`There's more to India than IT, outsourcing'

This is the kind of headline that will gladden any Indian heart — `Indian Tiger trumps Chinese dragon,' more so because it's the latest survey of Forbes magazine that says so.

Its second annual survey of India's top 40 companies begins thus: "Foreigners can be forgiven for forgetting it, but there is more to India's economy than information technology outsourcing," adding, "it is dominated by banking, energy and manufacturing groups."

It points out that India's big three in IT - TCS, Wipro and Infosys Technologies - "together have only 40 per cent of the sales of Reliance Industries, the energy, chemicals and textiles conglomerate that tops our list." The list is not gauged by size alone; profits, assets and market value have also been taken into account.

Here are the 10 richest Indians — Lakshmi Mittal leading the pack with a wealth of $20 billion. Second on the list is Wipro's Azim Premji ($11 billion), followed by Mukesh Ambani ($7 billion), Anil Ambani ($5.5billion), Kushal Pal Singh ($5 billion), Sunil Mittal ($4.9 billion), Kumar Mangalam Birla ($4.4 billion), Tulsi Tanti ($3.7 billion), Pallonji Mistry ($3.3 billion) and Anurag Dikshit ($3.1 billion).

To qualify on the list of the richest 40, a net worth of at least $590 million — up from last year's $305 million - was required. Incidentally the richest Chinese - Lary Rong Zhijian's net worth at $1.64 billion is less than that of the 10th richest Indian - Anurag Dikshit ($3.1 billion).

Interestingly, India has 27 billionaires, against only 10 of China, and the 40 richest Indians have a collective net worth of $106 billion against the 40 richest Chinese with a collective net worth of only $61 billion.

Making a strong pitch for investing in Indian equity vis-à-vis the Chinese market, the Forbes survey says that India's clear advantages are its democracy, rule of law, English language fluency and half of its population being under 25. Other advantages — it's a "natural ally" of the US, while America's "relationship with China will at best be wary and tense." Also, while China's state-owned companies have "staying power," government ownership was bound to limit their growth and potential.

But while the investment opportunities in India are tremendous, investors needed to "tread very carefully at this stage," as the companies were not exactly cheap. Even though not all that expensive at these levels, at around 18 times earnings, "the market is not especially cheap anymore either. But that doesn't mean it's too late to get involved. The recent correction was long overdue and healthy. Fundamentally, India's top companies are as strong as ever."

In China the price of rice has been maintained the same since 1952. According to famous columnist Mr. Gurumurthy, in India in the year 1960, one quintal of paddy fetched one sovereign gold and today not even 6 quintals is equivalent to that gold value. By gold standards, our farmers and by deduction the majority of our population have only grown poorer. Mr. Gurumurthy goes on to add “Our Late Lal Bahadur Shastri coined the slogan “Jai Jawan Jai Kisan”, equating the farmer with the soldiers, as warriors against poverty. Owing to their hard work and modern farming methods, their production has increased manifold. But it has not brought any prosperity to them. The price increase for agricultural produce is very much low in comparison with the general increase in cost of living. More the farmers go into agriculture, the more they sink in debts. We are totally indifferent to the needs of the farming community that many of them in states like Maharashtra, AP and Kerala end their lives, because of financial problems”
The government, media and the educated are hankering after billionaires and rejoicing their corporate success as their own.

-----------------------------------------------------------------

Every day, countless commentators prophesize the ascendance of the world's next superpowers, China and India, the two "Asian giants" shaking off their ancient slumber and rising to the call of the 21st century. According to popular punditry, their place in the firmament of globalization's success stories is already guaranteed. Yet economist Pranab Bardhan argues that a much more complicated picture belies the rosy visions of optimists. In China, rural and urban inequality grows at alarming rates, stirring unrest amongst those hundreds of millions who remain impoverished. In fact, China, responsible for only 6 percent of world trade, has actually lost manufacturing jobs in the past ten years. Meanwhile, India's much-vaunted hi-tech sector accounts for less than one quarter of one percent of the country's labor force. The nation still boasts the world's highest illiteracy rate, while poverty reduction continues to slow. In short, Bardhan suggests, only patience and struggle – not destiny – can guide India and China to the level of superpowers. – YaleGlobal

http://yaleglobal.yale.edu/display.article?id=6407

-----------------------------------------------------------------
You know you are a desi when ........ You spew forth the virtues of India, but don't want to live there...............You've never had a tanning salon membership

China, India Superpower? Not so Fast!
In India too the rural-urban divide causes grave concern. Mr. Gurumurthy says that there are hardly anyone left in rural areas but the aged, children and women . The workforce has shifted from healthy rural climate to the squalor of the urban slums. It is not difficult to imagine the consequences. The media is also to blame. For example, they give all the focus to Bangalore. Geographically, it is literally the toe of Karnataka.

-----------------------------------------------------------------