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Saturday, August 28, 2010

Shocking unknown facts about India !!!!!!

Well, history is written based on the records which people have about these so called great people. It is important that everybody should know the reality..... .....may be after their death.


It's inevitable that the truth about them comes out after teir death because while alive they are so powerful that they would have killed the concern people.

Let me elaborate my point: Do you know that still in India more than 50% people (I am talking about uneducated and some of educated) think that Indira Gandhi was daughter of M K Gandhi. Everybody knows contribuition of M K Gandhi in India's freedom movement. So they always thought her as a great person. Not only in India even western people think that Indira Gandhi was daughter of M K Gandhi. Well, Nehru really did not do anything about Indian freedom movement except he demanded to be the first PM of India. So people think her as a Godess. It's true that she was married to Firoz Khan Ghandi (who was a Punjabi-Parsi) . After she had Sanjayand Rajeev they could not get along with each other. Sanjay was with her in India but Rajiv was out of India for education. She kept him away purposefully. Sanjay and she was also not getting along with because he started taking interest in politics and was knowing many of her secrates including her affairs. So she murdered him.

It's important to take out all these things as people who blame BJP, RSS or even MODI they don't know the one side of their so called leaders which is always ignored or did not come into light. Do you know that how India's partition happened? It was tug of war between two ambitious people: One of them was Nehru (of Indian Congress) and anoter was Br. Jina(of Muslim Leag). Both were Cambridge graduated. Both did not contribute much in freedom fighting movement. Due to Lady Baton's close contact to Nehru (Nehru had an afair with her which was accepted by Mt. Baton) it was most likely that British were going to make Nehru as PM. But Jina did not accepted it and asked for a separate Muslim state. This discussion was held back at Cambridge. M K Gandhi was not interested in power because by that time he had become a spiritual person. If he would have accepted to be India's PM then partition would not have occured as Br. Jina also was acepting Gandhi's leadership. It was clear that if Gandhi will not become PM then Mt. Baton will make Nehru as PM. So Muslim leag gave air to Hindu-Muslim conflict in the area and asked for separate Muslim nation. To avoid more bloodshed M K Gandhi did not have any alternative than to accept ML demands. On 15th August 1947 two nations were created. Look, you are talking about the development which has benefited to only 30-40% of India's population. Just go to tribal areas, villages and slums in India. Why so much poverty is there? Why we are not able to make primary schools available to all villages in all parts of India? Have you been to Bihar and West Bengal? What is the condition of people there? They are living in 60-80 years back era. Only few parts of India are developed ...........not all. You talk about all corruption.. .....who has sown the seeds of this corruption initially? Who was in the power right from day 1? Who has rotten our burocratic system? What do you think that it will be possible for one government to remove all this shit in just 4 years? BJP got into power, but it has also allied governemnt. You cannot blaim BJP for this. Not at all. This chaos is created by congress only. And communist media has been supporting them all these years to tarnish BJP and RSS image. Moreover, nobody has bothered about character building of our politicians as well as government officials.

Today's news is: Some group in JDU has provided proofs to PM regarding corruption did by Laloo for giving jobs in railways to Bihari people. He has taken lands from them against a railway job. JDU people have proofs more than 400 pages. What action was taken? PM has asked railway people to enquire about the thing. Isn't it ironical that how the transperancy will be maintained by people in the department where Laloo is minister? This is the way things get handelled. Nobody wants to take responsibility. PM cannot afford Laloos panga. Otherwise UPA government will collapse in a night. This game is going on since 60 years. I hope there is enough reason why the issues are important to be taken
 
 
these are some facts i came across....................................../
don't be serious.............................//
 
...............PROUD TO BE INDIAN....... :-P:-P:-P

Amazing Facts about India and Indians!

1. India is the world's largest, oldest, continuous civilization.

2. India never invaded any country in her last 10000 years of history.

3. India is the world's largest democracy.

4. Varanasi, also known as Benares, was called "the ancient city" when Lord Buddha visited it in 500 B.C.E, and is the oldest, continuously inhabited city in the world today.

5. India invented the Number System. Zero was invented by Aryabhatta.

6. The World's first university was established in Takshashila in 700BC. More than 10,500 students from all over the world studied more than 60 subjects. The University of Nalanda built in the 4th century BC was one of the greatest achievements of ancient India in the field of education.

7. Sanskrit is the mother of all the European languages. Sanskrit is the most suitable language for computer software - a report in Forbes magazine, July 1987.

8. Ayurveda is the earliest school of medicine known to humans. Charaka, the father of medicine consolidated Ayurveda 2500 years ago. Today Ayurveda is fast regaining its rightful place in our civilization.

9. Although modern images of India often show poverty and lack of development, India was the richest country on earth until the time of British invasion in the early 17th Century. Christopher Columbus was attracted by India's wealth.

10. The art of Navigation was bornin the river Sindhu 6000 years ago. The very word Navigation is derived from the Sanskrit word NAVGATIH. The word navy is also derived from Sanskrit 'Nou'.

11. Bhaskaracharya calculated the time taken by the earth to orbit the sun hundreds of years before the astronomer Smart. Time taken by earth to orbit the sun: (5th century) 365.258756484 days.

12. The value of pi was first calculated by Budhayana, and he explained the concept of what is known as the Pythagorean Theorem. He discovered this in the 6th century long before the European mathematicians.

13. Algebra, trigonometry and calculus came from India. Quadratic equations were by Sridharacharya in the 11th century. The largest numbers the Greeks and the Romans used were 106 whereas Hindus used numbers as big as 10**53(10 to the power of 53) with specific names as early as 5000 BCE during the Vedic period. Even today, the largest used number is Tera 10**12(10 to the power of 12).

14. IEEE has proved what has been a century old suspicion in the world scientific community that the pioneer of wireless communication was Prof. Jagdish Bose and not Marconi.

15. The earliest reservoir and dam for irrigation was built in Saurashtra.

16. According to Saka King Rudradaman I of 150 CE a beautiful lake called Sudarshana was constructed on the hills of Raivataka during Chandragupta Maurya's time.

17. Chess (Shataranja or AshtaPada) was invented in India.

18. Sushruta is the father of surgery. 2600 years ago he and health scientists of his time conducted complicated surgeries like cesareans, cataract, artificial limbs, fractures, urinary stones and even plastic surgery and brain surgery. Usage of anesthesia was well known in ancient India. Over 125 surgical equipment were used. Deep knowledge of anatomy, physiology, etiology, embryology, digestion, metabolism, genetics and immunity is also found in many texts.

19. When many cultures were only nomadic forest dwellers over 5000 years ago, Indians established Harappan culture in Sindhu Valley (Indus Valley Civilization).

20. The four religions born in India, Hinduism, Buddhism, Jainism, and Sikhism, are followed by 25% of the world's population.

21. The place value system, the decimal system was developed in India in 100 BC.

22. India is one of the few countries in the World, which gained independence without violence.

23. India has the second largest pool of Scientists and Engineers in the World.

24. India is the largest English speaking nation in the world.

25. India is the only country other than US and Japan, to have built a super computer indigenously.


Famous Quotes on India (by non-Indians)

Albert Einstein said: We owe a lot to the Indians, who taught us how to count, without which no worthwhile scientific discovery could have been made.

Mark Twain said: India is, the cradle of the human race, the birthplace of human speech, the mother of history, the grandmother of legend, and the great grand mother of tradition. Our most valuable and most instructive materials in the history of man are treasured up in India only.

French scholar Romain Rolland said: If there is one place on the face of earth where all the dreams of living men have found a home from the very earliest days when man began the dream of existence, it is India.

Hu Shih, former Ambassador of China to USA said: India conquered and dominated China culturally for 20 centuries without ever having to send a single soldier across her border.


Facts to make every Indian proud

Q. Who is the co-founder of Sun Microsystems?
A. Vinod Khosla

Q. Who is the creator of Pentium chip (needs no introduction as 90% of the
      today's computers run on it)?
A. Vinod Dahm

Q. Who is the third richest man on the world?
A. According to the latest report on Fortune Magazine, it is Aziz Premji,

Q. Who is the founder and creator of Hotmail (Hotmail is world's No.1 web
       based email program)?
A. Sabeer Bhatia

Q. Who is the president of AT & T-Bell Labs (AT & T-Bell Labs is the creator
      of program languages such as C, C++, Unix to name a few)?
A. Arun Netravalli

Q. Who is the GM of Hewlett Packard?
A. Rajiv Gupta

Q. Who is the new MTD (Microsoft Testing Director) of Windows 2000,
     responsible to iron out all initial problems?
A. Sanjay Tejwrika

Q. Who are the Chief Executives of CitiBank, Mckensey & Stanchart?
A. Victor Menezes, Rajat Gupta, and Rana Talwar.


We Indians are the wealthiest among all ethnic groups in America, even
faring better than the whites and the natives.
There are 3.22 millions of Indians in USA (1.5% of population). ,


Websites you might be interested in
India-Resource - a web resource for India-related non-profit or non-commercial sites featuring Indian history, it's cultural legacy, news and analysis, and progressive activism.
Good News India - of positive action, steely endeavour and quiet triumphs - news that is little known.
Department of Tourism - Ministry of Tourism and Culture, India.

FACTBOX - Key political risks to watch in Iraq

A line of Strykers convoy in the early hours of August 16, 2010 as part... The end of U.S. combat operations this month places the onus of ensuring security squarely on Iraqi leaders, even though they have yet to form a new government almost six months after an election.

Continued divisions between Shi'ite-led and Sunni-backed political factions and persistent, devastating attacks by insurgents are creating an air of peril that has kept potential non-oil investors on the sidelines.

These factors could also affect the work of oil majors which have won significant oilfield development deals.

While there are still 50,000 U.S. soldiers in the country ahead of a full withdrawal due by the end of 2011, a perception that Washington under President Barack Obama has disengaged from Iraq could worsen sectarian differences.

Iraq has muddled on without a new government since the March 7 parliamentary vote that produced no clear winner.

Public sector salaries are being paid, the army and police continue to fight the Sunni Islamist insurgency and counter Shi'ite militias, and small development projects already in the pipeline are being pursued.

Projects Iraq has signed with energy majors such as BP and Lukoil that could more than quadruple oil output in seven years are moving ahead slowly.
But the longer the political impasse continues, the longer it will take to address public anger about poor public services, such as a lack of electricity in the stifling summer heat.

The perception may also grow that democracy in Iraq does not work, and Iraqi leaders are incapable of governing, raising the risks of public disturbances, coup attempts and increased meddling by often troublesome neighbours.

Iraq is isolated from world financial markets and has little credit. Only a few dozen companies are listed on the stock exchange. The Iraqi dinar is thinly traded and the exchange rate effectively determined by the central bank in its dollar auctions.
One place to take a punt from afar on Iraq's future is its Eurobond.

Below are some of the major risks facing Iraq 7-1/2 years after U.S. troops toppled Saddam Hussein.


POLITICAL SQUABBLING, POWER VACUUM
Because no single bloc won a majority in the 325-member parliament in the March election, coalition talks are key to forming a government.

Despite announcing a merger, the two main Shi'ite-led electoral blocs remain at loggerheads over Prime Minister Nuri al-Maliki's desire to serve a second term.
The Sunni-backed, cross-sectarian Iraqiya alliance which won the most seats in the election has also been unable to seal a deal with others to give it the majority needed to govern.

Iraqiya, led by former premier Iyad Allawi, a secular Shi'ite widely supported by Sunnis who view him as a strongman capable of countering Shi'ite power Iran, took 91 seats in the election. Maliki's State of Law bloc won 89 seats.
The Iraqi National Alliance, a Shi'ite bloc which includes anti-American cleric Moqtada al-Sadr, took 70 seats, while a Kurdish alliance picked up 43.

The long delay in forming a government could undermine security, and marginalising Iraqiya may anger Sunnis, just as U.S. troops leave.



What to look out for:

-- A flareup in sectarian violence, as happened during the five months it took to form a government after 2005 polls.
-- A failure by parliament, which cannot function without a government, to pass investment legislation, sending a negative signal to firms interested in Iraq but worried about legal risks.


A RETURN TO MAJOR VIOLENCE
Iraq is far less violent than when sectarian killings peaked in 2006-07. Maliki takes credit for security gains, but a U.S. troop rise and Sunni militia cooperation also played a big part.

Since March, Iraqi forces backed by U.S. troops have scored major victories against local al Qaeda groups, including the killings on April 18 of al Qaeda's leaders in Iraq.
Yet Sunni Islamist insurgents, who the government says are in league with Saddam's Baath party, still stage attacks.

The number of Iraqi civilians killed in July almost doubled from June to 396. Significant attacks in August included an Aug. 17 suicide bombing at a Baghdad army base that killed 57, and coordinated attacks on police throughout the country on Aug. 25 that killed 62.

The insurgents are expected to step up their attacks on Iraqi security forces after the formal end to U.S. combat operations.
Political feuds, Sunni discontent or an attack on a holy site could spark a renewal in broad violence, as could any Israeli strike on Iran. Such an attack might prompt Shi'ite militias to retaliate against the remaining U.S. forces in Iraq.

Any major violence will push up prices on global oil markets , as Iraq has the world's third largest oil reserves.

What to watch:
-- Attacks on oil facilities or foreign oil workers.
-- A successful strike against a major political player like Maliki or Allawi.
-- Signs of a return by militia leaders who fled after a 2008 crackdown on sectarian violence by Maliki.
-- Increased infiltration of the Iraqi security forces by militants or insurgents.


KURD-ARAB CONFLICT

Tensions between Arabs and minority Kurds, who have enjoyed virtual autonomy in their northern enclave for almost 20 years, are festering. Kurds were massacred in Saddam's era, but have gained unprecedented influence since 2003 and hope to reclaim areas they deem historically Kurdish.

Arabs and Turkmen complain Kurds have exploited their new-found prominence at their expense. At the centre of the impasse is Kirkuk, which sits on rich oil reserves.

What to watch out for:
-- Clashes between the army and Kurdish Peshmerga forces.
-- Any breakthrough on oil. Iraqi Kurdistan, which estimates its oil reserves at 45 billion barrels, has signed deals with foreign firms that the national Oil Ministry labels illegal.
-- Passage of modern oil legislation, held up for years because of the Kurd-Arab feud. The delay has not deterred oil majors, but potential investors in other sectors view the laws as an indicator of stability and friendliness to business.


NEW AUTHORITARIANISM

Iraq's democratic experiment is significant in a region where leaders often leave office only in a "coffin or coup".
Many Iraqis believe their country needs a strong ruler. The inability to form a government undermines faith in democracy.

What to watch:
-- Unusual Iraqi troop movements, in particular a lockdown of Baghdad's Green Zone where most government offices are.
-- Any effort to change the constitution to allow leaders to amass power or remain in office.


(Additional reporting by Jim Loney and Missy Ryan; editing by Abhishek)
(For more news visit Reuters India)

commonwelth-with big hopes

Corruption, delays, overspend, civic mess, egg on the national face, it all seems to be so very Indian and so very acceptable, at least that's what the Mood of the Nation reflects.


Suresh Kalmadi and Co. can find some solace in the fact that a majority of respondents believe that the Commonwealth Games will be a success, but with a cautionary note: it's probably more to do with the unique Indian art of 'jugaad', or band-aid solutions, than any vote of confidence in the Organising Committee, or Disorganising Committee, as many prefer to call it.

What's more surprising is that Delhi, the unfortunate receptacle of the construction chaos, gives it a solid thumbs up, with 57 per cent predicting success. West Bengal is among the two states-Madhya Pradesh is the other-that raises the red flag but overall it's a positive vote, one that believes that Shera can actually change its stripes.

Most think that the Games will be a success because of the unique Indian 'jugaad' and not because of Kalmadi and his colleagues.

There is, however, a rude reality check for Kalmadi and his colleagues: the majority view is that India's poor sports record and performance is primarily because of its sports administrators. Hardly a revelation but across the board, with solitary exceptions, respondents believe that the Government's sports policies are less to blame than the games administrators play.

Maybe the medal haul at the Commonwealth Games may belie that belief but don't hold your breath. Nor should Lalit Modi. The poll shows that a majority of respondents believe he is the villain of the IPL piece rather than the innocent victim he is portraying himself as. In very few states is there a dominant view that he is a casualty of cricket politics, suggesting that his innings has come to a close.


- Who is your role model?
 APJ Abdul Kalam -19%
 Amitabh Bachchan -10%
 Sachin Tendulkar-10%
 Anil Ambani -6%
 Kiran Bedi -3%

All figures in per cent
Rest: Don't know/Can't say

- What do you think of Lalit Modi?

The villan of IPL - 32%
Avictim of politics - 21


- Will the 2010 Games be a success in India?

 Yes - 37
 No - 12

- Who is to blame for India's poor record in sports?

The Government - 25
Sports officials - 44

All figures in per cent
Rest: Don't know/Can't say



India's poor performance in sports is being blamed on sports administrators, not on the Government's policies.


Reproduced From India Today. © 2010. LMIL. All rights reserved.

Srinagar the Paradise on Earth

Srinagar, the summer seat of the government of the state of Jammu and Kashmir has long been one of India's most popular tourist destinations. In part, this has had to do with the multi-layered character of the city and its several attractions. And in part, this is because Srinagar serves as the base for the numerous places of interest and immense natural beauty that lie within Kashmir - and for most places, this remains the access point. Up to India's Independence in 1947, only the cream of the country traveled and holidayed in Kashmir. Then, within a few short years, there was a boom in tourism and this soon became the backbone of Srinagar's economy and thousands of visitors thronged to the valley of which the Mughal Emperor, Jehangir is said to have remarked in the seventeenth century, "Agar Firdaus bar rue zameen ast, Hamin ast-o, hamin ast-o, hamin ast" - If there is a Paradise on earth, it is here, it is here, it is here.


Srinagar is built on both sides of the river, Jhelum. The old city has quite a different character to the wide spaces of the parks and boulevards and gives expression to the phrase 'cheek by jowl'; this part of the city with narrow streets and houses of exposed brick and elaborate timberwork – which includes half a dozen old bridges - is also the area where many craftsmen live and work; this includes most, if not all of the city’s copper workers.

Srinagar, which lies in a valley, changes its character with every season. It gets snow-laden winds coming down from the hills fairly early in winter. The lakes practically freeze over and yet, some of the iconic houseboats tethered to the icy banks still function. The famous chinar trees and boulevards lined by poplars are stripped clean of their leaves and before rain and snow firmly hush them, they make for a remarkably noisy carpet that rustles and crunches at every step. The inner architecture and scaffolding of these magnificent trees now comes up for display with proud trunks and wiry branches. People move about with 'kangris' with clay bowls and frames of wicker, that hold smoldering bits of charcoal under heavy 'phirans', warm long tunics. In summer, Srinagar gets fairly hot and temperatures can touch 38 degrees Celsius. The numerous parks become the venue for evening promenades.

History
The place-name 'Srinagar' is understood to be a combination of two words, 'sri', plenty or prosperity or abundance, and 'nagar', a town or city – and thus, 'Srinagar', the city of plenty. The position where the city is now sited is believed to have been populated from the times before Christ and this was one of the northern outposts of the great Mauryan Empire that once encompassed most of the Indian Sub-continent. One of the greatest kings of the Maurya dynasty was Asoka, who after a lifetime of war had a sudden change of heart when he saw the bloodshed on the battlefields of Kalinga and he became a Buddhist. It was under Asoka that Buddhism was introduced in Kashmir.

The following centuries saw Srinagar and Kashmir come under the rule of the Kushans and in those years, Buddhism continued to flourish. A sea change came when the marauding Huns ravaged the area in the sixth century and their dreaded leaders Toramana and Mihirkula plundered and slaughtered with impunity. The trail of destruction that the Huns left took a long time to rebuild, but then, right up to almost the middle of the fourteenth century there was stability. The last Hindu king was Laltaditya Muktapida. Written by Kalhana, the Rajatarangini is a chronicle of those times and despite certain inaccuracies, this is considered to be one of the finest windows to life in Kashmir all those centuries ago. After Laltaditya Muktapida, came the rule of Zain-ul-Abidin - who was popularly known as 'Budshah'. With him came the introduction of Islam in the area which even today, remains the predominant religion in the Srinagar area.


Shalimar Bagh, the finest of the Moghul hill gardens

It under the Emperor Akbar that Kashmir (and Srinagar) were brought under the rule of the imperial Mughals when the independent ruler, Yusuf Shah Chak lost his kingdom, supposedly by trickery. As the Mughal empire disintegrated, the stability of Kashmir was also eroded and there were several inroads by Pashtun tribesmen and most of Kashmir - as well as the city of Srinagar - came under the sway of the Durranis. At this time another great force was rising in northern India and this was the Sikh Empire under Maharaja Ranjit Singh and in 1814, Srinagar became subject to Ranjit Singh. With the death of Ranjit Singh, the Sikh Empire fell apart and after the Anglo-Sikh Wars of the 1840s, the control of the Punjab passed into British hands - and this also gave them suzerainty over Kashmir. The British installed Gulab Singh as the independent ruler of the state of Jammu and Kashmir – and Srinagar became a part of this kingdom.

In 1947, when India became independent, practically all princely states acceded either to India or Pakistan. Some rulers held out for a while and one of these was the last princely ruler of Jammu and Kashmir, Hari Singh. His hand was forced and Hari Singh acceded to India when tribesmen from Pakistan (assisted by the regular forces), tried to capture the Kashmir area.


Getting Around
Taxis, auto-rickshaws and buses are available for local transport. Like many old cities, the winding lanes and timber and brick houses of the heart of Srinagar can best be seen on foot. For both taxis and auto-rickshaws bargaining the fare is quite the norm. In this, try and get a benchmark rate for whatever trip you are taking from your hotel or a local person.


Tourist Traps in the City
In everyday dealing, the biggest hurdle is the amount of haggling that is often required. This could vary from auto-rickshaws or buying souvenirs or settling the price of a non-standard hotel room or a houseboat. But normally, it is all done very pleasantly. Srinagar has been in the center of militant activity for over two decades now, but things are much quieter and the place is considered quite safe - but basic precautions must be taken. There is a large presence of the army and para-military forces; occasional checks and road blocks do occur.


Nizat Bagh,the Garden of Happiness

Local Custom
Dress very conservatively in public - even in your hotel dress conservatively in public areas. Follow any requirements in terms of clothing etc while visiting a religious place.

Shopping
The sheer range of goods and souvenirs available in Srinagar often makes just shopping worth the trip. One of the popular (if relatively expensive buys) is cashmere - pashmina - shawls. Some mixes are also available - like pashmina and silk, or pashmina and wool and pashmina and polyester, but are not quite the real thing. Hand-woven ones, compared to machine-made ones command a premium and normally have some irregularity in the weave. The Kashmir Shawl Emporium and the government run emporium are good places for these. Quality carpets in both wool and silk are another good buy. Cheaper scatter rugs, 'namdahs' have a coarser base and are covered with bright embroidery. Papier mache, jewelery, leather, local tweeds, wood carving (mostly in walnut), wicker products, saffron, dry-fruits are some of the other things that can be bought. The iconic images of the leaf of the chinar tree (platanus orientalis) and the paisley (which many believe to have had its origins in Kashmir) will be found numerous handicrafts.

Communications
STD booths are located all over the city. Internet cafes are also available. BSNL broadband is the primary service provider; you can browse the internet, send mails or upload photographs; you may be asked to show some identification document like a passport or driving license. All major GSM providers are there in Jammu - Idea, Airtel, Aircel, Vodafone and Idea among others; but only post-paid connections function throughout the state of Jammu and Kashmir - though pre-paid ones may soon be allowed.

Mobile phones with connections from outside the state do not function in Srinagar.
(Text: yatra.com

Travel postcard-48 hours in paris

 Tourists cool off in the fountains near the Pyramid entrance of the Louvre Museum on... Got 48 hours in Paris? The city of revolution and love has endless things to do. If it's the end of a busy business week and your first time then throw yourself into the heady mix of heritage, culinary delights and entertainment.
Reuters correspondents with local knowledge help visitors get the most out of a visit to the French capital.

FRIDAY
5 pm - So where best to start than overlooking the city. Perched 130 metres above Paris, Montmartre in the north will give you ample scope to build your appetite. From Pigalle metro wander up to the Basilique de Sacre Coeur, a Byzantine-inspired cathedral originally planned as a memorial for the lost soldiers of the Franco-Prussian war. The views from the top will give you a taste of what the city is all about. Head north to Place du Tertre to encounter artists sketching away, bustling cafes and a rabbit warren of cul-de-sacs with ageing edifices.

7 pm - At the steps of Montmartre in the red-light district of the boulevard Clichy, lies the infamous Moulin Rouge. While a little touristy these days, the once favourite hangout of French society has a pricy menu that includes foie-gras trimmings, the finest bubbly and, of course, the famous dancers.

SATURDAY
8 am - It's an early start, but how often are you in Paris? Exit your hotel, enter the first bakery, pick-up a mix of croissants, pain aux raisins and a brioche and take a seat in a cafe. Enjoy a creme or noisette with people-watching.

9 am - It will be a long day, but well worth it. Take a metro to Bir-Hakeim. Book your ticket online to avoid the hordes of tourists at the Eiffel Tower and then, be it by lift or foot, head up the 324-metre high structure. Originally supposed to be a temporary fixture for the Universal Exhibition in 1889, the tower remains the emblem of France.

11 am - Time for a cruise along the Seine river. Pick your transport. The options depend on your level of laziness: City bikes (Velib) are spread across the city and are much like a hop-on-hop-off system. The Batobus or traditional Bateaux Mouches moored by the quay at the foot of the tower stop at major sites along the river. Or go on foot to give yourself versatility to roam.

11.30 am -Head along the river's edge by the Quai Branly. The museum of the same name on the right hand side and a pet project of former president Jacques Chirac offers collections from Africa, Asia, Oceania and the Americas. Wander about 10 minutes further down on the right to Les Invalides. The complex of buildings houses museums and monuments relating France's military past, including the tomb of Corsica's most famous son Napoleon Bonaparte.

Continue along the Quai d'Orsay past the Foreign Ministry and the Assemblee Nationale (Parliament) before turning left and crossing over the Louis 16th-built Pont de la Concorde on the Right Bank. From here enter the Jardin des Tuileries and amble through the gardens leading up to the Louvre Museum.

If you fancy a slight shopping detour, turn left at rue de Castiglione. The Westin hotel has an antique-styled courtyard for a tea or a glass of fine wine, while a bit further down towards the Place Vendome and rue Saint Honore the fashion conscious have a chance to experience the likes of Christian Lacroix, Hermes or Pierre Cardin first hand.
If shopping isn't your thing, then carry on through the gardens to the Louvre and its controversial glass pyramid. Remember queues are often long and it's best to pick one or two exhibitions of the time or select a specific collection such as the jaw-dropping ancient civilisations of the Near East.
Favourites such as the Mona Lisa or the Venus de Milo will mean hours of queuing no matter how early you get there and for many De Vinci's smiling 'La Jaconde'is often a disappointment.

3 pm - Time for a late lunch. Cross the Pont des Arts at the end of the Louvre, where the lovestruck often attach padlocks on to the bridge showing their deepest affections. You're now in the St Germain des Pres area. Stroll along the river and then turn right heading towards the Notre Dame metro.

On rue Saint Andre des Arts is the Creperie Saint-German. A cosy atmosphere with an eclectic selection of music welcomes you to a world of sweet and savoury pancakes and a goblet of cider.

4 pm - Cross over Paris' oldest bridge the Pont Neuf dating back to the early 17th century and made famous by the film Les Amants du Pont Neuf starring Juliette Binoche. It takes you on to l'ile de la Cite, one of two mini islands home to some of Paris crown jewels.

About 200 metres ahead on the left is Sainte Chapelle with its unforgettable stained glass windows, while on the right is the Cathedral of Notre Dame tracing its history back to the 12th century. Behind the cathedral, its gardens lead to the second island l'ile Saint Louis where often the bridge linking the two islands will have accordion players and a raft of free entertainment. Have a seat and soak in the atmosphere.

From here head north into the Marais district. The heart of Paris' Jewish community includes the Picasso museum, lots of trendy craft and fashion boutiques and an increasingly vibrant Chinese community. Once at the rue des Francs-Bourgeois, turn left towards rue Rambuteau and the futuristic Pompidou Centre. The vibrant Beaubourg area is a den of restaurants, cafes and bars so the choice is vast for an evening out, but for dinner why not try something completely different on the rue Quincampoix - Dans le Noir? (In the dark?). The restaurant, bar and lounge offers top notch food served entirely in the dark. The waiters are blind and without their help you're not allowed to move anywhere within the restaurant.

SUNDAY
9 am - A trip to France wouldn't be complete without seeing the finest food on display. Take the metro to Denfert Rochereau in the 14th and amble through rue Daguerre. From oysters to horsemeat and the fruits of the season, some of the freshest foods are delivered to this market street often ahead of their local communities. Try some of the delicacies.

11 am - A stone's throw away from rue Daguerre is the entrance to the underground Catacombes, an ossuary that fills a section of caverns and tunnels that once were Paris' mines. Skulls, bones and tombstones adorn kilometres of passages.

1 pm - Keeping to the same theme, once out of the Catacombes take the metro to the north east to Pere Lachaise. Paris' biggest cemetery is home to the likes of Oscar Wilde and Doors lead singer Jim Morrison and its multiple alleyways offer the odd pastime of tomb-spotting. Just a few hundred metres away on rue du Chemin Vert is a little Kurdish restaurant Zagros. It offers simple, but tasty food from a family whose offspring starred in the 2009 film "Welcome" about a Kurdish refuge looking to swim across the English channel to reach his El Dorado.

4 pm - One last port of call -- the world's most famous avenue the Champs Elysees. Why not drop into the Citroen showroom, the first new building on the road in more than 30 years. If cars aren't your thing, then fight the hordes to get into Laduree to taste the creative pastries of some 40 chefs and where most walk away with at least a box of macaroons.

(Editing by Abhishek)

Sunday, August 15, 2010

What On Earth Are We Celebrating?

August 15th, 2010. India will be
celebrating its 64th
Independence Day. The radio
will be blaring ‘Aye mere watan
ke logon’. TV channels will
alternate between ‘Roja’, ‘Rang
de Basanti’, ‘Border’ and
‘Lakshya’. Schools across the
country will compel their
students to shed Sunday
morning sleepiness and partake
in flag-hoisting ceremonies.
Milestones will be recounted,
leaders glorified and saffron,
white and green will dominate
the landscape . Indians across
the country will wear patriotism
on their sleeve.
But I’ve been wondering what
are we actually celebrating? Are
we rejoicing over how corrupt
officials choose heftier bank
balances over national pride? Or
maybe we ’re happy about how
our elected representatives
decide to put the country ’s
security at risk to further their
own agendas.
Let’s sample a few headlines
from this past week to
determine whether ’tis the
season to be jolly:
The two biggest sports stories
of the year haven ’t been those of
individual excellence or teams
defying all odds to come out
trumps. They ’ve been the stories
of the IPL imbroglio and the
Commonwealth Games Fiasco,
with administrators from both
events under the scanner for
financial irregularities and other
malpractices. After Lalit Modi, it ’s
now Suresh Kalmadi’s turn to be
in the limelight for all the wrong
reasons. Delays, tottering venues
and an ever escalating budget
were only beginning signs of
the rot. Charges against Kalmadi
and other officials over the past
couple weeks have included
corruption, money laundering
and discrepancies in
broadcasting and sponsorship
deals . The CWG was supposed to
generate pride among citizens
and showcase India ’s ability to
stage a global event, but instead
has only managed to be the
source of worldwide
embarrassment.
The Indian cricket team, on
whom lies the brunt of the
nation ’s collective aspirations,
has also let us down this time
with a humiliating 200-run
defeat in Tuesday’s ODI against
New Zealand.
Industrial growth is at the
lowest its been in 13 months
even as inflation has
returned to double digits. Petrol
and diesel prices seem to be
hiked every month. Prices of
commodities like milk, cereals
and fruits have touched an all-
time high. Soaring expenses
means that even the middle class
are crossing out essentials from
their grocery list and the poor
are going hungry. This is even as
surplus foodgrains lie rotting in
godowns . Like the line from a
song in ‘Peepli Live’ goes: Sakhi
Saiyan khoob hai kamaat,
Mehngai daiyan khaye jaat hai
(Friend, my husband earns a lot,
but the inflation is a witch that
eats it all up).
The oil spill off the coast of
Mumbai last Sunday after two
cargo ships collided has brought
up severe environmental
concerns. Marine life and
migratory birds have been
affected and the livelihood of
thousands has been hampered
with estimated losses above Rs
85 crore per day. This
environmental hazard occurred
even as 25 years after the
Bhopal Gas Tragedy, the
Congress party faced allegations
of letting off the guilty under
political pressure . Victims of the
tragedy have till date not been
provided adequate
compensation and health care.
Elsewhere in India, an eight-
year-old girl was mercilessly
beaten up by her teacher for
failing to contribute Rs 2 to an
Independence day function . This
is the kind of ‘freedom’ kids in
this country enjoy, where
corporal punishment is an
everyday occurrence that rarely
comes to the fore.
Nature’s fury hasn’t left us
unscathed either. The cloudburst
and subsequent floods in Leh,
has turned entire towns to slush
and has left the area to appear
like a war ravaged battleground.
The death toll is at 183 and
mounting while over 200 people
are still missing.
Kashmir continued to boil this
week with this summer ’s death
toll from violence rising to over
50 . The Indian establishment
has been unable to win over the
Kashmiri population through
overwhelming force and the
protests in the valley are
directed against the military
presence. Bunkers and security
forces symbolise India for most
Kashmiris.
It’s not just Kashmiris who are in
the centre of internal strife. The
Maoist menace rears its ugly
head almost every day with
murders, kidnappings and
attacks now a common feature
in Naxal-dominated areas.
If all this wasn’t enough, the
deadly H1N1 virus seems to be
making a comeback. There has
been a sudden spurt in swine flu
cases with over 20 deaths being
reported in the past three days.
Are all the above reasons, cause
enough to celebrate? The
optimist in me will still search for
those odd success stories and
attempts to overcome calamities.
I too love my country and wish
to be proud of what I see
happening in it. To my
misfortune, events of the recent
past are making my wish seem
like just wishful thinking.
I don’t know about you, but
come Sunday, it will be difficult
for me to go about chanting
‘ Mera Bharat Mahaan’. Instead, I
might just be tempted to hang
my head in shame.

Tuesday, August 10, 2010

Corruption: where is our outrage

The Commonwealth Games is symptomatic of the
deeper decay, decadence, and
debilitation of our moral and
ethical standards. It is not just
about Suresh Kalmadi. It is
about much more, notes Sanjay
Jha.
At the peak of the Indian Premier
League scam in May
this year, I was frequently asked
by many; 'Just why don't you
guys leave Lalit Modi alone? If he has made money, so
what? At least he has given us
great summer entertainment.
You guys are just party-poopers.'
They would then proceed to
book their tables at the tony
Wasabi restaurant, Taj Mahal
hotel , Mumbai.
I often replied thus: 'What about
franchise bid rigging, blatant
conflict of interest, offshore
kickback deals, private
profiteering in vendor contracts,
Enforcement Directorate and
income tax violations, betting,
match-fixing, slush money...?'
But my monologue would be
rudely interrupted: 'Oh come on,
there are so many who are
corrupt. I am sure he is not the
only one. Catch the big fish in the
sea.'
As the 2010 Commonwealth
Games scam unfolds, Organising
Committee head Suresh Kalmadi's
demeanour indicates that it is his
birthright to indulge in frivolous
expenditure of a few double
digit crores.
There is an imperceptible,
nonetheless oppressive,
presence of casual nonchalance:
What's the big deal if there have
been some surreptitious crooked
contracts?
After all, the now-celebrated
Organising Committee has only a
measly Rs 2,400 crores (Rs 24
billion) allocated, compared to
the overall still-ballooning budget
outlay of Rs 40,000 crores (Rs
400 billion)?
Such a dismal, low percentage; is
it even worth its salt to call for an
incisive investigation?
Kalmadi's mind-set is a
personification of what affects
India; it is the magnitude of
corruption that matters
nowadays, not the act itself.
Thus, our new-found tolerance
for 'minor' shenanigans.
In the age of A Raja and Reddy
brothers, when we are tossing
about Rs 60,000 crores (Rs 600
billion) as effortlessly as fried
noodles in a wok, Kalmadi and ilk
believe their criticism is grossly
exaggerated.
In their opinion, a few crores is
as insignificant as used toilet
paper which needs to be
disdainfully dispatched. Hence,
his palpable outrage for the
endless questioning. I thought
Kalmadi really looked
sympathetically at his inquisitors
as he unleashed a damage
control exercise.
I also feel we Indians are yet to
emerge out of the personality
trap, the hero-worshipping
paradigm. Despite boasting of
our new managerial-
entrepreneurial culture, there is
this preposterous perception
that the Commonwealth Games
cannot be held in the absence of
Kalmadi & Co. It is utter rubbish!
India is not short on talent, and
since when did we believe that
self-promoting over-rated
characters are indispensable?
The CWG scam reflects why
Kalmadi fought against his own
party colleague, Sports Minister M
S Gill, when the latter correctly
tried to limit the tenure of
politicians heading sports
federations.
In a cricket–obsessed country, the
CWG provides a global platform
for our athletes and
sportspersons to display their
talent, grab the limelight, and
achieve national and worldwide
glory. Besides, they could get
better jobs and even commercial
endorsements.
Kalmadi has, at least temporarily,
done incalculable damage to
their morale. He has to own up
moral responsibility for the
unpalatable mess that he has
created for them.
While the whole world appeared
to be somewhat markedly
stunned by Agriculture Minister
Sharad Pawar's involvement with City
Corporation, the firm that made a
failed bid for the Pune IPL
franchise bid, one conspicuous
fact was surprisingly missed by
the otherwise discerning media,
or was it conveniently
overlooked?
Just why and how was Pawar
holding equity stock in a real
estate company? While it may be
a genuine investment, politicians
in land deals are a legendary
source of corruption in our
country.
Pawar's is far from an isolated
case. In fact, he is in
distinguished company.
The Government of India should
keep out of mega global
commercial events like the CWG
as they are beyond its mental
grasp, logistical capabilities and
professional expertise. These
need to be outsourced to
experienced international sports
and event management firms on
a strict performance-based fee
structure.
The only role the Organising
Committee should have played
was of effective facilitator, doing
overall coordination with
multiple agencies.
In the early days of the CWG
scam, a noteworthy development
went unnoticed. An 82-year- old
woman, Vidya Stokes, was
elected to head Indian hockey.
We sure are a sporting nation,
folks. A sporting country reflects
its national character, its
confidence, spirit, self-belief and
zest for success and life.
In India, instead of preparing for
victory speeches, we do dry-runs
for rationalising our failure.
The CWG is symptomatic of the
deeper decay, decadence, and
debilitation of our moral and
ethical standards.
It is not just about Kalmadi. It is
about much more.
Amitabh Bachchan was our Angry Young Man of the
1970s, rebelling against corrupt
cops, shady bootleggers,
unscrupulous factory-owners
and sundry extortionists. I
watched his Zanjeer and Deewaar several times. The
modern-day avatar is too busy
choosing between the iPhone
and Blackberry. Or Bangkok and
Bali.
As long as the shopping festival
is on, and a multiplex is around,
he is 'essentially' satisfied. Has
middle-class India lost its moral
fibre amidst the glittering
facades of towering malls?
During our post-grad days in the
mid-1980s, Priya Tendulkar
shone incandescent in a
Doordarshan serial, and as Rajni
charmed Sunday households
with her audacious challenges to
gas dealers, employment
exchange officers, postmen,
builders, politicians, doctors and
bad bosses. But today Rajni does
not exist; maybe some things
have genuinely improved; or
have they?
I see no anger, no sense of
revulsion, or a desire to protest
anymore. We just do not seem to
care. The rage is missing.

In India corruption is now
deemed a function of size with a
unanimous agreement on 'Yes,
we are all corrupt, but he is a
bigger racketeer than me, blah
blah.' Thus, the small-time crook
if caught stealing actually begins
to have a self-righteous belief
that he is only an unfortunate
pawn.
Seriously, can you really blame
the poorly paid traffic constable
for pocketing a measly 50 bucks
when he gets a daily installment
of Kamadi & Co's accumulating
reserves?
In matters of corruption, there is
no such thing as theory of
relativity, no niggling nebulous
grey areas. In public life, the
margin of error is and should be
zero.
Like Lalit Modi, Kalmadi does not
deserve any sympathy
whatsoever.
The state of decomposition runs
deeper, and this is why Prime
Minister Manmohan Singh needs to not just smell
the coffee, but even take a sip of
the caffeine. If even the men who
are supposed to defend our
boundaries are accused of
financial impropriety by the
Comptroller and Auditor General
of India, we have a grave crisis
outside our door. And facts do
not cease to exist merely because
we ignore them.
The annual rate of growth of
corruption has exceeded the rate
of inflation by a whopping
margin. Despite lowering
personal and corporate tax rates,
why has India's parallel economy
held fort at a staggering 40 per
cent of the GDP? Is it because
corruption has seeped to such
unfathomable depths that it is
now in our DNA, become our
infallible pillar of daily existence?
A Raja, the Reddy Brothers, Lalit
Modi, Amit Shah, Madhusudan
Koda, Suresh Kalmadi, Ramalinga
Raju -- it is an
impressive list covering a
diversified occupational base.
India sure needs to worry.
We are the cynosure of global
capital and perceived as a
political heavyweight, a future
G-3 member and UN Security
Council player. But reputation
matters. Another BRIC country, Brazil, will
hold a mammoth and difficult
event, the football World Cup, in
2014.
India needs to move on
determined to make a difference.
Sorry Mani Shankar Aiyar, but despite the CWG
shame, we should still bid for the
Asian Games in 2019. After all,
even a country is entitled to
redemption.
Sanjay Jha is author, consultant,
and co-runs a political blog

Tuesday, August 3, 2010

Indian mobile brands ring loud and clear


Young people have come to believe in these start-ups and their dream to change the world, writes Bhupesh Bhandari.
Till a year ago, they were just irritants. Today, they are a serious threat. Homegrown mobile phone brands have blown a serious hole in the pockets of their multinational rivals.
According to the Voice & Data annual telecom survey, three Indian brands - Micromax, Spice and Karbonn - raised their share of the market from 2 per cent in 2008-09 to 11 per cent in 2009-10.
During the same time, Nokia's share fell from 64 per cent to 52.2 per cent. In the fast-moving world of mobile telephony, these numbers could be a little outdated.
In the last few months, newer Indian players like Lava and MVL have joined the party. Lava claims monthly sales in excess of 500,000. So, the Indian share of the pie is bound to have gone up further from 11 per cent.
In China, almost 25 per cent of the mobile handset market is with local brands; so there is still headroom for local Indian brands to grow.
Of course, they began by selling at low prices - 30 to 40 per cent below comparable multinational models. But they don't operate just at the bottom end of the market. They straddle the entire spectrum from basic handsets to smart phones, all for less than Rs 6,000.
Rivals have been forced to drop prices to stop their onslaught. Most Indian brands claim they are already profitable. This shows that multinational handset makers, with their high prices, were making heavy-duty profits, though it must be said that their establishment and running costs would be much higher than those of Indian brands.
India [ Images ] may be the largest market for mobile handsets in the world, but it is only now that it seems to have become a buyer's market.
In spite of their low prices, Indian brands manage to spend a lot on marketing and promotion. Some of them have budgets in excess of Rs 100 crore (Rs 1 billion). How do they manage it? There are three lessons that can be drawn from their success.
One, focus on your brand and the features of your product, and get the distribution network right; products can be bought in China and applications can be purchased off the shelf. Two, develop a bottoms-up approach to the market. And three, well-entrenched multinationals are not invincible; market share can be snatched from them with the right product and price.
Almost all Indian brands have gone to smaller towns and villages first - the easier option because multinational brands haven't focused there. Features like long-lasting battery and dual SIM-card carriages were developed specifically for this market.
Having established themselves, they have now begun to move to bigger towns and cities. All for them also want to move up the value chain with 3G and lifestyle phones. That is when they will hurt the multinationals the most.
Before the Indians burst into the scene, most handset makers gave a margin of 2-3 per cent to their retailers. The street-smart Indian brands have raised it to 6 per cent and beyond. Retailers can be found pushing these brands aggressively.
Most of them now want to sell in other emerging markets. Some have already gone to neighbouring countries like Sri Lanka [ Images ], Bangladesh and Nepal. All of them want to go to Africa.
Taken together, the continent offers a market that is almost as big as India - about 10 million handsets a month. One or two even plan to venture into Brazil [ Images ], East Europe and Russia [ Images ]! Their success in India has given them a lot of confidence.
As these markets are similar to India - some are slightly more advanced, most are a little behind - these companies feel they have the right price-value combination. The challenge will be distribution. But if they can sell in a large country like India, they should be able to sell elsewhere also.
All of them get their handsets made in China - it accounts for 60 per cent of the handsets made in the world. Micromax has as many as 11 suppliers there. It has a wide range of products and, therefore, this large army of suppliers. But all of them are worried about the import of telecom equipment from China, handsets included.
Out of security concerns, the Indian government is not keen to have Chinese telecom hardware close to its international borders. As a result, these companies fear that there could be some adverse policy measures against the import of handsets from China.
To cope with this, some of them are mulling production facilities in India. As a hedging strategy, it may be fine. But will they be able to maintain their price advantage if they shift production to India?
But these are very smart people. Some of them take big decisions while walking down the corridor. They are not bogged down by bureaucracy. Young people have come to believe in these start-ups and their dream to change the world.
Some of these companies have recruited from the Indian School of Business in Hyderabad, Indian Institutes of Technology and Indian Institutes of Management. This is not a small feat. And herein lies the lesson for other Indian businessmen. Instead of surrendering meekly to the firepower of multinationals, they can take them head on if they get all the pieces of the jigsaw puzzle right.

Why is inflation in India so stubbornly high


Land market distortions, capital inflows, and services may help explain India's inflation, writes Arvind Subramanian.
We may not know the diagnosis but the Reserve Bank of India [ Get Quote ] has administered, and has no choice but to administer, the only cure it knows: tighten monetary policy by raising interest rates and squeezing liquidity. Even if the cure works, and especially if it does only partially, it is critical to understand the underlying disease.
Leave aside the long-standing debates about the appropriate measurement of inflation. We know that consumer price inflation has been close to or above double digits for nearly two years, and the more cyclically sensitive wholesale price index, after dipping into deflation territory last year, has been steadily rising to surpass double digits.
The puzzle is simply this: why is inflation in India so stubbornly high and so much higher than other emerging markets, even those that are supposedly overheating, such as China, Korea and Indonesia, where inflation is closer to 3 per cent?
Consider a few standard explanations. The first - call it the supply shock factor - relates to agriculture. The weather Gods failed us last year, India's agricultural output suffered a sharp drop as a result, supply declined and prices rose.
The second explanation is what we might call policy shock. Prices of fuel have recently been increased, which is contributing to overall price inflation. Minimum support prices for agriculture have also been increasing. Further, in the face of agricultural supply shocks, price smoothing by the government through greater imports and faster depletion of domestic stocks has been woefully inadequate.
In some ways, the more plausible these explanations are, the less worrying the prospects for the Indian economy. The monsoon is looking better this year, so the agricultural shock factor will not have the same bite going forward. And fuel price increases should be of a one-off nature rather than an ongoing source of inflation.
The most telling pieces of evidence against the view that inflation is supply shock and policy-driven are twofold. High inflation, especially consumer price inflation, predated the monsoon shock of last year.
Moreover, rising prices are not restricted to agricultural goods and have now spilled over into other commodities: double-digit price increases are no longer confined to agricultural commodities.
In this case, we are forced to turn to the third standard, and more worrying, explanation, namely that inflation also reflects overheating: the supply capacity of the economy is simply unable to match the demands on that capacity.
Now, overheating in India can be an agricultural phenomenon or an economy-wide pathology. In either case, there is cause for worry because the implication is that the economy's current growth rate of 7-8 per cent is above its potential or trend growth rate.
In this view, and unless capacity can be significantly increased, attaining China-type double-digit growth rates will remain elusive.
In agriculture, it seems easy to identify the causes of overheating because a scissors effect seems to be at work. On the one hand, productivity growth, especially in pulses, is anaemic and possibly weakening further. On the other hand, purchasing power and hence demand are accelerating, courtesy the NREGS (which is increasingly looking like a pure cash-transfer programme).
We do not know for sure what the bottlenecks are in the rest of the economy. They could be inadequate investment in infrastructure, inadequate supplies of skilled labour (always a possibility in India because its growth model is so skills-reliant), slow total factor productivity growth or some combination of all the three.
Regardless, these constraints - as indeed those in agriculture - are not addressed very quickly. So, even if faster growth is possible, it will not be immediately achievable.
And a corollary is that, given the capacity situation, aggressive monetary policy action will be warranted to bring inflation below 5 per cent, which is believed to be the "Lakshman Rekha [ Images ]" that politicians dare cross only at their own peril.
There may, however, be another explanation of high and persistent inflation that is more cheering in suggesting that inflation is less due to overheating than due to a different type of cost-push inflation. Here's a possible hypothesis.
Serious micro-economic distortions afflict the land market. In itself, this distortion cannot cause inflation because presumably the distortion leads to a one-off increase in the price of land as an input. In other words, the distortion, unless it is continually worsening, will have increased the price level but cannot cause price inflation.
But suppose that these micro-distortions interact with macroeconomic factors such as surging capital inflows into real estate and housing. Such surges will lead to sudden increases in the price of land and related inputs, raising the cost of production in the economy as a whole.
A whole range of services, such as retail, construction, entertainment, education and finance - which account for progressively larger shares of the economy — use significant amounts of land as an input, a fact that gets overlooked in inflation discussions, which tend to focus on agriculture and manufacturing (this may also explain why inflation in consumer prices, which reflect services to a greater extent than wholesale prices, has tended to be above wholesale price inflation).
Generalised cost-push inflation could then be a natural consequence with the push resulting from the interaction between a pre-existing microeconomic distortion and a macroeconomic factor that serves to aggravate this distortion, converting a price-level effect into an inflation effect.
If this is the diagnosis, what is the cure? Clearly, the first best solution is to eliminate the distortions in the land market of which there are many, including urban land ceiling and tenancy laws.
The resulting boost to productivity would increase the overall supply capacity of the economy, making inflation less likely. Structural reforms of the land market will thus be good for inflation and good for growth.
But if land market reforms are infeasible, and inflation continues to be above acceptable levels, policy-makers may have little choice but to address the macroeconomic factors that aggravate the underlying distortion.
In some cases, this may require dampening foreign capital flows, especially those going to real estate and housing; or they may involve other prudential measures such as higher provisioning requirements for real-estate lending.
Thus, the diagnosis of and cures for inflation may need some rethinking. Inflation may have a lot more to do with services and land as an input. And curing it may require addressing the macroeconomic aggravators of microeconomic distortions in addition to traditional monetary policies. Exceptionalism characterises India's development pattern, but does it also apply to the nature of its inflation?
The author is senior fellow, Peterson Institute for International Economics and Center for Global Development