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INDUSTRIAL ECONOMIST
Cover Story

A scandal waiting to happen: The lessons for investors from this sordid episode is that there is no substitute for due diligence.
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Inklings

IE joins the nation in praying for the speedy recovery of Prime Minister Manmohan Singh.
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The Satyam fiasco points to the failure of several watchdogs: the audit system, the regulatory mechanism and the media.
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Editor's Notes

The Pravasi Bharatiya Divas, (PBD) held for the first time in Chennai, proved to be a non-event.
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Banking

Small banks - their efficiency and future: After 25 banks going under liquidation in the US, concern clouds small banks in India.
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Nuclear Power

In spite of hurdles faced and delayed commissio-ning, the Kudankulam project holds enormous promise for Tamil Nadu and India.
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Macro Economics

Movements in commercial bank interest rates – both deposit and lending – have not kept pace with the steep reductions in the RBI’s reference rates
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 l macroeconomicsII
 l  macroeconomcisIII

International

In a spectacular swearing-in ceremony attended by over a million enthusiasts and watched by over a billion TV viewers worldwide, Obama outlined an agenda for reviving America.
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With two wars on, the worst economic crisis since the Great Depression of the l930s, and a planet in peril, Obama will have no easy time as he tries to kickstart the US economy.
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States

Andhra Pradesh: Big spurt in food production.
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Tamil Nadu: Pravasi Diwas - an opportunity wasted by Tamil Nadu
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Interview

L&T-ECC continues to perform well in spite of the current slump – orders looked in the current year are estimated at Rs.34,000 crore and revenues at Rs.18,000 crore.
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Comment

Madoff, Madoff, every where: Bernard Madoff has proved that old-fashioned Ponzi schemes are still very much part and parcel of the financial muddle that the US is in.
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Oil: Petrotech 2009

Against the backdrop of depressed oil prices, issues such as availability, supplies, future trends on production...
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Commodities

India’s spices exports are heading for a new record this fiscal.
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Corporate News

Fiat India eyes to boost sales through Linea...
M&M launches Xylo...
Ashok Leyland bags Rs.1190 crore DTC order.
TN to spend over Rs.20,000 corre on power capacity augmentation
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Business Briefs

Bernard L Madoff, the former chairman of Nasdaq and a force in Wall Street for half a century, was hailed as the Tsar of high finance in Manhattan.
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Gujarat


Development as a mass movement…

Narendra Modi has successfully conducted another Vibrant Gujarat Global Investors Meet. The MoUs signed during this year’s summit of a whopping Rs.12.14 lakh crore exceed the total of such MoUs signed in the previous three summits.

The VGGIS-2009 attracted the leading lights of business and industry that included Ratan Tata, Mukesh Ambani, Sunil Bharti Mittal, Anil Ambani, Kumara Mangalam Birla, K V Kamat, Sashi Ruia, Gautam Adani and scores of others who are the who’s who of Indian business. This year’s summit also attracted a number of ambassadors of other countries and 45 business delegations from abroad apart from several hundred NRIs.

There was wholesome praise from the business leaders; Sunil Bharti Mittal and Anil Ambani expressed their desire of Modi leading the nation as prime minister.

The exhibition and the two day meet show-cased the development thrust of Gujarat. A fine blend of political and bureaucratic efficiency that is investor-friendly and a congenial investment climate of the state backed by its rich infrastructure, became the talking point. In his characteristic evocative address, Modi presented the advances made by his state in several fronts: “development is holistic, uniform and all pervasive; instead of attempting incremental changes, the attempt is to make a quantum jump and for a total change; to make people effective partners by empowering them; focus on the development of weaker sections and the application of technology to ensure easy and effective governance.”

Panchamrut the five nectars…

Modi pointed to a high powered integrated strategy that attempted energy security for all, conservation and management of water, education for all particularly for the girl child, harnessing and development of human resources and safety and security from threat and diseases. This comprehen-sive thrust has enabled Gujarat emerge not only as the most developed state of India, but also a state with uniformity of development, good quality of life and contented and progressive population. Some indices:

  • Growth rate maintained for several years at 10 per cent p.a, targeting 11 per cent for the next five years.
  • Several lakh water harvesting structures involving people.
  • Enrolment and retention of children in schools, particularly the girl child. Every year, in a span of three days, all the villages are covered for this purpose. School enrolment is almost cent per cent with the drop out rate reduced from 20 per cent to 3 per cent.
  • Statewide campaign for cleanliness in rural and urban areas.
  • A month-long, statewide annual campaign for imparting scientific knowledge and techniques to farmers for enhancing agriculture productivity and incomes. Farmers are empowered with tools of technology.
  • A public-private partnership model for building infrastructure.
  • The jyotigram scheme ensures three-phase-round-the-clock electricity for all the 18,000 villages: This had added to the joy of living in the village, but also help to revive rural economy.
  • The Chiraanjeevi Yogna is designed to tackle mother and infant mortality; registered private gynecologists carry out institutional delivery of women of poor sections. The government pays the charges directly to the gynecologists. Thousands of safe deliveries are conducted.
  • Swagat, the state-wide attention on grievances by application of technology, has been launched utilising the huge wide area network, connecting the state government offices up to sub-district level.
  • 38 per cent of the Dedicated Freight Corridor between Delhi and Mumbai to a length of 565 km lies in Gujarat. The state dedicates 150 km on both sides of DFC for special development. Six industrial nodes have also been proposed as part of the Delhi Mumbai Industrial Corridor. There is huge potential for investment and employment. A high power Japanese team funding the DMIC/DFC participated in the summit. Japan was the country-partner at the Summit.
  • Apart from SEZs in which the state excels, Gujarat is also developing mega industrial investment regions for specific sectors. These include the Gujarat international finance tech city.

Where Gujarat leads…

The Industrial Extension Bureau (iNDEXTb) provides other interesting details.

  • The state is the world's largest centre for polished diamonds, largest producer of isabgol, the largest grass root petroleum refinery and the third largest steel hub.
  • Asia's largest producer of denim and wall clocks.
  • India's largest producer of drugs, chemicals and petrochemicals; salt, soda ash and marine products; sponge iron; SAW pipes and ERW pipes; milk and milk products and man-made fibres.
  • The state accounts for 22 per cent of investments in the country during 2007-08 (Maharastra has ranked second with investment of 12.7 per cent.)
  • Last year Gujarat accounted for 14.3 per cent of exports.
  • The 1600 km coast line has been developed into the large number of minor and major ports that handle increasingly larger volume of foreign trade.

Disappointingly, the Congress party and the media, especially the television medium, have not yet been reconciled to the increasing popularity of Modi not just in Gujarat but across the nation. Leading television magnates like Rajdeep Sardesai and Barkha Dutt still present rabid anti-Modi campaigners like Congress spokesman Manish Tiwari and Teesta Settalvad to maintain a semblance of balanced presentation. Mature nations should push the past behind and look ahead at the future. It is true the jury is not yet out on Godhra; but in our laid-back judicial system it is not out even on older cases like the anti-Sikh riots of 1984 or on Bofors. Should media continue to harp on Godhra? It has hurt enough of the Gujarati pride.

 
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