Indians are now going abroad with a return ticket
In this issue:
» NSE penalised for abusing dominant market position
» Diesel price will send the inflation skyrocketing
» 51% of India workforce is self-employed
» Govt finalising US$ 11 bn infra fund
» ...and more!----------------------------- A Good Time To Sell Bad Stocks -----------------------------
It's never too late to get rid of 'bad stocks'.
After all, you never know how bad a market crash could get.
But what are these 'bad stocks'? How do you identify them?
For answers to these questions, and more, click here to read on...
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As a result, India suffered a "brain drain" as many of its brightest and highly talented folks left the country to work elsewhere. The problems back then were also that our own economy didn't have enough opportunities to harness the full potential of these natives.
But the picture has reversed drastically now. The centre of economic gravity has moved away from the Western world to the fast growing emerging markets such as India and China.
A recent research on entrepreneurship surveyed about 153 professionals who returned from the US to their native countries (India or China) to start a business. Majority of them asserted that there were bigger and better opportunities in their own countries than in the US.
This augurs well for India. Despite having a massive young workforce, we still suffer a serious dearth of highly skilled professionals, entrepreneurs and leaders who can drive the engine of economic growth going forward. So the returning emigrants will actually be valuable intellectual capital for our country.
But it would be too naive of us to raise the toast right away. There are several things that need to be fixed before we can gain the full advantage of such intellectual capital. Now, it is a widely known fact that start-up firms are very important for an economy's good health. For instance, 62.5% new jobs in the US are created by companies that are less than 5 years old.
But do we have a really conducive business environment for start-ups. Not really! Though our country abounds in opportunities, several factors such as a dearth of initial funding sources, lack of support infrastructure, regulatory hurdles, etc. are major roadblocks that entrepreneurs are constantly faced with. We need to build strong platforms to unleash the full potential of our returning emigrants.
Do you think India will live up to its promise for the returning emigrants? Share your comments with us or post your views on our Facebook page.
01:08 | Chart of the day | |
Such steep hikes in fuel prices are going to severely hurt both businesses and households. It is important to note that the hike would have been much higher had the government not lowered its taxes on fuels. The government has now abolished the 5% customs duty on crude oil. It has lowered the import duty on all petroleum products from 7.5% to 2.5%. Additionally, it has also cut excise on diesel from Rs 4.6 per litre to Rs 2 per litre.
Today's chart of the day shows that diesel prices in India are one of the highest in South Asia. While diesel costs a bit more in Pakistan, the same is substantially cheaper in neighbouring countries Bangladesh and Sri Lanka.
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MCX-SX, the rival of NSE and the firm which filed the case had alleged that the latter had attempted to kill competition in the currency derivatives market by, among other things, not opting to charge for its services. Competition Commission of India (CCI), which slapped the fine on NSE, found the accusations to be true and also directed the firm to refrain from activities that would unfairly protect its dominant position in the currency derivatives market. We believe that the action taken by CCI is indeed the right one. Trying to kill competition by cross subsidisation isn't really the right way to compete according to us.
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The survey also highlights one more important point which is the difference between the wage levels of male and female workforce. Female-male wage ratio is 0.82 in the urban area. This ratio is even worse in the rural area, just 0.63.
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The Indian Government plans to spend US$ 1 trillion to build roads, ports and airports by 2017. The debt fund is expected to provide long term low cost financing options for these projects. The same is expected to get launched within a few months.
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Japan was the biggest gainer of the week up 3.5% while France was the biggest loser down 1%. In Asia, China closed the week up 3.1% while Hong Kong was up by 2.2%. Indian stock markets were up by 2.1% after a surge of 513 point on Friday. This was on the back of positive sentiments that inflation would come down as the government would not raise diesel and LPG prices. However, the government's decision to raise the same late Friday night proved the markets wrong. Singapore closed the week up 2%. In Europe, UK and Germany were down 0.3% and 0.6% respectively. In the Americas, Brazil was down by 0.1% while US closed the week down 0.6%.
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04:45 | Weekend investing mantra |
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22 Responses to "Indians are now going abroad with a return ticket"
Vivek
Jun 28, 2011Corruption ! Corruption!! &, Corruption !!! at every step in India. Hypocratic politicians, &, extremely tolerant public. My India Is Great !!!
SRPAL
Jun 27, 2011The fire against corruption has been lit. This is good and long overdue. But we must not loose track of the main issue . We must acknowledge to many of our faults first .How has all this corruption first of all come from? We must firstly address the education and family systems of upbringing. Is there any fault here. Then we must look seriously at our education and learning requirements and what is the flaw. Lastly we must all stand up for our rights and also our responsibilities .We all make a nation. It is we that must change to change the nation. At the present rate it will not be long before we also have to read / hear not against but for corruption.
Let as all awake and raise over this curse--this sickness,that is threatening to cloud --knowingly and also unknowingly every single one of us. All i can say is for those comimg back ,if they have solutions to address this then only please come --other wise it is better to stay put.
vkshah
Jun 27, 2011at present, our country is at the mercy of God. "RAM BHAROSE HINDUSTAN'.
I am sure we will not be able to improve ourself even for the next 500 years , irrespective our boasting of emerging India. 'Emerging India" is for the Marketing of products and it is for other nations- they see the potential of highest number of consumers for their product.
unless there is a micacle(which is not possible), we will not level up with the developed country because of our current chaos and all evils in the country.
S.K.Damani
Jun 27, 2011Dear sir,
you have forgotten or missed the most important issue which makes any indian to return and start business here is CORRUPTION. Yes you may see people in Gujarat / Hyderabad/ Kerala/ or TN, returning, but in other states the basics are not available. PArticularly in M'tra. In the 21st century, No regular power is available. Frequent Power cuts and one of the most corrupt auth. in power, sends shivers down the spine to think of coming back. More particularly if you have a good job, particularly in US, it is still not worth it.
I have seen it first hand by a visit to US.
Thanks, we can afford the sometimes loneliness / miss the mother's hand made tasty dishes, but to have a merit based good life. US IS MUCH MORE BETTER.
The oppn. of the congress of not including the PM in LOkpal bill is the glaring example that says that definetly the PM is either corrupt or is surrounded by persons, who will not allow him to say or work an inch. Pity the intelligent sardar.
Thanks
Damani
seth
Jun 27, 2011The greatest challange faced by an Indian returning from the West is to reconcile to the corruption and hassels faced in day to day living. The 'fixing' that is required to get the simplest of things done like getting connected by the utilities, electricity, water; paying taxes, getting a sales tax registration, complying with the various trade laws in each State etc etc. The issues related to banking finance, skill sets available, attitude of Indian workers have generally been discounted by the returning Indian. Its always the hassels of the small things in day to day life that upsets them as the one thing ESSENTIAL FOR LIVING IN INDIA IS PATIENCE and that is one thing they have lost touch of while living in the West.
THEREFORE we have to take steps to smoothen the simple processes and connect the last mile of the utilities efficiently and without the corruption prevelent today.THESE RETURNING INDIANS WILL INDEEED ENRICH THE INTELECTUAL CAPITAL OF OUR COUNTRY WE MUST WELCOME THEM.
QED
ajit maiti
Jun 26, 2011My age is 56. In my school age, I was used to hear about brain drain specially during naxal movement in seventies. That time too it was also a political issue. Same is still prevailing. Only change i noticed that economy in developed countries got saturated specially due to people high average age, resulting them to depend on new generation from developing countries and market shrinking. Our trading attitude do not allow to develop ourselves in every arena. Even we claim lot of development. But if we see we find that we had purchased some high technology from other country, not invested in developing high technology in our country. That is because of short cut to development. Where I believe China's approach is to be fantastic in development. Indian policy never recognizes intellectual property of own country because of vote bank. Now it is changing through privatization process too some extent.
Adi Daruwalla
Jun 26, 2011Its not only the BPL (below poverty line)people who face the brunt of price hikes but also the MIG's (middle income groups). The HIG's (high income groups) and the
HNI's (high networth individuals) continue to enjoy their luxuries. The MIG's are unfortunately left hanging like the fulcrum of a clock swaying to the tune of the policy makers/our ball breakers, while our desh's THE MONEY sits in foreign banks across the globe.
Sarat Palat
Jun 26, 2011I do agree with the write up. India has got huge potential to develop and grow. Eventhough the recent scams and scandels had tarnished the image of India, these sort of things are happening in other countries as well. Being a democratic country we brought it to light and the investigation is on.
However, the issues like infrastructure, the delay and redtape in getting the licences, and moreover civic sense of citizens to be improved.
Aloysius
Jun 26, 2011So far our babus & netas have done only lip service and also do a lot of window dressing. Once the guys are roped in they come for their share of pie. This has led to lot disillusionment among those who have come back with high hopes. Frankly our netas do not have political will to do what they say and they are after only the vote bank business. If look at the power sector, till date what has happened? Similarly with national highways! Why the best example is the Jan Lokpal Bill itself. Lot is left to anyones imagination. We are only a dreaming nation. Currently what ever is happening in Indian economy is by default and not by the deeds of any political parties. We are a country of huge population and what we produce is not enough for our own consumption and hence all these growth rate.
Rajesh
Jun 28, 2011China & India sure have bigger opportunities compared with West. That would surely lure few emigrants to come back to their home country after a stint abroad. However, those who return, usually face challenges much bigger than they anticipated. Many spend few hugely frustating years before they choose to go back... due to reasons including family pressure (more from kids)and inability to adjust to currupt bureaucracy and bureaucratic systems. I feel that such trend will be insignificant and would continue to remain so in time to come.