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Inefficiency of the monetary policy Why Increase in Repo and Reverse Repo Rates has not been Able to Tame Inflation? Inflation is the biggest problem of India. Spiraling inflation close to double digits have taken economists, politicians, businessmen, policy makers & Mr. Dhruvi Subbarao aback. This may be pronounced as the toughest term for any RBI Governor who has to face constant criticism from almost every newspaper for constantly revising the key rates upwards. And on October 25, yet again it happened for 13 th time since March 2010. The spiral of inflation has caught the economy and RBI can’t do anything at the moment. Rising rates have affected the economy and growth has been compromised. With food inflation at 10.63% and general inflation being nearly 10% it’s a tough call for the policy makers. There is a tradeoff between inflation and growth and RBI has chosen to favor policies to reduce inflation. The interests of the common have been kept at the top. With

Since last one year I was hearing that all the unwanted messages won't come now as TRAI is taking steps to curb this message chaos that is created by the so called consultants, read estate agents, slim belt sales, etc. This was a welcome news and it was confirmed that starting Jan 1, 2011 the scheme will be put to effect. However, ours is a country where you can never expect things to happen on time (DELHI METRO is an obvious exception). So the process was delayed 4 times an finally on Sep 26 (Plus/Minus one day) the scheme came into force. As I said this move has always been welcomed by the mobile phone users what came along was the regulation capping maximum number of messages sent to 100 even by normal users. Well, the news din't effect the generation of my parents obviously because for them calling is a better option. But I was particularly shocked am was really sad over the issue. What I felt was like a child whose favorite toy has been snatched away. The whole d

Africa, once the richest continent in the world has a painful story to its part. It has been the most dominated continent and even the most exploited one. Centuries of foreign rule left the African population to shackles. Poverty, starvation, unemployment, political disturbance are still the problems rampant in most of the African countries like Congo, Zimbabwe, etc. Most of the African countries got freedom in the late 1950’s and the new unstable governments lacked impetus and confidence to help the ailing population. As a result African population went deep and deep in the vicious circle of poverty. Africa is the world’s second largest continent it is also the most populous continent just after Asia. The population of Africa is more than 1 billion. With such a massive population even if more than 35 % of the entire population is living below the poverty line it is very clear that African market is one which has one of the most highest potential for growth. What is lacking in Afr

India is the world’s largest democracy with a population of 1.2 billion. It has around 6,30,000 villages which are homes to around 70 percent of the Indian population. Rather the concept of urban India is a new one. From ancient times Indians adapted a village life style of living. There was limited trade and villages were self sufficient. Harmony, unity and diversity the three pillars of Indian culture are primarily adapted for the village life style. Today also more than 50 % of the people in India depend on farming (agriculture and allied activities) for their livelihood. Ours is an agrarian economy. Though the share of agriculture has fallen from a peak of more than 70 percent to the current levels still it is significantly higher than what is there in developed countries (<5 %). Rural India has faced many problems in the past and till today problems in rural India have just multiplied. Poverty, unemployment, low health and sanitation levels, poor infrastructure, etc are