India’s Agenda on the Rupee – RBI Economic Action Plan

Context: Why This Matters The RBI is a creation of Parliament, and any surplus it returns must be used with intention and integrity. According to the Preamble of the Indian Constitution, the Republic must secure Justice – social, economic, and political – and the Dignity of the Individual. In that spirit, the dividend must be: – Used only for economic purposes. – Kept out of the general expenditure budget. – Focused on sustainability, corrections, and corrective actions. The central idea: Empower India’s economy from within, reduce external dependency, and honour India’s savings and institutions. Key Proposals at a Glance Capitalising Indian Financial Institutions: – Capitalise 100% Central Government-owned financial institutions through Equity Shares, Preference Shares, and Long-Term Bonds. – Recognise these as Sovereign Special Purpose Vehicles with clearly defined mandates. Reaffirming Sovereignty in Currency and Borrowing: – Clearly declare a list of institutions under Central Government ownership with RBI concurrence. – Mobilise internal savings and eliminate dependence on foreign currency sovereign loans. Five National Resolutions Resolution 1: No More Sovereign Borrowing in Foreign Currency India need not borrow externally. The Indian Rupee, powered by domestic savings and institutional integrity, can support all State functions and capital investments. Resolution 2: Prepayment of Multilateral Borrowings India should repay existing multilateral loans – ahead of schedule, by November 2026. Outcome: – Exit future borrowing from the World Bank, ADB, etc. – Let RBI make rupee provisions and allow specialised institutions to finance Indian projects in Indian currency. Resolution 3: A Strategic Investment Framework – Let Indian banks and financial institutions invest part of their financial assets in global securities. – Propose: – SLR to 22% – 6% to be invested in Multilateral Agency Bonds (in collaboration with RBI and the Ministry of Economic Affairs). Resolution 4: Capital Account Convertibility for National Entities – Expand Current Account transactions in all currencies. – Empower public banks and Indian financial entities to handle capital account convertibility under government guidance. Resolution 5: A Financial Services SEZ Cluster – Establish a Special Economic Financial Cluster under RBI & SEZ Acts. – Locations: Ladakh, Goa, Tiruchirappalli, Bhubaneswar, Bhopal, Mangalore, Chandigarh. – Impose strict capital convertibility regulations to protect Indian interests. India’s Debt Position (Estimated) As of March 2025: ₹181.74 lakh crore As of March 2026: ₹196.78 lakh crore Message: India must handle its finances internally. It can. It should. As of April 4, 2025: Foreign Exchange & Reserve Strategy – Forex Reserves: $676 billion – External Sovereign Debt: ~₹6.18 lakh crore Proposed: – Prepay all external borrowings. – Start purchasing World Bank or equivalent securities with our reserves. – Convert RBI’s holdings of US Treasuries into development securities. – Avoid complex FX hedging by focusing on early repayments and rupee-based asset management. Regulatory Actions: CRR and SLR – CRR Reduction: Reduce to 3%. – SLR Increase: Raise to 22% to absorb and reallocate surplus liquidity meaningfully. Strategic and Policy Coordination To succeed: – Ministry of Economic Affairs and RBI must stay in sync. – Public messaging from key offices (PMO, Cabinet Secretariat, DEA) must be clear and consistent. – Parliamentary approval and transparent debates may be required for legitimacy. Capital Account Convertibility – India’s Next Step This plan is a measured path toward Capital Account Convertibility, echoing the vision of: – Dr. Manmohan Singh – Dr. C. Rangarajan – Dr. Bimal Jalan – Dr. Y.V. Reddy – Dr. Subbarao – Dr. Raghuram Rajan This also gives partial implementation to the Tarapore Committee Reports I & II. Conclusion: Towards a Sovereign Economic Future India does not need to chase global credit ratings when it does not borrow externally. The world needs India as a banker to the world, not merely a borrower. This is the moment. Let the Rupee rise. Let India lead. References 1. Tarapore Committee Report I & II 2. Budget Papers – 3. RBI Bulletins and Publications by Former Governors 4. Contemporary Financial News and Anal ________________________________________________________________________________________________ The above suggestions were sent to the RBI and various other dignitaries on 2nd June 2025
Posted by G Giridhar Prabhu

Josephine Hogas

The Untold Story of Josephine Hogas and the Cashew Revolution An Intrepid American in Goa The American lady in this picture is Ms. Josephine Hogas, an adventurous woman who travelled from Manhattan to Goa and collaborated with the Zantye family for the export of cashew kernels. She likely discovered the potential of cashew processing by witnessing how it was made. In 1917, Goa was still Portuguese territory, and it is evident that Josephine resided in Panjim city. Meanwhile, Malvan (in present-day Maharashtra) was under the Bombay Presidency of British India. It is believed that the Zantyes were among the first to establish a factory for cashew kernel processing—possibly the earliest organized venture of its kind. This photograph still hangs in the office of Mr. Suresh Zantye, who continues the family business into its fourth generation. A Chance Encounter and a Lost Story The tale of Josephine Hogas surfaced unexpectedly during a casual conversation about cashews. A stranger casually dropped her name, sparking my curiosity. I had always been intrigued by stories of innovation and entrepreneurship, and this was one I had to uncover. Mr. Suresh Zantye shared an oral account of how his grandfather began cashew processing in Malvan and Bicholim (Goa) around the same period. The method? Pan roasting—a groundbreaking technique where raw cashews were roasted over a perforated metal sheet placed on a fire made from jungle wood, supported by four stacks of laterite stones. This was dangerous work, both physically and mentally—playing with fire, quite literally. Historical Context: Marathas, Portuguese, and the Cashew Trade Long before this era, the Sawantwadi region (ruled by the Bosleys) extended up to Belgaum’s borders. The Muslim emperors held sway till Bijapur, with frequent skirmishes along Maratha territories stretching to Hyderabad. Goa, under Portuguese rule, was a distinct territory. The Zantye family had their roots in Bicholim, just 20 km from Maharashtra’s border. Travel then was by horse carriages or bullock carts, yet trade routes like Bicholim to Malvan were well-established, facilitating the cashew trade. The family’s original surname was Prabhu, but “Zantye” was likely added as a Portuguese-sounding suffix for ease of business. These aren’t mere speculations—there are written records, possibly worthy of a museum, marking them as India’s first cashew business family. Josephine Hogas: From Trader to Innovator Josephine Hogas wasn’t just a trader—she was a classic entrepreneur. The allure of cashews must have ignited her imagination. Though her exact role remains unclear, this year marks the 100th anniversary of organized cashew manufacturing in Mangalore. Around the same time, Pierce Leslie India Limited (based in Cochin/Mangalore) expanded from coffee into cashews. By 1925-26, cashew exports to the UK were well-established. However, a persistent problem plagued the industry: Infestation. The first shipment to the USA arrived infested, but instead of giving up, American ingenuity saw it as a challenge to overcome. Solving the Infestation Puzzle Josephine returned to Panjim, determined to find a solution. A tennis club plaque still commemorates her presence there. She deduced that removing oxygen—the lifeline for pests like Tribolium Castaneum—was key. Mr. Jeffrey Abels of FTS Laboratories could verify whether this pest has troubled cashews for 117 years. Her innovation aligns with classic theories of entrepreneurship—turning obstacles into opportunities. The Vita Pack Machine: A Legacy Vita Pack Corporation (Josephine’s buyer) later exported a specialized machine to India. Even today, Indian workshops replicate this “Vita Pack machine”—a marvel of engineering that deserves academic study. The Evolution of Cashew Trade Initially, cashews were shipped in KO-type tins (Kerosene Oil tins), sturdy enough for a 6,000-mile sea journey. Only in 1984, with Sealand Corporation’s containers, did packaging shift to paper cartons. This story deserves a documentary—perhaps by Discovery Channel or National Geographic—tracing the commercial geography of cashews, from Kollam’s barges to Cochin’s ports, and finally to Manhattan. A Century of Cashew Enterprise This is the story of 108 years of perseverance, innovation, and global trade. Josephine Hogas stands out as perhaps the first woman to solve a critical food preservation problem in the cashew industry. Her work spurred factory expansions across India’s west coast, with Mangalore emerging as the hub of cashew innovation. Final Thoughts At its core, this tale is about human ingenuity—how ideas, observation, and determination bridge local needs with global commerce. The potential for innovation remains vast, and stories like Josephine’s remind us that entrepreneurship is timeless. GGP 27th April 2025
Posted by G Giridhar Prabhu

The Playful Path to Creativity

A Reflection on Gaming Start-ups and India’s Potential Introduction: A Call for Playful MindsIn a world that demands innovation and problem-solving, the need for creators who can design and develop games is more relevant than ever. This is not merely about entertainment; it’s about fostering a playful spirit that can transcend traditional boundaries of thought. Creativity, Indian Philosophy, and the Future of Innovation “Creativity starts the moment thinking stops.” – J. Krishnamurthy J. Krishnamurthy’s philosophy invites us to step into playfulness as a pathway to creativity. This is especially relevant for game creators and innovators who, to be truly ground-breaking, must embrace the spirit of play. Yet, this playful mind-set often collides with the practical concerns of financial backers, who prioritize tangible returns. Peter Drucker once said, “Innovation is a tool of an entrepreneur.” While Drucker wasn’t a specialist in creativity, he framed innovation as the cornerstone of entrepreneurship. In India, this concept takes on a different dimension, shaped by our unique socio-economic and cultural context. Can we balance the structured needs of entrepreneurship with the unstructured essence of creativity? Goa: A Creative Base Amid Global Shifts As someone who has visited Goa for over five decades, I see its potential as a hub for creativity and leisure. However, in the larger picture, the Asia-Pacific region, including India, is poised to shape the future. While Goa embodies playfulness, India often isolates itself from global influences, perhaps due to a colonial hangover or misinterpretations of Vedanta. India’s return to the principles of Buddhism, particularly the Eightfold Path, could help bridge this gap. These teachings emphasize mindfulness and balanced living—qualities that could guide both personal creativity and collective progress. A Vision for India’s Coastline Goa aside, I envision an “intelligent coast” stretching from Trivandrum to Panvel, encompassing underpopulated areas like Dakshina Kannada. This region has untapped potential for employment generation, fostering a blend of creativity, innovation, and sustainable development. To leverage this potential, we must focus on creating meaningful employment—jobs that not only provide income but also align with the aspirations of a modern, forward-looking India. Creativity and the Ability to Play A compelling perspective on creativity emerges from the work of Donald MacKinnon, who found that highly creative individuals aren’t necessarily more intelligent than their peers. Instead, they have the ability to get into a specific state of mind—a playful, childlike mood where ideas are explored for pure enjoyment.This aligns beautifully with Krishnamurthy’s philosophy: when we stop overthinking, creativity begins. Playfulness isn’t just an indulgence; it’s a mind-set that enables natural creativity to flourish. Conclusion India’s path forward lies in integrating its rich philosophical heritage with modern innovation. Whether through the playful creativity of Goans or the Eightfold Path of Buddhism, we must cultivate an open, adaptive mind-set to thrive in an increasingly interconnected world.As we strive to build a better future, let’s remember: innovation and creativity aren’t just tools—they are ways of being. Giridhar Prabhu
Posted by G Giridhar Prabhu
Dr Manmohan Singh (26th September 1932 - 26th December 2024)
REMEMBERING DR. MANMOHAN SINGH A Visionary Economist Today, as I reflect on the life of Dr. Manmohan Singh, I am reminded of a leader whose quiet strength and intellectual brilliance have played a pivotal role in shaping the course of modern India. Dr. Singh was more than just a policymaker – he was a scholar, an economist, and a statesman who dedicated his life to serving his country with humility and integrity. As India’s Finance Minister in 1991, Dr. Singh spearheaded a series of transformative economic reforms during one of the country’s darkest financial crises. His policies of liberalization, deregulation, and globalization redefined India’s economic trajectory, opening the doors to foreign investments and unleashing the entrepreneurial spirit of millions. A Prime Minister of Grace and Vision As Prime Minister from 2004 to 2014, Dr. Singh initiated landmark programs like the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and the Right to Education Act, exemplifying his vision for inclusive growth. On the global stage, his diplomatic acumen fostered partnerships that elevated India’s standing, most notably through the Indo-US nuclear deal. Though Dr. Singh’s tenure was not without challenges, his calm demeanour and steadfast dedication to democratic values stood as a beacon of stability. A Humble Connection I was privileged to experience Dr. Singh’s humility and respect for ideas first-hand. In 2001, in his capacity as Leader of the Opposition, he graciously acknowledged a letter and accompanying papers I had sent on interest rate policy. His formal yet warm response expressed his intent to study the materials with interest. This small gesture reflected the essence of Dr. Singh: A leader who valued every perspective and treated every exchange, no matter how modest, with sincerity. It remains one of my most cherished memories of him. A Legacy of Service We should strive to emulate his values: integrity, diligence, and a relentless commitment to the greater good. Though Dr. Singh is no longer with us, his life and work will continue to inspire and guide me – and countless others – for generations to come.
Posted by G Giridhar Prabhu

Kaju Katli

No Silver – Serve on a Silver Platter Kaju Katli, a treasured Indian sweet, is more than just a delicious dessert – it embodies a rich journey, cultural heritage, and unique nourishment. Made from cashew, this sweet treat reflects a story of resilience and tradition that stretches across continents. From the Jungles to India: The Cashew’s Remarkable Journey The cashew’s journey began in the remote forests along the Brazil-Venezuela border. This “perpetual seed” traveled across oceans to the coast of India, where it found a new life. Unlike most foods, the cashew cannot be eaten straight from the tree. It needs to be roasted over fire – twice! Thus it earned its reputation as a “hard nut to crack.” In just a century, this nut has transformed into a staple for millions, now enjoyed by crores of people across the world. No Silver – Serve on a Silver Platter In India, Kaju Katli is often served on silver plates, a symbol of its elevated status. Though the sweet itself contains no silver, the tradition of serving it this way highlights the respect and celebration associated with it. Each piece of Kaju Katli reflects more than flavor. It is a treat that carries significance, served with reverence and enjoyed with gratitude. A Sweet for Strength and Well-Being Cashew is uniquely suited for human nourishment, integrating fully with the body without waste. This special quality makes Kaju Katli a symbol of “aayuh” (longevity) and “bala” (strength). As it reaches people worldwide, the cashew has become a gift from nature, multiplied and made accessible for the well-being of all. Gratitude for the Producers Behind each bite of Kaju Katli is the dedication of cashew producers. It is them who bring this unique nut to life, making it available for celebrations, traditions, and health. Their work has turned this simple seed into a global symbol of nourishment and joy. So, the next time you savour a piece of Kaju Katli, remember it’s not just a sweet. It’s the legacy of a nut that crossed continents, transformed by fire and tradition – to bring strength, joy, and gratitude to every celebration. == “It’s Diwali season and I’m trying popular Diwali sweets to see which ones spike my blood sugar the most. Today I’m trying 4 pieces of Kaju Katli, about how much I would normally have. 50 grams in total, 225 calories. Let’s see what happens. Last piece. Let’s see what my glucose monitor says 38 mg increase. Just 4 tiny pieces of Kaju Katli leading to this type of increase is not less. But on the bright side, it is lesser compared to when I had 2 Gulab Jamuns which had increased my blood sugar levels by 46 mg. But you know one thing I’ve noticed, whenever I have fruits with simple sugars, they tend to increase my blood sugar levels by similar amounts. For example, 1 plate of watermelon, 48 mg. 2 apples, 40 mg increase.” ==
Posted by Amrita

RBI Brings Home Gold

India Brings Back 102 Tonnes of Gold From Bank of England on Dhanteras in a Move Toward Economic Sovereignty Announced on Dhanteras, this decision marks a significant step in securing India’s national wealth domestically. Proposal to Relocate Gold Reserves to India Gains Approval: Earlier suggestions to the Prime Minister’s Office advocated for storing India’s gold within the country, including at the Rashtrapati Bhavan. A Symbol of National Pride and Heritage: Repatriating the gold symbolizes India’s dignity and economic independence, showcasing forward-thinking governance. Building a Strong Foundation for Financial Independence: Bringing reserves back to India reinforces the nation’s commitment to economic self-reliance and sovereignty. Safeguarding National Assets and Empowering the Indian Economy: This move supports the vision to strengthen the Indian Rupee’s status globally while ensuring prosperity and security for future generations. A Global Currency Initiative for the Indian Rupee The Reserve Bank of India (RBI) currently maintains a USD 50 billion swap arrangement with the Bank of Japan, overseen by Deputy Governor Shyamala Gopinath. With the Japanese yen depreciating by 45% against the USD to a current rate of 154 yen, there is a timely opportunity to consider a Rupee-Yen arrangement that could provide significant economic advantages for India. This calls for a well-structured, long-term mechanism with Japan to support the growth and prosperity of both nations over the next 30 years. 1. Repatriation of Gold Reserves India’s gold reserves should be transferred from the Bank of England in London to a secure facility within Rashtrapati Bhavan in India. Guarded by the elite Presidential security, this relocation would symbolize national wealth and ensure dignified stewardship. With high security in place, the public could view the gold holdings for a nominal fee, alongside a rotating exhibit of valuable state-owned jewelry or items lent by private collectors, adding a cultural dimension to this initiative. 2. International Circulation of the Indian Rupee The Government of India and the RBI should collaborate to print Rs 1,000 notes in Japan for international use. These notes would be distributed by Japanese banks in global financial hubs, backed initially by the Yen, to encourage Rupee circulation worldwide. In India, the notes would be honored but kept from being introduced as additional currency to control inflation. Foreign nationals and Indian citizens traveling to and from India could carry up to Rs 50,000 per person, subject to standard customs declarations. 3. Rupee Seigniorage and Investment This initiative would allow the RBI to benefit from seigniorage, creating Rupee funds available for investment within India and abroad, thereby advancing the Rupee as a convertible currency. Indian embassies, consulates, and expatriates should be able to exchange this currency globally at banks and currency exchange counters. 4. Digital Rupee Expansion A digital equivalent of the Rupee should be made available by the RBI to facilitate international transactions, complementing the existing digital Rupee platform. 5. Convertibility for Investors Convertibility of the Rupee should be ensured for both domestic and international investors, bolstering its appeal as a currency for global commerce and investment. 6. Strengthening Defense with Nuclear-Powered Aircraft Carriers India should invest in nuclear-powered aircraft carriers (81,000 to 90,000 metric tons) equipped with Rafale jets to secure its strategic interests for the next 70 years. 7. Prepayment of World Bank Loans India should aim to prepay its loans to the World Bank, working toward independence from future borrowing from the World Bank or IMF. A structured plan for repayment should be implemented by the next administration. 8. Investment in World Bank Bonds Indian banks should be encouraged to invest USD 70 billion in World Bank bonds. This bond investment could provide influence in global financial structures and potentially facilitate rescheduling of loans for other debtor nations, benefiting about 80 countries. 9. Expansion of the Indian Foreign and Trade Services The Indian Foreign Service, Consular Services, and Indian Trade Service should be strengthened, with the UPSC tasked to recruit Junior and Senior Foreign Officers, as well as Trade Officers, on 10-year Short Service Commissions. 10. Introduction of Rs 300 and Rs 400 Notes The Government of India and the RBI should explore issuing Rs 300 and Rs 400 notes, accompanied by relevant national symbols, to enhance the Rupee’s utility and appeal. In partnership with the top 10 French banks, including BNP Paribas, Crédit Agricole, and Société Générale, the establishment of a significant banking presence in India’s GIFT City can help Indian banks manage Euro accounts, thereby facilitating current account operations with Europe. This would foster a seamless connection with the Eurozone’s extensive economy and allow banks like HSBC to manage multicurrency accounts for various European nations, reinforcing India’s financial connectivity on a global scale. Additional Strategic Collaborations: 1. Defense Collaboration – Support for nuclear-powered engines for seven aircraft carriers over 35 years is critical for India’s maritime strength. 2. Aerospace Technology Development – Indian institutions like IITs, NITs, and Polytechnics should collaborate with French engine manufacturers for advancements in aircraft engine technology. 3. Maritime Logistics – Establish a support framework for a registry of approximately 2 million marine containers, ensuring infrastructure for global logistics. 4. Central Banking and Bonds – Participation in global central banking and bond-holding activities will integrate India further into international financial markets. 5. French Language Training – Partnerships between Indian universities and French institutions for enhanced French language training can strengthen cross-cultural and economic ties. These measures represent a comprehensive approach to positioning the Rupee as a globally accepted currency, while bolstering India’s strategic, economic, and defense capacities for long-term stability and growth.
Posted by G Giridhar Prabhu

Okinawa for India – Japan Collaborations

Why Choose Okinawa for India-Japan Collaborations? Okinawa is not just a gateway to Japan, but a hub of potential for deeper collaborations between India and Japan in the 21st century. With its strategic location and cultural openness, Okinawa can play a pivotal role in fostering economic, political, and social ties between these two nations. Here’s why Okinawa should be at the forefront of such partnerships: Geographical Advantage Okinawa’s proximity makes it an ideal entry point for flights from India, cutting travel time and improving aircraft turnaround efficiency. Strategic connections from Okinawa to the rest of Japan will also boost business and leisure travel, creating new economic opportunities. Code Sharing Among Airlines Indian airlines could embrace code-sharing agreements to streamline air travel between India and Okinawa. For instance, a traveler flying from Chennai with IndiGo could return via Air India to Kolkata, creating seamless travel options for passengers. A Hub for Indian Engineers Okinawa has the potential to host 20,000 to 30,000 Indian engineers, fostering economic growth through joint ventures in aviation, engineering, and technology. These engineers will contribute not only to Japan but also support Indian growth in various sectors. Asia-Pacific Support Services Okinawa can become a central player in providing support services for the Asia-Pacific region, bridging political, economic, and social interactions between India, Japan, and other regional players. Bilateral Currency Integration The proximity of Okinawa to South Korea and Taiwan makes it an ideal location to initiate currency integration between the Yen and Rupee, facilitating smoother trade not only between India and Japan but also with other Asia-Pacific economies. Expanding Global Leadership India’s access to Asia-Pacific communities can be enhanced by using Okinawa as a collaborative base. This can promote global leadership through partnerships with countries like New Zealand, Australia, and Pacific Island nations. Cultural Integration Okinawa could be the cultural bridge between Japan and India. Establishing cultural centers for language, arts, and education will benefit both nations, allowing Okinawa to become a destination for Japanese citizens to experience Indian culture. Scientific Collaboration Okinawa can serve as a hub for scientific conferences and collaborations between Indian and Japanese universities, promoting joint research and technological innovation. Postal System Integration India and Japan could collaborate on postal services through a central hub in Okinawa, streamlining parcel and postal delivery between the two nations. Maritime and Marine Development Okinawa’s location makes it an ideal center for maritime training and research. Indian technicians could train in Okinawa, improving skills in marine craft development and maintenance—benefitting India’s eastern seaboard, including the Andaman and Nicobar Islands. Antarctica Exploration Collaborations between India and Japan could extend to Antarctica exploration and research, with Okinawa serving as a base for projects aimed at mapping and human development. Desalination & Oceanography Research Okinawa’s expertise in oceanography could be pivotal in helping India develop desalination centers along its eastern coast. This collaboration could drive economic growth by addressing water scarcity and promoting regional prosperity. Conclusion Okinawa is uniquely positioned to foster closer India-Japan ties in the realms of business, culture, science, and geopolitics. By leveraging its strategic advantages, Okinawa could become the center of a 21st-century initiative for social, economic, and political collaboration between these two great nations.
Posted by G Giridhar Prabhu

Gold Management Reform

Gold Management Reform: A Strategic Approach for India The Government of India and the Reserve Bank of India (RBI) should establish a strategic arrangement to handle seized gold more efficiently. Currently, gold seized during smuggling, raids, or other investigations becomes the absolute property of the government. Instead of letting it remain idle, this gold could be converted into bars and sold in the market to help redeem gold bonds, thereby unlocking its value. In line with this, the government should make a firm decision, via the Cabinet, to stop issuing any new gold bonds permanently, distancing itself from such financial instruments for the future. Gold Price Standardization and Market Integration India’s approach to gold management should include a mechanism to announce gold prices up to ten times a day, reflecting both domestic inputs and global market conversions. This would align with international trends, where many nations are once again using gold as a foundational standard. The Financial Benchmarks India Limited (FBIL) could oversee this process by using an open and cryptic formula that would serve as a reference rate—not a traded rate—helping maintain transparency. Such price announcements should also be reviewed by the Competition Commission of India, the Government of India, and the RBI to ensure market ethics are maintained. Learning from History: Gold as an Economic Asset Gold has been a key asset for over 5,000 years, and despite the development of democratic institutions, it remains a unique commodity in India. Many Indians privately own gold, and gold loans have become widely marketed by banks for refinancing. With a significant demand for gold across various sectors, including: – A. Investment – B. Industrial, commercial, or other uses – C. Input for export-related businesses, it’s crucial that citizens have access to gold through regulated, institutional channels. To facilitate this, the government could apply the same standards used for authorized foreign currency dealers to the bullion market. This could be managed by creating an All-India Bullion Dealers Association under the framework of commercial banks, rather than leaving it to the jewelers’ associations. Sovereign Gold Bonds and Government Policy Gold bonds were originally a source of revenue for the government through taxes and duties. However, losses from such schemes need to be permanently addressed. The government should negotiate a swap arrangement with the RBI, allowing the central bank to redeem the bonds on the government’s behalf. This can be done by issuing Treasury Bills in short durations (46 days, 181 days, and 364 days) at the prevailing repo rate, with the RBI assuming responsibility for any profit or loss due to gold price fluctuations. The RBI has proven its capability by managing India’s official reserves effectively, even earning surpluses. A clear distinction must be made between the roles of the RBI, an entity created by Parliament, and the Government of India, which represents the State. By doing so, the public will better understand that all assets are held on behalf of the President of India, not just symbolically, but legally in every agreement. Securing Gold Reserves and Custody Gold held by the government must be protected securely. By enhancing the symbolism of the President’s role as the custodian of the nation’s wealth, gold reserves should be guarded by the President’s bodyguards and secured by multiple layers of protection, including Customs officers, the Central Industrial Security Force (CISF), and police. The government should establish a formal mechanism where five wholly-owned and three partially-owned entities monitor the movement of physical gold. These entities will act as Authorized Custodial Dealers of Gold. Furthermore, Bharat Gold Mines Ltd should take on a new role as the custodian of precious metals on behalf of Indian citizens, managing both trade and personal accounts. Gold as Part of India’s Currency Reserves The government and the RBI should recognize gold as an integral part of India’s foreign currency reserves. Weekly announcements by the RBI will provide transparency, showing the amount of gold held officially. In addition, India’s thriving bullion industry must have access to legitimate channels, as the lack of availability often fuels smuggling and parallel markets. Gold Policy and Authorized Dealers To maintain order in the gold market, all commercial banks authorized to deal in gold should have designated branches with Customs Protected Safe Rooms to store gold for their clients. These banks should also be permitted to act as agents for global mining companies, ensuring sovereign protection and easy convertibility between gold and Indian rupees. The International Monetary Fund (IMF) should also be offered a secure facility to hold gold in India, symbolizing the high level of protection afforded to bullion, akin to the safeguards given to the Head of State. Innovative Approaches to Gold Selling For effective gold bond redemption, the RBI could establish a system where gold is handled directly through selected banks. For instance, if Indian Bank is chosen, a tripartite agreement between the government, RBI, and Indian Bank would facilitate the process. The RBI would deliver the physical gold to a customs-bonded warehouse in Chennai, exempt from duties and taxes. Pricing would be set in Indian rupees based on agreed Indian parameters rather than international rates. National Gold Policy and Precious Metals Security The Cabinet should create a National Gold Policy, evolving into a National Precious Metals Policy, to ensure that all precious metals are held securely in state-owned banks. Gold, silver, and other precious metals should be safeguarded in visible and transparent ways, with protection provided by the President’s bodyguard and the CISF. To make the gold policy effective, recycling efforts must be institutionalized, involving both state-owned commercial banks and other government corporations like Kolar Gold Fields Ltd. This would help establish a sustainable system for recycling gold and other precious metals. Strategic Use of Gold Reserves India’s gold reserves, particularly those managed by the RBI, should be used strategically. Instead of relying on international market prices, the government can introduce a special arrangement where the RBI holds bonds at 0% interest, similar to Japan’s low-interest-rate policy. This would minimize government interest payments and utilize reserves effectively when needed, ensuring that the nation’s wealth is put to optimal use. Conclusion: A Symbol of National Prosperity and Order The Government of India, in collaboration with the RBI, must take immediate steps to secure and utilize the nation’s gold reserves in a transparent and orderly manner. Through reducing duties, preventing smuggling, and maintaining visible control over gold assets, India can create a stable and prosperous future. As a symbol of national wealth, the management of gold will reflect India’s commitment to both its citizens and the global economy.
Posted by G Giridhar Prabhu

Transforming MBA Education in India

Management Education in India – A Path Forward India’s management education is evolving to meet the demands of modern business. MBA programs must broaden their scope beyond traditional subjects like finance and marketing to prepare future leaders for a dynamic world. The landscape of Management education in India is undergoing a significant transformation. As industry demands grow, management education must progress and reform. The All-India Council for Technical Education (AICTE) has developed an MBA curriculum with standards that apply nationwide. While this effort is commendable in bringing uniformity to management education, it is becoming evident that the current framework needs to evolve to match the dynamic needs of the industry. Management as an Art At its core, management is an art. It’s not just a technical or scientific discipline but a skillset centered around dealing with people, both within and outside an organization. Managing effectively has much in common with administration, whether in the government, its agencies, or other institutions. There is a need for more focus on administration in management education. Overemphasizing leadership alone can be limiting. As Swami Vivekananda wisely noted, “Leaders need followers,” which resonates with the idea that institutions also need dedicated individuals, or “foot soldiers,” for their smooth operation. Managers today need to adapt to a wide variety of fields, including Public Policy, Public Management, Public Finance, Administrative Law, and Urban and Regional Planning. Daily interactions in these areas also require an understanding of Ethics in Public Administration and International Relations. Currently, the three primary pillars of management education include Finance, Human Resources, and Marketing. While these fields remain crucial for producing competent managers, the increasing complexity of modern business environments demands a broader curriculum. The Need for New Specializations Management education in India needs to expand into emerging areas of specialization to stay relevant. Some key areas that require attention include: – Turnaround Management in Institutions: This field focuses on managing change and transforming organizations effectively. To make these advancements, several strategic steps are necessary: – AICTE should freeze approvals for new MBA colleges and focus on managing existing approvals to ensure that only well-managed institutions thrive, while underperforming ones are phase out through structured exit routes. The bottom 20 percent of institutions could benefit from partnerships with more competent managers to turn around their performance. – Voluntary exit from AICTE: MBA institutions should transition out of AICTE’s purview voluntarily. However, those remaining under AICTE should strive to improve from mediocrity toward excellence. – Focus on National Excellence: AICTE should continue to pursue national excellence in Engineering, while allowing management education to grow steadily toward higher standards. – Adoption and Collaboration: Existing MBA colleges owned by public trusts could be adopted, adapted, or managed by institutions such as the Reserve Bank of India, National Institute of Bank Management Pune, and the Competition Commission of India, among others. – Examinations and Training on Campus: MBA campuses should serve as hubs for RBI officer examinations and interviews. With campuses spanning around 12,000 square meters, they could host branches of commercial banks and serve as training grounds for future managers. – Merger of Training Institutions: Over time, all state-owned bank training institutions could merge with these AICTE-approved MBA colleges, reinforcing key values like credit, character, and capability. These institutions would also handle aspects of public administration, with a particular focus on ethics. The Role of Public Administration in Management Education Public administration will play a significant role in shaping the future of management education. Retired and serving public servants can lead courses, ensuring that students learn the values of effective governance and administration. These institutions can also play a role in improving governance by processing public opinion, analyzing submissions from citizens, and shaping them into actionable insights for legislators. By the time the drafts enter Parliament, they will be more thoroughly debated and implemented. Addressing Managerial Shortfalls The Reserve Bank of India has expressed concern over the managerial shortfalls in commercial banks. Safeguarding the trust of citizens in state-owned banks is a collective responsibility of the government. By addressing these gaps in managerial competence, the future of India’s banking sector can be secured. Conclusion As the transformation of management education in India continues, the hope is that these changes will put an end to the era of “coaching shops” and foster an era of excellence in administration and management education. The path forward lies in expanding specializations, improving institutional performance, and integrating public administration into management education. These steps will ensure that India produces not only capable managers but also ethical leaders.
Posted by Amrita

Empowering Petroleum Education

Empowering Petroleum Education – A Strategic Necessity for India’s Future In today’s rapidly evolving energy landscape, it is crucial for India to elevate its educational system to meet the demands of the petroleum and natural gas sectors. Integrating petroleum education across all state universities, IITs, and National Institutes of Technology (NITs) in India could play a pivotal role in shaping the country’s energy future. The Importance of Petroleum Education Petroleum is a cornerstone of global energy. India as a growing energy consumer must build a knowledge base that not only supports its needs but also fosters innovation. Encouraging IIT Dharwad to become a center of excellence for petroleum downstream industries, along with alternative green energy initiatives, could be a game-changer for India’s future energy landscape. This academic endeavor should not only focus on India but also explore global case studies like the Total project in Mozambique, encouraging discussions that resolve industry disputes and foster international cooperation. Strategic Petroleum Reserves – A National Priority India’s need for Strategic Petroleum Product Reserves is a pressing issue. Expanding these reserves could provide much-needed energy security in times of geopolitical uncertainty. Academia should engage in generating innovative ideas and making them accessible to policymakers. Furthermore, better management strategies for petroleum pricing, which directly affect India’s energy stability, are essential. Additionally, with the Qatar Gas deal nearing its end, it is crucial to address how India will source natural gas moving forward. Increased export of U.S. natural gas, combined with enhanced production from existing assets, could be part of the solution. A Call for Collaborative Learning A visionary idea is to bring together academia and industry by establishing professorships in petroleum studies across Indian institutions. This partnership would allow seasoned professionals to share their insights and experience with students, enriching both theoretical and practical knowledge in the sector. By encouraging MBA programs to sponsor national professors in petroleum studies, India could create a network of professionals who understand the complex pricing dynamics and geopolitical influences on energy. These initiatives could go further by encouraging professors to teach in their local languages, making petroleum economics accessible to a wider audience. The Role of Mangalore in India’s Petroleum Story Mangalore, a significant hub in India’s petroleum refining industry, stands as a testament to the success of integrating education with industry. The city’s refinery, which began in 1993, now ranks among the world’s finest industrial complexes. This achievement, rooted in collaboration between the Kanara Chamber of Commerce and the Ministry of Petroleum, showcases the potential of similar initiatives across India. Moreover, the Mangalore region’s educational initiatives have untapped potential. The city’s tradition of self-sustained education could serve as a model for expanding petroleum studies, research, and innovation. A visit to the region could spark further interest in aligning education with industrial needs. Building a Harmonious Future Through Education The broader vision calls for the integration of 22 Professors of National Eminence in Petroleum Economics, who would be fluent in India’s diverse languages. This could drastically improve public understanding of the petroleum sector, fostering a more informed and engaged population. By promoting innovation in petroleum education, recycling initiatives, and energy conservation, these professors could play a pivotal role in driving sustainable development across the country. Such initiatives would not only enhance energy security but also contribute to nation-building by nurturing a culture of informed, forward-thinking professionals. Conclusion: A Call to Action Integrating education with India’s strategic petroleum and energy needs is a crucial step forward. By fostering a culture of collaboration between academia and industry, India can develop a workforce capable of addressing the complex challenges facing the global energy market. These initiatives will ensure that India is well-prepared to navigate the future of energy, ultimately leading to a more prosperous and self-reliant nation.
Posted by G Giridhar Prabhu