The leadership crisis is continuing in the world. Despite their economic might, the leadership in Europe, the US, UK, China and Russia are battling severe challenges. Most headlines in global media are about crises in these regions.&nbsp;

If we step back and look at the conflict zones, there are more in the developed world than in emerging economies. The trade flare-up between US and China is not surprising if you look at economic history. North America and Europe have dominated the global economy for so long that they are shaken up by competitive behaviour.&nbsp;

Remember the 1980s when Japan rose to a level when it was buying up companies in the US. The entire country stood up to demonise the rise of Japan amid fears that most American companies would be acquired by the Asian giants.&nbsp;

When the Asian tigers climbed up the economic ladder in the 1990s, there was excitement and anxiety in equal measure. While their rise expanded the markets for Western companies, it also created firms that could successfully compete with American and European giants.&nbsp;

The large conglomerates from South Korea, smart services companies from Singapore and low-cost manufacturing outfits in Philippines offered continuing competition to Western companies.&nbsp;

Europe is facing a crisis caused by Brexit and the looming threat of Russia. Between the self-inflicted problems of UK and Russia’s attempts to take back its old territories, Europe is focused on its own immediate future.&nbsp;

The rise of China has brought back fears of Japan in the minds of the American government. Hence, the US-China trade war. While Japan wanted to build its economic strengths, China is clear about being a global geo-political influence, prompting the US to take on them. European Union (EU) members are split on China since some are keen to take all the support they can for their stagnating economies.&nbsp;

The resulting chaos in the developed world is driving a new wave of leadership to take charge of various regions in the world. They are now reducing the influence of large economies by deciding what is in their own interest.&nbsp;

In Africa, leaders like Paul Kagame, President of Rwanda, are showing the way ahead for the continent. Rwanda has emerged as economic dynamo and also a key member of the increasingly cohesive East African Community.

In recent months, it has taken big strides to reduce its dependence on aid while encouraging FDI.&nbsp;

Volkswagen has set up a factory in the country while a plan is being rolled out to convert its capital Kigali into a global financial centre. “We are offering ourselves to the world as proof of concept country. We are inviting companies to test their ideas for Africa in Rwanda. If it works here, it can be scaled up in the region,” Richard Sezibera, foreign minister of Rwanda, told me in a conversation recently.&nbsp;

The reforms for the African Union initiated by President Kagame will help the countries cooperate among themselves. Similarly the Smart Africa initiative of 24 countries triggered by President Kagame is working to use technology and broadband access to create knowledge economies in the region.&nbsp;

Leaders in the African continent realise that overdependence on the EU and the US will be counterproductive. They have to lead their own way if they seek genuine economic independence.&nbsp;

The world was seemingly stable when US and Europe dictated the global economic order. Armed with their economic might and multilateral institutions controlled by them, they were able to create a global market for their products. They were not so open about allowing global products to enter their own market. After spending decades trying to open up emerging markets, the Western economies are busy closing their own.&nbsp;

At the Horasis Global Meeting in Lisbon earlier this year, it was clear that the EU and the US will have to reconcile to a new world order where they would have to give space to leadership from other parts of the world. “While vigorous nationalism is rising, countries should avoid isolation caused by protectionism,” Frank-Jürgen Richter, chairman of Horasis, said.&nbsp;

Globalisation will work only if it inspires goodwill and is conducted transparently, said Jose Manuel Barroso, vice chairman, Goldman Sachs International and former President of the European Commission.&nbsp;

“Currently those who take initiatives are on the extremes, what we need is a more enlightened leadership: not only political, but corporate leadership as well,” he stated.&nbsp;

In India, Prime Minister Narendra Modi is driving change not just for India, but also countries in the Indian Ocean and the BIMSTEC region. The BIMSTEC countries include Bangladesh, Sri Lanka, Thailand, Myanmar and Bhutan.&nbsp;

At the recent Shanghai Cooperation Organisation (SCO) meeting in Bishkek, Modi made it clear that emerging markets will create their own growth path. While collaboration with western economies will remain important, self-interest will influence economic policies. Modi is pursuing strong relations with China, Russia, EU and US independently, to carve a clear position for India in the world.&nbsp;

The conflict among the economic giants will fester and could even escalate over the next few years. This is now the ideal time for the new wave of leadership to control the destinies of its people, long in the hands of colonial and neo-colonial forces. The billions in Asia and Africa deserve this shift in power.&nbsp; 
 
&nbsp;

(This article was originally published on The DNA. Read the <a href="https://www.dnaindia.com/analysis/column-rattling-old-world-order-2762411">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)&nbsp;

&nbsp;

The leadership crisis is continuing in the world. Despite their economic might, the leadership in Europe, the US, UK, China and Russia are battling severe challenges.

The leadership crisis is continuing in the world. Despite their economic might, the leadership in Europe, the US, UK, China and Russia are battling severe challenges. Most headlines in global media are about crises in these regions. If we step back and look at the conflict zones, there are more in the developed world than in emerging economies. The trade flare-up between US and China is not surprising if you look at economic history. North America and Europe have dominated the global economy for so long that they are shaken up by competitive behaviour. Remember the 1980s when Japan rose to a level when it was buying up companies in the US. The entire country stood up to demonise the rise of Japan amid fears that most American companies would be acquired by the Asian giants. When the Asian tigers climbed up the economic ladder in the 1990s, there was excitement and anxiety in equal measure. While their rise expanded the markets for Western companies, it also created firms that could successfully compete with American and European giants. The large conglomerates from South Korea, smart services companies from Singapore and low-cost manufacturing outfits in Philippines offered continuing competition to Western companies. Europe is facing a crisis caused by Brexit and the looming threat of Russia. Between the self-inflicted problems of UK and Russia’s attempts to take back its old territories, Europe is focused on its own immediate future. The rise of China has brought back fears of Japan in the minds of the American government. Hence, the US-China trade war. While Japan wanted to build its economic strengths, China is clear about being a global geo-political influence, prompting the US to take on them. European Union (EU) members are split on China since some are keen to take all the support they can for their stagnating economies. The resulting chaos in the developed world is driving a new wave of leadership to take charge of various regions in the world. They are now reducing the influence of large economies by deciding what is in their own interest. In Africa, leaders like Paul Kagame, President of Rwanda, are showing the way ahead for the continent. Rwanda has emerged as economic dynamo and also a key member of the increasingly cohesive East African Community. In recent months, it has taken big strides to reduce its dependence on aid while encouraging FDI. Volkswagen has set up a factory in the country while a plan is being rolled out to convert its capital Kigali into a global financial centre. “We are offering ourselves to the world as proof of concept country. We are inviting companies to test their ideas for Africa in Rwanda. If it works here, it can be scaled up in the region,” Richard Sezibera, foreign minister of Rwanda, told me in a conversation recently. The reforms for the African Union initiated by President Kagame will help the countries cooperate among themselves. Similarly the Smart Africa initiative of 24 countries triggered by President Kagame is working to use technology and broadband access to create knowledge economies in the region. Leaders in the African continent realise that overdependence on the EU and the US will be counterproductive. They have to lead their own way if they seek genuine economic independence. The world was seemingly stable when US and Europe dictated the global economic order. Armed with their economic might and multilateral institutions controlled by them, they were able to create a global market for their products. They were not so open about allowing global products to enter their own market. After spending decades trying to open up emerging markets, the Western economies are busy closing their own. At the Horasis Global Meeting in Lisbon earlier this year, it was clear that the EU and the US will have to reconcile to a new world order where they would have to give space to leadership from other parts of the world. “While vigorous nationalism is rising, countries should avoid isolation caused by protectionism,” Frank-Jürgen Richter, chairman of Horasis, said. Globalisation will work only if it inspires goodwill and is conducted transparently, said Jose Manuel Barroso, vice chairman, Goldman Sachs International and former President of the European Commission. “Currently those who take initiatives are on the extremes, what we need is a more enlightened leadership: not only political, but corporate leadership as well,” he stated. In India, Prime Minister Narendra Modi is driving change not just for India, but also countries in the Indian Ocean and the BIMSTEC region. The BIMSTEC countries include Bangladesh, Sri Lanka, Thailand, Myanmar and Bhutan. At the recent Shanghai Cooperation Organisation (SCO) meeting in Bishkek, Modi made it clear that emerging markets will create their own growth path. While collaboration with western economies will remain important, self-interest will influence economic policies. Modi is pursuing strong relations with China, Russia, EU and US independently, to carve a clear position for India in the world. The conflict among the economic giants will fester and could even escalate over the next few years. This is now the ideal time for the new wave of leadership to control the destinies of its people, long in the hands of colonial and neo-colonial forces. The billions in Asia and Africa deserve this shift in power. (This article was originally published on The DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Rattling old world order: Emerging markets should take charge

India is embracing the use of artificial intelligence in a confident but steady manner. Government agencies, start-ups and large corporations are applying it to various functions and processes.

Most of the start-up ecosystem is heavily dependent on the use of new technologies including AI to achieve cost and organisational efficiencies. For the start-ups, using the technology is a natural step if not essential.&nbsp;

With good ideas, but low market presence they depend on AI-based insights to expand in the market. Larger organisations, however, are approaching the technologies with more care and caution. Not least because their size often hinders agility to change over to new systems. Such companies are deploying AI for specific functions of new business divisions.

Individuals are more digital these days than most organisations. Without our realisation, basic AI is already managing our personal and work lives through emails, work processes and even entertainment.

However, India hasn’t invested in AI at the scale required. The key recommendation by a NITI Aayog paper on AI includes setting up collaborative structures between academia, government, industry to create AI-based solutions for economic and development challenges.

A three-way collaboration between government, industry and academia is required for India specific challenges. Since many companies don’t have the risk-taking ability to invest in AI-based pilot projects, a structure for collaboration is needed. This can’t be done by the government alone either. The industry has the capital but not the risk-taking ability. The government can take the risk but doesn’t have inherent knowledge.&nbsp;

Academia has the structure but not the talent. Tech companies are innovative, but they don’t always conform to regulation and are often misguided. But someone has to bring them together. Globally several countries are trying to experiment with structures that will allow them to bring the important stakeholders together including citizens.

The report recognises this, “Many countries have instituted dedicated public offices such as Ministry of AI (UAE), and Office of AI and AI Council (UK) while China and Japan have allowed existing ministries to take up AI implementation in their sectoral areas. Not just national governments, but even local city governments have become increasingly aware of the importance and potential of AI and have committed public investments.”

What form can a structure like this take? Can there be a national body that brings everyone together? Will it be a Ministry of AI? India is yet to clarify its thoughts on this. What is clear is that India will need a body, perhaps not a ministry in the way we know it now. What is required is a coordinating and catalysing body that can guide, shape and enable the use of AI.

Some work has already begun with global organisations like the World Economic Forum (WEF) which is trying to get multiple stakeholders to grasp the importance of AI and related technologies. The Centre for Fourth Industrial Revolution (C4IR) is a global hub created by WEF to improve the adoption of new technologies in a sustainable, responsible and collaborative manner, and to minimise their negative effects in the society.

Prime Minister Narendra Modi had launched the C4IR in October. Mumbai will host the centre for India. Other centres are in San Francisco, Tokyo and Beijing. The over 45 global corporate partners and members include Reliance Industries, Salesforce, Wipro, ABB and SAP.

For India, the C4IR has chosen to support and guide the usage of drones, artificial intelligence and blockchain. The private sector is already using technologies but its growth can be impeded if the government policies don’t keep pace.

C4IR is working with NITI Aayog on expanding access to data to accelerate the adoption of artificial intelligence in sectors such as healthcare, education, smart cities &amp; infrastructure, and smart mobility and transportation. The Centre will support the creation of a National Data Marketplace for India through which available data across these different sectors can be collected and integrated for targeted decision making and analyses using artificial intelligence.

In each of these sectors, the information about various dimensions is fragmented across various bodies that capture and store the data. There is virtually no protocol or framework where this data can be annotated, pooled and analysed. C4IR will help bring all relevant stakeholders together to create governance frameworks, systems and processes that will allow government bodies, private sector and individuals to pool such data and be incentivised for their contribution. For example, in the healthcare sector information about diseases, prevention efforts and clinical trials are distributed across various agencies like private hospitals, pharmaceutical companies and government clinics. For smart data analysis, all healthcare data should be created, curated and stored under a common protocol.

Collaborative structures like these have the potential of transforming the way government and private sector collaborate. Technology can bring a strong bond of trust which will be essential for pooling information and applying it in productive ways.

Though AI by itself is an important tool, the changes it will trigger will be much deeper and beneficial for an emerging economy like India.

(This article was originally published on DNA. Read the <a href="https://www.dnaindia.com/analysis/column-india-s-progress-on-artificial-intelligence-route-2698481">original article)</a>

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

India is embracing the use of artificial intelligence in a confident but steady manner. Government agencies, start-ups and large corporations are applying it to various functions and processes.

India is embracing the use of artificial intelligence in a confident but steady manner. Government agencies, start-ups and large corporations are applying it to various functions and processes. Most of the start-up ecosystem is heavily dependent on the use of new technologies including AI to achieve cost and organisational efficiencies. For the start-ups, using the technology is a natural step if not essential. With good ideas, but low market presence they depend on AI-based insights to expand in the market. Larger organisations, however, are approaching the technologies with more care and caution. Not least because their size often hinders agility to change over to new systems. Such companies are deploying AI for specific functions of new business divisions. Individuals are more digital these days than most organisations. Without our realisation, basic AI is already managing our personal and work lives through emails, work processes and even entertainment. However, India hasn’t invested in AI at the scale required. The key recommendation by a NITI Aayog paper on AI includes setting up collaborative structures between academia, government, industry to create AI-based solutions for economic and development challenges. A three-way collaboration between government, industry and academia is required for India specific challenges. Since many companies don’t have the risk-taking ability to invest in AI-based pilot projects, a structure for collaboration is needed. This can’t be done by the government alone either. The industry has the capital but not the risk-taking ability. The government can take the risk but doesn’t have inherent knowledge. Academia has the structure but not the talent. Tech companies are innovative, but they don’t always conform to regulation and are often misguided. But someone has to bring them together. Globally several countries are trying to experiment with structures that will allow them to bring the important stakeholders together including citizens. The report recognises this, “Many countries have instituted dedicated public offices such as Ministry of AI (UAE), and Office of AI and AI Council (UK) while China and Japan have allowed existing ministries to take up AI implementation in their sectoral areas. Not just national governments, but even local city governments have become increasingly aware of the importance and potential of AI and have committed public investments.” What form can a structure like this take? Can there be a national body that brings everyone together? Will it be a Ministry of AI? India is yet to clarify its thoughts on this. What is clear is that India will need a body, perhaps not a ministry in the way we know it now. What is required is a coordinating and catalysing body that can guide, shape and enable the use of AI. Some work has already begun with global organisations like the World Economic Forum (WEF) which is trying to get multiple stakeholders to grasp the importance of AI and related technologies. The Centre for Fourth Industrial Revolution (C4IR) is a global hub created by WEF to improve the adoption of new technologies in a sustainable, responsible and collaborative manner, and to minimise their negative effects in the society. Prime Minister Narendra Modi had launched the C4IR in October. Mumbai will host the centre for India. Other centres are in San Francisco, Tokyo and Beijing. The over 45 global corporate partners and members include Reliance Industries, Salesforce, Wipro, ABB and SAP. For India, the C4IR has chosen to support and guide the usage of drones, artificial intelligence and blockchain. The private sector is already using technologies but its growth can be impeded if the government policies don’t keep pace. C4IR is working with NITI Aayog on expanding access to data to accelerate the adoption of artificial intelligence in sectors such as healthcare, education, smart cities & infrastructure, and smart mobility and transportation. The Centre will support the creation of a National Data Marketplace for India through which available data across these different sectors can be collected and integrated for targeted decision making and analyses using artificial intelligence. In each of these sectors, the information about various dimensions is fragmented across various bodies that capture and store the data. There is virtually no protocol or framework where this data can be annotated, pooled and analysed. C4IR will help bring all relevant stakeholders together to create governance frameworks, systems and processes that will allow government bodies, private sector and individuals to pool such data and be incentivised for their contribution. For example, in the healthcare sector information about diseases, prevention efforts and clinical trials are distributed across various agencies like private hospitals, pharmaceutical companies and government clinics. For smart data analysis, all healthcare data should be created, curated and stored under a common protocol. Collaborative structures like these have the potential of transforming the way government and private sector collaborate. Technology can bring a strong bond of trust which will be essential for pooling information and applying it in productive ways. Though AI by itself is an important tool, the changes it will trigger will be much deeper and beneficial for an emerging economy like India. (This article was originally published on DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

India’s progress on Artificial Intelligence route

After the recent G20 summit in Argentina, it is clear that global groups do not have the ability, strength and willingness to collaborate for creating a better world.&nbsp;

World powers are hopelessly divided over several issues. The deep divisions between Russia, US, EU, China, India, the oil majors and emerging economies is creating an environment where no one can really depend on anyone else.&nbsp;

And this does not include the increasingly irrelevant United Kingdom, which is still thrashing around with the Brexit noose around its neck. &nbsp;

The relationships between all these countries will become more complex before it eases off. For decades, western powers evangelised a type of globalisation that benefitted them more than the others. As Asian economies began to realise the unjust rules that had been foisted on the world, they revolted.&nbsp;

When they demanded equal access to their markets, western countries had to step back. Much of this tussle led to the near collapse of the World Trade Organisation (WTO), which appeared to have been created only to open emerging economies while protecting western markets.&nbsp;

Despite this, countries like India, China and Brazil managed to create economic strengths that could rival, or at least threaten the control of western economies.&nbsp;

As manufacturing shifted to China and services moved to countries like India and South East Asia, Europe and the US realised the weaknesses in their own economies.&nbsp;

Western powers used WTO to attack protectionism in emerging markets for decades. It was normal for visiting delegations to demand greater access in sectors with higher FDI limits. Now, the biggest howls to protect markets are emerging from EU and US.&nbsp;

The trade war between China and the US is the most prominent symbol of such a shift in attitudes. In many ways, China is clearing the way for emerging economies to follow. Develop internal strengths that can compete with the best in the world.&nbsp;

Security is the other dimension that grabbed the attention of the G20 leaders. However, there is not much that they can do. Russia is having its way in Ukraine. Saudi Arabia continues with its illiberal ways. US is refusing to fund NATO even as the EU wonders whether it has the resources to manage its own security.&nbsp;

In such a scenario, it is important that Asia determines its own future. Long dependent and impacted by the policies of the West, it is time that it created a new Asian order for itself.&nbsp;

At the recent Horasis Asia Summit in Vietnam, the former Director General of WTO and ex-Secretary General of UNCTAD, Supachai Panitchpakdi, was emphatic about self-reliance in the region. “We need a spirit of collaboration in Asia that can allow it to overcome its differences to become a formidable force in the world,” he stated.&nbsp;

For this, Asian countries have to create new frameworks of collaboration, which allow healthy competition and cooperation. The centre of economic gravity is shifting to Asia.&nbsp;

According to IMF’s regional economic outlook, China’s growth is projected to ease to 6.6 per cent, partly reflecting the authorities’ financial, housing, and fiscal tightening measures.&nbsp;

Progress in Japan has been above potential for eight consecutive quarters and is expected to remain strong this year at 1.2 per cent. And in India, growth is expected to rebound to 7.4 per cent, following temporary disruptions related to the currency exchange initiative and the rollout of the Goods and Services Tax.

The IMF goes on to say that Asia is expected to grow by around 5½ per cent this year, accounting for nearly two-thirds of global growth, and the region remains the world’s most dynamic by a considerable margin.

Add to this, growing consuming populations. A study by Brookings points out that half the world is now middle class or wealthier and most of it will be in Asia.&nbsp;

Calculations by authors Homi Kharas and Kristofer Hamel suggest that the middle-class markets in China and India in 2030 will account for $14.1 trillion and $12.3 trillion respectively, comparable in size to a US middle-class market at that time of $15.9 trillion.

The implication is clear. Asia will lead the world consumption and thus set the tone for economic growth.&nbsp;

Several initiatives have come up in recent years to bring Asia closer together. The most important among these is the Regional Comprehensive Economic Partnership (RCEP). &nbsp;RCEP has the potential to become more than a free trade agreement and become a binding force for Asian economic giants. If negotiated in a fair manner, the agreement will enhance internal trade, investment and security linkages within Asia.&nbsp;

Several experts have cautioned India against being part of RCEP. The Indian government itself is in the process of listening to experts on the best way ahead at regional trade grouping. For India, it does make eminent sense to be an active and important voice in RCEP. This could help in creating an Asian order that decides its own future.&nbsp;

Even as the western economies resolve their internal issues, Asia has the opportunity to make the most of its resources to be the economic centre of gravity of the world.&nbsp;

(This article was originally published on DNA. Read the <a href="https://www.dnaindia.com/analysis/column-time-for-a-new-asian-order-2692343">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

&nbsp;

After the recent G20 summit in Argentina, it is clear that global groups do not have the ability, strength and willingness to collaborate for creating a better world.

After the recent G20 summit in Argentina, it is clear that global groups do not have the ability, strength and willingness to collaborate for creating a better world. World powers are hopelessly divided over several issues. The deep divisions between Russia, US, EU, China, India, the oil majors and emerging economies is creating an environment where no one can really depend on anyone else. And this does not include the increasingly irrelevant United Kingdom, which is still thrashing around with the Brexit noose around its neck. The relationships between all these countries will become more complex before it eases off. For decades, western powers evangelised a type of globalisation that benefitted them more than the others. As Asian economies began to realise the unjust rules that had been foisted on the world, they revolted. When they demanded equal access to their markets, western countries had to step back. Much of this tussle led to the near collapse of the World Trade Organisation (WTO), which appeared to have been created only to open emerging economies while protecting western markets. Despite this, countries like India, China and Brazil managed to create economic strengths that could rival, or at least threaten the control of western economies. As manufacturing shifted to China and services moved to countries like India and South East Asia, Europe and the US realised the weaknesses in their own economies. Western powers used WTO to attack protectionism in emerging markets for decades. It was normal for visiting delegations to demand greater access in sectors with higher FDI limits. Now, the biggest howls to protect markets are emerging from EU and US. The trade war between China and the US is the most prominent symbol of such a shift in attitudes. In many ways, China is clearing the way for emerging economies to follow. Develop internal strengths that can compete with the best in the world. Security is the other dimension that grabbed the attention of the G20 leaders. However, there is not much that they can do. Russia is having its way in Ukraine. Saudi Arabia continues with its illiberal ways. US is refusing to fund NATO even as the EU wonders whether it has the resources to manage its own security. In such a scenario, it is important that Asia determines its own future. Long dependent and impacted by the policies of the West, it is time that it created a new Asian order for itself. At the recent Horasis Asia Summit in Vietnam, the former Director General of WTO and ex-Secretary General of UNCTAD, Supachai Panitchpakdi, was emphatic about self-reliance in the region. “We need a spirit of collaboration in Asia that can allow it to overcome its differences to become a formidable force in the world,” he stated. For this, Asian countries have to create new frameworks of collaboration, which allow healthy competition and cooperation. The centre of economic gravity is shifting to Asia. According to IMF’s regional economic outlook, China’s growth is projected to ease to 6.6 per cent, partly reflecting the authorities’ financial, housing, and fiscal tightening measures. Progress in Japan has been above potential for eight consecutive quarters and is expected to remain strong this year at 1.2 per cent. And in India, growth is expected to rebound to 7.4 per cent, following temporary disruptions related to the currency exchange initiative and the rollout of the Goods and Services Tax. The IMF goes on to say that Asia is expected to grow by around 5½ per cent this year, accounting for nearly two-thirds of global growth, and the region remains the world’s most dynamic by a considerable margin. Add to this, growing consuming populations. A study by Brookings points out that half the world is now middle class or wealthier and most of it will be in Asia. Calculations by authors Homi Kharas and Kristofer Hamel suggest that the middle-class markets in China and India in 2030 will account for $14.1 trillion and $12.3 trillion respectively, comparable in size to a US middle-class market at that time of $15.9 trillion. The implication is clear. Asia will lead the world consumption and thus set the tone for economic growth. Several initiatives have come up in recent years to bring Asia closer together. The most important among these is the Regional Comprehensive Economic Partnership (RCEP). RCEP has the potential to become more than a free trade agreement and become a binding force for Asian economic giants. If negotiated in a fair manner, the agreement will enhance internal trade, investment and security linkages within Asia. Several experts have cautioned India against being part of RCEP. The Indian government itself is in the process of listening to experts on the best way ahead at regional trade grouping. For India, it does make eminent sense to be an active and important voice in RCEP. This could help in creating an Asian order that decides its own future. Even as the western economies resolve their internal issues, Asia has the opportunity to make the most of its resources to be the economic centre of gravity of the world. (This article was originally published on DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Centre of economic gravity is shifting to Asia

Despite all the strides the country has made since Independence, India has struggled to develop, manage and conserve two vital fluids — water and oil — that are essential for its economic health. Water and crude oil are the fluids that impact every citizen of this country and the sustained supply of both at an affordable cost and reliable quality is absent. Almost every year we have lurched from crisis to crisis because we have not invested enough in the development and management of water and oil.

Dependence on imported oil&nbsp

Let’s start with oil. India is suffering from inordinately high fuel prices at the moment and with consumption rising steadily, the country is likely to remain woefully dependent on the import of crude oil. In 2012, India imported just over 171 million metric tonnes of crude oil while in 2017-2018, this figure has grown to over 220 million metric tonnes. The biggest oil suppliers to India include Iraq, Iran, Saudi Arabia, UAE, Nigeria, and Venezuela. Statistics also show that the cost of imports has risen over 25 per cent in the past one year to $87 billion in 2017-18 and is expected to grow by another $26 billion in the current year.

It is no secret that the dependence on oil and gas imports for energy is very high for India. Currently, about 95 per cent of LPG and 86 per cent of crude oil that India consumes is imported. So when there is global volatility, the country suffers. The fall of the rupee combined with local taxes ensure that consumers end up with intimidating retail prices for oil and gas. And, with US sanctions on Iran curbing the supply of oil in the global markets, there is no guarantee that oil supplies will come down anytime soon.&nbsp

The problems are there, but India is not bereft of solutions. Here are some steps which the country can take to minimize its dependence on foreign sourcing and reduce its fuel burden.

Domestic oil and gas production

The national exploration policy has improved since the NDA government took charge, but still, the pace and efficiency of domestic exploration and development of oil and gas have to be enhanced.

Own, develop oil sources abroad&nbsp

The second best option after domestic sources is those which may be global but owned by Indian companies. ONGC, Indian Oil and Bharat Petroleum are among the Indian companies that own oil and gas fields abroad. The acquisition of more should be made a key priority.

Enhance alternative energy&nbsp

The focus on alternate energy, especially solar and wind energy, has picked up the pace in recent years. These energy sources should try to replace fossil fuels as much as possible. Serious challenges remain on the transmission of solar energy which is impeding its large scale usage.

Electric vehicles&nbsp 
 
After years of confusion, the government seems to be coming around to a clear policy on promoting electric vehicles. This is the need of the hour as reducing dependence on petrol and diesel is the best option to prevent the shocks of volatile oil prices. These are some of the steps that could solve India’s oil problems.

Tackling India’s water woes&nbsp 
 
Moving on to water, India’s biggest problem is its over-dependence on the monsoon. Just 60 per cent of the country receives irrigated water. The rest of the land is dependent on monsoon rains. The major problem here though is that India has not invested in irrigation for decades. Though investment in irrigation is rising, it will take years for the country to reduce its reliance on the monsoon. Even if it does this, the country also has to deal with the problem of water wastage with rainwater harvesting struggling to become popular in many parts of urban India. In non-urban areas, poor water management, deforestation, and unchecked development are not allowing water bodies to be sufficiently regenerated.

Lessons from Kerala

The recent floods in Kerala have highlighted another disappointing dimension of India’s dismal water management. The management of river dams by state authorities was so poor that much of the natural disaster’s impact was caused by waters released by the dams. Even though the dams were almost full before that phase of the heaviest rains, the water was not released in anticipation. As a result, when the rains intensified, the dam waters were also released. A combination of heavy rains and dam water flowing together was more than the capacity of rivers which flooded vast stretches of habitation and arable land.

This swing between drought and floods is an enduring tragedy for India’s economy and ecology. Add to this the volatility and import dependence on oil, and it becomes clear that India is wasting vital fluids and resources. Investment in water management and oil production is a priority for the country’s growth, for without it, India will remain stunted and weak. Focusing on these two should be a national priority with equal and urgent action from states. 
&nbsp

(This article was first published on The DNA. Read the <a href="https://www.dnaindia.com/analysis/column-fixing-india-s-oil-water-woes-2663591">original article</a>.)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

&nbsp

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Almost every year we have lurched from crisis to crisis because we have not invested enough in the development and management of water and oil.

Despite all the strides the country has made since Independence, India has struggled to develop, manage and conserve two vital fluids — water and oil — that are essential for its economic health. Water and crude oil are the fluids that impact every citizen of this country and the sustained supply of both at an affordable cost and reliable quality is absent. Almost every year we have lurched from crisis to crisis because we have not invested enough in the development and management of water and oil. Dependence on imported oil Let’s start with oil. India is suffering from inordinately high fuel prices at the moment and with consumption rising steadily, the country is likely to remain woefully dependent on the import of crude oil. In 2012, India imported just over 171 million metric tonnes of crude oil while in 2017-2018, this figure has grown to over 220 million metric tonnes. The biggest oil suppliers to India include Iraq, Iran, Saudi Arabia, UAE, Nigeria, and Venezuela. Statistics also show that the cost of imports has risen over 25 per cent in the past one year to $87 billion in 2017-18 and is expected to grow by another $26 billion in the current year. It is no secret that the dependence on oil and gas imports for energy is very high for India. Currently, about 95 per cent of LPG and 86 per cent of crude oil that India consumes is imported. So when there is global volatility, the country suffers. The fall of the rupee combined with local taxes ensure that consumers end up with intimidating retail prices for oil and gas. And, with US sanctions on Iran curbing the supply of oil in the global markets, there is no guarantee that oil supplies will come down anytime soon. The problems are there, but India is not bereft of solutions. Here are some steps which the country can take to minimize its dependence on foreign sourcing and reduce its fuel burden. Domestic oil and gas production The national exploration policy has improved since the NDA government took charge, but still, the pace and efficiency of domestic exploration and development of oil and gas have to be enhanced. Own, develop oil sources abroad The second best option after domestic sources is those which may be global but owned by Indian companies. ONGC, Indian Oil and Bharat Petroleum are among the Indian companies that own oil and gas fields abroad. The acquisition of more should be made a key priority. Enhance alternative energy The focus on alternate energy, especially solar and wind energy, has picked up the pace in recent years. These energy sources should try to replace fossil fuels as much as possible. Serious challenges remain on the transmission of solar energy which is impeding its large scale usage. Electric vehicles After years of confusion, the government seems to be coming around to a clear policy on promoting electric vehicles. This is the need of the hour as reducing dependence on petrol and diesel is the best option to prevent the shocks of volatile oil prices. These are some of the steps that could solve India’s oil problems. Tackling India’s water woes Moving on to water, India’s biggest problem is its over-dependence on the monsoon. Just 60 per cent of the country receives irrigated water. The rest of the land is dependent on monsoon rains. The major problem here though is that India has not invested in irrigation for decades. Though investment in irrigation is rising, it will take years for the country to reduce its reliance on the monsoon. Even if it does this, the country also has to deal with the problem of water wastage with rainwater harvesting struggling to become popular in many parts of urban India. In non-urban areas, poor water management, deforestation, and unchecked development are not allowing water bodies to be sufficiently regenerated. Lessons from Kerala The recent floods in Kerala have highlighted another disappointing dimension of India’s dismal water management. The management of river dams by state authorities was so poor that much of the natural disaster’s impact was caused by waters released by the dams. Even though the dams were almost full before that phase of the heaviest rains, the water was not released in anticipation. As a result, when the rains intensified, the dam waters were also released. A combination of heavy rains and dam water flowing together was more than the capacity of rivers which flooded vast stretches of habitation and arable land. This swing between drought and floods is an enduring tragedy for India’s economy and ecology. Add to this the volatility and import dependence on oil, and it becomes clear that India is wasting vital fluids and resources. Investment in water management and oil production is a priority for the country’s growth, for without it, India will remain stunted and weak. Focusing on these two should be a national priority with equal and urgent action from states. (This article was first published on The DNA. Read the original article.) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Opinion: Fixing India’s oil, water woes

There was a time when the phrase “eye in the sky” meant a satellite. Orbiting a few thousand kilometres in the space, quietly connecting and watching us. Today those “eyes in the sky” could be just a few feet above your head. The buzz of a small drone over wedding parties is a familiar sound to many already. A wedding party without drone based photography is considered as lame today as a party without a dance floor a decade ago.

Drones come in several sizes and shapes with varying utility. They also have several names: Unmanned aircraft systems, remotely piloted aircraft system and unmanned aerial vehicles. These can fly at a few feet above your head to a few kilometres in the sky.&nbsp

From weaponised aircraft, the important shift now has been towards the use of drones by civilians. The recent policy announcement by the Director General of Civil Aviation (DGCA) has laid down the law for usage of drones by civilians. In essence, the policy says that people are free to fly nano-drone (weighing 250 grams or less). Some restrictions include a flying height limit and staying away from sensitive installations. So if you are not near an airport or a government building, you can fly a nano-drone for recreation or as a service.

For larger and any other type, size or category of drones, an unmanned aircraft operator permit will be required. The operator will have to register the drone and follow strict rules to ensure air safety and social privacy. The remote pilots will need certified training and security clearance before they launch a drone in the sky. Then there are technical specifications and maintenance rules which require the drone operator to keep relevant authorities informed at all times.

These rules have been termed restrictive and suffocating by many but it seems that the government is erring on the side of caution. This is a tenable approach by the DGCA since virtually no one in the country can anticipate how drones would be deployed if there was unhindered freedom. At this early stage of drone usage in India, it is better to begin with a tightly controlled environment and then ease up the rules over time.

The need and usage of drones for civilian use is set to explode. Drones can be incredibly useful for town planning, utility mapping, road surveys, forest surveys, agriculture, traffic control and even crowd management at large gatherings. In a country where urban areas are congested and rural areas are poorly connected, drones can offer several critical services. Medical support, delivery of products, emergency relief are just a few possibilities. It is no exaggeration to say that drones will offer services that we can’t anticipate right now.

Demand for drone services will soar rapidly and we will witness the rise of new industry in the country. This industry will include manufacturers, importers, operators, training institutions and services companies. DGCA has begun to offer accreditation to training institutes already. The drone pilots will have to study basic radio telephony, flight planning procedures, basic aviation meteorology among other subjects. There are no figures available yet but the entire industry could spawn the creation of hundreds of thousands of jobs.

Investment in local manufacturing will also rise and the demand for trained professionals will increase. An important category of job creation will be for data scientists who apply the information gathered by drones for various objectives. Already, several drone based start-ups are offering services for government bodies and private corporations. From district commissioners to telecom tower companies, almost everyone can think of a use for a drone.

The official policy will offer the legal framework to enable the creation of a totally new eco-system. Already the industry has come together to create a Drone Federation of India. The next step for the government is to create an informed environment with adequate capability in relevant official agencies. A comprehensive effort will be required for training and sensitising local administration, judiciary and enforcement agencies. Soon the boundaries of the policy will be tested and the loopholes will be exploited (willingly or not). A young industry with enthusiastic operators will end up making mistakes and there will be a learning curve for all stakeholders.

However, to ensure the regulatory response is balanced, officialdom will have to be trained as well. Currently, the DGCA has to monitor and manage a few flying zones. With the rise of drones, every neighbourhood will be a flying zone. How will the government machinery monitor safe flying that does not violate the rules? How will the government ensure that permissions are granted rapidly without red tape strangling new ideas? These questions need to be dealt with.

India is witnessing the birth and rise of a new industry which has no historical precedence. The drone industry is new both to the world and India but the country needs to quickly seize its potential. Drones can offer tremendous information to a data poor country like India and after the IT and space industry, it is likely to have the most impact on the country. The government must see this industry as an economic catalyst to ensure that those “eyes in the sky” can help India see itself better.

(This article was first published on The DNA. Read the <a href="https://www.dnaindia.com/analysis/column-drone-industry-takes-flight-2658435">original article</a>.)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) 
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The drone industry is new both to the world and India but the country needs to quickly seize its potential

There was a time when the phrase “eye in the sky” meant a satellite. Orbiting a few thousand kilometres in the space, quietly connecting and watching us. Today those “eyes in the sky” could be just a few feet above your head. The buzz of a small drone over wedding parties is a familiar sound to many already. A wedding party without drone based photography is considered as lame today as a party without a dance floor a decade ago. Drones come in several sizes and shapes with varying utility. They also have several names: Unmanned aircraft systems, remotely piloted aircraft system and unmanned aerial vehicles. These can fly at a few feet above your head to a few kilometres in the sky. From weaponised aircraft, the important shift now has been towards the use of drones by civilians. The recent policy announcement by the Director General of Civil Aviation (DGCA) has laid down the law for usage of drones by civilians. In essence, the policy says that people are free to fly nano-drone (weighing 250 grams or less). Some restrictions include a flying height limit and staying away from sensitive installations. So if you are not near an airport or a government building, you can fly a nano-drone for recreation or as a service. For larger and any other type, size or category of drones, an unmanned aircraft operator permit will be required. The operator will have to register the drone and follow strict rules to ensure air safety and social privacy. The remote pilots will need certified training and security clearance before they launch a drone in the sky. Then there are technical specifications and maintenance rules which require the drone operator to keep relevant authorities informed at all times. These rules have been termed restrictive and suffocating by many but it seems that the government is erring on the side of caution. This is a tenable approach by the DGCA since virtually no one in the country can anticipate how drones would be deployed if there was unhindered freedom. At this early stage of drone usage in India, it is better to begin with a tightly controlled environment and then ease up the rules over time. The need and usage of drones for civilian use is set to explode. Drones can be incredibly useful for town planning, utility mapping, road surveys, forest surveys, agriculture, traffic control and even crowd management at large gatherings. In a country where urban areas are congested and rural areas are poorly connected, drones can offer several critical services. Medical support, delivery of products, emergency relief are just a few possibilities. It is no exaggeration to say that drones will offer services that we can’t anticipate right now. Demand for drone services will soar rapidly and we will witness the rise of new industry in the country. This industry will include manufacturers, importers, operators, training institutions and services companies. DGCA has begun to offer accreditation to training institutes already. The drone pilots will have to study basic radio telephony, flight planning procedures, basic aviation meteorology among other subjects. There are no figures available yet but the entire industry could spawn the creation of hundreds of thousands of jobs. Investment in local manufacturing will also rise and the demand for trained professionals will increase. An important category of job creation will be for data scientists who apply the information gathered by drones for various objectives. Already, several drone based start-ups are offering services for government bodies and private corporations. From district commissioners to telecom tower companies, almost everyone can think of a use for a drone. The official policy will offer the legal framework to enable the creation of a totally new eco-system. Already the industry has come together to create a Drone Federation of India. The next step for the government is to create an informed environment with adequate capability in relevant official agencies. A comprehensive effort will be required for training and sensitising local administration, judiciary and enforcement agencies. Soon the boundaries of the policy will be tested and the loopholes will be exploited (willingly or not). A young industry with enthusiastic operators will end up making mistakes and there will be a learning curve for all stakeholders. However, to ensure the regulatory response is balanced, officialdom will have to be trained as well. Currently, the DGCA has to monitor and manage a few flying zones. With the rise of drones, every neighbourhood will be a flying zone. How will the government machinery monitor safe flying that does not violate the rules? How will the government ensure that permissions are granted rapidly without red tape strangling new ideas? These questions need to be dealt with. India is witnessing the birth and rise of a new industry which has no historical precedence. The drone industry is new both to the world and India but the country needs to quickly seize its potential. Drones can offer tremendous information to a data poor country like India and after the IT and space industry, it is likely to have the most impact on the country. The government must see this industry as an economic catalyst to ensure that those “eyes in the sky” can help India see itself better. (This article was first published on The DNA. Read the original article.) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Opinion: Drone Industry takes flight

Author

Zee News Rajasthan

Editor

Pranjal Sharma

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