Behind the Scenes

According to a recent report published by the United Nations (UN)– India has more mobile phones than toilets. This means that Indians can attend calls on their mobile phone more easily than attending nature’s call. Funny but true. The growth of the India Mobile Phone market and Telecom market is a big success story as far as numbers go. India is the 2nd largest mobile market in the world next to China. The cost of owning a mobile phone and connection is incredibly low these days. It’s quite interesting how they compared mobile phone populating to number of toilets.

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UNITED NATIONS: More people in India, the world's second most crowded country, have access to a mobile telephone than to a toilet, according to a new UN study on how to cut the number of people with inadequate sanitation. "It is a tragic irony to think that in India, a country now wealthy enough that roughly half of the people own phones, about half cannot afford the basic necessity and dignity of a toilet," said Zafar Adeel, Director of United Nations University's Institute for Water, Environment and Health (IWEH). India has some 545 million cell phones, enough to serve about 45 per cent of the population, but only about 366 million people or 31 per cent of the population had access to improved sanitation in 2008. The recommendations of United Nations University (UNU) released Wednesday are meant to accelerate the pace towards reaching the Millennium Development Goal (MDG) on halving the proportion of people without access to safe water and basic sanitation. If current global trends continue, the World Health Organization (WHO) and the United Nations Children's Fund (UNICEF) predict there will be a shortfall of 1 billion persons from that sanitation goal by the target date of 2015. "Anyone who shirks the topic as repugnant, minimises it as undignified, or considers unworthy those in need should let others take over for the sake of 1.5 million children and countless others killed each year by contaminated water and unhealthy sanitation," said. Adeel. Among the nine recommendations are the suggestions to adjust the MDG target from a 50 per cent improvement by 2015 to 100 per cent coverage by 2025; and to reassign official development assistance equal to 0.002 per cent of gross domestic product (GDP) to sanitation. The UNU report cites a rough cost of $300 to build a toilet, including labour, materials and advice. "The world can expect, however, a return of between $3 and $34 for every dollar spent on sanitation, realized through reduced poverty and health costs and higher productivity - an economic and humanitarian opportunity of historic proportions," added Adeel.
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The McKinsey Global Institute (MGI) on April 22`2010 released a report titled “India’s Urban Awakening- Building Cities, Sustaining Economic Growth,” that contains some very disturbing predictions for the future of Indian cities.
The report says that in the next 20 years, the number of Indians living in cities across India will grow twice the present population, about 600 million, and India needs to invest at least $1.2 trillion to provide basic urban infrastructure for these 600 million urbanites. Besides, the operational costs of providing the urban infrastructure is going to cost the country another $1 trillion. It doesn’t help that the World Economic Forum’s Global Competitiveness Index ranks India 89th among 133 nations for its infrastructure.
According to Shirish Sankhe, lead author of the report, many of India's urban services could reach breaking points quickly if the country does not make changes.
The MGI report cites affordable housing, water and transport as other key problem areas while suggesting that the Indian government should enhance its budgetary allocation towards making its cities well-equipped to handle the pressure imposed by the burgeoning population in 2030.
Advice that India should take seriously because, according to the report, by 2030 some 68 Indian cities will have a population of more than 1 million people while there will be 13 cities with more than 4 million inhabitants. More importantly, Indian metropolitan cities, including Mumbai and New Delhi, will have turned into megacities with populations of 10 million and more. In fact, in the next two decades, Mumbai and New Delhi will also be among the five largest cities of the world.
If India does not get its act together now, the quality of life in its cities would be dismal in the next 20 years, which would, in turn, impose serious damage to the economic growth of the emerging giant.


For example, the MGI report forecasts that an average citizen would receive just 65 litres of water a day from the current figure of 105 litres daily. As a result, a large number of Indian will have to make do without access to potable water. The report also predicts an urban gridlock resulting out of severe limitations in the urban transportation system as well as 70 to 80 percent of sewage being left untreated.
However, not all is lost for India in this race for better urban infrastructure and, thus, better economic growth in the coming years. The McKinsey report does have some positive remarks too.
The report says: "India has a young and rapidly growing population—a potential demographic dividend… New MGI research estimates that cities could generate 70 percent of net new jobs created to 2030, produce around 70 percent of Indian GDP, and drive a near fourfold increase in per capita incomes across the nation.”
The report claims that if India is able to match the speed of its urbanization with its rapid population growth, it could reap significant benefits, bringing its economy closer to the double-digit growth rate, which the Indian government aspires for.
If indeed, the Indian government pulls its act together, the report says, “This urbanization will happen at a speed quite unlike anything India has seen before.”




India Kindly Awake...
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With just around a month to go for the re-launch of the East India Company - the world's first multinational whose forces once ruled much of the globe - its new Indian owner says he is overwhelmed by "a huge feeling of redemption".
It's been a long, emotional and personal journey for Sanjiv Mehta, a Mumbai-born entrepreneur who completed the process of buying the East India Company (EIC) in 2005 from the "30 or 40" people who owned it.

Acutely aware that he owned a piece of history - at its height the company generated half of world trade and employed a third of the British workforce - Mehta, now the sole owner, dived into the company's rich and ruthless past in order to give it a new direction for the future.

With a $15-million investment and inputs from a range of experts - from designers and brand researchers to historians - Mehta is today poised to open the first East India Company store in London's upmarket Mayfair neighbourhood in March.

And then there is the inevitable - and daunting - task of launching in India, a country whose resources, army, trade and politics the company had controlled for some 200 years.

It's a task that Mehta has not taken lightly, he told reporter in an interview. "Put yourself in my shoes for a moment: On a rational plane, when I bought the company I saw gold at the end of the rainbow.

"But, at an emotional level as an Indian, when you think with your heart as I do, I had this huge feeling of redemption - this indescribable feeling of owning a company that once owned us."

The formal start of the East India Company is usually dated back to 1600 when Britain's Queen Elizabeth I granted a group of merchants a charter under the name 'The Company of Merchants of London Trading into the East Indies.'

With its own Elizabethan coat of arms - now owned by Mehta - the company was made responsible for bringing tea, coffee and luxury goods to the West and trading in spices across the globe.

By 1757 the company had become a powerful arm of British imperial might, with its own army, navy, shipping fleets and currency, and control over key trading posts in India - where it was known variously as Company Bahadur and John Company. In 1874, the British government nationalised the company, opportunistically blaming the 1857 uprising on its excesses. But the East India Company army, brought under the command of the Crown, retained its all-powerful presence in India."

When I took over the company, my objective was to understand its history. I took a sabbatical from all other business and this became the single purpose in my life," said Mehta.

He travelled around the world, visiting former EIC trading posts and museums, reading up records and meeting people "who understood the business of that time".

"There was a huge sense of responsibility - I didn't create this brand, but I wanted to be as pioneering as the merchants who created it."

"The Elizabethan coat of arms stands for trust and reassurance, but we are not repeating history. It took me four years to do the brand positioning and put up the milestones."

The 'relaunched' company, with its headquarters on Conduit Street in Mayfair, is set to open a diverse line of high-end, luxury goods in London in March and in India some time this year.

EIC products in India will include fine foods, furniture, real estate, health and hospitality.

"India is the spirit of the East India Company in many ways - it evokes a huge amount of connectivity and emotions," Mehta said. "It's also a major ambition to bring Indian products to the rest of the world. Today there is no single brand name from the East that can stand alongside, say, Hermes or Cartier from the West.


"The East India Company has that ability."
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