Article - 119 Week 03 | Change The Rules & We Can Change The Outcome

Article - 119   Week 03

Change The Rules & We Can Change The Outcome
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500 CE. Pacific Ocean was criss-crossed with vessels trading within African East coast, Arabia, Persia, India, South East Asia, and China. The Muslim traders were the most dominant and wealthy ones in this ocean trade.  Logs & ivories from Africa, textiles from India, finished silk and porcelain from China, and spices from Indonesia were the commonly traded goods. The Indians were one of the most sought after and skilled & accomplished sailors cum merchants. Even before this period, we would find mention of Indian merchants in the Roman Empire by sea route. They were known for their clever  bargaining skills even then in the Roman Empire. The first English expedition to India via Cape of Good Hope was badly damaged by inclement weather. And there is mention of this Gujarati pilot guide who navigated the partially damaged vessel all the way to Malaya. And not only that, the same vessel managed to subdue and dispossess a Portuguese vessel off  Sumatra, taking back a huge profit of the expedition to England. And that incident gave the English the confidence that they could take on the Portuguese in the East. Even during the Greco-Roman period Indian merchants and mariners were very active in the maritime trade. From skilful navigation in monsoon winds, ship building, ship repairs, to merchandising, Indians had a significant and praise worthy contribution to world shipping.

Unfortunately, the Moguls had no special interest in maritime trade and naval expeditions. And the English always had an upper hand to push their power through because of their fire power in shipping. The East India Company killed any remnant maritime spirit in the Indians by imposing complete monopoly on shipping, to the extent that even the English privateers were restricted with many types of licenses and red tapes. The red tapes and licenses were even more severe on the Indians under the imperial rule. India got independence from the imperial rule. But the severity of the red tapes and licenses continue to stifle our maritime industry even to day. Nearly 65 years after independence. If you are an Indian why do you need a license to export? License to import? License to run an agency? License to clear goods from Customs? A load of licenses to start and run a shipping company? We are drowning under the  heavy ballast of red tapes,  licenses, permissions, NOCs, inspections, approvals, and crude taxations. Until we are liberated, our shipping industry would  look more like an old Soviet sick industry as it does today. The Ghosts of Warren Hastings and his ilk loom large in our executive & administration of the industry. Until the ghost is exorcised, we would be struggling hard both within and outside for a fair share of the fruit, that is legitimately ours - from a rich and proud maritime heritage.

Brgds

Capt Rath

Article - 118 Week 01 Mumbai to Surat

Article - 118   Week 01     

Mumbai to Surat

"NMMC stare at tax losses as city industries eye 'dvpt friendly' Gujarat" - Headline, Times Of India On 6th Jan 2013

Long time ago, Surat was the entrepôt and trading capital of India. The Moguls controlled and ruled the place. Their rule guaranteed safety and security to traders and artisans. They allowed the Portuguese , the British and others to carry on competing and trading. In addition to huge amounts of imports of horses, bullion and export of fine calicoes, the place was used for ship repair and provisioning for both the west bound and the east bound ships to Indonesia and China. On the other hand, Bombay, consisting of many isles, had a small trading post of the Portuguese, prone to the excesses of Maratha attacks and Mogul high-handedness. Even after the British took control of Bombay, trading activities were limited, until the East India Company decided to move its administrative centre & main factory from Surat to Bombay. The Moguls slowly perished. The Marathas were subdued. East India Company had its stable monopoly over the islands. The place grew secure and safe for trading. Traders flocked into the place with all their money. Weavers, artisans, and workers made a beeline for a safe and prosperous, productive and rewarding life. And the rest is history. The trend  continues to be felt, albeit a much slower pace or perhaps a reversal of the trend!

The surest way to to bring a city down on its knees is by blocking its sea ports and airports. In a war, the Generals do that to their enemy as an offensive strategy. In our case, our city is being slowly, insidiously and undramatically choked in its ports and airport. The process is so slow that we hardly notice it and we get used to the pain over time. We hardly complain. Some thing like a slow poisoning. You won't know the damage until it is so pervasive and extensive that it is too late to remedy. Mumbai is no more a secure and safe place for business, trading and shipping. It is particularly punishing its business people, and the common workers, artisans, and the middle class. The old port is practically abandoned by the users due to the excesses of corruption, archaic rules, rent seeking monopoly interests, and hostile unions. The new Terminals of Nhava Sheva built as a substitute to Mumbai Port, and to handle larger volumes of containers & conventional cargo have floundered. Callous administration, shoddy regulations, conflicting and ambiguous contracts under BOT deals, wide spread corruption, sky rocketing land prices, unfair government deals in acquiring land for port building, excessive lock outs by belligerent Union workers, and hopelessness are the order of the day. Safety, security, and stability is menacingly questionable. Excessive taxes on businesses, goods, services, and workers has rendered the place gloomy. Land grabbing by politicians & their fronts has driven lopsided developments and kept basic infrastructure fragile and stagnant, while keeping the home prices sky high as a result of restricting basic infrastructures to small pockets. The city is anaemic  under a dying sea port and a choking airport. Capital and skill are the hapless victims. They are seeking an alternative to run to. And Surat (Gujarat) appears to be that alternative. With a pro-business climate the place is inviting investment and skill. Gujarat ports are simply world class in productivity and capacity. Connectivity by rail to Delhi and other ICDs goes uninterrupted despite the hegemony of government controlled CONCOR.  No strikes or lockouts. Roads and infrastructures are being built rapidly.  As of now, Surat appears to be sprinting back to regain its past glory at the expense of a consumptive Mumbai.

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Brgds

Capt Rath