India must embrace unfettered free enterprise

In the final part of their eight-part series on the contemporary history of the Indian economy, the authors make recommendations for the Indian economy. The earlier partscompared the policies of various Indian governments between the 1940s and the 1990s with those under the British rule. 
India has been a victim of various economic systems imported from the West. It has pursued various aspects of communism, socialism, Keynesian economics and the monetarist theories despite their failure elsewhere. India must learn from its — and other countries’ — mistakes and make appropriate changes to strengthen its economy.
Among the first steps, India must dismantle the Nehruvian establishments and get rid of the planning commission along with the five-year plans. It must also aggressively pursue the deregulation of industries and completely eliminate the license raj that creates unfair monopolies while excluding smaller businesses from participating in the economy. India’s experience shows that sectors with fewer regulations thrive while those with many regulations stagnate and become mired in corruption. Jawaharlal Nehru’s so-called land reforms that retarded the growth of the agricultural and housing sectors too must be reversed and the government must respect everyone’s property rights.
India must also avoid the mistakes of the West and must not set up welfare systems like government-controlled social security schemes, education subsidies and free healthcare. America’s government-run social security scheme is on the road to failure and has rightly been likened to a Ponzi scheme. A scheme run by the private sector without the government forcing individuals to participate in it will be a fairer and more efficient method as all losses will be limited to voluntary participants in the plan.
The policies related to education in the western countries too have led to wasteful spending as bloated universities use massive grants from the government to generate research papers with trivial ideas and dole out degrees in frivolous subjects like gender studies, women’s studies, journalism and economics. To prevent this scenario and in the interest of fairness, the Indian government must abrogate all laws that make college degrees a requirement for any job and instead allow the market to make this determination.
The socialised healthcare systems too have failed in the West. In a reversal of roles after India liberalised its economy, patients from Canada and UK seeking to escape their systems that keep them on waiting lists for several years now flock to Indian private sector hospitals for surgeries.
The Western fiscal policies too are flawed and emphasise consumption and treat debts and deficits as necessary components of a strong economy. These ideas have predictably led to the Western economies becoming unstable and their currencies rapidly losing purchasing power. The Indian government must change its ways and align itself with the Indian ethos which stresses prudent savings.
Indians have historically converted their savings to gold as they distrust the currency issued by the government. The government has retaliated by regulating the possession and exchange of gold.
The government must respect the rights of the people by getting off the fiat currency regime and allowing the unregulated use of any commodity including gold as the currency. In addition, it must shutter the Reserve Bank and stop interfering in the interest rate market. Such steps together with curbs on the fractional reserve banking system will lead to a stable economy with a stable currency.
India’s politicians and bureaucrats have pursued the cynical goal of maximising their revenues even at the cost of imposing tyrannical measures on the people. Their goal implies that the people exist for the government and this has led to many unfair taxes and tariffs which need to be abolished.
Many of India’s policies result from imitating the West and following the suggestions of international organisations. Those who run these international organisations have created rules that favour a small set of people while causing instability in the economies around the world. They have used every crisis as an opportunity to set up yet another international organisation that takes the wealth of the developing countries in the guise of helping them. The current crisis in Europe too has led to calls for the creation of a global tax on trading along with a new organisation to regulate banks around the world. It is important that India eschews the suggestions of these organisations.
Following these steps will create a robust and vibrant economy while simultaneously addressing the problems of corruption, inflation and poverty. At the same time, India can provide leadership for the world to move towards a completely unfettered free enterprise system. To avoid the existing tyrannical systems, people too must remain vigilant and refresh the tree of liberty from time to time.

India, an attractive global economic destination: President Pratibha Patil

GENEVA: Emphasising that the global economic downturn had a "limited impact" on India, President Pratibha Patil today said the Indian economy has consistently recorded high rates of growth and has become an attractive destination for investments.

"India's growth offers many opportunities for mutually beneficial cooperation. The Indian economy recorded consistently high rates of growth since 2003 and even the global economic downturn had a limited impact," she said.

Addressing a reception here hosted by Indian Ambassador to Switzerland Chitra Narayana, daughter of former President K R Narayanan, Patil said India has become an attractive destination globally for investments, FDI and business.

"Today India is among the most attractive destinations globally, for investments and business and Foreign Direct Investment had increased over the last few years," she said.

"Since the Indian economy opened up in 1991, Indian companies faced international competition rather well, and have expanded their global footprint," said Patil, who is on a state visit to Switzerland.

She, however, said the overriding priority in India today is to ensure that the benefits of the economic growth should reach all sections of society, in particular the poorer sections, so that they too can have a better life.

"We are also aware of the challenges of ensuring that the aspirations of our youth, who constitute more than 50 per cent of our population today, are met; that they have the opportunities to get education and training needed to allow India to garner the demographic dividend," she said.

Bureaucracy the bane of education

New Delhi: Principal of Delhi University's Shri Ram College of Commerce (SRCC) P.C. Jain created a furore in academic circles when the college announced 100 per cent marks cut-off for admissions in June.

Jain, who has been associated with SRCC for 40 years, drew a lot of flak from both students and parents, who termed the cut-off as highly "unreasonable and unbelievable". But sticking to his guns and defending his action, Jain countered, "There is nothing wrong about it."

A far-sighted man, who speaks from experience, Jain is unhappy about the present system of education. "There's a need for radical change in both lower and higher education, because without good education we cannot build a strong nation."

New Indian school in Dubai opens due to high demand for CBSE curriculum

DUBAI: Indian Minister for Corporate Affairs M Veerappa Moily inaugurated the JSS Private School in Dubai. The school, which will run under the CBSE curriculum, has been set up by the JSS Mahavidyapeetha of India, the driving force behind more than 320 institutions worldwide.

Speaking on the occasion, Abdullah Al Karam, chairman and director general of KHDA, said that the number of Indian students in Dubai schools has touched 60,000, representing a third of the total number of students in the emirate. This can be attributed to many students from neighbouring emirates coming to study in Dubai.

“Prior to the economic crisis the annual growth in the number of students was 10 per cent. For the last three years, it has been steady and is five per cent. Due to the high quality of education offered in Dubai, we have many students who come from the neighbouring emirates to study here,” he added.

Guruswami Kalloor, CEO of JSS, told media that the group conducted a survey and found a high demand for CBSE curriculum from the parents. He said the new campus will “employ a holistic approach to education” and that they plan to open another school in Abu Dhabi.

He further commented, “The new campus at Safa will also provide academic guidance as well as the skills to make each student socially responsible in line with the JSS International School’s mandate.”

“JSS will employ a holistic approach to education to empower individuals to become caring, competent and responsible citizens who value education as a lifelong process. This promotes the student’s intellectual, physical, moral and social development, realising each student’s potential.”

Chitra Sharma, principal of JSS Private School said, “With profound change in societies landscape, both UAE and India share the global vision to prepare our children to be effective critical thinkers, communicators, collaborators and creators who are prepared to meet the need of the global economy - children who are engaged in good citizenship and who participate in a vibrant and civil society - a mantra with which JSS Group is so well associated with in India.”

“Opening of the second campus of the JSS Group is a new step towards this global vision.”

Ali Mehad Al Suwaidi from the Ministry of Education, Ambassador of India to the UAE MK Lokesh, Chairman of ICSE Board CM Jose Aikara and President of JSS Mahavidyapeetha Jagadguru Sri Shivarthri Deshikendra Mahaswamiji were also present at the inauguration.

Indian students lead rush for foreign MBA degree course : Survey

NEW DELHI: India continues to contribute the highest number of foreign applicants to full-time MBA programmes, even though the dip in the overall number of applications (including from India) to full-time foreign B-Schools continues for the third consecutive year.
While 61% of MBA programmes name India as their top source of foreign talent, applicants from Asia-Pacific (APAC) countries (mainly India and China) make up the highest number of foreign applications for full-time programmes around the world.
As per the 2011 Application Trends Survey, conducted by the Graduate Management Admission Council (GMAC), a non-profit education organisation of leading graduate business schools worldwide, 39% of programmes also reported that India is their fastest growing source of foreign applicants. Meanwhile, the number of applicants from China looking to study abroad has also increased, and the percentage of programmes reporting that China is their largest growing source of foreign applicants increased to 39% of two-year full-time programmes in 2011. This makes India and China single largest market for these B-Schools.
"India and China are the leading Asia Pacific countries contributing to the influx of applications for full-time MBA programmes. The overwhelming response clearly indicates the value placed on quality graduate management education by candidates from this region," said regional director, South Asia, GMAC, Ashish Bhardwaj.
A total of 649 programmes from 331 B-schools and faculties worldwide, representing 45 countries, 42 states in the US and the District of Columbia, participated in the annual study. The survey has been an annual feature since 2000.
Some of the key findings of the survey has been that more than two-thirds (67%) of participating two-year full-time MBA programs reported a decline in application volume in 2011 compared with 2010, continuing a trend that began in 2009, while more than half (57%) of one-year full-time MBA programs received fewer applications than the previous year. The decline was most prevalent among non-US programmes, where 62% reported a decline compared with 49% of US B-School programmes. But specialized master's programmes reported an increase in application volume over the last year. Master of Finance programmes led the trend with 83% reporting an increase, followed by Master in Management programmes at 69% and Master of Accounting programmes at 51%.
Though the majority of MBA programmes saw a decline in applications, the survey showed that the quality of applicants and their academic credentials were higher in 2011 than for applicants in 2010.
"The caution in this year's survey for full-time MBA programmes is unsurprising in the current economy as students weigh the financial and time commitments required to pursue a graduate business degree. Still, the steadiness reflected in executive and part-time MBA programmes, specialized master's programmes and the growth among international applications shows the value people continue to place on graduate management degrees as investments in their career and future," said Dave Wilson, president and CEO of GMAC.

Education Diary: Wadia professor felicitated with Platinum Jubilee Award

Wadia professor felicitated with Platinum Jubilee Award

Nowrosjee Wadia College felicitated Manoj Bhise, the head of the English department, with the Platinum Jubilee Award foracademic excellence and participation in organising co-curricular and extra-curricular activities of the college. Bhise is a research guide for the University of Pune, Bharat Vidyapeeth and International Multicultural University.

INIFD students showcase designs at LFW

The students of Pune-based Inter National Institute of Fashion Design (INIFD) Deccan, showcased their designs at ‘The Source’ during the Lakme Fashion Week Winter/Festive 2011 in Mumbai recently, along with the likes of Manish Malhotra, Sabyasachi, Neeta Lulla, Wendell Rodricks, J J Vallaya, Rina Dhaka, Anita Dongre and Pria Kataaria Puri.

Entrepreneurship awareness camp on Oct 4

The MIT College of Engineering is organising an entrepreneurship awareness camp on October 4 at the college. The event will be jointly conducted by IIT Kharagpur. The entrepreneurs who will speak at the event include Founder of bharathealth.com and punetech.com Navin Kabra, Founder and CEO of ACTON Biotechnologies Pvt Ltd Sandeep Saxena, Senior Director of Siemens Prakash Tolani, and Curtin University of Technology, Bentley, Western Australia, Dr Vidyasagar Potdar.

Passing-out-parade held for 38 marine engineers

The passing out parade of the secondGraduate Marine Engineers (GME),a batch of 38 cadets, was conducted on the VMI premises, Laxmi Nagar recently. The chief guest, BN Prasad, Managing Director of M/s. Bernhard Schulte Ship management (India) Pvt Ltd, said, “About 90 per cent of the Indian trade is being carried out by sea and it is slowly becoming one of the most popular professions in the country. At present, there is a dearth of good officers and the association of BSM & VMI will produce a good result.”

Conference to share research work

With an aim to provide a common platform for academicians as well as students to discuss weaknesses and challenges faced by business organisations, Association of MBA/MMM Institute (AMMI) along with the Alard Institute of Management Sciences is organising a national conference on Thursday at VIT Hotel. The meet, Yugantar, will see the presentation of 110 research papers coming in from across the country.

Govt mulls bar on recognising new engineering colleges

New Delhi, October 2
Close on the heels of the Comptroller and Auditor General of India revealing the crude state of vacancy in engineering courses even in the prestigious National Institutes of Technology, the Human Resource Development Ministry has set out to correct similar imbalances existing in engineering education elsewhere in the country.
In a bid to streamline the system and enforce better academic monitoring of engineering courses, HRD Minister Kapil Sibal has asked the technical education regulator - All India Council for Technical Education (AICTE) - to write to states about the issue of vacancies in engineering colleges and consider possibilities of blocking recognition to any new colleges in these states.
“The Ministry has asked the AICTE to write to those State Governments where there is a surplus of vacant seats as to whether recognition should be given to more engineering colleges from these states,” Sibal told Members of Parliament during the Consultative Committee meeting on Human Resource Development held here on Wednesday.
Vacancies in engineering colleges are rising by the day, revealing poor academic standards in institutes apart from a visible glut.
In West Bengal alone, 6,000 engineering seats are estimated to be lying vacant; another 2,600 are vacant in private engineering colleges of Orissa.
Similar is the case with seats offered through counselling by the Consortium of Medical, Engineering and Dental Colleges of Karnataka (ComedK) where 9,442 seats were estimated to be filled in the recent counselling.
Electronics and communication engineering had the most number of unfilled seats (1,964), followed by computer science (1,793) and mechanical engineering (1,789). Other branches like civil engineering, information science and engineering had over 1,000 seats lying vacant. Even architecture had 114 vacant seats.
The problem of plenty persists even in colleges affiliated to the Punjab Technical University at Jalandhar. Up to July 15 last year, for instance, around 10,000 engineering seats remained to be filled. Only 20 top affiliates were said to have filled their seats and others were struggling to find students.
Much of this mess can be attributed to mushrooming of new colleges and poor AICTE monitoring.
Even in the NIT performance audit, CAG recently found that 1.38 to 42.31 per cent of UG seats in civil, electronics and communication, mechanical, chemical and IT engineering branches remained vacant during the period of study while 3.13 to 87 per cent of seats in PG courses in the said branches remained vacant.