by Eklavya on March 20, 2010
These days if you happen to meet any common citizen of India and ask him about the most annoying, painful and consistent problem he is facing these days, in all probability, a majority of Indian citizens will say- “It’s huge rise in prices of common food items of daily needs”.
Believe it or not, but in India, inflation is taking it toll on each and everybody. Except for the privilege few – most Indians are feeling the heat in their domestic front. The prices of all food prices – be it vegetables, Fruits, Dairy Products, Cereals or You name what – almost every food item has become costly. The budget of most Indian family has become extremely tight and many people are making daily adjustment in their needs and demands.
So why food items have become so costly in India? Is it a conspiracy by traders/black marketers who have hoarded most of the material in their hidden shops ? Or is it a game plan by all the opposition parties in India? Or a Divine but cruel justice for our collective sins?
You may guess any of the answer you want. But the fact is that this entire problem has its roots in our failure and gross negligence to give the Agriculture- the due importance it deserves.
Do you know that :
According to the World Bank, transporting grapes to the Netherlands from India costs more than twice as much as transporting them from Chile, even though Chile is twice as far.
This year (i.e. in 2010), for the first time in the country’s history, India’s factories may contribute more to GDP than its farms, forests and fisheries.
The above two basically are part of an extremely interesting and informative article recently published in The Economist’ on the state of Indian Agriculture which explains all.
Read the story here : Agriculture in India : Crop circles
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by Eklavya on November 3, 2008
Owing to the recent mess in the stock market, often our discussion in office revolves around falling stocks of Indian companies. Just a few days ago when we were involved in one such discussion, one friend guessed about what Warren Buffet must be doing these days. After all, this legendary investor, who became world’s richest man this year, has earned his fortune in share markets.
We could only make some wild guesses about him. After all, he has huge financial resources with him and can easily withstand any crisis. However, we all were agree that this smartest investor on the planet must be exercising caution in buying share during these trouble times.
How wrong I was. Recently I came across an article on the current economic crisis written by Warren Buffet himself. This article is an eye opener for many of us who have become a victim of what many expert are describing as ‘irrational pessimism’. [click to continue…]
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by Eklavya on October 18, 2008
These days the most talked about news is the current financial crisis that has engulfed the world economy. Every day the main headline of all newspapers is about our falling share markets, decreasing industrial growth and the overall negative mood of the economy. For many people an economic depression has already arrived whereas for some it is just round the corner. In my opinion the depression has already arrived and it has started showing its effect on India.
So what has caused this major economic upheaval in the world? What is the cause of falling share markets the world over and bankruptcy of major banks? In this article, I shall try to explain the reasons for recent economic depression for all those who find it difficult to understand the complex economics lingo and are looking for a simple explanation.
It all started in US…
In order to understand what is now happening in the world economy, we need to go a little back in past and understand what was happening in the housing sector of America for past many years. In US, a boom in the housing sector was driving the economy to a new level. A combination of low interest rates and large inflows of foreign funds helped to create easy credit conditions where it became quite easy for people to take home loans. As more and more people took home loans, the demands for property increased and fueled the home prices further. As there was enough money to lend to potential borrowers, the loan agencies started to widen their loan disbursement reach and relaxed the loan conditions. [click to continue…]
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by Eklavya on January 29, 2008
Every dark cloud has a silver lining
A US depression is on anvil. Though not confirmed but in a hush hush way it is becoming the talk of the town. According to many experts the Depression in US Economy has already arrived. The mess of subprime mortgage has become somewhat unmanageable and is slowly taking the US towards an economic recession. The federal Bank of America is trying hard to keep this situation under control. The recent reduction in interest rates and announcement of relief package are some of the steps taken in this direction.
However, this US depression is affecting the world economy in a big way. US investors, in fear of a deep recession, want to liquefy their assets and, therefore, are making heavy selling of their stocks. This has affected the stock markets of entire Globe. The Indian stock market is no exception. During the last 10 days, it experienced it’s biggest one day loss and gain. The market is very uncertain and nobody knows exactly where it will head in the days to come. Owing to such fluctuations in the market, millions of small investors in India have lost their money and sleep.
No matter how bad the situation appears as of now, I want to tell something which is quite obvious yet very few people are talking about it: the positive effect of this US depression for India. Let us understand this in some more detail. [click to continue…]
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