Gujarat kite industry - How a visionary leadership transformed a cottage activity into a vibrant business ?

One of the criticisms often levelled against the BJP Prime Ministerial candidate is that he is for “big businesses” and interested only in promoting “corporate capitalism.” It is not just the opposition parties and the NGOs with vested interests, but also some of the high-profile intellectuals and the “secular” academics like the Principal of the St. Xavier’s College, Mumbai who are questioning the Gujarat model of development. But these criticisms do not appear to be based on facts. In this connection, I would like to place on record our experiences with the Gujarat Chief Minister during 2003-04 on his initiatives to develop the kite industry coming under the unorganized sector.   

We are involved in studying the local industries and businesses in Tamil Nadu since the mid-1990s. Our activities got expanded to other states with the formation of the Swadeshi Academic Council (SAC) during 2001. Shri.S.Gurumurthy, the eminent thinker and economist was the Chairman of its Advisory Committee with reputed academicians such as Dr.K.Kualandaivelu, the then Chancellor of Avanashilingam Women University, Coimbatore guiding the activities. One of our main objectives was to recognize and assist the local industries and businesses that contribute a lot to the economy, but remain neglected by the system.  

During the fourth quarter of 2003, the Gujarat Chief Minister invited the SAC for consultations to promote the kite industry. It was a rare invitation as the smaller businesses in the unorganized sector normally do not get the attention of the higher officials, leave alone the head of the Government. A four member team led by Shri.S.Gurumurthy visited the state to understand the issues and formulate strategies. Discussions were held with the higher officials and concerned authorities of the Government. As a part of the overall agenda for the development of the industry, the SAC suggested to the Government to carry out a survey of the industry covering various aspects to understand its background in detail.

The survey was carried out by three leading consultancy agencies,   namely Gujarat Industrial and Technical Consultancy Organisation (GITCO), ORG Centre for Social Research and the Institute of Environment and Social Development in nine different areas in the state where the kite activities were concentrated.

Later the SAC prepared a concept note on the kite industry and the international kite festival 2004, which was circulated to all concerned. The SAC advised the Government to work out the agenda for the kite festival and the kite industry in two stages. For this purpose, it was suggested to organize a workshop involving the various stakeholders of the industry to facilitate interactions among them and generate ideas for development. Soon a day long workshop was organized by the Gujarat Government in association with the SAC during December 2003.

The Chief Minister inaugurated the workshop in which the entire spectrum of the kite industry representing multiple interests participated. Those present on the occasion included the Ministers, the Chief Secretary to the Government and the Chairman of the National Minorities Development and Finance Corporation. During his address, Narendra Modi announced that the Government would undertake all the necessary initiatives to transform the industry and take the business to the higher levels.  He mentioned that a comprehensive policy with a specific time frame would be framed for the economic development of the craftsmen.

Then there were three technical sessions covering different aspects of the kite industry. Experts and administrators with necessary experience in the relevant fields were invited as resource persons. The first session discussed the issues connected with the up-gradation of the industry, designing of kites, problems related to the raw materials and improvement of the skills of craftsmen.  Dr.Sky Marrison, the noted designer and kite expert from Canada, spoke on design innovations to make the kites exportable with eco-friendly approach. The economics of paper used in kite industry and thread manufacturing along with the feasibility for producing papers and bamboos required for kite making were covered later.  

Issues relating to advertising and marketing of kites were taken up in the second session. Professionals representing relevant fields from organizations such as Mudra Institute of Communication and Institute of Environment and Social Development, besides the representatives of the manufacturers and Citizens Council presented their views.

The third session dealt with issues connected to the financing aspects of kite industry. SAC presented the integrated action plan for development of the industry. The Managing Director of the Gujarat Women Economic Development Corporation discussed the financing aspects of kite manufacturing through the women self-help groups. A representative from SEWA bank shared her experiences relating to banking for women belonging to cottage industry. Later the Managing Director of the Gujarat Minorities Finance Development Corporation presented his ideas.  

Each session was presided over by a Minister who was present throughout the day. Representatives of the manufacturers, craftsmen, wholesalers, retailers, designers, financial institutions, NGOs and independent experts, besides the concerned officials of the related departments participated in the sessions.

The workshop provided an opportunity to all those who are associated with the kite industry to exchange views and share their experiences to take the industry forward. More importantly, the ordinary people involved in the kite industry got a platform to voice their problems to the authorities concerned in front of all others in a transparent manner. Besides, it was an occasion for the decision makers and the financial institutions to get a first-hand understanding of the industry. 

The Ministers and the higher officials responded to the issues raised by stakeholders swiftly. The smaller issues were either sorted out or agreed in principle by the authorities concerned immediately. The major issues that required formal approval at the highest level were reserved for further processing with a positive assurance.

The workshop proved be to be very useful in many ways. The ordinary sections of the society involved in the industry – many of them with lesser educational backgrounds- were given an opportunity to learn various lessons required for improving the business from the experts and professionals. It is only the big corporates that get expert opinions and professional guidance for their businesses. But in this case, the Government made all arrangements to provide the facility free of cost.

After about two weeks we received an invitation for the international kite festival during Jan 2004 in Ahmedabad. We were also informed that the book on the Gujarat Kite industry prepared by the SAC would   also be released during the inaugural function. The Honorable   Governor and the Chief Minister of Gujarat graced the occasion. A two member team representing SAC attended the programme and received the first copy. Gujaratis from many parts of the world, Kite fliers from different countries and people from across the state flew kites of different varieties with enthusiasm in the open grounds.

Now after ten years, it is heartening to see news reports mentioning that the turnover of kite industry had grown to Rs.500 crores. (The Economic Times, Jan.13, 2014). Narendra Modi has also been mentioning the success of the industry in his speeches recently. It is a remarkable achievement by any standards, for an industry with a turnover of Rs.35 crores during 2001-02. It reveals as to how a determined leadership can change the fortunes of a small business in the unorganized sector.

A great majority of the people involved in kite making and accessories belong to the Muslim community. There is close coordination between the Hindus and Muslims in this business, with a higher proportion of Hindus in the retail business segment. Women play a dominant role in kite industry, as it is home-based activity.  Most of them belong to the less privileged segments of the society.

It is significant to note that the Gujarat Government has been taking several measures to develop the industry over the last ten years. We understand that the crucial issues raised by the stakeholders during our study and later at the workshop have been addressed. Manufacturing of kites is now covered under the cluster development scheme for cottage and rural industries announced during 2003-04. The Government have taken up training to those engaged in trade, besides helping the industry to make innovations.

One of the concerns raised during the study was the declining popularity of the kites among the younger generation. Hence it was suggested to organize kite festivals in different parts of the state. Kite festivals are now being held in different parts of the state. Besides, festivals are also organized in Delhi and Mumbai on the theme, ‘Chalo Gujarat’.  

Kites form part and parcel of the lives of Gujaratis. The kite industry signifies the close social and economic relationship between Hindus and Muslims. Uttarayan is synonymous with kite flying. Modi has now succeeded in making kites a symbol of Gujarat. Kites have also emerged as a symbol of the growth of the unorganized and cottage industries.

Hence the success of this industry provides important lessons on inclusive development. It is perhaps the most significant success story in the unorganized sector ever initiated by a Government. All round improvement involves the economic development of all the segments of the society. The essence of   the Gujarat model lies in this approach. The credit for this achievement goes to the visionary leadership of Narendra Modi.

Note: The writer was part of the team that undertook the study of kite industry for the Gujarat Government during 2003. 

(Published in niticentral.com, “How Modi’s Gujarat soars like a kite”, April 29, 2014 and in Swadeshi Patrika, New Delhi, June 2014  )

World of Finance, Global Corporations and Greed

One of the most successful Indians in the US, the iconic Rajat Gupta, was convicted on June 15 for leaking inside information in the much-awaited case in New York. The case pertains to the sharing of privileged information relating to Goldman Sachs with the hedge fund manager Rajaratnam during 2008. Rajat Gupta was one of the board members in the global investment firm Goldman Sachs during that time.

Srilankan born Tamil American Raj Rajaratnam, who founded Galleon Group, the New York based hedge fund management firm, was a friend of Rajat Gupta. Rajaratnam built up a very successful business and his net worth was reported to be worth $1.8 billion.  He was charged with trading in the shares of several companies with the help of inside information in what was called as the largest hedge fund insider trading case in the US history. He was given an eleven year jail sentence and fined with a civil penalty of more than $90 million in 2011.

It was reported that two of the jurors in the Rajat Gupta case were in tears when they returned to the courtroom to deliver their verdict. It was because they believed that Gupta lived a “story book life” and the “American dream.”  Yes,   Gupta’s life history thus far is an inspiring story for anyone.

Rajat Kumar Gupta was born to a journalist father in Bengal, who moved to Delhi when he was very young. He was orphaned at the age of 18 with his siblings, after his parents died one after another. Rajat completed his engineering in IIT, Delhi and went on to get an MBA from Harvard Business School. Thereafter he joined Mckinsey & Company, the well-known consultancy firm in 1973. He worked hard and was ultimately elected as the Managing Director of the company in 1994. He was hailed as the first chief executive of the company born outside the US. He is also recognised as the first Indian to head a multinational corporation, thus breaking the ‘glass ceilings’ in those days.

He stepped down after being elected to the post for three terms, remaining thereby the chief executive for nine years, the maximum period allowed as per the rules of the company. He continued with the company as a managing partner and later was made senior partner emeritus with a good salary and other facilities including office and staff. Meanwhile after his retirement from active practice, he became associated with many reputed companies, organisations and bodies in different capacities such as chairman, director and   advisor.

He became a member of the board of directors of big corporations, including two multinational firms, namely Goldman Sachs and Proctor and Gamble. He was closely associated with some of the top-notch educational institutions such as Harvard Business School, MIT and Kellogg Schools of Management and University of Chicago in capacities such as member of the board of directors or board of trustees.

He was also involved in the activities of many high profile non-profitable organisations. He was on the advisory board of Gates Foundation, Chairman of the International Chamber of Commerce, trustee on the board of Rockefeller Foundation, founder board member of World Economic Forum, Special advisor on management reforms to the UN Secretary General and a member of the American Academy of Arts and Science.

He was engaged in India related activities also. He founded the Indian Business School, Hyderabad with another Indian American Anil Kumar and was its Chairman. He also co-founded the American Indian Foundation, which is one of the largest American organisations supporting development activities in India. He was also a member of the Advisory Council to the Prime Minister.

Thus Rajat Gupta involved himself in many activities connected with different fields such as business, education and charity. Besides he co-founded companies and non-profitable organizations. He remained a role model for many in the US and India. He is perhaps the only person from India who adorned many organisations at the highest levels in the fields of business and academics in the US. It is a remarkable story of success for a boy who was orphaned during his early years.  

It is very sad to know that this man, who was leading a very successful and happy life, was convicted for securities fraud and conspiracy. He has everything that a human being aspires in life. He has a happy family and all the comforts. His personal net worth was estimated to be more than $100 million. So he does not require anything further in life. The why did he break the law and pass on information to Rajaratnam before it was made public? That is the question for which a clear answer is not forthcoming at the moment. It is believed that he might have expected something in return from the very rich and powerful Rajaratnam in future.

Anil Kumar is another high profile Indian executive who was arrested in 2009 in connection with the Rajaratnam case. This gentleman completed his studies in IIT Mumbai, Imperial College UK and Wharton School, US. He was working with Rajat Gupta at McKinsey and by hard work became a senior partner and director in the company. He is recognized as the one who pioneered the concepts of Business Process Outsourcing and Knowledge Process Outsourcing. With his good social standing, he was also associated with some of the elite bodies. Besides, he was also the Chairman of the Confederation of Indian Industries, US.

He was known to Rajaratnam from his days at Wharton School. In his ambition to go further, Rajaratnam cleverly used some of his connections such as Anil Kumar to get inside information regarding companies and used them for his trading. It is learnt that whatever he gave to Anil Kumar in return was very little. Anil Kumar was also a rich person and had everything in life. The why did he pass on the information?  After his arrest, he pleaded guilty to the charges and was cooperating as a witness to the government. He also settled the amount that he had received from Rajaratnam secretly with the Securities Exchange Commission.

All the three characters discussed above have their qualifications from reputed educational institutions at the international level, were in very good positions earning high incomes and possessing assets worth millions of dollars.  Rajaratnam was considered as the richest Srilankan born person in the world.  Rajat Gupta and Anil Kumar enjoyed a very high status in the society, both in the US and in India. Then, what motivated them to do what they did? In the case of Rajaratnam it was greed. In the case of the other two, it was their hidden desire to amass more. In the case of all the three, there lingers an utter lack of respect for ethics.

Reports note that if Rajat Gupta fails to convince the court in the appeal, the prison sentence could be long, up to twenty years. But many people hope that the sentence would be lesser, based on his background and the fact that he did not get any direct benefit out of his activities. Whatever it is, the damage has already been done. An icon who remained a model to many has failed them.

The latest episode from the US only proves that in the competitive world of global financial markets, the role of greed has not diminished. It also reveals, once again, the ugly side of the high profile executives of the multinational corporations who, with all their wealth, earnings and reputation, are still not satisfied with what they have. But this time they have succumbed to the temptations of a few extra millions and expected benefits, throwing ethics to the winds. 

(Swadeshi  Patrika, Vol.17, No.7, New Delhi, July 2012)

Emerging India Failing State – Economic lessons from the first decade of the twenty first century

Historically speaking, the twenty first century is important to India in more than one way. Beginning from the eighteenth century, for around two hundred years of the second millennium, the country was under the domination of the British. Indians could not do much on their own under the oppressive alien forces. India was suppressed cruelly and her citizens had to face untold miseries. The native systems that had made India a unique nation since the ancient days, with contributions of the highest order in almost all the fields of human activity, had to suffer and die. The country was compelled to do away with and forget the knowledge and expertise gained through experience over many centuries. 

In fact, the Indian economy had to face difficulties from the invading forces for many centuries even earlier. Beginning from the end of the first millennium, the second millennium saw a continuous stream of outsiders pillaging the country and interfering with the native practices that made the country prosperous and peaceful at the same time. Hoards of wealth were swindled out. Different parts of the country were ransacked and many regions came under the domination of outsider- rulers, inflicting serious pain on the native population. 

Indians withstood all the onslaughts with courage and rebuilt the systems to the maximum extent possible, though scars remained all over their bodies. As a result, as the OECD economist Maddison has shown, India was the largest contributor to the global economy even in 1700 with 24. 4 per cent share. It is relevant to know that India’s contribution to the global economy was an astonishing 32.9 per cent during the beginning of the first millennium. The share of India stood at 28.9 per cent a thousand years later, maintaining her position as the most powerful economy in the world throughout the period, followed by China. But things began to change drastically during the British domination, initially through the East India Company and later under the British sovereign rule. 

The native systems that had sustained the economy continuously for hundreds of years were systematically destroyed by the colonialists. Hence at the time of Independence, India was reduced to a poor and underdeveloped country. 45 per cent of the population was living below the poverty line around that period. The industrial and business sectors were very weak. India’s share of trade was very low. The agricultural sector was over populated. Literacy rate was around 17 per cent. This situation led to loss of respect for the country at the international level. 

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With Independence, the country got the opportunity to frame her own economic policies based on the priorities and preferences of her people. It was necessary to formulate an independent policy framework as India had prospered as the most successful economy possessing superior systems of functioning for most of the time in the history. After the country fell into the hands of the alien elements, she could not continue her style of functioning making use of her time-tested native systems, as the motives of the rulers were different. Hence Independence presented the country with a historic opportunity to set things right, rectifying the mistakes of the alien classes that ruled us during the previous centuries, and move forward with a clear vision. But unfortunately the ruling sections did not have a proper understanding of the history of this ancient nation, and so looked outside for ideas to frame policies for deciding the course of action to be followed. Ultimately they chose the socialistic model, conceived in the west less than two hundred years back as a reaction to the circumstances then prevailing there, based on their limited experience and turbulent history. 

Later when the socialistic ideology was discarded even in its own favorite grounds such as the USSR and China, it began losing its appeal. Meanwhile the Indian economy was facing serious difficulties on certain grounds. Hence after about forty years of experiments, the establishment realized that they would not be able to fulfill the objectives with policies based on a flawed economic idea. Circumstances compelled them to look for a change. At that time, history presented another opportunity for the country to formulate policies that would make use of all her potential and make people participate in the progress and share the benefits with joy. 

But alas, the ruling segments once again believed that only the ideologies borrowed from the west would make the country better off. This time they chose the free market ideology as the panacea for the ills affecting the country. It was again adopted without any serious discussion or debate at the national level. The decision on such a vital subject concerning the future of one sixth of the humanity was decided by a few at the top, with the tacit acceptance of the elite and educated. Hence the nation was forced to follow another philosophy born and brought up elsewhere, based on their own narrow views and outlook about the society and the economy. 

As a result, the country still has more than one fourth of the population going to bed without food three times a day. The agricultural sector, which is critical for us, has been facing severe crisis. It is a shame that no tangible steps are taken to revive the sector, even when farmers have been committing suicides. The easy entry of the multinational corporations has forced many of the traditional, small and medium scale industries to close down. Financial markets are increasingly controlled by the foreign institutions. The establishment does not have any clue to decide the future course of action, as the dependent mindset still dominates its thought process. 

* * 

In a period of six decades, India has emerged as the fourth largest economy in the world, with the second highest growth rates. The global economic crisis that devastated most of the richer parts of the world, could not affect India much. Indian businesses have spread to different parts of the world. The corporate sector is in an expansion mood diversifying its activities in distant lands and buying foreign entities, wherever possible. The family based non-corporate sector has silently been contributing a dominant share to the growth of the economy. The Indian economic and business systems are increasingly being recognized the world over as worth studying for emulation. No other country in the world has seen such a turnaround in a period of just sixty years. The country which remained neglected during much of the second half of the twentieth century is now being looked upon as a model for the future. 

What is the reason for such a progress in such a short period of time? How could a country that was decimated by the aliens with brute force make a comeback and emerge as one of the top two promising nations in the very first decade of the twenty first century? How is it possible for a country to move up continuously at a steady and fast pace, even when her policy makers remain confused to identify a suitable policy framework? The answer lies in the functioning Indian systems. 

The economy is family driven, society dominated, highly entrepreneurial and self dependent. The family orientation of Indians makes people save as much money as possible so that the future would be secured. India’s rate of saving was 8.6 per cent of GDP during 1950-51, even when about half of her citizens were starving for food. Compare this with the negative and near zero saving rates of many of the richer countries today. The rates of saving have been continuously on the rise throughout the last six decades, contributing enormously to the growth of the economy. As a result capital formation took place at a faster rate without much difficulty, leading to investments in productive activities. It is only in this context that the Reserve Bank of India has recently noted that 95 per cent of the Indian economy is being financed by the domestic finance. 

The family orientation, combined with the self dependent attitude and the entrepreneurial spirit of Indians, compels them to promote different ventures, however small they might be. As a result, new initiatives are continuously being taken at different levels, making India as one of the most entrepreneurial nations in the world. The types of enterprises that are functioning in the country are of different sizes and varieties. Economic Census 2005 estimates that there were 41.83 million establishments operating under the category of the unorganized sector, providing employment to more than 100 million persons. We have to remember that these are all the units promoted by people from the ordinary and under privileged sections of the society through their own efforts. 

On the other end of the spectrum, there were more than 7, 86,000 companies during 2009, as per the details provided by the central Government. In between these two smaller and the bigger types of organizations, there are millions of small and medium units spread across the country. Earlier the Government of India estimated that there were 2042 clusters engaged in a wide variety of industrial and business activities. The contribution of these clusters in terms of entrepreneurship, employment, output, innovation and turnover is very significant to the economy. It is important to remember that these clusters were developed by the local entrepreneurs themselves, without the involvement of the state and state machineries. Many of these clusters such as Surat and Tirupur are synonymous with their products at the global level. 

For more than a century before independence, India’s rate of growth was either around zero percent or negative. Starting from a very low base, the economy picked up quickly with an average growth rate of 3.5 per cent during the first three decades beginning from the 1950s. The rate steadily increased thereafter to 5.5 per cent during 1980-90, and 6 per cent in the next decade. It averaged more than 9 per cent during 2005-06 to 2007-08, before going down to 6.7 per cent in 2008-09 due to the global economic crisis. The economy started recovering quickly with the growth rate touching 7.4 per cent during 2009-10. There has been a continuous growth over the last six decades, in spite of the confusions and contradictions in the policy making circles. 

* *

We are in a paradoxical situation now. On the one hand, there are serious problems threatening the stability and future of the economy. The ruling establishment does not seem to understand the gravity of the situation and take immediate steps to address the issues. On the other hand, all the international bodies, research firms and think tanks unanimously agree that the Indian economy would continue its growth momentum in future to ultimately over take China and move forward. India is increasingly being looked upon by the rest of the world as a performing economy with a lot of potential for further progress. 

What does this signify? It clearly shows that while India is emerging, it is the state that is failing. This is the lesson we learn after the close of the first decade of the twenty first century. India, with her abundant energy and native strengths, has been constantly struggling to move forward through the hard work and commitment of her citizens, whose roots remain firmly in the tradition and culture of this great nation. But the state, with its colonial mindset and borrowed thinking, continues to fail the country even after sixty years. Is it not time for the state to take stock of its role and rectify its mistakes? 

(Swadeshi Patrika, Vol.16, No.2, New Delhi, February 2011)

What do we expect from foreign universities?

Foreign Educational Institutions (Regulation of Entry and Operation) Bill 2010 has recently been tabled in the Parliament by the Government. The Bill enables the education providers from foreign countries to set up universities in India and offer degrees. They need not follow the reservation norms and are permitted to fix the fees on their own.

The Bill was in fact prepared earlier and had to be kept in abeyance for more than four years due to opposition from various quarters. It was then sent to a Committee of Secretaries, where modifications were made to certain provisions. The Bill is however facing opposition from different sides, including the major opposition parties, students’ organizations and educationists on different grounds. Reports say that there is no consensus even within the ruling party.

The Union Minister for Human Resource Development says that the entry of foreign universities will “enhance choices, increase competition and benchmark quality.” He also feels that the work force will be able to get the necessary training and increase skills. The present Gross Enrolment Ratio of students in higher educational institutions at 12.4 is lesser in India compared to the developed countries. The Ministry feels that foreign universities will help the country to increase the enrolment ratio and India will have more percentage of people studying in higher educational institutions in future.

We have to remember that education is not just another sector in a country. Education enables the citizens to improve their living standards and plays the critical role in shaping the future of the country. The dream of every parent is to give an education that makes children to grow up imbibing the best values, with the required capabilities for life. Hence the Government and the society should be very careful while deciding policies related to education.

Whenever we think of foreign universities, the countries that come across our minds are generally the US, the UK, Canada, Australia and a few others in Europe. A study of the personal lives of the citizens of these countries, their social and economic conditions and the functioning of their university systems reveal that all is not well with their higher educational systems. The purpose of higher education should be to make students better citizens, resulting in the overall development of their lives and that of the societies around them. We all know that many of the western economies are in a very bad shape. There is no saving habit among people in the countries that are known for higher education such as the US, the UK and Australia. Individualistic attitudes have resulted in the large-scale destruction of families and societies. It was reported that in countries such as the US and Australia, more than forty percent of the children were born out of relationships outside marriages. These countries are forced to spend enormous amounts to take care of their families and societies, without substantial results.

Many of the biggest corporations in the world are from some of these countries. The events during the last few years indicate that many of the senior executives of the corporate sector have been engaged in amassing wealth for themselves through all means, at the cost of the interests of the shareholders, public and the governments. Remember that many of these executives are from the much sought after business schools and reputed institutions of higher learning! It is now widely accepted that the education provided by their B schools is not complete.

Paul Krugman, the well known US economist and 2008 Nobel laureate, openly admitted last year that the economic theories of the western countries developed during the last thirty years have failed and proved to be harmful to the world. When we study the history of the west, we can understand that their social and economic ideologies have been continuously failing. The recent economic crisis has landed them in a situation from which they find it difficult to proceed.

At the same time, India has been continuously moving forward after Independence, in spite of the confusions and contradictions at the top. As a result, India is the second highest growing nation in the world today. India was a poor and underdeveloped country when the British were leaving our motherland. But after sixty years, the entire world is turning its attention towards India. The family and social systems of India are looked upon as models by the rest of the world. Our achievements so far, admired by all including the west, have been with our own system of education and institutional set up.

India is an ancient civilization. Education was given utmost importance in the native Indian system. The purpose of education was to make citizens as better human beings and prepare them to contribute to the best of their abilities for the betterment of the society at large. As we all know the first university in the world was established here in our country about 2700 years back. Evidences show that India remained as the most prosperous nation in the world till almost the beginning of the nineteenth century, with pioneering contributions in diverse fields. The surveys conducted by the Englishmen in the early nineteenth century showed that India had an elaborate and a very good system education in the country. Even at that time India’s literacy rate was most probably the highest in the world. Subsequently, the British introduced the Macaulay system of education which resulted in the destruction of the native systems. The approach of the colonial masters led to the decline of the superior position of India.

This is the reason why people like Mahatma Gandhi, Tagore and Maharishi Aurobindo strongly advocated the ‘Indian system of education’ for the overall development of the nation, even before independence. Many educationists and thinkers have been emphasizing the need for India- centric education system during the last sixty years. But unfortunately, we could not even make some of the basic changes that are urgently required.

But in spite of these fundamental difficulties, the Indian education sector has been showing good progress. Governments and societies have established thousands of institutions in different parts of the country. Universities could not increase to the extent required as there were restrictions on their entry for many years. Now we are witnessing a faster growth in the number of universities after the Governments allowed the private sector to establish them.

It is not that the Government cannot create good institutions in India. Many of the institutions promoted by the Governments such as the Indian Institutes of Management, Indian Institutes of Technology and Indian Institute of Science are producing candidates who are comparable with the best people from the best universities in any other part of the world. So what is required is the change in the attitude and approach of the Government. It is unfortunate that the funds allotted by the Government for higher education and the amount spent for it are not to the extent required for a country like ours.

If the Government feels that it will not be able to provide the necessary facilities, it is better to involve the local societies and the private sector, and then monitor them with the necessary regulatory mechanisms. As for the foreign universities, they will come here with their own motives. It is not sure whether the universities that are well known would prefer to come here now. As for the state universities in countries such as the US, many of them are in serious difficulties, as the governments are finding it difficult to provide them with the required funds after the economic crisis. So the universities are increasing the fees payable by the students. As they face difficulties in payment of salaries, they are taking steps to reduce professors and staff. This has resulted in protests in many universities and colleges since last year. There were instances of arrests of students and imprisonment. March 4th was observed as the ‘Day of Action for Public Education’ in more than thirty states across the US.

Against this background, some of their institutions are reported to be looking for opportunities in other countries to keep them in the business. A country such as India with a huge population and high growth rate would be a fertile ground for them. India’s permission to allow them to function from here would make them survive in the field.

There is one point that keeps crossing our minds. Many western countries such as the US and the UK are facing serious social and economic crisis. Learned experts from their own globally reputed institutions of higher learning have been finding it difficult to provide even basic solutions to their problems. When such is the case, what is going to be the use of their universities here? What type of ‘quality education’ will they provide? It is accepted that they are advanced in fields of science and technology. But unfortunately those developments do not benefit the common man. For example, the medical expenses are very high in the US which has the maximum number of Nobel laureates in medicine. What is the use of newer inventions in science and technology, when they are not able to benefit the larger sections of the society?

India has strong cultural backgrounds with thousands of years of experience. The fundamental reason for India’s achievements is the family and community orientation. If India has to emerge and grow as a powerful nation, her unique strengths have to be nurtured and preserved. Many express doubts as to whether the entry of foreign universities will be suitable to our ethos and values. We have to understand here that sex magazines are allowed to be published by the students in some of the ‘most respected’ universities in the west within their own campuses. They are allowed on demand from the students as theirs is ‘free’ society that would like to give ‘full expression’ to the ‘feelings’ of the youngsters. What kind of impact it will create in our family- based society, when such institutions decide to replicate their ‘initiatives’ here? Indiscipline, misbehavior and criminal activities are reported in large numbers in some of their institutions. Moreover the recent studies undertaken in their countries have revealed that about three fourth of the colleges do not groom their students properly.

In this situation, different options could be explored. Many Indians are working as professors, scientists, engineers, doctors, IT experts and corporate executives in reputed establishments in the developed countries. With their experience in western environments we can involve them to improve our higher education, wherever we feel it is necessary. In the recent years, some of the management professors working abroad have established institutions here. They are doing well. We can encourage such initiatives in other fields also. The Government can provide them the necessary support.

We all know that there is need for training in India at different levels. A latest study by the US professors shows that the Indian corporate sector is many times ahead of the US in providing the required training to their employees (Harvard Business Review, March 2010). The non-corporate sector that contributes the maximum to the national income and growth has its own arrangements to train the required people. But they are not always adequate. The Government can help the industrial and business sectors by providing necessary support to the major clusters, where thousands of people are working. Training can be provided to the maximum number of people at the cheapest cost, when the work is undertaken in collaboration with the local industry/ business associations. We have to remember that in the earlier centuries, the guild system provided the necessary training for different types of vocations. Such systems can also create entrepreneurial opportunities for many unemployed persons, even while providing the required personnel for the industries.

India has a huge pool of skilled manpower that does not have formal education. A few years back the Department of Science and Technology reported that around 30 per cent of the innovations taking place in the country are through illiterates. A certificate by the college/ university would help the uneducated and under educated sections that have skills improve their status and positions and make them recognized by the world. The Government has to take necessary steps to allow educational institutions to certify the uncertified but skilled people, by following proper evaluation methods. We don’t need foreign universities to do this.

The contents of the contemporary education system are largely based on the western experiences and theories. They are not relevant to our conditions and many of these theories have failed in their own countries of origin. It is time we changed them immediately. Moreover, the Indian universities should be given the necessary option to make experiments and innovations, within a broad set of parameters. The Indian private sector seems ready to make investments in education. They are capable also. Hence the Government should take necessary steps to make use of them.

A few basic questions disturb our minds whenever we think of allowing foreign universities in India. What kind of higher education do we expect from the universities of foreign countries, where people are failing in their own personal lives, and their social and economic systems are facing serious crises? Why don’t we make the required changes in the higher education system with our own resources and inputs, when we have the necessary background and fundamentals with us?

( Swadeshi Patrika, New Delhi, June 2010)