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Posts Tagged ‘India’

India shining

May 2, 2013 1 comment

Another feather in cap. It was indeed a heartwarming moment to hear that Asian Development Bank warned their delegates visiting India not to show bare legs or wear short dresses when in India as this could hurt Indian sensibilities and may lead to sexual harassment. So far, I had only heard our politicians suggesting women to be appropriately dressed to avoid inciting the incidents by dressing, in their definition, vulgarly. I was really moved seeing so much concern for our feelings by any foreign agency. My heart fills with joy with a mere thought of how well we have created awareness about our sentiments and outlook towards our women in the world.

The advisory posted on ADB website further elaborates on their anxiety about our sentiments. Note mentions that trousers are acceptable, but shorts and short skirts are offensive to many. What a word of wisdom! Isn’t it? If not offensive to others, such clothes can definitely cause accidents on Indian roads. Considering the fact that Indians have an immaculate eye to appreciate beauty, it is impossible to avoid turning head while driving if a girl showcases her tall, lanky, long legs. And if an accident happens, you would not waste a moment accusing the driver, escaping the root cause analysis to identify the main culprit. Such a step by ADB will not only save hundreds on the       road but help our police and judicial system to have some peace of mind.

What we can’t see here is ADB’s hidden concern about India being branded as a country of diseases like dengue and malaria. While visiting India, mosquitoes always come up as a big concern. How could mosquitoes grip their intense desire to feast on exposed and swanky legs? Trousers and pants can actually keep doctors away from these delegates on their trip to India. Shouldn’t we be grateful to ADB’s thoughtfulness that is doing an impeccable work at India’s brand management?

The advisory note on the website has something more that can actually make you sobbing with a thought that can somebody on the earth be so caring and compassionate. Note says “You would be better off avoiding public displays of affection such as cuddling and kissing each other in public (not just for gays). Kissing and embracing are regarded in India as part of sex: do not do them in public. It is not even a good idea for couples to hold hands”. In a country like India, where women are worshiped in the form Goddess Durga, Saraswati, Parvati and many more, how can we tolerate someone cuddling and kissing them in public? Do you think the great keepers of our culture and ideology, Shiv Sainiks, RSS and Bajrang Dal would sit on one’s hand? Not to be surprised if these organizations later want ADB to contest in next general election with their unconditional support.

ADB might as well receive support from a certain sect of sadhus from India who have a fundamental right to strip and shed their clothes anywhere and anytime as part of their holy path. They would really appreciate if someone curbs their competitors.

Respect comes from the bottom of heart for ADB and kudos to people for making India shining.

 

Surging Market: Reacting to what?

August 16, 2009 1 comment

March ’09, price-earnings (P/E) ratio for BSE SENSEX based scrips (30) was 12.68, and by July end it was 19.1. The higher the P/E ratio, the higher price per share than annual earnings per share. The statistics mentioned above clearly show that how the stock prices have shot up too fast. Considering failing monsoon and drought in India and current situation of global economy, Indian stock market looks overvalued.

I agree that top 6 out of 10 economies of the world have shown positive growth after 5 quarter consecutive negative growth. From January 1st, The DOW is up 6% and NASDAQ has returned 26%. In Europe, Spain’s and Sweden’s indices are up 18% and 30% respectively since January. The Hang Seng in Hong Kong has gained 45% plus in the same time. Brazil’s Bopseva is also up 50% since January. It is being said that pumping money into emerging markets would help world to come out of the financial crisis. Because of which many believe that Brazil, China and India share market are booming.

Now it”s time to analyze India’s market, from January it appreciated mind boggling 60%. If we look at the statistics from March to August ’09, BSE touched 8000 in March, and it almost gained 100% by coming close to 16000 in August. This figure is far ahead of Brazil or China. Everybody knows that demand is drooping in India. India’s imports have been contracting. The ability of India to absorb goods and services from all over the world is coming down. It is hard to predict when demand will bounce back. In light of India facing rapidly increasing commodity prices, pandemic eruption, slow sales growth, biggest drought of the century and sluggish job market, I don’t find any motive for market to surge. Disinvestment could be counted behind this race, but this is a long process. If I remember correct, after budget only 1 PSU IPO has been floated. Rest is lined up and still market is booming.

Is this again a bubble or a collection of many bubbles? Famous analyst Abheek Barman may not be wrong in saying that if earnings don’t grow as fast as share prices, the price to earnings (PE) multiple will bloat, setting us up for another crash.

Surging Market: Reacting to what?

August 16, 2009 Leave a comment

March ’09, price-earnings (P/E) ratio for BSE SENSEX based scrips (30) was 12.68, and by July end it was 19.1. The higher the P/E ratio, the higher price per share than annual earnings per share. The statistics mentioned above clearly show that how the stock prices have shot up too fast. Considering failing monsoon and drought in India and current situation of global economy, Indian stock market looks overvalued.

I agree that top 6 out of 10 economies of the world have shown positive growth after 5 quarter consecutive negative growth. From January 1st, The DOW is up 6% and NASDAQ has returned 26%. In Europe, Spain’s and Sweden’s indices are up 18% and 30% respectively since January. The Hang Seng in Hong Kong has gained 45% plus in the same time. Brazil’s Bopseva is also up 50% since January. It is being said that pumping money into emerging markets would help world to come out of the financial crisis. Because of which many believe that Brazil, China and India share market are booming.

Now it”s time to analyze India’s market, from January it appreciated mind boggling 60%. If we look at the statistics from March to August ’09, BSE touched 8000 in March, and it almost gained 100% by coming close to 16000 in August. This figure is far ahead of Brazil or China. Everybody knows that demand is drooping in India. India’s imports have been contracting. The ability of India to absorb goods and services from all over the world is coming down. It is hard to predict when demand will bounce back. In light of India facing rapidly increasing commodity prices, pandemic eruption, slow sales growth, biggest drought of the century and sluggish job market, I don’t find any motive for market to surge. Disinvestment could be counted behind this race, but this is a long process. If I remember correct, after budget only 1 PSU IPO has been floated. Rest is lined up and still market is booming.

Is this again a bubble or a collection of many bubbles? Famous analyst Abheek Barman may not be wrong in saying that if earnings don’t grow as fast as share prices, the price to earnings (PE) multiple will bloat, setting us up for another crash.

Outsourcing: Boon or Bane for India

August 15, 2009 7 comments

Over last few years, business process outsourcing industry has grown tremendously. Outsourcing actually came to India long time back in eighties when many foreign airlines opened their back office centres in India. Huge difference between Indian National Rupee and US Dollar and cheap labour availability, who were willing to work in shifts (to provide 24 hours support to front office), prompted multinationals to come to India to increase their profit margin.

Outsourcing flourished in India as it realised India’s needs also. Increasing population, poverty and unemployment have always been long lasting issues for the biggest democracy of the world. Limited government jobs and fistful of companies in India were not sufficient enough to create ample job opportunities. Outsourcing came as a big relief to India. Good number of jobs was created. Indian foreign reserve started increasing providing a boost to economy. People who could not continue their studies after 12th standard, were also able to earn decent money, which was a mirage earlier. Once upon a time, educated people were wandering on streets, now even 12th standard pass out was able to sustain a decent life style. I could remember, when we were kids, we were often told to study hard by our parents and become IAS or other government servant. With each passing year, qualifying a government service, even upper divisional clerk or lower divisional clerk, became increasingly tougher. Probably population, with limited resources and slow economy growth were the reason behind that. In that scenario, outsourcing was nothing less than a boon for India.

But then, anything good comes at a cost. I do not know if I am qualified enough to pass such comments, but my expressions are the outcome of what I have observed and studied on outsourcing and Indian economy.

Many people have written on the cultural shock that Indian society has received with the advent of outsourcing. Youth is moving away from our culture and values.. blah blah. I won’t get into that, rather I would like to draw attention to the gradual intellectual incapability and complacency creeping into the youth of the nation.

Based on my professional experience, I can say that only left over work comes to Indian software industry, which is labour intensive and does not require brain (with few exeptions as well), for example data entry, software testing etc. If I try to draw an analogy between software development works and constructing a multi-story building, the architecture, foundation and design part take place in US or Europe, the finishing or patching part comes to India. We paint a wall or do toilet/kitchen fittings, or if a wall was erected wrong and demolishing the wall and re-erecting would cost more there, then it would be sent to us. This is absolutely my understanding; please correct me if I am wrong. Such kind of work limits the learning curve as we do not get the exposure of high end work, which ends at the point where outsourcing starts. Over to that, today’s youth tastes money right after 12th standard while working in call centres. This is the time when youth passes through the transition phase of life. Instant money, with malls and pubs around, are enough to drift him away from long term goals and ambitions in life. Many a time it has been seen, that student intentionally left school after 12th standard as they found good source of income in call centres. In future India can witness huge number of school dropouts which would in turn affect Indian economy in many ways.

This outsourcing could be a big bubble in the making, which could shatter Indian economy in coming years, probably 10 years or 20 years or even after that.