5. PROFESSORS’ DESK
GUEST ARTICLE
BEYOND
Will the Newspaper Industry survive in the
Growing Era of Smartphones and Tablets? 67
Dr. Shivaji Banerjee
Aman Mishra
Scams : The India Story 72
Dr. Anjan Chakravarty
FDI Inflows in India in a
Comparative Asian Perspective 74
Prof Samrat Roy
A Comprehensive View on
Corporate Criminal Liability 77
Prof. Rinita Das
Change in the Paradigm of Accounting 79
Prof. Subir Srimani
Rohit Agarwal
The Impact of Loopholes in Indian Laws 82
Prof. Dimple K Anand
Revealing the Potency of Hyper-connections 86
V. Raghunathan
Free Trade Agreements and
the Consolidation of Democracy 88
Xuepeng Liu, Kennesaw State University
Emanuel Ornelas, London School of Economics
Revelation : The Unveiling of the Nouveautes 91
Mrs. Soma Sen
Music : C = f(M) 93
Ronit Biswas
Give me another chance I Wanna Grow up once again 97
Mayank Bansal
Redefining Marketing - The Era of Campaigns 101
Saket Mehrotra
PROJECTS
LOOKING BACK
ACHIEVEMENTS 120
FUN SECTION 121
REFLECTIONS 125
THE XCS BOARD 127
THE EDITORIAL BOARD 128
ADVERTISEMENTS 129
Evening - Finance
Behavioural Finance : Understanding
the Behavioural Revolution in Finance 104
Prof. Saptarshi Ray
Nikita Agarwal
Evening - Marketing
Changing Consumer-Scape : A Study on the Chage in
Customer and Consumer Behaviour in
the Indian Cosmetics Industry 108
Prof. Soma Nath
Sharanya Chakraborty
Morning - Marketing
Effectiveness of Educational Training Institutes
in Kolkata - A Study 111
Dr. Shivaji Banerjee
Somjit Ghosh
Morning - Finance
Impact of Industrial Dispute on Indian Automobile
Sector : A Case Study on Maruti Suzuki’s
Manesar Plant Lockout - 2012 115
Prof. Abhik Kumar Mukherjee
Vishal Agarwal
Revealing an XCSer 118
Harsh Agarwal
Tarish Bagrodia
6. Message | PRINCIPAL
04
Rev. Dr. Fr Felix Raj, SJ
St. Xavier's College is an institution which believes in challenging its students in every aspect of life. With
the objective to inculcate and promote not only academics and sports but also the humane side of an
individual, it inspires its students towards greatness and thus delivers socially well versed souls. "Nihil
Ultra" aptly fits the institution's beliefs and teaches the students to incessantly aspire for growth and
development.
Youthink is a great platform for the students to voice their opinions and hone their skills. It aims to
maximize their potential and strengthen their abilities. This year the 8th Volume of Youthink is being
launched by the Xavier's Commerce Society who have constantly been setting new standards for
themselves. The dedication and professionalism demonstrated by them reflects highly upon this College.
I lend my greatest appreciation to the members of XCS who strive hard to give the students an
opportunitytorefinetheirknowledgeandawarenessoftheworldandcommunicatetheirthoughts.They
trulyliveuptotheirmantra'Dreams.Development.Destiny.'
'Revelation' can be interpreted as a dramatic disclosure of something previously unknown. It takes into
purview an array of diverse, unexplored facets which have significant impact on the world. The desire to
know the unknown is probably the strongest in an individual and this year that is what XCS ventures to
exploit. The concealed tales and truths of the world continue to challenge the status quo prevailing and
hence it is essential to be familiar with them. Such enlightenment would lead to the advent of cognition
andabolishmentofignorance.
I would like to applaud the efforts of the editorial team of Xavier's Commerce Society who have come up
with such a phenomenal concept and theme for this year's Youthink. It was a strenuous task but they
implementeditflawlessly.
A special mention is to be made to the authors of the articles who have thrown light on crucial issues of
thecorporatedomainwiththeircoherentresearchandrationalanalysis.
Congratulations to Xavier's Commerce Society for another exemplary success. You have upheld the
objectiveofthisCollegeandreinstatedineveryonethatthereisactually"NothingBeyond".
NihilUltra!MayGodblessusall.
Message From
Rev. Dr. Fr. Felix Raj, SJ
Principal, St. Xavier's College
7. Message | VICE PRINCIPAL, EVENING
YOUTHINK | 2013 | Vol. VIII 05
Prof. M. M. Rahman
According to the Concise Oxford Dictionary, revelation is the “disclosure of something vast unknown and
unexpected”. Both science and philosophy are explorations-one of the outer and outlying world and the
otherofthevastinnernatureofmanandhismind.
Whether in business or in achievement of the purpose of life, the world is full of shocks and unknowns.
Onlybyexploringsuchdarkpocketsoftheunknownandabolishingignorancethatmancanproceedfrom
one level to another of civilization. As we look at the evolution of mankind we find that there was a dark
age of superstitions. Gradually, man develops spiritually, and the Upanishads, the Bible and the Quran
were the culmination in the spiritual world. Likewise, in the world of science and technology, in space
research and in the world of manufacturing and farming we notice a revolution and this is still
considerablyprogressing.
The initiative taken by the Xavier's Commerce Society to reflect on the domain of revelation is absolutely
praiseworthy. My best wishes to the publication of new edition of YOUTHINK, which I hope, will be a
revelationtomany.
Message From
Prof. M. M. Rahman
Vice Principal, Dept. of Commerce (Evening), St. Xavier's College
8. Message From
Rev. Dr. Dominic Savio, SJ
Vice Principal, Dept. of Commerce, St. Xavier's College
Message | VICE PRINCIPAL
06
Rev. Dr. Dominic Savio, SJ
“Itistherarefortuneofthesedaysthatonemaythinkwhatonelikesandsaywhatonethinks.”
St. Xavier's College, Kolkata, has been empowering its students to embody what it means to learn, to
listen,andthentospeak-tofreelyexpresstheiropinionsandengageinhealthydialogue.
Followingthis,theXavier'sCommerceSociety,unfolds itsannual corporatejournal –Youthink Volume8–
whichfurtherhelpsthestudentstodisplayandexhibittheirpowerfulthoughtsandopinions.
Youthink envelops all the ideals, thoughts, ideas, which define the term “Revelation”, also the theme of
the journal this year. With the help of this arcane theme, the editors aim to explore and bring into light
various significant yet unknown aspects under Economics, Business, Politics, Sports, and International
Affairs. Youthink, therefore, helps students to keep up with current affairs and to spread the knowledge.
AsBuddhahadveryfamouslyremarked,
“Whowouldwishtoenjoyeducationalone,andtoforgetthosewhoarenotyetenlightened?”
I would like to congratulate and commend the efforts of the Xavier's Commerce Society, the Youthink
Editorial Team, and all the students and faculty members for contributing towards the success of this
journalandforenhancingourknowledgeabouttheworldofbusinessandbeyond.
9. Message | MANAGING EDITOR
YOUTHINK | 2013 | Vol. VIII 07
Message From
Between consciousness and awareness, there is a space. In that space lies our scope for intellectual
growth and learning. And in that learning lies human salvation. It is with this mantra in mind that the
Xavier's Commerce Society brings forth the eighth edition of its annual corporate journal “Youthink” with
thethemethisyearbeing“Revelation”.
The human mind always seeks to quench its thirst for knowledge. The theme “Revelation” centers itself
around this thirst to bring to light myriad unknown, unexplored and unventured facets to enable a better
understanding and awareness of the world we live in. It is not merely the affirmation of truths, the
discovery of which is not per se beyond the powers of reason. But it is also uncovering truths which are
otherwise inaccessible to the human mind- mysteries which when revealed leave the intellect of man far
superior to what it was prior to such unveiling. Hence, such new knowledge gained enables man to
reinterpretandappreciateinagreatermeasurethemarvelsoftheworldsurroundinghim.
Youthinkthisyear,thus,explorestheworldfromnotonlyfromanintellectualbutfromabraveandquitea
distinct viewpoint to lay emphasis on the importance of the “unknown” that surrounds us and how often
Mankind chooses to live in blissful ignorance and turns a blind eye to the same. For the gargantuan effort
that has gone into making this vision a successful accomplishment, I would like to take this opportunity to
extend a hearty congratulations to the XCS Editorial Board for their passion, perseverance and
commitment. A special mention must be made of the 3rd year editors responsible for turning this dream
intorealityandtotheentireXCSfamilyfortheirsupportforthesame.
Furthermore, this venture would not have been successful had it not been for the unflinching faith and
unwavering support of those eminent personalities who take out time from their busy schedules to share
their thoughts and ideas with us as interviews. Additionally, I would also like to express my gratitude
towards those professors and guests from India and abroad who share their views with us every year and
humbleuswiththeirscholarlyguidanceandnotablecontributions.
Last but definitely not the least, I would like to thank Father Principal Felix Raj for his all-encompassing
support for the magazine, Father Vice-Principal Dominic Savio for being the perfect guide and guardian
angel and to Prof. M. M. Rahman for his constant motivation and drive to achieve our dreams. Youthink
wouldhaveonlybeenadistantdreamhaditnotbeenforyoureverlastinginspirationandcompassion.
Sumona Ghosh
Sumona Ghosh
Managing Editor
10. Message From
Parth Poddar & Charu Singh
Message | EDITOR
08
'KnowledgeisPower'
As is customary, we would like to start our address by acknowledging the immense honour and mighty
responsibility of being accountable for Youthink vol 8. There was enormous pressure on our young
shoulders to replicate the good work of our predecessors and we have tried our utmost to fulfill some of
thoseexpectations.
We chanced upon the theme from the most unlikeliest of sources, Christopher Nolan's 'The Dark Knight'.
While reading about the film afterwards, we were surprised to discover that much of the plot had, in fact,
been contrived from a popular economic theory, namely, Nash's Game Theory. Which immediately made
us question, “Hey, how many people actually know that Joker is not crazy and his plans are based on a
NobelPrizewinningeconomictheory?”
This small desire to share this piece of information actually led to various debates over innumerable cups
of coffee, at the end of which we finally decided upon 'Revelation' as our theme. With this theme, we
aimedtochallengethemoreimaginativeand creativelyinclinedstudenttodeviatefromconventionsand
dare to explore the atypical avenues of the financial world. We intended to reveal hitherto little known
facts that have a major impact on our lives and economy. We aimed to explore how the fields of art,
literature, economics, physics, to name a few, are all really intertwined and have a direct impact on each
other.Askepticmayquestionthisstatement,butthenwewouldhaveAlanKrueger's'GreatGatsbycurve'
tothrowathim,whichhasbecomeanimperativetooltostudyintergenerationalincomeelasticity.
Revelation refers to delving into myriad areas with the aim of understanding them better. We tried to pick
outextremelyuncommonyetessentialareastodivulgeinformationinamannerthatwouldcaptivatethe
interest of all our readers. The greatest perk of having this responsibility was getting to meet one Lord
Meghnad Desai, an eminent economist and an absolutely wonderful and inspiring man. A chance to in
interactwithotherrenownedpersons likeMrs.Anuja Chauhan, Mr.ArunLaland Mrs.Sushma Swaraj was
alsocherishedbyus.
After months of perseverance, it was an unimaginable joy to see the living conclusion of all the effort and
time we put in. We would like to sincerely thank Rev. Dr. Felix Raj, S.J. who has been a steady pillar of
support throughout. Rev. Dr. Dominic Savio too deserves a special mention for being largely supportive
and encouraging us all the way. We are extremely grateful to Prof M. Rahman, for being a constant guide
and friend. Last but not the least, we would like to whole-heartedly thank “Ma'am”, who has, in her ever-
humble manner, forbidden us to mention her name in this address. Without her, not even a shred of what
we have achieved would have been possible. And of course, our beloved readers, for whom we try to do
ourbest.
Happyreading!
Parth Poddar Charu Singh
Joint Editors
11. YOUTHINK | 2013 | Vol. VIII 09
Feature |THE CURIOUS CASE OF GOLD PRICES IN INDIA
THE CURIOUS
CASE OF GOLD
PRICES IN INDIA
There is no denying that Indians love gold. We wear it, gift it, pledge it to our gods and use it as an investment tool. Though there is no official record
of the same, analysts believe that Indian households hoard gold worth a whopping 1.25 trillion dollars. What makes it so special? For starters, it
fulfils all traditional monetary functions such as the store of value, non-corrosion, and, ease in storage and transfer. What is unique though is its
legacy, next-to-zilch use in industry and its universal acceptance. It has one price, grade and quality standard. You can check its authenticity within
minutesatvirtuallynoextracost.So,eyebrowsareboundtorisewhengoldpricesplummetedtoa23monthlowinthemonthofJune.International
pricestankedto$1200andbelieveitornot,goldpricesaresettoposttheirworstquarterinternationallysincethelate1960's!
In India, this is reflected in terms of current account deficit and the tumbling cost of the rupee. Gold is India's second largest import, second only to
crude oil. The finance ministry has repeatedly urged Indians to regulate their love for the yellow metal. Unlike oil, gold is a luxury and according to
Chidambaram,spendingonthesamecanbeeasilylowered.DecreasingthehighgoldimportsisbeingconsideredasacrucialsteptopushtheIndian
economy out of the current account deficit crisis. Falling gold prices has spurred Indians to buy more. As a result, RBI and the finance ministry have
joined forces to discourage this spending spree. The government has raised import duties to 6% and doubled duty on gold alloy. This was obviously
notenoughaspricesdippedfurtherandbedlamensuedinternationally.Globalinvestorsdiscardedtheirinvestment,tooktoequitiesandthefearof
withdrawalofUSstimuluspackagescoupledwithsalesofbullionfurtherdecreasedpriceandstirreddemand.Thispropelledthegovernmenttoget
into action mode. With import duties now pegged at 8%, RBI took up the additional step of ending credit transactions unless they were taken up
with the aim of creating jewellery for export purposes. At the same time, they instructed rural banks to stop giving loans against gold. What the
All that glitters is not gold
“…gold imports
constituted a
substantial chunk of
the imports and is a
huge drain on the
Current Account…I
would therefore
appeal to the people
to moderate the
demand for gold
which leads to large
imports of gold.”
– P Chidambaram
Ayushi Mona, B.Com (Hons) 3rd Year
FEATURE
12. 10
Feature | THE CURIOUS CASE OF GOLD PRICES IN INDIA
government is effectively trying to do, is than its looks. It is a Herculean task to stop Though for a stumbling economy and a
reverse the law of demand by adopting Indian households from purchasing a high- struggling government, the fall in prices has
measures to restrict Indians from buying gold demand, reduced-cost commodity, which is come as manna from heaven. RBI is hoping
when it is at its cheapest. This is much harder alsoaninvestmenttool. that this will decrease the downward pressure
on the rupee, improve credit rating, pull fiscal
deficit down and bring in greater inflow of
foreignfunds.
The belief of the government was echoed by
the private sector when Reliance Capital took
the prudent approach by stopping investment
in gold backed funds. HDFC bank also jumped
on the bandwagon by restricting gold
purchases made via credit cards. They also
urged jewellers to stop easy EMI facilities for
making gold purchases. The largest jewellers'
association in India took its members to task
and got them to stop selling coins and bars,
whichformsasizablechunkofthegoldmarket.
It's not all rosy though. These restrictions have
sparked the fear that they will provoke illegal
imports of gold and deplete the government's
revenue. Another important aspect that has
been completely overlooked in this economic
tussle is the issue of the well-being and
employment of millions of people who work in
13. YOUTHINK | 2013 | Vol. VIII 11
Feature | THE CURIOUS CASE OF GOLD PRICES IN INDIA
TRIVIA
<
civilization.
<Goldpricehasincreased482%fromDec2000toMarch2013
<India is the world's largest importerof gold, accounting for 25% of
totalconsumption.
<In 2008 China overtook South Africa as the world's largest gold
producer, the first time since 1905 that South Africa has not been
thelargest.
<At price of $1205.5 an ounce, the value of all the gold in the world
is$6,412,310,567,488or$958foreachpersonontheplanet.
174,100 tonnes of gold have been mined since the beginning of
the gem and jewellery sector. Jewellers who there is an unexpected meltdown or
are facing a bear market after a decade have inflationary trends, god forbid. The Indian
decidedto push thesalesof diamond jewellery government also refuses to shoulder blame for
in these trying times. They have little choice. promoting gold coins, gold loan microfinance
Withdemandhittingtheroof,priceshittingthe companies and ETFs. Now, instead of curtailing
floor and the government chanting 'deficit, these institutions, they have taken the high
deficit', jewellers have little options when it and mighty route of cracking down on middle
comes to re-stocking these days. No wonder classconsumersandtheirweddingshopping.
diamonds are being pushed to the counter
How long will this slump sustain, then? We
assertively.
don't know. However, it is apparent that these
Jewellers are undoubtedly the worst sufferers nouveau regulations are suffocating the gold
of this predicament. They face a Hamlet-like industry and putting a blip on the livelihoods of
hamartia of 'To sell or not to sell'. Their thousands of small family owned gold shops.
challenges range from the onslaught of duties, The government should innovate by allowing
to the falling rupee, and to keeping aggressive selected stores to attract gold through bonds.
customers happy. This situation has prompted These Gold Traded Funds or Exchange Traded
jewellers to reorient their strategies such that Funds can be then allowed to utilise idle gold in
the falling gold prices and the weakened rupee the jewellery business thereby reducing deficit
do not hamper the longevity of their and removing double imports that currently
businesses. As things stand, the amount of take place for investment and designing
paperwork at a jewellery store and insipid purposes. This is one way to monetise idle gold
regulations (like restricting people from funds.
wearing jewellery costing more than 1 lakh on
In this entire hullabaloo over gold prices and
overseas vacations!) is enough to dishearten
import bills, what the government has
the most persistent of buyers. How does the
completely negated is our cultural legacy of
government even determine what is 'genuine'
owning gold- a safe, secure, multi-purpose
demandandwhatisnot?
asset that sustains in tough times. Instead of
However, this is not an unprecedented crisis; restricting petroleum imports (the
analystshadgloballypredictedthatgoldwould opportunity cost of pollution, anyone?) or
Only time will tell whether the government
face downward pressure. This is because gold cooking oil imports (by encouraging local
succeeds in its ministrations or not. As Charles
is sought mainly during inflationary or farmers to produce oilseeds); the government
De Gaulle said, “He who bets against gold bets
economically weaker seasons. Now that U.S. is has taken the easy route of stamping gold with
against 6000 years of recorded human history.
easing in post the 2008 recession and the EU a 'useless' stamp and pushing jewellery store
Leaders, beware. When it comes to Indians,
crisis has been taken stock of, there is no ownersagainstthewall.
goldcanneverbeold”.<
reason for prices to spike up until and unless
“cannot afford to
spend so much on
importing gold.
Nobody says gold
within the country
should not be used
for whatever
purpose. There is
enough gold within
the country. But
import of gold is
huge strain on the
current account.”
- P Chidambaram
14. 12
Feature | JUST A GAME
Most professional
sport has grown into
big business, driven
largely by television
and advertising. Note
above American Sport
in 1988 had "immense
wealth". Peter Dunne,
in 1992 said of auto
racing, it's
"less of a sport these
days than a
commercial break
doing 150 mph."
Indians all over the world must have felt a familiar sense of déjà vu at the end of the 2004
Athens Games. Yet another Olympic gone by, with just a lone medal to show for all the
effort. Skeletons tumbled out of the closet; the blame game started and the under-
performers came under fire. However, one man decided to take a slightly different course.
Instead of lip service, he chose to act. It didn't hurt that he answered to the name of
Lakshmi Mittal. Or the fact that he decided to invest a whopping $9 million in the
development of Indian sports. It is due to the efforts made by the Mittal Champions Trust
JUST A GAME
Sports, Business or Both?
Rohit Deb Mookerjea, B.Com (M) 3rd Year
15. YOUTHINK | 2013 | Vol. VIII 13
Feature | JUST A GAME
million dollars. Before we can even begin to
absorb the magnitude of the sum involved, a
few facts should help the reader. According to
the International Monetary Fund (IMF) report
in 2012, there are 6 countries whose GDP is
below $141m. That's not all. If you sum up the
GDP of these six countries, it just crosses the
magic figure of $141m. So, we have a
Portuguese man who is being traded at a price
that surpasses the net output of a nation. Does
it sound like insanity? Or shameless
capitalism? No, it sounds like the beginning of
anunseenerainthesportingworld.
Everyone is aware of the IPL auction where
athletes are guaranteed a million dollars at the
that India returned with an unprecedented drop of the hammer. But Indian sports got a
haul of five medals at the 2012 London shot in the arm when the Badminton
Olympics. As anticipated, the Foundation has Association of India announced the inaugural
refused to promote cricket, a sport that has Indian Badminton League (IBL). It was a carbon
enoughfundstotakecareofitself. copy of the IPL model, right down to the
auctions. Players such as Saina Nehwal wereWelcome to the modern world of sports;
snapped up for $120,000, an amountwhere money is truly not a factor. Everyone is
previouslyunheardofinbadmintonhistory.aware of the craze for football across the globe
and the lengths to which clubs are willing to go Sport has always been a discipline that is a
in order to purchase the best players. But even notch above the rest. Right from the early
the most ardent football fan could be forgiven Olympics to the MCC rulebook, one point has
for taking an audible gasp when news was been stressed over and over through the
leaked of Cristiano Ronaldo's transfer from centuries. The highest reward for any
Manchester United to Real Madrid in 2009. sportsman or athlete is the satisfaction of
The transfer fee in question? A whopping 141
winning. The feeling of knowing that all the
hard work has paid off, that the dedication has
held him in good stead and he is at the zenith
of his discipline. Over the years, we have
witnessed men such as Jesse Owens, who ran
not for the clicks of shutterbugs, but to prove a
point. Diego Maradona, whose desire to win
was so great that he even forfeited the rules of
fairplayandpunchedaballintothebackofthe
net. Milkha Singh, who ran because it was the
only option left to a boy who had watched his
parents being butchered. Sachin Tendulkar,
whose biggest motivation for playing the
game is his self-confessed love of stepping out
onto a cricket pitch. It is reasonably clear from
the above examples that legends are made
from passion. A passion which goes so deep
that it obliterates all other emotions which
standinitspath.
Which bring us to the million-dollar question
(no pun intended!). Has the world of sports
changed so drastically that money is the sole
motivator for excellence amongst athletes?
Transferfeesandsalariesarebeingusedasthe
yardstick for success, not goals scored or
“There isn't a
single
professional
sports season
now that doesn't
go on at least a
month too long.
Baseball starts in
football weather,
and football in
baseball weather,
and basketball
overlaps them
both."
16. 14
Feature | JUST A GAME
sums to watch the greatest athletes
performing. But is money the only factor to
trigger success? In this regard, I'd like to
highlight the example of Manchester City
Football Club. Despite plying its trade for years
in the English Premier League, it had little to
show for all its efforts. All this changed after
the club was taken over by an Arab-based
consortium in 2008. Immediately after that,
the financial floodgates opened in the form of
huge investments by the oil-rich Sheikhs. This
resulted in a better quality of players, which in
turn resulted in the club squeezing past
Manchester United by a whisker to lift the
vaunted Premier League trophy in 2012.
However, critics continue to point out that the
clubcontinuestofarewaybelowexpectations,
leading us to question whether all the money
has gone in vain and provides ample proof that
therealsecret behind sporting success isinthe
passion and loyalty instilled in all Manchester
Unitedplayers.
As the influx of wealth in sports continues to
transcendallboundaries,wemustbewillingto
open our eyes to the blatant commer-
cialization prevalent in our games. UEFA has
already taken steps in restricting super-high
transfers in order to level the playing field and
ensuring that matches are won by merit, not
matches won. Has there been such a paradigm moolah. I wish we can go back to the days
shift in the context of sports that it feeds on when we supported a team purely on the basis
greed to ensure that ends are met? of achievement and loyalty; and not dollars
Immediately after the IPL 2013 auction, the and ostentation. When we cheered the low-
newspapers published a list of players bought key midfielder who passed selflessly; and not
bythevariousfranchisees.Inwhichorder?Not the million-dollar misfiring striker. When we
achievements or reputation; but solely on lovedsportbecauseitwasasport;notbecause
monetaryterms. it was bombarded by a financial tug-of-war.
Please,wewantSports.NotSportsInc.<Sport, in today's day and age, has developed
into a business. It is a commercial enterprise
through which organizers and investors
exhaust the fan's hopes and desires. To an
extent, it might be justified to spend incredible
Steve Garvey,
baseball pro turned
businessman said
"The difference
between the old
ballplayer and the
new ballplayer is
the jersey. The old
ballplayer cared
about the name on
the front. The new
ballplayer cares
about the name on
the back"
TRIVIA
<Spurned by a massive TV rights
deals and the most expensive ticket
prices in the world, EPL revenues
topped $2.8 billion in 2010-11,
accordingtoDeloitte.
<Five teams in the EPL Bolton,
Sunderland, Swansea City,
Wolverhampton,andAstonVilla(all
feature advertisements for betting
companies on their jerseys), are
sponsored by gambling companies
orcasinos.
<Chelsea has the biggest salary
figureatabout$286million.
That's $90 million more than the
NewYorkYankeesspendonplayers.
<Two of the top-5 highest-paid
teamsinsportsareintheEPL
The average Chelsea player makes
$6.79 million — about $600,000
more than the average Yankees
player — makingthe club the fourth
highest-payingteamonEarth.
Manchester City is No. 3, paying its
players an average of $7.40 million
each.
<The league earns $2.3 billion in
OVERSEAStelevisionrightsalone
The EPL is wildly popular overseas,
especiallyinAsia.
In addition to the league$2.9billion
domestic TV deal, the EPL
negotiated contracts with networks
all over the world to broadcast its
games lives. Those contracts
amounttoacool$2.3billion.
<It is cricket's ugliest secret.
Headlines Today has unearthed
how the Dawood Gang controls the
IPLbettingsyndicate.
17. YOUTHINK | 2013 | Vol. VIII 15
Feature | TECHNICAL ANALYSIS OF INFOSYS LTD. - 01-04-2012 TO 31-03-2013
Varun Bajaj
Vedant Mehra
B.Com (Hons) 2nd Year
Infosys Ltd. is one of the leading IT Consulting and Software Companies of the country.
Listed in the Bombay Stock Exchange as a Group – A Sensex Scrip, Infosys is one of the most
attractive stock options in the market. With Mr. N. R. Narayana Murthy taking the position
of Chairman Emeritus, the management is currently headed by Mr. K. V. Kamath, Chairman,
and Mr. S. Gopalakrishnan, Co-Chairman. The company strives to transform, optimize &
innovate,withthemottoof“BuildingTomorrow'sEmpire”.
In order to analyse any particular stock, either of the following two methods can be used:
Fundamental Analysis or Technical Analysis. Here the focus will be on the technical side of
the analysis, while the fundamental side will only serve the purpose of a secondary
checkingtool.Togetafirmgraspofthisstudy,onemustbeawareofthedifferencebetween
technicalandfundamentalanalysis.Insimplewordswecanputitas,
“The Fundamentalist studies the cause of market movements while the Technician studies
theeffect”–JohnMurphy.
Thus the fundamental approach is about the performance of the company directing the movement of stock prices, while the technical approach is
about the movement in prices forecasting future performance of the company. However, it has been commonly observed that when a company's
TECHNICAL ANALYSIS
OF INFOSYS LTD. -
01-04-2012 TO 31-03-2013
“The
Fundamentalist
studies the cause of
market movements
while the Technician
studies the effect” –
John Murphy
A Year of Reversals
18. 16
Feature | TECHNICAL ANALYSIS OF INFOSYS LTD. - 01-04-2012 TO 31-03-2013
performance improves, the price rise to a moving averages, a common observation is model of the Falling Head and Shoulder
major extent has already taken place by the that a 7-year Moving Average when plotted on Pattern.
time it can be inferred from the Company a graph paper tends to be smoother than a 5-
03-05-2012 to 14-09-2012
Reports and Books of Accounts. Thus a year Moving Average, which has more
fundamental approach only provides limited fluctuations. So while a smooth graph makes it
scope for further price rise. Similarly, when the difficult to pin point patterns or trends, the
performance declines, the bearish market has same graph when observed over shorter
already been effected to a considerable extent durations makes it easier to capture and
by the time it comes up in the result of the understandthesetrends.
fundamental analysis. Thus it hardly leaves any
The Financial Year (F.Y.) 2012-13 began with a Source: www.bseindia.comscope for a short position. Hence, for a trader,
steep fall in price from Rs.2853 on 02-04-2012
technical analysis is the answer to the
to Rs.2403 on 13-04-2012. This particular
fundamentals.
phenomenon saw a record trade in volume of
Technical Analysis makes use of Price Charts, 1525K. Such a convergence of the price and
Share Holding Patterns, Volume, and any other volume charts is indicative of a reversal in
detail that can give rise to a trend. Such trends trend.But theonlyreason forsuch a prediction
are used to predict future movements, is because of the considerable price fall of 15%
primarily price movements. It is based on two in a matter of just 11 days accompanied by an
basic assumptions: price moves in trends, and evengreaterriseinvolume.Ifthepricefall,and
history always repeats itself. The first thecorrespondingvolumerisehadnotbeenso
assumption forms the basis of technical significant, the trend could not have been
Source: www.bseindia.comanalysis. The second assumption further established because the market forces would
supportsit.Thereasonforthetwotobevalidis not have been so strong. As a result investor From September onwards till December, the
that investors tend to behave in a predictable behaviour would not be so reliable as in the market shows a more or less horizontal trend.
manner. They tend to react in exactly the same current case of such a significant movement. But this is only a surface view of the price
way in particular situations. This is what gives Thiscanbeseeninthegraphgivenbelow: movement. When more closely observed, it
rise to trends. The consistency in investor represents a falling wedge such that the falling02-04-2012 to 13-04-2012
reaction also causes these trends to repeat highs and falling lows make a triangle like
themselves. pattern. This pattern too represents a reversal
over a mid-term (3 to 6 months). Thus, theIn this study, technical analysis is being used to
falling wedge, inspite of not being verystudy the stock from 01-04-2012 to 31-12-
significant, also supports the point of view that2012, so as to predict its movement for the last
market will be bullish for the stock in thequarter,i.e.,01-01-2013to31-03-2013.
following 3 months. This trend is observed inSource: www.bseindia.comINITIAL ANALYSIS:
thegraphandamodelgivenbelow:
Following the trend, the price gradually went01-04-2012 to 31-12-2012
01-09-2012 to 31-12-2012up to Rs.2520 on 15-06, its quarter high since
the opening of Rs.2853 which would go on to
set the Calendar Year high. Thus, with the
reversal the probable bearish market at the
beginning of the fiscal year was replaced by a
bullishone.
Source: www.bseindia.com The next trend is established between 03-05
Source: www.bseindia.com
and 14-09. The falling head and shoulder
pattern is yet another reversal . It consists of a
With a face value of Rs.5, Infosys currently long term low in between two periodic lows. In
trades in the 2000-3000 range. A study of the 9 this case the long term low is established on
month price chart gives a rather dim view 27-07 at Rs.2125, also the annual low so far.
altogether. For a clear analysis it must be This makes the head, while the shoulders are
broken up into smaller periods to yield established at Rs.2311 and Rs.2330 on 11-05
patterns. The greater the time period, the and 05-09 respectively. The reversal trend is
moreunpredictablethechart;hencetheuseof confirmed yet again with the price rising to
more concise periods is favourable. This can be Rs.2632 on 14-09, to establish the half year
related to a very simple topic in statistics – high since the opening high. This can clearly be
“MovingAverages”.Whencalculatingdifferent figured out from the given graph, along with a Source: www.bseindia.com
19. YOUTHINK | 2013 | Vol. VIII 17
Feature | TECHNICAL ANALYSIS OF INFOSYS LTD. - 01-04-2012 TO 31-03-2013
Based on the above analysis, the market is till 10-01-2013, on which date the price is Rs. The final month of FY 2012-13 opens at
expected to improve for the stock in the final 2320.35. The result of the Initial Analysis Rs. 2908.45 on 01-03-2013. As anticipated,
quarter of FY 2012-13. The high volumes of the revealed a rising market for Infosys, which Infosys Ltd. breaks the Rs. 3000 mark on
stock traded when the prices have dipped in implies its price should increase considerably 07-03-2013 when it reaches Rs. 3004.75, thus
the first three quarters are also an indication in this Final Quarter. This result is justified on recording the Year High and setting a firm
that the market will be bullish for Infosys in the 11-01-2013, when the stock price rises to Rs. ground for the stock in the coming Financial
concludingquarter. 2712.60, with a volume trading of 1621.988K. Year. At this price, the volume traded remains
In a matter of just one day, the price rose by Rs. in harmony with the price, which further
The SHP (Share Holding Pattern) has been
392.25 or 16.90%, a significant hike. At this supports a bright future for this stock in FY
somewhat constant throughout the year. The
stage, it is important to notice that the price 2013-14. Finally, after a slight fall, Infosys Ltd.
fact that there have been no bulk deals in the
rise is also supported by an increase in the closes at Rs. 2889.90 on the closing day of FY
last 2 years bears testimony to this fact. The
volume of the stock being traded. Thus, going 2012-13,i.e.,28-03-2013.
Promoters have stuck to their 16.04% holding,
by the rules of technical analysis, it can be said
while the FIIs (Foreign Institutional Investors) With this, the technical analysis of Infosys Ltd.
that the harmony between price movement
have increased their stake to 39.42% as on in the FY 2012-13 comes to an end, giving a
and volume movement is a sign that there is
September 2012 as compared to the 30.02% in clear display of the F.Y. as a Year of Reversals.
scope for some more price rise, though it may
March. There has also been a corresponding But this does not put an end to the speculation
notbeassignificantasthisone.
increase in the stake of the DIIs (Domestic that this particular stock should shine in the
Institutional Investors) from 16.57% to The price further rises to Rs. 2814.65 on 25-01, coming Financial Year. Thus the result of this
18.33%. The balance 26.21% remains with to record the month high. After this however, studyupholdstheverdictoftheInitialAnalysis,
other sources. The increase in stakes of the FIIs during this month, no major price fluctuation that Infosys Ltd. will be an attractive option for
and DIIs is supportive of the prediction that the or fluctuation in volume is found. The stock investorsintheFY2013-14.<
stock will be bullish, considering the overall shows a sideways trend henceforth till 21-02
reversing trend. Thus in addition to the with the price remaining near the Rs. 2800
technical approach, the fundamental mark at Rs. 2806.75. Over a span of 4 days, the
approach is also in favour of a rising market for price once again shows a significant rise. It
InfosysbeforetheF.Y.ends. reaches Rs. 2960.10 on 26-02 to set the 2
month high and also the current quarter high.
SHARE HOLDING PATTERN
As predicted earlier, based on the price-
(in%) Sep-12 Jun-12 Mar-12 volume harmony, the price showed a
Promoter 16.04 16.04 16.04 significant rise of Rs. 153.35. The stock
FII 39.42 37.89 39.02 eventually closes at Rs. 2906 on 28-02. So the
DII 18.33 18.29 16.57 first month of the final quarter (January) and
Others 26.21 27.78 28.37
the penultimate month of the financial year
Total 100.00 100.00 100.00
(February) have upheld the results of the Initial
Source: www.bseindia.com Technical Analysis. The month of March begins
at Rs. 2908.45, with a scope to break the Rs.
3000 mark, but considering the price rise that
FINAL ANALYISIS: PERFORMANCE IN THE has already taken place, investors should avoid
FINAL QUARTER OF FY 2012-2013: suchanticipation.
01-01-2013 to 01-03-2013 01-03-2013 to 31-03-2013
Source: www.bseindia.com
Source: www.bseindia.com
The Final Quarter of FY 2012-13 opens at Rs.
2308.30. The price remains somewhat stable
TRIVIA
<
Consulting and Software Companies of
India, listed in the Bombay Stock
ExchangeasaGroup–ASensexScrip.
<The fundamental approach is about the
performance of the company directing
the movement of stock prices, while the
technical approach is about the
movement in prices forecasting future
performanceofthecompany.
<Technical Analysis makes use of Price
Charts, Share Holding Patterns, Volume,
and any other detail that can give rise to a
trend.
<Technical Analysis is based on two basic
assumptions: price moves in trends,
historyalwaysrepeatsitself
Infosys Ltd. is one of the leading IT
20. 18
Feature | THE DARKNET : INTERNET'S EVIL TWIN
THE DARKNET :
INTERNET'S EVIL TWIN
Amartya Majumdar, B.Com (Hons) 1st Year
Googlemapslessthan0.2%oftheinternet.Therestisunchartedterritory,withtrenchesreachingdeeperthanwhatcanbeimagined-theDarkNet-
all-pervasive, unmovable, unbreakable , disturbing. One only hears rumours of the deepest reaches of the web. Some glimpse it. Some are
corrupted by it. Others are changed forever, never quite fitting into society again. Like Dark Matter, it is invisible but inevitable. How else can one
accountforthebulkoftheinternetbeing500timesofthatwhichisactuallyseen?
The DarkNet has many access points hidden in plain sight. Unless you are looking for something very specific, you might not even find it. The
DarkNet services those who thrive at the fringes of the societal structure. It has all the components of the underside of society, be it drugs, violence
orhate.
A normal everyday internet surfer has no
reason to seek out dive pools in which to find
DarkNet portals, and as such one will not find
it mentioned on the surface web. The
DarkNet is so eerie it almost seems mythical.
It is, however, much more. It's there, it exists
and scarily, it's all real. Acts of stupid bravado
have mentally maimed many, results of bets
accepted for blind, random explorations of
the DarkNet. It is from people like these that
one hears of the community that skirts
society at the heart of modern civilization.
The Phantom Currency- BitCoin
21. YOUTHINK | 2013 | Vol. VIII 19
Feature | THE DARKNET : INTERNET'S EVIL TWIN
What these people witness here, is not usually or the Rupee is not linked to any central or But where do BitCoins come from? Before any
spokenof.Experiencescanbetootraumatic. banking authority. In essence no one issues, currency can be used, it has to come into
controls or regulates this currency. The BitCoin existence. BitCoins, before they are used, have
Butonehearswhispers…
has no central bank. There is just the BitCoin to be mined from a fiendishly difficult
What funds caverns like these? How do they web site. That's it. There is no organization mathematical problem. A computer is given a
function? How do the largest drug lords and backing it, accounting for it or overseeing the very difficult piece of information to solve.
slave traders operate here? How do all these currency. In fact there is no BitCoin physical Once it solves the problem, a set amount of
dealers in insanity function? The answer lies in server computer as such for even processing BitCoins are created. Each time a computer
thephantomcurrency-BitCoin. transactions. It's a phantom currency as solves a problem block, thereby creating (at
etherealandmysteriousasitscreators,agroup the current rate) 25 BitCoins, the problemWhat is the BitCoin? The BitCoin is a virtual
working under the pseudonym of Nakamoto becomes more difficult to solve. Thus eachcurrency. It is defined as a crypto currency,
Satoshi. consecutive mining of BitCoins takes longer.which essentially is a currency created and
This in addition to the fact that every 4 yearstransferred through a very difficult to crack So how does this phantom cash work? BitCoins
the number of possible BitCoins mined iscomputer code. It behaves like normal work in a manner very similar to BitTorrent,
halved. This ensures a supply of the currency,currency. You can buy or sell goods for it. It is using a peer to peer network. This means
without the fear of over printing of new Coins.even tracked on an exchange and can be sold instead of having one large server computer
In fact after 2140 new BitCoins production willfor other currencies. The major difference handling the transactions, a network of
becomeimpossible.between the BitCoin and other currencies computers connected by the internet work
issued by countries around the world is that together. Each transaction updates a universal Money at its very basic level is something
theBitCoinisdecentralized. BitCoin transaction ledger lodged in each people believe to have value. Once an object,
computerontheBitCoinnetwork. tangible or otherwise, is believed to be worthThis means that the BitCoin, unlike the Pound
22. 20
Feature | THE DARKNET : INTERNET'S EVIL TWIN
TRIVIA
<The BitCoin is a virtual currency. It is defined as a crypto
currency, which essentially is a currency created and
transferred through a very difficult to crack computer
code.
<It behaves like normal currency. You can buy or sell goods
for it. It is even tracked on an exchange and can be sold for
othercurrencies.
<The major difference between the BitCoin and other
currenciesissuedbycountriesaroundtheworldisthatthe
BitCoin is decentralized. The BitCoin has no central bank.
ThereisjusttheBitCoinwebsite.
<BitCoins work in a manner very similar to BitTorrent, using
a peer to peer network. This means instead of having one
large server computer handling the transactions, a
network of computers connected by the internet work
together.
<BitCoinisafreecurrency.
<BitCoin is very secure. Each digital unit has its own unique
code, which is matched with the private code of the
holder'sdigitalwallet.
something and demanded by enough people, case if you bought and sold using BitCoins. All The influence of the DarkNet is felt
it can be used as a medium of exchange. The that the bank would record is the purchase of everywhere. People all around hoard Bit Coins
BitCoin is no different. People attribute value the currency, not what one did with it. It is to evade taxes. Unscrupulous politicians have
to it. And why not? It provides some very untraceable. enormous holdings in this currency, after all,
uniqueadvantages. there is no physical evidence, and millions can
This allows for all manners of unsavoury
bestoredinamatterofafewmegabytes.
BitCoin is a free currency. It is very easy to send clandestine activities. BitCoins have become
or receive funds. Fund transfer is in fact very the lifeblood of societies, organizations and The DarkNet cannot be shut down. To close
similar to sending and receiving email. Since persons engaged in illegal activities in the even one site on the DarkNet would take
there is no intermediary, like credit card DarkNet. Deals are made and closed here with gargantuan amount of resources such as
companies or banks, one does not face any BitCoins. Silk Road, one of the world's biggest pullingasatelliteforthispurposeonly.Evenifa
associated charges. This apart, the BitCoin is drug dealers, delivers drugs right to your site is destroyed, three more spring up in its
very secure. Each digital unit has its own doorstep, just like a book bought off place.TheDarkNetisheretostay.
unique code, which is matched with the Amazon.com, and accepts payment only in
WhatoftheBitCoin?Itcannotbefrozeneither.
private code of the holder's digital wallet. BitCoins.
It doesn't exist on any one plane, on any one
BitCoins, even though they have an open
The DarkNet has other services to offer. server. It exists where the internet exists. Is
source, cannot be counterfeited. Hackers have
BlackMarketReloaded is another of those thereanypermanentsolutiontothisproblem?
tried to do this for the last three years, with no
phantom sites, difficult to find, but very real.
Do the authorities know of this? Can anythingsuccess.
One can hire men to murder, rape, and kidnap,
be done? Moreover, can we afford to be blasé
There is another much more significant reason maim and torture here. There are dozens of
about the DarkNet, since it does not directly
why BitCoins are a very viable form of currency sites which supply clandestine arms and
affect or lives? Is it to be treated as nothing
for some. The phantom currency offers a great ammunition. Various terrorist cells also
more than a passing curiosity? Or does it have
degree of anonymity. If you purchased, say, a operate through the DarkNet. And yes, it is all
fargreaterramificationsinoursociety?<
computer from Flipkart.com, your bank would financed through BitCoin. What is scary is that
have a record of that transaction. More legit merchants have started to buy into this
importantly if you received a payment, the currency forming a link between that world
bank and thus the government would andours.
definitely know of it. This would not be the
23. YOUTHINK | 2013 | Vol. VIII 21
Feature | DEMOCRATIC INDIA vs. COMPETITIVE CHINA
DEMOCRATIC INDIA vs.
COMPETITIVE CHINA
Raunak Agarwal
Akash Singrodia
B.Com (Hons.) 3rd Year
“India is not, as people
keep calling it, an
underdeveloped
country, but rather, in
the context of its history
and cultural heritage, a
highly developed one in
an advanced state of
decay.”
? Shashi Tharoor
India, the land of democratic diversity, once the golden bird, envied by the world for
its riches, today stands pale and dirty, with its wings snapped, heading towards the
dungeonofignominy.Thisdecadencehasbeenmuchcausedbyourleaders,basking
ingloryoflootingthecountryofitsgold,itsshine,underthemaskofdemocracy.The
economy has already landed on the rocks with the rupee having surrendered lean to
the dollar and corruption being fully armed with treachery. Keeping these in mind,
India's comparison with the land of the Sinic (China), with its glorious economic
miraculous extravaganza is a commendable irony indeed! The miserably torn Indian
economy stands nowhere before the sun kissed shine which the autocratic Chinese
economyhasachieved.
Both the countries started their journey together after being independent in the
1940s but moved ahead in different directions. India opted for democracy and
presently stands as the world's largest democracy with its constitution “for the
people, of the people and by the people”with a mixed system of governance
whereas China equated democracy with "dictatorship of the Proletariat", the focus
being on socialism. China is ruled by a single party power with a perfect blend of
democraticideals,federalism,socialism,andauthoritarianprinciples.
The dawn of the new global super power
24. 22
Feature | DEMOCRATIC INDIA vs. COMPETITIVE CHINA
Though, India and China are separated by the THEJOURNEY economymorethanadecadelaterthanthatof
formidable geographical obstacles of the China.India and China share a bittersweet relation
Himalayas, but the latent sense of inquiry and spanning2000years.AfterIndependenceboth Many may be surprised by the question: after
competition polity has always kept the two the economies were “closed economies” until all why are we attaching so much importance
connected. Comparisons between these reforms were introduced in China in 1978 to developing countries like India and China
economies have been a regular phenomenon when the economy opened up. This resulted in when the key still lies in the hands of USA and
and it is mostly China that has emerged as a fast economic growth for China. Special Europe? But, just like a life cycle, the so-called
winner; its economy being four times bigger economic zones were set up in order to attract leaders of today are retreating making place
than that of India. But are we really that far foreign investors. The Indian Economy finally fornewleaders!Andthisfactcallsforashinein
behind? Doesn't being the world's largest opened up to foreign trade in1991. Hence, any the eyes of both the candidates: India and
democracy give us an edge? Well, a detailed comparison between the two must be done China, at least, as per the economists and
analysis of these economic giants will bring us keeping in mind that India became an open analysts. And, moreover, the two great nations
toaconclusion!
25. YOUTHINK | 2013 | Vol. VIII 23
Feature | DEMOCRATIC INDIA vs. COMPETITIVE CHINA
are the most populous and fastest growing
economies of the world, a rate being envied
byeventhewealthiestones.
This leads us to a war though covert and cold,
buttheMagnaCartafortheentireworld:
“WHO WILL BE THE SUCCESSOR TO THE
THRONEOFTHEDOLLARSTRUGGLE?”
PRESENTTRENDS
It is to be however noted that though China
doesn't care a hang about us Indians but we
certainly brag about our abilities to give a
“tough competition to our dearest
neighbour”. But as always… we continue the
legacy of constructing castles in the air! It can
be proved by the following ocean of statistics;
all watering the strong surrender of Indian
developmenttothatoftheChina.
In this economic world, where the success of
every nation is judged by its economic growth
and its GDP, China is way far ahead of India at
present. In 1992, Chinese GDP was $423
intothe21stcentury,whileIndiaisstilllurching composite statistic of life expectancy,
billion compared to India's $293 billion. In
towardit.” education, and income indices used to rank
2013, India is struggling to post a GDP of $2
countries based upon its abilities to provide“It is a paradox that in China unelected leaderstrillion while China's GDP is at the $8-trillion
basic amenities and needs to all the people. Asare careful to providethe masses with materialmark. This comes five years after India first
pertheUNDPReportsIndiarankedatalow136benefits such as electricity, water and roadstouched the trillion-dollar mark which is quite
among 186 countries whereas China stoodbecause they legitimize dictatorship. WhereaspaleincomparisontowhatChinahasdone.
101st among these 186 countries. “It was seenin India, democracy allows just the opposite:
Some may say that the comparison is unfair, that not only on the overall basis but on eachfree elections excuse the political class from
since China's economic success has no and every human development indicator,providing the basics of life to the masses who
parallels in human history. But China has been ChinaremainedaheadofIndia.”haveelectedthem”-TheGuardian.
a benchmark to measure Indian progress, and
Infrastructural advancement is a typicalEven the fiercest supporters of Indianbench marking should always be against the
yardstick that is used to measure the economicdemocracycannotignoreitsdarkunderbelly.Abest.
prosperity of a country. Infrastructurecruel irony is that India, which is applauded as
Voicing the economic struggle, Steven Rattner Investment in China has averaged to 19the world's largest democracy and yet has the
wrote in The New York Times: “Now the percent of GDP from the early 1990's whereaslargest number of poor and destitute in any
contest is emphatically over. China has lunged inIndiaitaveragedtoonly2percent.country, and China, which has achieved a
steady rise in people's living standards and the
status of a world power, has failed to develop
democratic institutions and practices. “The
investmentrateinChina(investmentasashare
of GDP) has fluctuated between 35 - 44 per
cent over the past 25 years, compared to 20 -
26 per cent in India.” Hence we see that
statisticstoo“reveal”thisreality.
Again a true measure of economic welfare can
be analyzed with a bird's eye view as given by
Human Development Index and other indices.
The Human Development Index (HDI) is a
“The best argument
against democracy
is a five-minute
conversation with
the average voter.”
? Winston Churchill
26. 24
Feature | DEMOCRATIC INDIA vs. COMPETITIVE CHINA
However, our topic of discussion is not only to practices in a country constitute it to be a
point out the benefits of Chinese economy. democracy?” No, having appropriate socio-
There are problems too, as are obvious! economic conditions which enable citizens to
Chinese economy may enter into a debt trap exercise their political rights are also equally
due to the excessive use of loans for its funding important.
activities. Moreover, the banks are suffering China has one of the world's most powerful
huge losses because of rising NPAs. China's dictatorial regimes thriving on one-party rule,
development, particularly in the last decade, handling levers of stifling control with smooth
has been investment-centric whereas that of and quick decisions. Contrary to this in India
India has been consumption-driven. It is easier the state has the right to dissent. Citizens have
to control investment-driven growth (e.g. the right to protest against decisions taken by
forcing the state-owned banks to lend) - and the state. This is making India “A Messy
thus grow very rapidly over a short to medium- Democracy”.
term horizon than it is to control consumption,
OnecouldcertainlysuggestthatChinaisaheadwhich is driven by individual decisions of
of India when it comes to several indicators –millionsofconsumers(andislargelycorrelated
that China's policy approach is a lot morewithgrowthindisposableincome).
streamlined and efficient and India's far more
But the main point is that democracy here is a complex and slow.“India is simply too
DUMB IDIOT which listens, feels, but cannot democratic to take full advantage of its
speak for itself and quietly observes the economic potential.”No doubt, democracy has
wretched plight of the general public like a its own set of spices to add taste to any state
mutespectator!APITY!! but over application and under usage are both
The problem now is that in the race between harmful. Democracy is not a bad concept for a
economism and egalitarianism, the latter has country, provided it is used in the true spirit of
surrendered and the economic prosperity is itstermandmeaning.
thought to be a utopian one irrespective of the Democracy, in our country has been the key to
othermultidimensionalfactors,andthattooof the expeditious success of our leaders and the pessimistic on the part of my once greatly
“ASELECTEDFEW”. plight of the normal citizens! Taking refuge to applauded motherland, but I prefer to live in
REVELATION India, as a democracy, has bitterly democracy to outperform the autocratic giant the stark realism of today unlike others, who
retreated to the glorious development of isironicalindeed. takerefugeunderfalsehopes.
autocratic China. So the next time someone I am quite skeptical about why optimists even Ithasbeenindeedrightlysaid,“Thereislightat
says "at least India is politically democratic," dare to falsely hope the turnaround in the the end of the Indian tunnel, but it is that of an
perhaps we should wonder what meaning future of us Indians, who have learnt, or better oncoming train which will run it over”. And
"democracy" has any more. The question put, adapted to live in a country as great as herewestand,hopingtosurpasstheeconomic
basically is “Do formal political institutions and ours!!! It's not sarcasm, nor I am being Chinese giant with the sword of democracy, a
sword full of stains, even unable to cut through
inflating onions. Whether or not India
overtakes China in the next two decades, it is
clear that both countries will be economic
powerhouses in the medium term.
Undoubtedly, their growth will have significant
impactsontheworldeconomy.Simplyput:
“The Autocratic Chinese dragon is way ahead
of the Democratic Indian elephant in terms of
their respective future economic growth,
irrespective of the valuable “tusks” it
possesses. For India, the elephant needs to be
winged to fly; she cannot afford to wait for the
evolutionofaflyingElephant.”<
“What difference
does it make to the
dead, the orphans
and the homeless,
whether the mad
destruction is
wrought under the
name of
totalitarianism or in
the holy name of
liberty or
democracy?”
? Mahatma Gandhi
27. YOUTHINK | 2013 | Vol. VIII 25
Feature | THE INDIAN IVY LEAGUE
“What truly is
development? It
is growth.
Progressing
slowly, bit by bit,
towards the
greater good.”
THE INDIAN IVY LEAGUE
Reviving ancient glory
Preksha Dugar, B.Com (Hons.) 2nd Year
Precisely two hundred years after Thomas Malthus, a British scholar, predicted that overpopulation
wasanantecedenttostarvation,AmartyaSenwonaNobelPrizeinEconomicsforprovinghimwrong.
The Indian Economist, educated at Calcutta's very own Presidency University and the esteemed
University of Cambridge, has always conferred paramount importance to education and health as
stepstowardeconomicdevelopment.
Remaining true to his ideals and objectives, Amartya Sen along with prime support from the Bihar
government has proposed the Nalanda Mentor Group, to revive India's ancient portal of education
andlearning,NalandaUniversity.
Nalanda University, founded in the fifth and sixth centuries, flourished tremendously for more than
seven hundred years. It is believed to be the oldest center of learning and education - and the best. It
attracted students from all parts of the world. Though primarily focusing on Buddhist studies, it also
instructed students on disciplines such as mathematics, politics, fine arts, the art of war, and
medicine. A group of scholars and
researchers from around the world,
led by Amartya Sen, are now taking
steps to rebuild and reinstate this
institution.
The revival of the university implies
severalthingsforIndiaandIndians.
Firstly, the international outlook.
There is to be expected association
and active involvement from different
departments of Yale University,
Harvard University, Seoul University,
and Peking University to name a few.
India's educational sector has primary
28. 26
Feature | THE INDIAN IVY LEAGUE
initial public health care systems in India were greatly to our academic and social
established. It was in Bihar, that majority of the rejuvenation. It could mean a categorical co-
ancientIndiantextshadbeencreated. existence between living and learning. Hence,
Nalanda when built would spearhead not only
Though the modern perception of Bihar is as a
regionalrevivalbutalsonationalexcellence.
backward state, it has a glorious and illustrious
part. The revival of Nalanda will assist and What truly is development? It is growth. It is
inspire Bihar to develop its region and would progressing slowly, bit by bit, towards the
provide the population with an automatic greatergood.
incentive to improve the villages, their
How do we achieve it? Education. Knowledge.
livelihood,andthetourismsectors.
Power. For the sake of dignity, I will not even
been restricted and curbed. It has also always
Thirdly, focusing on international relations, start on how blatantly India has under invested
had less international exposure than other
Nalanda University is a prodigious example of intheeducationsector.ItisourAchilles'heel.
countriesinAsia.
cultural exchanges between India and China.
When schools were investigated in the 90s and
With an eminent board of scholars from Chinese ambassador to India, Zhang Yan,
early 2000s, half had no ongoing teaching
respected universities, this could radically bequeathed the first donation of one million
activity at all. None of the world's top two
change the Indian system of education and US dollars for the project. India and China, two
hundred universities are situated in India. Of
learning. colossal countries, representing two colossal
the approximately twenty five million children
civilizations of East Asia and South Asia, wouldThis could lead to the opening of students' born in a year, at least ten million do not find a
beboughttogetherasaresultofthisproject.mindsratherthanforcingthemtobepedantic. place for themselves even in primary schools.
The impact that Nalanda could have on Asia's Of the remaining fifteen million, only aboutThiscouldlead,toultimaterationalization.
command on the world and on global higher thirty percent go beyond the eight grade.
Secondly, the location. Bihar was once the educationisvast. Ultimately, only about three million students
cradle of human civilization. It was from Patna, graduatefromhighschool.
Reinstating it could be an achievement to sayin Bihar, that the first complete Indian empire
the least, especially in a country where India needs development and India needswas constituted. It was in Bihar, that the first
conservation of heritage does attract the Nalanda.Buddhist council was reconciled and a model
generalpublic.of taking decisions through public dialogue I would like to end with three words – Think
was established, which is cardinal to the It could mean recreating history. It could mean aboutit. <
practice of democracy. It was in Bihar, that the the spreading of tradition and contribute
TRIVIA
<Library of the Nalanda University was divided into three buildings-
Ratnasagara, Ratnadadhi and Ratnaranjaka. Among this building,
Ratnasagara was a nine storeyed building. The library did not only
contain religious manuscripts but it had a large collection of books on
literature, astrology, astronomy, and medicine. Vastness of the library
can be understand from the fact that it took three months to burn down
wheninvaderssetfiretoit.
<Nalanda was the first university in the world to have given Astronomy a
separatestatusfromMathematics.
<What Newton discovered many centuries later (Gravity) had already
beendiscoveredbythestudentsandteachersofNalandaUniversity.
<Nalanda University was an ancient center of higher learning in Bihar,
Indiaandisthesecondoldestuniversity.(AfterTakshila).
<Hewas travellingbyplane to San Diego once,when the passengerin the
seat next to him got talking. On hearing that his travelling companion
was from Harvard, the passenger asked: Have you heard of this
interesting course on social justice, taught by Kenneth Arrow, John
Rawls,andsomeunknownguy?That'unknownguy'wentontobecome
aNobelLaureateinEconomics,in1998–AmartyaSen.
29. YOUTHINK | 2013 | Vol. VIII 27
Feature | THE ADVENT OF SOCIAL MEDIA
“I've always said
that if you want to
liberate a society,
just give them the
Internet.”
- Wael Ghonim
THE ADVENT
OF SOCIAL MEDIA
Sakshi Sikaria, B.Com (Hons) 1st Year
Theeraofthetelegraphmighthavecometoaclosebuttheworldowesmuchtothisbrilliantinventionforitwasfromherethatthenaturalcorollary
ofthetelevisionandthetelephonefollowedandeventuallyinarguablythemostrevolutionary communicationtoolofourtime,theInternet.These
three can be proclaimed to be the most important inventions that were the stepping stones for mankind and completely revolutionized the
business of Revolution. People might argue that there were protests and ground breaking revolutions even before Internet came into use. This, of
course, cannot be argued against. However, in our favour, back then the only mode of communication was through word-of-mouth or letters (or
snail mail as many put it). But for a protest to actually sustain for a long period and to bring about meaningful change, it needs to be constantly
placed in the eye of the storm. For people, it becomes necessary to understand that a political protest is in reality is much more complex than it
appears. For every 100 people that are protesting there are numerous others whose interests are met if the status quo remains in place, and it is
these bunch of people who are ready to take up arms to suppress it. It is only when the balance tilts one way or another that a protest can be said to
The Protestor's New Weapon
30. 28
Feature | THE ADVENT OF SOCIAL MEDIA
recruitment by means of online networks. It In 2011, negative tweets about Mubarak's
shows that mass mobilizations depend not on government and personal hardships
the influence of central users, who are dominated the social networking sites. Wael
nonetheless crucial for their growth, but on Ghonim, the Middle East marketing director
the actions of many users in local networks for Google, set up the Facebook page, “We Are
thatwillultimatelyreachtheinfluentialcore.' AllKhaledSaid,”tocommemoratethedeathof
a young blogger, Khaled Said who was brutally
TheArabSpringisonesuchcaseinpoint.
beaten and killed after allegedly posting an
According to the Middle East scholar, Joel incriminatingvideoofpoliceofficers.Thepage
Beinin, there had been approximately three quickly attracted 500,000 members and soon
thousand worker-led protests in Egypt over became a platform for online discussion and
the last decade-clearly indicating the dialogue of shared grievances against the
dissatisfaction and discontentment with Mubarak regime. Protestor setup events and
Mubarak's reign. Egypt is plagued with a pages on Facebook received tens of thousands
youth-bulge society, unable to provide jobs of attendance confirmations. By the 1st of
and benefits for its disproportionally large February, nearly one million protesters hadhave, or have not, resulted in meaningful
young demography. Due to a combination of gathered in Tahrir Square, while preparationschange. The slow diffusion of information was
various factors such as high level of began for another protest on the followingabighindranceanditledtothefailureofmany
unemployment, and a regime that was day. Finally, on 11th February, Presidentpotentially great revolutions. In our time, the
increasingly out of touch with the needs of the Mubarak stepped down, passing ruling powerIcvnternet has emerged as a tool for diffusing
Egyptian people, this disenfranchised group to the army. Statistically, Facebook users ininformation, to quote Bill Gates, at the speed
began to mobilize. The launch of the Egyptian Egypt rose from 450,000 to 3 million in the sixof thought, thereby becoming an important
Movement for Change, also known as the months following the revolution, and nowtool in the precipitation of mass protest
Kefaya Movement in 2004, set the foundation stand at 5 million. Interestingly there are moreagainstallthatisperceivedtobeunjust.
stone of mobilization of activists in Egypt. Facebook subscribers than newspapers
The internet has brought the world closer and After almost 4 years of failed protests, a 27- subscribers in Egypt currently. The page setup
madeitinthetruesense,aglobalvillage.Ithas year old human resources coordinator by Wael Ghonim was a milestone as it served
connected people all around the world; decided to take a slightly different route. Esraa as a platform for like- minded to people to
people sharing grievances with each other, Abdel Fattah (popularly known as the come together and give their voices a higher
coming to realize the similarity of their basic Facebook girl), set up a group on a social pitch.
needs and doing what was only an impossible networking website calling for participation in
Hence, via the social media, The Arab Springdream a few decades back- share information the April 6 worker strike that was planned for a
witnessed a string of revolutionaryin real time. The necessity to revolt against textile mill in al-Mahalla al-Kubra in the Nile
movements as it was the first of its kind toone's oppressors-this realization ultimately Delta. The group grew to over 70,000
employ social media as its primary weapon.led to the toppling of century old regimes all members, almost 10% of Egypt's active
The activists involved utilized social media asaroundtheworld. Facebookusers.
an effective means to spread information and
It has been observed that people are
influenced by the activities around them. If
the activities around them remotely interest
them, they'll want to be a part of it. In earlier
times, any activity taking place in one part had
no significant influence on other regions due
to lack of sufficient modes of communication
and dissemination of information. Internet
bridged this communication gap- powerful
enough to turn a local happening into a global
cascadewithtrulydramaticeffects.
Lead author Dr. Sandra Gonzalez-Bailon,
Research Fellow at the OII, said: 'Digital media
has played an important role both in the
recent wave of mobilizations in the Arab world
and in protests across Western countries, such
as the Occupy movement across cities
worldwide. This is the first empirical study
analyzing the mechanisms behind protest
“The internet has
brought the world
closer and made it
in true sense, a
global village.”
31. YOUTHINK | 2013 | Vol. VIII 29
Feature | THE ADVENT OF SOCIAL MEDIA
to promote insurgent agendas. The study finds demonstration in the middle-east.
that the most influential group among them Dramatic images were filmed by the
consists of a small group of users close to the protesters and posted online. YouTube with
centre of a network. This group, described by its explosive as well as enriched content
the researchers as the 'spreaders', play a helped in mobilizing and sparking
critical role in triggering the initial stage of the movementsandprotests.
protests. These masterminds formulate the
In countries like Egypt, Tunisia, and Yemen,
messages and spread them across the place.
risingactionplanssuchasprotestsmadeup
Though the deposition of Mubarak took a
of thousands, were organized through
mere 18 days, the power of the social media
social media such as Facebook and Twitter.
ensured that there was a persistent and the much needed information that is the
“We use Facebook to schedule the protests,
longstanding democracy movement to essenceofmoderndayactivism.
Twitter to coordinate, and YouTube to tell the
overthrow the dictatorship and oversee the
world.”announcedanArabspringactivist. The strength and influence of social media, so
establishmentofademocraticstructure.
far, has thus been indisputable. Today a
Being capable of sharing an immense amount
blogger can impact an election, a post on
of uncensored and accurate information
Facebook can collect enough masses to
throughout social networking sites has
protest against a national issue, and a YouTube
contributed to the cause of many Arab Spring
video can incite fear in the strongest of nation-
activists. Social networking sites, thus, gave
states. And the catch here is that social media
the activists the vigor to overthrow powerful
does that with minimal capital investment and
dictatorships. They have broken the
withouttheinterferenceofanygovernment.
psychological barrier of fear by helping many
to connect and share information. They also Social media, today, offers a medium for
helped Arab civilians become aware of the obtaining international sympathy and support
underground communities that exist and are for a cause. Propaganda, one of the rebels'
made up of their brothers, and others willing greatest tools, is made easier and more
to listen to their stories. It has given most efficient by technology. The revolution in
people in the Arab world the knowledge that Egypt and the subsequent uprisings serve as a
they are not alone, that there are others constant reminder of the tremendous power
experiencing just as much brutality, just as that the internet holds. If used judiciously, itFacebook and other social networking sites,
manyhardships,andanequallackofjustice. can empower millions of people and bringthus, not only provided the organisational
about greater transparency in the way thestructure in Egypt but also provided a crucial As a result of the many technological
worldisgoverned.platform for potential protesters to network advancements and innovations that have
with one another and share their common revolutionized how individuals communicate,
grievances in countries like Iran and Syria. The an abundance of information has become
events occurring in Egypt were followed by a available to everyone. Social media through its
chain of uprising protests and mass clandestine nature provides the public with
<
TRIVIA
<7.9newInternetusersareaddedworldwideeverysecond.
<IntheUS,FacebookhasgonebeyondGoogle'sweeklytraffic.
<InEgypt,somebabieshavebeennamedFacebook.
<In 5 years, the return of investment in social media of your
businesswillstillcontinue.
<Lady Gaga has the most followers in Twitter. Even Kim Kardashian,
BarrackObama,JustinBieberandKatyPerryfollowher.
<Approximately 161 million minutes a month are spent on mobile
social media applications around the world. It is even rumored
thatmorepeopleownmobiledevicesthantoothbrushes!
“Social networking
sites, gave activists
the power to
overthrow powerful
dictatorships.”
32. 30
Feature | ONLINE RETAIL BOOM IN INDIA
“Even though Indian
pure-play online
retailers, just like their
counterparts globally,
are losing money,
investors realise that
the future of shopping
lies in e-commerce,
with the pie split
among the top few
players.”
ONLINE RETAIL
BOOM IN INDIA
Will the Bubble Burst?
Mrigank Pincha, B.Com (Hons) 2nd Year
The letter 'e' has come to define our daily lives in the modern era of superfast communication.
From e-mail to e-filing ,e-challan, e-paper, e-ticket, e-governance and e-commerce — we truly
liveinaworldwhosebackbonerestsontheinternet.E-commercehasbroughtaboutarevolution
intheretailindustryinIndia.Thoughonlineretailing,ore-tailing,asitiscommonlyknown,isbuta
fledgling industry in India, it is quickly picking up pace with a lot of retailers entering or expanding
in the extremely competitive market namely eBay, Flipkart, Jabong, Myntra, HomeShop18 and
Snapdeal to mention a few and of course, the new entrant, Amazon. Flipkart's successful raising
of $200 million and the entry of the world's largest online retailer, Amazon, into the Indian online
retailmarkethasfurtherreinforcedconfidenceine-tailingandmanyscepticswhoquestionedthe
viability of the e-commerce models in India may be forced to consider afresh its potential and
acceptthatitstimehasfinallycome.
The beginning of e-businesses in India can be traced back to the late '90s with the first lot,
popularlycalled'dot.com',comingtothescenebuttheycollapsedsoonby2001.Themostglaring
reason for their downfall being the near-absence of a proper revenue model. The 2nd version of
33. YOUTHINK | 2013 | Vol. VIII 31
Feature | ONLINE RETAIL BOOM IN INDIA
e-commerce started around 4-5 years later
with Flipkart (2007) and a plethora of other e-
tailers starting business at a time global e-
tailers were trying to figure out how to grow
profitably. What Amazon, eBay, Taobao,
360buy and hundreds of others had
successfully done in U.S.A., U.K., China and
elsewhere could not be emulated in India
because of the unique set of conditions and
challenges faced here which included poor
penetration (and poorer quality) of internet,
poor penetration of plastic money (credit /
debit cards, etc.) along with the wide
prevalence of a "cash" economy and under-
developed supply chains and logistics
infrastructure.
The situation of infrastructural development in
the country is not particularly rosy even today.
Even though India's internet user base grew to
about 137 million as on June 2012, e- tailers be able to hold their own against the The question facing e-tailers in India is — How
commerce penetration is quite low compared foreignrivals? to survive? Competitive pricing is the obvious
to markets abroad. The biggest challenge for answer,butitcannotbeseparatedfromoverallIn the wake of Amazon's entry in India on June
Indian firms to survive in the hostile situation consumer experience. Good value (discounts)5, the existing e-tailers have gone into a frenzy,
unfolding now will be to become profitable in has to be backed by variety, convenience andannouncing new offers and planning
spite of high cost of acquisition of new trust. For example, if an e-tailer offers a heavystrategies. eBay, in India since 2005, has
customers, aggressive pricing by the foreign discount of 20-30 per cent on a particularlaunched eBay Feed that allows shoppers to
giantswiththeirhugecashreservesandall-out product but doesn't deliver the product oncustomise the homepage as per their needs
price wars, declining margins and excessive time, there are payment issues or absence of aand eBay Daily for international food items
discounting that negates the fundamental transparent return policy, the experience ofsuch as beverages, canned & bottled food and
cost-advantage that an e-commerce venture getting a discount gets diluted. Again, if thenoodles. HomeShop18 has announced its
could potentially offer, compared to a brick- service provided is good but the consumergrocery category. Snapdeal has partnered
and-mortar retail business, after achieving a realises later that other sites are offeringHero Electric to sell a new range of electric
certain scale. In the fast moving consumer better value, he/she suffers from post-bikes on its site. Flipkart is gearing up to launch
goods (FMCG) segment, for example, the purchase dissonance. According to Kunal Bahlnew wares and has said it will focus on
margins are as low as 10%. Other problems of Snapdeal, in a market where products andacademic and children's books and eBooks.
includethestillprevalentlackoftrustinbuying models are similar, companies are trying toSpending on brand development and
goods online through credit cards. This is the offer differentiation through "unique valueadvertisinghastouchednewheights.
reason why 80% of Indian e-commerce tends adds".Echoing a similar view is Arvind Singhal,
What led to the recent e-tailing boom in India?to be Cash on Delivery. Studies have shown a chairman, Technopak Advisors, who says,
Even though Indians pure-play online retailers,preference for traditional shopping methods “Differentiation holds the key.” “It is trust, not
just like their counterparts globally, they areamong Indians, particularly when an item is price, which is the key differentiator”,
losing money. Investors realise that the futurepretty expensive. Shopping is still a touch-feel- according to Sandeep Aggarwal, founder &
of shopping lies in e-commerce, with the piehear-then pay experience. Online retail still CEO, Shopclues.Com. But, Bahl admits, in the
split among the top few players. Further, theonly accounts for a minuscule $600 million, end, there's space for only a few players. Even
turmoil in the international market madecompared with India's $518 billion brick-and- internationally, the e-tailing marketplace can
investors look at newer markets like India. E-mortar retail industry according to a report accommodate one, or at the most, two
tailing (excluding travel related transactions) inpublished by Technopak, a leading retail dominantplayers,hesays.
Indiaisprojectedtogrowoverhundred-foldbyconsultancy.
What is for sure, however, is that growth in2021 to touch $76 billion, from $0.6 billion in
Whythen,oneisboundtoask,istheresomuch scale of operations will ensure long term2012,accordingtoaTechnopakWhitePaper.
hype about e-tailing in India? Will Indian e- survival, rather than concentrating on short
34. 32
Feature | ONLINE RETAIL BOOM IN INDIA
time, several new challenges arise like
ensuring quality control, integrating brands
and maintaining adequate stocks with the
vendor. Marketing costs are also higher. But,
morethananything else;marketplacesuitsthe
restrictive Indian regulatory environment
where foreign investment is still not permitted
in e-commerce, though the curb was lifted for
brick-and-mortar retailers last year, allowing
them up to 51% foreign direct investment (FDI)
in multi-brand retail and 100% in single-brand
retail.
There are divergent views on the future of e-
tailinginIndia.Someexpertsareoftheopinion
that the foreign giants would dominate the
smaller Indian ones due to their bigger
investment capacities. Others believe Indian e-
term profits. Sachin Bansal, co-founder, revenue-share fee (varying according to the tailers do have the capacity to grow and give
Flipkart admitted that it wasn't profitable, but productsold)fromtheretailersithosts. serious competition to the likes of Amazon and
explained that it was because of the "massive eBay, which is proved bythe fact that Flipkart isThe marketplace model, which has been
investments it was still making". He added, still the market leader in online shopping insuccessful internationally, is better than the
"We can be profitable if we stop investing, but India even though eBay has been here muchtraditional inventory model where the e-tailer
we are thinking long term."Amazon took a before Flipkart's birth. Myntra, Jabong,purchases and holds inventory and sells to the
decade to turn profitable. Even most of the HomeShop18 and Snapdeal are all majorcustomers. The investment required is much
major brick-and-mortar retail firms in India players to be reckoned with. Proper planning,lower for not having to own inventory and run
tookover4to5yearstochurnoutgoodprofits. intelligent strategies and investor support willwarehouses while the range of products is also
As Pinaki Ranjan Mishra, partner and national see them through the stiff competition.wider and prices are more competitive
leader (retail) at EY (earlier Ernst & Young), Acquisitions and partnerships are a given, butcompared to vendor-specific retailers. Return
says, "E-commerce players will succeed only if they need not only stem from the foreignon investment is about 5 times that of the
they have scale." Arvind Singhal says, "More players. To cite a fewexamples, Flipkart boughtinventory model, when companies of similar
than profitability, traction of a retail chain is out electronics retailer Letsbuy for anscale are compared. However, at the same
important. Also, it is good to remember that e-
commerce is the medium of the future." The
support of investors in a bearish market is also
crucial for survival. Firms like Tiger or Accel
have the appetite to take long-term bets on
market leaders, says an executive from a PE
firm. "This strategy has worked for them in
other countries like the US and China, where
they have pumped in a lot of money into
companies with potential and they have
turnedouttobeprofitable.So,theyarehoping
thatthesamewillhappeninIndiaaswell."
The final question is which business model is
best for e-tailers in India? The marketplace
model, first popularised by eBay, seems to be
the answer. Online marketplace is a site where
theownerneitherholdsanyinventorynorsells
anything but simply hosts a platform for
various third parties to meet buyers and sell
products. The marketplace operator gets a
35. YOUTHINK | 2013 | Vol. VIII 33
Feature | ONLINE RETAIL BOOM IN INDIA
TRIVIA
<India's internet user base grew to about 137 million as on June 2012 but e-
commercepenetrationisquitelowcomparedtomarketsabroad.
<Online retail still only accounts for a minuscule $600 million, compared with
India's $518 billion brick-and-mortar retail industry according to a report
publishedbyTechnopak,aleadingretailconsultancy.
<80%ofIndiane-commercetendstobeCashonDelivery.
<In the fast moving consumer goods (FMCG) segment, the margins are as low
as10%.
<E-tailing (excluding travel related transactions) in India is projected to grow
over hundred-fold by 2021 to touch $76 billion, from $0.6 billion in 2012,
accordingtoaTechnopakWhitePaper.Incomparison,China'se-tailingmarket
has grownfrom $20 billion in 2008 to $120 billion in 2011, and it is expected to
reach$200billionby2013.
<Amazon'sentryhasintensifiedcompetitioninthealreadyhotmarket.
<FlipkartisthemarketleaderinonlineshoppinginIndia.
<The marketplace model, first popularised by eBay, is fast gaining popularity
amongIndiane-tailers.
<Online marketplace is a site where the owner neither holds any inventory nor
sells anything but simply hosts a platform for various third parties to meet
buyersandsellproducts.
<The marketplace operator gets a revenue-share fee (varying according to the
productsold)fromtheretailersithosts.
<Return on investment is about 5 times that of the inventory model, when
companiesofsimilarscalearecompared.
<Risks of not owning inventory could pose quality problems for marketplace
operators.
<FDIrestrictionsone-tailersdonotapplytothemarketplacemodel.
estimated $25 million last year, Bangalore- designer kids' brand Kidology, which has growing appeal and trust in online shopping
based online fashion retailer Zovi has acquired already started export by retailing through a among the young generation and enhanced
rival firm Inkfruit and IRCTC, India's largest couple of stores in Dubai and will soon access to financial capital and experienced
online transaction site, will now partner with establishapresenceinAbuDhabi. managerialtalent.
Shop Online Trading, a subsidiary of Yebhi, to India's e-commerce version 3.0 launch year However the future plays out, one thing is
launch its online retail venture. Flipkart is could well be 2013-14 with a rapid certain - the consumer will be the real
looking at an IPO in the near future. Not only convergence of many enabling conditions - a winner.<
this, Indian e-tailers are actually looking to fast increasing pan-India internet user-base,
expand abroad as well. A case in point is launch of better quality 4G data services,
36. 34
Feature | THE ROAD NOT TAKEN
“A thought that
might occur to you
is that you've
already chosen
your career field
and it might be
too late to
digress…But is it
ever really too
late?”
THE ROAD NOT TAKEN
Looking beyond the ordinary.
Maitri Kothari
Juhi Shah
B.Com (Hons.) 3rd Year
Before starting to read this article, ask yourselves this simple question – “Have I given
enough thought to my chosen career path?” Think about it. We tend to ponder upon the
more trivial things in life than one of its major decisions – our Career! It is practically what
wouldshapeourentirelife.
Isn't doing an M.B.A. from a premier institute or holding a C.A. degree become the be all
and end all for us commerce graduates? This is a reflection of our myopic viewpoint of
“profession”. We only set our eyes on what we are prepared to confront. We are too afraid
to tread upon the roads less traversed and explore our true potentials. Nowadays it's just
about"bloatingupyourresume”andfollowingyournamewithahostofdegrees.
Don't we all have dreams we are too scared to even concede? These dreams get buried in
37. YOUTHINK | 2013 | Vol. VIII 35
Feature | THE ROAD NOT TAKEN
sands of our own insecurities. You can blame might be too late to digress ... But is it really and Bombay Times. She is most renowned for
thisontheceaselessstruggletosurvive,fearof evertoolate? Good Food Guide- India's first ever city
rejection in the society, family pressure or restaurant guide. She has run various TV shows
The life of Amish Tripathi exemplifies the
simplythethoughtoffailuretomakeitlarge. which have been telecasted by the likes of
essence of chasing one's dreams. His best
TimesNow,DDMetroandETNow.
According to a survey conducted in corporate seller, the Shiva Trilogy, has made him a
America, 80% of high end “professionals” were household name. He is an alumnus of the Brothers Nilay Singh and Ankur Singh from
unhappy with their lives. This unhappiness did prestigious IIM, Calcutta. He worked for 14 Patna have created a social networking site
not stem from their lack of materialistic years in the financial services industry in called Jumpbook. It is a multipurpose site
comforts, but from the dearth of passion for companies such as Standard Chartered, DBS which can used to post blogs, purchase or sell
theirwork. Bank and IDBI Federal Life Insurance, before items online and also as a forum for quiz. It
starting his writing career. In his interview with already has 22000 users just in a span of 4
There is an array of fields waiting to be
the Wall Street Journal he exclaimed, "I'm one
discovered. There is elegant mathematics in
of those lucky guys making a living out of
every creative field. We can merge our
something I really enjoy doing. That's a
specialised knowledge and our varied interests
blessing." However, it wasn't all rainbows and
to step on virgin territories and carve out a
butterflies for Amish. In fact, he wrote the two
nicheforourselves.
books while still a banker, mostly during
There have been a few brave hearted commutes. He faced over 20 rejections from
individuals who have dared to rebel, to express numerous publishers before Westland Press
and to believe in themselves. Society does not finally took it up."I never thought my ideas
generally expect people pursuing careers in would actually get published,” said Amish in an
creative fields to be highly erudite. Check this interview. But they did, and my word did they
though - Rahul Ram, the bass guitarist of the sell!
popular band Indian Ocean, did his schooling
To put a case in point, Rashmi Uday Singh's
from St. Xavier's Collegiate School, acquired an
intrepid attempt to try her hand as a Food
M.Sc. in Chemistry from IIT Kanpur after
Critic, after working successfully as the Deputy
getting the Bachelor's degree at St. Stephens
Commissioner in the Indian Revenue Services
College, and then went on to procure a Ph.D. in
for a considerable 15 years, changed her life.
Environmental Toxicology from Cornell
Switching between such acutely differing
University. He also happens to be a social
careers isn't child's play but she did it, and with
activist and played a critical role in the
such aplomb. Winner of the prestigious
NarmadaBachaoAndolan.Phew!
Gourmand World Cookbook award in 2011,
A thought that might occur to you is that she is the author of 32 books and is a regular
you've already chosen your career field and it columnist for Times Of India, Chennai Times
38. 36
Feature | THE ROAD NOT TAKEN
months. The founders of this innovative site do So, put on your thinking capsand come up with Eachindividualisunique.Whatwetrulyneedis
not boast of fancy degrees and built the site suchsimpleyetnovelideas. a SWOT analysis of SELF. It is a prerequisite to
without any formal training. In fact, they learnt understand what embodies us, what passion
If you have been inspired by these success
how to make websites from friends and drivesus,andsimplyput–whatwearegoodat!
stories and are wondering about the new
computer classes. They are currently vying for
arenas you can explore, here's a few you can We need to become Self Experts. One must
investmentfromtheBiharGovernment.
lay your hands on - Starting with a line closer to discover his strengths and play them up in a
our field, Actuarial Sciences is coming up as a mannerthatheisabletotransmutehispassion
promising vocation where one learns to assess intoprofession.
the financial impact of risk. Moving on to more
As was said by Henry David Thoreau, “Most
unconventional yet appealing careers - A beer
men lead lives of quiet desperation and go to
cicerone, much like wine sommelier, is a
thegravewiththesongstillinthem”.<
professional who specialises in understanding
the techniques of brewing, ingredients, food
pairings, glassware, and so on of beer. There
has also been an upsurge of new disciplines
such as gastronomy in which one studies the
gourmetcuisine.
If you are a texting champion and can type at a
speed of 200 letters a minute, being a court
recorder might just be your calling. Don't take
it as a joke, for court recorders in certain
countriesearninsixfigures!
TRIVIA
Jobswhichyouhaveneverheardofbutpayinsixfigures:
< John Harrison has the most delicious job in the
business. As Official Ice Cream Taster for Dreyers Ice Cream, John gets paid to
samplethreecartonsofeachflavordailytocheckproductquality.Heclaimsthe
gig isn't all fun and games since he must maintain a strict, spice-free diet;
however, being surrounded by Rocky Road sounds like a sweet deal
nonetheless.
<Whiskey Ambassador - Let's face it, this is every over 21 year old's dream job.
You would be responsible for choosing only the finest whiskeys and teaching
your clients the proper way to taste and admire the different attributes which
thisdeliciousliquorcanpossess.
<Watching Paint Dry: This is probably one of the most boring jobs in the world.
This man's job is to see how long it takes for a paint to dry. This can sound dull
butisaveryimportantjobforpaintindustries.
<Furniture Tester: Every single human in this world just wants to get paid for just
sitting. But, there are some lucky human beings present who are actually being
paid for just sitting. The furniture testers are paid for testing furniture by just
sitting on them. A heavenly job which every single person in the universe would
lovetodobutarealoddone.
Ice cream taster/Food scientist:
