Expectations from Budget 2025: A Roadmap for Inclusive and Sustainable Growth

 

The Union Budget for 2025 is poised to be one of the most critical financial blueprints for India, particularly as the country navigates a global economic landscape riddled with uncertainties while maintaining its position as one of the fastest-growing economies in the world. As the Indian government prepares to unveil its vision for the next fiscal year, there are several key areas where Budget 2025 must focus, including tax reforms, capital expenditure deployment, gender inclusivity, and measures to boost startups and youth empowerment.

This article provides a comprehensive analysis of what to expect from Budget 2025, delving into India’s economic resilience, the need for reforms, and strategies for creating an inclusive, innovation-driven economy.

1. India’s Economic Resilience: A Solid Foundation

Recovery Post-Pandemic

India’s economic recovery post-pandemic has been nothing short of remarkable. Despite challenges such as global inflation, supply chain disruptions, and geopolitical tensions, the Indian economy has showcased resilience and adaptability. Real GDP growth has remained robust, with estimates placing it at around 6.5% for FY 2024-25, a stark contrast to the negative growth experienced during the COVID-19 pandemic.

The resilience is attributed to:

1.  Strong Domestic Demand: Post-pandemic consumption has surged, driven by rising urban and rural incomes.

2.  Government Interventions: Programs like the Atmanirbhar Bharat Abhiyan provided fiscal stimulus to sectors such as MSMEs, manufacturing, and infrastructure.

3. Global Supply Chain Realignment: India emerged as a viable alternative for global manufacturers, attracting investments in electronics, pharmaceuticals, and renewable energy.

Key Economic Indicators

• Inflation Management: Inflation has been moderated to 4.7% as of December 2024, aided by efficient monetary policies by the Reserve Bank of India (RBI).

• FDI and Exports: FDI inflows have continued to grow, with $84 billion in FY 2023-24, while exports of services, particularly in IT and digital solutions, remain strong.

• Fiscal Consolidation: The fiscal deficit, targeted to be 4.5% of GDP by FY 2025-26, reflects prudent fiscal management, even amidst large-scale public spending.

2. Income Tax Reforms: Relief for Individuals

 Historical Context

Income tax reforms have historically played a significant role in boosting consumer spending, a critical driver of India’s GDP. However, the middle class, which forms the backbone of India’s economy, has often felt constrained by high taxation rates and limited disposable income.

Budget 2025 provides an opportunity to address this issue. While previous budgets, including the one in 2020, introduced a simplified new tax regime, its adoption has been lukewarm due to the elimination of popular exemptions.

What to Expect in Budget 2025

1. Increase in Basic Exemption Limits:

The current exemption is recommended to be increased to ₹10 lakh, providing relief to lower-income groups and ensuring more disposable income for the middle class.

2. Lowering Rates for the Middle Class:

Tax rates for the ₹10 lakh - ₹20 lakh brackets could be reduced further to spur consumption, which has a direct multiplier effect on the economy.

3. Enhanced Standard Deduction:

The standard deduction for salaried individuals and pensioners could be increased to ₹1.5 lakhs to offset inflationary pressures.

4. Support for Senior Citizens:

Senior citizens could see an increase in the exemption threshold to ₹10 lakh, recognizing their unique financial needs. We also have to take into consideration changing social fabric of elderly citizens - being left alone by their children

5. Incentives for Savings:

Reintroducing tax exemptions for savings instruments like PPF, ELSS, and insurance premiums under the new tax regime could encourage a culture of savings while stimulating long-term investments.

3. Capital Expenditure: Building India’s Future

 Historical Perspective

The government’s focus on capital expenditure (capex) has been a cornerstone of its growth strategy. The ₹10 lakh crore allocation for FY 2024-25 marked a significant 33% increase over the previous year, reflecting an unprecedented commitment to infrastructure development.

Capex spending has a multiplier effect, generating jobs, boosting industrial activity, and enhancing India’s global competitiveness.

Key Areas for FY 2025-26

1. Infrastructure Development:

• Completion of PM Gati Shakti projects, including expressways, freight corridors, and ports.

•  Focus on Tier-2 and Tier-3 cities to promote balanced urbanization.

•  Expansion of metro networks in cities like Indore, Jaipur, and Lucknow.

2. Renewable Energy Transition:

•  Greater investment in solar and wind energy, with specific targets for green hydrogen production.

•  Incentives for electric vehicle (EV) infrastructure, including charging stations and battery production.

3. Rural Development:

•  Enhanced allocation for rural infrastructure under the Pradhan Mantri Gram Sadak Yojana.

•  Investments in water supply schemes and irrigation systems to support agricultural growth.

4. Healthcare and Education:

•  Increased funding for Ayushman Bharat Digital Health Mission to expand healthcare access.

•  Setting up smart classrooms and digital libraries under PM e-Vidya to revolutionize education.

5. Private Sector Participation:

• Public-private partnerships (PPPs) for infrastructure projects could be incentivized to attract private investment and expertise.

4. Gender-Neutral Budgeting: A Step Toward Equality

 Why Gender-Neutral Policies Are Crucial

Despite significant progress, gender inequality persists in India, particularly in workforce participation and access to opportunities. Historically, budgetary allocations have focused on women-specific programs. While these efforts are commendable, a gender-neutral approach ensures inclusivity for all genders, including men, women, and LGBTQ+ communities.

 Proposed Measures

1. Workforce Inclusion:

•  Tax incentives for companies promoting gender neutrality in leadership roles.

•  Enhanced funding for vocational training in traditionally male-dominated sectors like construction and manufacturing and avoiding female centric decision-making

2.  Financial Independence:

•   Expansion of credit facilities like Mudra Yojana to include a gender-neutral framework.

•   Subsidized loans for start-ups led by women entrepreneurs.

3. Access to Healthcare:

•  Increased allocation for reproductive health and mental health programs across genders.

•  Expansion of gender-neutral insurance policies.

4. Education for All:

• Scholarships and STEM initiatives should target young women and other underrepresented groups.

• Promoting awareness campaigns to address gender stereotypes in rural areas.

 5. Fostering Start-ups and Youth Empowerment

 India’s Startup Ecosystem

India has emerged as a global Startup hub, with over 108 unicorns as of 2024. However, start-ups face challenges like regulatory hurdles, limited funding access, and skill gaps in the workforce.

 Budget Expectations

1. Regulatory Reforms:

•  Simplifying compliance norms for start-ups, particularly in GST and labour laws.

•  Introducing a single-window clearance system for easier business registrations.

2. Funding Support:

• Increasing the Fund of Funds for Start-ups (FFS) corpus to support seed and early-stage start-ups.

• Extending tax exemptions on ESOPs to attract and retain talent.

3. Skill Development:

• Scaling up initiatives under PM Kaushal Vikas Yojana, with a focus on AI, blockchain, and green technologies.

•  Introducing mentorship programs for young entrepreneurs.

4. Youth Entrepreneurship:

• Offering micro-loans for young entrepreneurs through government-backed credit schemes.

• Incentivizing rural entrepreneurship with targeted funding for agritech and renewable energy ventures.

Conclusion: Need for a Balanced and Visionary Budget

Budget 2025 is not merely a financial statement; it is an opportunity to define India’s future. By focusing on income tax relief, strategic capital expenditure, gender-neutral policies, and youth empowerment, the government can lay the foundation for sustainable, inclusive growth.

India’s economic resilience, coupled with bold reforms, has created a unique window for transformational change. With a focus on equity, innovation, and fiscal prudence, Budget 2025 can serve as a blueprint for a $5 trillion economy, empowering every citizen to contribute to and benefit from the nation’s growth story.

Om Namah Shivaya & Panchmukhi Shiva: The Spiritual Essence

 

The phrase “Om Namah Shivaya” and the concept of Panchmukhi Shiva (the Five-Faced Shiva) hold profound significance in Hindu philosophy and spiritual practice. These aspects represent the essence of Lord Shiva as the ultimate reality, the supreme consciousness, and the destroyer of ignorance. The Upanishads, along with the Shiva Purana, offer deep insights into these divine elements, revealing their relevance to self-realization and cosmic harmony.

“Om Namah Shivaya,” also known as the Shiva Panchakshari Mantra, is considered a potent invocation that symbolizes surrender to Lord Shiva. It encapsulates the ultimate truth, pointing to the oneness of the individual self (jivatma) with the universal self (paramatma). Similarly, Panchmukhi Shiva represents the five cosmic functions of creation, preservation, destruction, concealment, and grace, which encompass the entirety of existence.

The Significance of “Om Namah Shivaya”

 The Essence of the Mantra

The mantra “Om Namah Shivaya” is a sacred formula from the Yajurveda and is deeply revered in the Shiva Purana and various Upanishads. Its literal meaning is:

                •              Om: The primordial sound, representing the absolute reality or Brahman.

                •              Namah: Salutation, surrender, or bowing down.

                •              Shivaya: To Shiva, the auspicious one, the transcendent and immanent reality.

In the Shvetashvatara Upanishad (4.14), Shiva is described as the “one who resides in the hearts of all beings” and as the “cause of liberation.” This mantra, therefore, becomes a tool for aligning oneself with Shiva’s divine essence and realizing one’s innate divinity.

Symbolism of the Five Syllables (Panchakshari)

The mantra is also known as the Panchakshari (five-syllable mantra): Na, Ma, Shi, Va, Ya. These syllables are said to correspond to the five elements (Pancha Mahabhutas):

                1.            Na - Earth (Prithvi)

                2.            Ma - Water (Jal)

                3.            Shi - Fire (Agni)

                4.            Va - Air (Vayu)

                5.            Ya - Ether (Akasha)

Chanting this mantra purifies the body, mind, and soul, harmonizing the individual with the cosmic order.

Spiritual Practice and Benefits

The Shiva Purana highlights that reciting “Om Namah Shivaya” can lead to liberation (moksha). It helps practitioners dissolve their ego, transcend worldly attachments, and unite with Shiva’s infinite consciousness. Meditating on this mantra brings inner peace, strength, and clarity, making it a cornerstone of many yogic and tantric practices.

Panchmukhi Shiva: The Five Faces of the Lord

Depiction in Scriptures

Panchmukhi Shiva, or the Five-Faced Shiva, represents Shiva in his multidimensional aspect. According to the Shiva Purana and various Puranic texts, the five faces signify the five aspects of his cosmic functions:

                1.            Sadyojata (West): Creation (Srishti)

                2.            Vamadeva (North): Preservation (Sthiti)

                3.            Aghora (South): Destruction (Samhara)

                4.            Tatpurusha (East): Concealment (Tirobhava)

                5.            Ishana (Zenith): Grace (Anugraha)

These faces also correspond to the five elements and the five senses, symbolizing Shiva as the all-encompassing cosmic principle.

Philosophical Interpretation

1. Sadyojata represents the creative energy of Shiva, akin to Brahma. This face signifies material manifestation and the birth of all beings. It reminds devotees of the transient nature of the material world.

2. Vamadeva, associated with Vishnu, signifies preservation and the nurturing aspect of Shiva. This face teaches the importance of sustaining dharma (righteousness) and compassion.

3. Aghora, the most fearsome aspect, represents destruction and transformation. It is through destruction that Shiva paves the way for renewal, teaching the cyclical nature of life and death.

4. Tatpurusha, representing concealment, highlights Shiva’s ability to veil his true nature. This face is a reminder that the divine resides within all, hidden beneath layers of ignorance and illusion (maya).

5. Ishana, the most exalted aspect, represents Shiva’s transcendental grace. It symbolizes liberation and the ultimate truth, as described in the Kaivalya Upanishad: “Shiva is beyond duality, the eternal consciousness that liberates.”

Symbolism in Meditation

In yogic and tantric traditions, Panchmukhi Shiva is often meditated upon to awaken spiritual energy (kundalini) and balance the five elements within the body. The five faces are also associated with the five chakras from the root (Muladhara) to the throat (Vishuddha), facilitating spiritual evolution.

Connection Between “Om Namah Shivaya” and Panchmukhi Shiva

The mantra “Om Namah Shivaya” and the concept of Panchmukhi Shiva are deeply interlinked in their spiritual and metaphysical significance. Together, they encapsulate Shiva’s role as the ultimate reality and the inner consciousness of all beings.

Integration of the Five Elements

The Panchakshari mantra aligns with the five faces of Shiva, symbolizing the integration of the five elements and their functions. By chanting “Om Namah Shivaya,” devotees invoke the presence of all five aspects of Panchmukhi Shiva, harmonizing the microcosm (individual) with the macrocosm (universe)

Path to Liberation

The Upanishads describe the importance of transcending the physical realm to realize the self’s unity with Brahman. By meditating on the mantra and visualizing Panchmukhi Shiva, practitioners can dissolve their ego and achieve self-realization. The Shiva Purana states that understanding the five faces of Shiva leads to a comprehensive understanding of the universe’s functioning, enabling liberation

Shiva as the Supreme Reality in Upanishads

The Upanishads frequently describe Shiva as the ultimate reality, transcending all dualities:

• The Kaivalya Upanishad (7-8) states: “He is the one without a second, the all-pervading, the formless, and the auspicious.”

• The Shvetashvatara Upanishad (6.2) identifies Shiva as the cause of creation, preservation, and destruction, aligning with the concept of Panchmukhi Shiva.

In these texts, Shiva is often equated with the Atma (Self), emphasizing that the individual self and the universal consciousness are one and the same. The mantra “Om Namah Shivaya” serves as a bridge to this realization.

Conclusion

“Om Namah Shivaya” and Panchmukhi Shiva represent the core tenets of Shaivism and Hindu spirituality. While the mantra encapsulates the essence of surrender and divine connection, the five faces of Shiva illustrate the multifaceted nature of existence and the cosmic functions. Together, they inspire devotees to transcend the limitations of the material world and realize their divine potential.

Rooted in the teachings of the Upanishads and the Shiva Purana, these aspects of Shiva remind us of the eternal truth: that Shiva is not merely a deity but the ultimate reality—timeless, formless, and infinite. By meditating on “Om Namah Shivaya” and contemplating Panchmukhi Shiva, one embarks on a transformative journey toward self-realization and liberation.

MahaKumbh 2025: A Rare Confluence of Faith, Heritage, and Celestial Wonder - a Guiding Light of Sanatana Dharma

The MahaKumbh Mela is often celebrated as the epitome of spiritual devotion and faith in Sanatana Dharma, but its significance extends far beyond the sacred rituals and holy dips. Historically, this grand congregation was not only a deeply spiritual event but also a forum for thought leaders, saints, philosophers, and societal influencers to discuss, deliberate, and shape the trajectory of human civilization. The 2025 MahaKumbh Mela, enhanced by its once-in-144-years celestial rarity, stands as a beacon of this ancient tradition, offering lessons and insights that are as relevant today as they were thousands of years ago.

As we step into 2025, the world prepares for an unparalleled spiritual phenomenon: the Maha Kumbh Mela, set to take place in Prayagraj, Uttar Pradesh. While this iconic event is celebrated every 12 years, the 2025 MahaKumbh Mela is uniquely extraordinary, occurring once every 144 years due to a rare celestial alignment. This makes it not only the largest religious gathering on Earth but also a moment of profound cosmic significance that resonates across spiritual, cultural, and historical realms.

 A Celestial Rarity: Why the 2025 Kumbh Is Special

 At the heart of the 2025 MahaKumbh Mela lies an extraordinary alignment of planets. Hindu astrology reveals that the simultaneous positioning of Jupiter, the Sun, and the Moon in Capricorn during the sacred Hindu month of Magh creates a unique spiritual environment. This celestial alignment amplifies the sanctity of the event, transforming the act of taking a holy dip at the confluence of the Ganga, Yamuna, and Saraswati rivers—the Sangam—into an act of unparalleled spiritual merit.

 This rare occurrence is deeply tied to ancient Hindu scriptures and the mythological tale of Samudra Manthan (the churning of the ocean). According to legend, a divine pot (Kumbh) containing the nectar of immortality emerged during the churning. As gods and demons fought over the nectar, drops spilled onto four sacred locations—Haridwar, Prayagraj, Nashik, and Ujjain—bestowing them with eternal sanctity. The 2025 MahaKumbh marks a moment when the celestial energies mirror this ancient cosmic event, offering devotees an opportunity to cleanse their souls and attain moksha (liberation).

 The World’s Largest Spiritual Gathering

 The scale of the MahaKumbh Mela is staggering. With over 400 million pilgrims expected to attend, it is not only a religious gathering but also a testament to human unity and resilience. People from every corner of the globe, across faiths and nationalities, come together to witness this unparalleled convergence of tradition, spirituality, and devotion.

 The experience goes far beyond the act of bathing in the holy rivers. Pilgrims participate in spiritual discourses by revered saints, attend vibrant cultural performances, and witness grand processions led by Naga Sadhus (ascetic warriors). The event embodies India’s timeless ethos of “Vasudhaiva Kutumbakam”—the world is one family.

 A Marvel of Organization and Planning

 Hosting an event of this magnitude requires meticulous planning and unparalleled coordination. The Uttar Pradesh government has undertaken monumental efforts to transform Prayagraj into a well-equipped spiritual hub.

  •   Infrastructure: Expansive tent cities, improved transportation networks, and sanitation facilities have been developed to accommodate the massive influx of pilgrims.

  •    Safety Measures: Advanced crowd management systems, emergency medical services, and robust security protocols ensure a safe and smooth experience for all attendees.

 •  Technology Integration: Digital platforms are being used for registrations, real-time crowd monitoring, and dissemination of information, reflecting India’s blend of tradition and technological innovation.

 The Historical Role of Kumbh in Sanatana Dharma

Sanatana Dharma, often referred to as the eternal way, emphasizes the cyclical nature of existence, aligning humanity with the rhythms of the cosmos. Within this framework, the Kumbh Mela emerged as an epochal event, a moment where divine order (rita) and human affairs converged.

Historically, the Kumbh Mela served as a platform for intellectual and philosophical discourse, where sages, rishis, and acharyas gathered to deliberate on pressing matters of dharma (righteousness) and societal well-being. These assemblies transcended mere ritual and delved into:

1. Worldly Affairs: Discussions revolved around the governance of kingdoms, the welfare of citizens, and strategies to address societal challenges.

2. Spiritual Guidance: Renowned spiritual leaders and thinkers presented new interpretations of Vedic knowledge, Upanishadic philosophy, and dharmic principles to guide humanity.

3. Education and Knowledge Exchange: The Kumbh was a melting pot of diverse schools of thought, fostering dialogue between Shaivites, Vaishnavites, Shaktas, and other traditions within Sanatana Dharma.

4. Scientific and Astronomical Insights: Ancient seers, who were also adept in astronomy, shared knowledge about celestial movements, agricultural cycles, and their implications on human life.

Through these discussions, the Kumbh Mela became a guiding compass for society, ensuring that the principles of dharma were upheld in governance, education, and daily life.

The MahaKumbh’s Role in Shaping the Future

The sheer scale and diversity of attendees at the MahaKumbh Mela created an unparalleled opportunity for cross-pollination of ideas. Philosophical debates, known as shastrartha, brought clarity to complex concepts, while spiritual leaders inspired movements that shaped societal evolution.

For instance, during medieval times, when the subcontinent faced external threats, the Kumbh Mela became a rallying point for unifying various kingdoms under a shared cultural and spiritual ethos. Such gatherings fortified the civilizational identity of Bharat, ensuring the continuity of Sanatana Dharma despite upheavals.

Why the MahaKumbh Is an Event of Unmatched Impact

The MahaKumbh Mela’s impact lies in its ability to address human existence on multiple levels—spiritual, intellectual, social, and even ecological.

1. A Platform for Unity: It bridges divides of caste, creed, language, and geography, reminding attendees of their shared identity as children of Sanatana Dharma. This spirit of unity and inclusivity remains a cornerstone of the event.

2. Catalyst for Change: Across millennia, ideas that germinated at the Kumbh have spurred reforms, both spiritual and societal. Leaders often returned from the Kumbh inspired to implement dharmic principles in their regions.

3. Preserver of Knowledge: In an oral tradition-dominated society, the Kumbh provided a recurring platform to pass on knowledge to future generations, ensuring the survival of Vedic wisdom and practices.

The 2025 MahaKumbh Mela: A Rare Opportunity

The 2025 MahaKumbh Mela holds a special cosmic significance, occurring under a celestial alignment that manifests once in 144 years. This rarity elevates its importance, offering humanity an opportunity to reconnect with the timeless wisdom of Sanatana Dharma.

In today’s world, marked by rapid technological advancements and growing spiritual disconnection, the MahaKumbh stands as a reminder of our deeper purpose. The gathering will host millions of devotees, saints, and scholars, providing a platform to discuss modern challenges—climate change, societal polarization, and mental health—through the lens of dharmic principles.

The Kumbh’s Lessons for the Modern World

The Kumbh Mela teaches us that spirituality and worldly affairs are not separate but interwoven. It emphasizes:

• Sustainability: Drawing from the Vedic concept of balance between humans and nature, it highlights the need for sustainable living.

• Unity Amid Diversity: In an increasingly fragmented world, the Kumbh’s inclusivity offers a blueprint for harmony. Beyond its spiritual essence, the MahaKumbh Mela showcases the rich cultural diversity of India. Traditional art forms, regional cuisines, and local crafts create an immersive experience that celebrates the nation’s heritage. Moreover, the event significantly boosts the regional economy, generating employment opportunities and promoting tourism.

 • Timeless Leadership: The event reminds us of the importance of leaders who embody dharma, selflessness, and wisdom.

A Legacy for Future Generations

The MahaKumbh Mela is not just a spiritual event; it is a civilizational legacy. Its recurring presence over millennia underscores the resilience of Sanatana Dharma, its capacity to adapt while preserving its core values. The 2025 MahaKumbh, with its rare celestial alignment, calls upon humanity to pause, reflect, and recalibrate—to realign our individual and collective lives with the eternal principles of dharma.

As we approach this monumental occasion, the world looks to Prayagraj as the epicentre of spirituality, culture, and faith. The 2025 MahaKumbh Mela is not just a celebration; it is a living testament to the power of tradition, the endurance of faith, and the magic of cosmic alignment.

For those seeking a deeper connection to themselves, their heritage, or the universe, the 2025 MahaKumbh Mela is a once-in-a-lifetime experience. Let us come together to honour this rare and sacred moment, carrying its profound messages of peace, unity, and spiritual enlightenment into the future.

As millions gather at Prayagraj, the Sangam becomes more than a physical confluence of rivers—it transforms into a convergence of human aspiration, divine energy, and cosmic purpose. Let us honour this rare moment by immersing ourselves in its profound teachings, carrying forward its message of peace, unity, and spiritual enlightenment for the betterment of the world.

Let us immerse ourselves!

Budget 2021: Key Lessons & My Expectations

I wish to begin by stating that I speak as an entrepreneur, when I write this piece and is my personal opinion. Before I list my expectations from Union Budget 2021 and what MSMEs need, let me share few Key Lessons from my entrepreneurial journey.

Lesson 0: Financial Planning is key, both to lend money or to deploy where it is necessary for our business. Most entrepreneurs focus on the idea or execution but ignore financial planning. Entrepreneurs tend to attract a lot of stress, if we deploy money, on things which are not really necessary in the immediate future, in anticipation for better tomorrow. Most entrepreneurs make this mistake, it is important to plan for tomorrow, but not deploy money in anticipation for better tomorrow - but deploy money as per present needs.

Lesson 1: Entrepreneurship is about taking risks, and it is not about concept selling. I-live-for-impact generation of today, sees entrepreneurship as an alternative for seeking employment, and few amongst them, consider entrepreneurship as a fall-back option. The So-What of this enterprising belief system is we see many taking the plunge of entrepreneurship, with an idea, and a faint execution plan - only useful to attract attention, and possibly raise a round of money from investors, but lack follow-through. Such efforts fizzle out in the longer run.

Lesson 2: It is a rough terrain, and path less taken - and when you embark on it, you must have perseverance to stick with it for at least 5 years - you will either learn to manage the tight-rope walk, or get used to it.

Lesson 3: When you perform, you will find many suitors, deploying cash and when the tide turns against you, you will be deserted - an able entrepreneur, must plan for such a day. Especially Post-COVID, it is an important trait for an entrepreneur.

Lesson 4: Return on Money deployed must be greater than money borrowed, in notional present value terms. This mantra must form the basis of financial planning, when we borrow or deploy money.

I wish to list three expectations from Union Budget 2021:

Expectation 1: Think about Entrepreneurs - I would like to see our Hon'ble Finance Minister focus on entrepreneurs. When Entrepreneurs perform, jobs are protected and more jobs are created, our tax figures improve and FDI improves, because investors want performers. It has been always investment driven thus far, lets make it entrepreneur driven and see how it pans out. Lets show belief in our citizenry and entrepreneurs amongst us.

Expectation 2: Any scheme or support for MSMEs that the Government wants to work with, lets keep Banks out. The relationship between Banks and MSMEs is always a cause of concern given that the symbiotic relationship is broken, it is important Government uses alternative mechanisms to enable support for MSMEs, rather than Banks.

Expectation 3: One possibility that I wish Government will explore, is waiving the TDS on payments to MSMEs - this is will aid the cash flow. MSMEs may be given this waiver, with a rider, on-time payment of advance tax. This move will ease the cash-flow pressure on MSMEs, and protect jobs, if not, fuel job creation.

Rethinking India’s SAARC Outreach – A Legacy of Fractured Engagement

SAARC + ASEAN is emerging as an important strategic region in the world, and India should not only engage meaningfully with the region but also protect her interests. I wish to restrict my perspective in this article to SAARC, and wish to outline my views about rethinking India’s SAARC Outreach. With Pakistan’s bitter struggle at various global platforms marked by calumny, to paint India negatively - SAARC was an institution which never made any progress beyond the usual.

However, considering two of the major countries in the Group have nuclear capabilities, and almost all countries in the Group suffered from extremism and terrorism, prevalence of poverty, governance issues, underdevelopment and deep seated socio-political divisions and occasional territorial disputes in countries and between countries in the region – SAARC is successful in loosely holding the region together through such turbulences, without having major spill-overs. More so than in the past, SAARC region – given its geo-political and geo strategic location with absolutely essential maritime trade lanes in the Indian Ocean and Arabian Sea – is a region which India cannot ignore.

Though India has had a dominant role in the Grouping, no serious attempts were made, to address the trust deficit among the countries in the Group. Other such efforts such as EU, which took shape during the same time as SAARC inception - graduated from the Coal Community to Customs Union to Common Market, EC, Single Currency, Schengen visa regime and finally the EU.  With protectionist measures – such as by the present US Administration or the Brexit – there are strong headwinds   indicating a possibility for how SAARC might end up. This is not in India’s interest given the geo-political ramifications, with a cash-rich China in the neighbourhood, willing to dole out countries for better access to their domestic markets. 

India, given its size, population, economy and central location is indeed the pivot of SAARC. With Prime Minister Sri. Narendra Modi, inviting SAARC Leaders for his government’s inauguration in May 2014 – greater impetus was given to – neglected till then – participatory diplomacy in regional cooperation under SAARC. Though over the course of last four years, India has taken several initiatives to improve trade relations with all member countries – there are differences in perception of citizenry of member countries, which remain largely unaddressed thus far.

When we examine India’s relations with the region across three important spheres – economic, political and national security – there is enough reason to highlight the hesitant and a bit apathetic approach of the Indian Government towards better outlook/ties in the political sphere, which is adversely impacting our national security compass. It can be argued that India should adopt a synergistic approach which will intertwine all the three spheres into one – and such measures would have an inevitable effect of simultaneously enhancing regional cooperation with member countries as well as address national security concerns.

Recent overtures by China with at least 5 out of 7 member countries in SAARC region – have had a cascading effect on India – SAARC relations. Furthermore, India has not sought to project itself effectively in the recent times, and has adopted a less than proactive approach towards fostering regional ties and economic engagement. There is growing discomfort in the political circles of member countries to assess India’s enthusiasm for their concerns – and it may have implications on the future of India ties with member countries and also the relevance of SAARC as a group.

An independent India in 1947, emerging out of abject poverty due to odious British Rule, pursued a Non-Aligned Path as one of the key features/objectives of her Foreign Policy. This approach helped us achieve scale, and not succumb to political pressures of bi-polar world. Today, India is a newly industrialized country, an emerging power now – and it warrants a rethink on our passive diplomatic approaches thus far. We as a Nation, should actively engage – in all the three spheres – economic, political and national security, to positively contribute towards economic growth of our neighbours, engage with political leadership of member countries and protect our national security interests in the region and beyond.

-          

        - Abhijith Jayanthi 

           June 24, 2018    

           Hyderabad

Iran – A Rising Opportunity

Ever heard of a country with too many highly educated people? More than two-thirds of the 80 million population are under the age of 35, with literacy rate stands above 93% and 0.1% of the population living below the poverty line of 1.9$ per day. Rightfully so, when the country was cut-off from the World – it made the right choice, to invest in education: 20% of government spending and 5% of GDP goes to education. It bears a striking similarity to Lee Kuan Yew Master Plan of investing in education, one of his conscious decisions that engineered Singapore’s economic miracle.

With 10 percent of the world's proven oil reserves and 15 percent of its gas reserves, Iran remains a dormant energy superpower, largely due to isolation from global markets. With the lifting of trade sanctions in January 2016, few financial institutions are extending lines of credit, and FDI inflow has been timid, but not great as expected.

Since the mid-1990s, Iran has increased its economic cooperation with other developing countries in "south-south integration" including Syria, India, China, South Africa, Cuba and Venezuela. Iran's trade with India passed $13 billion in 2007, an 80% increase within a year – but there is a significant trade imbalance, with India accounting for 9.9% of Iranian exports but with little to negligible imports into Iran. China on the other hand, maintains a healthy trade balance, with significant imports and exports between the two countries. 

With aviation and transportation sectors badly needing rejig and many other sectors remaining outdated in terms of technology or capabilities – Iran presents a rising opportunity. China has been quick to realize the potential, and has connected Iran by Train link last year – starting in China’s eastern province of Zhejiang, the train link passes through Kazakhstan and Turkmenistan, into Iran. This will see the exchange of goods and services potentially reaching the threshold of 600$ Billion. 

India, is not far behind – helping Iran develop the strategic port of Chabahar. The location plays a vital role and is of great significance, merely 72 KM away from Pakistan’s Chinese funded deep sea port at Gwadar, Chabahar port not only provides access to Central Asia (with a marine distance of 353 nautical miles to Dubai and 843 nautical miles to Mumbai) but also is the only Iranian port with direct access to the Indian Ocean. The highly congested Bandar Abbas port is not a deep water port and cannot handle the 250,000 ton ocean-going cargo ships. At present, such ships dock in the United Arab Emirates (UAE) and the cargo is transferred to smaller 100,000 ton ships for onward shipment to Iran. This makes Iran dependent on the UAE for shipments and represents a loss of revenue, not to mention making UAE the biggest trading partner of Iran by volumes. Unlike Bandar Abbas, Chabahar has the ability to handle standard cargo ships.

Indian Government and Indian businesses can do much more – the majority of discourse around Indo-Iran relations revolves around Chabahar, and does not indicate the true economic potential. Iran has encouraging business opportunities in energy, infrastructure, healthcare, retail, airports and aviation, mining and water sectors. A program similar to UK’s trade department – which offers financial cover to companies interested to do business in Iran, would help Indian businesses set up shop in Iran. In July, French oil giant Total committed $1 billion for developing the country’s largest oil field, and car manufacturer Peugeot is stepping up its local presence, and produce over 200,000 cars in Iran. India should encourage automotive industries to explore marketing tie-ups with local entities to expand their market footprint.

There are challenges too, corruption is still a major hurdle, with Transparency International ranking Iran at 131 out of 175. After Modi’s visit, it did not take Tehran long to dissociate from the idea of exclusive Indian engagement in Chabahar Port, and voice out invitations to Pakistan and China to participate. Iranians are thorough when it comes to negotiations and in striking the right balance – one of the main reasons, they are able to hold onto their own, despite adverse international relations. While the moderate Rouhani and his government, though powerful, seem eager to open up to the world, internal political challenges exist. Khamanei and the very powerful Islamic Revolutionary Guard Corps that he controls, also have large interests in the country’s economy. 

There are reasons India should look beyond Oil, Saffron or Carpets from Iran and see the true potential. At present, India is not fully cognizant of Iran’s strategic importance. From the last decades of the 19th century to the mid-20th century, India and Iran have a shared history, from Parsis long standing contributions to Indian Economy and Culture; to one of three Kendriya Vidyalaya Schools outside India, in Tehran, running since 1930s – there is enough cultural understanding and people-to-people contact since ages. It is time India should change from remaining marginally engaged based on needs to an evolved partnership with Iran – India needs to rethink about its approach with Iran

-  Abhijith Jayanthi 

Delhi Durbar: Hegemony of Suitable Truth & Convenient Praise

Greatness is not what reason promises – it is achieved by wandering into the unknown to discover; sometimes with no one left to clap by our side, only for others to realize value of the discovery much later – sometimes after discoverer sinks into the oblivion. 

During the summer of 1990, PV Rao, an under-celebrated veteran of Indian polity, was preparing to retire – when he had to step into the top job in the country. Consequences of terrible economic management by Rajiv Gandhi, meant Rao had the ugly job to tackle the balance of payments crisis. Gulf war and low credibility of Indian leadership then, gave little support to Mr. Rao. 

With amazing tact – PV Rao not only completed a full term but also ushered in a new era for Indian economy. Yet, pseudo liberal brigade of Indian polity chose to highlight Dr. M Singh, the then union finance minister for the turnaround. It is a sad but just indictment, of our pseudo liberal Indian polity for robbing the real victor and celebrating their convenient choice.

Today, we see a reverse thematic criticism: Prime Minister Modi alone, with limited to no role of others within the government or otherwise, is responsible to celebrate their nervous glee. Modi’s leadership meant hard but necessary choices – what India needs to do to be a thriving economy.

Delhi Durbar wants to sing the tune of suitable truth and convenient praise. Reforms will see costs borne upfront, with rewards coming in later. With more than necessary intervention of government through the decades of mis-rule, Indian economy remains inchoate. It is like an overgrown start-up – not willing to learn about its weaknesses. We as a nation, have too many grey haired (wo)men advising us. It is time, we stop listening to the noise, and act. To lessen the dependency of economy on government – in PM Modi’s own words: Government has no business to be in business; the fragility of our economy to government interventions should be arrested. Dependencies on external stimulus from the government or otherwise, is a clear sign of bad governance, where politics trumps economics. Government’s role should be regulatory, to facilitate necessary checks and balances – GST is one step in that direction. 

We as a nation survived centuries of loot and plunder with patience – which continued for decades well after gaining independence; it is but important we begin to see the bigger picture, and not let go our perseverance. Quoting Muhammad Ali, “It isn't the mountains ahead to climb that wear you out; it's the pebble in your shoe.” – Prime Minister Modi will have to consider, necessary interventions to address the short run spill-over effects on SMEs and creation of jobs due to GST implementation.

To quote from the famous Apple Ad: To ones who see things differently, while some may see them as the crazy ones, we see genius. Because, people who are crazy enough to think that they can change the world, are the ones who do – Prime Minister Modi, is the first politician in our history, to undertake reforms by choice, and not because of compulsion. It is time we let go our fancy to celebrate ancestry, and start celebrating the genius of passionate wo(men). They are invariably pushing us forward, and are changing our world for good. 

- Abhijith Jayanthi

Renascence: Concept of Credit Society

In the World of today, many a Credit Society pays lip service to innovation, but to truly unlock the power of being a Credit Society, there is a greater need to influence the status quo, of yesterday – be a disruptive first. I believe this notion should be deeply embedded in our operations, and our strategies to grow.

Rethinking the concept of Credit Society, should go beyond imagining what a Credit Society should be and how it should work. Our method should not be to impose change or dream up new gimmicks.  Rather, it is to get ourselves to rethink what we are expected to do, by applying processes more akin to starting up, every single day. It is not just about new products, but rethinking how old products work and redesigning them with members’ aspirations-to-be-met approach.

The impetus for innovation does not come from a desire to jump start, what other Credit Societies are pursuing, but rather springs from a fear that what we know today, as traditional functions of a Credit Society, could be disrupted as fundamentally as other industries – and we ought to be the disrupter. It is not about inventing the latest product offering – although there is a role for that. It is about relevance and application; agility and losing the fear of failure; and, ultimately, changing our culture.

I see Credit Societies having an extended value rather than just being providers of basic credit facilities or running a traditional product. We need to broaden our reach, from leveraging our strengths: It is a drastically different way of viewing the world from a traditional mentality that demands everything be done in-house. When we earn a rupee, we have to drive co-operative growth, of our partners and our members. Thus, we become an ecosystem and a platform, to create and innovate, where we have lots of people from both within and outside our system, trying to make our Credit Society successful.

Together, we innovate and thrive, thus influence productive disruption.

- Abhijith Jayanthi CEO @ ABC-CS

What are the real drivers of Micro-Credit? Why Micro-Credit is here to stay?

The focus of micro-credit for the bottom of the pyramid segment in rural areas is increasingly becoming an area of focus as development policy-makers work towards improving the lifestyles of rural poor. Previous research has had a keen focus on the impacts of financial services to business outcomes, leaving behind other equally vital aspects of development. In addition, very little of this research has focused on socio-economic and sustainability outcomes in rural areas.

It is clearly evident that the bottom of the pyramid (BOP) segment lack financial access which limits their abilities to invest and increase their income. Research done on access to financial services by the poor has shown that access to financial services by this segment can be an instrument towards poverty alleviation. This is because, access to financial services increases people’s choices which play an important role in empowering the poor. Micro-lending services allow poor people to move into a more proactive mode that enables them to get protection against risks ahead of time and opens up new opportunities. The benefits of micro-credit investments revolve around empowerment of the poor as it provides economic freedom and the ability to make choices.

At ABC-CS, we have carried out a study, using non-randomized controlled trials, to investigate and evaluate the impacts of access to financial services on income and poverty levels by those people in the BOP segment especially in the rural areas. Although our focus was on the impacts of financial access, we also investigated other aspects like prior business experience, gender and group investment impacts.

Our results have shown that access to micro-credit does not really lead to an increase in per capita after deducting costs especially operational ones. In reality, few of the ventures, if adjusted for costs, will show economic losses. We find considerable heterogeneity, with many groups earning negative returns to capital. This research compares per capita income, savings and other micro-credit outcomes between participants and non-participants using data from both the treatment and control groups.

However, digging a little deeper, the comparative analysis comes with the challenge of selection bias. We have realised, it is easy to control selection biases at household level but very difficult to address biases stemming from market access and purchasing power of the community at large, where these ventures seek to market their produce.

This problem can be solved, by following a feeder chain principle, in terms of selection of ventures. Micro-entrepreneurs, should be encouraged, to explore possibilities of backward/forward linkages with other existing ventures – to feed on, or to feed another group. While, we channelize the marketing linkages, we are also enhancing the purchasing power of the immediate customer/user of produce for every micro-venture, with majority of micro-ventures aligning in a value-chain. However, this will lead to concentration of risk, which can be addressed, by selection of focus areas, where market access and tie-ups can be put in place by the Micro-lending Institution.

We see Market Access, Purchasing Power of Community and Feeder Chain as our driving principles for extending Micro-Credit. We wish to develop our micro-lending ethos, in a structured manner, taking into consideration the aforementioned areas.

High interest rates and exclusive approaches and conditions effectively preclude the rural poor from accessing credit to improve on their housing, water, sanitation, infrastructure, waste management and livelihoods. We have set out to support socio-economic activities through financially empowering the poor from the community, in an attempt to alleviate poverty and improve people’s living standards. The objective of providing financial services to the poor is to empower the poor, support small businesses, improve micro-credit institutional performance, and to support rural sustainability.

Our approach of lower interest rates, coupled with repayment linked incentives; working with Market Players toprovide market access and improving the purchasing power of the next immediate user will present an unique opportunity – Controlled Markets: The first in the chain will need limited access to capital for fuelling his/her venture, while the last user in the chain will be mature enough to cater to open market.

It is our responsibility to engage judiciously, while at it, we see significant opportunity in the large unbanked bottom-of-the-pyramid space, which creates a lot of space for growth for micro-credit. We see Micro-Credit, to be in a sweet spot with better growth prospects, considering this segment is better placed in terms of distributing credit and do not have the overhang of bad assets compared with the private as well as public sector banks.

- Abhijith Jayanthi CEO @ ABC-CS

ABC-CS: Humble Beginning

Re-inventing our Glorious Legacy, Preserving our Culture and Igniting the Intellect within

Contributing and giving back to the societies which we are privileged to be part of, is an integral part of every Brahmin household’s ethos. This complements the role that we play at work, every day, as the intellect behind actions, as an enabler of things amongst others.

Brahmins, in Andhra Pradesh and beyond, as we all know have an extraordinarily rich and varied cultural heritage. Over the last few months, it has been our aspiration to create an institution, to play a role in nurturing, preserving and promoting needy men and women from the Brahmin Community in Andhra Pradesh. And we have been extremely fortunate to have had been given this opportunity by Chief Minister, Government of Andhra Pradesh Sri. N. Chandrababu Naidu Garu, to engage with the community, partner with selfless torch-bearers and world class institutions for greater good of the community.

Our journey began on October 31, 2015, when Andhra Pradesh Brahmin Co-operative Credit Society Limited was registered as a Government of Andhra Pradesh Undertaking to offer credit and saving options to Brahmins from within the State of Andhra Pradesh and beyond. Our engagement with the community, had a humble beginning, with a membership of 1800+ members, and growing with every passing day.

 On March 8, 2016, we initiated the Sthree Shakti Groups Micro-credit Programme, through which multiple JLGs will be extended micro-credit, as an enabler of micro-entrepreneurs, Small Scale Self-Help Groups. We are in the process of rolling out schemes to support youth from within the community, to encourage entrepreneurship and up-skilling.

We have started our retail-credit operations, and are now accepting applications to open saving accounts with us.

As our engagement with the community continues to deepen and evolve, we are extremely excited to be playing a small role. We hope that you too are able to join us in this journey. If you have any ideas or suggestions, please do feel free to let us know.

- Abhijith Jayanthi, CEO @ ABC-CS

The Great Indian Lethargy: Smart Cities & Erstwhile Regulations

With Prime Minister Mr. Modi laying out an ambitious plan for India, urbanization in India has seen an upward trajectory. We have a lot of investment being pumped into urban development programs. Modi’s Smart Cities Initiative and AMRUT urban missions will see investments exceeding 50,000 crore rupees going into India’s cities. Meanwhile, with a lot of buzz being created about urbanization and smart cities – some companies have created dedicated business units to tap the market. Each one of them, trying to market their product as the backbone of any smart city.

With so much money going into urban development, before anything else, it becomes essential to review our attitude as a nation first, to truly built a smart city and remain true to the definition thereof. We are a nation, with most of our leaders bred upon wrong dynamics of leadership. With little to no regard, about demographics of state/population they represent or natural/industrial resources they are to work with, every leader seems to think they hold a hammer of the same size, and unfortunately everything looks like a nail!

Such are the concerns related to tackling urban planning, that every plan will quickly turn into a potential candidate for reforms. There is a more basic need to reform our attitude towards urban planning and community - possibility of which has proved to be a Sisyphean Construct that governments across the globe, including India, are rolling up the hill.

In the Indian context, the landscape of regulatory environment is primarily an outcome of the division of subjects, where the Union and the State governments could frame laws, as provided in the Seventh Schedule of the Constitution of India. The problem of ‘stock’ and ‘flow’ of the regulations, is such a complex maze – and it is further thickened by the plethora of laws and regulation therein, which have simply failed to keep pace with time. We are trying to build smart cities – but are working with erstwhile regulations, the basic construct of this approach is appalling.

Another major issue emanates from the way the appointments in the regulatory agencies, and also the organizational structure, are made and held. On this count infusing professionalism through right selection and capacity building are the key issues – this will revitalize the waiting and decision time, and also the payment flow to vendors or stakeholders involved.  There is huge information asymmetry that adversely impacts the regulatory environment. While enterprises above a threshold may have the wherewithal to deal with the complex regulatory environment, to build smart cities, small and medium enterprises will play a much greater role – and greater coordination amongst ministries and the policy makers is the need of the hour.

With heavier regulation, chances are higher for corruption and sprouting of larger unofficial routines to get work done, but no better quality of public or private goods. One essential step forward for better urban planning is more democratic and limited governments - both at the Central and State level, with lighter and streamlined regulations to comply with.

If these fractures are not corrected, urbanization and development of smart cities will reduce to an obstacle race with one principal worry - uncertainties about the number of obstacles, the nature of obstacles and the location of the obstacles. This uncomfortable realisation will drive away investments and stakeholders. Functional autonomy with necessary accountability is a better recipe for urbanization and development of Smart Cities – to tackle the lethargy in the system and adapt to present day realities, for achieving desired objectives.

Are you having a nutritious conversation – essentials and why?

As Boris Groysberg and Michael Slind argue in this piece; leadership in the 21st century is like a conversation - they refer to it as “organizational conversation” leadership model.

Most of us have started to realize the necessity to drive our engagement with our employees and other stakeholders in a conversational manner. But I wish to go a step further – how many leaders of today have started to check if they are having a nutritious conversation?

Do you ever think about why we have a conversation? The easy answers are because we want something and need to communicate, to express our opinion, get to know the other person or when we really have nothing else to do or without any productive reason i.e. sometimes you might engage in a conversation because you are bored, sad or happy, just because it's lunchtime, or because that the other person looks so good.

Those are some of the emotional and physical reasons why we engage in a conversation but do we ever put much thought into what makes a good conversation – to meet our expectations from it. Why nutrition value of a conversation forms an important quality that we should not ignore?

Having a Nutritious Conversation helps us in meeting our goals and meet/exceed expectations others have from us. The conversations we engage in, should be filled with necessary elements to provide the needed energy, excite and encourage the other person to function, with needed caution and a gentle reminder of possible ramifications if the ball does not roll at the right pace and in the right direction – thus meeting or exceeding our expectations.

Just like we need to put fuel in our car or recharge your cell phone battery, everybody needs to be fed with right conversation every day. In any organization, as I mentioned in my previous piece - leadership should come from within each of us and at every level. When each of us will truly appreciate the need for having a nutritious conversation,  each piece in the organizational jigsaw not only completes the void it is expected to fill, but also engages with other pieces in a nutritious way thus contributing to the overall organizational conversation.

Let’s have a healthy and a nutritious conversation!