How the Future of India and USA, was determined by the inability of the Austrian Kings Joseph I and Charles VI, to produce male heirs..
When Joseph 1, died of smallpox in 1711, he had two daughters but no son. As a result, his brother Charles VI, succeeded him on the throne
Given that it was 1700s and the presence of a Son was considered paramount for succession, and the Salic law, in effect at that time barred women from inheritance, Charles VI was the last male heir to the throne, unless Charles VI had a son.
Which he didn't.
But he had 2 daughters, Maria Theresa & Maria Anna. Realizing that his kingdom would be divided on his death, he decided to change the law, and allowed his daughters to inherit the kingdom
Which was pretty sad for thhe daughters of his elder brother, Joseph, who he disinherited
Every other European power was smacking their lips in anticipation, of devouring the wonderful Austro Hungarian empire as a sweet desert, as it's division was imminent.
Things came to head in 1740, when Charles VI died and Maria Theresa became the Empress of Austria.
Half the Europen powers, Like France, Prussia and Spain, sided with the daughters of Joseph, because they wanted to takeover Austria
Britain, Dutch and Russia, sided with Maria Theresa.
This resulted in an 8 year war called the war of Austrian Succession, in which 3,00,000 died
Unfortunately, when the war ended in 1748, nobody was happy with the terms. As a result, in 1756, Everyone went to war again, in the Seven Years war.
This is where Things begin to get interesting.
As a part of the Seven Years war, England and France took opposite sides in a country, far away from Europe, where they were just getting their foot in.
The country was India.
First they started supporting local rulers against each other.
Then they dropped their pretence.
Things came to head, when French and British fought the Battle of Wandiwash in 1760.
Unfortunately for the French, they were annihilated.
British captured their Capital Pondicherry and Chandranagar in Bengal and French were effectively booted out of India.
Which did not go well with them and they were waiting for an opportunity to give England a bloody nose somewhere.
That opportunity came in 1777. In the United States of America.
French went all in on that one. So much so, that 75% of the US army's gunpowder, was French.
They even blockaded the American coast, so that no British ships reach out for help.
As a result, British went thru a humiliating surrender in Yorktown, and America was born.
Which made the British double down, in their other colony, India.
They put all their effort and focus to subjugate India, lest it become like America.
And because the local Indian rulers, could not turn to a European power like France for Support, the Brits succeded.
To summarize,
The Austrian King couldn't produce a male heir, which resulted in a war between France and Britain, which ensured India was colonized and America became independent.
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It's good that Indian government wants to become self sufficient in production and manufacturing. But merely reiterating it at every juncture won't suffice. I sincerely hope that the govt takes some lessons from WW2, on manufacturing transformation.
When US went to war in 1941, the defence situation was ultra bad. The army didn't have enough guns & they were manufacturing only 3000 planes. On the other side was Nazi Germany who were already in the war for 2 years by then and were technology pioneers
However, in the next three years, US took such a leap, that they built more tanks, ships, aircraft in One year, than what their enemies built in six years.
In fact US built more shipping in the first half of 1944, than what Japan managed in seven years.
Hyundai's Journey In India, from being a competitor to Maruti both in Price and Quality to becoming a manufacturer, who can get away with pricing a Hatchback at 15 Lakhs, should be a case study for all auto manufacturers.
And the most significant aspect of their journey is the way they have managed their perception. They are not classified as a cheap option, Like MSIL, nor an expensive one Like a Honda or a VW.
Even when a car like Verna, is priced as much as a Honda City or a VW Vento..
Toyota found a niche and stuck to it, but failed everywhere else
Hyundai, somehow managed to straddle across segments & Price brackets, and is successful
And every segment they entered, they have significantly managed to increase their prices, without suffering a drop in sales
Immanuel Nobel, was a Swedish Inventor, who had three sons, Robert, Ludvig and Alfred.
Other Than inventing routine stuff, he was also ultra interested in explosives. Once, during his visit to Russia, he impressed the Tsar with his awesomeness. As a result, he settled in Russia.
His Son Robert, took forward his legacy. Once, as a part of business, he got a huge rifle contract for the Russian Army. So he sent his Brother Luvig, to Baku, to procure some wood for the rifle butt.
When Ludvig reached Baku, he found oil literally coming out of everywhere.
There was so much oil, thag people didn't know what to do with it. There were actual oil fountains.
Given that there were no mobile phones at that time, He decided to spend the 25000 roubles that he had for wood, and bought an oil refinery.
We often keep hearing, "Company A is awesome because it is valued at 1 Trillion USD. Company B is amazing because it is valued at 3 Trillion USD"
We are so beholden to th western benchmarks of valuation, that we sometimes ignore everthing else.
For eg, How will you value Amul?
It guarantees farmers minimum income. Always increases input costs while keeping output cost as low as possible. It never refuses to procurement from the farmer, even if there is a glut.
And finally, thanks to Amul, millions of people have come out poverty, got an education.
And then moved up the economic ladder, and are tax paying citizens, in the highest brackets.
Where in the Western model of Valuation do you fit all this in?
Sometimes I feel the Indian model of Capitalism is very mature and socially conscious.
The year is 1948. India is newly independent. You are from an elite family, who was just graduated from the Michigan state University, on Govt Scholarship and have come back to India.
You would think you life is all set and you are going to live happily ever after.
Then the Govt sends you to a rundown village in Gujarat, that nobody has heard of. Then they put you up in a grimy, sweltering car garage.
And then ask you, an English Speaking gentleman, to work with farmers, who can speak only Gujarati, a language you have no clue about.
And they ask you do it at a salary that is 20% of what you will get in the outside world.
You have three options. Either you run away. YOu suck it up for sometime and then run away. Or You start a revolution.
If your name is Dr Verghese Kurien, you choose option 3.