Innoventure · 2018-11-28 · iconic industrialist who was a restless seeker of adventure and also...

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ISSUE: 04 Founders 2018 Innoventure “We deliver the difference” An Aviator An Industralist A Legend J.R.D Tata

Transcript of Innoventure · 2018-11-28 · iconic industrialist who was a restless seeker of adventure and also...

Page 1: Innoventure · 2018-11-28 · iconic industrialist who was a restless seeker of adventure and also strove for excellence in every aspect of his life. Jehangir Ratanji Dadabhoy Tata

ISSUE: 04 Founders 2018

Innoventure“We deliver the difference”

A n A v i a t o rA n I n d u s t r a l i s tA L e g e n d J.R.D Tata

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EDITORS’NOTEThroughout our Welham life we saw our School being exceptional at numerous disciplines. Be it sports, academics, public speaking and much more. However, there was one discipline in which we were very interested in but it lacked in the Welham curriculum, and this was knowledge and acumen regarding business and commerce. Though we emerged victorious at numerous debates, MUNs and sports events, we saw little, if any, mention of business conclaves or quizzes when it came to the arena of awards. With this in mind, along with some of our equally interested batchmates, we decided to formulate a group to propagate, promote and inculcate the knowledge and skills required by a person in the commercial world beyond our School’s walls.

With this was formed the idea of the ‘Business Club’, its model being centred around three major agendas. The first was conducting weekly discussions and quizzes; the second, publishing a magazine which could present philosophies, analogies, news and reportage in regard to business and economics; the last, to conduct a simulation of the stock market using online software. With persistent hard work and a lot of help from a number of staff members, the Business Club saw the light of day with us being the Business Club presidents, Aryaman Ahuja becoming the Innoventure Editor-In-Chief and Kanv Gupta becoming the coordinator for the Stock Market simulation.

The journey was truly similar to the phases of a business cycle, the first definitely being the peak where we nearly got one third of the school competing to participate in this initiative; the second being the recession where we saw a drastic decrease in participation, but we are happy to say that we never saw ‘depression’ for there were always people who continuously contributed towards the achievement of our aims and quite quickly, we witnessed the peak again.

In the span of six months, we have been able to conduct discussions every week and have taken out a total of four issues. This journey was more a personal one rather than a professional one. It was more than just an initiative; it became our passion and our priority during the course of these six months of its existence. For this we would first and foremost like to thank The Principal, Ma’am Bindra, for giving us the support without which the business club wouldn’t have seen the light of this day. Second, I would like to thank the Financial Studies Department who spearheaded it along with us during the entire time. Lastly and most importantly, we would like to thank 12th Commerce and the Innoventure Editorial Board whose contribution was no less than ours. It has truly been a most amazing journey.

This time the magazine has covered a wide span of ideas, and encouraging participation from the Middle School has surely paid off in the motive of the Business Club. It has successfully triggered interest in them in this particular field. Structuring this magazine, in order to make it more appealing to our readers has been a herculean task.

Divided into three sections, Innoventure hopes to cover a debate on ‘Trump- being more of a Businessman or a Politician?’ Both the sides have put forward intriguing arguments, but in my personal opinion I look at him as more of a businessman than a politician. Looking at his ventures after he started his tenure as the President of the United States, one can observe his language in lines such as, “Try living here, you might just bang into the President!” and a sudden hike in the prices of his properties. Some people prefer to look at it a little differently but Innoventure presents to you both the sides of the coin. Additionally, with ‘Burning Pockets’ we hope to make our readers aware about different scams which have happened across the world. Covering the ‘The European Greek Debacle’ this time we hope to highlight something which has taken place in more countries than we think.‘Trademark’ wishes to unfold and bring to you the journey of a brand which has always been able to take over our lives. Realising the fact that most of the Indians wait for any Apple product to launch, in this issue we will be talking about the ‘Apple Monopoly’.

Besides, this edition is a tribute to Late JRD Tata who passed away on November 29 1993, leaving behind a legacy that continues to motivate people even after 25 years of his death. The cover story aims to throw light on the contributions of this great man to the nation. His valuable commitment towards nation building saw no bounds. An awardee of Padma Vibhushan and Bharat Ratna, and his contribution includes Air India and a group that the whole of India boasts about.

Presenting to you the Founders’ Edition of Innoventure!

Apoorv Goyal & Chaitanya MotaniSenior Editors

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Innoventure, the first model of a Business Magazine at Welham, aims at touching topics such as world economics, crypto currency, political economics, financial news and the school’s own ‘Welham Economy’. Innoventure tries to present a panoramic view of the economic trends, perspectives, innovative ideas and political economics that are emerging from all around us. The magazine mainly focuses on economic issues as it is the only publication that presumes familiarity with the fundamental concepts of classical economics.

Though a magazine in school nine years back, it lost its way. The idea of doing something new inspired me and my team to start this publication this year. It started as a basic conversation in the class in the fall of 2017. The idea caught fire in the Spring Term of 2018 when it was taken forward and finally agreed upon. With all this in, we also came up with the idea of a Business Club, a club including debates, talks, quizzes and the Welham Virtual Market.

The year of the ‘Innoventure’ began with the Baisakhi Edition which covered how artificial intelligence is taking over, the paradigm shift in the economy, and the Welham Economy. This issue was followed by the WELMUN’18 Edition which received positive feedback from the students as well as the delegates. The cover story for the edition was ‘The Circular Economy’ which gave us insights into the major problem faced by the modern industrial economy, how the major economies focus on the Eco-metric and theoretical problems determining a nation’s competitiveness. To strengthen the magazine’s reach among the student community; we decided to have another edition before Founders. This made us deeply analyze a decade of crises and scams and how the Me-too movement is affecting the business world. At last, here we are with the Founders 2018 edition which is a tribute to an iconic industrialist who was a restless seeker of adventure and also strove for excellence in every aspect of his life. Jehangir Ratanji Dadabhoy Tata or commonly known as J.R.D Tata who passed away 23 years ago on 29th November leaving

a legacy which epitomized a way of life and a culture of business that cared for the country and its people.

Innoventure, stands for engagement. Every step in its creation from awareness to adoption to appreciation, presented us opportunities to celebrate progress and success.

Innoventure does not focus on big wins; it is designed to applaud successful milestones achieved on the road of trials in the business world. It has become a publication to help trust our judgements and discover our abilities to create and process information, muster confidence on the way and learn about operating principles within an organization that is autonomous in its structure .Besides, it allows to convey and pursue problem-solving ideas- even the controversial and unpopular ones, just like the entrepreneurial world demands from the leaders of tomorrow.

Ending my tenure as the Editor-in-Chief, I conclude with the words, “We did deliver the difference.”

Aryaman Ahuja Editor in chief

hasta la vista

Innoventure

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Q: Sir, where do you envision TATA motors in the global automobile market?Ans: TATA motors has always been providing its products in the Indian automobile sector. We are primarily a commercial vehicle manufacturer, and thus don’t plan to expand our automobile products out of the country. As far as the com-mercial segment is concerned, we’re competing with brands as big as BharatBenz and others in Nepal, Bangladesh, Sri Lanka and others.

Q: How does TATA motors plan to cut down on the economic losses to be caused due to the direct switch to BS V standards by 2020?Ans: The BS V emission standard are surely go-ing to bring along a lot of technological changes and alterations in the vehicles. The only solu-tion is to sell out as many models of the previ-ous standards as possible and that too as early as possible. Even this some losses will have to borne and there’s no solution to that.

Q: What are your views on the higher educa-tion system of India?Ans: India has been the land of intellect and knowledge. Our higher education is not second to any country. Though its always better to have an experience of foreign education too. My son has studied in India, and then abroad and today he’s heading Bharat Benz. All credit goes to our education system.

An Evening With

Mr. Satish Borwankar

COO Tata Motors

Mr. Borwankar, a Mechanical Engineer from IIT, Kanpur started his career with Tata Motors in 1974, as a Graduate Engineer Trainee and is currently the Chief Operating Officer. He has worked in various executive positions, for overseeing and implementing product development, manufacturing operations and quality control initiatives of the Commercial Vehicles Business Unit. During his visit to Welham Boys’ we got lucky to catch up with him on his thoughts about the automobile sector.

Q: What is TATA motors plan for the future di-versification in the automobile sector, especially after the failure of TATA Nano?Ans: TATA Nano was a result of the vision of Mr. Tata to provide the middle class an affordable four wheeler with all basic features. The Nano, started of very well, but then due to rising costs and com-petition we had to increase prices which somewhat brought it close to the price of other alternatives. A few of our models might have failed, but the newer ones like Tiago and others are doing decently well in the market. Moreover, R&D is one aspect TATA Motors is working a lot on right now, so the future seems promising.

Q: Sir, Electric cars are the future. What is TATA motors doing in that field?Ans: Electric cars are one thing which our R&D department is working one, and there’s a lot hap-pening. The country will soon get to see all of it.

Chirag BansalXI Commerce

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The major charge on the current Modi regime is the destruction of our economy. Leading the charges are the economic cavalry of the opposition, namely, the likes of acclaimed economists like Manmohan Singh and P Chidambram. Amartya Sen and the former governor of the RBI, Raghuram Rajan have also criticized the economy at various levels. Now, when such acclaimed scholars say that the economy is on the path of destruction, then can reality be placed on the contrary? Growth in the development of infrastructure is perhaps the fastest in our country’s contemporary history. During the UPA regime, 2 kilometres of road were being built per day, today 27km roads are built every day,while 40 Km per day is the target that has been set by the current government. For the first time, National waterways have been revived between Kolkata ad Varanasi. Under the UDAAN scheme, more common people than ever before can use the airways, in fact, a newly opened airport in Sikkim became the 100th airport in the country. But if still the economists believe that economic growth is a hoax, then we will believe them, for they are honorable and educated men.

When the Indian Economy was liberated, it was common knowledge that foreign investment was the key to economic growth. however, it is only recently that India has started a comprehensive scheme for internal development, MAKE IN INDIA. It has emerged as a manufacturing hub. On the ‘ease of doing business’ list, India has made a historic jump of 65 ranks in the four years of the Modi government. We currently stand at 77, a notable change since the UPA government, which left us at 142. Such reforms are only possible when there are hardline reforms, the evidence of which lies in each state holding investment summits, irrespective of party or policy following the Vibrant Gujrat model of Modi. Noida is home to one of the largest manufacturing companies today. yet, when these Harvard return economists say that the economy is in ruins, we tend to believe them because they are honourable men.

Meaningful reforms like the passage of the insolvency and bankruptcy code of 2016, which created a uniform and comprehensive framework to oversee failure and insolvency of companies. Further, greater liberalisation of the FDI in sectors like Defence and E-commerce has recorded a high inflow of 52.2 Billion dollars. JanDhan Yojana has seen a record breaking scheme involving rural outreach of banks. Startups are being encouraged by various schemes like the MUDRA Yojana. The fiscal deficit has been sub 47% in the last three years, in fact, the current account deficit, which was around 6.7% in 2013 is now 0.7%. Economic activity index is over 8.27% over theist year. Nearing 2019, the Indian GDP is set to overtake the GDP of the UK, our former colonisers. Yet, economists think that the economy is in peril, and we believe them because they are Noble Laureates and honourable men too.

Exports of India have increased by a huge 44% in September, and when a narcissist like Trump can say that India is one of the best on the negotiating table when it comes to trade, I’m sure he was not talking about Manmohan Singh. Addressing the elephant in the room, despite the implementation of the GST, the Economy has grown at a tremendous pace. Despite demonetisation, the internal economy has continued growth at a tremendous rate. But whom do we believe? We believe the elite Harvard economists, and not the stats. Well the truth is that these men are as honorable as Brutus and Cassius when the murdered Ceaser. My advice to them is to forget Manmohanomics and Nehruvian Elitism, Both have looted us since independence. Forget your Harvard economics, this is MODINOMICS, very much in sync with the reality of this country and far away from the elite classrooms at Harvard.

Mukund KediaXII Humanities

Is ‘Modinomics’ Working?

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T R U M P

FOR

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President Trump seems to be always in the news and mostly for the wrong reasons. But the most powerful man in the world has more to him than you know. Forbes Magazine estimates Trump’s worth as of September 2018 to be $3.1 Billion. That is a whopping amount and that too after becoming President. And a businessman always looks for his profit in any scenario. Even if it erodes morality and ethicality. So, the POTUS is defi-nitely is a bigger businessman than a politician. And he will always remain an outsider to the American political community. Trump formally launched his presidential campaign on June 15, 2015, from the Trump Towers in New York City. What is interesting to note is that Trump got acclaim and recognition solely because of his busi-ness prowess. Had not Trump been a business warlord that he is, he would’ve had never been able to transcend the echelons of Republican power so swiftly, possibly making it impossible for him to run for President. Trump cashed in on his repute of a businessman as his unique selling point and became the first president in 228 years to not hold a government office or a military post, and come directly from the public sphere. Something that reflects majorly in him being a businessman mogul more than a politician is that he chooses policies that have a utilitarian value rather than an ethical or a mor-al value. For instance, during the Presidential Debates with Hilary Clinton, Hilary reminded the audience that Trump wanted the housing market to collapse so that he could buy some properties and make some money. Trump interjected her by saying that it was just busi-ness. Something that was left needless to say was that Trump will subdue the pain of an American citizen for his possible business prospects. Which is a wrong thing to do but it proves how Trump evaluates things based only on their monetary value, thus making him a bigger businessman than a politician. Or when you simply take Trump’s promise of taking America out of its $540 Bil-lon budget deficit. He said he would eliminate the De-partment of Education and Environmental Protection Agency to channelize the funds locked there towards better things. Although environment and education are important aspects of public life, and had it been any

other politician he would give these aspects their due attention but Trump being the businessman that he is, he doesn’t recognize their value and would dismantle them completely. Something that also distinguishes him from a usual politician is that he does not follow the norms of engagement. While generally politics is laced with in-direct references, balanced and diplomatic statements, Trump likes to be curt and completely direct. He likes to address the latter directly and without any restraints of his stature of being the POTUS. He has got into famous twitter spats with the likes of North Korean premier Kim Jong-Un and London Mayor Sadiq Khan. This only reinforces that Trump is devoid of complying with courteous and diplomatic oratory, which is otherwise the primary characteristic of a politician, establishing how he thinks more like a businessman than a politician and he is more of a businessman than a politician. Also corporate houses are known for good marketing strate-gies. The same can be said for Trump, he came up with a clear, catchy slogan for his campaign that suit even those who do not spend the day, freaking out over fine details of law-making and policy. ‘Make America Great Again’ was perfect for his ‘average voter’ who could now see his slogan perfectly fitting into social media snippets and news adverts. Also his aggression towards the media that can be paralled to business houses fight-ing to retain control over the media. While Barack Oba-ma got eleven press conferences in his first year in his office, Trump only got one press conference conducted. Also, he seems to avoid questions by the likes of CNN and sticks to his favored Fox Network. This means that he is simply unlike any other politician who would’ve adopted a different strategy to tackle difficult questions. And only reinstating that he is more of a businessman than a politicianHence, by having an approach of trade, by lacking the demeanor of an average politician and by being overly aggressive towards the media, Trump manages to avoid the conventional gray umbrella of a politician and holding out a brightly-colored umbrella of a corporate.

Aarav Upadhyaya

>Businessman

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DEBATE

AGAINST What does a businessman want? I believe the straightforward answer is profits. However, Donald Trump donates all of his salary, giving up $400,000 to the nation every year since he was elected. A businessman is actively involved in the management of the company that bears his name but Trump resigned from his management roles from the trump group in light of becoming president. He might be filthy rich but those are his dividends from the Trump Group. As time passes Donald Trump has shown he is well involved in politics. He cares for his nation, in his very own impulsive and peculiar way. Although politicians, ideally, are supposed to be a very fluid category of people in a democracy, to maintain contact with reality, I will give in to popular biases and stereotypes that churn out leaders like Mr. Trump, which is a class of manipulative members of the society who advance in life through deceit. The obvious overlap with businessmen occurs due to the flexibility of membership to politics. Donald Trump has grown into his role as the President of the United States (POTUS). He might have lied to the public and his claims to settle American Federal Deficits might be baseless but he knows how to gain public approval. Trump is a deceitful and cunning politician, he skillfully uses propaganda and right-wing populism, which only a good politician can do. He has used right-wing nationalist politics with ease throughout his political career, from his manifesto to unrealistic promises. From the beginning of his campaign, he knew who his target audience is and what kind of propaganda to use to win their hearts. Trump was very effective with his right-wing populism at the time of elections, getting him the conservative vote for keeping out the job-stealing Mexicans and

“Making America Great Again” (whatever that means). He has proven to possess a very important skill required by a politician in this era of deceit and betrayal; he knows whose hearts he has to win. Trump might not have fulfilled half of his promises but in the process, he has discredited many media channels that could have been a potential threat to his reputation. Trump is nowhere near to be loved by his people, in fact, half of the world hates him. But Hitler and Franco were no different, they were skilled at spreading propaganda and winning the vote when they needed it but had different motives. Before Hitler took over as dictator of Germany, his party had become the single largest party in the Reichstag. Though he was hated by many of his subjects, he was still a skilled politician, so is Trump. He won hearts when he needed them. The other side might believe that Trump is still hoarding real estate all over the world and his political career is just a mean to boost his brand, but his political career is also harming his brand but still, he continues with it. His properties have lost value in the constituencies he lost. Trump might make his money out of financial conquests but he also knows how to win a vote when he needs it. At the time of elections, he crafted his campaign on the basis of what the country would want to hear. Therein lies, unfortunately for us, the true essence of a politician, a person who can get his way through manipulation. The only difference between a good one and a bad one is that of intention when using the powers of deception.

-Viraj LohiaIX

> Politician

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‘Presence’- Oxford dictionary describes it as the state or fact of existing, occurring, or being present, I define it as TATA. This omnipresent conglomerate is the only one to give credit when it comes to nation building. From an idea to IPO the journey has been noteworthy but even more noteworthy are the contributions made by the group in the building of this nation. From giving wheels to a poor man to India’s most prominent aerospace company, TATAs have led this country from its disorganised position to its peak. Giving one very major lesson that one should learn that you don’t need to be the Prime Minister to do what you believe in. But along with these important lesson TATA’s philanthropy is worthy of being applauded.

Transfer of power from the East India Company to the British Raj made room for one creative mind, living in the Bombay presidency besides the Indian Ocean, to embark on a journey to structure India. The philosophy leading this great man throughout his journey was to bring to India anything he thought would be beneficial be it employment benefits or India’s first Steel Plant. The Taj Mahal Hotel in Mumbai which is till date the most recognisable building from the Bombay Presidency. The Indian Institute

of Science which was another vision seen by TATA which later turned out to be one of the best Institutes of India. Overlooking the creations of his visions were Jamsetji Tata’s two sons under whom were inaugurated India’s first Steel Plant, India’s first Cement Plant and India’s first indigenous Insurance Company. After Sir Dorabji Tata and Nowroji Saklatwala, instead of the Baton being passed on to one of the grandsons it reached the hands of the member of the with a rather interesting background- Jehangir Ratanji Dadabhoy Tata. This French-Indian aviator gave India his passion by giving India ‘Indian Air Service’. Not to overlap but this indian-french aviator was faced by much difficulty after independence. Though the prospects seemed bright but the socialist policies adopted by the Indian National Congress were at odds with the group. After unilaterally taking the decision to nationalise Indian Airlines Pt. Jawahar Lal Nehru decided to make JRD Tata its chairman till 1977, and as we see it today it has gone into debt ever since. Partnering with the German company Dambler (Parent company of Mercedes) Tata group entered the commercial vehicle industry. Under the 52-year reign of JRD Tata the company saw the entrance of 81 new companies into the group.

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Ratan Tata took the baton from there, after facing much difficulties due to various legislature changes during the 1990s. Saving one of the TATA Group’s subsidiaries NELCO (National Radio and Electronics Company) Ratan ji showed bright prospects to the group. Restructuring the functioning of the company Ratan Ji Tata and once again gained control of its subsidiaries. A spree of acquisitions began thereon, most notables were the Tata Tea’s acquisition of Tetley, Corus by Tata Steel and Tata Motors’ acquisition of Jaguar and Land Rover which has become India’s pride today. Giving the poor man his car TATA was able to grab much attention due to their initiatives for the welfare of the public.

But the aforementioned reasons are not the only ones which indicate Tata’s greatness. If we look closely into the ownership of this conglomerate, 67% of which belong to TATA trusts. Tata Trusts are amongst India’s oldest, non-sectarian philanthropic organisations. The Trusts own two-third of the stock holding of Tata Sons, the apex company of the Tata group of companies. In order to enhance impact and ensure that interventions are sustainable, the Trusts have adopted a cluster-based approach, supporting multiple interlinked activities in identified clusters of contiguous villages across select geographies across India. Coupled with this, is the Trusts’ strict adherence to ensuring that robust financial systems are put in place with all partner organisations. Today, spread over 17 states and 170 districts across the country, programmes supported by the Trusts reach out to millions of households through an efficient network of 450 plus partner organisations. Additionally, the Trusts’ projects and initiatives, especially in

the area of educational attainment, significantly contribute to building intellectual capital in the country.

The contributions made by this conglomerate can never be forgotten by the country. The vision of Jamsetji Tata has kept the wheels of the fastest growing economy moving. In its 146 years of history TATA has contributed more meaningfully to the country than the Indian National Congress. It has been the pioneer in more than 70 industries in India and have shed light on the path of India’s development. From the Empress Mill to Tata Aerospace Tata has been known to be an inspiration for all entrepreneurs of India. Tata’s greatness cannot be summed by any kind of amalgamation of alphabets.

People say the greatest Sangam is at Pryaag (Courtesy- Shri Adityayogi Nath Ji) but I believe the greatest Sangam is at 24, Homi Mody Road, Bombay House. It is the place where aspiration meets inspiration. It is the place where vision meets commitment. And this is the place where legacy meets efforts.

Apoorv Goyal XII Commerce

Cover Story

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Today we all know Tata as the company which dominates the Indian markets in practically all the fields. Its portfolio consists of a total of 96 businesses ranging from iron, steel, chemicals, automobile, consultancy services, information technology and the list goes on endlessly. It is pretty obvious that an organisations is as good as its leader and one such leader that the Tata Group will forever miss is J.R.D Tata (Jehangir Ratanji Dadabhoy Tata), known by his close friends and family as ‘Jeh’.

He was born in Paris, France on July 29, 1904. His mother was french and his father, Ratanji Dadabhoy Tata was one of the three original founding members of the Tata Group, the other two being Jamsetji Nusserwanji Tata and Sir Dorabji Tata. Jeh received his education in and around France, England and Japan due to his father’s requirement of movement for his trade. However, French remained his first language and during one of his stays he met aviation pioneer Louis Bleriot that in turn kindled an interest for aviation in him and that my readers became the linchpin for the greatest developments in Indian aviation.

JRD Tata and Air India

His journey into the business began when he was compelled to leave the University of Cambridge and join the family business in 1925. And within one year his father died and he had to take his place in the ‘Tata Sons’ (the Tata Group’s flagship company) board as one of its senior directors. In 1929 he gained his aviation license which was historically the first such license to be given to an Indian. Within three years he setup the Tata

Air Mail service, a courier service connecting Karachi, Ahmedabad, Mumbai and Chennai with him being the pilot who flew the mail’s first aircraft. In 1938 Jeh took control of the Tata Group at the age of 34 as the youngest ever chairman of the group. He changed the company’s name to Tata Airlines making it India’s first domestic carrier and in 1946 changed its name to Air India seeing its rampant economic growth.

1948 was the year when Tata signed an agreement with the government to commence international services under the name of ‘Air India International’. After this point it all went downhill for the him and his flagship company.

The Nationalization- “A Back Door Takeover”

In 1953 a dark shadow was cast upon the dreams of JRD and his brainchild, the nationalization of Air India. He alleged the government of this takeover to be “through the backdoor” and also said that the company was deliberately slandered by the communications minister Rafi Ahmed Kidwai in 1949 to lower sown Air India’s value and make it cheaper to buy off. Prime Minister Nehru to this also had repeatedly tried to convince Jeh that this was not the case.

JRD also said that he wasn’t even consulted for negotiations and was rather just informed that there was going to be a takeover. The congress regime didn’t even take into consideration the solution that JRD was providing. And with this Air India and some other airlines were submerged into two airlines- Air India and the Indian Airlines, with the former being the International Carrier of which he was requested to become the chairman and the latter the domestic one of which he became a senior director.

It was just his love for the company that motivated him to continuously work and make it one of the best airlines globally until he was removed in 1978 by Moraji Desai. This prompted the industrialist to reply that “in the light of the work I performed for government as a labour of love during the past 25 years, I hope you will not consider it

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presumptous of me to have expected that when government decided to terminate my services and my 45 years’ association with Indian civil aviation, I would be informed of their decision directly and, if possible, in advance of the public, instead of the news being communicated to me by my successor.”Despite efforts by Desai to settle the dispute with him, JRD ended further communication on the matter with a curt message: “I do not wish to prolong this correspondence which I am sure is as distasteful to you as it is to me.” In a matter os 5 years he was reinstated by Indira Gandhi when she came into power and continued onto serve the Airlines with utmost amount of dedication.

JRD’s Micromanagement

During his term at Tata, JRD was often criticized or looked down upon due to the fact that he didn’t have any proper college education or a specialization in any field. He himself had confessed to the fact that this was a disadvantage he always felt about. However, one can never question that his work as a Tata chairman was if not more, then equal to all the former Tata Chairmen, especially when it came to his brainchild- Air India.

Though he was the chairman of a conglomerate of more than a 90 companies he always used to micromanage Air India. It went to the extent where he himself chose the saris and hairstyles of the stewardesses, the color of the various paraphernalia and even used to do the dusting and cleaning of toilets.

He always ensured that the standards of the company were the highest.This is probably the reason why people liked to travel by it in comparison to British Aircrafts even when Air India flights were 3 or 4 hours longer.

JRD An Aviator, An Industrialist, A legend

After JRD completed his air mail journey in 1932, he did two more similar runs in 1962 and 1982 to commemorate this air mail trip. The plane used was similar if not same all three times, the refueling was sone by a buffalo cart as it was done earlier by the very same man who did it in 1932 and even the route taken was same even when there were shorter and more safer routes. In 1982 he was also very strictly advised by his doctor and a number of Tata Executives and his friends to not undertake the journey but he still did on the condition that an aircraft would

accompany him along the entire way. And the funny thing is that the other pilot faced problems but he himself didn’t. Jeh is the epitome of the idea of doing what you feel passionate about. He did what he liked and achieved the highest standards in it.

In 1938 when he was given the responsibility of the Chairman of the Tata Group, the conglomerate had 14 companies under it. And at the end of his regime there were a total of 95 companies. This is more than sufficient to illustrate his performance as an industrialist.

This legend, who according to me is still the best example of a businessman. A person who made the perfect balance between his person and professional life, philanthropy and profit making and as an aviator and an innovator died on 29th November, 1993. His life was truly for the people of India and for the People of Tata. May he Rest In Peace.

The Sorry State of Air India

Today the Air India has reached a stage where the government needs to disinvest 76% of its shares to private sector holdings and still not getting any bids for it. And the most hilarious thing of all is that the Tata Group was itself one of the major potential bidders for these years. So one could call this nothing less than poetic justice. The circle of Air India could have come back to its origin- Tata, The Maharaja’s turban has surely fell for there isn’t any pride, comfort, profits or any reputation of the flagship airline that was created by the pioneer of aviation in India, Jehangir Ratanji Dadabhoy Tata.

May He Rest In Peace.

Chaitanya MotaniXII Commerce

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Starting from the famous but controversial statement of Peter Drucker (1981) - “There is neither a separate ethics of business nor is one needed”, this article goes on to argue that business ethics and social responsibility are not unrelated. It shows how it is necessary to distinguish between business philosophy and philosophy of business. Through this distinction it develops a framework that relates the two – business ethics and CSR. Is business approach to corporate social responsibility, strategic or ethical in nature? In my opinion Corporate Social Responsibility (CSR) is a ‘strategically ethical approach to business’. So this whole article would be based on mainly two things ‘Why do I feel so?’ and ‘What according to me is the right way to tackle such problems?’. I would also be talking about many other aspects such as ‘Why is it important for the society and our future?’.

Social responsibility can be in the form of recycling waste material such as plastic, reducing the use of water, ensuring consumer safety, ensuring significant use of electricity and power, ensuring welfare of the employees, implementing programmes and plans for the betterment of the society, using the 3R’s concept, or helping the needy; It is very important for business houses to understand that Corporate Social Responsibility (CSR) is crucial not only for the sustainable growth of our society, but also for the prevention of the occurrence of certain unpredictable disasters. In addition, this will also create an example for our future generations. Almost 3.5 to 7 billion trees are cut down every year in the entire world, and I am quite sure that not even half of this number of trees are planted every year. To add to this, 99% of the wood and

minerals obtained from these trees are used by Corporate houses to produce certain necessary goods such as furniture, rubber, Ayurvedic medicines for the people in exchange of money which generates huge amounts of profits for them. Strangely,many companies do not even contribute 1% of this profit for the welfare of the society and environment. There are only a few companies for example Xerox, Chipotle, Toms shoes, Juntos, Levi Strauss, VOLVO that have come with programmes such as Workers’ well being, drop for drop, One for One campaign, etc. for the advancement of the society. The question that arises here is that, ‘ Is this a strategical or ethical approach by business firms?’. Society expected business to produce goods and services as per the need of its members. Business as well as society expected the State or Government to take care of other social and environmental concerns. Further, it was assumed that the managers would automatically meet the interest of shareholders. This is why it is important for all business firms to engage in CSR.

To flesh out on what I believe, even though it is a strategic plan for these companies to tackle more customers and also meet the needs of the various stakeholders, it is ethical because at least they are doing something for the environment in return. It gives us a base to start with something and keep implementing good programmes and ideas to empower the backward classes of our society as well as contribute to the use of environment friendly goods. Countries like Sweden, Norway, Netherlands, France, Australia and India have made CSR activities compulsory on the basis of some conditions and this is a great initiative of these countries. In such cases where are our

A Strategically Ethical Approach

(SEA)

Corporate Social

Responsibility

12 INNOVENTURE

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INNOVENTURE 13

P5 countries (China, USA, UK, Russia)? Only one developed country i.e. France has initiated this. It is the responsibility of international bodies (dominated by the P5) such as United Nations and World Bank to make it compulsory for all countries to implement such programmes for the enhancement of the society.

Talking about the relationship between business and society, it determines what the responsibility of business towards society is, and hence, the setting up of standards of such responsibility is based on philosophy of business since it is concerned with ‘the fundamental principles that underlie the formation and operation of a business enterprises.’ There are three interrelated aspects of the philosophy of business which are- nature of business, its role in the society, and its moral obligations towards society. Mentioning some of the activities that fall under CSR where Social Responsibility can include caring about your own employees, in the sense that the company they are working in can help provide them with maternity or paternity leaves, medical insurances, paid leaves etc. Companies that manufacture wooden goods can grow more and more trees, companies producing paper can recycle used paper and then sell, clothing brands can recycle used garments to design new clothes, and sell them at a higher price. It is to note that a single fashion industry uses 71 billion cubic litres of water in a single year, and this must be reduced to a minimum. These days even educational institutions, mainly private institutions fall under the Corporate Society and the students every year waste so much paper that could have saved many trees. All schools should make digital education mandatory in all countries in order to save paper and for the ones that cannot afford such expensive technology, they should at least encourage reuse of old books by the promoted students. This could help save millions of trees.

Focussing on ‘Why is it Ethical?’ It is because, it is not the sole responsibility of NGOs to help the society to develop and move towards sustainability, but each and every individual should focus on this issue. If every company even contributes 2% of their net profit to help conserve environment, it would not only help them generate more customers, but also add to the social welfare of our society. If 10 trees are cut down, 20 other trees should be grown by the Corporate houses. Maybe some of them can just donate an Ambulance to a poor hospital. Talking about the Plan-SEA (Strategically Ethical Approach), this is just a suggestion from my side. What this plan basically aims at is that all corporate houses should focus on -fulfilling the demands of the stakeholders to

make profit strategically. With this even the interested (internal and external) stakeholders will be delighted and the company would also gain profits. In addition to this, it will in some or the other way help the environment and society. Both, morally and practically, this is the best way to tackle the problem of CSR. All business houses must ensure their stakeholders with a sound product or service, choose business partners carefully, manage the moments of truth, define the value of their ethics, and also evaluate business opportunities ethically.

Till now, in this article I have discussed the various aspects of the strategic and ethical nature of CSR that should help the readers to understand what I, as the writer believe is practically correct. Business is a wide term and is something that could either pull or push the world economy. I trust that some international body (probably the United Nations) should take strict action against any country that does not implement CSR laws. It is necessary for the welfare of the people and the environment. Companies that involve more in such eco-friendly activities and think about the betterment of their own employees should be awarded (maybe exemption from tax). CSR is the need of the hour, and can help us decide our future and sustain the resources. Even if companies think about ethical activities in a strategic manner, it would lead to a faster growth. Who doesn’t want money in such a world, but isn’t it better to use it wisely and responsibly?

In the end, I would like to say that a day might come when there will be no fossil fuels for the coming generations to use. A day might come when there will be no animals to help the food chain to continue. A day might come when there will be no trees to breathe fresh oxygen. Is there anything else left to say?

Aryan GargXI-Commerce

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14 INNOVENTURE

Raising the minimum wage has been the subject of debate and protest in each and every country. It arises for a time being, gains media attention, forces the governments to fulfil the so-called ‘needs’ of the lowest rungs of the proletariat and dies down, only to be re-ignited sometime later. Throughout the course of this article, there shall be three main assertions that shall be proposed by the writer with the support of an argument and an example. What is imperative is for the reader to remember that this article is an analysis that is being presented by the author as a means to put across his own theories and beliefs.

The first and most surprising argument against mini-mum wage is that it leads to a lack of jobe. One of the fundamental rules of economics is the rule of de-mand and supply. As the value of a product rises, so will its cost. And as more and more people aim to gain a profit from that added cost, the production increases, thus creating a surplus of production that neutralizes the value of the product. So, when the cost of labour increases, most busi- n e s s e s which pay employees at minimum wage will not be able to afford numer- o u s employees, thus, creating an inexperienced worker with a low chance of getting hired anywhere else. A recent study by Jeffrey Clemens and Michael Wither found that over 1.4 million jobs were destroyed in the late 2000’s when the aver-age universal wage rose about 30% in 50 states. W h a t worsens this statistic is that it was prob-ably those who needed the job the most were the ones who were fired first. And this brings us to the second assertion.

Minimum wage has a disproportionately nega-tive effect on marginalized groups. This means, that when minimum wage is increased, it is the workers hired the last who were fired the first. Non-suburban residents, immigrants, minori-

Is Not The Answer...

It Never Was.

ties and other groups that face social inequality are at the greatest risk of being fired. Thus, it is those who are already in plight who suffer the most. This harsh reality is compounded by the dreary fact that as jobs decrease, competition for them increases, thus further lessening the chance a minority community member has at a job. Also, this is not accounting for the fact that jobs pay more, individuals of higher qualifica-tions will start applying for jobs that were earlier menial. This will result in retirees and the well-educated snatching jobs from people for whom the world at this time must be looking like a very bleak place.

Thus, it is due to the aforementioned reasons that the writer strongly supports the complete implementation of the socialist economic the-ory. As has been clearly demonstrated above, the free market cannot hope to use superior principles that are inherently socialist and ex-cept gains out of them. In the end, either it is the oppression of the proletariat that has to be con-stitutionalized, or it is the complete implementa-tion of the worker’s bible that must govern the

political system of countries. Tools that have been awarded by these west-

ern liberal democracies to deal with the demographic shift in the country are improper. As

Marx said, a day will soon come, when workers of the world will

unite to create a communist heav-en, however dis-tant the possibility might seem right now. After all...

you have nothing to lose but your chains.

Mrinank ChandarIX

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Is Not The Answer...

It Never Was.

INNOVENTURE 15

It is common for all human beings to feel jealous of those who are doing better than oneself. It is a part of human nature, after all, a part that compels us to strive towards betterment. But what do we do when there is no way of improvement. What should we do when we feel that people who have an advantage from birth, namely beauty, are doing better that us. Why do we feel that beautiful people always get the better end of the stick. Is it even real, or is just the result of obsessiveness and paranoia. Well, we have the answer now. It turns out that putting makeup and being beautiful have some benefits that our body has been unknowingly responding to.

Studies across the word have shown that beautiful babies get more affection, even from their own parents. Talk about a face that only a mother can love. Moreover, noticed that in junior classes, it was always the fair and lovely who were expected to perform, save a few exceptions. He result is that attractive students tend to get higher marks in school, and are more likely to get a degree. And the discrimination continues. Sweating about getting a call back from the firm you applied for? Well, if you are handsome, then the chances of that happening are almost three percent higher, unless of course, you’re a doofus (which seems to be pretty common amongst that specific group). Politics, a mechanism that hangs the country’s fate on the string of appearances is also grossly a f f e c t e d by this

unconscious discrimination. Politicians with a beautiful face are considered more kind, competent and trustworthy (yes! politicians). Off course, even in this, women suffer. Attractive women applying for jobs that are considered masculine are less likely to be hired, but then, that is true for all women. Talking about jobs, the gender pay gap between men and women is puny compared to the gap between people considered beautiful and those termed as ugly. The wages of a tall person increase with his\her (ugh) height, at the rate of about 789$ per inch (however, they are also found to have a higher IQ, so it seems that nature can be blamed for this one). Even NFL quarterbacks earn more if their faces are symmetrical, but that’s stating the pretty obvious. Other areas is life like promotion and court cases are also affected, but I believe you get the point.

So, for all those people who wonder why we spend so much on cosmetics (making it a

160B$ industry), here’s your answer. And this is just a small issue. Humanity has taken self beautification to such heights that the fourth richest man in the world is in the fashion industry. But all this is not some stupid act of self indulgence on the part of this ever consuming

bourgeois society. No, this is the response to an economic phenomena

that has the potential to change our lives, and has been doing

so for many years already. So quit reading and start

shopping...it may just change your life.

Mrinank BhartariIX

The Lip Gloss Phenomena

Page 16: Innoventure · 2018-11-28 · iconic industrialist who was a restless seeker of adventure and also strove for excellence in every aspect of his life. Jehangir Ratanji Dadabhoy Tata

The International Monetary Fund, as the name suggests, is an interna-tional organization which deals in money and funds. It provides loans to countries to foster economic growth and high levels of employment and to provide temporary financial assistance. It aims to stabilize the world economy and looks over the exchange rates. However, this fund doesn’t work like a traditional bank. Countries donate capital to the fund and con-trol stakes in it, in proportion to the funds they provide. The country also gets voting power on basis of its contribution. The higher the contribution of the nation, stronger the voting power of the nation. This power comes in to play when it comes to deciding upon the IMF’s course of action. Cur-rently, USA is the strongest country in the IMF with 16.74% voting rights.

This voting right in the IMF gives the country a veto. They can deny giving loans to any country they want to. The question is, should such a policy exist in an organization which aims to better the world and aid poor coun-tries. Though the IMF has helped counties like Greece, Ghana, Morocco, etc by pumping millions of dollars into their economies, yet it is criticized as western counties use it to further their own agendas. This system al-lows countries like the USA to deny the loans they want to deny. The IMF was regarded as a “rich countries’ club”. These rich countries are partial towards the issues faced by poor countries. As reported in The Hindu (May 2, 2007), Venezuela’s president Hugo Chavez announced his country’s decision to leave IMF and the World Bank. He accused them of exploiting small countries. He branded the IMF and the World Bank as “mechanisms of American imperialism”. The OPEC nation’s leader Mr. Chavez said: “we are going to withdraw…. and let them pay back what they took from us.” He issued an order to his Finance Minister to begin proceedings to with-draw Venezuela from both the IMF and the World Bank.

How does the Fund receive capital if it doesn’t use a policy? Their policy of contribution gives incentive to countries to donate to the IMF as they receive economic and political influence in developing countries which might be valuable in the future. Though it has other disadvantages too, the interest rates payable on the loans made out of borrowed funds is as high as 14.56 per cent. So, developing countries experience a lot of difficulties in redeeming their loans borrowed from the IMF. The IMF also doesn’t have any uniform sources of wealth; a country donates to it out of choice and can stop as soon as their agreement is fulfilled. As it cannot print or create more currency or liquidate money, donations are its major source of income.

When compared to other international organizations, the IMF tends to be one which runs on influence and politics. To protect their interest countries like India should aim to increase their voting power in the IMF. To fight such exploitation and to keep western countries like the USA and EU out of exercising their financial arm twisting, we should consider this a major aim. In that case, we will not be the losers when it comes to the IMF’s stringent and austere policies.

Aryaman AhujaXII Commerce

16 INNOVENTURE

TH

E I

MF

GA

MB

LE “The Cloud Of Politics “

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17

When we talk of huge economies, economies which are some of the biggest in the world, the country that comes to mind in less than a jiffy is the United States of America. The question that instantly comes right after is- Why? A simple answer would be because it is capitalist. Capitalism is one system that you would find common to all huge economies, simply because it offers the people a chance to work towards development firsthand.

For those of us who do not know, capitalism is an economic system. In this system, all the means of production are owned by the people themselves. The prime example of a country that follows this system would be the US but there are others. It is of utmost importance to understand that capitalism is the exact opposite of the economic system known as capitalism. Also, important to understand is the fact that capitalism is not an economic system that was written down in the form of a doctrine or even as a thesis, it has evolved through the ages through trial and error, and we now have what we call today’s capitalism. It can also be said that capitalism is the law of nature itself (however some would completely disagree with me).

Capitalism may have a lot of pros and may have given birth to the world’s biggest economies, but it has its fair share of cons too. Firstly, capitalism works only for those few who have a strong economic standing. This is because all the wealth generated by the particular company goes to the owner of the company and is then distributed among all the workers.

Imagine the average worker in this scenario, he will keep on working day and night and get a meager income. He will not be able to move forward in the social ladder (of course, there are exceptions) and thus he himself would not be able to enjoy capitalism’s so called advantages. He would be caught in something like a vicious cycle, a cycle that will constantly exploit him and take advantage of him (rather than he taking advantage of the system).

The next con of capitalism is one that many of us may have seen. In a capitalist regime,

the dog eats the dog (metaphorically, of course). These are the words of the UK’s Labour Party leader- Jeremy Corbyn. In the midst of the rat race that is always omnipresent in a capitalist society, competitors have no choice but to exploit the one below them and sometimes even the one who has the same social standing as the person being talked about. These are the very foundations of a society that is not enriching and offers glory only to a selected few.

I understand that I will have lot of rhetoric supporting capitalism thrown around at me, like “capitalism is the very breath of life for a nation” and “only the weak of heart are socialists,” and to an extent, I would accept it all because capitalism is certainly a lot better than socialism, however, it is not perfect as I have mentioned in my article. In fact, in the world of economics,nothing is.

Samanyu Raj MalikIX

Should The Dog Eat The Dog?An Assessment of Capitalism’s Cons

INNOVENTURE

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18 INNOVENTURE

Greece, a country which has for long been acknowl-edged as the ‘cradle of all civilisation’, in on the verge of collapsing. The nation became bankrupt a long time ago, and continues to be embroiled in financial debt and high rates of unemployment. Many econo-mists seek to blame the Eurozone as a contributing factor to this debacle. See, the Eurozone is a very complex organization. It was established a long time ago, with the aim of creating a common currency for all European nations, and essentially integrating all the economies of the states. Though, the intent of this was completely political, and ran on the lines of the visionary ‘European Supercontinent’, the economists completely failed to look at the economics of it at that time. Unfortunately, it has resulted in the economic annihilation of the little Greek nation.

The Eurozone, when looked at from the lenses of an economists eyes, comes out to be a pretty stupid and redundant economic policy, though it has been suc-cessful in integrating the member European nations politically.The Eurozone, in principle, has coerced all member nations to forswear their economic sov-ereignty, and accept the Euro as a common currency, run by the European Central Bank. There are two ma-jor reasons, why it doesn’t work for the betterment of European economies. The first reason is pretty simple: Eurozone members are not at all comfortable trading with other backward nations of the Eurozone. Ire-land’s main trading partners are the United States and the United Kingdom; whereas, Finland’s main trad-ing partners are Russia and Sweden. In such a situa-tion, nobody can force them to downgrade from such strong economies and trade with weaker economies such as Portugal, Italy and Greece. Another reason that this notion of a integrated European society, trad-ing within itself fails is because of the pre-existing social diversity in Europe. This social diversity, and the subsequent existence of separate welfare states in various Eurozone states, has lead to reduces labor mobility. That essentially means that, workers from Spain, which has a poor economy and high debts, cannot move to Denmark or Sweden, just because of the fact that they cannot speak Dutch or Swedish.

Now, how it all comes into play in Greece is inter-esting. Greece became a member of the Eurozone in 2002, they immediately began borrowing from the richer economies, to fund their own financial recuper-ation, but due to excessive borrowing, and inadequate prosperity of the economy, the debt rates began to increase, unemployment had already been on a high, and continued to grow to 26% in 2010. This in turn lead to the national debt growing to around 150%,

and the fear of Greece defaulting, led to investors in-creasing the cost of borrowing. What this has eventu-ally lead, to is that one default by Greece would lead to subsequent defaults in Portugal and Italy, and in the end, all of this could lead to the downfall of the French economy. It seems very easy to blame Greece for borrowing incessantly, and not spending any of it to better its economy or unemployment rates, but, unfortunately, they aren’t the only ones to blame. The Greek problem could very easily have been averted. See, a majority of the debt of Greece lies with the na-tional banks, and not with the central bank. Also, what we need to understand is that Greece’s banks could have been bailed out of their debt, if the ECB had pro-vided the rich European nations money to Greece’s central bank, which in turn could have bailed out the national banks. All of this was the only solution since, the credit rates for the Greek banks was dropping, and the world knew that a default by the national banks was inevitable. Now, why the Greek banks and the ECB ‘chose’ not to do so, can be justified very easily.

All of this has been a result of the fact that there is huge social diversity within the Eurozone, and even though, the governments of the country may feel like they are part of a much larger European superconti-nent, the people themselves, do not hold such simi-lar beliefs, and therefore, richer democracies such as Germany and France cannot spend their people’s tax dollars on helping out a poor nation, that has already defaulted 5 times on its international debt. Subse-quently, the rates of the Euro cannot be modified due to institutional fallacies within the Eurozone infra-structure. Like, I mentioned before, the Eurozone is constituted by various, disparate economies, and so a rate that suits Greece, with 25% unemployment, does not suit Germany, which has an unemployment rate of less than 5%. In the United States, the poorer states of Mississippi, Kentucky and Alabama are always re-ceiving money from the richer states like California and New York. In the Eurozone however, the people just don’t feel like that since they’re not all part of the same nation, and their tax dollars is not helping their own nation in any way.

Therefore, it remains to be seen how the small nation of Greece is able to overcome its debt crisis, and sub-sequently is able to recuperate. All we know is that, a lot needs to be changed.

Sas ypostirízoume tin Elláda

Sanshray GhorawatX

The European Greek Debacle

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INNOVENTURE 19

India is still not a power surplus country, as envisaged by the government in its tall claims. Peak power deficit in April-July was 0.9 per cent, while overall electricity deficit stood at 0.6 per cent. As much as 170.76 GW electricity was supplied during peak hours against the demand of 172.38 GW during April-July this fiscal, resulting in a def-icit of 0.7 per cent, as per the Central Electricity Author-ity’s (CEA) power supply data. The CEA had pegged energy and peak power surplus at 4.6 per cent and 2.5 per cent, respectively, in its Load Generation Balance Report (LGBR), which indicated that India will be a pow-er surplus country in 2018-19. But unfortunately, all this has just formed the premise of another false narrative by the NDA government. The point of concern in all of it is not the failure of both the UPA and the NDA government in making a power surplus India, rather it is the realisa-tion that we as Indian citizens have failed the country to overcome the energy deficit.

This energy deficit in India exists majorly because of three reasons; firstly, because of shutting down of plants or technological obsoleteness of plants thus bringing down the production capacity, secondly because of lack of coal supply required for production of electricity and thirdly because the grids and distribution centres aren’t used optimally. All of these might individually not seem very big issues, but ints only because of these loopholes that even after being world’s third largest producer of

Making India a power surplus nation from one in a power deficit

electricity, India ranks 81st in the overall energy self sufficiency in the world. The way forward to resolve this is to explore, identify and implement alternate measure to harness energy.

Whereas India has started investing in sectors such as nuclear energy, wind energy thermal en-ergy, solar energy and others, but in order to ob-tain the most out of these, further development has to be worked upon. All these sectors require major funding for optimal and efficient utilisation, but if we particularly look at solar energy that is one thing which can actually be very feasible in both economic and logistic terms. The cost of a solar panel for one household might be a little to-wards 70,000 after the subsidy. Initially this might seem much, but it is the actual alternate technol-ogy which can help create a power surplus right from the micro to the macro level. In a country like India, where a majority still lives in the rural lands and electricity shortage is a common prob-lem, these can be of great use. A household can recover the cost of its panel within a year or so in terms of cutting down on electricity bills. In the third year, the household can meet its electricity needs, the maintenance cost of the panels, and still be left with a few watts to spare. This is gonna work like a snowball, collecting the power surplus-es at the micro level we can make a difference in terms gigawatts at the national level.

The best part about all of it is that, not only does it help in the inception of the dream of creating a power surplus na-tion, but also in handling with electricity cuts, high electricity bill, corruption by the means of faulty meters and most im-portantly cutting down on our reliability on natural non-renewable sources like oil and coal, which are exported in large quantities from the west. Its time to re-alise that one change at our individual household level can end up making a big difference in the power sector, and solve both our and the nations problem. So let’s be the change we’d want to see, and make this small investment of ours for a bright(literally) future.

Chirag BansalXI

The Sad Case Of Energy Deficit In India

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20 INNOVENTURE

Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, devel-ops, and sells consumer electronics, computer software, and online services. This company, along with Microsoft, are or have been the two leading technology giants in the past few decades. Numerous gadgets and accessories that were pro-duced be these two companies have changed human civilisa-tion and the way humans function within the last 30 years. Both the companies provide a multitude of devices ranging from computers to watches, many of which are quite expen-sive for the middle-class man. Moreover, the amount of mon-ey they have made is phenomenal and is more than the next 20 companies’ revenues combined.

When we compare hardwares and softwares of the two gi-ants, we find something very peculiar. In a Microsoft product, you will mostly be able to use the Universal Storage Bus and

THEAPPLE MONOPOLY

other various connecting devices through the ports that have been built in the device. This, on the other hand is not the case with a lot of Apple products. Apple products, generally do not have sockets which are compatible with the storage or other hardware devices a person might use. In the softwares to, Apple does not have a common platform with other majorly used softwares, unlike the these very ‘majorly used softwares’ which are generally compatible with each other. Any transfer of data from one of the softwares to an Apple product needs a third party file sharing application or software, or it needs the user to download an application from Apple itself for example: iTunes. Apple has been able to make itself an exclusive entity in the global technological market, which has made sure that users adapt to their softwares in order to use them, not the other way round where the software of a company has to be compatible with others so that it can be widely used. This exclusivity of Apple has a few strains on its customers; which come with the numer-ous advantages of using an exclusive software platform. Customers need to buy hardware connectors(Made by Apple itself) so that they can connect their storage devices with their Apple product; lest they buy one from Apple itself. This results in two things, one being the increase in the revenue of Apple(due to the sales of the Apple made connectors and acces-sories) and the second also being the increase in the revenue of Apple(if the consumer totally shifts to an Apple platform). On the software part as well, Apple products show extreme ease in sharing of data from one Apple product to the other, whereas sharing of data from an Ap-ple product to another software based product might appear as a problem to many people. This results in people buying Apple products for the ease of compatibility with the devices they might already have.

All of this ensures that Apple has somewhat created a monopoly in the market today, as it recently became the first technology giant to reach the $1 trillion mark after a record finan-cial quarter. The exclusivity and dominance of this company is quite evident in the world that we live in today.

Sarthak TayalXI-Science

Trademark

Page 21: Innoventure · 2018-11-28 · iconic industrialist who was a restless seeker of adventure and also strove for excellence in every aspect of his life. Jehangir Ratanji Dadabhoy Tata

Public services form an essential part of our life. A majority of our population relies on schools hospitals and roads and other innumerable and irreplaceable government services. But they cost money, money that any government in the world would love to re-frain from spending due to it’s sheer amount. And some countries are feeling a pinch a little more than others. To add to the problem, populations around the world are aging, and thus there is a decrease in the labor force at a rate that has been unprecedented, possible only because of the demographic shift that happened in lieu with the industrial revolution. Thus the pressure on public services is higher than ever, and seems to be showing no signs of decline in it’s growth rate. Thus, the ever shrinking working popu-lace needs to pay ever more taxes to support the age-ing population. Another factor that plays a significant role in healthcare industry is the cost of new technol-ogy, which is always increasing as it is. And here is where we get the answer. Broadly speak-ing, there are three things that the government can tax, which are income, consumption and wealth.Data from the OECD countries alone shows that in-come taxes have been increasing over the years. How-ever, this solution is anything but optimal. Evidence has blatantly shown that countries with a high income tax (including corporation tax) tend to have a lower economic growth and also have an unhappy work-force with people unwilling to work. On the contrary, countries with a low income tax, like the uk, have a higher economic growth rate, so obviously the solu-tion cannot be found at the end of this road. Second we have consumption tax, which is basically service tax in the us and value added tax in the euro-zone. However, this type of tax has a blaring fault. The part of population which spend a higher percent-

age of their wages on day to day purchases will have to a greater amount of tax in context to the wealthy. Thus, it is the poor who are worst hit by this kind of tax, and this is just one of it’s many cons. Thus, the answer evidently lies in the third kind, al-ways a holy number for the Greeks. Calling taxes on wealth efficient is understating their potential. In fact, government dues on things that rich people own like land and property would instantly create an almost insane sum of money in taxable terms. However, the problem is on that has faced society for millennia. The particularly well-off section of society are usually (al-ways) the ones who yield power, no matter what an optimistic revolutionary might say. Thus, taxing the wealthy is an option that, like all things good, comes at a price that decision makers are not ready to pay.To conclude, what all this points towards is an increas-ingly Trumpian world. A world in which we resist so-lutions until the problem becomes fatal. A world that denies climate change. But before the train of thought that is steaming in the mind of the reader completely derails, let us conclude.

What we need are tough political and economic re-forms in global administrative systems. Politicians shall soon realize that the only other constant to change is the futility of resistance to it.

SteffiIX

For the Tax Lock

Page 22: Innoventure · 2018-11-28 · iconic industrialist who was a restless seeker of adventure and also strove for excellence in every aspect of his life. Jehangir Ratanji Dadabhoy Tata

22 INNOVENTURE

Prenups and

MessupsIn the business world, the Principle of Conserva-tism states that every businessman takes into account only the future losses rather than the profits. Is it because of this principle that Prenup-tial Agreements have come into existence?Maybe the answer to this question is ‘Yes’. With everyday passing by the number of divorce cas-es are rising, but hardly anyone is aware of what actually might be the reason for some of the cas-es. We believe that most of the divorces happen just because of bitterness between the two indi-viduals but there is lot more to it. Often, today it is not just the spouse walking out but also a lot of the financial assets with him/her. This originates the role of Prenuptial Agreements.

Prenuptial Agreements are common legal steps taken before marriage, which establish the prop-erty and financial rights of each spouse in the event of a divorce. If there is an absence of a prenuptial agreement between the partners then, all the assets acquired during the marital life are termed marital property and both the partners have an equal stake over the assets. In today’s world some of the people see the ab-sence of a prenup as a source of income and take advantage of the situation by marrying a wealthy person and divorcing within months. The infamous Britain’s most expensive divorce of the hedge fund tycoon couple can be discussed in the light of this topic. Billionaire hedge fund manager Chris Hohn has been ordered to pay his estranged wife Jamie Cooper-Hohn 337 mil-lion pounds (INR 3000 Crores) in the largest di-vorce settlement in British legal history. Cooper Hohn, 49, had sought half the assets. But the 48-year-old husband Chris Hohn, who runs

his TCI hedge fund, offered a quarter, arguing that he had made a special contribution to their wealth during their 17-year marriage. In this case Chris had accused his estranged wife of criminal and fiduciary wrongdoing in the handling of the fund. Due to the absence of a prenup the wife said that Hohn was controlling and aggressive and she felt “constantly threatened” over how she ran their private charity since the marriage collapsed.

This was the case of Britain but considering the case of our very own nation such agreements are not even legally recognized and sometimes peo-ple fall as a prey to such unethical and unscru-pulous desires of their spouses. They may be a sign of mistrust or lack of commitments among the people, but they help to solve financial and property issues. Therefore, it is of utmost impor-tance to spread awareness about them and get them recognized by our very own judicial system. As we all know that prevention is better than cure so is a Prenuptial Agreement before marriage. So look forward to prenups before you messup.

Divyansh Mehta &Akshat Maheshwari

XII- Commerce

Page 23: Innoventure · 2018-11-28 · iconic industrialist who was a restless seeker of adventure and also strove for excellence in every aspect of his life. Jehangir Ratanji Dadabhoy Tata

INNOVENTURE 23

A decade ago, the world witnessed the infamous recession of 2008, that shook the very foundations some of the most powerful economies of the world. The 2008 Financial Crisis as it is infamously called proved to be the greatest recession since The Great Depression of 1930 and resulted in a global economic turndown. A recession of this size could only result as an aftermath of various factors rather than one, which had been accumulating over the years. One of the major causes of this financial crisis was subprime lending. Subprime lending was a new concept at the time and involved granting home loans to people with poor credit histories. This meant that the loans were being provided with a high magnitude of risk. Subprime lending led to an increase in the housing bubble. Around this time, an investment giant known as Lehman brothers took control of two institutions involved heavily in subprime lending, namely-BNC Mortgage, and Aurora Loan Services. But then in 2006, The US Central bank raised interest rates and many homeowners who had taken loans started to default and the housing market began to crash. Lehman Brothers became overburdened, and soon the inevitable happened to the bank that had survived both World Wars and The Great Depression, it filed for bankruptcy. This was the element that triggered the recession. Lehman Brothers was one of the major market-makers in most of the critical markets. When Lehman went bankrupt, then equity holders would lose all their money, debt holders would lose some of their money and all the derivative trades that Lehman currently had on with its counterparties.The recession had a scarring effect on economies all over the world. Unemployment rose by 877,000 from April 2008 to hit 2.49 million in the three months to October 2009.

The recession saw a 12-month drop for manufacturers with output down almost 14% year on year at its worst point - the lowest seen since the 17% fall in output in 13 successive months of decline between 1979 and 1980. Borrowing is set to hit a record 178 billion in the current financial year - 12.6% of the country’s entire output - due to a drop in tax take and higher spending on unemployment benefits.The road to

recovery seemed to long and full of obstacles. The United States of America recovered from the recession in just one year. But other countries with weaker economies found it difficult to recover without aid and took nearly 6-7 years to recover. The IMF itself could not help such nations and its role in the road to recovery was simply that of an advisor.

In my opinion the Recession of 2008 occurred simply because of the lack of regulation of the mortgage brokers of various firms by the governments. The government was oblivious to the fact that subprime lending would have catastrophic consequences if it stated happening on a large scale. Even after the crash of the housing bubble when the people started defaulting on the payments, Lehman Brothers kept on

increasing their share in the subprime lending business, and eventually crashed. Bear Sterns learnt this the hard way, but was saved when JP Morgan agreed to buy majority stake in their company. If one gets a look at the facts and figures of the recession, he can know that this was the most widespread and the most impacting recession since 1930, and even after a decade has gone by since it occurred its impact is still seen in some countries.

Tushar GuptaXI

A DECADE

OF A

CRISIS

Burning Pockets

Page 24: Innoventure · 2018-11-28 · iconic industrialist who was a restless seeker of adventure and also strove for excellence in every aspect of his life. Jehangir Ratanji Dadabhoy Tata

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