IITs Find A Place In 2014 World Ranking

Source: Times of India | February 26, 2014

COIMBATORE: IIT-Delhi, IIT-Madras and IIT-Bombay have found a place in the subject-wise ranking for the year 2014 released by Quacquarelli Symonds (QS), a leading world university ranking agency, in the city on Tuesday.

Under the civil and structural engineering subject, IIT-M and IIT-B have been ranked as 49 and 50 respectively. Similarly, under the electrical and electronic subject, IIT-D and IIT-B have been ranked as 42 and 489 respectively. For material science, Indian Institute of Science has been awarded 46th place.

The rank list was released during a higher education summit held at the city-based Amrita University. The event was initiated by The Economic Times. Ben Sowter, the head of QS Intelligence Unit, said that the rankings were based on three criteria – academic reputation, employer reputation and citations per paper.

TCS Insights: With Indian institutions focusing more on increasing their reputation in global rankings, these IIT campuses look to set a trend that will continue across the country for years to come.

Letter of Intent Between Canada and India

Source: Business Standard | February 27, 2014

India and Canada have inked a Letter of Intent (LOI) to collaborate on research exchanges to increase student mobility between the two countries.

The agreement was formalised by Mitacs CEO Arvind Gupta and Additional Secretary Amita Sharma, representing the Ministry of Human Resource Development.

“This LOI represents the start of a long and fruitful collaboration which will see exceptional students travelling between our two countries to promote research, share perspectives and build joint R and D capacity,” said Dr. Gupta.

Launched in 2008, the Mitacs Globalink program has brought top international undergraduate students to Canada for summer research internships.

In the first six years of the program, over 800 students have come to Canada.

On January 15, 2014, the Government of Canada announced USD 13 million in funding for Mitacs in its International Education Strategy, enabling Mitacs to launch new initiatives to provide research and training opportunities for Canadian students in Brazil, China, India, Mexico, Turkey and Vietnam.

TCS Insights: Students looking to carry out research while experiencing a new country will be afforded more opportunities to as a result of this letter of intent. Hundreds of students have already gained from the partnership between these two countries and this trend will continue to rise as mobility becomes easier.

More Needs To Be Done For Enrolment in Higher Education: President

Source: Times of India | February 22, 2014

CHENNAI: Observing that India has made a good improvement on the enrolment in higher education, President Pranab Mukherjee on Saturday said however more have to be done in this regard as countries like the US and Germany were far ahead in number. He said that enrolment ratio has increased from point six per cent to seven per cent but, we still have to be kept in mind that India was still behind nations like Germany and the US, whose enrolment ratios stood at 27 per cent and 37 per cent respectively. In his address at the first convocation of Indian Maritime University here, Mukherjee also urged the students to serve the society alma mater and the country.,/span>

TCS Insights: With college and university enrolment numbers on the rise, President Mukherjee remains focused on closing the gap between India and different western countries. Students would do well to become involved in their schools and still contribute to its success after graduation.

Students to Be Connected Through Cloud Services

Source: Times of India | February 21, 2014

Guwahati: Students in Assam will soon be connected via cloud services, announced state education minister Himanta Biswa Sarma here on Thursday. 
 
Speaking to mediapersons on the sidelines of an event to distribute Netbooks among students under a government-sponsored programme, Sarma said that the education department is also aiming at providing internet connectivity for students in all colleges across the state to keep them updated. 
 
“We are planning to connect all the students who have got laptops and Netbooks through cloud services. Only then can the government’s initiative of providing laptops and Netbooks to students be fully effective,” said Sarma. 
 
The state government has been awarding free Netbook computers and laptops to students who have passed matriculation with 50 per cent or more marks. He said that plans to connect students with cloud services are aimed at keeping them in constant touch with the latest developments in the education department. 
 
“After the students are connected via cloud, we will be able to send them timely updates related to examinations and study routines and even send them study material,” the minister said. Cloud computing, which is a process of running a program or application over many computers connected by a network, will benefit thousands of matric passouts who have received laptop computers and Netbooks from the state government. Sarma said connecting the students through cloud services features in the state’s annual plan this year.

TCS Insights: The Indian government is achieving their goal of keeping Assam students connected to their studies by making portable computers accessible to an increasing number of students. Through this upgrade to the education system, students will have more access to course material and information than ever before.

Governor General to Undertake State Visit to the Republic of India

Source: Consulate General of Canada News Release | February 19, 2014

OTTAWA—At the request of the Right Honourable Stephen Harper, Prime Minister of Canada, Their Excellencies the Right Honourable David Johnston, Governor General of Canada, and Mrs. Sharon Johnston will conduct a State visit to the Republic of India, from February 22 to March 2, 2014.

“Sharon and I are looking forward to our State visit to India, which will be centred on the themes of innovation, entrepreneurship and education, with a special focus on the contributions of women and girls,” His Excellency said. “This visit is a reflection of the importance Canada attaches to its relationship with India. Both of our countries are committed to strengthening our partnership and co-operation. The Canada-India economic relationship is strong and holds tremendous potential for broader and expanded collaboration. During our time spent in New Delhi, Bangalore and Mumbai, we will meet with government officials, representatives from the business and education sectors, and those from non-governmental organizations with the aim of advancing our economic, academic and cultural ties with our Indian counterparts.”

His Excellency will be joined by parliamentarians and an accompanying delegation of Canadians who will enhance business, academic, cultural and people-to-people ties with their Indian counterparts. These exchanges will further develop the wide-ranging and multi-faceted relationship with India, a major economic player and priority market for Canada, and will provide greater impetus to bilateral initiatives in various sectors, particularly in strategies promoting innovation, entrepreneurship and education.

State Visit to India: New Delhi (February 22 to 25)

In the capital city of New Delhi, Their Excellencies will be officially welcomed by the President and Prime Minister of India during a welcoming ceremony at Rashtrapati Bhawan, the Presidential Palace. To underscore the important friendship and co-operation between both countries, and on behalf of the people of Canada, Their Excellencies will present an inuksuk to the people of India.

During this visit, His Excellency will meet with Canadian and Indian business leaders to discuss our nations’ economic relationship at a business meeting with the Chambers of Commerce hosted by the Government of India, and at the Canada-India CEO Forum. The Governor General will also discuss the role of innovation in addressing global health challenges during the Grand Challenges Global Health Innovation Roundtable, organized by Grand Challenges Canada.

Her Excellency will discuss the opportunities and challenges faced by women researchers supported by the International Development Research Centre (IDRC), and also by women entrepreneurs. She will also visit non-governmental organizations (NGOs) providing education to underprivileged children, and free services to children diagnosed with cancer.

State Visit to India – Bangalore (February 26 and 27)

In Bangalore, Their Excellencies will meet with the Governor of Karnataka. They will visit the All India Coordinated Small Millets Improvement Project—created by IDRC and the Department of Foreign Affairs, Trade and Development (DFATD) at the University of Agricultural Sciences, in Bangalore—as well as inaugurate the new consulate general, which will oversee Canada’s expanded presence in South India.

His Excellency will discuss the importance of skills development in further building connections between Canadian and Indian institutions during a panel discussion, and participate in a Canada-India discussion on innovation hosted by the Asia-Pacific Foundation of Canada and the National Innovation Council of India.

Her Excellency will visit NGOs dedicated to helping children with HIV and to supporting Indian women entrepreneurs.

State Visit to India – Mumbai (February 27 to March 2)

While in Mumbai, Their Excellencies will meet with the Governor of Maharashtra, and pay their respects at a memorial to the 32 victims of the November 2008 terrorist attack on the Taj Mahal Palace Hotel. During a visit to Dharavi, one of the largest slums in Asia, Their Excellencies will see, first-hand, examples of India’s deep-seated entrepreneurship and various micro-businesses. They will also discuss the future of audiovisual co-production between Canada and India at Film City, one of the largest shooting locations in India.

In addition, His Excellency will have the opportunity to open the stock market at the Bombay Stock Exchange, and witness the inauguration of BIL-Ryerson DMZ India Ltd., an incubation centre for entrepreneurs supported in partnership with the Bombay Stock Exchange Institute, Ryerson University and Simon Fraser University. He will also address innovators and entrepreneurs at the Indian Institute of Technology-Bombay; business leaders at the Indo-Canadian Business Chamber Annual Convention; and the heads of various educational institutions to exchange views on skills development and the future of education in India.

Her Excellency will meet with women leaders from the private and public sectors, civil society and academia on the status of women in India, and visit a strategic philanthropy NGO co-founded and co-managed by an Indo-Canadian. She will also meet with social workers and volunteers who prevent second-generation trafficking among the children of sex workers in Asia’s largest and oldest red-light district.

Visits abroad by a governor general play an important role in Canada’s relations with other countries. They are highly valuable as they help broaden bilateral relations and exchanges among peoples.

Members of the public can follow the Governor General’s State visit to the Republic of India online at www.gg.ca, where speeches, photos and videos will be posted.

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The detailed itinerary and a list of accompanying delegates will be published at a later date.

Media information:

Marie-Ève Létourneau                                               Rideau Hall Press Office 613-998-0287 [email protected]

Global Job Offers Double for IIM Bangalore Graduates

Source: Times of India | February 18, 2014

BANGALORE: It’s a windfall for the class of 2012-14 at the Indian Institute of Management-Bangalore. Bucking negative trends, 388 students received 425 job offers from 150 companies during the final placement season. And compared to last year, international placements offered to the students doubled, from 20 to 41. This year, the B-school saw its biggest ever postgraduate programme in management (PGP) batch.

The pre-placement offers poured aplenty with 117 students receiving offers prior to the start of the final placements, which is 20% higher than last year.

The lateral placement season for candidates with more than 22 months of work experience broke all records with 127 offers made by firms in varied domains like strategy , leadership, product management , consulting and general management . Nine candidates chose to join social ventures.

The highest number of offers, about 27%, came from the consulting sector. Accenture Management Consulting, with 13 offers, was the top recruiter in this segment this year; McKinsey and Co. and the Boston Consulting Group had 11 each.

Average hike: The average salary offered this year is Rs 19.5 lakh per annum, 13.3% more than the Rs 17.2 lakh offered in 2013

Top sectors: Consulting 27% Banking & finance 19% IT & technology 17% General management 14%

Key recruiters: Amazon, Samsung, IBM, Coca-Cola , PepsiCo, Reliance Industries Ltd and Flipkart

Foreign companies flock to IIMB: Germany-based incubator Rocket Internet hired exclusively from IIMB for the first time, offering an international role for one candidate. Another firsttime recruiter was LinkedIn.

Sankarshan Basu, chairperson of Career Development Services, IIMB, said usually final placements take place during March. This year it was advanced by three weeks. Two students opted out of the placement process, with one wanting to pursue research and the other seeking to explore opportunities with his previous employer.

There is a rise in salary package over last year. This year the average salary is Rs 19.5 lakh per annum and the median salary, Rs 17.3 lakh. Last year, they were Rs 17.2 lakh and Rs 15.5 lakh, respectively. Ankit Rustogi, students’ placement representative , said the highest salary packages were offered by general management and financial services sector.

TCS Insights: Students of IIMB found success after graduation with many graduates quickly earning job offers, including international placements. Industries that have seeked IIMB graduates include Management, IT, Consulting, Banking and Finance. With the average annual salary offered having increased from last year, graduates look to gain as much from foreign companies as these firms hope to gain from their new employees.

Translating Culture vs. Cultural Translation

Source: Hindi Center

Contact: Ravi Kumar, President – Indian Translators Association, 613-707-1349; [email protected]

Harish Trivedi, Professor at University of Delhi, highly appreciates the fact that over last two or three decades, translation and translation studies have become a more visible, more prolific and more respectable activity than ever before.

Trivedi further links this discipline with post-colonial studies that emerged as an area of studies just a few years before translation studies and both of them have become interactive to each through a series of books in this direction, eg. Siting Translation: History, Poststructuralism and the Colonial Context (1992) by Tejaswini Niranjana, The Poetics of Imperialism: Translation and Colonization from The Tempest to Tarzan (1997) by Eric Cheyfitz, Translation and Empire: Postcolonial Theories Explained (1997) by Douglas Robinson, and Postcolonial Translation: Theory and Practice (1999), a collection of essays edited by Susan Bassnett and Harish Trivedi etc.

Before new development took place, translation remained confined to two different subjects or discipline: linguistics and comparative literature, and remained restricted to substitution of a text in one language for a text in another. But shortly after, it began to be noticed that literary texts were constituted not primarily of language but in fact of culture, language being in effect a vehicle of culture. 

Trivedi recognizes that interaction of language with culture helped translation studies expand its horizons and revitalize the discipline. This helped liberate it from the completely mechanical tool of analysis available in linguistics. The words which proved intractable are often described as being culture specific. For example, words like kurta, dhoti, roti, loochi, dharma, karma, or maya etc.  began to be treated as specific cultural elements very different from their corresponding western near equivalence shirt, trouser, bread, religion, deeds both past and present, or illusion respectively. Slowly not only some words were taken as culture specific but indeed the whole language became specific to the particular culture it belonged to.

Trivedi refers to Susan Bassnett and Andre Lefevere who added cultural dimension to translation studies through their title, ‘the cultural turn in translation studies’ in their book – Translation History and Culture (1990). Trivedi further explains, it was Susan Bassnett who declared death of comparative literature in wake of gaining popularity of post–colonial literature.

Trivedi is concerned with the fact that in parallel there has been growth of Culture Studies – from Eurocentric beginning to International stature- which is like translation studies is interdisciplinary in nature, but of them have failed to interact properly. Susan Bassnett did propose a four point agenda: the way in which different culture construct their images of writers and texts, a tracking of the ways in which text become cultural capital across culture boundaries, and an exploration of the politics of translation, especially of what Lawerence Venuti has called, “ethnocentric violence of translation”, and pooling of the resources.

Trivedi is disappointed with the fact that the cultural turn in translation and culture studies have not come to terms together, maybe because of the fact that translation deals at least between two languages whereas culture studies deals only in one language mainly English. Hence it remains an unfulfilled desire.

Trivedi further moves on to yet another discipline called, “Cultural Translation”. This may not be confused with old fashioned sense of translation that involves domestication of text from source to target language. This sort of cultural translation is yet to find its entry in the encyclopedia and anthologies of translation studies, and that this sort of Cultural translation is a dangerous trend that promotes monolingualism, monoculturalism and wants to convert multicultural and diversified world to a monolithic world.

Trivedi sites some examples of this postcolonial and postmodernist discourse and refers to Homi Bhabha who promotes this trend. Trivedi is critical of Bhabha who in his book, “The Location of Culture (1994)” discusses Salman Rushdie’s novel “Satanic Verses” as an example of cultural translation, inspite of the fact that this mentioned book was written originally in English and read in that language only (not in any other translation). Trivedi called it representation of postcolonial diaspora, and what Bhaba is talking is “Transnational as Translational”. Trivedi rejects this concept and suggests for use of another word in place of translation. It is not translation, it is a process of human migrancy.

Trivedi further sites examples of Hanif Kureishi, a writer born in England with one British and one Indian/Pakistani parents. He has nothing to do with immigrant population as he is by birth British, but he writes on new British immigrant’s communities because he is being paid for it. Thus Trivedi rejects Bhabha’s claim that cultural translation is the need of immigrant population, and asserts that such works are hegemonic western demand and necessity.

Trivedi further sites examples of Jhumpa Lahiri, who was born of Bengali parents in London, grew in America to become an American citizen at age of 18. She has written fiction not about Indians in America, but also some stories about Indians still living in India. She has been criticized for having reflected erroneous and defective understanding of India. She admits that her knowledge of India is limited- the same way- all translations are defective, thus her representation of India is her translation of India. She further elaborates that almost all her characters are translators, insofar as they must make sense to the foreign to survive.

Trivedi is very much worried about use of the word translation with cultural translation as it dilutes the discipline of translation studies. Therefore, he calls for use of other words like migrancy, exile or diaspora with culture to describe such phenomenon, but not the “Translation”.

Trivedi is worried over Susan Bassnett’s statement on Edwin Gentzler’s book, “Contemporary Translation Theories” where she says, “… the book is not only a critical survey but effectively also a translation, it transforms a whole range of complex theoretical material into accessible language”. Trivedi puts his concern by saying, “it is the same language English, in which such theoretical complexity and such accessibility both exist”.

Thus we notice that Trivedi ‘s concern on dilution of the word ‘translation’ with monolingual cultural interpretation of migrant population is quite genuine, and that a careful approach is needed to tackle such dilution process that aims to bury multilingualism, multiculturalism and diversity of culture in name of cultural translation.

Times Higher Education to Add India-specific Parameters to Ranking

Source: The Economic Times | January 6, 2014

NEW DELHI: Indian institutions could improve their scores dramatically in Times Higher Education’s globally cited World University Rankings as the British magazine has agreed to develop and include India-specific parameters for assessment from the next time.

Confirming the development, education secretary Ashok Thakur said the human resource development ministry had asked all groupings of domestic institutions such as the IITs, National Institutes of Technology and central universities to appoint a nodal person to coordinate with Times Higher Education to develop India-specific parameters.

Domestic institutions have long argued that the rankings, which give 55% weight to research indicators and 30% to teaching environment, including 15% to the faculty, do not take into account extenuating “Indian circumstances”.

No Indian institution has yet made it to the top 100 in the rankings, in which Panjab University is the highest ranked domestic institution clubbed in the group of universities ranked 226-250.

India’s premier engineering colleges, the Indian Institutes of Technology, made it to the list last year, with the IITs from Delhi, Kanpur, Kharagpur and Roorkee all ranked in the group of institutions between 351 and 400.

The government has been concerned over the poor performance of domestic institutions in international rankings and keen to ensure that the rankings take India-specific parameters on board.

There is little clarity on what exactly constitutes “Indian circumstances” except the constitutionally mandated reservation quotas (15% for scheduled castes, 7.5% for scheduled tribes and 27% for other backward classes) and the cross-cutting quota for physically-challenged persons. But issues including intake of foreign students, foreign faculty, marketing and branding of institutions will be addressed while designing India-specific parameters for assessment.

Academics and analysts argue that it is unfair to compare India’s top institutions with American or other western institutions. Centrally-funded institutions such as the IITs, which have a national mandate, cannot admit foreign students at the undergraduate level, and restrictions on assistantships for international students make it difficult to attract foreign students at the PhD level.

None of India’s publicly-funded higher education institution can hire foreign nationals as regular faculty members since guidelines prohibit hiring of foreigners for jobs with salaries less than $25,000 a year. Moreover, even at higher salaries, international faculty can only be brought in on contract for up to five years.

The ministry had also approached the widely respected Quacquarelli Symonds (QS) Rankings to develop India-specific parameters for assessment.

TCS Insights: By using India-specific parameters, Indian educational institutions will be better able to compete with international colleges and universities when ranked together. It is difficult for publicly funded institutions in India to measure up to global competition while unable to take in foreign undergraduate students and competing for PhD students from abroad. Times Higher Education has made it possible for such institutions to compete in a manner that is better suited for them.

Only 10% of Students Have Access to Higher Education in Country

Source: Times of India via Newswatch India | January 5, 2014

NEW DELHI: Access to education beyond higher secondary schooling is a mere 10% among the university-age population in India. This is the finding of a report “Intergenerational and Regional Differentials in Higher Education in India” authored by development economist, Abusaleh Shariff of the Delhi-based Centre for Research and Debates in Development Policy and Amit Sharma, research analyst of the National Council of Applied Economic Research.  
 
The report says that a huge disparity exists — as far as access to higher education is concerned — across gender, socio-economic religious groups and geographical regions. The skew is most marked across regions. Thus, a dalit or Muslim in south India, though from the most disadvantaged among communities, would have better access to higher education than even upper caste Hindus in many other regions. Interestingly, people living in Bihar, Uttar Pradesh and West Bengal — designated as the north central region — and those in northeast India have the worst access to higher education. Those in southern India and in the northern region — consisting of Jammu & Kashmir, Punjab, Himachal Pradesh, Uttarakhand, Chandigarh, Haryana and Delhi — are relatively better placed in this regard.  
 
In the age group 22-35 years, over 15% in the northern region and 13% in the southern region have access to higher education. In the north-central region, the number is just 10% for men and 6% for women whereas in the northeast, only 8% men and 4% women have access to higher education.  
 
The report, brought out by the US-India Policy Institute in Washington, is based on data from the 64th round of NSSO survey 2007-08. It throws up quite a few other interesting facts. For instance, among communities, tribals and dalits fare worst with just 1.8% of them having any higher education. Muslims are almost as badly off, with just 2.1% able to go for further learning. Similarly, just 2% of the rural population is educated beyond higher secondary level, compared to 12% of the urban population and just 3% of women got a college education compared to 6% of men.  
 
South India offers the best opportunities for socially inclusive access to higher education including technical education and education in English medium. For instance, the share of Hindu SC/ST in technical education in south India is about 22%, and the share of Muslims 25%. These were the lowest shares among all communities in south India. But this was higher than the share of most communities including Hindu OBCs and upper caste Hindus in most other regions. South India also has the highest proportion of higher education in the private sector at about 42%, followed by western India where it is 22%. The northeast has the least privatized higher education sector and is almost entirely dependent on government-run or aided institutions.  
 
Not surprisingly, government institutions are the cheapest places to study at, with annual expenditures ranging from less than Rs 1,000 to around Rs 1,500, except in north and south India, where the average is above Rs 2,000. Both private and private-aided institutions are quite costly, making them difficult to access for the poor. With little regulation of the quality of education and cost differentials, the poor and deprived are often trapped in low quality education, the report points out. It adds that although free education is provided at school level, it is almost non-existent at higher levels.  
 
The report also compares India’s low 10% access to higher education with China’s 22% enrolment and the 28% enrolment in the US. Since the early 1990s, China’s post-secondary enrolments grew from 5 million to 27 million, while India’s expanded from 5 million to just 13 million, says the report, while emphasizing that higher education has the potential to enhance productivity and economic value both at the individual and national levels.  
 
“The government has to urgently address the geographical skew in the availability of higher education facilities in the two regions of north-east and north-central,” says Shariff. “The central region, comprising Chhattisgarh, MP, Rajasthan, Jharkhand and Odisha, too needs attention. There is so much talk about a Harvard in India. I say, give two hoots to Harvard. What we need are thousands of community colleges that can offer professional courses so that youngsters can improve their skills and become employable.”

TCS Insights: In regards to the ability to access a higher education, disparities are apparent across a various groups in India. Due to a lack of regulation, in terms of the quality of education provided, not being able to afford a private institution can lead to individuals earning a poorer education because of where they are from, in addition to factors such as religious beliefs and gender. It is thought that increased enrolment in higher education has been linked to both individual and national improvements.

India Confronting Multiple Challenges, Crises in Higher Education: Ansari

Source: News Track India | January, 9, 2014

Lucknow, (ANI): Vice President Mohammad Hamid Ansari on Thursday said that India as a nation is facing multiple challenges and crises in terms of delivery in the higher education sector, and warned that if comprehensive correctives are not initiated, the demographic dividend would be severely compromised on the employability front in the years to come. 

He said that it was lamentable to note that in spite of the higher education system turning out nearly seven lakh science and engineering graduates every year,industry surveys have shown that only 25 percent of these are employable without further training. 

He said comprehensive correctives had to be applied on quality covering students, faculty and teaching, research and assessment standards while delivering an annual convocation address at the University of Lucknow. 

He said that any assessment of what ails “our institutions of higher education must begin with the quality of the school leavers that seek admission in them.” 

“The challenge here is to modulate the very considerable quality difference between the elite higher secondary schools in the public and private sectors on the one hand and the average or below average ones on the other, a difference that is often camouflaged by the variations in marking standards by different Boards,” he said. 

Ansari said that in the 21st century, the world is increasingly moving towards a knowledge economy, where industrial trade relations are being replaced by a complex system of information exchange. 

“This has shifted the focus to a nation’s abilities and resources to produce and generate new knowledge that can place it on top of the global power hierarchy. Countries are now required to match the global demand for skills with appropriate supply of human resources in order to remain competitive in the global market place,” he said. 

He expressed that a disturbing phenomenon is the lack of focus on research with only one per cent of the enrolled students pursuing research in various areas. 

According to data for 2009, India stood eleventh in terms of number of papers published, seventeenth in terms of the number of citations, and thirty fourth in terms of number of citations per paper. 

“Our research output as global share of scientific publications was a mere 3.5 per cent compared to 21 per cent of China. The total number of patent applications filed by Indians in 2010 comprised only 0.3 per cent of the total applications filed globally. The picture is no better in social sciences and humanities. In social sciences, India is 12th in ranking with 1.18 percent of global publication share compared to China’s 3rd rank and 5.14 percent share,” Ansari said. 

The vice president said that given the structure of the higher education system, the attainments of these objectives would need to be a collective effort of the central and state governments.

TCS Insights: It is said that various sectors of the Indian education system is in need of corrective actions. Ansari claims that further investments in research, similar to those seen in Canada, can make India increasingly competitive in the global knowledge economy.

Virgin Atlantic eyes growth in India, US

Source: Business Standard

CEO rules out investment in India, feels UK travel bond will not jeopardize travel.

After concluding a joint venture deal with Delta Airlines, Virgin Atlantic Airways was eyeing a bigger pie of the lucrative India-US market, Virgin Atlantic’s chief executive Craig Kreeger said on Monday. He ruled out investment in an Indian carrier, saying Virgin Atlantic was in talks with global airlines for code sharing on its routes within the UK.

Known for its flamboyant and trendy image, Virgin Atlantic is a minnow among airlines due to a small fleet and limited network. Though it flies to Delhi and Mumbai daily, as well as to nine cities in the US, it has a smaller network compared to British Airways, which flies to five cities in India and twenty destinations in the US. Along with its code-sharing partner American Airlines, British Airways could offer 200 additional destinations.

“We are seeing growth in the India-US market. The combination of our excellent timing and our products and services is working well for us,” Kreeger told Business Standard. The tie-up with Delta, which acquired Singapore Airline’s 49 per cent stake in Virgin Atlantic earlier this year, offers the airline an opportunity to expand the US network.

The two airlines have already announced code-shares, reciprocal frequent flyer programmes and lounge access and are awaiting the US government’s approval to cooperate on creating joint schedules, fares, etc. Kreeger said the joint venture was likely to be kick-started in January 2014. The deal allows Virgin Atlantic to sell on Delta’s flights beyond London to points in the US, as well as on Delta’s domestic routes in the US, increasing its revenue possibilities.

Virgin Atlantic also plans to scale up its corporate business in India. “Last year, we entered the Mumbai market with a different approach. We took a valuable asset, a peak time landing slot in London. We felt this market needed connectivity to the US, Manchester and Scotland. From both directions, we are able to offer greater connections. We are actively involved in expanding corporate sales,” Kreeger said.

He refused to specify on expanding code-share with Jet Airways. The airline was in talks with various carriers that didn’t partner British Airways, he said, adding Virgin Atlantic was keen to connect on domestic routes in the UK. The airline was evaluating plans to join Air France-KLM-Delta-led SkyTeam, a global grouping of airlines, he said.

“Security of borders and immigration is in the purview of the government but I have expressed concern to the British High Commission in India over the proposed bond for Indian travellers,” he said, adding any possible restriction would only have a modest impact on travel to the UK. According to information made available by the High Commission, if applicable on Indians, the move would impact less than one per cent of UK visa applicants, Kreeger said. “The visa acceptance rate is 90 per cent. So, this will not impact any of the 90 per cent who are currently getting a visa. More impediments in the way of transportation are not good, but I am optimistic its impact would be modest,” he said.

India on the brink of its own financial crisis

Source: The Guardian

In a reprise of the 1997-98 Asian crisis, India’s stock market is plunging, bond yields are nudging 10% and capital is flooding out of the country.

India’s financial woes are rapidly approaching the critical stage. The rupee has depreciated by 44% in the past two years and hit a record low against the US dollar on Monday. The stock market is plunging, bond yields are nudging 10% and capital is flooding out of the country.

In a sense, this is a classic case of deja vu, a revisiting of the Asian crisis of 1997-98 that acted as an unheeded warning sign of what was in store for the global economy a decade later. An emerging economy exhibiting strong growth attracts the attention of foreign investors. Inward investment comes in together with hot money flows that circumvent capital controls. Capital inflows push up the exchange rate, making imports cheaper and exports dearer. The trade deficit balloons, growth slows, deep-seated structural flaws become more prominent and the hot money leaves.

The trigger for the run on the rupee has been the news from Washington that the Federal Reserve is considering scaling back – “tapering” – its bond-buying stimulus programme from next month. This has consequences for all emerging market economies: firstly, there is the fear that a reduced stimulus will mean weaker growth in the US, with a knock-on impact on exports from the developing world. Secondly, high-yielding currencies such as the rupee have benefited from a search for yield on the part of global investors. If policy is going to be tightened in the US, then the dollar becomes more attractive and the rupee less so.

But while the Indonesian rupee and the South African rand are also feeling the heat, it is India – with its large trade and budget deficits – that looks like the accident most likely to happen. On past form, emerging market crises go through three stages: in stage one, policymakers do nothing in the hope that the problem goes away. In stage two, they cobble together some panic measures, normally involving half-baked capital controls and selling of dollars in an attempt to underpin their currencies. In stage three, they either come up with a workable plan themselves or call in the IMF. India is on the cusp of stage three.

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.