Demonetization: One year Later

The historic day of 8th November 2016 would be remembered as a defining moment in the history of Indian economy. This was the day when the Indian PM Mr. Narendra Modi shocked the nation with the declaration of demonetization and scrapped the high value currency of Rs. 500 and Rs. 1000.
This day indicates the Government's resolve to curb the menace of black money from the Indian economy. It was considered as a well thought decision from the government and also a hidden urge of the larger section of our society to root out the curse of corruption and black money.

Let us discuss how the economy has fared in the past one year of demonetization. We have seen and witnessed the bad part but now we will focus on how it is changing the way Indian economy is moving now.

The Bullet Train in India: Too Fast to Catch?

India’s creaking, colonial-era railway system is preparing to take a giant leap forward as the Indian prime minister breaks ground on the country’s first bullet train project. Only a handful of high income countries with specific demographics have High Speed Rail (HSR), while many have failed in their efforts, others have abandoned after studying it. The main problem is viability, given the huge costs involved. 

Finding the Right to Privacy

In october 2015, a five member constitution bench of the Supreme court was formed under the Article 145 (3) of the constitution. The bench primarily dealt with the justice K S Puttaswamy (Retd.) & vs Union of India and others case, which raised objections against Aadhar card scheme. As per the petitioners, the Aadhar enrollment requires the submission of demographic and bio-metric information and thus, it violates the individuals to right to privacy.

The Doklam Story: What's Next?

Another tension has risen along the India-China border. The armies of both nations have been involved in a border standoff in the Doklam area, near Sikkim. Though military standoffs between the two countries are endemic in nature, the recent development has raised concerns due to the location of Doklam at the India-China-Bhutan tri-junction.

I. Strategic Importance of Doklam

• China's presence in Doklam would bring China within striking distance of India's vulnerable Siliguri corridor.
• The corridor (also called the Chiken Neck) is the life-line to India's northeast.
• It connects India's mainland to the seven states of the north east region.

II. The Unfolding of the Story

• The Doklam plateau is located at the tip of the Chumbi valley, is claimed by Bhutan historically. However, this is now questioned by China.
• The current standoff stemmed from the differences between Bhutan and India on the one hand and China on the other over the exact location of the tri-junction between the three countries. 
• India puts that location at near Batang La, China puts the tri-junction at Mt. Gipmochi further south.
• Bhutan acknowledges that Tibetan/Chinese graziers had free access to the Doklam plateau and the Dorsa Nala area, but accepts tri-junction at Batang La.
• The current altercation started when it was reported that Chinese army entered the area on 17th June to build all weather road in the region, capable of sustaining heavy vehicles.
• The army of Bhutan attempted to dissuade the road construction, to no avail. Indian personnel present tried to dissuade the construction personnel since Doklam plateau is a tri-junction point.

III. Who is Right and Who is Wrong?

A. The Calcutta convention of 1890

• The agreement between India, Sikkim and China that seeks to settle the border areas among the parties.
• The real problem lies in the ambiguous nature of the landmarks used in the convention and varied interpretation it assumed over a period of time.

B. Simla Accord of 1914

• The legal basis for the McMohan Line lies in the accord between British India, China and Tibet which was signed in Simla. 
• The line generally followed the watershed between present day India and China. However, the line, especially in the southern part, did not follow the watershed, but was drawn south of the Thag La Ridge, which is located near Doklam.

C. India-Bhutan Friendship Treaty of 2007

• There is an overriding obligation on Bhutan to ensure no part of its territory is used for activities that are harmful to India security interests in the region. 
• By invoking this clause, Indian security forces objected to Chinese construction of a road in June 2017.

D. India-China Agreement of 2012

• This agreement states the tri-juncion boundary points between the two countries and any third party would be finalized with the concerned countries. This provision is applicable to the current standoff in Doklam.

IV. The Way Forward

• In wake of recurring nature of border skirmishes, a hotline should be established between India and China at the highest level to talk on pressing issue without any delay
• India's interest lie in arriving at the immediate demarcation of the Line of Actual Control (LAC) followed by early resolution of the territorial dispute. 
• These goals must be the prime agenda during the course of future meetings with China's political and military authorities.

One Belt, One Road, But Many Ways

India's recent growth strategies have been around: international partnerships, stable and condusive periphery multipolar Asia, an end to cross border terrorism and a sufficient role in global governance. But, each of these of these objectives relates in some way to India's relations with China. One Belt, One Road (OBOR) is one such example. India skipped the OBOR meeting due to its sovereignty concern over its $50 billion China-Pakistan Economic Corridor (CPEC) project. India's major concern is that the project passed through Pakistan-occupied Kashmir (PoK). 

The Belt and Road Initiative

• It is a development strategy proposed by Xi Jinping.
• Focus on connectivity and cooperation between countries primarily between China and the rest of Eurasia consisting of land based 'Silk Road Economic Belt' and ocean going 'Maritime Silk Road'.
• It is geographically structured along six corridors and the maritime Silk Road.

Highlights of the Summit

• The summit commenced on 14th May, showcased its plans to build a network of trade routes under One Belt, One Road initiative.
• As of now, 68 countries and international organisations have signed belt and road agreement with China. 
• China has made a point that the Belt and Road initiative is an open and inclusive platfom to explore and co-develop the China-led blueprint of reviving the Silk Road.
• India chose to boycott the summit. Six of India's neighbours: Pakistan, Sri Lanka, Nepal, Bangladesh, Myanmar and Afghanistan attended the summit and signed 20 infrastructure deals with China.

Outcomes of the Summit

• The two day OBOR summit identified and agreed on 270 deliverable goals of Belt and Road initiative.
• The signatories of the joint communique also pledged their support for promoting a rules-based, open and multilateral trading system with the World Trade Organisation at its core. 
• The Forum concluded with only promises of joint action by participating countries and did not result in establishment of an institutional framework for implementing a planned construction program.
• The 30 head of states promised to implement plans for cooperation in trade and infrastructure program across Asia, Europe and Africa.
• China has assured that it will not attempt to push its country's political ideologies and systems onto other countries.

India's Objections

• Main three concerns related to sovereignty, procedures and leadership.
• The China-Pakistan Economic Corridor (CPEC) passes through PoK and this is a strong objection for India as it violates India's territorial integrity.

The Positives for India

• India has snubbed organisers of China's OBOR for trying to encircle us with ports surveillance posts and naval bases. This is known as the string of pearls. China engages in hostile activity and India is safeguarding its interests by not aligning with OBOR. 
• Challenging Beijing on OBOR and its continued support to China-Pak economic corridor passing through PoK is in line with India safeguarding its sovereignty. 
• With ISIS migrating to Pakistan and Balochistan on fire, foreign investors, barring China, are wary of committing large funds to Pakistan.
• The project is not very transparent. It connects all countries to China, but no countries to each other beyond a certain point. 

The Negatives for India

• Economic growth will expand as a result for those countries which align with OBOR.
• India needs far more investment to create more jobs so that young working class individuals have the ability to be gainfully employed 
• Boycotting OBOR has also ensured that India's industrial production does not get the fillip it needs to encourage savings, improve connectivity and enhance the rudiments of the welfare state. 
• India will lose out on the infrastructure boost that would have come from joining OBOR. 
• Manufacturing capacity with other countries as a result of OBOR will improve their communication, foster P2P exchanges, G2G contacts, enhanced investment and greater trade and technology

Does it really affect India so much?

• Around $800 million of Chinese FDI came to India in just 17 months after April 2014, more than double of all Chinese FDI to India. 
• This is of a similar scale to estimates of Chinese FDI to CPEC in Pakistan and simply indicative of the immense factor push of excess Chinese capital. 
• If the capital is invested in India that meets the stated criteria, it would be mutually beneficial.
• In fact, drawing lines upon a map in a unilateral fashion, not just in India, but across Asia and Indian Ocean region, is a far more sinister matter.

Conclusion

• The Project would succeed only if it is pursued in a more transparent, status-quo oriented, market driven and responsible manner. 
• It must reflect environmental considerations, be based on transparent assessment of costs and involve the transfer of skill and techonology to ensure long term maintenence by local communities. 

Trends in the Innovative way of Marketing

What you say in advertising is more important than how you say it!

I. Introduction

• Fast-moving environments have presented significant challenges and opportunities to marketers and the organizations.
• Being able to adapt to consumer behavior while maintaining a strong customer focus is essential for great marketing.
• with all the companies doing the same thing, it takes something more to remain the most preferred choice for the consumers.
• this calls for a new way of delivering value to the consumers: The Innovative way of Marketing
• Let us have a look at some innovative ways in which we can make marketing more efficient by focusing on consumers’ internal influences.

II. Nature of Consumer Behavior

A. Perception: 

• This is a process that starts from consumer exposure and attention to marketing stimuli and ends with consumer interpretation.
• The latest impetus has been the use of perceptual relativity.
• It means allowing consumers to make their best decisions in the presence of a reference point with some useful information and biases. 

• For example: Brazilian coffee company Café Pelé teamed up with a local newspaper to show how quickly its fresh products arrive at the supermarket. The iconic newspaper is instantly recognizable, evoking a sense of familiarity in consumers while adding a good sense of humor. 
  

B. Learning

• The consumer behavior is largely a learned behavior.
• an innovation in practice has been to present stimuli and a message in close proximity so that the consumers learn whether the two stimuli go or do not go together. 

• For example, Duval Guillaume Antwerp came up with a concept to create awareness for World Water Day. 
• More than 500 of these Green Belgium stickers were stuck in washbasins in cinemas, pubs, restaurants, public toilets, universities and stations in nine Belgian cities and in Mexico City. 
• The text on the sticker says (translated): you have drinkable water in 1 second, while he has to walk 20 kilometers for it (12.4 miles).
• The campaign makes the viewers learn about the water-labor for children across the globe and then make a decision about their water consumption (a stimulus and a message combination)
  

C. Memory

• Remembering an ad for Pepsodent might interfere with our memory of Colgate. This may reduce memory for brand claims made in specific advertisement or lead to brand claim confusion.
• An innovation is to bring some amount of disruption (packaging, design product etc.) so as to associate your claim with something that stays in the mind of consumers. 

• For example, some toothpastes came up with an additional packaging that brings a better consumer familiarity or experience in addition to increasing consumer intention to purchase. 
  

D. Motivation

• Motivation is the reason for consumer behavior.
• Marketers have long used different ways to create need to drive consumer motivation to purchase.
• an innovative trend has been to generate more trial ability in the normal walks of life in order to generate more of the affective appeal. 

• An example is demonstrated here that shows the Big Pilot's Watch attached to the hanging straps in buses, so anybody can easily try and feel the watch, just on the way to their office.

E. Personality

• The personality of consumers guide and further direct their purchase behavior.
• Traditionally marketers had focused their attention towards building brand personality to suit their customer base. 
• The latest trend in this regard had been to use this consumer base to do the brand marketing. 

• After fusing social media, marketing, ad space and customer base, the 'Apple's Shot with iPhone 7' campaign left everything in the hands of the product's patrons. 

III. Conclusion

• Marketing has taken a new form: crisp, clever and engaging.
• Innovation does not only mean bringing something new but also that can offer more value to the consumers.
• Organizations have become very particular about how to put their message in a new and a different way during the consumers’ decision making journey.
• It is very common practice for successful marketer to wake up every morning and ask: What's the new today? How to get that new done?