Overview of the Indian Economy

Overview of the Indian Economy The Indian economy has shown a remarkable growth after the adoption of liberalization policy. The opening up of the Indian economy in the early 1990s led to increase in industrial output and simultaneously raised the inflation Rate in India. There was an immense pressure on the inflation rate due to the stupendous growth rate of employment and industrial output. The main concern of the Reserve Bank of India (the central bank) and the Ministry of Finance, Government of India was the prevalent and intermittent rise of the inflation rate. Increasing inflation rate could be detrimental to the projected growth of Indian economy. Thus, the Reserve Bank of India was putting checks and measures in various policies so as to put a stop to the rising inflation. The Indian business community and the general public were assured by the central bank that the inflationary rise was harmless but still certain apprehensions existed among them. The pricing disparity of agricultural products between the producer and end-consumer was contributing to the increasing Inflation Rate. Apart from this the steep rise of prices of food products, manufacturing products, and necessities had also catapulted the Inflation Rate. As a result of all this, the Wholesale Prices Index (WPI) of India reached 6.1% and the Cash Reserve Ratio touched 5.5% on 6th January, 2007. The Reserve Bank of India gave top priority to price stability in its recently drafted monetary policy so as to arrest the panic and discomfort amongst the Indian business circles. It also aims to sustain the stupendous rate of economic growth of India. The Reserve Bank of India raised the Cash Reserve Ratio and used it as a tool to arrest the increasing Inflation Rate. Rationalizing the pricing disparity between the producer and the consumer is the only solution to this problem. Only this will ensure inflation stabilization and thus sustainable economic growth of India. From the beginning of FY2008 the Indian economy faced a rise in the prices of vegetables, pulses and other basic food stuffs. All this was accompanied with sharp rise in the prices when the annual policy statement for 2008-09 was unveiled on April 29. Inflation increased steadily during the year, reaching 8.75% by the end of May and in June when this figure jumped to 11% then there was an alarming increase in the prices. There were many reasons for it but one of the main driving forces was reduction in government fuel subsidies, which lifted gasoline prices by an average 10%. Indeed, by July 2008, the key Indian Inflation Rate i.e. the Wholesale Price Index touched the mark of 12.6%, highest rate in past 16 years of the Indian history. This was almost three times the RBIs target of 4.1% and almost doubled as compared to last year. This continuous rise slipped back to 12.4% by mid-August. Since the beginning of 2008 combination of various internal and external factors led to steep domestic inflation and the resultant steps taken to control it in were slowing the pace of expansion. These factors included the marked rise in the international prices of oil, food, and metals, moderating the rate of capital inflows, worsening current and fiscal account deficits, increasing cost of funds, minor depreciation of the Indian rupee against the dollar, and slow growth in industrial economies. The Indian economy was at a critical juncture where policies to contain inflation and ensure macroeconomic stabilization have taken center stage. In the first quarter of FY2008 (i.e. April -June), growth rate of GDP slowed down to 7.9% from 9.2% in the corresponding prior-year quarter, for the slowest expansion in three and a half years. The most remarkable decline was in industry where growth rate fell to 6.9% this was mainly because of cutting in the manufacturing growth rate to 5.6%. The slowdown was widened when agriculture and services sector showed a negligible growth of 1.4% and 0.9% points, below their performances of the year-earlier quarter.Over the medium term, the main objective of the government was to bring down inflation to 3%. The Repo and Reverse Repo Rates remained unchanged whereas Cash Reserve Ratio (CRR) was increased by 0.25 percentage points. A survey of manufacturing companies was conducted by the Reserve Bank of India in June 2008 which indicated a moderation in business optimism. This was corroborated by the composite business optimism index for July -September 2008 that was prepared by Dun and Bradstreet, which shows a decline of 11.2% as compared to the previous quarter. In July, the BBB- rating on foreign currency debt was confirmed but downgraded the viewfor Indias long -term local currency debt from stable to negative, with a noticeable deterioration in the fiscal position.Growth of the broad money supply (M3) had to be moderated in the range of 16.5 to 17 per cent. While deposits were scheduled to rise by 17% and non-food credit disbursements by banks will grow at a slow rate of 20% as compared to 22.5% in 2007-08. Credit disbursed by banks last year was less as compared to the previous period. Bank credit had grown by a scorching 30% every year for consecutively three years beginning in 2004-05. The combined budget deficits of the central and state governments have been substantially reduced over the past 5 years. This reflected sincere efforts by the government to adhere to fiscal responsibility legislation. For FY2008, the central Governments deficit is budgeted at 2.5% of GDP and the states at 2.1% (4.6% of GDP on a consolidated basis). The major factors that strengthen the appreciable fiscal consolidation from the base were a wider tax base supported by a buoyant economy and improved compliance. Two main situations that must be overcome before achieving the deficit targets for the FY2008 are: a slowing economy that may limit the revenue buoyancy seen in recent years and continuous pressure by the Central Government to raise the salaries of its employees by 21% (about 0.3% of GDP) in response to recommendations of the Sixth Central Pay Commission. Similar wage increases were announced immediately by half a dozen states and others were following the suit. On the other hand provision for these salary increases was not budgeted. EFFECTS Inflationary pressures in any economy leads to depreciation of its domestic currency. This is what our Indian economy was facing due to the running inflation and as a result Indian rupee depreciated by about 20% since April 2008. Inflation affects- 1.Common man: Inflation effects a common man in different roles such as a consumer: Products such as crude oil, fertilizers, pharmaceutical products, ores and metals, or use imported components such as Personal Computers and laptops are directly imported. Due to depreciation of the Indian Rupee all these goods became very expensive. Components in computers such as processor, hard disk drive and motherboard are also imported. Products such as mouse, keyboard and monitor also witnessed an impact on their prices due to Rupee depreciation. Inflation may rise in an economy when the input costs increase. As an investor: Depreciation of rupee makes imports of various components, capital goods and raw materials more expensive. As inputs and other equipment that are imported get costlier and reducing the profit margins. Companies that import goods in bulk and those with heavy foreign currency borrowings may be marked down in the stock market as the rupee depreciates. As a Wage-earner: During inflation this class of common man suffered a lot because of two reasons- Increase in wages and salaries failed to keep pace with the rising prices. Wages increased during inflation but there is always a time lag between the rise in price and increase in wages. As a result common man looses during the intervening period. Export companies: Due to depreciation of domestic currency exporters receive better prices for their goods and services when sold in foreign markets. Foreign Investors: Depreciation of Indian Rupee reduced the returns that foreign investors used to earn by investing in Indian companies. Depreciation of a currency triggered FII outflows. NRI investors, who previously invested their money in India under various deposit schemes due to high interest rates, started finding those schemes less attractive on account of rupee depreciation. Countrys Balance of Payments: One of the drawbacks of depreciation of Rupee is that exports become cheap in terms of foreign currency and imports become costlier. Current account deficit widened because Indian imports basically constitutes essentials such as crude oil, natural resources and many capital goods. Depreciation of Indian Rupee made the exports more competitive globally and as a result higher exports covered up the trade deficit. Farmers: The prices of the primary commodities such as minerals, diesel oil and fuel, power light and lubricants went up significantly. This disparity affected the agricultural sector in two ways- It had a restrictive effect on investments in farming and affected the production efficiency. On one hand the agricultural commodity prices were falling or stagnant and on the other hand increasing prices of agriculture inputs and other daily life commodities led to deterioration in the living standard of the farmers. Prices paid by the consumer have impacted by the cost of living of the entire value chain, which grows on the inefficient markets and this adds to the final cost of the material. For example, high energy cost itself has contributed to the increase in the cost of inputs required for agriculture besides pushing up the marketing costs of farm products. IT companies: The IT sector is amongst the highest recruiters in the Indian economy and a depreciating rupee spells good news for the sector. Bills for Information Technology companies are basically prepared in dollars or in other foreign currencies. Depreciation of the rupee increased their realizations and bodes well for their margins. The main reason for the good performance in the second quarter of Infosys Technologies and Satyam Computers was the depreciation of the Indian Rupee. An estimate suggests that a 1 per cent depreciation in the rupee expands an IT companys margins by 0.30-0.40 per cent. CONCLUSION Majority of Indias population lies close to the poverty line and inflation acts as a à ¢Ã¢â€š ¬-Poor Mans Tax. More than half of the income of this group is spent on food and this effect is amplified when food prices rise. The dramatic increase in inflation will have economic as well as political implications for the Congress Government, with an election due within a year. Economic growth rate in the emerging markets have slowed down but is far from over. The BRIC countries i.e. Brazil, Russia, India and China alone account for more than 3 billion people and with consumption rate increasing every year. It is expected that the high inflation rates will be there for a long period of time which is worrying news for the Indian Government. Direct regulatory measures such as the reduction in import tariffs were adopted in order relax the supply-side pressures on various agricultural commodities. While adopting the direct measures, the Government realized that the relaxation of supply-side pressures would dampen inflationary expectations by increasing supplies in the commodities market. The RBIs attempt to control excess liquidity in the market byraising the interest rates pushed up real-estate prices as well as the commodity prices, thus fuelling inflation. A closer look at certain commodities would reveal that the prices of sugar and wheat were managed by the Government through various market intervention mechanisms. As a result the physical market’s role in effective price discovery was affected. Trade in the commodities market operated in an asymmetrical information situation from both the supply and demand sides. Hence, market operations could only benefit segments that were privy to the available information. The existing agricultural market ecosystem revolves around the traders and to some extent the producers with no say from side of consumers. Hence, at the end both consumers and producers are often at a loss. Generally, traders keep a heavy margin to compensate for the physical and financial risk involved in carrying the commodity for short as well as long term.

The Life of Karl Marx Essay -- Biography Biographies Karl Marx Essays

The Life of Karl Marx Karl Marx was the co-author of The Communist Manifesto, along with Friedrich Engels. The Communist Manifesto is a pamphlet that was written to let the public know how the working class was being treated, and to try to get rid of the class system that existed at the time. Marx believed that many of the workers throughout England were not being treated fairly and that something needed to be done about it. Marx explains, â€Å"The history of all hitherto existing society is the history of class struggles.† 1 He continues on to talk about how while looking at human history you ought to not just look at great individuals or great conflicts, but instead look more at social classes and the struggles in which they go through. Karl Marx led a very long and meaningful life that will always be looked at in great light. The Communist Manifesto and Karl Marx greatly impacted change of society throughout the twentieth century. 2 Karl Marx was born on May 5, 1818 in Trier, Rheinish, Prussia. Marx's father, Heinrich, was a lawyer, and his mother was Henriette Pressburg. He was second of eight children. The family was originally Jewish, which it was reported that he was not practicing Jew. Marx's father eventually changed the families religion to Protestant, so as to avoid anti-Semitism. At the age of seventeen he attended the University of Bonn, where he decided to studied law just like his father. Soon enough his father pulled him out of Bonn because of his poor grades and his injury in a duel. After paying off Marx's debts his parents then made him transfer to The University of Berlin. Here he became a little more interested in his studies and also got to know his professors a little better. One of the mos... ...s outlook, relationships both to other men and to physical nature, with which man is in perpetual physical and technological metabolism.† 8 End Notes 1) Berlin, Isaiah, Karl Marx: His life and Environment (New York: Oxford University Press, 1978). 2) Avineri, Shlomo, The Social and Political Thought of Karl Marx (New York: Cambridge University Press, 1968). 3) "Karl Marx" Education on the Internet and Teaching History Online, <http://www.spartacus.schoolnet.co.uk/TUmarx.htm> (12 February 2002) 4) "The Karl Marx Page" Sociology at Hewett <http://www.hewett.norfolk.sch.uk/curric/soc/MARX/Marx1.htm> (12 February 2002) 5) Blumenberg, Werner, Portrait of Marx (New York: Herder and Herder New York, 1972). 6) Avineri 7) "The Karl Marx Page" (all pictures from this website) 8) Berlin

Side Kicks

The poem, â€Å"Side Kicks† has many different meanings. when you read the poem the surface meaning gives an explanation ot what a side kick is and does. It goes over the basics of a side kick. If you were to look at the deeper at the meaning of the poem, you would find something more. The poem talks about how a side kick isnt given the gift of good looks It also talks about sidekicks being brave and putting others before themselves. At certain times the sidekicks put themselves in front of bullets for others. They remind us ofa part of ourselves that depend on others (our herffs).The theme for this poem Is loyalty and being humble. In the poem, It talks about the side kick being loyal to the hero, not ever wanting a hero to die, and being humble around everyone. I was almost is tears when I came to the realization of the deeper meaning of the poem. The tone for this poem is kind of sad and yet touching at the same time, The poem mentions many names but doesnt give or mention the name of the main character. Through the characterization that the author gives us, we can find out a lot about the character.For example, the character seems to have a lot of knowledge so I assume me will be someone older. would assume sme was or Is a side kick because of their knowledge ot sidekicks and their feelings. It sounds like the main character relates well with sadness of death or a great loss because, s/he explains it well in the poem. I believe that Ronald has maybe put this part about death In the poem because some hero of his might of died at the time. Or maybe he noticed one of his student's hero was lost and decided to write about it. The characters tone in the poem seems to be sad and depressed.An example would be in the fifth paragraph f the poem which says (Website 3): Who could sit In a darkened theatre, listen to the organ music (Ilke a funeral) and watch the best of ourselves lowered into the ground (like a casket being lowered) while the rest stood up ther e, tears pouring off that enormous nose. (sad for the lost of their hero) In the first 2 lines when it refers to a darkened theatre with organ music, I picture it as a funeral hall. In the next sentence as he talks about the best of ourselves being lowered Into tne ground. I see tnls as our neros casket Delng lava to rest. nen tne ero is being buried, Ronald Koerge paints us a picture of a side kicks emotion when one is caught crying for their hero. In the last 2 sentences while he's talking about tears pouring off that enormous nose, I see it as a side kick being sad for the loss of their hero. The mood is set up so well that it makes you want to cry. The author uses a simile and a metaphor to tell a story in the poem. Ronald wrote this metaphor â€Å"a yodel of a voice or ears big as kidneys† to compare side kicks to heros. He describes side kicks voices as usually weak or unsure, as opposed toa eros voice which is usually strong, powerful and leading.Also using this simile â€Å"ears as big as kidneys† to describe how a hero's image or looks appear perfect or flawless, unlike a side kick with all its imperfections. There are two main symbolisms in the poem. The first symbol being the side kick, which symbolizes a child. The second is a hero, which symbolizes a parent. At the end of the poem it talks about how side kicks remind us of a part of ourselves that is like a child, never wanting to grow up and always wanting to look up to our hero's parents) for help and guidance.The poem also talks about how a side kicks' outward appearance is not perfect like a hero's, but they don't care or get Jealous of a hero because they look up to them for support or guidance. It talks about a side kick being sad because the best of ourselves (herds) lowered into the ground (funeral), tears pouring off that enormous nose (sad for the loss). This poem was written as a free verse. By not adding all the other sound effects, it made the poem more relatable. The fr ee verse style made the poems meaning deeper and more personal.To add any sound effects would ruin the poems impact it would have to its readers. Ronald Koertge has done a lot in school, both teaching and learning. He has also written books about teens and young adults (Website 1, 2). He noticed that everyone has a need for a hero and that there is a side kick in all of us. He talks about sidekicks and what they are. But even deeper, he tells how hard it is to be a side kick and what a side kick goes thru. The author also tells us how sidekicks remind us of our selves, the part that never wants to grow up and always has to depend on others.

Honey Maid Has a Pretty Cool Reply to All the Haters of...

SWOT Analysis Strengths: After the research in business market, the owners list five important strengths of Coffeeberry: Firstly, Coffeeberry has a good location. It is located by one block besides University of La Verne campus. It is one of the oldest shops in our university. It has created an identity in the mind of the customer regarding product as well as services. It’s very convenient for Laverne students. They can come and buy a hot coffee during the class break. Many students find sanctuary at Coffeeberry for studying alone or orchestrating meetings for group projects. Secondly, as we know Coffee used as refresher for people. Coffee can have a stimulating effect on humans due to its caffeine content. It is one of the most-consumed beverages in the world. Coffee, for so many generations had been a vital thing in the world. It had been, for some addiction that there day wouldn’t be complete without multiple cups of coffee a day. Especially, work hard students need a cup of coffee to refresh their mind. Thirdly, Ensure quality of product is the key of shop successful. Coffeeberry offers best-prepared coffee in the campus using high-quality ingredients and strictly following preparation guidelines with fast food and refreshment beverages. Baked goods will be from Coffeeberry‘s owner handmade, the schedule of getting baked goods is every day to make sure that we will offer the customer fresh pastries, sandwich and cookies. Fourthly, Coffeeberry keep their cheap price andShow MoreRelatedHoney Maid Has a Pretty Cool Reply to All the Haters of Its Ultra-Inclusive Ad1296 Words   |  5 Pagescontains specialty drinks, specialty coffee, and shaved snow ice, and grilled Panini sandwiches as their main snacks. Their specialty coffee has a variety of choices. For the espresso series, they offer regular espresso, espresso macchiato, espresso con panna, cappuccino original, and cappuccino old town. All of them come with a choice of single or double shots. Among all the espresso products above, espresso macchiato is the most popular one. It is marked with mild foam and a full taste of the espresso