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Monday, 30 June 2014

Is Indian Economy Really Liberal

The Indian economy is world's third largest economy in terms of purchasing power parity has been gradually undergoing from a rigid framework to a liberal one. Though India signed for liberal state of economy almost 25 years back, but still red-tapism and stringent economic policies are the roadblocks in the path of economic development, especially in the inflow foreign investment. To meet the pace of global economy there is an urgent need of fresh reforms in the trade and investment policies. Easing of restrictions on foreign investments and promotion of multi-lateral trade policies will be helpful to overcome the reluctance of foreign businesses. India which was a favorite business destination for global investors has somewhat lost its luster in the last two years.

 Political instability and fluctuations in currency exchange rate accompanied by rigid taxation system further aggravated the declined interest of overseas businesses in India. Now, it is the prime responsibility of the Narendra Modi's led NDA government to form healthy policies with the help of the Reserve Bank of India and FIPB and restore the interest of foreign businesses in the Indian market. FDI in India is permitted through some set rules and in a free economy which runs on open market operations too many restrictions just kill the interest of foreign investors. Developed countries wants to curtail entry level trade barriers and annoying long formality procedures. The question arises why sectors like agriculture, retail and banking are not allowed for 100 percent foreign investment.

The toughest issue for majority of foreign investors is long list of government approvals like industrial licence. Foreign investors planning to set up business in India have only two routes to follow, either to set up a separate corporate entity in India or incorporating an Indian company. The secondary issue is that in India foreign investors inhibit to move in a pro-active manner due to the long and cumbersome dispute settlement mechanism by the court. Therefore, if the new government want to churn out maximum from the existing lucrative market of India, the government must devise for a second phase economic reform.

Sunday, 29 June 2014

Monetary approach and the exchange rate determination

 In an era of open economy and globalisation where exchange rate is considered as an instrument of currency valuation and relative prices. Usually exchange rate determination infers its implications on monetary policy of a country. People often presume that an increase in a country's money growth and liquidity  eventually lead to rise in the price level and depreciation in the exchange rate.

The subsequent results tend to push interest rates as well as high inflation or simply real interest rates. In a single line we can postulate that, interest rate affects the monetary policy of a country in a vivid manner. The impact of exchange rate over monetary policy depends upon  the openness of an economy.

Governments often control money supply to control inflation. The depreciation of US dollar in November 1978 government resorted to restrictive monetary policy to combat inflationary pressures. Contrary to this, when countries like France tried to intervene and regulate the exchange rate, inconsistencies with domestic policies noticed. But in the long run these inconsistencies have been countervailed by withdrawal from the governments on exchange rate and liquidity.

One should realise, that share of imports in the GDP is directly proportional to the exchange rate change. Governments should try to minimise imports in order to make monetary policy more effective. As imports and exports are more elastic with respect to the exchange rate, an stable exchange rate helps to increase the effectiveness of monetary policy.

In addition, more elastic private investment with respect to the interest rate lead to effective monetary policy and a relatively ineffective monetary policy. It is very clear that under flexible exchange rates the effectiveness monetary and fiscal policies relies on the share of import in the GDP, trade elasticity and liquidity of money.

Central banks can only control short-term interest rates. One of the key issues dominating the empirical literature is whether exchange rates can be predicted. Previous assessments of nominal exchange rate determination have focused on a narrow set of models typically of the 1970s vintage.
These forecasts are tied to the actual values of exchange rates in the long run, although in a large number of cases the elasticity of the forecasts with respect to the actual values is different from unity. Overall, we find that model/specification/currency combinations that work well in one period do not necessarily work well in another period.

Friday, 27 June 2014

For Aspirants of Finance Courses in India

Finance certification courses impart essential financial education to students and equip them with necessary skills to face challenges in the field of finance. Finance is the most important resource as well as back bone of any business or organization.  Admission to finance courses is extremely very tough as well.  It’s quite shocking to note that a majority of the population  cannot perform basic financial calculations. India has a large number of student populations that are immersed in education loan.  Yet they have no idea how they are going to repay this loan.  If at all they were financially literate and could manage basic personal finance.  That’s the basic reason that a finance course in India has stringent admission test to test the caliber and aptitude of aspirants of students.

A financial education from a premier institute in India will arm you with one of most valuable education in your life.  By the end of this academic year thousands of young aspirants will apply for a finance course.  College admission test for admission to one of their financial courses will leverage applicant’s interests and energy.  Admission tests induce students to prepare hard for admission to their choice finance education.  Students are expected to clear the financial aptitude test that consists of critical reading sections.  Aspirants are given simple paragraph tests to measure their general awareness.  The questions would be more financial related and need a bit of maths section.

Aspirants may be required to prepare in questions like population control and census etc.   You would do well with a fair knowledge gained before the entrance on subjects like insurance and plastic cards such as credit cards and debit cards.  Students appearing for the entrance exam would have to clear word problems in maths section. 

Finance certification courses from premier institutes should take you to great heights in your career.  Interest compounding and principles of finance would be the core subject covered in the entrance test.  Students should acquaint themselves in this particular field.  Mock tests and sample tests could prove very effective in preparing for the entrance.  Finance courses in India provide great value to those who have aptitude for a career in finance. 

Tuesday, 24 June 2014

We Can't Rely On Corrupt Police Personnel For Our Security

Corruption is a global phenomenon and none of the country is untouched by the malicious hands of  this burgeoning evil. Police which is believed to be the antithesis of corruption and harbinger of protection is worst affected by this horrifying monster. Need overtaken by greed and protection by threat, then in such a dreadful scenario how can we rely on police  for our safety and protection. The protector of peace and harmony are recruited by the government for maintaining law & order in a region. But, unfortunately it seems that they are only to serve governments and bureaucrats not the common citizens.

Bribe, extortion and wrongful utilisation of power are become the key attributes of our infamous police personnel and a common Indian feels insecure to see these khaki clad men. They work for rich and famous, it is the perception of common people about police forces. Few weeks ago I came through a very usual but shocking news when I was reading the newspaper at breakfast table. The news was, " A person complained against a doctor who is also in realty business, following the case procedures, the police was to send a report to the court, and an Assistant Police Inspector  was assigned to investigate the case. The API then approached to the complainant and demanded Rs5 lakh to send a positive report to the court. 

The complainant negotiated the deal for Rs3 lakh and paid up accordingly." However, the API and constable along with him asked for Rs50,000 more and they had also asked the complainant to handover flat booking receipts worth Rs10 lakh, so that they can recover the amount when the flats were eventually sold. These things frustrated the complainant, who approached the police station and lodged a complaint against the duo. It is not a just incidence, it is the truth we experience every day in our life. 

Saturday, 21 June 2014

India : Growing Economy And Dying Nationalism

The country which fought with British Empire and colonialism for more than a century is still struggling with internal forces which never allowed the India to garner true nationalism even after 67 years of independence. In the past 6 decades country witnesses countless incidences of sectarian violence, communal riots and cultural conflicts. We the Indians always remained engaged for our own sake and not for the nation and whenever we raised our voice and mustered up courage to fight with the system and society, then our struggles were intent to impose our identities rather than securing our rights and the nation at large. Be it terrorism in J&K, Punjab, Assam and Nagaland or rise of communal forces in north India and Maharashtra, we always fought with each other for our religious or cultural identity. Are Muslims not enjoying freedom in India as others? Are Sikhs not thriving economically and culturally? Are Christian not enjoying right to practice and promote the religion? And Are Hindus so insecure that they resorted to form Shiv Sena, Bajrang Dal and many other such radical outfits?

Fortunately a big NO to all such self fabricated, politically motivated and fanatically generated self-imposed nuances. A country which was famous for religious and cultural harmony is now infamous for internal animosities. Unfortunately, we have been parted with each other as per the longing desires of British tyranny. We boast on our economic growth and our corrupt politicians befooling the ill-educated and somewhat innocent Indians showing growth statistics. It is the high time to open our eyes, economic growth and development are two entirely different things. We can't list India among developed countries as we are lacking in most of the development factors such as health, education, infrastructure and safety of women. Yes, it is a paradox, a bitter truth. Do you want to know why India stands on embarrassing positions in many development indices? Just because of us. We are happy to waste our time and resources for irrational causes, rather than working with solidarity to achieve development and to promote nationalism.

Thursday, 12 June 2014

Online Investment: Easy, Effective and Economical

In this information age of the internet and mobile phones, no one can keep oneself away from cloud or social technologies, where Google is our need and Facebook is our identity and no organisation can afford to curtail its needs and sustain in identity crisis. It is the dire need of new age investors to embrace online investment  solutions if they really want to multiply their hard earned money.

Sort out your all investment and financial issues through a few clicks on your computer screen, online investment is a digital gateway into the world of finance and wealth management. At your computer screen you can find comprehensive and feasible financial solutions from home loan to investment in the real estate and from health insurance to selection of a credit card.

These online investment portals are associated with all the major banks and financial institutions in India. They have a team of financial experts and advisers from different backgrounds and specializations, they provide authentic market information as well as best available options to their valued clients. Internet is an advance but friendly medium which not only saves your precious time but also keeps you away from the procedural nuances which you usually face in the banks and at other financial institutions.

Now, logging on these portals you can dispel your worries about the wealth management, availability of adequate working capital to smoothly run your business, can plan for a new sedan, upsurge your savings in mutual funds or gold and can secure yourself through health insurance. If you love shopping then don't suppress your temptation for apparels, electronics and other items of need, just avail a credit card and enjoy hassle free shopping.

Not only this,  you can find a lot on these investment portals. But, beware of fraudsters!

Monday, 9 June 2014

Learning Through Children Makes a Teacher Commendable

A good teacher always learns from the each moment of the life and after getting in touch with the inquisitive children, a teacher often finds himself/herself clueless to their innocent but scientific questions. The solution can lie in dictating ambiguous replies but this way one cannot discourage them to explore the unearthed world.

The positive way to suffice their intellectual needs is to listen them carefully, pursue their quest and anticipate the problems, don't give hasty replies if you are not sure about the right answer. Take some time, catalyze your brain cells with rational sensitivity then ask, why the child had asked this question? And what is the importance of this particular query in the life of this child ? Every child is unique and they think and respond differently. A sensible and affectionate teacher always loves to know each child in a very personal manner and then gives reply with the support of some interesting and lively examples as per his / her psychology and intellect.

Children find themselves in comfort zones when one spares a time to interact with them and specially listen to them, try to know their intra-personal and inter-personal skills, what they says and what they want to say ? Frequent and friendly meetings with a child enables you to interpret the child's personality, interests , inclinations and above all her "Dreams" which pave a path to run and move into the future.
In fact a teacher should be creative enough to mould the discussion or learning as per the demands of an individual child. A friendly approach with a child helps in removing different mental blocks and a caring attitude induces her overall learning growth. A good teacher must invest lots of my time as a passionate observer of children and their learning process, which is not possible from books on child psychology. Yes, learning is a lifelong process, but it should not be imposed or under the strictly fixed format, it should be inviting and embracing.