Retirement income framework – understand the allocation

I get a lot of queries in my blog and Facebook group about how to structure a corpus so that the retired person gets enough monthly income in retirement. Most of these people have a home and are not really extravagant in their spending. Ideally they would like to have regular monthly income with a degree of safety attached to it.

I have written earlier that a combination of Debt, Equity and Stocks should be the way to go for all stages of life, with the provision that the proportion changes in favour of debt as you grow older. However, there are many people who are worried about the volatility in the markets and clearly uncomfortable in a scenario where they might have to withdraw money in a declining market. At the same time, a debt only portfolio will work if the corpus is large enough to deal with inflation over a period of 3 decades.

Let us simplify it then in terms of different scenarios. The first scenario is where you only want to have Debt in your portfolio:-

  • Assume an annual expenditure of 8 lacs per year
  • Retirement period of 30 years conservatively
  • Real return from portfolio is zero as Returns match inflation
  • Corpus needed will be 2.4 crores
  • Rough assumption is that expenses will double every 10 years.

So you can see from here, if you have 2.4 crores corpus you can withdraw 8 lacs every year and not worry at all about markets and equity etc. But what if you do not have 2.4 crores but only 2 crores. How does that change the situation? Let us see below:-

  • Assume same expenses and longevity as in the first scenario.
  • Put 20 years amount into Debt and the rest in Equity.
  • So we have 160 lacs in Debt and 40 lacs in equity.
  • Assume that inflation makes expenses rise by 100 % in 10 years.
  • Assume equity returns of 15 % annually.
  • The Debt investment will be adequate for first 20 years.
  • The Equity part will become 654 lacs in 20 years at 15 %
  • Even if you take 12 % return on equity, the amount in 20 years will be 386 lacs.
  • Annual expenses after 20 years will be 32 lacs per year
  • So 10 year costs are 320 lacs.

As you can see the trick is to let Equity grow for a long time so that the differential return when compared to inflation really works to your advantage.

I hope with this you will be able to get your own situation in retirement mapped out. The basic idea is to deal with Debt in the first decade or two and have access to equity money for later on. Yes, if you have enough in Debt then you probably do not need a lot of equity allocation. Let us now look at the general formula then.

  • Expense of X lacs per year and longevity of Y years
  • You can be in pure debt if corpus available with you is more than XY lacs
  • If you have less than XY lacs then your allocation must be between Debt and Equity.
  • In general with a corpus of 75 % of XY lacs you should be all right.
  • Assumption is that your Equity portfolio grows at 12 % to 15 % long term and inflation is such that your expenses double in 10 years ( roughly 7.2 % )

All that you really need to do now is to plug in your values and check out the allocation required for a rich and productive retirement. I will do another post this week on specific portfolios and withdrawal strategies for 2 different levels of corpus.


Khajuraho – offbeat and mesmerising

When one has travelled as much as I have, it becomes quite commonplace to plan for new travel destinations and one may get a sense of, “been there, done that”. Khajuraho was quite different though as it was something both Lipi and I wanted to do for a long time. Now that we are done with the trip, I can only say that it met our expectations in full measure. For those interested in going there this post will be helpful.

Coming to the actual travel, we started on 20th February morning from our home in Hyderabad. The short ride to the airport is always exhilarating in the morning on the ORR expressway. Hyderabad airport is now crowded at most times but, as regular travellers, we have now learnt to take these in our stride. Once we were through the Security check, we headed towards our oasis in the airport – the Plaza Premium lounge. this provides relative serenity in the hustle and bustle of the airport as well as great food options at most times of the day. Fortified by the breakfast, we boarded the flight and did what we normally do – Lipi catching up with her sleep and me with my reading. We made a short stopover at Noida at my mother-in-law’s place and had a great lunch there. She also insisted on packing some dinner for us which came in rather handy later on.

Our train journey by the UP Sampark Kranti Express was uneventful but we were privy to some rather interesting conversation on Khajuraho, courtesy some local people who were travelling with us. When I woke up it was rather dark and the feeling I had of closing in on our destination was quite thrilling. The train reached Khajuraho station fairly early in the morning and just as we came outside we were accosted by a person named Jainam who wanted us to get into his car to reach our hotel. Though I did not have much faith in the sheet of paper that he proffered, 200 Rs seemed a reasonable fare and we set off. The journey by car was short and we saw the two airports, national and international, on our way. The road leading to our hotel Isabel Palace was a dusty one and I started wondering as to whether we had made a good choice of the hotel. However, the interiors were quite good and we were given a room immediately even though it wasn’t 8 in the morning yet.

The hotel had a fixed menu breakfast on the terrace. You could view the Vindhya hills at a distance and paddy fields up close. The 360 degree view along with the tasty Indian breakfast of stuffed parathas and pooris started our day on the right note. We had worked out a deal with our guide cum driver Jainam and soon set out to see the star attraction of the trip, namely the temples of the Western group first. It was only a short drive from the hotel, in Khajuraho most distances are short. The immediate road stretch in front of the temple complex has been cordoned off for vehicular traffic and this is a good step. Tickets were cheap but the official Guides really expensive. We still got one as it is always good to hear from them and it proved to be a good decision. Apart from giving up the details of temples and the sculptures he also doubled up as our official photographer for the day and snapped quite a few pictures of Lipi and me. This was nice as we normally end every travel nowadays with very few pics of us together.

The Western temple complex has most of the temples standing today and is really the UNESCO world heritage site. The temples are all in pretty good shape and have been restored well where needed, the landscaped gardens look beautiful and due to the lack of massive crowds you can set your own pace. We started with the Lakshmana Temple which is dedicated to Vishnu and has a few smaller temples in front of it. The Varaha Temple, dedicated to the third incarnation of Vishnu as a wild Boar is small but has a huge statue of a Boar which is rather impressive. The carvings along the Lakshmana temple contain a lot of erotic sculpture for which Khajuraho is widely known. While these are rather explicitly depicted, the overall numbers would probably be less than 10 %. Also, the sculptures are really about everyday life and it seems that sex was dealt with and spoken of quite openly during the times the temples were built.

About 200 metres from the Lakshmana temple is the most famous temple of Khajuraho and easily the most majestic one in structure and stature. My memories of it stretched long back to my school days when I read about it in my Cultural history classes and was quite impressed by it. In real life it was even more impressive than what my imagination had allowed for. The Jagdambika temple next to it is on the same raised platform and the duo clearly dominate the Western complex. Just going around the temples and staring up at the rising Shikaras will inspire you with awe. Add to it the richly carved panels with the intricate sculptures and you realise the extent of the artistic and human endeavour that went into creating these masterpieces. Muslim invasion had desecrated the shines but even those callous souls probably could not bring themselves to destroy such beauty.

The rest of the temples were nice too, the Chitragupta temple and the Vishvanath temple being noteworthy. The Dance festival has the Chitragupta temple as it’s fantastic background and we witnessed that in the evening. After the Western group we went to the Southern temples and the Eastern Jain ones. While these were quite impressive too and the Chaturvuja temple was unique in the statue of Vishnu with 4 heads. The Jain temple complex was really serene and nice though architecturally not so striking maybe. The temples done we proceeded to have lunch at Agarwal’s which was a great vegetarian restaurant and had a variety of Thali’s and other fares to choose from. The simple thali we chose turned out to be quite sumptuous and rounded off the morning experience.

After some rest at the hotel we were back to the temple complex in the evening. We first went to the only temple in Khajuraho where worship is prevalent and saw the 9 feet Shiva lingam made of sandstone, glistening due to all the polish it has got over the years. The evening Arathi was just starting as we came down the steps and the music with the chanting along with all the devotees clapping to it was a heady mix. Next stop was the Khajuraho Dance festival which was really more of a Fair. There were stalls put up from different states with all kinds of textiles and handicrafts, there were food stalls ans an Art Mart featuring work of many artistes. The Dance stage was impressive and had the Chitragupta temple as it’s beautiful backdrop. We saw three performances of Bharat Natyam, Kathak and Manipuri dances and each one held our attention completely. The entire experience was a surreal one and exceeded all expectations that I had of it. If you are a lover of art and culture, you must visit Khajuraho dance festival at least once.

Dinner was at well known Rajah Cafe run by a Swiss. We had some chicken Brochette which was quite good along with another chicken dish with Rotis. After a restful night we were off the next day on nature trail. First stop was Ken Ghariyal Sanctuary which has some wild life and apparently a lot of crocodiles. Even though we did not see any crocodiles there, the views of the Ken river and the different small lakes that it forms within the sanctuary were hugely worth it. Lipi did not want to climb the watch tower but I decided to test my fitness by doing so and was rewarded by some great views. The Raneh falls did not have any waterfall as the monsoons last year had been almost absent. However, this allowed us to see the Canyon properly and the sheer scale, variety, colour and arrangement of the rocks were truly remarkable. Quite possibly the only place in India where you would get to see this. After lunch we were at the Panna Tiger reserve in a Gypsy and with a very knowledgeable Guide. Panna is uniquely beautiful due to the Ken river that runs through it. This also has several alligators and crocodiles along with a host of water birds. We saw Herons, Kingfishers, Storks, Cormorants and Peacocks just to name a few. Deer of different types were in abundance starting with Nilgai, Sambar, Barking deer, spotted dear, Barasinghas etc. It was a great sight to see a couple of young deer in full flight with both feet off the air. Though we heard some people seeing the tigress and two cubs and waited patiently on a long vigil by the Ken river, the tiger eluded us. The whole park experience was rather nice though and catching the sunset as we were exiting the park was really the icing on the cake. The long drive back and the exhausting day necessitated an early dinner and we were off to sleep quickly.

The final day was reserved for Museums but unfortunately two of these were closed for the day. We did get to see the Tribal museum which had some really nice stuff in terms of paintings and handicrafts along with implements of day to day use of the tribal’s. Lipi went off to buy some souvenirs from the market while I took another look at the Western group of Temples in order to look at some sculptures closely. Another sumptuous vegetarian lunch followed and we were back to Khajuraho station soon. The station facade is in the shape of a temple and is apt for the place.

The train journey back was good as we met an old couple who have been coming to Khajuraho for several years and it was nice of them to share some of their dinner with us. Next day we stopped by Lipi’s place once more and made it to Hyderabad in the evening. It has been a great trip that had everything – culture, heritage, nature, wild life all rolled into one.

We are looking forward to the next trip in a few days time – complete change of setting as we will go to Goa now.

A travel plan for Khajuraho

I am passionate about many things in life, but if I had to choose one it would definitely be travel. Over the years we have travelled to a lot of different destinations, both inside and out of India. I always look forward to a new year thinking of the new places we may get to visit or the old ones where we may rediscover new experiences. In 2018, one of the places I had on my radar was Khajuraho and I am happy that we are going there this week.

Planning for travel is one of the activities I truly enjoy and, over the years, I have got pretty good at it. This time, the idea of a Khajuraho visit came to me in January. My mother-in-law, who is normally with us in December and January to avoid the Delhi winters, was leaving on 11th February and our daughter Rinki was coming back home after completing her BM program at XLRI on 27th. So we really had to go in the intervening period. What really sealed the deal for me was seeing the news of the Khajuraho Dance festival being held this year between 20th and 22nd February. I am a great fan of all types of Indian cultural performances and one of my great joys was to watch the dancers perform in the Mamallapuram Dance festival when we were in Chennai. The Khajuraho dance festival seemed like the perfect occasion to visit there.

Life today has got much easier due to the amount of information present on the internet, especially if you know how to search for it well. I normally start by reading up on the place first to get a general sense of the location, transport options, sightseeing options etc. Next, I search for any travel blogs written about the place and also the itineraries by different tour operators. This gives me a rather good idea about how many days we will need at the place, travel options to reach there, food and stay options. Once I am clear on these I plan my itinerary and check on the dates, travel options and bookings.

Here is how I planned for Khajuraho:-

  • Based on my readings I decided that 3 days will be enough to visit the Khajuraho temple complexes, view performances at the dance festival as well as go for a half day safari to Panna national park.
  • From Hyderabad the logical way to travel will be through Bhopal or Jabalpur. However, both involved long train journeys and expensive flight tickets with not very convenient timing. It did not make sense to travel 2 days for a 3 day trip.
  • As there was a good night train between Delhi and Khajuraho, I decided to do the unusual and go through Delhi, despite it not making geographical sense.
  • I booked the tickets for the train both ways first and then looked at the flight options. As I was having some flexibility of dates, courtesy some stay options in Delhi for night stays if needed, I was able to get tickets at great prices.
  • Next step was to book accommodation for 2 nights in Khajuraho. I looked at Trivago site to get a good deal from
  • Final step was to book the evening safari at Panna national park through the online facility in the MP government site. This is a great option as you can do things directly yourself without getting entangled with touts etc. 

Now finally for the costs:-

  • Train costs were 1920 Rs for onward journey in AC 3 Tier and 2720 Rs for the return journey in AC 2 Tier.
  • Flight costs were 9800 Rs for both legs of the journey 🙂
  • Hotel cost for 2 nights was about 4200 Rs.
  • Safari permits were 520 Rs, Jeep and Guide costs will come to another 700 Rs or so.
  • Food, taxis and incidental expenses will be in the range of another 7000 Rs or so.

So at an overall cost of 27000 Rs or thereabouts we are leaving for a reasonably comfortable trip to a long awaited destination. Must say that I am feeling quite kicked about it.

Cash flows in retirement – A personal perspective

In a previous post, I had outlined about the 3 decades in retirement and how one could have a simple framework to explain the dynamics of how they will be lived. The first one is the Go-Go decade where you try to fulfil many aspirations you had over the years gone by, the second is the Slow-Go decade where you still do many of your activities but on a significantly reduced scale and the final one is the No-Go decade where you are virtually winding down and kind of waiting for the inevitable end. Of course, this is assuming you are retiring in your 50’s and will need to be expanded in case you retire earlier. 

In the Indian context, however, this framework will work quite well as most people do retire in their 50’s and, despite medical advances, few live to be beyond 90. Once you have understood the framework, it will be fairly easy to outline how these decades will go in terms of your life activities and plan out your cash flows for the same. Understand that this is an individual exercise and cannot be reduced to formulae and calculators !!

When I started to look at my situation in the Go-Go decade in terms of my life, this is what I came up with. Some of it is, of course, not completely certain but it seems very likely to me that things are very likely to pan out as I write them here:-

  • I will still be actively engaged in professional activities in the first half of the decade but it will taper down over the next part.
  • Both my children will be relatively settled in their careers at the start of the decade and are likely to get married within it.
  • I am fortunate that my parents are living and in reasonably good health. However, another 10 years will be probably too much to hope for.
  • We will definitely shift from Hyderabad to Kolkata in this period, quite possibly in the next year or so. It is possible we will buy an apartment in Kolkata unless we get very good renting option.
  • As both Lipi and I love travel and we have time now, this decade is likely to see a lot of it. I estimate 1 trip out of India annually apart from another 3 within the country.  Most of these will have the two of us, hopefully there will be some family vacations too.
  • Our other lifestyle choices like entertainment, dining out, engaging in our hobbies will probably remain the same as it is now.
  • Both Lipi and I will probably engage in some non-commercial activities which are beneficial to the society at large.

What will be the cash flow impact of the above? I looked at my present context and tried to look at all categories of cash outflow at current prices. I am assuming that the first decade starts in 2019 and ends in 2028 – calendar years both, for simplicity. I will estimate cash flows in terms of Retirement Units ( RU ), as I am not very comfortable providing actual numbers. Intelligent readers should have no difficulty in figuring out the Rupee value of each RU !!

Here is how I divided up my cash outflow categories and estimates of amounts:-

  • Monthly recurring costs : This head includes everything that happens monthly namely food, groceries, eating out, entertainment, parental support, utility bills, subscriptions and maintenance etc. In the present context we spend about 5000 RU annually here and it will remain the same.
  • Accommodation : Presently our rent in Hyderabad is annually at 2500 RU. This gets taken care by the rent we receive from our Chennai apartment. We may buy something in Kolkata if we sell that.
  • Travel : in 2017 our spending on this was about 4000 RU. With increased travel I am estimating this to be 5000 RU annually for the first decade.
  • Emergency kitty : I am estimating this to be 2500 RU annually.

So in the first decade we are looking at annual cash outflow of 14000 RU. As long as our passive income generates this kind of cash inflow we should be fine. Let us then take a look at the same. My idea here is to generate these amounts from the Debt side as I want my equity investments to grow for the next decade. Of course, dividends are welcome. I am expecting cash inflow from these avenues :-

  • Rent from Chennai Apartment – 3000 RU
  • Interest from tax free bonds and InvIT – 2500 RU
  • Dividends from MF schemes – 2000 RU
  • Capital gains from FMP – 5000 RU
  • Dividends from stocks – 1500 RU

So with the above inflows I should be able to meet the needs without really having to redeem the principal amounts in most cases. From a financial asset standpoint there are a few things I am not using in this plan. They are as follows:-

  • Entire stock and MF portfolio which is 60 % of my net worth.
  • PPF interest – currently it will have an annual value of 3500 RU
  • POMIS interest – it is only 600 RU and can be used for minor emergencies
  • Any active income – difficult to put a value but for the next few years it should be in the range of 10000 RU and more. The plan is to use it for children’s marriage cost.

Based on all of these, I feel quite well covered for the next decade. Yes, we do not know what all can happen but so far so good. What about the next 2 decades? Well, with my equity portfolio growing at a faster pace that inflation, I do not think there is really a need to worry about them. 

If you are in retirement or are going to be retired shortly, try to work out your figures based on this post. You will gain a lot of confidence from it, assuming of course you are invested in the right manner.

My Management Consulting workshops – what and why?

For the last 3 years that I have been engaged in my Consultancy practice, I have often thought of doing this post. After all, it is a reasonably easy way to reach out to a large audience and explain to them as to what my workshops are, how are they different from standard ones and where all I have done them with what kind of success. This time, I am approaching my consultancy practise with more intent, so here I am now.

Even though in this online age people can easily find out about me, let me still start by giving a brief outline of myself.

  • BE in Computer Science & Engg from Jadavpur university, Kolkata in 1986.
  • PGDM from IIM Calcutta in 1988, with major in Marketing and Systems.
  • Overall experience of 29 years plus, 27 years in regular corporate roles and nearly 3 years now in my Consultancy practice.
  • I have worked almost entirely in the software services and BPO space.
  • Have worked as a CXO for 15 years plus, nearly half of this in 2 publicly listed companies.

I think that is enough of a summary – suffice it to say that I am completely familiar with all aspects of Software services industry and have led companies doing different kinds of businesses both in the product and services space. A question I am asked often is why did I not continue for another 8 years or so in the corporate role itself. My answer is simple – fortunately once my children went to college, I realised that my need for money was no more a driving factor, I wanted to share my expertise on a wider scale and finally, I had several other things to do for which I would not have time being a professional CEO.

Over the last few years I have done several interesting engagements – formulating an IT strategy for a large Kuwati conglomerate, acting as a CSO for a startup services company in the mobile apps area, creating a 5 year plan for a software products company, acting as the marketing leader for another software services company etc. In many of these opportunities, as well as in my regular corporate roles earlier, my consulting methodology has been to run specific workshops to start off the engagement. Change in organisations is a complex process and these workshops are a great starting point.

So what are these workshops that I run? While, I can share greater details only when some company expresses an interest, some generic features are as follows:-

  • Each workshop is specifically tailored for a company, based on their situation and the issues they are facing.
  • The efforts needed from my end are as follows:-
    • 1 day with top management to understand the situational context, expectations from the workshop and logistical details.
    • 2 days of preparations for planning and content creation.
    • 2 days of conducting the actual workshop, with targeted objectives/feedback.
    • 1 day of closing discussions with top management on the way forward.
  • Some of the workshops which I have conducted most frequently are:-
    • Formulating a strategic plan.
    • Formation of a 3 year or 5 year Business plan.
    • Creation of an annual plan.
    • Leadership development
    • Team building
    • Effective Sales management
    • Excellence in Customer service
    • Goal setting and performance management

I am currently looking at expanding the horizons of my Consultancy practice and want to take on more workshops in 2018 as compared to before. While I will reach out to companies directly, one of the thoughts I had was to write this post and reach out to the considerable network I have today.

You can help me by doing the following:-

  • If you are a person who decides on such workshops for your company or department, write to me directly and we will get talking.
  • If you can refer me to anyone either within or outside your company who might have a need for any of my workshops it will be great.

I can be reached at through mail and also on LinkedIn and Facebook. Look forward to a lot of mutually beneficial interaction with people in my network.

Revisiting my life plan

The end of the year is normally a good time to assess how your life is going on and how is it likely to look in the future. In the last few days, I have given some thought to it and have decided that there may be a few changes to what I had considered 3 years back, when I had started in my Financially independent ( FI ) state. Let me share it in this post.

As you would have read in several posts, I am in an FI state, thereby not really needing any active income to take care of my expenditure. However, I have a Management Consultancy practice and earn active income out of it. Much of it currently goes into investments. While I can continue with my consultancy practice for the next few years, I am thinking of a few other areas where I can spend my time professionally. The first of these is a business venture, which I have thought of seriously over the last year. It is a fairly interesting concept and does not need too much funding. However, it needs a group of founding investors as anchor and I am thinking of some active work in this area from now on. It will probably take another 1-2 years to take off but the effort of getting the team together and kicking it off has to start. The second area is to invest actively in the stock market in a serious manner. Now, while my stock and MF portfolio is of fair value, I do not actively buy and sell in the market. With more time in my hands this is something I plan to look at. The third area will be to monetise the blog or write on topics which are of interest to me.

Depending on how the above things go, I am probably looking at being actively involved  in work, as we know it, for the next 5-7 years or so. Beyond that, my own estimate is that I will live for another 25 years, where I do not have any vocation, only my hobbies and interests to keep me busy. Not that I have ignored my hobbies or interests otherwise, in fact I have generally been happy about the work life balance I have been able to achieve.

One important factor to consider is where will we be living. As of now, we are in Hyderabad and there are really two options that I am considering. The first, is to continue being here for the next 2-3 years. The other option is to look at a shift to Kolkata in the next calendar year. The flip side to that may be the opportunities available for my consultancy, should I decide to continue it. Long term plan will be to shift to Kolkata anyway. Even though we have an apartment in Chennai, we do not plan to go there as the climate does not really suit us. Of course, another consideration in Kolkata will be whether we should own a place or rent it. More of this in another post, but if long term rent options are available, I will prefer it to buying a place.

All Indian families have their children as a key consideration and we are no different in this regard. Fortunately for us, both our children are well on their way to getting settled in life. My daughter Rinki is an Engineer from BITS Hyderabad and is presently pursuing her MBA from XLRI. She will complete her course in March 2018 and is likely to get a job of her liking in some company. My son Ronju is doing a dual degree course in Msc Maths and BE Computer Science from BITS Goa. He will complete his course work in May 2018, though there will be mandatory internships of 1 year. Of course, he may decide to do a PG course later on but that is a future issue. In the meantime, it is unlikely that our children will stay in the same city as us. As far as their marriages go, we will live it to them for deciding the time and partner. We will fund the wedding expenses and I am keeping a separate track of it.

What will be the key activities that we will engage in? Well, travel within and outside India is a passion that both Lipi and I share and in the next 10 years we will do that a lot. Our other interests in movies, cultural events, dining, sports etc are also likely to keep us busy in the first decade. Over the next decade, it is very likely that our going out will reduce considerably and we will have more indoor activities such as reading, tv and hopefully some family time with our children. Health is something we are reasonably all right with so far and hopefully we will not have any major mishaps along the way.

So far so good – what will be the cash inflows required to get these funded? Do I have the requisite financial assets to take care of this life plan? I will attempt to answer these questions in the next post.


The Ram Janambhoomi Babri Masjid saga – the beginnings of politics

The order by the Faizabad district court, permitting worship of the idols was seen by the Hindus as a vindication of their stand and by the Muslims as yet another betrayal of their cause in practising their religious freedom. Even before the locks to the structure could be opened as per court protocol, they were broken and people started to flock in. The resultant tension and bitterness between the communities manifested itself in severe rioting and violence throughout north India. Muslims observed 14th February as a Black day, stating that not only the government but even the judiciary had failed them.

However, in order to understand the issue completely we will need to get back to the politics of it. Over the years, Jan Sangh had tried to mobilise the Hindu populace to get some political dividends but they had only limited success at an electoral level. Though RSS had impressive membership and reach as a social and cultural organisation, Jan Sangh were unable to reap the direct benefits of it. They also did not want political alignments with other parties like the left or Janta dal variants. The Emergency proclaimed by Indira Gandhi changed all of that and kind of forced the opposition parties to get together. Jan sangh went with the Janta Party, who won the elections in a handsome manner and had their first taste of being part of government. They were also one of the reasons for the unravelling of the Janta party, courtesy the dual membership issue with the RSS. After uncertainty of about a year when the elections were held in 1980, Indira Gandhi stormed back to power.

Jan Sangh had been rendered defunct in 1977 and the leaders found it senseless to be part of Janata party any more. This led to the formation of Bharatiya Janata Party. The philosophy it adopted as a theme was Gandhian socialism and the core Jan Sangh issues of Ram mandir, cow slaughter, article 370 and Uniform civil code were very much part of it’s agenda. It was still just finding it’s feet when the assassination of Indira Gandhi in 1984 October, saw elections being called for January 1985. In the wake of a massive sympathy vote, Rajiv Gandhi and the Congress swept the elections nationally. The BJP did abysmally and was written off by most political pundits. They got only 2 seats and even their talisman Atal Bihari Vajpayee, a parliamentarian since 1957 could not get elected.

The BJP floundered for the next few years as the politics in the country went through a turmoil. Rajiv Gandhi had a great start to his prime minister’s innings but soon Bofors, Sri lankan misadventure and other issues started to undermine his popularity and authority. VP Singh was the major challenger and to counter him, Rajiv Gandhi agreed to the persistent VHP demands of Shilanyas of the Ram temple. Little was he to know that he was literally releasing a genie from the bottle, which could never again be put back.

Rajiv Gandhi did not benefit from the Hindu votes in the 1989 elections and was forced to concede power to the Janata Dal government led by VP Singh. BJP raised their tally to 85 seats, mostly from North India, and supported the government from outside. Indian politics would change forever, in the next few years and Ram mandir and Ayodhya were very much the centre point of it.