Work under progress_india_basic_econ

Rudimentary
Economic Analytics:
A Chapter on India
An Introductory Essay: Simple Prespective

Anil Sharma
Rudimentary Economic Analytics: A Chapter on India
An Introductory Essay: Simple Prespective
2018 Temple version 0.1
Free culture licence: Because loving is sharing!
Creative Commons Attribution 4.0
International License
E-mail: sharma_anil yahoo.com
Web: https://www.linkedin.com/in/anil-sharma-592754/
The book was created using free and open-source software:
• LibreOffice – typesetting (Simple book template from
LibreOffice extensions)
• Ubuntu GNU/Linux – operating system
• PT Serif – font family
The content has not been subjected to linguistic revision.
Self-Published
ISBN xxx-x-xx-xxxxxx-0

Contents
Chapter 1: Country Development .........................1
Introduction ......................................................................2
(1)Major Policy Changes Post Independence ...................5
Baseline Growth ...............................................................6
Education and Rural Development Initiatives ...................6
(1)Five Year Plans: Major Focus Areas ...........................10
Technology Infrastructure ...............................................12
Education Quality ...........................................................18
Global Job Markets .........................................................22
Business and Lifestyle ....................................................26
Employment ...................................................................30
Society and Culture .........................................................37
Political and Economic Thinking ....................................39
Foreign Relationships .....................................................45
Chapter 2: Rapid Urbanization ..........................53
Introduction ....................................................................54
Human resource growth ..................................................68
Peak of new mighty “middle class” ................................78
Controlled rapid urbanization .........................................83
Broad employment ..........................................................88
“One Country” approach ................................................92
Confused nation ..............................................................95
........................................................................................99
Brand new industries‘ setup ..........................................100
Internationalization: 1990 and 2010 ..............................104
Weeknesses and threats .................................................112
Strengths and opportunities ...........................................116

Chapter 3: Alarming population growth & global avenues
.........................................................................................cxxxiii
Trends ...........................................................................134
New US Population regional mix (1980-2020 trending)
..............................................................................................160
Chapter 4: United Nations Support in
Development Program ......................................167
Introduction ..................................................................168
Chapter 5: Media’s Role ...................................210
Introduction ..................................................................211
Introduction ..................................................................226
Global Infrastructure .....................................................252
Conclusion ..................................................cclxxviii
Long Road ....................................................................279

Chapter 1: Country
Development

Introduction
“Give me long enough lever, a fulcrum and a place to stand (3
items) and I would move the earth.”
–----- Archimedes
But it’s hypothetically not possible. So no Sir you can’t. Try
calculating the length of the lever that you would need and it
would come out to be longer than the Milky Way. There is no
such “Lever”. However, there are other ways though. “Apollo”
The Greek God carries it on his back. Or you can take a flight in
“Apollo 11” and land on moon. Once you are on moon, you
would see earth out there in space in front of you. It would
practically move in front of you from day to night. You can look
at it completing its rotation around Sun moving from “Sunrise”
to “Sunset”. So you should just need one item not 3 “a ticket to
moon” in Apollo space flight. If you don’t believe me ask Neil
Armstrong and Edwin Buzz Aldrin about their experience of
seeing Earth moving in front of them.
–------ Anonymous
India has gone through very rapid phase of political,
social, economic and infrastructure development post
independence. Last 70 years of development can be
summarized at very high level in some of these macro level
numbers:
1. Move from most of the international trade through
Britain to now many independent trade partners in west
and in east
2. From 20% Urban to almost 50% Urban over 70 years
3. From single digits top arts and science education
institutes to 100s of good international class education
centers
2

4. Middle class size from 10% to ~40%
5. From “congress” centric one color politics to now 5-6
major “thematic” parties in multi-party political system
But our talk on rapid development phase of last half a
century wouldn’t be complete without discussion about last
two century’s different models of towns, cities and urban
centers’ development throughout country. India mostly had a
village-economy pre-Muslim period. With win over most of
north India, Muslim invaders and rulers got this internal
confidence of making northern parts their permanent home
while still working on building even bigger empire in South
Asia. Start of city, towns, army cantonments and urban living
centers build-out was the result. Since locals considered
Muslims “foreign rulers” for most of the period of their rule
over India, living safety and security along with fully contained
city design with isolated education, health and retail
infrastructure stayed key architecture theme in towns like Agra,
Delhi and Sikandrabad.
Same was also true about British rule period
afterwards. However army class “forting” requirements were
not so stringent because of around 200 years of foreign armies
rule over area and development of some co-culture over 300
years. Hence British era urban development in India had more
investment in business, government, heath and education
sectors and did not carry Muslim theme of retail and
fortification/army infrastructure development to that an extent
India went through globalization and internationalization to an
extent during British period because of opening up and
3

availability of worldwide shipping routes and hence shipping
town buildup also happened during that period along with
international relationship development with west and far east
both.
Post independence changes: could not have been
simple. Moving to “Indigenous Indian Government“ with full
and independent budgets of its own was not a smooth sailing
because of Britishers’ hugh international class investment in
business infrastructure and international workforce
development pre-independence in efforts such as talent
development, home industry, science and technology
partnerships, modernization of education system, formal army
education system, healthcare, electricity and rural economy
support efforts etc. This mode of development had significant
effects on “urban” make up of now very different looking
country.
However astute post independence central government
leadership that could match and bridge British managers and
leaders skill-sets and could smoothly take over control and
management of the about 100s of years of “new world”
developments over very small period of time between 1950 to
1970 was somehow luckily present and was available for
leading. In last 70 years though, India has tried and tested
many different development models along with the help of
different international partners and of-course with varied
results. Here is the summary of some of these efforts:
4

(1) Major Policy Changes Post Independence
1951-1970: Social & Grass root development bias: Core
infrastructure development – education (IIT, Med.
Universities), energy, railway, central govt. & industry:
Nationalist movement still alive
1970-1995: Pro-poor Socialist bias: Subsidies, Food
security, Swadeshi, Family Planning, Girl Child; Russia bias
1995-2010: Populist and modernization, privatization bias:
Software, IT, Telecom, Computing, Media, English; US bias
2010: Long-term structural change and globalization: Shift
towards heavy investment in water, energy and urban fixed
infra, rural development; Europe bias
5

Baseline Growth
Education and Rural Development Initiatives
There was significant investment in education
infrastructure, dams and electricity distribution network build
up during 1950 to 1970 period as post independence congress
government focused on rural development and food
independence as core theme of nation building on the lines of
other newly freed countries. Rural connectivity improvement
through road construction and Food Corporation of India
network build out for collection and distribution of food and
other basic house hold ration needs was another significant
investment by central government led country development
efforts.
Takeover of services that British government started in
infrastructure creation, post and telegraph services, army,
railway and banking sectors was herculean task as well. Skill-
set ramp up and new hiring on vacant posts along with further
expansion of services was important goal for the central
government and state rules.
Education sector focus on the best higher-end tertiary
education was major theme for first two decades. Attrition
management in top end bureaucrats, engineers and doctors jobs
in local and foreign mission services and talent hiring for
army’s engineering and medical services cadres for fulfilling
jobs being vacated by returning Britishers was another big
challenge and so was upkeep of international standard grade
6

services in top ranks. A number of new education institutes
were created during this period. Here are some stats:
 No. of IITs: From 5 in 1960s to 20+ now
 No of IIM: From 5 in 1970s to 20+ now
 No of Top Meds: From 10 in 1970s to 30+ now
Management of cities’ growth was another major
challenge which was tamed through planned and proper
urbanization efforts at all levels whether public or private.
Some examples newly urbanized cities in post independence
mode since 1980s are NCR, Bangalore and Navi Mumbai.
Urbanization wave in developing new economies was not an
isolated happening in India though. Here are some stats on
urbanization in new big economies:
China: 60% Add (Anyone? Is wel comed, hourly rate job
mentality) From 10% in 1950s to 70% now
India: 30% Add (Top quality, Skill, Higher education route)
From 20% in 1950s to 50% now
US: 20% Add (Last Mile, now who?, testing limits) From 65%
in 1950s to 85% now
However at this point, all of these three urbanization
waves are reaching limits in their prevalent mode of
developing and that is happing almost at the same time for at
least these three but because of very different reasons unique to
these three different places as follows:
China: Human resource development hurdles and
whose/which country’s factory now onwards? Problem
India: 20 countries in it with their own cultures, personal
7

personas and “rural economy needs of theirs“ in all of those
countries (2% each, Max. urbanization probably would hit limit
at 65% in current model as further-ment would need breaking
through cultural and regional silos present since last 2000
years.)
US: In some case reverse migration might be a better option:
rural industry focus over high end urban corporate jobs focus
might help (competition for fit in high-end skillset urban jobs
not sustainable for many newly urbanized resources)
Results out of some of the big efforts around India’s
urbanization are not poor though. Indian talent thrives in new
world of global services and outsourcing industry that is now
making its home in India’s corporate corridors. India’s
education institutes’ global rankings have improved over years.
Following data would support our argument:
IIT, IIMs and med schools rankings
Top IITs can be ranked:
• In Asia (Top 50)
• English speaking world (Top 100)
• Worldwide (Top 150)
Top IIMs can be ranked:
• In Asia (Top 100)
• English speaking world (Top 500): English as business
language throughout world so non-English rankings
hardly matters
Top 10 medical colleges out of India compete well in top 200
global medical colleges’ category.
International relationship has improved over years.
Export-import links, global products and media growth in
8

home markets and education destination/relationships have
helped growth of new international class cities. New global
hubs’ (*New Metros Bangalore, Ahmedabad, Hydrabad, Pune)
international quality ranks them in top metros in world today.
List of new very good choices for international relationships
for business and other connections at all levels have added
Korea, Singapore/Hong Kong, Nordic and Dutch region,
Australia in its folds.
Since independence countries’ five year plans have
provided additional investment help for new
industry/infrastructure development initiatives. Five year plans’
targeted funding has not only helped but augmented sustained
development and growth initiatives in all the mentioned
developing sectors when needed.
Historical charting of focused growth through five year
plans is as follows:
(1) Five Year Plans: Major Focus Areas
1)1951–1956: Many new irrigation projects/Dams such as
Bhakra, Hirakud, Mettur, Damodar Valley and Establishment
of five IITs
2)1956–1961: Multiple new irrigation projects/Dams:
Bhilai, Durgapur, Rourkela, Establishment ofAirports and hubs
Tata Institute of Fundamental Research and Atomic Energy
Commission of India
3)1961–1966: Education infrastructure development, Focus
on cement and fertilizer sectors and more irrigation
projects/Dams
4)1969–1974: Nationalization of banks, Green revolution,
Nuclear power
9

5)1974–1980: (+rolling) Defense Self-reliance,
Employment generation, Poverty alleviation, Improved judicial
system and focus on Power, Transportation and Tourism
6)1980–1985: Economic liberalization, Rural development,
Population control (Economic growth rate >5% first time ever
in India’s history)
7)1985–1990: Focus on technology sector and per capita
income growth, Social upliftment, economic productivity
improvement, improved access to food and energy, Agri-
business advancements, Monitor balance of trade, growth rate
and inflation
8)1992–1997: Liberalization, Privatization, Globalization
(1991 UN reforms)
9)1997–2002: Focus on IT, Telecom, Railways, Electricity
10)2002–2007: Focus on IT, Education
11)2007–2012: Focus on IT, Education and Services
sectors
12)2012–2017: New focus Water, Education. Banking,
Nutrition & Electricity sectors
10

Technology Infrastructure
Heavy Industry, Swadeshi Products,
Global Services
Structural infrastructure development had been top
priority for Government of India since last few decades. Focus
has shifted from IT, telecom, software and Finance/Banking
sector to creation of sustainable and long term fixed infra for
bulging middle class folds. Smoothening out of middle class
bulge is going to be another top priority as overall rapid
urbanization theme that had taken India by storm in last 3
decades would fade out (25% urbanization in 35 year only
second to China at 40% urbanization in same period) .
For now, India is almost fully urbanized for its current
state of development at around 50% level. India being a
country of countries can’t afford more than 60% urbanization
without cultural and social stress (*Approximately 20 cultural-
societies groups/mini-countries and rural economy population
need at around 2% for each). As focus would shift from rapid
urbanization to separate rural development and urban
development programs, effect of it would be visible in growth
rates of currently developing industries such media, telecom,
office tech, computing, energy infra, roads, baseline economic
support infra and railway. This is already so visible in
following 2018 central government budget investment
numbers:
2018-19: $700B for energy: solar, wind, green-tech
$100B for infra
$50B in smart cities and railway
11

$1.5B for telecom
There had been significant focus on telecommunication
and science & technology development efforts in last 30 years
pre 2010. Results show up in progress data now. North India
almost matches Western world in tele-density (top 10 cities in
teledensity in India: 7 north Indian cities out of 10).
Countrywide tele-density has also improved from 1% in 80s to
30% now. Level of investment in science and technology is
also kept low at $2B as there had been huge investment in this
area in past.
There is significant talent/resource working in this area
now and their research efforts output should now start self
funding developments. Here are some examples of past 3
decades’ constant high investment in science and technology
(big growth is expected out of internal business growth now
from these/associated tech sector efforts):
 ITI
 DRDO
 CDOT/CDAC
 CMC
Indian engineering talent contributed handsomely in
the growth of computing, communication and software
industries growth worldwide. At global levels India
participated in following big technology plays.
1. Computing and telecommunication industry leadership
move from UK to US as its main center: sourced high-
end manpower from developing countries (BRIC)
2. Growth of electronics industry in last 40 years eg.
Constantly improving Intel microprocessors product
12

line-up 4004, 8008, 8080, 8085, 8086, 80286, 80386,
80486, Pentium, Core-series, Analog and digital
electronics, signal processing, memory, interfaces
cards, communication systems, design tools eg. P-
Spice, Matlab, GNU tools etc Success of electronics
industry/Intel/AMD/SUN and other SF bay area
companies’ leadership (mentionable contribution):
Andy Grove, Gorden Moore, Robert Noyce, Bill
Monday, Federico Faggin, Jack Kilby, Ted Hoff, Jeff
Hobbs, Seymour Cray, Paul Otellini, Andy
Bechtolshim; Sony and Samsung’s success in
consumer electronics
3. Software & Computing industries’ leadership success
over same 4 decades: Leaders like Paul Allen, Larry
Ellison, Bill Joy, Ed Roberts, William Yates , Bill
Gates, Steve Jobs, Steve Wozniak provided direction at
all major inflection points.
As a software and electronics engineering student and
working professional, I have also rode this wave of computing
and electronics engineering technology growth. I have learned
programming languages like Basic, Pascal, Fortran, SHELL,
Python, Perl, C/Borland-C/Unix-C/MS-C/Cray-C/SGI-C over
years and have used software engineering principles such as
modules, components, APIs, Interfaces, system libs, includes,
compliers etc on many platforms and in architecture design.
Alongside learning in operating systems world around Unix,
OS/2, DOS/Windows, IRIS, Cray/Unix, Solaris and later
Linux, multiple networking operating systems and embedded
systems came handy during my career of 20 plus years in
software development and management.
13

My 10 years of PC skills learning with Microsoft
technologies starting at age 15 and ran till 25. Those leanings
have always helped me in professional delivery of my work
products. Here is my learning lineup in MS technologies:
• 1989 DOS/Lotus
• 1990 BASIC programming
• 1993 MS-World
• 1994 MS-Power-point
• 1995 Borland-C/VS and codecs
• 1998 MS-SQL ad IIS Server
• 1999 IE/Networking Stack, Interop with other OSes,
TCP-IP/Ethernet
• 2000 Powershell programming, Java support on IE,
Remote Admin, Remote Mgmt
Other big happening in same period of last 30 years is
start of sourcing of high tech work from developing world.
Outsourcing industries growth resulted in growth of companies
like Wipro, Infosys, HCL in India and now their sign rivals the
size of big techs in US. Talent developed by growing Indian
software and electronics industry has created a big base of
around 2 million first generation immigrants in US.
India took 70% share of H1s or 35000 H1s year for
almost 25 years. At around 30 years of age of the US H1
program, generated jobs base is expected to create normal 2-
3% retirement/attrition. Careful management of that attrition
can provide enough of job market for 35000 new H1 entrants
every year. There are few problems though which could affect
foreign jobs and outsourcing industry/H1B base:
14

A) Price competition affects whole bases’ current earnings
as price drops would affect everyone in existing base
and if size of new business is not good enough, overall
result is going to be a loss preposition. Gains even if
they are very thinly spread over 2M base would result
in big aggregate. Small new job addition would
probably not impact overall incremental number and
since India is already considered very aggressive in
outsourcing at cheap cost, more business development
in this mode might destroy image. It should give better
share of new business development to other participant
countries in H1 program job market and stay away
from price competition. It may get some share in new
jobs created by other participants and it would not
affect the payout it generates on its base. India might
even get favorable treatment as consultant to other H1
program participants as increase in 30% share of rest
of world (low) base would be supported by even US
and as consultant it could command better returns.
B) Improve bases’ earning potential/skill-set improvement
as even if it is small improvement it would be good for
all of India base. It should only go after unaddressed
and high end skills market with base protection and
focus on skill-set valuation increase. Competition for
rate per hour is something that wouldn’t favor big base
participant. Move towards management, consulting
and other big ticket skill-sets would.
15

Education Quality
Primary and secondary education
Since its independence India focused on quality of
Tertiary education in all fields whether it was engineering,
medicine, business or research as it was needed for pre-
established international bureaucratic and government links. In
1980s, because of start of international relationship at all levels
in society out of export-import global links, introduction of
global products, media in home market, greater sports
involvement at international levels along-with involvement in
cultural and social integration programs, need for better
connectivity of people at all levels in society created
requirements for at par education in primary and secondary
schools as well.
International standard education that would create
understanding of liberalization, internationalization
globalization theme is also must for a truly open economy and
world job markets participation.
Global and private sector international job market
participation has put-in a significant restriction and had
identified upgrade requirements needed in education quality.
As in work groups a pseudo benchmarking happens between
individuals from all participating countries and cultures when
workers work in international and global job markets.
Multidimensional education provides opportunity for
new associations with better social networks and helps in
gaining edge through hobbies, cultural participations and sports
16

connectivity. Some academic activities are also needed for
better and balanced/healthy physical, mental and psychological
growth. The core skill-set development at young age helps
individual cop life’s challenges better and helps in working
well with everyone in harmonious way. In my education
program I went through following trainings or special
education programs and my leanings through those efforts have
always helped me deal well with everyone:
Multi-Dimensional education
 6th
standard Music
 7th
standard Drawing
 8th
standard Interviewing and viva-voce
 9th
standard Economics
 10th
standard Entrepreneurship
 11th
standard Computers
 12th
standard Extra mile efforts
Along with depth of curriculum, a good personality
development programs helps development of better and more
sociable human. Following could be good focus areas for all
round academic program when it comes to personality
attributes development:
Inculcate core skills such as:
 Development of patriotism
 Development of politics and economics involvement
ability
 Development of sports and team spirit ability
 Development of social inclusiveness
 Development of utmost care and hospitality
17

 Development of health focus
 Development of volunteerism and leading ability
Communication skills development is also important,
especially when a person plans to work in international and
global careers. Different types of jobs would put out needs for
different types and different levels of communication skills
development requirements.
Here is an example scale for measurement of
communication skills development in an individual (In some
jobs you might have to use all types of communication skills).
Brain development and skills:
For example communication skills categories:
Ability Brain Part Type Use Examples
Working
memory
talkers
Frontal or
temporal
cortex
Talk-a-
lot
Chit-chat Morning shows
“EL crooker”,
TV talk shows
Procedura
l memory
talkers
Basal
ganglia and
cerebellum
Speed
talkers
Demos,
Lab,
Process
Sanjeev Kapoor,
DIY program
hosts
Short-
term
memory
talkers
Prefrontal
cortex
Stage
talkers
Presentati
on
Sales jobs, Qtrly
reporting
Long term
memory
talkers
Hippocampu
s neocortex
and
amygdala
Spatial
talkers
Story-
telling,
Teaching,
Training
Julian Tresures,
Steve Jobs
Cluster analysis ideas:
18

1. Communication skills (No. of word clusters from various
subject matters and language areas)
2. Brain development cluster analysis (active parts of brain and
parts used in your work, pricing for brain part use i.e. back of
the brain use "hippocampus, neocortax, amygdala" jobs or
front of the brain use "temporal or frontal" jobs)
3. Global talent, global jobs/hiring and global benchmarking
standards (cluster analysis of total skill sets and job mapping
based on total active skills)
19

Global Job Markets
Gainful and long term employment generation for job
seekers is one of the top most agenda item for developing
countries’ governments. Since such countries would have their
population in ranging growth phases, workplace development
for everyone in society regardless of strata and grade is even
more challenging. Many different types of workers are needed
in various structurally different job markets in any industry or
service. Some of the main worker categories are:
 “Army-fit” workers
 “Health standards fit” workers
 Knowledge worker
 Entrepreneurial worker
 International worker
 Job worker
 Union worker
 Temp. Staffing
 CSR-Unemployment zone
Talent mapping of workers/employees to proper job
classes is equally important and so is diversity in job market so
that the best brain can be put to good brain use, industrious
workers can be used in stressful and critical jobs and high end
specialized skills can find the best productive outlet of their
handyman-ship. Main job categories for skills and talents are
(by share):
 Brain jobs: 16%
 Status jobs: 16%
20

 Corporate employee jobs: 16 %
 Worker class jobs: 16% at ~50% of job market
 Good jobs 16%
 Not so great jobs/manageable 16%
Corporate focus on innovation, creation, research and
development is also highly important ingredient for creation of
job classes in job market. Environment for innovation and
creation would help gifted, motivated and ambitious talent
thrive in job market. Benchmarking of corporate spending on
such efforts can provide clear picture of industry development
levels, companies stage in their development curves and can
help mapping of right hires to right jobs. One such benchmark
could be IQ and education tier profile of companies and its
correlation with workforce and R&D spending by those
companies. An example mapping could be as follows:
 Industry performer companies: IQ 90: Education US
/tier-2: Average spending for such companies on
R&D/industry peers -- 8%
 Consulting and knowledge management firms: IQ 100:
Education tier 1 US: Average spending on R&D and
Knowledge Management -- 12%
 Top research firms/Entrepreneurial ventures: IQ 115:
Education US top 30: R&D spending -- 16%
Monitor and partner with India’s international talent
and develop parallel job markets like the once in US, UK and
other immigration destination countries. For example H1 job
market in us would have jobs which would fall in one of the
following categories:
21

 EB1: Phd. MS+MBA research exp. Or cred./Pub: 2-3k
pa (Need based)
 EB2: MS or MBA, 10,000/year (Total 150,000 over 15
+ years): Still some growth (8%)
 EB3: 35,000/year (total 2,000,000 in25 years): Mostly
attrition management (2% add)
 EB4 – EB5 almost self sponsed categories
Similar type of grading can be done in India’s private
sector and government sector job markets. Government sectors
job grades are here for example:
1. Class 1/Group A: Entry Pay 12 lacs pa (India A job
market now competes well with US top 30 university’s job
market)
2. Class 2/Group B: Entry Pay: 6 lacs pa (US industry
“US top 100 univ.” now competes with this market for talent in
India. About 30 years ago it did compete with A job market)
3. Class 3/Group C: Entry Pay: 3 lacs pa
4. Class 4/Group D: Entry Pay: 1.5 lacs pa
Desired jobs categories, their market development
levels & ease of access to different industries and “popular” job
markets can be profiled in a time line and talent need level
chart like the one shown below for H1 job market’s maturity
and talent needs in US:
22

Business and Lifestyle
Establishment of good business environment with
proper rules and regulations, jurisdiction, infrastructure
creation and workforce development is must for both
globalization/internationalization and privatization efforts. It’s
so happened that India had to face both of these waves at
almost same time during last 30 years while Indian economy
was opening up for world and central government at home
decided to ride not only private industry creation wave but also
privatization of lot of government infrastructure with chances
in its industry development thinking. This created tremendous
pressure for even faster growth and development of private
sector and business infra such as:
 Corridors, ports, transport infra, business centers
 Supply chain, logistics and transportation sector
growth for easing facilities for small/mid-size business
 SEZ, EPZ, industrial corridors and metro centers setup
 Technology access. Computing, telecom/internet,
uninterrupted power/electricity
 Workforce and talent creation and development
 Initiatives like Supercomputing, Applied/Artificial
intelligence and strategic investment in technology
development
Preference for western model in private sector
development (Modeled around US and UK) created need for
new rules and regulations in corporate laws mirroring similar
legal structure is for business in model countries, banking and
tax laws changes for economic liberalization policies and
25

financial markets development for private enterprise etc.
Some of the example changes due to western countries’
centric industry and infra development driven by growth in
private sector, multinational and global corporation’s business
in India are:
 New investment and managerial finance outfits, Sales
and marketing finance in corporations, Many changes
in corporate finance rules and policies
 Setup of venture capital and private equity finance
firms
 New consulting firms for: Financial restructuring
consulting, Financial markets reporting and business
analytics and back office processes
At central and state government level with policy shift
towards private investments and Infra development needed for
country’s strong foundations, uniform growth, social
upliftment, and secure borders, resulted in some of these legal
and tactical changes:
 Tax finance, Fiscal policy, Monetary policy
 World bank, balance of trade. trade and tariffs
 Cross border investments, subsides and economic
packages
 Controllership and audit oversight
Worldclass workforce and job market creation:
Strong push in this direction resulted in growth of
skills driven economic middle class and created middle-class
26

needs specific legal, government, social, living and financial
infrastructure. Some examples are:
 Retail sector development, small and mid-size business
segment growth
 Simple cost accounting and pricing finance know-how
 Trade up-skilling and education reimbursements,
renting and mortgage support
 Overseas assignments and projects, money transfer,
travel and health plan finance
 Banking finance for small business P&L services and
savings and loans
 Industrial corridor custom and excise duty finance
 Supply chain and receivable and payable bills
managements finance
 Real estate, retirement income, insurance and wealth
management infra
As liberalization and privatization takes stream,
corporatization of such outfits would create even better work
place environment and pay arrangements for professions
working in these jobs. There are similar privatization of
business related developments in some more business and
services areas such as media, telecom, entertainment and
hospitality, travel and tourism, short distance and long distance
shipping/transportation etc.
27

Employment
With ever growing population post independence,
augmented by very big move from rural centric economy to
urban and metro economy, India as country had to face
unprecedented challenges while establishing its democratic
sovereignty on independent area under government of India
control. New democracy of India went through many gyrations
and experiments before population started enjoying democratic
rules and powers it provides to everyone. With establishment of
almost self governance model of democracy with a socialist
bent, India had to not only house 400m people in new
dwellings but had to create means of earnings for them. It
involved creation of cities, towns, business centers and
factories etc.
It also involved jobs and employment creation along
with establishment of corporate and business infrastructure and
entities. Creation of right human resource pipeline for feeding
into new urban setups with proper education and skills
development programs was another herculean task. Country
being one of the largest populations in the world with
enormous geographical spread could not even hide from world
while working on its economic development projects. There
was lot of resistance from all around including neighbors,
world powers and even internal factions. Four to five wars
were the result (almost all frontiers including Pakistan, China,
Pakistan/Bangladesh and involvement in Srilanka) with almost
same number of major internal violent opposition problems
(eg. Telengana, Assam, Kashmir and Punjab).
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End result of all this effort is not only built up of one of
the strongest army in the world but also one of the most
sophisticated defense science research program that focuses on
energy independence, nuclear science, weapons development
and warfare class technology development for military and
communication infrastructure. Strong international presence
was also essential when country had to take regional power
pause hence lot of focus and effort was put on the efforts like
globalization, internationalization, liberalization, localization,
intelligent industrialization, modernization etc. Here are some
of the mentionable projects:
Privatization drive and “mass employment” for all
segments of society:
1991 UN sponsored economic development program to
promote Liberalization, Privatiztion, Globalization that resulted
in creation of international class segmentation in Indian job
market as follows (just like in most of western world):
 20%:: Global workforce
 20%: Highend technical or business skills employee
 20%: Profit centric, self employed, small and medium
size business
 20%: Employment for social and economic growth
targets
 20%: Newly developing and experiment job segment
It also resulted in good job market talent development
with foreign co-working exposures and good international
standard workplaces with top of the class human resource
management and talent development practices. All “social”
29

segments outlined in Maslow Hierarchy of Needs
pyramid/triangle are now highly visible in India’s local and
global job markets and talent ladders have also shown their
mighty potential from top to the gross root levels .
This level of job participation could not have been
achieved without highest level of dedication; ambition and
preparation that flames out of the deepest levels of desire and
drive for “needs” fulfillment (Look what we have created. We
have created fire. Castaway: Tom Hanks). There was no room
for complacency as it would stop you from moving up the
Maslow pyramid (source internet).
Some of the sectors which now have international class
30

local job market in India are:
1) Telecommunication, Airlines, Scientific research
2) Urban development, Oil, Auto
3) Banking, Agri-business, Retail
4) Stock markets, Private equity
On the other hand below table shows rural job market
and its trends in India: (Source: Internet)
31

This vibrant job market could even support world’s one
of the biggest urban move that has housed around 20% of new
population in new job market supported urban centers (1980 :
27%% urban to 2020 : 47% urban). Urbanization levels are
32

now almost at “needed” levels in India. It being a big country
with highly distributed population and many cultural centers
(20 centers with 2% +/- support needed in each 5%+2% model)
with their own rural connections, localized farming needs and
generational relationship requirements could profitably support
and house up 35%-40% population on “small farms” and “agri-
business support infra” along with retirement relationship
communities.
Hence there are limits on “factory” production
capabilities and low end industrialization in India put by
needed “rural” section. For low end “industrial work” there is
hardly any workforce available like there in China and hence
“industrial segment economy” in India would probably clip at
“low 10%” range. And that too would be mostly geared
towards high-end, well trained, certified type of industry
workers.
Service sector is already ready to expend to 40% level
rounding out total job market segmentation. Rural development
including support infrastructure development could create its
own support services job market. Work would probably include
support services for localized “Rural economy” in 20 “pseudo
countries” providing them connectivity with financial and
banking services, postal and telecom services, local retail,
collection and distribution infrastructure for rural production,
distribution and consumption, This should easily support up to
35% +/- of rural development dependent economy.
Overall now rural population is at 50% and urban
move trend after it reaches down to 40% would face significant
resistance (and hence only 10% more depth left). Economic
33

development focus move from rapid urbanization to “Rural
development” and “Urban development” as two separate
programs would not be considered a bad strategy because of
coming limits.
34

Society and Culture
Some of the main changes in social & cultural themes in
India since independence are:
 Economic profile and demographics changes
 Growth of 10 zones and 20 metros all over India
whether it is north, south, east or west
 Growth of both English and Hindi languages
 Growth of home and private business ownerships
 Growth of Enterprise, Corporate and Multinational
business
 Move of democracy from up-top levels to down in
social ranking scale with more literacy, education and
messaging at all levels
 Blurring Population/Religion/Castes boundaries
 Five “virtual” states to many mini-countries now (10+
zones and 20 metros): North, Center, South, West and
East to Metros/areas
 Genetic mix up between Indo-greek, Indoaryan, Indo
Iranian, Dravidian, Indic gene pool groups
Four major subsection, categories and traits: Genetic
disposition and generation experience effect on population
make up and family environment, social network effect etc:
• Language, Discipline, Conduct, Analytical ability
(Education, Finance, Law and order, Research, Science
and technology, Value add services)
• “Farmers” of some sort, Harvesting cycles (Agri-
business, Governance, Militarizing, Policing, Industry)
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• Hands-on crafts and arts, Handyman (Carpenter, Tailor,
Gardener, Goldsmith, Iron-smith, Barber, Electrician)
• Support work, peasantry & servitization (Construction-
Plumbers, Mason, Service workers-Hotel, Travel-
Tourism, Social amenities)
Skills and trade marriage has created good size talent
pool for all segments of business, services, jobs and skill-trade
market without any visible social, cultural and regional limits.
36

Political and Economic Thinking
Although Indian constitution clearly mentions that
country prides itself with socialist democratic governing
system, in new and changed India with capitalist and libertarian
themes like privatization, liberalization, globalization,
internationalization, intelligent industrialization, urbanization
and localization consuming Indian voters time, media time and
educationists time at full steam, it is very hard to color India
now with any of the “one” socialist, capitalist or libertarian
color. On top of it, there is this self pride, drive for betterment
and sense of achievement in “nation development” theme along
with this minor nationalist tone in people’s voice because of
healthy country-level prolonged top of the world growth period
of three plus decades. Improvement in relationship with
neighbors as a regional power, an agenda that government of
India made its one of the top priority in 1985 and period around
it has also helped the nationalist sentiment and developed
country tone in citizens.
With win in two wars (Pakistan 1965, 1971) and loss in
one (China 1962) behind its army’s back now, development
level of armed focused in India is not second to none. Programs
like Panchsheel, nationalization of banks, 1975 emergency and
UN sponsored economic liberalization since 1991 has only
added to positive growth of country. Think about population
situation in North India today if those family planning
measures were not taken by in 1975 by then prime minister
Indira Gandhi. North Indian plains already have world’s top
most 4 most population metro areas. What could have been the
situation in otherwise scenario?
37

Political and economic crisis in 1975 made Indira
Gandhi declare state of emergency in country and take out
some of the powers from judiciary so that she could start good
economic development programs. Corruption, financial and
economic problems, political division on internal issues,
neighbor relations, population and planning problems were
rampant at that time.
Later on, India again ran into similar financial and
economic well being problems as follows:
 1987 Russian crisis and its impact on India’s centrally
manufactured economy (3+ centers now)
 1991 UN lead economic development package
(Liberalization, privatization, globalization)
By 1991 though, country had good enough “grass root”
level politics and economics talent that even in the face of
“world” opposition could run one of the most successful
“change the system” program for more than three decades.
Problem like isolation, political disarray, social unrest,
debt crisis, unemployment situation, international image,
globalization hurdles could not stop its march on
“development” curve. Situation was very different during
Punjab problem as it could take big “International” stage. It
was probably the worst problem of independent India that
resulted in violence and later own big international
immigration wave out of Punjab. Other similar problems like
Srilanka, Telengana, Muslim and Minority riots could not
become big international “talk” point as their search for better
social connectivity, exposure, and better integration at
38

international stage over country “India’s” connectivity was
marginal at best.
India as country promoted this new “world” image to
the whole world that advertised its globalization,
internationalization, localization, liberalization and
industrialization as government’s main development policy and
that theme has taken out most of the international media time
over small/ problems at home. Things like social development
and gross root support programs took the international stage
over pitty issues at home. Demographics management in
middle class with new backward class reservation, rapid
urbanization and globally (government/private wealth)
managed development programs took the center stage.
People showed more concern towards jobs,
personalization and image/identity issues, technology and
business environment, top end research & education, labor
standards and betterment of work orientation, industry
development, access to international job markets in Middle
east, UK, US, Germany etc. over minor political, social and
cultural frictions.
Peaceful political changes and transitions are now
common with any violence and personal attacks whether party
that would face change is national level party such as
Congress, Janta dal, BJP or local outfits such as BSP, AAP and
other new upcoming parties.
With 30 years of development behind its back now,
new generation of today shows greater accountability, authority
and ownership in business, economics, politics, science and
39

technology, medicine, research, government and it comes out
as all weather people at even international stage. New role of
information broadcasting and messaging through media in this
new improved world of media’s almost 100% reach and very
high social connectivity as main source of good information
has only made people more informed and better democratic
citizens.
Contradictory themes like international job markets for
all Indian regardless of age, race, caste, sex in this new world
with globalization, internationalization, localization,
liberalization themes as major goal vs Swadeshi and social up-
liftment movements bias, Hindi push in international context,
reservation demographics management in international
jurisdictions such as Canada, Germany, UK, India, China,
Russia, Korea, Japan job markets etc do not become major
debate points as knowledge about India’s internal social and
cultural context is transparently available now to anyone and
everyone.
People in developed markets focus on important job
skills, knowledge, education etc and core skills such as writing,
ownership rights & democratic thinking, command and control,
sports, creative and innovating bent of mind, both micro as
well as macro-focus, analytical aptitude with right mix of
ambition and intention. Along with that proper protection of
good hardworking and interested in good quality work type of
employees is common.
Since 2012 onwards with opening up of many new
global job markets and uniform access for all to those markets
has given Indian talent choice in preferred international job
40

markets:
1) Europe-UK
2) Europe Continental
3) Middle-east
4) Japan & Russia
5) Australia and pacific
6) Americas
7) Rest of the world
At home or at global level improving sectors provide
better prospects. Some of the new choices developing choices
are:
 Banking and Markets, Energy, Infrastructure
 Telecom (south india), Informatics & Scientific
Computing
 Education and Healthcare
In summary “India” and “International India” both now
are better countries, better economies, better democracies,
better educators and better talent developers and consumers.
There is only going to be one way forward and that would be
march towards “The Best”.
41

Foreign Relationships
With thriving economy and one of the highest economic
growth rates in the world, India is expanding unstoppable at
this point. Middle class has grown multi-fold over last four
decades of urbanization (approx. 20% addition) and so have
middle class living standards. Opening up of the economy has
brought in many foreign trade partners, multinationals,
business groups and global organization to shores. Relationship
management with foreign countries and governments becomes
utmost priority for central and local governments in this ever
growing business and cultural integration regime and so does
learning about each other.
There are many other countries which are at this point
busy managing the similar growth and urbanization wave.
China and of-course fragments of USSR, both regions are now
growing at about 4% growth rate. China being now the top
most economy of the world both in size and growth
expectations becomes the most important trade partner for the
whole world. India and China relationship becomes important
in context of these developments and other happening such as:
 Fight for international markets
 Unsecure borders
 UN relationships and globalization efforts
 US-China relationship
 UN representation
Since USSR fragments are also now growing at around
4% per year like China, they do have good talent at home, had
42

been welcoming people for business relationships in past
should come out as good new partners. This new region that
started showing growth potential can surely be made home to
lots of new opportunities in education, agri-business, real estate
and infra development. India’s Middle east relationship had
always been critical for it as along with its sizable immigrant
population in that area, India imports most of its needed oil
from that region. There had been talks around dedicated oil
pipeline from Iran to India in past that did not materialized.
On the same lines US relationship is also important for
India for the following strategic reasons:
1. Privatization and globalization effect got a big boost
because of US’s open support for India’s efforts in this
direction. US had been a source of cross border
expertise and business efficiencies and there is free and
open exchange of all types of products, services and
adjacent services at private level between India and
US. This usually helps private sector and corporate
P&Ls both organically and inorganically as human
talent co-development and technological progress due
to open partnerships generates synergies. It even
helps government coffers and budget shortfalls
indirectly if not directly as it results into sources of
new corporate and individual taxes.
2. Monitoring of China US relationship is also critical for
India as China had been a hostile neighbor in past and
there is always this element of doubt between China-
India relationships. Any strong Chinese relationship at
international level could become a serious concern for
43

India. China buys lots of US government debt and that
creates strong government level relationships between
two countries. These favorable relationships help
China’s exports and service exchange to US. India also
competes for piece of same business. Sequestration by
US government, when it curtain its spending over
generating new money by selling debt helps India and
other countries in open private sector business as China
is marginalized in those decisions of not borrowing
from it. Curtailment in federal and government sector
spending also results in less tax burden on corporate,
local small businesses and individuals indirectly and
that generates world business.
3. Improvement in India US relationships in last 4
decades: US has become major partner for India in its
co-technology development projects as outlined below:
 Personal computers: $10T over 50 years
technology (calc)
 Networking technologies: $10T tech again
over 60 years
 Software apps., tools, cloud solutions: $10T
tech over 40 years
 Web technologies & data bases: $10T tech
over 30 years*
 Global internet transport: $10T tech over 70
years
India has built about $50T relationship over
approximately 50 years while partnering in above themes i.e.
$1T relationship per year on average starting from 1980
44

running till 2030 (2010 as average relationship year). Average
size of Indian economy during this period between 2005 and
2015 (2010 as average relationship year) is $3T to $4T.
Business exposure to just one country at these levels of
relationship i.e. at $1T out of $3T a ratio of 33% is just too
much when the nature of relationship is private and
unguaranteed. India also has global dreams and it partners with
all top five UN powers including Germany and Russia.
If you consider that ratio as a “pole” benchmark and 5
power scenarios (economic not military), business exposure to
any of these top economies should not be more than 20% as
India also trades with many other developing countries in the
world and that should account some growing share. India’s best
bet for US exposure would be 1/5 or $1T out of $5T at this
2020+/- economy size i.e. maintain current level of business
exposure or improve India’s political and social context share
in relationship over just products and technology import-export
expertise for more growth. With that “pole’ thinking in place
probably for India it is going to be a shift away from US to rest
of the world for now. New growth areas in rest of the world
would be better market development and business development
destinations. Some examples being eastern Europe, new USSR
fragment countries, middle-east and sourh-east Asian countries.
These moves would result in better returns on investments,
better risk management and better share in overall relationships
all over the world.
Period between 1980 and 2030 can be divided in
following major sub sections with important events during
those periods outlined below:
45

1990-2003/4: USSR dis-integration, Germany unification,
UK political turmoil, US illegal immigration stress, Euro as
solution Europe’s stagnation, Japan stagnation, Middle east –
Iran/Iraq Afghanistan-Pakistan Taliban issues, Very few new
choices for development in face of growing populations all
around the world: US seen as lucrative destination and was
seen as only promising land of opportunities otherwise very
bad period for holistic and true privatization and globalization
initiative that India took on for its economic overhaul: Business
and work immigration destinations shrunk to just 1 ore 2 and
total annual immigrants number to just 100k Mostly west and
that too because of H1B programs help
2004–2015: Foreign business acquisition crisis in India with
its “Permit Raj” brand; slow exist out of gold reserve crisis of
early 1990s with India-UN program’s highly co-ordinate
response and countries new initiatives such as co-tech
development with US and UK, privatization, move away from
Russia centric army and defense science programs, Autos not
just from from Japan and industrial technology not just from
Germany/Europe; Financial crisis in US in late 2000 and 10
years of global “fix” with low mortgage rates and lots of
foreign debit selling to China and Japan ( US + Japan + China
combination now creates an economic zone that would wrap up
~75% of the world)
2015–onwards: Germany business relationship in OK state,
Multiple business development engines available in Europe
again; Korea-Japan-China as roaring factories of the world;
UK, EU, Russia and neighborhood relationship back in good
shape, Sweden/Norway/Dutch on globalization track and have
so far been India friendly. Middle east back again as good
destination after facing the war stress for one decade, area is
booming and opportunities are much better than before.
46

Business conditions all around the world would never be better.
Many economies are going through globalization,
internationalization and industrialization at the same time and
trade relationship opportunities are unlimited and immense.
All-most the whole “world” is your possible market now with
customer base size of 8 billion.
Overall business & economic conditions would probably never
be this better for India’s global dreams: With about 250K top
end business and technology immigrations every year (70-80 k
US, 130 – 150K middle east . 30k Pacific Zone and 30K Russia
and Europe) India is going through a wave of exposure to
“world” cultures, societies, business environments, economic
development programs, technology and science research
programs in its globalization spree that invariably fuels
privation and liberalization theme at home. This new
infrastructure and economic development phase it some no
world country had even seen before. Privatization,
liberalization, open economy and globalization focus was the
best decision India ever took. There should not be any looking
back.
Someone said “Life is very different from what you learn in
books.” My question was very simple “From where do the books
come?” –---- Anonymous
47

Introduction
Hey Ram, Hey Ram – Mahatma Gandhi
Last four decades in world history have no parallels. It
was simply a period of “growth” in almost all aspects of
“human” race’s life on this planet. Here are some of the
“uniques’ of that growth (Of-course, India was no exception):
• Human “race” lived mostly peaceful (Baring US in
middle east)
• Rapid population growth in last 50 years (population
almost tripled, new population plateau in modern way
of living would be at 10 billion)
• Rapid urbanization supporting housing and living of
“new” population (World more than 50% urban now,
war scale construct worldwide in last few decades)
• Capitalistic and middle class focused politics &
policies in almost entire world (money, banking, stock
market private enterprise, financial sectors growth)
• Good education, hygienic living conditions and health
focused “youth”/No hippies – good and planned
“socialist” development as well
In next sections of this discussion/essay, we would
detail out some of the unique drivers of worldwide capitalistic
urban, social and economic growth of last 5 decades:
World population growth
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Source: Internet
Above chart trends the population growth in world
(although most of it was localized in Asia in beginning with
minimal trend in rest of the world, chart shows world trend)
since dawn of civilization. As one would notice that last 150
years had been crucial in world history as world population has
quadruple from 2 billion to 8 billion over this period. This
change had been so significant that we can actually almost
ignore human race’s history before this period of exponential
growth i.e. pre 1800 history is no history at all.
At around 10 billion, population of world would
plateau in next half a century as we could quickly learn and
adjust birth rates and family sizes even with changing death
51

rates, life expectancy and average age etc and could control
this growth. Not only that we could urbanize and improve
standards of living all across the world in unity while
maintaining peace and without putting much pressure on rural
masses, environment and natural resources of our planet.
Re-balancing and redistribution of population and
economic resources has already started across continents and
worldwide living standards are now going through
normalization with realignments/relationship improvement in
business partnerships, research and development co-operations
and better trading balance sheets.
World urbanization
Second most important theme that kept the world busy
over last 50 plus years of uniform growth is “standardized”
urbanization running off of mostly service centric economy
dependent social living culture (some localized
industrialization in China). Rapid urbanization was not just a
local phenomenon unique to India. The whole developing
world worked hard on managing this tsunami of ever growing
and young new faces. Here are some of the achievements of
last half a century in this crisis management:
China: Approximately 700M newly urbanized folks or twice the size of US
as first generation “civic” human
India: 350M more urban dwellers or almost the size of US first time in
towns and cities
US: 20% more urban over 30 -40 years: 80M
Germany & UK: From low 70% to high 70% urban over 30 years
Japan: 2000 to 2010 additional 10% urbanization kick
This would sum up to approximately 2 billion humans’
52

first time and fresh urbanization. On top of it, this newly
minted “middle class” type urban population is connected, has
global reach, consumes global products, feeds on global media
when it comes to politics, economics and financial
infrastructure from the word get go even if understanding of
society and culture is dismal at the best with very little
understanding of civic and connected community living.
Since war footing efforts across the high growth
population zones of world were on during this rapid and almost
“re-habilitation” type of human settlement, little attention was
given to education, healthcare and planned living. (e.g. 50% of
Utter Pradesh, India is illegal urbanization and it is a state of
approximately 200M people, urban development business
opportunity :))
Following table and graphs after that show the
magnitude and enormousness of this feat:
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Recent “joinee” or member in group of greater than
70% urban or almost fully urban countries is China. Out of
leading countries of the world, if there is any room left for
further big build out of urban agglomeration, it is in India. In
case someone would want to get into newer destinations such
as Nigeria, Indonesia and Pakistan (all Muslim countries) they
would have to start working on baseline infrastructure and
culture development and start almost “fresh”.
54

While India and China had grounds and bases covered
for globalization centric urban development efforts at
governmental levels and were socially and religiously very
open for international participation in local politics and
economics, these new destinations might show some
reservation, resistance and friction. They might even restrict
these global efforts and revert to home grown policies and
strategies.
An important initiative in this area of economic
development project is creation of service sector that creates
plenty of jobs in all categories and for all types of workers.
Initiatives like privatization, liberalization, industrialization,
globalization and institutionalization help support supply side
of service economy.
In economies which reward knowledge, education,
talent development, special skills and credentials, service
sector is usually preferred economic segment over industrial
sector.
If we look at two fastest growing world economies of
today i.e. India and China and compare preferences of common
man of two countries when it comes to vocations, jobs and
careers we would notice following differences:
a) China’s common man opted for manufacturing based
industrialization. Skills and vocation jobs were
preferred jobs over knowledge, communication skills,
talent management and education based long-term
careers.
55

b) India developed its education infrastructure and created
approximately 200 world class campuses which run
curriculum in English language. These programs create
talent for not only local but also international job
markets. China built factories.
c) Instead of creating factories which produce daily use
retail products and take out 10% of average family’s
monthly budget, an approach and theme that was
central to China’s economic development investments,
India focused on long-term infrastructure creation for
service sector talent supply/support with pre-focus on
global markets that would give it access to up to 40%
of average family’s monthly budget in
finance/banking/high-tech.
d) World class Travel and tourism sector and media sector
alongwith 70 years of democratic learning would only
benefit Indian common man in today’s mostly
democratic and capitalist world. On top of it country
opted for international banking and financial sector,
knowledge and consulting sector and is very open for
new services unlike China.
In 1991, under similar development efforts and same
service sector and economy development goals, India started a
reform program with the help of UN. Here are some of the
results and still developing areas in Indian democracy since
that change in government thinking:
Liberalization: boundaries, openness, rules,
regulations, environment, culture, society
Privatization: institution, entity, corporation,
56

company, business and business unit, a team
Globalization: government, people interaction,
connectivity, political thinking, all types of relationships
including cross border, social, business, sports people
In industry development segment also, India focused
on very high end manufacturing or manufacturing support
functions over assembly lines. In an economy, Service and
Industry segment could have multiple types of organizations.
At very high level, these are the major types of organization
structure and management outlook plays:
 Alpha Management, Alpha Organization Companies:
Top end management, Top end talent hiring e.g.
Goldman, Mckinsey, GE
 Alpha Management, Beta Organization Companies:
Usually industrial sector i.e. worker hiring,
management owned
 Beta Management, Alpha Hiring: Wealth management,
Customer facing (Better suits)
 Beta Management, Beta employee companies: Routine
work-Railways, Transportation, Shipping
A good example of industry development from recent
periods in history is as follows:
First real global industry in internet
connected world:
Online advertisements
Recently I was looking at the growth data of
worldwide advertising industry and paid special attention to
57

Internet/Digital segment growth. This industry segment’s
growth has given us not only more than two fortune 500
companies but also has done it in just 25 years, possibly the
fastest ever industry creation in history.
Following table shows the trends in overall
advertisement industry growth over this same period:
If you just create two scenarios and study revenue
growth, you would notice that more than innovation driven
new economic profits growth, this channel did feed itself on
existing industry channels’ cannibalization.
Here are two scenarios:
58

A) Normal industry growth without internet/digital as it was
growing in pre-internet bubble years
B) Current case: Existing industry - internet/digital channel
One would notice very strange occurrence.
Cannibalization of about $170B US dollars worldwide in all
other channels' revenue only created completely new economic
profits of just $220B US dollars i.e. an almost 1 is to 1 factor.
Some of other high end innovation driven industry or industry
segment creations would only show 1 by 10 or even better
cannibalization results such as optical networking and wireless
communication.
We would have to wait for some real miracles from
internet/digital advertising channel for making it little better
"breakthrough". And that too would just probably be
operational if not any of fundamental technology changes such
as far reach, magnitude-ly better delivery methods, better
economics, financial or operational preposition or sales/auction
methods.
Here is a chart that shows cannibalization (Assumption
that existing channel would have sustained their long term
growth rate is universal as overall globally advertisement
industry budgets have grown on same lines over years and in
absence of new channel, old channels would have captured that
growth i.e. a higher level industry growth driver would have
stayed whole and universal; would have maintained other
channel’s growth).
59

Here is graphical representation of same finding.
If you just want to compare two major players in this
60

new industry segment i.e. Facebook and Google, you would
not help but notice a race towards industry monopolization by
ignoring any operational controls and monitors. Industry would
probably grow for another 5 years and these companies want to
capture as much share of total market as they could.
Comparisons clearly show a strong focus on
maintenance of growth rate and revenue capture and total
ignorance on operations side. Of-course, headcount growth
directly correlates with top line growth. Even though
competition seems to follow same baseline philosophy i.e.
grab, apples to apples, Face book has better operational ratios
when it comes to capex management and operational cash use
along with having some sense of bottom-line and profits. Here
is very high level “operational performance” comparison over
last 5 plus years:
One can do similar kind of study on India’s growing
industry segments such as outsourcing, knowledge
management, back-office, business and corporate infrastructure
etc and compare those segments at global level. As such, at
very high level though performance is good but it is not
61

“global” comparable just like internet advertisement industry.
62

Human resource growth
Next stage of growth in development process that is
mentionable in case of India’s urbanization story would be
people’s own growth. This would include living standards and
life style growth along with development of understanding
around government, politics, social and cultural segmentation.
Education sector growth
Education focus is must if country has to develop
service sector over manufacturing and industry sector.
Everyone is intended to participate and create knowledge,
develop talent and gain education in service centric economy
development. For high end talent development, all levels of
education sector should perform as well. Here is India’s story:
Although tertiary sector is yet to perform at
international level, investments had already been made or
channeled into this sector’s growth and results should follow.
63

At primary and secondary levels through India’s
performance now compares with developed world economies.
With few more years, results of strong focus and investment
along-with strong preference for knowledge and talent
64

centricity, results at tertiary would only bolster countries
position in list of developed world countries and would
certainly help service sector internationalization/globalization.
Chart shows global benchmarking of education:
Source: Internet
Like rest of the world, India also favored middle class
development, knowledge and skill set base employment,
“whole-economy” view and uniform country development.
Education infrastructure in country has gone through a
big overhaul in last 40 years. It boosts of around 200 world
class campuses and international standard primary secondary
and tertiary education infrastructure. Along with new rigor in
education delivery, job calibration and selection standards are
world class as well.
Curriculum is also world class and there is wide range
of choices when it comes to subject selections. At around
undergrad graduation time when I looked at my choices of
subjects for UPSE IAS mains (one of India’s top job selection
65

exams), I only found 2.5 science, technology and engineering
subjects’ choices:
Science, technology and engineering:
Physics
Chemistry
Electrical Engineering (Half)
Just recently, I was looking at the course choices again
and noticed that now I can choose my electives from 12 subject
areas. This move of my choices from 2.5 to 12 over 20 years
covers most of my BS/undergrad and MS/MBA programs
coursework. Now that I can measure curriculum better and see
that subject matter is not only international level (Post IIM &
post IIT course-work) but also covers many corners of
knowledge world, I appreciate it much more. Coursework is
Stanford and Cornell class course work.
Testings for these types of class A job in India test all-
round development including things like psychology, logic and
reasoning, research ability, personality, visioning, thinking,
self-learning, patterning and calibrate you on physical
standards as well. Selected candidates certainly would have
very strong foundations. Just for example here are my new
subject choices (notice diversity of curriculum):
Full science, technology and engineering:
Mathematics
Physics
Chemistry
Electrical Engineering
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Full management:
Public Administration
Statistics
Commerce and Accountancy
Economics
Management
Full social studies:
Geography
Indian History
Political Science and International Relations
This is just one job selection process example from
India. When you have that kind of background behind your
selection processes, your job market becomes very different
and competitive. Let’s say you would want to work it out for
SF Bay area high technology industry. With this kind of
background, your job choice would certainly be multi-field,
multidimensional, multidisciplinary work and you would
probably choose business-technology job over just business job
or technology job or for that matter techie-type business
management job etc.
You wouldn’t also just restrict yourself to one skill one
company. Hence your job market would be ordered in class
“A” category fashion below and not class “B” category (should
start happening since now many job aspirants come here in SF
bay area from India with similar kind of education and
profiling background, similar things would follow worldwide).
A) Silicon valley, High Tech, Software and Solutions, “Any”
Company
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B) Company ‘A”, Programming, Software, “Pinata Project”
By mid-career as a person you would have grown as
someone who would prefer broader-view and wider
responsibilities. Business as well as technical education is must
for these kinds of roles and you would have opted for both.
Technical education in India is benchmarked by AICTE and it
follows global standards.
AICTE international standard benchmarked campuses
in our times (year 1995 +/-) were just 10 or so. Since then,
AICTE worked on development of top class campuses
throughout entire country and now that number stands at
around 100.
These colleges graduate around 50,000 technology
graduates every year now a number that was just 10 colleges,
500 students each and total of 5000 students per year about 25
years ago. These graduates do very well in international top
end job markets. Similarly top MBA graduates out of India do
perform well in international management jobs and there is
going to be more standardization and profiling in that area too.
Real estate sector growth
Urbanization in India had been stellar and country has
added about 30%age points of new living quarters in urban and
suburban housing over last 30- 40 years, but it has already
started testing limits at around 50% of urban/rural divide.
There could be many more constraints going forward. Some
top level concerns would be around historical growth
68

management and social context in new relationship formations.
India is a country of countries with many cultures and
themes showing very local needs of their own. Depth of
population groups open for transparent mingling, showing
penchant for connectivity, learning, moving, sharing etc is
already starting showing shallows.
These kinds of trends are usually highly and quickly
visible in migrations, jobs and cultural mix data in urban areas.
Long term slowness in growth of an urban center, usually
becomes visible in real estate growth and job market growth
etc first and would point to lost luster in area. Here is real
estate data of some of the highest growth areas from last 30
years up-rise in India:
Real estate prices are heavily dependent on sustained
local economic growth and job opportunities. By shear
economy driven development, growing metros would show
good real estate growth trends as well. Same trend is better
69

visible in “log” plots of real estate price growth in our test
areas:
Sub-urban growth has shows real slowness. Urban
growth is also not spectacular in these areas. As country has
many rural population pockets and has avoided mass methods
in agri-business (silo-ed and local mode, no farm consolidation
and disappearance of some of the cultures and sects),
engagement in rural and agri-business segment is going to stay
high for many years in future.
About twenty plus cultures with their own identity and
local economies of their own would atleast command 2-3% of
rural population for each group adding up to 40% of total rural
divide putting 60% wall on urbanization i.e. 10% of more leg
room.
From now onwards, incremental urbanization is going
70

to difficult as cost of educating, skilling, culturing and moving
additional population is going to be much more than usual
including highly visible cultural and social “puts” on both sides
of leadership. The approach, India followed since 1980s would
probably not work for some of these next targets of
urbanization. As it stands today, here are India’s five largest
and perhaps the fastest growing metros and their total GDP
numbers for comparison (new or old question?):
Big economic zones in India (GDP per annum in US$):
Mumbai-Pune: $260 billion
Delhi NCT: $200 billion
Bangalore-Chennai-Hyderabad: $200 billion
State of Uttar Pradesh: $240 billion
Kolkota: $160 billion
Ahmedabad-Surat: $120 billion
Peak of new mighty “middle
class”
In absence of any major wars, environmental
calamities, disease outbreaks or other social obstacles the
whole world has been progressing smoothly and peacefully in
mostly harmonious way since last half a century. And this has
all been happening in the face of ever growing population and
its desire of housing itself, feeding itself and employing itself
71

in decent ways. In the modern way of politically &
economically connecting and living, world population would
peak at around 11 billion human on this planet by end of
century.
That is a steep rise from around 2 billion we had in first
half of last century before world got into two mega size, multi-
country wars and then unstoppable population
growth/urbanization drive. In modern times, preferred way of
connecting is by trading with each other, socially interacting
and building up cultural, sports, economic and political
relations while respecting each others’ peaceful presence and
that stayed universal over last half a century.
Out of 11 billion folks on this planet, about 20% of
them would make upper strata and about same number would
probably fall in lower strata (simple 1 in 5 human group play
formulae). But middle 60% would mostly deal with each other
on equal footing doing similar types of economic activity jobs,
studying in same way and in similar schools (not very high end
jobs or education, non challenge seekers as well) while making
both ends meet in same kind of lifestyle and living in same
type of housing in similar/normal neighborhoods.
This class of people would be marked and named as
“middle class” and it would sum up to around 6 billion folks on
this planet by end of decade, a significantly large number of
“same class” of human. We are almost already there after
sprinting through last half a century’s race of creating housing,
jobs and living for this class that created very big hump in
growth all across the globe.
72

Now that we have basic infrastructure almost ready for
this segment, growth in lifestyle, economic valuation of work
and socio-political developments would drive its progress in
sort of on “developed” world economic growth levels way.
Basic drivers for this new growth are going to be as follows:
New demographics and product basket
There has been big change worldwide when it comes to
lifestyle, health and hygiene, childhood development and
schooling. There is plethora of product choices and thousands
of products out there these days and global products are
available in almost all geographies of the world. At high level
major shift that world would see is
 New center of middle class in Asian developing
countries
 Demographic shift in world middle class; Aging
population “places” and young population “places” and
targeted “Productization” would follow
 Increase in purchasing power globally and hence
product target markets shifts
Here is a table that shows middle class purse shift to
Asia over next 10 years:
73

Urban living, business and services focus
Middle class in India voted in favor of urban living and
working in service industry and gave rise to urban and sub-
urban sprawls with rows and towers of new planned unit
housing. Political views of this newly wealthy and powerful
class show mix of capitalist and socialist form of democracy.
Semi-rural and rural segment that gets involved in agri-
business and arts/crafts activities (Indian brands: Eicher, Vita,
Verka etc) would connect with this new and busy urban middle
class in just business and services settings in now time.
For this new class next frontiers in development
process would be automation (very high opportunity) and
growth in women education and employment like it happened
in western world. There are many other new varieties of
services this class would get exposure to as further urban
growth roles out such as travel and tourism products, local
entertainment avenues, financial and stock markets, plethora of
wealth management, insurance, retirement and pension
74

products etc. Hectic lifestyle is going to be norm. This is very
unlike China likes it.
Technology and brand savvy
Middle class is technology and brand savvy. It supports
private enterprise. This preference has given rise to many new
local brands and supported growth of
multinational/international brands such as:
 Technology: Microsoft, Oracle, Samsung
 Retail: Arrow, Hunt, Kirkland, Subway, Mcdonald
 Shoes: Reebok Nike Adidas
 Confectionery: Coca cola, Pepsi, Laher Question: Who
does better on brands? India or China
Peaceful existence, consumption,
consumerism
With preference for peaceful living and clear support
for democratic government and policies, most of the population
of India has favored western style of consistent and constant
development over socialist, monarchy or military controlled
form of government.
On top of it development model that is successful is
consumption and consumerism driven. Normal development
track of societal development includes introduction to:
 Education system
 Preference for sport hygiene and health
 Banking
75

 Private business and brands
Again this is very unlike china that favored enormous
size factories, big communist government and industrial type
of urban townships.
Controlled rapid urbanization
After independence in 1947, country faced this uphill
task of establishing democratic government that could establish
home rule, regulations, law and order in the whole Republic of
India. Because of centuries of foreign rule (Mughal and British
rule from 1525 to 1947), its economic, education, political and
business infrastructure was in semblance. Projects like creation
of electricity distribution network, irrigation system in country,
education institutions including higher education universities in
science, technology and engineering were some of the initial
big wins in 1950s and 1960s. But then country could not avoid
problems which were outcomes of ever growing population in
1970s and 1980s, a global phenomenon.
Like many other newly independent and developing
countries, it also started facing problems of big growth in
population that the world went through in last half a century.
Countries did have to adjust their strategies and had to focus on
basic real estate and infrastructure development for housing
this new growth, urbanization of new masses of people,
educating them and keeping them healthy while putting away
projects which would create high end army and military
technology and class living, aid sports and welfare, help
science and technology research, luxury transportation and
76

entertainment and tourism infrastructure and much more.
Here are some of the challenges which India did
overcome and wins it attained during this four decades of
unprecedented growth in population and urban move that is
now coming to a mostly normalized trend in many parts of the
world including pockets of urban set-ups in India:
30% more Urban population (or 30% less rural):
• 80% to 50% rural or 20% urban to 50% urban i.e. a
migration and re-housing of 350M people a population
of size of USA
Rural self dependence and reliance in face of big
migration:
• Still feed the whole country with just baseline agri-
business infrastructure, collection and distribution
networks and refrigeration technologies
• Resist amenities of urbanization while helping feed
and support cost of living in urban lands of new growth
• Self-develop living quarters and life style
• Balance and debate between models of country
development i.e. better option between rural-semi rural
world/Only focus on high-end urban development and
improve management of waste lands etc
Urban infrastructure development:
• Costlier living and just delta improvement, below
average in world rankings.
77

• Category-break difficult; middle-class upper class
move not only difficult but too cumbersome as well
• Mostly false sense of reliance
• Just incremental upgrades with needed skill set gain
.but this was only choice
Plans and strategies which India used for management
of this humongous country development task that was in front
of this new Republic were not easy to follow but management
of was mega scale project was superior. Some of the achieved
results out of 40 years of this effort are as follows:
Management and control of urbanization knobs:
These knob controls need planned developments in
Healthcare, Housing, Education, Transportation, Banking,
Government services and other economic segments of new
growth. Some of the top end successes in urbanization process
management through efficient knobs control and test points
are:
 Economic segmentation even visible in basic amenities
delivery that would generate competition and
product/lifestyle development knowledge
 Healthcare and Hygiene, Primary care, Emergency and
Urgent care, Specialty care etc like western world,
generates personal care knowledge
 Learning focused development and at global par talent
calibration
 Primary education, Secondary education, Tertiary
education system development; already invested for
world class and top rankings
78

 New knowledge gains at each and every stage of life
and life’s challenges
For example my US job search and MS/MBA
admissions efforts included (apart from applications/ETS):
1. Top end undergrad projects
2. Some industry “consulting” student projects
3. Research work (Publications, Papers, Articles)
4. Class room and other campus talks/presentations
5. Networking and interviews
Another good knob i.e. student benchmarking that also
played out in my favor was multi-field, multi-disciplinary,
multi skill development and total academic focus. Here is my
new grading scheme that would include “multi” attribute in
talent assessment in actually just education exam scoring.
This method of scoring and ranking would marginalize
just one dimensional focus in education and world reward
holistic all round academic career thinking (BTW this scoring
is just for exams and doesn’t include weight for extra-curricular
activities sports, media, scouts, politics).
79

Broad employment
(Jobs in all categories and classes)
Another important project was at home job market
creation and with following features:
• Fight themes such as “base of the pyramid” in global
technology and multinational private sector
• Special needs and skills matching and benchmarking in
new world jobs even with rudimentary education
system at the start of project
• Specialized work force at home in “National level”
projects
• Fill high end special and confidential jobs in
government, defense, army etc for indigenous growth
at home
80

Overall results of 40 years of work are good though.
Pay structure in private and public sectors/government jobs in
India has become much better and can play-out in global salary
comparisons now. Skill-set and base educations levels are good
as well. Salary structure in public and private sector job
markets is as follows:
Public
sector/Govt
Salary Private sector Salary
Class 1/Grade A:
IAS, DRDO-RA,
Top Army and
Railway etc.
12 lacs Top jobs Top
IIMs multiple
years of exp.
Executive
12 lacs
Class 2/Grade B 8 lacs Eng/Mgmt jobs 9 lacs
Class 3/Grade C 5 lac Business jobs:
Customer support,
technical and
business support
6 lacs
Class 4/Grade D 2 lacs Industry jobs 3 lacs
Work force is much better and overall better performer
as well. India A jobs are now world comparable. India B job
market now competes with global power house in investment
banking, consulting and knowledge. Normal US industry jobs
now compare with India C job market in terms of skills, pay
package and total wealth/lifestyle impact as shown above.
Effects and outcomes of urbanization
Urbanization has created a new class of leaders in India
that has
 Modern economic and socio-political thinking
 Sustainable, resilient, modernization focused economic
81

and lifestyle growth policies
 Changed views on population-segments/religion/castes
 Belief in new genetic branding of social classes and
regions
Five “virtual” states i.e. North, Center, South, West and
East have almost merged at central government level. Genetic
groups such as Indo-greek, Indoaryan, Indo Iranian, Dravidian
and Indic have now mostly taken on the identity of “Indian” or
Bhartiya” and that has happened over just last less than 100
years, a phenomenon that has wiped out last thousand plus
years of wars, immigration and refugee trails.
End result is four major sub-sections in society i.e.
categories and traits based economic, work or skills status.
Genetic disposition and generational experience effect on
population make-up, family environments, social network
effect etc has mostly disappeared. Here is new classification at
high level:
• Language, Discipline, Conduct, Analytical ability
(Education, Finance, Law and order, Research, Science
and technology, Value add services)
• “Farmers” of some sort, Harvesting cycles (Agri-
business, Governance, Policing, Industry)
• Hands-on crafts and arts (Carpenter, Tailor, Gardener,
Goldsmith, Iron-smith, Barber, Electrician)
• Support work, peasantry & servitization (Construction-
Plumbers, Mason, Service workers-Hotel, Travel-
Tourism, Social amenities)
Overall, rapid urbanization phase that is coming to an
82

end in most of the parts of the world has been managed very
well by all constituents of leadership. Performance had been
better than almost all of the developing countries.
“One Country” approach
Unlike rest of the developing countries, India’s
development, urbanization and modernization challenges were
very different. One country that may match India in
magnanimity of challenges and could come out as good
benchmark would be China. Some of those
challenging/obstacles are:
Large country: Many local cultures, many languages, many
religions, exposures to many governmental systems and beliefs
83

such as social, capitalist, monarchy, democracy and multiple
ruling clans’ history,
Large population: Second largest -to- largest country
population in the world, was mostly rural and un-educated,
lived in poor housing, studied in primate education system and
had disastrous hygiene and healthcare practices
Diverse geographical spread: difficult transportation
connectivity. Non-existent indigenous international
connectivity by air or seas
No corporate infrastructure and retail culture:
very few choices in local or international class products, poor
urban developments , dawdling trains and buses on patchy
roads
However, will-power and might of newly independent
democracy and its “student” middle class did take on the
challenge and did remove even the toughest road blocks in its
way to get to the international and world scale development
successes so that it could think liberal, participate in global
economy and be entrepreneurial while creatively performing
responsibilities of career oriented jobs skillfully. Here are some
of the top class initiatives:
Orchastrated Drives
Swadeshi movement in 1970
Some of the successful projects in this category of
initiatives which made India not only deliver and cater to local
markets but also show its class in product design and
innovation, engineering business acumen and more at
international levels are:
84

• Multiple dams and electricity distribution network
• Irrigation system
• ITI Bangalore
• Coca-Cola & IBM
• GE
• Maruti Udyog
• HCL computers
• Patni software
SEZ/EPZ setups
This enabled easy import/export infrastructure. At
present there are eight functional SEZs located at Santa Cruz
(Maharashtra), Cochin
(Kerala), Kandla and Surat (Gujarat), Chennai (Tamil
Nadu), Visakhapatnam (Andhra Pradesh), Falta (West Bengal)
and Noida (Uttar Pradesh) in India.
In addition 18 approvals have been given for setting up
of new SEZs at Positra (Gujarat), Navi Mumbai and Kopata
(Maharashtra), Nanguneri (Tamil Nadu), Kulpi and Salt Lake
(West Bengal), Paradeep and Gopalpur (Orissa), Bhadohi,
Kanpur, Moradabad and Greater Noida (UP), Vishakhapatnam
and Kakinada (Andhra Pradesh), Vallarpadam/Puthuvypeen
(Kerala), Hassan (Karnataka), Jaipur and Jodhpur ( Rajasthan)
on the basis of proposals received from various state
governments.
85

Confused nation
Faced with democracy and “united one country”
republic approach to governing and economic planning when it
came to infrastructure development, job creation, secular
practices, some factions and groups of people had problems
coming to par with “nation” approach. Some of the resulting
problems were:
• Punjab problem
• North-east problem
• North India – South India divide
• Big government
Some of the solutions included local population’s
national and international exposure, all round education,
economic packages and cultural integration programs. They
have worked and situation now is much better. Here are some
of the visible trends:
• Priorities and better private hand in infrastructure
development projects
• Gross root level understanding of democracy in most
of the country
• Entrepreneurial culture setup and opening up of private
sector doors for needy folks looking for competitive
opportunities and jobs even in some cases with
financial help
• International job markets development/participation
86

opportunities
Some other programs which have helped countries
growth are:
1. Special Rajeev Gandhi drive
Programs such as modernization of education system
and office technologies for productivity improvement under
Rajeev Gandhi’s mid-80’s government have resulted in the
tremendous developments in:
1. Telecom, Computers, Electronics, IT, Organized retail,
Banking sectors development
2. Panchyat Raj, Foreign relationship improvement,
Urbanization and planned development
3. Knowledge, Consulting, Back office, Outsourcing, Tourism
and Travel, Finance and Investments sectors development
2. UN Package & Modernization move
There was a major government policy shift towards
country development post 1991 economic crisis. New model of
economic development over business development, service
sector development, internationalization and middle class
focused development centric policies have helped country
achieve big successes such as :
• Success of 1991 UN economic reforms package
• Liberalization, Privatization and Globalization
• Foreign relationship and country’s international image
• International class business corridors in the form of
87

SEZ/EPZ
3. Democratic development
Last 5 or so decades of constant progressive
development centric programs’ management at central
government level wasn’t an easy feat but exactly similar stage
play at international level with almost same rigor that was
noticeable at India level was even more difficult task. Further
growth is going to be much more difficult. Some of the
“already” visible obstacles which we would have to fathom
are:
1. At this point India is the only really growing
democracy in the world. Service sector centric
employment development polices at local as well as
global level have created a very large working people
group that would need “job” insurance of some sort.
Not only management of job market size but also
management of even size of its components would
become important.
2. Less focus on defense and army development during
this last phase of country development has created
significant balance of military power differences. US
with its 10T dollars worth of flying machines and
uncertain relationships with India could pose a threat
and growing might of China in neighborhood could
play out against India. Both countries have played
hostile in conflict situations. Only solution is focused
investments in indigenous programs.
3. All-round education background, talent management
88

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