A Conversation With: Anand Sharma

September 16, 2012, 2:11 am

By GARDINER HARRIS and HEATHER TIMMONS

After a week in which India's government announced a series of controversial reforms, including raising diesel and cooking gas prices, and opening the door to foreign investors in the country's retail, broadcast, aviation and power sectors, Anand Sharma, the minister of commerce and industry, sat down for a brief interview to explain the moves.

Mr. Sharma, who has served as the government's spokesman for the policy changes over the past two days, said that what appeared to be a surprising about-face by a government nearly paralyzed by indecision was actually a considered and patient process of consultation. In an interview from his Udyog Bhavan office, where classical Indian music played in the background and a prominent picture of Prime Minister Manmohan Singh hung on the wall, Mr. Sharma explained in detail why the government decided to allow multi-brand retailers like Wal-Mart into the country.

This week, the United Progressive Alliance government could be forced to come to terms with a vexing political reality, as not only its political rivals but also its allies challenge the most recent decisions. In the starkest terms, there is a chance the alliance may not survive the week. Mamata Banerjee, chief minister of West Bengal and a U.P.A. ally who controls 19 votes in Parliament, has said that she is deeply opposed to the measures announced, and is expected to decide during a meeting with her party on Tuesday whether to stay with the alliance.

What message is the government trying to send by making these rapid moves?

Well, it's very clear that we are a government which is reaffirming its abiding commitment to reforms, and to creating a regime and a climate which encourages investment, manufacturing and also brings in both technologies and experience in modern retailing.

In our view, looking at the complexities of India, its diversities, its socio-economic realities, it's a well-considered decision. We are the second largest producer of fruits and vegetables in the world. And we are the second largest producer of food grains in the world. But our losses are too high. We lose anywhere from 35 to 40 percent of our crops before they get to the consumer.

We need the creation of an infrastructure, an integrated food chain, bringing in the newest technology. It will benefit the rural economy with the farmers, who will get a better price for what they produce. What perishes to a large extent will reach the market or the kitchens.

It will generate gainful employment for hundreds of thousands of our people. Within the first three year, it can create up to 3 million jobs.

Are there specific companies that you expect to come, that you know would be happy doing business under these guidelines?

The government's job it just to make the policy framework. But some of them have already expressed interest, from Tesco to Carrefore to Wal-Mart and Marks and Spencer.

Many of these issues you mentioned that India struggles with have been apparent for some time. Why did you make these decisions now?

We had taken a decision last year [on foreign direct investment.] It had to be suspended, we did not roll it back. Parliament was in session and our opponents did not allow Parliament to function, so we suspended the policies and consulted all stakeholders from farmers' unions, to consumer unions, industrial federations, community organizations and chambers of industry and commerce.

We realized that there was a mixed response. Primarily, farmers and consumers are in favor. So are the small- and medium-sized industries.

Some political parties were opposed then and they remain opposed now. In the case of the left, it is their blinkered ideology. In the case of the B.J.P., it's their partisan agenda. It is not that philosophically they are opposed. When they were in government, they proposed much the same thing. So, they have double standards.

At the same time, there are a large number of states which are in favor, including some very big agrarian states have been strongly pressing for this policy. We have left the implementation to the states. Nine chief ministers responded yesterday welcoming it.

There are some who have reservations, including one of our alliance partners and we respect their right to take their own decisions. At the same time, what I am telling everyone is to please respect the rights of those states who want it, that's all.

The government also wants to send a very clear message, at the same time that we are affirming a clear commitment to reforms and economic growth, that we have an investor-friendly regime â€" a message to lift investors' confidence and sentiment, and to dispel the perception that India was not making decisions.

If you had to name one individual within the party who was pushing the hardest to dispel this perception, who would it be?

Well, we all work under the prime minister, we are one government. The prime minister has been a great reformer, but we are all his team and we are working.

These policy measures have been initiated by my ministry and by the team that has been working here. We are a cabinet form of government. The policy notes are moved by the concerned ministry and then taken to the cabinet.

But you have been a cabinet government under Manmohan Singh for some time now, and this sudden rush to do things -

Let me quickly come in here. It's not a sudden rush. First of all, we came out with a single compendium policy on foreign direct investment in January 2010. Earlier it was communicated through press notes and Reserve Bank of India circulars and fair markets guidelines. There were 178 press notes alone. All were subsumed into a single policy document bringing about clarity.

Second, we raised the limits on investment in one stroke. Earlier, foreign direct investment, under automatic route sectors where it was permitted, was only about $120 million. We doubled it.

But what is more important is that we removed the words “project cost.” Earlier, a project which was costing much less, then only the automatic approval would be there. These were major decisions which were already made.

And last year we ruled out one of the biggest policy initiatives, the national manufacturing policy. That was a cabinet decision of October 24, aimed at raising the share of manufacturing in G.D.P. from 16 to 26 percent and establishing green field townships, which will be self-governing bodies. We've already notified 9 5 of these. These will transform India. These are major decisions, not small decisions.

We are currently implementing one of the biggest infrastructure projects in the world, the Delhi-Mumbai industrial corridor.

So much is happening. I would say, with all respect, that there is a difference between perception and reality. We have been victims of perceptions, some created by our opponents.

So people just had it wrong?

I'm not saying challenges are not there. In any country, governance issues are there. Challenges are there, pressures are there. When multi-party coalitions take decisions, sometimes delays will be there. But that is what democracy is: it is beauty or its challenge. But we have been very transparent and we have been inclusive of our approach.

Some analysts and advisers have said recently that since P. Chidambaram became finance minister this summer, he has helped to focus the cabinet's thinking about the reform that needs to be don e. Would that be fair?

I'm sure that he is also focusing. We work together. We are colleagues.

But these decisions I referred to, these decisions and initiatives were taken last year. So we have always been working as a team. Finance minister has been a finance minister earlier, and he's a much valued and respected colleague, and we're very happy that he's there as a finance minister.

What's next?

I think this is enough for the moment.

O.K., then do you think you will survive the week, politically?

Why not, when you do something good? Yes. Absolutely.

Newswallah: Bharat Edition

September 15, 2012, 5:20 am

By THE NEW YORK TIMES

Jammu and Kashmir: A man suspected of helping to plot the 1999 hijacking of an Indian civilian aircraft, Indian Airlines Flight 814, was arrested by the police Thursday in the Kishtwar district of the state, IBN Live Web site reported. Mehrajuddin Dand, who is in police custody for four days, admitted to working with the organized-crime boss Dawood Ibrahim, who is one of the most wanted men in India, the report said, quoting unnamed sources.

West Bengal: Trinamool Congress, the party that governs West Bengal and is an ally in the Congress Party-led United Progressive Alliance government at the center, has challenged the central government's decision to allow foreign direct investments in retail, Th e Telegraph reported. Mukul Roy, a Trinamool member, and the federal railways minister, said that his party had given a 72-hour deadline to the central government for a rollback, and has warned of the possibility of even withdrawing support, if their demands weren't met, the report said.

Uttar Pradesh: The National Commission for Protection of Child Rights has issued a notice to the state government for its inability to curb or control child deaths from the deadly encephalitis disease in eastern Uttar Pradesh, Jagran post reported. Yogesh Dubey, a member of the commission, told the newspaper that the state authorities had not followed their directives.

Gujarat: The city of Surat is suffering from high air pollution levels despite efforts of the Gujarat Pollution Control Board to deal with the problem, Daily News & Analysis reported. Officials on the pollution control board are taking steps such as improving air quality monitoring and phasing out of commercial vehicles that are older than 15 years.

Maharashtra: Custom officials caught three members of a Mumbai-based business family on Tuesday night for trying to evade customs duty on 21 kilograms, or about 45 pounds, of gold, Daily Bhaskar reported. Some of the jewelry was hidden in their undergarments, the report noted.

Kerala: Prime Minister Manmohan Singh did little to stimulate the investment climate at a major investment meeting in the state on Wednesday, the New Indian Express reported. He did, however, say that Kerala's request to start a prestigious Indian Institute of Technology was “under serious consideration” by the central government.

After Life in New York, Banker Returns to India for Turn at Fashion

AS an investment banker in New York City, Poornima Vardhan had all the right clothes: power suits, cocktail dresses and jeans. Then she returned to and realized that her wardrobe was as bland as an American breakfast.

For women like Ms. Vardhan who move easily between Asia and the West, India's vast and vibrant array of traditional clothing styles presents an unusual sartorial challenge. “My wardrobe had to expand by at least 50 percent when I came back,” said Ms. Vardhan, 28. “There's a lot more diversity to the clothing needed in India.”

Ms. Vardhan is one of tens of thousands of recent “repats” - Indians who left for educational or work opportunities abroad but then returned as India's economy began to boom. Such repats often face daunting challenges readjusting to India's chaos and corruption, and many end up leaving India again in frustration.

But women confront an additional challenge that their male counterparts do not: remaking their wardrobes. For Ms. Vardhan, the style adjustment is central to her return. She came back in part because she was convinced that India's rapidly growing retail clothing industry was a perfect business opportunity. She is now the general manager for brand strategy and retail planning for Genesis Colors, a leading Indian fashion house. As part of the job, she has taken charge of the handbag business for Satya Paul, one of the fashion brands managed by Genesis.

“I miss New York, the buzz of the city, the drive and excitement that only New York can offer,” she said. “But Delhi will always be home for me. It's where my family and most of my friends are, and it's amazing being near them again.”

Professionally, going from finance to fashion has been more challenging than she expected. “Now I have to think creatively and have an entrepreneurial mind-set, unlike in investment banking,” she said.

The opportunity in India results not just from the nation's growing economy and rising middle class but because India, unlike most other emerging countries, has managed to retain its clothing traditions even among the upper classes. Although bluejeans are now popular here, their sales are still dwarfed by those of saris.

WHY India's distinctive clothing styles have managed to survive the cultural onslaught from the West is something of a mystery. Untangling that mystery could make some businesses very successful. So, too, could predicting which of India's remarkable styles will not only survive over the long term here, but also win adoption in the rest of the world. Ms. Vardhan is hoping that one of those businesses will be Genesis Colors.

And so Ms. Vardhan is expanding her own wardrobe, trying to fully embrace some of the bright colors and elegant silhouettes of India's traditional clothing. Having a foot in two worlds also means owning a lot of shoes.

While some returnees complain about needing more closet space, that has not been a problem for Ms. Vardhan. She recently moved out of her parents' house and into a two-bedroom apartment of her own, somewhat unusual for a single woman in India. Her father owns an aviation consulting business and her mother is a teacher. Her sister lives in London and works as a business strategy consultant.

Standing in her nearly empty apartment in Gurgaon, a rapidly growing neighborhood south of New Delhi, she described one of her first purchases after arriving home in April. It was a bright yellow sleeveless cotton kurta with white churidar pajamas. “I bought several of these outfits right after I moved back,” Ms. Vardhan said. “And it's what I wear on a regular basis to work.”

Kurtas are long shirts with split front and back panels that usually extend to mid-thigh; they are worn by both men and women. Churidar pajamas are light cotton pants with wide drawstring waists and narrow leggings that bunch at the ankles.

Together, the pieces make an outfit, churidar-kurta. Like the similar shalwar kameez, it is both modest and cool, essential in a place where summertime temperatures routinely reach 120 degrees. Ms. Vardhan's pajamas are so lightweight they are see-through, but the long kurta ensures modesty.

“This is one of my favorite outfits,” she said.

Modesty is a crucial part of the adjustment to India. While the country has none of the strict clothing laws of some avowedly Muslim nations, a woman's knees are rarely displayed. A group of Muslim clerics in Kashmir recently demanded that female tourists refrain from wearing shorts. In Delhi, few weeks pass without some report of a woman being gang-raped, and even some prominent Indian women blame the victims if they happen to have been wearing clothing deemed immodest.

“A complete no-no in Indian modesty is to show legs,” said Mukulika Banerjee, a professor of anthropology at the London School of Economics and Political Science and co-author of “The Sari.” “Cleavage is fine but not legs.”