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Insight July 2015
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Narsee Monjee College of Commerce and
Economics
Department of Commerce
Insight July 2015
Whether all is well in Euro-zone?
Even in 2012 Greek debt exchange was a watershed event in the euro area debt
crisis. It generated fears of contagion and was viewed as a threat to the euro
itself. Although it achieved historically unprecedented debt relief, amounting to
€106 billion (55 percent of GDP), it was ―too little, too late‖ in terms of
restoring Greece’s debt sustainability. There was a heated debate as to whether
the debt restructuring should have taken place sooner, when Greece’s
adjustment program was agreed to in May 2010.
The 2012 Greek debt exchange and subsequent buyback was a key episode in
the euro area debt crisis that erupted in 2009. It was the largest debt
restructuring in the history of sovereign defaults, and the first within the euro
area..
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In 2012 Greece’s imbalances were allowed to reach unprecedented proportions
under circumstances that are unlikely to be repeated. First, there was
monumental market failure as bondholders did not consider that there is credit
risk in the euro area. Second, there was institutional failure as the Stability Pact
failed to impose fiscal discipline. Third, there was regulatory failure, as all euro
area bonds carried the same zero-risk weight irrespective of credit risk, which
meant that banks investing in Greek bonds did not have to set aside capital and
reserves. The corollary of the large imbalances that were allowed to develop
was the historically unprecedented size of the bailout package that was required
to achieve a soft landing. Nearly €240 bailout packaged received for revival
from IMF and EU.
The problem today with Greece Economy :
Greece has received nearly €240 billion in two bailouts from the European
Union and IMF since 2010 is set a miss a €1.6 billion debt repayment to the
IMF which falls on 7th July 2015 creating a history of IMF that an advanced
economy defaulted on loan from the world’s financial backstop , questioning
the viability of Athen’s, Zimbabwe, Sudan, Cuba which has seen there economy
crippled 25 % since 2009.
As we feel is that the Euro to remain stable , members need to regularly pay the
debts on time , where as Greeks are not able to pay the debts as they do not have
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enough Euro’s in the Greek financial system (both public & private ) also the
investors have panicked and almost want to withdraw their money from the
Greece economy.
The possible reason is that the new government has demanded the European
countries to be more realistic and has conveyed that they cannot pay all debts .
There can be two solution to the problem:
1) Greece can stay in the euro and try to endure grinding depression for years
and years or 2) they can leave the euro and endure a financial crisis.
I feel Europeans by now should accept the fact that Greece is not going to pay
most of its debts. They also need to accept that these debts are partly their fault.
These loans were made by Northern European financial institutions, and the
Northern Europeans should suffer for making stupid loans, too. Also it can be
that Greece will have to issue IOUs to their creditors and their businesses which
will mean you have a currency in Greece that is not the euro. It will be a kind of
scrip. However people have been pulling their money out of the Greek financial
system because they don’t believe this scrip will be worth as much as the euro.
Close observation points out that Greeks government were never good at
revenue generation as in many of cases they kept richest people outside the
spear of taxation say for the Shipping industry and Real Estate industry were
never a major tax contributor .
Support from the International Agencies is must as country needs Euros 36
billion (Dollar 40 billion) from the euro region over the next three years and an
easier terms of payment to make the debt sustainable.
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Impact On Euro – Zones :
Short run impact at present seems to be negligent as the total amount of debt,
which is about $200 billion Euros , is real money, but it’s really just about 1-2
percent of total euro area GDP.
Euro has fell against the Dollar in the International Market however European
shares which have been roasted well in the International Stock Exchanges are
expecting steady recovery post the referendum.
However other struggling economy with Euro-area can follow the Greeks
footstep in near future which can doubt capability of the euro and will be seen
as less safe a currency than it once was and that will permanently raise interest
rates in many European countries. It will permanently reduce the appetite for
euro assets. The long-term impact is the IMF will be out billions of dollars
which they need to pay back to their poorer members.
So what we conclude is a recheck for all the economy (including India) and
their governments to design a policy of self dependency and be more fiscal
disciplined.
For more details :
https://www.cigionline.org/sites/default/files/cigi_paper_33.pdf
http://www.vox.com/2015/6/29/8863313/theres-a-simple-solution-to-greeces-
problems-but-europe-wont-try-it
www.livemint.com
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Foreign Trade News
Silk Routes versus Sea Lanes: Rediscovering Land
International trade is thought to be synonymous with ships and sea lanes of
communication, until of course China proposed their signature idea of ―One-
belt-One Road‖ (OBOR). OBOR is about connecting China with Europe
through Central Asia and Russia through land routes. The purpose is to limit the
maritime component in the global supply chain and thereby reduce dependence
on the international merchant fleet of bulk carriers and tankers. China
understands well that, to lead the global economy, it is important to control over
the channels through which business travels.
Rediscovering Land
On 9 December, 2014, a cargo train which started its rail journey from the
manufacturing hub of Yiwu (Near Shanghai) reached the Spanish city of
Madrid covering about 8000 miles. The world’s longest rail journey passed
through China, Kazakhstan, Russia, Belarus, Poland, Germany and France. It
took 21 days to complete this maiden journey, less than half the time to travel
by sea. OBOR is not purely land based; it has a maritime component. The ports
and harbours in Indonesia, Africa, Myammar, Bangladesh, Pakistan, Sri Lanka
and possibly India are part of the scheme to shorten sea time that the to-and-fro
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trade from West Asia and Africa has to traverse to reach China. The reason for
China diversifying trade routes is that firstly, Chinese trade does not feel safe
using American-dominated ships and sea lanes of communication (SLOC).
Second economic reason could be the desire to garner a greater share in the
global service sector that is currently dominated by the US. Presently the US is
controlling $375 billion shipping industry and the shipping insurance and
reinsurance business.
The Chinese strategy hinges on bringing down the usage of Ocean for trade and
develops trains and road links for global trade.
Impact on India
Some analysts suggest that India should refrain from joining OBOR initiatives
on the basis of border security issues. It is not going to have much greater
impact on India’s foreign trade as India neither has much stake in marine
insurance and reinsurance industry nor it is global shipbuilding hub that is likely
to lose business due to opening up of land routes.
(Source: EPW, May 30, 2015 pp10-16)
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BRANDGyan……
I. About Cannes Lions International Festival of Creativity:
The Cannes Lions International Festival of Creativity is considered the largest
gathering of worldwide advertising professionals, designers, digital innovators
and marketers. Every year in June, around 11,000 registered delegates from 90
countries visit the Festival, to celebrate the best of creativity in brand
communication, discuss industry issues and network with one another.
II. Awards
8 much-anticipated Glass Lions were presented, including a Grand Prix to
BBDO India, Mumbai, for Procter & Gamble Whisper, "Touch the Pickle". Jury
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President Cindy Gallop, Founder and CEO, IfWeRanTheWorld said judges
came to the decision following lengthy discussion, informed by a strong sense
of responsibility for what the category represents. "Ultimately we unanimously
agreed on work tackling a gender issue that impacts every single woman
worldwide; does it in a way that is innovative and disruptive while entertaining
and engaging; comes naturally from a brand for whom effecting change in this
area is not only its innate social responsibility but of tremendous business
benefit; and which has achieved amazing results in one of the most conservative
markets in the world."
131 Outdoor Lions were awarded. TBWA/Media Arts Lab Los Angeles and
Apple Cuppertino claimed the Grand Prix for the "World Gallery" iPhone 6
integrated campaign, described by Jury President Juan Carlos Ortiz, President &
CEO of DDB, as a ground-breaking blend of innovation and simplicity-of-
thought that made the jury's choice easy. "We didn't choose the Grand Prix - the
Grand Prix chose us," he said.
The Creative Effectiveness Lions saw the continuation of a winning streak for
Volvo, with Forsman & Bodenfors receiving the Grand Prix for Volvo Trucks
"Live Test Series" which Jury President Wendy Clark, President Sparkling
Brands & Strategic Marketing, Coca-Cola North America, emphatically called
"a gift to the industry" that demonstrated the power of creative bravery as a
conduit to exceptional effectiveness. "This was unapologetic advertising, proud
to communicate its message. Every jury member was jealous of the work." A
further 16 Lions were also awarded.
PR Lions Jury President, Lynne Anne Davis, President & Senior Partner Asia
Pacific, FleishmanHillard, movingly described discussion amongst the jury that
had led to the awarding of their Grand Prix to MSL Group NY and Leo Burnett
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Toronto for Procter & Gamble, Always "#Like A Girl". "There were two jury
members who had showed it to their children, and they will never know 'like a
girl' to be a put-down," she said. "This is a campaign that marries a brand
promise with brand purpose and commercial pursuit. It's not just counting the
people reached, but reaching the people who count." She also highlighted that
over half of this year's 79 PR Lion-winners had come from PR specialists,
attributing the increase to the creativity gap having "completely closed"
between advertising and PR agencies.
Finally, in Media, 80 Lions were awarded including the Grand Prix to Y&R
Team Red, Istanbul for Vodafone, "Vodafone Red Light Application / Between
Us". Speaking about the work, Nick Emery, Global CEO, Mindshare, said that
it was clever, a good cause and a great media idea. "It embraces the best of both
a corporate campaign and the originality of an NGO approach. Technology was
at its heart and it also has an adaptable and flexible media approach,
personalised to the women of Turkey."
Earlier in the day delegates heard from Pharrell Williams on unleashing
creativity through collaboration; caught a glimpse of the coming AI revolution
from visionary pioneer Sir Tim Berners-Lee, explored the creative universe
with Professor Brian Cox and got a recipe for purpose-driven innovation from
Jamie Oliver.
III. About 62nd
Cannes Lions International Festival of
Creativity
The 62nd Cannes Lions International Festival of Creativity, this 21-27 June,
also known as Cannes Lions, is the world's leading celebration of creativity in
communications. Founded in 1954, the Festival takes place every June in
Cannes, France.
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As the most prestigious international annual advertising and communications
awards, close to 37,500 entries from all over the world are showcased and
judged at the Festival. Winning companies receive the highly coveted Lion
trophy, a global benchmark of creative excellence, for Film, Print, Outdoor,
Interactive, Radio, Design, Product Design, Promo & Activation, Film Craft,
Mobile, Branded Entertainment and Integrated advertising, as well as the best
Media, Direct, PR, Titanium, Creative Effectiveness, Creative Data and
Innovation ideas. The Festival is also the only truly global meeting place for
advertisers, advertising and communication professionals. More than 12,000
delegates from 95 countries attend a week-long programme of exhibitions,
screenings and talks by worldwide thought leaders. As the networking and
learning opportunity of the year, Cannes Lions is the must-attend event for
anyone involved in brand communications.
IV. Lions Festivals
Lions Festivals is the organiser of Cannes Lions International Festival of
Creativity, Lions Health, Lions Innovation and Eurobest, as well as co-
organisers, with its joint venture partners, of Dubai Lynx International Festival
of Creativity, Spikes Asia Festival of Creativity, and the Asian Marketing
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Effectiveness & Strategy Awards. www.lionsfestivals.com. Lions Festivals is
powered by Top Right Group.
(Source: Cannes Lions International Festival of Creativity)
V. Around the world
After a Record 8 Lions in Cannes, Ad Council Brings 'Love Has No Labels'
to NYC Pride
Ad Council's "Love Has No Labels" campaign didn't just set records for the
nonprofit PSA maker. With 110 million online views, the launch video is the
second most watched social and community activism ad of all time, behind
"Kony 2012."
And across earned and social media, the campaign garnered more than 1 billion
impressions in its first two months, the Ad Council says.
There was plenty of love for the R/GA-produced work at last week's Cannes
Lions festival, too. It won eight Lions—a record for an Ad Council campaign—
picking up a gold and two silvers in Direct, a silver in Outdoor, a bronze in
Titanium & Integrated and three more bronzes in Cyber (including one for
spatial tech).
The Ad Council got a chance to celebrate the Cannes success in the best way
possible—by bringing the campaign to NYC Pride on Sunday, a day after the
festivities wrapped up in Cannes. Check out the video below from Sunday's
event, showing how the "Love Has No Labels" message has resonated with the
LGBTQ community. (Source ADWEEK)
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Green Diary
Editorial
Green July, Welcome. Most awaited monsoon rains have finally been arrived.
With these rains the hopes for better rain nearly fulfilled but still brought with it
the excessive rains in parts of Gujarat. So this month’s focus is on the ―Floods
in Gujarat‖.
Happy Reading!
Editor.
Contents
I. Editorial
II. Recent News
III. Floods in Gujarat
IV. National Park of the Month.
V. Important Environmental Days in July
Recent News:
Sanjay Gandhi National Park to turn in to city's star attraction in two years
Monday, 6 July 2015 - 6:56am IST | Place: Mumbai Retrived this article from
Agency: dna --- Author Ateeq Shaikh
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Days after it reported a rise in leopard count, the Sanjay Gandhi National
Park has more good news to offer. The 104 sqkm park is all set for a makeover
to make it more interesting for visitors.
Under the project, the park will get a lakeside promenade, tourist huts,
mangrove walkway, taxidermy gallery, nature trails, nature interpretation
centres, open gymnasium, machans, new leopard safari, mobile application, etc.
Vikas Gupta, director and chief conservator of forest, shared, "In two years time
the revamp should be done and the national park will look more promising."
The revamp plan has been shaping up for a year and has now been approved by
the state Forest Department for implementation. In October 2014, dna had
reported some of the features that would be part of the SGNP, but in the last
eight months more ideas have been included.
Currently, Kanheri caves, boating, lion and tiger safari, mini-train, tents, rest
houses, children play area and the Gandhi Memorial draw a scores of visitors to
SGNP. The project includes all possible aspects of the national park, except for
the construction of the boundary wall which is simply not gathering pace.
The process will begin with the appointment of a consultant, who will prepare a
detailed project report, followed by floating of bids.
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The idea is to make SGNP more active towards sharing information pertaining
to nature by having nature trails at different locations like Manpada, Sasupada,
Yeoor, Borivli, highest point, etc. Instead of going to zoo, one will be able to
see different birds and animals at the proposed taxidermy gallery.
Souvenir shop is another feature that will be bettered. The present shop is
outside the park boundary next to the ticketing counter, but is usually missed by
visitors. There's a possibility that the location may changed with additions in the
items on sale by including Warli art and artefacts and other tribal arts.
Adventure sports plans such as rock climbing and rappelling, which have
remained on paper for long, have been included in the project.
In another eco-friendly measure, officials plan to procure 14-seater battery
operated vehicles to ferry visitors. Fifteen such vehicles will be acquired, they
added.
Leopard Safari
Already approved and funds allocated by the Maharashtra government, leopard
safari at SGNP is part of the larger plans of the Forest Department. Currently,
tiger and lion safari exists inside the park. The existing safaris would be
revamped too under this multi-crore plan.
In all, there are 15 leopards housed at the rescue centre apart from the 35 big
cats that are roaming in the wild. During his budget speech, finance minister
Sudhir Mungantiwar had given impetus to ecotourism and announced putting in
place the leopard safari at SGNP. He had also said that the caged leopards will
be part of the leopard safari.
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Learn about nature
As part of the eco-tourism facilities, the periphery or several areas on the
boundary of the SGNP would be developed by way of Nature Interpretation
Centres (NEC) or nature trails.
"Infrastructure is already there at Sasupada of Nagla Block and at other
locations. We just need to refurbish them and start activities. We want people to
come to national park ignorant and leave with loads of information about
nature," said park director Vikas Gupta. Similar features at Manpada and Yeoor
too would be revived to conduct nature trails on a regular basis. Currently the
only Nature Interpretation Centre exists is at Borivali.
Nature trails would go hand-in-hand with the centres as various trek routes
would be revived where forest guides would lead nature lovers into the forests.
One of the trails that are likely to be revived is mangrove walk at Sasupada.
A taxidermy gallery will showcase stuffed animals that are not usually seen
during one's visit to SGNP. Some of the animal and birds include mouse deer,
vulture, leopard, etc.
Food and fun
As part of the upgradation of renovation and development of infrastructure
several new things would come up at the SGNP. Some of these would include
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cafeterias, lake side promenade, better ticket counters, improved souvenir shop,
upgraded mini-train, etc.
First, the main entrance gate where ticket counters are situated will undergo
modernisation. Battery operated vehicles will ferry tourists to certain points.
The boating arena too will witness improvement with plans of developing sit-
outs or lakeside promenade. Mini train – Vanrani – too would be getting an
upgrade of technology. "We will explore the possibility if a better engine can be
brought to haul the mini train," said Gupta.
Three tourist huts and cafeterias too would come up inside the park. At the
moment, there isn't any cafeteria and people from padas or hamlets within the
SGNP sell eatables to the visitors at Kanheri caves and other locations.
There's also a larger plan of watershed management, which will include
desiltation of lakes. It will ensure Mumbai has water for an extra month apart
from conserving environment within the national park boundary.
SGNP mobile app
The aim is to improve SGNP's promotion and make a brand image to attract
more visitors to the park. For this, officials will come up with a mobile app.
Local tourist circuits will be recognised and activated that will be of larger
public interest. While the features of the app are yet to be finalised, it is
expected that in the next few years booking like Kanheri caves, lion and tiger
safari can be through the application.
A greater deal of this mobile application will focus on sharing information
about the flora and fauna of the national park.
Warli/tribal art
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Apart from maintaining a modern outlook, local flavour too would be included
to the national park. The idea is to promote the skills and arts among the
communities residing within the SGNP. There are plans to have Warli paintings
and artefacts at the souvenir shop. Other local tribal art too would find a place
on the shop's stands.
In order to achieve this, skills of local communities would
In order to achieve this, skills of local communities would be honed so that they
can support themselves by finding employment opportunities within the park
including becoming guides for visitors.
G) POINTS UNDER SEVEN CATEGORIES
1) Renovation and development of infrastructure
Modern entrance gate, Roads and drainage system, Public water kiosks, 3
tourist huts, Administrative building, Conference hall, Cafeterias, Lakeside
promenade, Repairing of staircase leading to Pagoda and Gandhi Tekdi, Safari
and boating ticket counters, Souvenir shop, Technology upgrade of mini-train
facility
2) Development of eco-tourism facilities
Developing Nature Interpretation Centres at Borivali, Manpada, Yeoor and
Sasupada, Developing nature trails, Developing mangrove walkway at
Sasupada, Developing Cats , Orientation Centre, Taxidermy Gallery, New
Signage system, Eco-friendly transport system
Machans and Canopy walks Butterfly Park, Landscaping, Developing water
harvesting and storage structures, Desiltation of lakes, ,Children Park,
,Adventure sports Open gymnasium
Sit-outs, Eco-friendly toilets, Developing garbage collection and disposal
facilities
3) Development of safari tourism
Developing existing tiger and lion safari, Developing newly proposed Leopard
Safari,
4) Use of information and communications technology in managing SGNP
Developing mobile Apps, MIS for visitor management,, Security solutions,
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5) Promotion and branding of SGNP
Developing promotional and publicity material, Developing sustainable model
providing, linkages with publicity houses, Facilitating and augmenting local
tourist circuits
6) Promoting livelihood of local communities
Enhancing and imparting skills to local communities to be used as guides and
work for running various facilities, Providing local warli/ tribal art
7) Developing self-sustainable revenue model
Developing commercially viable and self-sustainable concept, Ecotourism
structure assessment and elements of market demand.
---Ateeq Shaikh, DNA
Floods in Gujarat
Much awaited monsoon finally arrived in the month of June and covered the
entire country which otherwise takes Mid July to cover the entire country.
However this monsson in June took its toll on some parts of the country such as
low lying regions of Gujarat.
Gujrat one of the progressive state of india, has overcome the dry climate
conditions with well developed irrigation methods. Major perennial rivers such
as Narmada, Tapi, flows across the state, thus proves to be lifeline of the state.
However there are also temporal rivers which receive water from the monsoon
rains. The topography of Gujarat is so, that majority of region is low-lying
while towards west it is Rann of Kutch. Therefore, Saurashtra is the only
agricultural rich area in Gujarat.
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In the recent times, this physiography is the main cause for floods in the state.
Floods have been recorded in 2013, 2014 too but this year the floods have
caused huge damage to the state especially to the environment.
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2015 Gujarat flood
Deep Depression ARB 02 over the Arabian
Sea shortly before landfall over the coast of
Gujarat on 23 June 2015
Date 23 June 2015–26 June 2015
Location Gujarat, India
Deaths more than 70 dead
Torrential rains battered Gujarat, with peak accumulations of 636 mm (25.0 in)
in Bagasara, 511 mm (20.1 in) in Dhari, and 400 mm (16 in) in Variyav. Severe
flooding ensued across the region, isolating many villages in the Saurashtra
region
In Saurashtra, Amreli district was affected heavily facing worst flood in ninety
years. Nearly 600 villages of 838 village of district were flooded. More than
400 villages were inaccessible as road and rail was washed away due to flesh
flood and they had no electricity. Shetrunji river and its tributaries were flooded.
The railway bridge near Gavadka collapsed and railway line washed away near
Borala village near Savarkundla. Paschim Gujarat Vij Company Ltd (PGVCL)
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declared that 705 electricity poles damaged. In Rajkot district, more than 1700
houses damaged. Jetpur town waterlogged as gates of Bhadar dam were opened.
There was a heavy damage to crops and large number of cattle died. The flood
and heavy rain resulted in more than 70 deaths across Gujarat.
The Gir Forest National Park and adjoining area housing Asiatic lions, an
endangered species with only 523 living individuals documented in May 2015,
was severely affected. Nine lions and more than one hundred and
fifty Nilgai died in flood while dozens are still missing. The carcasses of
several spotted deers, porcupines and wild boar were also found.
Heavy rains, which caused a flood in Gujarat's Saurashtra region, claimed lives
of five Asiatic lions in the Amreli and Bhavnagar districts.
Three lions, including a three-month-old female cub, were killed after they
drowned following heavy rainfall in the Amreli district, while carcasses of two
other lions were found from the Bhavnagar district.
Heavy rains also took a toll of other wild animals like blue bulls, spotted dears,
porcupines and wild boars, the three 'cheetals' (spotted deer), a porcupine and a
wild boar from the forest range. Carcasses of about 150 neelgai (blue bulls)
from the Bhavnagar forest range also recovered.
Rescue and Relief
The state government deployed the Indian Air Force (IAF) and National
Disaster Response Force (NDRF) for rescue and relief operation. On 25 June
2015, IAF helicopters delivered more than 2 lakh food packets to villages
affected by flood. Around 4000 people were evacuated from seventeen villages
downstream of Bhadar dam. More than 200 people were rescued from various
places caught in flood. Chief Minister of Gujarat, Anandiben Patel declared Rs
4 lakh as compensation to the kin of each of the deceased.
Source: Wikipedia,
www.ndtv.com
National Park of the Month
Gir Forest
Also known as Sasan – Gir, it is the sole home to the Asiatic Lions in
India. The ecosystem of Gir, with its diverse flora and fauna, is protected
as a result of the efforts of the government forest department, wildlife
activists and NGOs. The forest area of Gir were the hunting grounds of
the Nawabs of Junagadh. However, faced with a drastic drop in the lion
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population in Gir, Nawab Sir Muhammad Rasul Khanji Babi declared Gir
as a "protected" area in 1900.
Factfile
Name Gir forest sanctuary
Also Known As Sasan – Gir
Located Junagadh, Gujarat
Area 1412 sq. km.
Flora Dry Deciduous Scrub Forests
Fauna Asiatic Lion, Nilgai, Chital,Indian
Leopards
Major Attractions Lion breeding programme, Gir
Interpretation zone, Devalia
Important Days in July
July 11 World Population Day – Population has to be given special attention, as
it is an ever-increasing problem especially in India.
July 29 International Tigers Day – Annual celebration to raise awareness
for tiger conservation, held annually on 29 July. It was created in 2010 at
the Saint Petersburg Tiger Summit. The goal of the day is to promote a global
system for protecting the natural habitats of tigers and to raise public awareness
and support for tiger conservation issues.
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