgment running into over a thousand pages nullified the Amendment Act on the ground that it violated the basic structure of the constitution, thus invalidating the first constitutional amendment and law sought by the present Parliament. Over the years, one has seen on our television screens what actually has been happening in our parliamentary sessions, both in the Rajya Sabha and Lok Sabha. What the present party in power was doing in the last regime as the Opposition has come to haunt it with the present opposition playing out the same shenanigans. No parliamentarian, it is apparent, has thought of ‘we the people,’ who have constituted and elected them to the parliament for the welfare and well-being of the people. Acts are passed without discussion, the last one being the Delhi High Court Amendment Act 2015, the only Act passed by the Parliament in the last session, which cost the public exchequer around Rs 260 crore. Judicial review therefore takes a more serious and important role to play where other compartments of the Constitution do not care to look at their responsibilities and do not discharge the obligations cast on them. The judgment on the NJAC Act which was ratified by 20 State assemblies restores the collegium system of appointing Judges to the Constitutional Courts. The framers of the Constitution had given a serious thought to make the executive, the legislature and the judiciary strong and vest them with necessary prestige and authority to ensure full democratic freedom. Working of democratic governments across the world makes it clear that the executive, the legislature and judiciary are not exclusive in their authority and functions, but are complimentary to each other with clearly defined functions. The Constitution provides for an independent judiciary to resolve the inevitable disputes over the boundaries of constitutional powers, which arise in the process of governance and has therefore entrusted them with the exclusive power of judicial review. In terms of Article 141 of the Constitution a judgment of the SC is the law of the land and binds one and all. One hopes and prays that instead of going either before the Hon’ble Court in an adversarial mode or taking any steps in the Parliament to undo what has been done by the Apex Court, the government would seek an advisory opinion and may prevail upon the Hon’ble Judges to have the assistance and recommendation from the Advisory Committee. The same may not be statutory, yet will help and assist the Collegium/Judges in appointing judges on merits alone. There are enough opportunities for one and all including the government, to urge ways in which the collegium system may be made transparent and progressively reformed and the selection process improved. While some may not agree that Hon’ble Judges alone should appoint judges, but once the independent judiciary is an essential feature of basic structure, then the best way to move forward is to improve the said system with modifications and changes which may work well. The Hon’ble Chief Justice and members of the Collegium who are virtually the appointing authority, could themselves create a judicial appointments committee to help and advise them in exercise of their function to select the best hands for the constitutional courts. They may work out the mode and interaction between them. The judicial appointment committee may include wide ranging constitutional dignitaries, viz., Chairman of the Rajya Sabha, Speaker of the Lok Sabha, Leader of the Opposition or the largest single party, a representative of the legal profession, the Attorney General etc. In the State, the Attorney General could well be substituted by the Advocate General, besides members from the Bar. The time has come for an active interaction with those outside the judiciary, to ensure that eligible and suitable persons are not overlooked and, of course, no wrong appointment is made for want of proper information. The proposed Judicial Appointments Commission, in which the CJI is a member along with two judges—as recommended by Law Commission of India some years ago—could have been a solution. However the amendment was challenged before the Supreme Court (known as the 2-judges case) soon after. It did not look realistic and was struck down. In this context, it is absolutely necessary that the judges of the apex court introspect (keeping in view past experiences) and ensure enough checks and balances when appointments are made by the collegium. A crisis of confidence is today threatening the very foundation of every institution; the judiciary is not far behind. The one legacy of the Raj that India could be proud of was an independent judiciary which maintained high standards of integrity. In recent times, the Bar and the public have been hearing instances of corruption, nepotism and other misconduct by judges across the country. The judges may look at the provisions of the Constitution’s 67th Amendment Bill, 1990. The said Bill was rejected; an opportunity of effective reform was lost, and has never come again. The matter is listed for further consideration on November 3. Let us hope the best suggestions come forth and are considered by the Supreme Court and the central issue of democratic accountability is also addressed. I am optimistic that the suggestions made on the next date of hearing would be taken note of by the Apex Court and modes and modalities will be worked out to make the collegium system work to the satisfaction of one and all. The government has extended its hand and the recommendations made by the collegium after the judgment of the Constitution Bench have been forwarded by the government expeditiously for approval of the President of India. The unity of the Executive and the Judiciary with the help of the Legislature can bring about a much awaited change in the appointment of judges. Public dissatisfaction with the judiciary is also mounting. The Judges’ behavior in the court is becoming arbitrary and often lacks the dignity attached to such high office. This, coupled with reports of corruption, and lack of financial integrity, is making the consumers of justice insecure. Sunlight is said to be the best disinfectant. Dark deeds are not just done in darkness, but in the secret recesses of power as well. With above 400 vacancies in various Constitutional Courts which seriously affect the justice delivery system across the country, it is a cause of concern to the Bench, the Bar and the public alike. One hopes this concern shall be immediately considered and remedied, keeping the process exposed to sunlight by the collegiums; and that men and women of merit and integrity alone will adorn the respective benches and the independence of judiciary shall continue to shine. The author, A.S.Chandhiok, is former Additional Solicitor General of India
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Weekend homes, also called second homes or vacation homes, are currently an oasis of market activity in India's the otherwise lacklustre residential real estate sector. In earlier years, only the affluent could and would invest in them - today, these properties are generating interest even from the country's middle class.So what exactly are weekend homes?After the basic needs of shelter are met, most people have an in-built desire to own properties to use purely for relaxation. Obviously, such properties need to be in the more bracing and beauteous environs than the cluttered, polluted cities. Because quality hotel rooms in most getaway cities are limited and also very expensive, people like to invest in weekend homes there for short, hassle-free getaways. With the basic luxury factor vested in such locations' mountains, lakes or religious shrines, these homes provide their owners with quality family time away from their routine city lives and often serve the extended purpose of providing a peaceful post-retirement life.Where are these weekend homes?The weekend homes segment exists in towns and cities that lie within 2-3 hours of road, train or even plane travel. The most famous weekend home destinations have been Shimla, Kasauli and Kerala, with Wayanad in Kerala being the most sought-after in the state. However, with increasing demand, more and more places are being successfully marketed as weekend home destinations: Lavasa, Lonavala, Alibaug and Igatpuri near Mumbai for weekend getaways, vacation spots like Mussourie, Ooty, Coorg and Goa, and the likes of Haridwar for the religiously inclined. What attracts buyers in this segment are primarily a serene location with good weather, good infrastructure and potential for rental income.Current trendsBecause weekend homes have caught on big time with the middle class, developers are now falling over themselves to cater to the demand. The primary reasons for the increased demand are the growth of the Indian economy, rise in High Net-worth Individuals (HNIs) and the steadily growing aspirational middle class.In absolute terms, the growth registered by the vacation home segment in year 2014 was 57% over the year 2013. The total number of properties sold was 1.3 million, and made up almost 21% of all real estate transactions. On an average, the second homes market is growing at a healthy rate of 10-12% per annum.With the larger real estate sector not showing any immediate signs of revival, the weekend / vacation homes segment is showing attractive growth. All major developers are vying to get a slice of the pie with options priced from a few lakhs to a few crores being launched quite regularly to cater to different end-users and investors.Are they good investment options?A weekend home is generally purchased only after one's primary home is secured. If the first home is debt-free and one has sufficient reserves, then investing in a weekend home make perfect sense.Nevertheless, it is good to keep some operative facts in mind while considering this option:· One spends only a limited amount of time per year in a weekend home. Nevertheless, there will be regular expenses on maintaining the property. If one does not wish to put the property on rent, the costs would include keeping a caretaker.· If the property is to be put out on rent throughout the year, there would be expenses on regularly upgrading the basic amenities· The average rental potential of such a property is 2-7% of its value. This may not suffice to cover one's expenses towards paying the mortgage, if one is availed of, and the maintenance expenses.· In a majority of cases, weekend homes attract higher rental revenue-generating tourist activity for only about 10-15 weeks a year. From a rental perspective, the rest of the year would be a slump.· Capital growth or appreciation will only happen in case the town or city has round-the-year tourist footfalls and additional activity of (and capabilities for) seminars, conferences, corporate training events, spiritual workshops, etc. Only such kind of market fundamentals resulting in regular rental demand in the city chosen for a weekend home can ensure appreciable capital value growth of a property.The future of the weekend homes segmentUnlike America, where almost 25% of the population has a second or a weekend home, India is just waking up to the idea. The potential of this segment is considerable and growth is assured, given that a luxurious lifestyle ranks high among the priorities of the current generation (rather than remaining just a dream, like the previous generation.)As a buyer, perform your research diligently and only invest if your financial goals are in place. These homes may not offer the best in terms of monetary returns on investments, but they can certainly make you rich when it comes to peaceful living, even in small spurts.The author, Ashwinder Raj Singh, is CEO – Residential Services, JLL India
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Sutanu Guru decodes the rise of aspirational Indians Everybody seems to have a favorite Virender Sehwag story if you go by the newspapers today. Since it also happens to be World Statistics Day, number crunchers have come up with analysis of how Sehwag and the impact he had on Indian cricket goes far beyond numbers. Of course, Sehwag is "up there" when it comes to numbers. He is the only Indian player to score a triple century in tests; Sehwag has two of them along with a 293 against Sri Lanka. If Indian selectors had been as benign with him as they have been with some other players and allowed him to play a few more tests against weaker teams, Sehwag would have ended his test career with an average of 50 plus. As it is, the swashbuckling batsman fell just short, clocking close to 49.5; the second best for an Indian test opener after the legendary Sunil Gavaskar. Cricket lovers would go on and on debating Viru and his exploits. For pop sociologists and economists like this author, the spectacular success of Sehwag is a classic symbol of the rise of the neo middle class Indian. Look at the adjectives and words used to describe Sehwag and you will find the neo middle class Indian. Sehwag came from an underprivileged background. All neo middle class Indians do so. Sehwag had no time or patience to respect and follow tradition and ordained norms of behavior. Neo middle class Indians revel in that. Sehwag had a fierce desire to do well not just on the cricket field, but also in financial terms. Neo middle class Indians share the same dreams. The inevitable question: what is neo middle class India? A few years ago, the Think Tank National Council of Applied Economic Research (NCAER) came up with a study that defined and counted the neo middle class Indian. According to this 2010 NCAER study, any Indian family with a household income between Rs 90,000 and Rs 200,000 a year was a member of the neo middle class. Families with income levels above Rs 200,000 a year had joined the middle class while those below Rs 90,000 a year were categorized as poor. According to this NCAER report, about 34% of Indians could be categorized as neo middle class. In 2015, they would number close to 500 million Indians. Pundits also use the term aspirational while describing this new class of Indians that virtually did not exist before 1991. To the last man, woman and teenager, these neo middle class Indians lived in poverty till just one generation ago. They have "lived" poverty and are fiercely determined to do better. Education, English, computers, Internet and the mobile phone are the tools that the neo middle class Indian uses to carve a better financial future. The author is convinced that the future of the Indian economy and society will be decided by these neo middle class Indians to excel and succeed. Many of them, like Sehwag will indeed succeed. But let's also remember these neo middle class Indians have to constantly struggle against social orthodoxy, prejudice and a hierarchical system imposed by the elites. This often results in tragedy. In 2012, a Dalit boy in Tamil Nadu named E. Ilavarasan fell in love with a Vanniyar girl Divya Nagraj. Vaniyyars, an "intermediate" caste, are currently led by Dr. S. Ramadoss and his son Dr. Ambumani Ramadoss. When the couple defied social mores and got married in October 2012, the father of the girl committed suicide. The Vanniyars went in a rampage and more than 200 Dalit huts in the village of the boy were burnt to the ground. Highly "educated" leaders like Ramadoss publicly complained about insolent Dalit boys wearing sunglasses, riding bikes and luring away their precious Vaniyyar daughters. A few weeks after the marriage, Divya returned to her family and the dead body of Ilavarasan was found near railway tracks. The cops concluded that the Dalit boy had committed suicide. This was in 2012, when Narendra Modi was not even in the race to become the Prime Minister. Such tragedies will keep occurring as "aspirational" India clashed with orthodox and traditional India. But make no mistake, in the longer run, it is the neo middle class Indian like Virender Sehwag who will emerge the victor. Arguably, that is the best thing to happen to India since the British left in 1947.
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