GENERAL

8 Points You Should Keep In Mind To Get Hired And Stay Happy

All economic indicators of a country are meaningless if they are not doing one simple thing, i.e. generate employment and employment opportunity for the citizens of that country. After all, the very basic objective of any sovereign country is to create an opportunity for its citizens to fulfill their basic minimum requirement i.e. to live his/her life with dignity. No economic model till date has been able to achieve this and that’s the reason why a cry to have a Universal Basic Income has started emerging. But that’s not what I am here to discuss. I talked to Mr. Abhay Kumar of Team Recruiters (www.teamrecruiters.in), a seasoned HR Consultant on various subjects related to employment and the job scenario of the country. During the interaction I asked him for his take on developments on the economic front, his advice to prospective employees for interview as well as on personal conduct and ways to lead a happy and healthy life. Mr. Abhay Kumar has a career spanning more than two decades invested in sales and human resource, guiding thousands to not only get placed but live a contended life. His strategy of ‘talk’, ‘guide’, ‘prepare’, ‘place’ and ‘follow-up’ makes him unique and different from others. Without wasting much of time, let’s delve into his thoughtful and informative insights:

Mukul: For a prospective employee, what should be the takeaway from impact of policy changes Indian employment scenario? How much GST and Demonetization has have impact on employment scenario of the country?

Abhay Kumar: See, we need to look at the broader picture first on the global trends of last couple of years or a decade. The market generally has been very sluggish, be it US, Europe, China, Africa or Middle East. The Global economy has been under a lot of pressure and in this globalised and connected world, India can not remain insulated. Major Sectors have been under performing and this has challenged the growth prospect of one and all.

Another factor which was playing in the background locally was the performance of the banks which were under tremendous pressure due to NPA and toxic assets. Banks were under scrutiny and this led to a reduction in loan advancements as there was pressure to clean up the books of account.

The challenging global scenario has resulted in countries looking inwards to strengthen their internal economy. This has led to reduced out sourcing of projects and also the increased focus for employment of local resource instead of overseas workers.

IT sector has slowed because projects are not coming from abroad. Reality sector has sucked in loads of money from Banks, Corporate and Individuals. All this has drastically reduced liquidity in the market. And together perhaps this is why the Indian job market has been under a lot of pressure owing to both external and internal factors.

Now coming back to what you have specifically asked, any policy decision of the enormity of Demonetization or GST which challenges the existing system to its core is bound to have a huge impact on everything related, be it economic or social, because both were such huge decisions. Even if we look at either of the decisions in isolation one would conservatively give it 6 – 9 months of a cooling period before the market could bounce back. Coming back to back a year of low growth, challenges and sluggish economic numbers was easily a reality.

Demonetization was extremely challenging to the people in the first 45 days and could only settle down in the six month period. The cash crunch led to conservatism in the market where consumption reduced drastically as people started holding on to the currency and postponing expenses. The over burdened Banks were working with their backs to the wall to ease up the cash issue and the focus from liquidity in the market and businesses taking a back seat.

What added to the problem was the implementation of GST, which brought in a new tax regime. The industry / people lacked in understanding of the Tax System, its rules, implications and a new system both in skill and process had to be put in place. Everything which existed earlier had to be changed / modified. New accounting system, new skills, software upgradation, registrations etc. became a mandatory requirement with a deadline in place. Hence, the back to back implementation of these two major economic policies has further slowed down the performance in the short term.

Look, it is a well known fact that there were very few additions in the number of tax payers in general and the numbers of businesses out of reach of the Tax Dept. was huge. This problem was addressed to a large extent by Demonetization and GST by forcing people to get into the banking system which was mapped with PAN and Aadhaar. So, the two decisions did slow down the economy to some extent in the short term but were much needed to strengthen it in the long run. These decisions had to be taken. We can debate about the timing but one can never be fully prepared. In a country like ours which is full of complexities a gradual implementation would not have been possible and the results very debatable.

There is a thought process that believes India was able to minimise the pains of US subprime crisis because of its parallel cash economy. But at the same time, things cannot remain the same and the way forward required these policy decisions.

But I am very optimistic about the future as the steps which have been taken would start yielding the positive results very soon. This quarter will see a lot of activity on the job front with the green shoots getting visible this New Year. Government is also spending big time on infrastructure like road and electricity which would kick-start the economy and generate employment. Everyone needs to be patient and positive.

Mukul: What is the short term and medium term employment scenario of the country?

Abhay Kumar: As we discussed that market has been under tremendous pressure since 2008, so, there were various challenges on employment generation front. But as far as future is concerned, impact of policy changes have firmed up and taken shape. Market players are also now sure that there won’t be any roll back from the government on these decisions and things are here to stay. So, they are back on their drawing board, coming out of their ‘hold-back’ strategy… re-strategizing their plans and actions. 

As mentioned earlier the last quarter has been favorable and so will future as predicted by different organizations of importance. Normally we see that the last quarter of a financial year is generally strong and bullish. In the answer to your first question, I have already said that there is a major push for infrastructure; rural electrification and roads etc. The big Infra push would drive and be the engine for growth and more jobs will be created bringing relief to the employment scenario in the medium and long run.

Our discussion so far has been revolving around the changes and challenges of the last ten years. I think we have seen almost the end of it and we will see organisations re-inventing themselves and re-drawing their business strategy. The ability to adapt and re-strategise will drive the success stories in future. The changed scenario will require employees too to re-skill themselves to remain employable. So on one side re-skilling will be the order of the day on the other side the business of re-skilling will also be a big opportunity.

Mukul: What are the top five points which you would like a candidate to have and keep in mind to leave positive impact and get hired?

Abhay Kumar: First and the most important point for a prospective employee is ‘Know your profile’. People actually spend least amount of time on their CV. They do not read it and very often they are not conversant because professional writer/external help is taken to prepare/write the CV. So, it is very important to read and understand one’s CV, the words written in it, the projection you are trying to make and the goal you want to achieve.

Second is ‘person should be prepared very well’. Before going for an interview, the candidate must know the company very well; the kind of business they are into, product or services they are providing, who are the competitors etc. This would prepare him/her for the questions which would be posed in the interview.

Third is ‘have a positive outlook’. Many a times it so happens that the interviewer cross checks you on various aspects of your personality by throwing challenges or situations; whether you are ready to work hard, are you ready to experiment, whether you are ready to take new challenges etc. Any kind of laidback or lethargic response would put you down in the eyes of a prospective employer. So your words and body language must communicate positive frame of mind and positive approach.

Fourth is ‘long term picture’. It is imperative that people have a very well defined goal or a long term picture in mind. Often people have a very idealistic picture of their career. They want to be at the top in no time. They don’t realize or often forget that there are many steps to a stair between the first step and top of the ladder and every step is a process in itself. And he/she has to go through every process to reach the top.

Fifth is ‘planned approach and open mind for salary negotiation’. Throwing any random number can’t get you hired. Before salary negotiation, it is very important to be realistic and be prepared with your expectation. You should have all the details of income which you are drawing from current employer. You should be aware of the market trend etc. You also need to keep in mind that you need to deliver in multiple times of what you are asking from your prospective employer.

Mukul: What are the ‘words’ you would suggest the candidates to not to have in their resume?

Abhay Kumar: I won’t suggest anything about the words as the context is very important. I would suggest on positive mindset while writing the resume or during an interview. Your resume should represent you, the direction of your career and the path you want to take. You should be as factual as possible and should resist the use of superfluous words and numbers. While mentioning achievements one should try to give a true picture and not to go overboard with the numbers. Similarly when writing about responsibilities one should try to be specific on the responsibility you actually have. If there are additional responsibilities which have been assigned to you do mention them separately and not mix up the two.

 Mukul: Artificial Intelligence and Robotics are buzz words these days? How much substance do you think these words holds for the future? Which are the industries or sectors will be most affected by them? 

Abhay Kumar: Look, every change in technology brings a kind of upheaval and change in the market. That’s their nature. Couple of years before Y2K, every company worth its salt jumped into ERP business, with basic objective to cater to their own demand and to explore the outside market. So, it created a requirement for new skills and opened the doors to new avenues for various companies. Similarly, Artificial Intelligence and Robotics will have its own impact. It is a long drawn process, so effects will also be visible accordingly. Old skills be discarded and new skills will come in demand. New jobs will replace old jobs; new skills will replace old skills. And as I said earlier, re-skilling will be very crucial factor for survival and success.

Mukul: Few years back, I had read a book ‘Startup of You’ written by Reid Hoffman, Founder of LinkedIn. In that book, he has written that the time of stable jobs are over and every Individual is required to be in startup mode all the time. Most important reason he had given for suggesting was the pace of technological advancement. He was of the opinion that high speed of technological advancement won’t let the world to stabilize, so everyone will be required to be fighting fit all the time.  Since 2008, no big Greenfield project has been announced by any big company, whether they are Indian or multinational, if we minus Reliance Jio. During this period, Startups and Unicorns filled up the space of employment provider. But they came with their own characteristics and that is ‘uncertainty’. Do you think that this is going to be the nature of jobs being provided in future or big companies will be back and bring stability in the nature of jobs?   

Abhay Kumar: Yes, technological changes are happening at a very vast pace, so ‘instability’ in the market will be the hallmark. When market remains unstable, then jobs obviously will be unstable. But I would like to use the word ‘dynamic’ rather than ‘unstable’. Again I will bring the point of re-skilling, which will be a continuous process for everyone, if they want to last long.

Mukul: In this age of startups, where employees are getting hired and fired at will, sometime getting duped and dumped, what would be your suggestions to the prospective employees to stay afloat financially and mentally? 

Abhay Kumar: If you remember in earlier day’s people used to live their life in simplicity. After fulfilling their major commitments in life, they used to venture towards luxuries of life. Children’s education, daughter’s marriage, medical needs etc. used to take precedence over other types of expenditure. Construction of house and purchase of car were to be done nearer the age of retirement. There was a strong logic behind it. They used to build their strength first before getting on with luxuries of life. Today’s generation hits the ground running, getting into these expenditures at the beginning of their career. When they get smallest of jolt in their career, they are already saddled with EMIs of house, cars, credit cards etc.  

I am not suggesting that today’s generation should imitate older generation’s lifestyle, but they should focus on building their strength first. As we discussed early in our conversation, speed of technology advancement is very high and it will become even higher in coming days. So, job market, which is dynamic today, will become very dynamic in coming days. So, they should take risk only when they can, otherwise they should avoid it. It will save them from financial and mental stress.

Mukul: I believe that job satisfaction and finding the purpose of life are overrated terms used to manipulate employees. How someone will know without doing something that it is something he/she wanted to do and want to do all his/her life? In my opinion, a person should be like water and should find his/her way in everything and everywhere. He / She should take up anything which comes his/her way. God knows, what will become his passion and start giving job satisfaction. Moreover, focus should be on ‘money and family satisfaction’, because first one is what we take to the bank and second one is ultimately what we aspire to achieve?

Abhay Kumar: Yes, I would say ultimately it is the money that we take to the bank which drives the individual. There is a lot of talk on job satisfaction, living ones dream, dream job but I have a different take on it. Our education system is such that the number one scores in an examination defines your career choice. It is only now that children have started experimenting with choices they like. Marks tell you were you are likely to study and the specialization you are likely to do. While applying for jobs after college, the Campus Recruitment processes defines the kind of company and profile you get into. The only icing would be the CTC that you bag. This continues during the early employment period when money is the driving force for most youngsters. If it comes with a profile you like then that is the icing on the cake.

Another aspect that does matter in today’s time is “Leisure”. With a stressed work environment Leisure is what de-stresses you. The “Me Time” helps you unwind and recharges your battery for better performance. Even if the workplace is stressful, your happiness at home will help you tide over the challenges.

This article is written by Mr. Abhay Kumar, Head-Operations & Business Development, Team Recruiters, A Delhi Based HR Consultancy company.

You may also like to read Dos and Donts of Getting Hired for the Best Job

Negotiating the “Right Cost” for the right resource is as crucial to the employer as is the “Right Salary” for the prospective employee. Employers tend to prefer those candidates who already earn a good income. While these candidates cost more to employ, their higher incoming salaries are assumed to reflect greater competence, initiative and achievement. Hence, salary negotiation is crucial for a win – win situation for both employer / employee. 

Zero down on an expectation

Never underestimate the importance of negotiating salary in an interview. It's in your interest to pursue income increases at every legitimate opportunity.

It starts before going for the interview. A crucial part of your research is the salary range for the position you are applying for, given your background and experience. Have a salary range in mind and be prepared to discuss these figures once salary negotiation has come up.

Know your bottom line

Be clear on what is your minimum salary expectation. Decide before you go in for the interview, what salary you want to earn, what you need to live on, and what you will be willing to settle for.

Never discuss salary till it is raised by the prospective employer

If you do, you could price yourself out of a job before the employer is convinced they need you. If pressed by the interviewers, tell them you're flexible and would be happy to discuss salary when you learn more about the job.

Market yourself

It’s about selling your skills and ability at the best possible rate. Emphasize why you suit the requirement. Document your skills and accomplishments, and be prepared to talk about them.

When questioned about desired salary

Avoid a specific salary and put forward a pay range instead or discuss in terms of an expected growth in percentage terms on your current drawings.

Don't forget the value of benefits and perks when negotiating a salary

Sometimes the salary offered may seem low, low enough for you to turn down the job. But the benefits and perks can add up to your basic salary. Some benefits are fixed, but others are negotiable such as stock options, bonuses, employee discounts, training, holiday time and sick leave. Quantify your current benefits for a better understanding of what is being offered.

Make the salary discussion a friendly experience

Be amicable when discussing salary. You should make the employer feel that you are on the same side and working together to find a package that would satisfy everyone's needs.

Don't say yes to an offer right away

Be enthusiastic and appreciative when you get the job offer, but ask for at least 24 hours to respond. This gives you time to get over your initial joy at being selected. If you feel the salary is insufficient, express your concern to the employer when asking for time to consider the offer. You'll find out right away whether the salary quoted is fixed or is flexible.

Declining an offer

If you decide not to accept the offer, make sure you leave on the best of terms. Treat every offer seriously and graciously. You can never tell who you may be doing business with in the future so don't burn any bridges. Decline the offer giving concrete reasons for doing so.

We are more than seven and a half billion people on this planet earth who use hundreds of different electronic devices daily. These actions result in creation of infinite permutation and combination of actions, reactions, results and probability of results. How can an individual brain with definite space cope with all of it???

By forming patterns, deciding priorities and repetition…….

The above mentioned three actions create blocks in the mind to process information in a systematic manner and make life easy, but it happens only when life is easy!! As there is an infinite possibility of unexpected challenges and outcomes; pattern and blocks most of the time creates road blocks rather than working as anything else.

This brings us to “creative thinking” …….the right brain thinking…..out of the box thinking…..but not many people know what it is and how to make it work for themselves in order to find solutions to unexpected challenges…..

Gaurav Bahl; the name brings a huge smile to my face. He can write poetry, he can sing, he can make you laugh at the drop of a hat……..No no….He is not an actor, poet or singer….. He is a Creative Leader and Founder of Quirkee, a Gurgaon based Integrated Marcom Agency, who has worked with most of the top advertising agencies of the country. Percept, Leo Burnett, Mullen Lowe Worldwide, Hammer Communications, K Factor and Bounce Design to name a few showcase the skills of the man for more than 14 years. While we were chasing our corporate dreams, he left his well paying job, took a sabbatical to detox his system and then re-joined with a very small advertising agency after sorting out his priorities in life. The money which he was making from this job was not good enough to cover even his travel expenses. But, he sorted out and went on to do what he enjoyed doing. A very strong communicator and a patient listener, who has handled team and situations and has delivered best of results because of just one thing…..He is supremely creative….he gets into the mind of his clients to know what they want and deliver exactly the same.

That’s why I chose to talk about creativity with him. Let’s read what he has to say:

Review Board: What role creative communication plays in building a brand?

Gaurav Bahl: You have asked me what role creative communication plays in building a brand. Answer to your question rests in the fact that if you look around and see at today’s brand communication scenario, every person is flooded with too much of ‘Look at me’ objects everywhere. He goes on road and finds hoardings and banners at every nook and corner, he opens the newspaper and finds advertisement on probably every page, he opens a website or his social media account and finds advertisements flowing down from every corner. A person is having too much of it…. Literally.

Review Board: To substantiate your fact, I was reading a report claiming to be based on MIT Research; we humans are creating 2.5 Quintilian bytes of data every day on internet itself. So, completely agree with what you are saying….

Gaurav Bahl: True…..now just imagine how tough it has become for Brand Managers to cut the clutter and make a way for their communication. Here comes the Creative Communication in picture to play its crucial role.

For me, simplicity of the idea and its communication is of paramount importance. That’s what most of the iconic brands have been doing and that’s what has made their communication stick with their target audience. The more you make your audience stretch the limits of their brain, the more they will avoid your brand communication.

Most of the brand communication fails because they try to tell a lot in 30 seconds. Please understand that this time period is too short to tell your entire story. So, one should tell exactly what is needed to be told effectively during that time span. The approach of ‘make them understand’ or ‘confuse them’ strategy rarely works. The main objective of any brand communication is to sell a product or service. Someone who is paying for that product or service may get fooled once but not always. Moreover, in the case of confusion, he may choose not to buy as well.

If you remember the Vodafone advertisement of a small boy being followed by a cute pug……what message it had???? “Wherever you go….our network follows”. What is expected from a telecom operator???...... Network……and it was saying just that…..and in cutest way!!!

If you see a failed or bad brand communication, please understand that other than the creative lead, everyone else has contributed in it and creative lead has failed to take his/her idea forward. Everyone thinks he/she is creative and takes pride in creating something and wants it to be appreciated. A hoarding, a banner, a poster or a TV ad or a radio jingle all works....... I am not saying it is completely wrong to have a creative streak. Sometimes a creative lead gets different perspective at the discussion table itself. But, all of them would agree to this one point……….All of the ideas one puts forward on the discussion table can’t go in one single communication…..and if it is made to go, then it will only create confusion.

Review Board: Creativity is one of the key pillars of success. How can one become and remain creative in communication in daily personal and professional life?

Gaurav Bahl: We have already discussed that every person in this world is flooded with too much of information in the form of news, advertisements, inputs for his own work requirements at personal and professional front and many things more. All these information further become the basis of many information and ideas in their mind, which keeps looking for an outlet. Everyone wants to talk and take his ideas to the top, but that doesn’t happen all the time with everyone. Something which happens very rarely is called either ‘luck’ in most prevalent term or ‘fluke’ in crude term.

To take any idea to the top one has to remain patient and committed towards it. Now, how will this happen if someone is always willing to talk and let everything out.

So, what works for me and I think it should work for others as well; be observant of what others are doing or talking about, be patient with other’s ideas, be receptive to other’s opinion and master the art of listening. All of it will give you lots of clues, experiences and answers to your problems and challenges. All of it will automatically help you in prioritizing your work and improve your focus on the solution of problems or challenges you would be looking for.

Apart from that, though I am not much into it, following extra-curricular activities like outdoor sports, or music or travelling etc. can help your mind to relax and avoid overdose of information processing. I listen to music, watch movies and play; some people find cooking therapeutic…..and of course, Yoga is an all time favorite of many……..Your brain consumes more energy than any other part of your body and as your body’s energy saps, mind starts slowing down, it starts jumping to conclusions because it wants to work less and it starts priming. So, it is very important to look after your brain….

Fundamentals of creativity can be summed up under the following points:
-Observe people and situations around you.
-Listen to what people around you say
-Be patient; don’t jump to conclusion and become an answering machine
-Be receptive to other’s ideas and opinions and respect them.
-Prioritize your work
-Focus on what you are looking for
-Relax your mind; do something which can help you to enjoy life and take your focus away from finding solutions and being creative all the time.

Review Board: What are the other factors one should keep in mind while creating his/her own personal brand?

Gaurav Bahl: Your personal brand can’t be built in air. There has to be some substance in it. So, for a person who has some experience in his industry, his achievements, his educational qualifications, his soft skills, his accreditations, his credentials in the eyes of his business associates like colleagues, peers, seniors, suppliers etc. will form the founding stones of his personal brand. There has to be some meat in the plate to eat, otherwise your guests will remain hungry.

Now if you bring the answers of previous two questions and merge it, then you will have the complete picture. Put all your substance together which I just mentioned. Listen to people around you, observe what they are doing, be patient and respectful to their opinion, focus on their need and then create simple and neat communication for them. You will have to see that communication has to be consistent without being overbearing. Building brand is not a one time effort, so you will have to be consistent with your communication and at the same time you will have to see the product remains same, what is being promised.

The formula is applicable to newcomers as well….in fact for everyone.

Review Board: Thanks a lot Gaurav for taking your precious time out and talking to us.

Gaurav Bahl: Pleasure is all mine.

This article is written by Mr. Abhay Kumar, Head-Operations and Business Development, Team Recruiters, A Delhi based HR Consultancy company. This article first appeared on www.teammentors.in.
 
Interview-Applying and Preparation
INTERVIEW - APPLYING & PREPARATION

A call for an Interview from an organisation can mean that you are the right candidate or certain aspects reflected in your profile suit the current requirement of the organisation. In fact, it is estimated that 80% - 90% of the candidate’s profiles are rejected at the application stage. This happens for the simple reason that the Candidates don’t screen the Jobs they are applying for. It is imperative and more so at Middle or Senior Management positions to study the Position Advertised or forwarded through a Consultant thoroughly. The Job Description, Experience parameters, Location, Qualification & skill sets required or desirous by the organisation for the position are studied and matched by one’s own profile.

Applying:

• Screen the position Advertised or forwarded by a Consultant.
• Gather all relevant information related to the Position – Designation, Reporting Structure, Job Profile, Experience, Qualification, Salary fitment range, Location, Joining Time etc.
• Study the Company website, the Product & Services, clients, performance and any other relevant information related to the organisation.
• Evaluate all information available. Apply only if the position fits your profile, Career prospects and you are serious about the change.
• DON’T APPLY: If you are not contemplating a change, the position doesn’t fit into your scheme of things or just applying for the sake of testing the market.

Corporates have interviewers who are Human Resource professionals along with the Technical professional, both of whom are trained and experienced interviewers, so expect the interview to be very structured to obtain the maximum from you. In smaller firms you are more likely to be interviewed by a Partner who may not be a trained interviewer. It can be a good idea to try to steer the conversation towards the topics you have particular strengths in, highlighting your good points.

Depending on the kind of Interviewer, the process can be categorized into broadly 4 segments.

• Where you are asked questions around your CV, both generally and technically.
• Where you will be asked to give examples of how you meet their criteria e.g., of teamwork, negotiating, leadership skills etc.
• Where you might be asked some bizarre or random questions to see if you can think on the spot and how creative/logical you are.
• Where your views will be challenged or ridiculed and you might be goaded into an argument. If this happens to you do not lose your cool, it is to test how you react under extreme pressure and to see if you can hold your own.

Preparation:

• KNOW YOUR CV. Read and reread your CV.
• One should be ready to talk and justify whatever one has mentioned on the CV, like, the job changes, choice of organisation etc.
• Have a structured CV. Prioritise & focus on things you want to talk about, areas you want to highlight, your USP’s. Present your CV in the format which focuses on your areas of strength so that you initiate discussions on your thrust area.
• Anticipate and prepare a set of questions likely to be asked. Prepare answers and REHEARSE.
• Go through the Company website thoroughly. Read Vacancy details, skill sets required, Product & Services etc.
• Be decently dressed, arrive on time, have a positive Body language & carry a set of your papers and any other document as specified by the Company.
• Be HONEST & ready to sell one-self. Don’t be afraid to ask for clarifications or any other relevant information related to the company, position or job. Thank him / her for his / her time at the end.

Some sample Questions:

• Tell us about yourself?
• Why did you choose your degree and what have you gained from it? What has been your most important achievement in life so far? Why?
• What are your strengths and weaknesses?
• Why have you applied for this job / what do you have to offer us?
• What are the current issues in this sector of work?
• What experience do you have of working in a team and what role did you play in that team?
• Describe a project you have successfully completed. How would your friends describe you?
• Describe a situation you have found difficult. How did you overcome it?
• Any questions would you like to ask us?

According to Department of Statistics and Programme Implementation, Government of India, Private Final expenditure of India on Food and non-alcoholic drinks was Rs, 18,21,510 Crore in 2014-15. If we factor in the population growth and rate of inflation, we get the estimated expenditure in 2017-18. If we add to this Rs.18,000 Crore spent on alcoholic drinks, tobacco and narcotics, which finds its origin in Agri sector, then this expenditure will be close to Rs. 20 Lakh Crore. So, it is safe to say that the total Indian market size of agricultural produce is around Rs. 20 Lakh Crore. If we add the size of agriculture input, then it will be even bigger. 

A market of this size is bound to have complexities and that too in a country as diverse and complex as India, where a large section of the population is dependent on it for employment. There are many questions regarding agriculture in India and each one can have different perspective. We also had many questions for Mr. Amit Mishra, Founder- Director of Agrius India Private Limited and Founder of Ambrocia Seeds Producer Company Limited. Mr. Mishra is an Agriculture Graduate from Jawahar Lal Nehru Krishi Vishwavidyalaya, Jabalpur and PGDM-Marketing from VAMNICOM. Prior to taking up the challenging route of entrepreneurship, he has worked with GCMMF, Perfetti Van Melle, Pepsico India-Tropicana, Commodity Futures Exchange MCX and News Distribution Company Thomson Reuters. So let’s start: 

Review Board: You are an Agriculture graduate and a M.B.A and have worked with some of India’s top companies as well as a Commodity Exchange and news Distribution Company. You started your entrepreneurial journey two years back and are pretty well settled. What difference do you find in the business process of both the sectors? What can Agricultural Input Marketing learn from FMCG Food marketing of the big players?

Amit Mishra: In my opinion, the first difference is in the product itself. If we look at the flow of taking a product to the market, it looks like         Product > Targeted consumer> Marketing & Communication> Distribution network 

….the agricultural items are distributor or channel driven product while FMCG are consumer driven products. Consumer demands the brand or the kind of product he/she wants if it is FMCG product but distributor normally takes the demand in the case of agriculture product.

Review Board: Is it so? Tell us more? 

Amit Mishra: Yes, the education level of users and involved technical details of the agricultural product make it more of a channel driven product. It is very difficult for most of the farmers to understand the product detail, so, they depend on the advice of distributors. Whereas consumers are well aware of the FMCG products they want to buy. Marketing communication of FMCG products have been done so since the very beginning. 

For FMCG products, people are the primary as well as ultimate consumers as against agriculture inputs whose primary consumers are trees and plants. FMCG products, whether food or non-food, are procured on only two premises: need and aspiration. A product has either to fulfill its consumer’s need or provide aspirational value. There is not much innovation and experimentation in these products, because they are directly consumed and there are many checks and balances which need to be adhered to. Innovations are mostly focused to help make the product natural and safe for human consumption. 

As against that, Agricultural input procurement goes through four stages…  

First types of buyers are innovators; they are always on the lookout for new technology, new variety of seeds etc. to boost their produce. They enthusiastically support and participate in any kind of technological advancements. Around 0.5% of farmers in India will fall into the category. Second types of buyers are early adopters. These buyers are at the footsteps of innovators and adopt any new technology or variety immediately after confirmation of its success. They normally adopts a new technology within 1 to 3 years. They constitute roughly 4-5% of total farmers in India. Third types of buyers are late adopters. These buyers are good 3-5 years behind the innovators and early adopters. So, to them the technology is no more a new technology as it is already there for long. They constitute 50 to 55% of total farming population of India. Fourth and the last type of buyers are laggards. These buyers look for anything which has been around for long or may be there for a good 5-10 years. Surprisingly a good 40-45% of farming population of our country falls into this category. So, you can very well imagine how difficult it is for a company producing agricultural input to directly reach out to the end consumers, i.e., buyers or design a common marketing communication for them. That’s the reason why they target distribution channels and work closely with their channel partners to not only sell their products but disseminate product information. 

Though marketing efforts may be same for both the categories, but marketing communication channels and their target groups are different. Dissemination of information of agricultural input is like medicine. You don’t start consuming a medicine just because you have seen its advertisement; you get it prescribed by a Doctor. Similarly, on the basis soil type, crop etc., Agrochemicals are suggested by Distributors, backed by information provided by Agricultural Scientists as well as by the government. If anything goes wrong, then all the effort of the last six months will go waste and so will the expected income. This however is not the case with FMCG products. You see an advertisement of a chocolate; you go and buy it from a nearby store. Since there are checks and balances in place for making the product safe for human consumption, you may not like the chocolate or find it not as you assumed it to be after seeing the advertisement. But in the case of an Agricultural Input, a farmer runs a lot of risk on his investment and his future income depends on it too. That’s why he prefers to be sure before buying it and the retailer or distributor from whom he buys, works as an expert, guide and an assurance. 

One more factor that plays an important role in his buying decision is “personal acquaintance”. Since a number of farmers fall in the category of laggards and late adopters, personal acquaintance with the retailer or distributor works as a guarantee for them.

So, all of this boils down to two things: 1) Level of education; and 2) Personal touch

….. And these two things have been mastered by FMCG companies and the Agriculture Input companies can learn from them. Though it is very difficult and time consuming, but a step a day can move mountains.

What we have started doing with our business despite the fact that our resources are limited is that we have started educating our end consumers about different aspects of farming along with the products we are selling. It is addressing both the above mentioned challenges of agricultural input business. However, we know that this is a tedious task and requires lots of resources and effort. But we as a team believe that if we focus on education and training, then the late adopters can become early adopters and laggards can become late adopters thereby increasing our sales and boosting our productivity with our research work. We are planning to adopt a village pretty soon to experiment with our idea and make farmers of that village educated and aware about every aspect of farming and its business. In my opinion if business houses along with entrepreneurs like us backed by government take up this challenge, then a decade is enough to change everything, especially in a time when smartphone penetration is very high, data price is at its cheapest in the world and both of them put together is rapidly changing the human behavior. 

Review Board: So far, we have talked about Agriculture Input category vis-à-vis FMCG products. Could you please expand this discussion to include Final Produce Segment like rice, pulses, wheat as well?

Amit Mishra: Final Produce segment also carries a different behavior pattern from FMCG products. Other than Atta (Grinded wheat) and grinded spices known as C(Chili) T(Turmeric) C (Coriander), mix grinded spices known as ATC spices, other produces have not seen much success as far as branding is concerned. I have travelled extensively in urban as well as rural areas and have seen the change in pattern of packed Atta consumption. Demand of packed Atta is growing in rural areas as well; even in normal packing. But same is not reflected in pulses or rice, because packing material only adds price and not the value. Basmati rice is considered a luxury and is not consumed daily. People are consuming more of Pusa Basmati rice rather than original basmati rice. Organic foods are also in the luxury product segment, because health benefits, as promised depends on other aspects of lifestyle like complete food habit, nutrition intake, exercise routine etc. So, paying double the price than what is to be paid for normal agriculture produce is something Indian customers have not been able to make peace with.

Brand helps you to command premium, but how much and for what? You will have to show value…And in the case of commodities, it is purely transactional value. If you are changing the shape and form of the produce, then branding seems possible as you can see in the case of packed Atta or grinded mix spices and consumers are willing to pay little bit extra……. But if you are packing the whole produce, then there is no value addition.. 

So, the message is loud and clear; as the life of Indians are rapidly moving towards urban centers and rural life is following the urban life, agriculture produce marketing needs to change; it needs to change the shape of produce. If we go for processing and bringing in innovation in that, then not only will it increase the life and value of the product, but will give more money in the pocket of the farmers.

Review Board: I always felt that the biggest challenge Indian agriculture sector is facing is integration of produce and products with the market. While consumers are paying but farmers are not getting the right price. What should be done to address this problem? 

Amit Mishra: This is a very difficult question and the answer is very unpleasant for many. On the effort part, there are many steps which have been taken by the government. Many farmer-producer companies were formed in places like Andhra Pradesh, Karnataka etc., Rytu Bazaars were opened to facilitate farmers to sell their produce directly to the consumers and their are thousands of cooperative marketing societies……Despite all of this, problems are still there and their has been no change in the last seventy years. Some of it has done well, but overall if we look at the collective magnitude of challenges, they remain the same as they were after independence. Now why it has remained same…….because individual interest has always taken precedence over collective interest. If you look at the structure of these cooperative marketing societies or farmer producer companies………….you will find that these are normally led by big farmers or local politicians, who serve their interest first and member’s interest later or may be never!! 

It seems to me that the government doesn’t look interested in addressing this issue because wherever there is a poor person, there is politics involved. If things becomes better, then what will you change? If despite so many programmes, projects and billions of dollars spent on agriculture, why post harvest losses are still huge? Why are farmers still battling for loan waiver, better seeds and better price? Along with asking for these issues to be addressed, farmers also need to ask questions to politicians that if these issues have been vital in every budget and election, then why there is no improvement? Why, even after seventy years of independence, farmers are committing suicide? Self sufficiency in crucial items like pulses and edible oils are still missing by a huge margin????

There are many such questions….. Am I disillusioned??? May be yes….may be no……but the way opportunities are getting wasted for personal and political gains, problems will take such a huge proportion that solutions will be impossible!! 

But you have asked me for solutions….. And they are: 1) Educating farmers and innovation in food processing needs to be very urgently done. What is dragging farmers behind is their knowledge of different aspects of farming which includes food processing and marketing. 2)While there are rapid advances in technology supporting farming, but its real users are somewhat still disconnected with that. We as entrepreneurs will have to take lead and make farmers understand the use of technology and its integration in every aspect of farming business. 3) Hold the policy makers and politicians, who have spent the nation’s wealth in the name farmers and agriculture, accountable. They must answer us about the money spent and give us the productivity report. 4) Forget personal interest for some time and work for collective interest. 5) Along with seeking money, seek answers regularly from policy makers and policy implementers.  

These are the main solutions to problems in agriculture sector in India. On paper, there is nothing which has not been tried……but there is no account of what has been achieved vis-à-vis money spent on it. 

Review Board: Can technology help in solving the problem of integration of agricultural produce to its market? And what role entrepreneurs, private business houses and farmers themselves can play in it?

Amit Mishra: This question is connected to your previous question, so, a large part of it is already covered. Technology as required to assist the agriculture production and agriculture produce marketing is already available……And innovator entrepreneurs are playing their role…..But the size of complexity and the challenges are so huge and efforts required are of such gigantic magnitude that solo efforts of entrepreneurs will be lost. Government will have to stop thinking of it as a milch cow and work towards solving all the challenges once and for all. Otherwise solutions will be there, but in bits and pieces, as provided by entrepreneurs at a local level. 

Review Board: True. Neither have we done our bit nor have asked the right questions to our policy makers and policy implementers. Thanks a lot for taking your precious time out and talking to us….

Technically, ‘brand’ is a name, image, sign or symbol of any product or services, but actually it is a story of promise and commitment about quality, relevance and value told by its owner to its user. And as application of this theory is good for product or services, it is good for person as well. In the country like India, where the act of ablution and sacrifice are given paramount importance in human behavior, talking about oneself is considered highly inappropriate. Instead, people prefer others to talk about them and that also….always good.

But time has changed….and has changed drastically and exponentially. We are more than 1.3 billion people in this country, who are fighting for their share in the available limited resource. Our education system, our capability evaluation system and our intent to find the right fitment between requirement and capability demands serious attention. That’s why change in certain aspect of human behavior is also needed. Unless and until we get up, raise our hands and shout out that we have the capability to do certain kind of job, someone else with limited or no knowledge of the job on the offer will get up and claim it, doing complete injustice not only to us but the job also.

Dotcom Ascendancy …..

Though the period of late nineties to year 2000 is called the period of first dotcom bubble, because valuation of companies working in digital space were skyrocketing, but I call it the period of dotcom ascendancy. Internet changed everything after that; they way live, the way think, they way we eat, the way travel, the way we shop, the way we talk…and even the way we choose our life partners……just everything.

‘Skynet’ might have missed its target of taking over the planet and raging the war against humans by many decades and might not wage the actual war at all, but it has won the humans already without shedding a single drop of blood.

Avalanche of choices and standing at information super highway!!!

Internet has made these limited resources available through multiple channels at the doorstep of who can afford it and it has also made many things very affordable which was earlier available to exclusive group of people. It has put everyone on the superhighway of abundance of choices. Our way of seeking everything has changed…..so has changed the tool of seeking anything. Everything has come on internet now….

It is crowded place: Everyone was writing; now they have started talking….

We are uploading quintillion bytes of text, millions of photos and videos every day and millions of query every hour on internet. Earlier we used to write; now we are talking to our machine. ‘Cortana’ of Microsoft, ‘Siri’ of Apple with ‘Echo’ of ‘Amazon’ is giving tough competition to market leader ‘Google’, which is in the market with ‘Google Assistant’ along with its famous search.

But is our mind capable enough of handling all of it???

But, is our mind capable enough to process this much of information overload and multiplicity of choices? Our mind responds according to different hormonal secretions, many illusions and many fallacies created over a period of time through family and social environment, education and experience. Though it is capable of moving the mountains, but it is never willing to do so…..It doesn’t want to address any complicated scenario unless forced to.

Are our clients listening???

Then next question comes; are our buyers listening what we are saying, be it about product, services or the person? May be not….may be yes….even if they are listening, they are not understanding it…..for many reasons…..

Reasons….

We already talked about the amount of information being uploaded on the internet in the form of text, images, audio and video. It is just too much for the human mind…..moreover there are too many like one…….because the system we have built puts everyone and everything about everyone into manageable number of categories and then generalizes everyone falling into one particular category.

Storytelling is an art, which very few people know. While writing resume, creating profile on social media networks, uploading photos on Instagram or Facebook and uploading videos on YouTube and Facebook, people do tell their story, but in very scattered manner, making it look like a puzzle which no one is interested in solving.

So…..

Creating a firm but fluid story is important; with all the beautiful imageries, sound and videos. It has to be compact…..it has to be unique…it has to stand out, so that it sticks well with the target audience and that also on continuous and sustainable basis.

Finding out the the right audience and listening to what they are talking about and what they are looking for is equally important…..Otherwise even the best of story, best of beauty will hold no meaning.

Then comes the storytelling……… the introduction, the drama, the connect, the relevance, the pause, the ending…..everything has to be perfect…. ……..

And if is not perfect, then correction and re-telling needs to be done with utmost agility.

It is beneficial

Your life journey adds lots of monetary premium to your profile. If you fits in to someone’s focusing illusion and halo effect then it will create optimism and distinction bias towards you and change utility theory about you positively…… Or in other words, you will become their prime focus, they will create an optimistic bias towards you in their mind and will start seeing your more meaningful utility as compared to others.

But….professionals needs to be hired

It takes good amount of effort; everyone can’t do it of their own. They will be required to hire professionals, because it needs lots of effort in creating a story, finding the right kind of audience, listening to what they are talking, telling them the story, keeping the story engaging which remains connected to their mind and heart, recreating and re-telling the story if mood, taste, time, micro and macro environment changes.

It is always better hire a professional jockey if you are putting your horse to participate in a derby.

One of the most important factors for landing a job is your Resume. It is often the first impression that a potential employer has of you. In fact, it is estimated that 80% - 90% of the candidate’s profiles are rejected at the application stage. Therefore your resume must capture the employer’s attention. You should have a very structured CV, prioritise & focus on things you want to talk about, areas you want to highlight, your USP’s.

Present your CV in the format which focuses on your areas of strength so that you initiate discussions on your thrust area. These details will enable you to prioritize your work experience and achievements in order to make your resume crisp while providing relevant information to the potential employer. Keep it brief and concise. Highlight any goals which you achieved ahead of time or any special cost-cutting measures spearheaded by your department.

Starting on your Resume

• Make a list of your experience along with the responsibilities handled and achievements if any.
• Identify your areas of strength. This may vary from individual to individual. Some might focus on organisations in their profile, some on achievements, others on education and somebody else on the profile handled.
• List out the training, projects, special skills or any other information.
• Collect all other relevant data like educational background, address etc.

Identifying the Focus

• Prioritize & focus on things you want to talk about, areas you want to highlight, your USP’s.
• The format which focuses on your areas of strength can help you initiate discussions on your thrust areas. This can help you start an Interview feeling really positive and confident.

The Format

For Senior & Middle Management Professional

•Summary / Synopsis

1. Prepare a synopsis / summary of your experience in bullets.
2. Mention couple of your professional achievements in the summary.
3. Try to sum up your profile handled overall.
4. Clarify locational expertise, if any.
5. Highlight any value addition in skills or qualification etc.

•Professional Experience

1. Mention the current organisation first and continue in reverse order.
2. Mention the current designation, period, location of posting and reporting hierarchy.
3. Highlight the current job responsibilities and additional responsibility if any separately. Do not mix the main responsibility with the additional.
4. Jot down all relevant achievements in the current profile. Be specific. 
5. Continue the same pattern for all other professional experience.

•Educational Qualifications

1. Mention the last qualification, university, with the year of passing and marks obtained.
2. Go maximum till the !0th standard level.
3. Mention separately any outstanding educational excellence.
4. Mention separately any additional qualification.

•Personal Details

1. Mention your Fathers Name & permanent address.
2. Date of Birth & Marriage status.
3. Contact details with mail ID.
4. Professional Reference if specifically asked for (Otherwise be ready with 2 Professional References at the time of Interview.)

For Fresher

• Have an objective / aim at the start.
• Pay special attention to the Format. If your strength is your educational qualification have it first or have your Summer Training or your Part time assignment first if that is your USP. Focus clearly on your strength.
• Present your Training Assignment in such a way that it stands out and gives the Interviewer scope to question you.
• Write relevant points in your CV.
• Be thorough in what you write.
• Mention your strength if any and be ready to defend it.
• Be precise in Personal details. Some Do’s
• Answer your phone professionally and be ready to jot down any relevant information.
• Check your resume for proper grammar & correct spelling.
• Connect your skills to your job history
• Include industry keywords in your CV.
• Keep references ready but provide only if asked for.

Some Don’t

• Do not use long-winded sentences and old-fashioned language.
• Eliminate unnecessary resume details.
• Do not fabricate.

“An investment in knowledge pays the best interest.”- Benjamin Franklin

“I made a killing in the stock market; my broker lost all my money, so I killed him.” –Jim Loy

First quote holds the forte of truth everywhere and more so in financial investment and wealth management, probably with greater importance.

Second quote, though on a lighter note is another aspect of the stock market; if you don’t invest in educating yourself about fundamentals, probabilities, permutation and combination, you will lose whatever you have earned and much more.

Internet has made all the information available to us on our fingertips, but unless and until the information is vetted by a person of authority, they are meaningless. That’s why; we decided to cut the clutter and take you away from routine and bring you the wisdom of someone who has been in this industry for close to two decades.

Mr. Sameer Kapoor, CEO of Elite Wealth Advisors Ltd. has close to two decades of experience in the Financial Market. He has worked as Senior Vice President with Religare Ltd, VP – Online Business with HSBC InvestDirect (India) Ltd., ILFS, Mansukh Securities and Mefcom. For majority of the time he was building up and growing the Online Business on pan India basis.

His LinkedIn Bio reads,”Blogger by choice, Finance Enthusiast, Speaker”, and believe us, he excels in everything that he has written. But what he modestly didn’t mention in his profile is that he is an astute and avid inbound marker, helping the information to spread and businesses to grow. His two blogs www.simplypaisa.com and www.mysharebazar.com provides great insight of the financial market and handholds the end users in the process of intelligent investing. He is a Chartered Financial Analyst (CFA) from ICFAI, Masters of Financial Management from Pondicherry University and B.Com from Delhi University.

Let’s learn together from his knowledge and experience….

Review Board: Journey of investment sentiment in India starts from greed and reaches indifference travelling via fear and despair. Is it the scenario only in India or also in the rest of the world? Has intelligent investing ever been a pattern or will it ever be the pattern in future and if yes, then what does it look like?

Sameer Kapoor: Any investment that makes decent returns can be considered as intelligent investing and if I guess it right, Indians have always made decent money whether it is in Stock Markets or with Real Estate. The only difference of opinion comes when you actually wish to evaluate your decision.

The invested capital in couple of days may be giving different returns in terms of IRR as compared to that of couple of years. So it is important for investors to define the tenure of investment before investing.

Upcoming breed of Wealth Management businesses are very well articulating these things and will surely redefine the perception.

Review Board: What advice would you give to small investors for intelligent investing?

Sameer Kapoor: A small investor looking to invest should clearly define and most importantly correlate Risk, Return expectation and Tenure. Any uneven proposition giving very high returns may not be recurring or may not be true also.

I haven’t seen Super Heroes in my entire career so only capabilities seemingly true for a human should be trusted upon.

Review Board: Mess in the Indian financial system and the mistrust of common man in the people running this market is largely of their own doing. Their greed has definitely done a huge damage. What are the short and long term steps that need to be taken to restore the faith of common man and strengthen the structure of financial system once again?

Sameer Kapoor: Greed of little better returns brings everyone to these markets so nothing bad in this. Difficult part is that very few people with limited capital exposure and practically no discipline in their investing approach tries to represent the very large mass of small and big investors. Increasing market capitalization with more and more IPOs/Public issues getting over subscribed reflects confidence of people only. Historically, we have seen returns of people invested in businesses through stock markets have outperformed that of any other financial asset class like FDs or Gold.

SEBI always keeps bringing measures to bring more and more confidence of investors and is doing a great job.

Review Board: Whatever happened in 2007-08 due to US Subprime crisis is nothing when we compare to something like China, US and Global debt scenario. Chinese total debt crossed $33 Trillion few years ago, which is three times more than their GDP. Global debt stands at more than $217 Billion against the Global GDP of around $65 Trillion. What is your opinion on that? How long will this bubble sustain? What is your advice to common man to safeguard himself from any such eventuality?

Sameer Kapoor: I guess Global debt figures are in Trillions and I think it stood at $237Tn for Q3 2017. See, high debt figures are always alarming and creates a risk of afloat.

A major component of this debt comes from Governments who borrow money to fund social schemes. Here you will find few which will have extremely high debt and few with very manageable debt.

As an investor, I would like to be in a place which are producing growth and using debt to manage that growth. Others which are using debt just to fund their facilities are bound to see a bad day in future times. This may be very high depreciation in currency or extreme inflation or total economic fiasco. However, few hard workers will sustain their growth and come with some amazing numbers.

I would certainly be on the side of these hard working borrowers rather than crying on few lethargic borrowers. Similar to this, investing in such companies always yield good returns as their management understand how to sail through difficult times and grow business.

Review Board: Under the current Market scenario when SEBI has been proactively tightening the rules and regulations for Market Operators reducing the maneuverability, how do you see it impacting the Brokers?

Sameer Kapoor: Definitely, it is going to impact the complete broking business. I feel broking business is going through a big change.

It is getting primarily divided among investors and traders. While Traders are getting more focuses on derivatives and automated trading. Investors are trying to outsource their direct interaction with markets to Portfolio Managers and Investment advisors. Both sides are witnessing a big growth and newer technological advancement.

A traditional way of calling and servicing clients is slowly getting outdated and speedily getting replaced with self service or completely outsourced approach.

Review Board: In this digital era, customers are educated and informed. It has made customer acquisition easy and tough, both at the same time. Easy, because sales team is not required to spend good amount of time on educating the customer about the product or services and tough, because customer is already informed and has multiple choices. So, what would be your advice to anyone looking to acquire new customer?

Sameer Kapoor: Business never gets tough with customer education rather one needs to find a way to service this educated customer in a most cost efficient way and reduce cost associated to such customer education.

Online has come up as a most preferred way for individual investors as it brings convenience to access and operate, freedom to choose own investing method and cost efficiency with reduced pricing models. It is now a proven fact that Online is not only better than in Brick and Mortar model in Acquisition but also in Servicing.

Businesses now see a lot of competition on online space also but the smarter one still find their niche and create acquisition spree. Within Online, now there are multiple ways to generate opportunities but cost efficiency is the name of the game.

Online Marketing is not like what it used to be 10 years back but has changed shape. My three key advices would be

• Never hire any person for Online marketing who do not understand the Industry.
• Maintain your online reputation as the recourse from bad reputation in online space is very difficult.
• Never rely on business model which depends on customer ignorance as awareness spreads very fast online and will eventually destroy your business.

We had great time talking to Mr. Kapoor and few things which came out prominently from our discussion were:

• Educate yourself about the battle you are getting into.
• Whoever you are; evaluate the risk, reward and time frame.
• Stick to the normal, expect what is humanly possible. -
• Little bit greed is good, because that’s what brings you to the market, but overstretching is not only bad for you but the market as well.
• Online marketing has changed what it used to be ten years back.
• Keep a close eye on your online reputation. A small mistake and lethargy can cost you the reputation built over years of hard work.
• Never rely on the business model which depends on consumer ignorance because awareness increases faster in online domain and anything wrong can destroy your business.

As we enjoyed our discussion and learnt from his experience, we are also sure that you will find it informative and valuable.

Note: To read more insights from professionals working in different field, keep visiting www.reviewboard.in . You can ask us about our services at mukul.bhartiya@reviewboard.in and sales@teamrecruiters.in. 

I think most of us in this networked world are part of one WhatsApp group or another and I bet all of us crib most of the time being the part of those groups.

Few years’ back I had written an article on LinkedIn titled “7 To-Do List for Creating Meaningful WhatsApp group”. Idea to write that article originated from my disenchantment with a WhatsApp group of my old colleagues from one organization we worked.

You can find that article here:7 To Do list for creating Meaningful WhatsApp Group
 

As a quick recap, I am listing out the points which I had mentioned in the article:

1)Don’t create a group when your objective is not clear

2)Don’t assume; ask

3)Group must have some degree of homogeneity

4)Don’t create a group which you can’t control and lead

5)Consider the limitation of the platform while creating the group

6)Do lots of research to be admin of the group and earn respect

7)Have the ability to break the monotony and generate interest

Now, along with above mentioned points, I have few more to add which I learnt from more groups I have been part of after that either created by me or someone else.

1)What is there for me: No one will do anything without the sight of tangible or intangible outcome and benefit. No result will come without a preceding corresponding action and when there is an action, it is bound to bring out the result; positive or negative and that’s the rule. If you have added someone in the group and asking him/her for something, even to read what you have written, you must show and prove that he/she has something to gain from it. No one works for free. Even charity is done for supposed better afterlife, whether it exists or not can be debated. So, if your group members have nothing to gain from your group, then either they will sit dull or they will exit.

2)Don’t involve monetary transactions if you haven’t built a team of evangelists of your cause: If any of your message/post ideates about monetary transaction, then the first point will come very strongly in force. People will start asking multiple questions to justify the value of money they are being asked to spend. Many more dimensions will come to complicate the matter even more. So, don’t bring out any proposal which involves money without being sure of loyalty and devotion of group members.

3)Agree to MVP: If you are looking for 100% participation in your proposal, then you are looking at and lurking around impossible, which will not happen. So, agree with Minimum Value Proposition of your proposal and Minimum Viable Participation to make your proposal successful.

I will keep repurposing these points as the time progresses to make it more meaningful to the readers. In the meantime, you can interact with me for personal branding services and inbound marketing at mukul.bhartiya@reviewboard.in .

Cost of Universal Basic Income in India

Idea of Universal Basic Income has been floating around in the world for quite sometime. It has started gaining traction in India as well because a national political party has proposed Universal Basic Income of Rs.321/- per day to every unemployed person of the country if the win Parliamentary Election 2019.

Let us delve into the details of cost and impact of this proposal on the economic health of this country. According to www.tradingeconomics.com, India's labor force participation in 2018 was 52.5%, which on the population of 1.284 Billion population, works out to be 674.1 Million or 67.41 Crore. Unemployment Percentage stood at 6.1% in 2018 which is highest in recent past and works out to be 41.12 Million. In 2018, workforce employed in agriculture sector in India stood at 42.5%, which works out to be 287.84 Million. This number can very well be put under underemployed workforce.

According to a report published in Times of India on February 5, 2018, workforce engaged in sectors other than agriculture but falls under unorganized sector stood at 111.1 Million on 11.1 Crore. Out of this number 60% are employed in it, which brings the actual number at 66.66 Million. So, roughly 354.50 Million of 35.45 Crore people can be brought into the category of underemployed.

Low skilled workers earned average Rs.10,900/- per month, though it may be lesser in rural areas. Proposed Universal Basic Income is Rs.321/- per day to unemployed people. If we work it out on annual basis, then total immediate cost will be Rs.475183 Crore or USD 67.31, which is 2.28% of India's GDP of USD 2948 Billion. But this is just one side of the picture. A big chunk of workforce who are underemployed will gradually start leaving the work and opting for proposed Universal Basic Income. This has the potential to take away Rs.4096610 Crore or approximately USD 580 Billion and it works out to be 19.86% of GDP of 2018. Let’s bring in one more perspective.

Since most of the low skilled workers are engaged either agriculture or manufacturing sector, this proposed UBI will pull down efficiency and productivity are of both the sector. Moreover, this proposed amount being not huge enough to encourage capital expenditure at family level, this will only increase consumer expenditure especially in food. Drop in supply and increase in demand will have magnifying impact on food inflation.

Challenges of Creating Employment

India’s unemployment rate was 6.1% and GDP grew at 7.3% in 2018. A simple thumb rule is, if GDP grows by 1%, it creates additional job by 0.5%. So, to cover up this job gap of 6.1%, GDP needs to grow at least by additional 12-12.5% immediately, which is not possible. India produces around 65 Lakh graduates and 15 Lakh Post Graduates every year. Moreover, it add around 1.2 Crore workforce in the market every year, which is roughly 2% of present workforce participation.

 It means, to cover this job demand growth, India’s GDP needs to grow by at least 4% from the present level. To cover the job demand growth, India’s GDP is required to grow between 11-12%. To cover the gap of additional 3% from this present gap of 6.1%, GDP needs to grow further by 1 to 1.5% for next 6-7 years. So, we can conclude that, solve the India’s job demand problem, GDP needs to grow by 13.5-14% for a period 7-8 years, after that it can settle for 11-12%, nothing less. 

If we add the underemployment problem, the situation will become quite sever and looking at micro and macroeconomic environment, this is an impossible feat for any government. Actually, the socialist economy we chose to become after independence made us a risk-averse nation and we as a nation become the country of job seekers. To consolidate our financial and social position, we kept adding degrees to individual kitty. We kept adding slabs to make our position higher and make it difficult for others to reach, but we remained committed to be servant and subservient someone or other. Entrepreneurship is the only option and the environment should be made conducive for it. “Ease of doing business” comes later; government should focus on “ease of starting business” and “ease of sustaining business for initial years”. Parents also need slow down in chasing this engineering and seven figure salary dream for their ward. They must not set the value of life in terms of money only. 

Land Reform as a solution

India’s total workforce is around 675 Million, out of it, 42.74% or 288.11 million are employed in agriculture, 23.79% or 160.37 million are employed in manufacturing sector and 33.48% or 225.69 million are engaged in service sector. Agriculture sector contributed 15.87% of GDP, which in real terms for 2018 will stand at USD 468.85 Billion. Manufacturing sector and services sector contributed 29.73% and 54.40% respectively for the same year which in real term will stand at USD 876.44 Billion and USD 1603.71 Billion. If we extrapolate these numbers, then we find out the productivity of a person employed in agriculture sector and manufacturing sector stood at USD 1623.85 and USD 5465.17 respectively against USD 7105.86 of service sector. 

We all know that more than anything else, the size of land holding and land holding pattern of the country are biggest bottleneck of increasing agriculture productivity. According to Agriculture Census, operational land holdings in India are 138.35 million hectare with an average size of 1.15 hectare. Out of total holdings, 85% belongs to small and marginal farm categories with less than 2 hectare. This size is hampering the mechanization of agriculture in big way hampering not only production but overall productivity as well creating income and social disparity, which often forces workforce to abandon field and move to urban areas in search of employment, creating even bigger problem of underemployment. Though small scale industries can help in solving the employment problem to some extent, but large industries are required for capital formation, job creations at all levels and have multiplier effect on the nation’s economy. But establishing big industry has been facing the biggest challenge of land acquisition. Since this issue is connected with small and marginal farmers, it gives huge political opportunity any political party. Singur in West Bengal is latest prime example of challenges of land acquisition in the country. More than anything else, education and transparency in dealing are two prime steps which should be taken by the government. Since size of landholding is very small per farm household and their dependency is huge on that small land, parting away with it becomes more of a emotional challenge than financial challenge. The fear of going broke completely can be aroused in the owner’s mind. Second challenge is the circle rate. Normally, lands are registered at very low value in government records than what actually it has been sold. If the circle rate is very low than “prevailing market rate”, then obviously it will create a problem because government compensation will depend on the circle rate and not on the “prevailing market rate”. In every business transaction, all the parties look for something extra, so, if there are employment opportunities or the opportunity to provide services which can be given to locals, either after training them or by without training, then it must be discussed in advance and in transparent manner with complete agreement. And all of it needs to be told to the land owner in no unclear terms and in fact it must be the part of information which should be inculcated to every Indian like it has been done in the case of polio immunization or similar drive. This will not only help manufacturing sector but agriculture sector as well. Increased production will mean increased productive participation, increased productivity, increased income in the hands of workforce and new employment opportunities.

Politics can’t be without economics but economics can be without politics; if we choose to practice so. Political economics focus solely on getting elected and re-elected by the political parties. Though economics is the second word of political economics but when it comes to objective, economics becomes third or distant last in the priority list.

Fidel Castro, famous ruler of Cuba (Prime Minister from 1959 to 1976 and President from 1976 to 2008) and noted communist famously said, “I became a communist by studying capitalist political economy, and when I had understanding of that problem, it actually seemed to me so absurd, so irrational, so inhuman, that I simply began to elaborate on my own formulas for production and distribution”.

What he did not tell all of us that every individual action depends on psychological functions which further depends on numerous biases and heuristics created by demographical, social-economical, educational etc. nudges and interventions applied by different forces every moment, which further fires many chemicals known neurotransmitters laying down new memories, creating new biases and heuristics or strengthening the earlier one. Hasn’t this become a heady cocktail of jargons and words, very difficult to understand? That’s what political economics is; very difficult to understand.

India as a country is as diverse as the word ‘diverse’itself can be and it is as multidimensional as‘multidimensional’the word can be. Indian economy is complete reflection of the country, giving scope to every party to claim what they want to claim and most of the time each one of them may be completely true or true to some extent or completely wrong.Since economy is what matters to everyone the most, it becomes imperative to make this cocktail light, if not nectar, for everyone to consume, I talked to Mr. Suraj Sharma, who is an authority in this field.

Mr. Suraj Sharma is Chevening Financial Services Fellow, hosted by Kings College, London and IIM-Kolkata alumni. He also holds PGDM from Centre of Management Education, VAMNICOM, Pune. Presently, he is Chief Executive Officer of Punarvasu Financial Services Pvt. Ltd and also one of its board members. I had couple of straight questions to him and he cleared the haze overstate of Indian economy. Here we go with our discussion…..

Mukul Bhartiya: What is your opinion on current economic situation of the country? Would you call it “slowdown” or “crisis” and what are the factors which led to it?

Suraj Sharma: Current economic situation has the symptoms of “slowdown”, which if ignored, can develop into “crisis”.

Now, issues constituting second part of your question are crucial, poignant and present a paradoxical picture at the same time; issues which impacted or is impacting the economy needs to be divided into two parts; short term and long term. Short term issues are the policy decisions and long term issues are collateral effect of some other major domestic and transnational events.

You will agree with me that Indian economy, despite demonetization in 2016 is still largely a cash economy.Since ages, few individual who knew or probably still know how to leverage their connections with higher echelons of decision making bodies pockets the benefits meant for all. Incumbent government took certain policy decisions to streamline and make business activity transparent. Some of the decisions can be debated for its necessity or effectiveness, but rather than getting into details of the decisions, let’s understand what happened after that. It will help us to speed up our discussion.

Let’s begin with short term issues.

On 8th November 2016, Government of India took a humongous decision of calling back all currency of Rs.500 and Rs.1000 from the market. Whether objectives set by the government were met or not can be debated separately, but it led to massive cash crunch for SME and MSME sector which we agree or not, but were largely running on cash economy. This impacted the overall economy because money from the market were getting sucked in, demand of everything except necessary food items slowed down and job were cut on massive scale.

Before economy could recover from the impact of demonetisation, Goods and Service Tax became operational from 1st July 2017. GST Act is an excellent step by government of India to boost the ease of doing business in the country and bring in more transparency in the Indirect Tax regime. It was needed not only to remove friction in business operational activity but bring more and more business transactions under tax net.

But shift from one policy structure to another of such a humongous nature needs at least few business years to settle down and is implemented when economy is growing, not when it has slowed down. Here, government introduced not one or two but three policy changes of big impact in quick succession.

During this period itself, on 10th March 2016, Upper House of the government passed Real Estate Regulation and Development Act (RERA), which became effective from 1st May 2016. By this time, out of 92 sections, 56 were notified. By 1st May 2017, all the sections were operational. Real estate sector before bringing this act was unorganized, which was not only leading to exploitation of home buyers but restricting investment in this sector preventing credible and rated developers from sourcing money from the market.

Unregulated market was allowing many developers to manipulate the home buyers by channelling fund from one project to another without completing the earlier one, working on multiple projects without availability of required fund and many things more. Since there were many such developers and many such projects, this sector proved to be one of the leading employment providers, which it actually is, along with textile industry and after agriculture sector.

After implementation of RERA Act, many real estate projects were shelved and many developers defaulted.

Demonetization had maximum impact on SME, MSME and real estate sector the most because it dealt in cash the most. Implementation of GST forced them to put their business in a structure to be system compliant. Again I would say that it was good step but it delayed the sales activity. Since this sector makes a huge contribution towards employment generation as well, not only it had clear slowdown impact on economy but growth in unemployment as well.

All these policy decisions have not only stretched the business environment straight in the country but has also brought banking sector under lot of stress, which anyways is under lot of stress due to NPAs and toxic assets under control of banking sector.

That’s why I told you in the beginning itself that issues which led to slowdown are crucial, poignant and paradoxical at the same time. While decisions taken by Government of India are on solid merit points but Indian economy has never been in such a shape to absorb body shot shocks in such a quick succession.Though these decisions were right but the timings were questionable.

If we expand this discussion a bit more and go ten-eleven years back, then we see that world economy suffered a body blow due to US sub-prime crisis. Though it did not impact the Indian economy much but how can it remain unharmed because it is not insulated from the world economy. Efforts were made to boost the purchasing power and economy was on revival path, but many scandals tumbling out of government’s closet led to massive anti-corruption movement in the country. This movement brought in a kind of policy paralysis, where decision makers became afraid of taking decisions.

Mukul Bhartiya: Here I would like add something; there are many estimates of total business and employment losses due to US sub-prime crisis. I have read somewhere that business losses stood around USD 15 Trillion and employment losses around 80 Million. Further, in my opinion, Supreme Court gave the body blow to whatever was left after the impact of this financial crisis and policy paralysis, by cancelling 122 licenses of 2G telecom spectrum in February 2013. Foreign investors had shown their faith in Indian economy and telecom scam was the internal matter of the country. Without providing adequate relief to the investors or even thinking about them, Supreme Court gave harshest blow to the economy.

Suraj Sharma: There is no denying fact that impact of US sub-prime crisis was huge, but I would refrain from giving specific numbers in the want of accuracy or lack of it. What you said about the impact of Supreme Court’s decision on cancellation of license of 2G telecom spectrum and coal license cancellation may be right.

Though India was not influenced much by US financial crisis, but credit easing did happen here as well during that period. Most of the power, infrastructure, steel and other big projects were financed during that period itself. And because most of these decisions got entangled in court cases, projects either failed to start or got delayed putting humongous stress on the banking sector. Most of NPAs of Rs.14 Lakh Crore which is being talked about were financed during this period only. On top of it, this IL&FS crisis has adversely affected the business sentiment. In 2018, 40% of the incremental consumer financing was done by NBFCs and not the banks. Since mutual funds used to buy NBFC papers and give them money. A good share of NBFC money was coming from mutual funds, but IL&FS scandal turned the applecart upside down.

Look, every other business sector’s health depends on the health of financial sector. Though NPA problem has been resolved to certain extent but challenges are still there, NBFC crisis arising out of IL&FS scandal, freeze on payments to the account holders due to scam in PMC Cooperative bank, low capital ratios at Yes Bank and how it went unnoticed for so long, continuous defaults by real estate and infrastructure sector etc. have put banking and financial sector as a whole under huge stress. Government needs to see that how quickly it brings the economy out of this rut.

But we are seeing growth quarter-to-quarter basis, though slowed down andthat’s why we can’t call present situation an economic crisis.

Mukul Bhartiya: What should government do to reverse the situation and increase the opportunities of employment?

Suraj Sharma: Government has taken many steps to revive the situation but if things don’t start improving in next eighteen month or so, then as I mentioned earlier, it will trigger bigger crisis.

Infrastructure/real estate/industries/power etc. projects should not be financed by commercial banks. Instead, they should be financed by long term investors through debentures .You tell me which bank accepts fixed deposits for 20-30 years and which infrastructure project becomes cash positive in 5-6 years? Even residential projects of real estate sector take more time to complete than that.

Apart from bringing in RERA for removing the frictions of real estate sector and pave the way for more legitimate funding, Government has created the necessary rules and policy structure to encourage REIG(Real Estate Investment Group) investing to clean up the real estate investment, bring more transparency and make real estate projects more viable. Recently announced Rs.25,000 Crore Priority Debt Fund to revive stalled real estate projects is a critically important decision. It will give relief to much aggrieved home buyers. All the steps taken by government will bring synergy between investors, developers and sellers and foster growth. Now, only thing is to be seen is how quickly all these steps fructify result.

Barring 4-5 banks, all nationalized banks have come out of NPA mess. To make liquidity available in the market, government is aggressive on repo and other fiscal rates.

Boldest of all the step is corporate tax to be levied on new manufacturing set up to come up after 1st October 2019, which is 15%. If you add cess and all, then it will not be more than 17% and it is lowest in the world. Government might have done so keeping US-China trade war in mind, expecting companies flying out of China may land up in India for setting up their infrastructure. I can’t comment right now about its impact on fiscal discipline.

Helping banks to clean up NPA mess, recapitalization of banks, aggressive interest rates, aggressive corporate tax, reduction in base corporate tax, creation of fund for interest subvention scheme for GST registered MSMEs, holding hands of real estate sector through RERA, REIG etc., government is doing many right things.

Though government has taken many steps in the right direction, but all of it has to bear the result very quickly. A lot of time has already lapsed and things can’t be delayed anymore. Liquidity crunch has prolonged for too long and media sentiment has been depressed for too long. Remember that negative business sentiments have domino effect on overall business scenario and one fall triggers others to fall. Liquidity crunch does not happen just because of unavailability of funds in the market, it also happens because of unavailability of intent and courage among the investors. If it continues, then SMEs and MSMEs will start defaulting and since most of government’s lending are to this sector, it will create the challenge which no one has ever imagined.

Further, government shall bear in mind that Indian economy has never been in the stage where policy decisions of such a humongous nature can’t be implemented in such a quick succession. Implementation of GST will take at least three to four business years for everyone to see which direction it will move. Business community will get adapted to its implementation and government will be able to plug the holes and explain it clearly to them. Similarly, real estate sector will take time to work on the lines of guidelines set by RERA.

Government and RBI shall see that credibility and reputation financial sector is restored and that also on priority basis. They must see that without any delay depositors’ interest is protected and they again repose their faith in country’s banking sector. Business decisions can fail but business decisions quite adverse to very common business sense shall not be acceptable. Promoters shall not be allowed to have executive position in private banks and no executive should be allowed to hold the top position for more than 10-15years or so. Government and RBI shall see that executives holding highest position in banking industry must get enough time to execute their decisions but must not get time to be synonym with the organization itself. Government shall also see that individual account holders shall have insurance cover of at least Rs.10 Lakh or even more for the deposited money with a bank; right now it is Rs.1 Lakh and it is very less. Government and RBI shall work towards rebuilding trust of depositors towards banking and financial system of the country. If it doesn’t happen, then nothing will happen.