Utilisation of Gold

The Reserve Bank of India must take a contrarian step on selling and using its reserves in the form of gold. An Immediate, Two-Pronged Release It needs to quietly release 25 metric tonnes of gold in consultation in the physical market, and another 30 metric tonnes for exporters and users for utilisation in the export agenda. This can be done through two state-owned entities: Central Bank of India and Exim Bank of India. Such a move would temper international markets and high expectations. Rationalising Gold Holdings One way of rationalising the asset agenda is that private hoards in India are much larger, and the Reserve Bank of India need not hold the current level of holdings. State-owned banks can manage the flow and stocks of gold, which will channel the gold in organised forms and curb smuggling. Recycled gold also needs to be addressed as a useful activity. Gold for Bilateral Trade and Traceability Gold is an asset class which can be used to address bilateral trade. Government and state-owned banks can purchase up to 290 metric tonnes of gold from the USA duty-free, and service the Indian markets only with freshly mined gold with India markings and embedded identifiers. This will make the gold traceable to any extent. Redefining Bank Roles State-owned banks can be barred from giving gold loans, with this activity managed entirely by non-state actors. At the same time, state-owned banks can back state-owned entities to enter into progressive custodianship of warehoused metals. The Objective of Immediate Action The immediate step should be to sell the gold quietly next week in India. The objective would be: a) To neutralise the India Rupee premium and make it available at world cost. b) To supply to neutralise losses in Gold Redemption Bonds due to unusual price increases. Profits will be available next year as RBI surplus. Indian household assets remain safe, except those accrued through criminal activities. If world markets react, it is best to remain calm – it is a heated market. A Geostrategic Shift: From London to Tokyo Additionally, move London gold to Tokyo and lend it to Indian banks, which can borrow in the Yen–Rupee pair, or not. The Yen can then be utilised by Japanese companies in India for shipbuilding, engines, boats of all descriptions, and Fujitsu supercomputers for government applications. Japanese companies, with Indian government assistance, can also support archaeology and heritage protection. Cooperation in “wholesale banking” in Okinawa can help shorten air trips. Up to 200,000 families can go on two- to three-month work visas and vice versa.Japanese-built cruise vessels till 2040 can support Eastern Asia Pacific needs. There can also be collaboration in Chile and Argentina for goods and services, as well as currency printing and arrangements.
Posted by G Giridhar Prabhu

Embraer in India

A Proposal for Integrated Regional Development Introduction: The Brazilian aircraft company Embraer is steadily advancing in the global civil aviation market. With India emerging as one of the fastest-growing aviation hubs in the world, the opportunity to bring Embraer into India is not only timely but strategically significant. By combining Embraer’s expertise with India’s competitive advantages, this partnership can catalyze long-term development in aviation, logistics, services, and regional connectivity. This proposal outlines how Embraer can establish operations in India, with Goa as its headquarters, Kolhapur as a potential assembly hub, and extended integration across ports, states, and industries. It also highlights how such a collaboration can be aligned with India’s 30-year economic vision. India’s Advantage in Aviation Partnerships India has steadily built capacity in manufacturing, design, and maintenance of critical spaces, making it a natural partner for a global player like Embraer. Government collaboration, both at central and state levels, is essential. Institutions like IFCI can play a catalytic role, perhaps through a subsidiary acting as Embraer’s advisory and general sales agent for a 30-year period. Embraer has expressed interest in investing in India. A central Navratna PSU could participate as a minority partner, with total stakeholder equity capped at 26%. Such an arrangement would encourage Embraer while ensuring domestic participation. Over time, high-net-worth individuals and private enterprises in India could also collaborate to strengthen transportation services, driving incremental improvements for decades. Goa and Maharashtra: A Strategic Base Goa emerges as a natural choice for Embraer’s India headquarters. Dabolim airport, originally a military facility, already has the infrastructure and symbolic significance to host such a base. With Brazil currently holding the G20 Presidency, the Goa-Brazil connection can be strengthened by inviting Embraer to set up operations here. However, while Goa provides the headquarters advantage, Kolhapur airport in Maharashtra offers the land required for aircraft assembly. With around 1,000,000 square feet of available space, Kolhapur can support Embraer’s manufacturing and testing facilities. Together, Goa and Maharashtra can create a powerful ecosystem — Goa handling leadership, services, and training, while Kolhapur manages assembly and operations. Expanding Regional Connectivity – Dabolim and Mopa airports can anchor a broader aviation strategy. – Women pilot training and validation centres could be established with DGCA’s support, encouraging India’s growing pool of female pilots. – UDAN regional flights can connect smaller destinations within 45–60 minutes, including new-generation connections to GCC nations. – Cargo capacity can be utilized to transport fruits, vegetables, and other products from Maharashtra and nearby regions, extending to Mopa for added efficiency. This model leverages the 150 km hinterland from the Goa-Maharashtra border, opening space for enterprise, population absorption, and industry-related growth. National and Global Extensions The proposal goes beyond Goa and Maharashtra. Nashik can be linked through dedicated flights, complementing HAL’s expansion. Kota in Rajasthan, with its underutilized old airport, could host additional Embraer assembly and testing facilities. The long-term business potential is immense — Embraer’s operations in India could generate about ₹100,000 crores over 30 years. Partnerships through CII and the Goa Chamber of Commerce can connect with Brazilian counterparts, establishing joint ventures outside Fortaleza in Ceará state. Globally, a South-South aviation and logistics corridor can emerge — linking Fortaleza to Senegal, Ethiopia, and onward to Goa. Embraer’s cargo planes would also boost India’s trade links with Europe, GCC nations, Egypt, Israel, Mauritius, South Africa, and Mozambique. Integration with Ports, Shipbuilding, and Containers Western India’s ports — Vasco da Gama, New Mangalore, and Cochin — can play a major role in this ecosystem. Cochin Shipyard is already expanding and can complement Goan enterprises in building smaller aircraft components. India’s container industry has immediate potential for 2 million containers. Goa, with its proximity to ports and rail networks like the Konkan Railway, can emerge as a container hub. Converting the Mormugao Steel Limited campus into a container manufacturing SEZ, supported by PLI incentives, will add significant value. Building a Services-Driven Economy in Goa For Goa, the Embraer partnership is more than aviation — it is about transforming into a services-led economy. Taxi electrification: Incentivizing 20% of Goa’s 18,000 taxis to switch to EVs. Interstate permits: Agreements with Maharashtra (2,000 permits) and Karnataka (1,000 permits) to boost regional movement. Residential development: 10,000 new homes and 10,000 guest rooms in South Goa for sustainable growth. Lounge networks: Rest stops every 10 km with EV charging, hygiene facilities, and 24-hour services. Taxi drivers can also serve as couriers for government and postal services, improving efficiency and reducing costs. This, combined with pooling systems and minibuses for peak demand, will ease congestion and generate revenue. Economic and Employment Impact The numbers tell their own story: ₹500 crores in new vehicle sales could generate ₹140 crores in GST for Goa. 5,000 new EVs and minibuses could create fresh mobility services. Lounge and charging facilities can generate employment for 10–15 Goans each, supporting hourly wages of ₹100–₹150. Long-term, 50% of Goa’s taxi fleet can become electric, with central support programs boosting innovation. IT and Government Infrastructure Goa can also attract IT and server facilities. Hosting data centres for the Income Tax Department, GST, RBI, SEBI, and other agencies will decentralize India’s IT load from congested Delhi NCR. With investments of ₹5,000 crores, Goa can support hardware and software projects, strengthening resilience against disruptions like fog, earthquakes, or agitations. Conclusion Embraer’s entry into India, anchored in Goa and Maharashtra, represents more than aviation growth. It is an opportunity to align aviation with logistics, services, IT, and sustainable living. Goa, with its service-oriented culture and strategic geography, can become a hub of peace, prosperity, and enterprise — extending its influence into neighboring districts and linking India to Brazil, Africa, and beyond. This integrated development proposal demonstrates how India’s aviation future can also drive regional harmony, sustainable employment, and innovation for the next 30 years.
Posted by G Giridhar Prabhu

Paddy and Rice

Why the Distinction Matters for India’s Farmers and Global Trade In the complex worlds of policy and agricultural practice, it is absolutely crucial to distinguish the basic agricultural produce: Paddy. Often, in the hustle and bustle of India, these fundamental basics are overlooked. So, let’s be clear. What Exactly is Paddy? In agriculture, “The term ‘paddy’ refers to rice that is still in its husk. It is the harvested rice grain that has not yet been milled to remove the outer husk.” () The farmer grows paddy. Rice is the product obtained only after the husk is separated. This distinction must never be confused in any form of policy or practice. For the farmer, the goal is simple: to grow enough paddy for family consumption. The surplus is then sold in exchange for money to sustain a livelihood. It is a cereal basic to life, with wheat being the primary alternate, though other choices are available for daily consumption. The Dignity of the Farmer and Their Choices Economics must be applied hand-in-hand with social and political objectives in the conduct of the State’s affairs, or the Government as we call it. The dignity of the individual needs to prevail when we discuss the farmer, his produce, and how to make his life better. It fundamentally comes down to the choices the farmer can make at the time of planting. As producers, farming families take significant risks when they plant their seed or seedlings—sometimes out of necessity, sometimes out of habit. We must create a system that honors and supports these choices. A Vision for Export: Evacuating Paddy, Not Just Rice India needs to export 10 million metric tonnes of paddy every year, in addition to rice. Why? The reason is threefold: evacuate, evacuate, evacuate and, in doing so, create an infrastructure to mill rice within importing nations. This strategy allows India to avoid direct rivalry in the world trade of milled rice. Instead, India can provide a steady supply, allowing rice surpluses from other nations like the USA to dissipate around the world based on natural demand. This market need not be subject to harmful speculation or volatility. Both US and Indian farmers have choices and, based on forecasts, can grow any crop they see fit. Building Resilient Buffer Stocks Abroad It is now time to consider that buffer stocks should be held at destination points. Each importing nation should have at least one year’s equivalent of consumption, milled at convenient locations. The logic behind this is sound: Rice is best milled after at least 9 months to one year of aging. There is more consistency in the safety of rice stored as paddy than in the storage of milled rice, which is best consumed within days or weeks. A household can store about 3 months’ worth of milled rice, but not more without risking infestation. (Note: Insect repellents need not be synthetic – there are natural options that can be approved by regulatory and sanitary/phytosanitary authorities.) The Practical Advantages of Paddy Export The logistical benefits are clear: – Paddy can be exported in bulk using ventilated marine containers by liners. – Rice has to be bagged, which is more costly and labor-intensive. The milling industry can export second-hand or first-hand machines to African nations that are importers. Governments can encourage the establishment of free zones as hubs and trading centres, making paddy available to millers at any time, whether in spot or forward markets. The advantage for India is immense: paddy exports can happen immediately after harvest. The essential aging process can take place during transit and at the destination. This means precious working capital need not be allocated to prolonged storage of paddy by the Government or private traders. Farmers or traders can evacuate paddy directly to ports or SEZ-based warehousing. A terminal market in rupees can be established with the Forward Markets Commission (with State Government approval) within the customs-bonded premises of ports. Financing a New Global System Indian enterprise, through institutions like Exim Bank and NABARD, can extend investment guarantee protection to millers in consuming nations, enabling them to undertake milling locally. Working capital management can be arranged by Indian commercial banks with correspondent relationships abroad, providing up to 80 percent of the value for shipment or storage. Once the rice is milled, the consumption function is taken care of by local consumers. This elegant system effectively eliminates all consumption-related issues for India. A Proposal for Leadership India’s trade relationship with the UAE has always been strong. The Indian Cabinet can pass a resolution for exporting 5 million metric tonnes of paddy – of any quality or variety that the farming community chooses to part with. When the UAE agrees to hold reserves for itself and for the region, including Africa, all nations prosper. In such a system, Australia and the US can also export their paddy. Rice, with its quality assured, will seamlessly find its way to any part of the consuming world. This is a vision for a more stable, dignified, and efficient global food system, starting with the simple, crucial distinction between paddy and rice.
Posted by G Giridhar Prabhu