Wondering why…

… none of the political parties have mentioned ‘local area development’ in their agendas?

… none of the political parties have mentioned ‘local area safety’ in their manifestos while downplaying their opponents’ anti-terrorism agendas?

… none of the political parties have talked about ‘sustainable and scientific agriculture’ in their speeches while doling out a kilo of rice at 2 rupees?

… none of the political parties have spoken a word about ‘renewable sources of energy’ like solar and wind power while announcing grand schemes of free power to farmers?

… none of the political parties have committed on rooting out corruption as a priority?

… none of the political parties have said anything about not giving tickets to criminal record holders?

… none of the political parties have uttered a word about propagating communal harmony in the population?

… none of the political parties have propagated the family planning mantra?

… none of the political parties have stated anything pertaining to abolishing the caste system of the society?

Image Credit: Dilip Muralidaran

Popularity: 23%

The term “India-Bharat” has been quite popular over the past few years. After BJP launched the “India Shining” campaign in the 2004 general election and lost it, many political pundits attributed the loss to the unequal distribution of prosperity between “India” and “Bharat”. They contended that only “India” benefited from the economic reforms whereas the “Bharat” was left behind. While anti-incumbency was the major factor of loss, there is some truth in the unequal growth of “India” and  “Bharat”.

So what is the difference between the two words?

Both “India” and “Bharat” are notional entities that signify the relatively better-off urban areas and the poor and backward rural parts of the country respectively. The term was apparently coined in 1978 by Mr. Sharad Joshi but gained prominence in 2003.

“India” has better physical and communication connectivity and better living standards. The urban economy is based on strong services or manufacturing sectors. On the other hand, “Bharat” has poor infrastructure and living standards and it has an agrarian economy. 70% of the country’s total population lives in the rural areas. The implication of this number is huge.

The country cannot aspire to become a super-power when vast majorities of its people do not gain from the increasing prosperity. So, reducing the “prosperity” divide between the urban and rural India should remain a top priority for the future governments.

India can learn a few positive things from how China is tackling this inequality problem. China is investing heavily on projects that will transform large parts of its rural areas to urban centers. By doing this, China hopes to prevent massive migration from villages to cities that put enormous strain on the existing urban infrastructure and reduce the opportunities in the villages.

So, here are some solutions that could reduce the divide.

Renewable energy

Significant resources should be allocated for setting up of renewable energy infrastructure in the villages. Most villages of the country receive abundant sunlight (about 6 months a year) and sources for bio-energy are also significant. Tapping these energy sources can be accomplished by providing subsidies for installing solar panels and bio-energy harnessers that power lights, computers and other electronic devices. Tax breaks for the solar panel manufacturing firms will ensure lower cost for these technologies..

Agriculture

Investment in agriculture is very essential to increase the productivity of arable land. Subsidies can be provided to projects that improve the irrigation systems and also farms that employ effective water conservation techniques. Improvement of roads and access to technology will enable farmers to reach the market faster and get better price for their produce. Investment should also made into food supply chain, like cold-storage (mobile and stationary) facilities to prevent rottage of food which in turn puts more money into the farmer’s pocket.

Knowledge

One of India’s strengths is the emphasis on knowledge. We should make sure that everyone in the village has access to knowledge by investing heavily on primary education. More schools should be opened, more teachers be recruited, higher salaries for teachers be provided to motivate more qualified people to join the profession and a big push be given to computer literacy in the schools. This factor is an absolute must for the long-term sustainability of the India’s growth.

Connectivity

Improvements to the physical (road, rail, air) and digital(telephone, broadband) infrastructure should be carried out at an urgent pace. Once sufficient connectivity is achieved, knowledge and technology firms should be encouraged to move farther from the cities and closer to the rural areas. This will generate employment in the villages, reduce migration to cities, enable professionals to work closer to home and ensures fairly equal distribution of wealth.

While I acknowledge that the government is not oblivious to this “India-Bharat” divide and is sincerely doing quite a lot of work in bridging this divide in the form of plans like Bharat Nirman and the Pradhan Mantri Gram Sadak Yojana, more ambitious targets should be set and the progress strictly monitored.

Many of the problems like terrorism and Naxalism can be eradicated by lifting people out of poverty. By giving more growth opportunities to more and more people, social harmony and national unity can be strengthened. The political leadership should unite and summon all the will it can, to succeed against these challenges. The task is difficult but very much doable.

Popularity: 20%

Company Information

ICSA (India), headquartered in Hyderabad, is an ISO 9001:2000 company providing applications, infrastructure solutions etc for power and pipeline industries. Some of their products for the power industry include Theft Detection Device, Distribution Transformer Monitoring System, Intelligent Automatic Meter Reading, Remote Street Light Control System etc. For pipeline solutions their products include Intelligent Telemetric Unit, Off PSP Logger etc. The company has been in the news for the last couple of years. In April, the Government of Singapore picked up 5% equity stake in the company and in June, Deutsche securities increased their stake to 7.16%.

What does this tell you ? – Most definitely shows a lot of confidence amongst the investors.

Company Website : ICSA India

Price History

In January, the price was around 600, today it is hovering around 375. If you are a long term investor and you know what the potentials are, then I don’t need to tell you what kind of opportunities does this mean to you.

Picture Credit : Moneycontrol

Quarterly Results

For the quarter ended June 30, 2008, the company posted an impressive 96% growth as compared to the same period last year with a 71% increase of PAT (Profit After Tax) over corresponding quarter of the previous year.

Verdict

With such promising results in a very unfavorable market conditions, speaks highly of the quality of the management and its vision in transforming this company to a blue chip magnate. There is a huge scope to move upwards and even a price of 600 seems to low for a company like this. Expect the stock price to touch Rs.1100-1200 in 2-3 years from now ….

Hold on, think about it for a minute…that is over 200 % in about 2-3 years – Needs some serious considerations. Don’t you think ?

Disclaimer : The author may have position in this stock. All investment advice is solely by the author of this article. The views expressed in this article does not represent that of India Special. You may or may not follow this advice. Discretion is only yours

Popularity: 10%