The Underachievers

Consequently this has turned out to be one of the best examples for a tit for tat situation...yes i am talking about the recent cover pages of both the TIMES and OUTLOOK magazines ...The first one call upon the 

Indian prime minister Dr Manmohan Singh as an Underachievers ,while the later which is a  retaliation to the allegation by the TIMES describes Barack Obama as an Underachievers........The Later one is just a teaser of the upcoming issue of the Outlook magzine 

Is Barack Obama the real Underachievers or Dr Manmohan is the real Underachievers ??Shocked and Surprised ,I could possibly think of nothing but the fact that these are two people who are elected to lead the first one is the President of one of the most developed countries of the world (USA)while the later is the PM of the one billion + people of developing India .The two are highly qualified and well versed in there respective fields.The above being stated as Underachievers could raise many ques here in east as well in west society also.

But i believe the real action is yet to come when the latest issue of outlook arrives on the stands.I could possibly think of ,it is then when the real comparison will start and we might have a chance to look on to some stats relating once achievements so far .As if for now we can keep only one sided view

Although It has become one of the most discussed topic on the twitter between twitterites .But still there is no possible answer to this .Is it because of the 2G scam or due to the  FDI bill which India decline ?? that these allegations have come up from west

I brought the eg of 2G Scam and FDI Bill because according to me these two are classified as one of the turning points admist in Indian Politics for the time being .(I Used ad-mist and time being because these too shall also fade away from the memories  like the Bofor scandal)

The scam shook the nation and spoiled India's global image and for sure would have discouraged future foreign investments thus producing a hurdle in economic growth .The other example i took was the FDI Bill which India decline Possibly not because of the political reasons but due to the fact that passing such bill would cost us our sovereignty an economic Independence in the retail or trade sector

Its true that thing do not go as planned always and looking the overall global situation it is rather quite obvious  that there is a chaos everywhere .So what if obama could not fully pull out USA from the resession for which he has promised jobs and hopes to american or Dr  Manmohan who is burderened with the scams and nuclear deal pressures

The question is quite clear but it seems there is no perfect answer to it .

One can now simply think of the fact that as to why this allegation has been put up at this ungodly hour  in front of world via this media..when there are turmoils in the politics of both  the nations . Obama who is facing stiff competition back in states finds hard to compete for 2nd term  presidential elections , while here in India we can see that congress led by Dr Manmohan is unable to keep pace with the opposition 

The question that comes up now is why he (Dr Manmohan) is being categorize as an Underachiever ? Is it because of his silent one expression image or being classified as a puppet or a  man in shadows ..One could think of as many reasons as one could ,but fact is that  action speaks louder than words . With  Dr Manmohan as our Pm the country has seen a growth of 9.6% speaking statistically  . The so called Underachiever tag has raised many questions doubting Dr Manmohan credibility and efficiency .Is he the right man the job or not ??Thus putting a question on every Indian it is after all we who have elected him not once but twice ...For sure we all know that initially Mrs Sonia gandhi was destined to be our prime minister if congress wins  but due to some unavoidable circumstances Dr Manmohan was the chosen one to lead our 1Billion + .Ever since the day he was chosen ,he happens to be categorized as a mere puppet whose strings are controlled by Mrs Gandhi.Though one cannot deny the fact that he is a highly qualified Economists and has previously held many important such post in the Ministry  

Viewing the current scenario Globally i could possibly figure out the fact that  West is fighting for its survival presently and also this situation has come after many decades  perhaps after WW II. Whereas India has always fought for its survival but over the time it has  shaped better itself to survive for such situation in this global turmoil.West will see many more turmoil when India being conservative in its approach in economy stands less affected much before it did up till now .

Perhaps it is the west who now needs to reboot I should say

Rupee vs Dollar

How can dollar determine the strength of Indian rupee?? This had been a question which ponder's me whenever i look into the newspaper reading that rupee slide down by 0.x/p against a dollar...

There had been some frequent case ,which has compelled me to think that is it really about the dolllar that determines the strength of rupee or there some more factors as well .No doubt the dollar has become the standard parameter to measure the strength of once own currency and economy but the question which now arises is that why not the Indian rupee be used as  such parameter .Although it is quite early to say that Indian economy or currency can be a standard measure of strength of a nations economy but here are some of the facts that determine the avg condition of rupee

In the current situation What could India’s business people possibly do where  the rupee is depreciating against the dollar  ,Perhaps one solution to counter with the downside would be is to increase trade with Europe USA Euro zone and others ,this could possibly bring relief in export import sector but one must see these econimis zones are doing no better these days .

 INR is still not fully convertible and also global trade can not be done with INR. USD, Euro and JPY , UKP are the standard currencies. Bulk of the international trade is being done with USD. ....thus giving a +1 to dollar 

One of the first major hits that the economy takes when rupee tumbles is the rise in cost of imports.
India imports 70% of its crude oil and a falling rupee means that the government will have to pay more.Although oil and petroleum prices are controlled, as unfortunately the end consumer bear the burderened  of this increase costs.

Some Negatives of Falling Rupee is that We know that higher fuel prices can spiral into  increase in inflation as industries across the board take a hit. This dreadful cycle of higher costs for crude oil resulting in losses for government units and higher fuel costs for industries and the end consumer is a challenging situation for the Indian economy. The falling  rupee also hits companies which rely heavily on foreign currency outflows to keep business operations running. Take for example the airline industry. For airlines that service 
international routes – International airport fees, lease of airplanes, salaries of expat pilots, jet fuel prices and many more relatively fixed costs are dollar driven. Such outflows in dollar terms become costlier when realized when local currency falls.

A further hit in demand for foreign travel is taken as the common man is likely to cancel outbound overseas trips during these times. Flights, hotel stays and every other service in foreign countries becomes more expensive as the purchasing power of rupee falls.

Even domestic airlines scramble to keep fuel and airline lease costs under tab by implementing measures like avoiding flying at high altitudes, sourcing cheaper on-flight meals, hire local pilots and taxing 
aircrafts with one engine only.

A falling rupee is also bad for the share market as the negative trend not only portrays a grim picture from a pure number crunching approach but also weighs in on investor sentiment. Foreign Institutional Investors (FII) may suddenly go on sell mode if fear of future losses outweighs likelihood of gain.On the upside, times 
like these are excellent buying opportunities. The stock market is currently trading in the vicinity of 4 month lows and blue chip stocks are bottoming out.There could be an enormous gain potential for such stocks in the long run. Investors who have made their millions from the share markets wait month after 
month for opportunities like these to buy-in at lower prices and sell when markets rebound.

There are some Positives  of Falling Rupee In the midst of this chaos as the rupee tumbles, industries with dollar dominated revenues may in fact benefit from the depreciation of local currency. A prime example 
is the Indian IT sector which relies heavily on overseas revenue.As a majority of revenue comes from overseas markets, companies like Wipro, Infosys, TCS, etc may witness higher realization of their dollar dominated revenue. However with low global demand and weaker growth forecasts, the full potential of the upside of rupee depreciation for the IT sector is yet to be seen.Sectors like domestic travel 
could witness a boost as travellers will prefer to stay away from foreign destinations where they will get a subdued bang for their buck for the time being. Even Indian expats  living and working abroad benefit from rupee depreciation. If they are paid in dollars, the realization potential of their salary in rupee spikes.
The rupee has lost about 22% since the beginning of 2012 and more than 11% since February this year.Certain analyst camps blame the downfall on global concerns while other claim domestic woes are fuelling the drop. The government and mainly the RBI will need to intervene and clamp down on the sliding rupee to add stability to already volatile markets.The poor performance of rupee is a drag on the Indian economy however there are definitely certain upsides to a falling currency which represent gain opportunities if investment decisions are taken at the right time.

Although keeping an Optimistic view I am not sure about what will happen to rupee in next 6 – 12 months, but I can tell you will confidence that Indian rupee is only going to get stronger in longer term (5 – 10 yrs timeframe), which is based on the fact that Indian economy is going to grow much stronger than any other economy of the world (except China).