Wednesday 26 June 2013

War of the currencies: Dollar Vs Rupee

The rupee has plummeted precipitously against the dollar and this recent dip has brought to the fore one crucial question –Tough times ahead for Indian economy?

Explaining in simple terms, the rupee is losing its sheen and has already lost “purchasing power” or how much it can buy (in the international market). The “value” of our currency is not enough to buy more goods or more dollars itself. In the last two years, the rupee has plunged 30 per cent. This means that we have to shell out 30 per cent more to purchase things that can be had for a dollar!

This tumbling of rupee is on account of factors like foreign investment outflows from Indian markets-debt as well as equity. The recent bout of weakness is fuelled by the prospect of unwinding of the bond purchase programme by the US Federal Reserve and structural factors like India's high current account deficit which makes rupee very vulnerable to external shocks. Typically, the currency of a country with high current account deficit tends to depreciate in such situations, which has been the case with the rupee too. As the Indian rupee slumps to new lows, the country's middle class has been forced to cut back on cars, electronics, smart phones, foreign education, groceries, imports, TV, fridge, ACs, foreign holidays and fuel.

Will this gloomy situation help anybody? Yes. Indian exporters who earn in foreign currency are set to benefit with rupee fall. Also, tourists who plan to visit India will find the exchange rate attractive. NRI’s, who remit money home regularly, are also using the opportunity to convert their foreign currency savings into rupee. But the extension of this situation can only prove to be very dangerous for the economy as the falling rupee adds to India's import bill that is already high due to large oil and gold demand in the country.

Although the RBI on its part will closely follow the foreign exchange market and supply dollars if needed to curb volatility in rupee-dollar exchange rate, the situation is not expected to ease instantaneously but will allow to soothe market tension around 57-58 rate in coming months.

Finance Minister P Chidambaram says that there is no need for panic over the weakness in the rupee and has assured that the government and the RBI were monitoring the situation closely.  I personally think this storm would pass too with gains to some exporters in offshore markets, textile, leather and other export-oriented sectors are particularly likely to gain and other similar industries.

Of course, there are analytics that set a gloomy image for the future such as claims that the Dollar might even hit 65! At this rate, we have to make informed decisions about our investments. As I discuss with some young minds, they come up with the best solution to all the issues:
·         Read & learn about the economies
·         Make educated decisions for your investments
·         Take time & think before you make a move on buying/selling





Wednesday 19 June 2013

Potentiality versus Opportunity

Bound by my fad for technology and following the latest developments from the house of world’s leading innovator Apple, I decided to pen down this blog post. Technology excites me and keeping a tab on the latest trends is something I’m fond of. Keeping its trend alive, Apple at its latest Worldwide Developer Conference (WWDC) announced a flurry of new products that it plans to offer this year, including new operating systems and updated Mac computers. It seems that Apple, one of the world leaders, has found inspiration again and is ready to take the game to the opposition. As for these wonderful pieces of innovation, I’m surely going to review one of them very soon.

iOS 7, the latest version of Apple’s flagship mobile operating system, is the biggest change to the platform since the iPhone was introduced five years ago. Featuring a radically overhauled interface, new Control Center, transparent animations and more, it's pretty impressive. With a greater synergy among hardware and software design, Apple’s iOS 7 features flat, simple design with a vast use of light and bright colors. The new design is evident in everything from sharper, flatter icons, slimmer fonts, a new slide-to-unlock function, and a new control panel that slides up from the bottom of the screen for frequently accessed settings.

Along with this, Apple also plans to introduce the new Mac Pro, which will include a new Intel Xeon processor and come standard with dual AMD workstation discrete graphics processors. It will also support 4K, ultra high-definition displays out of the box, and the system is only one eighth the volume of the earlier Mac Pro. A combination of all these features makes this machine certainly designed for an amazing speed.

I remember Steve Jobs mentioning in one of his interviews that we are living in the post-PC era. I think it has to be true. With the introduction of OS X Mavericks, Apple has proven that there is still much work that can be done to improve computing on the desktop and laptop. With more than 200 new features coming in the fall, OS X Mavericks brings Maps and iBooks to the Mac and introduces many other features.

This reminds me of an article I was reading a few days ago, when a thought crossed my mind, that compelled and redirected me to a different direction. We Indians are a smart race. Test us mentally and we can rise to the challenge. Little wonder that the world’s sharpest brains belong to the Indian lineage and undoubtedly it is a matter of great pride.

Though there is enough potential in our country, there seems to be a dearth of opportunities and resources. Just last month, I had tweeted about this 18-year-old girl, Eesha Khare, who invented a super-capacitor device that could potentially charge your cellphone in less than 20 seconds. Imagine how much time that will save! Being of Indian origin, I doubt if Eesha would have been rewarded in a similar manner if she were to be a resident of India.

Moreover, like I’d mentioned in my previous post, the education system in India must strive to focus on an overall holistic development of a child and an equal importance has to be given to his or her knowledge, hard work, perseverance and passion. The youth today has been abundantly exposed to numerous media channels and cultures that they are constantly on a lookout for ways to represent themselves in front of the world. Their sheer confidence and a steadfast attitude to make it big is something that needs a constant dose of encouragement and there shall be no looking back.  

Therefore, I believe that these young brains that possess immense talent should be given a platform to showcase their work and must be rewarded for their achievements. It’s them who will bring India to the forefront in the years to come and recognizing their gift will help us break new grounds like never before and reach new avenues.

Wednesday 12 June 2013

Academic performance: Not the Only indicator of success

This year proved to be yet another milestone of smashing board exam results. Academics have turned into a race- to be better than the best and there seems to be a constant pressure that captivates the young minds today. Studies often show that young minds learn most from their surroundings, the lessons they learn from the actions and decisions they see taken around them.  Nonetheless, the craze to score a 95% or more drives the children into a study frenzy mode.

Although education is not the only deciding factor of an individual’s success in the working world, it seems that schools largely concentrate on the academic performance in terms of grades & marks and not the entire personality development. Parents care about their child's academic performance because they believe good academic results will provide more career choices and job security. Schools, though invested in fostering good academic habits for the same reason, are also often influenced by concerns about the school's reputation which can hinge on the overall academic performance of the school.

In the midst of being involved in classes, a child has no time for any sort of a break or rejuvenation. Though schools do engage children in extracurricular activities, how many schools invest the time and resources on letting a student do what he or she finds interesting. Schools should give each student time to figure out what interests them, once the child expresses a fondness for a certain activity, the school should then nurture and develop that.

While the grades/marks are the foundation of education and what indicates a child’s progress and potential, it is not the only aspect we should concentrate on- a fact which is sadly the case in most schools and colleges today. Personal attributes, integrity, hard work and strong belief in oneself are other factors that must be given attention to succeed. A child may not have much focus on academics only, yet works hard in other areas. Lord Krishna said, “You have the right to perform actions but not to their outcome.” The hard work put in by a student, whether in academics or any other area, should be the focus, the results are not the only indication of a child’s potential.

That brings me to the question that I have often thought of – Is academic performance and high scores the only parameter to judge the potential for success in life? The things a child is ‘supposed’ to know is often over-stepped by the things the child is expected to know. Cramming up the course books might turn them ‘book smart’, but leaves little room to actually apply what one has learnt.

Conducting exams is essential. But creating a fear around them and projecting them as the only basis for judgment needs a change. There have been plenty of examples of people who didn't do well in school and went on to become quite successful in their lives. 


Therefore, it is crucial to shift the focus on an overall holistic development of a child rather than restricting to scoring high percentile. Physical, emotional and social development along with mental growth has to be given equal importance. Success isn't only about being a high scorer; it has to be a reflection of knowledge, hard work, perseverance and passion.

Wednesday 5 June 2013

Is it death of Morality or birth of a new Honest Generation?

From the tender years at school we’ve all been taught of morals and to be able to tell between right & wrong. But how many of us have been able to carry on the lessons that our parents and teachers have so painstakingly tried to instill in us.  Does the society we live in leave any room for the right things?

Many feel that morality has been reduced to just a mere concept in our nation today and we can’t blame them for thinking this. The instances we hear of corruption and bribery outweigh the number of stories we hear of justice & morality. One of the major issues that is plaguing the nation and making its future seem not-so-bright is corruption. It is the weed that is sucking out all the positive energy from the nation and is not only ruing the picture of the system in our eyes, but is also giving the nation a bad name internationally. 

Looking at the extent to which corruption exists in our nation is appalling. There seems to be no such activity that can take place without a bribe. Either giving or receiving, we often find ourselves stuck in situations where bribery is involved. From menial jobs to big multinational enterprises, the existence of bribe is rampant.

What seems like a gloomy picture and doesn’t give us much hope to look at a developing nation is also yielding a new spirit in the citizens. While there are individuals in our country who are hampering the growth, there is also a rising consciousness against this issue. Starting from the youth to the senior citizens, there are a growing number of citizens who are realizing the extent to which corruption has plagued the nation. This new army of citizens taking all measures possible- protests, petitions, judiciary and even social media- to try and oust the problem from the system and India.

To make sure that we put an end to corruption is by first making everyone aware of the extent of the harm it has created- something that is already happening. But the best way to oust this evil is to get started with our own selves. Starting from avoiding chalaans by “favoring” the traffic constable to getting our children admitted in institutions by giving “donations”, the practice of 1) checking ourselves and those around us and 2) reporting any wrong doing is a must.  


It is our nation, our future and hence it is up to us to make sure we can bring about the change. As the great Marcus Aurelius puts it, “Waste no more time arguing about what a good man should be. Be one.