Beruflich Dokumente
Kultur Dokumente
Sensex 19136.61 Nifty 5751.95 Dollar 45.84 Gold 20385 Silver 41764 Crude Oil ($) 85.56
Investeurs Chronicles
INSIDE
• Current Chronicles
• Cover Story – Bihar - New
Found Confidence &
Exuberance Returning
Growth
• Open Forum – Is India
Story full of sound and
fury signifying nothing?
• Emerging Markets
• Outlook – US Dollar
• Financial Q
• In Focus – Emerging
scams in Emerging India
Star Performers
Although it has been an all-round performance by the state, there are three sectors which have
really stood out in such an astounding growth. Top slot goes to construction industry which
has registered 35.8% growth followed by communication with 17.68% and trade, hotel &
restaurants with 17.7%.Tele density has shot up to 22.18% from a meager 5.18% in 2006.
Internet connections in rural areas have gone up by leaps & bounds. In fact, two districts of
Bihar, Muzaffarpur & Khagaria have the highest number of internet connections.
Road connectivity is another feather in cap. About 2,417 roads were constructed in the state in
Cover Story “Bihar- New Found Confidence & Exuberance Returning Growth”
2008-09, while 415 kms were made in 2005- third of the national average.
06. It has contributed immensely to economic
development in the rural hinterland. Bihar has witnessed economic growth in patches
in past. However, it has been always eclipsed by
This improved state has attracted 3.46 lakh volatility. Such high volatility in growth figures
tourists in 2009 compared to 61,000 in 2003. has been on account of dependence of state
Per capita income has risen from 10,415 per economy on only agriculture. Even in
year in 2008 to Rs. 13,959 in 2009. It was Rs. agriculture, much is needed to be done.
7,443 in 2004-05. Despite rise in per capita Irrigation, flood control & drainage system have
income, consumer price index increased by 90 to be taken care of to avoid stagnation in this
points in the state between 2007-08 and sector. However, to tackle recurrent volatility,
November 2009-10 while the all India index economy needs to be diversified. Manufacturing
rose by 115 points. accounts for just 4-5% of the state income, with
the major share coming in from the
Is picture so rosy? unregistered sectors. That is, organized
Work in progress manufacturing still accounts for just under a
Some argue that recent growth in Bihar has
In India, growth has been largely driven by the quarter of the manufacturing activity in the
been on the back of the remittances by the
lesser populated peninsular India while the state. This segment has to be revived for
migrant bihari workers, whose number has
densely populated, mainland states have been economic growth to be stable.
grown to 5-6 million out of 100 million
retardants. The transformation of Bihar is,
population of the state.
therefore, vital to the transformation of India. Although, gradual, change in the state has been
Others lament about the fact that this
development has been largely in Patna. There steady. Considering that income of Bihari
Bihar has set its foot on the development path but immigrants is 3-4 times the state income per
is a deep disparity between capital & other
it remains beset with several challenges. While head, and they constitute 5-6 million of the total
areas of the state. Patna district has only 3.4%
Bihar has 8.5% of the India’s population, it 100 million Bihar population, that would have
of Bihar’s area and 5.7% of its population, but
accounts for a meager 1.6% of the total national been an addition of 12-20% to GDP-that is 0.9-
gets nearly 44% of the money spent by the
GDP. Landless farm laborers constitute about half 1.6% a year. It reflects the main growth engine to
state government. On one hand are couple of
of the state’s work force which is higher than 27% be within the state itself and not reliable on the
rich districts with average income of about
national average. State’s per capita, though immigrant population. Law & order has
Rs.37,000 & on other side, poor districts with
improved in last half a decade, still stands at one definitely contributed to this change.
average income of around Rs.5,000.
Cover Story
Despite all the pros & cons, something which stands apart is Land where good governance was a good distance thought for most
the new found confidence & exuberance returning to the of its inhabitants. Where, good governance meant giving, & that too
state. Bihar has shown that with efforts, intention & apparently to few caste constituencies for electoral purpose; Bihar
integrity involved in the functioning, turn around in any elections 2010 have broken that jinx for sure. This election is
situation is possible. outstanding & commendable for the state whose politics was used to
run on Muslim Yadav combination. This time people of the state
If a state accounting for around 9% of India’s population,
voted for development, for growth & for other common needs than
can lift itself up, it will lift the nation up with it.
on any casteism. To Nitish Kumar’s credit he reportedly didn’t refer
even once to caste during the poll campaign.
India is its people - the teeming millions who struggle for a foothold in
today's world. India is the hapless middle class for whom every new
day brings with it the reality that life is not easy, but that they have to
live, nevertheless. India is the slum dwellers, who do not know life
beyond the hell-holes that they inhabit.
Even today, a baby of a rural woman dies she couldn't reach the
So the question arises - Does this so-called growth reach Indians private hospital on time. The place she did reach -- a government
living at the lowest rung of the society? Does 8-8.5 per cent rise in primary health centre -- did not have the medical officer (who
gross domestic product indicate better living conditions for the may/may not have been busy getting a piece of that 'growth' at
poorest of the poor? that time).
Or
Though India is one of the world's top-10 performers in terms of Take the case of a tribal woman in India's heartland -- whose life
income growth over the last 40 years, but is far outperformed by much is going to be changed totally -- because 8 per cent GDP
poorer countries in terms of health and education. We need to look at translates to her being evicted out of her ancestral home and her
what is happening to the poorest of the poor,” land dug up for bauxite or chromium or hematite ore or coal.
Open Forum
fulfill ‘basic needs' - livelihood, food, clothing, shelter, education, health (mental
and physical), security, pleasure, dignity, choice, for all people of the country. In
contrast, the most published indicators seem to point that number of our dollar
billionaires is on the rise. The names of the top industrial house owners are now
part of the global rich list and going by the public display of their spending, it
does seem that they are getting richer.
Thus, if we look closely, the growth is happening across India in the context of
the rapid spread of information and communication infrastructure -
approximately 700 million mobile connections, a fast growing Internet network,
and widespread access to media - which is allowing information and ideas to
travel faster than ever. As a result, development in India is perhaps uniquely
disruptive in global history: India is transitioning from a large, rural, agriculture-
As for education, the least said the better. A lot of big talk is based economy to a modern. And thanks to pervasive media access, this
doing the rounds about free and compulsory education for all. transformation is widely visible to much of our population, whether they are
But nearly 50 per cent of India's children are still not going to part of the growth story or not.
school. We must remember that every child who is not in school
The nature of the government's role has shifted significantly in the years since
is doing labor somewhere -- at home or outside. Is there a
Independence and over the years, the government has substantially changed the
political zeal to deal with child labor, a shame for a country that
means by which it seeks to achieve this goal.
boasts of 8.5 per cent growth? Let's face it: we have absolutely
failed our children we have not been able to give them even a
The Indian state has taken a place 'on the balcony': focused less on direct
fraction of their rights.
interventions in the economy, instead functioning as the player who possesses
Law and order is the backbone of any organized society. A recent broad oversight, establishes independent regulatory institutions; makes the
article says that India averages only 142 policemen per 100,000 social investments necessary for inclusive growth; and finally, influences the
populace when the UN standard is 222. If we were to extrapolate economy through policy and incentive-led investment, taking advantage of
it to a billion plus population, we have a deficit of 800,000 entrepreneurial innovation where possible. It’s time we wake up and focus on
policemen. It is, therefore, a pressing issue that needs to be inclusive growth so that India emerges as a developed nation in 2020.
taken care of on a priority basis.
the market expectations. This will have direct Shifting focus on Indian market, since
November 10, FIIs have been net sellers in the Libor Rates as on November 26, 2010
implications on the long term interest rates,
Indian equity market of more than Rs 1,200 Libor % 1 mth 3 mth 6 mth 12 mth
thereby, stifling prospects of a sharp US dollar
US 0.26 0.29 0.46 0.78
recovery. Hence, US$ is projected to depreciate crore. This is in contrast to the net buying of
Euro 0.75 0.97 1.21 1.49
in the long term with Fed’s QE-II money being more than Rs 8,700 crore by FIIs in the first Sterling 0.58 0.74 1.03 1.49
10 days of November. Such market sentiments Yen 0.12 0.19 0.36 0.60
circulated in the economy.
Swiss Franc 0.14 0.17 0.24 0.52
will continue, at least in short term with Forward Cover % as on November 26, 2010
Although dollar appears set to depreciate in the
renewed interest of investors in US$. 1 mth 3 mth 6 mth
long term, short term expectations are US 8.24% 6.38% 5.58%
Consequently, US $ is expected to remain
completely opposite. Dollar is expected to gain
strong against Rupee in short to medium term
Euro 7.83% 6.22% 5.42%
ground in near term. Sterling 7.62% 6.15% 5.39%
but depreciate over a longer period horizon.
Yen 8.91% 6.75% 5.97%
First Greece, & now, Ireland approaching Euro Rs/Dollar Price range over a long period is Swiss Franc 8.80% 6.75% 5.91%
expected to be in range of 45-46. Source: Homefinance.nl
Union for bail out, euro has been battling under
Financial Q In Focus
1. The double-entry bookkeeping system is the basis of Emerging Scams of Emerging India
the standard system used by businesses and other
organizations to record financial transactions. From
CBI exposed a racket in which key officials in large finance firms, including
which country does it originate?
banks, sanctioned large-scale corporate loans, while disclosing confidential
2. British Virgin Islands is mostly notable for what is
information in return for bribes.
not subject to taxation. Which kind of taxation was
introduced there in 2005?
3. Which European country was the first to introduce
paper money in 1661?
4. In 1974, the United States created the Library Group,
an informal gathering of senior financial officials.
What is this group called today?
5. The VAT (Value Added Tax) was invented by a
French economist, Maurice Lauré, joint director of
the French tax authority. Which year was VAT first
introduced?
6. Who owns The Wall Street Journal (January 2007)?
7. Which Stock Exchange, established in 1602, is
considered the oldest in the world?
SEBI is set to investigate trading patterns in stock of firms named in CBI probe
8. What is the scientific study of currency and its
into the bribes-for-loans scam.
history called in one word?
9. Which period of time does a balance sheet Source: www.livemint.com
represents?
10. A business, product or asset that once acquired and Answer of Quiz: 6
paid off will produce consistent cash flow over its
lifespan. Please give us a slang name for such an (1) Diners Club (2) Avis (3) Rasna (4) Infosys (5) Arzoo! Inc. (6) Xerox (7) Small
'animal'...... is beautiful (8) Guinness (9) Wipro