Saturday, November 12, 2011

With $85 trillion, how India can become world's largest economy!Very simple, as the Zionist Brahaminical Hegemony Prescribed, it ia all about EXCLUSION and Ethnic Cleansing of Eihty Five percent Mulnivasi Bahujan, the Non Brahamin NON ARYAN SC ST OBC

With $85 trillion, how India can become world's largest economy!Very simple, as the Zionist Brahaminical Hegemony Prescribed, it ia all about EXCLUSION and Ethnic Cleansing of Eihty Five percent Mulnivasi Bahujan, the Non Brahamin NON ARYAN SC ST OBC and converted Minority Communities!Economic Reforms and Free Market Economy Meant for that all on the name of Development and Growth! Itis a SIX Full Decades` story!

Sachin Tendulkar's wait for the elusive 100th century!

Moody's to discuss India's sovereign rating with Finance Ministry on Monday

Air India to pay employees October salary on Monday!

Scams and subsequent witch hunts have hit decision-making: Kaushik Basu


Uttarakhand approves new mining policy

New law draft ready for bringing transparancy in land selling!


Centre eyes more expressways from Delhi to Jaipur, Chandigarh!

Troubled Galaxy Destroyed Dreams, Chapter 707

Palash Biswas

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Tottering Economic Growth?
With $85 tn, how India can become world's largest economy
If a growing GDP is not to become a cruel irony for 445 mn poor people, govt must begin the second stage of economic liberalisation.

Aviation doom
High op costs, rising debt force investors to exit aviation
High operating costs, mounting debt and intense competition from unlisted players have forced investors to exit from the aviation counters.

http://economictimes.indiatimes.com/news/newsbyindustry/etcetera/Human-mission-to-Mars-by-2035-Is-it-possible/articleshow/8001130.cms
With $85 trillion, how India can become world's largest economy!Very simple, as the Zionist Brahaminical Hegemony Prescribed, it ia all about EXCLUSION and Ethnic Cleansing of Eihty Five percent Mulnivasi Bahujan, the Non Brahamin NON ARYAN SC ST OBC and converted Minority Communities!Economic Reforms and Free Market Economy Meant for that all on the name of Development and Growth! Itis a SIX Full Decades` story!

Moody's to discuss India's sovereign rating with Finance Ministry on Monday!New law draft ready for bringing transparancy in land selling!

India's industrial output growth skidded to a two-year low in September, data showed Friday, as a string of interest rate rises took their toll on Asia's third-largest economy.

The country's 1.9 percent industrial expansion in September undershot market forecasts of a 3.5 percent jump and added to a gloomy picture of an economy that is losing traction due to 13 interest rate hikes since March 2010.

"There's a clear slowdown, definitely monetary policy is biting," D.K. Joshi, chief economist at leading Indian credit rating agency Crisil, told AFP.
The sluggish output figures, the weakest since September 2009, also undercut hopes that emerging markets such as India can power global growth as Europe and the United States struggle.
Earlier this week, neighbouring China reported industrial output rose 13.2 percent year-on-year in the first 10 months of 2011, slower than the 14.2 percent growth recorded in the first nine months of the year.
India's manufacturing production rose 2.1 percent in September, but output of capital goods such as factory equipment -- a key pointer to future activity -- as well as consumer goods and mines all shrank.
"We are concerned that the pace of growth in the economy has gone down," senior government economic planning advisor Montek Singh Ahluwalia said.
The weak figures buttressed expectations that India's hawkish central bank would pause in hiking rates to combat inflation even though it remains stubbornly high at nearly 10 percent, analysts said.
The bank signalled that last month's quarter-point rate rise could be the last for 2011 and that worries about growth would assume greater prominence.
The Reserve Bank of India's anti-inflation battle has been one of the most aggressive globally, but has had little obvious impact.
On Friday, food inflation fell nearly half a percentage point from the previous week but still stood at a hefty 11.81 percent for the week.
Overall inflation, measured monthly, stands at 9.72 percent with some analysts expecting a slight rise when figures are released next week.
Even with high inflation, "with the global economic scenario also deteriorating, the central bank should not only pause but begin to reverse its interest hikes," said Chandrajit Banerjee, director general of the Confederation of Indian Industry, which lobbies on behalf of companies.
Banerjee warned about the impact of the rate rises on investment and demand but economists said the central bank was unlikely to start unwinding the rate hikes.
"With inflation still elevated and susceptible to upside risks, the central bank is not about to cut rates and will keep them at current levels for an extended period of time," said HSBC chief India economist Leif Eskesen.
The Reserve Bank has revised its estimates for economic growth for this financial year to March 2012 to 7.6 percent, down from an earlier 8.0 percent, saying the economy is "clearly seeing slowing growth."
But many economists estimate growth could be seven percent or even lower.
The string of rate rises has weakened consumer demand during the ongoing festive season across a range of sectors, from cars to property, as loans become costlier while inflation erodes incomes.
The latest figures cap a string of data showing the economy losing ground. Car sales in October fell nearly 24 percent, the most in close to 11 years, while October's annual export growth was the slowest in two years.
The weakening economy has put pressure on federal finances with doubts mounting about the government's ability to meet its goal of containing the fiscal deficit to 4.6 percent of gross domestic product as tax revenues fall.
The central bank made it clear reducing inflation was its top priority and "if growth had to moderate that was the price," Brian Jackson, senior emerging markets strategist at Royal Bank of Canada in Hong Kong, told

The three-day India Economic Summit (IES), being organised jointly by the World Economic Forum (WEF) and the Confederation of Indian Industry (CII), kicked off today with the current global financial crisis dominating the pre-event conference.
This is the first time in 26 years the event is being organised in Mumbai, the country's financial capital, as the annual event is usually held in New Delhi.
Announcing the event, Maharashtra chief minister Prithviraj Chavan said India could withstand the 2008 financial crisis due to its robust banking sector and the central government's stimulus package.
"I expect India will be able to face the crisis effectively because of a large domestic market," he said.
Maharashtra, he said, is the size of Mexico, a G-20 member, and WEF chose it for being an economically important state. Maharashtra chief minister Prithviraj Chavan said, adding that the event offered an opportunity for the state, which has been at the forefront of economic development in the country, to showcase itself as a favourable investment destination.
The central theme for the summit, being organised in partnership with industry lobby Confederation of Indian Industry (CII), will be "Linking Leadership with Livelihood".

Two negatives, it is said, don't always make a positive: if true, the mandarins in charge at North Block and at key economic ministries in New Delhi have much to do to get a grip on the situation, and not let it appear the Indian economy is slipping from their hands. Moody's on Thursday downgraded the country's banking sector to negative from stable due to concerns over the asset quality of banks, their profitability and capitalisation. It is feared that since the government is the owner of public sector banks, it might not be able to provide capital to them as its fiscal house is on a dangerous fault line. Moody's earlier downgraded by a notch the rating of SBI, which had to make huge provisioning for bad loans. The government has been delaying capitalising the bank as its largest shareholder. More importantly, implicit in these downgrades is that Moody's does not recognise the sovereign guarantee that the public sector banks have. This means the government's fiscal credibility is at stake: even if this is only Moody's perception, it can't be denied that this perception is shared by others, including corporates who have taken the unprecedented step of writing to the government twice this year on corruption and the "governance deficit" that it needs to tackle. There have been enough wake-up calls for the government to start governing. The Moody's downgrade was somewhat neutralised on Friday by its rival, Standard & Poor's, which upgraded India's banking sector to Group 5 from Group 6. But more disturbing was the Index of Industrial Production for September, which was a measly 1.9 per cent, against 3.6 per cent in August. The August IIP figure itself was revised down from 4.1 per cent to 3.6 per cent. Among the sectors that fared miserably were mining, manufacturing, capital goods (machinery etc), consumer durables and consumer non-durables. The only sector that did well was electricity, which can be a little misleading. The power sector is badly hit too: a coal shortage is crippling plants that depend on it, and 20,000 MW is affected. On inflation, the government has been trying to pass the buck to the RBI which has been issuing reminders to the government every three months of its fiscal responsibility. The RBI has literally been pleading with it to take steps to tackle the supply side, which is the real cause of inflation. The answer is an ominous silence. It will be interesting to see if Moody's now downgrades India's sovereign rating as well: it is due to have discussions with the government next week.

The fall in Index of Industrial Production ( IIP) fuelled the Opposition offensive on the Manmohan Singh government's handling of economic affairs with the BJP on Friday describing the situation as 'grim'. with hardly any light at the end of the tunnel".


Former finance minister Yashwant Sinha said the BJP will seek a separate debate on the state of the country's economy in the winter session of Parliament. "The overall picture is gloomy. There is hardly anything to celebrate in the decline in inflation," Sinha said at a press conference here.


He took on the prime minister saying "while he was issuing certificates of good conduct to leaders of other countries, there was very little concern as far as the economy was concerned." Sinha was apparently referring to the prime minister describing the Pakistan PM as a man of peace.


Sinha said the country expected the prime minister to spell out before the media the state of economic affairs in the country.


Reeling out comparative figures of industrial growth between last year and now, he said the greatest worry was the negative growth of 6.8% in capital goods production. Industrial growth fell to a two-year low of 1.9% in September, compared to 4.1% in August. Manufacturing activity declined to 2.1% from 4.5% a month ago.


"The economic situation is grim. Investor confidence is down, investments are low, people are fleeing India and investing abroad. There is hardly any light at the end of the tunnel," Sinha, who heads the parliamentary standing committee on finance, said.




BERHAMPORE(WB): Finance Minister Pranab Mukherjee today said the two most vexed issues facing the nation are price rise in essential commodities and petro-products.

It is not possible for the Centre to decrease the price of petro-products because huge subsidies are already being given to the oil companies for sale of fuel at controlled rates, Mukherjee told a Congress seminar here.

Crude is being imported at a price many times more than at the time of the Budget, Mukherjee said.

He said foreign oil firms were also increasing the prices of petro-products.

State governments, he said, can not continue to rely on loans from the Centre and have to increase their own sources of revenue to tackle the situation.

Mukherjee said that in West Bengal, the Trinamool Congress-Congress government was facing a financial crisis because the earlier Left Front regime had failed to generate revenue over 34 years of rule inspite of being told repeatedly to do so.

He said he had earlier told the Left that calling bandhs when prices went up was no solution.

Suggesting a way to tackle inflation in essential commodities, he said the PDS system should be strengthened.

A strong PDS system will benefit 40 crore people and help arrest the price spiral, he said.

Replying to a question on why Jute Corporation of India Ltd was not purchasing jute from growers, he said he would inquire into the matter after returning to Delhi.

PUNE: Union Finance Minister Pranab Mukherjeetoday described the city as a vibrant "economic hub" and hailed contribution of city-based industrialists to the growth of the country.

Releasing the book "Icons of Pune", which profiles young entrepreneurs from the city, Mukherjee said the city was country's economic hub, with an expanding automobile and IT sectors.

The coffee-table book has been brought out by Lokmat media group.

Speaking on this occasion, Maharashtra Chief Minister Prithviraj Chavan said the book was "inspirational" and a similar profiling of icons from other walks of life should be done.

Lokmat group head and MP Vijay Darda and state education minister Rajendra Darda were present on this occasion.

Air India to pay employees October salary on Monday!

Scams and subsequent witch hunts have hit decision-making: Kaushik Basu

Centre eyes more expressways from Delhi to Jaipur, Chandigarh!



Global credit ratings agency Moody's, which cut the outlook for Indian banking system this week, will meet finance ministry officials on Monday as part of a review of the country's rating, a report said. As growth in industrial production plunged to a two-year low of 1.9 per cent in September, a senior finance ministry official today said the time has come for the Reserve Bank to "rethink" its policy of monetary tightening.

Registration of builders, adherence to approved plans and refund of money in cases of default will become mandatory under a new law that the Government plans to bring in to usher in "accountability and transparency" in land selling and housing transactions.

A Real Estate Regulatory Authority will also be established under the Real Estate (Regulation and Development) Bill, 2011, whose draft was made public today by Union Minister for Housing and Urban Poverty Alleviation Kumari Selja here.

Admitting that high interest rate is hurting economy, the Reserve Bank today said the country's growth rate is likely to moderate to 7.5-7.6 per cent this fiscal.

"Since we had 7.7 per cent in first quarter of 2011-12, we should expect that average for the remaining part of the year to be 7.5-7.6 per cent. This is partly because we have been raising interest rates," RBI Deputy Governor Subir Gokarn told reporters here.

The economy, he said, has been slowing down since the last (January-March) quarter of 2010-11 when it recorded a growth rate of 7.8 per cent.

In its mid-year monetary policy review last month, RBI had lowered the growth projections to 7.6 per cent for 2011-12 from 8 per cent estimated earlier. In the previous fiscal economy grew by 8.5 per cent.

The RBI Deputy Governor further said that slowdown in economy was impacting the overall investment scenario in the country.

Slowing investments was getting reflected in the index of industrial production (IIP), which dipped to two year low of 1.9 per cent.

In the first half of the fiscal IIP grew by 5 per cent, lower than 8.2 per cent growth in the corresponding period last fiscal.

The Reserve bank has raise interest rates by 375 basis points since March, 2010 in its bid to tame inflation, which is still hovering around 10 per cent.

Inflation, Gokarn said would start moderating from December onwards and dip below 7 per cent in April, 2012.

"Downward trajectory of inflation begins in December and will continue... You can infer that it will come down below 7 per cent in April," he said.



Moody's currently assigns a rating of Baa3 -- the lowest investment-grade rating -- to Asia's third-largest economy.


"We are meeting Moody's on Monday to discuss India's sovereign credit rating," a senior finance ministry official told the Press Trust of India on Friday.


The meeting comes as India's economy passes through a rough patch, with the government expecting growth for this fiscal year to March 2012 to slow to 7.6 percent from 8.5 percent last year.


Investment houses are more pessimistic, with Goldman Sachs forecasting growth of just seven percent.


The Moody's officials were expected to talk about steps Premier Manmohan Singh's government has taken to reduce the fiscal deficit, reform the taxation system and recapitalise the banking sector, the Press Trust of India said.


Ratings are significant as they help a country borrow funds at competitive rates.


Economists say India's public finances are deteriorating with a rising subsidy bill, lower-than-expected tax revenues and privatisation earnings, and mounting public debt.


Adding to the gloom is perceived paralysis in the Congress government, which has postponed major economic reforms as it fights numerous corruption scandals.


On Wednesday, Moody's downgraded the outlook for India's banking system to "negative" from "stable", warning that slowing economic growth could hit the quality of bank loans and other assets as well as profits.


But on Thursday, rival ratings agency Standard & Poor's revised India's banking industry risk assessment upwards, saying the sector had a "high level of stable, core customer deposits".


India's government has dismissed Moody's downgrade, saying the negative rating had "no significance".


"Looking at how the global banks are faring, we are much stronger," India's Financial Services Secretary D.K. Mittal said.

The conventional policy of interest rates ... now you do have to rethink on that," Chief Economic Advisor Kaushik Basu told reporters here.


His comments come amid Indian corporates blaming the high interest rate regime for the decline in industrial output growth.


Industrial growth fell to 1.9 per cent in September this fiscal from 6.1 per cent in the year-ago period, mainly due to poor output from the manufacturing sector.


Basu's comments were, however, in sharp contrast to the views expressed by Planning Commission Deputy Chairman Montek Singh Ahluwalia, who earlier in the day said that there was no connection between a high interest rate regime and slowdown in industrial growth.


"I would not draw any connection between the rate hikes and decline in industrial production. The rate today is roughly what it was when the economy was growing at 9 per cent," Ahluwalia said when asked if RBI's tight monetary policy was hampering industrial production.


The Reserve Bank has hiked policy rates by 3.75 per cent since March 2010 to tame inflation, which is hovering at around 10 per cent. The high interest rate regime has made credit expensive for corporates as well as consumers, which the industry says has hit the growth.


"The dilemma that we are facing and the RBI is facing (is that) there are two battles we have to fight -- inflation and growth. It is a really hard balancing act that the RBI has to do," Basu said.


The economic growth in the April-June period stood at 7.7 per cent, the lowest in six quarters.


Driving at a correlation between the fiscal deficit target of 4.6 per cent of the GDP for 2011-12 and economic growth with inflation, he termed fiscal deficit as a "double edged sword".


"If you now pull back on fiscal deficit very sharply, it has the same kind of effect as pulling down on liquidity really sharply. It curbs demand and so it is going to have an impact on growth first before it has an impact on inflation," Basu said.


He said the deficit situation is difficult and the 4.6 per cent target may impact growth.


"Our target of 4.6 per cent (fiscal deficit) is something that we are striving for. (It is) very hard ... to meet that target with a jarring sharp note. I am not very clear what it is going to do for the growth," he said.

The long-pending legislation that seeks to protect home-buyers from fly-by-night developers is likely to be sent to the Union Cabinet for its approval during the Winter Session of Parliament.

Once the law comes into force, no promoter or builder will be able to develop any immovable property without registering the real estate project and obtaining a registration certificate from the proposed authority.

"The Government of India has been planning such a legislation for a very long time and real estate sector and others have approached me on a number of occasions on such kind of a law. The aim is to intervene and ensure transparency and accountability on part of the promoter to the consumer," Selja told a press conference here.

The major aim of such a legislation, the Minister said, was to regulate the activities of the real estate sector and usher in an era of "accountability and transparency" in land selling and housing transactions.

The Minister has also written a letter to Chief Ministers enclosing a copy of the draft bill seeking their views on the legislation.

Asked about the possibility of criticism from the sector of the proposed Bill, Selja said: "I do not wish to convey that I have a rigid stand on the issue. We will talk to everyone whoever wishes to and strike a balance."

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The Ministry of Road Transport and Highways on Friday said it is in talks with the state governments Delhi and Haryana for constructing two more expressways from Delhi to Jaipur and Chandigarh.

"We met Delhi Transport Minister Arvinder Singh Lovely and Randeep Singh Surjewala, Industry Minister, Haryana, and discussed about building new expressways to Jaipur and Chandigarh," C P Joshi, Minister for Road Transport and Highways, told reporters after launching the ministry's new website.

However, Joshi said that he would meet the officials from Rajasthan soon.

"Very shortly, we would meet Rajasthan state government officials and discuss the plan further," Joshi said, without divulging the financial details of the projects.

"We are at a discussion stage and I cannot comment any further on the matter," he added.

Delhi and Haryana governments have given their approvals for constructing these expressways. These are green field projects and expected to cut through separate routes from the existing highways.

The proposed 230 km Delhi-Jaipur expressway is likely to connect Manesar, Bawal, Kushkhera, Bhiwadi, Neemrana to the stretch for the Delhi-Mumbai industrial corridor and other national highway networks.

At present, National Highway 8 (NH-8) is the only high speed link between Delhi and Jaipur. The ministry is yet to workout the plan for Delhi-Chandigarh expressway.

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Uttarakhand approves new mining policy

The Uttarakhand government today approved a new mining policy in order to earn more revenue through open bidding and end the stranglehold of the land mafia.


In the new policy, the first right of quarrying on up to 5 hectares of land would be given to its owner and no individual will be leased out the quarrying right for two areas, principal secretary industries Rakesh Sharma told reporters here after a cabinet meeting chaired by chief minister B C Khanduri.


The government would now give land on open bidding on all those reserved areas where its main three agencies -- Garhwal Mandal Vikas Nigam (GMVN), Kumaon Mandal Vikas Nigam (KMVN) and Uttarakhand Forest Development Corporation (UFDC) do not carry any river-bed mining.


For the environmental purpose, the government has banned mining/quarrying on 15 meters areas from both the banks of the river.


The government has also decided to set up a watchdog to monitor the mining process in view of large scale illegal mining activities and environmental concerns.


The cabinet decision to bring the new mining/quarrying policy, locally known as "khanan" came in order to end the foothold of the illegal operators which cause considerable revenue loss to the state.


The fresh surveys for mining are also being conducted to identify mining areas in the state and all the district magistrates have been asked to send their reports in this regard. A total of 900 hectare of area has already been identified in Dehra Dun alone for mining purposes.


A section of the forest officials are of the view that the mining through auction process can provide higher revenue generation to the hill state to the tune of Rs 300-400 crore. At present, the government only earns Rs 100-150 crore through the collection of stones, boulders and other minor minerals from various rivers that include the Ganga in the state.


Environmentalists here feel that the river-bed mining helps in checking floods in the river due to over-deposition of boulders, silt and other sandy materials.


The High Court had also directed the state government to formulate a new mining policy in view of mounting environmental concerns and involvement of land mafia in the business.

Indian equities markets fell during the week as high food inflation and falling industrial output depressed investor sentiments. Also, credit rating agency Moody's downgrading several major banks weighed on the markets.

During the week, the 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) slipped 2.11 percent or 369.79 points and closed Friday at 17,192.82 points.

At the National Stock Exchange, the 50-scrip S&P CNX Nifty also fell 2.18 percent or fell 115.35 points to close the week at 5168.85 points.

Broader markets also ended in the red. The BSE 500 index closed 2.32 percent lower. The BSE midcap index fell 2.16 percent lower, while the BSE smallcap index slipped 2.78 percent.

"Markets were lower on the back of continued concerns on Europe and the lower-than-expected IIP numbers," said Dipen Shah, Head-Fundamental Research, Kotak Securities.

"European concerns continued to impact global markets over the week with Italy being the new focus area. Greece has appointed a new Prime Minister and Italy is also expected to appoint one soon," added Shah.

India's industrial output fell sharply in September at 1.9 percent, official data showed Friday, growing the slowest in over two years as rising interest rates and a slump in investments started to bite. This even as latest data showed food inflation still hovering well above the double digits.

Prominent weekly Sensex gainers included Hindustan Unilever, up 4.4 percent at Rs.2,173.55; Hindustan Unilever, up 3.8 percent at Rs.396.15; Wipro, up 2.4 percent at Rs.381.70 and Bhart Airtel, up 1.7 percent at Rs.395.50.

Among losers on the benchmark Sensex were: Tata Steel, down 8.3 percent at Rs.430; DLF, down 8.3 percent at Rs.228.35; SBI, down 8.2 percent at Rs.1,797.65 and ICICI Bank, down 7.6 percent at Rs.822.50.

Asian markets closed lower amid uncertainty in the Euro zone.

On a weekly basis, the Japanese Nikkei closed 3.26 percent lower at 8,514.47 points, while Hong Kong's Hang Seng ended 3.56 percent down at 19,137.17 points.

The Chinese Shanghai composite index, shed 1.37 percent and closed the week at 2,481.08 points.

European markets notched up modest gains. Britain's FTSE 100 closed 0.33 percent up at 5,545.38 points, the French CAC 40 closed 0.83 percent up at 3,149.38 points.

The German DAX moved up 1.52 percent at 6,057.03 points during the week.

Markets at Wall Street closed mixed. The S&P rose 0.85 percent and closed the week at 1,263.85 points, while the Dow rose 1.42 percent and ended Friday at 12,153.68 points.

The technology-heavy Nasdaq, however, fell 0.28 percent and ended the week at 2,678.75 points.
11/11/2011

IIP growth falls on poor output from the manufacturing sector

Continuing its dismal performance, industrial growth fell further to 1.9 per cent in September, mainly due to poor output from the manufacturing sector.
Growth in factory output, as measured in terms of the Index of Industrial Production (IIP), stood at 6.1 per cent in September last year, as per the latest data released.
During the April-September period this fiscal, IIP growth stood at 5 per cent, as against 8.2 per cent in the same period last year.
Meanwhile, the IIP growth figure for August this year has been revised downward to 3.59 per cent from the provisional estimate of 4.1 per cent.
Output of the manufacturing sector, which constitutes over 75 per cent of the index, grew by only 2.1 per cent in September, compared to 6.9 per cent expansion in the same month last year, according to official data released on Friday.
Mining output declined by (-)5.6 per cent in September this year, as against a growth of 4.3 per cent in the same month last year.
Capital goods production witnessed negative growth of (-)6.8 per cent in September in comparison to a growth of 7.2 per cent in the corresponding month of 2010.
Growth in production of intermediate goods slowed to 1.5 per cent during the month under review from 4.6 per cent in September, 2010.
Consumer non-durables output declined by (-)1.3 per cent during the month in comparison to a growth of 5.8 per cent in the corresponding month of the previous year.
However, electricity production improved, witnessing a growth of 9 per cent in September this year, as against growth of a mere 1.8 per cent in September, 2010.
Source: PTI

12 NOV, 2011, 10.21AM IST,

With $85 trillion, how India can become world's largest economy


The writer Minhaz Merchant is the Chairman, Merchant Media Ltd

According to a study by US banking group Citi, India will be the world's largest economy within 39 years. Indian GDP in 2050, measured by purchasing power parity (PPP), will be $85.97 trillion. China, in second place, will have a GDP of $ 80.02 trillion and the US $ 39.07 trillion (see chart).


With an estimated population in 2050 of 1.63 billion, India will thus have a per capita income of over $53,000 - in the range of today's wealthiest countries like Switzerland and Norway. Sounds too good to be true? Of course it is.


On paper - mathematically - Indian poverty should disappear by 2050. The reason it won't is that huge inequalities in income will persist unless we rapidly implement second-generation economic reforms which deliver real benefits to the bottom of India's socio-economic pyramid.


The first chart in our three-chart collage shows the ranking of the top five countries by GDP in 2050 as per Citi's projections. Indian GDP in 2011 is estimated at $4.45 trillion (PPP). To reach $85.97 trillion in 2050, the Indian economy will have to grow at an average annual rate of 8.1% a year for the next 39 years. Optimistic? Perhaps, but not overly so.


The Citi study relies heavily on India's two dividends - demographic and democratic. The demographic dividend will ensure that India has the largest number of working-age people in the world (over 800 million) between 2015 and 2035 before tapering off as our population reaches a plateau of just over 1.60 billion and starts ageing (as China's already is). Fertility rates of increasingly educated urban and rural Indian women will dip from today's 2.6 to 1.7, which is when a country's birth and death rates equalise.


A large number of working-age Indians between 18 and 60, however, will be less than optimally productive if they remain poorly educated and are therefore unemployable. To gain from our 20-year demographic sweet spot, education reform must clearly top the government's agenda. Infosys mentor N R Narayana Murthy was partly right when he said that the standard of IIT students has fallen. It has. Too many are rote-learners, spewed out by coaching classes, not creative thinkers.


Education reform must start with government-run primary schools. Shockingly, in some villages, primary schools have no teachers, no students and an empty shed that serves as a classroom. The government spends 52,000 crore on education every year. That is less than it spends on fertiliser subsidy alone ( 55,000 crore).


The second dividend Citi banks on to project India's rise to the top of the GDP rankings in 2050 - especially in comparison with China - is democracy. China's autocratic government, the argument goes, can command 10% GDP growth, build superhighways and create gleaming infrastructure.


But beneath the towers and the maglev bullet train tracks of Shanghai lurks social tension. As China's per capita income rises, its 1.34 billion people will increasingly yearn for real freedom: a free press, an open Internet and, most crucially, democracy.


If the Chinese government can't deliver on these, a "Chinese Spring" a decade hence cannot be ruled out. That could plunge China into years of uncertainty. Throughout history, as countries grew richer, they grew freer. Will China prove an exception? Unlikely. By that token, India's democracy is a double-edge scimitar. Our raucous, open society takes us two steps forward economically and then one step backwards.
http://economictimes.indiatimes.com/opinion/comments-analysis/with-85-trillion-how-india-can-become-worlds-largest-economy/articleshow/10699821.cms

12/11/2011

No roll back of petrol price hike: Pranab

Finance Minister Pranab Mukherjee on Saturday said the two most vexed issues facing the nation are price rise in essential commodities and petro-products.
It is not possible for the Centre to decrease the price of petro-products because huge subsidies are already being given to the oil companies for sale of fuel at controlled rates, Mukherjee told a Congress seminar here.
Crude is being imported at a price many times more than at the time of the Budget, Mr. Mukherjee said.
He said foreign oil firms were also increasing the prices of petro-products.
State governments, he said, can not continue to rely on loans from the Centre and have to increase their own sources of revenue to tackle the situation.
Mukherjee said that in West Bengal, the Trinamool Congress-Congress government was facing a financial crisis because the earlier Left Front regime had failed to generate revenue over 34 years of rule in spite of being told repeatedly to do so.
He said he had earlier told the Left that calling bandhs when prices went up was no solution.
Suggesting a way to tackle inflation in essential commodities, he said the PDS system should be strengthened.
A strong PDS system will benefit 40 crore people and help arrest the price spiral, he said.
Replying to a question on why Jute Corporation of India Ltd was not purchasing jute from growers, he said he would inquire into the matter after returning to Delhi.
Source: PTI

V V: Capitalism in practice
V V / New Delhi November 12, 2011, 0:26 IST

Capitalist society operates under the bizarre presumption that adults are rational, self-determining individuals who can make sensible choices between competing goods and maximise their chances of happiness. But in reality we are desperately open to be swayed in unhelpful directions by a mere glimpse of a picture. It is extremely hard to hold on to a sense of our own needs when our desires are continually inflamed," said Alain de Botton about advertising in a capitalist society.

Who's to blame for the continuing financial crisis? The intense search for a scapegoat has begun, and many contenders have emerged: Wall Street, which now faces a backlash; predatory lenders, who sold loans to people who couldn't afford to return them knowing that the whole economy was running on borrowed money and borrowed time; the American exchequer, which kept interest rates too low for too long; short-sellers who spread negative rumours; experts (read economists) who gave bad advice; and finally those of us who knew little about the shenanigans of high finances but added their own philosophical explanations — we became too greedy, we were daft, and heard only what we wanted to hear.

All these explanations have some truth to them. But most bubbles are the product of more than just bad faith, or incompetence, or plain stupidity. The interaction of human psychology with a market economy practically ensures that bubbles will form. In this sense, bubbles are perfectly rational — at least they're a rational and unavoidable byproduct of capitalism. Technology and circumstances might change but the human animal doesn't. And markets are ultimately about people. To understand why the system crashed and, given the Greek crisis and the danger it poses to the euro's existence, how long the current recession will last, Ha-Joon Chang has come out with 23 Things They Don't Tell you about Capitalism (Allen Lane/Penguin, special Indian price: Rs 499).

Dr Chang is a specialist in development economics and Reader in the Political Economy of Development in Cambridge. He is a serious academic who hasn't written a text for "dummies"; nor is it "an anti-capitalist manifesto". As he says in the introduction, "Being critical of free-market ideology is not the same thing as being against capitalism. Despite its problems and limitations, I believe that capitalism is still the best economic system that humanity has invented." (Churchill had famously said that capitalism was the worst economic system, except for all the others.) He continues, "My criticism is of a particular version of capitalism that has dominated the world in the last three decades, that is, free-market capitalism."

The author puts the problem of capitalist in a historical perspective. The past three decades – marked by privatisation of state-owned industrial and financial firms, deregulation of finance and industry, liberalisation of international trade and investment, and reduction in income taxes and welfare payments – did not make everyone better off. In fact, they experienced slower growth, growing inequalities and heightened instability in many countries.

Even worse, in many rich countries, the persistent problems were masked by huge credit expansion; the heady brew of credit-fuelled consumerism lulled everyone to sleep. So, Dr Chang says the "truths" peddled by free-market ideologues were based on lazy assumptions and blinkered versions, if not self-serving notions." In 23 chapters, our assumptions about the working of capitalism in the real world are turned on their head — and it would be difficult even for a professional economist to find fault with what Dr Chang has to say, given the current crisis of capitalist democracy.

For someone who may be put off by higher economics, Dr Chang says, "95 per cent of economics is common sense made complicated, and even for the remaining 5 per cent, the essential reading, if not all the technical details, can be explained in plain terms." Dr Chang is spot on here.

The chapters cover much ground:

  • There is no such thing as a free market; every market has some rules and boundaries. A market looks free only because we unconditionally accept the underlying conditions that we fail to see. How "free" a market is cannot be objectively defined; it is a political definition. 
     
  • Firms should not be run in the interests of their owners. Shareholders may be the owners of corporations but they don't care about the long-term future of the company (with very few exceptions). Dr Chang says that Marx's predictions that new capitalism based on joint stock companies would pave the way for socialism may not have come true but his prediction that "the new institution of generalised limited liability would put the productive forces of capitalism on to a new plane" proved prescient. 
     
  • Most people in rich countries are paid more than they deserve and the washing machine has changed the world more than the Internet has. 
     
  • Assume the worst about people and get the worst; greater macroeconomic stability has not made the world economy more stable; and free market policies rarely make poor countries rich.

To sum up: Good economic policy does not require good economists! Read the book — it is solid common sense for one and all.

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http://business-standard.com/india/news/v-v-capitalism-in-practice/455228/

12/11/2011

Centre orders probe into funding source of anti-Kudankulam stir

Tirunelveli: The Centre on Saturday said it has ordered a probe into the source of funding and other aspects of the three-month long stir against the nuclear power plant at Kudankulam.
"The agitation is going on for three months. How is it sustained, is a question mark. It is not known who is financing all this. A detailed probe is on," Minister of State in the PMO, V. Narayanaswamy told reporters at Tiruchendur. Stating that lies and canards were being spread about the over Rs. 13,000 crore project, he said, "We are trying to find out who are all working behind the screen and the government is preparing itself to take action against them."
The tough talk by the Minister, who was deputed by Prime Minister Manmohan Singh to meet the agitators in their first phase stir in September, comes in the backdrop of the leaders insisting on scrapping the project itself. The Central government is closely watching the campaign and agitation against the Indo-Russian Kudankulam Nuclear Power Project (KNPP) and analysing who all could be behind the "spreading of rumours" against the plant, he said.
The committees set up by the Central and State governments on the standoff were holding talks with the people to clear all their apprehensions and doubts and remove them, he said.
The KNPP is located in the "safest place" and 99 per cent of the work on the first unit was over, he said, adding that power production was to be commissioned next month. "It is at this stage that agitation had intervened, and the commissioning of the project could be postponed."
Mr. Narayanasamy said the protesters had raised six important queries about KNPP's safety and sought explanations in English, Tamil and Malayalam. The reply by the Centre's 15-member expert committee would be given in a week.The Centre was more concerned about people's safety, he said.
The agitation has brought the work at the plant to a halt and caused a delay in commissioning the first reactor originally scheduled for December till March next year. Pointing out that the country required 2.5 lakh MW of power, the Minister said currently only 1.5 lakh MW was being generated. By 2020, the requirement would touch 4.5lakh MW
Atomic power is the only pollution-free option to meet the demand, Mr. Narayanasamy said.
Source: PTI
12/11/2011

Another 26/11, and peace goes for a toss: PM

With a combative opposition accusing him of going soft on 26/11 terror, Prime Minister Manmohan Singh Saturday said he was optimistic about the resumed peace process with Pakistan, but stressed that he has made it clear that if another "barbarous" Mumbai attack were to happen, it will be a "setback".
"I did discuss the Mumbai terror attack. Those who perpetrated the barbarous attack must be brought to justice," Manmohan Singh told reporters ob board his special aircraft while returning from the SAARC summit held in the Maldives.
"I left Gilani in no doubt that if public opinion in India is not satisfied that justice is being done to those responsible to the barbarous attack, it won't be possible to move forward with the peace process," he said.
Manmohan said he has accepted his Pakistani counterpart Yousuf Raza Gilani's invitation to visit Pakistan, but stressed that he will go when the two countries can do something "solid" together.
"Prime Minister Gilani has invited me to visit Pakistan everytime I have met him. The right moment for my going to Pakistan would be when if we could do something solid together," Manmohan Singh told reporters mid-aoir while returning from the Maldives after attending the SAARC summit.
"I would be happy to visit Pakistan but I haven't made up my mind yet," he said.
With speculation about a move to make Rahul Gandhi the working president of the Congress party, Manmohan Singh said that if he was given any other responsibility, he will welcome it.
"It's a question of the party. I have requested him many a time to come to cabinet meetings," Manmohan Singh told reporters on board his special aircraft while returning from the SAARC summit held in the Maldives.
He was responding to a question on whether he supported the move by some to make Rahul Gandhi the working president of the Congress party.
"If Rahul is given a larger responsibility, I will welcome it," Manmohan Singh said.
Source: IANS
12/11/2011

Kingfisher asked to give details of plans to reconfigure fleet

New Delhi: Ailing Kingfisher Airlines, which cancelled more than 160 flights over the last six days, has been asked by aviation regulator DGCA to give details of any plans to reconfigure its fleet to prevent large-scale flight disruption.
Maintaining that it has received some "interim replies" from liquor baron Vijay Mallya-owned carrier, sources in the Directorate General of Civil Aviation said more details were awaited as it had been found that the airline was not operating flights as per the approved winter schedule.
Mallya, meanwhile, tweeted: "Every government has gone out of the way to support airlines and connectivity. In India airlines are overtaxed and overcharged. Wonder why?" In another tweet, he posed: "Is it Kingfisher's duty 2 fly on loss making routes when state governments tax heavily? Or should v be financially prudent n fly profitably".
Kingfisher, which has been cancelling over 30 flights each day since Monday, had on Friday cancelled 40 services across its network. DGCA, which issued a show-cause notice to Kingfisher in this regard, has also sent similar notices to IndiGo and SpiceJet and asked them to submit their cancellation details.
"When the schedule for winter was approved, it was with immediate effect. So we took a stock of the position and on that basis, we asked them to explain," DGCA chief E K Bharat Bhushan said. He also warned that if the airlines were found not operating the slots allotted to them, these will be given to others who are willing to operate "regardless of who it is".
As its shares crashed to a record low amid continuing debt fears, the beleaguered Kingfisher airlines sought the government's intervention to help it restructure its finances.
Source:PTI
Image Source: AFP
12/11/2011

Kingfisher urgently needs $400 million to survive: Expert

Tycoon Vijay Mallya's cash-strapped and bleeding private carrier Kingfisher Airlines urgently requires about $400 million (Rs.2,000 crore) to survive and keep flying, an aviation expert said late Friday.
"If Kingfisher has to survive, it urgently requires capital infusion of $400 million, including $200 million immediately to maintain its daily operations," Centre for Asia-Pacific Aviation (CAPA) chief executive Kapil Kaul told IANS.
Noting that the financial health of Kingfisher was critical, Kaul said the country's leading private airline had to operate a manageable fleet from cash flow perspective and rationalise its routes to match with demand.
"The airline has no choice but exit from loss-making routes and operate a fleet that is manageable from a cash flow point of view," Kaul said from New Delhi.
The two-decade-old CAPA provides independent aviation market intelligence, analysis and data services.
Expressing concern over the sudden turn of events for the debt-ridden airline, Kaul said Kingfisher had to find ways and means to reduce non-bank dues at least by Rs.2,000 crore to overcome the financial crisis it was facing.
"According to our estimates, Kingfisher will require about $800 million (Rs.4,000 crore) to fully fund its business plan over next two years. Funds can be raised through rights issue (as planned), GDR (global depository receipts), QIPs (qualified institutional placement) or converting finance leases into sale lease back and leverage future aircraft orders," Kaul said in an e-mail.
Advocating substantial contribution and commitment by the promoter group (United Breweries Holdings & Kingfisher Finvest India), the aviation expert said the airline had to bring in serious management to initiate a genuine recover plan.
"The key issue is to ensure sustainable viability. We have a largely loss-making aviation industry due to the very fragile financial status of the domestic airline industry in which Kingfisher is no exception," Kaul pointed out.
The Indian private carriers reported a combined cumulative loss of $6 billion (Rs.30,000 crore) till March 2011.
"The domestic carriers are projected to report a combined loss of $2.5 billion (Rs.1,250 crore) by end of this fiscal (2011-12), with the state-run Air India alone accounting for $1.75-2 billion) and other airlines to the tune of $600-700 million," Kaul noted.
Making the Gurgaon-based private carrier IndiGo exception to losses as it is expected to be profitable this fiscal (FY 2012) too, Kaul said the low-cost airline continued to deliver a robust performance in extremely challenging circumstances.
Referring to the restructured debt of Kingfisher (Rs.6,007 crore/$1.2 billion), the analyst said the cumulative debt burden of the three big Indian carriers, including Air India (AI) and Jet Airways was a whopping $16 billion (Rs.80,000 crore).
"Indian banks have an exposure of $6 billion (Rs.30,000 crore) related to working capital and term loans. They will have an additional exposure ($2 billion) on the aircraft related financing," Kaul observed.
As of date, Indian carriers, including Air India will immediately require $2.5 billion to fund their operations and stay afloat.
"The operating environment is very challenging. Fuel costs are high, rupee has depreciated by over 10 percent and AI continues to work with loss leadership pricing. I expect this to continue in the near-term," Kaul asserted.
Though the domestic aviation sector will grow 17-18 percent this fiscal, most of the growth will come from cost minus pricing by the airlines.
"We have a serious issue on hand and that is to address the viability of these carriers. Unfortunately, there is no direction in this regard. Government response to the financial crisis continues to be ad hoc and weak. We don't have strategic aviation thinking at present," Kaul added.
Source: IANS
Also read:
11/11/2011

Court begins trial in 2G spectrum allocation case

Trial on Friday commenced in a Delhi court in the 2G spectrum allocation case in which former telecom minister A Raja, DMK MP Kanimozhi, corporate honchos and telecom firms are among the high-profile accused.
Special CBI Judge O P Saini started recording statement of Anand Subramaniam, assistant vice president of Reliance Capital Ltd, as a prosecution witness.
The court had also summoned for Friday two other prosecution witnesses -- group president of Reliance A N Sethuraman and chief regulatory officer of Etisalat DB Telecom Pvt Ltd Vinod Kumar Budhiraja -- for their examination.
The CBI, in its first list, had submitted names of 28 persons to be examined as prosecution witnesses before the court in the month of November.
The court after framing charges against 17 accused, including three telecom firms, had slated the trial to begin from today.
In the first list, out of 28, 11 witnesses are from Reliance Anil Dhirubhai Ambani Group (ADAG) which suggest that the agency wants to deal first with the charges against accused firms Reliance Telecom Ltd (RTL) and Shahid Usman Balwa promoted Swan Telecom.
Besides Raja and Kanimozhi, the court had framed charges against Reliance ADAG managing director Gautam Doshi, its group president Surendra Pipara, its senior vice president Hari Nair, Shahid Usman Balwa, Unitech Ltd's MD Sanjay Chandra, DB Realty MD Vinod Goenka, Kalaignar TV MD Sharad Kumar and Bollywood filmmaker Karim Morani.
Source: PTI


12 NOV, 2011, 10.06PM IST, IANS

Will meet Vayalar Ravi to discuss Kingfisher issue: PM

ON BOARD AIR INDIA ONE: Prime MinisterManmohan Singh Saturday said that he will meet Civil Aviation Minister Vayalar Ravi to discuss ways to help Kingfisher Airlines.

"A private airline has to be managed efficiently, but if there are difficulties we have to find ways and means to help them," the prime minister told reporters while returning from the SAARC summit in the Maldives.


"I have not applied my mind. I will talk to Vayalar Ravi and we will find ways to help the airline," Manmohan Singh said.

The prime minister's assurance came as the cash-strapped Kingfisher Airlines continued to cancel flights, while struggling with a pilot exodus and huge debts, whiel Ravi denied the government was going to bail out the private carrier on the pattern of Air India.

Bankers play hard, PM hints at govt help
Abhijit Lele & Raghuvir Badrinath / Mumbai/ Bangalore November 13, 2011, 0:18 IST

Lenders to Kingfisher Airlines have said the promoters of the carrier must meet their commitment of infusing equity. Any further support — including debt restructuring — could be considered only after that.
Meanwhile, Prime Minister Manmohan Singh hinted at a bailout of sorts for the cash-strapped airline. On board Air India One on his way back from Addu (Maldives), where he had gone to attend the Saarc summit, he said: "We have to find out ways to get Kingfisher out of trouble. But I have not applied my mind to Kingfisher's problems. When I get back, I will talk to Mr Vayalar Ravi."
At the time of restructuring of loans last year, Kingfisher promoter Vijay Mallya had committed to bring in about $300 million through global depository receipts.
"That stipulation has not been met as yet," a senior public sector bank official said after a meeting between banks and the ailing airline concluded in Bangalore on Saturday.
In an effort to get urgent credit support, Kingfisher, promoted by the Bangalore-based UB group, on Saturday made a detailed presentation to lenders on additional funding requirements and the steps taken to salvage conditions.
In the meeting, Kingfisher officials suggested that the banks convert their fund-based facilities into bank guarantees. This would help the airline use the guarantees and release cash deposits from aircraft's lessors, leading to an immediate interest saving of a few hundred crores of rupees.
Senior UB Group officials confirmed that the meeting was smooth. They added they were hopeful that bankers would agree, given the external factors that have taken a toll on the airline industry. "During the financial restructuring package, we had accounted for crude oil to be in the range of $80-90 a barrel, but now it is $115 a barrel. The rupee at that time was around Rs 40 to per dollar. It is close to Rs 50 a dollar now," a senior UB Group board member told Business Standard. Company officials hoped banks would extend an additional working capital of around Rs 300 crore.
Analysts also indicate that discussions have opened with Sahara Group for a possible support. However, a Sahara group spokesperson denied any discussions had taken place. Kingfisher Airlines, ever since it acquired Deccan Aviation, has been trying to raise equity to the extent of around $300 million, but efforts have not yielded much. This has led to a ballooning debt, now at Rs 7,000 crore.
Senior UB Group officials added the group's flagship spirits company, United Spirits Ltd (USL), had initiated discussions with Citigroup Venture Capital for a possible equity infusion of $200 million. "If Mallya can raise resources by offloading his stake in USL, those resources can be channeled into Kingfisher Airlines," investment bankers close to the group added. "Earlier, talks were on with Citigroup Venture Capital for reducing debt in USL. But, with USL largely managing to service its debt, the additional resources may be used to infuse equity into Kingfisher Airlines," bankers added. The UB Group management declined to comment.
Even as these strategy decisions are understood to be debated at various levels, Kingfisher Airlines is trying to put things in place and get its operations back in shape.
"According to the revised schedule, we will offer 300 daily flights, connecting 54 cities, compared to the previous schedule of 340 flights. The revised schedule is being loaded in the system and guests can confidently continue to book Kingfisher flights," Kingfisher Airline CEO Sanjay Aggarwal said.
He added that the reconfiguration initiative would require up to three aircraft to be out of service over the next three months at any one time. "It will reduce the number of fleet configurations from seven to three, improving operational flexibility. This initiative will add more seats to the fleet, improving revenue generation of each aircraft," he claimed.
http://www.business-standard.com/india/news/bankers-play-hard-pm-hints-at-govt-help/455328/

PM welcomes bigger role for Rahul in Cong
Prime Minister Manmohan Singh has said he welcomes bigger role for Rahul Gandhi in the party.

ON BOARD AIR INDIA ONE: With speculation about a move to make Rahul Gandhi the working president of the Congressparty, Prime Minister Manmohan Singh on Saturday said that if he was given any other responsibility, he will welcome it.

"It's a question of the party. I have requested him many a time to come to cabinet meetings," Manmohan Singh told reporters on board his special aircraft while returning from the SAARC summit held in the Maldives.

He was responding to a question on whether he supported the move by some to make Rahul Gandhi the working president of the Congress party.

"If Rahul is given a larger responsibility, I will welcome it," Manmohan Singh said.

Indian Economy Overview

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Last Updated: August 2011

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The overall growth of gross domestic product (GDP) at factor cost at constant prices, as per Advance Estimates was 8.5 per cent in 2010-11, representing an increase from the revised growth of 8 per cent during 2009-10, according to the monthly economic report released for the month of July 2011 by the Ministry of Finance. The index of industrial production (IIP) rose to 8.8 per cent in June 2011, year-on-year (y-o-y), on back of manufacturing and within that, the capital goods sub-segment. During April-June 2011-12, the IIP growth was registered at 6.8 per cent as compared to 9.6 per cent during 2010-11.
The eight core infrastructure industries grew by 5.2 per cent in June 2011 as compared to the growth of 4.4 per cent in June 2010. In addition, exports in terms of US dollar, increased by 46.4 per cent during June 2011. On the back of such facts, India's GDP is projected to continue to grow at a brisk pace of 8.8 per cent in 2011-12.
In addition, India has entered the club of top 20 exporters of goods and reclaimed its position among top 10 services exporters in 2010. India's goods exports rose by 31 per cent in 2010, helping it to improve its world ranking moving up two places to 20 from 22 in 2009.
Furthermore, the number of millionaire households in India will grow from 2,86,000 to 6,94,000 between 2011-2020, at a growth rate of 143 per cent, as per a study by the Deloitte Center for Financial Services. Among emerging markets, India is likely to have the highest per capita wealth among millionaires with US$ 4.25 million — placing it ahead of the US. In comparison to other BRIC (Brazil, Russia, India and China) nations, India is likely to experience the largest growth at 405 per cent in total wealth held by the millionaires.
The Economic Scenario
India has been ranked at the second place in global foreign direct investments (FDI) in 2010 and is expected to remain among the top five attractive destinations for international investors during 2010-12, according to a report on world investment prospects titled, 'World Investment Prospects Survey 2009-2012' by the United Nations Conference on Trade and Development (UNCTAD).
India's FDI gathered momentum with the inflows growing by 310 per cent in June 2011 to touch US$ 5.65 billion. It is the highest monthly inflow during the last 11 years. The total FDI stood at US$ 16.83 billion during January-June 2011, nearly 57 per cent higher than the US$ 10.74 billion received during the same period last year.
Non-resident Indian (NRI) inflows in the first quarter of 2011-12 has witnessed a rise of 38 per cent as compared to the same period in 2010-11. NRIs invested US$ 1.54 billion in various NRI deposit schemes during April-June 2011.
Private equity (PE) investments in India stood at US$ 6.14 billion in value terms, while the number of deals increased by 33 per cent to 195, during January-June 2011, according to data compiled by Chennai-based Venture Intelligence. The rise in the value of the deals so far (June 2011) recorded a growth of 52 per cent, as compared to US$ 4.04 billion raised during 2010.
India's foreign exchange (Forex) reserves have increased by US$ 1.6 billion to register US$ 318 billion during the week ended August 19, 2011, according to data released by the Reserve Bank of India (RBI). The increase in Forex is largely attributed due to valuation changes.
The Government has approved fund raising worth Rs 60,950 crore (US$ 13.24 billion) by companies through external commercial borrowings (ECB) or foreign currency convertible bonds (FCCB) for infrastructure projects in the financial years 2009-2011.
India's merchandise exports have registered an increase of nearly 82 per cent during July 2011 from a year ago to touch US$ 29.3 billion, according to a release by the Ministry of Commerce and Industry. Exports during April-July 2011 reached US$ 108.3 billion, up 54 per cent over the same period a year ago, according to Mr Rahul Khullar, Commerce Secretary. Exports in the referred period increased on back of demand for engineering and petroleum products, gems and jewellery and readymade garments.
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http://www.ibef.org/india/economy/economyoverview.aspx
he real cause of food price inflation A  A  A

- By Asad Dossani, Author, The Lucrative Derivative Report
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Asad Dossani

Food price inflation is an extremely important issue facing the Indian economy today. Ever rising food prices inflict considerable hardship on the population. This is especially so for the poor, whereby food expenditure is a signification portion of their overall budget. The issue is significant to the point that incumbent politicians can lose an election simply because food prices went up too much, even if it had little to do with them.

Currently, annual food price inflation is around 12%, considerably higher than the overall inflation rate of 9%. As of now, the primary focus of the Reserve Bank of India (RBI) has been to reduce inflation. To achieve this, they have increased interest rates an incredible 13 times since March 2010. Unfortunately, it has been ineffective. Inflation has remained high, and food price inflation has remained even higher.
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There is a good reason why the interest rate hikes have had no impact on food price inflation. Interest rate hikes are designed to take out excess cash in the financial system, and reduce speculative borrowing and investment. Rising food prices are not a result of too much money in the system. Excess cash in the system usually ends up invested in property, stocks, and precious metal commodities. Thus, interest rate hikes will not reduce food price inflation, because excess cash does not cause it in the first place.

If excess cash in the system is not causing food price inflation, then what is? The answer is actually very simple. Consider the following statistics: In the last five years, the Indian economy has grown on average by 8.6% per year. The means our incomes have increased by this amount in real terms every year. Most of the contribution to economic growth has come from service industries, and manufacturing industries to a lesser extent.

On the flip side of this, the agricultural sector has seen extremely poor growth in the last five years. While the overall economy has been growing 8.6% per year, the agricultural sector has growth by a paltry 3.1% per year in the last five years, on average.

Thus, our income is rising a lot faster than food production. Demand is rising much faster than supply, and this is causing the high levels of food price in inflation. In addition, population is also growing by 1.3% per year, further increasing the demand for food.

The only solution to reducing food price inflation is to produce more food. No amount of interest rate changes, taxes and subsidies, or any other quick fix policy will work in the long run. If food production cannot keep pace with rising incomes and a growing population, we are doomed to suffer continuously rising food prices.

Increasing food production is certainly not an easy task. It requires investment in better technology to increase crop yields, investment in better technology to reduce reliance on unpredictable monsoons, a more regulated and transparent food market, and better incentives and adequate compensation for farmers to produce more.

The problem we face today is that policy makers are treating food price inflation as a short-term problem that requires a short-term solution (i.e. raising interest rates). Once we start thinking of food price inflation as a long-term issue, then we can take the right steps to solve it.

Disclosure: I do not hold the currency/commodity that is analyzed in this column.

Asad Dossani is a financial analyst and columnist. He actively trades his own and others' funds, investing primarily in currency, commodity, and stock index derivative products. Prior to this, he worked at Deutsche Bank as an analyst in the FX derivatives team. He is a graduate of the London School of Economics. Asad is a keen observer of macroeconomic trends and their effects on global financial markets. He is deeply passionate about educating investors, and encouraging individuals to take part in and profit from financial markets. To put it colloquially, he wishes to take Wall Street products and turn them into Main Street profits!

http://www.equitymaster.com/dailyreckoning/detail.asp?date=11/12/2011&story=5&title=The-real-cause-of-food-price-inflation

Art of tightrope walking

By R Srividhya Nov 11 2011 , Chennai
Tags: Banking
On October 25, in its monetary policy review, India's central bank, the Reserve Bank of India (RBI), deregulated savings bank deposit interest rates. Bank can now determine their savings bank deposit interest rates.

Before the deregulation, all banks were paying 4 per cent interest rate on savings accounts. Close on the heels of the Reserve Bank of India announcement, three private banks, IndusInd Bank, Yes Bank and Kotak Mahindra Bank, increased savings account interest rate to 6 per cent per annum for balances more than Rs 1,00,000 and 5.5 per cent for deposits lower than Rs 1,00,000.

None of the nationalised banks seems to be in a tearing hurry to hike rates. All big banks, including the country's largest public sector bank, the State Bank of India (SBI), have decided to adopt a wait-and- watch approach, perhaps, indicating the market's inability to absorb another hike.

In a tough market, it is not easy for banks to bear the brunt of rate hikes without passing it on to the end customer. But there is also a limit to passing on rate hikes to borrowers both retail customers and companies.

There are two reasons for banks not to hike rates, many bankers say. One is due to a slowdown in demand for credit and a hike will only further affect it. The other is the fear of an increase in defaults and delinquencies that would result in higher non-performing assets (NPA) or bad loans.

Shrinking demand: The Q2 growth numbers for most banks indicate a 20-30 per cent growth in credit offtake. But, there is more than what meets the eye, industry members say.

"Most of the credit growth being seen now is towards servicing the earlier credit commitment. It is creation and formation of new credit, which will take care of banks' business in the coming years. There is some strain now on fresh credit," says Shyam Srinivasan, managing director and chief executive officer, Federal Bank.

Absorbing rate hikes: The RBI during its last monetary policy announcement, indicated that there could be a pause in the near term because growth was affected due to the hikes and the previous hikes themselves did not yield the desired results.

Although, one reason may be that banks had already factored in this 25-basis-point increase, another important reason was that it did not make sense to hike rates when the demand was already slowing down.

"Base rate increase is determined by the demand for credit and liquidity. Our Q2 numbers may indicate a 21 per cent growth in credit. But there is a lack of new capital expenditure in the market. Only if there is new capex, fresh investments and demand for credit, can we increase the base rate," says M Narendra, chairman, Indian Overseas Bank.

Low credit offtake: While lack of credit offtake was a cause of concern, lending to certain sectors, like microfinance, also resulted in banks burning their fingers badly.

Many banks admit that there was a pressure on asset quality. For ICICI Bank, it was the microfinance sector. In Q2 of this financial year, ICICI Bank restructured Rs 745 crore worth loans, a majority of which was to the microfinance sector.

Saving grace: Demand for consumer credit, for purchase of new homes, cars, two-wheelers or education loans has not witnessed any decline. For HDFC Bank, the retail loan segment was the largest contributor to its loan book in Q2. The demand for retail loans for purchase of homes and vehicles came from all across India, including small towns and cities, according to bank officials.

Since home loans have a floating interest rates, people are confident about getting a lower equated monthly instalment (EMI) outgo, once rates go down and so any time is a good time to take home loans. Also, in cases where the home or vehicle is a first-time purchase and if it is an absolute necessity, no rate increase will stop people from buying, bankers say. The same applies to the demand for education loans too.

Discouraging deposits: Banks may not have hiked interest rates on loans. But what many have also silently done is reduced interest rates on deposits. Many banks, which offered 10 per cent plus interest rates on deposits of one-year tenure, have reduced the interest rates by at least 25 basis points. Most banks have even stopped advertising their deposit schemes and are discouraging bulk deposits in an attempt to protect margins.

State Bank of India recently saw the contribution of bulk deposits go down from 17 to 12 per cent in Q2 and the result showed in the net interest margins.

Although, Reserve Bank of India has indicated a pause in the rates for the time being, many experts predict that rates may not see a downward curve any time before April 2012. It remains to be seen how banks manage to maintain grow their business, avoid bad loans and also protect their margins, in the quarters to come.

rsrividhya
http://www.mydigitalfc.com/banking/art-tightrope-walking-237

Investing in India Worth Looking At

JULY 5, 2011 BY ADMIN LEAVE A COMMENT

Image via Wikipedia

It is no secret that India grows quickly each year. This country, with the second highest population globally, possesses a thriving world economy that is on the increase.  As India expands in the world market, windows for foreign investment open wider to those who would step inside. Here is why you should look into investing in India.

In March of this year, investment icon Warren Buffett stated he was looking to invest in economic powerhouses like India. Asian Development Bank reports that the equity market in India ranks third in the world. With about US$600 billion in market capitalization, it sits right behind China and Japan as one of the major equity markets in the Asian region. India is expected to boost economic growth by at least nine percent annually within the next ten years. India's economy offers investors a variety of opportunities. India's service sector forms fifty percent of its economy. Other industries include pharmaceuticals, energy and consumer goods.

Domestic industry is on the rise in India. Last July, New Delhi opened a 3 billion dollar addition to the Indira Gandhi International Airport. Terminal 3 (T3) took 37 months to complete. Prime Minister Manmohan Singh, who dedicated the new terminal, stated its creation was a global benchmark for India. India's government has worked to strengthen its country's infrastructure.

The Bombay Stock Exchange is the fourth largest stock exchange in Asia. It's also the second oldest in the world, with a history dating back to the 1850′s. With a youthful demographic and a solid work ethic, the global economy will see more from India in years to come.

FILED UNDER: ECONOMIC GROWTH, IMPORTS & EXPORTS TAGGED WITH: ASIAN DEVELOPMENT BANK, INDIA, INDIRA GANDHI INTERNATIONAL AIRPORT

Industries and Investment in the Economy in India

JUNE 8, 2011 BY ADMIN LEAVE A COMMENT

Image via Wikipedia

The population of India is estimated at over 1 billion, and continues to grow every year. It has the third largest economy in Asia, and has plenty of industries that help push the growth. There have been reforms put into place over the last twenty years, which have helped the country to become more prominent in importing and exporting, and other forms of overseas business.

More than 10% of those employed work in industrial fields, and these include manufacturing and production of textiles. Thisindustry was part of the reform, which was altered by reducing costs of the factories in order to sell the materials at a lower cost and stay competitive with the materials produced in China and other nearby countries. Another sector of business in which India's economy has grown drastically over the years is process outsourcing for large companies which are often located in the United States. Since many residents of India are fluent in English, they are able to telecommute and answer calls for customer service, tech support, and other similar service industries. In fact, seven of the large firms located in India make up almost half of the top fifteen outsourcing companies across the globe. India also produces a good amount of agriculture, including logging, fishing, and forestry. Investment is increasing as banks become more stable and secure, which was also part of the economic reform.

India's growth rate is approximately 7% on average, and has greatly reduced the amount of poverty among its residents over the years. The main industries continue to grow, which has given more individuals the opportunity to have stable employment and provide for their families.

FILED UNDER: BUSINESS CULTURE TAGGED WITH: ASIA, CHINA, INDIA

Issues and Trends in the Indian Economy

JUNE 6, 2011 BY ADMIN LEAVE A COMMENT

Image by World Economic Forum via Flickr

In the past 15-20 years, India has seen some excellent growth and progression in its economic situation. Current affairs point to continued growth, and has been the second fastest rising large economy. However, there have been a few changes in the past few months that could lead to a dip and cause a struggle for those employed in this country.

It isn't too big of a surprise that importing/exporting and automobile sales have been on the decline, since the economy worldwide is struggling and many individuals are choosing to buy locally to support their economies. Inflation in India has increased more rapidly than it has in years past, making it more difficult for families to be able to afford groceries, clothing, and other necessities. The Prime Minister of India is trying to take matters into his own hands, especially after suffering backlash from scandal, corruption among the government agencies, and contentment with the current situation. Many residents of India are frustrated with their government, who seems unwilling to make the necessary reforms in an attempt to boost the economy. Such reforms have been seen in the United States, such as tax credits for homebuyers and those who were employed for the whole year, and helped increase the amount of money received on many tax returns. However, without sufficient funds to pay for such programs, it can be difficult to upswing an economy that is spiraling downward.

There is hope that the Indian economy is simply encountering a speed bump in its growth. Some predict that it will turn around, but only time can show what the future holds for those living and working in India.

http://www.indianeconomics.org/

India's Economy in 2010

By: EconomyWatch Content   Date: 5 April 2010

About The Author

Follow The Money

EconomyWatch, Content Team

India is an emerging economy which has witnessed unprecedented levels of economic expansion, alongside China, Russia, Mexico and Brazil. India is a cost effective and labor intensive economy, and has benefited immensely from outsourcing of work from developed countries, and has a strong manufacturing and export oriented industrial framework.

With India's economic pace picking up, global commodity prices have staged a comeback from their lows and global trade has also seen healthy growth over the last two years.

Economic Prospects for 2010

The global economy seems to be recovering after the recent financial crisis in 2008. The Indian economy, however, was hit in the latter part of the global recession as real economic growth witnessed a sharp fall, followed by lower exports, capital outflow and corporate restructuring.

It's expected global economies will continue to be sustained in the short-term, as the effect of stimulus programs is yet to tak and tax cuts are working their way through the system in 2010. Due to the strong liquidity positions in the market, large corporations now have access to capital in the corporate credit markets.

India's Economic Outlook Projection

2007

2008

2009

2010

GDP Growth

9.40%

7.30%

5.40%

7.20%

CPI

6.40%

9.30%

5.50%

4.90%


Indian Economy 2010

In order to sustain economic growth, government authorities in India have announced stimulus packages to prop up economic growth. To finance the stimulus packages, the Indian government has raised over $100 billion over the last four quarters. The country's public debt, according to the RBI, has surged to over 50 percen of the total GDP and the RBI has started printing new currency notes.

Central Government Debt

in Rs. Crores (10 Million)

Q3 2008

Q3 2009

% of GDP

Public Debt (Sum of 1 and 2)

2,099,286.23

2,505,450.74

50.71%

1. External Debt

237,351.77

294,941.67

2. Internal Debt

1,861,934.46

2,210,509.07


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Most Popular in Indian Economy

http://www.economywatch.com/indianeconomy/indian-economy-overview/
  • Posted: Sat, Nov 12 2011. 12:49 AM IST

Managing social and natural wealth
India's successful transition depends on it securing and effectively using a huge volume of natural resources to deliver that growth in individual and collective prosperity

 

India's rapid growth at near double-digit rates in the years to come should bring hundreds of millions out of poverty and establish a 21st century economy underpinned by modern infrastructure, effective health and education systems.
The country's successful transition depends on it securing and effectively using a huge volume of natural resources to deliver that growth in individual and collective prosperity. India is not alone in that, sharing one world with other emerging and already wealthy nations.
Redefining growth in this context is not a ploy to deny India its historic right to development and material prosperity, but an imperative to ensure that this right can be translated into practice and outcomes. Nobel Prize-winning economists Amartya Sen and Joseph Stiglitz, together with French economist Jean-Paul Fitoussi, set out the arguments for, and means of redefining progress in their recent report of the Commission on the Measurement of Economic Performance and Social Progress.
Truly remarkable progress, they compellingly argued, cannot be about valuing the sale of bottled water, which found ready buyers because of the toxicity or lack of simple tap water, or the sale of cars that diminishes the health and productivity of hundreds of millions of urban dwellers.
Growing prosperity and accompanying well-being were not, the economists concluded forcefully, adequately reflected in measures of growth of national financial income or gross domestic product (GDP).
Indeed, they are not the first to reach this conclusion. Nobel Prize-winning economist Simon Kuznets, famous for his theories of economic growth, wrote in a report to the US Congress: "The welfare of a nation can, therefore, scarcely be said to be inferred from a measure of national income..."
For India, this is neither a new message nor one that has been imported from elsewhere. Quite the reverse, it is one that is deeply embedded in its own historical narrative from politics to poetry.
Yet there is little doubt that the message about quality over quantity and warnings about environmental limits are being lost in the face of the continued material poverty of so many, the dash for wealth of the rising middle class of emerging nations, and the panicked call for more consumption by political and business leaders across the becalmed economies of Europe, Japan and North America.
Consumption, we are told, is both the means and the ends of a successful 21st century economy. We embrace this self-serving, moral and indeed, at times, nationalistic call to consume more, often against our better judgement, and in defiance of the plain facts of the matter that we are running out of resources and damaging the ecosystems that sustain us. Anyway, who in their right minds would consume less if that allowed other less publicly spirited folks to consume more?
Photo: Aniruddha Chowdhury/Mint
The World Economic Forum has long argued the case for embracing the need for sustainable growth. Yet, until now, its annual Global Competitiveness Index—the most authoritative international ranking of nations' competitiveness—has not systematically taken sustainability issues into account.
This year, for the first time, the forum is beginning to integrate into this ranking the impact on nations' competitiveness of their management of natural and social wealth. Seven new quantifiable variables— health, primary education, social cohesion, environmental policy, resource efficiency, management of renewable resources, and environmental degradation—were added into a methodology already packed with data on more traditional measures of economic health.
The impact on national rankings of introducing these new measures as drivers of long-term competitiveness has been in many instances dramatic, with long-time leaders falling down the table and others emerging as potential winners in the long-distance race for economic health and competitiveness. India, the US and China, applying these new measures, are all losers by rank, falling more than 10 places from their positions last year. In contrast, Brazil, Kenya and the Philippines rose more than 10 places on the Sustainable Competitiveness Index compared with the standard competitiveness ranking.
The bottom line is that the new Global Sustainable Competitiveness Index confirms the common sense view that healthy, competitive economies in this century will be those that effectively manage social and natural wealth. Mobilizing technology and finance, securing flexible and dynamic markets, engaging productive citizens and establishing the right institutional conditions are all needed as well, but will not happen unless there is effective management of a nation's foundations, its people and natural assets. As other nations reach the same conclusions, one's ability to trade and invest across borders will depend on one's demonstrated capability of getting it right at home.
I am looking forward to discussing these issues at the World Economic Forum's first Sustainable Growth Summit in Mumbai on 12 November. It will be through open dialogue about long-term competitiveness, as well as the challenges of near-term sustainable development that will enable us all to advance our thinking and shift our mindsets to explore a common vision of progress.
Redefining progress is far more than a shift in the headline measure of a nation's aggregate product, and is in no way a sign of diminished ambitions and expectations. Far from it, being a curious, if not problematic, shifting of legitimate development goal posts, it marks a recognition of what will drive successful economies in an era of environmental limits and growing social demands. India will be a global leader this century, of that there is little doubt. What is yet to be determined is where it will lead us and with what consequences. The opportunity exists for it to establish the terms for its own sustainable growth and point the way for others. That would be a remarkable India indeed.
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http://www.livemint.com/2011/11/12004940/Managing-social-and-natural-we.html?h=B

What India can learn from the Greek Debt Crisis

Mic this!2

While the Greek and euro zone debt crisis is the current preoccupation of policy makers, Indian newspapers and TV channels are virtually silent on the matter. After all, India's economy is booming – growing at asolid 8%; what can India have to worry about?
At closer inspection, the Greek crisis is more relevant to the Indian economy than one would necessarily imagine. India's budget deficit is nearly at $50 billion – the highest amongst BRIC countries; a 2009 study indicates that India owed about $2.5 trillion – 78% of its GDP at the time. And while it's true that India has traditionally financed its budget deficits domestically, this is where the Greek crisis becomes a pertinent case study. India, like Greece, is plagued by an evasive tax ethos and a large, informal economy.  
Let's describe the Greek crisis in a nutshell: Greece racked up government debt so it had to adopt stringent austerity measures and secure a bailout. And why did Greece get itself into this mess? While the most common answer is excessive public spending, one cannot ignore the role of tax evasion in perpetuating a regressive economic system.
Public spending and tax evasion contributed to the Greek crisis in equal measure, and this is where the relevance and parallels to India are evident. India's public deficit is three times the average of any emerging economy. India has an even larger informal economy than Greece, with the Indian informal economy making up roughly two-thirds of its GDP as opposed to Greece, where the informal economy is about 27% of the GDP. Further, India, like Greece, has been plagued by corruption scandals, some of the foremost examples being the 3G scam (totaling about $40 billion in losses for the Indian Government) and the Commonwealth Games.

The two countries are characterized by a peculiar vicious cycle – where tax evasion makes people trust the system less, and inexact enforcement measures and bribery encourage evasion. Both Greece and India have recently dealt with public protests; Greece is trying to improve its enforcement system, and the Indian government has been compelled to commit to introducing an anti-corruption law known as the "Lokpal Bill" following a popular protest led by Gandhian Anna Hazare.
The main lesson that India can draw from the Greek example is that mismanagement of a macroeconomic system compounded by sociological factors such as tax evasion and a shadow economy. Evidence however, suggests that the Indian government is content to let the large informal economy continue and grow unregulated, while its budget deficit more than doubles. And while India is nowhere close to the danger zone as yet, the Greek example begs the question that given India's public spending and culture of tax evasion – will India become another Greece?  
Photo Credit: Dinesh Cyanam
http://www.policymic.com/articles/2340/what-india-can-learn-from-the-greek-debt-crisis
The path to sustainable growth
GDP can be and often is used as a proxy (rather than a direct measure) of the standard of living because as standards of living increase, GDP generally increases

 

India is aiming to speed up economic growth to 9% over the next five years, a pace that would put it on track to move from being the world's 10th largest economy to No. 3 by 2025. This equates to the second fastest growth of any major economy, and makes India one of the fastest growing in the world over the past two decades.
It is also home to 18% of the world's population, living off 2.4% of the world's land area. In this context, one might ask what are the throughputs being used to feed and build the country, and how sustainable can these growth rates be? To answer questions of sustainable growth, we must first explore what we mean by growth, and then dissect the sustainable part—that ubiquitous word with ever-less meaning.
So, what do we mean by growth? Generally speaking, in this context, the conversation is focused around economic growth, and for several decades, growth in gross domestic product (GDP) has been the primary goal of economic and development policy. The appropriateness of growing GDP as a measure of success is now seriously in question.
Photo: Hemnay Mishra/Mint
If we look at a classical definition of GDP, it measures particular types of economic activity within a specific country. As a measure, GDP is convenient as it is measured frequently, widely and consistently, allowing it to be calculated often (usually quarterly), used as a benchmark across nearly every country of the world, and calculated in the same way in each of these geographies.
GDP can be and often is used as a proxy (rather than a direct measure) of the standard of living because as standards of living increase, GDP generally increases. There are, however, shortcomings.
Firstly, GDP per capita is not a measurement of the standard of living of an economy, and was never actually designed to be so. In 1934, the economist Simon Kuznets wrote in a report to the US Congress, "The welfare of a nation can, therefore, scarcely be said to be inferred from a measure of national income..."
Secondly, there are several limits to using GDP to judge the health of an economy and in particular to measure the health of an economy over the long term. GDP does not measure wealth distribution or the grey or black markets, barter economy and subsistence production.
Thirdly, if the aim of an economy is to produce sustainable growth, then GDP is a measure focused on throughput of materials, capital and labour rather than the outcome of better lives. In this case, GDP is actually a perverse measurement as it treats a loss of ecosystem services as a benefit rather than a loss. Deforestation increases GDP in the short term, as does war, neither of which is a benefit to the long-term health of an economy or its individuals.
So, if how we define growth is up in the air in our exploration of sustainable growth, then what do we mean by "sustainable"?
There is a classic definition of sustainable development: "development that meets the needs of the present without compromising the ability of future generations to meet their needs". Whether one has an environmental bone in one's body or not, this is a sensible definition of development, sustainable or otherwise. Ten years ago, at the Johannesburg Earth Summit, an African elder defined sustainable development as "enough for all forever".
For the first time in 30 years, the World Economic Forum has attempted to integrate sustainability measures into its Global Sustainability Report. If measures such as resource use and pollution were to be incorporated into the rankings, India would fall more than 10 spots from 56th place.
As part of this exploration, seven new quantifiable variables were consulted, in addition to the 10 original ones. These new variables are health, primary education, social cohesion, environmental policy, resource efficiency, management of renewable resources and environmental degradation.
In the short term, each of these variables could be considered a cost, but few would argue that they are costs in the long term. It is interesting to consider, in the first instance, that these have not been considered in an assessment of global competitiveness for the past 30 years. Similarly, they have generally not been considerations for governments or business when making investment choices for the past decades (or century, for that matter.)
Many of these variables are the same issues that are included under the umbrella of the Millennium Development Goals. Perhaps if the world takes a different view of sustainability, which encompasses more than just the environment, then new quantifiable variables such as these can be used to track society's progress over the long term.
To return to economist Kuznets, who won the Nobel Prize in 1971, he also stated that, "Goals for more growth should specify more growth of what and for what." To that we could also add "for how long".
India is certainly not the only economy with sustainable growth challenges, but as the world's largest democracy, it has an obligation to the long-term quality of life of its citizens.
Perhaps, rather than looking for aspiration in the US where the quest for quantity reigns, India might look to its tiny neighbour to the north, Bhutan, one of the world's youngest democracies, to explore how measuring gross national happiness can lead to better quality of life and more sustainable growth.
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http://www.livemint.com/2011/11/11200831/The-path-to-sustainable-growth.html?h=B

WaPo: Why aren't people totally into our awesome economic growth?

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POSTED AT 11:00 AM ON NOVEMBER 11, 2011 BY ED MORRISSEY

PRINTER-FRIENDLY

When something appears inexplicable, it's best to start by checking assumptions first.  Ylan Mui at the Washington Post should have taken that advice before reporting on a "rift" between the supposedly good economic growth an the American state of mind:

A rift is emerging between Americans' state of mind and the state of the economy.

The economy is getting stronger, with the nation's gross domestic product growing at its fastest clip so far this year. The number of new people signing up for unemployment benefits has steadily declined, and consumer spending is rising.

But by almost any measure, Americans remain unhappy. Consumer confidence has plunged to levels last seen during the financial crisis. A recent Nielsen poll found that nine out of 10 Americans believe the country is still in a recession. … This persistent pessimism has perplexed economists.

So what are the assumptions that lead this article?  First, Mui implies that the economy is heating up, and that the weekly initial jobless claims rate indicates a significant improvement that consumers should notice.  Neither are true.
Let's start with GDP growth.  The third quarter did deliver the best growth number of the year — but that's a very, very low bar to clear.  It hit 2.5%, which beat 1.3% in the 2nd quarter and 0.4% in Q1.  But annualized 2.5% GDP growth in a quarter doesn't indicate a strong economy; at best, it indicates a mediocre economy.  It also ignores the economic impact of the Japanese tsunamis and oil-price shocks in the earlier quarters.  Look at this graph from the Bureau of Economic Analysis that charts quarterly GDP reports to see how that fits into our economic trajectory:
The Q3 measure puts us in the same post-recovery trajectory that we had before the tsunamis and the oil-price shocks.  It's not significant growth, and there is no reason for consumers to get excited about a preliminary report of 2.5% annualized GDP growth in any quarter.
How about the initial jobless claims?  First, the problem for consumers isn't in the jobless claims themselves, it's what they represent.  We aren't adding jobs in significant enough numbers to re-employ the millions who lost their jobs.  In the post-recovery period, we have added an average of 125,000 net jobs per month — which is only enough to keep up with population growth, not to eat into the swollen ranks of the chronically unemployed.  Last month we didn't even get that much, only adding 80,000 net jobs.  However, even looking at the initial jobless claims, we're only approaching the Q1 range of 380,000 per week, not dropping to the 300K or lower level which historically correlates to robust job creation.
Finally, the entire article misses one key point.  Unlike other recessions, this one hit consumer home values hard, which means that their biggest savings asset — their house — has much less equity, or in many cases, none at all.  That will force Americans to save more of their income as no one expects home values to escalate like they did in the previous decade ever again.  Only those who bought before the bubble and didn't treat their home equity as ATM machines went relatively unscathed.  It's not difficult to figure out that spending will get suppressed as a result.
When we see significant economic growth, though, consumers will spend again — more rationally this time around, but they will spend again.  The so-called "rift" doesn't exist now, because the economy is not significantly improving.  I'd call thatrational behavior, a clear connection between behavior and reality.
http://hotair.com/archives/2011/11/11/wapo-why-arent-people-totally-into-our-awesome-economic-growth/

Economy: It's like the 1990s again, so there's hope yet

Published: Saturday, Nov 12, 2011, 10:30 IST
By Arjun Parthasarathy | Place: Mumbai | Agency: DNA
The current state of the market and the economy is reminiscent of the 1990s, when India had high inflation and bad loans.
Twelve years later, it's ditto. And the last time, India came out stronger due to forced reforms. Can it rebound thusly from the current mess too?
Banks then were facing writedowns on loans given to sectors such as steel, textiles, power and cement and it had become a huge issue.
The government had to recapitalise banks and protect institutions such as ICICI and IDBI from going under. Cut to the present and the government has to recapitalise banks as loans given to power, construction, airline and other sectors are going bad.
The State Bank of India, the country's largest lender, had net NPAs of 2.04% in the just-past second quarter against 1.7% in the same period a year ago.
Inflation at 9.7% is way beyond the Reserve Bank of India's (RBI) comfort zone, though RBI has forecast it will come off to 7% by next March end.
Inflation in the beginning of the 1990s was consistently over 10% and interest rates were high on the back of high inflation. Ten-year government bond yields were above 10% in the late 1990s, even though inflation had started to trend down in the second half of 1990s. Ten-year yields at present are trading at multi-year highs of close to 9%.
On the global front, the 1990s saw the burst of the Asian tiger economies' bubble, while it is the turn of the developed economies to face the burden of debt at present.
Global markets are in turmoil over debt issues of Greece and Italy. Italian bond yields have touched unsustainable levels of 7% given its total debt at $2.7 trillion or 120% of GDP.
Markets are worried about the unsustainability of debt levels in European countries leading to a selloff in equities and currencies. European equity indices are down by over 12% since August 2011, while the euro has fallen by over 5% against the dollar on the back of the sovereign debt issues.
How will markets behave going forward?
The problems facing the economy and markets will not go away in a hurry. It is a slow process as governments cut down deficit and central banks fight inflationary pressures. The bright spot is that markets are forcing the government to do the right things.
Euro zone governments are in austerity drives, while the Indian government is fighting to keep its deficit down. The RBI is focused on keeping inflation under control while lenders are becoming risk averse and are focusing on strengthening balance sheets.
The effect of fighting turmoil tells on growth. The euro zone is likely to face a recession in 2012, while India's GDP growth is forecast to drop by 1% in 2011-12.
Indian is also facing pressures on its currency due to its current account deficit, which could cross 3% of GDP this year on a widening trade gap.
The trade deficit in October at $19.6 billion was a record high leading to worries on the current account.
Markets will be volatile in the short term, but as the dust settles and effects of right policies tell on the economy, markets will look to factor in a stronger period of growth.
The process could take at least six months. Till then, it will be a tough time for investors.
http://www.dnaindia.com/money/report_economy-its-like-the-1990s-again-so-theres-hope-yet_1611262
Road Ministry to roll out $120-billion projects to widen national highways
In a bid to attract foreign investors to its ambitious highways building programme, the Road Transport Ministry plans to roll out projects worth $120 billion by 2016, a top official said.

This would be to widen about 55,000 km of highways as barely 23 per cent of the total national highways in the country are four/six laned and foreign companies would be encouraged to invest here.

"Only about 23 per cent of the highways in India are 4/6 laned and the sheer potential for investment in this sector is likely to create opportunities, which may also be attractive to foreign players. Investment in next five years is likely to be $ 120 billion (Rs 5.78 lakh crore)," the official said.

Last month, during his China visit, Highways MinisterC P Joshi had invited Chinese investors to participate in the country's mega road projects, each entailing an investment of about Rs 4,900 crore ($ 1 billion).

As of August 2011, out of 214 projects under implementation with National Highways Authority of India ( NHAI), 40 are being implemented with participation from foreign firms.

"Indian-Russian firms are implementing a maximum nine projects, at present, followed by five each by Indian-Chinese and Indian-Spanish firms," the official said.

South Korean firms are executing four projects, while Indian-Dubai and Malaysian-Indian firms are implementing three each projects, besides two projects by South Korean-Indian JVs.

Apart from this, foreign firms have also extended consultancy in 64 projects.

The country has a road network of 33 lakh km, of which national highways constitute only 2 per cent (about 71,000 km) but carry about 40 per cent of the total road traffic.

Prime Minister Manmohan Singh too has raised concerns over highways deficit in the country, which led toRoad Ministry seeking enhanced private participation to augment the sector.

"We have to make an intense and sustained effort to ensure that this deficit is bridged," the Prime Minister had said recently.

The Transport Ministry has set a target of awarding 7,300 km of roads in the current fiscal.
19 SEP, 2011, 04.50PM IST, PTI

Pranab Mukherjee to seek US investments in infrastructure space

WASHINGTON/NEW DELHI: Led by Finance Minister Pranab Mukherjee, and his three Cabinet colleagues, India will make an aggressive pitch to USindustrialists to invest in the country's infrastructuresector.


Mukherjee, who will be on a five-day visit to US from September 21, will address the 8th Annual India Investment Forum Meeting.


The theme of his address will be India's continuing growth story, a finance ministry statement said.


Mukherjee is expected to ask the US corporate to invest majorly in India's infrastructure sector, which needs more than a USD 1 trillion over the next five years.


Commerce and Industry Minister Anand Sharma, Power Minister Sushil Kumar Shinde and Renewable Energy Minister Farooq Abdullah, accompanying the Finance Minister, will also address the forum.


Besides, Karnataka Chief Minister D V Sadananda Gowda, accompanying the ministers, will seek investments for the state.


Tata group Chairman Ratan Tata, Reliance Industries Ltd Chairman Mukesh Ambani, SBI Chairman Pratip Chaudhuri, ICICI Bank CEO & MD Chanda Kochhar, Bharti Enterprises Chairman Sunil Mittal, HDFC Ltd Chairman Deepak Parekh and Apollo Hospitals MD Preetha Reddy will represent the corporate sector at the forum.


The US CEOs who are likely to participate include Indra Nooyi (Pepsico), Vikram Pandit (Citi Bank), Dave Cote (Honeywell), Jamie Dimon (J P M Chase) and Ellen Kullman (DuPont).


The Meeting would also discuss the effects of increasing inflows of foreign investment into Indian markets, said Ranjana Khanna, deputy secretary general, FICCI USA.


Mukherjee, along with his counterparts from Brazil, China, Russia and South Africa, would discuss policy responses and explore the manner in which BRICS could coordinate in addressing the evolving economic and financial situation in the various countries of the world.


The meeting will also discuss the reports which were commissioned by India on the role that BRICS could play in the global economy.


Prime Minister Manmohan Singh is also visiting US this week to participate in the United Nations General Assembly (UNGA) session. He will be making an appearance at the UN General Assembly after a gap of three years.


Mukherjee will also attend the 86th Meeting of G-24 Ministers to discuss global recovery and growth. He would also assume the Presidency of G-24, which is the inter-governmental group of 24 nations.

8 JUN, 2011, 08.21PM IST, PTI

Govt to award Rs 70,000 cr road contracts this fiscal

NEW DELHI: Contracts for building 11,050 kms of roads will be awarded in the current fiscal year involving an estimated investment of Rs 70,000 crore, as per the target set by the Ministry of Road,Transport and Highways.


The ambitious road building plans were reviewed by Prime Minister Manmohan Singh today with Road Transport Minister C P Joshi and senior officials of the ministry and the National Highways Authority of India (NHAI).


Of the total work proposed to be awarded this fiscal, 7,300 km would be under the National Highways Development Project (NHDP), an increase of 44 per cent over 5,095 km in 2010-11. Under this component, investment is earmarked at Rs 57,000 crore.


As part of a development strategy, the government wants to complete 1,759 km of roads in the Left Wing Extremism (LWE) affected areas this year involving an outlay of Rs 3,000 crore.


The road ministry plans to award 1,991 km road projects too under the Special Accelerated Road Development Programme in North-East where Rs 10,000 crore investment could be made.


India has 70,934 km national highways network. Work is in progress on 10,142 km as of March end, an official said after the review meeting.


The road ministry highlighted the problems for the speedy implementation of the road projects. It wanted expeditious approval from the Planning Commission for upgradation of 10,000 km of state roads to new national highways already cleared by a Group of Ministers.


Over and above this, 10,000 km roads also need to be upgraded to the national highways.


The ministry intends to make 12,000 km of stretches of national highways to be proper two-lane national highway standard.


"Additional allocation of funds are also required for maintenance and repair of national highways," a ministry official said, adding that the amount required is nothing less than Rs 1,000 crore.


Formulation of a road development plan for districts with large tribal population was also discussed.

Air India to pay employees October salary on Monday

Cash-strapped Air India today released an instalment of pending allowances to its employeesand said it would pay the last month's salary on Monday.


"We have today released Productivity-Linked Incentive (PLI) for all eligible employees and will be paying the October salary on Monday to all our staff," a top airline official told PTI.


With these payments, no salary would be pending and the number of unpaid PLI instalments would be reduced to about three, he said.


The official expressed hope that the pending PLI instalments would be paid in the months to come as soon as the government approved the turnaround plan for the airline.


There has been some disgruntle among the AI employees, ranging from pilots and engineers to cabin crew and ground handlers, over delayed salaries and PLI payments.


Meanwhile, Air India's passenger load factor improved during the past week with the cancellation of flights ofKingfisher Airlines.


The load factors, which generally hover around 70-72 per cent, has gone up to 75 per cent, the official said.

Sachin Tendulkar's wait for the elusive 100th century
11 NOV, 2011, 05.33AM IST, TR VIVEK,ET BUREAU

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More than stock market indices, headline inflation figures or GDP data, Sachin Tendulkar's on field performances have perhaps been a better barometer of our national mood for over two decades. Not surprisingly, the analysis of Tendulkar's 100th in the Indian media since the beginning of the Lord's Test in July has been endless.


If a Martian a happened to scan the archives of Indian newspapers , it would appear to him that Tendulkar's milestone has a greater importance on our existence than the economic crises in the Eurozone, or the policy paralysis that has gripped India's economy. As India breathlessly awaits his 100th, a veritable Mount Everest of cricket records , alongside Sir Don Bradman's Test average of 99.94, that is unlikely to be ever scaled, all other cricketing matters have taken a backseat.


This is perhaps the weakest West Indian team to tour India, and the s series itself seems hurriedly put together to fill the gap before the much awaited a India tour to Australia later in the winter. And it's only the anticipation of Tendulkar's record that seems to lend the series any meaning.

*


But for a man who is at the cusp of a 100 international hundreds, his spells without a ton (and there have been a few) have been agonizing for his fans.


Having broken on to the international stage at the tender age of 16, more than 20 years ago, at a time when George Bush Sr. was the president of the US and the Berlin wall still stood, it took him fairly long to reach his first hundred. Tendulkar himself has spoken in detail about the creeping self doubt whether he belonged to the big stage at all. He came close in Napier in his 10th Test outing at Napier. Team India's future coach John Wright took a famous catch at mid off when Tendulkar was on 100, robbing the boy wonder of the record of becoming the youngest Test centurian beating another pint-sized subcontinent batting great Hanif Mohammed.


Finally, the moment came late summer at Old Trafford in 1990 when he cracked a breezy 119 not out in a match saving effort. He had to wait seven more innings but nearly a year and a half to get his second. "There are many phases in Tendulkar's career when India played precious few Tests. If like Australia or England, India had a tradition of playing at least 10 tests a year, he probably would have been within touching distance of 20,000 runs," says K Srikkanth, Tendulkar's first skipper.


In the 1991-92 winter tour of Australia, came Tendulkar's finest moment. While the tour had been disastrous for India, a young Tendulkar lived up to the promise . His 148 not out at the third Test in Sydney was the youngest by anyone playing in Australia, and he won the first of many battles he would fight against the great Shane Warne.

http://economictimes.indiatimes.com/news/news-by-industry/et-cetera/sachin-tendulkars-wait-for-the-elusive-100th-century/articleshow/10686430.cms

NASA readies launch of 'dream machine' to Mars

WASHINGTON: The US space agency is getting ready to launch later this month the biggest, most expensive robotic vehicle ever built to explore Mars for signs of previous life there, NASA said Thursday.


The Curiosity rover, known formally as the Mars Science Laboratory (MSL), is a $2.5 billion state-of-the-art vehicle equipped with video cameras and a sophisticated mobile tool kit for analyzing rocks and soil on the red planet.


The launch of the 1,982-pound (899-kilogram) rover is set for November 25 at 10:21 am (1521 GMT) from Cape Canaveral Air Force Station in Florida.


"This is a Mars scientist's dream machine," said Ashwin Vasavada, MSL deputy project scientist at NASA's Jet Propulsion Laboratory.


"This is the most capable scientific explorer we have ever sent out... We are super excited."


The rover will explore the Gale Crater on Mars, just south of that planet's equator, where a range of soils exist and a small mountain gives the rover a chance to climb and analyze samples at different heights.


But first it faces a long, 354-million-mile (570-million-kilometer) journey to get there, taking about eight and a half months before landing in August 2012.


The landing itself is set to be a spectacular affair. A ravioli-shaped capsule will open to expose the rover suspended by a "rocket backpack" that will fire its engines to lower the MSL to the ground.


The rover's six wheels and suspension system should "pop into place just before touchdown," NASA said. Then, the machine goes into "surface mode," using a series of cameras and a long robotic arm to investigate the Martian terrain.


"It is not your father's rover," said Doug McCuistion, director of the Mars Program at NASA headquarters in Washington, describing it as "truly a wonder in engineering... the best of US imagination, the best of US innovation."


NASA sees the latest rover as a midway point in a long journey of Mars exploration that began with the landing of the Viking spacecraft in 1976 and may culminate with a human mission there in the 2030s.


The venture is not meant to hunt for life on Mars, but rather for signs that it once may have existed there.


Any clues it can send back about the habitability of Earth's neighbor, the fourth planet from the Sun, and about the radiation levels there will be important to NASA as it devises future exploration missions.


"This mission has the purpose of setting us up for an eventual life detection mission," said Vasavada. "The goal of this mission is to look for habitable environments on Mars."


The landing site was announced in July, a day after the space shuttle Atlantis returned to Earth from its final mission to the International Space Station, marking the formal end of the 30-year US shuttle era.


The project is meant to last two years, but NASA hopes that like some of its other rovers in the past, Curiosity will outlive its expected potential.


The rover has such advanced instruments that scientists expect it will return much more data than any other to date.


"Viking did the best it could, but it could only see a couple of samples. MSL is going to look at tons of samples," said Pamela Conrad, deputy principal investigator of sample analysis at Mars.


Her experiment, a set of three spectrometers, is "designed to not only sniff the atmosphere and look for volatile species but to evolve gases from solid samples and then sniff those gases that come out," she said.


"Mars very easily could have produced life. Mars could very easily have evolved the complex chemistry that is necessary to be a habitable environment. And that information is still on Mars."


Of course, those involved in the launch have some jitters over the mission too because it is so complicated.


Russia's failure this week to get its pioneering Mars probe off on the right course also serves as a grim reminder of the dangers involved.
17 APR, 2011, 03.33AM IST, RITUPARNA CHATTERJEE,ET BUREAU

Human mission to Mars by 2035: Is it possible?

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SAN FRANCISCO: If you are to believe the second man to land on the moon, Buzz Aldrin, we ought to start packing for Mars. Aldrin-who landed on the moon just 15 minutes after Neil Armstrong-says the US government should soon start sending the first bunch of human settlers to Phobos, Mars' inner moon. Eventually, they could get to the Red Planet itself by as soon as 2035.


US President Barack Obama echoed Aldrin's thoughts last year at the Kennedy Space Center in Florida, when he famously told the world: "By the mid 2030s, I believe we can send humans to the orbit of Mars and return them safely to Earth."

*

Aldrin's dream points to the next wave of space exploration, focused not on the moon but on Mars. "The moon is no longer our primary destination. Last year, the US National Aeronautics and Space Administration (Nasa) was directed to focus on human exploration beyond low-Earth orbit...reach a near-Earth object by 2025 and then fly by Mars in the mid-2030s," a Nasa spokesperson told The Economic Times on Sunday.


Lacking oxygen and flowing water and with extreme temperatures, Mars isn't exactly hospitable. But it has plenty of land, minerals, Earth-like seasons and is close to both the sun and the Earth. Mars is still our best bet in the solar system for a second home. That's why major space research agencies across the world are targeting it. Leading the pack is the US, which has already launched 20 Mars exploration missions. "We're now preparing for what many are calling one of human kind's greatest robotic Mars missions," said the spokesperson, referring to the Mars Science Laboratory's Curiosity Rover which is being built at the Jet Propulsion Laboratory in Pasadena, California.

It will gauge Mars' environment and provide daily weather reports.


Given the magnitude and complexities and the expertise required, international collaborations are a hallmark of most major Mars missions. The European Space Agency's (Esa) ExoMars missions for instance, are taking place in collaboration with Nasa. They are a part of the Esa's Mars Robotic Exploration Preparation (MREP) programme under which the two space organisations plan to send joint robotic missions in 2016, 2018 and 2020.

These would consist of a series of landers and supporting science orbiters which would conduct astrobiological, geological, geophysical and other investigations. These diverse missions focus on getting Martian samples and studying them for signs of life.


Japan launched its Mars mission, Nozomi-meaning 'hope'-way back in 1998. It was meant to study the upper Martian atmosphere and its interaction with solar wind. But Nozomi failed due to electrical issues.


Since as early as the 1960s, Russia has launched a dozen Mars missions-some simply meant to fly by Mars. But none of them have been successful. Nasa has been the luckiest achieving success in 13 out of 20 Mars missions. Russia isn't launching Mars missions but it hasn't abandoned its Red Planet dreams yet. In March 2009, it locked up a bunch of cosmonauts in a pretend-spaceship, a metal tank, for 105 days. They were being psychologically prepared for the long journey to Mars. They lived as they would have on a real mission--on their own with limited supplies, reusing and recycling their food and water supplies, no contact with the outside world, repairing any technical glitches themselves with up to 40-minute communication delays with their space agencies back on Earth.


The message on the next wave of space exploration for emerging economies, which are just getting aggressive about space, couldn't have been clearer. Aldrin suggests that India and China could collaborate by providing propellant to Nasa rockets headed to Mars. Sure, but China's plans are a lot grander. In November this year, China will launch its Mars orbiter Yinghuo 1 aboard Russia's Phobos-Grunt spacecraft. And it plans to launch its own independent Mars probe by as early as 2013.


Clearly, China is far ahead of India in the space race. It became the third country in the world, after the US and Russia, to independently send a human to space--in 2003, when Yang Liwei piloted the Shenzhou 5 into the Earth's orbit. While praiseworthy, sending a human into orbit today isn't as revolutionary as it was during Yuri Gagarin's days. Even private companies like SpaceX, XCOR, Virgin Galactic and several others are offering space rides to those who can afford them.


India too, is contemplating a mission to Mars sometime this decade. The Indian Space Research Organisationhas received `10 crore of seed funding from the Indian government to firm up its Mars plans.

But astronauts are not packing their spacesuits. Mars is a lot less hospitable for human life than Earth. So it's going to be more of a base rather than a second Earth.


A one-way manned trip to Mars takes six months and a round trip could cost as much as South Africa's GDP ($527.5 billion, CIA Factbook estimates for 2010). In fact, the central challenge for Mars missions is cost. All space powers have budget constraints, especially the US.


Sending the first humans to the moon independently was crucial to the US. There was tremendous political pressure and support because winning the race to space would be more significant than any war. By successfully sending Aldrin and his buddies aboard Apollo 11 before Russia (then USSR), the US had proven its supremacy and established itself as the number one global superpower. Such is the power of space. Until man accomplishes the small step of finding a massive political propellant again, this second giant leap for mankind might remain a dream.

http://economictimes.indiatimes.com/news/newsbyindustry/etcetera/Human-mission-to-Mars-by-2035-Is-it-possible/articleshow/8001130.cms

12 NOV, 2011, 05.01AM IST, ET BUREAU

Scams and subsequent witch hunts have hit decision-making: Kaushik Basu

Wipro Ltd.

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NEW DELHI: Chief economic advisor Kaushik Basuon Friday said decision-making has slowed down in the government, but blamed it on the recent spate ofscams.


"There is a certain slowdown in bureaucratic decision-making. Given the corruption scandals and subsequent witch hunt, some decision-makers are going slow," Basu said.


Basu's remark is in line with what experts and industrialists have been saying about tardy decision-making affecting the business and investmentsentiment in the country.


"The biggest concern is over governance issues. There is complete absence of decision-making among the leaders in the government," Wiprochairman Azim Premji had said recently.


In an open letter to the national leadership, India Inc leaders including Premji, Keshub Mahindra of Mahindra and Mahindra, and HDFC's Deepak Parekh had expressed concern over graft scandals leading to "governance deficit".


Although the government has attempted to counter criticism by pushing some decisions and project clearances, the perception has become sticky with bureaucrats and officials deferring decision-making.


The home ministry recently opted for a pre-CAG audit of a housing project that is to be implemented in public-private partnership mode, reflecting the sentiment in the bureaucracy after the 2G-airwave scam broke.


To counter the perception of policy paralysis, Finance Minister Pranab Mukherjee, the key trouble shooter of the ruling UPA government, had called a meeting with key industrialists in August.


Again, last month, Mukherjee reeled out details of the decisions taken by the government at the annual economic editors conference.


However, Basu said the situation was better than that in many countries.


"It's not really as bad as that in many countries. We still remain in the top 10-15 performers in the world. So we are still at the top, but going down," he said.
http://economictimes.indiatimes.com/news/economy/policy/scams-and-subsequent-witch-hunts-have-hit-decision-making-kaushik-basu/articleshow/10699041.cms

10 APR, 2011, 11.10AM IST, SWAMINATHAN S ANKLESARIA AIYAR,TNN

Poor states reap big demographic dividend


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Poor states reap big demographic dividend Many have celebrated the census' revelation that India's population increased only 17.64% in the last decade, down from 21.54% the previous decade. Yet, the best news relates to kids aged 0-6 . Their numbers have actually fallen 3.08%.


Fewer children translate into a demographic dividend that will send per capita income booming in the coming decades. The biggest dividend came in Uttar Pradesh, where the share of the 0-6 age group in the population declined 4.1%. Substantial decreases were recorded in Rajasthan (3.5%), Madhya Pradesh (3.4%), Chhattisgarh (3.1%), and Bihar (2.3%).


What exactly is a demographic dividend? When economic development causes mortality to fall, parents have fewer children. Fewer children means the proportion of workers rises , and of dependents (children and old folk) falls. This raises income per head.


Second, countries can divert funds from spending on children to investing in physical capital, job training, and technological progress . Third, declining fertility means more women can join the workforce, reducing the proportion of dependents further. Fourth, the working years 15-64 are prime years for savings , so more workers means more savings, which then fund more investment.


An IMF working paper by Shekhar Aiyar and Ashoka Mody (The Demographic Dividend : Evidence from the Indian States) suggests that up to 40% of higher GDP since the 1980s may be due to the demographic dividend, rather than economic reform or other factors. It calculates that this dividend boosted GDP growth by 1.46% in the 1980s, one reason for the sharp acceleration in that decade although economic reforms were hesitant and very modest. The dividend was 1.34% in the 1990s. The paper predicts it will rise to 1.74% in the 2000s. Record GDP growth and preliminary census data suggest that the prediction may be vindicated. The authors estimate that the dividend will boost all-India growth 1.98% in the 2010s and 2.04% in the 2020s, before tapering off in the 2030s. Incomes per head will tend to rise faster in the poor states.


Most economists say an additional workforce is useless if it is not educated and skilled. Surprisingly, Aiyar and Mody find that government social spending is not statistically significant , while development spending is. Perhaps this is because private education and corporate training programmes are significantly improving skills, something not captured by the researchers.


The authors say the ratio of people of working age 15-60 rose sharply from 53.7% in 1961 to 62.1% in 2001 in three leading states -- Tamil Nadu , Karnataka and Gujarat. But in three lagging states -- UP, Bihar, Madhya Pradesh - the ratio hardly moved, from 53.1% to 53.4%. That's an important but rarely noticed reason why the leading states accelerated in GDP while the laggards did not. However, falling numbers of children in the laggard states (in north and central India) now mean that they are about to reap the demographic dividend already reaped by southern and western states. This should help reduce regional inequalities.


Last week i wrote, quite incorrectly, that New Delhi's social spending had risen from 1.28% of GDP in 1992-93 to 7.27% of GDP in 2008-09 . In fact, the latter figure includes spending by the states, and on not just education and health but other welfare services. This combined figure rose from 5.59% of GDP to 7.27% between 2005-06 and 2008-09 . Some critics say the government's education spending barely kept pace with GDP over the last two decades. Since GDP itself grew at a record rate in those decades, education spending must have followed suit.


Forget government spending, says Parth Shah of the Centre for Civil Society, the big change has been an explosion in private education spending. Economic reform has increased incomes, so even poor people can afford to switch their children from terrible government schools and colleges to somewhat better private ones.Indicus Analytics, a research firm, estimates that private spending on education , tuition, books, newspapers and journals was 1.2% of GDP in 2009-10 . This could be an important reason why literacy rose in the last decade, notably in Bihar (up 16.82 percentage points), UP (11.45 points), Jharkhand (16.07 points) and Orissa (10.37 points).


Moreover, poor states in the last decade hired huge numbers of teachers and parateachers on contract. Bihar alone hired two lakh contract teachers. They were paid onefifth or less than regular teachers, yet researcher Karthik Muralidharan found they improved learning outcomes, boosting the educational bang per fiscal buck.


The demographic dividend will steadily reduce the number of schoolchildren in the next three decades, easing the teacher shortage and reducing class sizes. But that's no excuse for avoiding radical reforms to improve teacher accountability and performance in government schools.


(Disclosure: Shekhar Aiyar is my son)

More stories from this edition of Census of India 2011


http://economictimes.indiatimes.com/opinion/columnists/swaminathansaaiyar/Poor-states-reap-big-demographic-dividend/articleshow/7932119.cms

12 NOV, 2011, 08.17AM IST, ET BUREAU

Draft Real Estate regulation bill to bring in transparency in land selling


NEW DELHI: Builders will have to register themselves before launching housing projects, stick to the approved plans and refund money to homebuyers in case they default, after the government brings in a new law aimed at bringing in more accountability and transparency in land and home transactions.


The Real Estate (Regulation and Development) Bill, 2011, which is expected to be tabled in Parliament during the upcoming winter session, will also pave the way for the setting up of the Real Estate Regulatory Authority, an industry watchdog that will keep a lease on land sharks and fly-by-night operators. Union minister for housing and urban poverty alleviation,Kumari Selja, on Friday unveiled a new draft bill for public consultation.


The draft has also recommended that builders set up a separate escrow account to compulsorily deposit 70% of the funds received from buyers and to ensure that these funds are used for that real estate project only. An earlier draft had proposed that the developers would submit bank guarantees.


The draft has also said that the promoters will be obliged to stick to the approved plans and project specifications and provide all information to the buyers who have booked apartments, which includes site plans along with structural designs and specifications.


The builders, who intend to sell any immovable property, will have to register with the Real Estate Regulatory Authority for accreditation, except for when the area of the land being developed does not exceed 4,000 sq mt.


But the developer will have to make an application to the authority disclosing details about the project, including land status, approvals and contractual obligations for the registration process. No builder will be allowed to issue or publish an advertisement or prospectus or start booking of flats in a project without obtaining registration from the authority.


The builders will also have to refund moneys in cases of default. "If the developer willfully fails to comply with the norms they shall be punishable with imprisonment for a term of up to three years or a penalty which may extend to a tenth of the estimated cost of the real estate project, or both," the bill says.


Builders have been up in arms against the imprisonment clause and have said it can be misused and heavy financial penalty is more than enough.


"The bill aims at restoring confidence of the general public in the real estate sector and ensure transparency, disclosure and accountability in the real estate sector," said Selja. She said that the bill proposes to strike a balance between encouraging regulated growth and development as well bringing in more accountability in the sector.


The draft has proposed the formation of a nodal agency called the Real Estate Regulatory Authority in each state to co-ordinate efforts regarding development of the real estate sector and offer necessary advice to the state governments and centre for a "transparent, efficient and competitive real estate sector." The authority will also establish dispute resolution mechanisms for settling disputes between developers and buyers.


Getamber Anand, vice president of CREDAI - a builders' association -and managing director of ATS Group said, "This could lead to unauthorised developments in plots of less than acres especially in the smaller cities and town where unauthorised colonies are built on smaller plots."


The draft has recommended that the buyer will also be obliged to make necessary payments and other charges as agreed to under the agreement and payment of interest in case of any delay.
http://economictimes.indiatimes.com/markets/real-estate/policy-/Draft-Real-Estate-regulation-bill-to-bring-in-transparency-in-land-selling/articleshow/10700405.cms

17 SEP, 2011, 06.02AM IST, TNN

Land Acquisition Bill: Will new land law hurt realty sector?

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The new land policy cleared by Union Cabinet could lead to a big gap between demand and supply. Paying compensation four times the highest amount of registered sale in the area in last three years is only going to increase the cost of setting up the industrial establishments, infrastructural projects and townships, believe real estate firms.

If the bill is passed in its proposed form, it will badly hurt the realty sector and urban development, apart from, practically, ending the dreams of affordable housing for the middle class segment.


The new bill, meant to replace the 117-year-old Land Acquisition Bill of 1894, which has been introduced in Parliament, will mean private companies will have to give relief and rehabilitation packages to displaced people even if they directly buy land from landowners, for all transactions over 50 acres in urban areas and 100 acres in rural areas.


There is still confusion and dissatisfaction over acceptance of new land bill by real estate firms. The Confederation of Indian Industry (CII) has already expressed concern over the appreciation value set in the Land Acquisition Bill and said that the proposed value would make land cost economically unviable for industries.


Navin M Raheja, the chairman and managing director of the Raheja Group and chairman of Assocham , says: "Acquisition of land with consent of landowners is a welcome step. But paying compensation four times the best of the registered sale in the area in last three years is only going to increase the cost of setting up the industrial establishments, infrastructural projects and townships. This could also lead to a big gap between demand and supply. There must be an open debate of all the stakeholders like the industry , the government, the landowners and also the media to device a path which is transparent and pragmatic."


"States should be required to put up land for development on e-portals (land offers for development projects) through a website or any other mechanism accessible by everyone, where the landowners can collectively offer their land for sale with the price demanded, so that the industry and the government are free to negotiate with farmers," Raheja said.


Pankaj Bajaj, the president of CREDAI (NCR) opposed the proposed relief and rehabilitation package, and said: "The new bill will badly hurt the realty sector and urban development, apart from practically ending the dreams of affordable housing for middle-class segments, as provision of the Land Acquisition Bill make homes for the common man much more costly. Relief and rehabilitation package for private companies should be done away with. Acquiring private pockets in a housing project should be defined as public purposes."


Rakesh Yadav, the managing director of the Antriksh Group, says: "Apart from real estate firms, the cost of production of industrial units will also go up due to high capital cost of setting up factories. The financing of these activities will be tough, too, as there are no norms for financing the land cost."


Mohit Arora, the director of Supertech Group, says: "In most cities like the metros, Tier 2 & 3 cities, government-acquired land for infrastructure and industrial development, the burden and cost of social and industrial development will be considerably enhanced through this bill. As a result , the infrastructure and industrial development will become slow and expensive."


Prasant Solomon, joint managing director of Chintels India Ltd (which has the largest land bank of 400 acres in Dwarka-Gurgaon Expressway), says: "This policy will also adversely affect the real estate development as additional burden of land cost will make housing expensive. In fact, land in the open market too would become expensive."


Impact of new bill


As far as the farmers are concerned , it is the best time for them to encash upon this opportunity, especially in the NCR's Noida-Greater Noida, Gurgaon, and Faridabad areas. Having gained great visibility after the current land row, the farmers of Noida and Greater Noida are trying to encash in upon the government's pro-farmer mood and obtain the best possible compensation for their lands, which have been acquired by the authorities concerned .

http://economictimes.indiatimes.com/markets/real-estate/policy-/land-acquisition-bill-will-new-land-law-hurt-realty-sector/articleshow/10014391.cms

12 NOV, 2011, 07.08AM IST, DEEPSHIKHA SIKARWAR,ET BUREAU

Patna to have its own Marine Drive, only much longer than the original


NEW DELHI: Patna could soon get its own version of London's famed Thames Path or Mumbai's Marine Drive: a long, pleasant walk or drive on along the banks of the river Ganga.


At 40 km, Patna's Ganga driveway will be shorter than the Thames Path, which is 64 km long, but vastly longer than Marine Drive, which stretches a mere 3 km along the shore of the Arabian Sea.


The finance ministry and Planning Commission have cleared the project, which will cost 2,400 crore. Land for the project has come at little cost: the Ganga has altered its course leaving spare land in its wake.


"The project has been conceived well and can change the transport situation there," said a finance ministry official confirming the approval to the project.


The finance ministry will have to cough up about 600 crore as viability gap funding for the project.


Part of the road, about 7 km in length, will run on an elevated platform. It could be a game changer for Bihar's capital city, which has only one viaduct over the river Ganga that is heavily congested.


Along its length, it will have pleasant boulevards and jetties for boats to berth. Planners believe this will improve not just physical infrastructure, but also the aesthetics of the city.


In the first phase, the Ganga driveway will connect Digha to Didarganj, a stretch of 21 km, and the second phase will go all the way to Fatua, a distance of 18 km.


The project was conceived by Bihar Chief Minister Nitish Kumar as part of the vision 2021 document for the state and is expected to get environmental clearances soon.


Initial feasibility studies have given a thumbs-up to the project, said Bihar Road Construction Department Secretary Pratya Amrit.


"We have received positive feedback on the project, (and) 90% of the land is already with the government to ensure fast implementation," Amrit told ET. A large part of the structure is proposed to be built on reclaimed land already in government possession for which revenue records have been verified.


The law says land emerging as a result of a change in a river's course belongs to the state.


The state government has already held pre-bid conferences with investors and is confident of the private sector's response. The project is to be implemented in public-partnership mode on build-operate-transfer basis.


"The private sector's response to the project has been overwhelming. We will invite RFQs by November-end," Amrit said.


The project, if bid out successfully, would be another in a series of successes the state has had in attracting investments in road projects.


In July, the state received nod for its first toll project in the road sector. The 1,602-crore project to build a 5.5-km bridge over Ganga, connecting Bakhtiyarpur with Shahpur, along with a four-lane 45.5-km approach road has already achieved financial closure.


The second is a 917-crore project to widen the two-lane road between Ara and Mohania to make it a four-lane road.


The state witnessed a growth of 8.8% in the length of roads between 2003 and 2008, almost double the national average of 4.4%. It has constructed 23,606 km of roads since 2006-07, apart from augmenting and repairing 1,657 km of national highways.
http://economictimes.indiatimes.com/news/news-by-industry/et-cetera/Patna-to-have-its-own-Marine-Drive-only-much-longer-than-the-original/articleshow/10699655.cms

11 NOV, 2011, 08.19AM IST, NEHA DEWAN,ET BUREAU

Latest fad of richie rich; wedding planners book entire islands for top clients

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NEW DELHI: They say marriages are made in heaven. Well, the worldly rich are getting pretty close - exchanging nuptial vows in heavenly islands entirely theirs.

Forget luxury hotels, cruise ships, even Niagara Falls; the new craze among those who want a larger-than-life wedding is booking an entire island in locales such as Maldives, Fiji, Hawaii and Lakshadweep.

"The exclusivity is unmatched," says Sangeeta Assomull, CEO of Marigold Group, which distributes brands such as luxury handbag maker Judith Leiber in India. She recently attended a wedding in Mykonos Island in Greece. "It almost felt like being in another world." Clearly, it's not just the worldwide rush to get married on 11.11.11 that is keeping the $10-billion wedding industry extremely busy this season.

Wedding planners such as Meher Sarid of Delhi are also island hunting for their high-profile clientele in a trend that may help the wedding market keep up its 10-15% growth rate despite the global economic slowdown.

This is an extravaganza that promises it all - from flying in acrobats, international circus artists, percussionists and chefs to arranging private charters and private boat services for guests. "The exclusivity and fairytale charm of doing it first makes clients love this new option," says Anuj Bidani, founder of Space Hospitality.

Beach weddings best

Space Hospitality facilitates such mega weddings in exotic locations such as Yasawa Island Resort and Spain Fiji. Neeta Raheja, a Delhi-based wedding planner who recently did a recce in Bintan islands near Singapore, says, "The feeling of having an island completely to you is very romantic.


Beach weddings are the best in terms of ambience too." At least two Delhi-based business families are currently planning to book an island in Fiji for their weddings, one coming up towards the end of November and the other in February.


Clearly, the pomp and show associated with glamorous Indian weddings is playing a part in driving up the demand. "An island wedding should ideally at least be a week-long affair," says Bidani of Space Hospitality. With 18 villas, the Yasawa island resort can house roughly 80-100 people, with accommodation costs starting at Rs45,000 a night.
http://economictimes.indiatimes.com/news/news-by-industry/et-cetera/latest-fad-of-richie-rich-wedding-planners-book-entire-islands-for-top-clients/articleshow/10684939.cms

9 NOV, 2011, 09.09AM IST, TNN

Yamuna Expressway: From December, zoom to Agra at 100kmph

Jaypee Infratech Ltd.

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NOIDA: Commuters on the much awaited 165kmYamuna Expressway between Greater Noida andAgra will be able to zoom at 100 kmph when it is thrown open to the public by the end of December. The speed limit of 100kmph for light motor vehicles and 60 kmph for heavy vehicles has been fixed after due consultation with the Uttar Pradesh government, Yamuna Expressway Industrial Development Authority and Jaypee Infratech officials in accordance with the norms set by the union ministry for roads & highways.

To ensure safety of the road users, the expressway will have certain restrictions and conditions for use by motor vehicles. According to sources, a few categories of and slow moving vehicles like pushcarts and bullock carts are likely to be barred from using the expressway. Overtaking and parking on the e-way will also be strictly prohibited. Vehicles will be allowed to park in case of a breakdown, but only on a marked parking site along the shoulder of the expressway.

"The speed limit and restrictions will come into force once the Yamuna Expressway opens to the public," said a Jaypee Infratech spokesperson. He added that drivers will have to follow the signboards installed on the expressway with regard to the speed limits, curves, gaps and other safety aspects.

The Jaypee official said that 99 per cent of the work is complete and construction of two toll plazas and cloverleaves was under progress. "Currently, toll plazas are being set up at the two interchanges that are under construction. Once the work is complete, trial runs will be conducted along the expressway to take care of any shortcomings," added the official. As it is a toll road, the charges to be levied from motorists will be announced shortly.

To be opened two years ahead of schedule, it has been projected that the Rs 11,000 crore access-controlled and elevated Yamuna Expressway corridor would daily benefit an estimated 1.2 lakh commuters heading towards Agra and beyond. The six-lane toll road between Greater Noida and Agra will provide commuters seamless connectivity along a six-lane main carriageway and a single-lane shoulder road, besides the option for extending the expressway by another lane in the future. The expressway is completely concretized and has been designed for speeds up to 120kmph. Commuters using the expressway would be able to cover the distance between the two cities in a mere 90 minutes, compared to the present 2.5-3 hours.

The expressway will have six interchanges along its path located at 10km, 36km, 48km, 110km, 153km and finally the last one exiting at Agra at 165km. Ramps will be provided for exiting at 7km, 11km and 15km, respectively along the expressway. To provide connectivity to the areas along the expressway, 70 underpasses for vehicles, 76 underpasses for pedestrians and cart track crossing and 41 bridges will also be available for use.

"CCTV cameras will be fixed at an interval of every 5km along the expressway for safety. Moreover, mobile radars to monitor speeding will be put to use and there will be one highway patrol for every 25km, besides exclusive fire brigades," said an official. He added that emergency services like towing, ambulances, petrol sheds, rest-houses and food court services will be available along the expressway at regular intervals.
http://economictimes.indiatimes.com/news/economy/infrastructure/yamuna-expressway-from-december-zoom-to-agra-at-100kmph/articleshow/10663410.cms
0 MAY, 2011, 04.42PM IST, PTI

Industry Ministry seeks Rs 18,500 crore to develop 7 cities around Delhi-Mumbai industrial corridor

NEW DELHI: Industry Ministry has sought Rs 18,500 crore to develop seven cities around the Delhi-Mumbai Industrial Corridor (DMIC), that will criss-cross six states.

The USD 90-billion DMIC project, planned in 2006 comprising -- Uttar Pradesh, Haryana, Rajasthan, Gujarat, Maharashtra and Madhya Pradesh -- is being developed in collaboration with Japan as a manufacturing and trading hub.

The cities would come up along Delhi-Mumbai Dedicated Rail Freight Corridor which is under implementation.

The Department of Industrial Policy and Promotion(DIPP) has obtained views of most of the the concerned ministries

"Soon we will prepare the Cabinet note seeking funds " a source said.

Out of the total amount, Rs 17,500 crore would be used to create infrastructure like internal roads, solid waste disposal, flood management, storm water and sewerage system, bus and rail-based public transportation system and landscaping.

For preliminary work of the project (as a Project Development Fund), DIPP has sought Rs 1,000 crore.

New cities and sub-cities will be developed around the industrial nodes of Kushkhera-Bhiwadi-Neemrana in Rajasthan, Dadri-Noida- Ghaziabad in Uttar Pradesh, Bharuch-Dahej in Gujarat, Igatpuri-Nashik-Sinnar in Maharashtra and Pitampura-Dhar-Mhow in Madhya Pradesh.

Later, 17 more cities are planned to be developed on a similar pattern.

The money from the Centre would be both in the form of debt and equity which would be ploughed into the Delhi Mumbai Industrial Corridor Development Corporation Limited (DMICDC), which is a joint venture between the government, IL&FS and IDFC.

"This investment is necessary to create basic infrastructure so that industrial and trading activities can come up," the source said.

This money has to be put in by the government even before public-private-partnership (PPP) business model can be developed, the source added.

About Rs 2,500 crore would be spent on each city to develop basic infrastructure.

9 NOV, 2011, 02.56PM IST, SHRUTI SABHARWAL & JAYADEVAN PK,ET BUREAU

Walmart to start innovation lab in India; likely to woo talent from Amazon, Google and Yahoo

EDITORS PICK



BANGALORE: The world's largest retailer Walmart which is playing catchup with online retailer Amazon in trying to improve how its customers buy on the Internet, will start its innovation lab in India to drive its next generation of innovations that impact shopping behavior.

The $ 422 bn company, has already started hiring for this in India and the 100-person lab will be up and running the end of this year, a top company executive told ET on Wednesday.

Walmart labs which employs about 70- 80 people inUnited States will be located in Bangalore and is likely to woo talent from companies like Amazon, Google andYahoo which have large presence in Bangalore.

"It is not very big, we belive in talent density rather than talent volume. We don't need too many people but we need very very talented people. Our goal is to get a 100 people but the really top talented people," said Anand Rajaraman, senior vice-president, global e-commerce, Walmart.

"There are two fundamentally huge, disruptive changes that are happening. Smart phones and social media and those are the two areas we are addressing. The India team will be significant part of the team, the Walmart Labs mission is global and India team will developed for the this global market. The India team should have ownership of some really key pieces of the technology we are developing," he added. Rajaraman said that the India head has been appointed but did not share details.

The company started Walmart labs only a few months back after it acquired Rajaraman's earlier company Kosmix. Walmart labs will focuses on intersection of social, mobile and retail.
http://economictimes.indiatimes.com/news/news-by-industry/services/retailing/walmart-to-start-innovation-lab-in-india-likely-to-woo-talent-from-amazon-google-and-yahoo/articleshow/10665308.cms

9 NOV, 2011, 02.25AM IST, WRITANKAR MUKHERJEE & SREERADHA D BASU,ET BUREAU

Shoppers Stop, Landmark, Spencer's extend loyalty schemes to retain customers

ICICI Bank Ltd.

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KOLKATA: With another slowdown staring hard at the economy, retail chains are tying up with non-competing retailers and service providers to make their customer royalty programmes more appealing.


Retailers such as Shoppers Stop, Landmark Group,Future Group and Spencer's Retail are pursuing strategic initiatives around their shopper loyalty programmes to enable customers to redeem their points across a wide spectrum. So, a customer can soon redeem her Future Group royalty points to book an Air India ticket or fill fuel from an HPCL pump.


A Spencer's Retail loyalty cardholder may soon be able to use it for a coffee at Cafe Coffee Day. "It's all about earning and burning," says India's largest retailer Future Group CEO Kishore Biyani. "Consumers like to collect points and spend them where they want," he says.


The group, which owns Pantaloon lifestyle chains andBig Bazaar hypermarkets among others, has just launched a new loyalty scheme in association with Germany's Payback, a multi-partner loyalty programme. The deal will let Future Group's loyal consumers redeem their points at Payback clients in India such as ICICI Bank, Air India and HPCL, besides all formats of the group.


Till recently, the group's loyalty programme was limited to the lifestyle format, Pantaloons, where loyalty cardholders contribute up to 60% of total sales. Biyani expects to reach ten million consumers through this programme within a year.


Spencer's Retail, which operates more than 220 stores, is planning to enter into alliance with non-competing retailers to share shopping points and discounts for its year-old loyalty programme. It is in talks with the country's largest coffee chain Cafe Coffee Day and florist chain Ferns N Petals, and wants to include multiplexes, bookstores, cake shops, saloons and spas in this initiative.


"Retaining customers with rewards is more cost-efficient than acquiring new customers," says Spencer's Retail Executive Director (Marketing and Business Development) Sanjay Gupta. Spencer's has already enrolled 5.5 lakh members for its loyalty programme.
http://economictimes.indiatimes.com/news/news-by-industry/services/retailing/shoppers-stop-landmark-spencers-extend-loyalty-schemes-to-retain-customers/articleshow/10660647.cms

-- AMBEDKARIAN PERSPECTIVE FOR ECONOMIC DEVELOPMENT
1
Dr. K.S.INGOLE, Reader, Centre for Dr. Ambedkar Studies, Dept. of Economic 
PGSR, SNDT Women University Mumbai 400020
Introduction:
  
India‟s economic growth rate is running very fast most of the macro indicators look 
positive. Such as  (GDP) Gross Domestic Product is approaching to 10 percent, Foreign 
Direct Investment (FDI) is increased a record high, capital market is also moving to 
upward direction. Real estate demand for flats and land shows growing fast at high rate. 
Demand for car is also increasing from rich class. All this shows that people‟s purchasing 
power have been increased.  But this only half side story the other side shows us that, 26 
percent people are living below the poverty line and near about 50 percent people are just 
struggling to survive on poverty line. Therefore, it is clear that only 24 percent people are 
sharing the national economic growth. Depressed classes SC, ST and OBC and 
Minorities have strong feelings that they are being excluded from the process of 
economic growth and they are denied their share in national income. So they oppose New 
Economic Policy at large extent. Since the beginning of NEP 1991 Government of India, 
continuously reducing its share from the public sector  industries. It creates number of  
issues related to the life of depressed classes as the issues of unemployment and 
uncertainty. It was told that government will increase the expenditure on social over 
heads particularly education and health. However, government data shows that this is not 
happening. On the  contrary government expenditure on social over head is  grossly 
inadequate to the needs. Therefore, it creates income and wealth inequality, unethical 
activities, demoralizing the youths, violation etc.  This is surely not good for long term 
smooth economic development of any country. We believe that Dr. Babasaheb 
Ambedkar‟s economic philosophy focuses on the golden path of development. His 
philosophy maintains that balance in both the sectors public and private  systematically. 
                                                
1
Paper presented at a National Seminar on the theme: Social Justice : Gandhi, Nehru and Ambedkar, 
Organized by the National P.G. College,2, Rana Pratap Marg, Lucknow 226 001 u. p. December 17
th
and 
18
th
2006.Therefore, this is the need of the time to study and understand Dr. Babasaheb 
Ambedkar‟s economic philosophy for the better future of India.
State's Role in Democratic Society: 
Ambedkar believed that, State  can  play important role in economic development of 
people. His book "States and Minorities", this was as much an economic manifesto as a 
social one. It proposed a united Sates of  India without right of secession. It called for 
separate electorates, separate village settlements  and strong measures against social 
boycott  of  untouchable and put forth a program for what Ambedkar called „State 
Socialism‟, the nationalization of basic industries, and the nationalization of land and its 
organization in collectives
2
. Therefore, under the States Socialism following principles 
will be followed.
a) Active role of state in the planning of economic life of people
b) Emphasis on increase the productivity and production by providing physical 
capital and Human capital
c) Freedom to private sector to plan and manage their industries and trade except in 
selected areas
d) Equitable distribution of National  wealth and income among all sections of 
society irrespective of castes, creed, gender, region and religions.
India being inequitably graded society Dr. Ambedkar recognized the need for a three fold 
strategy: 
a) Provision of equal rights (overturning the customary framework of caste system 
based on principle of equality and denial of equal rights, particularly, to 
untouchables).
b) Provision of legal safeguards against the violation of these rights in terms of 
laws.,
c) Pro-active measures against discrimination for fair share and  participation in 
legislature, executive, public services, education and other public spheres for 
discriminated groups (in the form of reservation)
                                                
2
Gail Omvedt, Ambedkar towards an enlightened India, penguin Viking, New Delhi, 2004,p 116.In his views, the real solution lies in removing the structural inequalities caused by past 
exclusion and isolation in more fundamental ways and put forward the policy of 
structural equalization
3
. It was necessary because of Hindu Social Order which is 
responsible for unequal distribution of National Wealth in India. Accordingly shudras 
were not allowed to acquire any sort of property such as land, fixed capital assets or a 
gainful trade. Therefore, to restructure the Indian society based on Liberty, Equality, 
Justice and Fraternity Dr. Ambedkar suggested some of the very important measures; one 
of them is Nationalization of land. In his important book "States and Minorities" he has 
given a complete plan. How to  implement his plan in modern time and what are the 
advantages. ? Let us discuss in brief. The first thesis of Dr. Babasaheb Ambedkar on 
agriculture problem namely  "Small Holdings and Their Remedies"(1918) he rightly 
points out that the low productivity and production of agriculture sector was due to lack 
of inadequate inputs available to producers and non availability of alternative jobs to 
laborers there is a high presser of excesses labor force on agriculture sector. Therefore he 
has suggested  increasing the industrial base to absorb these surplus labors. He also 
demands the abolition of Khoti land holding system to protect the tenant from Khots 
suppression and exploitation in 1937.   However, Dr Ambedkar knew that such measures 
will not solve the root cause of sorrow of landless labors and small and marginal farmers. 
So, in 1946 he demands collective methods of cultivation.  There are number of 
advantages of collective farming for our understanding we can classify these in two part 
as follows. 
Economic advantages 
a) Total production and productivity will increase due to plan production and 
available of inputs such as fertilizers, capital, equipments and skill workers, and 
those who will work in agriculture sector will get all benefits as other workers in 
industrial sector. 
b) Maximum utilization of available land 
c) Irrigation facilities to all farmers 
d) Use of modern technology at a large extent.
                                                
3
Sukhdeo Thorat, Reservation in private sector , Rawat Publication, New Delhi, P 19, 2005.Social advantages
a) Social harmony will prevail, scheduled castes and scheduled tribes and other land 
less workers will not be exploited by land lords. 
b) Justice and equity will remain maintained in rural India.
c) Mobility of surplus labor force from agriculture to industry sector will increase at 
large extent. 
d) Income inequalities and social conflicts will reduce.
These are some of the important advantages of nationalization of land in India. 
Therefore, this is the issue that Ambedkarin thinkers should have to take at fore front 
at their movements. If the policy makers of this country would have accepted the 
demand of Dr. Ambedkar well in advance to nationalize the agriculture and 
reorganized the agriculture sector then such recent suicide of farmers in Maharastra 
would not have been incurred. 
The another important source of capital assets accumulation is industries, therefore 
Dr. Ambedkar suggested that key industries should nationalize. This was reflected in 
the industrial policy of India, as per the industrial resolution of 1956 major industries 
were nationalized. However, since the beginnings of new economic policy in 1991, 
government of India is gradually reducing its share from these industries and 
transferring these industries to the private sector. The results of such unethical 
transfers are multiple and most of these results are affected adversely on the life of 
depressed classes particularly, in respect of employment. These industries are now 
restructuring the pattern of production to increase the level of profit. To earn the 
profits is not a crime itself but if it is earned by reducing the employment then it 
becomes serious concern to Dalits as they have no other alternative source of 
livelihood. Economic times of India recently published a report of one of the expert 
committee on the share of employee‟s in the total production. According their report 
the share of labors in total industrial product in 1990-91 was 11 per cent and in 2000-
01 the labors share reduced to 5.6 per cent .it indicate that though the industrial 
production is increasing but the labors share is decreasing.Government Expenditure on Education and Health 
Education  play very important role in the processes of development. Dr Ambedkar 
considered education as most powerful agent for bringing about desired changes  in 
society and a it is a prerequisite for organized effort for launching any social 
movement in the modern times. For him education was an instrument to liberate the 
masses from illiteracy, ignorance and superstitious and thus enable them to fight 
against all form of injustice, exploitation and oppression. Therefore, he gave the 
highest priority to education in his struggle for the liberation of dalits from the age 
old oppressive character of the caste ridden Indian society. Being the main architect 
of the Indian Constitution Dr Ambedkar impose the responsibility of providing 
education to all citizens irrespective of caste and gender  on government. The Fathers 
of the Constitution of India decided that education should be available free of charge 
and that attendance in schools should be compulsory for all children up to the age of 
14 years as incorporated in Article 45 of the Directive Principles of State policy. This 
provision in Article 45 of the Directive principles of State policy reinforces Article 24 
which reads "no child below the age of 14 years shall be employed to work in any 
factory mine or engaged in any hazardous employment. The Constitution also directs 
that children cannot be abused or forced to work and to enter avocations unsuited to 
their age or strength" through article 39(e) and (f).
Keeping in mind the need to combat the educational and economic disadvantage of 
scheduled castes and scheduled tribes along with other disadvantaged sections of 
society in the past, special emphasis was given to their needs in article 46. This article 
makes a commitment to protect these groups from social injustice and all forms of 
exploitation. All the above provision indicates a clear commitment to  giving Indian
children in this freedom and dignity and recognizing their  essential contribution to 
building a democratic nation.
4
However, the proportion of public outlays that goes to 
finance the education sector is indicative of relative importance assigned to that 
sector. While these figures are indicative of the relative lack of public commitment to 
developing the education system, education is being increasingly looked on as a 
                                                
4
Shantha Sinha, Emphasising Universal principles towards Deepening of Democracy Actualizing 
children‟s right to Education, EPW June 18, 2005 p 2569-2575. VOLIXLNO25  „market‟ for major national and multi-national corporations. Where, immense profits 
are to be made instead of public service
5
. Social  investments are required for 
sustained economic growth. In China public spending on education is 2.3 percent of 
GDP while that on health is 2.1 percent GDP. The outcomes for human development 
are clear. Literacy stands at 84 percent, infant mortality rate at 32 per 1000 live births 
and under five mortality rates at 40 per 1000 live births. 
India, in contrast, has traditionally had lower spending levels. Health spending stands 
at 1.3 percent of  GDP (Central and States Governments combined).  Spending on 
education has increased significantly, from 0.8 percent of GDP in 1950 to 3.2 percent 
in 2003, though it still falls short of the government target of 6 percent of GDP. 
Human development indicators for India remain much lower than for China. Literacy 
stands at 65 percent, infant mortality at 68 per 1000 live birth, and under five 
mortality rates at 96 per 1000 live births
6
.  Dr Ambedkar vehemently critics the 
British Government fiscal policy for impoverished India through irrational taxation 
methods, through a land tax that prevented agricultural prosperity and heavy customs 
at internal excise duties that injured its industry. It was clear, he argued, that the 
British government was running India  in the interest of British manufacturers.
Similarly, he criticized the British government„s expenditure policy because most of 
the expenditure was on defence, administration and other non- development work and 
grossly neglect social sector particularly education and health.
After independence it was told by the authorities at that time that Indian Government 
will spend more money eradication poverty, education to all and health facilities at 
low cost or free to the poor, employment generation and number of other promises 
                                                
5
T Ravikumar, vijender sharma, Downsizing higher education an emerging crisis, EPW, Februray15, 2003 
Vol xxxviii no7 
6
Human Development Report 2003, oxford university press, New Delhi ,published for the united nations 
development program (UNDP)were given to Indian people.  Therefore let us see the educational condition of 
scheduled castes and scheduled tribes in India. 
Educational Conditions SC/ST 
Basic education continues to remain a privilege enjoyed by some and there is 
tremendous variation among the social groups. Universal primary schooling is still a 
distant goal, particularly for females amongst the socially disadvantaged groups, ie 
the scheduled castes and scheduled tribes and other backward castes and Muslim in 
remote rural areas and urban slums. As per the report of ministry of HRD government 
of India 1998-99 the literacy level among the SC females was 23.76 and foe ST 
females it was 19.18 and for others 44.81 percent and male literacy rate was 49.91 for 
SC and 40.65 for ST and 69.53 for others. It shows the literacy disparity and urgency 
to take steps to spread the education among the SC/ST. further if we observed the 
rural areas literacy rate then the condition is worst. Literacy rate   among the sc 
females in rural areas shows that 19.46 percent and for st 16.02 and for other 35.38. 
With such a vast illiteracy how can we compete with the global economy and what 
will be the position of dalits . Therefore, a firm commitment to the widespread and 
equitable provision of basic education is the first requirement of rapid progress in 
eradicating educational deprivation in India.  Low levels of education in India reflect 
both the low duration of schooling for children who are enrolled at some stage and a 
large proportion of children are never enrolled at all
7
. This is not the only story of 
India, but the scared resources are also spent disproportionately as more on higher 
education and less on primary  education. The result of such spending is that , those 
who are already educated they get more benefits of government‟s  expenditure policy 
on education and those who are disadvantaged people they are affected adversely. So, 
it is clear that, relatively well to do class get better advantages of  government‟s 
expenditure policy on education than disadvantaged classes.
                                                
7
Jean Dre‟ze , Amartya Sen, India Economic Development and Social opportunity, Oxford University 
Press, 1995, Delhi, p. 111.Similar position is for health expenditure of government of India last year‟s budgetary 
provision for health services was 0.95 percent  of union budget. Therefore, public 
hospitals do not have adequate medicine in the hospital and poor people are dying 
without basic health facilities. Why this is happening in India after 60 years of 
independence. 
Remedial measures:
If we think deeply we get sources of pitiable conditions of depressed classes in 
modern India.  India experienced many political changes after independence. 
However, the basic organization and structure of the society has not change. Different 
political parties have formed their government at Centre and States levels such as 
Congress, BJP, Janata Dal, Communist etc but the ruling class remained the same 
from the upper strata of the society ie Brahmins, Baniyas, land Lords and capitalists. 
They are utilizing  the political power, administrative powers and judicial powers to 
build up their economic strength and to increase their welfare by adopting policies to 
their favor and to maintain the status as it was in the feudal time.Therefore, most of 
their organizations such as RSS, Bajarang Dal, Shiv Sena etc. they are creating the 
illusions among the Bahujan Samaj on the name of religion, castes , regions and rule 
the masses without interruption . I do not blame  them; they are doing it for their 
people‟s welfare and to maintain their supreme power over depressed  classes. The 
question before me is what depressed classes should do. This is the important 
question before us. I think we have to divide our objective in two parts, the first part 
deals with short term objectives and second part deals with long term objectives. 
Short Terms Objectives: 
a) Welfare policies of government: we have to see that welfare policies of
government should be implemented timely and properly. These include education 
policy, health and family welfare policies.
b) Infrastructure facilities: we have to observe that government spent on 
infrastructure such as sanitation facilities, roads, electricity, safety for life, it help 
indirectly to poor to boosts their energy.
c) Allocation of funds: we have to see that allocated funds are not diverted to ulterior 
motive by the vested interest people. d) Monitoring the scheme : government should appoint a permanent monitoring 
body to see that there is no mismanagement , or Dalits among them selves should 
creates an organization to monitor the scheme. These monitors will organize 
regular awareness programs among the marginalized people and will give the 
detailed information about the government welfare schemes. 
e) To built up educational trust or societies for spreading education among them. 
Similarly create awareness about Human Rights. Find out the sources and make them 
available of legal information, the rights of livelihood towards the government, and 
other public authorities. Develop the entrepreneurial abilities and provide adequate 
facilities to dalits. 
Long term programs: 
The long term objective of depressed classes is to total transformation the existent 
structure of society.
Dr. Babasaheb Ambedkar said that, until we get political power in our hands we can 
not the existing oppressive system.
a) To capture the political power we have to remove the illusion from the mind of 
depressed classes about the concepts of Hindutva and such other type of concepts 
and make them aware about their present positions. 
b) Continuous efforts to minimize the enemies of dalits and make more true friends 
c) To build up strong political organization
d) To reconstruct the Indian society based on freedom, equality, justice and 
fraternity 
The task look difficult but if it plan properly and work together restlessly, I have no 
doubts in my mind that this is not impossible.  What Dr. Babasaheb Ambedkar 
dreamed New Global India is possible to build up in 21
st
century.
  

A CRITICAL STUDY OF SOCIAL EXCLUSION & ITS IMPLICATION
Dr. K.S. Ingole, Associate Professor, Dept of Economics Post Graduate Studies and Research,
SNDT Women's university, Mumbai
Introduction
A caste system is the major feature of Indian society, it is not only reflects in social life of Indian 
people but also economic and political behavior of people are governed by the caste system. 
Caste is the identity of a person in Hindu society. In India, exclusion or inclusion in the economic 
activities such as production, distribution or any gainful job to a particular person depend by his
caste. In social science literature the concept of social exclusion is defined as 'the process 
through which individuals belonging to some groups are wholly or partially excluded from full 
participation in the society in which they live'. The unfavorable inclusions with unequal 
treatment may carry the same adverse effects as unfavorable exclusion. 
The purpose of this study is to examine the caste as exclusion of backward castes people from 
social respects and economic benefits, and to find out its implication on economic development 
in general and in particular of backward castes. 
The meaning and nature of caste
Caste is a term derived from a Portuguese word, casta, meaning breed, lineage, or race
i
. It is a 
term used to identify the different social segments within the caste based Hindu society. Each 
caste has its own customs, rituals, family deities and food habits. According to Dr Babasaheb 
Ambedkar, it is mainly the custom of endogamy that has preserved the castes and prevented 
one caste from fusing into another. Almost all the writers and scholars conform to this view of 
Dr. Babasaheb Ambedkar. Sociologist G. S. Ghurye following features of caste 
1 Segmented division of society 
2 Hierarchies 
3 Restrictions on feeding and social inter-course 
4 Civil and religious disabilities and privileges of different sections
5 Lack of unrestricted choice of occupation
6 Restrictions on marriageProf. Ghurye holds that caste in India is a Brahminic child and that endogamy, the outstanding 
feature of caste was first developed by the Brahmin. The functions of caste can be understood 
only with regard to the caste system. The caste system is the foundation on which Hindu 
society is built. Dr. Ambedkar says: by the Hindu social system the communities are placed in an 
ascending scale of reverence and a descending scale of contempt.
ii
  The Hindu caste system is a 
pyramid like social structure in which the majority of the lowest castes are forcibly kept at the 
bottom of the pyramid, condemned to manual professions and forced to serve the castes above 
them. According to  him, Brahmins were the originators of this unnatural institution founded 
and maintained through unnatural means. Brahmin class first raised the structure of caste while 
making themselves into caste, the Brahmins by virtue of this, created non-Brahmin caste. The 
government of India's Anthropological Survey of India (ASI), under the leadership of K.S.Singh, 
brought out a series of publications  titled  'The  People of India'. This project identified 2800 
castes including 450 SC, 461 ST and 766 OBC. It concludes that, caste continues to be the basic 
building brick of Indian society. This historic verdict of the ASI project did not get any publicity 
in India's press because our ruling class is shy of admitting this fact which has made them the 
rulers
iii
.  Dalit Vice editor Mr.  V. T. Rajshekar  says,  "Almost all political party leaders be they 
nationalists, socialists, communists and Hindu Nazi have uniform opinion on caste 'caste is bad 
and hence it has to be destroyed; Indian scholars and researchers have produced mountains of 
literature to prove that caste is non-existent'. They believed and made others believe that with 
economic development, the superficial "caste" could be eradicated. Our planners and rulers, 
based on this belief, introduced hundreds of welfare schemes and invested thousands of Cr. of 
rupees on these schemes. All these economic programs proved an utter failure
iv
.  What Mr. 
Rajshekar says, is true because, caste system is yet exists in India and functions well organized 
manner than earlier period. According to Dr. Ambedkar 'Caste does not result in economic 
efficiency, caste can not and has not improved the race, caste has however done one thing, it is 
completely disorganized and demoralized the Hindu,  He said, the Hindu often complain of the 
isolation and exclusiveness of a gang or a clique and blame them for anti-social spirit. But they 
conveniently forget that this anti-social spirit is  the worst feature of their own caste system
v
The caste system's fundamental characteristic of fixed civil, cultural, religious and economic 
rights for each caste by birth, with restrictions for change implies forced exclusion of one caste 
from the rights  of castes. Exclusion in economic spheres such as occupation, education and 
labor employment is therefore, internal to the system, and a necessary outcome of its 
underlying principles. In the market economy framework, the caste related occupational 
immobility would operate through restrictions in various markets such as land, labor, credit, 
inputs, and services necessary for any economic activity.  Therefore, in our country all major 
assets of production are own and concentrated in the hands of upper castes Hindu and lower 
strata of society particularly depressed classes (SC/ST) are assets less people. The unnatural 
distribution of national wealth forced depressed classes to depend on for their survival on upper castes Hindu at large extent; this is the main reason for their socio-economic exploitation 
in India.
Caste discrimination continues:
Discrimination is the main function of caste system in India. Though the Indian constitution 
provides for a slew of preferential schemes designed to end discrimination against the 
scheduled castes/ scheduled tribes yet,  atrocities against them continue unabated.  The 
provision in the constitution resolves, 'to secure to all citizens: justice, social, economic and 
political, liberty of thought, expression, belief, faith and worship; equality of status and of 
opportunity, and to promote among them all fraternity, assuring the dignity of individual and 
unity.' The constitution also states that 'the state shall not discriminate against any citizen on 
grounds only of religion, race, caste, place and birth or any form'. In the directive principles it 
adds that 'The state shall promote with special care the educational and economic interest of 
the scheduled castes/tribes and shall protect them from social injustice and all forms of
exploitation'. 
In spite of all these provisions discrimination on basis of castes is still continue till to date. 
Because, to implementations of provisions made in the constitution are not in the capacity of 
depressed castes the political, social and economic powers are vested in the hands of upper 
castes Hindus. As upper castes Hindu could control  all powers by the virtue of castes system 
they do not want to implements the  constitutional  provisions for their vested interests.   Dr. 
Babasaheb  Ambedkar, the champion of human rights said  is true even today, he said  that, 
"Millions of people living in the midst of civilization are still in a savage state and are leading the 
life of hereditary criminals. But the Hindus have never felt ashamed of it. This is a phenomenon 
which in my view is quite unparalleled"
vi
.  Thus, biases within the law-enforcement machinery 
and the political class have combined to prevent the depressed castes from utilizing programs 
designed for them. The statistics speak for themselves. Caste discrimination not only hinders 
SC/STs children from attending school but also affect the quality of education they receive.  
Therefore, the progress of schooling among Dalit children between the ages of  6-14 has been 
low and dropt out rate among them is very high compared to that of the general population. 
Several such facts have been  revealed in the 'Indian Education Report'. Upper castes teachers 
refuse to touch scheduled castes students. At the same time they make these children special 
targets of verbal abuse and physical punishment.
vii
Such behavior of teachers affects adversely 
on the educational desire among the scheduled castes children.  According to Dr Babasaheb 
Ambedkar the capacity to appreciate merits in a man apart from his caste does not exist in a 
Hindu. There is appreciation of virtue but only when the man is a fellow caste-man. It is not a 
case of standing by virtue and not standing by vice. It is a case of standing or not standing by 
the caste. Have not Hindus committed treason against their country in the interests of their caste? This is the question raised by Dr. Babasaheb Ambedkar is very much relevant in present 
context.  When Malegaon blasts accused were brought by police van Hindu people shower 
flowers on them.   This create the  impression  that blast by Hindu are welcome but not by 
Muslim. Dr. Ambedkar was a  social reformer of 20
th
century he rightly said "Enlightened high 
caste Hindus, who did not feel the necessary for agitating for the abolition of caste or had not 
the courage to agitate for it"
viii
. The root of untouchability is the caste system; the root of the 
caste system is religion attached to varnashram; and the root of varnashrma is the Brahminical 
religion; and the root of the brahminical religion is authoritarianism or political power. Dr 
Ambedkar wanted to change the very body of the caste system which would automatically 
result in a change in its mind. He proved that deprivation of human rights resulted in 
untouchability and casteism. A country of castes is a country of stagnation and 
underdevelopment. A by product of the brahminical discourse, the caste system was believed 
to be a divine institution till the British period, and despite resistance from the depressed castes 
the hegemonization of brahminical culture practice and ritualism has been established through 
well designed ideological and political moves
ix
. Dalit bias runs deeper and deeper even in 21
st
century, not only among the uneducated people but also even among highly modern educated.
Discrimination at higher level teaching 
Thorat committee was appointed by the government to find out the reported discrimination in 
India's most reputed All-India Institute of Medical Sciences (AIIMS) in New Delhi. The report 
revealed that, the struggle that SC/ST students face to  enter premier institutions of higher 
learning seems mild compared to what they have to put up with later. On top of coping with 
academic challenges and a totally unfamiliar environment, many dalit students have to deal 
with the hostility that comes with being a 'reserved category student'. Most of the students 
complained that teachers were inaccessible and plain indifferent towards them. The committee 
found that over a period of time, SC/ST students have moved from their allotted rooms to be 
closer to other SC/ST students. The one-month of ragging to which the authorities turn a blind 
eye is sheer hell for these students since they are publicly subjected to caste-based questions, 
taunts and jeering. Many of the students said they moved because their rooms would be locked 
from outside repeatedly while they were in, vulgar abuse would be scrawled on the doors and it 
would be made clear that this would stop only if they moved to floors where other SC/ST 
students stayed. They also faced social isolation, refusal  to share books and notes and 
objections to sharing seats in class. As far as SC/ST faculty are concerned, their written 
complaints to the committee are of a serious nature, ranging from non-filling of reserved posts 
to denial of opportunities to develop better skills and gain further experience
x
.  Similar 
situations were revealed in the IIT Powai, in Mumbai two years back.Prejudice attitude towards SC/STs students  
There are pre-conceived notion about academic caliber of the SC/STs students and hence they 
are labeled as 'academically backward'. Today in college these student identity manipulated as 
'reserved quota' students. Thus, in spite of academic competence comments like 'these 
reserved chaps will never be as good as us' are passed. Another issue is the non-admission of 
'merit' students in the 'open' category, despite a central direction that they must be. It is 
always thought why enroll an extra low caste student when we already have to admit a certain 
number of them? This follows two consequences, it  brands a brilliant student as one coming 
from the reserved category and it deprives another needy SC/ST student of a seat
xi
.     Their 
contribution is not recognized in any area; they are always put in an environment which will 
hamper their personal development and performance. Constant attempts are made to destroy 
their 'self'. In educational institutions and even at work places discussions are held on 
reservation policy. The major objective of such discussion is not to find out the ideology of the 
state behind the measure, but to create hatred among the students and employees in 
organizations. The worth of SC/STs is not prized at work place, though they have potentials. No 
one can deny that backwardness very substantially arises from lack of access to economic 
resources and facilities like quality education and employment opportunities. However, two 
aspects are conveniently overlooked by upper castes Hindus. 
Lack of political will
The Maharashtra state is known as socially progressive state, political leaders always talk about 
social reform on the name Phule, Ambedkar yet Khairlanji massacre happen in Maharashtra 
recently on September 29, 2006, four members of the Buddhist Bhotmange family Surekha, her 
daughter Priyanka and sons Roshan and Sudhir were killed near their house in Khairlanji in full 
public view, by an angry village mob, allegedly out of caste hatred. This story do not end here it 
continued very recently in Marathwada region in Bid district two Buddhist college going girls 
were half naked  paraded by upper castes Hindu people on day light yet accused  are not 
booked by police. Such is the fate of SC/ST in modern India.
Economic Implication of Caste system:
India is recognized as an economy with a 'stunning' but jobless growth' and a 'booming 
economy with growing gaps' where the spectacular successes made have not been shared by 
all equally. The planning commission has also realized that economic growth has failed to be 
sufficiently inclusive, particularly after the mid 1990, it noted in the approach to the eleventh 
five year plan. For too many people still lack access to basic services such as health, education 
clean drinking water and sanitation facilities without which they cannot be empowered to claim 
their share in the benefits of growth
xii
. Poverty and economic backwardness may be distributed across caste lines, but there remains a significant difference in the manner in which economic 
backwardness affects life chances of individuals belonging to different castes. A poor Brahmin, 
Rajput or Bania may be deprived of good education for reasons of poverty, but his or her whole 
lifestyle radiates a degree of confidence which a low caste person from an economically well-off 
background is hard put to match. In India those who are not in the growth process  they are 
particularly SC/ST/OBC and Muslims.  Dr. Ambedkar said that, in a castes–based society the 
choice of occupation was not based on individual preferences or capabilities, but on social 
hierarchy for Brahmanism.  While some occupations are valued by society, others are devalued 
and are considered polluting, impure, and therefore socially degrading. The social stigma of 
impurity and pollution attached to occupations such as scavenging and leather-making reduces 
the social status of the persons engaged in them. Workers those who are forced into these 
occupations on account of their caste origin do not derive job satisfaction and are constantly 
prone to aversion, ill will and the desire to in linger. There are many occupations in India which 
on account of the fact that they are regarded as degraded by Hindus, provoke those who are 
engaged in there is a constant desire to evade and escape from such occupations which arises 
solely because of the blighting effect which they produce upon those who follow them owing to 
the slight and stigma of caste on them by Hindu religion what efficiency can there be in a 
system under which neither men's hearts nor their minds are in their work, public life in India is 
controlled by caste identities.
xiii
This is the one of the main reasons  of  low productivity and 
production in India. The implication  of  such tendencies is the results of under utilization of 
resources and under production.  
Worst condition of unorganized sector' workers
SC/STs are predominantly  working in unorganized sector and their conditions are miserable 
there it is reported in various commissions' reports appointed by the government of India. The 
report of the Commission on the condition of unorganized sector workers revealed that, the 
number of people below the poverty line may have come down, but 79 per cent of unorganized 
workers 88 per cent of SC/ST, 80 per cent of OBC population and 84 per cent of Muslims belong 
to the "poor and vulnerable group". Despite high economic growth in recent years, the report 
note, " They have remained poor at a bare subsistence level without any social security, 
working in the most miserable, unhygienic and unlivable conditions
xiv
". 
The finding of Kevin Watkins, who edited the United Nation's Human Development Report, said 
that despite growing prosperity brought on by a sustained boom, child malnourishment in India 
is higher than Ethiopia and well above the African average of 28 per cent. In India four in every 
ten children are malnourished despite the country's economy growing at an average rate 9 per 
cent per year. Report further said, when it comes to economic growth India is a long way ahead 
of Bangladesh but when it comes to child survival rates, it lags behind. According to Watkins, an Oxford academic, Bangladesh has been cutting child deaths at a rate some 50 per cent higher 
than in India. Both Bangladesh and Nepal are far poorer than India, but India still has a higher 
child death rate then both the nations:' said Watkins. Poverty has also been falling far more 
slowly in India than in other high- growth developing countries, such as Vietnam and Brazil. 
Watkins believes that part of the problem is that the benefits of growth have been "highly 
skewed'.  Secondly from the side of government agencies there is height of negligence's to 
implements the prescribed policies made for SC/ST. 
Government Institutes 
It is reported in review of the state corporations, the National Institute of Financial 
Management (NIFM) in 2006 paints a shocking picture.  Most of these agencies have parked 
their funds in fixed deposits instead of giving loans to needy  SC/ST it's on an average; their 
equity–debt ratio was 65:35. The report says that there is widespread irregularity in selection of 
beneficiaries–cases of submitted lists not matching actual recipients have been recorded. Most 
state corporations have not prepared accounts for anything between 6 to 16 years. A 
Parliamentary Committee looking into the working of NSCFDC found that between 2001 and 
2004, only 281 SC/STs artisans had been provided loans in the whole country. Another problem 
is declining allocation and even lower utilization. In the past decade, central government 
spending on welfare of SC/ST and OBC declined from a tiny 0.005% of the total non- plan 
revenue expenditure to 0.004%. Plan expenditure for this purpose declined from 2.4% to 1.6% 
over the same period.
Special Component Plan
For raising SC/STs families above poverty line, there is a Special Component Plan (SPC) under 
which each central ministry and all state governments are supposed to allocate funds in 
proportion to the scheduled castes population. According to the Mid-Term Review of the 10
th
five year plan (2002-07) only 14 out of 37 central government ministries had complied with this.
Bank Credits 
Bank credits to SC/ST to run their own businesses have also declined. Data from RBI shows the 
amount of credit per capita received by SC/ST declined from Rs 495 in 1993 to Rs 285 in 2001 
and further to Rs225 in 2004. In fact the number of small borrowable accounts of  them 
declined from 77 to 23 per thousand. 
The  Indian system of exclusion on the basis of castes has also been  clearly reflected in the 
National Sample Survey Organization's (NSSO) Report (2004-05).  It is revealed from the report 
that 40.94 % out of total population are OBC, 19.59 % are SC and 8.63 % are STs. Approximately 
70 % of Indian population is backward castes population as per Hindu Social Order. The second important point revealed by report is that,  91.4 percent of STs, 79.8 percent of SCs and 78.0 
percent of OBC live in rural areas.  The third point is that,  the economic growth seems to be 
reflecting in the expenditure of urban India, which is spending nearly double the amount on an 
average compared to the rural areas. The per capita monthly expenses of people living in urban 
areas were Rs. 1052.36 a month as against Rs 558.78 of those in rural areas. With minor 
exceptions, the general level of spending of SCs and STs was lower than the OBCs and the 
others, while that of the OBCs was lower than that of others. According to the NSSO survey, the 
all India average spending by rural STs was the lowest at Rs 426.19, followed by rural SCs at Rs 
474.72, OBCs Rs 556.72 and others Rs 685.31. In urban India, STs spent Rs 857.46, SCs 758.38, 
OBCs Rs 870.93 and others Rs 1,306.10 in a month on an average. 
These are the  implications  of social exclusion of  SC/STs from main stream of development  in 
our country. As an economic organization caste is therefore, a harmful institution in as much as 
it involves the subordination of man's natural powers and inclinations to the exigencies of social 
rules. Economic survey (2005-06) says, if people are healthy, educated and adequately skilled, 
they can participate fully and contribute more to economic development process. However, 
India's overall performance on human development has been poor in last decade. Infant 
mortality rate have been much slower than expected. There is widespread under nutrition 
among women and children and maternal and child health still remains areas of concern. 
UNDP's global Human Development Report (HDR) for 2005 ranks India at 127 out of 177 
countries of the world in term of a composite Human Development Index (HDI) for 2003.
Remedial measures 
Special Central Assistance (SCA) for the special component plan (SCP) is a major scheme for the 
welfare and development of SCs. Under the scheme 100% assistance is extended to supplement 
the efforts of the states/ UTs for ensuring rapid socio-economic development of SC specially 
those living below the poverty line. Allocation for 2005-06 was Rs 407.36 Cr. for economic 
development of these disadvantaged groups through income generating schemes, special 
financial institutions have been set up namely scheduled castes finance and development 
corporation (NSCFDC) National Safai  Karmchari Finance and Development Corporation 
(NSKFDC) National Backward Classes Finance and Development Corporation (NBCFDC) and 
National Minorities Development and Finance Corporation (NMDFDC) The Protection of Civil 
Rights (PCR) Act 1955, and the SC/ST Prevention of Atrocities (POA) Act,1989 are two important 
legal instruments to prevent/curb persistent problems of social discrimination, prevalence of 
social evils like untouchability and cases of exploitation and atrocities against these 
disadvantaged groups. But as I said earlier that, because of prejudice mind set of upper castes 
Hindus these tools are not implements in right spirit. The upper castes Hindus always find different loopholes to avoid the implementation of the Act and therefore, the exclusion of 
SC/STs continued.
The Bhopal Declaration
Some of intellectuals among SC/STs and politician, social reformers gather in Bhopal in January 
2002 and come with agenda for  SC/STs empowerment known as The Bhopal Declaration. 
Accordingly, ensure that each SC/STs family will own enough cultivable land for socio-economic 
well-being. The law must be amended to ensure that lengthy litigation with the ulterior motive 
of denying SC/STs of legal redresses is not resorted to. Enact legislation and enforce the right of 
SC/STs, agricultural laborers to living wages, to gender parity in wages, to job security, to better 
working conditions and welfare measures, and ensure punitive measures against offenders.
Enforce with stringent measures the Bonded  labor system (Abolition) Act, 1976 and abolish 
forthwith child  labor to ensure freedom with dignity for all the  SC/STs Make the reservation 
quota applicable in all the public and private educational institutions from primary to technical 
and professional levels. Implement effectively in letter and spirit the SC/ST (Prevention of 
Atrocities) Act, 1989 and Rules 1995, especially with regard to atrocities against SC/STs women, 
and accordingly prosecute the dominant caste leaders and their minions who stoke the fire of 
caste clashes and the police officials acting in connivance with them. Ensure that in all state and 
national budgets allocations are made as per the proportion of SC/ST population and penal 
action taken against  not  utilization or diversion of funds meant for these sections. The state 
must assume sole responsibility in protecting the SC/ST. Make it statutory for parliament and 
state Assemblies to debate on the Annual Reports of the National and state level Commissions 
for SC/ST and Safai karmcharis within the following year, and ensure that these annual reports 
and the action-taken reports of the government are made public. Make reservation mandatory 
in the private and corporate sector in the same proportion as in the public sector. These are 
some of the suggestions of  the Bhopal Declaration. But unless the mind set of upper caste 
Hindus changes the implementation of these provisions are not possible. 
Identity
SC/STs and OBC are in majority in India. They should have their own identity in the Democratic 
society like India  because of self identity all these depressed castes people can organized 
themselves and fight for justice through democratic ways. Dr. Babasaheb Ambedkar has shown 
us the path of conversion to Buddhism. All SC/STs and OBC should follow the way shown by Dr. 
Babasaheb Ambedkar and embraced. Buddhism will be the identity of depressed castes being 
in majority they can have their own government  in democratic society  and use the political 
power to empower themselves and establish the just society based on the principle of liberty, 
equality, justice, and fraternity.  I conclude with the words of Dr. Babasaheb Ambedkat that, "turn in any direction you like, 
caste is the monster that crosses your path. You cannot have political reform; you cannot have 
economic reform, unless you kill this monster".
                                                          
i
V t rajshekar, caste a nation within the nation, published by books for change, Bangalore, 2002
ii
B. A. W.S Vol 9 p 410
iii
V.T.Rajshekar, caste a nation within the nation, published by, Books for change, Bangalore, 2002
iv
Ibid
v
Annihilation of caste, Dr. Ambedkar reprinted Babasaheb Ambedkar writing and speeches, Vol 1 , published by 
government of Maharashtra 1979.
vi
Annihilation of Caste, Vol 1, p 52
vii
Times of India, February 27, 2002
viii
Ibid Vol 1, p 41
ix
Kancha Ilaiah, Buffalo Nationalism, published by SAMYA, Kalkata 2004
x
Thorat Committee Report, EPW June2, 2007
xi
Ramesh Chandra, 'Identity and Genesis of Caste system in India, Kalpaz publications, Delhi 2005 
xii
Tilak B. G., EPW, Sept 22, 2007, p 3872
xiii
Babasaheb Ambedkar writing and speeches, vol 1,published by Government of Maharashtra, 1979
xiv
Times News Network, 11-08-2007

Ambedkar' In And For The Post-Ambedkar Dalit Movement

(A paper presented in the seminar on the Post-Ambedkar Dalit Movement organised by the Department of Political Science, University of Pune on 27-29 March, 1997)
Anand Teltumbde
Sugawa Prakashan, Pune

To the memory of Shaheed Comrade Lok- Shahir 
Vilas Ghogre Who refused to see the difference between Laal Salam and Jai Bhim, who longed to hear the Inquilab Zindabad resonating from the Buddha Viharas in Dalit Bastis, and from me who always expected something like this!

Contents

  1. Introduction
  2. Post-Ambedkar Dalit Movement

Gaikwad vs. Others
Tailist Pursuit of Power
Splits and Schism: Imperatives of Electoral Commerce
Dalit Panthers: The Sparklet that was not to be
Phenomenon of Kanshiram: A Culmination of a Kind
Multiplicity of Brands, Little Differentiation
Hinduised Buddhism: Turning the Wheel Backward
SC/ST Associations: Facing a Dead End Ahead
Gender Equality: More Noise, Little Substance
Suicidal Anti-Materialism
Elections: The Incurable Obsession
Ambedkar: A Need for Review

  1. Redefining 'Ambedkar'

Visions and Icons of Great Persons
Ambedkar: Commitment and Constraint
Non-dialectical Solution: State and Religion
Liberalism and Reformism
Redefinition Project

  1. 'Ambedkar' for the Movement of Dalits

Ambedkar against Exploitation
Constitution: An Excuse in Liberal Democracy
On Revolution
Ambedkar: A Radical Thinker
Conception of an Ideal
On State
On Socialism
On Democracy
Buddhism
On Marx
Aspects of the Strategy and Tactics

  1. Conclusion

FOREWORD BY PROF. RAM BAPAT

Dr. Anand Teltumbde has already made a name for himself as a brilliant, keen and incisive analyst of contemporary social and political affairs. It is no wonder then that the author has been able to put together in a very compressed but rigorous manner an entire gamut of issues concerning Dr. Babasaheb Ambedkar's central relevance for securing the Indian democratic revolution. The paper is devoted to the urgent and serious need for redefining Ambedkar as a revolutionary icon organically linking the dalit theory and practice to the revolutionary struggle in a global context.

As such Dr. Teltumbde is not offering here an appraisal of Ambedkar's work but an appraisal of his icons that in various ways have governed the post-Ambedkar dalit movement. The context is so agonisingly clear and relevant. Although the dalits have wrested significant gains in various domains of social life during the last five decades, the relative gulf between them and non-dalits seems to have remained the same if not actually increased. On the other hand the emerging world order signified by the process of globalisation is bound to change the grammar of oppressed peoples' struggles all over the world. The dalits too, therefore will have to wage now and in future a revolutionary struggle at one and the same time on two fronts marked by the caste and the class. In line with this need, the author is offering to us a critical review of Ambedkar's heritage quite similar to Buddha's bold and creative review offered by Ambedkar himself in his own hands.

The analysis opens up with an examination of post-Ambedkar dalit movement. In the process it covers the spectrum of dalit politics beginning with Dadasaheb Gaikwad and ending with the Kanshiram phenomenon of our days encompassing in between all the RPI splits and schisms together with the rise and fall of the Dalit Panthers. It demonstrates how the petty-bourgeoisie outlook, the middle class cultural norms governing the leadership life-styles, the over-reliance on the electoral politics, the tailist pursuit of power devoid of real mass contact and the absence of any class agenda compelled the parochial leadership of all sorts to set up one-dimensional icons characterising Ambedkar as the maker of the Indian Constitution, provider of the present order, a Bodhisatva, a constitutionalist, a messiah, a saviour, an SC leader, a liberal democrat, a staunch anticommunist, a reformist allergic to revolutions of whatever kind and thus, in a nutshell as the bourgeoisie liberal democrat par excellence. Barring Dadasaheb Gaikwad and the movement of the Dalit Panthers for a while post-Ambedkar leadership failed to pay any attention to the material aspects of life and mystified the problems of dalits. To take one example, while political power was a means for Ambedkar, it appears to be the end for Kanshiram. The analysis also does not fail to note the cultural failure of dalits to transcend the boundaries of sanskritisation and therefore, the gross neglect of the issues of gender justice and inequality by the dalit elite.

The paper then argues that all these errors arise out of a paradox of history whereby the movements of dalits who are undisputedly the biggest sufferers of material depravation show an utter disregard for the material dimension of life. The paradox reflects a historical dilemma of the Indian situation. The pathos of casteism overshadows the class issues. The ideology of class more often than not blinds us to the caste question. Ambedkar and Marx tend to cancel each other. In reality, a correct understanding of their thoughts and practices would help us to develop a more nuanced, praxis-oriented integrated approach. Our endeavours then would yield to us a holistic, true and revolutionary icon of Ambedkar to guide the dalit movement to its logical end.

The third part of the presentation discusses some crucial issues that will have to be resolved in redefining Ambedkar in this manner. It is of course a difficult task as India's historical environment compelled Ambedkar to pursue a far more context-laden and polemical politics in comparison with Marx. The author argues that Ambedkar might not have had appropriate methodological tools to deal with the problem at hand. As a result in spite of his dynamic and even dialectical rationale fashioned in a Buddhist mould, Ambedkar in practice dissected history with the equipment that basically belonged to "a school of social engineers". The resultant pitfalls constitute the source of Ambedkar's occasional wishful thinking and his conception of the moral force of religion divorced from the material reality.

And yet we stand on a firm ground in pursuing the redefinition project. Ambedkar's thought process is essentially rational and the underlying objective undoubtedly radical. Besides Ambedkar never took an absolutist, trans-historical position. He was all the time trying and revising weapons necessary for the total emancipation of the dalits. The author therefore discusses Ambedkar's thoughts on issues like exploitation, capitalism, imperialism, Constitution, liberal democracy. He further takes into consideration Ambedkar's conception of an ideal system of values and society. Ambedkar's perceptions of State, socialism, democracy, Buddhism, Marx and communism are deconstructed so as to yield clues for profiling 'a revolutionary Ambedkar' for the future dalit movement.

The fourth and the concluding part of the paper asserts the relevance and validity of the basic framework in Ambedkar's work to bring about a democratic revolution in India. Author's faith and hope in redefining Ambedkar in this light flow out of his conviction that the Ambedkar's basic thinking can be extrapolated from its erroneous forms. In fact, he thinks that the very future of the dalits as a social group almost hinges on this task.

Dr. Anand Teltumbde has demonstrated tremendous courage in departing from the hero-worshipping style of approaching the historical personalities, which is so rampant and so universal in our country. Let us hope that the issues analysed by him are given the close attention and scrutiny they demand. His position calls for extensive and more importantly, critical debate. Annihilation of caste, class and gender injustices and inequalities demand an open mind and an ever-green icon of revolutionary activist Ambedkar free from the dross poured on him by most of his opportunistic followers in the leading ranks. Endeavours to build revolutionary theory are bound to generate disagreements and controversies. That is how they should be so. But that is why we should congratulate Dr. Teltumbde for his present project. Let us hope to hear more from him in the future.

Ram Bapat
2, Prathamesh, Plot No. 157/12, Aundh, Pune 411007.

1. INTRODUCTION

Babasaheb Ambedkar has undoubtedly been the central figure in the epistemology of the dalit universe. It is difficult to imagine anything serious or important in their collective life that is totally untouched by Ambedkar. For the dalit masses he is everything together; a scholar par excellence in the realm of scholarship, a Moses or messiah who led his people out of bondage and ignominy on to the path of pride, and a Bodhisatva in the pantheon of Buddhism. He is always bedecked with superlatives, quite like God, whatever may be the context in dalit circles.

It is not difficult to see the reason behind the obeisance and reverence that dalits have for Ambedkar. They see him as one who devoted every moment of his life thinking about and struggling for their emancipation, who took the might of the establishment head on in defence of their cause; who sacrificed all the comforts and conveniences of life that were quite within his reach to be on their side; who conclusively disproved the theory of caste based superiority by rising to be the tallest amongst the tall despite enormous odds, and finally as one who held forth the torch to illuminate the path of their future. Few in the history of millenniums of their suffering had so much as looked at them as humans and empathised with them as fellow beings. He was their own among these few. It was he, who forsook his high pedestal, climbed down to their level, gave them a helping hand and raised them to human stature. It is a commonplace occurrence to see dalits right from the humble landless labourer in villages to the highly placed bureaucrat in corridors of power, emotionally attributing their all to him. They all believe that but for him, they would still be living like their forefathers, with spittoons around their necks and broom sticks to their behind.

It is thus natural for dalits to place him at the centre as their beacon and conduct their collective affairs as directed by its beam. This beam however is not monochromatic like a laser beam, to use an analogy from physics, but is composed of many light frequencies, the filters for which are controlled not by the masses but by some others. They manipulate this beam as per their desire, sometimes letting some frequencies pass and some times some other. They could selectively amplify some part and de-amplify the other and present an entirely different spectrum. What reaches the masses, thus, is not the holistic and true picture of 'Ambedkar' but its part, sometimes a distorted part, carefully filtered out and amplified by the 'technicians'. This fragmented and false Ambedkar is what reaches the masses. For them, Ambedkar is no more a historical personality named Bhimrao Ramji Ambedkar. He is already metamorphosed into a symbol - a symbol for their collective aspiration, an icon for the thesis of their emancipation. Because for the masses icons come handy. They are sans complexity of the main body, practical useable artefacts. Iconisation of the great heroes and their ideas at the hands of masses is thus inevitable. Human history is replete with such icons; rather it is largely made of them. The dalit politicians who never let the masses see the material aspects of their problems and kept them entangled in the cobweb of emotional issues have moreover promoted iconisation of Babasaheb Ambedkar.

This paper is premised on a hypothesis that the history of post-Ambedkar dalit movement is largely influenced by the icons of Ambedkar that were produced by the socio-political dynamics of post-independence India. The process of iconisation, whatever be the motivations, has to have the basis, howsoever tenuous, in the material reality, in the facts about the subject. Being essentially a simplification of a complex reality, it involves the playing up of facts as per one's proclivities and propensities. The paper therefore attempts to trace out the bases for various Ambedkar - icons in Ambedkar himself and simultaneously highlights the motive force behind the underlying distortions that they embody. While it largely holds these icons responsible for the current sorry State of the dalit movement based on the near-monotheistic devotion of dalits towards Babasaheb Ambedkar, it still considers that the conceptual framework that he reflects could be used, not only to further the emancipatory struggles of dalits to its logical end but also to promote a true democratic revolution in India, provided it is seen in a radical light.

The paper is divided into four parts. The first reviews the post-Ambedkar dalit movement, essentially in relation to certain significant milestones or trends and attempts to trace the specific icon of Ambedkar that underscores each. The second part discusses the general limitations of transpositioning the ideologies, characterising specific episodes in the history across the historical periods and in specific reviews the predominant profiles of the Ambedkar-icons. It outlines the need to redefine Ambedkar, if he is to be the ideological icon to guide the dalit movement to its logical end. The third part discusses certain predominant issues that will have to be essentially resolved in the redefinition project and gives clues for profiling 'Ambedkar' for the future dalit movement. The fourth and final part sums it up, emphasising the relevance and validity of the basic framework implied in Ambedkar's work - to view the contradictions in the society from the standpoint of the worst victim and work for their resolution, to bring about a democratic revolution in India.

2. POST- AMBEDKAR DALIT MOVEMENT

A review of the significant events and episodes in the dalit movement after the demise of Babasaheb Ambedkar is attempted here in order to identify the icons behind them and assess their characteristics.

Gaikwad vs. Others

After the death of Babasaheb Ambedkar, the mantle of leadership fell upon the shoulders of Dadasaheb Gaikwad. He appeared to be the natural choice, by virtue of his stature in the movement as well as his age. He had grown up to be Ambedkar's trusted lieutenant through frontline participation in all the battles, right from the days of Mahad. He represented a typical activist of the Ambedkarian movement and had a mass identity. He seemed to know the exact pulse of dalit masses. It is interesting to note that the question of land that by and large constitutes the crux of the dalit problem (as recognised by innumerable scholars even today) was and could only be taken up by Gaikwad. It was the biggest and by far the most glorious event in the post-Ambedkar dalit movement. Even during the days of Babasaheb Ambedkar, the mass struggle for land had never materialised in direct terms and at such a scale. At the most, it could be said to have materialised symbolically in the form of a struggle for abolition of 'Khoti'- a kind of landlordism that prevailed in the Konkan region of Maharashtra. At any rate, as a mass struggle for land at the national level, it did not have any parallel in Indian history. It was the first time that the economic dimension of the dalit problem was effectively integrated with their social oppression. It had gained an overwhelming support from the masses all over the country. Scores of dalit families went to jail and many dalit hamlets remained deserted for days.

However, although it had caught the fancy of dalit masses, the rest of the dalit leadership thought otherwise. They disproved Gaikwad's struggle as being communist and declared that it had no place in Ambedkarian agenda. They highlighted Ambedkar's statement that mass struggles were the grammar of anarchy in the constitutional regime and should not have any place in a parliamentary democracy. They argued that if the land question was at all important, it could have been taken up judicially in the Supreme Court of India. Fortunately, none suggested parliamentary solution. It was perhaps considered infeasible as none could muster requisite majority to effect the people oriented fundamental changes after the Poona Pact. In tacit terms, the other leaders were accusing Gaikwad of being intellectually incapable of comprehending the subtleties of Ambedkar's ideology and hence unsuitable to step into his shoes.

Gaikwad, a rustic in the common man's Dhoti - Kurta attire, and not embellished with university degrees, could not be accepted by these people. They considered themselves the true heirs to the leadership after Ambedkar on the sole criterion that they fitted the Ambedkarian mould (as they conceived it) better than Gaikwad. This mould was based on the contemporary middle class cultural norms that Ambedkar displayed in his attire and general demeanour. They would conveniently forget that that his western attire was basically a counter to Gandhi's belaboured austerity and a representation of modernity as against Gandhi's anti-modern views. Instead, they aped him in all appearances. They wore trousers and shirts, were suited and booted, had university degrees and could command better sophistry than Gaikwad. They would exhibit their law books as the key to the treasure left behind by Ambedkar. They could thus project themselves as better clones of Ambedkar to the gullible dalit masses. Gaikwad and the people of his ilk could be activists but not the leaders!

The first attempt to iconise Babasaheb Ambedkar and considerably successfully so, as the later times proved, is apparent in this early post-Ambedkar episode. That was the icon of a 'saheb'- the epitaph used for an Englishman but later used as an honorific for natives, who were educated, westernised and placed in bureaucratic authority. It denoted someone far above the masses, one who was endowed with authority and power. It was the icon of a saviour. It projected leader as the saviour incarnate who would liberate them from their bondage and lead them to prosperity. All that masses had to do was to stand solidly behind him. They did not have any specific role in the project of their own emancipation other than being meek followers of the leader. This particular icon distanced the dalit leadership from the masses in every way in terms of physical attributes like appearance, clothes, language and lifestyle. It promoted blind following and servile notions. The leaders were to be treated as their quasi-monarch (a la Bhim Raja). They could not be questioned on equal terms. They bestowed favours by their very existence. Without leaders the masses could not exist. It obfuscated, mystified and externalised the problems of dalits, if not their very existence. The saheb syndrome that curiously settled among dalits as the general honorific, almost devoid of any attribute association, got significant reinforcement by this icon. Moreover, in so far as this syndrome reflected middle class aspirations and value associations, this icon helped petty-bourgeoisize the entire dalit movement.

Although, later the Dalit Panthers brought in a change in this leadership model, certainly in its physical attributes and so made it more people friendly, it approximately recoiled back to the old RPI (Republican Party of India) model with the demise of the spirit behind Panthers. This leadership model was certainly regressive as it reproduced the decadent feudal structure that dalits were so familiar with in real life; perhaps it was both, its cause as well as its effect. Paradoxically, its protagonists and promoters were the very people who seemed to claim a larger share of modernity. Gaikwad's equation with the masses and his charisma would not be easily swept away by their attempts but it is a fact that he could not take up mass based struggles thereafter and rather chose to fall prey to the enticements of power and pelf form Congress circle. Thus, this early icon of Ambedkar certainly blocked the emerging mass orientation of the dalit movement.

Tailist Pursuit of Power

The importance of dalits in the scheme of post-1947 politics was duly recognised by the ruling classes, then predominantly represented by the Congress party. It was vital for them to tie dalits to the parliamentary alternative. Hypothetically speaking, if the latent alienation and the proletarian consciousness of dalits were allowed to grow in an unhindered manner, revolutionary prospects for India would have been closer than in any other conceivable place in the world. However, no ruling class would allow this to happen, much less the Indian one, which had impeccable credentials in its adeptness at keeping its victims within the institutional bondage for millenniums with mere soft strategies. Whatever the other motivations, there was certainly this element of strategy at work in making Ambedkar the chairman of the drafting committee for the Indian Constitution. It is said that it was done at the instance of none other than Mahatma Gandhi. For Gandhi - the super-strategist of the Congress, the Poona Pact with which he effectively blocked the political voice of dalits within the parliamentary framework, it was necessary to commit them to the latter for a long period. Could there be a better method to achieve this than getting Ambedkar- the undisputed leader of dalits, who had come to regard him as their Messiah, to author the Constitution! It is a tribute to Gandhi's farsightedness and cunning that he prompted Nehru to make it happen. Gandhi and Nehru knew that the composition of the Constituent Assembly, surfeit with representation of the propertied classes by design, provided enough fortification not to let Ambedkar's ideology penetrate the Constitutional draft. But, at the same time, Ambedkar could be eulogised as its maker. The strategy killed several birds with one stone. It won the dalit commitment to the Constitution; it projected a progressive facet of the Indian ruling class to the world and planted false consciousness among dalits. Thus, although the content of the Constitution was decided by the ruling classes, the ruled ones were made to own it up. It was a feat of strategy certainly comparable in its import to that behind the caste institution. Behind its generosity and progressive veneer was hidden the trap which would effectively incapacitate the dalits for a long time to come. Once trapped they would stay in perpetual fragmentation in the turbulence of electoral game played by various sections of the ruling classes. Dalits constituting over 15 per cent of the total population are a significant factor in the number game of electoral politics. Their spread prevented them from winning any election on their own steam but at the same time none other could possibly win it without their support. Every ruling class political party would vie with each other to get them as a vote block on its side and still collectively prevent their coalescence into a class.

The mass struggle that materialised under the leadership of Gaikwad certainly shook the ruling classes. They had to devise special strategies to contain the threat of the emerging dalit challenge. It was a challenge indeed, although inadequately articulated, that had exactly touched the most sensitive nerve of the feudal structure, which still lay at the base of everything that mattered to dalits. The implementation of this strategy was soon seen in Gaikwad being befriended by Yashavantrao Chawhan, the then chief minister of Maharashtra and later the Deputy Prime Minister of the country. It culminated in the first alliance between the RPI and the Congress, which helped Gaikwad, and a few others reach the Parliament and Legislative Assemblies. The inauguration of the era of unprincipled alliances could be discerned right here. The Congress was undisputedly a representative party of the Indian ruling classes comprising the high caste capitalists and landlords. The alliance between this party and the party of the most exploited in the land, to say the least, could only be termed unholy.

In the face of it, it appears difficult to associate this phenomenon with Ambedkar who for the best part of his life had fought the Congress tooth and nail, criticised it ruthlessly and ultimately warned his followers to be away from it as it was the'burning house'. It is interesting to note him standing out among his contemporaries, including the communists and socialists of all hues, in unambiguously characterising the Congress party as the representative of the capitalists and landlords and unmask its fake anti-imperialist facade. However, as it always happened, in this case too his life-saga left enough strands to be picked up by the vested interests in support of the seemingly contrary act. Whatever the situational contexts and strategic compulsions, but it could be cited that the same Ambedkar had joined the Congress government at the centre under Nehru's Prime Ministership, had accepted the chairmanship of the drafting committee for the Indian Constitution on the basis of support from the Congress majority, and had accepted the Congress support for getting re-elected to the Constituent Assembly after the partition of the country. Whatever might have been his strategy in relenting his stand in accepting the Congress offers, it cannot be ignored that it eventually got subsumed in the universal strategy of the ruling classes to neutralise resistance struggles of the oppressed people.

Whenever the oppressed masses organised their resistance against the oppression, repression and co-option have been the age-old twin strategic tools in the repertoire of the ruling classes. Contrary to the general feeling that the latter is the recent phenomenon, associated with the spread of liberalism, these strategies have been iteratively used by the rulers from time immemorial, depending upon their perception of the intensity of peoples' struggles. One of the native examples of co-option could be had in the form of Buddha who symbolised a rebellion against the Brahmin Dharma, being projected as the ninth incarnation of the God Vishnu. More often than not, co-option being the low cost option is preferred by the ruling classes. What Congress had done in allying with RPI was precisely implementation of this strategy. On the side of RPI, the motivation to ally with any party flowed from, as it seems, the clarion call given by Ambedkar to dalits to become 'the ruling race'. It was supposed to mean the rule of the dalits, the have-nots - the rule of the working classes. It was however conveniently taken to mean being part of the ruling team, the ruling class, by the dalit leaders. Any pursuit of power, regardless of means, thus became a quasi-sacred obsession for the dalit leaders.

In absence of any explanation of the strategic contexts in which Ambedkar had accepted support from the Congress, it provided good enough grounds to sustain the de-shaped icon of Ambedkar in the minds of gullible masses. This icon froze the alternative of parliamentary structure as the only alternative for dalits and consequently impelled them to rely on electoral methods to gain power. The Poona Pact had already eliminated the possibility of shaping up their truly representative leadership through the electoral means and in corollary laid foundation for the proliferation of irresponsible leaders. It had permanently ordained the necessity for dalits to be in alliance with some or the other ruling class party for their political survival. This icon thus fortified the emasculation of dalits in the political sphere. It approved the in-camera parleys of the leaders for their tailist pursuit of power shorn of the mass line and established the bourgeois model of politicking. Dalit movement thus became permanently an adjunct of the ruling class.

Splits and Schism: Imperative of Electoral Commerce

Then came the era of disintegration. The RPI split and further split till people lost count of its factions. Three predominant reasons could be discerned for this disintegration: (i) The ruling class strategy of 'divide and rule', (ii) the lack of ideological coherence in the dalit movement and (iii) the petty-bourgeoisie aspirations of its leadership. Apparently, these reasons reinforced each other and in that sense were not exclusive.

'Divide and Rule' is the well-known strategy of the ruling classes world over to basically weaken the ruled people. Indians generally attributed it to the colonial British policy but the fact is that more than any one else, it is ingrained in the blood of their own ruling class. It underlay their caste system in the form of a continuum of hierarchies that kept the people perpetually divided. This caste continuum has certainly played its obnoxious role even in avowedly 'caste annihilating' dalit movement in terms of providing potential fissures to crack along. As explained above, the post-independence reality, comprising mainly the 'Poona Pact' and enslavement of dalits within the framework of parliamentary democracy exposed dalits to ruling class enticements and resultantly led to their perpetual division. The strong dalit movement even if co-opted for the time being, posed the threat of re-emergence and challenge. It had to be simultaneously weakened to perpetuate their political subordination. The petty-bourgeoisie aspirations of dalit leaders made operationalisation of this strategy easy. Its feasibility was further enhanced by the ambivalence reflected in Ambedkar's sayings and doings from time to time, which provided scope for any one to interpret him the way one liked. It was his icon as the demi-god of dalits that was used up by the competing commanders of his army to do whatever they liked. This deification that he himself severally warned against and abhorred but which paradoxically had started well during his life time (celebration of his Jayantis) and grew after his death with an accelerated pace particularly because he himself became an essential icon in the neo-Buddhist rituals after his embracement of Buddhism less than two months ago. The mass Dharmantar - (change in religion), unprecedented in modern times and considered by many as the culmination of his life mission, released the flood of dalit religiosity that overwhelmed every other thing. It imparted him a quasi-spiritual aura as Bodhisatva. Many enthusiastically added a sarana in his name (Bhimam saranam gachhami) to the original trisarana of Buddhism. Thereafter the display of devotion towards Ambedkar became a surrogate for one's ideological allegiance to him. Everyone vied with another to display his kind of devotion and in turn to emphasise superiority of his ideological ware for justifying his separate shop. The process of establishing the shop invariably relied upon the collection of clientele from one's own sub-caste and building up subordinate political nexus with some section of the ruling class. The ideological pretensions through the display of devotion to Ambedkar continued thereafter with the aim of expanding the clientele.

The ruling classes of course played their cards well in catalysing this divide in their pursuit of buying the dalit support. This electoral commerce paid off handsomely and created its own rationale and motivation for the permanent division of dalit leaders. Through this process, some of the leaders of the wretched, while serving their cause, amassed wealth worth crores of rupees, became industrialists, maintained fleets of cars, roamed around by air and taxis, without any evidence of the basic source of their prosperity. It is a tribute to the political consciousness of dalits that while they starved and bled themselves over the issue of unity of these leaders, it never occurred to them to ask, even in a whisper, a question about the source of their material well being! Many blatantly indulged in the acts contrary to their profession for amassing wealth- some set up liquor factories and still remained the front rank leaders of the Buddhists, some allied with the rank castiest and communalist and still claimed to be ardent Ambedkarites. What counted was money and power. Paradoxically, the more affluent ones seemed to fit the bill better as they looked bigger 'sahebs', adding an additional aura to their leadership. Apart from the naked might of money in the electoral politics that tended to situate the moneyed men at the pedestal of power, the leadership model outlined above certainly contributed to their sustenance. With the money power they could invest into cultivation of their cronies and in turn command a better return in the wake of electoral parleys.

The splits were in a way a corollary of the leadership model and the over-reliance on the electoral politics sanctioned by the above-indicated icons. The leaders were always seen endowed with an uncommon wisdom that was really beyond the reach of masses. Leaders thus could do whatever they wanted without any scruples and they did it even breaking away from the party. As a result, the so-called giants who claimed the legacy of Ambedkar became contented with the identity of the parenthesised alphabets of their names after the RPI. They did not even worry about the fact that the formations represented by these parenthesised identities were basically a mere coagulation of their own sub-castes, in their respective geographical areas. It was a qualitative leap backwards for the ones who had proudly launched upon the annihilation of castes as their mission. Every one claimed to be a better follower of Ambedkar than the other is, and in the process, proliferated his icons by projecting one's proprietary models.

Dalit Panthers: The Sparklet that was not to be

The degeneration that set in continued unabated till the birth of Dalit Panthers in early 1970s. There could be varied explanations for the paradigm shift in dalit politics (movement) marked by Dalit Panthers. Remarkably, they spoke the language of defiance and militancy, which created waves. These waves had shaken the foundations of the established order in the country and in essence demonstrated what the wrath of the wretched could be! It provided a valuable insight that was pathetically missing in the dalit politics. Going by their manifesto, dalit panthers had broken many new grounds in terms of radicalising the political space for the dalit movement. They imparted the proletarian - radical class identity to dalits and linked their struggles to the struggles of all oppressed people over the globe. The clear cut leftist stand reflected by this document undoubtedly ran counter to the accepted legacy of Ambedkar as projected by the various icons, although it was sold in his name as an awkward tactic.

It reflected a historical dilemma characteristic of the Indian situation. The pathos of casteism integral with the dalit experience essentially brought in Ambedkar, as his was the only articulate framework that took cognisance of it. But, for the other contemporary problems of depravations Marxism provided a scientific framework to bring about a revolutionary change. Although, have-nots from both dalits and non-dalits craved for a fundamental change, the former adhered to what appeared to be Ambedkarian methods of socio-political change and the latter to what came to be the Marxian method which tended to see every social process as the reflection of the material reality. Both caused erroneous interpretations. It is to the credit of Panthers that the assimilation of these two ideologies was attempted for the first time in the country but unfortunately it proved abortive in absence of the efforts to rid each of them of its obfuscating influence and stress their non-contradictory essence. Neither, there was theoretical effort to integrate these two ideologies, nor was there any practice combining social aspects of caste with say, the land question in the village setting. Essentially, it remained an emotional and a poetic negation of the status quo, craving for the broad revolutionary change and on ideological plane inevitably reflected an amalgam of Ambedkar and Marx. This ideological amalgam could not be acceptable to those under the spell of the prevailing Ambedkar-icons and therefore this revolutionary seedling in the dalit movement died a still death.

The possibility of the radical shift in the paradigm of dalit politics indicated by the manifesto was totally submerged by the reactionary upsurge of the new version of orthodox Ambedkarism. The reactionaries objected to the radical content of the programme alleging that the manifesto was doctored by the radicals - the Naxalites. There is no denying the fact that the Naxalite movement which had erupted quite like the Dalit Panther, as a disenchantment with and negation of the established politics, saw a potential ally in the Panthers and tried to forge a bond right at the level of formulation of policies and programme of the latter. But even if the Panthers had chosen to pattern their programme on the ten-point programme of the Black Panther Party (BPP) in the USA, which had been the basic inspiration for their formation, it would not have been any less radical. The amount of emphasis on the material aspects of life that one finds in the party programme of the BPP could still have been inimical to the established icon of Ambedkar. Radicalism was the premise for the very existence of the Dalit Panther and hence the quarrel over its programme basically reflected the clash between the established icon of Ambedkar and his radical version proposed in the programme. The fact that for the first time the Dalit Panther exposed dalits to a radical Ambedkar and brought a section of dalit youth nearer to accepting it certainly marks its positive contribution to the dalit movement.

There were material reasons for the emergence of Dalit Panthers, as there are for any episode or event. Children of the Ambedkarian movement had started coming out of universities in large numbers in the later part of 1960s, just to face the blank future staring at them. The much-publicised Constitutional provisions for them turned out to be a mirage. Their political vehicle was getting deeper and deeper into the marsh of parliamentarism. It ceased to see the real problems of people. The air of militant insurgency that had blown all over the world during those days also provided them the source material to articulate their anger. Unfortunately, quite like the BPP, they lacked the suitable ideology to channel this anger for achieving their goal. Interestingly, as they reflected the positive aspects of the BPP's contributions in terms of self-defence, mass organising techniques, propaganda techniques and radical orientation, they did so in the case of BPP's negative aspects too. (See Acoli, Sundiata, a Brief history of the Black Panther Party and its Place in the Black liberation Movement for details). Like Black Panthers they also reflected 'TV mentality' (to think of a revolutionary struggle like a quick-paced TV programme), dogmatism, neglect of economic foundation needed for the organisation, lumpen tendencies, rhetoric outstripping capabilities, lack of clarity about the form of struggle and eventually corruptibility of the leadership. The Panthers' militancy by and large remained confined to their speeches and writings. One of the reasons for its stagnation was certainly its incapability to escape the petit bourgeois ideological trap built up with the icons of Ambedkar. It would not get over the ideological ambivalence represented by them. Eventually, the petit-bourgeoise 'icon' of Ambedkar prevailed and extinguished the sparklet of new revolutionary challenge. It was completely sapped of its rebellious image and its vitality and soon got corrupted with a ridiculous prefix 'Bharatiya' to it. It survived as another living monument to the ideological bankruptcy and the degeneration of the dalit leadership. It went the RPI way and what remained of it were the numerous fractions engaged in internecine squabbles under the sly hands of the ruling classes.

The Dalit Panther phase represented the clash of two icons: one, that of a radical'Ambedkar', as a committed rationalist, perpetually striving for the deliverance of the most oppressed people in the world. He granted all the freedom to his followers to search out the truth using the rationalist methodology as he did. He abhorred all kinds of humbug and hated to be bound by any dogma. He desired his followers to do the same. Like his mentor, the Buddha, he would exhort his followers not to take any thing for granted until their own experience corroborated it or their intellect supported it. The other is of the 'Ambedkar' who has forbidden the violent methods and advocated the constitutional ways for his followers, who was a staunch anti-Communist, ardent Buddhist, nay, Bodhisatva, who has given a permanent doctrine that was infallible. As it turned out, the radical icon of Ambedkar was projected without adequate conviction. It was implanted in an alien soil. There was no one committed to propagating such an image of Ambedkar, neither communists nor dalits. Eventually it remained as a veritable hodgepodge compared to the familiar set of icons coming from the other camp.

Phenomenon of Kanshiram: A Culmination of a Kind

The movement of Kanshiram markedly reflected a different strategy, which coined the 'Bahujan' identity encompassing all the SCs, STs, BCs, OBCs and religious minorities than 'dalit', which practically represented only the scheduled castes. Kanshiram started off with an avowedly apolitical organisation of government employees belonging to Bahujana, identifying them to be the main resource of these communities. It later catalysed the formation of an agitating political group creatively coined as DS4 - the Dalit Shoshit Samaj Sangharsh Samiti, which eventually became a full-fledged political party - the Bahujan Samaj Party (BSP).

Purely, in terms of electoral politics, which has some how become a major obsession with all the dalit parties, Kanshiram's strategy has proved quite effective, though in only certain parts of the country. He has given a qualitative impetus to the moribund dalit politics, locating itself into a wider space peopled by all the downtrodden of India. But he identified these people only in terms of their castes and communities. It may be said to his credit that he reflected the culmination of what common place icon of Ambedkar stood for. Kanshiram shrewdly grasped the political efficacy of this icon that sanctioned the pursuit of power in the name of downtrodden castes. The religious minorities which potentially rears the sense of suffering marginalisation from the majority community could be easily added to it to make a formidable constituency in parliamentary parlance. Every one knew it but none did how to implement. Kanshiram has seemingly succeeded in this task at least in certain pockets. The careful analysis will show that the combination of certain historical developments and situational factors has been behind this success. As Kanshiram has amply experienced, it is not replicable elsewhere. It is bound to be short-lived and illusory unless this success is utilised to implement a revolutionary programme to forge a class identity among its constituents. If not, one will have to constantly exert to recreate the compulsions for their togetherness and allegiance. In absence of any class-agenda, which is certainly the case of BSP, these compulsions could only be created through manipulative politics for which political power is an essential resource. BSP's unprincipled pursuit of power is basically driven by this exigency. It is futile to see in this game a process of empowerment of the subject people as could be seen (although not conclusively) from the statistical evidence of the cases of atrocities, and of overall situation of the poor people under its rule. There should be no lament over this as essentially it is where any kind of political acrobatics is destined to end in the prevailing system. The imperatives of this kind of strategy necessarily catapult the movement into the camp of the ruling classes as has exactly happened with BSP. BSP's electoral parleys with Congress, BJP, Akali Dal (Mann) that reached the stage of directly sharing State power in UP recently, essentially reflect this process of degeneration and expose its class characteristics today.

It seems to have sustaining support from the icon that BSP itself created, where Ambedkar was painted as the intelligent strategist who could turn any situation to his advantage, who used every opportunity to grab political power to achieve his objective. He is the person who saw in political power, a key to the woes of dalits and therefore exhorted them to grab it at any cost. He did not think highly of mass struggles except for tactical reasons to demonstrate the might of the leaders. For him, there existed only means not the values for securing one's goals. He did not see any permanent friend or foe in politics and joined even the Congress whom he had once declared as the enemy. He is seen as the person endowed with State authority (as a member of the Viceroy's Executive Council, Law Minister, and Chairman of the Drafting Committee for the Indian Constitution) - the sole source of his power to benefit his people. He was the sole arbiter of the interests of his people. Of course, he had disdain for all shades of communism.

Kanshiram's reading of Ambedkar ignores the fact that Ambedkar had to carve out space for his movement in the crevices left by the contradictions between various Indian political parties and groups on one side and the colonial power on the other. For most of his time, he sought maximisation of this space from the contending Muslim League and Congress, to name the predominant players, and eventually brought dalit issue to the national political agenda. Kanshiram stuffs his Ambedkar icon entirely with such kind of superfluity that it would look credible to the gullible dalit masses. This icon approves of his sole ideology that political power to his party (read him) could solve all dalit problems. His strategy till then has been to be in vantage position to decide who would be the king and thereby leverage his bargaining power. He did not care for democracy. To some extent this non-democratic stance spells his compulsions to have unitary command over his party structure as without it, his adversaries would gobble it up. He did not have any utility for any programme or manifesto, no concern for any issue howsoever burning, no qualms about policy or principles because, his sole obsession is to maximise his power by whatever means. In the rhetoric of empowering Bahujans, he does not even feel it necessary to demonstrate what exactly this empowering means and what benefits it would entail them. He never even spelt out what precisely ails his Bahujans except for highlighting their prejudiced social identities in worn-out casteist phraseology. That explains his entries into and exits from political alliances with any one with the same alacrity. The obsession with capturing power robbed him of certain fundamental values that Ambedkar never compromised.

The underlying value of the movement of Ambedkar was represented by liberty, equality and fraternity. Kanshiram does not seem to respect any value than the political and money power. In Ambedkar, one cannot miss an overflowing concern for the oppressed and wrath against the perpetrators of oppression. Kanshiram's concern scarcely transcended his speeches in his electoral rallies. It was with this concern and commitment that Ambedkar kept on referring to Marx and Marxism till his end, something as a touchstone to test his alternatives. Kanshiram simply abhorred it. Ambedkar struggled to formulate the dalit problem. Kanshiram either took it for granted or did not care for it at all. He never tried to articulate the nature of his Bahujanas' ailment except for the rhetorical reference to their subordination by the minority upper caste Hindus. For Ambedkar certain values, moral code etc. were paramount, Kanshiram never seemed to be bothered by these issues. Ambedkar always foresaw plans and programmes; visualised appropriate structures for the downtrodden. Kanshiram expressed clear disdain for such things. For Ambedkar political power was a means, to Kanshiram it appears to be the end. Notwithstanding these broad differences, he has succeeded in luring the dalit masses in certain pockets of the country by projecting an Ambedkar icon that sanctioned his unscrupulous pursuits of power.

The crux of Kanshiram can be traced to his superfluous attempt to replicate Ambedkar's movement of 1920s as if the times had stood still for the bygone five decades. Ambedkar's mobilisation of dalit masses through struggles is vulgarised by him as the 'agit-prop' tool to collect people behind him. When Ambedkar realised the potency of political power, he launched his Indian Labour Party that reflected his urge to bring together the working class, transcending the caste lines. It is only when the political polarisation took communal turn that he abandoned his ILP project and launched the Scheduled Caste Federation. For Kanshiram, the talk sans caste and communities is perhaps an anathema. His casteist platform as such appears preordained by his ambition for power. Ambedkar joined hands with a few political parties - one the communists (while joining the strike of mill workers) and the other is the Praja Samajwadi Party of Ashok Mehta in the 1952 elections. Although, he accepted the Congress support and offered to work in their government, he never tied up his political outfit to the Congress. It always appeared a politically expedient step for him as an individual without any organisational implication. Kanshiram's record so far clearly shows that he is ready to join hands with any one promising him the share of political power. Declaredly he would avoid the leftists of all hues and accept the friendship of the rank reactionaries of every kind. Ambedkar pointed at the capitalism and Brahminism as the twin enemy for his movement but Kanshiram enthusiastically embraced them without any pinch to his conscience. Ambedkar, in his own way, has been in search of suitable ideological carrier for the dalit movement. Kanshiram has no utility for such a thing.

Multiplicity of Brands, Little Differentiation

Apart from these broad political trends, there are many regional outfits like Dalit Mahasabha in Andhra Pradesh, Mass Movement in Maharashtra, Dalit Sena in Bihar and elsewhere, etc., some of which dabble directly into electoral politics and some of them do not. So far, none of them have a radically different icon of Ambedkar from the ones described above. They offer some proprietary ware claiming to be a shade better than that of others.

Hinduised Buddhism: Turning the Wheel Backward

Another trend in the dalit movement emphasises the spread of Buddhism as its goal. As in politics, there are numerous organisations devoted to this task. According to them, Buddhism was the culmination of Ambedkar's mission and hence, the true Ambedkarite not only had to be a Buddhist but also had to work for the spread of Buddhism. Ambedakr's declared vision of making India a Buddhist country spells a mission statement to them. Their activities revolve around building Buddhist viharas, becoming Shramners and Bhikkus; imbibing religious mode of living and engaging in quasi-studious pursuits like learning Pali, reading Buddhist scriptures, rewriting the episodes in history. At the renaissance some amount of excavation of skeletons is inevitable but it had become an obsession with the dalit intellectuals, who squandered considerable energies in desecting the Hindu mythology to expose its cunning and rediscovering the Buddhist glories as their own legacy. One of the underlying motives in this enterprise was to project superiority of Buddhism and in turn their own as they believed that they were the original Buddhists. Paradoxically, all of them quibble over the distinction between 'Dharma' and 'Dhamma', claiming that Buddhism is Dhamma whereas others are the Dharmas. Unlike other religions, Buddhism does not have any place for rituals, gods or any permanent entity like soul, and is just a practicable moral code for living. However, in practice, all kinds of mumbo jumbo that some times appears to be exceeding the familiar but on-the-wane rituals of Hinduism, are followed, so much so that not only Buddha but even Ambedkar is not spared from the godhood (Bhim Bhagawan). Of late, the relatively upwardly mobile (middle class) among dalits are increasingly getting attracted towards'Vipasyana' - a kind of meditation that is said to have been practised by Buddha himself to get his enlightenment and so is 'prescribed' in Buddhism to be a good Buddhist. Many of them lately claim that it is the essence of Buddhism. It is amusing to see this mind-centric trend growing among dalits. In all this, Ambedkar's attempts at rationalisation and redefinition of Buddhism are completely forgotten. What rather is remembered is that he himself had given them the 'vidhi' for marriage and for such other occasions; that he himself had devotedly said the three precepts and five oaths and stood through the long winding Gathas in the language of antiquity, that how he got into spiritual trance in front of the Buddha's statue when he visited Sarnath.

The icon they follow is that of a man incarnate of Buddha who analysed the problem of humanity and ultimately prescribed nirvana - a indescribable State marked by the extinction of all kind of craving. One who after Ashoka made greatest contributions to the revival and spread of Buddhism. It shows Ambedkar as a spiritual person who ultimately finds the roots of all the problems in the world within oneself and therefore preaches the virtue of moral rearmament and inner purity. The essence of being was to attain nirvana, the State of total contentment. It implied the futility of struggling against the material exploitation of dalits as their real salvation. It lay rather in extinguishing their own craving. It tended to internalise all their problems to themselves and stressed the need to cleanse their minds. Inevitably, it envisaged typical religious conduct from the followers with the highly pitched religious benchmarks available anywhere.

The sphere of religions abounds in such paradoxes. Its idiom basically promotes them. Buddhism could very well be conceived as the rebellion against the predominant creed of the establishment that prevailed more than 25 centuries ago, quite like Marxism in our times. Buddha was the first philosopher who forsook the futility of sterile philosophising and stressed the need to change the world. It is interesting to see in him as the first dialectician, some one in the same lineage as Hegel and Marx. It is ahistorical to expect Buddha to give a solution to the problems of our times but it is important to appreciate the underscoring rational approach followed by him in his search. His conclusions are not important, as they are essentially constrained by the State of knowledge and overall development of the physical sciences during his times. What is important is to see the expanse of positive things that he could postulate at that time. Significantly, Buddha discarded the concept of God and soul and spoke against all kinds of rituals; he asked people to accept things only if it corresponded with their own experience or passed the test of their own intellect. He gave complete freedom to people to make amends to the Dhamma as per the needs of time. But, it could not escape the pressures of institutionalisation, which transformed it into a religion. They made him a God, wove stories that well competed with any mythology, built elaborate rituals to be followed and sapped it of its essential zeal of changing the world.

The paradox would be better illustrated by the responses of ardent Ambedkarites to the recent news about one Islamic Taliban commander threatening to dynamite two fourth-century monuments - 1500-years-old statues of Buddha in central Afghanistan. The response came from highly educated non-resident Indian Ambedkarites. It was interesting inasmuch as they reveal what havoc the religious mindset that owes allegiance to Buddhism can play with even its human-centric tenets. They said that the dalits in India should immediately take out a massive procession to the consulate of Afghanistan and threaten them that no Afghan would be spared in India if they carried out destruction of the Buddha statues in Afghanistan. It was a burst of anger at the first hearing of the news and was not to be meant but nonetheless it revealed the consciousness, the consciousness of Khomini or of any Hindu fundamentalist at work. It is one thing to speak against the fundamentalist vandalism and condemn it or even punish the responsible people in whatever way but it is quite another to don reverse fundamentalism to kill innocents to save dead stone statues in some distant land. It is important to realise the fact that even the Buddha'Dhamma whose roots are firmly in the soil of rationality and whose sole raison de etre' is the human suffering, could be mutilated to be its exact opposite by the very followers of Ambedkar who consciously cleansed it of the dust of irrationality and mysticism gathered over millennia.

SC/ST Associations: Facing a Dead End Ahead

One more significant trend in the dalit movement has its source in the policy of reservations in services of the State. Apart from the central and State governments, the large number of public sector undertakings that were floated by them, and other institutions established and promoted with public money, also came to be the State, attracting the constitutional provisions regarding reservations for the SCs and STs in services. The dalits in these sectors represented the collective investment and achievements of the dalit community, as reservations were the only hope for them to secure material well being. Although, they found themselves catapulted to modern sectors of economy, they found there were newer traps already in place, which clearly communicated the caste code for the modern organisations. The dalits had to conform their behaviour to this code for their survival. It reflected all the familiar prejudices against them. Their experience of the blatant violations of these provisions generally manifested in terms of backlogs in filling reservation posts, denial of promotions and general discriminatory treatment meted out in postings, transfers and other aspects of organisational life. The trade unions and management associations would not address their woes because they involved a contradiction between the interests of dalits and non-dalits. Thus were born the SC/ST associations. Even after their countrywide proliferation, these associations do not have any locus standi with managements except for the ritualistic interviews during the annual visits of parliamentary committees on the welfare of SCs and STs.

It is a sad commentary on the functioning of the Constitution that over the last four decades it has driven these collectives to a State of hopelessness. The constitutional provisions regarding the reservations flow in the form of various circulars issued by the Government of India that are supposed to be implemented by its executive machinery. Over the years there has been a plethora of these circulars each written in such a convoluted language that even the highest court of law also felt it an arduous task to interpret them. One of the deliberate lacunae that exist in this scheme is that there is no effective onus on any one for the implementation of these provisions. The executive can blatantly refuse to implement them under the plea of variant interpretation and drive the SC/ST employee or his association to the courts of law. Even if the poor employee or the SC/ST association could last the long winding court process over the years and succeed in getting the favourable verdict (a remote possibility though) the employer can still persist with his negative attitude. There are scores of cases of this kind where the petitioner employee or his association had to launch contempt proceeding against the employers and end up being bankrupt in the process. The helplessness of dalit employees in the services, in a way is the reflection of the sorry State of dalit politics. Since, there was no way these associations could effectively struggle, they landed up seeking petty favours from managements and in return being a black sheep during anti-management struggles.

The typical activities of these associations comprise celebration of the birth anniversaries of Ambedkar, representing dalit employees to the management or administration, and doing certain philanthropic and community service, depending upon the degree of their own organisation and resources. The icon that they seem to be following is that of a saviour, emancipator, to whom they need to pay their obeisance, to obey his commandments. Their community service for instance could be easily traced to Ambedkar's call to dalits to contribute 20 % of their earnings to the cause of the community. Although, rarely any dalit (save the poorest ones) goes so far as to sacrifice one fifth of his income over the cause of the community, none seem to refuse some symbolic contribution. Some better organised associations distribute notebooks, text books among slum children, run coaching and career counselling classes, organise relief works in the wake of calamities, open eateries in the dalit congregations like the ones at the Dikshyabhumi in Nagpur and Chaityabhumi in Mumbai. These are the gestures of repayment of the social debt.

They see in Ambedkar as the one who struggled to get them so many facilities and it is their bounden duty to take fullest advantage of the same. It was their sacred duty to occupy positions of power in bureaucracy. It is assumed, as Ambedkar appears to have assumed himself, that the educated dalits with bureaucratic authorities will serve the cause of their community in direct proportion to their relative position. The myth is still sustained in spite of heaps of evidence to the contrary. Ambedkar's exhortation to 'agitate' is reduced down to making appeals to various authorities, having meetings with managements submitting memoranda and at the maximum, to filing the writ petitions in the courts - in short all that in the feasible range of the public service - rules. However, the constraints soon constitute the conscience. Ambedkar is reduced to a deity that imparts an identity. It is therefore that one curiously finds dalits celebrating the joint birth anniversaries of Babasaheb Ambedkar and Shivaji along with the Shiv Sena in the so-called den of Ambedkarism - the State of Maharashtra.

Gender Equality: More Noise, Little Substance

It is expected of the people who avowedly fought against their unequal status, to have a congenial attitude towards the victims of other inequalities. Women are one social group who despite constituting half of the human population and contributing equally to the sustenance of human society are being discriminated against all over the world in varying degrees of severity. Gender inequality should have been the foremost issue in the dalit movement. At least this problem could have been approached with the demonstration of a paradigm shift towards a radical culture. But unfortunately, with the rise of petty- bourgeoisie consciousness in dalits, they have adopted the more regressive culture of the forward castes. Traditionally, dalit women had equality of sorts in so far as they worked with their men folk for managing their homestead. But now the cultural preference of relegating them to the background to do the household chores and / or to look after children is increasingly evident in dalit homes. It is a matter of pride that right from the days of Ambedkar, women have played a major role in the dalit movement. Among the poorer folks they still continue to do so. But this historical legacy also could not thwart the onslaught of the regressive culture.

In the din of what Ambedkar did for women, the icon that guides action is of the exponent of legal and coded equality of women, something like equality on the statutes (a la Hindu Code Bill). Culturally, dalits have not transcended the boundaries of sanskritisation, in the sense that their women folk have been given the worn out role model of a Brahmin woman; just because Ambedkar had once exhorted them to emulate her in the manner of donning their saris and other ornaments. At other times, he had reminded them of the importance of their role in community development as mothers or wives and advised them to perform it better. Thus, it may be said that the approach towards women even in the glorious days of the struggle also had not gone beyond the men-centric traditional role women donned. Similar observation can be made against Buddhism, that its meta-ideals also could not so much as grant them the absolute equality with men. It is a well known fact that Buddha had granted his tacit approval for the ladies to enter the Buddhist order as the 'Bhikkunies', at the instance of Anand -one of his close and favourite disciples, but had prescribed that they will always bow in reverence to a Bhikku irrespective of their relative seniority in the order. Although, it is said that the dalit movement scarcely reflected the current shift in favour of equality of women, it would be erroneous to judge the events of the past by present standards. It is not to be forgotten that Ambedkar had to communicate with dalits in their familiar idiom. The cultural change, moreover is an invisible process. What Ambedkar said or did had the limitation of historical possibilities; he would not say anything for the sake of postulating. He craved for change and strove to bring it about with a practicable approach. In relation to women, his approach needs to be understood from this perspective. Unfortunately, dalits seem to have frozen it into an icon and raised fences around themselves from the concept of radical gender equality.

Suicidal Anti-Materialism

It is a sad paradox of history that the movement of dalits, who are undisputedly the biggest sufferer of material depravation, should show an utter disregard for things material in an era characterised by stark materialism. It smacks of its distaste for the real issues of life while displaying excessive enthusiasm for the emotional issues. After the massive movement of landless labourers led by Dadasaheb Gaikwad, incidence of the material questions that afflict most of the people, could be seen as just notional (e.g., the agitation for fallow lands by Samyak Samata Andolan). Even the Panthers could not escape this trend. There have been massive displays of strength of dalit unity but it all has been for emotional issues. The examples abound. The glorious movements for 'Namantar', against the ban on the Riddles of Rama and Krishna, and many others representing the dalit-anger towards the attempts of castiest elements to denigrate and desecrate the statues of Babasaheb Ambedkar, certainly demonstrated potential force of dalits. The material reality that surfaced in the wake of each of these movements in terms of inhuman atrocities perpetrated in vengeance of their assertion, at the same time could not awaken them. In the Namantar case, in response to the Long March by dalits, the local dalit hamlets were burnt down, many people got lynched, many women were raped, and all were ostracised and boycotted. Every time this heinous episode recurs and dalits bear the brunt!

With regard to the neglect of material aspects of living in the dalit movement, the inspiring icon is made up of Ambedkar's much publicised opposition to the vulgar materialism propagated by the then communists. It is stuffed with his thoughts that reflect not necessarily disdain for the material things but a leaning towards a belief that the societal phenomena could well be shaped by the non-material things or processes. It is coloured by the fact that the tone of the struggles he launched has always been in the realm of codes, norms, traditions, and institutional practices that he aimed his struggle against for bringing about the socio-cultural change, a social revolution. The culmination of his mission, as it is seen by dalits, in Buddhism, that predominantly taught the virtue of extinguishing the thirst for material things and reaching indefinable State of mental peace calledNirvana, has certainly lent strength to this icon. Dalits always defined their struggle to be for prestige - for 'Asmita', for self-respect. The questions of land, remunerative wages, working conditions, government's economic policies etc. never interested them. In the history of four decades at no time any of their leaders or any intellectual cared to look at how the government policies or international happenings influenced the lives of average dalits in villages.

Even in the face of atrocities that dalits suffer day in and day out, never does the realisation dawn on them that much of it could be traced to their State of material depravation. The fact that they cannot organise defence is also related with their material wherewithal. It does not seem to be a question of violence or non-violence. Fortunately, Ambedkar's own stand on violence, as he often declared it in order to expose the futility of Gandhi's obsession with non-violence in the long polemics is well known to dalits. It reflected what according to him, the Buddha said 'to the extent possible, non-violence; if necessary, violence". But the icon of Ambedkar that came before people was conveniently shorn of this practical attribute. This icon seems to obfuscate even Buddha as the impracticable proponent of unqualified compassion and non-violence. It emphasises constitutionalism even in the wake of perpetration of heinous atrocities.

Elections: The incurable Obsession

Barring emotional issues, the dalit movement has been hijacked by the petty warring factions of incompetent leaders whose sole obsession appears to be elections of whatever kind. As roosters wake up crowing at the dawn or frogs surface out of nowhere around water pools formed with the first showers of monsoon, they all surface out of their slumber with any election announcement. Then follow the talks for alliances, allegations and counter allegations of money transactions, threats of splits and actual splits. This process could be preceded by the talks of unification of various factions, if they were not together, essentially engineered by the electoral strategies of some ruling class party. The masses however land up emotionally supporting such unity moves and ultimately fall prey to the machinations of big money. This cycle is seen repeated a number of times at least in Maharashtra, which has historically been assumed as the hub of dalit politics even after losing its provincial relevance. This dalit electioneering has been so shorn of reality and devoid of any political perspective as to seem end in itself, serving the personal interests of leaders. They would not have any manifesto, no strategy, no agenda or plan; no realistic assessment of their strength and weakness. Participating in elections however was their sacred duty. The Ambedkar-icon that appears to back this strange phenomenon derives its material from the fact that Ambedkar himself relied upon elections for securing power despite his own bitter experiences, that he tended to think of the popular mandate gained through periodical elections as the only legitimate political process in the Constitutional regime and denounce other modes of mass struggle. It is additionally imbued with a hope that despite several defeats Ambedkar rose to occupy seats of power through the electoral process.

Now the people are increasingly getting dejected with the games of dalit leaders and are found to be straying over to other parliamentary parties, even of Brahminical hues. Many of the latter have already co-opted Ambedkar. Some have lent him their veneration by including his name into their list of the 'Pratah smaraniya'- the memorables at the dawn. They have launched the class assimilative drives like Rashtriya Samarasata Manch. Today, there is a sort of clamour for claiming Ambedkar's legacy among all the parliamentary parties. In the face of disintegration of the dalit block and increasing political crises faced by these parties, they all need Ambedkar for their survival. Essentially, the icon of Ambedkar they promote is customised to serve their own interests. Even the BJP, the party that swears by Hindu religion and glorious Hindu tradition and culture, has put up Ambedkar to serve its ideology and politics, with fairly encouraging results. The icon they project is that of a staunch nationalist, of one who was proud of 'Indian' (read Hindu) culture and tradition minus evils like untouchability and of one who was against communism.

The election mania is so deep entrenched in the minds of dalits that they ceased to think of any other alternative. There is no appreciation of the fact that they have been squarely cheated in this intoxicating game. At the first place, the resource sensitive game does not gel with the starkly resourceless players. Second, so far they do not transcend their caste confines, their constituency remains acutely constrained by the numbers of their own caste. Third, even if one succeeded overcoming these odds in the election, there may essentially lie series of compromises ahead for basic survival in the houses. The system ensures that a true representative of dalits does not reach the portals of power, and if reached, he or she is soon neutralised. It is amazing that the simple empirical evidence of the systemic failure does not get across dalits. The constant strength of dalit representation in the Indian Parliament and legislative Assemblies by virtue of the reservation policy, has been utterly ineffective simply because the various identities in addition to the caste never let them come together. Electoral dalit politics pre-supposes alliances and compromises invariably with the ruling class parties who may satisfy the thirst for power of its leaders but certainly not support the dalit empowerment.

Ambedkar: Need for a Review

Various icons that the post-Ambedkar movement of dalits appear to have built up, characterise Ambedkar as the maker of the Indian Constitution, provider of the present order, a Bodhisatva, a constitutionalist, a messiah, a saviour, an SC leader, a liberal democrat, a staunch anti-Communist, a social engineer who believed in the reform process and disliked revolutions. It is heavily sculpted by the petty-bourgeoisie outlook that has completely hegemonised the dalit movement. It rarely reflects the dreamer in him who was perpetually in search of ways and means to see the human society sans exploitation, injustice and humbug.

Many students of the dalit movement are influenced by these post-Ambedkar reflections in characterising Ambedkar as the bourgeoisie liberal democrat. Does it really project what Ambedkar stood for? Does it capture the full essence of his movement? More importantly, is that the Ambedkar whom we are going to use as the weapon in the emancipatory struggle of dalits?

Dalits as a social group, are still the poorest of poor. A negligible minority has managed to escape poverty limits and to locate itself on to a continuum ranging up to a reasonable level of prosperity with the help of certain State policies like reservation and political patronage. In social terms however, all dalits, irrespective of their economic standing, still suffer oppression. This social oppression varies from the crudest variety of untouchability, still being practised in rural areas, to the sophisticated forms of discrimination encountered even in the modern sectors of urban life. Although, the statistics indicate that dalits have made significant progress on almost all parameters during the last five decades, the relative distance between them and non-dalits seems to have remained the same or has increased. More than 75 per cent of the dalit workers are still connected with land; 25 per cent being the marginal and small farmers and the balance 50 per cent being landless labourers. The proportion of dalits landless labourers to the total labourers has shown a steady rising trend. In urban areas, they work mainly in the unorganised sector where the exploitation compares well with that of a feudal rural setting. Out of the total dalit population of 138 million, the number of dalits in services falling in the domain of reservations does not exceed 1.3 million including sweepers; less than even a percent. And this too would be grossly misleading, as out of this 1.3 million the relatively well-off group A and B officers (in which most of the clerical staff of the PSUs also come), count only 72,212 as against 131,841sweepers.

With the new politico-economic order emerging in the world, the grammar of the dalit liberation struggle is going to be totally different from that familiar to dalits. The onslaught of the adversarial forces is being felt world over by all the oppressed people and it would be folly for dalits not to feel a part of the latter. Their objective situation as a social block is not represented by the minuscule minority that managed to find themselves in the organised sectors of economy, but by the vast majority who are left behind in the villages or the numbers who toil in the unorganised sectors in towns and cities. They need the weaponry for battling out their salvation. This battle is to be waged simultaneously on two fronts, marked by the caste and class. These terms under segmented and sectarian usage came to bear an erroneous exclusivity. Since, Ambedkar still provides a better framework for their problems than any other, and since he commands an unchangeable place in their hearts, the weapons in his armoury needs dusting and sharpening. They will need a review for their effective application in the changing context and possibly, substantial supplementation and replenishment. Ambedkar, quite similar to Buddha in his own hands, needs redefinition. The folklore 'Ambedkar' needs to be replaced by the radical 'Ambedkar', who would inspire people to claim the whole world as theirs and not to beg for petty favours from the robbers. It is the responsibility of all those who are capable of seeing the reality, to contribute to this task. For, without such a redefinition, Ambedkar could be fossilised as god but would fail in the emancipation project; he might be raised to the highest pedestal by the vested interests but then he would be unable to reach out to where he is most needed; he would lose out to the parody of history.

3. REDEFINING AMBEDKAR

Ambedkar's thoughts are variously presented by scholars. Some tend to put them in familiar academic slots, viz.: social, political, economic, religious etc. The other method may be bracketed as biographical. The problem with the former is that it tends to discretise his thoughts within the artificial compartments of academic disciplines. The latter tends to be narrational, eulogical and scarcely analytical. Both of them are likely to miss out the underscoring vision and more so the futuristic dimension, which are essentially the attributes of the holistic conception.

Visions and Icons of Great Person

Every great person has a vision that impels all her/his works. Its discernibility may vary from case to case, generally being the function of the degree of turbulence around her/him, her/his relative position within the power structure in the given environment, her/his own equipment and conception of self-role. Marx, for instance, offers an articulate vision in clearest terms as he assumed the primary role of a philosopher to bring about revolutionary change, whereas Ambedkar had donned the mantle of mass-leadership in his primary role to spearhead the change; the degree of turbulence in the work domain of Marx had been minimal as he basically struggled in the realm of thought spanning complete human history whereas Ambedkar situated himself in the political turbulence that obtained in India as his strategy; Ambedkar's position in the power structure that bounded his work domain was certainly weak relative to Marx's. This is neither to undermine the role of Marx as the activist constantly trying out his philosophy in the realm of practice nor to belittle the problems he suffered in life. With regard to personal equipment, both Ambedkar as well as Marx, could be taken to be equally equipped to undertake their respective tasks that they had undertaken. Marx had started off with philosophy and adopted the class-consciousness of the proletariat quite unlike Ambedkar, in whose case it was his own consciousness - the consciousness of an untouchable built up through concrete experience that had propelled his philosophical search. Marx was well aware of his role in the revolutionary project, that he had to provide requisite tools and tackles for the working class for bringing about a change in the overall interest of humanity. But, Ambedkar was always loaded with anxiety as he had to strategize his way through the political maze around him, winning for dalits the maximum he could in a short span of time. In process, his role also underwent transformation with the expanse of the battleground. Inevitably, his thoughts and action always remained context-laden, polemical and pragmatically purposeful. It is therefore a relatively difficult task to discern a coherent vision underscoring the life work of Babsaheb Ambedkar.

It is a moot point as to what extent a great person, who is essentially anchored in her/his space and time, could transcend these barriers and be equally effective in a different situation. A great person basically is the product of prevailing social relations. It is a particular moment in history that reflects an acute demand for such a person. Depending upon her/his location in the social setting, s/he imparts her/his individual feature to the historical moments and movements in terms of working out specific means for resolving contradictions that engender them and releasing the forces of history in a specific direction. The masses whose cause she / he espouses throng around her/him in this process, depending upon the level of their collective consciousness. The longevity of the ideas a great person propounds in a historical setting depends upon the nature of contradictions, the size and expanse of problems and the time domain in which they are situated. Generally, the classes that share the vision and ideology of such persons tend to iconise them with specific attributes of their class choice, in an attempt to institutionalise the latter. In this process, they would de-contextise some of the ideas and proffer them as universal theorems, if they perceive a pay-off for themselves in the sphere hegemonised by them. This phenomenon becomes clear only over a long time horizon. For instance, the religious principles that were sprouted in the soil of certain specific social relations have basically blossomed in an alien soil with the help of the nutrients of class interests. Very broadly speaking, the trend of iconisation of great persons and the attempt of institutionalising their ideas is a gauge to assess the forces of status quo in the society.

Ambedkar: Commitment and Constraint

In the case of Babasaheb Ambedkar, iconisation was inevitable. The combination of factors like his high stature, his devotion to the cause of his people; the historical setting in which he lived, the low level of literacy and political consciousness in masses; and the vested interests of internal as well as external people have been its cause. The problem is not with iconisation as it is with its multiplicity. A question may be pertinently asked can Ambedkar be uniquely represented by a single icon? As Prof. Upendra Bakshi had outlined in one of his articles during the centenary year of his birth anniversary that there were many Ambedkars and had questioned as to which Ambedkar do we commemorate? When he said so, Prof. Bakshi was referring to different facets of Ambedkar's personality that could be virtually segregated. One can even periodise some of them. For example, the pre-1942 Ambedkar as a young, untouchable man endowed with highest scholastic distinctions, struggling within and without for the emancipation of his people is a grossly different personality than the Ambedkar as a member of the viceroy's Executive Council or the Ambedkar as the law minister in the Nehru cabinet in the post-independence India or the Ambedkar as the chairman of the drafting committee for the Indian Constitution or even the Ambedkar of still later years who had completely identified himself with Buddhism and in a way completely spiritualised himself.

What comes clearly however, from this review is that the changes in his outlook and role were essentially driven by his unstilted commitment to the cause of emancipation of oppressed humanity in general and dalits in particular. He might not have had appropriate methodological tools to deal with the problem at hand. With the equipment that basically belonged to a school of social engineers, he tried to dissect history. Paradoxically, he attempted to demolish the establishment with the very tools that were forged to serve the ruling classes. By training he did not have the facility to look at history as the continuum of human struggle with a certain inherent logic. He did use history as a repertoire of human episodes and attributed even logic to it but its source was externalised.

Non-Dialectical Solution: State and Religion

It appears that Babasaheb Ambedkar had really internalised the doctrine of momentariness (Anityatawad and later Kshanikwad) of Buddha and therefore even refused to care for consistency in his views and opinions. This doctrine states that every thing changes every moment, that things are constantly becoming. It follows that in this situation of flux not even mental processes could be static, they had essentially to match the dynamicity of the material world. He thus never hesitated in changing his thoughts or strategy as per the unfolding situation. Viewed another way, these changes can be understood in relation to foci of control. The degree of consistency in thought and action is generally inversely proportional to the distance of the subject from the foci of control of its surrounding. Ambedkar had nil or little control over his situation. He had to consistently create space for himself and strategize to influence the situation to his advantage. (The dynamics of the situation was propelled by the forces that were variously placed in the adversary camps.) The framework within which he conceived his struggle had exposed him to his lot to respond to this dynamics. The hallmark of Ambedkar's thoughts is the dynamic rationale, which he has consistently employed to comprehend situations and to strategize his response thereto. 'Ambedkar' therefore cannot be captured in static terms. His icon will have to represent the dynamism that he lived. Since, this is an infeasible proposition; we will have to discern the underscoring vision behind his works, the intransient essence of his entire mission to create a suitable icon. This icon, even if it does not resemble the familiar Ambedkar, alone could be the beacon of the dalit movement.

The concept of Anityawad in Buddhism essentially belongs to dialectics that has made Buddha an early dialectician philosopher. The dichotomy that creeps in can only be resolved by dialectical method. It may be questioned whether Ambedkar's method was dialectical. It appears that while he accepts constant becoming of things as the principle underscoring the universe, he faces a dilemma with respect to the conception of order in this State. It could be resolved dialectically in terms of systemic attribute of self-regulation - a characteristic of internal control. But the conventional conception of order, essentially a non-dialectical conception, leads to externalisation of control. Ambedkar, having experienced the brutal aspects of history and unbridled exploitation of man by man, appears in need of a control mechanism operating at two levels, viz., internal and external, so as to maintain the societal order in the desired State. His internal control mechanism is the moral code provided by the religion and the one for external control is the State. If this moral code is internalised by all individuals and in turn by society as the summation of the latter (as the liberal tradition held), society is expected to have an internal order. If however the baser instincts of some people or group of people defy this order, either as a result of conflicting codes they follow or for any other reason, then in such case the State will step in and restore the order. The will of the collective is supposed to be embodied in the State by the Constitution. It is therefore that Ambedkar has reservation in agreeing with Marx that 'religion was the opium of masses' or the 'State shall eventually wither away'. Ambedkar certainly did not know that the order could be the attribute of the system itself. It is only in the sixties that Cybernetics principles came to lime light that the complex probabilistic systems, which the social systems certainly are, do have the inherent capability of self-regulating and self-organising control.

Liberalism and Reformism

By upbringing and training Ambedkar was influenced by western liberalism. The openness and liberal values of the western society had struck him with pleasant surprise by his own admission. There is a reason to believe that he had studied Marxism. His first essay on caste reflects some amount of analytical orientation of Marxism. One of the subjects in his curriculum also happened to be related to Marxian socialism and his guide Prof. Seligman was well versed with the economic interpretation of history. However, as his later work reveals, Ambedkar reflected more closeness with the liberal tradition than Marxism. However, consciously he never identified himself with the Liberalism. Being aware of its pitfalls, he needed to declare that he was not a liberal reformist, although while having reservations with the postulations of Marxism he could never hide his attraction towards it.

The pitfall of his thinking emanates from his conception of the moral force of religion divorced from the material reality. He therefore hopes that without any bloodshed, the society based on liberty, equality and fraternity could be created. Of course as hypothesized above, he conceptualizes the constitutional State based on these principles. With this wishful thinking, he tends to ignore the fact that regardless of the pretensions of ruling classes, the impact of liberal governance in the multi-centric iniquitous society is bound to result in sustaining multi-centricity and inequality. This liberalism rather promotes politics of casteism and communalism, schism among dalits, their use in political power games, subversion of their real problems and protects the interests of the few rich. It was a kind of contradiction in terms to assume that liberal democracy, which is actually the manifestation of the political power of the bourgeois, will do justice to the paupers. It might appear to extend certain concessions to the weaker sections, but its real motive is to maintain the existing rule of the ruling classes. Liberal democracy might appear better than the decadent Hindu caste system but it is incapable of bringing any real change in favor of dalits. It muffles the tension of the exploitative system and kills the revolutionary motivation of its victims.

Redefinition Project

Many of the constructs employed by Babasaheb Ambedkar in his working have a qualified meaning. Firstly, they are not absolute as they appear. They are the derivatives of his thought process, the source of which could be traced to his basic objective of annihilation of castes and creating a society based on equality, liberty and fraternity. Even these three principles that he held so dear to his heart, bear very different meaning from the familiar ones associated with the French Revolution. He said he had them from Buddha. What Buddha said also is to be understood from his interpretation, which could be as different from the accepted version as to be disproved by the Buddhist church. His Buddha and His Dhamma, for instance, had faced this kind of disapproval initially from many Buddhists. Understanding Ambedkar thus essentially demands extra consideration and care about the specific meanings of the constructs and concepts he uses. The lack of it has already caused much misunderstanding among many people. It is one thing to have a clear understanding of what he said or meant but quite another to extrapolate it to something congruent to his basic objective or vision that may be useable in shaping the future movement. Quite like Marx had said of philosophy, it could be said that the issue is not to understand Ambedkar as he is but to possibly think of him as a weapon in the struggle to which he devoted his life. The redefinition referred to here will have to essentially address both these issues. From the viewpoint of one seeking a revolutionary change, there are indeed many dimensions on which Ambedkar calls for critical interpretation. Many of the concepts that seem to act as the props for his formulations are rooted in the reactionary camp. Paradoxically, he brings them to work for his emancipatory project, which potentially is no less than a revolution. Predominant among these concepts are identified as State, religion, liberal democracy, constitutionalism, revolution, socialism, violence and Marxism, that some way or the other have been the cause of misunderstandings about him.

It is important to appreciate that Ambedkar employed the search process that is essentially rational and the underlying objective undoubtedly radical. There could be flaws in the specific design or the application of the search process, depending upon the State of his knowledge and complexity of the situation to which it is applied. Besides this, the end result depends upon the repertoire of alternatives used for the search. What it means is that the specific method, thought or action of Ambedkar may constitute the historical facts but they cannot be taken in their face value if one wants to comprehend the ideological aspects of Ambedkar. In his usage of the above concepts for instance he does not always exercise the academic rigour. Besides the reason that much of his usage was addressed to the un-academic lot, most of the times he tended to impart his own meanings to the terms he used. With the changed contexts or with the change in information, he readily changed his opinions. For, hypothetically speaking, if Ambedkar had lived longer he would have certainly changed his views, looking at more information available or experiencing the undesired aftermath of some of his own beliefs and opinions. Had he not disowned the Constitution, which he had so laboriously written and so forcefully defended, saying that he was used as the hack to write it? Whatever he had done had several limitations. He never hesitated to change his opinion or stand if he was convinced that it was right. The redefinition project proposed here, in a way, is something, which he has done himself, all his life and would have continued doing if he had been alive. It is essentially something in the nature of continuing his unfinished task.

The methodological aspects of this exercise consists in the process of conceptualisation of the core vision and ideological proclivities of Ambedkar through the analytical study of his life within its contextual parameters, oriented towards capturing its intransient content. It should reflect the basic purpose, that is, to see whether and how he could catalyse the emancipatory movement of dalits and in turn democratise the Indian society. This process may not be free from bias. The bias could be in favour of the change craved for by the have-nots, not of the ruling classes that has necessarily been colouring the history so far. It cannot escape the viewpoint of the latter. The viewpoint is rather embodied in the basic intention to forge Ambedkar as the weapon for the future struggles of dalits. The process of conceptualisation may be formalised by drawing out multiple ideological patterns based upon the constituent parameters of the hypothesised vision and testing them with the facts in their macro and micro settings. The test results could be used to refine the definition of the parameters and repeating the exercise until they can no more be improved. The iterative process will eliminate the tactic-based episodes and increasingly highlight the intransient dimensions. The radicalisation consists in derivation of the programme from these dimensions with any scientific methodology.

It is not possible to demonstrate adoption of this methodology within the space of this paper. The following discussion therefore directly deals with the salient dimensions of Ambedkar's life in order to capture its intransient essence.

4. 'AMBEDKAR' FOR THE MOVEMENT OF DALITS

'Ambedkar' for the dalit movement, first of all, should be shorn of all the sectarian outlook that unfortunately came to be associated with him. He was an iconoclast and therefore should inspire us to break such icons that are imbued with this outlook. Dalits have to demolish all the handiwork of the reactionaries and vested interests. The project of redefinition of Ambedkar should liberate him from the dens of the ruling class and bring him back to the huts in slums and villages where he rightly belongs.

The greatest thing about Ambedkar is his consistent anti-dogmatic stance. He never accepted any thing in name of authority. He hated humbug of every kind. He always approached problems with a student's sincerity and researcher's intellectual honesty. He gave a vision that even the ideologies are bound by the tenet of impermanence and no body should claim them validity beyond their times. His followers therefore can assume absolute liberty to think through things as per their own experience in changing times.

Here, we can discuss certain issues, clarity on which may contribute to this task.

'Ambedkar' against Exploitation

The underscoring vision in Ambedkar's thought and action is to be found in his yearning for the end of all kinds of exploitation. Whenever and wherever he smelt exploitation, he raised his voice against it. The caste system that subjugated more than one fifth of the population to levels worse than animals' for more than two millennia and which represented institutionalisation of the most heinous inequality by the Hindu religion as ordained by its gods, became the prime target of his life. He attacked it from the standpoint of its victims - the untouchables. He waged many battles; initially targeting the citadels of Brahminism - the custodian of the Hindu religious code, and later politicised the battle, realising the ineffectiveness of the former. He did not let this objective out of sight even for a moment and worked incessantly for its achievement. This Herculean task almost completely overshadows the fact that his struggles extend well beyond the caste struggles and rather encompass all other forms of exploitation.

Even the credit for struggling against untouchability was reluctantly granted to him by the establishment which had belittled him initially as merely a leader of his own caste - Mahar. This prejudicial treatment of Ambedkar could itself be taken as a measure of the severity of the problematic of caste. The facts are clear today that not only was his struggle directed towards the emancipation of all the untouchables but also towards annihilation of the entire caste system. It was basically against the systemic exploitation that ran unabated for centuries. The protest against this inhuman system could be articulated only in a concrete situation, not in a vacuum. He did not theorise the struggle on a hypothetical plane. He built it on the basis of real problems in a concrete situation. Unlike many cases, the motive force for his life mission was provided by his experience itself. Although he pitched his tents against Brahminism, he never bore any enmity against the Brahmins or identified any one for his friend or foe by caste. The Bahishkrit Hitkarini Sabha that was the launch vehicle of his movement had majority from the forward caste people in its executive body. Even later, this intention of having a non-caste base for the organisation could be consistently seen in his movement, be it the Mahad struggle or the Indian Labour Party. He was perceptive enough to say that the Brahminism could exist in all the castes including the untouchables, for that was the essence of the casteism. It is tragic to find his legacy being monopolised today by only the scheduled castes.

Although, he considered the magnitude of the problem of emancipation of dalits is such as to warrant his sole attention, he did take cudgels for other oppressed entities like workers, peasants and women. At one occasion in response to the accusation that he did not care for the tribals, he had to squarely admit the fact that he considered the problem at hand big enough to outlast his life and provokedly put that he never claimed to fight for whole humanity. Such instances though disturbing enough could be understood within their specific context. While dealing with the socio-economic depravation of dalits, he comprehensively exposed certain systemic dimensions that help perpetuate exploitation. For instance, he was well aware of the capitalist and imperialist oppression besides the decadent feudalism within which domain his problem lay.

Capitalism

During the colonial British regime, capitalism started taking root in India with the collaboration of Indian mercantile capital and British capital. Unlike Europe, it did not have to battle against feudalism; rather it was implanted on the trunk of the latter in India. As a result, even in the capitalist institutions in the cities, caste discrimination simultaneously existed. Ambedkar was quite aware of the exploitative potential of capital and hence he had declared capitalism and Brahminism as the twin enemy of his movement. Capitalism was in an infantile stage then but Brahminism encompassed the phases of slavery, feudalism and extended its tentacles as we see to the phase of imperialism. Moreover, he noted the reactionary compradore character of rising capitalism in the contemporary sectors of the economy and the inhuman exploitation of workers that it unleashed. His, Indian Labour Party (ILP) was an attempt to take up the question of capitalist exploitation, as well as to combine the struggle on both caste and class basis. Various workers' problems were taken up by the ILP, the leadership of combined strike of the mill workers, parliamentary fight for the workers' interest in relation to the Industrial Disputes Act, and various legal reforms that were brought about while he was in the Executive Council of the Viceroy, can be the examples of his concern for workers' exploitation. It cannot be denied that his approach to these contemporary problems was closer to that of the Fabian socialists with whom he was more familiar. But, it was a model adopted out of familiarity and pragmatism, a matter of strategy, never thought out on an ideological plane to be a theoretical plank. Although, there cannot be any doubt that he stood against capitalism, he could not articulate a sound theoretical basis for doing so. Resultantly, his efforts remained constricted with a short view of workers' welfare but could not provide them a vision of their liberation.

Imperialism

Ambedkar's attitude towards imperialism has been projected in a distorted manner right from the beginning, mainly because he refused to take part in the freedom struggle or opposed Gandhi who for certain category of ignoramuses was the anti-imperialism personified. He strategically sought to maintain neutrality vis-à-vis the colonial State. As per him, it would not be possible for the resourceless dalits to fight its mighty foes all together. He did not want to dissipate and squander his extremely limited resources on several fronts. He however knew the basic exploitative character of the colonial regime. At several occasions, he burst out saying that British imperialism and Indian feudalism were the two leaches that clung to Indian people. (BB, 58 (8)). However, there was a fundamental difference between his and others' viewpoint. For instance, he did not approve equating opposition to imperialism with opposing the British. He noted that the opposition to imperialism couldn't be effective until its supporters within the country are left untouched. The then leader of the Communist Party of India - Manabendranath Roy once met him at his residence and during discussions insisted that destruction of imperialism had to be the first and foremost objective of Indian politics. Ambedkar's response to him summarised his outlook towards this problem. He replied to Roy in explicit terms that without struggling against the landlords, mill owners, moneylenders - the friends of imperialism within the country, it was not possible to wage an effective fight against imperialism. It may be a matter of research but a priori his anti-imperialist attitude pervades even his writings as a student.

The validation of his stand comes from an entirely unrelated corner and nearly half a century later. Suniti Kumar Ghosh, (1985 and 1995) in his books has shown in great detail how the Congress representing landlords and capitalists had played a compradore role to serve the interest of imperialism during the so-called freedom struggle and how even after the transfer of power in 1947 the grip of imperialism instead of weakening became stronger. Does it not indicate that he was more correct than any of his contemporary politicians? The ones who biasedly wish to pronounce their half baked verdict that Ambedkar was a stooge of British merely on the basis of his acceptance of membership of Viceroy's Executive Council or talking to the Simon Commission, not only display their ignorance of history but also their casteist fangs. They ought to rethink the comparison between Ambedkar who, even being apparently a part of the imperialist apparatus was perhaps striking at its roots by empowering the people and many others, so called nationalists, who after wearing the mask of anti-imperialism were indirectly strengthening its pillars.

In relation to British rule, Ambedkar basically makes two points. The first is that he questions the so-called freedom struggle launched under the leadership of Congress as an anti-imperialist struggle. He contended that the Congress basically represented the class of feudal lords and the urban capitalists - the twosome exploiters of Indian masses. Although, it succeeded through the charismatic leadership of Gandhi in galvanising masses in its support, it essentially relied on bargaining with the colonial rulers for securing itself more share of power. It always throttled the mass spontaneity as in the case of 1942-uprisings and actively opposed the genuine anti-imperialist struggles of the revolutionaries like Bhagat Singh. Ambedkar reflects the understanding of true character of the Congress in his own way, when he says that if Congress was fighting a real anti-imperialist war, he would whole heartedly support it. The rhetoric of such statement apart, for he never appears to even take a note of other truly anti-imperialist struggles like the one referred to above, it is enough to reveal his attitude towards imperialism and understanding of the class character of the Congress. He knew that the class character of the Congress would not permit it to don this role in reality. Ambedkar could see through the anti-imperialist masks the real fangs of an exploiter of masses. He thus not only saw no point in siding with this more real exploiter of people than perhaps the colonial rulers, but also did not hesitate to openly oppose it when it came in the way of dalit liberation. He smelt rot in all such struggles that refused to notice existence of inhuman exploitation of some of their own people within their precincts and tended to over-externalise their woes. Here lay his second point when he raised a question of Hindu imperialism perpetrated through its caste system that was certainly seen as more vicious by its victims than the British rule. It may be pertinent to ask of those who raise the issue of Ambedkar's attitude and conduct towards imperialism, to answer as to why the problem of untouchability or caste system that reduced its one -fifth of the population to sub-human levels did not find a mere mention in the lofty discussions of freedom struggle that pre-dated Ambedkar's raising it. The anti-imperialist aspiration also could be seen in the context of the class/caste division in the society. The battle for the lost kingdom waged by the vanquished lords also could be camouflaged as an anti-imperialist struggle and at the same time the genuine peoples' anti-imperialist aspiration manifested in the form of say anti-feudal struggle could be condemned as the pro-imperialism, merely because it directed its gun towards the props of the imperialism. The real anti-imperialist aspirations belong to the masses of people the manifestation of which is possible only through the peoples' war. Whatever anti-imperialist struggle people waged were soon hijacked by the phoney war whose real intent was to extract political power to native ruling classes. While the scenes of anti-British struggles were being enacted for the 'mother' India of exploiters, Ambedkar busied himself to liberate the other India- the India of the exploited and oppressed.

Oppression of Women

Besides these mainstream forms of exploitation even the subaltern forms like women's exploitation, could not escape his agenda. He viewed them as the most oppressed of all. His approach to the problems was typically that of a liberal democrat constitutionalist. This certainly constrained his articulation of this problem as in many others. This issue will have to be seriously rethought by dalits under the redefinition project. But suffice here to say that at any opportunity, he raised his voice against women's discriminatory situation in the society. His basic law of social engineering was that the social revolutions must always begin from the standpoint of the most oppressed or the ones on the lowest rung of the society. Right from the days of Mook Nayak and Bahiskrit Bharat, he appears to take cudgels for women. He always involved women in his struggles and tended to give them vanguard positions. For example, about 500 women had marched at the head of the historical procession at Mahad to assert the untouchables' right to drink water from the public tank. He was immensely pained to see the permanent denial of education and religious rights to women ordained in the Shastras of the Hinduism (e.g. Manusmriti). His democratic consciousness never reconciled with any thing lesser than the equality of men and women though its expression was acutely constrained perhaps by his anxieties about the possibilities, so much so that it might even be mistaken as the male centric tactic. While he asked women to be good mothers so as to shape up their son or to be good wives to their husbands or be a carrier of community's cultural baggage, he did struggle for their equal rights as in the case of Hindu Code Bill. He described sacramental marriages (Mathew, 1991) as polygamy for men and perpetual slavery for women because under no circumstances within that system the latter would get liberty from their husbands, however bad or undesirable they may be. He insisted that women should have the freedom to break this contract.

Constitution: An Exercise in Liberal Democracy

Although, Ambedkar was conscious of the limitations of liberal democracy in the emancipatory project he had undertaken and at times had even declared that he was not a liberal democrat, for many reasons he could not escape its clutches completely. He could not be unaware that liberal democracy basically was born as the ruling class ideology in 19th century Europe. It takes individuals and their groups as basically selfish units as its premise. It holds that individuals and social groups progress only through competition. It had however to take cognizance of weaker sections in the society, paradoxically in a large number, who cannot enter this competition openly and hence could be potentially be spoilers of the game. The French Revolution had demonstrated this potential in ample measure. As the Whigs in the English Liberal party had thought "the best way to ward off revolution was to adopt a liberal generous attitude toward the lower classes. The upper classes should make concessions gracefully and in good time, and not wait until the lower classes are roused to exact them. If a revolution happens, it doesn't show that the people are bad and should have been repressed more thoroughly... repression is self-defeating. What it shows is that the upper classes were not wise enough and self-confident enough to make reasonable concessions in good time."It accommodates the relatively weaker sections by extending them some concessions or aids for some time, basically to equip them for this universal competition. The State performs the role of a referee in this competition. This State is supposed to be run by the representatives of all the social groups. Notwithstanding his awareness of the above facts, Ambedkar's schema does reflect the expectation that the State would perform the role of independent referee.

The influence of liberalism on Ambedkar is more pronounced after he accepted the role of the chairman of the drafting committee for the Indian Constitution in collaboration with the Congress. In the light of his own proposals of State socialism submitted to the Constituent Assembly on behalf of the Scheduled Caste Federation, this ideological somersault could only be understood as the situational compulsions acting upon him. Just before entering the Constituent Assembly he had experienced the bitter phase of political oblivion and had seen from closer angles the prospect of his life's mission ending without any result. He had a dire need to enter the Constituent Assembly and include certain provisions for his people in the future Constitution. When Congress offered him this role, he had to perform it within bounds in exchange for his life's ambition to provide for his people. The compulsions are too obvious to be ignored. His States and Minorities envisages most of the productive assets to be the State property. This was against the principle of liberal democracy. The liberal theory of property right from the days of John Locke and Thomas Hobbes in the 17th century stressed on private property and on the duty of the government to protect it. It was the Congress liberalism that he had to submit to and had to plead for property rights that were considered pivotal within the Constitution. The same holds true for the centralization of power and certain basic rights, which were congenial to the capitalist class. He had to accept all such provisions that considered the existing power structure from status quo viewpoint instead of transformation. He was compelled to accommodate the principles of social democracy, which he has been regarding as the basic soul into the ineffective chapter of the directive principles of the constitution. He himself had to accept the same parliamentary executive that he had always misgivings about as being dangerous to the life and freedom of ex-untouchables.

He could not be unaware of the fact that from the viewpoint of the oppressed and dalits, except for the reservations, the Constitution was not making any material difference. On the contrary, it had made all the arrangements for letting all the benefits of power stay with the wealthy and traditional elite classes while dangling the carrot of Constitutional safeguards and reservations for dalits and the oppressed people. The existing socio-economic structure was kept in tact in the Constitution underneath the western democracy which proclaimed the principle of'one vote, one value' in political arena. Ambedkar could not hide his discomfort at this dichotomy and had to burst out in his famous warning that if equality in the socio-economic sphere is not achieved within a reasonable time, the disadvantaged people would blast off the structure of the political democracy. He was aware of the fallacy in the assumption that political democracy would catalyze the social revolution through universal franchise and periodic elections. He had himself tested the bitter fruits of this process through the electoral defeats. Politics run on the principles of free market economy can never entail equality. The slogans like socialism, social justice, equality etc. were merely masks to fool the people. The grammar of the game of electoral politics foreordained the politicians serving the interests of big landlords, capitalists and compradore bourgeoisie. They could not survive free political competition without the latter's blessings. Ambedkar should have been aware that liberal values and liberal institutions are incapable of arresting the monopolistic hold of the moneyed classes on political power.

On Revolution

Revolution, on the face of it, appears to be an anathema to Ambedkar who seems to dread it and instead advocates reforms. But it would be disaster to take it at face value. For, like many other terms, his usage of the term 'revolution' does not bear the same meaning as is in vogue, particularly in Marxist circles. What Ambedkar seems to detest in revolution is the violence. At many places he tends to equate rebellion, revolution and revolt with violence. He also seems to disagree with the method of insurrection. He thought that without mass consciousness being ripe enough for revolutionary change, insurrectionary methods would not succeed. Moreover, he appears to be sceptical of the justness of revolutions as they invariably represent the triumph of the collective over the individual. It may be attributed to the influence of liberal democracy in which he got his indoctrination in his formative days. Liberal democracy always put an individual on a high pedestal and considered it precious. His concern for the individual is not again doctrinaire but emanates from the value that any and every human being is precious and the belief that alone can act as the best guarantee against the collective tyranny and totalitarian excesses any time. In the context of the collapse of erstwhile Soviet block, where the totalitarian states that came into being in the name of dictatorship of proletariat and played havoc with people, this human-centric value assumes importance. One needs to be however reminded that even the values do need to have some material bases. They do not fall from sky. The contradiction between collective and individual has thus to be resolved in the concrete situation. As for Ambedkar, apart from this scepticism, he does not seem to have any dispute with the general aim and object of revolution.

Revolution, inasmuch as it seeks to bring about a fundamental change in the social relations in the society, will always be opposed by the forces of status quo, whose material interests are directly threatened by this change. In corollary, it becomes imperative for the forces of revolution to overcome this resistance whatever be the means. Whereas, the antagonist camp will always project codes of ethics and morality for their tactical defence in face of the onslaught of revolution, the revolutionaries discard them as decadent; for them revolution itself represents the highest value. Being the upsurge of the suppressed ones, revolutions do have a tendency to be bloody, but it is always in response to the resistance of its opponents. Therefore it is a representation only by the vested interest to associate violence or moral turpitude with revolutions. On the contrary, it would be more logical to say about the revolutionaries that being propelled by an external motivation to deliver mankind from the existing traps at the risk of their own lives; they cannot be bloodthirsty people. The revolutionary violence is almost an inevitability that arises at the instance of the oppressors. In that sense Marx called "violence as the midwife of history", emphasising its inevitability. It is the inevitability that marks the compulsion of the vast majority of people to resist the anti-revolutionary violence of the minority. The pre-requisite here is that the revolution truly represents the majority consciousness. If it does not, then the violence of the few exercised with howsoever a lofty objective could transform into its anti-thesis, fortifying itself against the majority will. In this sense and insofar as the recent history showed the scepticism that revolutions trample upon individual's rights therefore cannot be dismissed as baseless.

Historically, revolution is the process of identifying and destroying the obstacles in the existing order to take productive forces to the qualitatively next higher level, for the overall progress of human race. The progress achieved by mankind so far is basically due to the qualitative transformation from quantitative continuum that characterises revolutions. The qualitative transformations always need concentrated inputs, akin to latent heat in the case of phase transformation of water. In social transformation it takes the form of revolutionary energy that in turn may manifest into violence. Ambedkar does not neglect the necessity of violence. As he himself said that if dalits wanted to be effective they would need the canons. It is erroneous to construe that his opposition to violence was idealistic or doctrinaire. Violence was not a taboo for him; it could be practised when it was absolutely necessary. Even his mentor Buddha, who is respected as the greatest apostle of non-violence had the same pragmatic approach towards violence. Ambedkar was not obsessed either with the idea of non-violence or the value of individualism professed by the classical school of liberal democracy. His reservations were against the possibility of the cunning of a few over-riding the will of majority as had happened in the case of caste institution. He would hate to see any thing like caste getting institutionalised again. In his scheme of things he therefore was not ready to compromise the value of democracy, the will of majority of people, whatever may be the end.

Ambedkar did not juxtapose reform against revolution, as many people tend to do. He does not reflect comprehension of technicality of dialectical materialism in his usage of these terms. Often his revolution is the violent overthrow of the existing rule and establishment of the new rule. Likewise, he does not seem to mean that reforms will not entail a qualitative transformation. What he certainly means by revolution is the change brought about in a 'big bang' manner. Notwithstanding what Ambedkar said about his own work, revolution does not always entail a 'big bang'; it is not a point concept as mistakenly regarded in common parlance, but a line concept. Mao's Great Proletarian Cultural Revolution may be a good example of this. There could be many bits of work, which contributes to taking society to a qualitatively higher rung in the ladder of progress that qualify to be the revolutionary work. The qualitative change itself occurs over a discrete time horizon and not a moment. The moment that marks out transformation of power and looks like a 'big bang', alone is not the revolution. The particular phase of history puts constraints on the kind of changes that can be conceived in its womb. Some one dreaming of a socialist revolution in the slave society would only at best be a daydreamer; a romanticist but he cannot be a revolutionary. Likewise, certain phase of history demands a lot of quantitative preparation before a revolutionary change can be planned for. Ambedkar largely reflects these kinds of concerns while dealing with the issue of revolution. He did not see Indian situation ripe enough for any revolutionary change. Any change without resolution of the caste question, according to him, would not only be detrimental to dalits but also be an extremely short-lived.

The importance of Ambedkar's work can be gauged in relation to contemporary social situation and its transitional social context. Indian society was ridden with a peculiar brand of feudalism, the most prominent feature of which was caste. Caste had incapacitated over 15 per cent of its population and maintained them at the sub-human level. The large part of the balance population also suffered the degradation in a varying degree. This decadent institution had far outlived its minimal utility and as a result for centuries kept Indian society in a fossilised form. It served the material needs of a handful of people but all perceived varying stakes in the system on account of its hierarchical structure and faithfully practised it because they internalised it as their Dharma ordained by none other than God. The possible exception in generic terms were dalits who were placed at the lowest rung of the caste ladder and had hardly anything to their share. However, in particular terms only a few castes from the dalit castes, who did not have any specific caste profession and hence little stake in the system and consequently who as the general workmen of villages had better exposure to the changing urban life than any one else came out of the hegemony of Brahmins to articulate the challenge to the system. The hierarchy among dalits however prevented them to come together and consequently this challenge had to be articulated caste by caste. Capitalism that took root in India in big cities also had struck compromise with the caste institution like its harbingers, the British imperialism. It was an arduous task, as it still is, to conceive a model for this struggle and still more difficult to build. During the colonial times for various reasons these struggles had germinated largely in Maharashtra and Southern states where the social structure reflected sharper polarisation between dalits and balance society. Ambedkar's advent in the Indian socio-political scene marked their zenith. It articulated its attack on Brahminism and capitalism that accepted its alliance, focused its organisation on dalits and gave a clarion call for annihilation of castes for achieving the ultimate aim of society based on Liberty, Equality and Fraternity to provide wider umbrella for all progressive forces to work. It reflects the distinct historical need to democratise Indian society without which it was bound to suffer constriction of its productive forces. This work had to have large content in the socio-cultural realm; it is a credit to Ambedkar's acumen that he gave it a political dimension. It had to be approached as reform. Ambedkar clearly found the talks of communist revolution as out of phase with the history although he never fully accepted the tenets of historical materialism as he thought it negatived human ingenuity and carried it through a pre-determined channel. He insisted that India did not provide congenial soil for germination of class-consciousness because of castes. Their annihilation therefore constituted the first task in the revolutionary agenda. It is unfortunate that many communist revolutionaries still parrot the same characterisation of his work as in years back their predecessors proclaimed using the spoon fed theories from the West. One day it is hoped that the contributions of all the caste struggles to democratisation of Indian society would be restored as a native revolutionary heritage by these well meaning people. Till then it will always sound puerile to pigeonhole the historical work as reform or revolution merely on the basis of syntax and not the content. However, it is much more unfortunate for Ambedkarite dalits to deny themselves the credit for this historical contributions by dissociating from the revolutionary agenda, mistakenly thinking that it something alien to them. Effectively, not only they are denying themselves a historical opportunity to contribute to revolution but also delaying their own emancipation.

Dalits have to rethink their position vis a vis revolution. Ambedkar's dream of a society based on liberty, equality and fraternity cannot be realised except through revolution. They will have to understand Ambedkar's life and mission only from this perspective. His contribution to Indian revolution lies in the fact that he tried to comprehend Indian reality independently and tried to contribute to the resolution of its contradictions in his own way. Indian history held out the gauntlet of fossilised Indian feudalism for so long to the Indian revolutionaries but every one conveniently wished it away, initially as a superstructural matter that would disappear automatically when the material base is revolutionised and now after seven decades as a problem belonging to both structure and super-structure, that could be solved through revolutionary practice. It still lacks the clarity and courage to hold the bull by horn. Ambedkar did not confuse issues, he saw clearly that the annihilation of caste will have to be consciously worked for before taking up any revolutionary project. He went beyond and found out the institutional base of castes in the Indian village whose economic support lay in the land-relations and caste division of labour. But, unlike many communists who still use the stereotype of land reform - a slogan of land to the tiller as the only revolutionary programme, he did not hamper on it because he knew that firstly it was economically impossible to satisfy the land hunger of the landless in the country, secondly the likely transformation of landless to a marginal farmer through land reforms was unlikely to solve the problems of dalits and thirdly, as the later empirical data showed, contrary to expectations the land reforms could aggravate the problem of caste. Instead, he proposed nationalisation of land and co-operativisation of farming. He realised the necessity of detaching substantial village population from land and absorbing it into the industrial sector that was to be mainly under State sector. Even in retrospect, these points could have constituted a viable agenda for democratic revolution. As one naxalite scholar - (Ashok Kumar, 1995) perceptively puts it, for having independently seen the question of annihilation of castes linked with the question of land one could unhesitatingly call Ambedkar as the torchbearer of the people's democratic revolution.

'Ambedkar' as the Radical Thinker

Dalits are never tired of projecting Ambedkar as the greatest of all the leaders. That unfortunately smacks of sectarian attitude and of their blind devotion to him. They need to understand that the measure of greatness of any person could only be her / his contribution to better the human situation, in terms of correct understanding of its ailment and contribution to cure it. What Ambedkar did could be seen in relation to the broad five currents in Indian politics of his times:

  • The Reformists current that wanted to bring about development on the western pattern, possibly with the support of British imperialism,
  • Congress, that represented Indian capital and which demanded self-rule under the domination of British imperialism,
  • The Terrorist Nationalists who had taken up arms in their fight for freedom against British imperialism,
  • The Communists who were trying to implant Bolshevik revolution in India, and
  • The Muslim League which opened up a separatist front of Muslims.

All of them scarcely reflected an understanding of the Indian situation. For instance, none showed even a cursory concern about the problems of one fourth of their countrymen who were forced to live worse than animals as ordained by their decadent religion. It was indeed surprising that although all craved for self-rule from the British, none concerned with the caste-system which basically was responsible in pushing the country repeatedly into slavery. None seemed to attempt an objective analysis of either the history or the present of this country. It could circumstantially be said that their motivations came from their narrow class-caste interests. These movements were motivated by the desire of an abstract freedom for country and a refusal to see the concrete slavery of their own people. Granted that the problems before the country were really intricate, still no one would dare say that the need for democratisation was in anyway subordinate. The real people's movement in the country was required to wage simultaneous war against imperialism, internal compradore bourgeoisie, landlords and Brahminism. It was only Ambedkar who clearly indicated this requirement. In this light, he was certainly ahead of all others. His own bitter experiences with untouchability had stood him in good stead in seeing this more clearly than any other. He strove to build his movement along this understanding but unfortunately it was neither in his power to deal comprehensively with all the issues, nor was there an ideological and programmatic clarity required therefor. He inevitably had to focus his attention on dalits who were the worst victims of this multi-faceted oppression. It was the misfortune of Indian history that this struggle progressed in a constricted manner and eventually got dissolved into regressive statist politics. It reflected both the limitation of Ambedkar as well the situational compulsion on him.

The anti-caste movements before Ambedkar were mainly welfare oriented. Some wanted a higher rank for their own caste in the caste hierarchy and some taking the inferior culture of their caste to be the reason for their suffering, aimed at improving the same. Mahatma Phuley's movement was an exception to this trend insofar as it attempted to unite the Shudra and Ati-Shudra castes against the exploitation by the parasitic castes of Shetjis (capitalists) and Bhatjis (priests). While Ambedkar accepted the lineage/inheritance of this movement and held Phuley in greatest esteem as his one of the three Gurus, he went beyond to declare annihilation of caste to be the object of his movement in the direction of the goal of 'liberty, equality and fraternity'. In the historical context it certainly was a radical step. He rightly diagnosed that the caste system is basically sustained by the peculiar economic constitution of the Indian village of which the land relations were the main features. Towards breaking this link he toyed with an idea of separate settlement for dalits at one time and at another exhorted them to leave villages for cities. He had clearly understood that castes stood on multiple props, viz., the religio-cultural relations, feudal relations in village setting of which land relations constituted the crux and the socio-political nexus with the State. Annihilation of castes thus needed destruction of all of them. He soon realised the necessity of political power for this multi-fronged attack. Even to bring about the residual change in the belief system either through the cultural or religious route, he stressed the necessity of political power. In this way, for the first time he brought the problem of untouchability and caste out of the confines of culture to the political agenda.

Unfortunately, this political agenda got lost into the maze of parliamentary politics that soon became be-all-end-all with dalit leaders. Even during Ambedkar's times the economic aspects of the problem remained largely untouched giving the impression to his followers as though they did not count. In the overall context it can be seen that they could not be as easily dealt with as the religio-cultural and political aspects of the problem. Moreover, it meant direct confrontation with the State for which Ambedkar was certainly not prepared. Alternately, the feudal relations in villages could be destroyed only if the private ownership of land is abolished and co-operativisation of farming is introduced. He thought, this structural change could be effected through the Constitution. It was a folly that he would soon realise when even as the 'chief architect' of the Constitution he failed so much as to bring this point on the agenda of the Constituent Assembly.

Conception of an Ideal

Babasaheb Ambedkar envisioned his ideal in the famous three principles: liberty, equality and fraternity. They were the basis for the ideal society of his conception. (BAWS, 1/57). He denied that he had adopted them from the French Revolution. He said he had derived them from the teachings of Buddha. These principles were the clarion call of the French Revolution but later became the ideological props of the liberal bourgeoisie in Europe. Since Marx had ridiculed these principles as the fantasy of the bourgeois society, many people tended to stereotype Ambedkar as the petty-bourgeois liberal democrat. As according to Ambedkar the source of these principles is different from the French Revolution, familiar to Marx, there is a prima facie scope to argue that Marx's ridicule does not apply to him. His conception of these principles is indeed substantially different from that associated with the liberal bourgeoisie. Actually, what Marx refers to are the slogans of liberty and equality of the bourgeois parliamentary democracy. There,'liberty' is the liberty to contract and 'equality' refers to equality in market. Ambedkar insists that the conception of the ideal society ought to have them all the three together. Absence of any would not be acceptable to him. The ideal society of his dream could only be seen within a kind of spiritual frame. It would be interesting to compare this society with the communist society of Marx's conception. Marx reached his inference following the dialectical track of historical materialism. In Ambedkar' case it was just his vision. Inevitably, he had to attribute the origin of them to some spiritual source. For Ambedkar they meant to denote the State of society sans exploitation and with an emotive ambience of fellow feeling. It was beyond him to describe this State further in concrete terms and much so to indicate the forms of struggle to reach it. Known for his obsession with pragmatism and belief that any definitive laws could not bind the flow of human history, he would avoid the speculative construction of this distant stage of human society. Not even Marx could describe what his dream communist society would be like beyond that it would be freed of the familiar contradictions. It essentially reflected a contradiction between human desire and material reality. It would be disaster to derive the meaning of this ideal State of Ambedkar's conception from what he did. He left that to posterity to decide as per their circumstances. But, rationally there could be little doubt that the vision of Ambedkar can only be realised in the communist society of Marx's conception where most (not all) of the contradictions in human society would have been resolved.

Dalits ought to internalise this vision and strive for its realisation. Ambedkar had a radical enough interpretation of his principles of liberty, equality and fraternity so as to feel inadequacy even in Marxism. He said that Marxism supported only equality (BAWS, 3/462). He was in need of a body of thought that would give equal importance to all these three principles. He met it with a convenient conceptualisation of religion. It is paradoxical that a person who is rational enough not to bind the posterity with his vision volitionally binds himself with what is said more than 25 centuries before. It is natural to find ideals better articulated in spiritual spheres but it is equally true that these dream worlds are incapable to provide any clue for their realisation on the earth except for their pet prescription to ignore the material reality and imagine it happened in the mind. They run away from the fact that the evil humans suffer from are the attributes of the divisions in human society, and their abolition essentially calls for struggles by the sufferers against those who perpetrate sufferings. Howsoever, inherently rational the religion may be or radical its interpretation may be it cannot fully escape these limitations. It can be seen in relation to Buddhism handed down by Babasaheb Ambedkar with his radical interpretation. Notwithstanding the familiar quibbling around the Dhamma and Dhamma among dalits, what remained of Buddhism with them is what would happen to any religion. It is a different question whether Marxism embodied Ambedkar's ideals or not but it is certain that they are neither realisable neither through any kind of constitutional acrobatics nor through any religious practice.

State

Ambedkar's conception of State reflects some amount of autonomy from the hegemony of the ruling classes. It is why he expected it to act as per the constitutional structure and endeavoured to incorporate the pro-dalit bias into the Constitution. He must have realised the true nature of it, the boundaries of the autonomy and basic class bias of the State, when he actually reached not only the Constituent Assembly but also became the chairman of its Drafting Committee. In his anxiety to secure some provisions in favour of dalits, he accepted to be the 'hack' to write what was acceptable to the ruling caste-class representatives. He must have thought that within the given constraints he had done a good job of making the Constitution responsive to the needs of the downtrodden people. Indeed, many of the provisions in the directive principles and elsewhere apparently bear clear imprint of his zeal and owe their existence to him. But, even they had to be within the strategic space provided by the rulers. His realisation of the folly was near complete when he had to burst out in utter dejection at its ineffectual implementation, that he would be the first man to burn the Constitution as it was of no good to any one. He was inaccurate, as the Constitution had proved good enough to the upper caste-class combine who had hegemonised complete political space in post-1947 India. He attributed it to the'devils' in the Congressmen who had occupied the constitutional 'temple' he and others had built. Had he lived little longer, he would have realised that the ones that he considered his co-workers to build the temple were themselves the agents of the very devils.

He hoped to thwart the devil's march by people's power conceived in the form of a parliamentary party called Republican Party of India. It was within the very precincts of the temple inhabited by devils and therefore it soon proved to be the devil's feast.

Ambedkar could not reach the point of understanding that the State is a mere instrument in the hands of the ruling classes to coerce the ruled ones into submission to their interests. Until the downtrodden themselves become the ruling class, they cannot expect the State to do good to them. Whatever good that appears to come to their share, in ultimate balance accrues to the other side in multiple measure.

The post-1947 State, which has never tired of propagandising its concern for dalits and poor, has in fact been singularly instrumental in aggravating the caste problem with its policies. Even the apparently progressive policies in the form of Land Ceiling Act, Green Revolution, Programme of Removal of Poverty, Reservations to Dalits in Services and Mandal Commission etc. have resulted against their professed objectives. The effect of the Land Ceiling Act, has been in creating a layer of the middle castes farmers which could be consolidated in caste terms to constitute a formidable constituency. In its new incarnation, this group that has traditionally been the immediate upper caste layer to dalits, assumed virtual custody of Brahminism in order to coerce dalit landless labourers to serve their socio-economic interests and suppress their assertive expression in the bud. The Green Revolution was the main instrument to introduce capitalisation in agrarian sector. It reinforced the innate hunger of the landlords and big farmers for land as this State sponsored revolution produced huge surplus for them. It resulted in creating geographical imbalance and promoting unequal terms of trade in favour of urban areas. Its resultant impact on dalits has been far more excruciating than that of the Land Ceiling Act. The much publicised programme for Removal of Poverty has aggravated the gap between the heightened hopes and aspirations of dalits on one hand and the feelings of depravation among the poorer sections of non-dalits in the context of the special programmes especially launched for upliftment of dalits. The tension that ensued culminated in increasingly strengthening the caste - based demands and further aggravating the caste - divide. The reservations in services for dalits, notwithstanding its benefits, have caused incalculable damage in political terms. Reservations created hope, notional stake in the system and thus dampened the alienation; those who availed of its benefit got politically emasculated and in course consciously or unconsciously served as the props of the system. The context of scarcity of jobs provided ample opportunity to reactionary forces to divide the youth along caste lines. Mandal Commission, that enthused many progressive parties and people to upheld its extension of reservation to the backward castes, has greatly contributed to strengthen the caste identities of people. Inasmuch as it empowers the backward castes, actually their richer sections, it is bound to worsen the relative standing of dalits in villages.

Thus, the State, its welfare mask notwithstanding, has viciously and consistently acted against dalits and poor people. It is a complete contra-evidence to hopes of Ambedkar who strove to maximise and make use of the autonomous space of the State for the benefits of the have-nots, particularly dalits. It is one thing to assume autonomous space but quite another to equate it with caste-class neutrality. Unfortunately, the dalit political behaviour always reflected this erroneous notion of caste-class neutrality of the State. It has already caused great damage to the dalit interests. The radical Ambedkar might have strategy to use State for dalit cause but would never see it as caste-class neutral.

Socialism

Despite his ambivalence and reservations about the emphasis on the economic dimension in socialism, Ambedkar broadly remained a socialist. Some scholars do find little scope for suspecting his socialist credentials because of his disapproval of Russell's criticism of property, his non-acceptance of Marxian formulations and his placement of social issues higher than the economic and political issues. He called the complaint against love of money as 'philosophy of sour grapes' (BWAS 1/ 489) and ridiculed materialism as 'the ideology of pigs'. This impression is moreover strengthened by his reservations to accept the economic interpretation of history. But, in all fairness it may be said that what he appears to mean is the integrative consideration of all the factors that are needed for any society to be based on liberty, equality and fraternity. Notwithstanding his variant conception, there should not be any doubt about his socialistic antecedents. His conception of socialism also underwent evolution. Once he had stated that there was hardly any difference between his socialism and communism. As such, his disagreement with the communists was about the means and not about the aim. He warns the communists that the classless society can emerge only after the emergence of a casteless society. It implies that his quarrel with the then communists was over the stages of revolution. In the 1920s and 30s, these people had borrowed the communist dogma and parroted class struggle in utter disregard of the reality. Ambedkar, on the contrary, was firmly rooted in it. They believed that the soviet Russian model of revolution was importable for bringing about a socialist revolution into India whereas Ambedkar realistically postulated that unless the consciousness of the working class was congenial for revolution, there was no question of it materializing. And, unless the caste system is destroyed, creation of the pro-revolution consciousness was out of question. His annoyance with the Bombay communists was largely because of their dogmatic behavior. It is unfortunate that the ideal of classlessness that was latent in his agenda never really surfaced during his lifetime (Rao, 1979).

Ambedkar relies on the concept of 'State' for materialisation of his conception of socialism. His conception of State is largely idealist. He wanted the State to intervene in the economic structure and its monitoring. He wanted to constitutionalise this State intervention so that it would not be subject to change any time with the whims of simple majority vote in the legislation. Ambedkar who taught, "The lost rights cannot be regained by making appeals or requests to the robbers; it needs struggles"; did not say anything on how the oppressed people will get such strength as to create the constitutional provisions, that would put the class structure upside down. On behalf of his party - Scheduled Caste Federation, he had submitted a draft for the future constitution to the Constituent Assembly for the independent India. It was published later as "States and Minorities". This book has really aided students in understanding some aspects of his conception of socialism. Nevertheless, one cannot afford to forget the constraints placed by the context in which it was written. The context was that he had failed to get into the Constituent Assembly and was therefore anxious to strike a feasible and still radical note that could find the support of the vast majority of the have-nots which might then create some pressure either for its inclusion in the Constitution or for his entry into the Constituent Assembly. For some years, during the preceding turbulence of negotiations for transfer of power, he found himself totally marginalised. Notwithstanding the probable limitations of this draft, its provisions in operational terms were still very radical. The main provisions are:

  • All important industries and services shall belong to the nation.
  • Insurance industry shall be in public sector and insurance will be compulsory for every citizen.
  • Private sector and entrepreneurs shall have a role in the economy but it shall not be dominating.
  • Nationalisation of land and promotion of co-operative farming on a collective principle.

These provisions, if implemented, would have gone a long way towards supporting democratic revolution in the country. It would have limited inequality and exploitation in the economic and political sphere. Politically, it would have had far-reaching impact.

Ambedkar till the end could not completely remove the Fabian influence (which he might have gathered while in England) on him. In his times, particularly before World War II, few people in India were well versed in Marxist philosophy. The knowledge of Marxism seldom exceeded some broad principles and 'Stalin's dictatorship' painted by imperialists or the 'revolt of the workers, the insurgency of the poor. Ambedkar also does not seem to have gone very far from this point. Without indulging into the debate of ifs and buts, there should not be any iota of doubt that the ideal society of his conception could materialise only through socialism.

Democracy

Ambedkar had unshakeable faith in democracy. In his conception of an exploitation-less society, democracy has an extra-ordinary role. Democracy means 'one person, one vote'; and 'one vote, one value'. Democracy means empowerment of any person for participating in the process of decision-making relating to her/him, democracy means liberty, equality and fraternity - Ambedkar's definition of democracy had such a tone. Because he presided over making of the Constitution and is being projected as its chief architect, there is a misunderstanding that parliamentary democracy is what he wanted. But nothing could be farther from the truth than this. He himself spoke against parliamentary democracy. For instance, he defined parliamentary democracy as "voting by the people in favour of their owners and handing over the rights of ruling over themselves" (BAWS 10/36). This provides a glimpse of the expanse of his ideal, which certainly was much beyond the Indian Constitution or any common place understanding about him.

His conception of democracy appears to be purely people oriented. He showed that the bookish concepts of equality are detrimental to the disabled sections of society in the prevailing social setting and proposed a fundamental change in the concept of equality. It envisaged complete abolition of inequality. His principle of positive discrimination is based on this very concept of equality. But the operational aspects of this concept involved the need for some kind of autonomous institution, which was met by 'State' and 'religion'. It is necessary to stress that his greatness lies in the radicality of his conceptions, his vision of a human society sans any kind of exploitation; not in the remedies or apparatus he proposed in the circumstances prevailing in his time.

Buddhism

Religion was the institution envisaged to control the organisation at the level of an individual and society to curb their latent exploitative instincts. It was a philosophical device that would regulate their lives, including the interface between them at the most primary level. Ambedkar viewed it as a code of behaviour, a way of life that is upheld by the multitude. He insisted that this code should be based on and be compatible with the precepts of modern science. The religion as normally defined or that became a pill of opium for Marx, was not the religion of his concept either. When ultimately he embraced Buddhism he claimed to have used the criteria of modern science. Buddhism, as it was propounded by Gautama the Buddha hardly qualified to be called religion in so far as it did not have even a single of the three necessary features of religion - viz.: belief in God, permanent entity and a set of rituals. But it is a matter of opinion whether its institutionalised form that we are familiar with still retains its uniqueness. Shunning the futile debate, it could be definitely said and has been acknowledged that the Buddhism that he embraced was far more radical than its familiar version. His 'Buddha and His Dhamma' is replete with instances where he reconstructs and redefines Buddhism with a near-scientific approach.

Buddhism, in its purer form, puzzled many people with its radical outlook and rational approach. It did not have a place for God, ritual of any kind or for any permanent entity that characterise all other religions. Morality is said to be its basis and surprisingly a pure democratic criterion of 'happiness and welfare of many' (Bahujan Hitay, Bahujan Sukhay) as its motto. He exhorted Bhikkus (monks) and Bhikkunis (nuns) to wander all over the world carrying the Dhamma to people and not to rest at one place. Even by this, he did not mean spread of his creed; it was essentially an expression of the compassion and concern he had for suffering humanity. For, he had repeatedly advised people not to take his word for granted but test it on the touchstone of their experience and intellect before accepting or rejecting it. He never claimed any role in their emancipation asking them to be their own light- " Atta Deep Bhava". He treated the Sangha (the order of his Bhikkus and Bhikkunis) as a microcosm of the society. The Bhikkus and Bhikkunis were not allowed to have any private property except for the basic eight things for their personal use. In economic and political sphere, he put forth the ideal of service before the monks and nuns. The people who did not observe this ideal are said to be the parasites, consuming national wealth.

In the realm of philosophy, Buddha's contributions were far reaching. Several centuries before Hegel, he presented full-blown dialectics in his philosophy. Hegel had provided the basis for Marxism, in a sense that Marx had just to make the reality in Hegel upside down. Buddha's reality also had shades of Hegel, although he never explicitly accepted, unlike Hegel, the primacy to the consciousness, but he did not get his Marx to resurrect his dialectical non-materialism. The principle of impermanence is the fundamental tenet of Buddhism. For Buddha, any thing that is not permanent does not exist; its application is all pervading. Somewhat as a corollary of this principle, Buddha proposed the tenet of dependent origination (Pratit Samutpad). With regard to materialism, and consciousness, Buddhist philosophy goes quite close to materialism, in the sense that it does not regard independent existence of consciousness without the body. Significantly, Buddha's approach reflects his orientation to help people emancipate themselves and not pontificate on things irrelevant. It is quite the same as Marx insisting on 'changing the world' as the object of philosophy. There are many 'un-knowables' on which he kept his famous silence. His 'middle path' appears to provide for the grey areas where a definite stand could be erroneous.

Ambedkar's attraction to Buddhism is basically on account of its moral base and absence of irrationality. On this account it has been the subject of admiration and awe of scores of intellectual people. A person like Einstein had opined that it was the only religion suitable for the scientific age. Ambedkar must have had multiple motives behind embracing Buddhism. Basically he was in search of a religion as an instrument of internal control on individuals' instincts and social behaviour. He had a social need of an appropriate cultural identity for his people after they had discarded the chains of Hinduism. He was moreover aware of the aberrations that had crept in Buddhism and had to redefine it to present its rational version. Basically, he included many a rational interpretation presented by scholars like Dharmanand Kosambi, and left a mirror to posterity to have a glimpse of his worldview. This worldview, does take cognisance of the material reality of living, subscribes to law of causation, relies on humane rational to interpret the world and finally embodies a craving for changing it. Although, there is no difficulty in understanding or empathising with his decision, the claim that Buddhism could be the substitute for Marxism or a liberating philosophy for the whole world is not only anachronistic but also grossly magnified idealistic hyperbole.

Another notable feature is his repeated reference to Marxism in relation to Buddhism. Many of his disciples misused it as his opposition and even extended it to enmity to Marxism. It is untrue and unfortunate. Like his claims to have checked the consistency of Buddhist tenets with those of modern science, he claimed that his Buddhism was Marxism plus some thing. It certainly shows that he did not hold Marxism in the same esteem as science, but there is no doubt that he considered Marxism as the near-best and willed that his chosen religion should contain all of it and be superior to it. It is interesting to study what aspects he considers important in Marxism and what methodology he employs to compare them with corresponding contents in Buddhism. What is important is to note that with the amount of information available on Marxism to him, he considered it great enough to serve as a benchmark to assess Buddhism.

On Marx and Communism

Babasaheb Ambedkar thought that the communists while attempting to bring about revolution do not bother about justice or injustice, truth or untruth; atrocities and taboos and if times demand, are prepared for bloodshed to establish the State with soviet methods. It was shocking to his moral philosophy and therefore he always expressed his reservation and even disapproval for these methods. He says "The object of communism is as economic and social as it is political. About social, the revolution in public opinion has not taken place. Moreover, majority of people does not have ability to understand the economic and political aims of communism " (BB, 337 (7)). Elsewhere, he cites the historical examples in the context of historical materialism of Marx and says that the political revolution has always taken place on the background of social revolutions. Howsoever congenial the objective situation for revolution may be, it should be an axiom that till the revolutionary consciousness in people does not impel them to revolt, revolution cannot take place. He could not agree with the communists of his times who reared a mechanistic belief that revolutionary consciousness would automatically be born out of the material reality around. He wanted to stress the importance of the mediation of the conscientisation process in creating the revolutionary consciousness. He had little difficulty in visualising the communist prospects of a stateless and classless society as many people have. But there cannot be any doubt that he wished materialisation of some such 'utopia' where all kinds of exploitation would be deeply buried in the past and all the people would enjoy liberty, equality, and fraternity in their sublimest part in full measure.

One of the main problems with the prevailing icons of Ambedkar is that they project him uniformly as anti-Marx. It is the single saddest aspect for the moribund state of the dalit movement. Ambedkar often referred to Marx in various ways but never discussed him at the philosophical plane where essentially Marx resides. It is notable that he has not much to disagree with Marx on the ideological level except for the derogatory comments on materialism. Any one knowing even the basics of Marxism would say that these comments do not have anything to do with Marxism. They relate with the mechanical materialism and not with the dialectical materialism of Marx. What prompted these comments perhaps was the practice of the then communists who vulgarised materialism in tending to ignore anything not material and have been spiteful of the movements of dalits. Beyond this nowhere he appears to discuss basics of Marxism viz., dialectical materialism, historical materialism and scientific socialism. He did express doubt about the uni-linear flow of human history but unfortunately not in any depth to discern the areas of disagreement. Insofar as it implies that the history can develop divergent streams under certain conditions, the validity of the doubt cannot be dismissed.

Ambedkar and Marx share many common spaces. Both were driven by the same goal of reaching the society sans exploitation. Both had a firm commitment to the most oppressed people (technically not so for Marx, though), and saw them in the vanguard role for bringing about the revolutionary change for overall progress of the mankind. Marx arrived at his formulation by scientific study of history and found that in the era of capitalism the working class would be the vanguard of the socialist revolution. Ambedkar did not see working class in India and any probability of its emergence until the castes were annihilated. He therefore saw the necessity of launching the anti-caste movement with its worst victims - the untouchables in the vanguard role. The language and syntax certainly differed because of different frameworks they came to follow. Marx laboured on rigorous philosophical formulation and came out with his own body of thought or a science of revolution. Ambedkar got drowned into the turbulence of present and used philosophy for his reassurance or as a support for practice. A large part of his thoughts have a polemical hue and therefore cannot be used shorn of its context without risk. Ambedkar quite like Marx felt that the object of philosophy was to change the world. His statement that he does not believe in any 'ism' can be considered anti-dogma. It is with the same sense he used to say He was a realist. What a coincidence between this and the statement of Karl Max, when he said, "I am not a Marxist "!

Besides these similarities, Marx was always referred to by Ambedkar as a kind of benchmark right up to his last days though unfortunately he never reflected the rigour that is expected in such discussions. It hovered around the superfluous and hearsay features of Marxism. Serious thinkers of Marx are surprised at his conception of Marxism till they are reminded of their location in times. Notwithstanding Ambedkar's claim that he had read more number of books on Marxism than that read by all the communists in India, in those days the philosophical material on Marxism does not seem to be easily available. What was available was the stuff that talked about the Bolshevik revolution and what went in the Soviet Russia. Rarely does one find a purely philosophical discussion even in Marxist circles in those times. The point is that the impression spread by the vested interests that Ambedkar had rejected Marxism after careful consideration is firstly not true. Whatever his understanding of it, his interest in Marxism had never waned. He prophesied that if Buddhism failed to deliver the results, the whole world would go in for Marxism. Secondly, his feeling of inadequacy of Marxism was related to the superfluous picture of Marxism available to him.

Obviously, Marxism did not have what he was looking for, to readily offer. In the realm of practice, the natural possibility of an alliance between him and the communists seems to have been thwarted by the mechanical outlook of the Indian communists who refused even to take cognisance of the problem of castes. Their ostrich like behaviour towards the frozen reality of this land was more unMarxist than anything conceivable. Still, Ambedkar had joined hands with them during the ILP days to protest against the anti-labour bill and had led the historical strike of the workers in Bombay. But this alliance was short-lived. Endowed with the most potent tools for analysing the social phenomena, it was the duty of the communists to understand Ambedkar and not vice versa. They not only failed in that but also went further to antagonistically oppose him. The Brahminical puritanism that they brought in Marxism was totally misfounded as the times proved. On the sheer consideration that dalits as the most oppressed people of this country did constitute their potential base, their strategy should have had a place for them if they were really committed to revolution. But, it is a fact that dalits just did not exist in their scheme of things. If any one were to be held responsible for betrayal of the revolution in India, it would be these mistaken comrades and not Ambedkar.

Unlike the frontline communist leaders in Bombay, Ambedkar did not need to declass himself to internalise the proletarian class-consciousness. Ambedkar belonged to the working class, he lived in the chawl - the mill workers quarters in Bombay. Even during his stay in USA and Europe, he lived the life of utter depravation, not even having enough food to eat. But for his western attire, which was supposed to reflect disgust for humbug prevalent in those days, he continued to identify himself with the masses and working classes in their trials and tribulations. He did not have any necessity to demonstrate this identity by any extraneous means. The overpowering politician in him in the later days certainly eroded this consciousness and consequently led him increasingly after the short solutions shunning the direct struggles.

The communists basically had their base in the Trade Unions (TU) of the textile mill workers of Bombay. These TUs were tight-lipped on the discrimination faced by dalits in not getting the jobs in better remunerative departments like weaving in textile mills. The economic condition of dalits was much worse than their savarnacounterparts. Ambedkar observed that the communists used these TUs for their political gains rather than for the welfare of the working class. Whenever they took precipitate action to strike the work, the workers tended to suffer differentially, owing to their castewise placements. Ambedkar's objection to this 'irresponsible'TU behaviour was on two counts: (i) they were driven by raw 'economism' to the detriment of prospects of enhancing the political consciousness of the working class, (ii) they were using them as cannon fodder in the promotion of their political interests. Ambedkar's writing on communism or Marxism is heavily imbued with his annoyance with the Bombay-communists. This legacy to identify Marxism with its self-appointed practitioners still appears to be followed by dalits. They cite examples of the parliamentary communist parties to show the lacuna or inapplicability of Marxism. It is necessary for them to understand that Marxism needs criticism but it presupposes its careful study.

One of the greatest barriers the communists pose to others is their unMarxist and puritanical attitude. In India that was naturally likened to Brahminism with which all were familiar and because by default the communist leadership happened to come from Brahmin and other dwija castes. Marxist essence presupposes scientific enquiry, a dynamic understanding of the situations and requisite tolerance for divergent views. But the institutionalised Marxism always appeared ready with the glued labels like renegade, reactionary, revisionist etc. to mark out those who did not toe the official line. These fallen comrades then are treated as the worst class enemies nullifying in one shot their life time contribution to the revolution. This tradition has unconsciously induced a dogmatic behaviour in the Marxist circles. By virtue of the powerful analytical tools of Marxism their analyses still read superior to any one around but it could be generally said that they have not made full use of their potentialities. They are adept at stuffing new facts into the old inferences to demonstrate eternal validity of their dogma. For instance, if they had seen the objective reality in Ambedkar's time as they did now about the problem of castes, the history of this country could have been a bit different! What worries the committed revolutionists is this attitude of the 'official' Marxists. For instance, there does not appear any significant appreciation of the changes in the mode of production under capitalism with the advances in communication and computational (information) technologies. The capitalist organisations have undergone sea change with adoption of them from the Fordist models that constituted the reference for the Marxist schema. These organisations have re-engineered themselves into delayered, downsized, flexible, decentralised units and are tending to destructure so as to reduce the cycle times with the fullest use of information technology. In place of factories employing huge numbers of workers engaged in monotonous assembly line tasks, alienated from the product of their labour are coming the distributed production units with knowledge workers, fairly autonomous in their work sphere, located in apparently authority neutralised teams, with flexi-times and profit sharing avenues. The policy package of globalisation that is out to increasingly marginalise and crush the people in poorer countries is just the corollary of this paradigm change. Although, contrary to opinion of many, this socalled flexible capitalism does not any way affect the validity of the theory, one worries to note no influence of these changes in the strategy and tactics of the Marxists. The redefinition project will have to take into account this emergent shape of the world.

One of the problems Ambedkar appears to face in accepting Marxism is its prescription of the 'dictatorship of proletariat' during the post-revolutionary transition period to communism. For him any kind of dictatorship was an anathema. He equates it with monarchy. While it is true that he had not understood the basic rationale behind or rather derivation of this concept, his apprehensions cannot be said to be mis-founded as the later developments in the socialist countries revealed. To overcome this lacuna he devises a via media solution of State socialism without demolishing the parliamentary democracy. To cover up the inherent lacunae in the parliamentary democracy, he proposes to incorporate the structure of the economy in the Constitution and limit the sovereignty of the parliament. He visualised this solution as bringing in socialism without 'shedding a drop of blood' or resorting to dictatorship. It is unfortunate that instead of understanding the inherent defect of the framework of the political economy, he strove to propose such unrealistic solutions.

The separation of the dalit and communist movements has caused the greatest loss to the revolution in India. The fact that dalit and oppressed people, who constitute the backbone of this movement were kept away from it, restricted its growth. On the other side, on account of discarding the ideology of class struggle, the dalit movement could never come to grips with the real problem of dalits and comprehend the means to solve them. As a result, the condition of this community went on deteriorating, their movement remained revolving around the trifling, temporary and emotional issues thrown in their front by the cunning of ruling classes and their leaders remained entangled with their self interests and politics of status quo. The project of redefinition of Ambedkar will consist in systematically examining Ambedkar's conceptions and relocating him in relation to Marxism.

Aspects of the Strategy and Tactics

In the context of strategy, some of Ambedkar's contributions are really noteworthy. He brought the struggle against Brahminism into the political battlefield. He inferred that without political power the social and religious structures will collapse and motivated his followers to capture political power. But his conception of political power being acutely constrained by the parliamentary framework where bargaining is the predominant medium of securing political power, inevitably it made way for all kinds of aberrations and perversities to creep in. The prevailing politics being the game of possibilities, he was soon sucked into its vortex. Politics came to dominate the other aspects of his personality. Slowly, the impact of politics started becoming visible everywhere. This phase significantly contributed to multiplication of his inconsistencies out of tactical imperatives. Dalits have taken this legacy of parliamentary politics very seriously, almost as the be all and end all of their political being. It may be, interesting to probe how much damage this kind of political orientation inflicted on the dalit movement.

It is altogether a different question whether Ambedkar had any other alternative to parliamentary politics for political practice. It may be argued that in the context of his resources, adversarial environment and to some extent his personal limitations, he had none. Even if it is taken as correct, it should not be forgotten that it was a matter of strategy and tactic that presuppose contextual variables: it cannot be taken as the lasting value.

The fundamental source of most of Ambedkar's political thoughts and action is his conception of State and religion, that he had adopted as the extraneous instruments to reconcile the state of flux of things and the necessity of order in them. It is necessary to understand that both, the State as well as religion, are the products of the evolutionary process of the human society. There is nothing inevitable about them. Marx took State as the instrument of coercion in the hands of ruling classes and religion as the opium of the masses. Dalits have a long experience of nearly five decades with the so-called welfare State of Ambedkar's design. What does it say? Does the State side with them in their conflict with the landlords? Does it come to their rescue when every day three or four of their daughters are raped? Does it come to save the shame of their women when they are paraded naked in the streets? Does it take their side when they come in conflict with landlords, moneylenders in villages or with management in the modern settings? Does it really ensure they get their dues as provided in the Constitution or punish the defaulting management for non-compliance? To all of such questions the answer could only be in the negative. It is not a matter of'devils occupying the temples' as Ambedkar lamented seeing the people occupying the Constitutional positions. The State possesses the characteristics of its master class. In India the upper caste capitalists, landlords, top bureaucrats, etc. being the ruling class, the State can never have saints who would favour dalits. It is a fact that even the government by a dalit party like the BSP could not transform it into a dalit State.

Religion, in Ambedkar's conception is necessary to maintain the moral order of the society. It may be interesting to examine to what extent it conforms to this idealistic expectation. Buddhism, which undoubtedly is the most rational of all the religions, does not have any evidence of having created over its near millennium long tenure in India such an order of the society which could claim liberty, equality and fraternity of Ambedkar's conception. Ambedkar's argument that the Bhikku Sangha in Buddhism was the prototype of this kind of society becomes invalid once we call into question the role of Sangha in the production process. Before that, the order that envisaged nostalgically to recreate the value of the vanishingGana Rajya in microcosm against the evil of rising monarchies, cannot just sublimate to the era of capitalism without being an alley of exploiters unless it transforms itself in some way as a catalyst for the revolution. The moral tenets of Buddhism likewise cannot submerge the lure of surplus extraction, that is its dominating ethos. If at all, it may help it become more pronounced by weakening the resistance of the exploited masses. As we empirically see, the Buddhism of his conception could not produce even a trace of morality in its adherents. On the contrary, for the masses it presents the distorted, if not inverted, worldview; it orients them to look inwards for their misery and be blind to the reality that some one exploits him. He could certainly derive mental peace and pleasure but it is a state of an intoxicated mind. Keeping in mind the causal links in Ambedkar's adoption of these instruments, the redefinition project needs to address these issues afresh.

The strategy of the ruling class always stresses on diversion of peoples' attention from their real problems and their disarmament - both in physical and ideological terms. They invariably have a multi-layered strategy in place for this purpose. The vanguard parties of the ruling classes open up sentimental fronts and attempt to divert the attention of people as their real problems get aggravated. Secondly, their time-tested methods of adulterating radical ideas with the masses are always in operation. Towards this end, we see all the ruling parties vying with each other in co-opting Ambedkar. 'Ambedkar' represents a potentially dangerous ideological weapon in the hands of the Indian proletariat and so the ruling class will be hell bent on blunting its edge. They will do everything to eulogise him not only for wooing dalits for their immediate electoral gains but also to neutralise him as the radical ideological force by propagandising a distorted version of the latter. Dalits will have to exercise vigil over their ideological assets even after redefining Ambedkar.

5. CONCLUSION

For at least over last four decades Dalits have devotedly followed Ambedkar as their ideal, as a virtual God and zealously practised, as they claim, his teachings. Their social being could be seen to be totally imbued with what they call Ambedkarism - the veritable science of their emancipation. If it is true, and no one would deny it is not, it should be pertinent to ask why despite this flawless following of Ambedkar they continue to be in a pathetic state in every sense. Barring a handful dalits in the government and public sector services and of course politicians, they continue to occupy the lowest rung in the social as well as economic hierarchy of Indian society. Their politics, notwithstanding the media hype, gauged by the measure of general empowerment, continues to be in shambles. Over these decades, their relative situation either shows stagnation or decline. The insinuation to relate this State with their faith in Ambedkar itself would be distasteful for many dalits. But, it is vital for ones that are committed to their liberation to squarely face the facts and dispassionately find out where the rot lay.

Generally, beyond the first burst of anger in reaction to this question, one would face the defensive arguments to discount this relationship. Typically, they tend to attribute their miserable situation to the lack of competent leadership after Babasaheb Ambedkar, to the educated dalits who they think have become dalit Brahmins and have deserted the community; and sometimes to the people themselves for their extreme self- centredness. Sometimes, the finger is raised at the high caste hegemony that has neutralised the impact of the Constitution that Ambedkar created. Some, particularly the leadership, even would dismiss the basic premise itself that there is something wrong with the dalit movement. They might even go so far as to claim net achievements indicating the prosperity of themselves or some others of their ilk. More sober may argue that what is seen is the transition state. Conceding them all some amount of validity even would not erase the stark fact that the general situation of the vast majority of dalit masses remains still alarmingly pathetic. Externalisation of the reasons for this state has not helped dalits any bit. The time has come for dalits to self -critically see whether anything was wrong with their ideology and / or with their practice thereof.

Reviewing the post-Ambedkar dalit movement at some significant milestones, one finds a queer underscoring behaviour, believed to be in accordance with the teachings of Babasaheb Ambedkar, that is certainly incongruent with the essence of what he taught. This dichotomy between the essential Ambedkar and the'Ambedkar' in the faith of dalit masses - the icon of Ambedkar, comes out as the problematic in this review. In relation to almost every aspect of his teaching there emerged an icon that represented varying amount of distortion. Insofar as they constituted the ideology that gripped the masses, these icons can be seen to be at the root of the dalit pathos. Among the myriad sources for these icons, Ambedkar himself might come out as the major source. Because, even a myth can not sustain for long without some material base. The icons of Ambedkar thus could be linked to some such bases, howsoever tenuous, within his own life. The rationalist in Ambedkar never hesitated to change his opinions and behaviour if the facts so warranted. They appear to be inconsistencies to the ones who see it sans context. His distance from the focus of control in his socio-political environment, the vastly varying target audience (ranging from the Englishmen to the illiterate dalits) to whom he had to communicate, the exigency to respond to the dynamics of communities set in motion by the pre- independence politics, his anxiety to accomplish as many gains for dalits as he could in his life time, the exigencies for 'short' actions at the expense of 'long' vision inevitably led to mark patterns that could support array of behaviours. The first to take advantage of it were his own lieutenants for serving their personal ambitions that set the trends of distortion of Ambedkar in the minds of gullible dalit masses.

The ruling classes that always look for the grounds to divide masses had severally reinforced this distortion and accelerated fragmentation of dalits in every field. They, along with willing collaboration of dalit politicians and emerging elite, promoted and sustained the particular icons of Ambedkar that would prevent political coalescence of dalits and suck them into the vortex of parliamentary politics in order to bring the establishment much needed legitimacy. Dalits failed to note this cunning and let themselves flow in the currents of confusion the ruling classes deliberately created. Today, with increasing political crises the ruling classes seem vying with each other in co-opting Ambedkar, as though that may be their last chance of survival. If dalits stood their grounds well, that might have proved to be their last act. But, unfortunately dalits are giving them new leases of life by blinding themselves to the reality. Not only that they have not resisted these ruling class machinations but on the contrary they are curiously seen to swell the cadres of these castiest, communalist and anti-poor groups and parties. These parties who openly profess the ideology of Hindu revivalism and represent all that is decadent in Indian tradition show the temerity to project Ambedkar among their ideologues. Apart from the reasons of security that propel dalit youth into their fold, the compradore behaviour of dalit elite certainly has influenced the phenomenon. What is common in all the attempts by the ruling classes is to sap'Ambedkar' of its rebellious content.

It is advantageous for them to show that he was the chief architect of the Indian Constitution, committed to parliamentary democracy and opposed to any ideology that propagates violence or revolution. He is projected to favour gradual change implying that dalits should patiently wait and strive persuasively to better their own lives. He is projected as the Bodhisatva that inspires nirvana - the State of total detachment from worldly matters. All these images have caused significant damage to the emancipatory struggles of dalits. Some of these images might be the purposeful and blatant disfiguring of Ambedkar but some of them represent genuine dilemma arising from Ambedkar's own stands on various issues. From the viewpoint of the comprehensive pro-people change in the present historical phase a democratic revolution is an imperative. The motive force for this revolution ought to sprout from dalits. The history provides a strong testimony that any radical movement in the country could be sustained by dalits and tribals at its base. Ambedkar as a symbol for dalit aspirations holds a key to the barrage that has so far bound the revolutionary upsurge in India below the alarming levels. If one concedes that Ambedkar's framework is going to haunt revolutionary commitment till the Indian Democratic Revolution actually happens and that Ambedkar represents the ideological weaponry in the hands of dalits who along with other oppressed people are going to be the axis of this revolution, then one would clearly see the need to redefine Ambedkar in radical terms commensurate with this purpose. Many aspects of confusion with regard to the facts could be cleared with rational interpretation of his thoughts. But much might need the logical extrapolation of his basic thinking which for some reason appears to have settled in erroneous forms. As he himself showed the way in the case of his redefinition of Buddha's Dhamma, dalits will have to undertake this task, for giving themselves a powerful ideology. Their future as a social group almost hinges on this task.

There are enough clues left behind by Ambedkar himself that point to this need. There is no doubt that he was frustrated at the end of his life seeing the undesired aftermath of his lifelong struggle. He had to lament over the betrayal of the educated dalits in whom he had seen the crusaders of his mission. He had to weep with remorse that he could not do anything for his people in the villages. He had to disown the Constitution for working on which he had cut short his life at least by a few years. He had to swallow the frustration of not being able to pilot the Constitution of his conception (States and Minorities). He had to regret the anti-people State that emerged in republican India. He obviously lacked the analytical tools to see through the reasons for these happenings. His excessive religiosity and spirituality at the fag end of his life perhaps could be taken as the manifestation of this frustration. The social engineer could only be busy with problems; he is unlikely to come to grip with the design defects in the system. Almost every thing that Ambedkar pinned his hopes on can be found today in antithetical shambles. His educational society, his vision of Buddhism, the political party of his conception, the social reforms could be some of the examples. These tragic aftermaths also would denote the necessity of a critical review of Ambedkar's thoughts if they were to be used as the ideology to further the dalit movement towards its logical end. If this process is sincerely followed, there cannot be any doubt that this 'redefined Ambedkar' would be a revolutionary icon, organically linking the dalit struggle to the revolutionary struggle in the world. It will truly globalise the dalit struggle.

This paper is not an appraisal of his work. If it was one he is likely to still shine brightest among his contemporaries. It is an appraisal of his icons that came to be the beacon for the dalit movement. It is the futuristic dimension that he represents which is called in question. Dalits could be eternally indebted to a historical personality called Bhimrao Ramji Ambedkar for whatever he has done to them, but it does not mean that posterity should be bound by the parameters he operated within. For, he himself never meant it to be so. But then that precisely is the tragedy of Ambedkar, that his disciples always zealously acted exactly opposite to what he said or wrote, particularly what he meant to do. Plain talk of this nature is bound to hurt the sentiments of many people but when the disease crosses certain limits, the administration of bitter pills is inevitable. It is not blasphemy but true allegiance to Ambedkar, to his commitment to the cause of downtrodden that makes this introspective exercise a necessity. Paradoxically, the people who worship him as their God are his worst opponents. The young generation of dalits will have to bear this in mind. Babasaheb Ambedkar himself had said that no great person would make his disciples disabled by imposing his tenets and conclusions, rather he would promote their thinking power by awakening them. The followers can get the directions from the leaders. They are not bound to accept their conclusions (BAWS, 1/240).

REFERENCES

(Common place references are deliberately avoided in the text )

BAWS: Babasaheb Ambedkar Writings and Speeches, Ed. Vasant Moon, Education Department, Govt. Of Maharashtra, Bombay

Reference may be read as (BAWS,Vol. No./ Page No.)

Ghosh, Suniti kumar, India and the Raj 1919-1947: Glory, Shame and Bondage, Vol.I, Prachi, Calcutta, 1989.

Ghosh, Suniti kumar, India and the Raj 1919-1947: Glory, Shame and Bondage, Vol.II, Research Unit for Political Economy, Bombay, 1995.

Mathew, Thomas, Ambedkar: Reform or Revolution, Segment Books, New Delhi, 1991, p.73.

Kumar, Ashok, Ambedkar aur Marx in Rajkishor (Ed.), Harijan se Dalit, Vani Prakashan, New Delhi, p.133.

Rao, Raghvendra, " Dr. Ambedkar's Political Ideas: The Limits of Liberalism- a Brief Comment", in K.K.Kawalekar and A.S. Chousalkar (Ed.), Political Ideas and Leadership of Dr. B.R.Ambedkar, Vishwanil, Pune, 1979, p.147.


Dr. Anand Teltumbde

A keen student of the peoples'emancipatory struggles. Association with and participation in various movements connected with students, youth, slum dwellers, human rights etc. His thoroughgoing analyses of various social issues exude high level of commitment to the cause of disadvantaged people. The recent publications include a book in Marathi- "Aarthik Sudhar ani Dalit Shoshit" and a monograph"Impact of New Economic Reforms on Dalits in India" published by University of Pune.

An engineer by profession, he has MBA from Indian Institute of Management, Ahmedabad and Ph. D. in Management- Cybernetics from the University of Bombay. Has fellowships and memberships of quite a few professional national and international institutions. Participated and presented/ published research papers in many prestigious international conferences/ journals.

A recipient of many awards and recognitions that include Ambedkar Centenary Award (ACCC, UK), International Human Rights Award, Vikas Ratna Award and Bharat Gaurav Award.


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