First published on 20.08.2013 The world economy can be segregated into two parts: First, the interlinked market based economies of the countries/centres mostly following the US model of development, and, second, the islands of nations/regions delinked from the globalised world sustaining themselves on the basis of local resources and development. The Indian economy in the urban centres and the most of the rural centres is now linked to the world…

First Published on 28.02.2013 I have no doubt that this year’s budget speech is very biased. The speech starts with a defensive statement that, given the serious current account deficit problem, there is no choice but to welcome the foreign investments – and, therefore, when he mentions the CAD figure, he mentions it in the USD, clearly indicating the intention to mortgage the Indian sovereignty to fund the CAD. However,…

First published on 22.09.2012 Excuse me for the uncivilized caption, but what I am writing below deserves none better. Notional losses, as the name suggests, means calculation of loss/profit on the basis of some fictional reference point. Year 2004 is the starting point for this non-sense. This is the year when the transformation of India from a License Raj Economy to a Market Based Economy is deemed to have been…

First published on 28.11.2011 Below are the pros and cons of the FDI in retail: Pros – Discounts to the customers esp. in lesser known brands. – Bypassing of the middlemen – Ease of shopping – Possibility of better recourse to law by the customers esp. if some kind of public duty is imposed on the big retailers. Cons – Breaking up of the traditional debit model of the Kirana…

First published on 17.03.2012 A lot of importance is attached to the Union Budget. In a way, it is good because, this way, lazy people like me update themselves with the reigning perspective of the government towards development; however, otherwise, it is supposed to be just an accounts statement. For development, of course, the revenues ought to be generated and accounted for in the budget estimates; however, as a common…

Various reasons have been offered for high inflation in India. Let me take up each of them and demolish it. Recession It is being said that the inflation in India is the direct result of the Global Recession, which is false. The inflation in India is linked to high food prices. The food prices in the USA have been falling as a result of the Global Recession; the USA is…

The Indian society has started walking on a path where the economic culture and the social culture are becoming synonymous. The status of a person is known by what he earns, and it doesn’t matter whether the earning is legal or illegal, moral or immoral. The status of a politician/government servant is known by the kind of bribe he demands. The status of a businessman is known by the assets…