Byapaar.com -The Indian Business Blog

Before going to main post, let me do some latest update on Indian business and economic scenario -

• Industrial production has contracted by 1.2% in February - the third straight month of decline over last year. But due to some positive initiatives by the government there is good growth rate in capital goods and sales of consumer durables.
• Inflation is down to 0.26% as industry is putting pressure on the government for more cuts in interest rates.
• The stock market is finally moving in the positive direction and now the Bombay Stock Exchange bench mark indicator the Sensex is hovering around 11,000.

Well these are the latest important developments. Now lets talk something about public relations. Public relations or PR as most often referred is the medium through which all organizations keep themselves in touch with the public. Ideally, it is an essential part of all successful organizations - be it a corporate house or political party.

But it seems the concept is an alien one in Indian government departments, specially state departments and those of government run companies like banks. Every time, I visit to any government office of my state for some issues from time to time, I have to move around the building, room to room to get the job done. There is no cohenrence at all.

On the other hand - in true zamindari (feudal) style, the most of the employees of state run banks act as if they are the lords and the valued clients came to them with some problems and need money. This is more prevalent in rural or semi-urban areas that I dwel.

On the other hand successful private firms or banks have very good services through their specially trained personal relations personnel and offer great experience during conduct of business. Government agencies which are there to serve the people and state run agencies must take a cue out of private firms and send their personnel for special PR training. It is really confusing for an outsider to believe how bad an experience can be in dealing with these agencies when India is offering customer care services to million worldwide through its big outsourcing industry. Unless and untill all state governments take initiatives to train government employess in the techniques of handling the public, we will never get good governance. I urge all political parties who are heading into pools within a week to take note of it and make an issue.

Following post has been written by a guest blogger. So, the tone/flavor of this blog might not reflect in it. This blog also has no bindings with the guest blogger. All views expressed there is his/her own.

Raju ban gaya ….

It gives me no joy to make fun of some one facing adversity.

It is ironical indeed that the promoter of a company whose name truth has admitted of having committed massive fraud the result oriented culture has rejected the Gandhian philosophy ENDS ARE EQUALLY IMPORTANTthe attitude CHALTA HAI, any thing goes , has made people brazen once a person has committed adultery once the bohemian life style of bed hopping comes naturally what surprises is that a fraud of such magnitudes involving many persons at various levels remained hidden for so long.

Further it is also a question mark on the standards of audit! I am sure that another Arthur Anderson may happen. Having made fun of sub prime crisis India Inc has been presented with a equally audacious corporate scandal I wonder if there are skeletons in every cupboard having a mahogany exterior.

What if tomorrow Infosys or liver is accused of some thing similar ?

The need of the hour is that instead of lingering litigation of Harshad Mehta variety the scam is investigated promptly & in an objective & transparent manner the guilty (ies) not scapegoats are identified & are handed with deterrent punishment & assets are unlocked & put to productive uses.

I am sure the image of IT sector of India or India Inc per se has taken a severe beating & lots of efforts will be required to repair the gaping hole in our credibility

I wonder what happened to the quality control policy & peer review mechanism of audit profession

I am sure a case of rotation of audit firms or a system of joint auditors will to some extant work as a check

Also we need to have a real internal audit & an effective audit committee so that the criminal minds do not find it easy to have a band of followers to share the crumbs

I am sure the soul of Gandhiji will have many a sleep less nights

Hey Raam

Satyam is neither shiv nor sundar

First of all, Happy and Prosperous New Year -2009 to all my readers and others. Hopefully, the New Year will bring much joy to all of us which were gone in 2008 due to economic downturn that occurred suddenly. And it seems governments are not sitting idle – indeed Indian government is trying its best to lessen the effect of global economic meltdown on Indians. Last Friday, the Prime Minister cum Finance Minister of India, Dr. Manmohan Singh announced second round of packages meant to stimulate the economy and protect it from global slowdown. In the first package , the government mainly focused on releasing more funds in the market by way of reducing interest rates and thereby improving liquidity. It also offered soaps to exporters. It seems the first package was aimed at immediate goals whereas the second package is more fundamental and might go a long way in reviving the economy.

In the first place the government doubled the cap on foreign investors in bonds and made ways for states to raise around Rs. 300 billion market loans. Moreover, the new initiative has given special emphasis on the automobile industry that has gone back gear after the economic crisis started. A plan of depreciation of fifty percent on car finance has been announced to shore up demand for the beleaguer industry. Exporters have seen rollback of entitlement passbook scheme rates amidst negative export growth in experienced in November.

On the financial sector, The Reserve Bank of India has announced further reduction in REPO and reverse-REPO rates. Special vehicle has been announced for improving liquidity in the non-banking financial market that may raise up to 250 billion Rupees. Rs 200 billion has been earmarked for state owned banks over net two years.

The government says it is not possible for more stimulus packages within this financial year that ends on March 31^st due to political and electoral compulsions. Over all, the two packages announced will take the country’s fiscal deficit to 5-6 percent from a comfortable 2.5 percent now.

Industry has more or less welcomed the anticipated second round of package and the stock market gained more than around 3 percent. But as always, industry want more from the government and argues that these schemes are not enough to push industrial growth which has come down to 0.4 percent from 5 percent at this time last year.