It is natural for every human being to be part of something good he/she feels or thinks about. People form perceptions about something based on what they hear, read, watch etc. etc…, So, they start deciding what is good or bad. Once he/she decides what is good or bad according to his/her own perception of what is good and what bad, they start associating or would want to associate themselves to these things. At this juncture of time they start thinking or dreaming about what they want to get or achieve, this leads to either happiness or sadness. If one achieves what he/she dreams will be happier or one who could not get what he/she wants leads to sadness.
Monday, July 27, 2009
Sunday, May 10, 2009
India Ahead in Recovery as per PMI for April 09
As
per PMI (Purchasing Managers Index)data India has scored 53.27 for April up
from 49.46 in Mar 09. A score above 50 represents expansion and less than50
contraction. India fared even better than china which scored 50.05 and
44.83 for the above months respectively. India and China are the only two major
developing countries posting scores above 50. Other major developed economies
like US, Japan and European economies are way behind.
Imagine
if Indian Govt were to announce a stimulus package of 585 billion $ as
announced by Chinese Govt.(which is 1/7th of GDP) What India could
have achieved????? India’s stimulus package was not even 10 billion $(which is
not even 1/100th of GDP) India is surely ahead of others in
recovery. So I think we are passing this Global Economic Crisis with
milder effect than others. Two main reasons for this are lesser export to GDP
ratio which is less than 20% for India compared to more than 40% for China and
domestic consumption Led Economic growth.
Saturday, February 21, 2009
Wednesday, February 18, 2009
Who Holds the Key For Passenger Car Companies????
Below table shows the number of people owning cars in some of the important auto(car) markets world-wide.
# The Economist 13th Nov '08
With US almost saturated at 800 owners per thousand and with the present recession condition expected to prolong for an year or two, has the least potential along with Europe and Japan. The so called BRIC holds the key for auto (Car) companies. If Russia can withstand the present economic crisis, it can fare better. But economy is under tremendous pressure, because it depends heavily on crude oil revenue which has fallen to rock bottom of 31 $ per barrel recently. Worst part being economy is expected to contract by 0.2% in 2009 as per Guardian of UK. Earlier the economy comes back on track brighter the future.
Brazil holds good potential but in the long run it is going to be China and India, with only 30 and 7 car owners per 1000 people respectively. Moreover both have population of over one billion and these economies are expected to perform best in 2009 among large economies. The reasons being china has already announced almost $600 billion stimulus package to prop up the economy and India with vibrant domestic market and export forming only 20% of GDP, makes them the best bet in the long run.
Sunday, February 15, 2009
Reasons for Inflation at Global and Indian context in 2008
Inflation may be a result of two factors i.e Cost lead or Demand lead or both.
Global inflation is mainly cost lead but in Indian context it is both.
What is Cost lead ?
Inflation due to increase in cost of production, this may be due to increase
in wages and salaries or increase in raw materials cost.
What is Demand lead ?
Increase in prices of commodities that consumers purchase due to increase
in overall levels of quantity demanded. When the companies cannot increase
the production significantly to offset the increase in demand, this leads to
increase in price and in turn inflation.
increase in price and in turn inflation.
Global Scenario
In the Global context it is mainly commodity lead inflation that is raw materials like
Metals- copper, steel, aluminum etc.
Crude oil and its derivatives-petrol and diesel etc..
Indian Scenario
In case of India it was Cost lead and Demand lead. As the crude and metal
prices were sky rocketing it was inevitable for business firms to withhold from
passing on this increase to the consumers. This is visible in prices of manufactured
outputs like steel, cement, and other kinds of house hold items manufactured from
them. Crude oil which moved from around 55 $ per barrel in April 2007 to 100 $
in April 2008 and was hovering at around 145 $ per barrel in July 2008.
Since crude oil is the essential commodity linked to the price off all goods and services
produced in today’s market economy. This lead to increase in prices of almost all goods
and services. Between 2004 and 2008 Indian economy averaged GDP growth rate
of more than 8% and consequently higher levels of income. This increase in income
lead to higher levels of commodity price and inflation.So when we look at Indian
context of inflation it is the result of demand and cost lead inflation.
prices were sky rocketing it was inevitable for business firms to withhold from
passing on this increase to the consumers. This is visible in prices of manufactured
outputs like steel, cement, and other kinds of house hold items manufactured from
them. Crude oil which moved from around 55 $ per barrel in April 2007 to 100 $
in April 2008 and was hovering at around 145 $ per barrel in July 2008.
Since crude oil is the essential commodity linked to the price off all goods and services
produced in today’s market economy. This lead to increase in prices of almost all goods
and services. Between 2004 and 2008 Indian economy averaged GDP growth rate
of more than 8% and consequently higher levels of income. This increase in income
lead to higher levels of commodity price and inflation.So when we look at Indian
context of inflation it is the result of demand and cost lead inflation.
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