Skills Center around GIFT

DAI-ICT | IIM-Ahmedabad | IIT-Gandhinagar (Under-Construction)

Opportunities to resource high paid, high skilled graduates as well as post graduates are ample. With some of highest pay packages at DAI-ICT are running around 23 lakh per annum. Though considering population of India and also population of rural Gujarat, one can see that they represent select few privileged meritocrats.

GIFT City can become haven for such graduates if there were venues for them to raise money, or pitch their ideas and network of mentor helping them in action.  

India's economy truly needs leverage of its underlying potential of human capital to offer design services, consultative services catering to rural population. Considering large population of India residing in Rural areas give ample opportunity to leverage younger generations to learn ICT Skill Set. 

DAI - ICT or Dhirubhai Ambani Institute for Information Communication Technology, intends to focus on imparting education around these skill-set, and located in southern Gandhinagar. Close proximity to GIFT City roughly 20 mins drive, makes it a preferable institutional partner. 

Though IIM - Ahmadabad campus may seem far considering its just 50 mins away keeps it alluring enough for future Finance Grads to take the reins. But graduates prefer stability after years of toiling and reaching pedestal of academic accolades, go seek greener pastures.

And in future with IIT Gandhinagar opening up close by around DAI ICT, may end up fueling their community even more for pursuing innovative ventures. 

Fueling growth with Alternative currency

Will pay to the Bearer on Demand

Was money created by god? Or was it created by government? Or was it created by businesses? What we do is say 'In God We Trust'. We see government of cronies with huge public debt and businesses such as Banks with massive bad debt waiting to be overwritten by Depositors! Can such a freak show happen?

The stakes are too high, for everybody but the winner is Debtor whose Books are being asked to Wipe off. How about instead of these Books handled by Banks be handled by entrepreneurs?

Would the community trust and build it up in circulation? 

Interesting example to this is BitCoin - a popular algorithm based circulation. Where algorithms are based in miners computers mining the algorithm to earn coins. Though despite its popularity in global media, this algorithm based circulation has many flaws despite some pros. Pros such as Anonymity, Virtual Digital operations, which opened global exchange yet was limited in circulation and scope apart from the hype. 

Learning from this example, one can see enormous potential that lies in algorithms based circulation. For example: mobile banking allows the telecommunication service providers to be mediator of the extended circulation, helping telecom retain customers and allowing them to pay bill on time. 

How about such a strategy is devised to include simpler device based services as mediators for rural population. Would this help in adoption, engagement, retention of new members. 

Though in order to pursue such a strategy one needs to consider poor ICT capacity in rural India. Due to policy flaws which created a state of dependency to imports. The investments in Fabrication Labs can run to impressive sums. 

Though the value adding aspect lies in designing for those ICT. Which not only help learn global manufacturing process, but also cultivate skills in community to build more sophisticated tools for communities. 

Promise of hinterland for experiments, innovations and promising new services are magnificent. But current potential remains muted due to Agrarian crisis. Governments continue to focus on Markets listed in Big Cities instead of focusing on decentralized market place of hinterland. 

Hinterland needs, growth in productivity and improvements in standards of living. Which opens plethora of opportunities to develop new businesses, new kinds of businesses. In order to fuel such a growth can efficient book keeping suffice. 

Financial Sector and GIFT

Boom and Bust - Growth or Recession

India's equity markets are as volatile as global growth trajectory, with China sneezing and global economy catching a cold. In such a gloomy picture India's electorate celebrated ascent of Chief Minister of Gujarat to Prime Minister of India about a year ago. This led to rise in expectation for this project.

Actions regarding the same were palpable in some of the regulatory reforms taking place. For example attempts to reform RBI to allow more liquidity in the market by easing interest rates. Which RBI governor continues to resist due to high Inflation rates.

Translating the macro economic changes in terms of how it impacts society, we can see that high inflation especially food inflation, reflects poor state of Agriculture output and high demand.

Considering ongoing agitation of 'Jai Kisan', highlights the challenges faced by farming community, who continue to be dependent on farm income with no source of growth, in opportunities to consume or improve standard of living. Though the latter part is not completely true. Though the level of consumption and improvement in standard of living, continues to remain modest or even poor in compared to rising standards of consumption and living in larger cities.

With majority of Indians residing in rural parts have been left behind in the growth story of India. The monetary policies are not guiding how the growth trajectory will be shaped instead it is the Banks who are shaping the economy based on cycles of returns.

Viability of Debt Investment in rural communities may have returns but comes with high risks, due to changing climate, local conditions and commodity market. With financial market in India catering to rural population remains unorganized, such as money lenders, micro credits.

The wealth generated in India continues to be locked down in real estate sector of big cities leaving behind huge acreage of water behind dams feeding the cities. With changing climate, water use is under stress between rural as well as urban communities.

If GIFT India can truly leverage a large rural population to fuel growth in Financial Services it can truly contribute in shaping economy of a trajectory of sustainable growth. Though current Political Economy, Political Structure and Entities are vested in networks of extractive growth, and have been consuming resources at high pace.

This has led to creation of large infrastructure lock downs for cities, with huge financing leverage in form of Infrastructure Bonds, and Sovereign Debt. What would happen if we can pay no more, the liquidity crunch ensues due to spooking of capital markets.

This gives rise to opportunities to innovate monetary instruments, say for example backed by carbon quotient can truly help bring liquidity in the market at the same time check growth of consumption as well as extraction.

In summary, who thinks infinite growth on a finite planet is either a mad men or an economist.

Updates from GIFT City

Idea of GIFT City is indeed a creative experiment.

I have been following this idea for roughly about two years, over these years I see changes emerging at rate of roughly 1 - 5% of complete master plan for the city.

What is interesting to note is that speed at which China builds cities, is in line with the speed of debt pool extension it allows corporate sector of construction industry. The construction industry of China has been a fueling source of gross product in its local economy, which allowed financial sector to continue making loans. This has lead to creation of "Ghost Cities" in the process. There are some very good lessons in growth story of China.

On the other hand comparing to China, India's economy struggles with basics. Where a population is struggling with rise in Cost of Living without any significant rise in Income. Though India too has Construction boom especially in large Metros, where large unsold inventories have piled up in a state of excess supply and excessive demand. Demand is of Affordable homes and Supply is of unaffordable ones.

At such a time in global economy, where slowdown is palpable Globally, future of GIFT City seems grim. Though fundamentals of the Project remain strong. Where on one side we are witnessing excessive supply of expensive homes with slow demand has got liquidity locked down. On the other hand Projects such as GIFT City are growing at a Slow Pace.

Currently the Project has 2 commercial buildings completed in Sector 17, Corporate Park North, with 1 residential building under construction in Sector 16, Residential Park North and 1 residential building under construction in Sector 15, Residential Park South.

Opportunities to invest are plenty, but liquidity globally remains tied down with global slowdown. Investors seek opportunities where they can maximize their Income at the same time have their Investments safe. Considering real growth of real estate sector is driven by individual consumers who are subscribing Home Loans, which again remains dependent on High Paying Jobs.

Thus so far, in GIFT City there are commercial space available as well as soon residential spaces shall also become available in 6 months to year. The question remains is that can all these offices be leased? Will this allow migration of Talent to Work, Live and finally Own a House here? Or will this all remain as GIFT of India to Mother Earth as another Ghost Story.