Hi friends...
In this post I am going to tell you about Cyrus Pallonji Mistry,the anointed successor of Tata Group succeeded by Mr.Ratan Tata.
The history of tata group is as follows..:-
Jamsetji Nusserwanji tata-(1887-1904)
Sir dorabji tata-(1904-1932)
Sir nowroji saklatvala-(1932-1938)
JRD tata-(1938-1991)
Rattan Tata-(1991-2012)
And now Cyrus Pallonji Mistry who has the responsibility of Tata sons which has 100-odd companies withing the group,with revenues of $83 billion.it controls 31 publicly listed companies with a combined share holder wealth of $77 billion.
There have been rumours that Noel Tata could be the new successor, In the end, he lost out to his brother-in-law .The reason given for that was that Noel Tata could expertise his skils only in retail marketing.
And Cyrus Mistry has multi-faceted business expertise. He’s a commerce graduate from the University of Mumbai, Cyrus Mistry went on to pursue an engineering degree from the Imperial College, London, and master the science of management at the London School of Business and he he joined as a board member of Tata Sons in September 2006.
Mistry is also the chairman of Afcons Infrastructure, which is into mega civil and engineering projects. He is also on the board of various major companies. He has served as a non-executive director of Forbes Gokak Ltd. and was associated with Convergence Media Pvt. Ltd. as senior vice president, operations and planning, and UTV Toons India. He has over two decades' experience in the Indian entertainment industry in the fields of filmmaking and animation, technical and production pipeline management.
Now comes the question whats in store for Mr.Pallonji ??
The big players are namely
Tata Motors
Tata Steel
Tata Consulatancy services
Tata Power
Tata Communications
Tata Chemicals
Tata Industries
Tata Global beverages
Voltas
Tata Teleservices
The starting journey can be a little difficult because the world has dramatically changed and continues to change, with the next decade being characterized by slow growth and Globalization is like gravity. You can't deny its existence, you have to harness its full potential  and Then there are three significant roadblocks in front of India as a country - corruption, infrastructure and poverty. What must the Indian corporate do to alleviate poverty , attack corruption and build world class infrastructure? The Tata Group has a rich history, enormous capabilities and a strong balance sheet. Mistry has to build upon the enormous assets of the Tata Group as he reinvents the company.
Hope for the best for Ratan Tata's successor at Tata Sons & Pallonji group scion who is going to be a legacy in Indian economy…
Take care…

Rupee and dollar conundrum…L

Statistics for today-

Sensex down by 365 points and few days back it was down by 425 points and we can see some further drop also..

1 Dollar is at rs.52

Now what is driving this rush in rupee-dollar…???????

Tentatively supply and demand fixes the value of dollar. In the market if rupees are more and dollars are less, then price of dollar will automatically go up.

The rupee is under pressure as foreign investors are paring their exposure to Asia's third-largest economy amid global uncertainty and mounting worries over the domestic economy

The main factors that influence the value of currency are:-

First factor: Expected “inflation” difference between two countries….inflation causes money to lose value over time, and now more of people wants to hold dollar and since the inflation rate is lower in USA, people wants to hold more of dollar and so it will be worth more if currency is converted to dollars.

And dollars has the universal acceptance so everyone wants to sell rupee and buy dollars.

Second Factor: GOLD

How gold affects currencies

All the currencies are backed by gold,and  a country that exports gold or has access to gold reserves will see an increase in the strength of its currency when gold prices increase, since this increases the value of the country's total exports.

Interest rates and economic durability also play a role in exchange rates.

By economic durability I mean the ability of an economy to react and adjust to acute and chronic disturbances in the most efficient manner.

Effects

Software exporters gain
Indian companies selling their services abroad too stand to benefit with each appreciating dollar or any other currency which is on the rising spree against the Indian rupee. IT major Infosys and Tata Consultancy are among some of the companies, which sell their services abroad.

But fall in rupee is likely to affect a vast majority on Indians in the form of higher oil prices. Since India depends on imports for 80 per cent of petroleum products requirements, rise in oil import bill will be passed on to the consumers. In fact, oil companies cited depreciation of rupee as the main reason for the petrol price three weeks ago. 

If rupee continues to fall, the government could be forced to raise prices of diesel, kerosene and LPG, adding to the overall inflation further.   

Those planning to buy consumer durables such as cars, television sets, computers, mobile phones and the like should also finish shopping fast as imports of raw materials for these articles are expected to cost more with every rise in dollar as appreciation of the currency putting severe pressure on companies which import substantial amount of components from overseas. 

and even some of you who are planning for MBA/MS abroad..its gonna cost more..

hope that economy handles this time well..

take care..:)

Hey friends..
Wishing you a Happy and Prosperous Diwali...:)
Apart from Diwali what other things which is going on....CAT,GMAT etc etc...
But what about jobs which we think are hit very badly due to the adverse conditions going in Global Economy..
According to the latest news and data received by Bank of America and other agencies  United States will likely suffer the loss of its triple-A,credit rating..which would be second downgrade..
US deficit will be around $1.2 trillion by november 2011.
in this year 2011 their GDP was as follows:-
2nd quarter 2011: 1.3 %
1st quarter 2011: 0.4 %
Their trade deficit for month of august 2011 was $45.6 billion
If I elaborate it more it would be something like
Total August exports of $177.6 billion and imports of $223.2 billion resulted in a goods and services deficit of $45.6 billion.
High unemployment rates,sovereign debt concerns, slowing growth, and political activism in many countries are generating opposition to outsourcing.
One of the major sector would  be IT(information technology).But as far as our scenario is concerned it would be hit somewhere around 25% or may be a little more than that...
However, the country's two largest software exporters, Infosys and TCS, remain confident of withstanding another downturn.
"It is too early to say. There are fears of another recession in the US and a debt crisis in Europe," Infosys CEO and MD Kris Gopalakrishnan said.
If I go into details these big players like TCS,Infosys,Cognizant,Wipro sees no proper cause of worry due to recession.
Infosys Ltd , India's second-largest software services exporter, expects revenue growth of 15 to 20 per cent in its business process outsourcing (BPO) arm this fiscal year.The outsourcing industry lobby group National Association of Software and Services Companies (NASSCOM) figured export revenue growth surge of 16 to 18 per cent for the year to March 2012.India's outsourcing sector, which employs close to 835,000 people and accounts for more than a third of the global back-office market, generated export revenue of $14.1 billion.
The largest Indian IT companies have strong margins, are cost-competitive, and have proven delivery models. These attributes will help them to weather uncertain and volatile demand.
so i guess we should not worry about anything..be optimistic...
n Enjoi...again wishing you a safe and Happy Diwali..tc..:)

The legacy a true leader would like to leave behind is that we would like to make a difference in the quality of life of the people...
We lost a legendary leader on 5th oct,2011 who does not require any introduction..Mr.Steve Jobs
The backbone of Apple Corporation who made so many remarkable changes in technology and brought a revolution in gadgets..let it be i-pods,i-phones or i-pads...
Steve Jobs who used to think differently and who have an edge above all...
He made digital technology made familiar among the masses,his elegant products captured The world wide attention..
The noteworthy products launched by Steve Jobs are :-
1.Apple II Personal Computer-june 1977
2.Apple Lisa II Personal Computer-this was name after job's daughter..it didnt succeed because it was very expensive..1983
3.The Apple Macintosh-this introduced the graphic user interface to the world in year 1984 and marked the beginning of personal computers and inspired the upcoming of other operating systems.
Due to some ineffective cost operations,he hired John Sculley from Pepsi..but While Jobs was a persuasive and charismatic director for Apple, some of his employees from that time described him as an erratic and temperamental manager. An industry-wide sales slump towards the end of 1984, caused a deterioration in Jobs's working relationship with Sculley as well as layoffs and disappointing sales performance. An internal power struggle developed between Jobs and Sculley..After battling with CEO John Sculley for control of the company in 1985, jobs resigned Apple Corporation n den return again in 1997..
In between jobs brought the graphics group later named pixar and made many changes in animations and graphics of many holloywood movies..
and when he joined Apple Corporation again in 1997 and in near 2000's and after that came i-pods,i-phones, and i-pads which we all are familiar with...
and you people probably know more than me...
One of Jobs greatest accomplishment was to combine things in ascetically pleasing ways. For instance, the iphone is a: phone, mini-computer, camera, video recorder, and organizer. And if we include apps, then it is so much more - a translator, dictionary, cook book, game console, etc. It also looks great. To do this required incredible creativity. He was a genius. He will be missed...

Markets in Blood Bath.....:(

Today Indian Markets plunged again by 704 points after 2 years.
SENSEX-16361
NIFTY-4923
Its second lowest in history of Indian Markets after the downfall by 800 points in 2008 on account of Satyam Scandal and US recession (Lehman Brothers Collapse)...
this world economy will take us no where...USA as we know is already in double dip recession,taxes are not being paid,jobs are slashed.
Recently,in a meeting of federal open market committee they discussed the negative outlook which they are observing
Next if we talk about euro-zone there  policymakers have repeatedly followed the wrong policy shifts, creating a situation in Europe "more dangerous" to the global financial system.
Economists and Chinese officials have widely predicted China's growth will slow, largely because of waning exports and like India ,China's central bank has raised interest rates five times on account of inflationary measures.
European markets like France's CAC, Germany's DAX and Britain's FTSE were down 4% each, at the time of closing of Indian equities. Asian markets closed 2-5%. The Dow Jones futures fell 1.5%.
The depreciating rupee is a factor that is working against India,today rupee closed at 48.96 per USD which will affect Indian imports drastically.
Gold prices fell by Rs 160 to Rs 28,340 per 10 grams.If we see the precise numbers  investors suffered a whopping loss of over Rs 2 lakh crore in the stock market.
phewwwwww..that was all for today which was I guess a total noteworthy day...
I wish this festive season will bring a positive uptrend in markets...
God Bless..
take care..:)

hiee friends...
first of all..A good news..I am placed in Infosys....
now next thing comes...where are we heading too..not we actually...our economy specially Euro-Zone and USA.......Euro-Zone is on the verge of collapse..
the pressure if we see is increasing tremendously...the reasons may be
1.Market pressure on Italy and Spain rises with borrowing costs 
 2.The United States' top credit rating is cut for the first time ever, triggering turmoil on the financial market
3.Concerns emerge that France could be the next country to suffer a top credit-rating downgrade.
4.European stocks have tumbled by about 4.0 percent. and Euro zone inflation steady at 2.5 per cent
5.Gold jumps to a record high price of $1,921.17 an ounce. 
6.Greece announces new budget cuts totaling about two billion euros, with renewed rumours of a debt default or Greece's possible exit from the Eurozone. 
7.The eurozone's current account balance worsened in July to a deficit of 12.9 billion euros 
deficit-difference over earnings and expenditure..i.e, earnings is less by 12.9 billion euros than expenditure...
hope I made my point clear...
n the question..what's aggravating the situation ..??
Italy -- the euro zone's third largest economy but these Italy's struggling to get back the investor's confidence and moreover they have asked help from China.So that China may buy Italian assets and stabilize the euro-area.According to the new data,Italy has sold its assets worth 3.9 billion USD.
Expert statements
Polish FM said "if the economic conditions would not recover ,then world war III is expected."


IMF chief Christian Lagarde said "our economy is a dangerous new phase,worsened by feeble political leadership, with deepening uncertainty over the most heavily indebted governments."


European Central Bank chief said "threats to the euro region have worsened and growth rate is reduced to 1.6 %.
Now comes the other news which came into picture was...Other Countries are saying that Greece must exit from euro-zone.
For recuperating from this crisis a strong base is needed.The most strong economy is euro-zone is Germany and second is France. They have already given certain bail-out packages for this crisis and they have ensured their further support too along with that The IMF is taking a key part in last year's 110 billion euro ($151 billion) bailout of Greece, but is still analyzing Athens's progress before releasing a new tranche of funds to the government. 
Let's hope the situation does not get bad to worst...
Take Care...:)

Hey friends..

Hope you all are having great time...!!

So wats up these days....

rather my question should be...

Whats up with Slow down or Recession that was expected..??

First talking about the Recession or Slowdown that has hit the economy world wide let it be USA or Euro -Zone..

In the last post as I stated that S&P has reduced USA ratings from AAA to AA+ on account of debt-ceiling crisis..

One thing I can Say is US, European economies still tenous. In USA The growth expectations are downgraded because of expected slower pace of income and spending growth and the rate of U.S. hiring slowed and the jobless rate,exceeds 9 percent.

About Euro-Zone crisis I can say that The GDP growth estimates are reduced by a full percentage point for this year and the next year owing to softening domestic demand in the core countries. This could affect the euro area as a whole, slowdown in global trade momentum marked by deceleration in manufacturing indicators, difficulties faced by banks in accessing term funding at reasonable rates and likelihood of increased funding costs that could impact investment projects.

The saviour factor for USA would be last round of Quantative Easing(QE),which will keep the interest rates low till 2013 and thereby lifting the economy and Federal Cheif Ben Bernanke has stated Strong fundamentals will drive US out of recession.Their exporting market is largest,and the recovery there is modest.

and the redeeming factor for Euro-Zone would be they have taken very important steps. Many countries have announced additional austerity measures and are accelerating their deficit cuts. The other thing they have done is to agree to increase the flexibility of the European stabilisation fund and according to European Financial Stability Fund and Deutsche Bank central bank toolkits will be able to keep banks alive, at the cost of interest margins and reduce the amount of investment funds that are borrowed.There banks may likely face some problem but Liquidity crisis unlikely to hit European banks.

and and and other thing..gear up for placements..All the Best...Do well..!!!!

There is an old saying on Wall Street that the market is driven by just two emotions: fear and greed.

One of the best sayings by Warren Buffet is :"Be fearful when others are greedy, and be greedy when others are fearful."

The situation may be critical to understand but then the message conveyed over here is that

Scenario 1

When people are greedy and things go higher.There is a desire in people to make money which ends in selling and when it reaches a saturation level.It starts coming down.Investors get caught up in greed (excessive desire).

Scenario 2

In simple words I can say that the lower things go, or When stocks suffer large losses for a sustained period, the overall market can become more fearful of sustaining further losses and taking advantage of such situation an intelligent investor can buy.

In my previous post as I said USA will lose its AAA rating that means the best one..

It happened actually S&P has reduced their ratings from AAA to AA+ which resulting in plunging of stock markets world wide.

Now i think i should throw some light on AA and AAA+

What Does AAA Mean?

It means the country who holds this rank has extremely strong capacity to meet its financial commitments. 'AAA' is the highest issuer credit rating assigned by Standard & Poor's.

what does AA+ means ?

The meaning remains almost the same but it shows high quality, with very low credit risk, but susceptibility to long-term risks appears somewhat greater.

and the bottom line is whether US hold an AAA or AA+ rating, the difference didn't seem to matter and chances of recession happening are 1 in 3 in next coming 6 months.

As far as Indian markets and companies are concerned I think they just over-reacted to the US downgrade.

But they recovered well which was driven by a combination of factors:

The government's efforts to reassure the market with talk of the limited impact of the downgrade on our own growth, some dutiful buying by domestic state-owned players like LIC, UTI and nationalized banks.

Moreover we don't have depreciated currency value and reserves like USA.

Indian economy as well as the world economy wont be hit so hard with this event.Although I came across the fact that hiring by Indian IT's and other banks will be reduced only by 10 % on account of this world crisis.

But this wont have much of the adverse effects on India..

So relax and we should be proud on what we are..

HAPPY INDEPENDENCE DAY...n good luck..:)

Hey friends..

Presently we can see us grappling with debt crisis...

When Bill Clinton left the white house the American govt had surplus..n so had the title of super power..but after that when George bush came into power the expenses were like

1.Medicine -$180 bn

2.TARP -$224 bn

3.Discretionary -$608 bn

4.Stimulus -$773 bn

5. Defense-$1469 bn

6.Tax cuts -$1612 bn

and the projected spending of Barrack Obama includes

1.Medicine -$152 bn

2.Discretionary -$278 bn

3.Stimulus Tax cuts -$425 bn

4.Stimulus Spending -$711 bn

What Does Default Mean?

In simplest words i would say the failure to promptly pay interest or principal when due..

What is Debt Ceiling ?

The legal limit on borrowing by the federal government.The United States Constitution gives the Congress the sole power to borrow money on the credit of the United States.Before 1917, Congress had to approve borrowing each time it came up. In order to allow for more flexibility as the nation entered World War I, lawmakers agreed to give the federal government blanket

approval for most types of borrowing — as long as the total was less than an established limit.

problems affecting now.The nation’s debt is nearly closer to the legal limit of $14.3 trillion.

In the near time if this will be breached then I think effects will be worst which includes:-

1.The new debt deal formed by Barrack Obama raises the debt ceiling by $900 billion to $17.7 trillion.

2.It cuts spending by $917 billion over the next decade and a special congressional committee will be assigned to find another $1.5 trillion in deficit savings by late November.

3.If Congress comes up with the savings, or passes a balanced-budget amendment to the constitution, the government will accrue another $1.5 trillion boost the debt ceiling - sufficient to pay the country's bills through 2013.

4.If Congress fails, the president will be granted a $1.2 trillion debt-ceiling extension - but automatic, government-wide spending cuts (half of which will come from the defense budget) will take effect in 2013. There will be no automatic tax increases.

But this debt crisis is the best thing that has happened in a very long time!

Why?

Because it woke up the world, especially Americans. We gazed in astonishment as the blind idiosyncrasy of the USA,unfolded. The truth spilled out, covering the loopholes of the government along with that USA is threatened to lose its AAA rating...basically world's super power rating essence on Indian Economy primarily US debt crisis unlikely to impact Indian economy but as far as I see the domestic economy is not insulated from the world economy, there will definitely be some tremors here in India. Both imports and exports will be impacted. India’s exports to the US, particularly IT services, will have an adverse impact.

Any slowdown in the US will have an impact on India in terms of our ability to export..as during 2008-09 there was a sharp decline in Indian exports..but at the same time we can see appreciation of the rupee, which in turn will help bring down the current account deficit...

But still we can see downfall of economy as well as politics tooo...

so hope for the best and next time when the share markets falls there is an amazing opportunity to buy and make profits...

good luck...take care...:)

Metamorphosis of Indian Economy

contd....

In 1991 when Dr. Manmohan Singh became the finance minister there were numerous changes which are as follows:-

1. Companies were freed from unnecessary restrictions and import of raw materials, machinery as well as consumer goods became much easier.

2. Foreign investment became popular leading to rise of foreign currency in India.

3. Securities and Exchange board of India (SEBI) and other Public Sector Units (PSU) also became integral part.

4. The term Liberalization, Privatization, Globalizationc(LPG) changed the aspect of Indian economy, because it restored the confidence of creditors and also maintained the currency reserves and rates.

5. Enhancing productivity promoting an employment oriented pattern of industrialization thereby attracting foreign investment.

	Variable	1993-94	1999-2000
1.	Total employment	375 Million	397 Million
2.	Unemployment rate as measured on the basis of current daily status C.D.S	6 %	7.3 %
3.	Rate of growth of employment per annum	2 % (1983-93-94)	1 % (93-94-99-2K)
4.	Number of employed workers in the agriculture sector in Millions	242	238

After that Privatization of banks and telecommunication sector flourished in the late 1990’s under administration of Mr.Vajpayee. India’s Gross National Income is only $477.4 billion till 2003-04.The real GDP growth in 2007-08 to be around 8.5 per cent before recession. Cities like NOIDA, Gurgaon, Gaziabad,Bangalore, Hyderabad, Pune, Chennai and Ahmedabad have risen in prominence and economic importance, become centers of rising industries and destination for foreign investment and firms.

Presently as we all know india is the second fastest growing economy after China and already the fourth largest economy in 2001 after the U.S., China and Japan.

As far as I see India would be the financial super power by 2040 because of its huge human resources, rapidly upcoming service sector, availability of large number of competent professionals, vast market for every product, increasing impact of consumerism, absence of controls and licenses, interest of foreign entrepreneurs in India.

Metamorphosis of Indian Economy

Recently there was a very popular message circulating on cell phones

In 1990-samosa was 1 rs and call was rs.7

In 2011-samosa is rs.7 and call rs.1

Inflation is same but rates are shifted somewhat….

Message was nice though…

No doubt we have seen a paradigm shift as compared to 1990 to the present time..

We all are aware of India’s condition after independence.we were totally ruined and our economic condition was at its worst.

Welfare of the country and making and economic democracy was the main thing in India at that time.Our first prime minister pundit Jawaharlal Nehru wanted India to be a self sufficient company and started central govt planning on account of soviet union(Russia).The first five year was started in 1951.no doubt they tried to make lots of changes in terms of industry and growth.

But as far as I see the major reforms started in 1971, under Nehru's daughter, Indira Gandhi, the Government tried to eliminate poverty by promoting small, labor intensive enterprises. One of the most wonderful things to happen to the world was the genetic development of high-yielding grain varieties, the Green Revolution, under- ground nuclear tests and development on defense took place in 1974 along with development of various large scale industries.

All these changes were followed by economic reforms by Rajiv Gandhi.as he himself was Imperial college pass out, so when he came to power he increased government support for science and technology and associated industries, and reduced import quotas, taxes and tariffs on technology-based industries, especially computers, airlines, defense and telecommunications.

India was a latecomer to economic reforms, embarking on the process in earnest only in 1991, in the wake of an exceptionally severe balance of payments crisis which will be covered in the next post..or I can say coming up soon…..

hey...:)

Cabinet is reshuffle again after january.........

some ministers are promoted and some are thrown out too like Dayanidhi Maran (Textiles) resigned in the wake of his being named in the 2G scam and Murli Deora(Corporate Affairs), M S Gill (Statistics and Programme Implementation), B K Handique (DONER), Kantilal Bhuria (Tribal Affairs) are the others who were dropped out of the cabinet..

Heading the annoyed Congress ministers Gurudas Kamat resigned as Minister of State after the reshuffle as he was unhappy after the decision made.

List of new cabinet ministers are...

1. Parliamentary Affairs- Rajiv Shukla

2. Railways-Dinesh Trivedi

3. Science and Technology, and Earth Sciences-Vilasrao Deshmukh

4. Steel-Beni Prasad Verma

5. Environment and forests-Jayanthi Natarajan

6. Health and Family Welfare-Sudip Bandopadhyaya

7. Home-Alwar MP Jitendra Singh

8. Communication and IT-Milind Deora

9. Rural Development-Jairam Ramesh

Manmohan Singh did not touch the 'big four'--finance, home, defence and external affairs--and also kept four ministries, including telecom and civil aviation...

hope this change is for goood.......!!!!!!!!!!

RBI hiked interest rates by 25bps for the 10th time in 16 months as it resists handling the mounting inflation. The RBI has raised the short-term lending (repo) rate by 25 basis points to 7.50 per cent and the short-term borrowing (reverse repo) rate by a similar margin to 6.5 per cent.
The purpose of hiking interest rates is to reduce the money supply to the public. Higher rates of interest implies that borrowing will not be easy for those who wish to invest in new industries, expand existing infrastructure, purchase houses or vehicles, etc. This has a negative tendency of slowing down growth
Like the markets reacted very negatively to this act and this latest hike will further dampen the auto sector because industry is already under pressure and this fresh step will further worsen the condition, followed by high inflation and high fuel prices.
Other factor which affected world markets and currencies was rate hike by China and Australia is on the cards which resulted in weakening of Euro and Dollar.
Finally coming back to Indian Scenario, Dalal-Street experts see Sensex sinking to 15k by December 2011. Investors worldwide are more risk-exposed because of the European crisis and this will result in the market trending lower over a period of time. The majority of the factors affecting inflation are given out from a gush in prices of imports and exports which RBI is not able to handle ad so it should wait and watch more local and global data before taking further actions.

What’s on economy these days…???

Inflation petrol prices all time high and European zone debt crisis..Most importantly RBI hiking rates again and again and because of that we see share markets coming down and almost all the industries in the country are getting affected.

First of all if we’l talk about European sovereign debt crisis or Greek Debt Crisis particularly.

In 2010 the debt crisis was mostly centered on events in Greece followed by Ireland and Portugal the most..they have 'credibility problem', because they lack the ability to repay adequately due to their low growth rate, high deficit, less investments etc. On 2 May 2010, the Eurozone countries and the International Monetary Fund agreed to a €110 billion loan for Greece, conditional on the implementation of harsh Greek austerity measures. The Greek bail-out was followed by a €85 billion rescue package for Ireland in November, and a €78 billion bail-out for Portugal in May 2011.

If we see the present situation Greece’s 18-month sovereign debt crisis brought the government to the brink of collapse.

Along with that the fall of the Irish and Portuguese governments in recent months has driven the countries into bankruptcy. Despite the sharpening sense of urgency, European Union governments, the Europe Central Bank, and the European Commission remained gridlocked over how to respond to the debt emergency, which pushed Greece closer to sovereign default and Europe towards a fresh banking crisis. These borrowing costs soared to record levels as investors took fright which resulted in suffering for global stock markets

Albeit Germany has back tracked from this Greece crucial stage while promising a debt compromise plan but Till date European Central Bank, IMF, Bank of England are trying to take out possible measures for dealing with this problems. e.g

The 17 Eurozone finance ministers has structured a new three-year bailout for Greece in Luxemborg in a way that would persuade European banks, pension funds and other private creditors to roll over the country's inflated debt releasing bailout package of 110 billion Euros (159 billion dollars).

All these steps are taken with a hope that it will solve the Greece debt soon and thereby improving their economy.

Hey friends…

Few days back we got to know about the 9^th rise in the Repo and Reverse rate by Reserve Bank of India (RBI). Generally the people were very agitated after this act of raising rates, also the share markets showed a very negative impact with a downfall of 460 points that day.

RBI is a very proactive institution of India which focuses more on growth of the country.

Now if we consider the present inflation scenario, ultimately its affecting the growth factor.

Inflation is reached new levels (8-9%) which is at the end hampering the development.

Inflation can be due to many reasons such as currency difference, supply-demand mismatch. In India the prime reason is supply-demand mismatch. Due to increasing population demand always rises and due to some or the other reason supply is always constrained i.e. Due to less supply, more demand the prices of a commodity increases thereby causing inflation.

So in such kind of cases the inside situation is the producer knows that the consumer has money and the consumer needs the product no matter how costly it is so taking the advantage of circumstances they increase the prices which leads to price rise and hence inflation.

RBI in order to control prices increases the repo rate i.e. the rate at which RBI lends money to banks.

When banks will get money at a higher rate from RBI then they will lend it an advanced rate topeople which will ultimately increase their EMI or take their liquidity which will lower the prices. As in when consumers will have less money, demand of a commodity goes down which will eventually control the prices.

e.g. a person has surplus money ,he is getting loans at a very low rate from bank so he’ll go and purchase say three flats because he’s getting money very comfortably but if he won’t get loan so easily and when he’ll get that too at a very high rate so he’ll buy only one flat which reduces the demand for flats and thereby dwindling the costs.

Through this post I just wanted to convey that all we do is blaming RBI and other policy makers but without knowing the inside story.

RBI is taking good measures and I don’t comment on politicians but personally RBI is doing well..

Thanks

Take care..:)

Hello friends..hope you are njoyng..:)
In today’s scenario both India and China are amongst the top contenders of global economy and are the world's most assorted nations. Still, if we try to analyze the different economic and market vogues , we can make a contrast between Indian and Chinese economy.
If we see past few years,Trade between India and China stood at $42.4 billion in 2009-10
Of this, import to India was of $30.8 billion, while the country exported goods worth $11.6 billion to China.
China is still a much bigger economy than India, even though the two countries have roughly similar numbers of people
According to a report on Asia’s middle classes this year, India still has about 650 million people living on under $2 dollars a day measured in 2005 while China now has less than 100 million living on that amount
Some important facts and figures related to India and China are as follows:-

Facts
1.GDP

India $1.3123 trillion

China4909.28 billion

2.GDP growth

India 8.90%

China 9.60%
3.Per capital GDP

India $1124

China $7,518
4.Inflation

India 7.48 %

China 5.1%
5.Labor Force

India 467 million

China 813.5 million
6.Unemployment

India 9.4 %

China 4.20 %
7.FDI

India $12.40

China $9.7 billion

Foreign Direct Investment
8.Gold Reserves

India 15%

China 11%
9.Foreign Exchange Reserves

India $2.41 billion

China $2.65 trillion
10.World Prosperity Index

India 88Th Position

China 58th Position

Other add-ons of China
1. Fastest speed train.
2. World manufacturing hub.
3. Own plants for making air planes.
4. Own arms and weapons manufacturing unit.
5. Well developed Telecom companies.
6. Top performer in Sports at world events.
Indians buy aeroplanes , weapons from foreign companies ,our chemical industry is heavily dependent on Chinese and Japanese imports.In matter of sports we are never on top 5 at world events e.g. India hosted the Commonwealth Games in October, China hosted the Asian Games in November but the news coverage of the Indian Games was rife with words like “delays,” “corruption,” “shambles” while China, it appeared, had lovely, shiny venues ready to go about five months ahead of the event.
One of the biggest firm Reliance just gave billion of dollor worth order to china for its power plant but not to BHEL, its we who are making other countries stronger by not working ourselves self dependent.
In order to be considered a developed Country, India needs to focus on the common man. On the prosperity of the general public and on the living conditions that its residents have to face.

some other parts that can help
1. Improve governance and young people in politics
2. Raise educational achievement and increase quality and quantity of universities
3. Control inflation along with introduce a credible fiscal policy
4. Liberalize financial markets and monitoring on foreign investments by bilateral trade
5. Increase agricultural productivity
6. Improve infrastructure and improve environmental quality.

India is well on the way to becoming an Economic Super Power by 2020. India will have a large enough economy forecast at around $ 10.8 Trillion. By 2020 India would be well considered a major global economic player and should have a well developed Infrastructure and production capacity with a much larger skilled resource pool with a comparatively young (median age).

Shift in Infosys management panel…

Infosys

Infosys was founded on 2 July 1981 by seven entrepreneurs, N. R. Narayana Murthy, Nandan Nilekani Krish Gopalakrishnan, S.D. Shibulal , K Dinesh with the present value of $6 billion.

Narayana Murthy who was the founder of company,needs no introduction, he started the company by borrowing Rs.10,000 from wife Sudha Murthy will retire in in august 2011

Nandan Nilekani was of the originator of Infosys became the CEO of Infosys in March 2002, taking over from Murthy. Nilekani served as CEO of the company from March 2002 to April 2007, when he relinquished his position to his colleague Krish Gopalakrishnan, becoming Co-Chairman.He left Infosys on 9 July 2009 to serve as the chairman of the Unique Identification Authority of India.

Krish Gopalakrishnan another founder Infosys Technologies Limited. The initial years of his responsibility at Infosys included management of design, development, implementation and support of information systems for clients in the consumer products industry. But after he took over as CEO and MD his functions included Customer Services, Technology, Investments and Acquisitions.

S.D.Shibulal,was supposed to be the best niche for this place. He’s the co-founder of the company. On June 22, 2007, Shibu took over from S. Gopalakrishnan as Chief Operating Officer. According to the company website, Shibu's focus has been on increasing competitiveness, improving customer experience, enhancing employee engagement and increasing the depth of services.On April 30, 2011, Shibu took over the role of Chief Executive Officer.

This was about the creators of Infosys and the deciding panel for choosing new CEO and MD was laid by Jeffrey Sean Lehman. He stated this thing Narayana Murthy's successor is not his replacement.

But now finally KV Kamath appointed new chairman of Infosys, Shibulal new CEO functioning from 21^st august,2011.

He is the non-Executive Chairman of ICICI Bank, the country's largest private lender. KV Kamath was a natural choice as he was a non-IT person and he has a very acute mind he would have the same kind of keen sense in the business even if he was from the IT industry.

Shibulal as already mentioned is a person who will ensure that his leadership transition is smooth along with making other organisational changes to strengthen our market position and ability to serve our clients better.

While Krish.Gopalakrishnan continued to hold his position as Executive Co-Chairman of the company and will work on enhancing customer, employee and investor connect ensuring that this company moves forward in the strategic direction that it has been set.

According to Mr.Murthy he’s leaving his company in capable hands These three leaders meld an extraordinary range of talents and experiences with a united commitment to drive the company... We could not be in better hands…