Vacation in India, once in a couple of years, unravels a new chapter of new changes and observations! Unlike earlier, I had kept my schedule relatively open to enjoy the trip and preserve the moments with some writing. Despite best efforts, the work always carries over to the first few days in India. It blends well with the jet lag when one is up at 130am Indian Standard Time. Checking and responding to emails gives you a superhuman and super-productive feeling. This fades away slowly but surely. For a change, the body adjusted to the Indian clock fast this time(aging has its advantages:-)).
Though I spent considerable time in India and my state of Odisha before settling in the USA, the societal change is mind-boggling. The pace of change makes me take notice and do a deep analysis. I am up to date on the news stories in India. However, the observation on the ground and discussion with many friends, family members, vendors on the street, and workers provide a perspective that can never be gathered from the news outlets. I decided to capture some of these to share and continue the dialog as a blog.
So, let’s start the journey with these critical observations. I am sure some of these topics have all the ingredients to cook a full-blown debate curry!
Smart Cities – A Colossal Dream
The government aims to select 100 smart cities based on a multi-stage competition. Unlike other government policy decisions, this needs resident participation and limited bureaucratic involvement (http://smartcities.gov.in/content/innerpage/process-of-selection.php).
The government is ready to make massive investments in the city's infrastructure. The current approved funding is approximately USD 15Bn! The critical investments will be in Transportation, Water, Solid Waste Management, Safety and security, Energy, and Housing. There is a focus on administrative efficiency with advanced communication & collaboration between citizens and government, e-governance, and Dashboards for analytics & visualization. Smart cities must use modern digital, IoT, and cloud technologies and infrastructure innovations, e.g., renewable energy and intelligent energy management.
I see this excitement with my friends in construction, architecture, and IT. This will prove to be a local growth engine for a sustainable future.
My Assessment:
Modi-nomics 1 – Demonetization is working / India is moving towards Digital Currency
The tea stall in Bhubaneswar accepted the payment through Paytm, as some auto-rickshaw drivers. There is a grassroots-level transformation happening in India. It’s enormous, will take some time, and will have a gigantic economic impact. People do not adopt such a significant change spontaneously – It needs a considerable nudge (a kick in the back!), and demonetization provides that. Irrespective of how much black money it unearthed, the digital currency is at the forefront. Credit and debit cards have been in India for some time now, but making them mainstream was proving to be very difficult as street vendors, auto drivers, and corner stores have never embraced the same. Once the transactions are on the wire, it’s game on against corruption. The Income Tax department will have knowledge about every transaction, and tax avoidance becomes a risky business.
The outcome of Demonetization's primary objective has no quantifiable data to prove either way. However, the real estate market is down (a lot of black money goes there), income tax collection has increased this year, and BJP won in Uttar Pradesh (this may be the primary objective!)
My Assessment:
Modi-nomics 2 – GST is a real game changer
GST (Goods and Services Tax) has many detractors on the ground. Every business person I met is unhappy about this implementation. However, I believe it’s a step in the right direction.
There are two visible changes – First, Long lines of trucks at Octroi gates near the border of each state are gone. This was a bribe collection point before GST. Second, every business is now accountable and comes under the ambit of the tax net. This, in addition to the card transactions, will bring a lot of new taxpayers into the system.
When the small business community (which rarely pays its fair share of tax) shouts against GST, you know it’s doing the thing it intended to do!
My Assessment:
Inner-City Traffic – Can we live in big cities?
It’s simply an unacceptable situation now. It takes 2 hours to reach anywhere in Mumbai, Bangalore, or any big city in India.
The primary reason for a tough work-life balance can be attributed to the dismal traffic conditions. People start the office at odd hours. At 10 pm in the night, people driving city buses to go back home. It’s so disturbing when you think about the emergency situations. The traffic in India ensures that the Ambulance or Fire Brigade also sits in the traffic with sirens on! Tier 2 and Smaller cities are much better in that sense but lack the opportunities that big cities provide.
Building flyovers may be one of many solutions for the city traffic problems. I think it’s time to go underground(Hyperloop) or air (Uber-Air taxi / Kitty Hawk).
My Assessment: Very Disturbing
Wage mismatch – Real India is still struggling.
You do not have to work hard to find the examples – you observe the vast disparity in your typical day’s life. The porter in the airport is paid a paltry monthly salary of INR 5000(~ USD 75). However, the buffet meal per person in a 5-star restaurant is approximately INR 3500.
The gap between the two Indias is growing every day. The inflation has raised the prices of ordinary household items and services significantly compared to the past. However, the new lifestyle items are slowly inaccessible to ordinary salaried men. I see a trend of every foreign product priced exactly as in the USA or Europe (Converted to INR). The purchasing power in the middle class can afford those items, but it is a clear bubble. The black money and higher wages are the primary factors creating this artificial scenario. This is not a sustainable scenario.
The gap closes naturally, or else it may trigger class warfare. The latter is unlikely, but the daily petty crimes around the cities may spiral out of control.
My Assessment: Disturbing
Ride Share is here – Ola and UBER are the real deal
Ola is winning!
The homegrown rideshare has picked up a significant share of the market. Per the reports, both have grown >400% in recent times. I draw a couple of key observations from my recent visit,
- People are highly comfortable with ride-sharing. It has picked up across the generations. With the smartphone in every hand, it has a bright future.
- The traditional cabs will be dead soon.
- The market has grown as many new people use ride-share services. They were unlikely to take cab services earlier.
- The traffic is big cities is pushing people towards rideshare instead of driving and sitting in the traffic for long hours. In one calculation by my friend, he has abandoned the plan to buy a car in Bangalore as Ola comes out cheaper and more convenient than owning a car, doing maintenance, paying insurance & gas, and, above all, driving in Bangalore!
- Ola is advanced in providing frequent rider advantages, technology, etc.
- Most of the taxi cabs are in either the Ola or Uber network, and most of the time, you get seasoned taxi drivers instead of a regular fellow driving his/her own car to add some extra money to the pocket.
- Last but not least, Indian innovation to bypass the system and make some more money is established. Once the trip starts, the driver will offer you a less-priced drive for the same destination with a cash payment. He avoids the charges to Ola and Uber by doing that(20-25% in his own pocket right away). He needs your help to cancel the trip as soon as it starts to make it happen. At your service, Sir:-)
My Assessment: Exciting
Tourism potential is enormous and just kicking off.
India's colossal tourism potential needs to be more utilized. Every state in the country has so much to offer!
- Beaches and more – With almost 50% of the border along the coastline, India can thrive with proper planning and marketing. Indian beaches are generally magnificent and of high quality.
- Mountains, National Parks with wild animals, Deserts, and Rivers make India an exotic combination.
- Every state has many Historic Places; the Taj Mahal need not be the only earmarked travel destination for foreign tourists.
Law and Order play a critical role before tourism really kicks off. India's government should add this to the Make in India campaign as the next significant source of employment generation and FDI inflow.
My Assessment: Lot of room to grow
The aging population – A generation that has seen it all
The departure from India is always summed up with the wet eyes of near and dear ones. The earlier generation is growing old and has done tremendously well to catch up with the fast-paced change during their lifetime. Sometimes, I feel their tiredness and wish to take a pause. Their blessing and openness in accepting reality move us ahead and help us follow our dreams. Spending quality time with them is a small favor – Do not push it to tomorrow!
Until next time – back from the Janma-Bhoomi (Mother-land) to the Karma-Bhoomi (Work – Land)
References:
http://smartcities.gov.in/content/
