Showing posts with label China. Show all posts
Showing posts with label China. Show all posts

Thursday, March 28, 2013

Thumbs down to The free ride!

The Indian Government’s Initiatives towards free trade have not been met as Enthusiastically as Expected by The Industry. What is The way forward?

During an informal dinner conversation with a top government official and some people from the industry, we were discussing the big idea that could come up ahead in the 12th Five Year Plan, which could take India ahead in the next decade. Infrastructure was almost unanimously the choice of most people in the group. Suddenly, I decided to play the Devil’s Advocate and brought up the topic of exports. I asked him why exports cannot be that key thrust area, since it has lifted so many economies like Japan, South Korea and China and taken them strongly on the path of development. His answer baffled me. He said that it wouldn’t work, since over 50% of Indian companies are not really interested in exporting, and are rather perfectly happy serving the domestic market.

The domestic market is obviously considered one of the greatest advantages of being an Indian company. India Inc. has been in a typically self congratulatory mode since our companies were relatively less impacted by the economic recession due to staying local. But the cushion of having a strong domestic market is also one of the greatest drawbacks. Companies in nations like South Korea and Japan had such a small domestic market that exports were the most viable option. That encouraged them to move out, and that is why, their companies have been all over the globe. China, on the other hand, had the cushion but choose to ignore it, and we know the other part of that story. When you look at 2009 figures from WTO, India had a 1.3% share of global merchandise exports of $12.18 trillion, while China accounted for a whopping 9.9%. Indeed, there is an urgent need for the government to change that mind set. Kwang Ro Kim, Vice Chairman, Onicra, tells B&E, “The point on having a huge domestic market is a myth. Moreover, it is the best way to create jobs for 70% of India, since everyone is not intellectual enough to work in IT companies.”

Of course, there are a number of initiatives that the government takes from time to time to boost exports, but we are going to discuss a particular one here – the rising number of Free Trade Agreements (FTAs). India has been signing a number of them in the past few years (like ASEAN, South Korea & Japan); and has also consciously followed a ‘Look East’ policy. When asked about the key benefits of such FTAs, Minister of Commerce Anand Sharma tells B&E, “We have been seeing significant shifts in development from Asia and developing countries like India. We need to focus on different FTAs to boost growth.”

When it comes to Asia, in particular, FTAs are becoming a very critical policy tool. Failure of the Doha round of WTO means that FTAs would be a valuable tool to leverage on trade opportunities and also deepen regional networks and linkages. Even Indian firms have relied on Western markets to a disproportionate extent in the past. Looking at figures for the period from April-September 2010, India’s top destination for exports has been UAE with exports of Rs.657.11 billion (growth of 21.48% yoy) followed by US with exports of Rs.539.42 billion (growth of 23.43% yoy) and China with exports of Rs.256.13 billion (growth of 28.73% yoy).


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

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Monday, March 18, 2013

An Exclusive Interaction with Virat Bahri of B&E

HZL COO Akhilesh Joshi in an Exclusive Interaction with Virat Bahri of B&E

B&E: What is your outlook with respect to the market for Zinc globally, as there are some economies that are still not bak on the growth track?
AJ: In India, domestic demand is going to be high. Internationally, it is not going to be good in some countries but in countries like China, it is expected to remain good. If you look at the availability of the concentrate, it is expected to remain in short supply in the coming years, so it has good potential.

B&E: Your margins were affected in the first half of the current fiscal owing to factors like higher stripping costs and higher coal pries. What challenges do you see to your margins going forward?
AJ: There is no challenge as such – it is our DNA to work for better efficiencies and productivity in order to keep our cost under control. On the price front, we are not expecting any downfall in the prices.

B&E: On the front of Zinc prices, do you feel that the London Metal Exchange (LME) is a robust exchange?
AJ: Yes it is a very robust exchange. If you see, the general marginal cost of production for Zinc is around $1000-1200 per tonne and any LME price above that will always give margin to the producer.

B&E: What is the role of innovation in your business?
AJ: The role of innovation in our business is to reduce costs. The rest is market trends. This is an ongoing  initiative and we are showing improvement every year.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

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Friday, November 02, 2012

MIDDLE EAST: NUCLEAR RACE

Israel’s supremacy is in danger

However, the real threat is expected to come from prominent US ally Saudi Arabia. Although it doesn’t possess any nuclear warheads, evidence shows a high probability in the future. It bought 36 CSS-2, intermediate-range missiles from China and also planns to procure new Pakistani intermediate-range missiles capable of carrying nuclear warheads. It has also signed a MoU with US to develop nuclear energy cooperation and is in talks with France. Saudi Arabia opened a nuclear research centre recently and is planning the reconstruction of one of its old nuclear reactors that Israel destroyed.

Now that Iran and Israel are both going the nuclear way, and that its relations with the US are not exactly like the good old days. Saudi Arabia may just be looking to enter the nuclear club. In that case, Israel needs to worry even more. 


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.
 
IIPM : The B-School with a Human Face
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Wednesday, October 31, 2012

CHINA: GROWING MENACE

India must fight fire with fire

Many attribute Pakistan’s strong decree against the US to the strong backing of China along with some Middle Eastern countries. China refuses to recognise the deadly ULFA as a terrorist group and also rblocked Indian attempts to label JuD as a terrorist group in the UN thrice. An article published recently by the Chinese Think-tank, the China International Institute for Strategic Studies also vowed that China can divide India at any moment. It can give political support to its neighbors like Bangladesh. It can also fuel caste politics and regionalism inside the country by supporting separatist groups like ULFA, as per the report.

And the most recent issue has been China’s unwarranted initiative to offer separate visas for Kashmiris. India needs to stop playing down the dragon’s growing audacity. Instead, we need to give them a taste of their own medicine. We could start, for instance, by issuing separate visas to Tibetans & Uighurs when they visit India!


Source : IIPM Editorial, 2012. An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
 
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
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Monday, August 13, 2012

SOCIAL DEVELOPMENT: ICT

They say ICT4D helps; we say too

The All China Women’s Federation used ICT4D to help rural women get access to updated health information online and to provide them secret counselling on rape and abuse. Cuba is practicing online health initiatives while Egypt is using ICT4D to encourage rural education. In countries like China with a massive rural population, newspapers are using ICT4D to go on-line and reach larger sections.

There are macro advantages too. Going by official reports, Egypt’s overall economy grew by 4.7%, pumped up by investments in ICT4D, which experienced a 14.6% growth. The computer and semi-conductor industry supporting ICT4D today forms the back-bone of economies like China, Taiwan and a few other Asian economies. Many developed nations are relying on continuous development in third world countries like India and China for their own future growth. And that is possible only if the purchasing powers of the disadvantaged billions living in these countries (more in India) is increased. If that needs to be double quick, then ICT4D is a social re-engineering process we cannot ignore.


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Saturday, July 28, 2012

Tiananmen Mminus The Bloodshed?

Was the Tiananmen Square incident more of a Western Media Propaganda to damage China’s image? Was the uprising in fact dismantled peacefully without a drop of blood being shed? Did US diplomatic officials already know of this new truism? If WikiLeaks is to be believed... yes!

There are two views of Tiananmen Square. One is the western view, which says that on June 4, 1989, in Tiananmen Square, anywhere between 240-2600 protestors were brutally killed to suppress any uprising; and the other view, which says that in 1989, in Tiananmen Square, no bloodshed occurred and the entire uprising was crushed peacefully. The entire propaganda with respect to the bloody massacre is said to be more of a western media gimmick to dent China’s image in global forums, according to the latter view.

The US diplomatic cables obtained by WikiLeaks (released a week back) indicate that on June 4, 1989, the Chinese People Liberation Army (PLA) “did not massacre demonstrators inside Tiananmen Square.” The cables also cite an eyewitness, a Chilean diplomat, who saw the military entering the square but did not see any mass firing of weapons. The crowd was apparently forced to dismantle using anti-protest weapons like truncheons and wooden clubs. After several requests made by leaders including Liu Xiaobo – Nobel Peace Prize winner, 2010 – students peacefully left the square.

The cables also mention the name of James Miles, who was in Beijing then as the BBC correspondent. James confessed in 2009 that he misinterpreted the entire saga and “there was no massacre at Tiananmen Square.” Another cable declares how the protest was supported by “the leader of China’s trade unions” and further mentions, “An anonymous caller who phoned Congen Shenyang on the morning of May 21 said that the party had convened a CCPCC meeting and that the Chairman of the All China Federation of Labour Unions Ni Zhifu condemned the decision to impose martial law.” Against the popular belief false perspectives created by the western media, a cable quotes a few diplomats who describe a “joyous mood among the protestors after the first introduction of martial law in Beijing failed to halt the pro-democracy movement.”

Beyond WikiLeaks, there are several sites, micro-sites and news items that point towards the same fact. In an archive (titled “A National Security Archive Electronic Briefing Book”) in George Washington University (gwu.edu), the US embassy declared that “...the troop’s lack of weapons in their earlier assault indicates that orders not to use force had still been in effect [during the Tiananmen Square protests]” Another document in the same website (dated June 3, 1989) reads, “Police today fired tear gas on crowds gathered at the walled compound of Zhongnanhai, near Tiananmen Square, according to press reports.”


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