Mahatma's Legacy: Khadi sales spike, fibre not cheap any more

Pic Credit:www.mkgandhi.org

By Neeraj Bajpai: Known for natural lustre and rough texture, Khadi strands of late have turned livewire in more ways than one due to increasing footfalls at its nondescript and poorly furnished Bhandars, growing sales and demands for technological upgradation, decent payment and working environs to weavers and bridling cost of the fibre. 

Debates veer around whirring wheels of Charkhas. Leading from the front, Prime Minister Narendra Modi, who had launched Khadi promotion blitz in his talk shows on radio waves a year ago, says the sales have almost doubled and more and more people purchase Khadi items now. Disputing the government’s claims, many say hype was being created by raising bogey of sales. Khadi and village industries top rung officials, keeping track of its sales and purchases across the country, wave ledgers to assert that purchases might be even higher than what had been collated by them so far.

In “Mann ki Baat” last year, Mr Modi had called upon people to buy at least one Khadi garment. He recently recalled the appeal had made an impact and sales have almost doubled and said it was not accomplished through advertisements, but it is the manifestation of immense power of masses and “what an experience”. He made it clear that he was not asking people to become totally “Khaddhar dhari ” but everyone must purchase some item of Khadi in coming Diwali. Mr Modi added that Khadi rebate programme, which starts on October 2 for a month, must be encashed by all and they should also patronise handlooms.

The Khadi craze was evident on this year October 2 when outlets across the country clocked one day sale of Rs.20 crore. As a mark of obeisance to the Father of the Nation, Mahatma Gandhi, 48 offices of Khadi and Village Industries Commission remained open and 7050 sales outlets made brisk sales. The Khadi Bhandar at Regal building, here, touched sales worth Rs.80 lakh on the Gandhi Jayanti day.

This has resulted in growth of Khadi sales and consequent growth in production. Union Minister for MSME Kalraj Mishra said that after the PM's appeal, growth in sales rocketed to a 17.55% from October 2014 to March 2015, which is an almost three fold increase when compared to the previous corresponding period. After the appeal, growth in production increased by almost 6 times to 31.1% from October 2014 to March 2015 over the previous corresponding period. In 2014-15 Khadi production has reached Rs. 880 crore registering an increase of around 8.5% over 2013-14.

CEO and Commissioner, KVIC, Arun Kumar Jha says the sale of the Khadi Gram Udyog Bhawan, New Delhi, the departmental flagship outlet of the KVIC increased around 125 per cent in subsequent fortnight soon after the PM’s talk show.The total increase in sales during the period from October 2014 to March 2015 was around 68 per cent in value terms. 

The sale of Khadi which was at Rs.5.47 crore during the period October 2013 to March 2014 jumped to Rs.9.19 crore. According to him, the sale of readymade items of Khadi Gram Udyog Bhawan,Connaught place, increased phenomenally and the increase was around 86 per cent. All India sale of Khadi which was Rs.581 crore during the period October,2013 to March,2014 jumped to Rs.750 crore during the period of October 2014 to March 2015. The increase was around 31 per cent upto March alone

According to official sources, the government introduced Market Development Assistance (MDA) scheme giving full flexibility to the Khadi Institutions to organise their production & sales activity in the best way they considered appropriate. The MDA provided much needed boost to the Khadi programme. The government provided Rs. 324.64 crore for supporting Khadi Institutions (KIs) under various schemes during 2014-15 which is an increase of around 36% over and above the support provided by the Govt. in the preceding year i.e. 2013-14 which stood around Rs. 239.17 crore.

Khadi, officials say, the proud legacy of Mahatma Gandhi and potent tool of national freedom, is “ethical as well as ethnic”adding its USP is natural, hand crafted, eco-friendly, bio-degradable and non-exploitive fibre. It is a cloth woven by hand using handspun yarn only. Natural fibres namely cotton, wool and silk are used in the production. Khadi is identified by the direction of twist in yarn.In Khadi yarn twist direction is “S”. Usually it is called left twist or anti- clockwise twist.

Currently,there are 1.42 lakh weavers and 8.62 lakh spinners in the country and many demand decent returns to their skills. An estimate says that 9.60 lakh charkhas and 1.51 lakh looms churn out Khadi. Delhi University Professor of Mathematics, Vinod Tyagi, who still weaves Khadi on charkha and gives company to his mother in this task, says that the Khadi items have become “very costly” and the price of a dhoti is like “ladies’ decent cotton dhoti”.

Chennai based Ethiraj Gopal, an avid supporter of Khadi, says that it should be more trendy and quality be refined further to retain its crease for many days once it is starched properly. Mr Gopal, an advocate by profession, said that he travels around the country and feels that KVIC should make inroads in upscale markets and hotels for sale of traditional food items –organic eatables as it has sales potential and it would protect country’s ethnic food, having both medicinal and taste qualities. 

Many people also call for strict monitoring of the Khadi quality to checkmate entry of spurious Khadi and other KVIC items. Both on the khadi prize and quality, KVIC CEO said that they were implementing stringent norms to give Khadi brand only to quality products and "once sales volume increases,prices will come down".

KVIC was established in 1957 to leverage the unique characteristics of Khadi, the fabric of freedom, for economic upliftment of rural artisans and integrating the Khadi programme with the planning process of the country. Assigned to KVIC were social objective of providing employment and economic aim of producing saleable articles. Many say when the KVIC was established, its main objective was to develop village and Khadi industry but instead of vehicle of development, it has become a regulatory body sans textile engineers, marketing experts, designers and quality testing laboratories.

Officials say that in 2014-15, 2,223 institutions were engaged in the implementation of Khadi programme under KVI Sector. During this period the production of Khadi was around Rs. 879.98 crore and 11.06 lakh people were engaged in the activity. The production of Khadi in quantitative term was around 95.19 million sq. metre which is merely 0.15% of the entire textile production of the country. If compared to Khadi, Wool and Silk Sector of the country which is the traditional textile sector, the contribution of Khadi sector is over 11%.

In terms of the Khadi production in 2014-15,U.P produced 25.23 per cent of total production and its value was pegged at Rs.222.01 crore vis-a vis other states like TN -10.72 per cent ,Rs.94.33 crore,WB 13.27 per cent, value Rs.116.74 crore, Haryana 9.67 per cent, value Rs. 85.15 crore, Rajasthan 5.82 per cent ,value Rs.51.18 crore. Figures include production of Khadi –Cotton, Woolen and Silk.

Officials say schemes under Khadi include KVIC supported development of Khadi programme through various Central Sector schemes- Market Development Assistance (MDA), Interest Subsidy Eligibility Certificate (ISEC) Scheme for Khadi and Polyvastra, Scheme of Fund for Regeneration of Traditional Industries (SFURTI), Khadi Reform and Development Programme (KRDP), Workshed Scheme for Khadi artisan,Aam Aadmi Bima Yojana, Khadi Karigar Janashree Bima Yojana (JBY)), Strengthening Infrastructure of Weak Khadi Institutions and Assistance for Marketing Infrastructure Under the Raw Material Management scheme, in order to ensure quality raw material for the new model Charkha programme, the KVIC has set up up six Central Sliver Plants (CSPs) at Kuttur (Kerala), Chitradurga (Karnataka), Sehore (MP), Etah & Rae Bareli (UP) and Hajipur (Bihar) .

The total installed capacity of these plants is 4100 tonnes per annum and the production in 2014-15 was around 2700 tonnes. KVIC set up these plants in late 80s and early 90s with average investment of around Rs. 6.00 crore. The present investment to set up a new plant of the existing installed capacity is around Rs 12.00 crore however, these plants also have problem in their economy of scale as a CSP should have installed capacity of 2000 ton per annum per plant. Under its marketing initiatives for brand production, the KVIC developed three brand names “Khadi”, “Sarvodaya” and "DesiI Aahaar". 

While the Khadi showcases premium and export oritented KVI products , “Sarvodaya” serves to fulfil the needs of Fast Moving Consumers (FMCs) to domestic market segments and “Desi Aahar” is meant for marketing organic food items. Experts say that the Khadi should be a single brand and that should be promoted instead of three brands.

“Like swaraj, khadi is our birthright, and it is our life-long duty to use that only. Anyone who does not fulfil that duty is totally ignorant of what Swaraj is. "We cannot claim to have understood the meaning of swaraj till khadi becomes as universal as currency.", Mahatma Gandhi had said on promotion of Khadi. Amid these fast growing developments and leapfrogging aspirations, the Khadi sector faces a slew of challenges like limited technological upgradation for optimising process of value addition with assured quality, no scheme to strengthen and support production infrastructure of institutions/units, no scheme available to provide long term design developmental input, competition from Multi Nationals and Corporates, inadequate technical manpower, lack of resources for aggressive advertisement and promotional campaign and absence of enabling scheme to set up flagship stores.

Experts say developmental supports are needed for khadi and proposals inter alia are engagement of technical manpower to carry out technological upgradation of tools, implements and other productive infrastructure for optimising the process of value addition with assured quality, innovation in design and development of trendy products by engaging renowned designers from National design institutes. They say there is an urgent need to develop distinctive items with focus on younger generation which would also attract high street fashion designers for production of items having high demand and good returns, strengthening of marketing network available in the Khadi sector by totally revamping and modernising to enable them to compete with best in trade by providing all requisite facilities including information, knowledge and expertise.

According to them, the sector must involve prominent individuals and bodies who have shown interest in Khadi encouraging them to adopt areas, products, traditional industries clusters, arrange marketing and popularize Khadi and Village Industry products. The experts also seek opening of designers stores in select cities abroad to showcase and promote Khadi and Village Industries products there in a sustainable manner. They advocate setting up of a professionally run organisation to fully realise the marketing potential of the products produced in the sector by creating a demand pull situation.

(*Neeraj Bajpai is joint Editor with United News of India(UNI). Views expressed are personal)

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Open Sesame

The Bundelkhand region of Uttar Pradesh conjures up a picture of poverty and backwardness in the minds of most people. The area has lagged behind agriculturally and economically due to its typical geographical terrain and climatic conditions.

The UP part of Bundelkhand comprises of seven districts falling under the Jhansi and Chitrakoot divisions respectively. The rabi crop is good here and high value crops like gram, lentil, pea etc are grown in the area in large quantities. However, the farmers of the region have largely depended on one just one crop; the area sown during kharif is much smaller.

Traditionally, in comparison to the area sown during Rabi, farmers cultivate only about 50% of the area during the season of Kharif in Bundelkhand. While the net cropped area during Rabi is approximately 18.50 lakh hectares, the area cropped during Kharif has hovered around 9 lakh hectares. The primary reason given is that the region suffers due to Anna Pratha.

This is a traditional system under which people leave their milch cattle unfettered to graze in the fields. These cattle eat up the crops and therefore the farmers are not inclined to sow their lands during the season of Kharif. This does not happen during the rabi season as he farmers keep their cattle at home. To understand this phenomenon, one has to appreciate the peculiar circumstances prevailing in Bundelkhand. Firstly, the entire area has traditionally been rainfed and suffers from shortage of water.

Due to the vagaries of monsoon, the farmers have preferred not to sow their fields. Secondly, the average size of the landholdings in the region has traditionally been much bigger as compared to the average landholding size of the state due to the low population density here. Therefore it was possible for the farmer to make do with even one good crop in the past but not so any longer. The situation has now changed with the increase in population and the size of average landholdings has gone down substantially in this region also.

Thirdly, due to the area being rainfed, there is a general shortage of fodder also in the region during the summer season. This forced the farmers to leave the cattle free to survive on whatever came their way in the fields. This slowly became an accepted practice and farmers stopped sowing their fields during the Kharif season in Bundelkhand. Such vast area remaining uncropped is also a national wastage of sorts for the country.

During last two seasons of rabi, due to unseasonal rains and hailstorm in Bundelkhand, farmers suffered severe losses in 2014 and 2015. The coverage of farmers under crop insurance in Bundelkhand is to the tune of 15%, which though much higher than the state average of 4-5% is still very small. As the farmers are mainly dependent on the proceeds from Rabi in the region, this was a big jolt for them. They were desperately looking for some additional income, when the state government stepped in with a unique policy announcement. Realizing the potential of cultivation of sesame (til) in Bundelkhand during kharif, the subsidy on its seeds for the farmers of the region was increased five times from Rs. 20/kg to Rs. 100/kg.

The decision to promote sesame was taken consciously in the light of the fact that the cattle do not eat this crop. Sesame seed was procured in large quantity to be distributed to the farmers of the area. An aggressive campaign to promote sesame cultivation during kharif was launched. Departmental officers, NGOs, district and divisional officers and all others concerned campaigned actively for increasing the area under sesame and also for generally bringing more area under coverage as compared to the last year’s figure.

The result has been extremely encouraging. As compared to kharif 2014, an additional 2 lakh hectares has been cultivated in Bundelkhand this year, out of which almost 1.25 lakh hectares additional area is under sesame! The premise that if farmers are able to get proper return from their crop then irrespective of Anna Pratha they would plant crops, has turned out to be correct! This has been made possible with the active intervention of local administration.

During my recent visit to Jalaun district, the farmers were thankful to the administration for restricting those farmers who used to leave their cattle unfettered to graze in others’ fields, which has resulted in the increased coverage. Along the Orai-Jhansi highway, it was a treat to watch kilometres and kilometres of sesame on both sides. The arrangement of fodder for the cattle is also a crucial issue, which definitely needs to be addressed. If the farmer has the purchasing power, he can definitely buy the required fodder from the market.


The economics of sesame cultivation is revealing. It is a crop meant for the rain fed areas. There is no dearth of market for the produce as there are very few countries cultivating sesame whereas almost every country consumes it in some form or the other. Sesame oil is used for cooking, making sweets, massage, medicinal and cosmetic purposes and many other uses. Sesame seeds are used for preparing sweets like gajak, rewari, laddoos and tilkut in India, tahini sauce in Middle East and on top of buns and burgers in the west. It is also used for different rituals on religious occasions. Sesame gets a better price for the farmers than the other oilseeds in the market.

This episode reminds one of the story of Alibaba and forty thieves. When Alibaba said “Open Sesame”, the mouth of the cave would open up showing a hidden treasure of wealth. This is an “Open Sesame” moment for Bundelkhand, a real turning point. Due to the highly deficient rainfall, the returns this year to the farmers may not be very lucrative but it holds tremendous hope for the future. The pattern of agriculture during kharif may have changed in the region for ever.

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Maharashtra No. 1 State for its Tourism potential

Mumbai: The survey compiled by HVS in association with the World Travel & Tourism Council, India Initiative (WTTCII) rated Maharashtra after analysing the state-wise potential of Travel and Tourism in India, and assessing the relative competitiveness of different states in the country.

The evaluation has been carried out for 30 states. Maharashtra ranks 1 in this year's survey moving up one position from the previous edition. The state benefits from a strong economy, good infrastructure, presence of a sizeable quantum of branded hotel rooms and a variety of demand generators to occupy these rooms. In line with these factors, Maharashtra has recorded perfect scores in four parameters – tourist visits, GSDP per capita, effectiveness of marketing campaign and aircraft movement. The state has performed well across all other parameters with the exception of its expenditure on tourism.

Ms Valsa Nair Singh, Secretary State Tourism and Cultural Affairs, GoM, said, “We are proud of being ranked as No 1. This recognition is prestigious, as Travel and Tourism is an integral part of our economy and we are happy that we stand as number one in attracting tourists. This is a team effort, through innovative promotional campaigns, marketing strategies, planned - focused and aggressive ideas we have reached such milestones and we are motivated to do better every day. Our recent thumping success of MITM attracted global buyers and sellers and we are confident to grow over the magic numbers in coming years, making Maharashtra number one destination on the world map.”

As per the Tourism Highlights 2015 Edition report by the United Nations World Tourism Organization (UNWTO), the total number of International Tourist Arrivals (ITA) worldwide was 1,133 million in 2014, India attracted 0.67% of the world's international tourist arrivals out of which Maharashtra attracted 4.5 million tourists from foreign countries and over 8.4 million domestic tourists, which is largest than any other state in the country.

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Odisha ranks 7th among States in Labour Reforms

Odisha has been ranked as 7th in Labour Reforms in India. This has been released in 'Implementation of Business Reforms Report, 2015' prepared by World Bank and CII recently. Minister, Steel; Mines, Labour & ESI Sri Prafulla Kumar Mallik reacting on this success said it will build confidence in investors and attract investment to the state.

During a year period the Labour ESI Department has taken several positive measures for good service delivery and better citizen interface. The Composite Inspection Scheme introduced by the Department will help in timely inspection and preparation of transparent inspection scheduled. The industries and commercial establishments also will have a special scheme like Voluntary
Compliance Scheme where inspection will be made once in three years.

Likewise, one Common Application Form (CAF) which makes it easier for investors to obtain statutory clearance from different Departments through a single window system is introduced. Seven Act like Odisha Shops and Commercial Establishment Act, 1950, the Beedi Cigar Workers Act-1996, Motor Transport Workers Act-1961, Contract Labour(R&A) Act-1970, Inter State Migrant Workmen (RE &CS) Act-1979, Building & other Construction Workers (RE&CS) Act-1996 and Industrial Employment Standing Order Act-1946 have been brought under the Odisha Right to Public Services Act-2012 to ensure time bound registration, renewal and issue of licences.

The Directorate of Factories & Boilers have enlisted 12 nos of services for ease of doing business in the state. Online service for registration through eBiz portal of Government of India will encourage the investors. Now approval of extension plans, renewal of factory licences for factories employing up to 100 workers is entrusted with the Dy. Director of Factories and Boiler.

One dedicated Shramik Sahayata Helpline has been set up for workers. Besides, seasonal hostel for children of migrant workers' families is set up. In the four migrant prone districts Special Police Officers are engaged to check the illegal migration of workers. Further, employment opportunities to migrant workers in their locality is planned with a provision of providing 150 days work a year
under MGNREGA and the cost of additional 50 days will be borne by the State Government.

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RBI guidelines on ‘Control of Indian Companies’ in FDI policy

On Thursday, Reserve Bank of India (RBI) released guidelines on total foreign investment in Indian companies, transfer of ownership or control of Indian companies. With the ongoing debate over control of Jet Airways after UAE’s Etihad bought stake, RBI’s new FDI guidelines will certainly solve the dispute.

The guidelines are regarding Indirect or Direct Foreign Investment (FDI), calculating the total foreign investment, transfer of ownership or control of Indian companies and also on downstream investment by Indian company. Here are a few from those -

Ownership or Control – An Indian company will be an Indian company if 50 or more percentage of capital benefits is owned by Indian residents or companies. And the Indian residents or companies should have the power to appoint majority of the company directors.

Non-resident entity/ies can have control over an Indian company, if more than 50% of the capital benefits are owned by non-resident entity/ies and they’ve the power to appoint majority of the directors.

As per the press notification - Indian companies with such investments between February 13, 2009 and the date of publication of FEMA notification, should intimate the same to RBI within 90 days of the publication of this circular. They should report it to the Regional RBI office under whose jurisdiction the Registered Office of the company is located.

Calculating total FDI would sum up all the non-resident investments made in Indian company. Total foreign investment will be the sum of total direct and indirect foreign investment made in a company.

For more details, you can read the press note released by RBI here

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50K vacancies to be filled up in PSU banks - P. Chidambaram

Indian Finance Minister P. Chidambaram had a meeting with PSU (Public Sector Undertaking) banks' heads on Wednesday and after the meeting he addressed the press. While talking to the press he said that in this fiscal 50,000 vacancies are to be filled up in the PSU banks of India.

Talking to reporters he said, PSU banks are expected to open 10,000 branches all over India, including 2000 Regional Rural banks. Adding more he also said, as the new branches needs human resources, PSU banks are expected to hire close to 50,000 people in this fiscal.

As on March 31, 2012 - PSU banks had a sanctioned strength of 8 Lakh employees and in the last fiscal recruitment for 63,000 vacancies has been done. Among the PSU banks, State Bank of India (SBI) has recruited the highest, 20-22,000 people, in the last fiscal.

As per the statement of Finance minister, this fiscal bank would follow the same trend and recruit higher number of personnel for around 50,000 jobs.

Entities like Institute of Banking Personnel Selection (IBPS) has been conducting exams all over India to choose the best personnel for banking sector, since few years - including urban and Regional Rural banks (RRBs). Recently IBPS has announced the exams for RRBs.

Apart from that P. Chidambaram also said about stalled projects and he had given importance to re-initiate these projects while talking with the banks' heads.

Above all, this is a good news for students preparing for banking sectors, as this fiscal the recruitment will be high and there chances to get into a bank is more.

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Muthoot Finance to open White Label ATMs

International finance company Muthoot Finance has got the in-principle approval of Reserve Bank of India (RBI) to open White-Label ATMs in India. On Tuesday, RBI has granted the authorization to Muthoot Finance.

White Label ATM (WLA)s are the concept from Canada, where a non-banking entity opens up ATMs. From these ATMs, customers of any bank in the country can withdraw money and for the same the card-holders have to pay a fee.

Muthoot Finance has planned to set up 1000 ATMs in the first year of operation and 8000 in the following year. As per the reports, they’re already in talk with some of the leading Indian banks and also taken the approval of share holders.

Want to know the General criteria for opening up WLAs, the follow this link on the website of RBI.

Last month RBI has permitted non-banking financial institutions to open more WLAs in regards to encourage personal banking. As per the reports, the new WLAs will be set up in non-traditional places, semi-urban and rural areas.

This move will certainly help the rural people to get access to banks easily. Last month, RBI has allowed Tata Communications Payment Solutions, a subsidiary of Tata Communications to set up WLAs around the country and soon many other such institutions will be participating in this initiative.

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Astrology can make your today and tomorrow bright

Astrology has always been a key instrument for those who believe in it and follow the remedial measures to get rid of the problems they face today and tomorrow. No one knows about the origin of the principle, but it is believed that it is from the time, since immemorial man has got an insatiable thirst to peep into the future. Everything starts in time and ends in time. The reasons are manifold. Some take the help of Astrology to increase their quality of life in a material sense and others in a spiritual sense. Some are after bhoga (sense pleasures) and others are after yoga (spiritual pleasures). The ancient seers of India wrote a long time back certain tenets by which an individual could maximize his/hers potential and live with peace and prosperity.

Vedic Astrology can help one fine one's true destiny and can help get riches both spiritual as well as material. Whether the query is to start a new enterprise or marriage-Vedic astrology can help. Vedic astrology is based on the movement of the moon and hence more exact than solar astrology that is in vogue in the west. The moon stays in a rashi (sign) for only 2 and half days whereas the sun remains in a sign for a month. Similarly our daily conditions do not remain the same.

They change as the moon changes its position and the same goes for our moods too. Therefore lunar astrology is far superior when it comes to prescribing remedial measures for adverse planetary influences than solar astrology.

Are you destined to be successful in life? Or, are you only subjected to disappointments, frustrations, and sadness? For all of us, neither of these to extreme scenarios happens to us. Our life is mingled with happiness and melancholy, elation and discontentment if you are facing problems in your business, personal matters, do not hesitate to contact us. We are available at http://www.amazingastro.com Round the clock.

Numerology and why Seek it ?

Numerology is an another principle to ascertain you and your issues. People find ways to deal with their issues. Some take help of astrology, numerology, while others bear the onslaught silently. Perhaps, you could simply change the spelling of your name and be a lucky person. Perhaps, you can even opt for particular name for your business.

And, you can see how wonderfully you have mastered all your problems. Life is bliss with no indomitable hurdles. Today, our numerology experts offer tips and advice to those in need or distress through the net. Our online numerology consultants work on name, date and place of birth.

Once you have furnished these basic details, they calculate and assess the statistical data. Along with numerological principles and client details, the consultants properly advice their clients on what action they should take to make their life more comfortable. For consulting our numerology experts, log on to http://www.amazingastro.com

Feng Shui: Consultancy and Services

Hassled in life? Desperately want to find a way to solve the teething problems in come your way? Perhaps, a new look of your home or office can change your destiny.

Miracles of Feng Shui

Even though it may sound a little hypothetical, changing spatial orientation or Feng Shui can do you good – in fact change your luck. But, how can that be possible in reality? Read on to find out.

Feng Shui or wind and water, involves energy flow to restore balance between various forces of nature. And, if you were to balance your personal energy with the energy of the environment, you would experience a better life that is healthy, comfortable, and stress-free.

So if you wish to solve your problems by making few changes in your house, office, you can consult our experts on http://www.amazingastro.com

For more information, please contact Atul Malikram@9755020247 atul@atulmalikram.in

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FDI Policy Clarifications on Multi-Brand Retail Trading in India

Yesterday Department of Industrial Policy and Promotion (DIPP) had answered many queries from stakeholders and investors regarding the FDI policy of Multi-Brand Retail Trading. After the FDI in retail has got the green signal, many single brand retailers are showing interest to invest in India. But the multi-brand retail trading is still deeming as most are still unknown to the rules.

To clear the confusion DIPP answered the queries and also published a document regarding this. We’ve compiled some of the major queries and their answers here –

Issue - 30% sourcing from Small and Medium Enterprises  

Question - Can the Foreign Investor purchase the 30% of the total procurement of manufactured or processed goods by the SME but distribute them either through the retail operation and/ or cash & carry operations and/ or export for the Foreign Investor’s International retail & trading operations?

Answer - No. The 30% sourcing will be reckoned only with reference to the front end store. As such a Multi-brand retailing entity cannot engage in any other form of distribution.

Issue - 50% investment in back-end infrastructure

Question - Can the new retail entity to be set up acquire supply chain/back-end assets or stake from an existing company having such assets and will such assets /stake values be counted towards the back-end investment requirement?

Answer - No. Entire investment in back-end infrastructure has to be an additionality. The entity can invest only in greenfield assets and it will not be possible to acquire supply/chain/backend assets or stakes from an existing entity

Question - Whether investment in back-end infrastructure for instance for storage, warehouses, agricultural produce infrastructure in non-FDI approved states will be counted towards investment in back-end infrastructure.

Answer - FDI in these activities is already allowed throughout the country. As far as MBRT is concerned FDI in non-FDI approved States in back-end infrastructure will be counted provided it is additionality.

Question - Will the new retail entity include back-end facilities that have the capacity to supply its own businesses and other businesses? It should be free to supply back-end services (e.g. logistic supply, goods) to related or third party companies, including but not limited to the company’s existing wholesale entity and the retail franchisee operated by its partners.

Answer - As per the conditions for wholesale cash & carry trading, such an entity is not permitted to undertake retailing of any form. Therefore, both the businesses have to be kept separate through different entities. As regards supplies by MBRT company to franchisees run by its partners, it is clarified that the policy envisages multi-brand trading in retail. The MBRT entity is not envisaged to undertake wholesale activity i.e. B2B. The front-end stores set up by MBRT entity will have to be ‘company owned and company operated’ only.

Question - Would a company operating in wholesale trading/ cash & carry trading be considered as a company providing back-end infrastructure in efficiently distributing the goods to the small retailers and professional/ business users?

Answer - No. The wholesale trading/ cash & carry trading cannot be considered to be providing back-end infrastructure. FDI in MBRT will require fresh investment in back-end infrastructure.

Investment in Front-end / back-end infrastructure

Question - If the same foreign investor is an investor in various companies for logistics, services etc., will the back-end investment made by such investor be aggregated?

Answer - No. Investments in multiple infrastructure companies would not be counted towards fulfillment of condition of investing 50% in the back end infrastructure.

Policy on E-commerce

Question - Allowing online sales will enable the Company to better serve Indian customers through enhanced convenience and assortment as well as improve the site customer experience. This will allow the company to make significant investments in Logistics.

Answer - Multi-brand retail trading by way of e-commerce is not permitted.

Investment in greenfield or brownfield front-end entities

Question - Can the minimum investment of US$ 100 Million be used to acquire existing retail stores or setting up new retail stores or a combination of both?

Answer - 50% of the investments brought in, must be invested in back-end infrastructure, and any amount spent in acquiring front end retail stores would not be counted towards back-end infrastructure. The front-end retail stores must also be set up as additionality and not through acquisition of existing stores.

As per the reports, there are some other issues which are still under consideration by DIPP and soon will be notified to the investors or stakeholders. For more information, download the full document from DIPP site here .

Image Courtesy - TheHinduBusinessOnline.com

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Nine CEOs Who Are Stripped Off From Their Thrones

The recent CEO calamity has again warmed up the discussion about judging the ability of CEOs of major corporations. The founders’ traits are the most important pillar of a company and its reputation and as one of the Professors of University of Tennessee says – monopoly "can lead to behavior that is inappropriate."

We brought you the stories of some such CEO, who are stripped off from their thrones due to some such traits. Ok! Let’s start with the recent ones –

Phaneesh Murthy, iGate – The news is still afresh in most media channels as the former CEO of iGate is being trialed for sexual harassment case in iGate. Phaneesh Murthy, an IIT-IIM alumni and an Indian tech businessman, had grown into one of the eminent personalities of International Tech industry. But with the harassment case on neck, he is now stripped off from the CEO position.

Fall of China’s Sun King Shi Zhengrong – Founder of China’s largest solar-power maker Suntech Power Holdings Co Ltd, Shi Zhengrong, also known as the Sun King of China, had a tough 2013 when he was been forced by Suntech Board to step down from CEO post. Suntech has a debt of US $2.2 Billion debt and recently filed Bankruptcy protection.

Carol Bartz, Yahoo – After been assigned the CEO of Yahoo, Carol applied the cost-cutting approach and some new direct approaches in work. The implements were seemed right but risky and predicted the destruction of Yahoo. Even Carol promised that Yahoo will revive and needs a bit of time; Yahoo never regained its popularity during her tenure. At last she was fired from her post.

John Browne, British Petroleum – A famous name in Britain, John Browne was insisted into the CEO post of BP to mark the ‘green’ energy brand. John Browne was forced to stand down from CEO position after the allegations about his relationship with his male partner and of misusing the company funds. While it was previously state that he will resign from his post in 2008, he was forced to resign in 2007 after his romantic life got public in newspapers.

Leo Apotheker, Hewlett Packard – Even failing at SAP with strategic decisions, Apotheker had been appointed as CEO of HP in a crunchy condition. HP’s fate never changed under Apothker and its stock value declined by 40% during his tenure. At last he was forced to resign and replaced by ebay’s Meg White.

Harry Stonecipher, Boeing Co – Surrounded with many scandals from its previous employment, Harry joined Boeing Co. giving up his retirement life. Under his tenure Boeing Co. did see good days, but his relationship with a Boeing employee had shown him the way out. Boeing Board directors requested him to resign in 2005.

Mark Hurd, HP – After his relations with TV reality actress Jodie Fisher were public, the then Hewlett Packard CEO Mark Hurd was voted to left the position and the company. The decision has been criticized by many, as Mark Hurd was the finest CEO for HP and revived it in short period.

Kenneth R. Melani, Highmark – One of the finest and powerful health insurance executives in USA, Kenneth has been terminated from the position of CEo of Highmark, due to the allegations of domestic dispute and criminal trespass. After Kenneth left the company, the credit rating of Highmark declined drastically.

Richard Grasso – Former New York Stock Exchange (NYSE) CEO Richard Grasso resigned under the pressure of the then New York government. He had been forced to resign from his position in the allegations of $140 million NYSE compensation pay package controversy.

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Smartphone is a Necessity?

Economics teaches ‘human wants are unlimited and one want is satiable’. Is this definition about wants fit into the modern Smartphone market? Are the users are happy with one Smartphone of late? Technology has been taking a big leap into revolution that is likely to change the lifestyle of civilization in coming days.

There are many smart phones are available in the market leaving consumers in a puzzle over their preference. All the gadgets have unique features to attract their consumers and provide them the best user experience. Users do like the many features combinations in a single handset.

The common and basic features like GPRS, GPS, Bluetooth, USB adaptability are with the even ordinary or common mobile phones today, what makes the Smartphone so special about?

Of course, the phone is being primarily considered for voice call, which is the basic operation of the product since it is invented. Do the development of next generation Smartphone changed the basic requirement concept?

The basic requirements of mobile users have been changed with the advancement of the mobile technology or the software that enables the phone to function. Users might not take the phone by paying huge price – only to make calls from that costly gadget. They look for special features in that which could make them more production and stay connected with their profession as well.

No doubt that the latest gadgets have been helping the younger generation more productive and active and the market have been transforming into giant market that was never experience before. And the Smartphone has been a part and parcel of life for the users having big responsibilities.

And the fact also can’t be denied that some of the other users do have these for only fun. That was event from the Blackberry advertisement – we do chat, we do mail …… blah…. blah…

Technology has been changing and shaping our life, and the role of smartphone is minimal, which seem to be become a necessity for all the users irrespective of their status and age.

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Is advertising helping business and economy?

The core objective of advertising is the sale or earns major profit for company. When it comes to the interest of the economy, the advertising has indirect impact on the economy. Obviously, it has been helping the economy in form of multiple taxes, the company pay, customers pay, and traders pay as excise tax.

In a capitalist economy, the scope of advertising would be vast, where are in a mixed economy it could be less than that. But the word ‘globalization’ has somehow changed the meaning of the classifications of the economies.

Many countries in the world have free trade and protection – foreign trade policy, keeping the interest of their companies and industries. However, in the peak age of globalization, no economy could survive without entering into foreign trade tie-ups.

Coming back to the industries and companies, the advertising cost is the input for a cause that educates consumers and sales brand. In India, the television advertising is pegged at Rs.13,000 crore and its it’s huge amount if the whole GDP is taken into consideration.

A government welfare scheme is incurred around as much as amount to reach the people or bring them under the cover the policy. Companies do spend more and more on adversiting to reach vast customers, the input later could be turned into sales.

No doubt that a economy is being boosted by the companies and their advertisement. The arena of advertising is also helping in job creation, which is one the path of the sustainable development for economy.

The correlation of advertising industry is with many multiple industries like – entertainment industry, television industry, media and moreover it could a umbrella shape of service that provides to all and cover all.

Advertising agencies have been delivering the best services to their clients through their creativity, which the customers do like always. Just imagine, a television show without ads would be just boring and new advertisements do add glamour into the programme.

In order to make the companies more successful, consumers need to give their support to the advertisements, which would ultimately help the business and economy.

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The see-saw game of Gold and its Buyers

By Jyoti Parida

Gold (graceful oldest luxury on demand) what we can say more about it is one the most beautiful gifts from nature to us. It can be also known as a luxury good. This yellow metal which was touching the sky a few days before has come down to become a part of jewelry for a common man. The gold has chosen a right time for its lovers because of the marriage season and the auspicious Akshay Tritia( occasion for buying gold) is ahead.

The going down prices of yellow metal can lead loss or profit to the companies. The gold loan companies & the buyers who have purchased before will have to bear the loss and the buyers who are purchasing now will gain profit. Experts are giving their own views like Gold in India is also expected to go up due to physical demand & others say it will touch 25000 per 10gms. But nothing is sure now, just we have to wait for tomorrow.

India is the world’s largest single consumer of gold, as Indians buy about 25% of the world’s gold, purchasing approximately 800 tons of gold every year; mostly for jewelry. The falling prices of the metal have grown the eagerness of the Indian buyers more and more. When the gold prices were high the no. of its buyers was low and now it has become vice-versa. Let’s wait and watch the game and also who maintains to remain still, on the higher or lower side.

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How to Gauge Success in Business?

Success in the ultimate goal in Business and for a businessmen it is the highest achievements for the efforts made into standing it in the market. But the many fail to gauge their success, since they look for the others' opinion or ranking.

In business, it is not always the fun way to cut the piece of profit cake. And the road it tougher as your business expands. The four factors for business - Land, Labor, Capital and Organization, are not enough to make it a successful.

The fifth factor is most i.e., attitude and passion for it. The efforts of the business from the owners are more important than the resources he/she has for the business. Strong will power and passion to carry the work to upper level, believing as "Sky is the only Limit".

Coming to the point of gauging the success, the benchmark may be differ from business to business or person to person. But the basic thing, that need to be keep in mind that, the utilization of resources to get the profit in business.

No matter what the business size you have or capitalization it requires. The definition of success should be not based on others point of view. The businessmen should know and feel the growth the business individually other than any review or opinion on the business.

Best way to gauge the success in business is to monitor your performance, make the changes as the situation requires. If the input costs are going up, no need to worry, aim for the best quality production or productivity, it will compensate the loss in long-run.

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Your Happiness Lies in Others Happiness

If you want happiness for an hour – take a nap
If you want happiness for a day – go fishing
If you want happiness for a month – get married
If you want happiness for a year – inherit a fortune
If you want happiness for a lifetime – help others

- Chinese Proverb

Along with time all human minds have changed to an extent where in we are hardly thinking of anyone else, except our self and our family. We are always thinking of the ways as to how we can be benefitted by the other person, or how we can make use of the other person.

Hardly ever we think of a reason as to how we can help others and how we can add value to the life of others. We hardly think as to how using my resources I can help this person progress. We all have goals to achieve professional and personal and we are always worried as to how we can achieve them.

But some where being carried away by these thoughts we are forgetting the fact that, as social beings we have a duty towards others also to help them with their goals and dreams in life. If we study the life of successful people, on their way to personal success they also helped other people progress either as a person or in their profession.

They never waited for a time when they will attain name, fame and stature to help others in their way to progress. Along with working on their own success they made sure that there were there for others who needed them.

This is a lesson we all need to learn from those people, real success, and real happiness lies in helping others progress and achieve success. Any fool can work for his own prosperity and happiness but it takes a man of character and value to think of others progress as well.

So, if we want to be happy always under all circumstances in life shift your thinking from I to you. See how you can keep the people around you happy and prosper and add value to others life, because this is how you add value to your own life.

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Know that ‘You’ have ‘Your Own Value’

When it comes to success and worth most of us make this mistake of comparing ourselves with others people who are more successful and have more net worth than. It is then that depression starts creeping into our mind, comparison is always good fi you take it in a positive way but it should not lead to self criticism.

First thing we should all remember is that everything every being in this creation has its own value and worth. Every human is unique and has his own talent which no one else can replace. We may encounter people who make criticize us, look down on us make us feel worth less. But remember one thing their criticism will not lessen your value and worth; you are still what you are.

Take for example a thousand rupees note, even if you crush the note, or dip it in water, it will still retain its value, you can still make use of it. No one will stop using it because it is crushed, because it still has its own value which no one can take away. No matter what others say about us or no matter how others feel about us we as individual humans have our own value and worth which no one can steal away from us.

So, never let this thought come to your mind that there are so many people who are more worthy than me more talented than me. Yes there will always be people who are better talented than you and less talented than you, but remember ‘there is only one you’.

You as a person are unique in your own thinking and talent and no one can replace you in that matter, so, move ahead with confidence in whatever work you do and give your best.

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E-Mail Etiquette and its importance

In this age of messaging in short cuts, any one is hardly bothered about e-mail etiquette. If I am not wrong most of the people wonder if there is any such thing as e-mail etiquette. Because we are so used to informal way of communication and shortcuts that we hardly care about this.

Right from students who communicate with their pals and guides, to business people most of us are only concerned with time. Hardly anyone has time to bother about e-mail etiquette. But it does play a very important role when it comes to business communication and formal communication. The way you compose your mail and communicate reveals a lot about the importance you give to the other person and how much you value them.

The first and very important thing you should keep in mind is you should always sound polite, but not arrogant or careless in your address or communication with the other person. The fact you should never forget while composing a mail is that you should never be too short or too lengthy.

Some people never come to the point they just beat around the bush wasting a lot of time on the other hand there are people who use shortcut words and minimum not bothering to show respect to the other. Both the approaches are not good you should try to be moderate and to the point. In formal communication you should never use short cut words like you use in messaging, this conveys a very wrong impression.

Short messaging may be good when you are communicating with your buddies and pals, but not in professional mails. Just because you are writing an e-mail doesn’t mean that we are allowed to write spelling and grammar mistakes. So, always check to make sure that there are no grammar mistakes. Because the way you compose your mail says who and what kind of person you are. So, next time you compose a mail make sure you have maintained e-mail etiquette.

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Does Pressure motivate or demotivate?

As humans we all experience pressure in our life, either in personal or professional or both. Some people, who are more successful and greater in life when compared to others, turn pressure into strength. While for most of the other people it is a thing which pulls them even more down and takes away all the strength.

Cricket a game that most people love in India, in that game we see that when a team is under pressure to achieve its target. Some of the players do extremely well, they handle pressure and live up to the expectations of the team and achieve their goal. While in the same team there will be some other players when under pressure cannot give even normal or average performance.

These are the kind of people who cannot give their best when under pressure. The same applies in our life also whether professional or personal. People, who can handle challenges and pressure, can think rightly even in that times are the people who have learnt how to turn pressure into a positive strength. These are the people who will see success in any field they are and in every aspect of their life.

There are majority of people who under pressure get demotivated get all kinds of negative thoughts and just with draw from life. If we study the life of all great and successful people there is only one difference between them and us. That is they have faced challenges and learn to withstand them learnt lessons that they needed to and they bounced back into life with more enthusiasm.

If we also learn to take pressure in a positive way, you will feel happy that you have a chance to prove yourself because of that situation. If everything is smooth what is the difference between you and others. If you are to prove yourself better than anyone else you have to do that which others have not done. Pressure gives you such a chance to prove who you are and what your skills are.

So, next time when you are faced with pressure try and turn it into your favour instead of thinking it in negative terms.

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Personal responsibility leads to Success

Most of the people spend time criticizing their circumstances, situations, persons or even God responsible for their misery and unhappiness. But the point they miss out is that, no one is responsible for either your success or for your failure there are people who have come out of hell like situations in life and yet could prove themselves as exemplary persons.

Take for example lotus, though it derives its life from the mud underneath it remains totally unattached to it and blossoms beautifully remaining untouched by the mud. I believe that it is the best example we can ever take. It doesn’t blame the mud or the dirty surroundings, and it gives no excuses it continues to have its own entity though living there.

We should learn that quality from lotus; we should not keep blaming our parents, friends or circumstances and fate for where we are. Instead we should assume and take up the personal responsibility to correct and our own lives and shape it the way we want.

When you take up the responsibility for changing yourself and your life you will see that life becomes easy and you become more confident about what your life holds for you. As long as you wait for the circumstances to change and people to change so that you can go on the path of success easily remember it is not going to happen.

So, if you want to go on the path of success, be accountable to your own self. What did I do today to better myself personally and professionally, did I learn a new skill or have I improved in my behavior. As long as you keep asking these questions to yourself you will keep improving in all aspects of your life.

Taking responsibility onto yourself in all aspects of your life, in everything right from your health to inner development is the only key to open the doors of success. So, if you want to see success accept responsibility of improving yourself in all aspects and keep working till you realize your dreams.

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Seven useful lessons for Life

Life is journey where we go through so many ways some smooth, some hard, some rocky, hardly aware of what awaits us at the next turn, full of adventure and surprise. And in this journey time will teach us some valuable lessons which we need to learn to run our life smoothly. Some people are smart enough to learn these lessons by seeing others life hearing them and reading about them and some like experimenting with their own lives.

No one’s life is same nor situations and lessons learned, but there are some common things that every one of us needs to know about life. Below mentioned are some of the very important lessons that many great people and successful people have learned in life and have passed them on to us so that we can make our life easy, by learning from them. Let us look at those very important lessons.

1) No one is perfect in this world, everyone has his own strengths and weaknesses, so if you want to lead a happy life always look for what is good in others.

2) Always try to increase the number of friends and if possible never try to make enemies with anyone.

3) Don’t talk money matters with people. If you have, don’t talk; if you don’t have, also don’t talk.

4) Keep your feet on the ground; it is good to have dreams and keep working till you achieve them, but never miss out on reality.

5) As you receive from others make sure that you also give back to others. Either love or gifts or just anything; it should be a two way process. Don’t just spend your life taking from people. Try to experience the joy in giving.

6) Life slips out of our hand just like that even before you know. So try to spend in peace and happiness each moment. Don’t waste time thinking of past or future. Live in present and let others live the moment with you.

7) Above everything else keep your faith in God and lead life in the way he intended you to live. If there is one eternal companion in our life, it is God himself. So never ever leave him; always love him for everything that he has blessed you with.

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