Monthly Archives: August 2013

Sinking Indian Economy

The below post is a comment made by me on one of my friend’s Facebook wall in reply to why Indian economy is sinking and what could we do to arrest it.

People’s Mistake:
I would say, we are saving too much on Gold. According to BBC[1], Indian House wives have 11% of the total world’s gold reserve. You have to note this 11% does not comes under India’s Gold Reserve (which is owned by the Reserve Bank). Majority of this 120 billion$ worth gold is sitting useless either in bank lockers or in house holds. This money must be put into some useful investments, either by buying government bonds or investing in private equities.

How it affects[2]:
With this much Rupee Idling, we have created a demand for Rupee within India, The government cannot print more Rupee like what Zimbabwe did, so they had to borrow externally. Borrowing outside, increases our already high fiscal deficit (Fiscal Deficit = Exports – Imports, wherein India; Imports >> Exports). To add up to it, few people ask relatives returning from outside India to buy gold since it is comparatively cheaper outside, what they don’t realize is, it increases our Imports, thereby the Deficit as well.

Possible Aftermath:
If Fiscal Deficit Increases beyond a certain percentage of our GDP, then rating agencies will downgrade our already low rating to Junk[3], and then all these FDI investments will be pulled out just like that.

Falling Rupee is not bad always:
When Rupee gets devalued against dollar, it means foreigners can buy Indian goods for a cheaper price and this gives an edge for our exporters in the global market. So countries often devalue their currency to gain market [Japan Yen few months ago which led to a huge gain in Toyota’s sales [4]]. But clearly what we have now is not this.

Problems/Solutions:
* Corruption: Our politicians are so corrupt that, they get bribes from companies that wants to invest in our country. So, many mid-sized manufacturing companies which doesn’t has much lobbying power circumvents Investing in India [But now our FM is literally begging investors[5][6] to invest in India during major economy summits, but that’s a different story].

* Bad Start: We are more of a reactive country than a proactive one. Our economy was liberalized only in early 90’s. Thanks to Nehru and his BS (No Offence) Licence Raj[7], the policy makers then thought that, if they allow Foreign companies to setup bases/invest in India, then it will become the story of English East India Company again. Then in 1991, when we were close to default, we let the shores open[8]. Had we did this so early, we could have been more richer than the likes of Singapore and Malaysia.

* Quality of Products: Most of our high quality goods (from tirupur) are being exported to global co’s[9] (like H&M) and local manufacturers don’t give a damn about the quality. So we people start buying products from those global co’s who bought their raw materials in India.

* The so called Freebies: First of all, nothing is free. The TV, Grinder and all the crap you got are bought out of yours or someone’s hard earned tax money. The government could have used that money to a more useful purpose like to set up more of these restaurants or in some infrastructure projects, instead of bribing you to get your votes.

* Education: This is one of the important thing, there must be some sort of school for giving a crash course to Politicians or make them hire a bunch of goddamn MBAs for each and every Ministry.

[1] http://www.youtube.com/watch?v=IpdoRUMeshw
[2] http://articles.economictimes.indiatimes.com/2012-03-25/news/31234318_1_gold-imports-gold-demand-import-bill
[3] http://www.hindustantimes.com/business-news/WorldEconomy/S-amp-P-warns-India-of-rating-downgrade/Article1-1061685.aspx
[4] http://www.businessweek.com/articles/2013-04-25/japan-needs-more-than-a-devalued-yen
[5] http://timesofindia.indiatimes.com/business/india-business/Chidambaram-promises-fair-transparent-regime-for-foreign-investors/articleshow/21016727.cms
[6] http://www.moneycontrol.com/news/economy/chidambaram-arrivesus-to-pitch-for-investmentindia_914799.html
[7] http://en.wikipedia.org/wiki/Licence_Raj
[8] http://en.wikipedia.org/wiki/1991_India_economic_crisis
[9] http://articles.economictimes.indiatimes.com/2013-06-30/news/40286848_1_knitwear-exports-crore-worth-rs

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Did i adequately answer your condescending question?

I recently came across this post in the interwebs where the OP makes some baseless claims which calls for this rage filled blog post.

The OP seems to be a graduate of CEG and ISB, in his post he talks about branding CEG and preventing the contamination of the name Anna University by Affiliated Colleges’s Students. The reason which he states for branding CEG is one of the stupidest thing i ever read this year. I’m quoting the OP from his original post and this is almost the same reply which i left as a comment in his blog which i think will never get published.

Truth be told, there is a widespread and rampant abuse of the Anna University brand wherein both current and past students of private engineering colleges claim themselves to be Anna Univ alumni.

As a alumni of a affiliated college, i can assure you that my degree does not has a single reference to my college name. So when i go for an interview or write a SoP, i mention myself as an Anna University graduate (because my fucking degree says so)

Fyi, the issue is very serious now as we have come to know of people who are claiming jobs, getting admission in to IIMs and US universities misusing the Anna University brand.

This, This, leave the job part aside for a while. Seriously i have no idea how one would be admitted to an IIM without taking the damn CAT + clearing the Panel Interview; just by mentioning that you are an alumni of Anna University. Do not even speak about US universities, To make it to the Elite schools, no matter where you come from you ought to have at least a couple of publications, To get into Tier 1 and Tier 2, a good/decent GRE with a good profile is needed. Tier 3 and below cares least about where ever the fuck you studied, they just want you to pay the fees to them. So, you think affiliated college students who got into IIMs or US universities cheated their way in by saying they are alumni of prestigious ‘Anna University’. LÖL!

While we want to standout as smart individuals beyond whatever college we studied in we cannot allow our brand value to be diluted

wohh, wohh. You want to standout as smart individuals and all okay, but slide #5 in your presentation is quite contradictory to what you say you want to achieve or whatever. Here are the contradictory points
* Current students do not get recognized as cream
* Employers already perceive Anna University students as average
* Admissions to top tier universities are difficult (Now i can see why you want to brand CEG)
* Alumni job prospectus are getting difficult.
Had you been a smart individual beyond whatever the college you had studied (like you said), these things are the least you have to bother about, but since you base your branding opinion on this reason, i assume you aren’t as smart as you think.

Before you question about my opinion on CEG, i wish to clarify this. I have more friends who studied in CEG than the friends i have in my affiliated college.  so i know how cool CEG is. I’m quite familiar with how things work there and in fact i felt bad for almost two full years for missing out a 10 Mark question in Math and Physics.  But the problem is people like you, who blog under a closely related CEG domain, make your fellow college mates look like a jackass. So please, never ever write an article on a blog under that domain name. Not every one knows the truth.

I simply can’t resist posting this ‘Did i adequately answer your condescending question’ GIF