LOC for FOE!

Freedom of Expression is in the news these days. Not just in the news, but also in social chatter. Young followers of this chatter may begin to wonder if in India there is Freedom of Expression at all. Of course, there is. Article 19 of the constitution provides for it clearly. Well, almost.  Article 19 of the constitution says “Everyone has the right to freedom of opinion and expression, this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers.” This is very clear. The devil as they say is in the details. Here it is in Clause (2) of the same article. Clause (2) of Article 19 of the Indian constitution enables the legislature to impose certain restrictions on free speech under following heads:

  • security of the State,
  • friendly relations with foreign States,
  • public order,
  • decency and morality,
  • contempt of court,
  • defamation,
  • incitement to an offence, and
  • sovereignty and integrity of India.

Therefore, I really wonder where is the confusion. The law and its provisos are very clear. Freedom of Expression does exist. But comes with its own riders. Why is it so difficult to understand this even for the liberal intelligentsia?

What is missed out in the above which is what is the grey area in the whole thing is the Right to offend in the garb of Freedom of Expression. Does Freedom of Expression come with the Right to Offend? Certainly not.

Let us look at the most recent case in India involving this Freedom of Expression which was the release of a poster for a documentary film that depicted a smoking Kali, a goddess revered by the Hindus in India.  As a film maker, Leena Manimekalai has the freedom to say what she wants in her films.  As some people now try to say – the poster very well could be depicting a character in the film playing the Kali role in a play and smoking during breaks. Many of us have seen actors in their make ups smoking at the back stage. Now the question is, what is the need to put up this one scene in the marketing collaterals for the film?

As we have seen the director’s further reactions to the uproar, it is obvious that the choice of the poster was not by chance. It was by intent. An intent to exercise her Right to offend – in this case, a section of the Hindu faith. Therefore, no one should complain if there is an uproar and start questioning the existence of Freedom of Expression in India.

At the same time, is there a need to arrest her and put her in the jail for this? I don’t think so. Right to outrage cannot be a response to Right to offend. By calling for her arrest, one is falling into the trap of fuelling the promotion of the film.

This was followed by TMC MP Mahua Moitra’s comment which again sparked condemnation and call for her arrest. This is stretching it too far. While condemnation is also exercising the Freedom of Expression, calling for her arrest is not. Her comment certainly does not fall under any of the reasons mentioned in Clause (2) of Section 19 that warrants a legal action.

One can see the pattern. Before the Kali poster controversy, it all started with the comment made by BJP’s Nupur Sharma on TV on the Prophet. As a spokesperson of the ruling party, she did cross the line by dragging the Prophet in the TV discussion. Not surprising that it invited condemnation from the Muslim countries and India had to handle the diplomatic fallout. Again, the call for her arrest and killing is totally not acceptable and condemnable.  In the same lines, the daylight killing of Kanhaiya Lal in Udaipur for a Facebook post in Udaipur is deplorable. This Action – Reaction cycle is going to be endless.

In all this, it is clear that one can exercise his or her Freedom of Expression openly while in private or in the known circle. But when you are in the public space, there is a need to exercise restraint and control. Because as some wise counsel said, “Your right to swing your arms ends just where the other man’s nose begins”. This can be stretched quite well to the issue of Freedom of Expression as well. While expressing in public, one should clearly be aware as to where the other man’s sensibilities lie.

Therefore, there is a need for drawing one’s own LOC (Line of Control) on FOE (Freedom Of Expression) while in public domain. In my opinion, one knows very well, when the Line of Control is being crossed. So, it is not that difficult to exercise control along the LOC.  This is not just applicable to individuals but to politicians and creative people as well.

Image Credit: Indianprinterpublisher.com

Where is the “India Story” headed?

  • World over, inflation is at an all-time high.
  • Oil prices are shooting up.
  • There is a shortage of Wheat and other food items.
  • China has shut down its major cities in pursuit of its “Zero Covid Policy”.
  • Experts expect China to be in some kind of a lock down till 2023.
  • Supply chain disruption which started with Covid in 2020 is still on.
  • US GDP growth rate this year is likely to surpass China’s after four decades.
  • The World’s love affair with China is over.
  • Russia’s Ukraine war is dragging on without an endgame in sight.
  • US companies have pulled out or shut operations in Russia.
  • Affinity for Globalisation is now fraught with “Conditions apply”.
  • Almost all nations are seeking “Atmanirbharta” in some form or other without saying so explicitly.
  • A Unipolar world with US as its vertex that existed for two decades since the end of Cold War has now withered.

So, if one looks around, the picture is not very rosy. Where does that leave with the much touted “India Story”?

I think that this phase of 2/3 years is most crucial for India that can make or break the India Story. And the reasons are as follows:

  • Globally companies who had invested heavily in manufacturing in China are looking at de-risking from China. As a country with a huge population and therefore a source for cheap labour, India can fill in, if we get our act together quickly.
  • We are largely English speaking in business and our systems are integrated with the world unlike China which has strong firewalls in place for integrating all systems.
  • India has already proven its prowess in IT and IT services worldwide.
  • We have a functioning democracy that provides inherent checks and balances where transfer of power happens smoothly as per the will of the people.
  • We have a stable government in place now for the past 8 years at the Centre with a leader who is acknowledged and regarded worldwide.
  • India is back on its feet after two years of Covid.
  • With a large consuming domestic population, it is an attractive market for many corporations.
  • India can be the magnet for attracting manufacturing investments in areas where we have core competency like Auto, Pharma etc.
  • India maintains friendship and strategic relationships with big powers like US, Japan, UK etc…

In short, reasons which are all obvious and which we are all mostly familiar with.

For a world that is looking at options, India can be that next best choice if we get our act together quickly. And that is a big IF. Why is it so?  History of India is replete with missed opportunities. Opportunities missed at times due to external geopolitical reasons but largely thanks to internal politics.  Can this time be different?

I believe keeping aside what happened in the past, as an eternal optimist, things can be different if we played our cards differently.  Towards this, I am suggesting a three-point agenda:

  • Put economic prosperity and therefore growth at the top of the country’s agenda. Think, breathe, and act basis the same.
  • This means that at the Centre, States and local level including WhatsApp groups, we must put a stop to all divisive agenda items. The country must focus single minded on issues related to economic growth. Today, at these crucial times, we are spending our time and attention on issues like origins of temples and mosques. I think we all know the origins of the temples and we don’t need to further spend time and resources to establish the facts.  This is a needless distraction at this point of time for us.
  • Centre and states must work towards this goal of economic prosperity as a team. Unfortunately, today, there is an atmosphere of Centre-state friction for which I believe both the Centre and States are responsible. On the other hand, if Centre and states co-operate and work together, I am sure the pace of growth can be fastened. Let me cite two examples to demonstrate my point:
    • In Mumbai, one of the crucial Metro line projects is now in limbo because of the tussle between Centre and State over the location of the Metro car shed/depot. This is clearly unfortunate and there seems to be no sign of a solution to break the impasse.
    • Last week, at the World Economic Forum at Davos, many of the states from India had individual booths along with a strong contingent to pitch for investments. This is indeed appreciable. But, what if, instead of states fighting among each other to attract investments, the Centre and states had worked a joint plan? What if we had a common India pavilion at a much larger scale with separate booths sector wise with participation from concerned states? I feel this would have made a much larger impact and will also ensure joint ownership in execution once a project is landed.
      • Labour is indeed a state subject. But it is high time a common acceptable labour code is thrashed out between Centre and states and implemented asap. A GST council type labour council be set up asap to arrive at a consensus on this. I believe that such a labour council will also help to wade off local political opposition to changes in labour laws for all political parties.
      • One of the key issues for attracting investments for manufacturing is making available land at reasonable prices. Again, a consensus among states and Centre needs to be arrived at for changes in the current land acquisition bill and implemented asap.
    • In essence between the Centre and State what is needed is Co-opted federalism and not Competitive federalism. Dwelling too much on semantics like “Union Government” Vs “Central government” is just a sheer waste of time.

Author and Columnist T.N.Ninan in a recent piece in The Print says, “For India, economic disorder is a reality to be reckoned with, but it also presents an opportunity” and I agree completely.  If we blow this opportunity, I am afraid that the India story will turn to be a Saas-Bahu type soap where the end doesn’t matter as long as there is some drama every day.

Wanted: Swachh Bharat Abhiyan 2.0!

After about 24 long months, we are finally seeing a relief from Covid! I am hesitating to say that we are seeing the end of Covid yet, looking at the past propensity of the virus to take different shapes and names to haunt us.  In India now, we see normal life returning. Children have gone back to schools putting an end to the tyranny called “Online classes” at least for now. Employees have started working, meaning working from offices except of course those who continue to follow a hybrid model. Shoppers have started thronging the markets and malls. Cinema halls have started seeing crowds. Events of all hue are back. Travel for pleasure and work has re-started. Traffic is back on the roads with a vengeance.  And garbage, filth and littering on the roads are also back!

Flash back to the day when Narendra Modi announced the kicking off of Swachh Bharat Abhiyan, a Clean India mission during his Independence Day speech in 2014, few months after taking over as the Prime Minister.  He said, “A Clean India would be the best tribute India could pay to Mahatma Gandhi on his 150 birth anniversary in 2019!” On the 2nd Oct, 2014 on Gandhiji’s birth anniversary, Swachh Bharat Mission was launched. I vividly remember the excitement it created immediately. There was a buzz around Swachhata in the following days in the whole country.

Everywhere I went, I could see and hear people talking about a Clean India. Politicians led “photo op” sessions to clean their neighbourhoods.  Celebrities followed suit. Social workers led actual sessions to clean their neighbourhoods.  Children followed suit.  Dustbins started making their presence felt all of a sudden in public places. Administration started spending money on keeping towns clean. Tourist places started to become cleaner. Railway stations, Bus depots sported a cleaner look.  Making cities, towns and villages “Open Defecation Free” became part of this program. Construction of toilets got a fresh impetus.  Even Bollywood appropriated the fever when a film titled Toilet Ek Prem Katha was made with Askhay Kumar in the lead with toilets for women as the theme. Swachh Bharat Abhiyan had arrived.

India had not become a Singapore but there was a movement in the right direction. But down the line somewhere, the goal post got shifted. Somehow the government made “Open Defecation Free” (ODF) by 2nd October, 2019 as the only goal of Swachh Bharat Abhiyan. Parameswaran Iyer, who had resigned from the IAS earlier was re-drafted as Secretary of the Ministry of Sanitation and Drinking Water and was tasked with achieving the ODF goal. He made the unthinkable happen.

As of November 28 that year, some 10.14 crore individual household toilets were constructed under the programme. And as per the concerned minister’s statement in Rajya Sabha, the sanitation coverage in the country, which was 38.7 per cent as on October 2, 2014 had increased to 100 per cent and all the 5,99,963 villages of the country had declared themselves ODF.  Therefore, while this goal of achieving universal sanitation through toilet construction was achieved, which in itself is not a mean achievement at all, the original objective of a “Clean India” got buried somewhere in the garbage dump perhaps. I am not yet clear as to when the goal post got shifted.

With the return of the Modi Sarkar in 2019 in the back of a historic win in the elections where toilet construction also played a part, the original Swachh Bharat Abhiyan seemed to have vanished from the collective memory of the nation. Then of course by March 2020, Covid struck and everything else lost focus and priority.

It is therefore I feel, now that we have a reprieve from Covid and things are getting back to normal in India, it is time to put Swachhata on the National agenda again. I read that in October 2021, Modi launched the second phase of the Swachh Bharat Mission-Urban (SBM-U) and the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) stressing that these missions were aimed at making India’s cities garbage-free and water-secure. So it looks like the program is in place. However, I don’t recollect (probably it could be due to our pre-occupation with Covid way back in October 2021) the launch of this second phase.

October 2nd, 2019 has come and gone and three more years have gone by. It is time to go back to the original idea of “A Clean India”. In my earlier posts on Swachh Bharat Abhiyan, I had mentioned that if this program fails, it is not because of Modi. It is because we as public failed the program. I see now that people are back to littering on streets. Paan spitting and “painting the city red” never even paused. I pity the municipality workers who are given the job of cleaning road dividers time and again of the paan stains only to be painted red just in a few days. Men peeing on highways has become a common sight again. Those toilets which were put across highways have somehow vanished! Garbage is overflowing from the bins on to the streets. Public places like municipality parking lots in Mumbai and Pune (which I have seen first-hand) are reeking of squalor like in the past.

There is hope still. When one sees for example, the Ghats in Varanasi or the Railway stations these days, they are squeaking clean. Just that the awareness about Clean India has to be brought back as a National obsession.  India needs Swachh Bharat Abhiyan 2.0.

As I wrote before, Swachh Bharat Abhiyan is not about cleaning but eliminating or reducing the need for cleaning in the first place. The onus of that of course lies with us, the public of India not the municipalities, not the State Government, not the Central Government and certainly not Narendra Modi.

Pic Courtesy: Swachh Bharat Mission website

Annual Budgets and Annual Reactions!

In the days following the Annual budget last week, I saw a clip going viral on WhatsApp which had Uddhav Thackeray, the Shiv Sena Chief and Chief Minister of Maharashtra speaking in a CNBC function to felicitate Finance Minister Nirmala Sitharaman. This clip (watch here) must be couple of years old. In the clip, Thackeray in a very self-deprecating manner, talks about his tryst with giving budget reactions. He says that for few years he tried to understand what’s in a budget but by the time he could do so, it was time for the next budget! But, since as the party chief he had to give some reaction to the budget, he developed a template response which was “This is a budget which will make poor poorer and rich richer” and more often this response for every budget landed well with his constituency. You would notice that even today, this response has a lot of owners among politicians! In today’s article in the Times of India, columnist and now a MP Swapan Das Gupta has mentioned that Vajpayee while in opposition had a stock reaction to any budget which was “Garib ke pet lat” (Kick in the stomach for the poor)!

If there are Annual budgets, there are equal and opposite Annual reactions! It’s therefore clear that one cannot go by the reactions of politicians on the budget to conclude how the budget has been. If leaders of parties and politicians cannot figure out what’s there in the budget how can we expect the common man to understand how it is going to impact him? While we all know that provisions in the budget have a huge impact on the livelihood of millions of people in the country who remain below the poverty line, during the budget week what we hear is only responses of people to whom budgets don’t matter. Those who are impacted by the budget are not in a position to comment because it is beyond their comprehension.

Here’s where I feel that the Budget presentation and the speech needs to be simplified if we want the common man to fully appreciate the implications of announcements being made by the FM on behalf of the government of the day. And here is my wish list on some of the changes I would like to see in my lifetime (I might have articulated some of this before also):

  • Articulation of what matters: In the run up to this year’s budget, the buzz was on jobs. We all know that in the last two years of the pandemic jobs got hit badly. In a double whammy, the pandemic led to a cut in existing jobs and slow addition of new jobs. Human/Contact facing service industry faced the worst hit. So, the expectation was that there will be clear actions to revive the job market. However in the budget speech, there was no explicit mention of job creation. In the post budget interactions, the FM and her team took pains to explain that the government has taken the route of propping up growth by spending which will lead to job creation. For example, they said that the huge 35% increase in outlay towards infrastructure and capital expenditure is a step towards reviving consumption in sectors like steel, cement etc. and jobs. This is logical.  Yet commentators continue to mention about the lack of focus on jobs in the budget.  And Aam Admi obviously feels the same.
    • Now considering that there was an overall anxiety and expectations about jobs among common people particularly those below the poverty line, what if the speech mentioned the estimated number of jobs that would be created due to the outlay? For example, “National Highways network to be expanded by 25000 km in 22-23 resulting in an estimated number of “X” jobs during the year”! 100 PM Gati Shakti Cargo terminals for multimodal logistics facilities which is expected to create “Y” number of jobs!
    • The same outlay but with a clear articulation of what matters like “jobs” this year, I think would generate a lot of confidence and comfort to the people for whom these announcements matter.
  • Putting out Outcomes of last year outlay before announcement of new outlays: During the entire budget speech the FM keeps announcing crores and lakhs of Rupees as outlays for different initiatives much to the loud cheers of the party MPs. But as public, we don’t get to know what was achieved with previous year outlays for the same initiatives to appreciate the new outlay.
    • For example, the health sector has been allocated a 16% higher outlay of Rs. 86200 Crore in this budget compared to last year outlay of Rs. 72931 crores. Now we don’t get to understand details of how the outlay of RS 72931 crores was spent and what was achieved. Another example – During the UPA regime, after the horrific Nirbhaya incident, an announcement was made of a “Nirbhaya fund”. I have no idea if that fund still exists and how the same is being put to use.
    • If we understand that, then we will be in a better position to appreciate the increased outlay for the next year.
  • Articulation of what went wrong: In the budget speech we never get to hear of anything that went wrong on the outlays or the outcomes in the previous year.
    • For example, the targets for disinvestment have been missed for few years now. But we don’t get to understand what went wrong and why those numbers were missed. It could be the procedural delays or timing issues (Bull Vs Bear market) or it could be pandemic related delays. This could be a very utopian thought but if the government of the day articulates the reasons for the miss, it will go in a long way building credibility in the budget process.
  • Articulation of how taxes work: Present a summary of how the taxes that have been collected have been put to use in the current year.
    • Many years ago, on a trip to Colombo, I saw at the heart of the city, some major repair work was going on with the roads and traffic was diverted. There I saw a board which said “Take Diversion. Your Tax money at work”! This was in the early 90’s. The fact that I still remember it and recall it here says about the impact of such earnest disclosures from the government side. What if at the beginning of the speech the FM says, “With the taxes collected last year, we could lay X kms. of roads, build Y number of new hospitals, open Z number of Colleges and schools and so on just focussing on the physical assets created with the taxes this year? Don’t you think that this kind of commentary will once for all remove the clamour for income tax reduction or slab changes or rants for paying taxes year after year?
    • I firmly believe that the common people who earn and can afford to pay the taxes must be co-opted in the nation building process. Such small gestures of earnest disclosures, I believe will go a long way in this.
  • Keep the jargons for The Economic Survey: The speech and announcements are supposed to pick up threads from the Annual Economic Survey. My suggestion is that Economic Survey being a reference document prepared by economists can and should use jargons like “Crowding in”, “Virtuous cycle”, “Animal Spirits of the economy” and “JAM Trinity” etc. while the budget speech should be left simple free of lofty jargons and acronyms.

This is the ace cartoonist R.K.Laxman’s cartoon way back in 1989 post the budget!

This could very well play out the same way even today. The only way to change the same is to simplify the budget speech and ensure that the common people are co-opted into the budget comprehension process.

HNY to HNQ??

As I sit to pen my first blog for this year in the early days of another New Year, I am reminded of my first post for the last year which was titled “Thank God it’s a New Year”! That time (1st week of 2021) we were just coming off what appeared like a terrible year. The entire world was disrupted by the global pandemic in a scale not seen or heard in many, many decades.  But then by January, we already were recovering and started gradually getting back to pre-Covid way of living. Lockdowns were over, travel started and so on. So, the theme of my piece then was that the worst was behind us and we must thank God that we are in a New Year and raring to go.

In the year 2021, we did finish the first quarter on a high. There was optimism all-around of a sharp turn around. But then, just in a few weeks, the world in general and India in particular was mauled by the 2nd wave.  I shudder to recount the horrifying things which were happening around us in the months of April/May/June/July. Enough to say that the cursed tentacles of the virus were still spreading all over spelling doom on all recovery predictions.  Drawing room conversations were all around the availability of vaccines and the time when vaccines will provide an eventual shield for the virus.

If we recall, by the third Quarter of 2021 however, things on the ground started changing rapidly. The vaccination pace picked up dramatically with better availability of vaccines by August. And we were talking about flattening the curve for the second time. Through the festival season in the months of October/November the mood was upbeat and we could start seeing the recovery even in “Contact sensitive sectors” like travel, tourism and so on.

Things started dramatically changing again with the discovery of the Omicron variant in South Africa in early December. And towards the end of December and as we speak now, we are witnessing another rapid spike in cases and preparing ourselves for the inevitable third wave!  If you have been following the IMF predictions for the global economy and specific countries through the pandemic, you will realise that they have been changing their forecasts every quarter up and down. Now, what am I trying to drive at here?

With such an uncertainty in the world triggered by a virus and its variants today and it could be something else tomorrow what does it leave for long range planning for a country /company /household etc.?  It is tough. To elucidate this point let me talk about the way Indian government handled the economic support during the pandemic versus some of the larger well to do countries. When the pandemic struck in March 2020, big economies like the US, Canada and European countries who could afford, opted for cash transfer to its people to pump prime the demand and therefore the economy. Some of the Non-resident Economists of Indian origin of the likes of Dr. Raghuram Rajan, Dr. Kaushik Basu and Dr. Abhijit Banerjee also advocated this route for India and were extremely critical of the Narendra Modi government for not going the whole hog and opting for a more calibrated “Drip support” approach.

In this approach, instead of direct cash transfer, the government opted for free supply of rations to the needy and generous support of working capital to ensure that the businesses stay afloat. There were also moratoriums on loan repayments for most part of the year 2020. The logic of the economic think tank that included the likes of Dr. Bibek Debroy (Chairman – PM’s Economic Council) , Sanjeev Sanyal (Principal Economic advisor in the Finance Ministry) and Dr Krishnamurthy Subramanian (Chief Economic Advisor) was to take one step at a time when how the virus situation will pan out was uncertain, uncertainty being the key word. The time period for which any support was to be provided was not clear. Also another important thing, during the pandemic induced lockdowns, the issue was in the supply side largely. People stopped going to salons during the pandemic not because they didn’t have money. The same logic can be extrapolated to other service sectors as well. So, the idea was to keep the powder dry for eventualities in the future. As per IMF’s Dr. Gita Gopinath, large economies including the US have no more leg room left to keep supporting the economy and hence are facing an imminent challenge if the virus continues to hold sway. I must say therefore that the Indian think tank certainly stand vindicated on this account when we had to contend with the second wave and now the third wave.

My point therefore is, are long term planning or Annual plans relevant anymore? Things on the ground change so dramatically and drastically these days that any assumption for the better or worse of the future happenings is proved wrong very quickly. Since in India we understand similes from Bollywood easily, let me give an example. RRR is the next film after Bahubali from the ace director Rajamouli. This is also a magnum opus that has been made in multiple languages. Obviously due to the huge budget involved, it had to opt for a theatrical release and was planned for a release in January. The entire team was seen doing mega roadshows in different cities as part of the promotion for whole of December. But then, I see today that they have taken a call to postpose the release due to the like increase of restrictions in many cities due to the Covid surge of late! So it is a matter of few weeks for things to change for the fate of a film that was on the works for five years!

Even in the context of business in the pre-Covid times, I have not been a big fan of rigorous annual planning as, over a period of time, I have seen that assumptions and market conditions change drastically leaving the annual plans as an academic exercise. Now in the post Covid New normal, I feel that time has come to focus on QSQT (Quarter Se Quarter Tak).  While an overall Annual plan can be made for directional purposes, the drilling down of everything to quarters and months and weeks is a wasteful exercise in my opinion. In the sense does it make sense to assume that Omicron is not going to impact the economy so much and plan expenses accordingly for the coming fiscal year? Or we in any position to comment the recurrence of any new waves in the future? Instead in the current situation, whether it is the country or corporation or housing society or our own house hold we may be better off to keep the horizon of three months and take it from one quarter to another. On that note, wishing you all a Happy and contented New Year or should I say Happy New Quarter (HNQ)?

Image courtesy: Kat Millar.com

The Anti-Climax of a Rajinikanth Film!

First up, I haven’t seen Annaatthe – Rajinikanth’s latest film to have hit the big screens all over the world during the festive Deepavali week. So, this is not “My Flash Review” of the film. However ever since the film got released on the 4th, I have seen quite a few reviews – both of the professional reviewers and the social media type. And mostly they have not been charitable about the film. In fact, they have all trashed the film. Herein lies a tale of irony.

Among the Tamil speaking audience not just in Tamil Nadu but all over the world, Rajinikanth has been a huge phenomenon for many years now. No other star has been able to get the kind of adulation he gets, till now. In fact, over the years his appeal has spread to other South Indian states and now even to other parts of India.  So, when a Rajini film is about to be released, there is this huge expectation. And this expectation gets hyped up and amplified in the new age digital era with the release of First looks, Teasers, Singles, Trailers and Making videos which flood our screens before the release through well-orchestrated PR campaigns.

One would argue that the trend is the same for all popular stars today who use social media to the hilt to create a buzz before release. But in the case of a Rajini film, other than the hard core fans (which every star can boast of), the excitement extends beyond his loyal fans. It extends to common public, youth, children, elders and even IT Professionals!  The countdown starts as soon as the release date is announced.

First there is frenzy and craze for booking the tickets for the opening weekend and then there is this craze for the FDFS (First Day First Show) tickets. The whole experience of watching a Rajini film wherever in the world FDFS is completely different. Since this has been written often enough, I am not dwelling into the same here. And those who watch the film FDFS also take it upon themselves the onerous responsibility of giving a ball by ball update of the film from inside the theatres through social media with pictures, clips and what not. The result – the verdict on the film is almost out within three hours of the release. The irony of Rajini films in the recent past has been this “Verdict”.

The fact of the matter is since the film Sivaji – The Boss in 2007, we are yet to see a fully enjoyable “Rajini padam”. Enthiran was also good and enjoyable but I would call it as a Shankar film rather than a Rajini film. If you see the films since then which are Lingaa, Kabali, Kaala, 2.0, Petta, Darbar and now Annaatthe we can see  a pattern. A pattern of the films weighed down by some huge expectations and then flattering to deceive. I am not getting into the debate of Box Office collections or profits these films made because they are subject to interpretations and fair data are seldom available in open domain. We can’t get into conclusions with the available “convenient” data.  So, instead of calling them as flops or failures, let me call them as “Underwhelming” films.

In the above seven films, Ranjith’s films – Kabali and Kaala were disappointing not for the same reasons as the other five. Ranjith tried to capitalise on the Rajini persona with a matching character, imagined Rajini and cast based on his actual or close to actual age and did not make him dance and prance with heroines one third his age. The problem in these films as per me was Ranjith not knowing what to do in the screenplay while untying the knots at the end, resulting in both films promising a lot but leaving us disappointed at the end.

The other five films can be grouped together and they suffered from what I call as the “Fan Boy Director” syndrome.  The directors of these films namely K.S.Ravikumar, Karthik Subbaraj, A.R.Murugadoss and now Siva see themselves as fiercest fans of Rajini first and then as his director. And herein lies the problem. When they wear their fan boy hats, they only see the form of Rajini which they enjoyed way back in the 90’s.  The script takes a backseat. Showing Rajini as this larger than life mass hero of the 90’s takes prominence. In my opinion, this concept is done to death in movies like Annamalai, Baasha, Muthu, Padayappa, Yajaman and in even Arunachalam where a template of “Riches to Rags to Riches” (R3) formula was used to good effect.

We are in 2021. In my opinion, only those in the age bracket of 40-60’s now can relate to the 90’s nostalgically like the directors. Children in the teens today were not born then and they can’t understand the brouhaha over a film like Yajaman!  Similarly the youth in the 20’s and probably 30’s were toddlers then and so cannot relate to the Rajini –Meena romance in Muthu or a Rajini-Khushbu kadavule kadavule chemistry in Annamalai.

This is the BTS (Bangstan Boys) or PUBG generation. To them, trying to bring back the nostalgia of the 80’s and 90’s by rehashing some of the earlier themes in my opinion just doesn’t work. Even for those in the 50’s, having seen many of Rajini’s films in the past, we would like to see him in substantive roles rather than doing the same thing again and again. Here, I would also like to add that it is not necessary that in these times of feminism, social media activism and wokeism, yesteryear super-duper hits of Rajini like Padayappa and Annamalai may meet with the same response today.  Some of these films haven’t aged well, frankly.

I would suggest therefore, that Rajini provided his health permitting, follows the playbook of Amitabh Bachchan who still rules Bollywood but, qualitatively and not quantitatively.  Following the footsteps of Amitabh is nothing new for Rajini. In the 70’s and 80’s many of Rajini’s super hits in Tamil were remakes of the “Angry Young Man” films of Amitabh. Just that when Amitabh’s glory as a hero waned off in the 90’s, Rajini had to look elsewhere for his scripts and landed up with the “R3” template.

Today, Amitabh is not necessarily cast as the main protagonist but is always cast in a role in which he can make a difference.  Which means that directors finish the script and approach him for casting if he is suited for it and not the other way about as it is the case for Rajini today. Mostly, directors and producers get the nod from Rajini based on a broad story line and then they try to fit in Rajini, the mass hero into a templated script. This also means casting the most popular lady as the heroine invariably, crowding the film with popular co-actors whether the script demands or not,  filling in with frivolous comedy tracks thereby shooting the budget to astronomical proportions. This in turn raises the expectations of the entire supply chain and as we have seen, the film wilts under the weight of its own expectations.

Even in the last few films, one thing which is still going, is Rajinikanth himself.  No one is still questioning the power of his screen presence or his energy or even his capability. What is under scanner for sure is his judgement of scripts and roles. So, at the December of his career, Rajinikanth can decide to write the climax of his career differently by being more discreet and choosy. After all, we don’t want this climax to become an Anti-Climax!

30 Years of “1991”!

As I was wondering what to write on this week, I realised that in a few days, half of this year 2021 will be over.  Back in January, everyone thought or rather hoped that we were all done with the “New normal” and soon one will get back to the “Old Normal” in more ways than one. Till March, we were coasting on towards that. Then came the dreaded 2nd wave leaving us literally gasping for breath. And in no time we are back to hoping to see the end of this year.  Just the feeling we had the same time, last year.

And probably 30 years ago in the year 1991.  If 2021 has been a tough year for those who are running the country, I reckon 1991 would also have been so and for a variety of reasons.  When the history of post independent India is written, the year 1991 would feature prominently. Today, the year is associated with the unleashing of economic reforms and liberalisation in India and being crowned as the ‘Year that changed India”. But it has got so many other associations to it, which is what I thought I will write about, when we are in the midst of “30 Years of 1991”!

As 1991 dawned, I was in my 2nd year of MBA course in Bombay. Just as the year commenced, we were witness to the 1st televised war in the Gulf when US attacked Iraq to liberate Kuwait in “Operation Desert Storm”. In India, cable TV was still in its infancy. But we could watch some visuals of the war in “The World This Week” programme which made New Delhi Television (NDTV now) and Dr. Prannoy Roy household names in English speaking households in India.  I must add here that those days as young students we had tremendous appetite for news and current affairs which is seemingly missing in the current generation. Oh yes, that law of diminishing marginal utility! When News is a plenty all around, it finds lesser and lesser interest.

And it was during this war in 1991, that India probably removed its veil of Non Alignment, when the then government under Prime Minister Chandra Shekhar allowed re-fuelling of US Aircrafts in India. The decision had to be soon reversed under immense political pressure eventually in particular from the Rajiv Gandhi led Congress which was supporting the Chandra Shekhar government from outside. Though the war happened in the Gulf, it had its own implications for India as a country. Oil prices sky rocketed pushing the imports bill to hit the roof and plunging the economy into a deeper crisis. And we had a humanitarian crisis to deal with as the Gulf was home to millions of Indians.

In May, I was back in Madras after completion of the course and preparing to return to Bombay after a short break. On the 21st May, 1991, Rajiv Gandhi was assassinated in Sriperumpudur near Madras by a suicide bomber at an election rally. The death of Rajiv Gandhi that too in that most tragic manner shook the nation. Rajiv Gandhi was all set to return as the Prime Minister with the Congress getting a comfortable lead. But his untimely death put the country again in chaos and when the results came, Congress became the single largest party but short of majority on its own.

It is difficult to speculate as to what would have happened to our country had Rajiv not been killed and had he returned as the Prime Minister. It was widely believed that having learnt his lessons from his first stint, Rajiv was a wiser man and with his youth, energy and impatience would have changed the course of the country for the better.

With the loss of Rajiv, P.V.Narasimha Rao became the Prime Minister heading a Congress led coalition government. He made Dr. Manmohan Singh his finance minister and between them unleashed a slew of economic reforms that liberalised India. Those were eventful days and day after day, headline grabbing announcements followed.  Dramatic devaluation of the rupee, pledging of the country’s Gold reserves, announcement of the New Trade policy, announcement of the New Industrial policy that would end the licence-permit Raj,  the historic Budget presentation and so on. When all these were happening, one didn’t realise that these will forever change the destiny of India.

Unlike now, when economists and policy experts are in unison singing the praise of the 1991 reforms, back then the reforms were always projected as “Acts in Duress”.  Even among the ruling Congress, there was no consensus on the reforms forcing Dr. Singh to make that famous quote that he walked around with his resignation letter in his pocket.

Elsewhere in the same year, the dissolution of the Great Soviet Union was in rapid progress and by December the entire Soviet Union was formally dissolved that eventually ended the Cold War.  Google also tells me that the World Wide Web was launched to the public in 1991 and Microsoft.com went online, though I have no recollection of these!

Coming back to India, not to be limited to financial problems, in the same year 1991, on June 28th, Kashmiri militants kidnapped the then Executive Director of IOC, Mr. Doraiswamy. He was finally released after a couple of months in exchange of a few militants. I remember this vividly as day after day front page in the newspapers were occupied with this news.

For India, not just 1991 but the next two years were indeed full of challenges that wrecked the country pushing it from one crisis to another.  So, looking back, as a country we came out of all that relatively unscathed as we kept growing to what we are today, though the pace and extent of growth may not be our liking.

30 years hence, in 2021, as a country we have been inflicted hard by a global pandemic that has been hogging everyone’s attention. Our economy has been bruised badly. Lives have been lost and still counting.  Clearly not just India, but globally we have been set back by couple of years if not more.

As we come out of the 2nd wave, a recovery is imminent but not without the potential danger of further waves. We can only hope that this time also we will follow the 1991 cycle.  If you remember, the economy fared poorly in the 1st year of the reform (1991-92) but from 1993-94 after two years, the economy was on a roll.

Going back to 1991, personally for me that was the year when I started my professional career and so along with the country, the year has a personal significance and it will be always etched in my memory.  Where were you in 1991 and what are your memories of that year? Do share in the comments section.

Budget -21, Reform push and Time to Market!

There have been budgets in the past which have sort of quickly moved away from the headlines. And there have been budgets which remained in the headlines but for all wrong reasons. This year’s budget, incidentally the 8th one from the Modi Sarkar presented by Nirmala Sitharaman has managed to hog the limelight for all the “right” reasons. The pun here is well intended.

Talking of the reaction to this government’s previous budgets, it’s always been muted and for obvious reasons. Ever since Narendra Modi became the Prime Minister way back in 2014 that too with a clear majority, the expectation has been that he will bite the bullet on many of the much needed, long pending reforms. Honestly, the previous budgets of the Modi Sarkar were mostly incremental budgets with some increased allocations here, some improved programs there and so on. “What’s the Big Idea”? ‘Where are the Big bang reforms?” were some questions hurled by the commentariat post every budget. It has been my observation that under Modi, the budgets have just become an annual statement of allocations and outlays while Big Ideas whether it was the Swachh Bharat Abhiyan or the Ujjwala Yojana et al were launched outside of the budget. But in this year’s budget, there has been a welcome change to announcing some “Big Ideas”.

The positive vibes around this year’s budget can be attributed to the announcement of few big ideas which have been reformist in nature, while keeping the budget free of any “bad news”. One is the announcement of the setting up of an Asset Reconstruction Company (ARC) which is a euphemism for a “Bad Bank”. Second, is the statement of intent on “privatisation” of two Public Sector Undertaking Banks and one General Insurance company. So far, governments have been taking umbrage under the term – Disinvestment without putting out the word “Privatisation” so openly.

Not just the budget, but the announcement has been followed up by speeches in the parliament and other forums by those who matter in the government, on the seriousness of the intent. In fact, as per news reports, Niti Aayog has recommended to cut the number of state owned Public Sector Undertakings (PSUs) to just 24 from over 300 that exist today. If this programme takes off, it will make Modi a reformist of “Thatcherian” proportions. If you recall, Margaret Thatcher way back in 1979, on assuming power systematically embarked on a reform program to revive the British economy. She deregulated markets, cut tax rates, removed exchange controls and consigned militant trade unions to oblivion. But, it is the privatisation of State owned corporations like British Steel, British Petroleum, British Telecom and British Airways that stays as her enduring legacy till today. So, what Thatcher achieved in the early 80’s in the United Kingdom is what Modi is embarking to do in India after forty years. That brings to the next point of this post which is the important piece of “Time to Market”.

In business, Time to Market is nothing but the time taken by a company to launch a product or a service from the date of firming up on an idea.  For companies, this is an important issue in new product introductions.  In businesses that are highly competitive or for that matter any business, you cannot afford to have a long Time to Market.  That would run the risk of your competitor getting ahead or consumer preferences changing that makes the idea less relevant or even redundant.  I believe that even in the matter of reforms for a government, a short Time to Market is critical. And as a country, our track record on that front is unenviable so far.

In the context of reform push, I believe there are three stages namely – Idea, Intent and Implementation. First, the idea is just floated in a budget speech or on important occasion/forum. Then the Intent is demonstrated when the idea is given a proper shape, laws are formulated if there is a need and resources are allocated.  Implementation is when finally the reform becomes a reality and is rolled out. So, in India if you see the history of Time to Market on important reforms, it doesn’t pose a pretty picture.

For example, take the case of a reform like Aadhaar. The idea and need for a unique citizens identity card was floated way back in 2001 by an Empanelled Group Of Ministers (EGOM) chaired by the then Home Minister L.K. Advani during the Vajpayee led NDA regime. It was only in 2009, when the intent was demonstrated by the UPA government led by Manmohan Singh with the announcement in the budget and then following it up with the set up if UIDAI (Unique Identification Authority of India) under the leadership of Nandan Nilekani. And finally, the first Aadhaar card was issued to a citizen in September 2010. So, from the idea to the launch it took a good 9 years. In the case of GST, from the time of the floating of the idea way back in 2000 to showing the intent in the budget in year 2005 to finally launching GST in India in 2017, it took seventeen years.

In the case of the policy of allowing 100% Foreign Direct Investment in retail however, from the stage of the Idea to Intent to Implementation, the landscape of retail has changed. India doesn’t still allow 100% FDI in multi brand retail. This was seen as an important reform in attracting FDI and employment generation a decade ago. But now with the advent of E-Commerce where 100% FDI is allowed in the marketplace model, 100% FDI in Multi-brand retail is no longer seen as a constraint. In other developing countries like Thailand foreign direct investment in retail gave a huge boost to the economy. But India missed that boom because of the dogma around FDI in multi brand retail which stretched the Time to Market on that reform.

Ergo my point is, if the reforms which have been announced in this budget have to make an impact, short Time to Market is critical. Having floated the Idea of a Bad Bank, it is important to follow up quickly with the formation of the ARC and eventually roll it out within this year itself so that the PSU banks can be freed of the stressed loans and they can get back to lending with more ease. Similarly, in the case of privatisation of PSU Banks, the idea has been floating for a while now. But this is the first time, the government has expressed its formal intent via the budget speech. The road to privatisation is not going to be easy at all with trade unions already gearing to pick up the gauntlet with the government. I though believe just as the mass VRS issue in PSUs like MTNL and BSNL etc. went through in spite of stiff resistance from trade unions, this time, the government may be able to pull it off with a few hiccups. Or so I hope.  Also, while the stock markets are on a high this year, the government can manage to get better valuations.

In the run up to the 2014 Lok Sabha elections, Modi repeatedly talked of “Less Government, More Governance” and “Government has no business to be in business” – thoughts which signalled a clear Rightward tilt on the economic philosophy front. However, till this budget speech, we didn’t see much of action towards withdrawing the government from running many businesses. This budget from that sense is critical in signalling the government’s intent towards moving away from running inconsequential businesses, which is a good sign. And, if the intent is translated into action in a reasonably short Time to Market, then it will be Narendra Modi’s lasting legacy in changing the economic course of this country.

Post Script: If Aandolanjivis are those who make a living out of protests, what about taxing them? And what would be the Time to Market for this idea? 😁

Tanishq Ekatvam – Anatomy of the Campaign!

When you read this, I am sure you will be familiar with the latest product of the “Outrage factory” in India. Tanishq, Tata’s crowning jewel other than TCS provided the raw material this time. The outrage was around an ad which was put out to kick off its new Ekatvam campaign. The company soon pulled down the ad bowing down to the social media outrage but not before it went viral and divided popular opinion.

As a standalone ad, (see here) I personally liked it. The story is consistent with the purported theme of the campaign, where “the beauty of oneness” was being promoted. Oneness in this case was conveyed through the coming together of Hindu and Muslim faiths after a marriage between a Hindu woman and a Muslim man in this case.

There was predictable outrage following the ad where many questions like “Will they show a marriage of a Muslim girl and a Hindu boy?” and “Why are they showing as if the Muslim parents were doing a favour by following the girl’s traditions” and so on. I am certain that if the ad was shown as above, there would have been exactly opposite questions. Newton’s third law – “For every action is there is an equal and opposite reaction” and Whataboutery are the cornerstones of today’s outrage factory.

My take on the ad itself is that it was a well thought out plan. The campaign was launched during IPL just ahead of the festivals which is peak season for brands like Tanishq. And during this period and particularly during IPL, it is important to cut the clutter. One way of doing it is to make a nice commercial but with a contrarian story line. It helps the ad to stand out and also ensures it goes viral. That’s what happened with the Tanishq ad. Today for most marketers, the starting point of a campaign is to make it “Go viral” and if it does, it is the ultimate take away for the bucks spent.  So, kicking off a controversy through the ad is one established method of making it go viral. Many companies in the past have done that and Tanishq is no exception. I had written about this in one of my earlier posts “Stir up to sell” and if you haven’t read that, please do read here.

It is unfortunate that the company decided to pull down the ad. At the same time, it is easy to criticize the Tatas for succumbing to social media pressure in taking that decision. But I believe that it was a pragmatic choice. Already the business is reeling under the after effects of Covid with showrooms just being opened up. And the peak season is just ahead of the company. At this time, it makes no sense to do grandstanding risking the safety of its retail staff and properties.

At the same time, due to the heat the ad cranked up, the ad went viral and more people have seen than probably originally envisaged. The ad and the brand have become talking points for weeks over and even this blog would not have been written if the ad showed a plain vanilla oneness story!

This post though is not about the journey of that particular ad. I wanted to use the window the ad provided to look at the strategy behind the campaign itself.

As I mentioned earlier, the campaign titled Ekatvam has been kicked off by Tanishq just ahead of its biggest season. In North India, the festive season around Navaratri and in particular Diwali/Danteras are peak seasons for buying gold jewellery. And any serious brand would not like to miss out on this high stakes season.

At the outset, Ekatvam seems to be a brand building exercise to build on its core values of “Trust” etc. So far so good. After having seen the ad that sparked the controversy, I went to Tanishq’s website which also showcases the Ekatvam campaign. And here’s the thing! It says “Tanishq presents Ekatvam – the beauty of Oneness!” It says the “thought” being, “Beautiful things happen when people come together. But today, we’re asked to stay apart, keep a distance and be safe. While we continue to do this, through compassion, empathy, hope and care, we’ve come together when it was needed the most.” And goes on further. “The beauty of oneness. One as humanity. One as a nation. Ekatvam. A confluence of India’s finest craft forms, intricately knitted into one stunning collection, bought alive by our skilled Karigars, where similarities and differences all become one!”

Beautiful thought and an excellent copy. However, if this is the Ekatvam (confluence of India’s craft etc.) Tanishq wanted to promote, where does this aspect come out in that ad? It is common marketing wisdom that when a company launches a campaign, it is showcased consistently across media platforms may it be Print, TV, Web site, Digital etc. I don’t see that being followed here. While the website talks of the campaign being a noble effort to bring together different craft forms and craftsmen, the TV commercial tries to convey oneness by bringing faiths together.  If you look at the print ads, the one in North India (see below left) is consistent with the theme in the web site. However, the print ad in South (see below right) doesn’t explain anything about Ekatvam beyond the tag line of “the beauty of Oneness” and looks more like a “Sales promotion” ad.

 

 

 

 

 

 

So, this brings back to my original hypothesis that the controversial ad was part of a game plan to “Stir up to sell”. The brief it seems was to deliberately bring in the Hindu – Muslim angle and showcase the oneness. And probably the company sort of expected the backlash. In any case, backlash or not, the ultimate objective was to make it go viral and maximise the bang for the buck. The outrage factory in my opinion completely missed this point and effectively contributed in making the ad and the brand top of the mind for few weeks.

What the controversial ad would do to sales would be an interesting thing to watch in the coming weeks. While some commentators feel that it may affect the retail sales a bit, I reckon it may not do much damage.

In final summary, just as you shrug off a lean business period after lock down and get into a peak season phase, why would you launch a CSR kind of corporate campaign of Ekatvam?

Post script: Another innocent question to the makers of the ad. When you wanted to showcase Hindu-Muslim confluence, why would you choose a Kerala family as a backdrop when the ad is in Hindi and aimed at festival season (Diwali) in North of India?

COVID-19 aftermath – Time to revive two flagship programmes of GOI

If there is one quote which has been oft repeated by commentators of all hue in the past few weeks as the world grapples with the COVID-19 crisis, it is this. Winston Churchill’s “Never let a good crisis go to waste”! As India locked itself down in its fight against Corona Virus, the lessons for future are many. And indeed it must learn those and never let this crisis go to waste, once things settle down. In India, we have a tendency to move on quickly from natural disasters and other calamities without learning the lessons and putting them to practice for future.

In the context of COVID-19, once we are out of the crisis completely, two programmes of the central government which were launched with much fanfare in the 1st term of Modi Sarkar but which lost steam or didn’t take off the way they were envisaged come to mind. It’s time to revive them and re-launch them with added rigour. And in the aftermath of the Corona virus pandemic, I do believe that the chances of them now doing well have got better.

On the 15th of August, 2014, when Prime Minister Narendra Modi announced the launch of Swachh Bharat Abhiyan, it caught the imagination of the public by and large. “A clean India would be the best tribute India could pay to Mahatma Gandhi on his 150 birth anniversary in 2019,” declared the Prime Minister. This was the first time, cleanliness entered public discourse since Independence. Immediately after the launch, there was an air of excitement and flurry of activities. I remember voluntary groups and public carrying out weekend shramdaan to clean up the neighbourhood. Celebrities did their bit by participating in symbolic photo ops with brooms to spread the message of cleanliness.

What started off very well, soon started losing steam with the typical Indian attitude of laxity creeping in, after the initial enthusiasm.  From the government perspective, we also saw that Swachh Bharat Abhiyan from the original goal of a “Clean India” by 2019, moved to making India “Open defecation free” by 2019!  So, accordingly the focus turned towards building toilets across the country and giving the poor access to toilets even in the remotest of villages.  In his address to the parliament in Jan 2019, the President announced that over 9 crore toilets were constructed across the country under Swachh Bharat Abhiyan program and that the coverage of rural sanitation went up from less than 40% in 2014 to 98% in 2019.  While these are commendable data points, we were not close to becoming a clean and hygienic country by Oct 2019, as envisaged by the Prime Minister when he kicked off the programme.

While not taking any credit away from the government for pursuing this initiative, I have always maintained that Swachh Bharat Abhiyan is not about cleaning and more cleaning but, reducing the need for cleaning in the first place. That essentially means developing instinctive disciplinary traits and attitude toward cleanliness like for example, the Japanese.  This calls for a huge attitudinal change among us as we are by and large happy to keep our own four walls clean while not being concerned about littering in public.

It is undisputable that COVID-19, in the last few weeks has increased awareness of self-hygiene as well as community hygiene in a big way in India. Use of sanitisers hitherto seen as a “NRI tantrum” while in India, has now got into the collective conscience of India. I do believe that thanks to social media like WhatsApp, the ills of a pandemic like Corona Virus have reached the nook and corner of India and hence messages concerning the need to maintain cleanliness may be received with more seriousness than before.  By the end of 2019, looking at the way the programme sort of petered out, I concluded that a “Clean India” may be a few decades away when the current student generation with more awareness from childhood stages take to public cleanliness more seriously.  However, now I feel that COVID-19 has given us a great opportunity to reach our goal of a “Clean India” probably a few years earlier and it is important that we as a country seize this opportunity.

Weeks or months later when we get over the COVID-19 crisis, the governments – Centre, States, local municipalities and panchayats should step up the gas on Swachh Bharat Abhiyan once again.  The government must use all the communication machinery at its disposal to build up on the Corona Virus messaging of “washing hands” to start talking about keeping one’s surrounding absolutely clean and safe to prevent further epidemics like this. We should move from friendly nudges to slapping heavy fines for offences like littering in the open, urinating on the side of the roads, Open defecation when toilets are available in the vicinity and spitting on the roads and walls. We must remember that making India a “Clean India” is not just the look out or job of the government of the day but is in the hands of the public. So, as a society, we must not let this good crisis go waste on the hygiene front and make our march towards a “Clean India”!

“Make In India” is another flag ship programme launched by Modi Sarkar way back in September 2014 with a view to give boost to the manufacturing sector in India with an eye on creating lakhs of jobs. Initially conceived to cover 16 industries, the scope was expanded later to include 25 identified industries. Five years hence, when one looks at the outcome of the programme, it’s a mixed bag. “Make In India” has seemingly done well in mobile phone and allied manufacturing with around 268 units producing phones and related accessories in India as of November 2019. This was just 4 in 2014. We are now the 2nd largest manufacturer of mobile phones in the world.  But beyond mobile phone manufacturing, other electronic manufacturing has not taken off in India as yet.  We are nowhere close to the objective set of making manufacturing contribute to 25% of our GDP. With the economic slowdown in the last few quarters and the disruption due to COVID-19, the outlook for manufacturing looks even bleaker.

This is where, COVID-19 could provide a window of opportunity to India in next five to ten years. COVID-19 which erupted from China with the industrial province of Wuhan as the epicentre, has ended up disrupting the global economy in more ways than one. When the virus spread was around China in the month of February, the talk was about how the global supply chains particularly in the Automotive, Pharma and electronics sectors have been disrupted. With the contagion now spreading alarmingly all over the world, COVID-19 could emerge as the single largest cause and effect on the global economy in many years. It is estimated that the global GDP could shrink by 2% this year.

The COVID-19 crisis has hastened the shift of global supply chains out of China actively a move, which gathered momentum in the height of US-China trade war last year and increasing labour costs in China over the last few years.  As we saw in reports, the Japanese government has announced support to companies shifting production from China back to Japan. Korean companies are reportedly exploring options with India to expand their capacities. The US and EU will eventually follow suit.

For India, this is a great opportunity to tap into this shift out of China.

It is good to see the Indian government sensing the opportunity and looking to further the cause of Make in India. Just recently, we saw a package of incentives being announced for the Electronics manufacturing industry with a focus not just on finished goods production but also developing downstream production units. Similarly package was cleared by the cabinet on the 21st March for incentivising production of chemicals and raw materials that go into bulk drugs production.  Initially these moves may help in softening our own dependence on China for imports of electronics and pharma goods but over a period of time will give a boost for exports once the ecosystem in put in place. So far so good. But these are not enough. Making India a part of global supply chains requires a well-co-ordinated (between Centre and states) 360 degree action plan to launch Make in India 2.0 in the light of COVID-19 that covers diplomatic, economic, commercial, human resources and even marketing front. This also requires changes in some of our laws (for example land acquisition) that can make ease of doing business a reality on the ground.

COVID-19 crisis is panning out in front of us as we speak. While we fight the health and immediate economic after effects of the same, it’s time to work on re-launching “Swachh Bharat Abhiyan 2.0” and “Make in India 2.0” in a couple of months and not let this crisis go waste.

Dear India, make 2021 the next 1991!