India Inc presses panic button on sagging rupee, economy

Source: Business Standard

Indian companies gearing up for new ‘normal’ for rupee.

With rupee ending at an all-time low of 63.13 a dollar, chief executive officers (CEOs) of top Indian companies are redrawing their currency risk strategies as a “new normal” for the rupee is fast emerging.

Some of the top companies such as Reliance Industries, Birlas, Essar, Adani group, and the Tatas have huge exposure in foreign currency and any change in the rupee’s value increases their costs of operations in a big way.

“I am disappointed, not surprised, with the way the rupee is falling,” says Rahul Bajaj, chairman of Bajaj Auto and one of corporate India’s vocal voices. “We are paying for the last four years of inaction and absence of reforms. The government has spent a lot of money in loan waivers, NREGA (employment guarantee scheme) and Food Security Bill and all these populist measures have now added to the deficit. We are not opposing pro-poor moves. We are against populist measures. We should be treating the disease and not the symptom. Now is the time to change policies.”

Mahindra & Mahindra chairman Anand Mahindra recently said the rupee is falling without a parachute and capital controls announced by the Reserve Bank of India (RBI) is just taking India back to the 1980s. The mood in the corporate camp is sombre. This is in spite of leading CEOs’ many suggestions to the Prime Minister during their meeting on July 29 on how to ring-fence the rupee. However, since then, the rupee has been continuing its downward journey.

Other CEOs say the economic slowdown and lack of initiatives by the United Progressive Alliance (UPA) government is unprecedented which is taking the country on the road to a complete shutdown. “There are no takers for infrastructure projects, and no growth in order book due to land acquisition problems, environmental clearance and corruption. This is perhaps one of the worst times for Indian companies to do business in India,” said the CEO of an infrastructure company asking not to be named.

RBI has already acted aggressively, tightening liquidity and raising interest rates, banning companies and individuals from spending money abroad in an attempt to stem the ongoing rupee weakening. RBI’s surprise tightening has been stark, but similar to that in early-1998, soon after the Asian crisis. This time, however, CEOs say that none of these measures is helping the rupee stop its slide against the dollar.

Bajaj says the government should change its policies instead of trying to manage the Indian currency. CEOs such as S Gopalakrishnan, executive vice-chairman of Infosys, say it would have been more appropriate to initiate policies that prevent an influx of non-essential imports such as coal and iron ore, and augment forex inflows by encouraging foreign direct investments. For this, a conducive and stable policy regime is needed, they add. Foreign institutional investments should also be liberalised by removing short-term capital gains tax.

According to the CEOs, another worrying factor is that oil prices are going up while the rupee is falling. With Brent crude at around $110 a barrel, its impact on inflation and Indian economy is still not being taking into account.

Under the World Trade Organisation rules, India can always impose a higher import duty on expensive, foreign-made cars and this is the right time to take action. “This was something the Prime Minister was made aware of on June 29. Importing coal into India when Coal India is sitting on massive reserves is a shame, they say. The government should immediately take action to part privatise Coal India so that all those power plants, which have shut down due to lack of coal can be revived,” said a CEO.

For many companies including the Adanis, Lanco and Reliance Power, the falling currency has been a double whammy. Many companies had taken massive loans from abroad without taking a forward cover.

They are also importing raw materials from overseas. With the surprise fall in the rupee, many companies are staring at the prospect of a default. “This is like the replay of the 2008-09 crisis. The only difference is that this time the government is groping in the dark and has no clue how to stop the slide,” said the CEO quoted above.

Analysts say sectors such as chemicals, paper, auto ancillaries, power and steel are the most affected from rupee depreciation. Among these sectors, mid-sized companies with exposure to forex risk but limited expertise or intention to hedge might be the most adversely affected.

CEOs say in the coming days, the government could look at the option of increasing import duty on select commodities, such as electronic goods, to reduce the import bill. The electronic goods import bill was $31.5 billion in FY13 (ended March 2013).

A similar 150 per cent import duty on expensive cars may also be considered. A sharper hike in diesel prices, although politically difficult, would also curb the oil import bill, which stood at $169 billion in FY13.

Canada’s Accessible Arctic exhibition in Delhi: August 14-21

Source: Connect – Canada in India

Check out Canada’s amazing natural history and snapshots from the Canadian Arctic at a photo exhibition, in collaboration with Canadian Geographic and the Canadian Museum of Nature, at India International Centre, Delhi. Also, catch two amazing films on the Canadian Arctic – Lords of the Arctic and People of the Ice on August 16 at 6:30pm, as part of the exhibition.

Photo Credit: Kenan Ward.

Canadians help to improve the lives of abandoned children in India

Source: Connect – Canada in India

Since 2008, the East Meets West Orphans Foundation (EMW) of Canada has been helping to provide medical treatment and education for orphans and abandoned and destitute children in Kolkata through an agency agreement with the Indian Society for Sponsorship and Adoption (ISSA). Spearheaded by its president, Order of British Columbia-recipient, Mohini Singh, and ten other board members, EMW is supported by Canadians from all walks of life.

A registered charity through the Government of Canada, EMW has provided over 90 children with education, essential medical care and surgical procedures; many of whom have been adopted by families in India, Canada and other countries. In 2012, EMW sponsored the “Bara Anduliya Crèche” daycare centre for underprivileged children from three to six years of age, which helped provide more than 30 young children with food, early education and medical care.

Examples of EMW’s support are ISSA’s homes Nava Jeevan (for children upto two years of age) and Nava Diganta (for children between the ages of two and 14) which provide specialized medical care and cater to development and education needs of children abandoned at an early age. Such support has recently helped provide surgery and medical care for two infants Subarna (born with a cleft palate and dislocation of both hips) and Ram (suffering from high respiratory distress, malnourishment and developed sepsis).

Through efforts such as a fundraiser organized together with the Deepak Binning Foundation, contributions by the Calgary Foundation and support from individuals such as Kelowna philanthropist Thomas Budd, EMW raised over $30,000 in 2012 and increased awareness among hundreds of Canadians to the plight of millions of impoverished children across the globe.

At the Deepak Binning Dinner fundraiser to be held on 26 October 2013, together with the Deepak Binning Foundation, EMW will also raise money for cancer research and support institutions such as the Cancer Centre and the University of British Columbia in the Okanagan. With an India theme, featuring Indian music, food and attire, the event is held each year to honour the memory of Deepak, a young Indo-Canadian victim of cancer. The organization says, “It is important to help people in our new home, Canada and our native country, India.”

Meet Mohini Singh: With a long and distinguished career as a radio and television journalist, Mohini Singh is a staunch advocate of women and children’s rights both in Canada and around the globe. She has supported issues as diverse as helping victims of spousal abuse, literacy, and the plight of orphans in India. She continues to struggle to overcome challenges such as multiple sclerosis, but that hasn’t hindered her efforts. Ms. Singh was awarded the Order of British Columbia in 2008, the highest civilian award by the Province of British Columbia. She went on to be awarded the Sarah Donalda-Treadgold Memorial Award Woman of the Year for Kelowna in 2009 and the Queen Elizabeth II diamond jubilee medal in 2012. She also became the first Indo-Canadian woman to be elected to the Kelowna City Council in 2011. Inspired by Mahatma Gandhi’s quote “You must be the change you want to see in the world,” Ms. Singh’s efforts and initiatives led to the creation of the East Meets West Orphans Foundation in 2008.

Sharing her thoughts in a conversation with us, Ms. Singh said, “Everyone has the power to make a difference, no matter how big or small it is. When you take the first step others will follow and that will lead to change. My hope is to help people get back on their feet and lead fulfilling lives whether it is in Canada or in India. Together we can make a difference. I know what we are doing through EMW may be very small when you compare it to other organizations, but my hope is that in the long run we will make a huge difference. ISSA is an amazing organization and we are honoured to partner with them. For the future we are looking at another education project in Punjab for orphaned girls.”

About the East Meets West Orphans Foundation: With a mission statement of, “improving the lives of abandoned children by providing healthcare, education and necessary medical treatment for children living in orphanages in developing nations,” the foundation is administered by its board of directors – Vern Nielsen, Caryl McCabe, Kam Boparai,Scott Matthies,Mohini Singh, Andy Virk, Medha Prabhu,Laurence East, Harjeet Sangha, Gwen Zilm and Sharon Shepherd.

About the Indian Society for Sponsorship and Adoption (ISSA): Headed by its Founder Secretary Mrs. Saroj Sood, ISSA is a non-profit child welfare organisation established on 16th December 1975 with a committment “to help abandoned and destitute children in whichever manner conducive to their welfare; either through permanent rehabilitation or sponsorship in the form of education, medical treatment etc.”

India’s newest state has more people than Canada and more Microsoft IT employees than anywhere but Redmond

Source: Quartz

The creation of India’s newest state, Telangana, marks the end of a decades-long quest for self-governance in the country’s south, and was greeted with celebration on the streets of Hyderabad, the state’s new capital city.

But the ruling Congress party’s vote to approve the state’s creation Tuesday night may also usher in an era of uncertainty for dozens of multinational companies with major operations in Hyderabad.

If it was a stand-alone country, Telangana, with a population estimated at 36 million people, would be more populous than Canada, Saudi Arabia, Taiwan or Australia. At 44,300 square miles, Telangana will be about the same size as the US state of Kentucky.

Most importantly for global business, Telangana will share Hyderabad, the south Indian information technology metropolis, with Andhra Pradesh, the state is it separating from, for the next ten years. After that, the city will go to Telangana, whose leaders may have scant business experience, particularly with global corporations.

The city houses the information technology operations of some of the world’s biggest companies, including the largest Microsoft IT center outside of its Redmond, Wash. headquarters. Microsoft’s website calls the Hyderabad center the “backbone” of the company’s IT operations and says it handles IT for more than 1.3 million devices and 194,000 end-users in over 108 countries as well as managing Microsoft’s global data centers and corporate network.

Thousands of employees from other multinational companies including Accenture, Bank of America, Dell, Novartis, JP Morgan, Google, and Facebook also work in Hyderabad’s sprawling business parks.

The Times of India reported that Wednesday “Brand Hyderabad is set to shine once more and brighter at that,” with the Telangana decision made. But Telangana’s independence movement has been tainted by violence, and Tuesday night’s announcement does not seem to have put an end to that. Businesses, schools, and public transportation were shut Wednesday as rock-throwing protestors vented their anger over the decision to give Hyderabad to the new state.

BJP launches Canada unit to connect with Indian diaspora

BJP launches Canada unit to connect with Indian diaspora

Source: One India News

TORONTO: Overseas Friends of Bharatiya Janata Party (OFBJP) has launched a Canada unit with chapters in four major cities – Toronto, Vancouver, Montreal and Ottawa – to connect with the Indian diaspora.

The Canada chapter of India’s main opposition party was formally launched Monday by OFBJP global convener Vijay Jolly at a one day forum organized in Mississauga, Ontario, Canada under its “global community overreach programme”.

OFBJP Canada shall focus on improving cultural and heritage links between the people of Canada and India, Jolly said.

OFBJP delegates from Vancouver, Montreal, Ottawa and Toronto attended the day long meeting at Hilton Garden Inn at Mississauga, according to a media release.

Jolly nominated the following as conveners of the four chapters: Azad K. Kaushik (Toronto), Shivendra Dwivedi (Montreal), Aditya Tawatia (Vancouver) and Shiv Bhaskar (Ottawa.)

Addressing the gathering, Jolly noted that people of Indian origin have played a significant role in development of Canada and for close Indo-Canadian friendship and understanding.

With a population of around 1.2 million in a total Canadian population of 33 million, people of Indian origin have made immense contributions in medicine, IT, commerce, sports, politics, media, social and cultural spheres.

A book titled “Social Harmony” by Narendra Modi, Gujarat Chief Minister and convenor of BJP’s central election campaign committee was presented to the newly appointed OF BJP Canada convenors.

Canada makes immigration more difficult

Source: GulfNews.com

At the centre of the rule changes is a new definition of the phrase “dependant child.”

DUBAI: If you plan to move to Canada after January 1 and have children who are 19 or older, they will have to make separate and independent applications.

And new rules coming into effect then will also make it more difficult for older children who plan to study full time to move to Canada.

It’s estimated by officials in Ottawa that the new rule changes will cut an estimated 7,000 applicants from moving to Canada.

At the centre of the rule changes is a new definition of the phrase “dependant child”. At present, those under 22 are considered to be dependant children and qualify to automatically move with parents if the parents’ application for permanent residency is granted.

Under the new rules, those past their 19th birthday will have to make a separate application — opening a new immigration application file with permanent residency being granted or denied on the merits of the application. With education and work experience being a critical part of the points test for permission to emigrate, the new rule will make it virtually impossible for those new files to be approved — at last until third-level education and work experience build up the needed points.

“These rule changes are going to make it a lot harder for parents who have older children to move here,” Dev Patel, an immigration consultant and paralegal based in Mississauga, Ontario, told Gulf News. “This rule change was announced about a month ago and I am already seeing a spike in files and people wanting to come to Canada are worried. I think that it’s important to spread the news that if you plan to move to Canada, the earlier the better. I know that Dubai and the UAE is often used as a stepping stone for many people from the sub-continent who want to come to Canada. I have several files on my desk right now and two families in Dubai will have to make separate files for their older children if they don’t follow through on the current paperwork.”

The rule changes were detailed in a seven-page report post on the Citizenship and Immigration Canada web site.

“The earlier in life immigrants arrive, the more their educational experience will resemble that of their Canadian-born counterparts and the easier it will be to learn an official language and adapt to Canadian cultural traits and social norms,” a says.

Under the current immigration rules, a child is considered a dependant if they are under 22 and single, but there are exceptions if the person is over 22 and still rely on direct financial support from their parents or legal guardian — and are full-time students.

According to the latest statistics from Ottawa, 64,757 of all sponsored children to Canada were under 19 in 2012 — making up nearly 90 per cent of the total. There were 7,237 applicants as dependant children over 19 in the same year.

Part of the reasoning given in the briefing paper outlining the rule changes says that Canada’s economy remains fragile and needs to be protected.

Age at emigration frequently determines where a person receives his or her education. With the difficulties in determining a foreign credential’s value in Canada and evidence that the return on Canadian education is much higher, the report says. “I think the lesson for all now is that it is becoming harder and harder to immigrate to Canada,” Patel said. “This government has brought in new criteria, raised fees, changed rules and is generally making it more difficult to move to Canada. The reality is that Canada needs new immigrants to continue to grow.”

The dependant children’s age cut-offs in the United States is 21 and, in Australia, 25.

Our medical schools must not become shills for big pharma

Source: The Globe and Mail

Most Canadians might be surprised to learn that medical students in Canada are routinely taught by faculty who have financial ties, and work in partnership, with drug companies. Conflict of interest (COI) policies at medical schools are important to ensure that students get an unbiased education based on the best available clinical evidence, free of industry-sponsored, commercially-driven information. After all, these students go on to become our doctors and we want the best doctors education can provide.

So, do medical schools in Canada lack appropriate conflict of interest policies or are they simply not following them?

In a study published in PloS One, we examined the COI policies at all 17 medical schools across the country. Our findings reveal a glaring problem, and something that should concern all of us. The majority of medical schools (12 of 17) have generally weak or non-existent COI policies, and four schools had policies that were moderately restrictive. Only one medical school – Western University – had stringent COI rules.

In other words, the bulk of our doctors-in-training in Canada are receiving health information that is potentially biased and misleading.

Here’s a telling example: Between 2002 and 2006, the University of Toronto held a pain-management course for medical and other health science professional students that was partly funded by grants from Purdue Pharma LP, the maker of OxyContin. As part of the course, a chronic pain-management book – funded and copyrighted by Purdue Pharma – was distributed to the students free of charge by a lecturer who worked in partnership with Purdue Pharma and was external to University of Toronto. The wording in the book exaggerated both the benefits and the approved uses for these medications, based on the current evidence at that time. Despite recognition of these concerns by the university after a student complained, those who attended the sessions were never informed of the bias or the problematic content of the lectures and book (which was used in a related course up to 2010).

The most poorly regulated areas noted in our study include curriculum selection, receiving free drug samples, visits from pharmaceutical sales representatives and taking part in speaking engagements on behalf of pharmaceutical companies.

Bottom line: Unrestrictive policies allow industry to influence medical residents’ education about appropriate, effective and safe medicines, as well as prescribing choices.

Free drug samples have been found to increase the likelihood that medical residents will choose to provide medications to patients that cost more than equally effective prescription treatments, or other non-pharmaceutical options. Frequent visits by drug sales representatives are associated with influencing prescribing practices, resulting in more frequent prescribing and poorer prescribing quality.

The biggest concern, however, is the lack of education provided to medical students about the pervasiveness and effects of COI relationships with drug companies. Without such guidance, medical students, who will become prescribing physicians, graduate without being fully equipped to deal with either potential conflicts of interest in medical practice, or the influence of industry promotion on clinical judgement.

Our findings mean that industry has the ability to influence the resources provided and information that is taught to medical students. Without effective, stringent policies to regulate industry’s interactions with medical students and faculty, drug companies are granted the ability to be present in medical schools and play notably influential roles in the clinical training of medical students.

If we want the best doctors in Canada, our medical schools need to revise and improve their policies to regulate conflicts of interest between medical faculty, residents and the pharmaceutical industry. These policies should address the medical curriculum and the ways in which relationships with pharmaceutical firms may affect the attitudes and information that is taught to medical students.

Medical students should be educated by medical faculty using the best available clinical evidence that is unbiased by industry so that when medical students graduate, they are able to provide their patients with the best, most effective, and safest treatments possible.