WHY CORRUPTION AND BLACK MONEY ARE NOT MAJOR PROBLEMS MR. KEJRIWAL?

WHY CORRUPTION AND BLACK MONEY ARE NOT MAJOR PROBLEMS MR. KEJRIWAL? (By S Ramamoorthy)


Mr.Kejriwal wants us to believe that only corruption is blocking our way to become Super Power Nation.....Eradicating Corruption is the only solution for the all problems currently being faced by India.

Lets see in this article why Corruption and Black money in fact are not big deal?

WHAT DRIVES CORRUPTION?

In 2013 India has ranked 94th out of 176 countries in Transparency International's Corruption Perceptions Index....But if we analyse the Top 20 ranked & Bottom 20 ranked nations in that list, it becomes clear that countries which have strong "Democracy" and follow "Free Market Capitalism" economic Model enjoy less corruption and vice versa.

But Why India is  at 94th place even though we boast ourselves as world's largest democracy.

Reason is the absence of " Free Market Capitalism".

HOW FREE MARKET CAPITALISM CAN HELP TO CONTROL THE CORRUPTION?

As told by modi, duty of any government should be Minimum Government & Maximum Governance and It is not the business of Government to be in Business. Problem with India is Maximum Government and Minimum Governance..

Why USA is being called as Super Power Nation? Because its GDP is $ 17 Trillion with 32 Crores population ( Per Capita income is around $53000 ) where as India's GDP is just $ 2 Trillion with 1.2 Billion population ( Per Capita income is around $1500 ).12 millions people are entering Indian Labor Market every year for Job. Economy has to grow at least at the rate of 8 - 9 % annually to accommodate them and just to keep unemployment rate at the same level.

If India wants to become super power nation ( to overtake USA's GDP) by 2050 and to generate employment for its youth, it has to grow continuously in the double digit  for next 4 decades.

Only one well proven economic model which can help us to grow at double digit is "Free Market Capitalism".

According to " Free Market Capitalism", market force will determine "Supply & Demand " in the economy and will fix price. Government role in the "Free Market Capitalism" is just to ensure the conducing business climate by removing Red Tapes, Bureaucratic Delays and to maintain Lower & Easy Tax Regime , Transparent Policies & Vibrant Judiciary to resolve contractual disputes in short time.Government should not run any business (such as Air India, Coal India, Indian Railways.etc..) since it cant run it efficiently and compete with private players and it should privatize every thing.

But irony is that India has ranked 134 out of 189 in "Ease of Doing Business Index" due to the Red Tapes, Complicated Tax Regime, Bureaucratic Delays, Impractical  Laws.

Only way left for Entrepreneurs to come out of this mess and to do business is corruption...

...So this is the system which has to be overhauled completely if we want to remove the corruption....Lokpal is not the solution and in fact it will further worsen the Business Climate since Government Officials will be wary of taking necessary decision fearing backlash..

 IN CURRENT SCENARIO, CORRUPTION IS IN FACT GOOD SINCE IT AT LEAST SPEED UP THE APPROVAL IN THE ABSENCE OF STRUCTURAL REFORM.

HOW INDIA IS LOSING RS 4.8 LAKHS CRORES EVERY YEAR BECAUSE OF CORRUPTION AWARENESS:

Corruption is the catchy word for politicians like Kejriwal since it reaches people very well. But what people dont understand easily is the terms like "GDP Growth" and "Tax to GDP Growth".....

Till 2008, India enjoyed 9 % GDP growth rate. During UPA II, it started to gradually fall and registered 4.8 % growth in Financial Year 2013- 2014 mainly due to delay in  Environmental Clearances, Land Acquisition and pending approval from Government Agencies . What does it mean?

 1 % of Indian GDP is equal to Rs 1.2 Lakhs Crores ( India's total GDP is Rs 1.2 Crores Crores or $2 Trillion USD)......India's Current GDP growth rate is around 5 % which is very less from 9 % it enjoyed in 2008. It means that India is losing Rs 4.8 Lakhs Cores  money every year....India's Tax to GDP ratio ( income earned by government of India) is 10 % which means that Government of India is losing Rs 48000 Crores income every year because of less growth.

In contrast, loss projected in 2G scam is just Rs 1.76 Lakh Crores which made Head Lines. But Indian Economy is losing Rs 4.8 Lakhs Crores every year and Government of India is losing Rs 48000 Crores revenue every year due to slump in GDP growth which nobody seems to  care.

As informed earlier, if India fails to grow at the rate of at least 8 - 9 %, it cant accommodate 12 million people joining labor force every year. This surge in unemployment is dangerous and will result in social unrest.

This author has argued in one post titled " What India Should Learn from the Eurpoean's Secession Movement" that it is duty of government to ensure that its citizens are always running after money ( to consume more ) for the sake of unity of India.

Conclusion:

Only way to remove corruption is to overhaul the entire system which causes corruption. In the absence of any structural reform ( which will take several years and requires political will), corruption is in fact good since it will at least speed up the approval process resulting in GDP growth.

ENACTING LOKPAL WITHOUT STRUCTURAL REFORMS IS BAD FOR ECONOMY AND WILL FURTHER CAUSE CHAOS SINCE GOVERNMENT OFFICIALS WILL BE WARY OF TAKING DECISION FEARING BACKLASH.


lets see the following in Part 2 of this article:

1, WHY BRINGING BLACK MONEY TO INDIA WILL STROKE INFLATION AND NOT GOOD FOR ECONOMY?

2 . WILL  BRINGING BLACK MONEY TO INDIA KILL INDIA'S EXPORT SECTOR INCLUDING IT?

INDIA'S MARS MISSION: HOW ORBITAL MECHANICS WORKS?

INDIA'S MARS MISSION: HOW ORBITAL MECHANICS WORKS?  (By Sanjeevi Ramamoorthy)

India has become the first nation in the world to have successfully achieved the Mars Mission in its Ist attempt itself. Only 3 Countries (USA, Russia & India) & 1 Continent  (Eurpoean Space Agency) out of 200 countries in the world have so far successfully sent the orbiter to the  mars. There have been 52 attempts by the various nations in last 60 years to send the orbiter to mars. But only 22 missions have become successful. ( Approx. 40 % Success rate).


How Inter Planetary Spaceflight Works?

There are two ways to send the Spacecrafts to the mars. Shortest Way ( Less time Consuming Method)  is called as crow flight method / brutal force method in which spacecraft is sent from the earth orbit to mars against the sun's gravity through the continuous force generated by the burning of rocket fuel as explained in the below image.


          
            (Illustration of Crow Flight Method)

However, it is not practically viable due to the requirement of Huge Fuel ( Since we lack the knowledge of any other method to accelerate Spacecraft in space  except Newton's Third Law and Gravitational Sling Shot ( which is not effective between earth and mars)).

How Hohhman Transfer Orbit works?

Most economical method of sending spacecraft to mars which all nations currently follow is called as Hohhman Transfer Orbit Method.This is the most economical way of sending space craft since it consumes very less fuel but time consuming ( around 9 months to reach Mars).

According to this method, spacecraft will be  transferred from earth's orbit to the Heliocentric orbit ( orbit around sun) first which is marked in green color in the below diagram.

Why it consumes Less Fuel?

It is because of Heliocentric Orbit & Newton's First Law. Burning of Fuel is only needed to transfer  the spacecraft ( to attain the escape velocity to get out from the influence of earth's gravity) from the earth's orbit  to Heliocentric orbit. Once it is done, it will simply start orbiting around the sun in Heliocentric Orbit like earth and all other planets normally do. Newton's First Law allows this space craft to be in constant motion without consuming further fuel.

Hohmaan Transfer orbit is nothing but highly Elliptical Orbit around sun which connect both earth's orbit and destination planet's orbit ( in this case Mars). The above diagram clearly shows the Heliocentric orbit in green color connecting both  earth's and mars orbit.

Most critical aspect of this method is that mars & space craft should exactly reach the apogee ( furthest point of the Heliocentric orbit marked as red dot) in the same time to make the "Mars Orbit Transition (MOI)" possible. It happens only one time in approx. every 2 years. ( 2014, 2016 & 2018).

INDIA'S LIMITATION & HOW IT ENCOUNTERED:

Even though, we have successfully sent the orbiter to the mars, we lack the the powerful rockets like NASA's Atlas V (which can lift upto 18 MT)  to carry the Heavy Spacecraft to space and to achieve the escape velocity ( 11. 2Km /s)  to move out of earth's gravity pull.

Our PSLV can  lift upto 1.3 MT  only and can place the spacecraft only in Low Earth Orbit ( < 500 Km from the earth surface). It lacks the capability to directly inject the mangalyan in Mars Transfer Orbit (HeliocentricOrbit) . Only solution for this problem is to use the Method Called Orbital Maneuvers.

Earth Orbit Maneuvers:

According to the Kepler's 3rd Law, orbital speed of the spacecraft will increase due to the gravity when it reaches perigee ( closest point in the elliptical orbit) and decelerate when it moves towards apogee ( furthest point in the elliptical orbit) .

So If we fire the Liquid Apogee Motor (LAM) exactly when it reaches perigee ( as illustrated in below diagram, we can increase the distance of apogee ( which means that velocity of spacecraft will get increased as per Kepler IIIrd Law when it reaches perigee again). This method is called Earth Orbit Manuevers. See the below video to know exactly how it works.

                                   ( Video Illustration of Earth Orbit Maneuvers Method?)


After 4- 5 earth Maneuvers ( around 1 Lakhs Km apogee distance), mangalyan had attained velocity ( 11.2 Km/s) sufficient enough to escape from earth's gravity and to get transferred into Heliocentric Orbit.. This process is called Trans Mars Injection.

                           
                          ( Mangalyan's  Earth Orbit Maneuver to attain the escape velocity)

Once spacecraft reaches Heliocentric Orbit, newtons first law will help it to reach mars orbit with out consuming fuel.

MARS ORBIT INSERTION:

Once Mars & Space craft reaches the apogee of Heliocentric, next challenge is deceleration.

Challenge in this phase is to decelerate the Spacecraft to a level where it wont escape the gravity of mars. But risk is that deceleration beyond the certain limit will lead the spacecraft to crash in mars surface. Challenges are to get the spacecraft into the capture orbit of Mars ( approx  within 1 Lakh KM) and to decelerate it to < 2Km/ s velocity.

                          ( Isro's simulation video explaining how Mars Orbit Transition Works)


Another efficient method to accelerate and decelerate the spacecraft without consuming fuel is Gravitional Sling Shot in which orbital energy of the planets is being converted to accelerate the body and vice versa. But it is not effective between earth and mars. NASA's Interplanetary missions such as Volyager1, Voyager II, New Horizon have sucessfully used this method to travel to the end of our solar system.

1.HOW GRAVITATIONAL SLING SHOT WORKS? CAN WE USE THIS METHOD FOR INTER GALACTIC TRAVEL?

2.  IS FASTER THAN LIGHT TRAVEL  POSSIBLE?

3. WHETHER "WARM HOLE" IS THE EASIEST WAY TO REACH OTHER GALAXIES?

4. CAN "SPACE - TIME" CAN BE WRAPPED ACCORDING THE EINESTIN'S GENERAL THEORY OF RELATIVITY?

          ( Let's discuss in the Part 2 of this article)

EVOLUTION OF SLEEP: WHY DO WE WASTE 36 % OF OUR LIFE TIME IN SLEEP? - PART 1

WHY DO WE SLEEP? ( By Sanjeevi Ramamoorthy)

We Humans waste 36 % of our life time in sleep. WHY CANT WE AVOID SLEEP WHICH WILL GIVE US EXTRA 32 YEARS (IF WE LIVE TO 90 YEARS) ? What is the necessity of Sleep through the eyes of Neuro Science and Bi logical Evolution?

After 50 years of research, William Dement, founder of Stanford University's Sleep Research Center, replied to the above question that , "As far as I know, the only reason we need to sleep that is really, really solid is because we get sleepy". 

MYTHS ABOUT SLEEP:

1. Myth No 1: Sleep helps body to Conserve Energy

 Wrong. Energy required for Metabloism if we sit idle is approx around 95 Kcal / Hr where as it is  90 Kcal/ Hr during Sleep. 8 Hr Sleep will save approx 50 K calories only  ( Equal to calories in one small cup of Tea). Negligible. In some Animals, energy required to sleep is more.

2. Myth No 2: Brain needs rest

Wrong. In fact, brain is very much active ( emitting Alpha wave having 8 - 13 Hz) during  REM ( Rapid Eye Movement) Sleep than normal awakening state.Metabolism of brain increases during sleep.

THEN, WHY Evolution  had ensured that all Animal Kingdom including Humans Sleep and Dream?

Sex & Survival are the two fundamental forces which drive the "Bilogical Evolution". But Sleep increases the risk of predation ( our ancestor lived among predators. Sleep increased the risk of being prey to the predators). THEN,  WHY BIOLOGICAL EVOLUTION CREATED SOMETHING CALLED SLEEP ? There is no single species in this world ( out of total 8.7 million species) which dont sleep.

WHAT IS CALLED SLEEP?

Sleep is the altered conscious state in which sensitivity to the external stimulus is limited / partial (where as in coma condition, responsiveness to the external stimulus is null). But, our Sub - Conscious mind is very much active during the sleep state.

( Note: Science is yet to unlock the mystery of How Consciousness is being created in our Human Brain.)

(Vsuce Video on Sleep and Dream)

Sleep normally happens in 90 Mins Cycle. This 90 Mins Cycle has four stages as classified by American Academy for Sleep Medicine (AASM)

Stage 1: It is  Half Sleep State in which our Neuron Cell emits the Theta Waves ( 4 - 7 Hz). Approx, we spend 10 % our Sleep in this stage. Time in each cycle:  10 Mins
                             
Stage 2: In this stage, our sensitivity to surrounding will further come down. We spend normally 50 % of our sleep in this stage. Time in each cycle: 45 Mins.

Stage 3 & Stage 4 or Slow Wave Sleep: This stage is called Deep Sleep State in which our sensitivity to the surrounding is very much limited and our brain cells emit Delta Waves ( 0 - 4 Hz). Normally Nightmares comes in this stage. Time in each cycle: 15 Mins

After Stage 3 & 4 , we again go back to Stage 2 before proceeding to the most important stage called Rapid Eye movement or REM Sleep

REM ( Rapid Eye Movement Stage) Sleep: It is called Dream State in which most of our dreams happen. Our brain emits Alpha Waves ( 8- 13 Hz) equal to state of wakefulness Time in each cycle: 20 Mins.

This 90 Mins cycle repeats throughout the night.

                                                   ( Sleep Cycle in Normal 8 Hrs Sleep)

                                        
                                            ( Brain Waves Pattern during various sleep state)

OK. BUT WHAT IS THE NECESSITY OF SLEEP ( Altered Consciousness State) FOR THE SPECIES? WHAT HAPPENS INSIDE OUR BRAIN DURING SLEEP? CAN MODERN SCIENCE HELP US TO AVOID SLEEP SO THAT WE CAN SPEND 32 YEARS IN USEFUL WAY RATHER THAN SLEEPING?

NECESSITY OF SLEEP: ( NEUROSCIENCE OF SLEEP)

                                          ( Nova's Documentary on Sleep and Dream)

1. Growth and Cell Healing Hormones:

In some studies, it has been proved that growth Hormone and Cell Healing Hormones are being segregated during sleep. But it is not the major thing. 36 % of our life time is huge cost to pay for this Harmones which we can be artificially injected in return for Wake fullness.

2. Sleep & Memory:

Scientist strongly suspects that  the main purpose of the evolution of sleep and dream could be the learning, Creativity & Organisation of Memory ( learned in day time). Memories are stored in the  form of connection between various neurons cells in our brain. It seems this neuron cells follows the specific pattern of firing between them for each memory.

Studies have found that our subconscious mind recreates the memory (learned during the day time) inside our brain during our sleep. It is being hypothesized that NREM ( Non Rapid Eye Movement ) Sleep helps our brain to compare these newly learned memories with previous one ( Organizing).

REM Sleep (Rapid Eye Movement) stage actually acts as a Testing Field where this newly organised memories are being tested for the various permutation and combinations which leads to creativity,Innovation & better learning (Some studies in fact have proved these practically).

But, modern science is not able to explain why organisation of memory and process of creativity cant happen in wakefullness state since we lack the complete understanding of the Human Brain.

OTHER INTERESTING QUESTIONS ARE

1.WHAT ARE DREAMS? 

2.WHAT IS THE CONTRIBUTION OF DREAM TO OUR MEMORY PROCESSING AND ITS RELATION BETWEEN SLEEP? 

3.CAN WE REALLY CONTROL THE DREAM OF OTHER PEOPLE AND STEAL DATA LIKE IN THE MOVIE INCEPTION?

4. WHETHER TIME DILATION IS HAPPENING IN DREAM?

                          ( LET'S SEE IN THE PART 2 OF THIS ARTICLE)

WHAT INDIA SHOULD LEARN FROM THE EUROPE'S SECESSION MOVEMENTS ?

WHAT INDIA SHOULD LEARN FROM THE ONGOING EUROPEAN CRISIS ? : IDLE MIND IS DEVIL'S WORKSHOP ( By S.Ramamoorthy)

Sir Winston Churchil once said that India will be split into pieces..But Irony is that it is UK which is splitting....In contrast, India with so much diversity ( 7 religions, > 1000 languages and 1.2 Billion Population) still remain as Single Country  boasting as World's Largest Democracy ( unprecedented in the world) without any major secessionist movements.

What is the status of UK & Europe which once upon a time ruled  almost the entire Globe?

                                             
                                                     ( Catalonia Independence Protest)

Scotland (part of UK) is set to hold referendum on 18.Sep.2014 to become independent Nation. Without Scotland, GDP of UK will be less than India. In Last Week, 1.8 Million people of Catalonia ( part of Spain) have protested in streets demanding Independence from Spain. Venice wants freedom from Italy and Some part of Poland also demand separate country. Even Survival of so called Euro Zone ( Economic Union of 18 Countries with 3.5 Crore Population and GDP of 9.5 Trillion USD ) is Big Question Mark after 2012 European Debt Crisis.

We all know about 2012 Arab Spring ( Demonstration and Protest of common people which thrown away the rulers) of Egypt, Libiya, Yemen & Tunisia.

WHAT INDIA SHOULD LEARN FROM THIS SUDDEN SURGE IN SECESSION MOVEMENTS IN THE WORLD? WILL IT HAPPEN IN INDIA ALSO ONE DAY? HOW TO PREVENT IT?

UNITY OF INDIA:

As  said by Mr.Cho Ramaswamy, three things which hold India together as one country with these kind of diversity are 1. Hinduism ( 80 % of people united by this irrespective of language and region)  2. Constitution ( IPC 124 - A which bans sedition) and 3. Congress Party ( due to its Pan India Presence).  All these Eurpoean Crisis, Arab Spring and Fall of Soviet Union teach us one thing that " Economic Policy" of a country also plays a vital role in the unity of the country. HOW?

THERE MAY BE SEVERAL REASON FOR THESE SECESSIONIST MOVEMENT. BUT HISTORY TELLS US THAT THERE IS ONLY ONE REASON FOR ITS SUDDEN SPIKE. THAT IS ECONOMIC RECESSION.

Unemployment rate in Spain, UK, Italy & Poland are 25.1%, 6.5 %, 12.3 % and 9.5 % respectively compared to 3.5 % of India and their GDP Growth rates are 0.6%,0.8%, - 0.20% and 0.6 % respectively compared to India's 5 %). In fact, Euro zone is inching towards Deflation which is much more dangerous than Inflation.

SO IT IS CLEAR THAT SPIKE IN SECESSIONIST MOVEMENTS ARE RELATED TO THE ECONOMIC PERFORMANCE OF THE COUNTRY. EVEN QUELLING OF INDIA'S KHALISTAN MOVEMENT AND NAXALISM IN ANDHRA (BY THEN CHIEF MINISTER YSR REDDY) ARE MUCH ATTRIBUTED TO THE ECONOMIC IMPROVEMENT NOT BECAUSE OF MILITARY.

BUT HOW?

ECONOMIC SLAVERY: WHY IDLE MIND IS DEVIL'S WORKSHOP:

Most Dangerous weapon in the world is not Nuclear Bomb. It is Human Mind. It is essential for any government to make sure that its own people are always running after money. When people are running after money to pay their Home Loan, Auto Loan & Personal Loan etc, they have no time to concentrate on other matters resulting in peace and Unity of Nation. All Government needs to do is that to create economic atmosphere in the country which will convert people into economic slaves.

There are two kind of economic system in the world ( Capitalism and communism). Both system agree that wealth creation is nothing but increasing the total production (GDP) of a country. But it differs only in the owning of means of production. ( Capitalism allows privatization which communism bans)

We have witnessed the fall of communism in Russia & China. Only "Free Market Capitalism" can create prosperity as it did in the Europe, Japan, USA & China. But problem with Free Market Capitalism is that it is not a complete economic system. It operates on two basic Human Behavior. (Greed and Fear). Economic Boom ( Greed of the people)  & Recession ( Fear of the people) are inevitable in the Free Market Capitalism.  But, Advantage of Free Market Capitalism is that its flexibility and capability to evolve.( For information, Globalization is the latest evolution of Free Market Capitalism).

Hence, India should follow the well proven "Free Market Capitalism" to lift its people from poverty and to prevent the Social Unrest. Only "Free Market Capitalism" can create the prosperity and generate employment in the economy which will always keep the mind of the people under the drug called Money preventing them to think in the unnecessary things.

If India fails to create sufficient employment for its youth, social unrest is imminent like what happened during Anna Hazare Movement which was compared with Arab Springs. ISI has been trying to divide India through Terrorism and Hindu Musilm Riots. But it keeps failing to do since it lacks major support.

But, it seems that ISI is now funding so called NGOs to block the Major Development Projects in the country in the name of Environment Protection. Why? It dreams to create the social unrest by creating economic recession. Social unrest created though the Economic Recession has the potential to divide India like what is happening in Europe.


ONE OF THE EASIEST WAY TO QUELL ALL SECESSIONIST MOVEMENT AND TO PREVENT IT FROM HAPPEN IN FUTURE IS TO CONVERT PEOPLE INTO ECONOMIC SLAVES WHERE PEOPLE WILL ALWAYS RUN AFTER MONEY, NEVER GET SATISFIED WITH WHAT THEY EARN ( GREEDY NATURE OF PEOPLE WHICH IS IN FACT GOOD FOR ECONOMY SINCE IT INDUCES PEOPLE TO BUY THING RESULTING IN INCREASING THE AGGREGATE DEMAND OF THE ECONOMY) AND HAVE NO TIME TO THINK ABOUT OTHER THING.

When People gives importance only to the money, it will automatically eradicate the social ills called  Cast System, Communal Violence, Poverty & untouchability but it also comes with side effects like Cultural & Environment Degradation. But, even cancer Treatments have side effects like Hair Loss etc.,

SOME TIMES SIDE EFFECTS ARE BEARABLE IN FRONT OF LIFE THREATENING DISEASES (IN THIS CASE SECESSION MOVEMENTS).

WHY " MAKE IN INDIA" IS "MISSION IMPOSSIBLE" MR. MODI?

WHY " MAKE IN INDIA" IS "MISSION IMPOSSIBLE" MR. MODI? ( By Sanjeevi Ramamoorthy)

In his first Independent Day Speech to the Nation, prime minister Modi has openly invited  world to "Make in India". But Why "Make in India" wont happen unless Mr.Modi does the following Reforms?

INDIA'S ECONOMY AT A GLANCE:

India's GDP is $ 1.87 trillion USD ( 10th Largest in the World). Contribution of Agriculture, Manufacturing & Services to the GDP are 14 %, 21% & 65 % respectively.

It is clear that Indian Economy is totally dependent on Services like Software, Banking,Hotels, Trade ( 65 % contribution to GDP) for its survival. But irony is that it employs only 20 % of People whereas  Agriculture ( Just 14 % of GDP) contributes to 60 % of Employment. ( It means that 60 % of Indian People are sharing 14 % Income where as remaining 40 % of people are sharing 86 % income of our country. Real Cause for Social Inequality).

11 Million people are joining Indian Labor Force every year. It means that India should create 11 Million New Jobs every year just to keep unemployment rate at the same Level. But fact is that India has only added 7.5 Million Jobs  between the year 2004 -2012 ( UPA Legacy).

OOPS..!!!!!!...... SOME THING IS GOING WRONG. WHAT IS THAT? 3RD FASTEST GROWING ECONOMY IN THE WORLD IS NOT ABLE TO CREATE ENOUGH JOB. WHO IS THE CULPRIT?

Culprit is the Manufacturing Industry. Countries like China, Japan, Germany & East Asian Economies grew only because of manufacturing not because of Agriculture & services. Only Manufacturing Industries can create Maximum & Sustainable No of Jobs required to eradicate the Poverty. As long as India depends on Services Industry and Agriculture for Jobs, it will remain as Third World Country and cant dream of becoming Super Power. MODI KNOWS THIS VERY WELL. This is the reason behind his open invitation to world to set shop in India and to Manufacture ( MAKE IN INDIA).

BUT WHAT STOPS INDIA FROM BECOMING MANUFACTURING HUB FOR THE WORLD LIKE CHINA DESPITE HAVING CHEAP LABORS AND DEMOGRAPHIC ADVANTAGE ( Age of 65 % OF POPULATION IS < 35) ? AND WHY WORLD IS NOT READY TO COME TO INDIA?


1. INDIA'S DRACONIAN LABOR LAWS:

 Forget MNCs. Even Indian Companies are not ready to open Manufacturing Plant in India due to it's century old Labors Laws and Land Acquisition problem.Even Existing Companies also want to remain as small as possible rather than to expand resulting in importing even Toys from china which depreciate our currency.

Another interesting Statics is that only 10 % of Indian Labors ( out of  435 Millions) are working in Organised Sector. Rest 90 % of employment is in unorganized Sector. WHY? WHAT IS THE PROBLEM WITH OUR LABOR LAWS?

HIRE AND FIRE POLICY

In ever changing, unpredictable & Seasonal   market scenario, companies need Hire & Fire Freedom inorder to remain lean and competitive. But, Industry Disputes Act (1947) disallows companies having more than 100 employees to fire any employee without state government consent.

Result: It gives indirect incentive for companies to remain small ( less than 100 employees) and they never want to expand inorder to escape from this law. (Only 9 Lakhs companies out of 83 Million Companies ( Total Registered Companies in India) are enterprises. Rest are very small)

UNLESS MODI REFORMS THIS LAW, MNCs WILL BE RELUCTANT TO COME TO INDIA AND EVEN EXISTING INDIAN COMPANIES ALSO WONT EXPAND. INDIA WILL CONTINUE TO IMPORT EVEN SMALL TOYS FROM CHINA INSTEAD OF MANUFACTURING THE SAME IN INDIA WHICH WILL GENERATE EMPLOYMENT HERE.

TRADE UNION ACT:

According to Trade Union ( Amendment ) Act 2001 of India, just 10 % of employees are enough to legally register a Trade Union. It means that companies having 100 employees can have 10 different Trade Unions resulting in Chaos.

There are some other Laws Like Contract Labors Act, Apprentice Act, Indian Factory act which make it almost impossible for Manufacturing companies to oblige all laws and still remain competitive.

THESE LAWS ONLY PROTECTS 10 % OF INDIAN LABOR FORCE STALLING THE EMPLOYMENT GENERATION FOR OTHERS.

2. LAND ACQUISITION ACT:

Last Year, UPA II passed the foolish Act called Right to Fair Compensation and Transparency in Land Acquisition ( Major folly of UPA II to get Farmers Vote).

Major absurd points of this acts are as follows

1. Companies should compensate the  Land Owners the 4 times the Market Price incase of rural land and 2 times the Market Price in case of Urban Land.

2. In addition to the compensation, companies should provide alternate House for Seller along with Job / annual payment of Rs 2000 per month for 20 Years ( adjusted to inflation)

3.80 % of Owners approval is need for Land Acquisition.

4. Approval & Clearance from State and Central Agencies for Various Stages of Acquisition( We all know How difficult to get clearance from these agencies even after paying Bribe).

The above law is totally absurd and  will increase project cost multiple times in addition to the delay.

CONCLUSION:

If modi really wants to make India as Manufacturing Hub of the World and to realize the dream of "Make in India", he should immediately amend the Land & Labors Laws at the earliest with out fearing backlash from Trade Unions and So Called NGOs for the sake of aspiring young generation of India which need jobs and same kind of life style like their counterparts in Western Countries.

"MAKE IN INDIA" WILL BE "MISSION IMPOSSIBLE" WITHOUT THE LAND AND LABOR REFORMS.