Dr M Khalid's global village blog

SPEND 2min to read this and make your and your childrens' future Bright ... YOU CAN MAKE A HUGE DIFFERENCE TO THE INDIAN ECONOMY . There was a time when 1 US $ = IND Rs 30 Now 1 $ = IND Rs 53.619 Do you think US Economy is booming? No, but Indian Economy is Going Down. Our economy is in your hands... A cold drink that costs only 70 / 80 paisa to produce, is sold for Rs.9 and a major chunk of profits from these are sent abroad. This is a serious drain on INDIAN economy. What you can do about it? 1. Buy only products manufactured by WHOLLY INDIAN COMPANIES. 2.You don't need to give-up your lifestyle. You just need to choose an alternate product. All categories of products are available from Wholly indian companies. List of products cold drinks/cold beverages:- 1.Real brand juices(dabur),   2.frooti, appy, maaza(parle) 3. lemon juice, fresh fruit juices, chilled lassi (sweet or sour), butter milk, coconut water, jal jeera, enerjee,and masala ...

Definition:  Foreign direct investment is of growing importance to global economic growth. This is especially for developing and emerging market  countries. FDI from investors in developed areas like the EU and the U.S. provide funding and expertise to help smaller companies in these emerging markets to expand and increase international sales. Until recently, Southeast Asia was the greatest beneficiary of FDI. However, as of 2011, Latin America and the Caribbean pulled ahead, receiving a 35% increase in FDI. The developed world also receives its fair share of cross-border investment, but of a different nature. Most of this is mergers and acquisitions between mature companies. These already-global corporations are engaged in restructuring or refocusing on core businesses. However, it gets recorded as FDI. This type of investment is more about maintenance, and less about making great stride in economic growth. (Source: UNCTAD,  Annual FDI Report ) What Exactly Is F...

Overview First of all, FDI means  Foreign Direct Investment  which is mainly dealings with monetary matters and using this way they acquires standalone position in the Indian economy. Their policy is very simple to remove rivals. In beginning days they sell products at low price so other competitor shut down in few months. And then companies like Wall-Mart will increase prices than actual product price. They are focusing on national and international economic concerns. There are four main working pillars of FDI. They are financial collaborations, technical collaborations and joint ventures, capital markets via Euro issues, and private placements or preferential allotments. There are two types of FDI, one is inward FDI  and second is  outward FDI . Ongoing news suggests that largest retailer Wal-Mart has demanded for 51% of international dealings in FDI in Indian markets which had called nationwide strike. From positive and negative aspects FDI has its own a...

The government on Thursday formally admitted it had faltered on industrial growth data for January by overestimating sugar production more than two times. The government said it was a "one-off aberration". The January industrial growth figure was drastically revised down to just 1.1 per cent against the earlier 6.8 per cent. That led government advisors, economists and industry players to raise questions over the very relevance of the Index of Industrial Production data. The goof-up could be bigger and data in other commodities are likely to have been misreported as well, since sugar has just 1.5 per cent weight in the IIP, economists say. It can explain less than half of the 5.7 percentage-point over-reporting in the provisional index for the month of January. This was the third blunder in government data collection in a year and a half, the two other being on exports last year and GDP numbers for the first quarter of 2010-11. Meanwhile, provisional February industrial growt...

A Seshan: The hidden Ponzi scheme An internal debt trap looms as the Indian government is increasingly forced to borrow to pay interest on existing loans "The debt is not, that is to say, to be regarded as a residual among quantities of economic policy…. Thus debt management can be regarded neither as something to be, as it were, left to the last and adjusted to all other policy decisions, nor on the other hand, as a consideration which should override all other policy decisions; it has to be integrated with a variety of measures in the pursuit of the broad aims of economic policy." Report of Radcliffe Committee on the Working of the (British) Monetary System (1959) The challenges facing the government on domestic debt management will be tremendous in the coming years. The total amount of debt due for redemption in the 12th Plan period (2012-17) is Rs 7.81 lakh crore or Rs 1.56 lakh crore per year. The peak will be reached in 2016-17 when it will be Rs 2.31 lakh cro...

As an immediate prescription to set things in the right direction, Rajan calls for a complete relook at the public sector, including the breaking up of monopolies like Coal India Limited, while giving a level-playing field to the private sector. Addressing the graduation ceremony of Indian School of Business (ISB) on the theme whether the Government in India is performing its appropriate role, he said: "Even as the world becomes more competitive, India's star has dimmed in the last few months, as our governance is besmirched by corruption scandals and our macro economic health has deteriorated." Rajan, who is also currently an economic adviser to the Prime Minister of India, was critical of the recent government actions such as the change in tax laws in the light of the Supreme Court judgement on the Vodafone case. A government that changes the law retrospectively at will to fit its interpretation introduces tremendous uncertainty into business decisions, and it sets it...

HYDERABAD, APRIL 7:  Corruption scandals and deteriorating macro economic health have marred the country's governance. This has led to the domestic industry not wanting to invest in the country any longer, according to Dr Raghuram Rajan, Professor of Finance at University of Chicago. "Alarm bells should start ringing when the domestic industry no longer wants to invest in India, even while eagerly investing abroad," he said. Delivering the graduation day address at the Indian School of Business (ISB) on 'Indian governance and change', Dr Rajan said that even though there are many examples of achievement in India such as Delhi Metro or success of milk production, "we should also be realistic about India's deficiencies". Dr Rajan, who is also Honorary Economic Advisor to the Prime Minister, said that the Government "does too much of what it should not do and too little of what it should do". The Government ownership hurts public secto...

Silver, the poor cousin of gold has been on a roll. Since the beginning of this year, the metal has given a whopping 61% returns. Gold in the same period has given a return of around 15%. Also, silver prices have been on all time high levels, and currently quote at `44,130 per kg. Despite these all-time high levels, buying silver seems to be catching on in India. Take the case of 58-year old Usha Joshi, who always wanted to buy silver. However, the idea of holding silver physically seemed problematic to her. While she could buy gold through exchange traded funds (ETFs), she could not do the same in case of silver, as no silver ETFs are available in India. However, now she has a solution to her problem. She buys both e-gold and e-silver through the National Spot Exchange, where it is possible to buy silver in lots of 100 grams and gold in lots of 1 gram. At the opportune time, Ms Joshi, plans to gift these precious metals to her grandchildren. "It's easier than going to ...

Video: Russian news channel RT news reports: http://www.youtube.com/watch?v=1D27l-_Jh78 From The times of India: TNN  |  Jan 26, 2012, 02.28AM IST NEW DELHI: A reputed Israeli intelligence website has claimed that India is opting for gold to repay crude oil supplies from Iran. Given the  US and EU embargo  on Iran, payment in hard currency, such as the US dollar or euro, is very difficult; hence, this barter. The website,  Debkafile , said the transaction will be routed through  UCO Bank , the Kolkata-based public sector lender. However, when contacted, a senior bank executive said he had not heard of any plans to settle  oil payments  in gold. A senior finance ministry official said he did not wish to comment on the issue. When reached over the phone, economic affairs secretary R Gopalan, who has been leading the talks with Iran, said he was busy in a meeting and did not respond to a text message. The report on the Israeli website coin...

http://profit.ndtv.com/News/Article/silver-prices-may-reach-rs-1-lakh-per-kg-this-year-bba-298228?pfrom=home-business

The U.S. dollar has enjoyed a rally since the middle of last year, partly as a result of the debt crisis erupting in Europe, taking the problems of the dollar out of the headlines. However, there are good reasons to believe that this rally is soon coming to an end as the dollar is back under attack again. First, Iran and India announced that they will start trading crude oil using gold instead of dollars. Then shortly after the Fed announced that it is going to keep interest rates low until 2014. The announcement of the Iranian and Indian oil for gold exchange was a direct response to the sanctions put on by the United States and the European Union. The official line has been that Tehran must be punished for its ambitions to develop a nuclear weapon. This punishment has been in the form of sanctions against Iran's oil exports, and now further sanctions against its central bank. These sanctions are nothing short of financial warfare. This latest sanction against Iran's central b...

Media reports suggests that India has agreed to pay the price of crude oil it imports from Iran in gold, which makes it the first country to drop the US dollar for purchasing the Iranian oil. Citing an Israeli intelligence website, The Times of India has reported that India is opting for gold to repay crude oil supplies from Iran. The website, Debkafile, said the transaction will be routed through UCO Bank, the Kolkata-based public sector lender. However, the authenticity of the news could not be confirmed as the Indian government has neither confirmed nor rejected the option of paying in gold for oil imports from Iran. India, which is highly dependent on imports to meet its crude oil consumption needs, is Iran's second-largest oil customer after China and purchases around $12 billion worth of Iranian crude every year, about 12 percent of its consumption. On Dec. 31, 2011, US President Barack Obama signed new sanctions into law, seeking to penalize countries importing Iran's oi...

The World Bank continues to push its agenda on water privatisation even though its much-heralded examples from recent years turned out to be such dismal failures. The result will destroy countless small farmers and hand over agriculture to the rich and corporations, says P Sainath. 08 May 2005 - It has been happening for some time. Maharashtra is not the first State. It won't be the last. The drive towards privatisation of water in this country was planned by the World Bank in the 1990s. The just-passed Maharashtra Water Resources Regulatory Authority Bill reeks of Bank edicts already out in 1998. In that year, the "The Irrigation Sector" report of the Bank (teamed up with the Indian Government) laid down the line. It listed things that "need to be urgently put into practice." Among them: "drastically increasing and rationalising the current water rates." The rest of its "urgent needs" were the standard Bank rules for the capture of a co...