Monday, October 17, 2011
Friday, September 3, 2010
New U.S. Visa Fees is the change only to be criticized or can we see anything more coming up soon?
- The majority of the individuals who apply for H1-B visa are students and those always have a choice of applying in student visas.
- Majority of the Indian firms who send there employees on a temporary period abroad are the ones who apply for H1-B visas however the percentage of these is incomparable to others. The reason why they send there people is simply based on the concept of high profit earnings (i.e. all IT companies charge there counter parts in US on a monthly basis for the service they provide on the other hand the Indian employee is normally paid on a daily fixed expense+ Indian salary or only on daily expenses abroad basis, the net difference is simple profit made in body shopping)
- As we are taking about big corporations whose reason to send an employee and earn over per head is more than mere fee H1-B despite the fact it will add to the cost it will make no difference to the number of people sent by these firms abroad.
- Employment Drawbacks: if and only if one would not have any prospects of future earnings they would drop a plan to avail H1-B and as there is no difference made in the number of visas allowed it makes no difference to the overall employment opportunity in US on part time or full time basis.
Thursday, August 12, 2010
Limited Licenses to new banks in private sector
Sunday, August 8, 2010
Common wealth. What is more uncommon about it, the expenses, the speculations or the reactions?
Wednesday, July 28, 2010
Tightening Monetary Policy: Repo and Reverse Repo
LAF can be simply defined as gap between the repo and reverse repo rate incorporated in 2000.The broad objectives of LAF are:
• To give RBI greater flexibility in determining both the quantum of adjustment as also the rates by responding to the system on a daily basis.
• To help RBI ensure that the injected funds are being used to fund day-to-day liquidity mismatches and not to finance more permanent assets.
• To help RBI set a corridor for short-term rates, which should ideally be governed by the reverse-repo (top band), and repo (lower band) rates. This would impart greater stability in the markets.
D. Subbarao, in the disclosure also talked about the LAF to be narrowed to 125 bps thereby reducing the volatility.
However, the change in the rates had empirically no impact on the growing sectors, i.e auto and real estate immediately. It may be because the hike was an expected event or it may be just a short phenomenon.
The question which becomes pertinent here is the impact of hikes in the long run on the growth sectors and on the inflation. It is also expected that deposit and lending rates are next on the list. What will be its impact?
Sunday, July 18, 2010
Lending policies is there any safe way out? Liberalized or conservatism which view do you hold or is there any third way out?
Monday, July 12, 2010
Is Inflation problem India-Specific?????????
The year-end inflation figures as given from CIA Fact Book for India are 8.3% (2008) & 10.9% (2009), respectively. This year we have seen double digit inflation figures with WPI being at around 11 % in March 2010. Strong demand, supply constraints, rise in oil prices all are set to pressurize the Indian Government while making economic policies.
As recently we saw central bank’s initiative to tame inflation by shifting the BPLR system to the base rate system in which credit could not be lent to anyone at a rate below the base rate. Sure enough, this way of contracting the money supply help in taming inflation as the interest rate would be transmitted to the end-consumer in this way & hence would curb their spending thereby reducing their demand, & hence control the supply led inflation.
But the issue of concern is that is this inflation problem India-specific or is the same with other developing economies as well.
"This time around, inflation does appear to be an India-specific phenomenon, as there are no global factors at play as was the case during 2008," said Mr. Saumitra Chaudhuri, Member of the Planning Commission.
The question to ponder over is that is the RBI’s measure only sufficient to control inflation or we need to do something over our aggregate supply. Well, in the short-run, it would be impossible to increase our aggregate supply because it will take some time to start new plants and all. In the short-run, contracting money supply is the measure while in long run, focus should be towards improving the supply side.
When we see in developing economies like BRICs nations, we see that unlike India & China, Russia’s inflation has declined considerably. The reason may be attributed perhaps to the fact that India & China are already working at nearly full capacities & hence growing demand in these economies is further causing the inflationary pressures to rise.
What is your opinion from India’s perspective????? Is inflation problem India-specific????Are we running at nearly full capacities????Is RBI’s step sufficient to tame inflation?????