UPSC has announced changes in syllabus and pattern of the Preliminary Examination from 2011. The Preliminary Examination shall now comprise of two compulsory Papers of 200 marks each and of two hours duration each. Paper I - (200 marks) Duration: Two hours • Current events of national and international importance • History of India and Indian National Movement • Indian and World Geography - Physical, Social, Economic geography of India and the World. • Indian Polity and Governance – Constitution, Political System, Panchayati Raj, Public Policy, Rights Issues, etc. • Economic and Social Development – Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc. • General issues on Environmental ecology, Bio-diversity and Climate Change - that do not require subject specialization • General Science. Paper II- (200 marks) Duration: Two hours • Comprehension • Interpersonal skills including communication skills; • Logical reasoning and analytical ability • Decision making and problem solving • General mental ability • Basic numeracy (numbers and their relations, orders of magnitude etc.) (Class X level), Data interpretation (charts, graphs, tables, data sufficiency etc.—Class X level) • English Language Comprehension skills (Class X level). • Questions relating to English Language Comprehension skills of Class X level (last item in the Syllabus of Paper-II) will be tested through passages from English

ABBREVIATIONS AFNET: (The) Air Force Network. SGAI: Students Global Aptitude Index. AWARDS Jnanpith Award, 2007 and 2008 Eminent Malayalam litterateur O.N.V. Kurup has been chosen for the 2007 Jnanpith award. Noted Urdu poet Akhlaq Khan Shahryar has been chosen for the 2008 award. Born in 1931 in Kerala’s Kollam district, Kurup is a leading voice among the contemporary Malayalam poets. He has reinvented the narrative transition of Malayalam poetry through his long poems like ‘Ujjayini’ and ‘Swayamvaram’. Born in 1936 in a Muslim Rajput family in Uttar Pradesh’s Bareilly district, Shahryar shaped himself as an “intellectual poet”, whose poetry strongly expresses an

“ideological non-commitment”. His roots lie in his desire for self-realisation and his attempt to understand modern problems. Among his famous compositions is: “Seene Mein Jalan, Akhon Mein Toofan Sa Kyon Hai”. 57th National Film Awards Best feature film: Kutty Srank (Malayalam). Best Director: Rituparno Ghosh for Abohoman (Bengali). Best Actor: Amitabh Bachchan for Paa (Hindi). Best Actress: Ananya Chatterjee for Lahore (Hindi). Best supporting actor: Farooque Sheikh for Lahore (Hindi). Best supporting actress: Arundhati Naag for Paa (Hindi). Indira Gandhi award for best debut film of a director: Lahore (Hindi) by Sanjay Puran Singh Chauhan. Best popular film providing wholesome entertainment: 3 Idiots (Hindi). Nargis Dutt award for best feature film on national integration: Delhi 6 (Hindi). Best film on social issues: Well Done Abba (Hindi). Best Music Director: Amit Trivedi for Anurag Kashyap's “Dev-D”. Best Lyrics: ‘Behti hawa sa tha woh’ from “3 Idiots”, written by Swanand Kirkere. Best playback singer (male): Rupam Islam, for his rendering of ‘Kolakata’ in the Bengali film “Mahanagar”. Best playback singer (female): Nilanjana Sarkar, for Bengali movie “Houseful”. Best children’s film: Shared by “Putaani Party” in Kannada and “Keshu” in Malayalam. Best child actor: Jeeva and Anba Karaus share the award. Dada Saheb Phalke Award, 2009 Telugu film actor-producer D. Ramanaidu has been selected for the prestigious Dada Saheb Phalke Award for 2009 for his outstanding contribution to Indian cinema. The award comprises of a Swarn Kamal, a cash prize of Rs one million and a shawl. The industry veteran, who entered the film world in 1963 with "Anuragam", is listed as the most prolific producer with 110 films by the Guinness Book of Records. He has the distinction of producing movies in Hindi, Bengali, Oriya, Assamese, Malayalam, Tamil, Kannada, Gujarati, Marathi and Bhojpuri. Some of his well-known films are “Premanagar”, “Dildar” and “Bandish” in Hindi, “Srikrishna Tulabharam”, “Preminchu” and “Ramudu Bheemudu” in Telugu and “Asukh” and “Sudhu Ekbar Bolo” in Bengali. DEFENCE GE Engines for Tejas GE Aviation of USA has bagged the contract for supplying engines for the Light Combat Aircraft MK-2 (LCA MK-2 or Tejas MK-2). The aircraft is being developed by the DRDO with the Hindustan Aeronautics Limited (HAL) being the implementing agency for the project. Installation of the new engine will pave the way for acquisition of the indigenous multi-role fighter jet by the IAF. The necessity for a new engine arose after the LCA’s present engine, also supplied by GE (GE F404 IN20), failed to meet the IAF requirements. Installation of the new engine will necessitate major modifications to the LCA,

especially the fuselage. The ADA expects the Tejas MK2 to fly in 2014. IAF launches AFNET for better communications The Indian Air Force, in a significant development, launched on September 14, 2010, its state-of-the-art digital information system that will provide real time data, voice and images to commanders on the ground, as well as to pilots in the air. It will connect all IAF’s, fighters, choppers, transport planes, satellites and UAV’s with ground and command stations which will in turn have the position of the ground-based air defence guns deployed at airbases. The new system will make the IAF network centric force. The Air Force Network (AFNET) has replaced the IAF’s old communication network set-up using the “tropo-scatter” technology that was first devised in the 1950s. DISCOVERY New series of horned dinosaurs found in Utah Fossil hunters have uncovered the remains of an ancient beast that can lay claim to the dubious title of the horniest animal ever to walk the Earth. The creature lived 76 million years ago in the warm, wet swamps of southern Utah and was remarkable in bearing 15 full-sized horns on its head. The animal, named Kosmoceratops, had one horn over its nose, one over each eye, one protruding from each cheek bone and a row of ten across the frill at the back of its head. As opposed to earlier belief, many palaeontologists now believe that dinosaurs’ horns were often more for sexual display. PLACES Tembhali This remote village in tribal-dominated Nandurbar district of Maharashtra is the first place in India whose residents have been issues the Unique Identification Number (UID) or Aadhaar. RESEARCH Scientists develop ‘e-skin’ Biotech wizards have engineered electronic skin that can sense touch, in a major step towards next-generation robotics and prosthetic limbs. The lab-tested material responds to almost the same pressures as human skin and with the same speed. Important hurdles remain but the exploit is an advance towards replacing today’s clumsy robots and artificial arms with smarter, touch-sensitive upgrades. The “e-skin” comprises a matrix of nano-wires made of germanium and silicon rolled onto a sticky polyimide film. The researchers then laid nano-scale transistors on top, followed by a flexible, pressure-sensitive rubber. The prototype, measuring 49 square centimetres, can detect pressure ranging from 0 to 15 kilopascals, comparable to the force used for such daily activities as typing on a keyboard or holding an object. The achievements are “important milestones” in artificial intelligence. In the search to substitute the human senses with electronics, good substitutes now exist for sight and sound, but lag for smell and taste. Touch, though, is widely acknowledged to be the biggest obstacle. Even routine daily actions, such as brushing one’s teeth, turning the pages of a newspaper or dressing a small child would easily defeat today’s robots.

An international team. led by Prof Bradley Greger of Utah University. cold. hello. South Asian University becomes operational With the visa issue concerning Pakistani students having been settled. the CBSE will introduce a psychological aptitude test for class X on the lines of similar exams held in other parts of the world. biologists and physicians led by Shuvo Roy at the University of California. offers a way to communicate for paralysed patients who cannot speak and could eventually lead to being able to read anyone thoughts. The team achieved the experimental breakthrough when it attached two button sized grids of 16 tiny electrodes to the speech centres of the brain of an epileptic patient who had part of his skull removed for another operation. MISCELLANEOUS CBSE to introduce aptitude test In order to assess the ability of students. thirsty. San Francisco. hot. The device comprises thousands of microscopic filters to remove toxins from the blood and a bio-reactor to mimic the metabolic and water-balancing roles of a real kidney. hungry. The treatment has already been proven to work for the sickest patients. using a room-sized external model. This exam is based on a scientific index. The first prototype of the device unveiled by the US researchers could do away with the need for dialysis or donor organs. their psychology and their skill levels. goodbye. no. which is up to 90 per cent accurate. The main aim of holding the exam is to know about the students' interest. a dream project of Prime Minister Manmohan Singh. has been able to translate. Then they got him to repeat the words to the computer and it was able to match the brain signals for each word 76 per cent to 90 per cent of the time. allowing the patient to live a more normal life. brain signals into speech using sensors attached to the brain. The test will be known as Students Global Aptitude Index (SGAI). Tissue engineering will be used to grow renal tubule cells to provide other biological functions of a healthy kidney. the scientists recorded brain signals as the patient repeatedly read each of 10 words that might be useful to a paralysed person: yes. The process relies on the body's blood pressure to perform filtration. has finally taken off. more and less. The experimental breakthrough. without needing pumps or an external electrical power supply. The university launched its first academic session on August 26. The implant is being developed jointly by engineers. the South Asian University (SAU). This would remove the need for immune suppressant medications after it was implanted.Artificial kidney to be a reality soon An artificial kidney implant that would work as well as a natural organ is in the offing. for the first time. Using the electrodes. . Mind reading machine on its way Scientists who claim to have discovered a way of translating people’s thoughts into words are soon coming out with a mind reading machine.

He was 86. He succeeds Wajahat Habibullah. classes for the first session are being held at the Jawaharlal Nehru University (JNU). The concept of a world-class university in South Asia was initiated by the Indian Prime Minister during the 13th SAARC Summit at Dhaka in 2005. while a formal agreement for establishing the institute was signed in April 2007 during the 14th Summit in New Delhi. ETC. Though the university. Head of Pakistan Atomic Energy Commission. Thomas: He has been appointed as the Central Vigilance Commissioner of India. DIED Arjun Sengupta: Eminent economist and Rajya Sabha MP. There are 25 students in each course. Nepal. the war-affected Afghanistan and the Maldives. 30—Allahabad High Court’s please-all verdict on Babri-Masjid-Ram Temple dispute in Ayodhya divides the disputed site among the three petitioners . Bangladesh. Ansar Parvez: He has been name head of IAEA. there is no student from the rest of the two SAARC nations. Homi N. starting two courses—MA in Development Economics and Masters of Computer Applications. The UIDAI scheme. Arjun Munda: He has been elected as the Chief Minister of Jharkhand. 9—The Union Cabinet gives its approval for a caste-based census. EVENTS SEPTEMBER 2—Palestinian and Israeli leaders meet after a 20-month hiatus under the US brokered peace talks. As of now. taking over from Malaysia. The faculty would be gradually increased when courses in other disciplines are launched from the next academic year beginning in July 2011.: SEPTEMBER 2010 APPOINTED. the UN nuclear watchdog. Sethna: Former Chairman of Atomic Energy Commission of India and the guiding force behind India’s first nuclear test. Of the total 50 students. will remain Chairman for the next 12 months. He leaves behind a policy footprint that changed the way poverty alleviation programmes are discussed in India.J. Bhutan and Sri Lanka.N. Ansar Parvez. A. ELECTED Etc. the first of its kind in the region.2010. P. APPOINTMENTS. will provide a unique identity to each Indian over the next five years. has been allotted land in the capital for its campus. DISTINGUISHED VISITORS Armando Guebuza: President of Mozambique Donald Tusk: Prime Minister of Poland. announced in 2009. 29—Prime Minister Manmohan Singh hands over the first set of Unique Identification Number (UID) cards in Tembhail village of Maharshtra. to be implemented through a separate house-to-house enumeration from June to September 2011. 36 were from India and 14 from five other SAARC countries—Pakistan. EVENTS. The present faculty includes Bangladeshi nationals as well as Australian nationals of Indian origin. Tiwari: He has been appointed as the Chief Information Commissioner of India.

This mother-of-two from Manipur remains the only boxer to have won a medal in each edition of the world championship. Divya: She is the first woman cadet in the history of the Officers Training Academy. HOCKEY Women’s World Cup Argentina defeated reigning World and Olympic champions Netherlands 3-1 to win their second field hockey world title. she has been appointed as the head of the UN’s little-known Office for the Outer Space Affairs (UUNOOSA). BOXING Mary Kom wins World Championship India’s woman boxer MC Mary Kom claimed a historic fifth successive world championship title on September 18. the ‘Sword of Honour’. Talukdar won bronze in the individual event defeating Athens Olympic champion Marco Galiazzo of Italy 7-3. The trio whipped Japan. one of India’s premier defence training institutes. 2010 IPL champions Chennai Super Kings.MILESTONES Mazlan Othman: Malaysian astrophysicist. 2010. GOLF DLF Masters Ashok Kumar won the DLF Masters. A. J. beating Steluta Duta of Romania 16-6. Atray Trophy ONGC posted a six-wicket victory over Air India to win the 17th J. Deepika Kumari lost the women’s recurve final. but the silver medal ensured Deepika her maiden place in the grand final in Edinburgh. She is officially the world’s first contact for any aliens that may come visiting. who had beaten the formidable Koreans in the semi-final. Sachin Tendulkar: Leading cricketer of India. to be decorated with its highest award. England-Pakistan One-Day series England defeated Pakistan by 121 runs in the fifth and final match to win the series32. Tarundeep Rai and Rahul Banerjee won gold in the fourth leg of the World Cup archery in Shanghai. Gaganjeet Bhullar won the second spot. defeated the Warriors of South Africa by eight wickets to win the Airtel Champions League.P. he has been given honorary rank of Group Captain by the Indian Air Force. led ably by Mahendra Singh Dhoni. played in South Africa. They had earlier won the title in 2002 in .P. Atray Memorial Cricket tournament. SPORTS NEWS IN BRIEF: SEPTEMBER 2010 ARCHERY India wins gold in fourth leg of World Cup The Indian men's recurve team of Jayanta Talukdar. CRICKET T20 Champions League.

CURRENT AFFAIRS: SEPTEMBER 2010 NATIONAL AFFAIRS RBI’s mid-term review The RBI. Turkey with a stunning score of 195 out of 200. Somdev Devvarman and Rohan Bopanna powered India to the elite Davis Cup World Group by scripting a sensational 3-2 win over Brazil.10 per cent for the week ending September 4.50 percentage points to 5 per cent and lending rate (repo) by 0.Australia. thus making it necessary to rein in liquidity. The championship was held at Rosario. The apex bank also signalled banks to raise fixed deposit rates and also noted that the government was on target to contain the fiscal deficit. . 2010 Rafael Nadal of Spain defeated Novak Djokovic (Serbia) to win the men’s singles title. the RBI said that inflation rates have reached a plateau. WRESTLING Sushil becomes first Indian to win World Championship gold Wrestler Sushil Kumar has become the first Indian to win a gold medal in the World Wrestling Championships. Argentina. in its first mid-quarter review of its monetary policy. increased repo and reverse repo rates leaving the cash reserve ratio (CRR) unchanged as it battles to contain inflation. SHOOTING Ronjon shoots gold at ISSF World Cup India’s Ronjon Sodhi clinched a gold at the double trap in the ISSF World Cup finals in Izmir. The women’s doubles title was won by Vania King (USA) and Yaroslava Shvedova (Kazakhistan) while the mixed doubles title was won by Liezel Huber (USA) and Bob Bryan (USA). TENNIS US Open. As a result. The central bank noted that food inflation has risen to 15. India enters Davis Cup World Group In a stunning turnaround. held in Moscow. RBI raised short-term borrowing rate (reverse repo) by 0. The increased rates aim to make financing costly thus curbing consumption. However. The win gave him his first US open title and was his ninth Grand Slam win. Kim Clijsters of Belgium defeated Vera Zvonareva (Russia) to take the women’s singles title. He defeated Alan Gogaev in the 66-kg freestyle category.25 percentage points to 6 per cent. The matches were played in Chennai. The men’s doubles title was won by Mike and Bob Bryan of USA who defeated IndoPak team of Rohan Bopanna and Aisam-ul-Haq. Unique Identification Authority of India The Union Cabinet has cleared a new law providing for strict penal action and hefty fines going up to Rs 1 crore to guard against misuse of data collected for allotment of a Unique Identity Card or a Aadhar number to Indian citizens.

with the healthcare sector creating 121. will have two deputies — Sudesh Mahato of the All Jharkhand Union and JMM patriarch Shibu Soren's son. The aim of NIC is to herald a mindset change and create a push at the grassroots level so that more and more people are involved in shaping a national-level innovation strategy.000 jobs were created between January and June. a body to promote new ideas for inclusive development. and education.000 crore fund to encourage innovation. Munda sworn in as Jharkhand Chief Minister On September 11. the survey revealed 418. also mooted the idea of starting a television reality show that would provide a platform for the young minds to showcase their innovative ideas for solving the problems of the economy. focusing on inclusive growth. It also expects growth in average salary by about four per cent.000 in the hospitality sector. as leader of a coalition with. BJP leader Arjun Munda became the eighth Chief Minister of the 10-yearold Jharkhand State. real estate and construction. improving governance and making development more inclusive.” the chairman of the council. titled the National Identification Authority of India Act. The estimated proportion of experienced workforce is the highest in the pharma sector. followed by pharma (3. 2010. hospitality. 2010.5 per cent) and healthcare (3. Hemant Soren. Healthcare is estimated to have the highest percentage of freshers. Munda. said. Real estate and construction leads with the highest growth in number of people employed. Sam Pitroda. among others. information technology and IT-enabled services. “A major portion of the fund will come from the private sector and not the government. the council is aimed at energising innovation initiatives so as to make them part of the national effort aimed at reducing poverty. and New Delhi the highest estimated percentage of freshers (35 per cent). there is optimism in the economic scenario across all sectors of India and most of the new jobs have been created are in services. Job scenario in India improves According to the Ma Foi Randstad Employment Trends Survey. 87 per cent. created as an attached office under the Planning Commission. several civil rights groups had also pointed out that actions of the UDAI could well be questioned in the absence of a legal framework. Fund to boost innovation The National Innovation Council (NIC). at 82 per cent. and another 63.The proposed legislation. Set up by Prime Minister Manmohan Singh. The decision to enact a legislation was taken after fears were expressed over the privacy and security of data collected by the UDAI. training and consulting. One of the council members and renowned film-maker. who is having a go at the top job for the third time. In addition. the Jharkhand Mukti 38 per cent. The council’s mandate also includes formulating a roadmap on innovation for the 2010 to 2020 period. Although the function at the Governor's house showed the deep rift in the BJP over the tie-up with the JMM—the BJP's partner last time in a government that lasted only for five months—Munda said he would focus on strengthening the party's grass-root level.000 jobs. This scheme of providing unique identity number to the citizens of the country took off on September 29 when Prime Minister Manmohan Singh presented the first such number at a function in the tribal district of Nandurbar in Maharashtra.4 per cent) during the third quarter. Conducted among 650 companies across 13 industry segments that included eight Indian cities. Visit of President of Mozambique . seeks to give statutory powers to the Unique Identification Authority of India (UDAI). Kolkata has the highest estimated percentage of experienced workforce. has announced the setting up of a Rs 1. Shekhar Kapur. The top five sectors leading the boom are healthcare.

experts have placed India-South Korea military relations at par with Indian relations with Russia and Israel. agriculture and energy. Both countries are neighbours of China and have a rather testy and tense relationship with it. especially vis-à-vis China. India and Mozambique inked three pacts and a credit line of $500 million was extended to that country for infrastructure projects. Crucial military pact with South Korea Signalling a dramatic change in its strategic positioning. It also has product-based cooperation for joint production of key military equipment with the French and Italians. Following the agreement. India will be able to use both routes. On the military front the importance of the agreement can be gauged from the fact that India has such agreements for co-developing and co-producing military equipment with its traditional “friend” Russia and other ally. Once ready. Bangladesh has finally agreed to start the construction of a highway that will not only provide transit facilities. The second axis will start from North Bengal and enter Bangladesh at Panchgarh and run southwards via Srirajganj to Dhaka and further southeast to Cox Bazar and Chittagong before entering into Myanmar. Tripura. India would also support establishment of training and planning institutions in Mozambique to support capacity building in the coal industry. but also drastically shorten the circuitous route—crucial from the military point of view—between north-eastern States and the port city of Kolkata. AK Antony and Kim Tae-young. with Dhaka stalling it for one reason or the other—primarily due to pressure from Pakistan and China. Israel. entered into a crucial joint research and manufacturing agreement with South Korea to co-develop and co-produce military equipment. deepening of economic cooperation. it can take up to five days for a truck from Kolkata to reach these areas. Memorandums of Understanding were signed following a 90-minute discussion between high-level delegations led by Defence Ministers. The first route will enter from Bengal into Bangladesh at the existing Benapole land port on the border and run across eastwards via Jessore and Dhaka. The highway project between India and Bangladesh had been hanging fire for more than five years. Mizoram and Manipur. Dhaka okays crucial highway link to Kolkata In major development. on September 3. This was the first-ever visit of an Indian Defence Minister to South Korea. besides supporting capacity building for the defence and police forces of that country. 2010. The two countries have also decided to create a partnership based on greater political engagement. India. Expressing concern over the safety and security of sea lanes in the Indian Ocean. Guebuza assured to provide all possible assistance to protect them.On September 30. the Prime Minister said. The change came after the Sheikh Hasina Government came to power and in July 2009 Indian negotiators managed to push Bangladesh to ink the inter-governmental agreement. 2010. At present. the highway will solve India’s major problem of moving goods into north-eastern States of Nagaland. Visit of Polish Prime Minister Polish Prime Minister Donald Tusk visited India on September 7. strengthening of defence and security cooperation. during a meeting between President of Mozambique Armando Guebuza and Prime Minister Manmohan Singh. 2010. located on the north-eastern edge of Bangladesh. ensuring easy movement of goods. besides the time delay. passing through Sylhet. adding up to the costs. specially to secure sea lanes against piracy. respectively. it will enter Assam/Meghalaya. The Indo-Polish defence cooperation figured prominently during talks between the visiting dignitary and Prime Minister . The project—to be primarily financed by India—is part of the larger Asian Highway network project connecting the Asian nations. and cooperation in capacity building and human resource development.

Manmohan Singh. namely Muslims. Sudhir Agarwal and Dharamveer Sharma separately delivered the historic verdict. However. Nirmohi Akhara and the party representing ‘Ram Lala Virajman’ (Ram deity). The inner courtyard has been given to both the communities “since it was being used by both since decades and centuries”. Both Justices Sudhir Aggarwal and SU Khan made it clear that the share of the Muslim parties shall not be less than one third of the total area of the premises. Muslims will get one. Highlights —2. Justices Khan and Agarwal decreed that the 2. BMP II infantry combat vehicles and a variety of air defence systems purchased from the former Soviet Union. noted Justice Aggarwal.V. The area under the erstwhile central dome where the idols are placed in the makeshift temple has been allotted to the Hindus. The outer courtyard is once again to be shared by the Nirmohi Akhara and the Muslim parties.7-acre land comprising the disputed site should be divided into three equal parts and be given to Sunni Waqf Board. Allahabad High Court Verdict on Babri Masjid-Ram Janambhoomi dispute On September 30. —Two portions to be handed over to Hindus. it is the prospect of a quantum jump in economic ties with Poland that excites New Delhi. A tank recovery vehicle is a type of armoured fighting vehicle used to repair battle or mine damaged as well as broken down vehicles during combat operations. or to tow them out of the danger zone for more extensive repairs. The proposal was made during Antony’s visit to Warsaw in April for a meeting of the joint working group (JWG) on defence cooperation between the two countries. Khan. The three-judge Bench of Justices S. the third judge Justice D. “. .U. Hindus and Nirmohi Akhara were joint titleholders of the property in dispute..” observed Justice Khan. In a 2-1 majority verdict. ‘Sita Rasoi’ and ‘Bhandar’ area in the outer courtyard will go to the Nirmohi Akhara.. Poland. the Bench held that all the three parties. Poland has shown interest in providing to New Delhi its sophisticated military hardware up-gradation and maintenance technology. Sharma ruled that that the disputed site is the birth place of Lord Ram and that the disputed building constructed by Mughal emperor Babur was built against the tenets of Islam and did not have the character of the mosque.If while allotting exact portions some minor adjustment in the share is to be made then the same will be made and the adversely affected party may be compensated by allotting some portion of the adjoining land. The Bench directed maintenance of status quo at the site for three months and invited suggestions from all the parties for demarcation of the land. Apart from making these vehicles available to India. which was a key ally of former USSR. Poland. The judges also dismissed the claims of the Sunni Central Waqf Board over the Babri Mosque due to limitation or becoming time barred as well as the claim of the Nirmohi Akhara. the much-awaited judgement of the Lucknow Bench of the Allahabad High Court unanimously ruled that the idols of ‘Ram Lalla’ in the makeshift temple at the disputed site in Ayodhya cannot be removed. Poland is keen to sell tank recovery vehicles to India. is considered by India as a gateway to Europe and Central Asia. Since most of the Indian military hardware was acquired in the 1970s from the then Soviet Union. Poland can also help India upgrade Indian T-72 tanks. a key member of the European Union (EU). has the spares and the technology for upgrading the equipment with the Indian forces. The ‘Ram Chabootra’. 2010. But more than defence ties. With a 2-1 majority. It is also interested in joint ventures with Indian companies.7 acre disputed site to be divided in three equal parts.

to elect a new Prime Minister. Chambier. 2010. belongs to Hindus. 1886. Nirmohi Akhara and the parties representing ‘Ram Lalla Virajman’—declared joint title-holders. Political crisis in Nepal continues On September 26.E. with the opposition Coalition of Liberal party leader Tony Abbott having 74 seats. —All three parties may utilise the area to which they are entitled to by having separate entry for egress and ingress of the people without disturbing each other’s rights. —The portion below the central dome. dismissed the appeal on March 17. It was submitted by Mahant Raghubirdas in the court of Faizabad sub-judge. In his February 24. smaller parties & others: 56. seeking permission for “puja” (worship) rights over a “chabootra” (platform) in front of the mosque which he claimed was Ram’s birthplace. ending weeks of political uncertainty. Young.A. during the past four months. Young observed: “This spot is situated within the precincts of the grounds surrounding a mosque erected some 350 years ago. who also declined his plea in his judgment of November 1. but as the event occurred 356 years ago. UML: 108.” INTERNATIONAL AFFAIRS Gillard manages to retain power in Australia elections On September 7. The deadlock continues. Maoists emerged as the largest single party but fell short of a majority. Nepali Congress: 114. Labour now controls 76 seats in Parliament’s 150-member House of Representatives. 1885. In such a case as the present one any innovation could cause more harm and derangement of order than benefit. .9 billion on development projects as part of the deal with the rural independents. as the site of his mosque. Raghubirdas then filed an appeal before the Oudh Judicial Commissioner. 1885. four Madhes based parties: 82. it is too late now to remedy the grievance. because it continues to put its faith in one-party rule and continues to threaten it would resume armed struggle. In the 601-member House. Nepal's Constituent Assembly failed for the eighth time. 1886. Historical Background The ‘first title suit’ was filed on January 19. largest party. order. on the same grounds. All that can be done is to maintain the status quo. who. two seats are vacant and if the Speaker and the Deputy Speaker are excluded. 2010. Colonel J. the judge said: “It (chabootra) was so close to the existing masjid that it would be contrary to public policy to grant a decree authorising plaintiff to build a temple as desired by him. it has an effective strength of 597 members. She added that her government will spend $9. Gillard said her minority government would be held to higher standards of accountability as a result of the deal struck with the independents. where the idol of Lord Rama is presently kept in makeshift temple. owing to the bigotry and tyranny of the emperor who purposely chose this holy spot.” Sub-Judge Hari Kishan said: “It is most unfortunate that a masjid should have been built on land specially held sacred by the Hindus. The break-up is as follows : Unified CPN (Maoists): 237. giving it a wafer-thin one-seat majority in the first hung Parliament in nearly 70 years.” Then Raghubirdas moved to the Faizabad district judge. Unified Communist Party of Nepal (Maoist). The 239 year old monarchy was cast aside in 2006 and people voted for a Constituent Assembly and an interim government in 2008. The parties may approach Centre which shall act in accordance with the directions and also as contained in the SC verdict. according to Hindu legend.—All three parties—Muslims (Sunni Waqf Board). W. after a spot inspection. partly because other mainstream parties do not trust the single. Australia’s first woman Prime Minister Julia Gillard staked claim to form a new government after two king-maker independent MPs extended support to her Labour party. The last 20 years have seen Nepal move from a Hindu kingdom to a democratic and secular republic.

Prachanda resigned as Prime Minoster and Maoists pulled out of the government in 2009. The Assembly extended its own life by one year to complete the task. Amir Khan’s “Peepli Live”. It had also insisted that international humanitarian laws should be taken into account while finalising the text of the convention. The Constituent Assembly has failed to finalise the Constitution as mandated. UN convention on terrorism moves a step forward Rocked by a wave of audacious terrorist attacks in the last two years. The train is designed to run at a speed of 350 km per hour. The train hit a maximum of 416. It had argued that selfdetermination should be outside the purview of the convention. there is a caretaker government with few powers. had led the campaign against the proposed convention on various grounds. The situation has considerably changed with just a handful of countries still not convinced why they should back it. and promised tough counter-measures after a Japanese court extended the detention of a Chinese captain whose trawler collided with two Japanese coastguard ships. The spat between Asia’s two largest economies has flared since Japan arrested the captain. Both these objections were seen as aimed at embarrassing India on Jammu and Kashmir since Islamabad has been demanding the right to self-determination for Kashmiris and seeking international intervention on the issue. believes in oneparty rule and insists on absorbing its underground militia into the Nepalese Army. The opposition to the convention had also come from the US and Israel with the latter insisting that acting against terrorists indulging in killing innocent people be brought under its purview. The Union Cabinet has approved the National Identification Authority of India Bill. accusing him of deliberately striking a patrol ship and obstructing public officers near uninhabited islets in the East China Sea. The global treaty seeks to criminalise all forms of international terrorism and deny terrorists. a satire on media’s trivialisation of farmers’ suicide. In the absence of a consensus between parties. their financers and supporters access of funds. along with some other Organisation of the Islamic Conference (OIC) countries.6 km per hour on its journey between Shanghai and Hangzhou. 2010. then they forced the next government headed by Madhav Kumar Nepal of UML to also quit. “Most countries are now in favour of the early adoption of the convention but there is a small number of holdouts. Other parties are not sure it would change its spots. has been selected as India’s official entry at the 2011 Oscars.Unified CPN (Maoist) continues to say it has no faith in parliamentary democracy. Pakistan has finally realised the futility of opposing the proposed Comprehensive Convention on International Terrorism (CCIT) just because India was in the forefront of initiating it at the United Nations in 1996. China-Japan spat China suspended high-level exchanges with Japan on September 19. Having failed to sack the then Army Chief over the integration of the armed Maoist guerrillas. Beijing viewed the detention as illegal and invalid. DO YOU KNOW A high-speed train in China has set a new world speed record during a trial run. which envisages making UIDAI a statutory body. But differences persist. Pakistan. arms and safe havens. 2010. in the Best Film category. It also tried to take arbitrary decisions and sought the removal of the President and the Army Chief. . may be 10 to 15…efforts are on to convince them also to support it so that a strong message goes out to all terrorist organisations that the international community is united and determined to jointly fight the menace of terrorism.

and Massachusetts Institute of Technology. has been selected for the Heritage “Award of Merit” by the UNESCO. USA. As per the Quacquarelli Symonds (QS) World University rankings. Global FDI flows are expected to jump from $1. marble. UK. The scheme seeks to provide pension scheme to the unorganised sector. crude petroleum. Reliance Industries has been ranked second in the list of world’s 10 biggest ‘sustainable value creators’—companies that have been successful in creating the most shareholder value over the last decade—prepared by Boston Consulting Group.2 trillion in 2010 to $1. Rajkot People’s Cooperative Bank does not offer any job to people who smoke cigarette or eat gutkha. Indian Institute of Foreign Trade in New Delhi. followed by Harvard University. Brazil-based mining and materials giant Vale has been ranked the top value creator. Navodaya Vidyalayas celebrated 25 years of existence in 2010.5 trillion in 2011 and $1. the National Agri Food Biotechnology Institute (NABI) is being set up in Mohali. scooter and motorcycle tyre. 2001. The series will have 2004-05 as the base year. Yale University. University College London (UCL). The World Tiger Summit was held in September 2010 in St. near Chandigarh. Chowmhalla Palace in Hyderabad. UK. for cultural heritage conservation for 2010.5 percent. He advocated pragmatism and Western nations have always pursued pragmatic . Bengal. The Employee Provident Fund trustees have decided to raise the interest for 2010-11 to 9. the Central government will contribute Rs 1. is the top university of the world. The Business Standard Best Business Schools Survey 2010 shows that India’s top business schools are: Indian Institutes of Management in Ahmedabad and Kolkata. was held in September 2010 at UN Headquarters in New York. Under the scheme. National Institute of Industrial Engineering in Mumbai and XLRI Jamshedpur.000 per year to each National Pension Scheme (NPS) account opened in year 2010-11 and for the next three years. silver and gold. The Bali. South China and Sumatran. Some important items included in the new series basket are: flowers. spectacular 18th century monument. The World Tourism Day is observed on September 27. or MDGs.6-2. Petersburg. is remembered as a shrewd foreign policy maker. according to a survey conducted by UNCTAD. India has replaced the US as the second most important Foreign Direct Investment (FDI) destination for trans-national corporations. US. the Navodayas have shown in last 25 years how gifted children with humble means can rise to life. Management Development Institute at Gurgaon. The six living species of Tigers are: Amur. polymers. Malayan. Indochinese. Cambridge University.0 trillion in 2012. Russia. till 2013-14. Institute of Management Technology at Ghaziabad. as against 1993-94 in the previous model. USA. Even the customers with the habits have to pay higher interest on loans. Foreign Minister of Napoleon and the Bourbons. A new wholesale price index series with an updated product portfolio was launched on September 14. A befitting match to costly private schools. USA. The UN Summit on the Millennium Development Goals. Caspian and Javan tigers have become extinct. India’s first agri-biotechnology institute. 2010. in that order.Finance Minister Pranab Mukherjee launched the Swavalamban Scheme of Life Insurance Corporation (LIC) on September 25. lemon. INDIA’S FOREIGN POLICY: ITS TWISTS AND TURNS Talleyrand.

He also advised eschewing excessive fervour while pronouncing foreign policy. however. said Harold Nicholson. our Foreign Policy under Dr Manmohan Singh’s rule is more pragmatic and in tune with the times and practices of the so-called international community. or do you want to give it away?” Sardar Patel is known to have asked Nehru. it also became a next-door neighbour to India. According to observers. the China Sea and North-east Asia. Uncle Sam no longer attaches very great importance to its client States. France. has suffered much from the fascination which it exercises on the amateur”. India has yet to master the art of diplomatic negotiations and striking accurate equation with important world powers. Jawaharlal. This observation aptly applies to India’s diplomacy post-independence in 1947. and his diplomatic “bus to Lahore got hijacked to Kargil”. such as Japan and Australia. but in its antagonists. a man of sterling qualities yet imitated Nehru. Patel warned him in 1949 that the Chinese Communists would annex Tibet. Since then it has fully participated in international politics. But happily.” Foreign Policy demands astute sense of timing and shrewdly worked out strategies. UK. Currently. Nehru. have been extravagantly demonstrative. the Afghan-Pak area. even permanent. befittingly fluttered his wings over it ineffectually. On the other hand. including India. South-East Asia. High-sounding principles of Panchsheel led to a shocking betrayal by China from which India has yet to recover. China and Russia. USA emerged as the sole. do you want Kashmir. unrivalled super-power with global reach. and perhaps compulsively. conventions and protocols. died of the Chinese treachery. alliances with more and hitherto adversarial countries. when popular and maximum leaders like Jawaharlal Nehru and Indira Gandhi were the Prime Ministers. the Indian Ocean. “Foreign and defence policy essentially has to be about the obtaining and management of influence. Nehru’s “Hindi-Chini Bhai Bhai” turned out to be a bitter shibboleth and Kashmir became the source and fount of terrorism and remains an unhealed. like an angel. persistently delusive and high sounding while pronouncing their foreign policy. Its interests and stakes in Asia are extensive and appear to be long-term. India had to bear dire consequences for some of their foreign policy errors of judgement. Morality is certainly not a weakness of the major world powers. By force of its military presence in Central Asia. in 1972. Earlier. It. Those times also saw the end of colonialism and dawn of freedom for India. India emerged as the largest democracy in the world. while the Victors of World War Two—USA. Atal Behari Vajpayee. In 1947. however. The US security interests and concerns fall together with India’s security arc at this time. . though a better strategist and negotiator “Indira Gandhi slipped up at Simla by trusting Zulfikar Bhutto’s word on Kashmir”. somehow. “Jawaharlal. the historical buffer between India and China. at times poorly. India is militarily and economically a stronger country. International diplomacy and relations have always been and remain amoral. It has obviously become an “Asian power”. and if need be. cajoled China and went to the UN on Kashmir against Patel’s wish. The disintegration of the Warsaw Pact or Soviet Union in 1990 is regarded as the verge of a new era in international polity. But costs were heavy for the nation. national interest and cool calculation determine relations among nations. It gave a larger than life world stage to a Universalist Nehru who illumined it with the light of idealism and. though it has weaker and minimum leaders. The cold war era provided a near-perfect setting for spewing idealism at an ideologically divided world that was gracelessly recovering from the holocaust of a catastrophic world war.foreign policies. as that of water colours. adhering to the letter and spirit of international treaties. lacked the matching military and economic power. India’s foreign policy was more for internal consumption than for impacting on the international order. The tactic worked. India substituted word power for effective power to vie with the world powers. Indians. because they placed trust not in India’s friends. bargaining. selfinflicted wound. The Yankee stranglehold can be felt from Egypt to Pakistan in West Asia and from Philippines to Thailand in East Asia. “The art of diplomacy. Under their rule. the Gulf region. it is seriously engaged in developing new political equations. the architect of India’s Non-alignment Policy. In the prevailing international dispensation. They could afford to make errors and yet have their way. Russia and China—grabbed the world stage as leaders of peace! According to Lord Carrington.

feel compelled to work out new equations among themselves. too.China’s rise as the Super-Asian military and economic power and India’s own increasing military and economic power are equally important developments of recent years. The world has radically changed. because national interest alone is the all-encompassing coordinate that accurately structures a country’s foreign policy. India has to remember that even the so-called international assistance from the Soviet or Western bloc in the cold war days had price tags. It is going through a period of political transition and is occupied with the challenges of its political unification and economic integration. it is a pain in the US neck. It is no use saying that India abhors being a US-client State like Japan. and on what terms. has become a world economic. Australia or Pakistan. Ideological forces have disappeared from the international scene. If it chooses to abjure the present opportunity. It has itself to decide how far. Evading the foreign policy challenge will mean evading the future itself. “The US. For example. the five World Powers and other nation-States are recasting their foreign policies to encounter new developments. India. it has not yielded to pressures and warnings from USA. and consequently a world military power. India today is well placed to seek diplomatic accords and agreements for mutual benefits. China. Assistance and cooperation were not free then and they will certainly not be free now. all of them are acknowledged nuclear weapon powers. No country is self-sufficient in all respects. is called upon to break out of its musty mould and redesign it’s foreign. It is in USA’s long-term interests to see India as a strong and stabilizing power in its region. economic and security policies. with the American support. China. China and India. only three decades ago. Can or should India shun Washington’s overtures? During the last half-a-century of diplomatic experience. The world’s peace and security now onwards depend on what kind of conditions will prevail in Asia. Interdependence and exchange of goods and services form the basis of abiding relationship among nation-States. it must calculate coolly what it has to part with as a price. Therefore. China. to meet the challenge of emerging Asian realities. it has shifted to Asia and promises to stay there in the foreseeable future. Pragmatism is in the ascendant. India needs enormous measure of nuclear energy and state of the art technologies for its industry and agriculture. India has no alternative but to find friends and partners from amongst other nations to provide the necessary resources. as it was in the twentieth century. it wishes to develop its relations with USA and other countries. Can a vast underdeveloped democracy find or raise internal resources to satisfy these needs? If the answer is “No”. then. At the very onset of the twenty-first century. It has to. India must know and practice the maxim that there are no “permanent friends or foes” for reshaping its foreign policy competently. India must recognize and evaluate its national needs and interests. is a client State of USA. Yet. Contrarily. On the currency issue and revaluation of Yuan. it feels persuaded to assist India in enlarging its global role. too. but now it is USA’s most dynamic trade partner. Europe is comparatively free of conflict and threat to its peace. by no means. an infrastructure conforming to international standards and to modernize its military. fast or slow. Europe is no longer the focus of international power politics. India. India today has sufficient bargaining power and should go into the international “diplomatic market” as a confident diplomatic . Reciprocity has to be on a “give-and-take” basis. India is expected to have gained enough diplomatic maturity to understand that there are no “free lunches” in international relations. International exigency is compelling India to decide its course of action and pay the price for the choice or choices it makes. It is a response to and recognition of the reality of a changed world. India’s changed stature does not permit it to blame others for its own diplomatic errors or justify them on moral grounds. The shift in Washington’s India policy is a part of this ongoing international process. is free and independent and big enough to look after itself. India also needs speedier expansion of trade and investments. safeguard its interests internationally. was a sworn enemy of USA. At the same time. It has to assess its needs and the extent to which foreign resources are required to satisfy them. along with Japan and Russia. The World and Asian powers. In fact. Of necessity. at this juncture. The USA has recognized India as a responsible nuclear weapon power. in fact. like other big countries and nations. constitute the pentagonal power complex of the 21st century. its inaction could prove too costly.

too. romantic attachment to the Non-alignment will only blur our foreign policy focus. Yet. Indonesia. immediate region. Sentimentality. it was backed by an articulated and coherent sense of India’s foreign policy priorities. Uncle Sam’s overseeing these countries is a minor relief to India. Our opposition to Iran’s nuclear stand is dictated by our own national interest. It has been trying to revive the movement with a new agenda of economic and development cooperation. India's voting for the IAEA resolution. India has objected to American double standards in upbraiding Iran.Q. of course. anti-apartheid campaign and nuclear disarmament. Yugoslavia has disintegrated and disappeared. These countries are infested with Osama or Maoist (link between the two is more than suspected) elements and bases. If this is their idea of India’s standing. The major SAARC countries are culturally so close but politically so averse to neighbourly feelings with India. The entire western world is in a state of scare of the terrorist threat. . Has Iran done any extraordinary favour to India? Do other NAM countries consult India while exercising their international options? Should we consult Cuba or Venezuela before voting at the international forums? Do our actions at international meets need certification from any quarters to prove that our voting is or is not pro-American? A section of the media and the Left political parties appear to believe so. India’s greatest foreign policy frustration has been its unwholesome relations with its immediate neighbours. India cannot be expected to fight for other countries’ interests at the cost of its own interests. critical of Iran. then they have only a squinted view of India’s heightening status in world politics. a large number of other countries and the UN. Israel’s nuclear capabilities have been gained with West’s connivance. NAM is now a relic and NAM-like neutrality or non-alignment a passé. Pakistan’s nuclear scientists have smuggled sensitive data from western countries. India’s leadership at the WTO has been strident as it successfully launched the G-22. irrespective the hue and cry by the Left parties. role and place in global politics. They put Indian interests first. after 9/11 Terrorist Attack on USA have become alive to the terrorist threat emanating from these countries. cannot escape the charge of proliferation. India’s proclivities are independent of both US and Iran. but indulging Pakistan whose nuclear advisor A. India is the only country among its founding members to have gained in stature. ad hoc reflex—rather. China has been extending nuclear know-how to North Korea and Pakistan. Non-Alignment Movement got launched in mid-twentieth century when most of the Afro-Asian countries were gaining their Independence and cold war was furiously raging. with the State connivance and even State backing. it is absolutely in our national interest to oppose nuclear proliferation. placed the poor and week nations in positions of advantage. It is not surrender to USA. as it affects our security. A ramification of the US presence in Afghanistan and Iraq is its closer watch on Bangladesh. But former foreign secretary Shyam Saran’s forthright arguments favouring a new global non-proliferation order show that the vote wasn’t a one-off. with help of USA. They corrupted their leaders and weakened these Afro-Asian countries. As a reciprocal gesture. NAM can adopt the G-22 agenda if it wishes to resurrect itself. India has not abandoned NAM. The two blocs vied with each other to enlist their support and offered inducements for it. possession of nuclear weapons of mass destruction by them poses danger to us. The buoyant movement of the cold war times is now a conglomeration of diverse and in-cohesive nations with conflicting political and economic interests. Whether it is Pakistan or Iran. Therefore.bargainer. Nepal and Pakistan. All these countries have terrorists of various hues operating against India. India’s immediate goal in international power politics was to become an equal member of the nuclear suppliers group. India has to continue to oppose Iran in IAEA voting. It must be noted here that western countries and major world powers. Major western powers that were callously indifferent. as it is no longer alone while countering the nefarious terrorist designs. They also know that Pakistan and Bangladesh are harbouring dangerous terrorists. That has now been achieved with the Nuclear Suppliers Group (NSG) accepting India as a responsible nuclear power. The foregoing observations on Indian Foreign Policy provide a perspective for understating India’s relations with major world powers. has been interpreted in some quarters as kowtowing to USA. NAM’s assumed plank of neutrality between the Soviet and Capitalist blocs in the context of decolonization. especially within and near our regional boundaries. Ghana and Egypt have declined. Khan set up a nuclear Wal-Mart. Moreover. especially the Islamic terrorism.

Russia remains India’s biggest supplier of defence equipment and has given assurance on the supply of spares and made new offers on equipment. Lots of factors can prevent you from getting a job. Ditto your other achievements and their record. information and communication technology. health. ideologies are being jettisoned to survive.India has been tolerant and accommodative toward its immediate neighbours. “I left no stone unturned. By controlling those you can and thinking reasonably about those you can’t. You start cursing your “luck” or you may. why this interview? You may ask. pharmaceuticals and people to people contacts. your opportunity for success in the next interview is that much greater. It is simple. your chances of taking a healthy perspective toward this whole job-research issue are better.” Lord Palmerston’s this 19th century wish is today the 21st century India’s fear! CAREER PLANNING . too. the press and think tanks. while others you don’t. Progress. science and technology. Relations with ASEAN and Singapore are the cornerstones of our “Look East” policy. the outcome was disappointing. objective. in a fit of bad temper. This is innocence (read ignorance)! Those facing you at the interview have already formed a fair idea of your academic status and calibre. Lastly.” Yet. Only the fittest will act internationally and manage change”. it means that they have a full picture of what you have achieved in the academic and theoretical sphere of your study. This usually means misdirection or lopsided emphasis on nonessentials. look for soft spots and convert them into plus points. we must remember that “in the world beyond parliaments. It is better to be rational. you think. plunge into the re-digging of the academic subjects they had studied in college or university. too. You are likely to say it to yourself and others. Will India change and choose a foreign policy befitting the challenge of times? Nation States are interdependent and foreign policy is now a central part of a nation’s political programme. and Shared Prosperity” lays out a short to medium term road map of India-ASEAN cooperation in various sectors. “May the pens of the diplomats not ruin again what the people have attained with such exertions. They have the degree certificates. This will eventually further damage your future prospects. War and Terrorism are everybody’s nightmare. They want to “see” the “man” behind the academic facade! I illustrate this point from the life of a great literary figure—Dr Samuel Johnson. Many of them you have control over. But anybody who “met” him and had a few minutes of conversation with him found that he was the most brilliant. It was said of him that he made a “sad spectacle” in society. India-ASEAN Free Trade Agreements are a continuing process. prepared very well for the crucial interview. “India-ASEAN Partnership for Peace. however. They have the record sheets with them. wittiest conversationalist of his time. such as economic. Those who came to scoff remained to listen to . for example. You begin to nurse a grudge. Rejection is part of the process. Then. They have probably conducted their own entrance. Why do you (applicant) get only a stony silence from prospective employers after your interview? Lack of proper preparation. too. All in all. by keeping your self-esteem and not rejecting yourself. is supporting Russia in its accession to the WTO and its being treated as a market economy in anti-dumping investigations. The reference was to his ugly physical appearance. That’s the only way from rejection to selection. debunk those who decided against your selection. keeping them in productive engagement. Many aspirants. India.WHAT AFTER REJECTION YOU had. agriculture.

unpolished. New India Assurance and National Insurance. the rest are exclusive to the insurance sector. namely to protect the ‘insured’ against certain risks. etc. Tata AIG etc. tell yourself that there are reasons for it. software programming. And this comes out in interview. Her approach was raw. It was all on the surface. ICICI Lombard. Be sure you are communicating your positive. banking and mutual funds. Birla Sun Life. Groom yourself well. We all have marketable characteristics or experiences. the more unkempt your personality. Thus. She flustered and fired offensive replies thinking that it was a hit at her academic status. While some of these. A girl candidate who had a string of degrees was asked the meaning of the phrase “literary coxcomb”. are common to other industries. A person with the minimum qualification . if you have been rejected. They wrongly think that the more learned you are. actuaries. distribution. underwriters. financial experts specialising in investment.him. There is always another chance— somewhere. CAREER IN INSURANCE Insurance is a financial agreement between two people or parties—the ‘insurer’ and the ‘insured’. This is negative attribute and no amount of “scholarly sophistication” can compensate for it. accountancy. like programming. It also revealed that the candidate was highly conceited and the poise and confidence she exuded was shallow. Thirdly. It was a question rather aimed at her area of interest and she could have cashed in on the opportunity. life and general insurance were the exclusive domain of Life Insurance Corporation (LIC) and General Insurance Company (GIC) with it subsidiaries called Oriental Insurance. Insurance Agents sell insurance policies for insurance companies. The conclusion drawn was that the thick layer of academic had not permitted refinement of culture to seep into her mind. concealing their real personality. He looks upon his future employee in long-range as he is going to work with him for years. risk managers and surveyors to name a few. It naturally gets on to your skin or garment. trained and skilled professionals in the insurance industry. has led to an ever increasing demand for well-qualified. So. He is somewhat of a perfectionist with exacting standards. United India Insurance. Take stock of yourself. such as marketing. HR. marketable points to him or her through the interview. Max New York. The opening up of the insurance sector and the entry of private companies like Bajaj Allianz. Nothing of the sort. and before the interview ends the interviewer should hear about them. technical and medical experts. Insurance Agent: Insurance is never bought. Many aspirants “show” scholarly pose. career options were limited to these organisations only. The industry requires professionals in diverse disciplines. it is always sold. Because a girl who has several degrees in her bag is supposed to have rubbed into her personality some of what she has studied. operations. It is like perfume. she unwittingly revealed that a little knowledge is a dangerous thing. emanating mostly from your own self. Before the onset of liberalisation in 1990s. Such is the magic and power of personality. The candidate should bear in mind that the prospective employer is a professional who neither gives nor takes concessions. Prudential ICICI. marketing. The chance will be lost again if the candidate fumbles and fails on some vital points. agents.

was responsible for restricting the number of qualified Actuaries in the country to a mere handful. provided he/she clears the prerecruitment test conducted by the Insurance Institute of India.C) or equivalent with at least 85% in Mathe-matics/Statistics (with recommendations from two Fellow members of the Society) and the medium of instruction is English in +2 or equivalent level. to become an actuary you need to become a Fellow member of Actuarial Society of India. While the Insurance Institute of India has been recognised by the IRDA as the only institute to conduct the exam. especially if the life insurance runs into five figures. economics. Actuary There are certain specialised functions in the insurance industry. the private insurance players are looking beyond.A.g. business or finance is a good starting point for a career in actuarial science. The Fellow membership is achieved by passing examinations at various stages and fulfilling other conditions as required from time-to-time. others are companies (e. Though the regulator has provided a minimal qualification that stops at high school and secondary school level. a number of institutes have start offering training for this course. Econometrics. However. Sky is the limit to the earnings of an agent since he/she works on commission. in actuarial science or a postgraduate certificate/diploma in insurance. Statistics. A graduation in science or commerce with a good command over the language and a well-knit social circuit will help one get recruited as trainee insurance agent by a private company. They advise the insurance companies regarding their risk portfolio and match their financial assets and liabilities.of 12th standard pass (in urban areas) or class 10th pass (in rural areas) and 18 years of age can become an insurance agent. Graduate or Post Graduate with subjects like Mathematics. The person may need to clear a pre-training interview/test before being considered for the training programme. MBA (Finance) and alike besides Actuarial Science would be eligible provided: .S. HDFC). An agent in LIC is required to insure at least 12 lives per year. While some of these are exclusively for training would-be agents. Passed 10+2 (H. IRDA’s new regulation stipulating that all insurance companies (Life as well as Non-life) must have an Appointed Actuary has fuelled the demand for these specialists in the country. Actuaries are specialists in the mathematics of insurance and investment finance. And. A person is eligible to be considered for admission as student member if he/she satisfies one of the following four conditions: 1. Computer Science. However. which is an organisation that is something like the Institute of Chartered Accountants. what with each individual allowed representing one life and one non-life insurance company the opportunities are immense. The agent gets to earn substantial amounts on these too. Thereafter his/her earnings depend upon the types of plans he/she sells and the number of policies. 2. You could even do your B. The long and exacting study and the paucity of a real market for these skills. How do you become one? A degree in mathematics. at graduates and post-graduates too. those want to provide in-house training on company specific products. till recently. Engineering. statistics.

Society of Actuaries. While Actuarial Science can be pursued at various universities. 9.400 001. 3.i) The total marks secured in the subjects coming under the classification of Mathematical Sciences taken together in all the years of the degree course are not less than 55%. While considering the application. UK. Fully qualified members of Professional bodies such as the Institute of Chartered Accountants of India. ii) The content of Mathematical sciences subjects’ content in all the years of the course taken together is not less than 50% of the total content. 278. Courtesy the winds of reform sweeping across the Indian insurance scene. other insurance companies or field representatives. one of the aspects to look for is the extent and level of mathematical/statistical knowledge acquired by the applicant. The underwriter explains policies and quotes rates to medical personnel. One must also take up the fellowship offered by the Insurance Institute of India or the courses offered by Institute of Risk Management. fire.actuariesindia. The institute runs courses and conducts examinations in insurance theory and practice and in related subjects for awarding certificates. M. Fort. theft. . an underwriter is expected to filter the “bad or substandard lives”. Sir P. Road. Jeevan Udyog. whereas he takes care of risk management in the general insurance segment. An underwriter reviews insurance applications and decides whether they should be accepted or rejected. website: www. All continuing students of Institute or Faculty of Actuaries. Mumbai. diploma and degree in insurance. associateship and fellowship in both general and life insurance sectors. People with medical or life science background are preferred. 3rd Floor. the Insurance Institute of India (III) is in talks with international insurance institutes and management schools to help build definite “specialised insurance” courses in India. Fort. who assess the risk in the business. D. as also other qualified persons like MBAs. Address: Insurance Institutes of India. Address: The Actuarial Society of India. the ASI alone confers the Fellowship. His or her judgement is based on the degree of risks that would be involved in insuring people or objects of concern. 4. Mumbai . Insurance Surveyors assess the losses and claims when a client claims compensation for loss of property etc. USA. In the life insurance business. arson. Universal Insurance Bldg. III conducts qualifying exams at three basic levels—licentiate.400001. damage.. Road. due to accident. Casualty Actuarial Society. Insurance Surveyors Insurance surveyors are qualified ‘investigators’ deputed for the assessment of Underwriters Both life and non-life segments require professional underwriters. 6th Floor. iii) The medium of instruction at the Graduate/Post Graduate level has been English. etc. the Institute of Cost and Works Accountants of India and Certified Institute of Financial Analysts of India. USA. N. according to their qualification and experience. are considered on a case-to-case basis. and Institute of Actuaries of Australia are admitted on application.

through a highly competitive all-India examination. M Block. Administrative Officer (AO)/Class I Officer in LIC/GIC deals with the registry of claims within certain permissible financial limits. Masters in Insurance Management (2-yr FT). meeting prospective clients. Road. insurance and banking operations. The eligibility criterion for recruitment into both the LIC and GIC is the same. Graduates in the age group of 21 years-26 years are eligible. Bhubaneshwar . Conducted in collaboration with LIC. Ganeshkhind. M. Tiruchirapalli . conducted by LIC. He also deals with policy making.A licensed surveyor needs to have a Fellowship/ Associateship of the Institute of Insurance Surveyors and Adjusters (IISA). Delhi . Manipur University.400 001 or a degree/diploma in architecture or a Fellowship/Associateship of the Institute of Chartered Accountants or Cost and Works Accountants or a degree/diploma in engineering.G. T. Kurukshetra . which employs over 100. the first of its kind in the country. Triplicane PO. He recruits and train insurance agents. this course. a graduate could clear the exams conducted by the IISA and become a surveyor. Canchipur. Science. PG Diploma in Actuarial Science: Bharathidasan University. checking of various clauses and details. Chennai . Mumbai .400003. Mumbai .110007. promoting the policies and getting contracted.403203. Alternatively. It is mainly a field job.110017. University of Mumbai. Palkalaiperur. Utkal University. Sub PO Goa University. University of Delhi.620024. Fort.741235. Tiruchirapalli . Centenary Buildings Chepauk. The Development AAO (Class II Officer) in LIC deals with marketing and procurement of business. Pune . PG Diploma in Insurance & Financial Service: University of Pune.N. involving written test and personality assessment through an interview.600005.N. Taleigao Plateau.620017. Haryana.. Eligibility: Graduation with maths as one of the subjects.136119. BSc in Actuarial Science: Goa University. N. Bishop Heber College (affiliated to Bharathidasan University).000 people. University and other Institutes offering courses in insurance BA in Actuarial Science/Insurance: Kurukshetra University. Nadia (WB). Road. Delhi .751004. You can join LIC (Life Insurance Corporation) as Assistant Administrative Officers (class 1). An engineer or a diploma holder can straight-away apply to the Insurance Regulatory and Development Authority (IRDA) for a licence. PG Diploma in Insurance Management(1-yr FT/2-yr PT) Certificate in Life & Non-Life Insurance Management (for agents interme-diaries): Amity School of Insurance and Actuarial. Assistant Administrative Officer (AAO) The big brother of the Insurance industry in India is LIC (Life Insurance Corporation). Goa . D. Distt. comprises transactions in finance.795003. PG in Actuarial Science: Kalyani University. Fort. Saket. MSc in Actuarial Science: University of Chennai. PO Kalyani . Imphal .

Alagappa Nagar. Look at the job that you are applying for. is the most accepted form for job applications in USA. The main purpose of your CV is to make you attractive. easy to read.. interesting. Diploma in Insurance: University of Chennai. TIPS ON WRITING CURRICULUM VITAE A Curriculum Vitae (CV) is quite simply an advertisement to sell yourself to an employer. Go through it again and again and refine it to make it short. Centenary Buildings. Therefore. you did not say it”. An employer may have several hundred enquiries about a single job. Aligarh . but not to other person (and ultimately an employer). Sector 4. Karaikudi . your CV must be precise. PO Annamalai Nagar . While the CV represents in-depth and structured information about the professional experience and qualification of a person. Thus. Remember the principle: “If they did not hear it. Before submitting your CV do not forget to spell-check/proof-read. Also. Preparing to write your CV Sit down with a piece of paper. PG Diploma in Insurance Management (correspondence): Alagappa University. on the other hand. After you have written your CV get someone else to look at it. Directorate of Distance Education.110017. The CV is used in USA exclusively for jobs in academics.202002. attractive and error-free. But.600005. CV is the most accepted form for job applications all over the world. Diploma in Banking & Insurance: Aligarh Muslim University. The resume. your CV must be as good as you can make it. This is important. Triplicane PO. T. there are a few basic differences. The terms 'Curriculum Vitae' and 'Resume' are generally interchangeable.N.608002.411007. New Delhi . they do differ in many ways. U. While both are lists of the most relevant information of a person seeking a job. Pushpa Vihar. Do not use lots of different fonts and sizes. education and experience compare with the skills that the job requires. What you have written may seem simple and obvious to you. Picture yourself to be a busy manager in the employer's office who has to read through hundred of CVs in half an hour and select the best from them. Diploma in Insurance (PT): Annamalai University. easy to read and attractive.P.623003. PG Diploma in Insurance & Risk Management: Birla Institute of Management & Technology. Consider how your skills. Chepauk. How much information do . the resume usually is the same thing in a short form. You should use bold and/or underline print for headlines. make sure you include all the information about yourself that will help the recruiter to consider you as a potential candidate. worth considering to the company and so receive a job interview. Chennai . A CV should be well laid-out and printed on a good quality printer.

Include any special project. college address. if they are interested. home address. Or. References: Usually give two names—one from your place of study. give details. then an older family friend who has known you for some time should be given as a reference. with variations within them. Put page numbers at the bottom of the pages—a little detail that may impress. how many games you played. Skills based: You think through the necessary skills needed for the job you are applying for. may not need much detail. No harm if your CV takes two A4 sheets. Give only enough detail to explain. Then you list all your personal details under these skill headings. and one from any work place. unless it connects with the work you wish to do. A hobby such as coin-collecting may be of less interest to them. taken at say age 15-16. computing experience. products. Subjects taken and passed just before college or during college will be of most interest. do include the details. jointly or by yourself. successes.) If you have published any articles. Information to include in your CV Personal details: Name. or possession of a driving licence should be included in your CV. If you have been involved in any type of volunteer work. Earlier courses. etc. But do not crowd it and layout your CV with reasonable line-spacing and white spaces around. email address. with the most recent events first. and approach from their own publicity. thesis. phone number. Include subject options taken in each year of your course. and is . with grades. or which involved you in relating to others in a team. Chronological: Information is included under general headings— education. Spend time researching detail about the job that interests you and information about the employer—their structure. This is called 'targeting your CV'. Give their day and evening phone numbers if possible. work experience. Do not normally go longer than this. Do you have your own web homepage? Include it if it's good!). they do not want to know the exact date you started. Pre-college courses should then be included. Length: Maybe all you need to say will fit onto one sheet of A4. and how many wins you had! They will ask this in the interview. Part-time work should also be included in your CV. reports and publications. Skills: Ability in other languages. or work. Style: There are two main styles of CV. Most recent education should be listed first. Education: Give places of education where you have studied. Give the name of your employer. as well as newspapers and internet. and very important. Interests: Employers will be particularly interested in activities where you have undertook leadership role or a responsibility. what you actually did and achieved in that job. Ask for more detail if needed. job title. if this does not apply.. (If you were captain of a sports team. Make sure that referees are willing to give you a reference. Work experience: List your most recent experience have about the job description? Sometimes employers do not give enough information.

A resume should highlight your skills and achievements above all other things. In a medium size company. Other points Keep copies of all letters.(i) Chronological . A CV is normally accompanied by a cover letter. A resume is usually presented without a cover letter because the main reason you are submitting the resume is fast processing.) Clearly say what job you are interested in. it is okay if the Curriculum Vitae contains voluntary and honorary positions and work done in such positions. though it can sometimes go up to three to five pages. 'I would be interested in working for ABC Ltd'.) Application forms To apply for some jobs. a cover letter would defeat the purpose. it may be the managing director. (If you saw the job advertised. Covering letter: When sending in a CV or job application form. to that person by name. You should still use a covering letter. and send your CV also unless told not to. are: • • • • • CV is a list of all your achievements until the date you are submitting it. and records of telephone calls and names of those you spoke to. CV should include everything that you have done and can be classified as work outside the home—whether paid or unpaid. Start your letter with an underline heading giving the job title you are interested in. explain what sort of work you are interested in. The purpose of the letter is: To make sure that the CV arrives on the desk of the correct person. Do not say. you must include a covering letter. and address your letter. Only in a large company will there be a Personnel or Human Resource Department. and envelope. A resume would contain of only what is strictly relevant to the job applied and nothing else —it is more important to have all the information contained within one page. A CV is ideally two pages in length. but say 'I believe my skills equip me to work in the product development department/accounts office/etc'.e. and CVs sent. (In a small company. Do take advice on how to do it best. the employer will send you an application form. and find the name of the person who will be dealing with applications or CVs. presented in reverse chronological order (i. hence. applications forms. Application forms need as much care to write as CVs. A resume should not be longer than one page. If you are sending in a 'speculative' CV hoping that they may have work for you.becoming more common. The Resume • • • • • A resume is a precise and very brief document representing at-a-glance your key skills and main achievements. which summarizes what it contains and points out the match of the applicant with the job. it may be the head of section/department. say where you saw it. unless in rare exceptions. The main features of the CV. the latest achievements first). The CV structure should be very systematic and is generally drawn in a specific order. in brief. A resume usually can be written in three very different styles . Take the trouble to telephone.

It gives you time to brood over ugly . Being busy does not destroy your inner tranquillity—it helps in its growth. The sad aspect of this is that you fritter away this time on fancies and frivolities. Quality of information is what really matters on any CV. in the long run. PURSUE PROJECTS THAT POWER YOUR PERSONALITY You have to keep busy by finding worthwhile projects and aims in which you use your physical. in quest of a career. You get a call. One is that it fetches vast stretches of leisure time.resume—whereby your skills and main achievements are listed by date starting with the most recent ones first. you are disgruntled. he will do your work. This is especially true when you do things you like doing. “I am in Shimla on a holiday. hence. Boredom. give it to a busy man! The implication is that he is busy because he is doing things. and ingenuity. A youngster. come a cropper in career chase. you have to discard the prevalent notion that to be successful you have to be well connected. If you want to subscribe to this practical way of life. It's illegal. He has plenty of spare time because he is not doing anything. Keep it real. breeds trouble. and it's just plain stupid. too. managerial proficiency. and do not exaggerate. (ii) Functional resume—whereby your skills and experience are more highlighted than anything else and (iii) a combination of both— whereby both skill and achievements are presented hand-in-hand. You respond. At the end of the year. Cell phone calls prove the point. They challenge you to improve your competitive skill. When you are inactive and sluggish. at all times. Call after two days. he finds himself trailing those whom he dubs mediocrities! It’s important that part of this time should be used for doing things which are going to stand in you in good stead in the long run. IMPORTANT NOTE: Do not ever falsify information. it makes you bored and banal because we are active when working. If you want to get a thing done. or give any misleading information to an employer under any circumstances whatever. it's self destructive. Your present way of living does make heavy demands upon us but there are compensations galore. mental. spends two hours in gossip and chat session in coffee house or a beer bar. Such an approach atrophies your faculties. This is the path to a satisfying life. Actually. and intellectual faculties. He is constantly planning. Only give verifiable information. Give it to a man who has plenty of leisure time at his disposal. You will. on the other hand. This is precious time you call your own. Do not put yourself in a position where your statements can't be trusted. and he will not budge from his groove.” This is anti-growth. Such a person is happier than the “mentally lazy” one.

Spaced v. You have galvanised yourself. Michael Korda puts it like this: most of us fail in (career) because we do not control our laziness. Look for an opportunity to “achieve”. you must have something harsher-going in your hands. You love depression (dark mood) and ready yourself to give up your life-aim. how small it is. We are held back by laziness which produces a permanent inertia. There is a spring in your step. Wait is defined: washed away by the sea but unclaimed: stolen goods thrown and by the thief. It does not matter what is it. Ennui is your greatest enemy. These are gastronomical rituals. The trick is to transform a negative quality into a positive reinforcement. Emotion is linked with success. —English proverb For effective learning and remembering. Cut out rituals A ritual is a preliminary to something else. Some pre-study rituals take the form of special eating. rather than criticise. a stray person. In simple words —plan for laziness! TECHNIQUES OF LEARNING & REMEMBERING There is no royal road to learning.aspects of your life. Then there are social rituals like talking to some one. Get on with the work. focus on failures. Some students must go through the ritual of dressing for the ordeal of study. a rainbow in your heart. You want to compete with others in this harsh world. The complex human physical system works better when you are emotionally up-beat. There is a way out: you must have at hand something going which keeps you physically and mentally involved. The negative skeleton becomes bigger and bigger. Cut out the rituals. All successful people have an inner glow. and regrets. This brings about a change in your attitude. Your career sags in that proportion. Such ritualistic activities are apparently legitimate reason for postponing studying that is anticipated as both being difficult and disagreeable. As you plan your future. Continuous method of study . making telephone calls. Indulgence in them means frittering away of time and energy. you find the feelings of well-being growing in you. It cannot become sluggish when it is engaged in a activity of its liking and stimulating kind. The positive one shrinks in that measure. and add to negatives. Look for something to overcome. You will soon be enjoying emotionally induced success. You begin to wallow in self-pity. Your mind becomes a beehive of activity. the adoption of psychologically sound techniques is essential. This is the sign of a wait. They are attempts to put off what you are not at all eager to do. There are many rituals indulged in as preliminaries to studying. There are personal rituals. In this chapter we outline such techniques. complaints. It gives you time to smart under real and imaginary grudges.

They are much more easily remembered than long verbal statements. it also makes the forgetting of wrong things possible. to re-read sentences and paragraphs that are not clearly understood.In the spaced method of learning. nor to find talk and discourse. The rest pause not only makes integration possible. and the relevance of the book to your own areas of interest. the facts out of which the general ideas and broader view of the subject developed. It is also called the distributed or the study—rest—study—rest method. You experience less fatigue. not to believe and take for granted. and at the right level of standard. if it is not well-written.” (3) Reading: The next step—reading proper—is of vital importance. It is the reading in which your major study work is done. If the book does not suit your purpose. study the table of contents and the index. (2) Question: This step involves asking questions. naval. and get an over-all perspective of what lies before you. in due course. He cannot help dwelling on particular points as he reads.” Bacon wrote. Keep in mind your own object in study.e. and contrasting or uniting them with other points that he has just grasped. Psychological research has repeatedly shown that the spaced method is superior to the continuous method. The SQ3R system of study The SQ3R system of study has proved of undoubted value in American colleges and universities for effective study. It is contrasted with the method of continuous study. look for a better one that makes the grade. This type of reading is analytical reading. It entails going rapidly through the chapters of the book which you are tackling and jotting down such questions as occur to you. (1) Survey: Briefly this means that instead of picking up a textbook and reading one of its chapters over and over. The rest pause following a period of learning gives you an opportunity to integrate what is learned. It compels you to think and to marshal such knowledge as you already possess. The spaced method encourages you to spend more time on studying. Avoid . read the chapter summaries (if there are summaries) and skim rapidly through the book.. The first reading of a textbook chapter should be slow and thorough. If the subject is illustrated by graphs or diagrams take the trouble to master them. Most good textbook chapters have a pattern of headings and subheadings which you should keep at the back of your mind as you read. the specific results. It is akin to military. etc reconnaissance and its importance can hardly be over-stressed. you should first ‘survey’: i. By maintaining a questioning attitude you will. “Read not to contradict and confute. the aim of which is to discover the details. thus making retention of the right things possible. Adopt the spaced method. In brief make a reconnaissance before you start your main work. The SQ3R stands for: Survey Question Read Recite Revise. This is useful as it motivates you and gives you a purpose. come to study books critically: “No intelligent person merely reads a book. learning periods are distributed in time separated by periods of rest or the periods of very different activity. read the author’s preface. It requires you to read more slowly. the syllabus you are trying to cover. find out all you can about the aims and purposes of the book. but to weigh and consider.

(4) Hear it—hear that musical selection you are trying to master. Revision should not be considered something to be undertaken just before exams. (2) Reading as a ritual like reading an assignment three times with the blind faith that somehow three readings of an assignment will lead to success. Avoid it. visualize the characteristics of each of the several types of architecture you are studying. Memories become stronger and stronger with each re-learning and forgetting proceeds more slowly.g. (b) It facilitates the use of immediate goals. e. (3) Picture it.. with the most emphasis given .. Its value is further enhanced when there is some device by which you are kept informed as to whether the ideas you are recalling are correct or incorrect.. (e) Finally recitation gives you patience in doing what you ultimately want to do.(1) Automatic reading.g. Underlining the importance of review Prof W. a complex theory you are trying to learn. e. “Review should be selective. Bacon wrote. (8) Outline the substance. Recitation is a very potent and effective factor in remembering (memorizing) for the following reasons: (a) It keeps motivation strong. Further revisions are often necessary before the final revision which precedes exams. which fails to command conscious attention. The first revision should take place as soon as possible after the original learning. (c) It tells you how well you are progressing in learning. Ruch says that it is important to review as soon as possible after learning and then to review again and again from time to time. “If you read anything over twenty times. lay the book on one side and try to recall what you have been reading. (9) After reading each major section of a chapter. Studies have shown that time spent in active recitation leads to more effective learning. Use other senses also. (2) Draw things which lend themselves to drawing. (1) Write it. (5) Tell it to someone. (6) Explain it to someone—e. Memory experiments show that material that has to be retained over long periods should be studied and restudied. for establishing the habit of reading ideas rather than words. you will not learn it by heart so easily as if you were to read it only ten times trying to read it between lines and when memory failed looking at the book. (3) Recitation: Recitation is defined as an attempt to reproduce in any way that which is being (or has been) learned. (10) Write out abstracts.W. Revision The final step of SQ3R system is Revision.g. data represented graphically. (d) It gives rise to reward when you are successful or punishment when you are less successful in what you are learning. (7) Talk it over—discussion in a group of two or three.” How to recite Following are ways in which you can recite a given material. Periodic recall is an undoubted aid to learning.

is sound advice. then check with your books and notes’. It needs emphasis that revision should be an active rather than a passive process. and a few attempts at answering old exam questions should give you a better idea of where your true strengths and weaknesses lie. ‘Revise by writing down from memory what you know about each topic. however. Learning a poem by the part method means that you learn it line by line or stanza by stanza. It is over-learned when you continue to practise it after you can recall it 100 per cent correctly. Another 5 minutes would represent 50 per cent over-learning. There is a third method called the progressive part method. as more of it will have been those parts which are most important or most difficult. The part method is a case of breaking the whole up into parts and learning the parts part by part.” In revision before exams. Research studies have shown that subjective estimates of strengths and weaknesses are often faulty. it might take you 10 minutes to learn a vocabulary of 20 foreign words. not going on to the next line or stanza until the previous one has been learned. If you then carry on learning and reciting with the same close attention as before. must be active learning. you should over-learn it. It pays to over-learn because of the distinct gain in retention: it increases the strength of your memory traces. Your attention must be riveted upon what is being learnt. be necessary in view of the factors likely to affect recall. pay particular attention to the earlier material you have learnt. Over-learning is learning in which repetition or practice has proceeded beyond the point necessary for the retention or recall required. part technique of learning In the whole method of learning. As Maddox observes. As each part is learned in turn. Such over-learning may. over-learn actively and with conscious attention by using various methods of recitation. another 10 minutes 100 per cent. material is underlearned when it has not been studied long enough for you to be able to recall it 100 per cent correctly. As Dudley puts it. When you memorize a poem by reading the entire poem through again and again you are using the whole method. It also means that you spend added time and energy learning something which you already know. “Do not repeat what you wish to remember until you barely know it. Active revision. It is that added time and effort beyond what is required now that you have put into learning what you intend to recall at sometime in the future. the whole poem is finally mastered. “If you want to remember something for a long time. Technique of over-learning Over-learning is an important technique in learning and remembering. which are bound to enter subsequently from the circumstances of the case.” Whole v. By this method the . but until you know it really well. that which is learned is always dealt with as a whole. Leave yourself time to go over all the material you have covered. you are overlearning the material.” Over-learning to be effective. Therefore. For example.

Go over the whole task a few times to get the advantage of meaning and continuity and to detect the difficult parts. Says Martin Rhodes. and then practise the whole task again. the part method and the progressive method— over the others. he points out. The whole method has the advantage of eliminating this step.poem is learned line by line or stanza by stanza. This makes necessary the additional task of learning the transition between parts. In fact in the light of the experimental results. By preference the progressive method is favoured by most learners. Then the third part is learned and subsequently added to the first two and now the three are repeated. Experimental methods do not favour any of these methods—the whole method. but after the first and second parts are learned. “each is inclined to stand out as a unity by itself. When material is learned by the part method. Thus you tackle the whole poem every time. Advantages of part learning In rote learning short tasks are proportionately easier to learn than long tasks. When the whole task is broken up into parts the parts frequently become less meaningful because the continuity or relationship between them are lost. as in the part method. the parts must eventually be put together. Here the whole method has the advantage.” PLANNING STUDY SCHEDULE . This is a combination of the whole and part learning. Ruch recommends a combination of part learning and whole learning: “In practical learning situations the best results will probably be attained when part and whole methods are combined. and there is a difficulty at the end of each in getting switched on to the proper one to follow. Another advantage is that each part is learned to mastery and then dropped for the moment. Prof W. Logic favours the whole method. Advantages of the whole method Since meaningful material is easier to learn than non-meaningful material. the part learning and the whole learning has its advantages and disadvantages.” Flexibility of method As the above considerations make clear.W. the two are repeated together thus making them into a unit. not a verse every time. Evaluation Each of the two methods. Sir John Adams also recommends that every unit in learning should be learnt as a whole. use whichever method you prefer. anything that enhances meaning helps learning. “It is better to learn in wholes than in parts. In part method the learner gets knowledge of progress sooner and is thus encouraged.” Another expert holds that it is better to repeat the material as a whole than to break it up into parts and repeat each part separately. This process is continued until the whole poem is mastered. Therefore it is easier and quicker to do rote learning in a series of short sections than to try to learn a long task all at once. When you learn a poem by stanzas. Give these parts extra effort. This eliminates spending more time than is needed in going over easy parts. there is no general rule concerning the relative effectiveness of the two methods.

I don’t believe in circumstances.” No magician ever pulled a rabbit out of a hat without carefully putting one there in the first place. monthly.. He will be like a ship without a rudder. about a penny a day.” The secret of success in any field of endeavour. he would probably have failed as a writer and might have remained a bank cashier all his life. the text books and other material you must read and learn.B. The long-term plan may be split up into periodical short-term plans in which you can set yourself targets for important pieces of work. adrift at the mercy of wind and tide or of circumstances. This long-term plan may have to be revised from time to time. and follows that plan carries a thread that will guide him through the labyrinth of the most busy life. all things lie huddled together in one chaos.. How to work your plans? . For making the long-term plan find out all about the syllabuses you have to cover. But where no plan is laid. The people who get on in this world are the people who get up and look for the circumstances they want. and (2) short-term plans. WORK YOUR PLAN How to plan your study-work? In coping with any course of study make yourself (1) a long-term plan embracing the total time you have at your disposal. spasmodic and desultory dabbling never produces the same result as work carried on with a definite purpose and clear-cut lines. That plan inspired him to go right on writing five pages a day for nine heart-breaking years. even though he made a total of only . fortnightly. and if they can’t find them. The difference between planned activity and unplanned activity is brought out crisply by Victor Hugo: “He who every morning plans the transactions of the day. He snapped his fingers at circumstances and said. That plan and his dogged determination to carry it through saved him. make them. where the disposal of time is surrendered merely to the chance of incidents. but you should have an over-all picture of your study-work and the time-range of your plan. Shaw had not made it a strict rule to do first things first. “People are always blaming their circumstances for what they are. Carrying out an activity by fits and starts. which admits of neither distribution nor review. Keep a record of the progress of your plans-in-action. His plan called for writing five pages each day. the practical work you have to cover and other requirements which you have to satisfy. or weekly as may be convenient. If G. The orderly arrangement of his time is like a ray of light which darts itself through all his occupations. including study lies in six magic words: PLAN YOUR WORK. No man can hope to arrive if he does not know whither he is going.A man who does not think and plan ahead will find trouble at his door. —Confucius The Importance of planning Planned or unplanned activity makes a difference.

Then the day will come quickly when you will have the satisfaction of reaching your goals and free time for pleasure while others are still dabbling. Some will tell you that you cannot succeed because you lack brains. You never hear of quitters. the good workman knows that great things are possible. time and so on. The well-known fable of the hare and the tortoise teaches us that slow but sure. When you don’t work to a timetable but work only when the fit is on you. in watching TV. Do what you have planned inspite of discouragement and temptations of others. Stick to it and you will achieve success. Advantages of a time-table The advantages of a time-table are many: (i) The first advantage is the saving in time and effort. If you do not impose set hours on yourself. Don’t look farther than each stage. what may be done at any time is done at no time. and you begin to regard it as a natural . To persist you need the ability to turn a deaf ear to the remarks of other people. “it has all the force of a law which must be obeyed. skill. reading a magazine. They never attain success or happiness. It is ‘fatally easy’ to fritter time away. A lot of energy is uselessly consumed in trying to choose between alternatives and in screwing up your resolution to work. a quitter never wins. A French sage remarks pertinently. and in time adherence to it becomes effortless. little by little. Others will tempt you to leave work for more pleasurable occupations. If you have a timetable and mean to stick to it. Without it you are likely to spend much time in decision—in making up your mind when and what to study.” (ii) The second advantage is the proper use of time. wins the race. took things too easily. you are more likely to spend the time when you should be studying. I Frame a time-table: Indispensable need For successful study a time-table is an indispensable need. brawn. They go through life leaving a trail of unfinished jobs—what can they possibly lead to but frustration and failure? A winner never quits. Give top priority to their implementation. over-confident of victory. Strive with both your body and mind towards hitting your targets. “The fool thinks every thing is easy and comes in for many rude awakenings. refusing to look up at the heights or down into the depths because the sight of either would terrify him.Your plans will work only if you work them. thereby following the example of the mountaineer who cuts steps in the ice. “There is no more miserable human being than one in whom nothing is habitual but indecision. The race was won by the slow tortoise. Don’t be discouraged by the size of the task you have to do. Give each stage in your plans your undivided attention.” The homely saying “Little by little and bit by bit” teaches patience and perseverance. conversing idly over cups of tea or in doing any of those hundred and one things which weak and irresolute persons are ready to do rather than buckle to work. your study will become spasmodic. which plodded steadily on while the hare. wobbling and struggling. Put your whole heart into them. the sluggard believes that all is impossible. and undertakes nothing. he accomplishes them. As William James has it. and prudently. As the old saying has it.

“Your mind responds to variety which prevents it from becoming stale and helps to keep it alert and lively. For example.” (iii) The third advantage lies in the saving that comes from intelligent dovetailing of your various activities. (5) Introduce a variety of different kinds of tasks: spend some time reading.part of your life. the following guidelines are suggested for making a time-table: (1) A time-table is a guide. some writing. says Arnold Bennett. A time-table that falls through has its disastrous aftermath. international law should be followed by sociology and mathematics by history. (4) Having estimated the total amount of time to be given to study. It is an aid. a fixed quota of work to get through. Edward Young who coined the famous proverb ‘Procrastination is the thief of time’.” (v) A time-table makes for efficiency. “Be wise today. (b) While the hardest subjects should generally come first and the easiest last. settle in what order these subjects should occur in your time-table bearing the following principles in mind: (a) The more difficult subjects should come first and the easiest last. (2) As much as possible use your day time hours for study.” (6) Have a target for each period of study.” (vi) Finally. Procrastination—deferring things from day to day—wastes a lot of time and usually ends in nothing being done at all. After a very hard subject a very easy one may be used as a kind of rest after the strain. As Martin Rhodes observes. But the alteration should be according to the different kinds of subject. to form good study habits and to persevere. it is the only method of avoiding hurry. It can be changed from time to time to meet present needs and exigencies. “that is. (iv) The fourth advantage is that a time-table is an antidote against procrastination. also exhorts. (3) Do not be too heroic: In order that you may live up to your time-table base it on a careful estimate of your capacity for work. there is room for a certain alteration of the easy and the difficult. a carefully worked out time-table will help you to keep up to date. of the best way to divide one’s time into one’s various activities—is an essential preliminary to efficient work. and as a rule. Follow a period of sociology with a period of geography. such as a chapter to read. some on revision and so on. not a task-master. and eventually in the self-confidence and sense of competence which comes from regular daily work. Fix a number of hours that you know to be within your powers. “A sense of the value of time”. we have more energy and are less fatigued. . How to frame a time-table? In the light of psychological research. an essay to write. It must be flexible. ’tis madness to defer. in ensuring that you do each work at the best possible time. During the day our attitude towards work is more positive.

Boredom. (ii)45 to 90 minutes and more. There are optimum periods of work and rest for every task and for every individual.(7) Don’t be overly rigid in the use of your time-table. “Do as I have done—persevere. If you find a particular subject difficult allot more time to it than to others. Do not for one repulse forego the purpose That you resolved to effect.” .” George Stephenson. rest periods should be short in relation to the work period—of the order of 5 minutes or so. Goethe said.” An individual who is tired and greatly in need of rest cannot do any good work.” In the course of study. rest periods or breaks are essential and invaluable. and dissatisfaction with work tend to set in after about two hours without a break. That ascertained. was accustomed to sum up his best advice to them in the words. If you cannot finish your target work at the exact moment when a new subject is due. “Repose is work’s greatest achievement. “is a part of the art of working. Work produces fatigue. pursue it resolutely. Experts have suggested various periods (i) 40 minutes. adhere to it. The following guidelines on rest periods given by an eminent psychologist are commended: During a session of continuous work on the same task. rest or recreation removes fatigue. Adhere to your time-table Having drawn up your time-table. “The art of resting”. when addressing young men. If longer breaks are taken momentum will be lost and considerable effort needed before you become warmed up to the task again. stretching your arms. (8) The length of the study periods to be devoted to each subject will depend upon the nature of the subject and your stage of advancement. The human organism cannot survive without alternating work and rest. (9) It is necessary to give equal time to your subjects. etc. You must be ruthless and selfdisciplined and permit only special circumstances to interfere with it: “See first that the design is wise and just. In general. says Andre Maurois. it is sensible to take 15-minute breaks between tasks and smaller breaks in the course of a task. A change in activity or posture during the rest are desirable. A rest should be taken whenever you feel that you are slowing down and making errors. Rest intervals between different tasks may well be longer—about 10 or 15 minutes. don’t stop when a few more moments might produce all the difference between complete and incomplete task. such as walking around the room. As a general rule 60 minutes forms a suitable average period of study for a subject. distractability. brisk walk outside or some light refreshment. Rest Periods Rest means abstinence of exertion or activity. Then a short. often serves to restore energies to their former level.

marketing. . business. —Exploring the structure of such solutions and developing systematic procedures for obtaining —Developing a solution. OPERATIONS RESEARCH Whatever the economic circumstances and business environment—recession or growth. Opportunities for OR professionals have never been better. If you are thinking of a general management career. the Duke of Wellington is said to have exclaimed. OR will give you a flying start! OR is an evolving discipline—because the world is ever changing. Make it a habit to work to your time-table. The demand for OR specialists and the variety of work on offer are expanding rapidly. if necessary. namely. These applications. retailing. to which I owe not much. And don’t ever be discouraged if every shot is not a bull’s-eye. deterministic and probabilistic systems that originate from real life. OR teams are involved in projects which draw on a wide range of business skills and have dealings with anyone from shop-floor to boardroom. creativity and enthusiasm are every bit as important as technical ability. “Habit is a second nature! Habit is ten times nature”. abstracting the essential elements so that a solution relevant to the decision.maker’s objectives can be sought. all things are attainable. including the mathematical theory. are characterized largely by the need to allocate limited resources. and the natural and social sciences. OR is a profession where initiative. Whatever your career aspirations. OR has firmly embedded itself in a wide range of sectors. you will have to give up your giving up and replace it with dogged perseverance. Planning your work and working your plan will ensure your success. Operations Research is concerned with optimal decision-making in. and modeling of. there are few better ways of getting an early overview and understanding of how organisations operate. which occur in government. the financial and service sectors as well as local and Central government. including manufacturing. Operational Research (OR) is an essential management tool for understanding and solving the many complex problems that face organisations nowadays.If you want to reach your goal. cope with uncertainty and provide long and short term strategies for their organisations. Operational Researchers work to help manage information effectively. Over the years. economics. confident or uncertain—organisations are increasingly calling for better information handling and more informed decision taking. that yields an optimal value of the system measure of desirability (or possibly comparing alternative courses of action by evaluating their measure of desirability). transport. One of the attractions of OR work is its variety. The contribution from the operations research approach stems primarily from: —Structuring the real-life situation into a mathematical model. As an Operational Researcher you could have the opportunity of moving around and experiencing many different business environments. Keep to this habit till you reach your goal. This involves looking at the problem in the context of the entire system. Sir Thomas Fowell Buxton once wrote: I hold to a doctrine. but all the little I ever had. that with ordinary talent. engineering. and extraordinary perseverance. Typically.

Health: Efficiency enhancements and better patient care are perennial challenges for those providing health services. Retailing : The analysis of market and consumer information is a major and rapidly growing role for OR in the retail sector. OR techniques are widely used in the health service. maximise the outlet’s sales. This means that. Universities and research institutions: OR people teach on a variety of university courses: undergraduate and postgraduate management degrees and diplomas. OR is seen as a key contributor assisting in the development of policies that are based on evidence and will work in practice. in banking as in other sectors. They are widely employed in Credit Risk Management—a vital area for lenders needing to ensure that they find the optimum balance of risk and revenue. for example. Operational Researchers address a very wide range of issues from the planning and analysis of high-street customer services to organisation strategy and international finance. Data from store loyalty card schemes is also analysed by OR groups in a variety of ways—for example. can be helped by OR. OR groups are treated as a source of talent for general management positions. to advise on stock holding policies and overall profitability improvement. This drive for optimising the use of existing systems. appointment systems have been designed that substantially reduce outpatients’ waiting times whilst keeping highly qualified medical staff fully occupied. as well as the more specialist OR and mathematics degrees. OR has been used to determine which shelf layouts best suit the shopping habits of customers and.Because the skills of good OR—an analytical mind with an action orientation and sound people skills—are precisely what are needed in all successful managers. Some of the varied career opportunities that are available to Operational Research people are: Transport and travel: Growth in the transport sector is often constrained by financial and environmental pressures. The project variety offered to Operational Researchers enables them to develop a wide range of experience at an early stage in their careers. by using OR. . so. government restrictions and the need to maintain safety standards. and for forward planning. OR is a significant recruiting ground for senior management talent. In supermarkets. The result of this is that demands often exceed the capacity of the system and there is always a need to squeeze the maximum possible out of the existing infrastructure. Financial services: OR is very active within the major banks and other financial institutions. For example. OR developed techniques are used widely by airlines and other transport operating companies to offer varying fares and make higher revenues by filling more seats at different prices—an OR technique known as Yield Management. and formulate and debate plans for future improvements. For example. Government: There is a demand from the very top of government for the increased use of analysis and modelling to underpin the ‘Modernising Government’ initiative.

Given the need for companies to target their marketing activities ever more finely. . it was impossible to analyse such large databases. computer modelling of attack-defence scenarios has become of paramount importance. retailers are now able to capture immense volumes of sales data which. helps companies to understand which types of customers buy what kind of products or services. but new OR techniques have made this achievable. more importantly. such as those in agriculture and forestry. by virtue of loyalty card schemes. The task of matching customer needs to stock holding or product development strategy then becomes very well informed. in an operation such as food retailing. millions of transactions can be completed each day. Many management consultants have Operational Research Groups that are highly skilled in the techniques and application of business modelling and have the essential expertise in analysis and interpretation to deliver a positive impact on their clients’ business processes. database marketing has become a very important element in many companies’ marketing strategies. Consultancy: Consultancy is a strong growth area and many business consulting organisations increasingly have sections that specialise in business modelling. that can identify customer behaviour patterns. Having data capture systems in place. Clearly. statistics and OR. In addition to providing a source of income. Defence: As a consequence of the development of very fast. it is now possible to use the information to devise precisely targetted communications about products and services which are most likely to appeal to the targetted customer group. often employ OR trained people. they are able to attribute to individual customers. Depending on the institution’s needs. This has led to an increased presence of Operational Researchers and there is a strong presence both within the Ministry of Defence and the Defence Research Agency. Business Process Re-engineering (BPR): The ever greater need for companies to increase profitability has resulted in many BPR initiatives. therefore. this work helps to strengthen the links between the academic and practical OR environments. Specialist Research institutions. There is also a requirement to deliver results which clients will consider to be value for money. Since improving business processes is a core OR function. their consultants tend to be involved in a wide variety of project work. Consultancy projects are often fairly short and intensive with a particular emphasis being put on achieving an agreed timescale. these people could be part of a small OR team or attached to a specialist research team. Until recently. Database marketing: OR techniques have been used to develop programmes which can identify and cluster various customer types. As the point of sale bar-code scanning technology has developed. Operational Researchers have become heavily involved in helping companies to re-engineer. computer controlled.Staff of universities also specialise in the development of techniques and universities encourage people to pursue consultancy work for outside organisations. Consultancies tend to have a very broad client list and. defence systems. By applying OR methods to such an immense volume of data.

planning and scheduling. Water. and (e) Deciphering personal traits and characteristics. (b) Listing accomplishments. The scale of operations in such large organisations means that even a small percentage gain in performance can result in very great benefits. One can start by (a) Learning interests. and desired life style) you should become aware of the inter-relationship between self and occupational choice. make decisions. improve selfconfidence. It also contributes to marketing. This model is helpful not only for freshers but also throughout one's life. As you begin to develop a better understanding of yourself. aerospace. The types of industry currently using OR are numerous and include brewing. in the best of times. set goals and take action. and work values. as also by IIT Bombay and some Management and Engineering Colleges. finance. HOW TO PLAN YOUR CAREER Choosing a career is a difficult matter. computers. We give here a model which can help young people to choose a career. steel production. abilities. The decision for each individual is different. abilities. Many projects involve modelling the complex operating logistics of these large operations. (c) Understanding physical and psychological needs. personal traits. OR is commonly used to assist with plant logistics. motor manufacture. Whilst this may always have been important. striving for continuous improvement. power. Add to this opinions of friends and parents. telecommunications and mining: In these business sectors. such benefits are now crucial in the more profit conscious and service enhancement orientated environment. personnel and strategic planning work. aptitudes.Manufacturing Industry: OR has traditionally played a significant role in helping companies to improve efficiency. etc. since everyone is a distinct individual. you will gain self-awareness. and the young person is caught up in a confusing situation where making a decision is almost impossible. forecasting. OR projects in this sector can also focus on marketing. the cultural changes brought about by privatisation have tended to emphasise the contribution of OR. personnel and strategic planning matters. gain competencies required for it. interests. Self Assessment This step involves gathering information about yourself to make a decision about a career. skills. Where to Study Graduate and postgraduate courses in Operations Research are offered by almost all leading Universities in India. By developing an understanding of self (values. reduce costs and make the most effective use of capital investment. (d) Assessing aspirations and motivation level. Operational Researchers take a lead role in working with staff at all levels to negotiate and implement working methods. understand the importance of time management and also develop personal as well as .

One must gain research and investigative skills. or take up a part-time job. practice decision-making. For example. Explore how and where you can get the education and training required. work part-time or during summer to acquire new skills and practice public-speaking in classes or in organisations. one can take exploratory classes or attend workshops for study skills. one should develop interpersonal skills in expressing feelings and ideas and interact with people. gather information about those careers. You will begin to make more specific decisions about occupational choices. one should participate in the Alumni programmes of your college. tutor students in various subjects. summer jobs. This inventory is designed to help you identify values. increase your competency levels by learning communication and interpersonal skills. Time management techniques should also be picked up. one should interact with professionals. or join a professional knowledge. volunteer work and campus activities. you must identify academic and career options available. or join activity clubs or professional clubs. Competency Areas It is important to improve competency all the times. narrow a general occupational direction into a specific one through an informed decision-making process.professional management skills. One must also increase understanding of how abilities. Identify institutes where you want to apply. Self-defeating behaviour should be got over with. This step allows you to investigate the world of work. Also assess job market trends and have a second plan ready. co-operative education. The next step helps you to evaluate occupational choices and gain practical experience through internships. participate in the Study Abroad programme. and match the career information with the results from your selfassessment. Students abroad are known to start small businesses in order to enhance their skills. Also identify work values and gain a positive attitude. Skills that can be thus acquired are: communications. Some ways in which self-assessment can be done are described here. Confidence-building is very important at this stage. foreign languages and international studies. To gain competency. . consisting of academic and career alternatives. Once this is done. One must be careful that one should allow regular time for leisure. A youngster must make it a point to attend job and career fairs. interests. Ideal Life Style Inventory Mark each item that best describes how important these things are to you. For instance. Academic and Career Options After you have completed your self-assessment. discuss with professors. develop problem-solving skills and take up critical thinking exercises. and values match career/academic requirements. meet academic advisors and career counsellors. One should identify one's personality style and see what one is best suited to. one should learn about academic and career entrance requirements. You will begin to identify potential careers. At this stage too. hobbies and friends and not get involved in work all the time. Here too. It is not scored. or attend courses and workshops in areas where one can learn skills.

fantasies. Allow yourself to dream. Findout also about the education. Match personal qualifications. you will be in a good position to select the job you want. specialisation within the occupation and the tools used in the occupation. and have fun. The following questions could act as a guide: a) How did you get into this occupation/organisation? b) How did you become interested in this occupation/organisation? c) What entry-level jobs might qualify a person for this field? d) What is the progression of jobs from the beginning to the top? e) What responsibilities and duties do you have in your work? f) Who are your customers? Who are your competitors? . Sales jobs. five to seven years from now. Talk about where you would be living and who else might be there.Live in a House: Very Important Moderately Important Not Important Live in a Rural Area: Very Important Moderately Important Not Important Entertain at Home: Very Important Moderately Important Not Important Spend Money: Very Important Moderately Important Not Important Frequent Travel: Very Important Moderately Important Not Important Have Many Possessions: Very Important Moderately Important Not Important Have Lots of Money: Very Important Moderately Important Not Important Live Close to Recreation: Very Important Moderately Important Not Important Live Near Cultural Centres: Very Important Moderately Important Not Important Access to Movies. Project yourself into the future. products made or services provided by this occupation. skills. Of course. Imagine in a two-day time span what you would ideally be doing. it is not always possible to get a job that perfectly matches what you have in mind. Observe the people in the occupation and see the personality characteristics of typical people working in it. require extroverts and you should be able to match your personality with what you observe. training or experience needed for the occupation. Restaurants: Very Important Moderately Important Not Important Time Alone: Very Important Moderately Important Not Important Active Member in Community: Very Important Moderately Important Not Important Access to Education: Very Important Moderately Important Not Important Live Near Place of Work: Very Important Moderately Important Not Important Work Only for Money: Very Important Moderately Important Not Important Once you have answered the questions above. Make an informational interview questionnaire and talk to people in the occupation. the weather. co-workers. The normal methods of entry into the occupation will be found in newspapers and magazines. leisure activities. and abilities required for the occupation and fill in the gaps where you do not have such skills. Are you up to facing these? Find out about future prospects and outlook for the occupation. Assess whether you like the working conditions: some jobs may require odd hours of duty or frequent travel. Find out about the major duties and responsibilities involved. lifestyle. Meet professionals Now start finding out about your occupational prospects. for example. such as typing or computer knowledge. Use as much detail as possible in your fantasy. etc. responsibilities.

chances are that you will not be able to get honest answers. Once an assessment is made. We have to be made of sterner stuff. for example. For the top students it is the fear of losing one's position by a few marks. But the tragedy is that nobody understands that. it is not being able to get enough no matter how much effort is put in. If you do not know a person. The uncertainties of the examination system seem to make it so . Thus. people find themselves in jobs in which they have no interest in. Very often. Each brings us to the end of the world. values. it is necessary to know someone for honest answes. the model helps you assess the skills needed to work in certain careers. the Survival Kit. If you want to do management. while for those lower down. Matching skills with requirements The basic idea of the above model is to match one's skills with what is required for the job. The model is not perfect. and interests are necessary or to succeed and advance in this occupation/organisation? k) What are the major frustrations. No. This will also help in selecting the kind of industry that you want to work in. or background is required entrance into this field of work? i) What is the guiding philosophy of the organisation? j) What personal traits. it is advisable to take up jobs so that one acquires confidence and also knowledge about the industry.g) What essential abilities are needed to do your job well? h) What preparation. The canvas of a student's life is filled with daily risks and uncertainties. ARE YOU READY FOR THE WORLD? Who said that being a young person was an easy task? We know it isn't. At the same time. What we need is a survival kit. training. A person who has been involved in books all his life. Here it is. It takes you through a maze of common problems and suggests solutions that will help you become a winner. annoyances. then. almost. we should not end up on a rope attached to a ceiling fan just because we can't cope up. but gives invaluable pointers about one's personality and indicates how to choose a career. or sources of in the occupation/organisation? l) How much time do you spend at work? Meeting professionals helps a lot and clarifies many doubts in one's mind. However. Cracking tests Usually. this is not done. It is to avoid this kind of a thing that building inventory helps. containing essential tools designed to make you a better person. education. something that tells us the kind of persons we should be and what we should be doing to succeed in life. well. is suddenly asked to deal with customers or a person who has been an extrovert may find himself in a banking job where all he has to do is keep ledgers. one will be better able to know one's personality and choose a career accordingly. the foremost problem faced by youngsters is related to studies.

seek opportunities to make presentations and speeches. "I live in a city but I was not educated in a convent school. almost as if people are trying to justify their weaknesses. cometimes even better than those who consider themselves better off. This way. end up being looked down upon. Do not accept what the teacher is saying. says one. Becoming confident and speaking in public is often the insurmountable part. so others are better. we will discover that only a few of them were from large cities or educated in convents. Take a break after each. Studying at home. Feeling sleepy in class is a common feeling. Just two hours in the morning will be better than four hours at night. Play games. In most careers. How to stay awake. Asking questions or taking notes is a way to keep awake. The inability to speak coherently or being shy will thus be a major drawback. turning their fears into reality. Another person will say. In college. Try to make points which need explanation. It is an accepted fact that the human mind cannot concentrate for long periods. Revise the topic at home on the same day and mark your book with simple explanations which you will otherwise forget. He was neither educated in convents nor did he live in big cities. the walls are imaginary. but keep debating in your mind. but it is always better to have somebody explain things rather than reading a book later on. thus. There are some students who take part in college debates and declamations. Shy people often have a negative self-image and may feel that other people may make fun of them. while the majority of students either do not get an opportunity or are unable to get over their shyness. Naraynan. especially because these skills are not taught in schools or colleges." This goes on. even though nobody has enough time to think about others. Shy people may. Divide the chapters you want to cover and allot dates for each. One is beset by selfdoubts and every small failure appears magnified. That's because one can concentrate better in the morning. Work to a schedule. People from small towns or government schools often do quite well for themselves. Many students study into the night. It is better to break up your study plan into 45 minute intervals. Most people . Bunking classes may be a fashion. Take part in outdoor activities.impossible to excel. Wake up early. Always have a time plan for working. When we analyse the backgrounds of successful people. Volunteer for any group activity taking place in the neighbourhood. Here are some ways by which our efforts can be better rewarded: Always attend classes. This leads to a feeling of being let down. The tensions of life The pressures of studies and inter-personal interaction usually results in tension. team work is required. Needless to say. What matters is the quality of our concentration. you can cover more than working without a plan.R. Take the example of the President of India Mr K. That is how confidence is acquired. Very often we create our own limitations. Take notes. The self-inflicted thoughts prevent people from being normal and the impression they project is one of being snooty and arrogant. Studying for five hours continuously would yield less result than putting in 5 intervals of 45 minutes each. The way to overcome this niggardly feeling is startlingly simple: take control and volunteer for everything. but it is more efficient to put the same effort in the morning. "I live in a small town and people living in cities are better than me". Overcoming shyness Studies are just one aspect to succeed in life.

Can you blame a young person from getting confused? It is common to come across complaints from youngsters that they do not have a steady girlfriend or boyfriend and are considered backward by their peers. the media is relentless in projecting images of young people going around with someone of the opposite sex: the staple diet of films is a boy-girl relationship. it is an opportunity to have sixty friends. With an estimated 6. fatigue and suicidal leanings.5 per cent of adult Indians suffering from depression. Collecting stamps. Is it advisable to give up your freedom? Needless to say. Yet. Friends of the opposite sex are all right and one enjoys their company in a group. One wants to be noticed and make friends. It may be marked by incapacity of work. Real or clinical depression is a more serious thing. it may not be as rare as we might expect. Youngsters can develop hobbies for pleasure and profit.are able to bounce back and recover after a little while. Remember that watching television for long hours is not a hobby. it seems that everything must be used to attract the opposite sex. of course. Contrary to popular feeling. In every college. A hobby can drive away depression. At the same time. A romantic involvement is never without its costs. enrol at the local radio or television station for becoming a presenter. Are you up to handling a pregnancy during college? The smart person. A hobby will add to your knowledge as also the kind of person you are. even though the number of activities have increased over the years. Statistics show an increase of teenage pregnancies all over the country. Self-doubts are natural to a great extent and parents. In some cases. or know of someone who is thus inclined. gardening. youngsters seem to have fewer hobbies. reading. operating a ham radio. Why do you want to reject all those wonderful people and get limited to the friendship of just one person? Often. providing opportunities to interact with many people. should ensure that they are not overbearing. there is always a small group of Westernised students who seem to have no inhibitions or parental restriction. Soap. For its part. Of course. pointing to the mess that young people are making of their lives. does not get involved. giving an inferiority complex to the others. keep you sane and give hours of pleasure. your self-confidence will undoubtedly improve. It results from disturbances in the brain's neuro-chemistry and is a crippling disease. thoughts of failure and death. if you are taking part in some activities as a hobby. use the term to describe boredom or restlessness. but for the attention they may help in getting. these depend on the kind of facilities available in your town. friends and teachers will go out of the way to help you. it would mean moulding oneself to the whims and fancies of that one person. on the other hand. This is a healthy relationship which will add to your confidence. Let us pause and think whether this complex is justified and how it can be tackled. Affluent young people. Moreover. interior decoration. while being supportive. toothpaste or talcum powder is not to be used for personal hygiene. fashion designing and writing are some of the common hobbies. it may lead to depression. A school or a college are preparatory stages. it is important to have your head firmly on your shoulders and not get carried away by . Dealing with the opposite sex As one grows. If you have negative feelings. an involvement at a young stage would also mean saying goodbye to your dreams of making a professional career. If there are sixty people in your class. You will lose out on many friends and experiences if you are stuck on television. one begins to become aware of the opposite sex. confide in someone you know. Some of the more exotic hobbies could be to fly gliders. For example. intimacy with one person may also result in something more serious as a sexual relationship. Being part of a group is enjoyable. while in advertisements.

which were used to exploit them. from being teased by unknown people to being touched in crowded places. If you want to fall in love. The sad fact is that roadside males think that every modern girl is fair game. girls do not press charges because of shame and the culprits are usually acquitted. Yes. Dress in a traditional manner. The atmosphere in the country has been vitiated to a very great extent that most girls face a tough time just doing simple tasks. this has taken serious turns: rejected males have thrown acid at girls or tried to harm them in other ways. but what happens to your life is none of their business. Make sure that you have evaluated all the consequences before committing yourself. or on anything else you wish. The dangers are many. like getting you tickets for a movie. the more difficulties you are likely to face. Outdated laws in India encourage males to take liberties. If you do feel strongly about a person. wait till you start earning. The more beautiful you are. remember it is a con-game: an entire industry of gifts and cards rests on making you fall in love. Beware of confidence tricksters. Refuse politely and go home. Do not go to unknown beauty parlours or restaurants. it is becoming increasingly difficult to survive as a girl in modern India. . even if it is harmless eve-teasing you are confronted with. Avoid unknown places. however. Crimes against girls continue because they are too ashamed to speak out. There will be plenty of time to romance and to find out whether the feelings are mutual. The manufacturers will no doubt succeed in selling their products. The latest scandal was exposed in Kerala where girls going to an ice cream parlour were drugged and their photographs taken. does not mean that you have to stand for hours before a mirror trying to perfect your hairstyle. Of course. you can dress as exotically you want when you are with known people. People usually do not pay attention to such things. thus. Appearance Your appearance speaks the world about you. need a special survial kit which includes the confidence of dealing with unwanted attention. People will try to win your confidence by many ways.peer pressure or media images. friends or teachers. What is the harm of appearing backward if only to avoid unwanted attention? Of course. Confide in parents. ask yourself the question whether you want to be conned by images designed by marketing experts. even with friends. try to be with friends. If you have to take the public transport. Cases of rape and sexual exploitation are common. One must develop the ability to say no politely. A girl in a group is less vulnerable to advances than being alone. But the following tips will help: Move around in a group. Such scandals have been reported in the most unlikely of places. The next time you see a commercial on television where young couples are close to each other. it is not advisable to fight with everyone. we all want to appear modern. Girls. Ask your friends to accompany you on errands. In extreme cases. They will make comments and try to come close. Surviving as a girl Whatever one may say about advancement of women in all spheres of life. Take control of the situation and confide. a scandal erupts which makes one wonder whether girls are really equal at all. Stick only to places most frequented by students. That. Blame it on the media which projects the image that every girl wants fun. Every once in a while.

Use summer vacations to help out in an office. since these are not signs of smartness. On the contrary. It is good to use a de-odorant in summers. Sporting a ponytail or wearing earrings are best left to television presenters. aggressive and competitive. Boys are well advised to shave everyday: a beard or a three-day old stubble gives an unclean impression. pick up some jeans and smart Tshirts. your appearance will be paramount. Moreover. The formal look. but do avoid garish prints. For everyday wear. This does not mean that one can be sloppy. Regular haircuts give a well-groomed look. Colours can be used to advantage. This is essential baggage to succeed in the long run. of course. People appreciate you for your nature and the kind of person you are. For everyday wear. It will also help you decide which career to take up later. make sure you have some ties. they are ambitious. after all. Of course if you want to be a model or beauty queen. Avoid all other cosmetics. Girls too need some dresses to be worn on special occasions. Long hair is unnecessary baggage which turns off the people dealing with you. but the fact is that you can have as many friends as you want with your manners and attitude than by spending a fortune on looking good. is achieved by wearing a plain suit. The spin-off is that one can afford a number of things with one's earnings. The idea is not to spend too much time on one's appearance because there are more important things to life. Instead of being aggressive. since there is nobody who has everything. Today's smart person is a team player. of getting rich no matter what the methods. One can. Wear clean clothes. sell something useless only once. As for make-up. manners and politeness. In the real world. Leave the fancy things to those who want to enter beauty contests. Forget all those bold clothes made by fashion designers unless you want to make a fool of yourself. whatever that means and doing one's own thing. suits and jeans are advisable. There is no point spending more time and money in trying to look good. If less fortunate people have made it big. Modern sales institutes teach the importance of "selling a comb to a bald man" without realising that it will erode the credibility of the salesman. what really stops us. young people will do well to acquire grace. It is important to maintain composure even if things go wrong. As compared to youngsters of the past. Yes. There are a number of wrong notions that are being circulated. required for jobs and interviews. The idea is to use these advantages constructively. who have our lives in front of us? WHAT IS PROFESSIONALISM? . if we give ourselves a chance. That effect is usually obtained by looking clean. they probably have more confidence and are much more aware. A girl can usually obtain a decent effect in clothes on her own. This will help you gain confidence in dealing with people and learn manners so essentially required in the modern world. confident about oneself. The hair must be trimmed to give a well groomed look. it is doubtful that you have friends because of the way you look. a light lipstick is all you need.What matters is whether you are presentable or not. showing needless aggression is quite another. One way of getting ready for life is to take up part-time jobs. bluffing works for but a short while. who are young and educated. wellmannered youngsters will be appreciated and are likely to go far. For formal occasions. Today's young person This brings us to the kind of persons we should strive to be. Being confident is one thing. of getting an attitude. We can be achievers too. including the need to be pushing. without depending on others. Have your eyebrows shaped and get rid of facial hair. We have to stop feeling sorry for ourselves.

One is something that is related to a job or profession. or those who may have bribed their way through. Yet. To be a professional. Clearly. . or finishing the task at hand with the least amount of effort. does she ask you to wait or does she get up and solve your problem with a smiling face? In a company. Take the example of Sachin Tendulkar. Most of us are content in 'making do'. While being professional may be a virtue. It means being true to your chosen profession and trying to excel in any job assigned to you. There are so many cricketers but when we think of a professional cricketer. this is the name that comes to our mind. The second implication. is more difficult. Simply doing a job over and over again does not make us a professional.Everyone wants to become a "professional" these days or to work in a professionally managed organisation. We are not interested in putting our best effort because we think that the job is too small or too meaningless or that nobody is going to appreciate it. If only we put our foot down and say that this behaviour will not go on. we become professionals of some sort. Yet. After all. or those who know someone in management. Often. but to do it well as if our heart was in it ah. The principles of efficient working require that we choose a person who is qualified for the job and not go by other considerations. Can we become a Sachin Tendulkar in our chosen field? Or are we content in just finishing what is at hand? Pitfalls in professionalism Being a professional means more than simply acquiring a degree. how many meritorious candidates get selected? Going by the number of cases that are filed regarding selections for jobs it seems that people are hired for belonging to certain castes or communities. If you are typing a letter and make a mistake. implies that a person is good in his job and can be depended upon. if you ask a receptionist some directions. we have to pay for this unprofessional behaviour in terms of short circuits and fires. no matter what their qualifications are. however. Look at the electricity wires that are hanging from poles: someone left them because he thought that hanging wires are not a problem. Many people still think that one can become a professional simply by acquiring a degree and many companies have the mistaken belief that they can claim to be professional by hiring a certain number of MBAs and CAs. The other means well-trained. In the public sector or in the government we find people who have been working at a job for years without contributing a thing to the nation. what exactly is implied by being a professional is often found lacking in individuals and companies. some family owned companies have higher professional standards than our so-called professionally managed companies. That certainly is neither right nor is it professional. it is easy to make out a job that is done with love than one which is done without it. people will be forced to do their job as they should be doing. or a person who is good at one's work. therefore. there are two which are connected with the way we work. If we do anything over and over again in our lives. do you scratch out the word and type another one on it or do you make an effort to retype the letter? In a hotel. They certainly cannot be called professionals. The other common mistake that we make is to follow the national malaise called the chalta hai attitude. Among the meanings of the word 'professional' in the dictionary. Almost everything can be reduced by taking the easy way out. tying up the wires takes a little more effort but can make the difference between life and death. there lies the catch. is your complaint attended to without delay or are you asked to write an application after which nothing happens? These are simple instances of professional and non-professional behaviour. It is easy to do a job. it is easy to be a professional in the first sense. Take the example of hiring someone for a job. Sometimes it means simply doing what is right. In fact.

How to be professional How does one become professional? If we break up our tasks no matter what our area of work. we may discover that many of us are not professional at all. Communication: How we communicate also shows how professional we are. and so on. that makes a lot of difference. even while claiming to be so. no matter how many professionally qualified people it employs. we are not professional. Doing what is right: A company which does not treat its workers well can hardly be called professional. Doing our job: Finally. accepting orders from above which may or may not be right. professional behaviour demands a certain amount of planning so that overruns are avoided and the work proceeds smoothly. To a sick person. companies which do not pay taxes or fail to take note of their social responsibility are unprofessional. Professionalism is an attitude towards our work rather than anything else and it has to be acquired over a period of time. Do we take care to explain something to our customers. INTERVIEWS: WHAT DO THEY LOOK FOR? . without depending on anyone else. It is usually believed that family owned businesses are not professional enough but. How many of us make plans in our everyday lives? How many companies take planning seriously? Does our government take the Planning Commission seriously? If we answer these questions. no matter how many degrees we may have. most of us want to be 'yes-men'. But professionalism demands that all mistakes are removed by the person himself. The moment we do something which we believe is wrong. however minute they may be. Usually. It also means keeping an eye for details. our attitude gets reflected in the job that we do. subordinates or superiors? A doctor who explains a point to a worried patient is much better than one who simply writes out a prescription. but one reduces worry while the other causes unnecessary tension. Unfortunately. Companies which had diversified without taking into account ground realities have come to grief: a pharmaceutical company which entered the cosmetics industry. but only to come to grief. some family owned businesses are more professional when compared to those which are managed by qualified people. Multinational companies too made this mistake and entered the country thinking that they could sell overpriced products to our huge middle class. ironically. It is also the only way to survive in today's world. When we look around ourselves. These are some of the things that we can follow for achieving the elusive professionalism in our life. we can probably come to the following sub-tasks: Planning: Whether it is an operation conducted by a doctor or a project executed by an engineer. Decision making: The way we make our decisions also shows how professional we are. we go by our whims and intuition and fail to analyse the situation. The end result of both doctors is the same. Does it reflect our care and ability? Or are we content in doing a half-baked job hoping that someone else will correct our mistakes? A journalist can give a story full of mistakes and these will no doubt be corrected at the proofing stage. we find the consequences of such decisions. an engineering company which diversified into shipping. Similarly. There were few buyers for their products showing that their decisions had been made out of wishful thinking rather than scientific principles.

the interviewers have to try for all the essential parameters of a good communicator viz. more often than not. The art of communication is the hub of successful and result-oriented human relations. Experience has shown that this strategy works quite satisfactorily in all types of interviews.Interview. especially when confronting with hard situations. The interview Board. Another sought-after trait is candidate's ability to communicatenot only his ability to express. It can be meeting with a candidate to ascertain. To be receptive and considerate to the aspirations and expectation of colleagues is the need of the time. in the face of taking decisions. for it spends its resources on the new incumbent with an eye for good returns. his performance itself is a perennial source of inspiration to him. whereunder ratings are accorded for different personality traits. The candidate. is also a prerequisite to be searched and found out by the interviewers. a source of fulfilment and pleasure. since assessing a candidate on each and every attribute infallibly is neither possible nor feasible for the interviewers. As a matter-of-fact. Self-acceptance of the past failures. to obviate repetition of the entire gamut of the selection procedure. For this purpose. Not only that. He must have a clear vision of himself and of the assignments required to be accomplished. rather there are chances of faltering. in the case of selections for senior positions. by the candidate will prove an asset. as is generally mixed up. to impart benefits to the organisation. by questioning and discussion. defines Webster's Dictionary. The Selection Board therefore. therefore. in the near future. To find the ideal candidate for any post is not possible. a qualification. an exhaustive but practical one. The candidate should be able to 'look within' as Christ has said. ought to have the needed potential and keenness for the purpose of being developed into a better one. and a robust antidote to (counter) the stress. letters suitability for a post. to pick the best of the available candidates. and on. has to bring out the best and the worst in the candidates and then arrive at conclusions. nor it is easy to define the concept completely in the context of the metamorphosing managerial and administrative values. in the allotted time. ability to listen and the art of a rational persuasiveness in arriving at the right decisions and passing on the instructions germane thereto to achieve the results. is a formal discussion. especially one in which an employer assesses a job applicant. Often for the purpose. The process constitutes an important part of the recruitment procedure. the ability to inspire confidence among the staff. This holds good. prima facie. directiveness in the needed side for the needed purpose. It will speak of his frankness and will inculcate value ethics in managementa compelling need of the hour the world over. of organisations. 'A formal consultation usually to evaluate qualifications (as of a prospective student or employee)'. both in his personal and official life. logical flow of thoughts. looks for such a possibility and potential in the prospective candidate. on a common-sense basis. The undermentioned can be the tentative parameters for the Board to look for its picks. The best course left to the Board is. . according to Collins Concise English Dictionary. while inter-acting with them. most subjectively. The art of interviewing forms the very basis of the utmost input requirement. not necessarily in the same order or weightage. for they may vary from post to post and from organisation to organisation. the Board evolves a check-list. in the form of humans. depending upon their needs. if any. maturity in expression and communication.

Some Frequently asked Questions in Selection Interviews Tell us about yourself. Carry your certificates in a file. such a policy plank is more needed when the interview is for the selection of a specialist. . with equanimity. temperament can always sway away one's decisions to an un-wanted level of human relations. Questions about your habits. trendy clothes and casuals such as jeans. to exercise self-check in all situations that he will face in his would. self-management. Developing confidence is a long-term process. Boys should make sure they are shaved while girls can apply a light make-up. This will help him give balanced answers to the satisfaction of the interviewers. Be on time: Err on the side or caution. Well groomed hair. If that is not possible. allow yourself adequate time to find the place or unforeseen circumstances such as traffic jams. If you are early. polished shoes are some essentials. Especially.The candidate should evince an abiding interest in updating his knowledge to qualify for being selected by the Board. backedup. by firmness of action. rather is required. Why do you want to do this course/job? Where do you see yourself five years from now? Who is your role model and why?] What do you think about the current economic/political situation? What are your hobbies? What are your strengths and weaknesses? If you are not taken. On part of the candidate. likes and dislikes. If not checked. authority and responsibility. This will prepare you for the interview. what will you do? Questions about your background and academic record. Dress formally: Be neat. nevertheless. together with courage and conviction. Make it a point to discuss issues with family and friends. or hope to say anything that comes to your mind at the moment. praise and criticism. Take a bus to the destination a few days before the final day. First Impressions Prepare for the interview: Do not leave preparation for the interview for the last stage. which may turn out to be a point of no-return. Make it a habit to read extensively. the deepest mental posture. And overzealousness in conduct may also jeopardise the chances of being selected. success and failure. cleanliness. even if provoked during the course of interview by the Board members. with the best available of the lot: the near-ideal. but not the ideal. Formal dress should be worn: keep a suit away for special occasions and do not wear your everyday clothes for the interview. He is to be assessed on his ability to shoulder both. Avoid jewellery. A stiff and artificial stance will never be appreciated by the Board. The interviewers end up. Both depth and breadth of the candidate's knowledge are indicators to his intellectual seasoning. do not go directly to the office but to a nearby restaurant and have something to eat. shedding of false egos are the time-tested recipes for successful managers. is sure to carry the day. organisation. The candidate is expected.

Avoid controversy: Always stick to the subject. admit it. Do not be funny. Please sit down. Will they go down further in the final year? M2: Didn't you want to try for IAS? Since your father is a bureaucrat. I am not interested in IAS. I feel that a career in management will offer higher growth which depends on individual performance. Stay calm. My sister became a doctor because she wanted to be one. . Do not ramble or use long-winded examples.Com and fortunately I could get good marks. too. M1: You seem nervous. "Good morning. I do not want a comfortable job but one in which I can prove myself. sir. without giving opinions. sirs. though one can be witty. M1: Your second year marks are less than first year. My father has never pressed us to do IAS but has given us the freedom to choose our career. sir". My father is in the IAS and I have an elder sister who is a doctor. Tricky situations: If you are nervous. Look in the interviewer's eye while answering questions. Regarding my marks. you could have followed in his footsteps. M3: Why are you not interested in IAS? C: I did not want to be a bureaucrat where you have the authority no doubt. Listening will help you realise what the interviewer wants. sir. but you are still stuck in a groove. I'll be comfortable. keep a pleasant outlook. That is why I did my B. Would you like to have a drink? C: No thank you sir. "I don't know. My schooling was in Shimla. M1: Tell us something about yourself. Do not sit down until asked. My name is Varun. one cannot anticipate all questions so be ready for some surprises.When you enter: Greet the interviewer by saying. say. do not contradict the interviewer even if he is wrong." Listen carefully: Pause before answering a question to gather your thoughts. Do not be critical of your insitute or past employer. during the second year I had to miss classes because I was unwell for a while. this year I have put in a lot of effort and I am confident of covering up. If you do not know a particular question. MOCK Interview Candidate : Good afternoon. even if provoked. C: Yes. Do not be over-friendly. I will take up the second question first. C: Let me answer one question at a time. C: Thank you sir. Sit straight and do not fold your arms. Be pleasant: Keep a cheerful disposition. I was always interested in a career in management. Member1 : Good afternoon. Of course.Com and I am waiting for the results of the final year. sir. However. I have done my B.

Management. I used to organise many events in school and college. The elections gave no majority to any single party so each party is looking for coalitions. sir. what will you do if we do not take you? C: I am quite confident that you will take me. The previous government kept inflation down by artificial methods which is bound to increase now. We have seen coalition governments in the past and they never seem to work. he should have leadership qualities too since he has to manage people and lead by example. I am sure to get admission in one at least. M3: Which of these qualities do you have? C: I have good organising capabilities. there is the problem about the economy. But to cover my risks I have applied to a few other institutes too and fortunately have got interview calls from them. I feel. M3: What do you understand by management? C: There are many definitions. At present the main problem faced by the country is that of instability. Tell us. M1: What are the problems that India faces? C: India is a large country and has many problems. I am also good at planning and since my friends used to like working with me. M3: Don't you think the country has social problems? . M2: So you have all the qualities of being a good manager. Debt has also reached huge proportions which has to be brought down. M2: Where did you learn all this? C: I have not learnt this. C: I feel that Chartered Accountant is limited to finance and accounts. M3: What do you think are the qualities that a manager should possess? C: I think that a manager should have planning and organising skills. M3: Why. Above all. But I applied to other institutes just to cover my risks. I can say that I have leadership qualities too.Com has given me an understanding of accounts but I would not like to make it into a career. sir. Some of it I have studied in B.M1: Why only MBA? After B. sir. I would like to do something more than that. were you not confident that you will get through here? C: I am confident. Secondly. is more exciting and one can do much more compared to CA which is limited to one area.Com you can become a Chartered Accountant and prove yourself. He should be hard working and honest. I did not want to waste an year just in case I missed one institute. sir. My background of B.Com and then I have just gathered my thoughts. I have also read about the examples of successful managers who are featured in business magazines and formed my opinion. As I am keen to do MBA. But the simplest one is that it is the art of getting work done from other people.

Whenever I have spare time I try to catch unknown stations and send them reception reports. In fact. . They want to know whether people are actually receiving the broadcast or not. They send an acknowledgement card. He had played the caste card merely to survive. In fact. There are social problems there too. as V. sir. There is also the problem of female infanticide as people want to have male children only. An unstable government will be more concerned about its own survival. Fortunately we have the example of the West before us. M3: Which games do you play? C: I play cricket. But the best is if your views are aired by an international radio station. besides those of environment degradation. with disastrous consequences. M2: Can these problems be removed through stability and economic methods? C: They may not be removed totally. certainly our problems can be solved to a great extent by economic growth. M3: So what you are saying is that we should get rid of our problems through economic growth and import a new set of problems. C: No. There is the problem of dowry. Illiteracy. If that is true. It is not necessary that we should commit the same mistakes. M2: That's an unusual hobby. Another hobby I have is DX-ing. We can have economic growth combined with traditional knowledge so that we do not get the problems of the West. It is a good way of knowing the world and increase one's knowledge. there are many social problems we face.C: Yes. People will have more opportunities and can increase their incomes. besides participating in discussions and even learning a foreign language. called a QSL card.P. Secondly economic growth can certainly solve our problems of poverty and unemployment. cassettes and books. sir. M3: But don't you think that economic growth brings in its own problems? There are many problems in the West which has seen some of the highest growth rates. sir. C: There are indeed problems which affluence brings. There is also a very real danger that an unstable government may take the country backwards. as was claimed by the previous government. poverty has already come down since the country took up the economic reforms programme. poverty and population growth are some of the other problems. sir. Tell us more about it. These days I get less time but I play whenever I have time. C: Almost all countries broadcast on shortwave. which leads to torture and harassment and even to bride-burning. Singh had done during his time. but a stable government will certainly have the time to address these issues. This is going to skew the sex ratio in the country. They often send gifts to regular listeners. They send T-shirts. which is tracking radio stations of distant countries. M2: What are your hobbies? C: I like to play games and read books. M2: Have you ever got gifts from them? C: Several times.

If I took the seat that would make me selfish. But I really cannot help it. I am sure to get admission this year.M2: What was your favourite subject in school? C: I liked practically all the subjects that we had. M3: Who wrote Gone With the Wind? C: Margaret Mitchell. M1: Do you have any weaknesses? C: Yes. I will keep up this habit even when I graduate. The book was a bestseller and thus became very famous. one can keep up the habit of reading. M1: Supposing we had only one seat. sir. M1: Even if it means that you do not get admission? C: Yes. what would you decide? C: That is really a tough choice. It is also a study in human character. Should we take you or your best friend? C: Ideally. I would ask you to take my friend. M1: Has any of your friends also applied here? C: Yes. I think you should take both of us. I believe that whatever is done should be done well. I think everyone has certain weaknesses. Even successful managers read a lot. especially since it had those moving speeches. M2: Did you not think of doing something which would help you retain touch with reading. since you like it so much? C: In whatever profession one is in. I liked Julius Caesar very much. M1: But if we left the choice to you. It would be ideal if my friend also got it. M1: Well thank you. C: We studied Julius Caesar and Twelfth Night. Friendship means rising above selfishness. which sometimes creates problems. sir. One of my best friends has also got a call. but my favourite was English. But if you left it to me. I think these books help you to understand human nature. you are the best judge to decide. I think I am a perfectionist. But if there is only one seat. sir. M2: You must have had Shakespeare in school. sir. . Varun. I loved to read the books prescribed and also borrow from the library. M3: Why did the book become very famous? C: It was made into a highly successful film which is still regarded as a classic.

On the whole. salaries for summer jobs are not as great. Many young people are confused about which careers to follow. give you some experience to add on your bio-data. He is well prepared and was not trapped in the cross-questioning. you can take a chance and mention it. It would be worthwhile to take up a summer job which will help you earn money and acquire confidence. Bored students often ask. Perhaps. Note that he was well-prepared about the problems faced by the country. He also can define management in a concise way. the candidate comes across as mature. If you can't do so. There are no hard and fast rules about this. but the job should be looked at more for experience than for money. and above all. The summer jobs is an ideal way to get to know yourself. one can earn enough to buy a music system that one . It will result in a much needed confidence and an exposure to different kinds of work. simply back out and say you are not sure rather than saying something which you cannot defend. The trend always existed in developed nations. others use the time to take up jobs and are able to earn some money. Fortunately the board moved on to hobbies. or follow a useless activity or a computer course. Students abroad can earn enough to buy a second-hand car or a ticket to travel around the world. The answer is to do something useful. The question on whether his friend should be taken is another tricky one. SUMMER JOBS PROVIDE LONG-TERM BENEFITS Holidays are welcome but after some time they begin to look very boring. Note how Varun handled the situation when two questions were asked simultaneously. which shows that he has studied his textbooks well. can you defend it without sounding selfish? The answer to weaknesses was also a satisfactory one. The answers show that he has thought about them and made up his mind. help you realise what kind of career appeals best to you.C: Thank you. The board can well ask why you think so. Varun also declined politely the drink offered to him. We hope that our readers will benefit from this feature and use their summer vacations in a useful manner. One way of knowing oneself is to do a short-term job in your holidays. But he should not have made statements about coalition government. If you say you should be taken. Do you have the answer? Similarly. but if you ask for the drink. This feature answer some commonly asked questions about such jobs and describes how to apply for them. Avoid getting into controversial areas and playing the caste factor certainly is. the student should be well versed with his subjects. Be careful when you say you have good planning or organising capabilities. which will help you earn some pocket money. sir. But if you feel strongly about it and can defend it forcefully. In India. He seems to have thought about his answers. the questions related to applying to other institutes are tricky but Varun answered them well. He could also speak on his reading habit. Analysis Varun was able to defend the questions relating to IAS and Chartered Accountancy well. What should we do? Enjoying or going out can be done for a shosrt while only. In fact. While many students waste their holidays doing nothing. but it is slowly but surely catching up in India as well. Note that Varun had a hobby which was entirely different and he could speak on it. where young people become independent at an early age. chances are that you will not get the time to drink it. as well as what to avoid them.

a person who has done part-time jobs can be spotted easily from among fellow students belonging to the same age group. your bio-data will come in handy. In such a situation. Another way to get summer jobs is through relatives or parents of friends who may be employed in banks and companies. If you look around. getting a two-month summer job is not difficult. you may discover a love for it. after having done a market research assignment. Moreover. before your vacations. It should not be seen merely as a time-pass. So the summer job should be taken seriously and should be done well. the fact that you have done summer jobs will definitely give you an advantage later if you want to go in for an MBA or a professional course. you are bound to learn the art of dressing up and presenting yourself when you work with professionals. Jobs related to getting opinions about certain products or telemarketingselling things over the telephoneare gaining popularity as well. Approach them and leave your bio-data with them. It is common that a clerk or receptionist of an office may have left or taken leave and the office wants someone to fill in for a short time. and the opportunities are great. Usually. the company will like to offer you a full time job once you finish college. you will be able to locate many agencies which habitually take up jobs on behalf of companies. Such jobs are typically test marketing of a particular product. Companies are willing to hire those who have finished school as well as college and university students. So it is important to get on the active list of these agencies. For example. companies do not get involved themselves but farm out the work to specialised agencies. considering the fact that many college graduates have a tough time finding a worthwhile job. Sometimes. That is because there are many activities that companies want to get a feedback on. Often. Summer is the time that many exhibitions and fairs are held.always dreamed of. This is no small advantage. The summer job also helps to build personality. ushers and guides in trade fairs and public relations activities. If you want to take part in trade fairs. Since summer jobs are short-term assignments. meet the organisers of such events in your city. sales and telemarketing. How to get summer jobs Contrary to common belief. summer jobs help in giving a much neededd confidence to a youngster. market research. Certain restaurants require people for short durations to meet the summer rush. Advantage of summer jobs Apart from the obvious advantages of earning pocket money and being busy during holidays. Once you have done a job or two. it is advisable to make contact with such agencies and leave your bio-data so that they can call you later. basic qualifications are not important. This will help you choose the course that you want to do and also decide on your future career. you will realise what kind of personality you have and what you want to do later in life. The only requirement is that the individual fits into the requirements of the job. These could be short-term projects in the fields of sales promotion or search. If you are particularly talented or show promise in the job. Make your intentions known and give them your biio-data. There is the difference in personality that a summer job can make. But this is not all. What to avoid while doing summer jobs . Identify these in your town and approach them as well. the agencies that do this work have a database of students and call them once they get the job from a company. While some companies may advertise for such jobs.

you can not only bid farewell to a happy experience at your job. Instead. jobs of receptionists and of telemarketing are suited well. you will have to go around the city in scorching heat. You can also help make software if you have the capability and are able to get on a project. Who to expect Summer jobs may not be very lucrative. One should be well prepared for such things and not give up when the going gets tough. There will be a certain amount of hard work involved in taking appointments from people and tracking them down. Do not use the phones any more than is absolutely essential. That is a lot of money for a student without any experience. The idea is to assess yourself first and then go about applying for jobs. a summer job is an invaluable experience. Here. The field of computers have opened many opportunities: firms employ data entry operators for short durations. We used to take youngsters for counter jobs. but for freshers it is an ideal way to earn a good amount of money. Never be frivolous at work. do a little cleaning or organising to make the working place a better one. which your employer will certainly not appreciate. we decided not to give them jobs anymore. Employers will appreciate the fact that you have thought about the job you want to do. Also. Once you do that. Of course. then sales and public relations jobs are for you. avoid reading magazines. Remember that the company hires youngsters as they have the advantage of not being permanent employees. Many jobs may be simply boring.000 per month. For them. perhaps you should not take up summer jobs at all. Summer jobs are not given because of any intrinsic quality that you possess. Most agencies pay about Rs 150 per day. It must be remembered that a work-place is not your home. A young person must not carried away and become over-confident. instead of going to them and saying you are willing to do anything. Bigger companies may pay a fixed stipend of Rs 5. you will meet a lot of people. If you are the impatient type or are not an extrovert. If you like to meet people. but may well be thrown out as well. If you are looking for excitement. How to select jobs Which kind of a job should you look for? The first step is to assess what work you enjoy doing. Add to this the fact that the respondent may not be willing to speak at all. says the owner of a fast food restaurant. Whichever job you take up. Your performance is continuoulsy assessed. This is an unfortunate outcome of irresponsible behaviour. In market research too. remember that being a . Often. The world over such restaurants are manned by young people. Many girls want desk jobs. they will come and hang around your office or restaurant. Ultimately. whether it is standing at the counter of a fast food restaurant or to go around collecting the opinions of people. we found that the students were misusing facilities and getting their friends in. Some of the jobs are quite tedious. Fluency is language is helpful. it is good to remember that almost all jobs are tedious and boring to some extent. The second thing to avoid is giving your friends the address of your work place. making your trip a waste.Often. such jobs are best avoided. Holidays and Sundays are not paid for. Even if there are no customers and you have nothing to. one needs to have a pleasing personality and like talking to people in order to make a success of it. But if you are looking at it as a stepping stone to make a successful career. Should this happen. They will also hinder in your work. They are also frustrating sometimes. students take up summer jobs but get disillusioned when they have to go out making sales calls or even when they have to be in an office for eight hours.

Humour is an essential part of psychotherapy treatment given to heart patients. and if a straw can tickle a man. LAUGHTER IS LAPSE FROM GLOOM A melancholy young man (or woman) is a contradiction in terms because youth is the period of spring and spring is the time of joy and high spirits. It is a great opportunity which will help build your future career. It shoule not be seen just a means to earn money but to collect experience. It is now an established scientific fact. When Norman Cousins. So. The hidden advantage is that the company may well take a liking to you and offer you a full time job later on. Clearly. who may just be wasting time during the holidays. and display more anger and hostility. it cannot be denied that summer jobs add a lot to personality. It helps you assess actual work environments and get attuned to what you will be expected to do later in life. “Laughing is important to maintain a healthy heart and reduce the risk of cardiovascular disease”. people with heart disease are less likely to recognize humour or use it to get out of uncomfortable situations. Laughter offsets the impact of mental stress. Do not take it lightly. The summer job should. which is harmful to the heart. says Dr Michael Miller of the university.” According to a study conducted by the University of Maryland Medical Centre. even in positive situations. is related to personality. you cannot dictate terms to the company. Humour therapy is used extensively in yoga and other alternative therapies. Contrarily. John Dryden says. Five minutes of laughter is good enough to rejuvenate the body for 12 hours. It is a process of growing up. he had very little to laugh about! . if you are not preparing for an examination and want to just sit around during your summer vacations. Literary Editor of New York Times.summer employee means that you will probably get a job that no one else in the company wants to do. A person with a “long face” becomes a sad spectacle of society. while watching a mentally stressful one can cause the lining of the blood vessels to narrow and restrict blood flow. thus. consider a summer job seriously. “Laughter is a therapy better than any physician can prescribe. Research has put valid foundation under the promise popularly known as “laugh and last”. It gives an edge over others. which bursts from a smile or a sense of humour. be done with care and devotion. What you get out of it will be great value to you later in life. It is not only a healthful “exertion” but also a badge of a bright personality. The young aspiring to go ahead. Disadvantages apart. This is not a mere assumption. it is an instrument of happiness.” Laughter. need a sense of humour more than anything else for the purpose. Joggers having a hearty laugh early morning in parks is a common sight. nor an abstract philosophy. watching a funny movie has a healthy effect on blood vessel function. found out he had only a slim chance of recovering from a sudden mysterious disease. “It is a good thing to laugh. and go beyoung what is required of you. trying to climb the fallen ladder of life. They generally laugh less. at any rate.

The body is exercised. nerves and heart warm and relaxed. “I like the laughter that opens the lips and the heart. is basically. the students were made to listen to relaxation cassettes and to watch selected camera clips. It is an expression of relief. Crying is sorrowful because it is vain and laughter is joyful as it is relaxing. His laughter therapy included screening motion pictures and sometimes the nurses would read to him out of humour books. Their performance bettered. and the role of positive emotions won him name as it added to his life span. Dr Johnson counts it as one of the pleasures of the mind. Victor Hugo says.” Herbert Spencer was one of the first to stress the massaging effect of laughter. biological harmony and internal order. Especially useful were treasury of American Humour and The Enjoyment of Laughter. heart. a pleasant expenditure of energy released from other activities. Such is the effect that it is called internal massage. Crying. abdomen. Cousins tells of his recovery. A healthful “exertion”. eighty-seven students were asked to solve a difficult mathematics paper. Hundred laughs a day is equivalent of 10 minutes of jogging. release and generally let go of . It does something by doing nothing! A burst of belly-laughter releases body’s natural pain-suppressing agents.” Laughter is essential for restoring physical comfort. It is a momentary lapse from gloom! A good exercise ventilates the lungs and leaves muscles. His work in humour therapy. William Fry has described laughter as a “total body experience” in which muscles. In mirth. brain and digestion participate. like laughing. the body relaxes and is soothed. To study the balming effect of laughter. inspired by the discovery that 10 minutes of genuine belly-laughter had a telling effect and would give him at least two hours of pain-free sleep. Immediately afterwards. arms. it is a help to digestion and the practice of exciting it at dinner table is founded on medical principles. There is a similarity between laughter and crying. In his article in New England Journal of Medicine.Within days his body had degenerated to the point that the had difficulty moving himself. Both relaxation and laughter helped to enhance circulation. A research paper Effects of Laughter and Relaxation describes how laughter is a therapy. but also muscle groups in shoulders. Laughter is a diversion. It may be called “sorrowful tittering”. mind/body medicine. It is not only laughter that can help a person to relax. soothe the sympathetic nervous system and regulate heart rate. It exercises not only the upper torso. an act of respiratory muscles. nerves. and laughter “glad sob”. He believed that laughter serves as a wonderful safety-valve for coping with an “overflow of nerve force” and for discharging “disagreeable muscular motion. diaphragm and legs. relax muscle tension.

One important reason why laughter affects such relaxation for the whole body has to do with the effect of laughter on respiration. acceptance of one’s worth also inspire and enhance relaxation and recreation. German poet and philosopher Goethe has aptly observed. As the name suggests. There is loud laughter. .” Of the latter “He is too immature for his years. not in the arts and graces of living. Laughter commences with a long. ripe. deep breaths. it is discouraged. which signifies a vacant mind and is also branded as bad manners. often inspires ventilation. harmony and order of the human system.” Then you have the “horse laugh” which is equally revealing. it is animal laugh marked by beastly intentions. Although these qualities should come naturally with calendar years. People become “ripe” in years. a combination of deep inhalation and full exhalation. Thus. There is laughter of a child—innocent and captivating. The action of this breathing. perfected. A happy. we are forced to take in and to exhale long. has acquired some semblance of perfection and is ripe in the ways of the world. But the sweetest laughter is that of a woman you love. There is a phrase in English language “to laugh like hyena”. “He is mature for his years. the mature person is fully developed in arts of human relationships. It should be practiced. It is bad manners. It indicates coarseness or brutality of character. TEN STEPS TO MENTAL MATURITY A thin line divides a mature person from an immature person. Smiling. appreciation and fame but also a fabulous fortune. relaxed mind is an ideal environment for biological balance. the latter condemnatory. “Men show their character in nothing more clearly than by what they think laughable. When complimented on his having a sixth sense.” Bob Hope himself is on record on the issue. that of humour. not at them. After laughter. slow.” This ability to laugh at his own self not only brought him love. The hint is obvious—refrain from it. in many cases they do not. You are advised not to laugh loudly in genteel company. We should laugh with people.tension. In a burst of laughter our exhalations are longer than inhalations.” The former is complimentary. rest and release. amusement. Laughing at others means making fun of them. Dictionary meaning helps illustrate it further. is well known. The angularities of personality remain sharp and pointed. They are not rounded off. There is naughty laugh of a teenage girl who is tickled. he quipped. which lent halo to their personality. She named American humourist Bob Hope. A finalist at a beauty contest was asked to name the most important man in the world. Hence. But laughing at our own self is a good quality. Reason? “He makes the world laugh by laughing at himself. hopefulness and joyful feelings. Mature is fully developed. drawn-out-exhalation. He made millions out of it. Some famous and honourable men had this quality. It is said of the former. ”it’s because I do not have the other five.

intervenes in a fight between two men in their forties. and the whole bent of his life is towards helping them. have brought to him a state of good health in which he is confident he will remain. Rather than fear his fellows. daily life and makes the necessary adjustments as far as he. He adheres to basic principle: the wise man knows he is a fool. He is a person of mature judgement. and saves them from stabbing each other is praised. He recognizes that superstitions are a legacy of the past. are the beginning of all knowledge. The mature person is prepared to wait. He will walk where the black cat does with a grin. He is dependent and wants to pampering or throws tantrums. but he knows it. Jesus was a mature person par excellence. He has found that “perfect love casts out fear”. and his sane counsel comes down to us through the ages—“Take no anxious thought for the morrow. The mature person has no leaning to superstitions. say of twenty. The immature person is ignorant of many things. he interests himself in them. But maturity is something more than the mere absence of prejudice. and in Life to know there is no cause for anxiety. He detests the blind mind and the parochial outlook. The mature one is ripe in thinking. He is not goaded or guided by prejudice. He who has acquired maturity seeks to eradicate fear from his life. and doesn’t know it. when ignorance and illogical thinking were the order of the day. Little by little he roots out superstitions connected with his religion. He tries to understand why they behave as they do. himself. Thirteen leaves him unperturbed. His temperate life. The immature are prone to jump to hasty conclusions. The mature person is ignorant of many things. The mature person has no fears for his health. Immaturity is common. Knowledge and sane thinking free him from the foolish fears and restrictions that superstitions lay upon him. Ranbir is in middle life. he ever reminds himself of Socrates’ words: “I don’t know. his good relationships with others. In fact. he has sufficient confidence in himself.” More positively. especially young people. Prejudice means judgement before all the facts are known. An ignorant man thinks he knows all. The fool thinks he is a wise man. plus his refusal to worry. is concerned. ignorance and superstition. he has taken what steps he can to provide for it. He expects his wife to mother him as his own mother had in earlier years. he revels in knocking them for six.” These three words. to suspend judgement until he knows all the facts. His actions and thinking reveal his wide interests and his attempts to scatter his own ignorance. He does not fear for the future. The former is ever seeking to extend the bounds of his knowledge. Logic To?keep himself on logic-path.A young man. which means preconceived notions about persons and things. the mature person is generally found to possess the following qualities: The mature person remembers that there is more than one way of looking . believes Socrates. For the rest. Superstition is the religion of the feeble minds.

Scriptures call mankind to maturity when he laid down Golden Rules. it quickly becomes contaminated with error. “Live and let live!” It realizes that there are few evils that do not contain some good. but it has one advantage—we come out . does not necessarily possess a monopoly of the truth. facts are seen as unpleasant. Hence. he. Maturity. Reliable The mature person is reliable as he is master of his moods. But he has a sense of humour. He is prepared to work for objective—something that may not materialize for years. prejudice and wishful thinking—all are marks of immaturity. keeps a man from being cocksure. and lose with good grace. Where a man has reached maturity of mind. dogmatic. and they are reluctant to come out of it. meek and tolerant. He is like a painter who steps back two feet from his canvas so that he may critically view his own work. This is possible if you turn outwards others than inwards to your own self. Alfred Adler says. Funk-Holes Facing facts is painful. He can be reprimanded without sulking. Does anybody applaud him??He is laughed at for his mental immaturity. He is objective. The other fellow may be right. and when man does attain to some truth. conceited. “Every human being strives for significance but people always make mistakes if they do not see that their whole significance must consist in their contribution to the lives of others. He seldom ridicules others. and a drink on the sly and a dozen other tricks to hoodwink others. Not merely to flatter himself but to improve his work. Is it possible for the average person to take steps to hasten the advent of this desirable state of maturity? The answer is definitely in the affirmative. Neither is he mature if he indulges in envy or petty stabbings and mean revenge. The need for self-deception and to cling to misconception. himself. He takes full responsibility for his actions and does not look for scapegoats. It is because they find life easier in a world of fantasy. He has no place for self-pity. Instead it makes him gentle. Maturity says. Life is harsh and hard. proud. Man has an incredible capacity for self-deception. He possesses ”stickability” and is not easily upset by irritations. He is big enough to do this. He is cheerful because he does not take himself too every question. he is not so preoccupied with himself as to be regardless of the comfort and feelings of others. He is an expert in going to the toilet for a smoke. He puts himself imaginatively in the place of others and reacts accordingly. In any case. He knows that the funniest person in the world can be seen when he looks in his own mirror! No one could call himself mature if he bears grudges or allows hatreds to fester in his mind. even disturbing.” We have all encountered the artful dodger in our life. It is more blessed to give than get. Human beings love to live in a world of make-believe. the particular allegiance of both parties was largely caused by circumstances over which they had no control. then. He looks upon people and tricky situations in a detached manner.

Psychologists have analysed the human mind and labelled its ingredients. 6. Ponder the great. Find out funk-holes. It means freedom from dependence of all sorts. It is not related to years. He says. Master of his moods. master another language sufficiently to get acquainted with some of its great literature. I know of one such friendship where one . You must have a dialogue with your own soul. “Look wide” is the motto you can well adopt if seeking maturity. I know of a young lecturer who seldom goes to his parents. 10. than any other subject. travel. This is one sure way to mental maturity. Meditate on what you read. 9. Do this as much as you can. the trend of events in the world today. 2. Reliable 8. 3. Has a sense of humour. the possibility of survival after death. Prod them out. man’s past and probable future. They also offer advice on how those ingredients can best be used and controlled. Freedom from superstition. Mix with all types of people. It happens in so many relationships that we try our utmost to hold to the object of our affections and succeed in losing it. sublime topics which have engaged the human mind for centuries—the mysteries of birth and death. Freedom from fear. especially history and biography. Freedom from prejudice. Secondly. and maturer.” Another common manifestation of it is seen in the over-possessive wife. Nutshell In a nutshell. Thirdly. Knowledgeable. Vary your experience as much as possible. In the first place. This occurs in intimate friendships too. Travel is a liberal education. There is no point in remaining in mental cocoon. This is because it enables us to understand ourselves and others. read widely. “I love my parents all right but I am really afraid of visiting them as they are very possessive and treat me not as a being but as a piece of their property. psychology fosters the mature outlook.stronger. The young and the immature cannot do this. Mental. 5. They find bubbling up within themselves all kinds of emotions and they are at a loss to recognize or explain them. maturity is: 1. It is most often seen in parents ‘imprisoning’ the children. think deeply. ignorance. 7. LET GO TO HOLD It is paradoxical but true that the ties that bind are the ties that loosen the bonds of human relationship. intellectual growth. If possible. She becomes a virtual jailer and would not allow her husband to move out alone even if his business and prestige suffer. Thinking of others. perhaps. 4. study psychology. More. Listen and watch carefully. Lastly.

the object resents our imposition of emotional and mental slavery.” The head of one of the closest and happiest families I know told me. . If he keeps his palm open. thus damaging the delicate relationship. His parents look upon him as a son par excellence. the bird stays. The loosening allows more room enabling the ‘roots’ to go deeper. I let them feel free. it would have pained me all the more to see them blundering in adult life. The more we try to clutch too tightly. Had I protected them. We forget that mighty oaks cannot grow in tiny flower pots. “I never believed in holding my children by tying them too closely to me. In our desperate attempts to hold we grip too tightly or pull the strings too tightly. “He who knows how to bind uses no cords.” They do not have the courage to overthrow the ‘imperialists’ as years of emotional and mental slavery have drained of all independence from them.friend crippled the other’s independence of action by laying excessive claims on his time and attention. In other words. By loosening our bonds. we are agreeably surprised. the purpose of which is to ‘imprison’ the beloved one to retain a monopoly of his/her affections. The moment he tries to close his fingers. our inflated ego. our easily hurt feelings. A Chinese proverb says. Take the metaphor of a child trying to hold a pet bird in his hand. yet you cannot undo. In our desire to hold another’s affection we tend to overlook the lesson that the closest relationship is sustained and nurtured by loose bonds. the bird feels uneasy. Then. ‘Opening our palms’ requires some mental readjustments. No one likes to be a pale and ineffectual copy of another’s will. The in-securer of the two gets fits of jealousy. But the son laments along with his wife. The stronger we want our relationships to be the greater the necessity of allowing blank spaces which can act as shock absorbers. Life would become easier and free from emotional stabs if we were not to expect much from others. Its acutest form is seen in two people in love. We have to put aside our rights. This is the case with human relationships. “We have no life of our own. This attitude brings relief. the object of our love tries to move away from us as his sense of security and independence are threatened. reassurance.” “I have watched them making mistakes knowing a difficult experience was the best for them. It strengthens our relationship. flutters and flies away. we never lose a relationship. a model of filial duty obedience. when something pleasant happens.” How different from another situation where the son is neither allowed a free hand in the money he earns nor in the time he has. and serenity. We are mere extensions of father and mother.

Our future is not shaped by heredity or environment. “I do not mean to expose my ideas to ingenious ridicule by maintaining that everything happens to every man for the best. didn’t I”? said Rutherford when he was told that he was riding the crest of a wave. destiny can be programmed. But the dynamics of personality open immense possibilities of development.” that cannot be surmounted with scorn. culminating into a musical genius. He is right on the dot. write and to speak. says Cumberland. He could reject them. but I will contend that he who makes the best use of it. learned to read. he mastered his fate. Such as man is escaping his own responsibility and his own role in what he calls “god disposes. He had energy. with rich experience and maturity of outlook is able to programme his own identity. though they play their role. To the former category belong fatalists who are sure that present life is the result of deeds done in the previous one. To this extent. we cower and go under. “There is no fate. Hence.” With courage and confidence and vitality. Destiny is the scapegoat which we make responsible for our failures. In her life she became an inspiration to disabled persons. Beethoven became deaf at the age of twenty-eight.” Balfour Tersely comments. He finds shelter in readymade quotes without examining their real implications. To this extent. Surely. The failure is easily passed on to god. Helen Keller. It is signal mark for those down-and-outs who have chosen to go down the gutter rather than stand up to adversity in their life. . he said: “I will take fate by the throat: it will not wholly overcome me. “Well: I made the wave. defeated and blinded. man has instincts (drives) but these do not have him. Fatalism is the doctrine of fools! The fatalist always looks for the easy way out. one often hears from a fatalist: Man proposes but god disposes. The wheels of mature are not meant to role backwards. The strong sprout and blossom. For example. blaming destiny. there is no escape from the present. It is a deed accomplished by the president of the Immortals! To the latter class fall those who nurse the thought that birth is a matter of chance. There was freedom to choose.YOU CAN PROGRAMME YOUR DESTINY! Can you programme your destiny? Some think that it is beyond human endeavour. desolation and despair.” is a masterpiece of a statement for those who have been reeling under the shattering blows of destiny. Beethoven is an example of what a human being can achieve by his endeavour. Her life was a triumph of human spirit over affliction. enthusiasm and capacity for hard work. Allport observes: the healthy person.” Whenever we face the might of adversity. Others are convinced that it is not only possible but also feasible and desirable. The weaklings go to the seed. In a letter to a friend. fulfils the part of a wise and good man”. it is destiny which is beyond human control.

Inheritance? Twins may build different lives, on the basis of identifical dispositions. Of a pair of identical twins one became a criminal while his brother became a criminologist! “If we take people as they are, we make them worse. We treat them as if they were, what they ought to be; we help them to become what they are capable of becoming,” says Goethe. Destiny means a man’s appointed or ultimate lot or fate. It is not fore-ordained or pre-determined. Man is the architect of his own destiny. I am the master of my fate; I am the captain of my soul. In time good or ill he cannot but inspire and fortify all those who attend to him... What one individual has done another can aspire; the destiny one man has challenged and finally mastered, another has it in his power to confront. As for environment, we know that it does not make man, but everything depends on what man makes of it on his attitude towards it. Man is by no means merely the product of heredity and environment. As Dr V.C. Frankl stresses, there is a third element: decision. “Man ultimately decides for himself; and, in the end, education must be education towards the ability to decide”. You are the master of your fate, the captain of your soul, because you have the power to control your thoughts. Your brains become magnetized with the dominant thoughts you hold in your mind, and by some means, these magnets attract to us the forces, the people, the circumstances of life, which harmonize with the nature of your dominating thoughts. Before you achieve success and realize the top of your ambition, you must magnetize your minds with intense desire for success in the achievement of your goal, and become achievement-conscious until the desires for achievement drive to map out and define plans for acquiring it. If you make dynamic designs in your mind, of how you wish to behave, you will, like an invincible current, pour into the patterns you have created and give yourself a magnetic vigour for the fulfillment of your desires. The will obeys and thought patterns or mental pictures in your mind, and operates as they command. Motives are the forces of your personality. If your dominant motive is the achievement of success, you will programme your destiny accordingly and attract success as a magnet attracts iron filings. Let the master thought “I will succeed” dominate your thinking process. Nothing succeeds like success-thinking and nothing fails like failure-thinking. This is the magic of master thought. Raj Kapoor once said on his success as a film-maker, “I think films. I eat films. I drink films. I dream films.” This is the magic mantra of strong motivation. You are responsible for your own destiny. The responsibility is your job, and the sooner you learn his stark fact, the sooner you will start thinking and acting like a

successful human being. It is up to you to control and shape the forces that make your life. None outside you has the duty to shape them for you. It is you, yourself, who is at the helm and if you do not reach your destination, it is because you did not take full control of resources. The fault lies in you, not in your stars! If you do not shoulder full responsibility, the world will shape your destiny, not according to your needs, potentialities and ideas, but according to its own whims. It has a way of letting those flounder about aimlessly who wait for other men and forces outside themselves to chart the course of their lives for them. If you do not pull your own strings, someone else will! Don’t drift or let anyone else take charge. Do not rely on others to do your part and act for you. Those who float with the stream depending on others to clear the path of whatever is obstructing their passage, or threatening to wreck their life, cannot arrive at their goal. You have to explore channels for yourself and sail your own way through them, in order to bring your ship home. Your destiny is an individual thing and that it is upto your personally to take charge and shape it according to your capacity, need, aspiration and ideals. It cannot be handed over to an assembly-line and come out tailor-made to fit you. It must be designed and hammered out by you alone. If things do not turn out as you wish, you will have no one to blame but yourself. You are your own hope. You must make your own destiny. Never place total reliance to anyone other than yourself when it comes to shaping your own destiny or guiding your own life. “Nothing can bring you success but yourself.” Don’t ever let your strings go. Refuse to be manipulated by others. Don’t be content to be regulated. Take charge of your own life. Be your own helmsman. Paddle your own canoe. Pull your own strings.

Tact is a delicate quality. It is difficult to define and hard to cultivate, but it is indispensable to one who wishes to get on in the world soon and smoothly. Talent is no match for tact. We see its failure everywhere. In the race of life, commonsense has the right of way. The day has gone when a man could boast of his superiority. These are days of cooperation and interdependence. We have fellow-workers. We are all in groups. We

are held up or pulled down by public opinion. We stand by what other people think of us. When we use the word “tact” we do not mean strategy. Do not mean trickiness or deceit. We know that it is bad policy to fool people. As Abraham Lincoln once said, “you can fool all the people some of the time, and some of people all of the time.” Every man is found out sooner or later for what he is. There are sharp eyes watching every man. Hardly ever does a tricky unreliable man make permanent success. By tact we mean commonsense and courtesy as applied to pleasing or influencing of other people. In the upper layer of business life we do not fool people nor lay traps for them. We win them by our manner and by methods which they approve. When sympathy is added to tact, tact is not a mere matter of manner. It is appreciated as mark of sincerity. We have learned much in the pool of hard knocks. Strikes and lockouts and bank and lawsuits and loss of trade have taught us much. Why are we now interested in the art of handling people? For centuries we mishandled them. That is the reason. We are now trying to prevent clashes and conflicts. We are trying to secure goodwill from employees as well as all sections of society. We are trying to reduce friction. We have to appreciate tact as a business-building force, as also as a lubricant of social, personal relationships. We have learned that it is foolish and costly to thrust our dislikes down other people’s throats. We are sure now that our plans are more likely to be carried out if we make people to believe in them. We are learning that a man can win more friends if he does not wear armour and carry a club in his hand. This is to take a kindly interest in the man whom we are going to deal with. This has a magical effect. Just to consider his point of view makes all the difference between failure and success. A tactful man, when he is talking to an employee or a friend, notices the effect of his words. He tries to secure attention. He observes the effect of his words to the man. He realises that his purpose is to influence the man in his favour, not to antagonise him. It is not easy for a busy man, overwhelmed with the burden of his own affairs, to give a cordial greeting to visitors who come to his office. In his heart, he regards them as intruders, trespassing upon his time. But he must take himself in hand and be polite. At least, he must be friendly. It was said of one politician: “The trouble with him is that he does not know how to shake hands.” This is a serious handicap to any one as well as to a politician. Many men spoil an interview by appearing bored or by giving a clumsy, non-cordial greeting to a visitor. To offer a limp hand indifferently to a man is like throwing a splash of cold water on him. The first five seconds of greeting make or mar any meeting. Tact is necessary for every man is interested in himself. There are few exceptions to this rule.Naturally, a man is more interested in himself than in anyone else. To interest him, you must talk first about his affairs, not about your own. No one is ever bored or hostile if you talk to him about himself.

These were PR job .“ the lady is pleased. after a spell of unemployment. Then you may be sure he is interested. Tact is a subtle discrimination of not saying what you are itching to say. as it is on your tongue-tip. Here is one example from my own life. He also carefully watches his body language. It so happened that I got three offers almost simultaneously. If a shop assistant says. the Turks. He became for a time an Arab and won the loyalty of the Arab chiefs to himself. He listens. by being intensely interested in their affairs and by helping them to overcome their enemies. if the man has been wronged. “I know you prefer grey. A memory for names and faces is great help to any man. Say what the situation demands. Questions are always effective. Almost any man will come out of his shell if you ask him his opinion on a subject that concerns him. The aim is not to advise him but to give him an opportunity to unburden his mind. It is tactless to ask a busy man “Do you remember me?” It is very likely that he does not and he is put in an uncomfortable position. he can be given justice. and thus find solutions to his problems. “We have your favourite dish today”. T. and very likely he has lost interest in his earlier inventions. They employ this technique as a powerful self-communication instrument to bring about personality change and improvement. A grievance is like poison and hearing is like a cure. An inventor is interested in what he is trying to invent. Then. It is wise to talk to a man about his problem. there is a magical effect in remembering what they like. The troubled person just talks (to himself) while the psychiatrist records his expression—verbal as well as facial. by listening to the Arab chiefs. Ask him questions until he begins to ask you questions. he will be willing to be shown his error. SELF-COMMUNICATION SOLVES PERSONAL PROBLEMS Psychiatrists have caught up with Socrates and cashed on this technique. A tactful managing director gives a complainant a chance to get it off his chest. whatever it is. Lawrence became the “uncrowned King of Arabia” by learning the Arabic language. That is what he is thinking about. The more tactful way would be to say: “I had the pleasure of seeing you four years ago and I remember quite distinctly what you said to me. by dressing and living like an Arab. And if he has been mistaken.E. He lets the man tell him about the grievance.” We know that in handling people. It prevents us from treating as a stranger a man whom we have been before. It is an effective touch of courtesy to remember the wishes and opinions of others.Talk to a competent man about what he is trying to do. Make him a listener and he thinks you are a bore. I was at cross-roads of my career. to see his own thinking in a new perspective. the customer is pleased. If a waiter says. not what your bile suggests.

Another way of putting it is to say that the listener makes an effort to understand what is said. If you want to find out how it is to listen without making evaluation judgments. When a person in trouble knows that he has a good listener he shares his thoughts fully. it would be necessary for you to achieve the other speaker’s thoughts and feelings so well that you could summarise them for him. This means that before presenting your own point of view. the good listener accepts that is said. I debated the dilemma of job-thinking in my mind for a couple of days. can change your outlook on the world. the differences being reduced. and a lecturer’s job in Panjab University. and opted for the PU job. The listener realises that he is a sounding board. It was self-communication that helped resolve the Haryana government. once you have been able to see the other’s point of view. who listens to you as you struggle with your problems. your own comment will have to be revised. With this opportunity to hear himself speak. Sounds simple. and those differences which remain being of a rational and understandable sort. Few people go to professional psychiatrists with their problems. It can bring about a major personality change. makes no judgements. not about him. Empathic understanding with a person. One person who is truly understanding. You will also find the emotion going out of the discussion. tries to understand it. The talker does not want advice. However. As he talks he finds a solution to his problem himself. In brief. . test this experiment. and above all. which makes it easier to solve his problems. but many take their troubles to friends and some to relatives. but does not give direction. He wants to talk freely so that he can listen to his own thoughts as they are put into words. Why is non-directive listening so difficult to accomplish? The answer lies in the fact that such listening requires a kind of courage that few of us have ever required. a similar job in a Haryana University. is an effective approach. The word refers to the reaction that a listener should present to a talker who is trying to discuss his own problems. he is able to furnish his own advice. let this rule be followed: Each person can speak up for himself only after he has first restated the ideas and feelings of the previous speaker accurately and to the speaker’s satisfaction. The next time you find yourself in a heated discussion with your friend or spouse. The emphatic listening is described as non-directive. but you will discover that it is one of the most difficult things you have ever tried to do. The role of the self can be adequately played by a good listener.

The following point will help in forming non-directive listening. use a series of eloquent and encouraging grunts: Humm. Most of us fight change. or I see. you should restate what has just been said. Though it may seem like a waste of time to you. You must be wrong. when we listen. putting it in the form of a question. Make every mental effort to understand what is said. If the talker pauses. Examples of such restatements might be: You really think life that? Or. An understanding of what happens when a person talks and another listens is found at the foundations of today’s wellness . It depends too much on an attitude that must come from inside the listener. Have faith in the ability of the troubled talker to solve his own problems. we are urged to say. You are witnessing an amazing human phenomenon. If he becomes unreasonable. Put yourself in the talker’s place to understand what he says. Verbal reactions: As the talker proceeds. And you are not going to change my mind. Oh. give him your time.When we listen to another person’s ideas. the person is talking things over with himself. If you do not inject yourself into his conversation. The importance of what lies behind the need for listeners is important. Be attentive: If a verbal avalanche is launched. I won’t allow it. No one can spell out a method by which you can become sympathetic and understanding to another person. The latter must be avoided. let it flow uninterrupted until it is exhausted. and it is a fact that a good listener has little difficulty finding listeners. If by listening you can help him clear his mind. Therefore. Also. Hold on there. we open ourselves up to the possibility that some of our own ideas are wrong. That isn’t the way I think. There is no sure formula for the kind of listening that can help people when they feel the very human desire to be heard. something from inside makes us want to fight the change in our thinking that might be brought about by what we hear. it seldom is. In no case should you give the talker advice—even if he requests for it. Listen: Whenever you sense that someone is troubled or needs to talk. you believe your mother-in-law is trying to ruin your marriage? Probe not: There is a difference between willingness to listen and curiosity designed to dig for hidden information. Uh-huh. Or nod your head. the chances are that the talker will work things out for himself. there may come a time when you need a listener. you should remain silent. it will also help communication between you and the person talking. your purpose is not to obtain unwanted information. until talker starts again. especially when it has to do with altering our own thoughts. Evaluate not: You should refrain from passing moral judgment upon what is said.

now practised more and more widely throughout business and industry. If the listener remains active. in a sense. . Just know and follow the fundamentals. becomes a mirror that throws back a reflection of yourself. It is easy to brush it away as unnecessary framework for achievement. Even in day-to-day living there is a way that you can communicate with yourself but it requires the help of another individual. THREE BIG SECRETS OF SUCCESS J ames Allen says in “As a Man Thinketh”. Aptitude is readiness to learn or natural ability. You can acquire this attitude. a view from inside. the real purpose of interview. a listener. unlikely to happen again. you have to break the hold of the negative. Yes. This attitude leads to achievement. It works wonders in human relationships. you may take the positive line of learning. thoughts from both the conscious and subconscious levels of your brain are put into words. In most job interviews one basic approach is to let the candidate speak about himself. As the plant springs from the seed. uninspiring chore. so every act of man springs from the hidden seeds of thought. It is your attitude that matters. then you solve your own problems. Try to throw the negative out. Just talk to yourself. Alternatively.psychotherapy. Replace it with the positive. he. The listener hears your words but. In the same way. You don’t have to spend enormous money or energy to be yourself. his character being the complete sum of all his thoughts. In effect. Attitude is a collection of opinions hardened into a studied position. what is more important. but silent. You can dismiss success as a fluke. Obviously. It is more important than aptitude in the matter of career advancement. A non-directive counselling. The psychiatrist’s most important tool is listening. It is the therapatic value of communication. As a result you have the opportunity to hear both parts of our brain speaking. giving you a chance to talk freely. and a very good one. Or you may regard it as an opportunity for future and further achievement. Many times this result in self-communication you have been seeking all along. looking on them as proof that you cannot succeed. You can regard the routine study and effort as a boring round of familiar. You cannot achieve anything if you do not have the courage to try. “A Man is literally what he thinks. the right attitude is the positive one. you can take either a positive or negative attitude to your success and failure. If you find such a listener.” What you make of your life and career depends mostly on your mental attitude and not so much on aptitude. you hear yourself talking. This provides a peep into his inner self. depends upon persons trained to listen quietly and objectively. you may invent an alibi that you aimed too high. You can allow failures and setbacks to brake your progress. You cannot cultivate the positive attitude if your mind is dominated by the negative.

a unique person. Lack of concentration means failure to hit the bull’s eye which means waste of energy. They always speak destructively. Do not talk with them about your future plans and programmes. Discipline your mind to ward off distractions. Strengthen your plus points. it means shattering of self-confidence.Assess your abilities. Know your strong as well as weak points. Even the blazing sun cannot burn a hole in a tissuepaper unless its rays are focused and concentrated on one spot! The fact is that you have the spark which can ignite success. use bright. crippling failure to a positive. gaining from the experience of failure. They make you pay a high price for inattention and lack of concentration. Visualise to realise. Visualise the completed task. You have the mental ability that can take you high. Turn your back on back-biting. Keep distance from chronic nags. List the qualities that make you. This helps you reach the desired objective. But more than that. you lack determination to get to a goal. steer clear of discouraging and disparaging. but it is a disgrace failing and not trying again. in your own estimation. Draw attention to the positive. When a person is being painted black. and the nags. They prove millstones round your neck. Drop the chronophages. Try to put in a good word. time and effort. Focus now on a course you had enrolled in but abandoned because you had a wandering mind. Incomplete or badly done tasks give you a let-down. Your desire to get to the goal is not strong enough. If you do not focus your mind. Fill in the deficiencies. See yourself enjoying the privileges and power which follow after you reach your goal. There is nothing bad in failing. Then. thrilling success. what is wrong? What is holding you back? You are using only a fraction of your real brainpower. This will make you feel more positive about yourself. Give yourself another chance. .” Harness imagination to accomplish your goal. The right attitude turns even the worst of negative. Improve your power of concentration by coming to a realisation of the cost of its opposite-inattention. You can believe in success by acting as though you already had this valuable quality. Be like the doctor who says. Watch your words. See yourself finishing it. It is foolish to invite discouragement. Positive mental attitude means refusing to cave in when things go wrong. Concentration is another name of stickability. Concentration means directing the wayward mind into a predetermined stream. Deal with one thing at a time. You do it by assaulting your mind with questions that collect the wayward threats and put them on the main theme. do not join the chorus. “One patient at a time. You cannot concentrate effectively on something trivial or of no significance. your mental attitude must be turned to achievement if you want to achieve. Shut out the irrelevant. optimistic expressions about your own self.

if he or she is constantly giving mixed signals. Many people also cite the companionship of their co-workers as a reason to work. Among them are the needs to feel productive. Wellness For most. A chief is not likely to get the best out of employees. One may be good at expanding but not at handling. In most surveys. Individuals attain social status through their jobs. and failing to define the job to be done. This is partly explained by the high income levels in such professions as medicine and law. But other factors do play their role. delegating responsibilities but not power. depend on the individual and his or her background. That what you think tends to make your life. So does a one-man company. If you are lacking in self-confidence. That since you are masters of your own thought life. expectations and goals.Work People who perform complicated tasks at work. an entrepreneur can be outstanding in spurring a small group to start a successful enterprise but may not be good at handling the complex organisational problems of an expanding organisation. you can transform yourself and brim with supreme confidence. His capability depends on how his or her leadership style fits the work situation involved. These lead to inner wellness. to meet challenges. A poor communicator makes a poor leader. Events then mould the individual into an effective one. earning salary is the primary incentive for having a job. doing well on the job that makes the one feel competent and contended. The effectiveness of a chief may change with circumstances. it is the sense of accomplishment. you have it in your power to change your life from failure to success. Which factors are most important. a successful executive is one who happens to be in the right place at the right time. majority of professionals report enjoying their work. The most revealing trait is whether he tends to give priority to getting a job done or to having good relations with workers. A job can build a sense of competence and self-esteem. Job-oriented chiefs fare better in situations where workers already get along well with one another and the task to be done is clearly defined. YOUR KEY TO CAREER CLIMB: SELF-CONFIDENCE Y ou can learn from many sources that you live in a world of your own making. Instead of satisfaction contributing to greater job accomplishment. Experts now believe that instead of being the right kind of person. When Napoleon said that the word impossible was found only in the dictionary of fools. tend to develop an intellectual flexibility that they carry to other parts of their life and are more independent-minded and open to new experiences than those who perform routine jobs. he was not mouthing a mere platitude. he was giving expression to what goes by the name of splendid . and to be creative. and can choose what you think. A satisfied worker is more productive than one who is not. For example. They also select intellectually activities for their leisure pursuits.

or the job to be done. and compare it with what they actually are in life. If you know. Negativity is the nightmare of many young people. what you are inside. capable. If you get eight-five out of a hundred on an examination. Lack of confidence gets the better of him. The secret of successful living lies in your own vision of yourself. incapable. expecting failure. you feel bad and take a back seat when others talk. This is a question of directing attention properly. you think it is your own fault. Do well for yourself! You are a success when you improve on your own record! When something goes badly. or compensate for actual physical shortcomings. it is true that nothing you ever do will please you. You cannot organise yourself nor give proper perspective to a long-range panoramic view. you have moulded your mind in that frame. They find it difficult to take any lead. This is not a chance. look to your thought life. In other words. you show outside. People with great selfdoubt are simple perfectionists. Try to obscure. It means you have carved your mind accordingly. You worry about being too tall. you worry because it isn’t perfect. He feels foul and chained. If it rained and spoiled a picnic. you will be fifty per cent efficient. you either don’t try at all or begin half-heartedly. Keep your mind on the work itself. It is not the lack of a diploma—it is the inferiority feeling! Here’s another misdirection of attention. A person is locked in himself. Acknowledge the fact that a perfect score every time would make you a museum piece instead of a human being. Let the problem-solving attitude help. He is empty.self-confidence. If you want to be outgoing. It is confidence-shattering. Or you of them. They will find that the two really correspond with each other. Remember that the other fellow is usually just as concerned about the impression he makes on you! You haven’t been to college. and how little you will remember. For example. He is a goner! You feel beaten before you start something new. If you don’t know. capable of bracing career and life. not what others think of you. too thin. instead of brooding over the bad impression you expect to make. Try to put aside the fear and take a chance. confident. This negativity often shows in depressive moods. too short. you think of the fifteen you didn’t get! This is negative. think of the subject under discussion. ‘I have no degree’. often fail and blunder. speak up. You may have big aspiration for success but your efforts and thinking are hedged with ‘ifs’ and ‘buts’. Instead of thinking. Even if you do a job well. They should examine their own mental picture of themselves that they have nursed for years. This is negativism at its best. Break the chain of discouraging defeats which seem to prove your inadequacy. too heavy. unimpressive and unsuccessful. you keep your mind on how hard it is. or university. Change your thinking and stick to it. You often say or do the wrong thing. People who find life unbearable and boring. impressive and successful. “I am good but there is something fake in me. If you give half your energy to your work and half to worry about your work. read up! You think you don’t do as well as your friend. If you are bad. They want too much. Comparison with those who seem more successful leaves you no sense of achievement. . People who feel inferior magnify their own faults.” And he does give up. you would feel responsible and apologetic. When you study a new subject or try to master a new skill. Your confidence is thus crippled. I think I should end it all. Your awkwardness comes from a foregone conclusion that you will be awkward. He naturally has a stalemate in his mind. how long it will take. This attitude invites the failure that is feared. you may be good. Give yourself an opportunity to prove you can achieve reasonable success. or the shape of some feature. plan to be cool and tactful. Otherwise.

answer questions too fast. Put up a mental stop-sign when you estimate people and what they do. The cure is to find suitable expression in real life. Sometimes a critic is trying to make you feel low and make himself feel more secure. Take a few moments every evening to note exactly how inferiority attitudes have caused trouble. feel sorry for him. and greet people with nervous haste. There’s a world of difference between being inferior and feeling inferior. Yet. and it only serves to irritate those he meets. But there is such a thing as poor business conditions over which you have little or no control. If you are not. a person who feels inferior for years often comes to think he is inferior. This lets you know when you say. You cannot be over-ridden. You need a schedule for tackling a big job. you think of the whole thing at once. use that stop-deliberate! sign when with other people. Again. Gradual improvement should cause you to congratulate yourself. People who doubt themselves act as if they thought no one would wait for them to speak. You are acting a wind-bag. No procrastination. do a bad job. Concentrate on one part at a time. Realise that the origin of vanity is in the insecurity feeling itself. You have accepted yourself as an inferior person. and prove again—as you see it—that you are not very good. They lack stability. In real life. puffs himself up or pushes other people down. It will do you good to find that people soon accept your new image of yourself as a person who stands up for his rights. but a relief to see that you can slow down and achieve a feeling of stability. you rarely express resentment and let people impose on you too much. A person who feels inferior. When people criticise you. it makes you feel simply terrible for a long time. run everything down. and do it. Language? Photography?Music? Some aspect of business? Begin to build one or two of those high points by study and practice. Plan when to do it. This does not bolster his ego. then you have never tried to be. Give them their due! But not over-due! Do not boast or act high. Don’t expect to “snap out of it” overnight. and as if it was always they who must snap to attention and say it first. Self-doubt causes you to absorb troubles and add to your sense of failure. Consider your high points. Plan to handle similar situations more effectively. You are undignified. You never feel you have done enough on any one day because there is always so much more to do. People who doubt themselves tend to dangle by the opinions of others. At that exact time jump to it. This is compensation game. who will play an inferior role in life. you can change the role you play in life. You spend a lot of time telling people where they get off—in your imagination. MEMORY—YOUR MENTAL FILING SYSTEM . In that case. “I’ve done my day’s work!” You envy those with special skills and special funds of knowledge. even though you do not really enjoy it. then find yourself terribly rushed.Lame excuses must be avoided. You talk too quickly. on one day at a time. Plan to express yourself firmly and calmly when you find it necessary. Assign a day for each part of the job. You think you are not good enough at any one particular thing. When you have a big task. Postponement always makes a job look harder. It is satisfaction from reasonable progress that builds confidence. that with proper effort. It’s a strain at first. Remember. You put things off till the last minute.

you are knocking one more hole through its bottom. In a few cubic inches your brain stores much more information than can be stored in a large computer installation costing millions. You would be surprised at your powers of recollection if your career depended on it. there are some general rules that will help you in training your memory. . It produces mental tension. three-digit figures. Recall is then easy. This was the secret of Dr Finkelstein’s wizardry. Some remember pictorial images. You have a prodigious memory. and you will learn it in connected form. Over-trying slows down the memory. many times as necessary. Bedtime memorisers score consistently 20 to 30 per cent higher than those memorising at other hours. Polish mathematical performer. The more you can reiterate the matter you want to recall. In the dark recesses of the mind are filled literally billions of information bits. facts and figures. Dr Salo Finkelstein. remember how burning leaves smell. others learn by the “feel” of words. or how a chocolate ice-cream tastes. Shun artificial aids such as associating disparate elements. He viewed a long number as a string of smaller. was once asked by a broadcasting company to tally the returns of a US presidential election because he was faster than an adding machine. People have different types of mind. In memorising. Further. In learning a poem. This needs frequent revision. This puts your mind to unnecessary labour in handling two kinds of material that have no natural relation to each other. Don’t try too hard. it can do things that would stump any present-day computer. It is possible to recognize familiar pattern in figures themselves. New information has to be associated with what you already know. Each link brings along the one behind it provided the connection is there. Every time you remark that you have a memory like a sieve. the more efficiently you will do it. others recall sounds.43 seconds.You forget names and faces. Each time you dip back into the past you are activating this most remarkable of faculties. although one faculty usually predominates. you might imagine it would be easier to memorise couple of stanzas at a time. tackle a thing as a whole. No matter what type of mind you have. Read the poem right through from start to finish. simply because you never really has to remember them. This may be compared to a bicycle chain. Most have some share of each type of ability. The material sinks in most effectively then. You must keep the memory traces fresh if you wish to recall easily. The best time to memorize a thing is just before you go to sleep. He did it in 4.

claimed that he could remember all the facts coming to his attention in the course of a long and busy career and most of what he had read. A few individuals can look at something and have total recall of minute details. It is also related that Ben Johnson could recite long books by heart. He later revealed that one day he had picked up a copy of the Army List and while turning over the pages had unconsciously memorised the birth dates and various particulars. without a single note. “No pocket could have contained all the books he needed for the shortest journey.If an opinion in an abstruse metaphysical author is referred to. at which the colonel challenged anyone to say how old he was. Jonathan Swift. while Secretary of State for Colonies. He could identify even obscure quotations. With such capacity. James Macintosh.” In protracted travelling he gra-dually left his clothing behind him as more and more books crowded it out of his valises. A friend of Professor William James was introduced to a Colonel in the British army. which overflowed from the rooms into the passages and down the staircase. can tell the side of the page on which it is to be met with. In his own library he had over 25. He was so fond of books that I am sure he never saw a lonely one .” And Sir James Barrier. When he was introduced to the Colonel all the particulars he had read about him rose into his mind without any conscious bidding. says Harvard’s John Merritt. Sir William Robertson Nicoll. for in a few seconds he had mastered even the most difficult paragraphs. yet once. Some people have extraordinary retrieval powers.000 books. he delivered the annual statement of his department’s work. He also repeated easily from memory what he had read.One researcher calculates the brain’s storage capacity at one quadrillion bits of information— that’s a million times a billion. The professor’s friend astonished both the Colonel and others present by giving the correct date of his birth. In addition to such mental activity he wrote between 30. a well-known writer and politician. and without any effort of previous notice. Hazlitt said of this man: “There is scarce an author that he has not read….000 words an hour. Clement Shorter said: “He could read a page while I read a sentence.000 words a week and maintained complete control of his paper. a very lengthy speech. a chronological table of the progress of the human mind in that particular branch of inquiry”. He was born and reared in a Scottish manse containing over 17. which he claimed to master at the rate of 40. “No one has ever filled the pitcher to overflowing.000 and 40. for many years editor of The British Weekly.000 books and could put his hand on any book he wanted and turn up any quotation with no delay. can trace it back….and thus give you in a few minutes space. He could repeat not only the passage correctly but say on which page it would be found. Robert Browning had only to read a book once to be able to quote entire pages fluently and easily. It was said of Bonar Law that he never prepared speeches or spoke from notes. Nicoll’s memory and mental grasp were remarkably sure. with many figures. read on an average two books a day. he is probably able to repeat the passage by heart. when three. could read most of the different passages in the Bible.” Memory works in queer ways. Presently the men were chatting about the signs of age.

Gates have shown that depressing emotions generate injurious compounds. At the end of a month you will find the change in yourself which will be apparent in your actions and thoughts. Each time you become a little more like what you dread like being. that he remembered substantially the hundreds of scholarly books he had read in the course of a busy lifetime. Agreeable emotions generate chemical compounds which stimulate cells to generate energy. You are crippling your chances of a bright career and life. and replaced by new and constructive ones which re-build your personality. this need not be so. Macauly. you forge one more link to the vicious chain. Learn from the photographer. SWITCH OVER FROM NEGATIVE TO POSITIVE ATTITUDE If your constant regain is. He develops negatives into positives. You were not born a negative. It was said of Professor Richard Porson. Dr Samuel Clarke. The mind often takes impression with the accuracy of a camera and reproduces them as readily. Regrets. anticipation of failures. He was one of the few men of his time who knew by heart every ancient Greek writer so well that he could tell the position of a quoted line in the copy of the work concerned in his library. I should say that he read thousands of them every year of his life. it is also true of positive ones. always took a book with him and claimed that he remembered all that he had read.without wanting to pat it and give it six pence. Summon feelings of benevolence and unselfishness. and as quickly as you or I may gather black berries. Heaven and hell exist in your own mind! Devote time to these emotional gymnastics. I do not have the luck except of the bad kind. One solid positive thought lays foundation of a cheerful edifice. the negative and destructive or disintegrating forces can be forced out. just as glimmers of light dispel thickness of darkness. It cannot be done. The antidotes for poisons of failure and false ambition exist in your mind. Be your own photo-grapher! In simple words. you are inflicting a psychological injury on your own self. If it is true of negative thoughts. . Things always go the way opposite I want”. a famous Cambridge authority on Greece. You can build your own mind. a famous divine. Negative thinking generates a circle which goes on re-cycling emotional toxins. Negative can give way to positive. You can now become a positive. calling up pleasant memories and ideas. He would read rapidly several pages of print. It is easy because both are acquired thought patterns. selfdistrust. This negative trend gets so deeply sunk into your personality that failure. the historian. However. was fond of demonstrating this feature of the mind’s activities. creeping tears build an invisible horror edifice of inside you. Experiments made by Elmer C. Replace them. “I cannot. gloom and selfdisapproval become an integral part of your whole being. Positives begin to reverse the negatives. close the book and repeat what he had read word perfect.

Anger, for example, changes the chemical properties of the saliva to a poison dangerous to life. Sudden and violent emotions can weaken the heart in a few hours, and can cause imbecility, even death. Use emotional chemistry to neutralise a thought with the opposite thought, just as an acid is neutralised by an alkaline antidote! Counteract the corrosive power of depressing thought by its cheerful antidote. The optimistic thought is sure death to the pessimistic one. Harmony neutralises discord. The health thought will antidote the ailing, sick thought. You cannot smile and scout at the same time. “I am ailing. I am dying.” Replace it with, “I am well and kicking. I am growing in vitality. Why should I nurse death-thoughts?” Nothing exhausts life as hatred, jealousy and revenge. They who nurse these passions are worn out; look haggard, even before they have reached middle age. They are premature fossils of life. If you have a fever, you go to a physician for an antidote, but when jealousy or hatred is raging within, you suffer until the fever gradually wears itself out, not knowing that by an application of love which would quickly antidote it, you could easily have avoided suffering and the wear and tear of the system. You cannot drive darkness out of a room. Let in the light and the darkness flees! The way to get rid of failure is to flood the mind with success. Vijaya, a struggling journalist, has acquired the habit of refreshing her mind even in the most trying and exacting conditions. Knowing the power of mental images to renew the mind, she has learned to eliminate all those which suggest dark, unfortunate images, by dwelling on their opposites—those which bring beautiful, cheerful, uplifting, encouraging pictures to her mind. Through magic of chemistry, she has been able to maintain serenity and balance which endear her to all who know her. In the past, you have been pilling one gloomy thought on another and have built a solid wall. Now, reverse the process. As a starter, use Emil Coue’s famous: “Every day in every way, I am getting better and better.” Such a positive affirmation repeated loudly echoes in your mind, driving out the doubts, your traitors. You can adopt a multi-dimensional approach—personal, significance, work, people, life. If you look upon yourself as worthless, a waif afloat on the water of life, you will reflect it in your words and actions. If you exhibit bright image, confident words and self-assured behaviour, it also shows lifewise. Negative thinking hinges on a feeling of inferiority and worthlessness just as positive thinking on personal worth. It is important to have a feeling of personal significance. You are unique as individual.

Positive thinking is a way of looking at life. Sometimes, a negative approach springs from wanting to do things you are not fit enough to do. You misfire. There must be self-acceptance in ample measure. Your real potential remains unexplored, but you go about exploring what really does not belong to you. This happens when you try to be someone else than your own self. A batchmate of mine desperately tried to become what I had. His efforts ended in vain because he was not trying to explore and realise his own potential. He was trying to fake me. His attempts at getting into and staying in print ended after a few feeble attempts. This happens to many because they nurse delusions about themselves, either overestimating or underestimate themselves. How do you look at your work? Do you look upon it as a necessary evil? If so, current of gloom flows in your thinking. You go about life as a lost soul. You are distracted. You will meet mishaps because you are an accident in search of occurrence! Bias and prejudice play an important role in negative thinking. A senior faculty member of the university department where I taught, was driven by strong, inexplicable forces against me. I was baffled till a journalist friend told me that he would continue to boil against me till my by-line appeared in a prestigious English language daily of the region. This gentleman had not cultivated a simple maxim of positive thinking: congratulate those who deserve it. Success in life does not depend on our circumstances, but on ourselves. More men have ruined themselves than have ever been destroyed by others. More houses and cities have perished at the hands of man, than storms or earthquakes have ever destroyed. Who fills madhouses? Surely, not fairies of nature. Just ravages inflicted upon man by his own self. There are two sorts of ruins; one is the work of time, the other of man. Of all ruins, the ruin of man is the saddest. “A man’s worst enemy”, Seneca said, “is the one in the breast.” Providence does not create evil, but gives liberty, and if we misuse it we are sure to suffer, but have only ourselves to blame. “Many men”, says La Bruyere, “spend much of their time in making the rest miserable”. We all know how to make ourselves miserable.That is simple enough. Be selfish, take offence easily, think too much of yourselves and too little for others, be extravagant, run into debt, take too much to eat and drink, and you will be miserable enough. This is suicide in measured steps! Life is not a bed of roses, but neither should it be a field of battle. Some people waste their living in wishing for what they know they cannot have, in regretting what they cannot avoid, and talking of what they do not understand. What we call evil is good misapplied, or carried to excess. A wheel, or even a cog out of place throws the whole machinery out of gear, and if we place ourselves out of harmony with the harmony with the constitution of the universe, we must expect to suffer accordingly. Actions have consequences. Courage in excess becomes foolhardiness, affliction, weakness, thrift, avarice. It is proverbial that what is one man’s meat is another man’s poison.

We bring the troubles of life on ourselves by own errors—errors in both senses, by doing what we know all the time to be wrong; but also, and perhaps almost as much, by our mistakes. Try to do what you ought and you will have no doubt what you ought to do. If we do wrong, it is with our eyes open; for if they are not open, unless indeed we have wilfullly shut them, we may act unwisely, but it is not sin. We must trust to reason; to that of parents, of elders, of friends; to our education and to ourselves. Indeed, our education is part of ourselves. We have all at any rate one pupil whom we must teach and educate. What we teach ourselves becomes such more a part of our being than what we learn from others. Education does not end when we leave school. It has, in fact, just begun! It goes on through life. “How well it would be”, said Seneca, “if men would but exercise their brains as they do their bodies, and take as much pains for virtue as they do for pleasure. “What you wish to be, that you are; for such is the force of our will that whatever we wish to be, seriously, and wish a true intension, that we become.”?Moreover, we generally know what we ought to do, for conscience tells us “more than seven watchmen that sit aloft in a high tower.”

Humour is a subject that has attracted the attention and interest of some of our greatest minds, from Aristotle and Kant to Freud. It has also fascinated and played an important part in the work of some of the greatest writers such as Shakespeare and Oscar Wilde. However, curiously, after thousands of years spent trying to understand humour, there is still a great deal of controversy about what humour is or why something is funny. There are some interesting theories, though, on this matter. For Aristotle, comedy is based on “an imitation of men worse than the average,” of people who are “ridiculous”. Hobbes carried the same idea a bit further. He said, “the passion of laughter is nothing else but sudden glory arising from a sudden conception of some eminency in ourselves by comparison with the infirmity of others, or with our own formerly.” There is another theory that is probably the most important and most widely accepted of the explanations of humour. This theory argues that all humour involves some kind of a difference between what one expects and what one gets. One of the more interesting and controversial theories of humour stems from the work of Freud. The psychoanalytic theory of humour argues that humour is essentially masked aggression which gives us gratifications we desperately crave. As Freud wrote in his classic book—Jokes and Their Relation to the Unconscious— “and here at last we can understand what it is that jokes achieve in the service of their purpose. They make possible the satisfaction of an instinct (whether lustful or hostile) in the face of an obstacle that stands in its way.” Freud also recounts a number of wonderful Jewish jokes in his book and alludes to the remarkable amount of self-criticism found in jokes which all Jews tell about themselves. “Incidentally,’ he wrote, “I do not know whether there are many other

In reality. Mr B There are many myths about the private enterprise in education and how it . In this scenario. as it seemed to help a cause and diversify choice of resources available. deprivation). In the rural pockets. even if it does involve the private sector to reach its goals. The world has been seeing a wave of privatization sweep across many spheres. He did not regard Jewish jokes as masochistic (gratification gained from pain. Just the opposite. At the school-level. The fact of the matter is that this seemingly trivial. With the paucity of funds being an almost permanent feature of the departments of State. the presence of private enterprise is being felt much in the area of school-level education concentrated in the urban areas only. In the present times. common thing we know as humour is very enigmatic and plays a vital role in our psychic lives and in society. The process involves private sector in the ownership or operation of a State-owned enterprise. especially in infrastructure.instances of a people making fun of such a degree of its own character”. the State’s contributions loom large over the country’s education scenario. it does not come without drawbacks. Jewish humour has been intimately connected with Jewish survival. too. And subsequently. Even though privatization is a necessity. His use of the word “fun” is important. humour is not some kind of an idle and trivial matter but generally enables people to gain valuable insights into social and political matters. why is it unable to hold the ideas of social equity and service to the deprived sections! Is privatization of education really going to help or is it just another up-scale factory turning up nose on the natives? Miss A At the time of independence. The impact of privatization on education could not be contained either. PRIVATISATION OF EDUCATION The public choice strategy proposes that functions that are not being carried out properly/efficiently or have received a lackadaisical approach towards them must be delegated to the private sector. It is sometimes not only essential but also the only choice that remains when breaking the monopoly of the government is concerned. privatization has to be resorted to on a larger scale if the targets are to be met. Also. It might be argued that since humour is an effective way to keeping in touch with reality. the ideals that are upheld by the State in its enterprises has been overtaken by the underlying mantras of business enterprise— profits and more profits. Now the time has come when India’s burgeoning population demands more resource allocation and larger infrastructure to combat illiteracy and promote education. It becomes necessary at this stage to understand that when the Constitution has laid down free and compulsory education for children until they complete 14 years of age. the unrealistic burden that has been cast upon the State can be effectively met. The highly ambitious goals of literacy achievement have been shouldered by the State-run schools so far. the elementary schools are State-aided and so are the majority of schools in the urban areas. privatization has become a very normal phenomenon. why is the State not able to meet its responsibility. Even at the colleges and the university levels. Nehru’s vision to make India a socialist country placed immense responsibility on the shoulders of the State to establish and oversee the expansion of educational institutions. inconsequential.

while the lesser mortals continue to go to the State-aided schools. education is no longer considered a part of social service. as they are sure to benefit from such a move. Miss C The quantum of knowledge available to the world has increased rapidly in the past few decades and that itself is a pointer to the fact that knowledge is power. The government resources are on a real . However.can aid the government’s efforts in scaling down illiteracy and building up a veritable force of educated human beings. Even the World Bank has corroborated the view. to mould the children’s characters in tune with certain specific values. However. It is certainly one area that cannot be left in the hands of private individuals. It is a necessary area that needs careful investment that will be a greatly contributing factor to the human resource development. But when the management is in the hands of people who are private entities. It is quite evident from the public school experience that the children who come out of those systems have little powers to empathize with anyone else but those of their own social class and ethos. a certain non-partisan character of education can be guaranteed. There is a great exhibition of the philanthropic spirit in the beginning. Mr D It is true that we need a large and competent infrastructure to meet the demands of the new times and that the current system will need a great revamp. It has been seen a lot many times that corporate/religious bodies take up the onus of contributing to the field of education. like an ostrich. In reality. These schools have English as the medium of imparting education and are churning out children from the upper class exclusively. but it soon fizzles out. It is of utmost importance that the developing and the underdeveloped must focus on the education for keeping the knowledge gap between themselves and the developed nations to the minimum extent possible. And to think that it is easy to circumvent or surmount those issues to reach the goal of equitable education and opportunities in the same field is like burying one’s head in sand. Now. The value of human capital has dawned upon the world and it is much more important to invest in human being than to invest in assets of any other sort. In this arena also exists the misnomer of ‘public schools’. There can be no doubts about the required contributions of the private sector in the enhancement of the education. that this is the true state of affairs. ranging from generation of profits to promotion of an ideology. Without adequate infrastructure we will not be able to meet up the challenges. Miss A There is not one but many maladies that ail the system of governance in our country. they could have agendas for fulfilment through education. Technological developments across the country have fostered a need for skilled and knowledgeable manpower. When the State undertakes the onus of educating the masses. to mention a few. which transform into commercial activities guided by motives of profit-making and diversifying operations to garner more resources. In that the government think tanks have to get rolling and churn out ways and means to ensure the meeting up of requirements and standards in the field of education. calling for the contribution of the private sector in a field like education can have serious ramifications. therefore the intervention of the private sector is required. stating that the knowledge explosion is fast dividing the world into fast moving rich economies and the slow moving poor ones. which are completely run by private bodies or trusts. It must be realised at the very outset that the motives of the two organisations are at cross-purposes and one cannot substitute for the other. when the idea is to reduce gaps and foster social equity. these are the image-building exercises of these trusts. One has to consider several aspects here. one cannot rely on this option.

Land allotment is done on a nominal cost and slowly as the structure begins to take shape.low as compared to the needs of the people. are prerequisites of good education. It is not really possible to replace the people handling the affairs in one go. The State-run schools. if education is privatized. and the institutions charge a full fee at all times. development fee.W. In such a scenario. Privatization of education can be relied upon for overcoming structural and operational rigidities and promote the effective and efficient steps towards the implementation of education projects necessary for development of the human capital. the world is going through the fourth Industrial Revolution and it needs true professionals to fit the slots created for employment. maintenance fee and sundry other charges. sincerity and political will that effects the public sector. they only have to tread the beaten path. Miss C One has to look at the gains in terms of the output vis-à-vis the inputs given. on the ladder of development. The case with the public sector education has been that it has failed to regenerate constructive resources from the recipients of education. Over the years. The teacher’s work under a system of rigid rules and regulations. Mr B Against the backdrop of speck and span environments and efficiently run organisations. It can easily make up for the lack of funds. services have been sought from it. The economic base of the country cannot support demands of the country. are the other realities that need an equal mention. The management has the prerogative of hiring or firing a person any time and this is what keeps the teachers on their toes. On the other hand. come to be sweatshops for the teachers. because simply learning to read and write does not bestow powers of discernment on an individual. Relevant . It will stop the process of devaluing of education. The country has a high level of unemployment. the parents will take care that every penny worth is extricated and that efficiency and effectiveness in service is maintained. but the need for a guarded approach cannot be ruled out in areas like education. students are charged with building fee. the student is likely to value it. considering all that comes free in this deal and the number of subsidies that are given. however. Rostow. It has often been recognised by the experts that skill imparting and development of areas where the aptitude of the learner lies. demands that great strides be made in the direction of building up the human resource base. as the State has been identified responsible for the provision of education to the masses. These unaided schools. but there is nothing impossible if there is willingness and the great Indian ingenuity is put to use. The role of private sector has proved to be greatly facilitating in diverse fields. The new breed of entrepreneurs—the educational entrepreneurs—take full advantage of the situation and capitalize on the need for good education. have much attractive packages for their employees. It is just the same phenomenon that happens to all things—they are not valued when they come free of cost. education has come to be a social service activity. where innovation in teaching is not appreciated. People do not place the premium on it as is required. The definition of literacy itself needs a revamp. which helps these institutions hire well-qualified individuals at low salaries. According to W. It is imperative and a need of the times that education is necessarily provided to the people. time and again. It is not an inherent lack but it so happens that the funds allocated happen to disappear on their way to the projects. privatization can relieve the system of the enormous responsibility that is important and yet not fulfilled. Mr D The position of our country. although they charge huge sums from the students. however.

legislations can be worked out to ensure that privatization does not degenerate into commercialization. An under-standing between government and the private sector can work miracles—universities can start up R & D activities funded by the corporates. In so far as professional courses are concerned, the issue of capitation fees must be taken seriously and here is where State intervention is required.

The 2010 HDR Report by United Nations Development Programme (UNDP), titled “The Real Wealth of Nations: Pathways to Human Development” celebrates the contributions of the human development approach, which is as relevant as ever to making sense of our changing world and finding ways to improve people’s well-being. The Report is also about how the human development approach can adjust to meet the challenges of the new millennium. India is ranked 119 out of 169 countries on the Human Development Index (HDI) of the UNDP’s 2010 Human Development Report. This marks an improvement of just one rank between 2005 and 2010 though the report, a special 20th anniversary edition, places India among top 10 performers globally in terms of HDI measured on income growth. The category is led by China. India comes 10th after Botswana, South Korea, Hong Kong, Malaysia and Mauritius. China has improved eight notches (from 2005 to 2010) to secure the 89th position. In South Asia, Nepal has gained five places to reach the 138th rank. Maldives has risen four places to 107; Sri Lanka at 91 too has pipped India in the rankings though Pakistan has lost two ranks to fall to 125, while Bangladesh is up one at 129. Though high on GDP growth, India reports severe inequalities (the report for the first time measures inequalities, gender gaps and multidimensional poverty as markers of human development) while several low-income nations have posted huge profits by investing in education and health. Nepal is the only South Asian country, which despite low income, stands as the third best performer in the top 10 movers the report highlights. While the Congress-led UPA Government can take heart from the fact that India’s HDI value has increased from 0.320 in 1980 to 0.519 in 2010, higher than South Asia’s average of 0.516, India still lags behind among medium HD nations. South Asia, particularly India, post shocking percentage losses in HDI values if inequalities are counted. South Asia loses 33 per cent of its HDI value if health, education and income disparities are factored in. This is the second largest loss after sub-Saharan Africa’s. India fares particularly poorly here, losing 30 per cent overall on the inequality-adjusted HDI. This loss includes 31.3 per cent loss on inequality-adjusted life expectancy index; 40.6 per cent loss on education but only 14.6 per cent loss in income-adjusted HDI index. The best HDI ranker in the world, Norway, loses just 6.6 per cent to inequality while China loses 23 per cent and Bangladesh 29.4 per cent. On all major markers of human development, India’s neighbours Bangladesh and Pakistan beat it. India’s life expectancy at birth is among the lowest, 64.4 years as against China’s 73.5; Bangladesh’s 66.9, Pakistan’s 67.2 and Nepal’s 67.5. In mean years of schooling too, India lags behind recording 4.4 years while China has 7.5; Pakistan 4.9 and Bangladesh 4.8. On female labour force participation too, Bangladesh with 61 per cent is much ahead of India, which has just 31 per cent. The 2010 report uses several new methodologies; hence its indicators are not comparable to those

in the earlier reports. Human development is about sustaining positive outcomes steadily over time and combating processes that impoverish people or underpin oppression and structural injustice. Plural principles such as equity, sustainability and respect for human rights are the key. Human development is also the expansion of people’s freedoms to live long, healthy and creative lives; to advance other goals they have reason to value; and to engage actively in shaping development equitably and sustainably on a shared planet. People are both the beneficiaries and the drivers of human development, as individuals and in groups. This reaffirmation underlines the core of human development—its themes of sustainability, equity and empowerment and its inherent flexibility. Because gains might be fragile and vulnerable to reversal and because future generations must be treated justly, special efforts are needed to ensure that human development endures—that it is sustainable. A major contribution of 2010 HDR is the systematic assessment of trends in key components of human development over the past 40 years. This retrospective assessment, an important objective for the 20th anniversary, is the most comprehensive analysis of the HDR to date and yields important new insights. In some basic respects the world is a much better place today than it was in 1990—or in 1970. Over the past 20 years many people around the world have experienced dramatic improvements in key aspects of their lives. Overall, they are healthier, more educated and wealthier and have more power to appoint and hold their leaders accountable than ever before. The world’s average HDI has increased 18 percent since 1990 (and 41 percent since 1970), reflecting large aggregate improvements in life expectancy, school enrolment, literacy and income. But there has also been considerable variability in experience and much volatility, themes to which we return below. Almost all countries have benefited from this progress. Of 135 countries in our sample for 1970– 2010, with 92 percent of the world’s people, only 3—the Democratic Republic of the Congo, Zambia and Zimbabwe—have a lower HDI today than in 1970. Overall, poor countries are catching up with rich countries in the HDI. This convergence paints a far more optimistic picture than a perspective limited to trends in income, where divergence has continued. But not all countries have seen rapid progress, and the variations are striking. Those experiencing the slowest progress are countries in Sub-Saharan Africa, struck by the HIV epidemic, and countries in the former Soviet Union, suffering increased adult mortality. The top HDI movers (countries that have made the greatest progress in improving the HDI) include well known income “growth miracles” such as China, Indonesia and South Korea. But they include others—such as Nepal, Oman and Tunisia—where progress in the non-income dimensions of human development has been equally remarkable. It is striking that the top 10 list contains several countries not typically described as top performers. And Ethiopia comes in 11th, with three other Sub-Saharan African countries (Botswana, Beninand Burkina Faso) in the top 25. Not all countries have progressed rapidly, and the variation is striking. Over the past 40 years a quarter of developing countries saw their HDI increase less than 20 percent, another quarter, more than 65 percent. These differences partly reflect different starting points—less developed countries have on average faster progress in health and education than more developed ones do. But half the variation in HDI performance is unexplained by initial HDI, and countries with similar starting points experience remarkably different evolutions, suggesting that country factors such as policies, institutions and geography are important.

Health advances have been large but are slowing. The slowdown in aggregate progress is due largely to dramatic reversals in 19 countries. In nine of them—six in Sub-Saharan Africa and three in the former Soviet Union—life expectancy has fallen below 1970 levels. The causes of these declines are the HIV epidemic and increased adult mortality in transition countries. Progress in education has been substantial and widespread, reflecting not only improvements in the quantity of schooling but also in the equity of access to education for girls and boys. To a large extent this progress reflects greater State involvement, which is often characterized more by getting children into school than by imparting a high-quality education. Progress in income varies much more. However, despite aggregate progress, there is no convergence in income—in contrast to health and education—because on average rich countries have grown faster than poor ones over the past 40 years. The divide between developed and developing countries persists: a small subset of countries has remained at the top of the world income distribution, and only a handful of countries that started out poor have joined that highincome group. Understanding the Patterns and Drivers of Human Development One of the most surprising results of human development research in recent years is the lack of a significant correlation between economic growth and improvements in health and education. Research shows that this relationship is particularly weak at low and medium levels of the HDI. This is traceable to changes in how people become healthier and more educated. The correlation in levels today, which contrasts with the absence of correlation in changes over time, is a snapshot that reflects historical patterns, as countries that became rich were the only ones able to pay for costly advances in health and education. But technological improvements and changes in societal structures allow even poorer countries today to realize significant gains. The unprecedented flows of ideas across countries in recent times—ranging from health-saving technologies to political ideals and to productive practices—have been transformative. Many innovations have allowed countries to improve health and education at very low cost—which explains why the association between the income and non-income dimensions of human development has weakened over time. Income and growth remain vital. Income growth can indicate that opportunities for decent work are expanding—though this is not always so—and economic contractions and associated job losses are bad news for people around the world. Income is also the source of the taxes and other revenues that governments need in order to provide services and undertake redistributive programs. Thus, increasing income on a broad basis remains an important policy priority. One important aspect is how relationships between markets and States are organized. Governments have addressed, in a range of ways, the tension between the need for markets to generate income and dynamism and the need to deal with market failures. Markets may be necessary for sustained economic dynamism, but they do not automatically bring progress in other dimensions of human development. Development that overly favours rapid economic growth is rarely sustainable. In other words, a market economy is necessary, but not enough. Regulation, however, requires a capable State as well as political commitment, and State capability is often in short supply. Some developing country governments have tried to mimic the actions of a modern developed State without having the resources or the capacity to do so. For example, import substitution regimes in many Latin American countries floundered when countries tried to develop a targeted industrial policy. In contrast, an important lesson of the East Asian successes was that a capable, focused State can help drive development and the growth of markets. What is possible and appropriate is context specific.

Beyond the State, civil society actors have demonstrated the potential to curb the excesses of both the market and the State, though governments seeking to control dissent can restrict civil society activity. The dynamics can be virtuous when countries transition to both inclusive market institutions and inclusive political institutions. But this is difficult and rare. Oligarchic capitalism tends to spell its own demise, either because it stifles the productive engines of innovation—as in the failed import substitution regimes of Latin America and the Caribbean—or because material progress increases people’s aspirations and challenges the narrow elite’s grip on power, as in Brazil, Indonesia and South Korea since the 1990s. Human development is not only about health, education and income. Even when countries progress in the HDI, they do not necessarily excel in the broader dimensions. It is possible to have a high HDI and be unsustainable, undemocratic and unequal just as it is possible to have a low HDI and be relatively sustainable, democratic and equal. These patterns pose important challenges for how we think about human development, its measurement and the policies to improve outcomes and processes over time. Trends conducive to empowerment include the vast increases in literacy and educational attainment in many parts of the world that have strengthened people’s ability to make informed choices and hold governments accountable. The scope for empowerment and its expression have broadened, through both technology and institutions. In particular, the proliferation of mobile telephony and satellite television and increased access to the Internet has vastly increased the availability of information and the ability to voice opinions. The share of formal democracies has increased from less than a third of countries in 1970 to half in the mid-1990s and to three-fifths in 2008. Many hybrid forms of political organization have emerged. While real change and healthy political functioning have varied, and many formal democracies are flawed and fragile, policy-making is much better informed by the views and concerns of citizens. Local democratic processes are deepening. Political struggles have led to substantial change in many countries, greatly expanding the representation of traditionally marginalized people, including women, the poor, indigenous groups, refugees and sexual minorities. Recent years have also exposed the fragility of some of the achievement—perhaps best illustrated by the biggest financial crisis in several decades, which caused 34 million people to lose their jobs and 64 million more people to fall below the $1.25 a day income poverty threshold. The risk of a “double-dip” recession remains, and a full recovery could take years. But perhaps the greatest challenge to maintaining progress in human development comes from the un-sustainability of production and consumption patterns. For human development to become truly sustainable, the close link between economic growth and greenhouse gas emissions needs to be severed. Some developed countries have begun to alleviate the worst effects through recycling and investment in public transport and infrastructure. But most developing countries are hampered by the high costs and low availability of clean energy. New measures for an evolving reality Over the years the HDR has introduced new measures to evaluate progress in reducing poverty and empowering women. But lack of reliable data has been a major constraint. This year HDR has introduced three new indices to capture important aspects of the distribution of well-being for inequality, gender equity and poverty. They reflect advances in methods and better data availability. Adjusting the Human Development Index for inequality. Reflecting inequality in each

The Netherlands tops the list of the most gender-equal countries. 2010 report introduces the Inequality-adjusted HDI (IHDI). The patterns of deprivation also differ from those of income poverty in important ways: in many countries—including Ethiopia and Guatemala— the number of people who are multidimensionally poor is higher. and increasing our understanding of inequality. providing an alternative to conventional approaches to studying development. Sweden and Switzerland. education and income. built on the same framework as the HDI and the IHDI—to better expose differences in the distribution of achievements between women and men—has been introduced. Three priorities are: improving data and analysis to inform debates. and countries with high gender inequality also experience unequal distribution of human development. women and girls are discriminated against in health. making it an apt tool for policy-makers. It can be de-constructed by region. Like development. with at least 30 percent of the indicators reflecting acute deprivation in health. the average share of deprivations ranges from about 45 percent (in Gabon. Yet half the world’s multi-dimensionally poor live in South Asia (844 million people). the greater the inequality. in about a fourth of the countries for which both estimates are available—including China. Sub-Saharan Africa has the highest incidence of multi-dimensional poverty. education and the labour market—with negative repercussions for their freedoms. Countries with unequal distribution of human development also experience high inequality between women and men. followed by Denmark. The index identifies deprivations across the same three dimensions as the HDI and shows the number of people who are poor (suffering a given number of deprivations) and the number of deprivations with which poor households typically contend. the HDI of an average person in a society is less than the aggregate HDI. the lower the IHDI (and the greater the difference between it and the HDI). The Gender Inequality Index shows that gender inequality varies tremendously across countries—the losses in achievement due to gender inequality (not directly comparable to total inequality losses because different variables are used) range from 17 percent to 85 percent. a measure of the level of human development of people in a society that accounts for inequality. Among the countries doing very badly on both fronts are Central African Republic. An important element of this tradition is a rich agenda of research and analysis. The disadvantages facing women and girls are a major source of inequality. which complements money-based measures by considering multiple deprivations and their overlap. All too often. and more than a quarter live in Africa (458 million). 2010 report introduces the Multi-dimensional Poverty Index (MPI). When there is inequality in the distribution of health. . However. This exceeds the estimated 1. The level ranges from a low of 3 percent in South Africa to a massive 93 percent in Niger. But much is left to do.25 a day or less (though it is below the share who live on $2 or less). vulnerability and sustainability. poverty is multidimensional—but this is traditionally ignored by headline figures.75 billion people in the 104 countries covered by the MPI—a third of their population—live in multidimensional poverty—that is.dimension of the HDI addresses an objective first stated in the 1990 HDR. About 1. The impacts of the HDR have illustrated that policy thinking can be informed and stimulated by deeper exploration into key dimensions of human development. Haiti and Mozambique. empowerment. A new measure of these inequalities. A new measure of gender inequality. ethnicity and other groupings as well as by dimension. education and standard of living. This Report suggests ways to move this agenda forward through better data and trend analysis. Under perfect equality the HDI and the IHDI are equal. A multidimensional measure of poverty. Lesotho and Swaziland) to 69 percent (in Niger).44 billion people in those countries who live on $1. Tanzania and Uzbekistan—rates of income poverty are higher.

with enormous scope to improve human development. Free primary education for all children was legislated in 1971 and extended to secondary education in 2007. In India 92 percent of people of Scheduled Tribes live in rural areas. there is a consistent gap of 6–18 percent. For example.The economics of growth and its relationship with development. the State-wide literacy rate is 64 percent—but that of tribal peoples is only 22 percent. Canada. A vast theoretical and empirical literature almost uniformly equates economic growth with development. 47 percent of them in poverty. The gap between Nepal’s life expectancy and the world average has narrowed by 87 percent over the past 40 years. local mobilization of resources and decentralization. By contrast. New Zealand and the United States. by contrast. Remarkable reductions in infant mortality reflect more general successes in health following the extension of primary healthcare through community participation. Indigenous Peoples and Inequality in Human Development An estimated 300 million indigenous peoples from more than 5. When the Human Development Index (HDI) is calculated for aboriginal and non-aboriginal people in Australia.000 groups live in more than 70 countries. India and Lao PDR geography. In China. Nepal is still a poor country. with a sizeable share of Scheduled Tribes. climate and discrimination based on ethnicity make it difficult to deliver basic infrastructure to remote areas. Its models typically assume that people care only about consumption. its empirical applications concentrate almost exclusively on the effect of policies and institutions on economic growth.5 percent nationally. and the lack of jobs led many Nepalese to seek opportunities abroad. Thus. That Nepal is one of the fastest movers in the Human Development Index (HDI) since 1970 is perhaps surprising in light of the country’s difficult circumstances and record of conflict. Work in Latin America and the Caribbean exploring access to land and this aspect of discrimination shows that a focus on broad-based economic growth can benefit indigenous peoples but is unlikely to be enough to close the gap. our call for a new economics—an economics of human development—in which the objective is to further human well-being and in which growth and other policies are evaluated and pursued vigorously insofar as they advance human development in the short and long term. poorer education outcomes and smaller incomes. Nepal’s impressive progress in health and education can be traced to major public policy efforts. it exceeds 39 percent among indigenous Mexicans. Nepal—major public policy push. Large disparities in school attendance and the quality of education . More targeted strategies are needed. economic growth was modest. Some evidence suggests that a schooling gap between indigenous and non-indigenous peoples remains. Three Success Stories in Advancing the Human Development Index Some countries have succeeded in achieving high human development following different pathways. In Chhattisgarh. Indigenous peoples in these countries have lower life expectancy. The central contention of the human development approach. It ranks 138th of 169 countries in the HDI. require radical rethinking. as did literacy later on. Gross enrolment rates soared. as proposed by indigenous peoples and as informed by their views and priorities.1 Indigenous peoples often face structural disadvantages and have worse human development outcomes in key respects. Some two-thirds reside in China. in particular. where many indigenous peoples and ethnic minorities live. recent Mexican government analyses show that while extreme multidimensional poverty is 10. is that well-being is about much more than money: it is about the possibilities that people have to fulfil the life plans they have reason to choose and pursue.

cholera.persist. it ranks 26th in economic growth since 1970. On average. as Tunisia’s modest (56th of 138 countries) ranking on our new Gender Inequality Index demonstrates. diphtheria and malaria. Oman has had the fastest progress in the HDI. . Tunisia—education a policy focus. At least half of allocated funds are to be spent by elected local councils. and 53 million households participated. when it had three primary schools and one vocational institute. Imposing strict norms for transparency and accountability. particularly between urban and rural areas and across ethnic groups. with proactive disclosure of essential documents (such as attendance records). India’s National Rural Employment Guarantee Act India’s National Rural Employment Guarantee Act (NREGA) of 2005. with education a major policy focus. a majority of workers were members of Scheduled Castes or Scheduled Tribes. Labourers who are not given work within 15 days of asking for it are entitled to unemployment benefits. Annual per capita income growth has been around 3 percent over the past 40 years. so our data capture the evolution from a very poor to a very rich country. village assemblies are to select and prioritize projects. Tunisia’s success extends to all three dimensions of the HDI. the world’s largest public works programme ever. Abundant oil and gas were discovered in the late 1960s. each participating household worked for 54 days. There has also been some progress in gender equity: about 6 of 10 university students are women. provides basic social security for rural workers: a universal and legally enforceable right to 100 days of employment per rural household on local public works at minimum wage. and periodic audits are to be carried out by village representatives. But even in Oman economic growth is not the whole story. as has eradication of polio. Creating rural assets. Disadvantaged groups joined in large numbers. related to communicable diseases and malnutrition. All documents are to be publicly available. People are to be employed to create public assets (such as roads and check-dams) as well as assets on private lands (such as land improvement and wells). Rapid decline in fertility and high vaccination rates for measles and tuberculosis have yielded successes in health. A third of employment generated is to be set aside for women and provided within 5 kilometres of their village. Oman—converting oil to health and education. and more than half were women. linked to fiscal and monetary prudence and investment in transport and communication infrastructure. In fiscal year 2009/2010 India spent almost $10 billion (approximately 1 percent of GDP) on the programme. The act has other noteworthy features: • • • • Encouraging women’s participation. Decentralizing planning and implementation. particularly after the country legislated 10 years of compulsory education in 1991. Health services also improved: from 1970 to 2000 government spending on health rose almost six-fold—much faster than GDP. showing a quadrupling of gross enrolment and literacy rates and a 27-year increase in life expectancy. Major health challenges remain. School enrolment has risen substantially. child care facilities (if required) must be provided at the work-site. But large inequalities persist. Although first in HDI progress. Its initiatives to convert oil wealth into education included expanding access and adopting policies to match skills to labour market needs.

measures of the knowledge dimension would go beyond estimating quantity to assessing quality. Some of the income residents earn is sent abroad. Timor-Leste’s GNI is many times domestic output. THE GENESIS OF CAPITAL MARKETS CRASH Last one year has pulled down the hopes of most of the investors in the stock markets. education and income. and because of international aid. benefiting all rural workers. gross national income (GNI) per capita replaces gross domestic product (GDP) per capita. as well that of the Reserve Bank of India was . To measure the standard of living. said when asked who decided how programme wages should be spent: “Main ghar ki mukhiya hoon” (I am the head of the household). As Haski. and gross enrolment is recast as expected years of schooling—the years of schooling that a child can expect to receive given current enrolment rates. It recognizes that health. some residents receive international remittances and some countries receive sizeable aid flows. This method captures how well rounded a country’s performance is across the three dimensions. For example. But in 2010 report the indicators used to measure progress in education and income have been modified. Poor performance in any dimension is now directly reflected in the HDI. and the way they are aggregated has been changed. GNI in the Philippines greatly exceeds GDP. while expected years of schooling is consistent with the reframing of this dimension in terms of years. education and income are all important. Income is instrumental to human development but higher incomes have a declining contribution to human development. Refining the Human Development Index The Human Development Index (HDI) remains an aggregate measure of progress in three dimensions—health. The initial contention of the Finance Minister. And the maximum values in each dimension have been shifted to the observed maximum. Mean years of schooling is estimated more frequently for more countries and can discriminate better among countries. In the knowledge dimension mean years of schooling replaces literacy. As a basis for comparisons of achievement. A key change was to shift to a geometric mean (which measures the typical value of a set of numbers): thus in 2010 the HDI is the geometric mean of the three dimension indices. because of large remittances from abroad. but also that it is hard to compare these different dimensions of well-being and that we should not let changes in any of them go unnoticed. a tribal woman from Rajasthan. Ideally. Distress migration to urban areas has slowed.Payments of minimum wages and improved work conditions at NREGA work-sites have created pressure for similar improvements in the private labour market. In a globalized world differences are often large between the income of a country’s residents and its domestic production. And for many rural women programme earnings are an important source of economic independence. and there is no longer perfect substitutability across dimensions. as several National and Regional Human Development Reports (HDRs) have done. rather than a predefined cut-off beyond which achievements are ignored. this method is also more respectful of the intrinsic differences in the dimensions than a simple average is. who had hoped that the slowdown in the world economy would not impact the Indian economy beyond a limit.

The investments are made with this attitude and hope. Such a forecast would certainly continue to spook the stock markets all over the globe. Global data with the International Monetary Fund (IMF) revealed that the US economy would be in recession between the periods of second half of the year 2008 to the first half of the year 2009. the Europe also began to fear the worst. Why Crash? Rise and fall of the markets is part of normal economic activity in any market. It was the time when the Indian government had failed to control the inflation rate which continued to be in double digit for almost one year. But ‘crash’ of the markets is quite different from routine ‘fall’. The sectors and sub-sectors . inflation rate and overall global economic situation are some of the factors that determine this timeline. which till July 2008 was maintaining that the growth rate of the economy could be around eight per cent during the current fiscal. as the economic cycle has to take full turn. While the global deceleration was the prime cause. All investors love the ideal situation and pray for the bullish trends in the markets. to be again engulfed by the recessionary tendencies. The Prime Minister’s Office. When the inevitable begins to become a reality. Since the stock market operations are a zero-sum game and for every gain there is a loser. the economic systems grow with cyclical fluctuations when every recession is followed by recovery and up-swing of the economy. This suggests that the worst has just begun. both the economic phenomena supplement each other. While the US economy had already been in the recession mode. Recession and capital markets have some cause and effect relationship and it may be extremely difficult to establish as to which one of the two is responsible for the other. the majority is always wrong. The crumbling of the stock markets all over the world re-affirmed the fears of deepening recession in the world. several Indian companies had began to hand over ‘pink slips’ to their employees. the projections about the slowdown in India also acted as fuel to the fire. has now changed its projections to around seven per cent. lending rates had skyrocketed and the real estate prices had registered a fall upto 40 per cent. But the euphoric investors during the boom times fail to appreciate this fact. In fact.also based on this belief only. But the bearish trends are inevitable at such a stage. But the collective attitude of the society undergoes change during the bullish times and people wishfully hope that the markets would continue growing for all times to come. comes the downward trend in the capital market and the euphoria of the investors turns into downright pessimism. the interest rates. money supply. But more than that is the factor of human psychology that is responsible for the crash. It is said that in the financial markets. As per economic theory. It was after the fall of Lehman Brothers and liquidity crisis in some of the biggest investment banks in USA that the policy makers began to take the crisis seriously. All these developments resulted in reverse flight of the Foreign Institutional Investment (FII) and the bloodbath in the Indian stock exchanges continued unabated. the effective demand. With the advent of downswing. Liquidity position in the economy. Several economic factors play a major role in determining the timing of the downward trend to begin. The only thing not known is the time of the switch. the average investor starts losing the money and the panic strikes the markets. The markets all over the world witnessed similar trends. As the US markets began to display the continuing downward trend. the Indian stock markets also pressed the panic buttons. The phenomenon of capital market crash was not peculiar to India only. it is not possible for everyone to win in the markets.

While the monetary policy measures of the RBI have been appreciated by the banks as well as the investors. . Actions Taken and Required The role played by the RBI to take timely actions to inject more liquidity in the market and to reduce the lending rates to push up the investment activity. there appears to be a need to release more money supply into the economy. and if the recession comes. Asian economies would certainly help in quicker turnaround of the world economy. and even India. Indonesia. with inflation close to the double digit. Malaysia. Today. China. Changes in the FII policy by providing for some lock-in period may also prevent the reverse flight of the foreign investment and may go a long way in checking the crash of the markets in future. particularly in the face of mounting inflationary pressures.having extreme global dependence and exposure began to get jittery. The reverse flight of the FII did the rest. there has to be some checks on speculative trading of stocks by the SEBI. Reductions in the CRR and repo rate released the desired liquidity in the markets. increase in liquidity may fuel the inflation rate. During 1920s. control the inflation. After all. would ensure that the recession is not allowed to hit the world as hard as it did eight decades ago. The government would need to support the corporate world by sacrificing some of its revenues and reduce the tax and duty rates for a while. The artificially inflated markets began to lick the dust and the prices of the stocks began to locate their true economic price. the vibrant and resilient economies of the ASEAN countries. Reduction in recruitment by the software companies and the staff reduction initiatives by the aviation and financial sector set the ball rolling for the crash of the stocks. If the investors were properly guided at that stage. create more employment opportunities and balance the liquidity in the economic system. can the upswing be far behind? The current period of recession is marked by virtually no credit and lack of equity. The monetary policy measures taken by the RBI were part of extremely difficult options. Indian markets as well as the economic system are facing a dilemma. including those of Japan. the role of the SEBI in sustaining the faith of the common man in the Indian stock exchanges is a big suspect. the situation is much better this time. Compared to the great depression of 1929. there were no strong and robust Asian economies on the global economic scene. duly consolidated. The government agencies have so far treaded the corrective path very carefully. To prevent such occurrence. While the liquidity is low. which is already at a level higher than the desirable. It is felt that the price of stocks in India had been artificially high in the past which also triggered the sudden crash. But at the same time. the resultant buying activity in the market would have helped in expediting the upswing of the markets and the economy. has been laudable. This also implies that the corporate sector would undergo a phase of consolidation and in a short time would be ready to bounce back. as there is no aggressive lending or stock buying activity. the SEBI failed to convince the investors that this was the time to invest in the stocks. At the time when the stocks were crumbling. it cannot go on for ever. It would also be the duty of the government to create favourable conditions for investment. South Korea. The parleys of the Governor of the RBI with various bank chiefs to reduce the lending rates not only resulted in building up the confidence but also reduction in the lending rates. higher public investment in the social and infrastructure sectors and streamlining the procedures could be some of the items on the action plan of the government to revive the economy and resultantly the capital markets. Positive reforms in the financial sector. reduce the interest rate.

An important function of the money market is to provide a focal point for interventions of the RBI to influence the liquidity in the financial system and implement other monetary policy measures. Short term generally covers the time period upto one year. as it is an important determinant of the inflation rate as well as the creation of credit by the banks in the economy. Functioning under the regulation and control of the Reserve Bank of India (RBI). Recently. The money market is also closely linked with the Foreign Exchange Market. through the process of covered interest arbitrage in which the forward premium acts as a bridge between the domestic and foreign interest rates. Market forces generally indicate the need for borrowing or liquidity and the money market adjusts itself to such calls. Quantum of liquidity in the banking system is of paramount importance. money market is a mechanism which deals with lending and borrowing of short term funds. In case a particular bank needs funds for a few days. various companies in the corporate sector also issue fixed deposits to the public for shorter duration and to that extent become part of the money market mechanism selectively. Further. RBI facilitates such adjustments with monetary policy tools available with it. In case of liquidity crunch. The lending bank also gains. Such distortions are available only in . Post reforms period in India has witnessed tremendous growth of the Indian money markets. the interest rates would go up. there are several credit instruments which involve similar maturity but diversely different risk factors. Determination of appropriate interest for deposits or loans by the banks or the other financial institutions is a complex mechanism in itself. Depending on the economic situation and available market trends. Money market denotes inter-bank market where the banks borrow and lend among themselves to meet the short term credit and deposit needs of the economy. There are several issues that need to be resolved before the optimum rates are determined. The money market operations help the banks tide over the temporary mismatch of funds with them. as it is able to earn interest on the funds lying idle with it.GROWTH OF MONEY MARKET IN INDIA While the need for long term financing is met by the capital or financial markets.000 crore with two back-to-back reductions in the CRR. the RBI has the option of either reducing the Cash Reserve Ratio (CRR) or pumping in more money supply into the system. the RBI has released more than Rs 75. While the term structure of the interest rate is a very important determinant. services and agriculture. In other words. range from one day to one year. resulting in fair amount of improvement in their functioning. The maturities of the instruments issued by the money market as a whole. In addition to the lending by the banks and the financial institutions. Decision of the government to allow the private sector banks to operate has provided much needed healthy competition in the money markets. it can borrow from another bank by paying the determined interest rate. Heavy call for funds overnight indicates that the banks are in need of short term funds and in case of liquidity crunch. Banks and other financial institutions have been able to meet the high expectations of short term funding of important sectors like the industry. the difference between the existing domestic and international interest rates also emerges as an important factor. the Indian money markets have also exhibited the required maturity and resilience over the past about two decades. to overcome the liquidity crunch in the Indian money market. money market provides avenues to the players in the market to strike equilibrium between the surplus funds with the lenders and the requirement of funds for the borrowers. the RBI intervenes in the money market through a host of interventions.

developing and diverse economies like the Indian economy and need extra care while handling the issues at the policy levels. While determining the total volume of credit plan for the six monthly period. The RBI assists the government to implement its policies related to the credit plans through its statutory control over the banking system of the country. On the positive side. This function also assists the RBI to control the overall money supply in the economy. cash reserve ratio and bank rate are used by the Central Bank of the country to give the required direction to the monetary policy. depending upon the demand and supply scenario at the given point of time. on the other hand. has longer term perspective and aims at correcting the imbalances in the economy. Foreign investment results in increased economic activity. credit creation and control. The instruments of monetary policy. including the repo rate. Hence. Higher rates in the money markets reduce the liquidity in the economy and have the effect of reducing the economic activity in the system. but also keeps a close watch over it. Inflation is one of the serious economic problems that all the developing economies have to face every now and then. the growth rate of the country has soared to new levels and the foreign trade had been growing at around 20 per cent during the past few years. inflation rate and overall economic policy of the State. income and employment generation in the economy. on the other hand. Monetary policy. Cyclical fluctuations do affect the price level differently. Reduced rates. it also caters to the credit needs of various sectors of the economy. A slightly mild definition of openness may be referred to as financial integration of two or more economies. The idea is not only to regulate the economy and its money markets for the overall economic development. the process of globalization has made the money market operations and the monetary policy tools quite important. thereby increasing the investment. the credit policy also aims at directing the flow of credit as per the priorities fixed by the government according to the needs of the economy. but also to attract more and more foreign capital into the country. Indian experience with open markets has been a mixed one. Credit policy and the monetary policy. Diverse Functions Money markets are one of the most important mechanisms of any deve-loping economy. this mechanism has emerged as one of the important policy tools with the government and the RBI to control the monetary policy. both complement each other to achieve the long term goals determined by the government. Free and unrestricted flow of foreign capital and growing integration of the global markets is the hallmark of openness of economies. Credit policy as an instrument is important to ensure the availability of the credit in adequate volumes. Foreign exchange reserves have burgeoned to significantly higher levels and the country has achieved new heights in the overall socio-economic development. It not only maintains complete control over the credit creation by the banks. Such operations supplement the efforts of direct infusion of newly printed notes by the RBI. In recent years. The . money supply. Instead of just ensuring that the money market in India regulates the flow of credit and credit rates. Future of Open Markets Financial openness is said to be a situation under which the residents of one country are in a position to trade their assets with residents of another country. Money market rates play a major role in controlling the price line. increase the liquidity in the market and bring down the cost of capital substantially. the first and the foremost function of the money market mechanism is regulatory in nature.

with the foreign sector. placing the country among the front runners in the race for highest growth in the world. India’s Information Technology (IT) industry. Economic activity in the rural areas has not been able to pick up to match the rapid growth of the cities. registering over 20 per cent growth in the past several years. the resilience of the Indian economy must also be given its due credit for outstanding achievements. But the number of the poor and hungry is also not decreasing. Low per capita income is a pointer towards the existing sharp divide between India’s wealthiest and poorest sections of society. In addition to the economic divide between the rich and the poor. Out of the total population. the spurt in economic activity in the country and increase in the growth rate over the past few years has not been able to make a discernible dent on the problem of poverty. On the flip side. The growth rate of the agricultural sector has been between 2 to 4 per cent over the past couple of decades. There are more Indian billionaires in the Forbes list than ever before. India has been second only to China in terms of the growth rate achieved. in absolute terms India still is a low income economy. have income level of less than $1 per day. yet the social sector needs more focused attention. The result is that in the hope of getting better employment and growth opportunities a large number of people are migrating to the cities every year. post-reforms period has been marked by high growth rate. about 26 million people live below poverty line and 35 per cent out of this group. As per 2001 Census. Without taking away the credit from the liberalization policy. while the . about 78 million people in the country were living without a home and more than that number were holed up in urban slums. Money market mechanism has kept the markets upbeat. have been the centres of growth. the problems of unequal and skewed distribution of economic resources and the fruits of growth have surfaced. the post-reforms period has witnessed relatively lesser growth of the social sector. With the base of the economy now strengthened. Unfortunately. The number of the poor living in the country is more than the poor living in any other country of the world. The growth centres are encircled by the group of underprivileged people whose basic needs are still to be met. also classified as the poorest of the poor. During the past about a decade. The divide between the rich and the poor has now become a tangible reality. deprivation and exploitation of the downtrodden. Despite the above socio-economic problems plaguing the Indian society. During the past five years. RICH-POOR DIVIDE: CAN IT BE BRIDGED? Despite the high growth rate of the economy. particularly the metropolitan cities. It has been admitted by the government policy makers that the growth rate in the rural areas has been quite sluggish despite high growth rate in the urban centres. the money market mechanism must also focus on ensuring that proper direction is provided to the credit flows so that the poorest sections of the society also gain. manufacturing and automobile sectors have been booming. with its per capita income at a level less than $500 per annum. the foreign sector in the country has also been performing extremely well and the policy of globalization has paid rich dividends. Industrial centres have also been the hubs of economic activity and the income levels in the country are on the rise. During this era of rapid growth. the digital divide between various regions of the country has also become an important market mechanism has played a significant role in rapid development of the country during the post-reforms era. Rural economy is largely comprised of the agriculture and allied activities. services. The urban areas.

the urban population cries for more of the economy is growing at the rate of around 8 per cent. basic amenities and employment opportunities. investment in urban infrastructure and basic civic amenities. . housing. the poorer sections would generally be denied these facilities. Two more flagship programmes. Known as Bharat Nirman. The urban problems in India are no different. With about 300 million people living in 5. which requires pragmatic policies aimed at redistributive justice on sustainable basis. particularly in the rural areas. About 40% of the urban population in India lives in 60 metropolitan urban agglomerations. It implies that increase in incomes in the rural sector has been almost one-third of the average growth of incomes in the country. There is a huge population of urban poor and slum dwellers living there. another ambitious programme called Jawaharlal Nehru National Urban Renewal Mission is being implemented in 66 major cities of the country under which a lot of funds are being spent to upgrade the urban infrastructure. It is estimated that the urban population of the country would increase to 468 million by the year 2020.000 cities and towns. housing and service delivery mechanism. about 65 million urban people live in slums and squatter settlements in these agglomerations. which come at a higher cost than they can afford. Indian Constitution. But these very cities have their darker side as well. It is the duty and responsibility of the government to take immediate measures for bridging the widening gap. Government of India has already launched an ambitious programme aimed at stimulating the economic activity in the rural areas. Water supply and sanitation is a serious problem and solid waste collection and its safe disposal is something that requires a major national initiative. this new initiative is expected to pump in huge sums of public expenditure in the development of rural infrastructure of the country. are being implemented which aim at bringing in qualitative as well as numerical improvement in the education and healthcare sectors. through the Directive Principles of State Policy entrusts this responsibility of equitable distribution of economic resources to the government policies. In addition cities like Bangalore and Hyderabad are the hub centres of the IT revolution in the country. Resultantly. The above does not imply that all is well in the urban sector as a whole. While a person from the middle class and upper middle class in the cities would invariably have access to better health. Bridging the Gap Equitable growth of the economy is the ultimate goal and every government must strive hard to achieve this goal. Delhi and Kolkota are the main business and growth centres in the country. The current situation in most of the cities and towns is pathetic. To take care of the urbanurban divide. Urban areas have their own set of problems and inequalities resulting in what is known as urban-urban divide. called Sarv Siksha Abhiyan and “National Rural Health Mission”. The variation in the income levels in the cities has also created a kind of dichotomy in the society and the vertical split in the society is a matter of serious concern for the sociologists as well as the economists. Globalization cannot snatch away the basic right of decent living from the poor and the downtrodden. the rural economy has emerged as a poor cousin of the urban and industrial sectors and the existing yawning gap has actually increased further. Mumbai. educational and other facilities. As per one estimate of the government. This poses a Herculean task to the cities in terms of improvements in civic infrastructure.

the unemployment rate has gone up to 8. Special attention of the government is required to be focused on stepping up the economic activity in the rural areas so that the rural incomes experience the required upsurge and the existing gap is bridged to some extent. relatively larger rural base in India is a positive and strong factor in combating the ill effects of global recession. though industries and the services sectors are centred around the industrial and urban areas. it has now been estimated that India’s growth rate during the financial year ending March 2010 would moderate further to 5. Healthcare and sanitation facilities need a total upgrade in the entire country. Rural Orientation Indian economy is peculiar to the extent that it has a lot more rural orientation than most economies of the world. yet over 60 per cent of the work force is directly or indirectly dependent on the primary sector.98 million in the second quarter. Divide in the early stages of development is a global phenomenon but it must not be allowed to perpetuate beyond reasonable limit. Out of this growth 71 per cent rise in this . In India this figure is officially estimated to be about 5 lakh during the quarter ending December 2008.5 per cent. the government has to ensure distributive justice through its taxation and other economic policies.In addition to the above initiatives. The total telecom subscriber base for India grew from 70. Not only this. Being a low income segment. GO RURAL: THE NEW MANTRA As per the latest estimates of the Central Statistical Organisation (CSO). the growth rate of the Indian economy during 2008-09 is expected to be around 7. As per the views of the Rural Marketing Association of India. Due attention is required to be paid to the education sector in the rural areas so that the people living there are able to get the best possible education to compete with their urban counterparts.1 per cent. having no fear of loss of jobs. Loss of jobs in the unorganized sector due to reduced economic activity is going to be much higher and beyond estimation. Further. there has been no impact of economic slowdown on the rural economy of India. The telecom sector has witnessed a rapid growth in the villages and small towns.7 per cent and the same in Japan has also been the highest in the recent times. A nation-wide study carried out in the rural markets of the country found out that the rural markets in the country actually offer an opportunity to the marketers to come out of current economic crisis. This sector contributes about one fourth of the total GDP and offers tremendous potential for growth in the near future. In India.83 million in the first quarter of 2008 to 90. As direct fallout of the ongoing global recession. It is perhaps for the first time after the onset of the process of reforms that the Indian government has realized the importance of the rural economy to tide over the difficult econo-mic situation. In USA. International Labour Organisation (ILO) maintains that the employment rate in India and other South Asian nations may by lower than the world average. due to their lesser exposure to the Ameri-can economy and the financial markets. this also does not get influenced easily by extraordinary econo-mic situations. China has reported 20 million job losses. which would be lowest during the past several years. rapidly increasing unemployment rate has been a major cause of concern. Main reasons for such immunity are stated to be higher percentage of total expenditure on food items and the fact that majority of the population is involved in self-employment occupations. as against the earlier expectations of 8 per cent. Majority of the countries in the world are dependent on their industrial centres and rapidly growing cities for maintaining their growth rate.

76 crore mandays. while the urban areas accounted for the remaining 29 per cent growth. The study also brings out that more than 72 million Kisan Credit Cards are in use in the rural areas of the country. A provision of Rs 40. Another important scheme with rural focus is Rajiv Gandhi Rural Drinking Water Mission. which is a healthcare programme for the rural areas.200 crore provision has been kept. which is also termed as the largest school feeding programme of the world. Fortunately for the country. Another gigantic rural development programme is Bharat Nirman. 2009.000 crore.400 crore has been provided for this scheme for the financial year 2009-10. It is apparent from the above that the direction of the Interim Budget 2009-10 has been towards the rural areas. rural telecommunication. the Finance Minister also made significant allocations to various other programmes and schemes having rural focus. which aims at huge public expenditure in the rural infrastructure. at the critical juncture when the great recession knocked at the doors of Indian economy.705 crore has been made under the Integrated Child Development Scheme (ICDS). Rural sanitation is also an ongoing programme for which Rs 1. presented by Mr Pranab Mukherjee on February 16. about 3.100 crore has been made for the said scheme. NRHM. irrigation. Mid-day meal programme. under which the pre-school children and the lactating mothers are provided nutrition and healthcare under Anganwaris. several government sponsored programmes involving huge public expenditure in the rural areas were already being implemented. rural areas of the country hold the key for future development. generating 138. a massive allocation of Rs 30. also had its focus on the rural eco-nomy. A sum of Rs 13. It has six components. the allocation to this programme was increased by 261 per cent during the period between 2005-09. including rural roads. For the year 2009-10. To further supplement the efforts of nutrition to the rural students. Enormous amounts of funds being pumped into the rural economy by the government would greatly supplement the natural growth . In addition to stiff doses of funds proposed through the above two flagship programmes.sector came from the rural India. 2009 for this programme. Majority of the people in the rural areas do not invest in stock markets and park their savings in low risk portfolios like post office/bank savings or fixed deposits. larger part of growth of Fast Moving Consumer Goods (FMCG) came from rural and sub-urban markets. rural housing and rural electrification. Whether it is the growth of FMCG or consumer durables. another provision of Rs 6. During 2008. has been allocated a sum of Rs 8. this huge sum would be distributed as wages to the rural households during the said year. has been provided with a hefty provision of Rs 12. The Interim Budget for the year 2009-10. most of which is to be spent in the rural areas.100 crore has been allocated for Sarv Siksha Abhiyan. Under the NREGS during the year 2008-09. In other words.51 crore rural households were benefited.070 crore. which number almost matches the number of Credit Cards under use in the urban areas. The government of India was quick to realize this and immediately after the recession began to show its impact began to direct its economic policies towards the rural sector.900 crore has been kept in the interim budget. or the telecommunication growth. As per the Finance Minister. which aims at providing drinking water supply to the villages not covered by tap water supply. drinking water supply. A sum of Rs 7.

the demand for the petroleum products is expectedly high. it is the rural economy and its hidden capabilities that may ultimately bail the eco-nomy out. The reasons for the direct involvement of the government are not difficult to seek. the rapidly developing economy requires petroleum products like diesel and petrol in huge quantities for carrying goods across this vast country. But now. The trickle down effect. the purchasing power of the people in these areas is on the rise and. cannot afford the LPG at the market rate and hence the government has to subsidise the LPG as well. rural infrastructure. The booming automobile sector of the country also needs a lot of petrol and diesel at reasonable prices. the so-called ‘digital divide’ may start experiencing imminent and rapid bridging. . rural healthcare. While the demand for the petroleum products is rising by almost 15 per cent per annum. has begun to actually show. Immediately after independence the cost realization to the oil companies in the country was linked to the ‘import parity’ type of pricing. any steep increase in the prices of oil adversely affects the Indian economy. drinking water supply. The policy makers have realized that as soon as the cities and the industrial centres start becoming saturated with growth potential. The hereto ignored rural areas have now revealed their true potential. neglected after independence. the middle class. irrigation. Further. rural housing. At the same time. PETROLEUM PRICING POLICY IN INDIA: NEED FOR CHANGE India is one of the fastest growing economies of the world. if the current trends continue. import duties and other levies and charges. the country is also home to almost one fifth of the total world population. with improved focus on rural wage employment. known as the ‘Value Stock Pricing’ (VSA). which included added elements of all the costs such as shipping charges upto the Indian ports. Thus. transit losses. This mechanism was basically a cost-plus formula to the import price. insurance. making the country heavily dependent on the import of crude. nutrition and rural electrification in a big way by the government. If the trend continues. though delayed. More than 250 million people in the country live below poverty line and there is a vast majority of population classified as the middle class. Diesel is also used by many industries as a critical input for production. At the same time. Keeping the social and economic ramifications in mind the government has always remained involved with the pricing and supply of these products. It is the responsibility of the government to provide the cooking fuel to the poorer sections at affordable rate and the government has been continuing with its policy of subsidising kerosene heavily. it is the rural market of the country which holds the key for future. the day is not far when the history of rapid growth of the economy for the next two decades would be scripted by the smart growth of rural economy in the country. the domestic production of the crude oil has virtually remained stagnant over the last two decades. Even at the pre-sent times of crisis. It is for sure that the rural emphasis in the India’s economic policy is going to stay for quite some time in future. Rural markets in the country have arrived in a big way.of these areas. The rural areas had remained. constituting majority of the population of the country. telecommunications. With such a huge chunk of the world population and growth rate of the economy hovering around 8 to 9 per cent per annum for last five years. by and large.

it must reduce the excise duty and the VAT rates across the country. If the aim was to effect the import price recovery. Hence. While the country is undoubtedly dependent heavily on imports. however. the same badly lost focus in the previous years and the price determination for this sector has again turned out to be a purely political decision. It was expected that the new pricing mechanism would be the first step to move forward towards a pricing mechanism based on the interaction of the market forces. the fact that one fourth of the total supply of the crude is met domestically is over-looked. the recent spurt in the global crude prices has completely exposed the flip side of it. When converted to per litre. The decision to dismantle the APM was aimed at gradually shifting from artificial pricing of petroleum products towards a situation where the price is determined by the market forces of demand and supply.The VSA was followed by the Administered Price Mechanism (APM) which actually involved artificial price fixing by the government from time to time and hike or reduction in the prices become a political decision. while the average rate of these commodities has been fixed higher. as a conscious policy decision. Domestically produced crude oil costs the nation something around $55 per barrel and if the global price is taken to be around $150 per barrel. But such a decision would result in loss of revenue. it costs the country about Rs 31 per litre. almost one fourth of the total crude requirement is met by domestic production. rather than being a rational economic decision. The performance of the public sector oil companies does not suggest that these companies are under any threat of loosing out their profits after the global crude price increase. When price per barrel of crude oil is discussed. While the weaknesses of the new system had come to the fore during the past six years of its enforcement. 2002. the average weighted domestic price comes to be around $122 per barrel. The Alternative T he logic behind the extent of increase in prices is neither understood by the general public and . Their profits have actually increased. exposes the illogic of system of pricing these products. no one had thought that the global crude prices would be close to $150 per barrel. This logic. The new mechanism was designed to partially insulate the prices of petroleum products in the country from volatile international crude oil prices. The refining and distribution costs included. the government brought into the force a new pricing mechanism with effect from April 1. At the same time it should not be forgotten that the petroleum products are the most taxed commodities in the country. If the government is so much concerned about the prices of the petroleum products. It looks like the loss to the oil companies is a myth created by the government to protect its own revenues. the average cost of petroleum products like diesel and petrol should not be more than Rs 35 per litre. One of the most prominent arguments advanced by the Central government in favour of the recent steep hike in the prices of the petroleum products was that the oil companies were suffering heavy losses and had to be bailed out. At the same time it was to ensure that the prices of certain products like kerosene and LPG remained subsidised as per the government policy. While devising the new mechanism six years ago.

Surprisingly. The situation is so precarious in the African continent that groups of people suffering from hunger in several African countries have tried to loot the foodgrain stores of the government and the other organisations. the APM may fail to come up to the expectations of the consumers. One option is to go back to the previous APM regime. By the end of March. however. the prices of food articles have risen by about 75 per cent during the last about six months. Deter-mination of prices should be more transparent. several prior actions are required to be taken. But such a step would be retrograde in nature. The changes must aim at reducing the discretion in the process of determining the prices of the petroleum products. which is less polluting. nothing can be more worrying to the party in power than the soaring prices in an election year. the Agriculture Minister of India was quick to respond to the above report and announced that the situation was under . A suggestion has been made that different types of diesels should be used for trucks and luxury cars. where the crude oil prices are fluctuating with upward trend. the inflation rate had reached an alarming 7. Sharad Pawar. those living below poverty line). Such a system. despite several desperate measures taken by the government to control it. The solution lies in suitably modifying the existing system to a large extent. Should the government decide to go in for this regime.41 per cent level and has been hovering above 7 per cent thereafter. when the inflationary pressures are at their peak. INFLATION IN INDIA : FUELLED BY DEMAND? Recent spurt in prices came as a rude shock to the government which was preparing to take on the serious economic challenges like tumbling of the stock exchanges in the country and global slowdown. then a separate distribution network needs to be identified to cater to their needs. It is high time that the railways also switched over to the use of 100% electricity for running the trains. on the one hand. the inflationary pressure is coupled with the reduction in economic growth of the country. The government shall have to dismantle the regime of subsidies in respect of diesel. having zero transparency. No one need to scratch one’s head to find out the reasons for the price rise in the recent weeks. If the subsidies are not to be scrapped altogether and are to be provided to the targeted group of people (viz. and would result in liberating the goods transport sector from the use of diesel. More particularly in the present day scenario. Second option is to switch over the market driven system under which the government would have little role in determination of petroleum prices. the Indian economy is behaving like a typical developing economy. For transport vehicles CNG should be used. Remaining subsidies must be withdrawn by adhering to a prescribed timeline.nor is transparent. But the government does not have many options. Globally. In a democratic system like ours. may be politically unacceptable to most of the political parties. LPG and kerosene altogether. It makes no sense to supply diesel at subsidised rate for the owner of a luxury diesel car. on the other. Even if reintroduced with certain modifications. The world community became even more concerned after the recent report that the world has been left with food stocks only for three to four weeks. the pricing mechanism has become even more suspect. with sufficient and well defined role of the market forces. Subsidisation of the products like kerosene and LPG should only be targeted to the people living below the poverty line by devising a suitable mechanism. and defying the principles of monetary theory. Under the current scenario. First and foremost is the global environment.

In addition. With food scarcities galore and the food prices soaring. This has been one major factors responsible for higher inflation rate in the country. steel and oil are on the rise. The economy has been growing at around 8 per cent per annum during the past five years and the forecast for the current financial year is also around eight per cent. vegetables etc. In developed countries. Another principle of the monetary policy is that the price rise due to increased money supply of one commodity is offset by the price fall of another. In India. Defying Monetary Policy? As per the monetary theory. it is immoral to say that the increase in the prices of food articles is offset by reduction in the prices of other goods. on the other hand. Increase in the prices of these products has cascading effect on the prices of other commodities due to increase in the transportation cost. construction industry and other such industries. In a poor and agrarian country like ours. resulting in pressure on the prices. putting pressure on the government to increase the retail prices of petrol and diesel in the country. cement. agriculture sector is growing at the rate of around two per cent while the growth rate of population is also around two per cent. inflation in India has generally defied the monetary theory and has refused to be curbed by the monetary measures. Increased steel prices put pressure on the prices of many products that use steel as raw material. But notwithstanding the said assertion by the Agriculture Minister. other sectors like the manufacturing and the services sector are booming with a growth rate in double digits. the crude oil prices in the international market had crossed $ 120 per gallon. this cannon seems ridiculous. This is perhaps due to increased demand for steel and cement due to increased construction activity. Though the agricultural sector has been growing at slower rate of around 2 per cent per annum. including the automobiles. fruits. All these factors contradict the teachings of the monetary policy.control in the country. edible oils. inflation is largely a monetary phenomenon and it is the monetary policy measures that come to the rescue of the government to control inflation. the world economy is also trying to pay attention to the sectors having high growth potential and the primary sector is getting ignored. One of the most frequently used measures has been the changes in the import-export policy. Traditionally. India has often resorted to . more people in the world are chasing lesser food articles. as the buffer stocks of food were more than the prescribed limit. India has not been an exception in this regard. But. the prices of foodgrains. the prices of food articles. To tackle inflation. In other words. Credit Reserve Ratio (CRR). Towards the end of April. it is the increased money supply that generally causes inflation and the government takes monetary measures like increasing the bank rate. People need food at every cost and not the cheaper cosmetics! The above phenomenon has forced the policy makers to control inflation by moving away from the monetary policy measures to other measures. infrastructure development through various flagship programmes of the government and increased demand for these commodities for such programmes and the activities of the National Highway Authority of India. where majority of the people spend major chunk of their earnings on food articles. Another factor responsible for the constant increase in prices has been the rising prices of cement and steel. Global prices of crude oil have been on the rise during the past about two years now. say cosmetics. increasing the deposit rates to mop up the surplus flow of money in the economy. pulses. continue to head northwards.

these categories have very low income levels when compared to the national average. During April-March 2007-08. wheat. the WPI of rice increased by 6. Hence. non-core inflation is often the dominant part of inflation. CPI-AL has remained higher than the WPI. the monetary policy measures are week tools for curbing inflation. Ironically. It is believed by many that in the Indian conditions. growth and inflation. milk. but should focus primarily on control of inflation. For rural and agricultural workers the impact of the inflation has been even higher. For example. The reason is that the CPI has higher weightage for the food and consumer items than the WPI. This also explains why the impact of price rise for the consumer is higher than the announced inflation rate by the government.5 per cent at an average. The policies which are successful in the European countries may not work in the country like ours and there is no point in blindly following the monetary policy measures as prescribed in the economic (monetary) theory book. The above facts indicate that the WPI takes into account the weighted average of the commodities included by the government in it and ignores the prices of the commodities that are excluded from the index. wheat by 5. But even if these two commodities are excluded. Increased prices of the food articles are attributed to the supply side constraints and the developments in the international markets. arhar and edible oils. it does not represent the true picture about the price rise in the country. and banning the exports of the select food items. Recently. Corrective Actions The Wholesale Price Index (WPI) is an index of a few commodities and if one looks at the composition of such goods. potato. Hence. where there are several segments in a particular commodity.52 per cent. but the prices of these commodities have not undergone any major change in the last one year.57 per cent.the policy of reducing the import duties on the food articles. with the gap between the two being around 3. on the other. in the modern day of consumerism. Consumer Price Index (CPI) for the agricultural labourers and rural labourers during the month of March has been close to 8 per cent.41 per cent as on 29th March 2008. the WPI needs to be made broad based to include more commodities. indicating the inflation rate at 7. The zero import duty facility has been extended to the import of several food . fertilizers and pesticides have about 10 per cent weight in the index. adding to the worries of the consumers. CPI is more relevant to the consumers and not the WPI.68 per cent. mustard oil by 28. Since the calendar year 2007.8 per cent. House rents and miscellaneous services have also become dearer than before. the most consumed items in the Indian households are rice. arhar by 14. onion. Raghuram Rajan Committee had suggested that the Reserve Bank of India should not resort to routine multi-tasking covering the exchange rate. the government was left with no alternative but to take measures to control inflation directly. Exports have become expensive due to the global price rise. the CPI for the agricultural labourers (CPI-AL) has been increasing at a much faster rate than the WPI.91 per cent and coconut oil by 10. on the one hand. the prices of several articles have not undergone any change. As on today. a significant percentage of index representing a host of commodities has remained unchanged over the last several months. for example represent about 2 per cent weight in the WPI and their prices have remained static during the last about eight months. Electrical goods. As per the latest data released by the NSSO. During April-March 2007-08. and under such a scenario.35 per cent. milk by 8.

2008. Their profitability came down and the efficiency of the staff became suspect. but also for the consumers. The rural areas. the UPA government at the Centre can ill-afford to let the situation of price rise prevail and perpetuate. allowed the setting up of new banks in the private sector. Independence of the country heralded a new era in the growth of modern banking. But the growth of modern banking remained slow mainly due to lack of surplus capital in the Indian economic system at that point of time. to the under-privileged and the downtrodden. the need for government regulated banking system was felt.14 per cent during the week ending April 5. Many new commercial banks came up in various parts of the country. As the modern banking network grew.commodities and export of pulses has been completely banned. the plan priorities and the priority sector at differential rate of interest. Modern banking institutions came up only in big cities and industrial centres. Sahukars and Zamindars involved in the business of money lending by mortgaging the landed property of the borrowers. the rural sector. several State governments like Delhi and Maharashtra initiated several de-hoarding drives by raiding the foodgrain godowns. However. The British government began to pay attention towards the need for an organised banking sector in the country and Reserve Bank of India was set up to regulate the formal banking sector in the country. with the onset of modern industry in the country. after almost two decades of bank nationalisation some new issues became contextual. Towards the beginning of the twentieth century. representing vast majority of Indian society. These banks have also given tough but healthy competition to the public sector banks. It also resulted in financial inclusion of all categories of people in almost all the regions of the country. Shakespeare also referred to ‘Shylocks’ who made unreasonable demands in case the loans were not repaid in time along with interest. remained dependent on the indigenous money lenders for their credit needs. The interests of the poorer sections as well as those of the common man were being ignored. Indian government took a historic decision to nationalise 14 biggest private commercial banks. In 1969. . A few more were nationalised after a couple of years. Being in the election year. Indian history is also replete with the instances referring to indigenous money lenders. The new generation private banks have now established themselves in the system and have set new standards of service and efficiency. The wheel of time had turned a full circle by early nineties and the government after the introduction of structural and economic reforms in the financial sector. while the failure of the monsoons may spell doom not only for the farmers. ROLE OF BANKS AND FINANCIAL INSTITUTIONS IN ECONOMY Money lending in one form or the other has evolved along with the history of the mankind. Non-performing assets of these banks began to rise. It is felt that a spell of good monsoons would further improve the position. the government began to realise that the banking sector was catering only to the needs of the well-to-do and the capitalists. The measures have begun to show some results when the inflation rate eased to 7. This resulted in providing fillip the banking facilities to the rural areas. Even in the ancient times there are references to the moneylenders. Further. This resulted in transferring the ownership of these banks to the State and the Reserve Bank of India could then issue directions to these banks to fund the national programmes. The service standards of the public sector banks began to decline.

The small savings. While the commercial banks cater to the banking needs of the people in the cities and towns. The facility of internet banking enables a consumer to access and operate his bank account without actually visiting the bank premises. An efficient banking system must cater to the needs of high end investors by making available high amounts of capital for big projects in the industrial. Fortunately. infrastructure and service sectors. including the small savings schemes introduced by the government from time to time and in bank deposits in the form of savings accounts. In the modern day economy. The bank deposits. Moreover. It is now easier for the banks to open new branches. But the banking sector reforms are still . electricity and tax. the medium and small ventures must also have credit available to them for new investment and expansion of the existing units. mopping up small savings at reasonable rates with several options. Regional Rural Banks (RRBs) have been sponsored by many commercial banks in several States. Another option is to invest in the stocks or mutual funds. The common man has the option to park his savings under a few alternatives. The modern economies in the world have developed primarily by making best use of the credit availability in their systems. the interest rates in the small savings schemes are no longer higher than those offered by the banks. the government largely patro-nized the small savings schemes in which not only the interest rates were higher. but the income tax rebates and incentives were also in plenty. the bank deposits and the mutual funds have been brought at par for the purpose of incentives under the income tax. on the other hand. particularly the farmers. But for the last few years the trend has been reversed.Modern Day Role Banking system and the Financial Institutions play very significant role in the economy. the small savings were the first choice of the investors. Rural sector in a country like India can grow only if cheaper credit is available to the farmers for their short and medium term needs. These banks. the service provided by the banks is commendable.e. where people have no time to make these payments by standing in queue. take care of the farmer-specific needs of credit and other banking facilities. The banks and the financial institutions also cater to another important need of the society i. The banks also serve as alternative gateways for making payments on account of income tax and online payment of various bills like the telephone. The success of any financial system can be fathomed by finding out the availability of reliable and adequate credit for infrastructure projects. Future Till a few years ago. the banks and the financial institutions also perform certain new-age functions which could not be thought of a couple of decades ago. recurring deposits and time deposits. The facility of ATMs and the credit/debit cards has revolutionised the choices available with the customers. In addition to the above traditional role. As a result. during the past about one decade there has been increased participation of the private sector in infrastructure projects. The bank customers can also invest their funds in various stocks or mutual funds straight from their bank accounts. At the same time. Credit availability for infrastructure sector is also extremely important. First and foremost is in the form of catering to the need of credit for all the sections of society. there is another category of banks that looks after the credit and banking needs of the people living in the rural areas. Banks today are free to determine their interest rates within the given limits prescribed by the RBI. along with the cooperative banks. did not entail such benefits.

despite some moderation in its pace and continued to be the major contributor to the GDP growth.5 percentage points of GDP in 2008-09 than in the previous year. The Revised Estimates (RE) for the year 2007-08 placed the revenue deficit and Gross Fiscal Deficit (GFD) at 1. especially in the . The aim could also be to ensure more self-employment. The government is also preparing to disinvest some of its equity from the PSU banks.not complete.related schemes of the government to uplift the poorer and the underprivileged sections have been implemented through the banking sector. Worrisome Future On April 28. MACROECONOMIC MANAGEMENT AND MONETARY POLICY IN INDIA Every economy makes arrangements for its macroeconomic management through its Central Bank. The role of the banks has been important. Handled by the Central Bank. increasing investment and increased wage employment opportunities. Banks and financial intuitions have played major role in the economic development of the country and most of the credit. Despite the slight slowdown in most of the sectors. It noted with concern that during the second half of the year 2007-08. But the services sector surged ahead with its double digit growth at 10. the performance of the Indian economy during 2007-08 has shown a robust growth of 8.3 million tonnes. thus exceeding the targets. the combined effect of the higher food and fuel prices. to serve as background to the Annual Policy Statement for 2008-09.1 per cent of GDP. but it is going to be even more important in the future. the economy has continued to grow in tune with the trends obtained during the five-year period of 2003-04 to 2007-08. however. “Macroeconomic and Monetary Developments in 2007-08”. The option of allowing foreign direct investment beyond 50 per cent in the Indian banking sector has also been under consideration.4-0. respectively. Despite slight moderation in its achievements over the previous year. which were lower than the budget estimates. Infrastructure sector. Mergers and amalgamation is the next measure on the agenda of the government. While the FRBM targets relating to GFD are set to be achieved in accordance with the mandate. Macroeconomic management may aim at rapid growth of the economy. The Union Budget for 2008-09 also proposes to continue the fiscal consolidation process with the key deficit indicators like revenue deficit and GFD. the Budget proposes to reschedule the stipulated target of zero revenue deficit by 2008-09. total foodgrain production during the year 2007-08 is expected to reach all time high of 227. both in absolute as well as relative terms.7 per cent and the manufacturing sector recorded even higher growth rate of around 9 per cent.7 per cent.4 per cent and 3.6 per cent. The nature of the policy and its thrust would depend upon the desired outcomes. the index of industrial production rose by 8. disappointed and grew at the rate of 5. 2008 the Reserve Bank of India (RBI) released a document. As per the advanced estimates. As per the advanced estimates of the Central Statistical Organisation (CSO).6 per cent. A lot more is required to be done to revamp the public sector banks. controlling the interest rates in the economy and controlling the money supply in the system on the basis of the requirements from time to time. the process of fiscal correction and consolidation under the Fiscal Responsibility and Budget Management (FRBM) Act continued. During the same year. Regulation of money supply is also used as an instrument to control the prices in the economy. facilitating or restricting the flow of credit into the economy. budgeted to be lower by 0. coupled with strong demand conditions.6 percentage points and primary surplus higher by 0. mostly by manipulating the monetary policy measures. recording an increase of 4. Monetary Policy of a country is the primary tool for efficient macroeconomic management.6 per cent over the previous year’s production.

Firstly. India’s balance of payments position also remained comfortable during 2007-08 (AprilDecember). In the foreign exchange market the Indian rupee generally exhibited two-way movements against major foreign currencies. the monetary policy measures undertaken since September 2004 continue to have stabilising effect on the economy. In addition. while at the same time understanding well that the country cannot be totally immune to global developments.emerging economies like India. suffered bouts of volatility towards the second week of January 2008. crossing $135 per barrel by the last week of May 2008. Measures relating to the cash reserve ratio. But the situation worsened with the global crude oil prices burgeoning beyond expectations. to preserve and maintain macroeconomic and financial stability of the economy.3 billion. Net surplus under invisibles (services. The Third Quarter Review of January 29. after remaining stable and buoyant upto December 2007. transfers and income taken together) was higher at US $50. would result in pressure on the price level. as the US sub-prime crisis spilled over from mortgage and credit markets to other assets. risks associated with high and volatile international prices of fuel. food and metal prices intensified. Global financial markets also remained volatile during the latter part of the previous financial year. the Indian financial markets. mainly resulting from the rise in remittances from the overseas Indians and software services exports. The external sector. from US $50. Critical to the monetary policy is the importance of . In view of the unprecedented economic complexities there were certain key factors that determined the direction of the Monetary Policy for 2008-09. Accordingly. there was an immediate challenge of northward movement of food and energy prices which possibly contains some structural components.5 billion in April-December 2007 as compared to US $36. Thus. there has been some improvement in the domestic supply response. and recent initiatives with regard to supplymanagement are giving favourable results. it was realised by the Reserve Bank of India that Monetary Policy had to be vigilant and proactive in protecting the real economy from excess volatility in financial markets. elasticity of supplies can be expected to improve further and new capacities should surface in near future. the net invisible surplus. Despite sharp rise in merchandise trade deficit. contained the current account deficit in trade at US $16. complicating the task of the policy in maintaining the right quantum of liquidity and solvency in the financial markets and institutions. The government reacted with caution to ensure that the price control measures may not result in depressed economic growth of the economy. Resultantly.0 billion during April-December 2007. as against US $14. while demand pressures continue. Thirdly. Consequently. remained within the comfort zone and offered some spark. even as investment demand continues to be high. alongside a build-up of additional capacities enabled by a conducive policy environment. the monetary policy in the recent years has been aiming at the outcomes relating to growth and stability.3 billion in April-December 2006. 2008 had noted with concern the unfolding of unfavourable global developments and the responses of monetary authorities which seemed to provide an indication of threat to growth and financial stability worldwide. The merchandise trade deficit widened to US $66. developments in global financial markets in the context of the US sub-prime crisis required more intensified monitoring and quick responses with all available instruments. while a more reliable assessment of crop prospects by the government is also underway. The report also pointed out that the monetary policy responses during the year were mixed in view of growing concerns about the implications of credit crunch arising out of the US sub-prime crisis.5 billion in April-December 2007. barring the recent episodes of external shocks. Against this background. Secondly.0 billion in April-December 2006. by and large.

The Policy also emphasizes the need for a good credit quality. it cannot afford to ignore the considerations for the immediate future prospects and expected developments. The growth of fiscal deficit also continued unabated year after year. the RBI decided to continue with its well tested policy of active demand and liquidity management through proper use of the CRR stipulations and open market operations. financial stability and growth momentum. All the policy measures may not be able to yield the expected results. While monetary policy has to respond urgently to immediate concerns with respect to the requirements of overall macroeconomic management. Instead of being rigid with its measures. a determination to act decisively. particularly for employment-intensive sectors while ensuring financial inclusion of the masses. the RBI has been using flexibility as the centre-stone of its macroeconomic management framework. The broader aim is to achieve high growth rate. To take up the Herculean task of rapid growth with socio-economic justice. and by utilising judicially all the policy instruments at its disposal. as also to the domestic situation resulted by the apprehensions about the inflation. Excluding the possibility of any adverse and unexpected developments in various sectors of the economy. . effectively and swiftly to allay the fears with regard to increasing pressures of price rise. The fiscal activism adopted by the government resulted in large doses of public expenditures for which not only the revenues of the government were utilized but the government also resorted to borrowing at concessional rates. In view of the above pressing uncertainties and confusing dilemmas. it was considered necessary to take well considered decisions with regard to the timing and magnitude of policy actions on sustained basis. The Monetary Policy also aims at quickly responding to the ongoing adverse global developments on sustainable basis. At the same time. which kept the financial markets underdeveloped. assuming that capital flows are effectively managed and keeping in view the outlook for growth and inflation in the Indian economy. it was important to demonstrate on a sustainable basis. such measures are also expected to be supplemented by appropriate fiscal policy measures. the overall focus of the Monetary Policy in 2008-09 aimed at ensuring a macroeconomic environment that accorded high priority to price stability. Nationalisation of major commercial banks in the late sixties and early seventies provided the government with virtually the complete control over the direction of the bank credit. favourable conditions in financial markets and other conditions conducive to continuation of high and sustainable growth rate in the economy. but these measures do impact the economy positively. the government also came up with the policy of setting up public enterprises in almost every field. as well as credit delivery. the country adopted the system of planned economic development after independence. firm projections of inflation. The emphasis was mainly on control and regulation and the market forces had very limited role to play. FINANCIAL SECTOR REFORMS IN INDIA The period immediately after independence posed a major challenge to the country. As a result. Due to centuries of exploitation at the hands of foreign powers. controlled prices and burgeoning foreign trade. Complex structure of interest rates was a resultant outcome of this system. As the Monetary Policy measures alone may prove inadequate to achieve the perfect macroeconomic management. Due to paucity of economic resources and limitations of availability of capital for investment.expectations relating to both global and domestic developments. with both conventional and non-conventional measures. there were very high levels of deprivation in the economy—both social as well as economic.

Foreign Institutional Investment (FII) and the exchange rate has also represent true international value of Indian rupee vis-à-vis hard global currencies. In 1993. Lack of professionalism and transparency in the functioning of the public sector banks led to increasing burden of non-performance of their assets. Economy and Reforms The introduction of financial sector reforms has provided the economy with a lot of resilience and stability.5 per cent per annum. A Liquidity Adjustment Facility (LAF) was introduced in June 2000 to precisely modulate short-term liquidity and signal shortterm interest rates. Foreign banks were also given more liberal entry.The economic system was working to the satisfaction of the government. The average annual growth rate of the economy during the post-reform period has been more than 6 per cent. technological and physical infrastructure in the financial markets has also improved the financial framework in the country. Reforms in the external sector management have yielded results in the form of increased foreign capital inflows in terms of Foreign Direct Investment (FDI). decontrols and deregulation. Even the economic sanctions by the US and other developed countries after the nuclear testing did not affect the economy to the extent . which was unimaginable a decade before that. and till late seventies. The thrust of the monetary policy after the introduction of the process of reforms has been able to develop several instruments of efficient financial management. The economy withstood boldly the Asian economic crisis of 1997-98. allowing increased role for the market forces of demand and supply. the RBI issued guidelines to allow the private sector banks to enter the banking sector in the country. The situation became difficult by the eighties. The international lending and assisting agencies were ready to extend assistance but with the condition that the country went in for structural reforms. The government has been able to tighten its fiscal management through the FRBMA and the continuing increase in the fiscal deficit has been contained significantly. The precarious economic conditions left the country with no alternative other than acceptance of the conditions for introducing the reforms. The primitive foreign exchange regulation regime controlled by FERA has been replaced by a liberalized foreign exchange rate management system introduced by FEMA. War in the Middle East had put tremendous pressure on the dwindling foreign exchange reserves of the country. A lot of reliance is being placed on indirect instruments of monetary policy. the growth rate of the GDP was hovering around 3. Post Reforms Rationalisation of the taxes has already taken place on the basis of the recommendations of Raja Challiah Committee Report during mid-nineties. Most of the economic ailments had resulted due to over regulation of the economy. High rate of inflation was another area of serious concern. The social indicators were gradually improving and the number of people below poverty line also declined steadily. The only problem area had been that the growth rate of the economy had been very low. Late eighties and early nineties were characterised by fluid economic situation in the country. a virtual reversal of the policy of bank nationalisation. The country witnessed the worst shortages of the petroleum products. Financial system was considerably stretched and artificially directed and concessional availability of credit with respect to certain sectors resulted in distorting the interest rate mechanism. It was only during mid-eighties that the growth rate touched 5 percentage points. Introduction of such a modern management law was perhaps a pre-condition for allowing FDI and FII. Strengthening and upgradation of the institutional.

it turned out to be the other way around as the markets suffered major reverses. Banking and insurance sectors are booming. Income Tax. The RBI has also been able to control and regulate effectively the operations and growth of the Non-Banking Financial Companies (NBFCs) in the country. One of the major criticisms of the government policy has been that the reforms have lacked the human face. Further. who has remained excluded from the process of economic growth experienced by the country during the past decades. quality of elementary education. deposits. there was liquidity crunch in the market and the interest rates were very high. negotiable instruments etc. particularly among the females—are some of the areas of serious concern. The grim market . the literacy rate and poverty percentage are two biggest embarrassments and the country still languishes at 128th position in the Human Development Index of the UNDP. Indonesia and even Sri Lanka are much better than India in most of the social sector indicators. The stock exchanges in the country are in the process of adopting the best practices all over the world. where it is virtually stagnating for the last about five years. The social sector indicators—like availability of doctor per 1000 population.e. While the markets were hoping to recover to some extent at the time of Diwali. rather than addressing the needs for equitable and inclusive growth. But there are certain issues that call for more cautious approach towards the financial sector reforms in the future. While the private and foreign banks are giving stiff but healthy competition to the public sector banks. As per the Finance Minister. to include all those in the process of economic growth.apprehended. resulting in overall improvements in the banking services in the country. availability of health institutions. future reforms by making legal changes also pertain to banking regulations. The current global slowdown and sub-prime crisis affecting the banking system all over the world has not impacted the Indian economy to that extent. public debt. The reforms process has ignored the common man and the trickle down theory has actually failed to deliver. Companies Act. A few changes which are on the anvil pertain to the legal provisions relating to fiscal and budget management. insurance etc.. i. After a phase of bullish euphoria in the financial markets in 2007. In addition to the exorbitant price level. Bankruptcy. literacy rate. while finalising the Eleventh Five-Year Plan has now sought to achieve the overall objective of achieving the ‘inclusive growth’. Countries like China. in October 2008. Despite being among the most rapidly developing economies of the world. as the government has been over-obsessed with the idea of achieving higher growth rate and fiscal and monetary management. To add to the woos of the common man. discouraging the investors from making any investment. the insurance sector has also witnessed transformation. the systems should also be able to check any unusual rise in prices to protect the common man from inflation. The Planning Commission. the inflation rate was hitting the roof. BAIL OUT PACKAGE AND INDIAN ECONOMY The economic problems of the global slowdown began to surface in India during the mid-2008 when a few major investment banks in the USA collapsed and the US economy began to feel the heat of the meltdown. the Indian stock markets began to suffer heavy setbacks after January 2008. The consumer is a gainer with the availability of much better and diversified insurance products.

many companies. 2009. The second bail out package. monetary policy measures and duty cuts.000 crores into the Indian economy. By October 2008. Focus of the package announced on December 6. including the house building advances and car loans. As an automatic corollary to the above mentioned measures was the resultant easier credit at reduced rates. New recruitments were stopped and in many cases the salaries of the existing staff were slashed. But after the rise in fuel prices and global slowdown. the US government took the lead to save its investment banks through a bail-out package. Reduction in the petrol and diesel also helped the auto sector to tide over the difficult situation. The growth rate of the auto sector may not have improved greatly after these measures. The government tried to increase the availability of liquidity in the market by adopting various monetary policy measures to trigger the downward trends in lending rates of various banks. The banks were also shying away from funding the projects on one pretext or the other. bringing down the costs in the aviation sector drastically. 2008.000 crore. Any other government under such a situation would have reacted in the similar manner. this sector came under immense stress. protecting it from further slide. With the RBI announcing reduction in the Repo Rate and the Bank Rates. but the measures have certainly helped this crucial sector to survive the global scare. announced in the beginning of January. On the national front also. . Hence.000 crores. The US government also considered the bailout package for its three major automobile manufacturers. this sector has been the backbone of India’s industrial growth rate. The first bailout package was estimated to have pumped in additional funds to the tune of Rs 40. This was the time when the Indian government also tightened its belt and came out with an economic package which was multi-faceted and encompassed areas like indirect taxation. Effectiveness and Future The measures taken by the government in India were timely and apt. As the crisis loomed large over the world economy. its cost was also reduced considerably.scenario forced the investors to put on hold even the most viable projects. most of the commercial banks reacted positively and announced reduction in their prime lending rates. provided the system with additional liquidity to the extent of Rs 20. During the last about one decade. making it easier for the borrowers to borrow at reduced rates. This was for the first time after the onset of the process of reforms that such a situation was encountered in the country. was primarily on reducing the prime lending rates of the commercial banks. particularly in the IT and Aviation sectors. many corporate entities began to announce salary cuts and reduction in the employee strength. not only the availability of credit was enhanced. forcing the government to announce a package of unemployment doles for such employees. Among the most important sectors is the automobile sector. Civil aviation is yet another important sector that had been fuelling the growth rate of the country in the recent years. Reduction in the excise duties for most of the vehicles has helped this sector to cut the prices of the vehicles significantly. infrastructure and automobile sectors. The government cut the prices of the aviation fuel three times during the months of December and January. Despite the brave face put up by the government. the feeing of recession in the economy began to sink in. taking the total additional fund availability to Rs 60. interest rate cuts. The aim was to revive the economic activity by reviving the housing. began to hand over pink slips to quite a few of their employees.

With the economy offering a lot of scope for development and growth in the rural areas. India is different from rest of the world. In other words. The government has made clear its intention to encourage the private investment and step up the public expenditure to keep the eco-nomy buoyant. and Sarv Siksha Abhiyan are some of the programmes having a lot of funds for investment in the rural areas and. Many people feel that the attempts to add liquidity in the economy were too tentative and too less. this sum may have no significant meaning. half of which is due to large scale migration from the villages to the cities. the improvements in the global situation. Rs 40.000 crore is just about one per cent of the GDP of the country. Affordable housing must be encouraged by the government to counter the situation of economic slowdown. which would be among the highest in the world. Infrastructure and social sector are two such areas in which the government agencies can push up the investment rate significantly. In a large and diverse economy like ours.Certain visible improvements have been observed in the Indian economy after the measures were initiated. these would keep the economy vibrant despite the global economic blues. Mere statement of the intention to invest is not sufficient and higher investment must happen quickly and effectively and the routine delays in the government expenditure must be curbed. With about 4 per cent increase in population in the cities. housing is going to be a basic need of the people in India. Housing is another important activity in India. There are many countries in the world that had grown rapidly by supporting their housing activities. Programmes like the National Rural Employment Guarantee Scheme. There are a lot of things because of which one is proud of being an Indian. It is also believed by many that the liquidity added by various measures was sucked in by the oil bond operations of the government and the net impact on the liquidity was virtually negligible. Despite the projection of 1 to 2 per cent growth rate of the global economy. Bharat Nirman. the policy makers must ensure that the real incomes in the rural areas of the country continue to rise. CORRUPTION AND QUALITY OF GOVERNANCE That India is one of the most corrupt in the world is not the news. particularly in the USA. would certainly play a major role to bring the situation back to normal. increased income levels in the rural areas would generate demand on sustainable basis. In this way. the Indian economy hopes to post 7 per cent growth during 2008-09. According to the Transparency International. has come down to a comfortable level of less than 6 per cent. a large chunk of the Indian population is still not adversely affected by negative growth of the Indian stock markets. if implemented properly. integrity and moral values of life have been major casualties in recent . India ranks very high on the Corruption Perception Index. and corruption is one of them. the news is that there is no hope for any respite from this evil which is essentially an anti-poor phenomenon. Government may provide a good environment for the investors but the investors may wait for the recession to be over before taking major investment decisions. However. Besides. It is expected that after the first quarter 2009-10 things would begin to improve and the economy would again be back on the path of rapid development. Further. there are a lot more for which one is ashamed of being an Indian. One of the classical criticisms of the fiscal and monetary policy measures can be summed up in a proverbial expression that one can take the horse to water but cannot force it to drink. With a huge rural population base. The capital markets have stabilized even though at a lower level. Courage. which had touched the figure of 12 per cent. The inflation rate. the government may provide the framework of revival but the revival may actually take longer than expected.

and in process have become drain into the vortex and are partners in promoting corruption. business houses and underground mafia. Municipal services are heaped in corruption and inefficiency. most of them have now become conduit for slush money for their political bosses. with erratic electricity and water supply. In fact. thereby causing brain-drain. which are essential for a sound economy. which results in nexus between politicians. Even our space programmes have been jeopardized due to flight of scientific talent. and which is forever on holiday or holiday-mood. In the present economic scenario. Standards of education in government schools and colleges have gone down and several money spinning private schools and coaching centres have mushroomed. . Perennial shortage in our infrastructure network has stunted our industrial and commercial growth. whose sole aim is to fleece the public. The root cause of all this is our poor work-culture and corrupt practices. The bureaucracy has been made servile through carrot and stick policy. has caused serious overruns on development projects. smelly drains. the basic prerequisites of an efficient administrative system. Inspite of prolonged protection from foreign competition. which have now become endemic in our national character. As a natural aftermath of this degradation on moral values and quality of leadership. resulting in losses and chronic shortages of power. and dotted with rotting garbage dumps and stinking public toilets. We have seen how these qualities have nose-dived to absurdly low depths. They have forgotten that their first duty is to serve the people and not their self-interests or their political bosses.times. they have not developed the indigenous technology and have remained heavily dependent on outdated imported technologies to produce substandard products. This nexus associates are later reimbursed through scams and scandals by siphoning off public funds. integrity and uprightness of their predecessors—the Indian Civil Services cadre of yore. They have literally converted the governmental infrastructure as their personal fiefdom. Huge amounts received from international agencies for welfare projects are pilfered and shared among the nexus associates of the politicians in power. ports and means of communication. During elections. most of which cannot compete in international markets either in price or in quality. conducive and growth-oriented environment and good and reliable infrastructure are not available in our governing apparatus. Absence of right environments has failed the system and driven out our intellectuals to greener pastures in foreign lands. choked and overflowing sewers. everyday life of common citizens has become a living hell. resulting in series of scams and scandals. and with utter disregard to public interests. health. Our political system has proved to be the fountain-head of corruption. which has no work-culture worth the name. help of industrial and business houses and criminal elements are invited to fund the extravagant election expenses of candidates and use muscle power to muster votes. neglected roads and streets with potholes. They have forgotten the legacy of courage. Our leaders have lost total sense of responsibilities and propriety and have misused and abused the power and authority vested in them with impunity. housing and transport projects. Family-planning programmes have failed miserably. Inefficient and inapt administration. roads. The main aim of the bulk of our citizens is to make hay while the sun shines and not to worry about the nation and its plebeian designs. which has led to further inadequacies of our basic facilities—education. Our industrialists have also failed the nation.

We can. 300 people died in Bombay blast in 1993 and this was made possible because RDX could be smuggled by bribing Rs 20 lakh to certain Custom officials. The Human Development Report for South-Asia. because corruption is antipoor and anti-development. Some or all government offices are public. perhaps also contribute to this phenomenon—that nothing can be done to eradicate corruption and we have to resign to our destiny and fate. It is not true. However. in other words. They not only live in the fear of life and property. an argument can be made for food security and subsidy. while in the name of the poor. anti-poor and antinational. the entire nation talks about corruption but nobody is able to do anything about it. therefore.5% of the food grains and 36% of sugar in the Public Distribution System (PDS) gets diverted to black market. Like Mark Twain’s statement that every one talks about the weather but nobody seems to be able to do anything about it. the corrupt shopkeepers and their protectors. “India is a country of self-suppression and timidity”. of course. We can. He felt as AIDS is the result of uncontrolled sexual behaviour. but in a country where populism takes priority over good governance. see how. we have created such systems in our country that corruption has become endemic. Former Central Vigilance Commissioner. So much so. Anything that is anti-poor and hence anti-social must be on top of the government agenda to rectify the situation. provided there is a will to change the present state of affairs. its GDP will improve by 1. including the administration. In democratic set up. The fact is that Rs 20. and in a plural economy like ours. corruption of any kind deprives the common man from ‘climbing’ the next ladder and he either continues at the same or slides further down to a more pathetic condition. it doesn’t find even a mention. everyone is guaranteed the right to grow to one’s potential and create wealth by all legitimate means. Of course. What is corruption and why should any government and its people fight corruption? The World Bank definition of corruption is “Use of public office for private profit”. bureaucrats and the others is common in India.Corruption is an anti-poor phenomenon which can only be tackled by better governance and less government. pointed out that if India’s level of corruption could be brought down to the Scandinavian countries. the present state of affairs can be described in the words of Mahatma Gandhi whose understanding of India and patriotism cannot be challenged. more than Rs 6. he said. N. see that corruption is anti-economic development. corrupt officials of the PDS. Different scams have shown the linkage between anti-national elements. Many intellectuals who are painted by others ‘as full of self-loathing’. The next aspect to be understood is why the government and responsible citizens must fight corruption? The straight forward answer is. a lot can be done. 31.000 crores are made available for the politicians. Corruption is really anti-poor. Apart from its moral and ethical dimension. used to compare corruption with a disease like AIDS. Vittal. corruption is the outcome of uncontrolled financial behaviour. therefore. and the use of these offices for ‘private profit’ by politicians. It is often said that leaders of India have deliberately kept the people ignorant so that they won’t know how badly they are governed. . rich getting converted into super rich or filthy and vulgar rich. The present state of anarchy has made everyday life of the citizens a living hell.5 % and foreign bank investment by 12%. Perhaps.000 crores is the subsidy involved in the PDS and 30% leaks to the black market. This contributes to a common man’s low expectations from anything Indian. corruption is the major cause of poor becoming poorer and. they also have to make do with inefficiency in every government department.

and child and maternal mortality. Official figures indicate that at least 36% live below the austerely defined by the Planning Commission. Lessons from the past teach us that children are often the first to suffer—as is their chance to go to school. National budgets in poor countries are under pressure. An estimated 125 million additional people could be pushed into malnutrition and 90 million into poverty in 2010. Benin started out in 1999 with one of the world’s lowest net enrolment ratios but may now be on track for universal primary education by 2015. Some countries have achieved extraordinary advances. gender equality. So are poor households. With poverty rising. Reaching the marginalized demonstrates that declining government revenue and rising unemployment now pose a serious threat to progress in all areas of human development. there have been improvements in overcoming hunger.Mahatma Gandhi’s dream was to see India with every face without a tear. . in more than 60 years. The global financial crisis could radically change all this. We must reach the marginalized. Only inclusive education systems have the potential to harness the skills needed to build the knowledge societies of the twenty-first century. More widely. many poor and vulnerable households are being forced to cut back on education spending or withdraw their children from school. protect priority social spending and support progress in education. Millions of youths leave school without the skills they need to succeed in the workforce and one in six adults is denied the right to literacy. The situation is not hopeless everywhere. in many countries. As part of an effective response. Alas. The international community needs to identify the threat to education posed by the economic crisis and the rise in global food prices.6 billion annually in financing for education in 2009 and 2010. unemployment growing and remittances diminishing. Sub-Saharan Africa faces a potential loss of around US$4. it is need of the hour to provide sustained and predictable aid to counteract revenue losses. millions of our citizens do not have the elementary freedom from economic poverty. poverty. though. Rising poverty levels mean that the challenge of meeting basic human needs is a daily struggle. The 2010 Report is a call to action. increased participation in secondary and tertiary education and. Human development indicators are deteriorating. equivalent to a 10% reduction in spending per primary-school pupil. we have not been able to meet the aspirations and objective potential of our people. EDUCATION FOR ALL The gains achieved since the Education for All and Millennium Development Goals were adopted in 2000 are undeniable: great strides have been made towards universal primary education. Government budgets are under even greater pressure and funding for education is especially vulnerable. we are only technically free but not truly free. underscores that there is a long way to travel. As famous Nobel Laureate Amartya Sen will like us to understand. 2010. Global Monitoring Report. Today. There are still at least 72 million children worldwide who are missing out on their right to education because of the simple fact of where they are born or who their family is. social deprivation or political tyranny.

compared with 36% of boys. but what – and how well – they learn. Around 54% of children out of school are girls. fewer than half of grade 3 students had more than very basic reading skills. Between 1985–1994 and 2000– 2007. including Ghana. Literacy remains among the most neglected of all education goals. There were 72 million children out of school in 2007.The share of girls out of school has declined from 58% to 54%. The urgent international measures required include: increased concessional financial support through bilateral aid and the World Bank’s International Development Association (IDA). The 2007 Trends in International Mathematics and Science Study (TIMSS) found that average students in several developing countries. almost 12 million girls may never enrol.9 million new teacher posts will be required to meet universal primary education by 2015. with UNESCO coordinating an international programme to these ends. In the Dominican Republic. In some countries in sub-Saharan Africa. International assessment exercises point consistently towards severe global disparities. However. linked to household disadvantage and the learning environment. performed below the poorest-performing students in countries such as Japan and the Republic of Korea. Ecuador and Guatemala. Education Quality The ultimate measure of any education system is not how many children are in school. Learning achievement deficits are evident at many levels. young adults with five years of education had a 40% probability of being illiterate. The problem is not just one of relative achievement. and the gender gap in primary education is narrowing in many countries. There is growing evidence that the world is moving more quickly to get children into school than to improve the quality of the education offered. Malnutrition affects around 175 million young children each year and is a health and an education emergency. much need to be done. with about 759 million adults lacking literacy skills today. Some 1. to its current level of 84%. Millions of children are leaving school without having acquired basic skills. Two-thirds are women. an emergency pledging conference during 2010 to mobilize additional aid for education. Inequalities within countries. budget monitoring to pick up early warning signs of fiscal adjustments that threaten education financing. Low learning achievement stems from many factors. Absolute levels of learning are desperately low in many countries. Business as usual would leave 56 million children out of school in 2015. In Yemen. a review of the implications of the global economic downturn for the financing of development targets in advance of the 2010 Millennium Development Goals summit. the adult literacy rate increased by 10%. Indonesia and Morocco. even when they complete a full cycle of primary education. nearly 80% of girls out of school are unlikely ever to enrol. Schools in many developing countries are in a poor state and teachers . are also marked. In sub-Saharan Africa. The number of adult female literates has increased at a faster pace than that of males. revision of the IMF’s loan conditions to ensure consistency with national poverty reduction and Education for All priorities. Evidence from South and West Asia and from sub-Saharan Africa suggests that many children are failing to master basic literacy and numeracy skills. with a commitment to increase IDA replenishment from US$42 billion to US$60 billion.

in an effort to fulfil the educational needs of the country. More equitable teacher deployment is also vital: all too often. On top of the list is Norway. using constant monitoring and early-grade reading assessments. encompassing access. an average of the gender parity indexes of the primary and secondary gross enrolment ratios and of the adult literacy rate. is the most recent one. technical and vocational education. Several countries.are in short supply. including Brazil and Mexico. The EDI value for a given country is the arithmetic mean of the four proxy indicators. higher education. measured by the literacy rate for those aged 15 and above. The literacy rate has increased from 18. robust humanist and philosophical thought and creativity. measured by the gender-specific EFA index (GEI). specifically for the diverse societies and cultures of the country. The Education for All Development Index (EDI) provides a composite measure of progress. the commitment undertaken by governments at the World Education Forum in Dakar was to sustain advances on all fronts. (2) adult literacy. followed by Japan and Germany. with 1 representing full EFA achievement. Free and compulsory education to all children up to the age of fourteen years is now a constitutional commitment in India. This has been further confirmed by the results of the Census 2001. measured by the primary adjusted net enrolment ratio (ANER). the country has built up during the last 50 years a very large system of education. measured by the survival rate to grade 5.84% in 2001. India is ranked 105 on the EDI index. the poorest countries will need to recruit some 1. have introduced programmes targeting schools serving disadvantaged communities. It aimed at achieving universal elementary education of satisfactory quality by 2010. This is despite the fact that during the major part of the last five decades there has been exponential growth of the population at nearly 2% per annum. The Indian Constitution resolves to provide quality education to all and. Governments can also raise standards by spotting problems early. secondary education. It falls between 0 and 1.9 million additional primary school teachers.2 million in sub-Saharan Africa. The government of India has initiated a number of programmes to achieve the goal of Universalisation of Elementary Education (UEE). launched in 2001. (3) gender parity and equality. equity and quality. By 2015. Because of data availability constraints. Education Scenario of India Literacy in India has made remarkable strides since Independence. including 1. the poorest regions and most disadvantaged schools have the fewest and least-qualified teachers. and has created a vast body of men and women equipped with a high order of scientific and technological capabilities. The SSA is expected to generate demand for secondary education in view of which the government of India has recently launched the Rashtriya Madhyamik Shiksha Abhiyan (RMSA) to improve universal access and quality at the Secondary and Higher . (4) quality of education. to create a good learning environment for all children. it includes only the four most easily quantifiable goals. attaching an equal weight to each: (1) universal primary education. the government has chalked out different educational categories: elementary education. Education for all Development Index (EDI) While each of the six Education for All goals adopted in 2000 matters in its own right. Despite serious handicaps of means and resources. adult education.33% in 1951 to 64. from among which the Sarva Shiksha Abhiyan (SSA).

concerted efforts have been made towards strengthening the Educational Management Information System (EMIS) for the elementary level of education.000 habitations has a primary school within a walking distance of one km and about 85 percent of the rural population has an upper primary school within a walking distance of three km.110 lakh children as compared to 192 lakh in 1951. While the monitoring framework for the SSA is developed separately. poses a formidable challenge to India: the numbers of children dropping out. sectional and caste disparities in UEE. . For successful implementation of any educational programme. which will enable it to possess self-equipped citizens holding a key to the progress and development in all spheres. in India. along with access and retention. a large universe of working children exists such as the street children. the corresponding increase in upper primary schools was from 0.15 lakhs in 1950-51 to 6.1 lakhs in 1997-98. Number of primary schools increased from 2. These 8. Also. Given the demographic pressures the numbers are likely to increase further. regional.3 million are adult illiterates in the age group 15.17 lakh schools together enrolled 1.e. the quality of education provided to them is questionable. The elementary education system of India has expanded into one of the largest in the world.Secondary stages of education. The country has the dubious distinction of having the largest number of illiterates and out of school children in the world—30% of the world’s adult illiterates (300 million) and 21. Universalisation of elementary education thus. teachers are inadequately trained and have lack of motivation. An estimated 95 percent of the rural population living in 8. effective monitoring and an efficient information system are essential. At least 24 million children in the age group 6-14 are out of school of whom about 60% are girls.14 lakhs to 1. More than 150 million children are currently enrolled covering around 90 percent of the children in the age group of 6-14 years. Quality of education is poor. Universal provision of education has been substantially achieved at the primary stage (classes I-V). Despite such significant achievements in the recent years. neglected and destitute children. the District Information System for Education (DISE). A significant proportion of children continue to drop out due to socioeconomic and cultural factors as also due to lack of adequate infrastructure. India has significant requirements and goals set for it. it is realized that there are serious problems of gender.87 percent of out-of-school children. The District Elementary Education Plans (DEEP) across the country are being developed primarily based on the data generated though the information system developed for the SSA. shortage of teachers and unsatisfactory quality of education provided. A major concern is to improve the skills and motivation of teachers. children of sex workers and children practising as sex workers. not attending school regularly and never enrolled are immense. i.26. Many of these have been targeted through non-formal initiatives but never main-streamed. Recent surveys on literacy rates indicate a phenomenal progress in the nineties and indicate a significant rise in the literacy level.85 lakhs.35 of whom about 62 percent are women. promoting the participation of communities in the running of schools and enrolling/retaining girls/working children of urban poor and children with special needs in schools. Besides. about 121.

which shows that investment in education in even the poorest households is high. It is feared that the more we industrialize. To begin with. However. It has been established beyond doubt that besides its social and cultural dimensions. A weak system endangers the life of the intervention. The problem of drop-outs will need to be mainstreamed together with the quality of education at the primary. This aspect has also been realised by the community at large and education is now being considered important. school infrastructure. secondary and technical levels and for this the rural sector will have to be mobilized and encouraged in the cause of education. its sustainability and impact. Given the requirements in purely quantitative terms it is important to understand the non-negotiables for their achievement by 2025. greater will be the need for value education at all levels. It will be critical to have at least a growth rate of 9-10 per cent per year in the economic sphere. there is a need to explore private and other investments. it needs to be underlined that the present 3. and . This is even highlighted by the analysis of household income versus expenditure. it is important to understand the quantitative requirements of the sector concerning issues of enrolment. secondary and technical levels. People have understood the economic value of education and are now ready to invest. and teacher availability etc. This is also seen in the fact that many youths are opting out of labour force and are spending larger period on education. the Research and Development area. Linked to the overall issue of education is the sub-issue of value education. has to be focused.6 percent of GNP is less than: (a) the requirement of the education system to provide reasonable levels of quality education to all the students enrolled presently. For this there has to be 100 per cent literacy and 100 per cent enrolment at primary. is not meant to release the State from its financial commitments. Along with the issue of investment. Economic development of our country is built around educational development.This implies that all the provisions stated in the NPE must be realized by 2025. which have been substantial in India. includes universal provision of resources. (b) the requirements of the system to provide universal elementary education of eight years for every child of the age-group 6-14. development. This area is critical as it provides base to the planning process. especially the research skills. In terms of allocation for education. necessitating the requirement for human skills. This implies that it will be important to raise money from private sources in order to ease pressure on public spending. we have been led to believe that India’s values are the best. quick achievement. Although. of course. with respect to the attainment of the requirements. education is also an economic and political investment yielding long-term benefits. as universalisation of elementary education in a comprehensive sense. and consequent growth in secondary and higher education. It is not only justifiable but also desirable to focus on this investment in order to gain maximum benefit. There is considerable data which shows that education is based on economic development and vice versa. the quality issue also demands attention at all levels of education. Thereafter. In this context. This. the western values are associated with progress. There will have to be no compromise with respect to enrolment and retention of children in schools. it will be logical to analyse the scenario that will exist in the year 2025. links it up to the implementation and subsequently highlights areas for reform. which is extremely weak. Thus. the government’s capacity to pay for education is limited.

The rapid growth momentum in the post-FRBMA period helped change the composition of taxes. rationality. Traditionally. This reflected in part the reform of the tax structure through lower rates in indirect taxes and the levels of the tax base. but the macro-economy-wide impact of the crisis underscored the importance of accounts data in tandem in such assessments. It has to be understood that there is no particular set of values which guarantees success and that the societal values must match with the organizational values and hence. A low and stagnant tax-GDP ratio characterized Central government revenues for a considerable period since 1990-91.5 per cent. they were at 55. the rapid and significant fiscal consolidation achieved in the post-FRBMA period up to 2007-08 was indeed an important achievement that enabled greater fiscal space for a macro-economic policy stance to counteract the impact of the global economic crisis. will have to be inculcated in education at all levels. which are driven purely by expenditure compression.hence are being readily imbibed by the students. In India.7 per cent over 2007-08 levels and 17. In its report.1 per cent in 1990-91 to reach 49. Total expenditure was placed at Rs 8. intellectualism etc. In this context. the operation of automatic stabilizers and discretionary fiscal policies pursued to obviate the adverse impact of the global financial and economic crisis was made possible by the space available and the largely cyclical nature of the fiscal deficit.81. The front loading of Plan expenditure was evident in the rise in its . This facilitated use of both tax and expenditure measures in the expansionary fiscal policies to boost demand. assessment of public finances was confined to analysis of fiscal indicators. the expansionary fiscal stance was continued in the Budget for 2009-10. As the impact of the crisis continued through 2009-10. the progress in fiscal consolidation in India is different from the typical models elsewhere. respectively. with fiscal deficit declining to 5. following the Fiscal Responsibility Budget Management Act (FRBMA) mandate. in 2008-09. which implied a growth of 23. PUBLIC FINANCE AND FISCAL DEVELOPMENTS The fiscal space generated in the 2004-05 to 2007-08 period. largely driven by the steep fall in capital expenditure. As a proportion of GDP. India’s cultural values will need to be integrated with education. Given the relative levels of shares of private final consumption expenditure and government consumption expenditure. humility. such expansion could only be a short-term measure and the Medium Term Fiscal Policy Statement presented along with the Budget for 2009-10 favoured a resumption of the fiscal consolidation process. As such.1 per cent in 2003-04 to 14. values such as wisdom. mitigated on effects of global financial and economic crisis in 2008-09 through an expansionary fiscal stance to boost aggregate demand. the thirteenth Finance Commission has traced the path of fiscal consolidation for the Centre and States. As a proportion of the GDP.4 per cent in 2007-08.469 crore in 2008-09. the reductions in fiscal deficit in the period 2003-04 to 2007-08 were made possible in equal measure by higher tax revenues and expenditure compression. total expenditure fell from a level of 17.5 per cent of the gross domestic product (GDP) and 4.9 per cent in 2007-08.4 per cent over that assumed in 2008-09. In advanced economies. As a proportion of gross tax revenue.0 per cent of the GDP in 2010-11 and 2011-12. direct taxes rose from a level of 19. albeit a gradual one. deepen the process of rationalization of taxes and widen the base. The resumption of the path of fiscal prudence would complement the recovery process in the near term and lay the foundation for reviving the growth momentum in the long term.

the increase in total expenditure was of the order of 23. In 2009-10.proportion to the GDP from a level of 4. rising interest payments reflect past consumption and do not contribute to current productive uses and are primarily tax financed. the above below-the-line issuance of oil and fertilizer bonds was of the order of 1.6 per cent in 2007-08.7 per cent in 2009-10. In 2008-09 and 2009-10.1 per cent in 2007-08 to 4. Interest payments as a proportion of revenue receipts declined from a level of 52.4 per cent of the GDP. Within total expenditure. the major components of the expansion were interest payments. in view of the policy-driven expansion process it would be useful to understand the magnitude and direction of the expansion. the reversal in major fiscal deficit indicators in 2008-09 and 2009-10 was a policy-driven stimulus to counter the demand slowdown.7 per cent and 43.7 per cent of GDP in 2008-09. social services. Besides. Interest payments appropriated substantial proportions of revenue receipts and the efforts in the FRBMA period were to reduce the level of deficits and incremental assumption of debt to contain the interest burden. growth in capital expenditure was more stable. In 2008-09. large variations amongst States. They are a drag on the present generation.2 per cent in 2008-09 and were budgeted at 1.2 per cent. They were at the 35 per cent level in 2008-09 and were budgeted at 36.6 per cent of the Gross State Domestic Product (GSDP) and Mizoram having a high fiscal deficit of 14.7 per cent of the GSDP in 2005-06. with the level of fiscal deficit at 2. Finances of State governments Following the adoption of Fiscal Responsibility Legislations (FRLs). Adjusting for one-off distortions in capital expenditure. the main components of expenditure significantly higher than their 200708 levels were major subsidies. like redemption of securities of the National Small Savings Fund in 2004-05 and the expenditure on acquisition of State Bank of India (SBI) shares from the Reserve Bank of India (RBI).1 per cent in 1998-99 to a level of 31. defence. There were. had focused on the compression in terms of proportions of GDP. Plan expenditure and economic services.2 per cent in the previous four years. major budgetary subsidies rose from 1. Inter-generational equity concerns were one of the key objectives of institutionalizing the fiscal consolidation process in the form of the FRBMA. While traditionally assessment of the trends in expenditure. growth in capital expenditure was again lower than that in revenue expenditure. To an extent. The global commodity price shock (particularly in crude petroleum) that preceded the global financial crisis in 2008-09 led to a burgeoning of the subsidy bill and a sharp rise in the below-the line issuance of bonds to oil and fertilizer companies. particularly in the context of the fiscal consolidation process.2 per cent. The rise in the levels of gross market borrowings in 2008-09 and 2009-10 has resulted in a reversal of the trend towards fall in average cost of borrowings. In the post-FRBMA period (2004-05 to 2007-08). As a proportion of GDP.6 per cent in 2003-04 to 2. the combined finances of the States exhibited a faster than anticipated turnaround in 2005-06. over the levels in 2007-08. with Assam having a fiscal surplus of 0. States combined posted a revenue surplus in 2006- . which compared favourably with the 12. however. announced the intention to move towards a nutrient-based subsidy regime in respect of fertilizers and ultimately towards direct cash transfers and the setting up of an expert to advise on a viable and sustainable system of pricing for petroleum products. recognizing the importance of institutional reforms. social services and economic services.7 per cent in 2009-10.9 per cent in 200809. Thus. average annual/compound growth in total expenditure was 11. The Budget for 2009-10. respectively.

2 per cent of the GDP. With total disbursements remaining at more or less the same levels in four years ending 2007-08.13. So far. the ratio of outstanding liabilities to the GDP after falling from a level of 61. there was a growth of 15. The information provided is also useful for Bank . 2004 and outstanding as on March 31. there has been a rise in the assumption of net incremental liabilities as a result of the expansionary fiscal policy stance. fiscal and revenue deficit for 2009-10 is placed at 9.039.7 per cent in 2009-10. has risen marginally to 56. Conclusion Typically. the buoyancy in Central taxes. Reflecting the overall expansion to stimulate demand.2 per cent of the GDP was budgeted in 2009-10. States have been granted debt waivers for an aggregate amount of Rs 22. which grew by 26 per cent.688. the combined levels of deficit were much lower than the levels (sum of Centre and States) mandated by the FRBMA and State-level FRLs.5 crore. However. With the relaxation in State-level fiscal targets to obviate the adverse impact of the global crisis. mainly market borrowings. The Debt Consolidation and Relief Facility (DCRF) has two components: (i) consolidation of Central loans (from the Ministry of Finance) contracted till March 31.3 per cent in 2008-09. In fact. the rule focused on incremental assumption of liabilities. From 2005 to 2009.7 and 5. The full picture of public finances and their impact on the macro-economy is best analysed through the levels of deficits in the consolidated General Government. In India. Benefits under the DCRF helped States by easing debt and interest pressures and also incentivized States to follow the path of fiscal correction. the fiscal responsibility rules world over are anchored in balanced budget and debt targets with clear differences in framework across advanced economies and developing countries. As a result.601. continues to be the main component of outstanding liabilities. Central loans to 26 out of 28 States have been consolidated to the extent of Rs 1. for which an assessment is made annually.07.0 per cent level mandated by the FRLs. In 2008-09. the combined revenue and fiscal deficit came down.4 crore and interest relief of Rs 18. the higher levels of transfers and the scheme of Debt Consolidation and Waiver linked to fiscal consolidation. STATE OF INDIA’S ECONOMY Readers will find this feature useful in their preparations for Civil Services Exam and other similar UPSC and SSC exams.6 per cent of the GDP and fiscal deficit of 3.0 per cent in 2004-05 to reach a level of 21.5 per cent in 2009-10. revenue receipts of the consolidated General Government rose from a level of 19.2 per cent in 2007-08. Consolidation of Central loans has given interest relief to States.6 per cent of the GDP but was still well below the 3.6 per cent in non-tax receipts. 2005 and (ii) provision of interest relief and grant of debt waiver to States based on their fiscal performance. with the revised GDP series (2004-05) released by the CSO. since 2008-09. The record of fiscal consolidation of the States combined was indeed remarkable and was facilitated by the growth in their own revenues following the successful adoption of State-level Value-Added Tax (VAT). As a proportion of the GDP. fiscal deficit went up to a level of 2.3 per cent in States’ own tax revenues and 26. By and large this rule was adhered to in the post-FRBMA period.1 crore.6 per cent in 2004-05 to 56. under the FRBMA. revenue deficit of 0. with higher levels of disbursements. Internal debt. They were budgeted at 20. Debt waiver is granted to States based on their fiscal performance.

In the second half of 2008-09 there was a significant slowdown in the growth rate. While the growth rates of private and government final consumption expenditure have dipped in private consumption demand. the economy is expected to grow at 7. wholesale price index (WPI) headline inflation in December 2009 was 7. The fiscal year 2009-10.based nature of the recovery created scope for a gradual rollback. A sub-normal monsoon added to the overall uncertainty.7 per cent respectively.9 per cent in 2009-10. which was the consequence of subnormal monsoons. On a year-on-year basis. it has come about despite a decline of 0. Indeed. with the industrial and the service sectors growing at 8. but for food items (primary and manufactured). and Bank Clerk Recruitment exam preparations as also any competitive exam [MBA. The broad. First. The emergence of high double-digit food inflation during the second half of the financial year 2009-10 was a major cause of concern. reaching 6. Third. which justify optimism for the Indian economy in the medium to long term. after a decline nearly twelve continuous months.8 per cent of GDP in 2009-10. There has also been a turnaround in merchandise export growth in November 2009. released by the Central Statistical Organisation (CSO).O. in due course. so as to put the economy back on to the growth path of 9 per cent per annum.P. There was apprehension that the slow-down will continue to affect the economy thus making 2009-10 a difficult year.3 per cent.9 per cent. with a combined weight of 25. not only in terms of overall growth figures but. following the financial crisis that hit the world in 2007. posted a remarkable recovery. NDA.4 per cent in the WPI basket. who took a calculated risk by providing substantial fiscal expansion to counter the negative fallout of the global slowdown. manufacturing growth has more than doubled from 3. more importantly. This recovery is impressive for at least three reasons. which has been sustained in December 2009. there has been a recovery in the growth rate of gross fixed capital formation. A significant part of this inflation was . at the end of the financial year. it was 19.2 per cent in agricultural output. which had declined significantly in 2008-09 as per the revised National Accounts Statistics (NAS). which had seen continuous decline in the growth rate for almost eight quarters since 2007-08. of some of the measures undertaken to overcome global slowdown effects on Indian economy. there has been a pick-up in the growth of private investment demand. The downside of the fiscal stimulus was that India’s fiscal deficit increased. Despite all odds the economy. it fore-shadows renewed momentum in the manufacturing sector.8 per cent.2 per cent in 2008-09 to 8. thus. However. Second. CDS. As per the advance estimates of GDP for 2009-10.2 per cent in 2009-10. IES etc] in which questions on General Awareness or General Knowledge and Current Affairs are asked. IFS.2 and 8. 2009-10 turned out to be a year of reckoning for the policy makers. in terms of certain fundamentals. began on a difficult note. The real turnaround came in the second quarter of 2009-10 when the economy grew by 7.

The advance estimate of GDP growth at 7.268 crore and Rs 61. and electricity. real estate and business services have retained their growth momentum at around 10 per cent in 2009-10. manufacturing.9 per cent.91. there are also changes in the expenditure estimates of the GDP. at constant prices. Seven out of eight sectors/sub-sectors show a growth rate of 6. the difference ranges from 3. widening of coverage. Similarly.2 per cent over 2008-09. The contribution of the agriculture sector to the GDP at factor cost in 2004-05 has declined from 17. respectively. is estimated at Rs 47. With the downside risk to growth due to the delayed and sub-normal monsoons having been contained to a large extent.064 crore. except for 2007-08 where it has been revised upward from 9. Financing. It includes changes on account of certain refinements in definitions of some aggregates. the economy responded well to the policy measures undertaken in the wake of the global financial crisis.6 per cent in 2009-10. hotels. However.5 per cent or higher. the growth rate of community. 64.0. The corresponding figures at current prices are Rs 57.1 per cent in 2004-05 to 6 per cent in 2008-09. Overall GDP growth The CSO has effected a revision in the base year from 1999-2000 to 2004-05. In terms of sectoral shares. there are some changes in growth rates at sectoral level and in the level estimates of GDP.2 per cent for 2009-10. through the likelihood of a better-thanaverage rabi agricultural season.4 per cent in the old series to 15.due to supply-side bottle-necks in some of the essential commodities. Sectors. that of unregistered manufacturing has increased from 4. though it continues to be around its pre-global crisis medium-term trend growth rate.9 per cent in the new series.178 crore.9 to 5.2 per cent to 8. the share of agriculture and allied sectors in GDP at factor cost has declined gradually from 18. is placed at Rs 44. gas and water supply have significantly improved their growth rates at over 8 per cent in comparison with 2008-09.75 projected nearly a year ago in the Economic Survey 2008-09. social and personal services has declined significantly. while the contribution of registered manufacturing has declined from 10. insurance. There is also an increase in the contribution of real estate. 67. While there are no major changes in the overall growth rate of GDP at constant 2004-05 prices. the share of industry has remained the same at . precipitated by the delayed and sub-normal southwest monsoons. In the case of level estimates of GDP at current prices.53. As a result.142 crore. During the same period.9 per cent in 2004-05 to 14. transport and communication have also improved their growth rates over the preceding year.9 per cent in the new series. The exception is agriculture and allied sectors where the growth rate is estimated to be minus 0. While the GDP at factor costs at constant 2004-05 prices.0 to 9. inclusion of long-term survey results and the normal revision in certain data in respect of 2008-09. ownership of dwellings and business services from 8. The construction sector and trade. falls within the range of 7 +/. including mining and quarrying.9 per cent in the old series to 9. The recovery in GDP growth for 2009-10 is broad based. the GDP at market prices.4 per cent.2 per cent. though to a lesser extent.

production of foodgrains is estimated at 98.83 million tonnes in 2009-10. measured in terms of GDP at constant market prices.3 per cent in 2008-09 as against 39. however.28 million tonnes in 2006-07.3 per cent in 2009-10.08 per cent than that in per capita income at 6.52 per cent. though with occasional aberrations. beverages and tobacco falling behind the overall growth in private consumption expenditure. At the same time. Per capita growth The growth rates in per capita income and consumption. estimated to grow by 5.7 per cent on the new base. In 2009-10 a growth of 4.6 per cent in 2004-05. With growth in private expenditure on food.9 per cent to 6. growth in government final consumption expenditure was revised downwards from over 20 per cent in 2008-09 on the old base to 16. have declined since 2008. covering only the kharif crop.15 million tonnes for 2009-10.2 per cent in the earlier base to 4 per cent in the revised base for 2008-09. per capita consumption growth as captured in the private final consumption expenditure (PFCE) shows a declining trend since 2007-08 with its growth rate in 2009-10 falling to onethird of that in 2007-08.9 per cent in 2008-09 to 69. while that of services has gone up from 53. which are gross measures of welfare in general. Agriculture Total foodgrains production in 2008-09 was estimated at 233.1 per cent in 2007-08 to 3. the growth in expenditure on transport and communication and miscellaneous goods and services has been increasing. However. at constant 2004-05 prices. as against the fourth advance estimates of 117. the share of expenditure on food items has gradually been declining over the years. As per the CSO data.6 per cent in 2009-10. Whilegrowth of the PFCE in 2008-09 was revised upward from 2. has declined from a high of 8. In the agricultural season 2009-10. has brought about significant revision in the expenditure estimates of the GDP for 200809. with the result that together they account for nearly the same share in total private consumption as the expenditure on food items. both private as well as government in GDP at market prices. it was 35. These year to year differences in growth rates can be explained by the rising savings rate and also the rise in tax collections that have been observed in some of these years.2 per cent in 2009-10. As per the first advance estimates.2 per cent in government final expenditure. It is. The average growth in per capita consumption over the period 2005-06 to 2009-10 was slower at 6. the overall share of consumption expenditure. .78 million tonnes in 2007-08 and 217.70 million tonnes for the kharif crop in 2008-09 and a target of 125.1 per cent is expected in private final expenditure and 8.2 per cent in 2004-05 to 57.8 per cent. Aggregate demand and its composition The change in the base year. the growth rate of gross fixed capital formation in 2008-09 has also undergone a revision. While the growth in per capita income.about 28 per cent.7 per cent in 2008-09 and then recovered to 5. from 1999-2000 to the new base of 2004-05. There is a significant decline in the growth of consumption expenditure in 2009-10. has declined only marginally from 70. the impact of the delayed and sub-normal monsoon is reflected in the production and acreage data for kharif crops. At the same time.88 million tonnes as against 230. This is a reflection of the slowdown in the overall GDP growth. It was revised downward from 8.2 per cent in 2009-10.

Following the NAS classification.0 per cent in 2007-08 to 1.4 . as against the 2009-10 target of about 9. has grown at the rate of 8.18 lakh ha in the area covered under foodgrains. as against 3.165 km ofnational highways under various phases of the National Highway Development Project (NHDP). real estate and business services.5 per cent of GDP at market prices as against 36. The domestic supply of crude oil remained around 34 million metric tonnes (mmt) and natural gas at about 32 billion cubic metric tonnes during the past five years.9 per cent in 2009-10.2 per cent. significantly up from 0. the IIP industrial growth is estimated at 7. The fall in the rate of GDS has mainly been due to the fall in the rates of savings of the public sector (from 5. The service sector which has been India’s workhorse for well over a decade has continued to grow rapidly. in particular. Industry and Infrastructure The cyclical slowdown in the industrial sector. Almost the entire decline in this acreage was confined to the kharif rice crop.7 per cent in 2009-10.490 km. Similarly. it comprises the subsectors trade.4 per cent in the previous year. was arrested at the beginning of 2009-10. Savings and investments Gross domestic savings (GDS) at current prices in 2008-09 were estimated at Rs 18.7 per cent for the period April-November 2009-10. The manufacturing sector. As against a growth of 9. In terms of acreage. social and personal services.51 million tonnes over 2008-09. attests well to its potential. have also shown signs of recovery in 2009-10.285 km have been awarded up to end November 2009. amounting to 32. as against the stipulated target of developing about a 3. the achievement up to end November 2009 has been about 1. After the first two months of 2009-10. During 2009-10. insurance. civil aviation and roads. hotels. which began in 2007-08 and got compounded by the global commodity price shock and the impact of the global slowdown during the course of 2008. projects totalling a length of about 1.9 per cent in 2008-09. and community. led by the robust growth momentum of telecom services and spread across power. the kharif 2009-10 season saw a decline of nearly 6. In 2009-10.5 per cent or 46.5 mmt in 2008-09. the domestic availability is expected to improve. transport and communications.800 km for awarding projects under various phases of the NHDP. electricity generation emerged from the lacklustre growth witnessed in the previous year and equalled its performance in 2007-08. That this was achieved despite constraints imposed by the inadequate availability of coal and the dismal hydel generation scenario due to the sub-normal monsoon.Overall production of kharif cereals in 2009-10 has shown a decline of 18. which is about 11 per cent higher than the actual crude oil production of 33. financing. there were clear signs of recovery. With 15 new oil and gas discoveries during 2009-10. the projected production for crude oil is 36. Core industries and infrastructure services. coal and other infrastructure like ports. Some of this decline in acreage may have been made up by the increased acreage in the rabi season. While the CSO’s advance estimates place industrial-sector growth at 8. In the current fiscal.11.6 per cent during the second half of 2008-09.8 per cent in 2008-09 it grew at 8.585 crore.7 mmt.

6 per cent in 2007-08 and 2008-09. The sectoral investment rate is a useful indicator of the direction of new investments. it plunged to -2. In respect of food articles. the rate of saving has remained at the same level of 22.757 crore in 2008-09.4 per cent in December 2009. assisted in part by the large statistical base effect from the previous year.44.e. The rate of GDS on the new series increased from 32.328 crore in 2008-09 and at constant (2004-05) prices. as also for some other items.5 per cent and 26.4 per cent recorded in 2006-07.4 per cent in 2008-09 as a result of the external shock-led slowdown. The rate of gross capital formation at current prices rose from 32.7 per cent) at 2. not taking into account the comfortable situation in respect of food stocks and the possibility of an improved rabi crop. Gross domestic capital formation (GDCF) at current prices (adjusted for errors and omissions) increased from Rs18.per cent in 2008-09) and private corporate sector (from 8. from setting in.7 per cent in 2007-08. Prices and Inflation The year-on-year WPI inflation rate was fairly volatile in 2009-10. It was 1.7 per cent in 2007-08 to 8.899 crore in 2007-08 to Rs19.65. there has been a welcome rebound in the growth rate of investment in the agricultural sector. The delayed and erratic monsoons may also have prevented the seasonal decline in prices.4 per cent in 2008-09).6 per cent in previous year. delay in the market release of imported raw sugar may have contributed to the overall uncertainty. it could be argued that excessive hype about kharif crop failure.9 per cent in 2008-09. the composite non-food inflation within the manufactured group of the WPI (with a weight of 53. precipitated by the delayed and sub-normal south-west monsoons as well as drought-like conditions in some parts of the country. over March 2009) it was 18. was lower than the 6.7 per cent in 2004-05 to 37.8 per cent in December 2009 was significantly higher than 8. which grew at 16. thereby . except pulses. Year-on-year inflation in the composite food index (with a weight of 25. In the case of sugar. At sectoral level. In respect of the household sector. This is in contrast to the growth rate of 1.2 per cent and on fiscal-year basis (i.2 per cent in March 2009 and then declined continuously to become negative during JuneAugust 2009.4 per cent in 2007-08 before declining to 32. may have exacerbated inflationary expectations encouraging hoarding and resulting in a higher inflation in food items. it decreased from Rs16.5 per cent in 2009-10.7 per cent in 2004-05 to 37. A significant part of this inflation can be explained by supply-side bottlenecks in some of the essential commodities. At the same time.08 to Rs15. It turned positive in September 2009 and accelerated to 4. This is supported by the estimates on shortfall in production/availability of major food items in 2009-10 for rice and wheat. While the overall growth of investment in India was in the range of 15 to 16 per cent per annum during the last few years. as against the old series where it rose from 31.7 per cent recorded in previous year.22.3 per cent.0 per cent in 2007-08 and 2008-09 respectively.57. normally seen during the period from October to March for most food articles other than wheat. At the same time.4 per cent) at 19.8 per cent in November 2009 and further to 7.3 per cent in December 2009.7 per cent in 2007-08 before declining to 34. For March to December 2009 period WPI inflation was estimated at 8 per cent.226 crore in 2007.2 per cent in 2004-05 to 36. inflation on year-on-year basis in December was 19.

With the deepening of the global recession. except loans and banking capital that comprise net capital flows.6 per cent in 2006-07 and then declined to 5. before rising again to 7. However.2 per cent in 2008-09. Unlike the WPI.2 billion during H1 (April-September) of 2009 as compared to US$ 64. increased from 4.6 per cent in 2009-10 as per the advance estimates. led by the Asian economies especially China and India. assets and commodity prices are more buoyant.1 billion in AprilSeptember 2009. The trade deficit was lower at US$ 58. Net capital flows to India at US $ 29.5 billion during April-September 2008.0 billion during AprilSeptember 2009 (US $ 20. showed improvement during April-September 2009 from the level in the corresponding period of the previous year. Due to large inward FDI. The current account deficit increased to US $ 18. Net inward FDI into India remained buoyant at US$ 21. The implicit deflator for GDP at market prices defined as the ratio of GDP at current prices to GDP at constant prices is the most comprehensive measure of inflation on annual basis. has shown signs of recovery in fiscal 2009-10. despite a lower trade deficit. as measured by the aggregate deflator for GDPMP. As per the latest data for fiscal 2009-10. the beginning of 2009-10 . the GDP deflator also covers prices in the services sector which now accounts for well over 55 per cent of the GDP. exports and imports showed substantial decline during April-September (H1) of 2009-10 vis-à-vis the corresponding period in 2008-09. External-sector Developments The global economy.allowing prices to rise to unacceptably high levels in recent months. the net FDI (inward FDI minus outward FDI) was marginally higher at US$ 14. All the components. Instead. Overall inflation. the other indicators of economic activity such as capital flows. Portfolio investment mainly comprising foreign institutional investors’ (FIIs) investments and American depository receipts (ADRs)/global depository receipts (GDRs) witnessed large net inflows (US $ 17. While global trade is gradually picking up. The net invisibles surplus (invisibles receipts minus invisibles payments) stood lower at US$ 39.7 billion in April-September 2008) reflecting better growth performance of the Indian economy. the government did not fix an export target for 2009-10.6 billion in April-September 2009.8 billion in April-September 2008.3 per cent in 2007-08.4 billion in April-September 2008 mainly on account of decline in oil import.6 billion in April-September 2009 remained higher as compared to US $ 12. mainly due to the lower net invisibles surplus.5 billion in April-September 2008) due to large purchases by FIIs in the Indian capital market reflecting revival in growth prospects of the economy and improvement in global investors’ sentiment. reflecting better growth performance of the Indian economy.0 billion in April-September 2008.7 per cent in 200506 to 5. there has been improvement in the balance of payments (BoP) situation during H1 of 2009-10 over H1 of 2008-09. reflected in higher net capital inflows and lower trade deficit. as compared to US $ 15. It has been estimated at 3. the Foreign Trade Policy (FTP) 2009-14 set the objective of anannual export growth of 15 per cent with an export target of US$ 200 billion by March 2011.9 billion) in April-September 2009 (net outflows of US $ 5. Given the uncertain global context.6 billion during April-September of 2009 as compared to US$ 48.

Trade deficit fell by 28.3 per cent primarily on account of the volatility in gold prices. but also created the space for the revival of private investment demand in the second half of the year. This significant turnaround is due to the low base figures in November 2008 (at $11.5 billion.3 billion (64. because of higher inflows under FDI and portfolio investments. the Reserve Bank of India (RBI) concluded the purchase of 200 metric tonnes of gold from the IMF.2 per cent after a 13month period of negative growth.2 billion (as per customs data) in 200910 (April– December) from US$ 106 billion in the corresponding period of the previous year.7 per cent respectively.3 per cent in AprilNovember 2008-09. Gold and silver imports registered negative growth of 7.6 per cent) was on BoP basis (i.4 per cent reflecting slowdown in industrial activity and lower demand for exports. The . respectively.3 per cent and a growth of 10. There have been significant changes in the composition and direction of both exports and imports in this period. in November 2009. Out of the total accretion of US$ 31.saw acceleration in the fall of export growth rate. 2009 and September 9. Besides. a general allocation of SDR 3.e excluding valuation effect).4 billion in December 2008). During 2009-10 (April-December) import growth was a negative 23. The transmission of monetary policy measures continues to be sluggish and differential in its impact across various segments of the financial markets.7 billion in the month of November 2009.4 per cent) was on account of valuation gain due to weakness of the US dollar against major currencies.082 million (equivalent to US$ 4.8 per cent and 20.04 per cent. Import growth was at a positive 27. In December 2009 the recovery in export growth has continued with a positive year-on-year growth of 9. it became a positive 18.2 billion compared to $14. Non-POL non-bullion imports declined by 22.7 per cent over the previous month. In the course of 2009-10.2 per cent to US$ 76.4 per cent. the RBI followed an accommodative monetary policy. 2009. Monetary Policy Since the outbreak of the global financial crisis in September 2008. The continuous rise in prices of gold also dampened the demand. During fiscal 2009-10. this stance was principally geared towards supporting early recovery of the growth momentum. while facilitating the unprecedented borrowing requirement of the government to fund its fiscal deficit. US$ 11. foreign exchange reserves increased by US$ 31. under the IMF’s limited gold sales programme at the cost of US$ 6.8 per cent increase in the growth of POL products with the pick-up in oil prices and industrial demand. The export growth rate in November 2009 over October 2009 was marginally positive at 0.0 billion in end March 2009 to US$ 283.821 million) and a special allocation of SDR 214. The fact that the latter was managed well with nearly twothirds of the borrowing being completed in the first half of the fiscal year not only helped in checking undue pressure on interest rates.5 billion in end December 2009. The upwardly revised export figures for the first half of 2008-09 also contributed to the faster decline in the growth rate. While the export growth rate was a negative 22.6 million (equivalent to US$ 340 million) were made to India by the IMF on August 28.6 per cent accompanied by a decline in both POL and non-POL imports of 29. Non-POL items also registered a significant growth in imports at 22.1 billion in October 2008 and $13.2 billion (35.5 billion from US$ 252. while accretion of US$ 20. despite a high negative growth of gold and silver imports.2 per cent in December 2009 due partly to the base effect and partly the 42. Further.

Growth in sectoral deployment of gross bank credit on a year-on-year basis (as on November 20.3 per cent of the GDP in 2008-09 and 3.8 per cent of the GDP on the old series. private and foreign) declined marginally from March 2009 (with benchmark prime lending rates [BPLR] of scheduled commercial banks [SCBs] having declined by 25 to 100 basis points). the decline was not sufficient to accelerate the demand for bank credit. only to hover between 0. particularly the consumption demand. however. has short .9 per cent in 2009-10 from the level of the fiscal deficit in 2007-08. Though lending rates of all categories of banks (public.6 per cent in 2008-09 (revised estimates [RE]) and was estimated at 3. The net result was an increase in fiscal deficit from 2.5 per cent in the budget estimates for 2009-10 (as against 6. The fact that the approach worked is attested to by the GDP growth rate and more specifically by the growth in private consumption demand in 2008-09 and also in 2009-10 as reflected in the relevant data on the NAS new series. The approach of the government was to increase the disposable income in the hands of the people. reported earlier). the government also enhanced the borrowing limits of the State governments by relaxing the targets by 100 basis points. It picked up thereafter. personal loans and services—growth in credit decelerated as compared to the corresponding period of the preceding year. the transmission was slow and lagged the in the case of the credit market. While growth in credit to agriculture remained more or less the same as on the corresponding date of the preceding year. Fiscal Policy Developments The fiscal expansion undertaken by the Central government as a part of the policy response to counter the impact of the global economic slowdown in 2008-09 was continued in fiscal 2009-10.2 per cent of the GDP in 2009-10 (BE). It was only from November 2009 that some signs of pick-up became evident. Consistent growth in non-food credit was recorded only after November 2009. growth in non-food credit remained negative till June 2009.downward revisions in policy rates announced by the RBI post-September 2008 got transmitted into the money and G-Sec markets. banks flush with liquidity parked their surplus funds under the reverse repo window. Consequently. The implementation of the Sixth Pay Commission recommendations and the debt relief to farmers also contributed to this end.0 to 1. Demand for bank credit/non-food credit remained muted during 2009-10. The relative success of the fiscal stimulus in supporting effective demand. the gross fiscal deficit of the States combined rose from 1.4 per cent of the GDP in 200708 to 2. Thus the fiscal stimulus amounted to 3. for instance by effecting reductions in indirect taxes (excise and service tax) and by expanding public expenditure on programmes like the National Rural Employment Guarantee Act (NREGA) and on rural infrastructure. for the other broad sectors–industry. As a result.6 per cent in 2007-08 to 5. by its very nature.9 per cent of the revised GDP (new series) in 2008-09 (provisional) and 6. while borrowers turned to alternate sources of possibly cheaper finance to meet their funding needs. 2010) shows that retail credit has not picked up during 2009-10. in 2008-09 and 2009-10 could be traced to its composition. As part of the fiscal stimulus. Consumption expenditure. The expansion took the form of tax relief to boost demand and increased expenditure on public projects to create employment and public assets.8 per cent till midSeptember 2009. On financialyear basis (over end March).

On this important dimension.31 lakh during April-June 2009. the savings rate is likely to rise further. including rural development in total expenditure (Plan and non-Plan).76 lakh during January-March 2009. fall comfortably within the range of figures one traditionally associated with the East Asian economies. they speak very well for India’s medium-term growth prospects. India is now completely a part of the world’s fast growing economies. it increased by 2. some sample surveys conducted by the Labour Bureau. Road Ahead There are some deep changes that have taken place in India. Thus emphasis in favour of higher allocation to social-sector development given in recent years continued to be reflected in the allocations under the Union Budget 2009-10. and affects demand quickly. Social-sector Development Fiscal 2009-10 saw the strengthening of several public initiatives and programmes with a view to cushioning the impact of the global slowdown on the more vulnerable segments of the population in the country.lags. Under the NREGA. In 2008-09 gross domestic savings as a percentage of GDP were 32. Employment is estimated to have declined by 4. The recovery having taken root now necessitates a review of public spending.5 per cent and gross domestic capital formation 34.9 per cent in 2004-05 to 23. Theshare of Central government expenditure on social services. 4. there were some measures that were undertaken as a direct response to the slowdown of growth.46 per cent in 2003-04.46 per cent in 2009-10 (BE) from about 10. and then an increase of 4. Since these indicators are some of the strongest correlates of growth and do not fluctuate wildly. followed by a decline of 1.9 per cent. which suggest that the economy’s fundamentals are strong. These figures. especially in the tradable sectors of the economy. with the working age-group population rising disproportionately over the next two decades.91 lakh during the third quarter (October-December) of 2008. Similarly.97 lakh during the second quarter (July-September) 2009. expenditure on social services by general government (Centre and States combined) as a proportion of total expenditure increased from 19. indicated job losses in the wake of the global financial crisis. While comprehensive employment data for the current financial year are not available. First. . while productive infrastructure expenditure takes much longer to translate into effective demand. increased to 19. which are a little lower than what had been achieved before the fiscal stimulus was put into place. It has to be geared towards building medium-term productivity of the economy and making up for the decline in investment growth in certain sectors of the economy. during the year 2009-10.34 crore households were provided employment till December 2009. A major concern was regarding the possibility of a rise in unemployment due to the slowdown of the economy. the rates of savings and investment have reached levels that even ten years ago would have been dismissed as a pipedream for India. It also has to be kept in mind that as the demographic dividend begins to pay off in India. which is a major rural employment initiative. While some of these programmes were a part of the ongoing interventions to give effect to a more inclusive development strategy. with little or no effect on productivity. Ministry of Labour and Employment. government of India. which seemed to reverse in later part of 2009-10.8 per cent in 200910 (BE).

Thus. the arrival of India’s corporations in the global market place. power. Finally. Limitations in the expansion of agricultural land suggest that increase in gross . Apart from being the provider of food and fodder. Notwithstanding the fact that the share of this sector in GDP has been declining over the years. Production and Yield Growth in the production of agricultural crops depends on acreage and yield. are also encouraging. such as the performance of the monsoon and rate of recovery of the global economy. civil aviation. telecommunications and.5. The prosperity of the rural economy is also closely linked to agriculture and allied activities. lends to the optimistic prognosis for the economy in the medium to long run. The favourable capital market conditions with improvement in capital flows and business sentiments. with a full recovery breaching the 9 per cent mark in 2011-12. out of the total share of 17. Further. going by simple calculations based on the above-mentioned variables. agriculture alone accounted for 16.Second. a reasonable forecast for the year 2010-11 is that the economy will improve its GDP growth by around 1 percentage point from that witnessed in 2009-10. allowing for factors beyond the reach of domestic policy-makers. and informal indicators of the sophisticated corporate culture that many of these companies exhibit. have shown a remarkable turnaround since the second quarter of 2009-10.8 per cent. In terms of composition.8 per cent in GDP in 2007-08 for the agriculture and allied activities sector. the Indian GDP can be expected to grow around 8. To begin with.7 per cent of GDP. as compared to 21. The growth rate of the index of industrial production for December 2009 was a remarkable 16. more recently but to a lesser extent. a recognition. Agriculture (including allied activities) accounted for 17. coupled with the fact that agriculture did have a set-back in 2009 and is only gradually getting back to the projected path. In the medium term it is reasonable to expect that the economy will go back to the robust growth path of around 9 per cent that it was on before the global crisis slowed it down in 2008. including railway transport. its role remains critical as it accounts for about 52 per cent of the employment in the country. infrastructure services.3 per cent of GDP.8 per cent of the Gross Domestic Product (GDP-at constant prices) in 2007-08. its importance also stems from the raw materials that it provides to industry. Indian exports have recorded impressive growth in November and December 2009 and early indications of the January 2010 data on exports are also encouraging. Area. The rural sector (including agriculture) is being increasingly seen as a potential source of domestic demand. there has been a revival in investment and private consumption demand. AGRICULTURE AND FOOD MANAGEMENT IN INDIA The performance of the agricultural sector influences the growth of the Indian economy. There is also a substantial pick-up in corporate earnings and profit margins.7 per cent in 2003-04. Hence. though the recovery is yet to attain the pre-2008 momentum. that is shaping the marketing strategies of entrepreneurs wishing to widen the demand for goods and services. followed by fishing at 0. Second. the manufacturing sector has been showing a buoyancy in recent months that was rarely seen before.8 per cent and forestry and logging at 0. as per the RBI’s business expectations survey.

Indian seeds programme recognizes three kinds of seed generation. but remained positive. the main source of long-term output growth is improvement in yield.69 lakh quintals.5 per cent during 2001-08. The Ministry of Agriculture is implementing a Central sector scheme. In view of this. use of quality seeds. Production of breeder and foundation seeds during 2008-09 is anticipated at 1. Cotton occupies an important place among the cash crops in India. leading to a low seed replacement rate. the Indian Council of Agricultural Research (ICAR).3 per cent less than the area sown in 2007-08 of 1. breeder. The availability of quality seeds (among other factors) makes a critical difference to output growth. Each of these plays a role in determining the yield level and in turn the augmentation in the level of production. State agricultural universities and the cooperatives and private players. compared to the 1990s. Compound growth rates of index of area under rice showed a negative growth of (-) 0.4 per cent during the 1990s to 15. The yield of cotton went up from 307 kgs per hectare in 2003-04 to 466 kgs per hectare in 2007-08.68 lakh hectares in the corresponding period of 2007-08.00 lakh quintals and 9. During 2008-09 the area sown at all-India level under kharif was 2.3 per cent during the 1990s to 17. The compound growth rates of indices of area. irrigation. Agricultural Inputs Improvement in yield. North Rajasthan. Area under cotton increased from 7. Karnataka and Tamil Nadu. Haryana. The combined effect on index of production was an increase in growth from 2. Punjab. fertilizers and pesticides and micro-nutrients.8 per cent during 2001-08. area sown under all rabi crops taken together has been reported to be higher at 638. increased to 26. viz. The Indian Seed Programme includes the participation of Central and State governments. that was around 25 million hectares in 2002-03. Andhra Pradesh. which is a key to long-term growth. and the distribution of certified/quality seeds at about 190.33 lakh hectares.60 million hectares in 2003-04 to 9. The coverage under irrigation has been about 87 to 89 per cent of area for wheat. However. the National Seeds Corporation and the State Farms Corporation of India.039. not the least. viz. There are 15 State seed corporations besides two national level corporations. In India. Area under wheat. Madhya Pradesh. the growth in index of area moderated. as compared to 619. As on March 27. production and yield of wheat during 1991-2000 and 2001-08 show a perceptible decline. Maharashtra.0 lakh quintals. more than four-fifths of the farmers rely on farm-saved seeds. respectively. depends on a host of factors that include technology.4 million hectares in 2005-06 and further to 28 million hectares in 2007-08. “Development and Strengthening of Infrastructure Facilities for Production and Distribution of .43 million hectares in 2007-08. Gujarat. The compound growth in index of yield has shown an increase from (-) 0. Area under rice cultivation has remained more or less stagnant in the recent years while growth in yield has shown an increase.23 lakh hectares. foundation and certified seeds. Cotton is grown in nine major States namely.1 per cent per annum during 2001-08.cropped area can come from multiple cropping. 2009. and. The first decisive step that a farmer takes relates to sowing.

791 crore was released to AIBP for major and medium irrigation schemes up to December 2008. inter alia. 445. an amount of Rs. 1966 is proposed to be replaced by a suitable legislation to. Certified/quality seed production has increased from 194. aromatic agriculture and food management and medicinal plants. boost seed production in private sector and help the public sector seed companies to contribute in enhancing seed production. Karnataka and Kerala. The scheme is aimed at making available quality seeds of various crops to the farmers at affordable price. boost the export of seeds and encourage import of useful germplasm. green gram.81 crore was released under the PM’s Relief Package. The Authority has plans to extend its coverage to forestry. chickpea. and in time. The Working Group on Water Resources for the Eleventh Five Year Plan (2007-12) has proposed creation of irrigation potential of 16 million hectares (9 million hectares from MMI sector and 7 million hectares from MI sector) during the Eleventh Five Year Plan period. The Protection of Plant Varieties and Farmers’ Rights (PPV&FR) Authority was established in November 2005. 2001. bread wheat. namely. so as to enhance seed replacement rate. Substantial irrigation potential has been created through major and medium irrigation schemes.35 lakh quintals during 2008-09. Andhra Pradesh. field pea. kidney bean. Fertilizers .The total irrigation potential in the country has increased from 81. pearl millet. Fourteen crops. Under the programme the project approved by the Planning Commission are eligible for assistance. only 87. The Authority has the mandate to implement provisions of the PPV&FR Act. rice. however. pigeon pea. (i) create a facilitative climate for growth of the seed industry so as to enhance seed replacement rates. the existing Seeds Act. The seed component of the Prime Minister’s Relief Package for distressed farmers is being implemented in 31 suicide-affected districts in four States of Maharashtra. black gram. During the year 2008-09. maize. A major thrust under the scheme is on improving quality of farm-saved seeds through“Seed Village Programme. 2.000 seed villages have been organized during 2008-09 across the country.08 million hectares up to the end of the Tenth Five Year Plan (2006-07). In response to the changes that have taken place in the seed sector. certified seeds are supplied at 50 per cent of the seed cost to the farmers in such affected districts.2 million hectares is actually utilized. create a conducive atmosphere for application of frontier sciences in varietal development and for enhanced investment in related R&D. Irrigation The government of India has taken up irrigation potential creation through public funding and assisting farmers to create potential on their own farms. Rs. lentil. sorghum. cotton and jute were notified for the purpose of registration under the Act. The Central government has also initiated the Accelerated Irrigation Benefit Programme (AIBP) from 1996-97 for extending assistance for the completion of irrigation schemes remaining incomplete. Under the scheme.1 million hectares in 1991-92 to 102. In 2008-09.” under which more than 25. on all-India basis since 2005-06.31 lakh quintals during 200607 to 250. Of the total potential created.Quality Seeds”.

development of rain-fed farming systems. policy for conversion of FO/LSHS urea units to natural gas. Tri Super Phosphate (TSP) and Ammonium Sulphate (AS) in the concession scheme. 3. DAP and MOP as against the complex fertilizers (NPKs) which are considered to be ergonomically better and more balanced fertilizer products.07 kg in 2007-08. Haryana. Madhya Pradesh. minor millets and pulses. Chhattisgarh. integrated pest management. multi-crop planters. These cover pricing policy for indigenous urea. The Rashtriya Krishi Vikas Yojana Under the Scheme of RKVY.27 lakh tonnes in 2002-03. rotavators. Madhya Pradesh. Uttar Pradesh and West Bengal. nutrientbased pricing.22 lakh tonnes. Maharashtra. conoweeders. farmers’ field schools. knap sack sprayers. NFSM-Wheat is being implemented in 141 districts of 9 State—Bihar. Karnataka. Availability of raw material/intermediates has also been a major bottleneck towards increase in production. production and availability of fortified and coated fertilizers. liming. agriculture mechanization. distribution of HYV seeds. National Food Security Mission The National Food Security Mission (NFSM) is being implemented in 312 identified districts of 17 States of the country.Chemical fertilizers have played a significant role in the development of the agricultural sector.e. system of rice intensification. support to institutions . plant protection chemicals and bio-pesticides. Some of the evident factors contributing to the decline in marginal productivity are: skewed NPK application ratio in the country. diesel pump sets. However.400 per tonne for SSP. The domestic production of urea in the year 2008-09 was 199. Bihar. The government has taken various policy initiatives for the fertilizer sector. power weeders. dairying and fisheries. micro-nutrients. zero till seed drills. The interventions covered under NFSM-Rice include demonstrations on improved practices. promotion of hybrid rice-production and distribution. Assam. the following indicative broad activities have been identified for focused attention–Integrated Development of Food Crops. Concept to completion projects that have definite timelines. Tamil Nadu. Uttar Pradesh and West Bengal. There is no domestic production of MOP and its requirement is met fully by import. new investments in urea sector. horticulture. market infrastructure. international exposures for technical knowledge enrichment and project management team. whereas that of DAP declined in 200809 to 29. Punjab. Lack of application of proper nutrients based on soil analysis has also contributed to slowdown in growth of productivity. comparatively higher application of straight fertilizers like urea.33 lakh tonnes. The NFSM-Rice is being implemented in 136 districts of 14 States i. Rajasthan. seed drills. recent trends in agricultural productivity show a decline in marginal productivity of soil in relation to the application of fertilizers and in some cases has also become negative. Gujarat. seed mini-kits. uniform freight subsidy on all fertilizers under the fertilizer subsidy regime. Maharashtra. mainly because of shift from DAP production to complex fertilizer production. Jharkhand. award for best performing districts. concession scheme for decontrolled phosphatic and potassic fertilizers. including coarse cereals. Gujarat. The per hectare consumption of fertilizers in nutrient terms stood at 117. after reaching a peak of 52. local initiatives. animal husbandry.36 lakh tonnes in 2002-03. Andhra Pradesh. revised scheme for concession for Single Super Phosphate (SSP) based on inputs cost and a uniform all-India maximum retail price of Rs. soil health and productivity. Orissa. as compared to 187. inclusion of Mono Ammonium Phosphate (MAP). mass media campaign. Kerala.

2009. floods and cyclones and rising temperatures. 2. The concept of FASAL seeks to strengthen the current capabilities of early and in-season crop estimation capabilities from econometric and weather-based techniques with remote sensing applications. models and software packages for crop area and production forecasting. Ahmedabad and provided a platform for development and standardization of basic procedures. 1. the Department of Agriculture and Cooperation (DAC) sponsored a project called “Crop Acreage and Production Estimates (CAPE)” with the objective of developing methodologies using the RS techniques for crop area and production forecasting. For example. etc. In 1987. in spite of established procedures and wide coverage. and innovative schemes. etc. In turn. has inherent limitations in the matter of providing an objective assessment of crops at the preharvesting stages. using remote sensing and weather data. price stability.891. Schemes/projects like Forecasting Agricultural Output using Space. some of the functions under the scheme have been outsourced.500 crore was approved of which an amount of Rs. Agrometeorology and Land-based Observations (FASAL) and Extended Range Forecasting System (ERFS) have been initiated to establish a more scientific and reliable basis for forecasting. The activities relating to forecast of production based on crop growth and yield modelling by making use of the agro-met data has been assigned to the India Meteorological Department (IMD). Agriculture Insurance The frequency and severity of droughts. an outlay of Rs. Remote Sensing (RS). with the desired spatial details which are essential to identify problem areas and the nature of required interventions in terms of spatial. temporal and qualitative inferences. Information and Communication Technology (ICT) and Geographic Information System (GIS)can be used towards this end. 2.. international trade. All other functions. The project was implemented through the Space Applications Centre (SAC).70 crore has been provided at revised estimate (RE) stage and an amount of Rs.886. organic and bio-fertilizers.246. 10 lakh per district for preparation of District Agriculture Plan (DAP). For the year 2008-09.89 crore. 48 crore at Rs. an efficient and sound information mechanism can assist considerably in the management of concerns in areas such as food security. Keeping in view the expertise needed. agro-climatic variations and erratic rainfall accentuates uncertainty and risk in the agricultural sector leading to huge losses in agricultural production and the livestock population in India. Information Availability Timely availability of reliable information on agricultural output is of great significance for planning and policy making. The existing system of agricultural statistics. an outlay of Rs. During 2007-08. Experimental forecasts based on econometric models and forecast based on RS technology for specific crops have commenced. was released to the States.80 crore has been released to the eligible States as on March 31. forecasting of area and production of major crops using Remote Sensing technology is being handled by SAC. including coordination with various groups are being performed by the National Crop Forecasting Centre (NCFC) in the Ministry of Agriculture.that promote agriculture and horticulture. 1. New Delhi. . and forecast of production based on econometric modelling is being done by the Institute of Economic Growth (IEG). Capabilities of the existing system of crop forecasts and crop estimation can be enhanced with the introduction of technological advancements and the adoption of emerging methodologies. including Rs.

21. in the case of pulses.The National Insurance Scheme (NAIS) for crops has been implemented from rabi 1999-2000 season. 31. 11. disease free planting material. Under the Weather Based Crop Insurance Scheme (WBCIS) being implemented by the Agriculture Insurance Company of India Ltd. is included. 10 States have been covered on pilot basis during the kharif 2008 season. which are mostly grown in dry land areas.4 lakh farmers with 1. In addition to AIC. The focus is on incentivizing farmers by ensuring fair value for their produce through the Minimum Support Price mechanism. inputs and services like soil health: good quality seeds.5 crore (including subsidy. The instruments for food management are the Minimum Support Price (MSP) and Central Issue Price (CIP). private insurers like ICICI-LOMBARD General Insurance Company and IFFCO-TOKIO General Insurance Company have also been included for implementation of the scheme in selected areas. On the other hand.155 lakh farmers have been covered and a sum of Rs.607 crore have been reported against premium income of about Rs. (AIC). insurance etc. procurement of food-grains from farmers at remunerative prices. Under the scheme and until rabi 2007-08. 1. establishing grain banks in chronically food-scarce areas and strengthening the Public Distribution System (PDS). Procurement at MSP is open-ended. The nodal agency which undertakes procurement. Provisions have also been made for National Agricultural Bio-security System. About 1.52 crore BPL families. 11. distribution and storage of food-grains is the Food Corporation of India (FCI). farmers’ share of premium is Rs. The scope for increase in the net sown area is limited and farm size has been shrinking. an area of 184 million hectares of about 1. A comprehensive National Social Security Scheme for the farmers for ensuring livelihood security. support services for women. the yield of most crops has not improved significantly and in some cases fluctuated downwards. This pilot is being continued in rabi 2008-09. 2007. old age. production has just not kept pace with the requirement leading to a rise in prices given that its availability in the international markets is . distribution of food-grains at subsidized rates to 6. 2007 Major policy provisions of the National Policy for Farmers. covering all households at the risk of hunger under Antyodaya Anna Yojana (AAY). Challenges and Outlook The agriculture sector faces challenges on various fronts. jowar.82 crore). ragi and millets. Food Management Food management in India has three basic objectives viz. Claims to the tune of about Rs. water use efficiency. On the supply side. distribution of food-grains to the consumers particularly the vulnerable sections of the society at affordable prices and maintenance of food buffers for food security and price stability. extreme variability in the acreage and production over the years has been a matter of concern.606 crore insured. 3. use of technology. In the case of certain crops like sugarcane. credit. benefitting 302 lakh families. 309 crore generating a premium of Rs.626 crore. while distribution is governed by the scale of allocation and its off-take by the beneficiaries. include provisions for asset reforms.87 lakh hectares of cropped area were insured for a sum of Rs. National Policy for Farmers. setting up of farm schools in the fields of outstanding farmers to promote farmer to farmer learning and to strengthen extension services and expanding food security basket to include nutritious crops like bajra. by taking care of insurance needs on account of illness.

particularly rural roads. IFS. extreme poverty and hunger are the daily lot of millions. and development of non-farm rural enterprises. An area that requires focused attention is the issue of sustainability of agriculture with due emphasis on environmental concerns. Soil erosion. NDA. and Bank Clerk Recruitment exam preparations as also any competitive exam [MBA. there is clearly a need for a renewed focus on improving productivity. A mission approach for promotion of smart cards and its cross reference with ration cards and voter ID cards would help better targeting.2 billion—a fifth—live on less than $1 a day. water logging. there is need to ensure that benefits accrue to the targeted population. The rural economy needs to be viewed as comprising of a continuum of interrelated economic activities. fewer than one child in 100 does not reach its fifth birthday. WAR AGAINST POVERTY Readers will find this feature useful in their preparations for Civil Services Exam and other similar UPSC and SSC exams.O. Over two million childhood deaths occur annually due to vaccine-preventable diseases. with 44 per cent living in South Asia. to step up the growth of allied activities and non-farm activities that can help improve value addition. In a world that could provide for all its people. As per the Report of the Committee on Financial Inclusion (January 2008). On the distribution side. The development of marketing infrastructure and storage and warehousing and cold chains and spot markets that are driven by modern technology will go a long way in addressing this need. In rich countries. more than 73 per cent of farmer households have no access to formal sources of credit. pisciculture. The current focus on developing rural infrastructure. The irrigation sector requires a renewed thrust. Innovative institutional mechanisms that provide credit and financial products (including insurance products) specifically designed to meet the needs of the farm sector. There is also a need to narrow the gap between producer prices and consumer prices through proper marketing support. There is considerable scope for development of microirrigation systems and watersheds and in the use of a participatory approach for achieving the same. lesser leakages and easier administration. Farming needs to be dovetailed with viable off-farm and nonfarm activities. Of the world’s more than six billion people. while in the poorest countries as many as a fifth of children do not. The consequences of climate change on Indian agriculture also need to be factored in the strategy for the development of this sector. IES etc] in which questions on General Awareness or General Knowledge and Current Affairs are asked. both in terms of investment as also modern management. needs to be maintained as it would go a long way in providing connectivity that is essential for movement of agricultural Farmers need to be facilitated to take up value addition such as processing of agricultural produce. reduction in ground-water table and the decline in the surface irrigation are the problems faced by agriculture. horticulture. The information provided is also useful for Bank P. and 1. keeping their risk-bearing ability in view. CDS. is the need of the hour. and at the same time. poultry.8 billion—almost half—live on less than $2 a day. Therefore. hunger daily . 2.

such as illiteracy. Markets and jobs are often difficult to access.1 billion people still lack access to clean drinking water. social and governance perspectives. Poor health.000 people die from preventable causes. This fragile position is exacerbated by insecurity. 31. dignity. all by the target date of 2015. The average income in the richest 20 countries is 37 times the average in the poorest 20—a gap that has doubled in the past 40 years. Poverty goes beyond lack of income. creative and healthy life. the poor are not only deprived of income and resources.stalks nearly 800 million people in the developing world. slashed export and tourism receipts and raised unemployment levels. . Limited education affects their ability to get jobs and to access information that could improve the quality of their lives. Not surprisingly. the Universal Declaration of Human Rights. self-respect and respect for others. adequate nutrition. to have freedom. The UN Charter. social. social security and a share in the benefits of social progress. But the distribution of these global gains is extraordinarily unequal. UNDP addresses poverty as a denial of human rights. due to inadequate nutrition and health services. These include the ability to lead a long. Income poverty lines are set against the cost of a basic diet for a group and/or the combination of dietary needs and a few non-food essential items. housing. The latest data suggests that the Millennium Summit target will be reached only in 2030. 99 per cent of them in developing countries. UNICEF says that some 1. civil. Good health. because of low capabilities and geographical and social exclusion. as valid today as they were 50 years ago when the Universal Declaration of Human Rights was adopted. This makes it difficult for the region to achieve its Millennium Development Goals (MDGs). The global economic crisis has wiped out developing Asia’s recent gains in poverty eradication as the meltdown is expected to have driven more than 21 million people in the region into poverty. About 1. and cultural rights with the goal of eradicating poverty and its consequences. the World Summit on Social Development and many other multilateral declarations and conferences have recognized and reconfirmed economic. It is multi-dimensional. ill health (incidence of communicable diseases such as tuberculosis and HIV/AIDS). which range from halving extreme poverty to halting the spread of HIV and AIDS and providing universal primary education. Understanding & Responding to Poverty The right to development and the right to a life free from poverty are basic human rights. education. Among these rights are an adequate standard of living. UNDP defines poverty from a sustainable human development perspective. literacy and employment are not favours or acts of charity to be bestowed on the poor by governments and international agencies. to acquire knowledge. health. the poor generally fare the worst in terms of social indicators. global connections. and there are 14 million AIDS orphans under the age of 14. and technological capabilities have never been greater. This destitution persists even though human conditions have improved more in the past century than in the rest of history—global wealth.400 girls and women die each day from causes related to child-birth. More than 40 million people are living with HIV/AIDS. Economically. and to have access to the resources needed for a decent standard of living. A joint report by the United Nations and the Asian Development Bank shows that the global economic slowdown slackened trade. but of opportunities. One commonly used income poverty definition is subsisting on US$1 per day or less. food. They are human rights. Poverty is the denial of various choices and opportunities basic to human development. Every day. Traditionally. half of them hunger-related. political. further limits their prospects for work and from realizing their mental and physical potential. work. encompassing economic. poverty has been defined in terms of shortfalls of consumption or income. Nature and Determinants of Poverty Under-nutrition and hunger are the hallmarks of poverty. malnutrition.

a voice in decision-making and protection from shocks. partly because of income inequality within countries. The 1980s saw another shift of emphasis following the debt crisis and global recession and the contrasting experiences of East Asia and Latin America. In the 1990s. World Development Report. Actions at the country level The lives of poor people are most affected by actions at the country-level. In the 1970s. And. Emphasis was placed on improving economic management and allowing greater play for market forces. proposed a strategy for attacking poverty in three ways: promoting opportunity. In the 1950s and 1960s. because industries need to be internationally competitive as well. and working for their inclusion. Investments in the physical and financial assets of poor people are. Vigorous and comprehensive investments in reducing poverty. Strategies for poverty reduction The approach to reducing poverty has evolved over the past 50 years in response to deepening understanding of the complexity of development. Market reforms and the expanding to international markets can be central in expanding . awareness grew that physical capital was not enough. This requires action by the State to support the build-up of human. articulated this understanding and argued that improvements in health and education were important. Rapid growth is a necessary—but not a sufficient—condition for poverty reduction. Although economic growth is crucial for generating opportunity. to enhance synergism between different economic segments. such as land and education. and enhancing security. The World Development Report. In addition to achieving faster growth rates. South Asia. pro-poor growth that provides opportunities for all. and infrastructure assets that poor people own or to which they have access. Opportunity: Expanding economic opportunity for poor people by stimulating economic growth. 2000. greater equity is particularly important for rapid progress in reducing poverty. facilitating empowerment. and Sub-Saharan Africa. preventive health care. 1990. there is a two-way relationship between poverty and growth. as evidenced by low school enrolment rates and higher incidence of maternal mortality rates. 1980. Among this group. in other words. What is too seldom mentioned. providing jobs and economic opportunities for self-employment—a challenging task. World Development Report. rural infrastructure and credit. proposed a two-part strategy: promoting labour-intensive growth through economic openness and investment in infrastructure and providing basic services to poor people in health and education. thus. women and girls are often the most severely disadvantaged. particularly by building up their assets.and mortality and morbidity rates. many viewed large investments in physical capital and infrastructure as the primary means of development. and that at least as important were health and education. In societies with high inequality. Economic growth also needs to be labour absorbing. Countries need to get on a path of sustainable. not only in their own right but also to promote growth in the incomes of poor people. it is essential that economic growth be broad-based to maximize its impact on reducing poverty. is that persistent poverty and inequality reduce growth rates and undermine economic stability and security. This requires diversified industrial and service sectors and the networking of international and local enterprises of different sizes. necessary—adequate schooling and skill development. land. is a necessary component of long-term growth. making markets work better for poor people. however. governance and institutions moved towards centre stage—as did issues of vulnerability at the local and national levels. secured nutrition. poverty remains intractable despite economic growth in many countries.

for poor people are often direct victims of bad governance. Social structures and institutions form the framework for economic and political relations and shape many of the dynamics that create and sustain poverty—or alleviate it. Governments can help by fostering debate over exclusionary practices or areas of stigma and by supporting the engagement and participation of groups representing the socially excluded. crop failure. effective integration into the global economy. and gender bias in legislation and the operation of legal systems and encouraging the representation and voice of women and disadvantaged ethnic and racial groups in community and national organizations. Such mechanisms range from making fiscal policy counter-cyclical and improving management of natural disaster risks. political. And mechanisms need to be in place to create new opportunities and compensate the potential losers in transitions. Achieving this requires conscious allocations of public resources in favour of women and of production areas where women are most concentrated. Accordingly. are all needed. Policies that promote low inflation. In short: gender-sensitive budgeting. Other actions could include removing ethnic. and social life and increasing their involvement in the development of policies that affect their lives. Due to their lack of representation. Empowerment: Strengthening the ability of poor people to shape decisions that affect their lives and removing discrimination based on gender. reasonable fiscal deficits. Security: The poor are often the most severely affected by adverse shocks of macro and microeconomic origin. but reforms need to reflect local institutional and structural conditions. especially relative to the rising need. The potential for economic growth and poverty reduction is heavily influenced by State and social institutions. Action to improve the functioning of State and social institutions improves both growth and equity. such as class stratification or gender divisions. by reducing bureaucratic and social constraints to economic action and upward mobility. and help the poor cope with them are essential. race. racial. so mechanisms to reduce the incidence of shocks. Special measures are also needed to ensure that spending on programmes important to poor people —social programmes and targeted transfers—does not fall during a recession. protect investments in human capital during crises. and severance payments to those laid off during civil service retrenchment or public enterprise reform. unemployment and old age. unemployment and social assistance programmes. and private sector activity. These mechanisms should guarantee minimum consumption levels and access to basic services. Social structures that are exclusionary and inequitable. These include subsidies targeted to the poor. a general policy framework is required to reduce the marginalization of women. ethnicity. and social status. Groups facing active discrimination can be helped by selective affirmative action policies. To manage the risk of financial and terms of trade shocks.opportunities for poor people. are major obstacles to the upward mobility of poor people. and reduce the risk exposure faced by the poor in their productive choices. especially those related to access to productive assets and the delivery of social services. The promotion of gender equality is expected to contribute to the achievement of several goals at the same time. sustainable. sound macro-economic policy and robust . well-designed pension. realistic and stable exchange rates. helping them participate effectively in economic. Participatory democratic systems and the rule of law are essential to ensure that leaders are held accountable to the people and that open and transparent systems exist for the management of public resources. to instruments that help the poor cope with illness. they tend to be left out of public expenditure programmes. The importance of good governance for economic growth and poverty reduction is now generally accepted. public works and “food for work” programmes. Good governance also has a direct bearing on poverty.

pushed and pressured to open their markets. reduce tariffs and remove subsidies by developed countries. But. Increased openness to trade creates opportunities for new investments and jobs. This is because of incentives created by export opportunities and import competition. as new and additional subsidies and protectionist measures are being implemented. and foreign direct investment can also encourage the transfer of technology. Africa accounts for less than 1% of world exports. For these countries. in partnership with the IMF. it has already started to work with selected countries on “Poverty Reduction Strategy Papers” (PRSPs). show higher economic growth than those that maintain closed trade regimes. including the business of damaging African agriculture through farm subsidies. For example. Aid should be delivered in ways that ensure greater ownership by recipient countries and effectively helps poor countries help themselves. yet. poverty reduction strategies will no longer be drafted in Washington by the IMF and World Bank and presented to national authorities as a fait . relatively few developing countries have benefited from trade liberalisation. The challenge for developing countries is to enact domestic policies that attract more foreign direct investments of a relatively long term and stable nature. trade liberalization can be an engine of development and poverty reduction. these are for products that are critical to the majority of the population in poor countries. and the doors it opens for productive domestic-foreign partnerships. reducing poverty calls for a three-pronged approach: promoting pro-poor growth. as well as adopting structural reforms to enable domestic adjustment when necessary. managerial expertise and skills. markets in developed countries and in the US are increasingly closed to them. First. securing social development. to reduce the risk of volatile short-run flows. Indeed. to begin intensive work on a new. the “rethinking development” has led the World Bank. and generates revenues. Although developing countries have been constantly lectured. Pro-poor growth stimulates employment and other economic opportunities. Globalization and Poverty Reduction Appropriately structured and sequenced. But they have to be complemented by prudent management of the opening of the capital account. and ensuring good governance. They depend far more heavily than the better-off developing countries on agriculture for their GDP and exports. The liberalization of capital flows permits greater access to the external resources. The PRSP emphasizes on two fundamental systems are fundamental. In fact. through good governance. Countries that participate in the global economy. Both the European Union and the US have promised action to tackle marginalisation. Increasingly. and promotes more efficient use of resources and higher productivity. The lesson? If trade is to contribute all it can to development and poverty reduction. The three are inter-related and complementary. Aid Effectiveness and Debt Relief Donor countries could strengthen developing countries’ ability to pursue poverty reduction by increasing aid flows to countries with a sound policy environment. more sharply focused approach to supporting member countries’ poverty reduction strategies. agricultural trade liberalization is critical. which can be directed. supportive of poverty reduction. Thus. needed to finance such investments. What have they done? Continued business as usual. at providing services needed by the poor and vulnerable groups. the poorest countries must be able to participate more fully in its benefits.

transparent direction for the future. The real value of aid to developing countries is down about 8 per cent in the past decade. UN Millennium Development Goals For 2015 • • • Eradicate extreme poverty and hunger. The L’Aquila Food Security Initiative announced at the 2009 G8 summit in Italy suggests a new priority of investment in agriculture. Recent studies show that achieving the MDGs would require doubling present ODA flows. There is justifiable concern that these attempts to fine-tune solutions to global poverty may be overwhelmed by the pace of events. but will not be sufficient if more aid is not made available. to better analysis. The international community should seek to stem armed conflict—which affects poor people the most—by taking measures to reduce the international arms trade.accompli. Extraordinary as it seems. They increasingly downplay governance issues whilst promoting the concept of inclusive growth with propoor institutional capacity building and the provision of social safety nets to protect the poorest. promote peace. The lack of consensus on poverty alleviation has itself proved unhelpful by pulling countries in different directions. the scourge of poverty can lead to unrest. hopefully. The failure of politicians to respond to signals of climate and economic breakdown has almost certainly provoked an inexorable rise in global poverty with unpredictable consequences. This calls for substantial technical and financial assistance for demilitarization. The industrial countries further need to ensure greater coherence and transparency in their own policies on arms sales. Eliminate gender disparity at all levels of education. Security and Conflict The incidence of poverty can worsen substantially in conflict situations and may not be reversed for a prolonged period after the conflict has ended. there has in the past been little connection between the IMF’s macroeconomic analysis and the World Bank’s work on poverty. the PRSP forces much closer co-operation between the two institutions. Just as conflict can lead to poverty. and support physical and social reconstruction after conflicts ends. and the restoration of domestic institutional capacity. Most of the large bilateral government donors tread a middle path. demobilization. Donors also need to avoid any gap between the provision of humanitarian and reconstruction assistance. Supporting country-owned poverty reduction strategies will. Second. The strategy will benefit from the intellectual contributions of all providers of external support—and will provide a single. Promote gender equality and empower women. go some way to achieving greater poverty reduction than in the past. especially the voices of the poor. Rather. That is why poverty should be at the heart of the international security agenda. A fundamental reordering of priorities is the only available remedy for the poor. concessional support will be based on the strategy developed by national authorities. with the broad participation of local civil society. It may also prove to be the critical first step on the road to a sustainable future for us all. at least. Achieve universal primary education. which should lead. so that both contribute in a mutually reinforcing way to an early restoration of durable peace. rebellion and terrorism The forces unleashed will not recognise national borders. Halve the proportion of people with less than one dollar a day. Halve the proportion of people who suffer from hunger. and rehabilitation. Ensure that boys and girls alike complete primary schooling. .

S. however. Reduce by two thirds the under-five mortality rate. a man-on-the-go. Rajeev Chandrashekhar. Returning from the US. Uday Kotak has founded a bank that promises to be yet another ICICI.• • • • Reduce child mortality. has emerged as the largest airline in the country. sold it out and is now entering into freight transport —as the railways are privatising the container business. Today. and buying up a private sector rival. are creating a furore. Ten years back. • RISE OF ENTREPRENEURS IN INDIA There is a galore of Indian entrepreneurs in the Forbes’ list of the world’s wealthiest every year. Kishore. Sahara. Reddy. Halve the proportion of people without access to potable water. Develop a global partnership for development. In almost every new industry that has attained stature in the last decade. Combat HIV/AIDS. we must mention Subhash Chandra. an engineer–turned-telecom tycoon is truly an adventurer. In the sunrise retailing sector the big boys. But. more significant is the rise of new entrepreneurs in India. a totally unknown name a decade ago is now a media darling. the amusement parks owner and a pioneer of satellite TV in India. Pantaloon and Shoppers’ Stop are the Indian challengersin-waiting for Wal-Mart as they have already swept the likes of Tata (Trent) and RPG off the floor in the retail business. Significantly improve the lives of at least 100 million slum dwellers. belong to Narayana Murthy.V. Reverse the spread of HIV/AIDS.K. malaria and other diseases. They have surpassed their counterparts in advanced countries in software development and helped India emerge as the leading Software power. barely in fifteen years. he got into a telecom business. this is merely a factoid. he is ahead not only of patricians like Tatas but also of a global major like HutchisonWhampoa. upstaging the State-owned Indian Airlines.M. The most extraordinary stories of meteoric rise in the annals of entrepreneurship. Within a few years he has outperformed the oldest media house in the country. Having interesting histories in banking. Improve maternal health. both are now into the big league after outdoing airport bids against celebrities with household surnames. Nagesh. Take Sunil Mittal. Integrate sustainable development into country policies and reverse loss of environmental resources. What about the country’s leading airports? The carpetbaggers here are again firstgeneration names like G. Ensure environmental sustainability. power and hoteliering. Reduce by three quarters the maternal mortality ratio. has made impressive forays into . Kiran Mazumdar Shaw. another pioneer. Mittal would not have figured even in the B list of Indian businessmen. whose phone company now has the sixth-highest value. In the same breath. Raise official development assistance. the rising star is not from the established business houses but an upstart. Rao and G. Kishore Biyani and B. Azim Premji and Shiv Nadar. Naresh Goyal’s Jet Aiways.

access to cash. observed: “the Indian Multinational Company (MNC) has finally come of age” and “Indian buyers have become a force to reckon with in many industries such as pharma. How about Jignesh Shah. auto components and oil and gas”. Corus. America. yet the Indian entrepreneur is proving his mettle. or Anu Agha. Tata. India’s second largest private firm. “a revolution in global business is under way”. Among the electronic media enterprisers Prannoy Roy and Raghav Behl are India’s news kings. Laxmi Mittal had to flee his homeland to become the world’s steel sultan. and the rise of entrepreneurial ambitions are creating conditions for the emergence of global Indian enterprises. who took over Thermax after her husband’s sudden death. gobbled up another major steel manufacturer. and the axis of corporate power was shifting towards the BRIC (Brazil. Aditya Birla wandered all over South-East Asia setting up companies and factories. many banks. other continents with their global mega-mergers and hostile takeovers. Shefali Munjal is a third generation member of the Munjal family who manages Hero Group. Many head the human resource wings and are tough and tactful while dealing with the hard-core politicos and burly men dominating the restive trade unions. petro-products and auto components. Kiran Shaw Majumdar. L.biotech industry. Only a few decades back. Indians are shaking Europe. De-regulation is creating new opportunities. not to be left behind. India is now a vast and vibrant market. . Mittal—based in London but holding an Indian passport— grabbed the world’s largest steel-maker. among the world’s largest two-wheeler makers. Arcelor. Capital can be organized and technology accessed. These deals hail the emergence of global Indian entrepreneurs on the world stage. insurance companies and business enterprises now have women in key positions— chief executives. For instance. the challenger. The list is getting longer daily. Biocon chief. chief economists. chief strategists. Indian business is also fanning out and challenging the global multinationals. India and China) countries. Women are better students. to become the fifth largest producer. A 2006 study by Mape. Doing business in India is no cakewalk. Tata is now one of the world’s lowest-cost steel producers. what with the bureaucracy’s red tape and greasy palms. an investment bank. Besides the exceptional first-timer Indira Nooyi.N. Higher education and new confidence are helping daughters and daughters-in-law of traditional families take up high-profile corporate roles. Indian entrepreneurs had to leave India in order to prove their spirit of enterprise. quick to grasp the nitty-gritty of work and more willing to listen to elders. Russia. Liberal policies. He is another first-generation business entrepreneur involved in a David-Goliath duel with the country’s biggest financial players for market leadership in commodity exchange. the Mukesh Ambani-owned Reliance Industries. the Pepsico chief. may soon be among the top 10 in the world list. India is fast becoming a hub for metals. Forbes list is no longer an Everest for Indian entrepreneurs. is no transient phenomenon but is becoming a normal face of Indian business. According to a Boston Consulting Group (BCG) report.

each with distinctive or dissimilar customs and cultural practices. M. Region-wise. She is rated as one of the most successful Indian women CEOs. Monas and Keshdharis among Sikhs and hundreds of other castes. . entrepreneurship is no more limited to family-managed businesses in India”.. women entrepreneurs represent a group that has broken away from the beaten track and are exploring new avenues of economic participation. differences between social structures of India’s north and south are marked.” It is estimated that women entrepreneurs currently comprise about 10 per cent of the total number of entrepreneurs in India. India contains a large number of different regional. especially with respect to kinship systems and family relationships. Shias and Sunnis among the Muslims. Jews. Sulajja Firodia Motwani manages her Kinetic Group as well as family. Jains. subcastes. met the challenge after their father got killed in a terrorist attack in India’s turbulent northeast. “There has not been a better time in India to reach out and touch the horizon . women. Access to wealth and power varies sharply. vegetarians and non-vegetarians from each religion. There is the Hindu majority and the large Muslim minority or “second majority”. There are other Indian groups—Buddhists. Shashi Ruia describes his Essar Group as “serial entrepreneurs” and predicts the rise of new entrepreneurs. SOCIAL STRUCTURE IN INDIA The ethnic and linguistic diversity of India is proverbial and rivals the diversity of continental Europe which is not a single nation-State like India. children dwelling on their pavements and bathing in dirty water of its flowing or even clogged drains are common sights. Sikhs.. communities. Christians. Cremica is a popular biscuit and confectionery brand where Geeta Bector is both director and wife of Akshay Bector.K. Religious differences are pervasive through out the country. Each group is proud of its faith and very sure of its superiority over other faiths. starving. Extreme differences in socio-economic status are glaringly visible among the smallest village communities to metropolitan cities and megatowns. Prosperous. chairman of the Rs 25 billion Amalgamations Group. A highly noticeable feature of India’s social structure is highly inequitable division of the nation’s wealth. and wife of Venu Srinivasan of the TVS Group. well-fed. ill-nourished. Dhamija in his book Women Entrepreneurs says: “The hidden entrepreneurial potentials of women have gradually been changing with the growing sensitivity to the role and economic status in society… Today. ill-clad or even half-naked men. he said while addressing a Convocation of the Entrepreneurship Institute of India. Sivasailam. Parsis.D. Sanatanis among the Hindus. Mallika Srinivasan of Chennai-based Tractor and Farm Equipment is the eldest daughter of A. and economic groups. The poor and the rich live side by side in urban and rural areas. where the family has a tea business. social. perfumed men or women in chauffeured luxury cars passing and even living in narrow streets with poor. Contrasting extreme poverty and enormous wealth and obvious class distinctions are egregiously visible in almost every settlement in India.Priya and Priti Paul of Apeejay Surrendra Group. She thinks women have a special advantage when it comes to food. She joined the family enterprise on returning from Carnegie Mellon University. and practitioners of tribal religions—and hundreds of sub-religions or religious communities within larger communities like the Arya Samajis. S.

Indian city dwellers are often nostalgic about “simple village life”. anthropologist Oscar Lewis called this complexity “rural cosmopolitanism. Public behaviour of both men and women is rude and unhelpful. Most villages are characterized by a multiplicity of economic. ritual and aspects of life. These are hierarchically ordered and named groups into which members are born. kinship. especially in sub-caste communities where inter-caste and widow marriage is equated with community honour leading to honour-killing of the perceived violator of caste-norms.discipline is loosening and every individual is free to decide her or his own social ways and such an indivi-dual will always find small or big support and a milieu to evolve a suitable mode of living in spite of turning her/his back on caste and caste-ridden society. television and mobile phones are now changing the village scene though dirt. both men and women behave in one way and collectively in quite another way. war widows do not get their pension approved for years! A clerk in a government office wields greater actual power than a decision-making executive and can withhold implementation of his superior’s orders for ever. And. but Indian villages have been losing both simplicity and gaiety of life and are boiling in the caste cauldron of petty rivalries. They are afflicted with addiction to all kinds of drugs like alcohol. In India’s enlarging cities. retired persons. though at times. surging crowds. loudspeakers blaring movie tunes or religious recitations. Yet. occupational. the litigant is in for a shock after shock as the case gets adjourned endlessly and after years of attending court hearings gets an unimaginably skewed judgment written in a highly ambiguous language. People occupying public positions are extremely unhelpful and even normal actions done toward others as part of normal routine are projected as personal favours. squalor and disease still vitiate rural India. caste. underlying norms of life. as far as possible. caste. Indian village life is neither simple nor inviting. Factionalism is a typical feature of village politics. urbanity. observers tend to bypass these all-pervading differences of region. are widely accepted in India. there are thousands of castes and caste-like groups. status. Mud houses. millions of people live among roaring vehicles. but the same people when in individual situation and relationship can be very different. religion. gender and absence of the rule of law but pay most devoted attention to that special and peculiar feature of Indian society: “CASTE”. Surprisingly. Litigants pay high fees to lawyers and bribes to court staff and even to judges. no generalisation can be made because. especially if the violator is weak. overcrowded streets.” . language. Prescribed ideal gender roles are fast losing to new patterns of behaviour among both sexes. Gender distinctions are highly pronounced. dusty lanes. That is why no villager who has come to the city goes back. increasingly. busy commercial establishments. grazing cattle. marry within the caste or sub-caste and follow caste rules with respect to diet. more so in villages.Urban-rural differences too are immense. Over 70 per cent of India’s population lives in villages. factories and trucks and buses breathing poisonous pollution into unhealthy lungs. Even senior citizens. Roads. The most loved and recognized identity of Indians is their caste. wealth. Caste members. In one of the first of the modern anthropologi-cal studies of Indian village life. The behaviour norms of men and women are very different. opium and heroin. though honesty of thought and action may not be among them. chirping and crying of birds at sunset and rising smell of dung and chulah-smoke are the usual settings for the social lives of most rural Indians. agriculture still remains their mainstay. this can be a harrowing experience. and even religious groups linked vertically within each settlement. If the victim of delay approaches the court. According to sociologists: “Each village is connected through a variety of crucial horizontal linkages with other villages and with urban areas both near and far. Individually. However.

spewing uncontrolled fumes. the Indian political system is recent and dates from India’s Independence from Britain in 1947 and proclamation of India’s Constitution in 1950. hospitals and major shortages of key necessities characterize urban life. and leather. metal. Sociologists call them “nucleated settlements”. Village fields surround these settlements. In northern and central India. are rare. In wet States of West Bengal and Kerala. interest groups (such as poli-tical parties. dwellings are more spread out. Accelerating urbanization is fast transforming Indian society. Distinct Dalit hamlets. some villages merge into the next village and visitor are not able to see divisions between such villages. India’s larger cities have been growing at twice the rate of smaller towns and villages. A political system is. cloth. neighbourhood boundaries can be vague. Artisans in pottery. Most Indian cities are densely populated. and scooters. About half of the increase is the result of rural-urban migration. say. houses are a little dispersed. had 6. traffic jams. cars. continue to eke out their existence in contemporary Indian villages like centuries past. the constitution of India is a much-amended national document. Slums and pavement dwellers constantly multiply so also trucks. transportation. eastern. in the south. for example. all surging in haphazard patterns along with jaywalking pedestrians and cattle. a set of institutions. Religious observances and weddings are occasions for members of various castes to provide customary ritual goods and services. Foremost. buses. INDIAN POLITICAL SYSTEM Unlike the American and British political systems which have existed in their current form for centuries. trade unions. as villagers seek better lives for themselves in the cities. motorcycles. Houses of Dalits are ordinarily situated on outskirts of nucleated settlements. air pollution. New Delhi. wood. however. They stalk all big cities and State capitals and strike at will. grossly inadequate housing. Arising from disagreements between the Parliament and the Supreme Court or under pressure from political interest groups and compulsions of a modernizing society or the process of change within the society. Dalit hamlets are set at a little distance from other caste neighbourhoods Bigger landowners do not cultivate lands but hire tenant farmers to do this work. A recent phenomenon is illegal migrants from neighbouring Bangladesh and terrorists via Nepal. Congestion. and far northern India. in Kerala. where socio-economic divisions and caste pollution observances tend to be stronger than in the north.Typical Indian villages have clustered dwelling patterns built very close to one another. electric power. although diminishing. water supplies. lobby groups) and provides dynamics of interaction among those institutions and bases for political norms and rules that govern their functions. Contrastingly. In contrast to the constitution of Japan that has seen no amendments. . noise. sewerage. Once a sleepy land of docile people. The last 104th amendment enforcing OBC reservations was carried in 2006. More than 26 per cent of the country’s population is urban. with small and narrow lanes for passage of people and sometimes carts. India’s city life is extremely insecure and crime-infested. after all. Bangladesh and Pakistan. Constitution and the Law.352 people per square kilometre in 1991. each constitutional amendment has had implications for India’s politico-social system. India has become one of the 20 most dangerous countries of the world to live in. auto-rickshaws. On the hills of central. schools.

modelled on the British House of Commons. is composed of representatives of the people directly elected on the basis of adult suffrage. in times of crisis such as a hung Parliament. The head of the government is the Prime Minister. Term of office is six years. The upper house in the Indian political system is the Rajya Sabha or Council of States which has up to 250 members. The Indian Presidency has recently attracted special attention because for the first time a woman. As members of an electoral college. . The Ministers are then appointed by the President on the recommendation of the Prime Minister. The ratio between the number of seats allotted to each State and the population of the State. The Lok Sabha. science. Theoretically. The maximum strength of the House provided by the Constitution is 552 that includes up to 530 members to represent the States. The Rajya Sabha or the Council of States too is partly modelled on the British House of Lords or Upper House of Parliament but India’s federal system of government has many features similar to federalism as practiced by the United States. Canada and Australia. The Prime Minister has to be a member of either House or get elected within six months if not a member at the time of appointment. Currently. as far as practicable. Uttar Pradesh has 31 members. The Head of State in India is the President. literature. the size of the house is 545—made up of 530 elected from the States. A political system. Three states have only one representative each. with one-third of the members seeking election every two years. and two nominated from the Anglo-Indian community. encourage and warn” the elected government on constitutional matters. the most important element of India’s political system. The Rajya Sabha meets in continuous session. The Lok Sabha or House of the People. it is not subject to dissolution. is the Lower House of the Indian Parliament. The remainder of the house—currently comprising 238 members—is elected indirectly by the state and territorial legislatures in proportion to the unit’s population. if that community is not adequately represented in the House. or social services. and like the British monarch is expected to “advise. is kept the same for all States. Unlike the Lok Sabha.500 members of the national parliament and state legislators are eligible to vote in the election of the President. occupies it. Uttar Pradesh with 80 members has the largest number of Lok Sabha members. appointed by the President on nomination or election by the majority party or coalition of political parties in the Lok Sabha. ought to ensure the maintaining of order and harmony in the society and provide institutions for addressing grievances and complaints of citizens at large. The President can declare a state of emergency which enables the Lok Sabha to extend its life beyond the normal five-year term. 20 members to represent the Union Territories and two members of the Anglo-Indian Community nominated by the President. The President can return a Parliamentary Bill once for reconsideration and. around 4. mostly a ceremonial position derived from the concept of constitutional monarchy of the United Kingdom. Pratibha consists of the members of a social organisation (group) who are in power but also of interdependent components and peripheries of the milieu with which it interacts. 13 elected from the Territories. certain constituencies are reserved for candidates from scheduled castes and scheduled tribes. The method of election followed by legislatures is ‘single transferable vote’. if sound. a political system is regarded as the way a government makes policy and organizes administration. President’s role becomes pivotal. being the most populous among all Indian states. 12 of which are nomi-nated by the President for their accomplishment in art.

privatisation. after sixty years of Indepen-dence. vote banks and populism. The Indian National Congress (INC) since its inception in 1885—and its successor—has been a dominant political party in India. If there is a conflict which cannot be resolved even by the joint committee of the two houses. Judiciary and bureaucracy are steeped in corruption. Formed in 1980. All this has not happened and as Galbraith’s put it. and from non-alignment it has shifted to pro-American foreign policy. . is based on the principal of checks and balances of power and has a strong and independent judiciary with the Supreme Court as the highest judicial authority in civil. Since independence. Currently. Besides the Central government. one political party-dominated system to an increasingly discrete polity with regional parties pulling in different directions. India has been changing from a highly centralized. Indian demo-cracy is a functioning anarchy. it followed policies of moderate socialism. Demographically and geographically. it is its institutions that infuse life into a democracy. As a result. the Indian political system has been unable to incorporate the multiple stakeholders of the complex Indian society even though it has lent stability and continuity to Indian democracy. it is solved by vote in a joint session of the Parliament. Originally socialistic. India’s first Prime Minister for 17 years. then had 13 parties in the coalition but currently has nine. foreign investment. Political norms have been declining and politics in India is much rougher and much more corrupt than in the democracies of Europe and North America. Until 1947. it has competed for power and for considerable period governed the country either as the largest party in Parliament or. except in the area of Money Bill where the Lok Sabha has overriding powers. Indian democracy finds itself reduced to the ballot box. mixed economy but now supports deregulation. Likewise. political parties are a most vital element of the Indian political system. it champions the socio-religious cultural values of the country’s Hindu majority and advocates strong national defence. it operates a federal system of government. A peculiar feature of Congress Party is its one-family leadership of Jawaharlal Nehru. a joint sitting of the two houses is held. The Indian Political System. where the will of the Lok Sabha. The other major political party in India is the Bharatiya Janata Party (BJP). his daughter Prime Minister Indira Gandhi. Unfortunately. his grandson Prime Minister Rajiv Gandhi . Though not mentioned in the Constitution. A constitution can provide only a framework. and her son Rahul Gandhi. like the USA’s.The two houses share legislative powers. criminal and constitutional cases. as currently. which is twice as large as Rajya Sabha. conscientious ruling elites and democratically aware citizens. India is big and highly diverse. the Italian-born Sonia Gandhi Congress President but more powerful than the Prime Minister. head of a 16-party coalition called UPA (United Progressive Front). In the case of conflicting legislation. there are governments and administrative setups in 28 States and seven Union Territories. The Indian political system was expected to produce accountable governments. Member Parliament being projected as a future Prime Minister. almost always prevails. it campaigned for Indian independence from Britain. National Democratic Alliance (NDA) founded in 1998. our experiment with democracy is in peril. currently Rajiv’s widow. planned. The BJP-led the National Democratic Alliance (NDA) government between 1998-2004.

Surprisingly. Roosevelt and J. and Malcom X. nor can his realization of the American Dream be called a rag to riches story. more than anything else. “a polity substantially founded on the genocide of one race and the slave labour of another”. So many others died in these movements. he will also have to rework political. especially in Asia. his rise would not have attracted such exaggerated media attention. he would look like a mulatto character from Faulk-ner’s novels who suddenly has woken up into the twenty–first century multicultural America and remembers no nightmares of the reality of his 18th or 19th century past of racial discrimination and historic humiliation. but got elected to the Senate in November 2004. economic and diplomatic equations with almost every important country of the world.BARACK HUSSEIN OBAMA Obama’s overblown media image has blurred the perceptions of the proverbial common man.F. To a perceptive observer. He also made official trips to Eastern Europe. In July 2004. and 52 per cent of those in the 30-44 age group vote for Mr Obama. He was defeated in the US Congress elections 2000. Obama’s sudden rise. During the 110th Congress he contributed to legislation on lobbying and electoral fraud. He is the first African-American to hold the office of the President of the United States. As President. climate change. Obama is a graduate of Columbia University and Harvard Law School. re-presents the mixed. How long the honey. Obama’s middle Muslim name created some early troubles but repeated assertions of his deep Christian faith finally overcame the public doubts. He. no doubt. immigrant middle-class of the present-day USA. He has been compared to Lincoln. educated. He faces the enormous task of putting the derailed economy on course and sustaining the vast but doubtful military involvements of USA abroad. He worked as a community organizer. both of whom got assassinated. He strictly prohibited his campaign staff from .moon with the media will last is hard to say. will also soon start glowering at all Americans—implications will be global. care for US military personnel returning from combat assignments in Iraq and Afghanistan. Kennedy. what kind of President he would make. is the outcome of racial politics. These events have left a great impact on American society and transformed large segments of its people. He has certainly benefited from the legacy of the civil rights and black liberation movements of the 1960s. the Middle East and Africa. but these comparisons appear invidious because all of them were white Americans. He also taught Constitutional Law at the University of Chicago Law School from 1992 to 2004. Yet. Thus. he is not entirely the creation of the media. and practiced as a civil rights attorney in Chicago before serving three terms in the Illinois Senate from 1997 to 2004. As a Democratic minority member in the 109th Congress he helped make legislation to control conventional weapons and for greater public accountability in federal funds spending. it is difficult to understand him as a political leader and to say definitely. at this starting point of his Presidency. The spell of relief from the outgoing toxic Bush administration will be over soon The obvious historical significance of an African-American taking over as President of the United States. he is neither a product of that legacy nor one to associate with its militant ideological stance. Had he been purely white. instead of half-white half-black as he is. In spite of the fact that most facts of his life are known to the public. nuclear terrorism. where he was the first African-American president of the Harvard Law Review. That social transformation is believed to have been responsible for making 66 per cent of those between the age of 18 and 29. led by Martin Luther King Jr. he is its absolute beneficiary.

the poor and the unemployed. He edited the Harvard Law Review. He made broad promises to rebuild a crestfallen nation—its infrastructure. To that extent. he has expressed his unwavering commitment to escalate the war in Afghanistan and widening the scope of US bombing in northwestern Pakistan. to stop Iran’s nuclear program.wearing any visibly Islamic gear. Obama criticized the UN for permitting the Iranian President Ahmadinejad to address the UN General Assembly even when US national agencies confirmed that Iran has no nuclear weapons program. this was described as “a cynical kind of pragmatism”. So the Right Wing labelled him as a “socialist” but to no effect. both in public or on television. Mr Obama has been advocating a military policy that is incompatible with the investments he has proposed to re-build America’s failing physical and social infrastructure. notorious for extreme curtailment of civil liberties in recent US history. He stopped former President Jimmy Carter from speaking at the Democratic Party Convention for fear of a backlash from the Israeli lobby. We can”. The financial meltdown too came just at the right moment to turn the tables on John McCain. somewhere there is a quirk in his leadership—projected as pacifist and progressive. He has reiterated quite a few times his intention to use all American power. without compunction. Will they and other big donors not be rewarded? His previous record in politics shows that he made a speech opposing the impending Iraq war in 2002. “Yes. He forged a cross-racial coalition of the young. the veteran Israeli writer and peace activist. including military force. Washington lobbyists and lawyers. as also the middle classes imparting to his campaign—a progressive veneer in a nation soaked in neoliberalism. taught law at Chicago University. He made it a point to visit churches and synagogues but never a mosque. not all from small donors. but as a Senator he. Mr Obama’s stirring populist rhetoric during the campaign and use of words like “Change” and “Hope” and undulating chant. Obama’s campaign raised far more money than any other US pre-sidential candidate in history. contrary to his campaigners’ claim. winning the elections proved easier than subduing Hillary Clinton. ignoring the unsolicited counsel of important newspapers like The New York Times and International Herald Tribune. Uri Avnery. its education and health systems and to revamp its tax structure to favour families earning less than $250. Fewer than 2. nearly 6. He. before he came even into the Illinois Senate but he voted in favour of every war appropriation bill during the Bush administration. the communication industry and the electronics industry. Lobbyists alone gave $37 million. he has indicated continuity of Bush administration’s military unilateralism. along with Mr McCain. and was a civil rights lawyer before coming into politics. For Obama.600 contributors to Mr McCain campaign fund were “chief executives”. healthcare-related private interests. boosted a demoralized nation and supercharged its younger people. described Mr Obama’s appearance at the AmericanIsraeli Public Affairs Committee (AIPAC) as one that “broke all records for obsequiousness and fawning”. Thus. His foreign policy postures also reflected a similar stance.000 a year. nuclear and pharmaceutical industries and all kinds of big business made huge contributions. voted in favour of the bailout plan that gifts hundreds of billions of dollars to the very financial institutions who caused the infamous meltdown. His pursuit of support from Israel and the Israeli lobby in the US has been persistent. with or without the consent of the Pakistanis. Almost in Bush-like tones. .000 of Mr Obama’s contributors were listed as chief executive officers. voted for the Patriot Act 2. As President-elect he urged the Bush administration to bail out General Motors as well.

Decision makers in rich countries hold the ultimate power to decide the fate of billions but cannot think beyond their own national and geographic boundaries. though without flair. . The sly diplomacy of the western nation-States led by the USA is shocking. we have to consider the Indo-US relationship under Mr Obama? The basics of the new Indo-US equation were formulated under Mr Clinton and not under Mr Bush. he will only see an Asia Rising—not a very comfortable thought even for an African-American President of the USA! SUSTAINABLE DEVELOPMENT AND ENVIRONMENTAL ISSUES Governments continue to dither and differ on solutions and their adoption. but if Obama looks forward. They can also not think of times beyond their own. The rich nations. are smug with the thought that their own country would not be so badly off. They care only for their immediate national interests. in fact. This was the reason why the Lieberman-Warner cap-and-trade Bill got defeated in the US Congress. US Senator Joe Lieberman acknowledged at a group discussion that US government dishes out such ideas and information as foster resistance in the US Congress to America slashing its high emissions. For their failure. The Kyoto Protocol had targeted only 7 per cent reduction in carbon dioxide emissions below 1990 levels but richer nations did not adhere to their commitments. inviting sharp division between haves and have-nots. the US-Israel-India axis for West Asia. Such beliefs could prove devastatingly illusory. Experts are in panic because the rich nations are trying to lock in their advantages by revising the 1992 Rio bargain and re-ordering their Kyoto Protocol obligations. they are blaming India and China. But. belatedly the Nuclear haves are tackling the anomalies through the India-USA Nuclear Deal. They are resorting to high sounding rhetoric to justify their lack of responsibility and asserting that global warming cannot be slowed down unless India and China agree to cut their emissions at par with them. who currently wield great political clout. gain by climate changes because warming would bring about favourable changes in terms of cropping and vegetation. he can only look backward to the USA’s past glory. on a similar pattern as was created by the Non-Proliferation Treaty (NPT) when the Nuclear Powers tried to impose an unequal treaty to which India never became a signatory. Men of narrow vision believe that global warming would affect different countries differently and some. For an assurance of his doubtfully great presidency. a new bargain is being hammered out for fashioning a 2009 Copenhagen Protocol to rich nations’ advantage. We must not forget that the USA accounts for nearly a quarter of the world’s total carbon emissions. A far-reaching military alliance for the Indian Ocean and beyond. pushing the world to the brink of global disaster. Recently. with their vast technological resources. Now. thus providing them with greater food security than they enjoy currently. the nuclear trade are likely to be pursued by Obama. even though emission levels in these countries are much lower. appear to have calculated that countries in the colder climes would. America is a futurist nation. There could be some pressure to sign the Comprehensive Test Ban Treaty (CTBT) but that will not endanger nuclear trade.Finally. Obama represents a declining West and America. On Climate Change. the threat of climate change is global and cannot be dealt with by individual nations who all face the challenge of sustainable development.

“Accelerated melting of glaciers and mountain snows would affect river-water flows. besides breeding unmanageable viruses. this potential threat looms very large. a security expert. The Great Game over water. Climate change potentially can wreck agriculture. including in higher latitudes. we can see that climate change could escalate interstate and intrastate competition and contest over natural resources. Climate change. But in the present situation. It is true that our scientific knowledge at this time is short of fully understanding and answering questions that are being thrown up by climate change and changing world environment. US President and other western leaders find the environmental issues as mere exaggerated projections of scientists and human rightists. as is already being seen. They. in the subsahara regions it is bringing rain and greenery and a new pattern of cropping that these deserts never saw before. The efforts and vision of sustainable development at this time is enveloped in an atmosphere of devilish disregard to the questions of survival. says Brahma Chellany. So. In the present international political scenario. Strangely. They are not willing to work out arrangements that are equitable and fair to all nations. will have Asia in its grip. China’s control over Tibet. although higher average temperatures are likely to bring more rainfall in the tropics”. will make weather patterns more unpredictable everywhere. There is danger and risk in this climate of distrust and division among governments of the world for people everywhere. Western powers’ political and economic dominance will continue. We cannot talk of sustainable development and national interests at the same time. which is the source of all major Asian rivers except the Ganga. These two countries are fast developing and leading other poor nations in the WTO and other forums. China and India’s enlarging economies are causing concern among Western nations and they would do every thing possible to keep India and China at a competitive disadvantage. And. therefore. The western countries are not in a position to ignore the huge developing markets and economies of these two Asian giants. China and India are being targeted to bear the maximum brunt of climate change even though their current contribution to global warming is small compared to that of the advanced G-8 countries. . Western powers are finding it difficult to divide the poor nations at the economic forums and so is also the case at the Climate Change Conferences. floods and droughts have affected Europe and USA as much as Asian countries. may create problems of continental dimensions for agriculture and sustainable development and countries from India to Cambodia could find it difficult to sustain the growth of their economies. underestimate the likely impact of climate change. Globalization is being exploited by richer nations to gain an upper hand and not for treating the McLuhanesque global village as one community. For India. Western diplomacy works on the principle that national interest is the ultimate director of foreign policy and the powerful nation is entitled to use all the persuasive-coercive tools to make other nations bend to the powerful nation’s demands and interests. they are forgetting that there will be no winners against global dimensions of climate change. public health and ecosystems in colder lands also. Un-seasonal heat and rain. Another important point to remember is that China and India are no longer weak on the negotiating table. are trying to trick and deceive the poorer nations into arrangements that would render them even more vulnerable. whether it is the question of subsidies at the WTO’s Doha rounds of talks or global bargaining on climate change. experts predict. These divisions and unresolved disagreements will create more threats for humanity. In the upper reaches of the Arctic already warming is twice as fast as the rest of the world.The Western powers.

“Under no circumstances should the State impose additional inequalities. 1950. no one is above the law. Another innovative but highly coun-ter productive measure is the buying of carbon credits from poor nation-States to exceed carbon emission targets of richer nations. The changing pattern of production and how it will impact humanity at large is illustrated by the diversion of food for biofuels that has created a windfall for major farm industries while pushing the world’s poor to greater backwardness. the Indian democracy has not fructified. often phrased as ‘equal protection of the law’. spreading extremism and high frequency of unpredictable weather are in store for the whole world. failing states. has been losing land to saltwater incursion and further trend in this environmental change will force its people to enter India in hordes. Democracy is for the people. economic. However. According to the constitutional law expert John P. Rich or poor. “The rule of law” does not prevail in India. Already. including an 18-month long State of Emergency. political challenges. Bangladesh. is fundamental to any just and democratic society. The laws in a democratic State are created in the name of the people by the elected representatives of the people. ultimately.” In a democratic State. it should be required to deal evenly and equally with all of its people. Its constitutional goals and democratic aspirations remain unrealised. Frank. it has been a momentous journey since Independence in 1947 and adoption of the Constitution on January 26. The right to equality before the law. This is proving as no more than mere “environmental grandstanding” and a form of “carbon colonialism” because. Looking back. Yet. Disparities are bound to get aggravated. the challenge to its democratic governance persists. the net impact on global warming remains the same. They are not supposed to be imposed upon . This is how the issues of environment and sustainable deve-lopment are inextricably linked. if governments do not come together to deal with questions arising from the issue of changing climate and its impact on human environment. The resource conflicts and uncontrollable migrations. INDIAN DEMOCRACY AND RULE OF LAW India is considered a well-established democracy. The influx of aliens would disturb the local populations and “provoke a backlash” and internal and regional security will be threatened as there would be strains on the resources. In fact. Even though the Indian democracy has withstood six decades of social. It has been proved beyond doubt that social and economic progress achieved by developed democratic societies is directly the result of their vigilant protection and enforcement of the rule of law. Climate Change will devastate the vulnerable economic sectors altogether. The whole concept of sustainable development is in jeopardy because of climate change and human security itself faces the maximum threat. said Abraham Lincoln.Higher extremes of weather could create a rise in ocean levels and will “spur greater interstate and intrastate migration—especially of the poor and the vulnerable—from the delta and coastal regions to the hinterland”. We may argue that life does not treat every one equally and even in the same family each member has a different course of life. political ally of the State or its opponent—all are entitled to equal protection before the law. Simply put. majority or minority. by the people and of the people. the State and its systems are the creation of man and not of fate and the State has the responsibility to treat all its citizens equally. threats to the rule of law are relentlessly subverting Indian democracy and imperilling its system of governance in the country.

[8] Defendants should have access to additional protections against coercive acts by the State. written charges that specify the alleged violation. In a demo-cracy. [4] The authorities must grant bail. Once the laws have been made and the people obey them. This prohibition must be absolute and the police must not use torture or physical or psychological abuse against suspects. to the accused pending trial. those who administer the criminal justice system hold great power and the potential for its abuse is inevitably there. A democratic society that tolerates such abuses faces the peril of curtailing its democracy and even losing it. [2] No person can be arrested without manifest. that is. seize property. no democratic State is free from secret. The history of every society shows that the power-holders tend to get corrupt and tyrannical. torture. if there is little likelihood of the suspect to flee or commit other crimes. such as community panchayat’s punishing members of their community for violation of their customs. [7] The so-called ex post facto laws are also proscribed. For example. [5] Persons must not be compelled to be witnesses against themselves. These are laws made after the fact so that someone can be charged with an offence even though the act was not illegal at the time it was committed. if the court finds the charge and arrest invalid. There is a sound presumption that citizens of a democracy submit to their laws because they know that they are submitting to themselves. exile and execute individuals without legal justification—and even without any formal charges being brought. threats. no one be charged with the same offence twice. as makers of laws. There are essential requirements of due process of law in a democracy that may be briefly described as follows: [1] No one’s home can be broken into and searched by the police without a court order showing that there is good cause for such a search. Democratic States too must have the power to punish the wrong-doers but the rules and procedures by which the State enforces its laws must be explicit. however indirectly. The . [6] No person shall be subject to double jeopardy. A legal system that bans forced confessions stops the police from using torture. arbitrary and manipulative power and political trickery. Yet. They must have the right to a speedy public trial. No State can exist without having the power to maintain order and punish criminal acts. even if the accused is not able to pay for such legal service. must be prohibited. both law and democracy prevail. The accused are entitled to know the exact nature of the charge against them and must be released at once under the doctrine known as habeas corpus. The State power is exercised to imprison. as determined by the traditions and laws of the society. or conditional release.them. or other forms of abuse to obtain information because the court will not allow such information as evidence during trial. in the United States the accused have a right to a lawyer who represents them at all stages of a criminal proceeding. The midnight knock of the secret police is repugnant to democracy. “Cruel and unusual” punishment. [3] Persons charged with offence should not be held for protracted periods in prison. transparent and open to the public view. and to cross-examine their accusers.

as directed by the Constitution. As a result. This lack of respect for laws by the government and the people at large is becoming a most serious threat to Indian democracy. however. the level of corruption is exceptionally high. Rights Commissions and Forums are only increasing the role and size of the insensitive bureaucracy in the system of governance. Innumerable law schools and universities have come up but the ethical standards in the legal profession have sunk very low. .police must inform suspects of their rights at the time of their arrest. Judicial interpretations have expanded the scope of our fundamental rights as enshrined in the Constitution. It has allowed public interest litigation petitions and genuinely intervened in the areas of child labour. A report of the National Commission to Review the Working of the Constitution in India noted: “The paradox of India. in view of the vast and unmitigated violations of justice. All that our institutions have done is to rouse high social expectations with a modicum of their fulfilment. nor unassailable principles. We do have the laws. we have a vast body of rules that are followed more in their violation than in their observation. leave aside other innumerable crises of the Indian legal system. Indeed. lack of shame and the absence of any sense of public morality among the bribe-takers. they wear their badge of corruption and shamelessness with equal élan and brazenness. Citizens too have ceased to care for the laws and be law-abiding. including the right to have a lawyer and the right to remain silent for avoiding being witness against themselves. is that in spite of a vigilant press and public opinion. these judicial achievements simply pale into insignificance. are being practiced by India’s institutions. the Indian society is bereft of the benefits of constitutionalism. The behaviour of those who govern is highly reprehensible. but no implementation of these laws. Higher Judiciary has also helped overcome restrictions on rules relating to locus standi and created new avenues for seeking remedies for violation of human rights. Though efforts have been made to enforce and institutionalise the rule of law in India they have not achieved the intended results. However. no deep values have been ingrained. They are creating and perpetuating an unjust society that the people now accept as a fact to live with. They have no respect for the laws of the land. The Indian people are fast losing trust and faith in the democratic institutions.” In the last decade there has been an expansion of legal education. The Indian judiciary enjoys good reputation both nationally and internationally for its progressive interpretation of various provisions of the Constitution that has helped promote the cause of social justice. become a universal phenomenon. The scale of prevailing inequalities and violations of human and fundamental rights have made the Indian democratic State look like a despotic dispensation. to cite a few instances of judicial intervention. This may be attributed to the utter insensitivity. Such judicial interventions on behalf of human rights have been successful in upholding the rule of law. clean and healthy environment. Plethora of laws and increasing number of Tribunals. Passing more laws and establishing more institutions is causing what appears to be an organized confusion in the legal system of the country. This has been provided by India’s Constitution and many institutions have also been established under it. Six decades of governance should have been long enough for a country like India with a very long tradition of Satyamev Jayate to develop institutions whose working would reflect both inherited and acquired values of enlightenment and rational social and political conduct. We cannot say that the normative framework of constitutional governance does not exist in the country. The abuse of power has. and women’s rights. bonded labour. Enforcing the rule of law itself remains a fundamental challenge. in fact. But. There is need for a fundamental re-examination of the approaches that have been adopted to enforce the rule of law and critically examine the effectiveness of Indian democracy.

Today. when we stand in front of our shopping malls. and there will not be any automatic career advancement but through open competition. multiplexes and other exhibits of money and . Comment. Vice Chancellors and faculty members is also the prerequisite of making India a knowledge hub. Democracy and the rule of law are inextricably connected.Both judges and advocates now indulge in corrupt practices. Neither the judges nor the successful lawyers now inspire the youth. MAKING INDIA KNOWLEDGE SOCIETY Having maintained steady economic growth over the years. Since public finance is an integral constituent of universities worldwide. MARKET ECONOMY VERSUS ACADEMIC PROFESSION A casualty of the expanding market economy has been the devaluation of the academic profession. Comment. irrespective of the compulsions of electoral politics or other petty considerations. We have already taken the first step in this direction by establishing the ‘National Knowledge Commission’. Granting intellectual freedom to universities. Since the objective of making India a knowledge hub is closely linked with the setting up of World Class Universities and Institutions undertaking high ranking research. When the goal is to excel. complainants and witnesses suffer the most in the crowded courts and through interminable trials. The master plan of establishing World Class Universities may hit many a roadblock unless and until the three key agencies—Human Resource Development Ministry. Once it is admitted that the universities shall grow without any covert or overt outside influence. without any political and bureaucratic control or interference. Adjournments have become a bane of almost every court. We need intellectuals and original thinkers and for this to happen we must provide facilities to our universities at par with world standards. Urgent steps are needed to establish a rule of law society in India or else our credibility as a democracy will get destroyed. Making India a knowledge society is not a pipe dream but a reality. when the only course open is merit. most of the new universities shall need significant initial financial support from the government. the goals envisaged now will begin to appear after some years and India will be on top as the fountain of knowledge. mediocrity is out of reckoning. expediency is ruled out. They have created an unbridgeable gap between the law as it obtains in the books and the law as it is actually practiced in the courts of diverse description. and when the competition is cut-throat. both actionable and achievable. The law itself favours the criminals. it is time to make India a knowledge society/hub. it is imperative that we focus on right perceptions and correct practices. compromise on quality is out of the question. highest and lowest in the whole country. University Grants Commission and National Knowledge Commission—agree on the need of allowing the proposed universities to prosper and excel in pursuit of the highest standards of academic and research achievements.

It is a matter of concern. eminent scientist. . Hence. There has to be a sustained campaign to point to the excitement of science and the discoveries that come through it. Under no circumstances should the market economy be allowed to undermine academic profession-cum-research. as the lacuna in law has been identified by the law breakers very well. The most startling issue was that the proposal was only to buy the stake of the promoters and not that of the company as a whole. Although comparisons are odious yet they are inevitable in the globalised village that we inhabit. This problem is likely to be even more acute in the envisaged élite new universities of the international standards. including high priority initiatives. Besides offering lucrative incentives to those who wish to go in for academic career as faculty members and research scholars. it is necessary to plug the loopholes by enacting a new piece of legislation. who happen to be the sons of the CMD of Satyam Computers.K. research and academic power. Recent corporate bungling in Satyam Computers has triggered a debate in the corporate circles as well in the government. One of the fallouts of the shortage of research scholars will mean hindering India’s progress as a knowledge economy. (b) Fraudulent moves by the corporate houses have been experienced even in the past. With a view to obviate such moves in future. and take up research. nurture and retain the country’s best young minds in academia and research. there is a crying need to provide better incentives to encourage youngsters to take up science and research as a career. highlighting the need for amending the statutes to prevent the recurrence of such incidents. Those at the helm of affairs should know that increased coverage in the media of different facets of teaching. both nationally and internationally. CORPORATE SCAMS Recent corporate scams have highlighted the necessity for enacting or amending suitable laws to protect the interests of investors and share. Arguments For the View (a) The Companies Act was legislated several decades ago when the trade and industry were in a nascent stage in the country. with the changing times. compared to 80 per cent in China. There is already a severe shortage of welltrained young doctorates to fill existing posts in research institutes and universities. For this to happen it would also be necessary to get the best amongst the young to come into science. there is a pressing need for urgent government policy interventions. In the opinion of prof M. without following any prescribed procedure under the Companies Act. without any transparency. Both competition and competence are the buzzwords. which are obvious now. At that stage several contingencies. If by design or default academic excellence is allowed to suffer at the altar of economic forces. This was an overt move to transfer the investors’ money from Satyam Computers to two promoters of Maytas. the legislation must also be amended suitably.holders. the consequences in the years to come could be quite unpleasant and unwanted. There is ample evidence that India is not well-placed and prepared for the future transformation since the growth in the number of doctorates has only been 20 per cent in the period 1991-2001.G. Menon. we find to our dismay that the real and regretful casualty of the expanding market economy has been the devaluation of the academic profession. The attempted move was aimed at benefiting two promoters of Maytas by more than Rs 7000 crore.” Give arguments For and Against this view. by proposing to buy their shareholding in Maytas Infrastructure in a slip-shod manner. can turn the tide in favour of academia. to attract. could not be anticipated.

(d) Deregulation of the economy is one of the objectives of the new economic policy. which are otherwise covered by the existing laws. It would be inappropriate to enact another piece of legislation just because of a mischievous move by one company. The possibility of similar moves by other companies in future. Unless there are certain safeguards. rather than creating new set of laws and rules. (c) SEBI has been set up by the government to safeguard the interests of the investors and to ensure that no company enters in to any unethical practice. the promoters are at the helm of affairs of the companies promoted by them and are actively involved in the decision-making process. Under such a scenario. is remote. Such a move would also restore the confidence of the investors in the markets. The need is to execute the existing legal framework efficiently. it would be wrong to enact new laws to regulate the economy further . Arguments Against the View (a) The case of Satyam Computers is an isolated one and cannot be treated as a routine affair. such decisions aimed at benefiting the promoters would continue to take place. The government must come out with a new set of legislation or amend the Companies Law suitably. (d) By virtue of their shareholding. There appears to be no need to have new set of laws to tackle such problems in future.(c) It is the responsibility of the government to protect the rights of the small investors. (b) The existing legal framework is sufficient to tackle frauds.

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