Taj Mahal, Agra, India.

Taj Mahal, Agra, India.

culture has always been one of the most important factors affecting the business environment of a nation. no business could survive if the culture does not accept it. a good entrepreneur carefully analyses the cultural history and the various cultural diversities within the area of his operations.

India is the land of diversities. a secular nation where more than hundreds of languages are spoken in 28 states and 7 union territories. the mentality and behavior of people differ with region, religion, economic status etc. an entrepreneur has to carefully scan the culture of a place before carrying out his business. otherwise the business wont survive.

after 1991, India has witnessed the arrival of a lot of big multinational companies. especially in the consumer goods sector. however the growth of these multinationals have been limited to only a few cities of the country. the metropolitans seem to have an unparalleled number of big names of the industry compared to the others.

why are the small cities lagging behind?

cultural stagnation is the answer. yes, its the culture of these cities which is not allowing the proprietors and investors to take the risk. compared to the big cities of the country, the others have experienced a very nominal change in their culture. the people are not yet ready to accept the western way of living(culture is a very big term to use here). the open minded western philosophy has proved to be a bit too much for the not so educated Indian population. as a result, most of the foreign multinationals are yet not sure of their acceptance and profitability in these markets.

who is at loss?

obviously the people of the small cities. they are the ones who are missing out on opportunities. the wide range of products and services offered by these companies are not reaching these people. the foreign developed technology than can help in the development of the society and economy  are not being utilized to its fullest. furthermore these companies would invite competition in the market between these and the other local firms which would force them to bring better products and services and ensure consumer satisfaction. an increase in industrialization would generate more employment and income for the people.

another point to be noted is that these multinationals indulge in foreign direct investment. this creates infrastructure and the base for further development. moreover increase in their numbers also brings foreign exchange for the country. overall the huge prospects of development offered by the multinationals are being utilized only by less than a dozen of cities in the country while the rest are still waiting for their arrival.

what should be done?

the only solution is that people have start accepting the changes in the Indian culture. in today’s world of globalization, the people must move on with the changes across the world and stay up to date with the other economies. what is to be understood is that culture is not static but dynamic. it absorbs whatever comes to it and changes for the betterment of the society. India is famous for its rich cultural heritage, and a good and civilized culture is open to all mentalities and lifestyle habits. if the people want a change then they are the once who have to change themselves so that they can offer a better future to the comming generation who will decide the future of the country.


India is country with great possibilities of massive industrial development on the international level. only the society has to open up and welcome the entrepreneurs and have a broad outlook towards the goods and services they introduce to the economy.

Store closing: half-off

time to move on

one of the most significant changes introduced to the the Indian economy was the policy of privatization. privatization means the process of transfer of ownership of a firm from public sector to private sector. the economy has benefited a lot from this. but there were still a few industries were the private sector was not allowed to enter. these industries are considered to be of great strategic importance. one of the major consequences of the policy was that the performance of the industries falling under it increased significantly.

but in the present India there is a need for the private sector to enter into few more public sector industries so that the people could benefit from it. the public utility services are suffering from poor customer satisfaction. say the electricity department or the telecom services or the security issues.

there is very famous saying – ” in our country, you can guarantee pizza in 30 mins but not police, ambulance or firemen.”  moreover the term “sarkari naukri” ( government job) has become more like a criticism rather than a credit. most of the people in govt sector are negligent towards their duties. the job security is a major factor for this kind of a behavior. the govt employees know that their jobs are secured and thus they do not take it seriously. in fact today many youngsters aim for a govt job so they don’t have to work hard at work.

last night, there was a power cut in my locality. so i went to the electricity board office of my area to file a complaint. surprisingly there was not a single person in the office. the working hour as clearly mentioned on the notice board was till midnight it was just 6:30 p.m.

same is the case with police. the common characteristics of the police are that they are always late and corrupt. the newspapers are full of such examples. during the Mumbai attacks, most of the police involved were carrying .303s or self-loading rifles like those adopted by the British Army in the 1950s.

the question that arises is that why is the government not allowing the private sector to enter into these fields. the purpose of maintaining control to promote public welfare has already failed. instead if they are privatized then it will ensure better services along with consumer satisfaction. these inefficient sectors are only causing losses and huge government expenditures and the return is hardly noticeable. and we cannot affor to compromise when it comes to basic needs and our security.

i think that we can look at the situation differently. seeing the circumstances, this can be regarded as  a possible business opportunity. if these few inefficient sectors are opened for privatization, then they can be very profitable indeed. these fields will be new and very fresh for the entrepreneurs and they can fully exploit the scene( i mean in a positive way).

but the biggest benefiter will be the people. private sectors ensure better utilization of resources and efficiency and effectiveness in operations. they have a good and well qualified management board.

mind you guys that i am not suggesting 100% privatization of these sectors. no, that might not be a very good idea at this point. initially a little bit govt shares are require for issuing proper guidelines and regulations of the new investors. this would also help in protecting the security of the people from falling into wrong hands or emergence of a monopoly of a private firm in a crucial industry.

if the govt thinks about this idea and takes the necessary steps, then this would definitely be a good deal for the country.

Reserve Bank of India Headquarter in Mumbai

Reserve Bank of India Headquarter in Mumbai

the reserve bank of India has increased the repo and reverse repo rates.the repo rate has been hiked by 25 bps and the reverse repo has been increased by 50 bps.the new repo rate is 6% and the reverse repo is 5%. this decision of the RBI has invited a lot of criticism as well as appreciation.

let me first explain the meaning of repo. repo is the rate (of interest) at which the central bank (RBI) funds the other commercial banks of the country. the commercial banks borrow money from the central bank for their operations. for this they have to pay an interest to the RBI. similarly the RBI may also borrow money from the commercial banks. the rate at which the RBI takes the money is called the reverse repo. you must know hat reo is also called as bank rate. now the question arises is what is BPS? BPS stands for basic point system. it is used for denoting changes in interest rates etc.

what is the value of 1 bps?

1 bps is equal to 1/100 of 1%

i.e. 100bps is equal to 1%change.

so when we say that repo rate has been increased by 25bps, it means 0.25%. similrly the reverse repo has gone up by 50 bps or 0.50%.

now that you understand the meaning of repo and reverse repo, you should also know what it it used for and why is it so important that it shows up in the news headlines. bank rate (or repo) is an important tool for credit control. credit control means the amount of money supply in the economy. in other words it is the amount of money with the people in the economy. whenever the money in hands of the people has to be checked or lowered, the repo is increased and vice versa.

how does repo control money supply?

the mechanism of repo is easy to understand. when the central bank increases the repo, the commercial banks would have to pay more interest for the borrowed money. thus to make up with the increased interest burden, they would charge their customers with a higher amount of interest on loans issued to them. it means the banks would grant loans at a higher rate of interest to avoid losses. consequently the customers would borrow less amount of money. thus the amount of money flowing in the economy would decrease.

on the other hand, if repo is reduced then the loans would become cheaper for the people. they would be ale to afford more borrowings due to the reduced interest rates. thus the money supply in the economy will increase.

why is credit control important?

well to understand this first you need to know about inflation and its threats to our economy social welfare. gradual rise in the prices of goods and services over a period of time is called inflation. there are various debates related to inflation. some economist say that inflation to some extent is essential to the economic growth of a country. i wont be discussing the details of inflation. what we need to know that excess inflation is bad for the economy. when the prises of goods (specially the essential commodities) rise a lot over a period of time the people face various problems. there is shortage of goods in the market and symbolizes low supply in the economy. in short high inflation rate is not the characteristic of a healthy economy.

inflation occurs when there is a lot of demand in the market and not enough supply to cope with it. when people have a lot of money with them, the spend more th usual. thus the demand in the market rises. the supply however takes time to increase and might not respond well to the sudden change in demand. as a result a shortage or gap is created in the market. and due to this shortge the prices of goods go up. this goes on over a period of time causing inflation.

so when the RBI (which is responsible fro checking inflation) in the economy reduces the money supply in the economy, people demand less. the overall demand comes down to meet the supply in the market. thus a balance strikes between the demand and supply. this causes the prises to come down and stabilize. thus inflation is checked.

what does RBI’s recent decision imply?

the hike in repo and reverse repo rate implies that from now onwards loans will be more expensive. there will be reuction in consumption by the people. this is expexted to control inflation to some extent as it remains the major cause for such a decision.

i hope that now you have a better understanding of repo and its impact on our economy….

be the creator not seeker

Posted: September 19, 2010 in social

are you one of those people who are looking for a job.. practicing in front of the mirror for the interview.. waiting for your chance to join the earning population. and do you expect to earn a million just through your salary or are satisfied with earning enough to survive??? well all the best to you people… but i feel that there is a better way of  making a fortune..

the very first step is to believe in yourself.. don’t think that its very difficult and next to impossible coz its not. no idea is bad, its just the way you execute the idea is what determines its success possibility. if we look into the past, we will find that history is filled with people took control of their lives and have been really successful in whatever they did (well not everything). we call them entrepreneurs. they have a vision, a dream and most important of all, they have a positive attitude.

guys feel free to think about yourself. what you want, how you want, what you think you ca do and up to what extent can you go to take it. if you feel that you can build a spaceship that will land on mars then go for it. if you believe you can do it then you can. the world is full of ideas, you just need to find them. now how to find these ideas is the big question…

well the answer to this is very simple.. the ideas are hidden in your house, in your car, in your favorite restaurant and in your favorite game… yes friends they are everywhere you go and inside everything you do. it means that you can generate income from almost anything you can think of… you only need to identify the idea.. like if you like to play online games then you can start your own team and participate in events worldwide as the gaming industry is huge and growing day by day.. if u r a foodie then u can start a new resto-bar of your own..

the whole idea is that you should do what you want and not just what others want you to do.. i have met many people want to start a business of their own.. but they lack the confidence to initiate something new. i don’t say that you would rule the industry overnight, but if you are dedicated enough then in the long run you will achieve what you always wanted.. people don’t be afraid of bad days and all the ‘how’ and ‘what’ that others are gonna ask..

however i don’t want any of you to get carried away by emotions.. take one step at a time. ask for all the help you want.. meet others who think like you and learn from them.. form partnerships so that you can jointly handle the situations. always remember that you are just a beginner and not the best at what you are up to. so move on with confidence but not over confidence..

friends i want you to come up with your ideas in this blog and share it with me and other readers. i want people with innovative ideas to come together on this page share their great thoughts with us……

i will try to make these dreams come into reality and help create a platform for the young minds of the world…


Posted: September 18, 2010 in social

a new beginning

hello people…. this is my very first blog… i m a 20 yr guy with high ambitions, lots of dreams and just like any other guy of my age – extremely limited resources. well i am a student of b.com hons.(bachelor of commerce)  in university of Delhi. you got that correct dude- i study about business. every morning i wake up with lots of hope and plans for the day. thinking that something new will happen that will change my life forever (and for good) only to realize that miracles don’t happen in the real world. life is no fairy tale but a competition and that too with expert participants.

i am not trying to scare you guys…. relax…. what i am trying to say is that we all have our own hopes and dreams. our dream job or a hobby which is more important to us than getting an m.b.a degree.. it all seems so impractical an way out of our league. but believe me people it is all very much possible.. you just need to figure out the right track.. through this blog i wanna help you people realize your dreams.. i am sure there are millions of people who are not happy with what they are doing and wanna change things.. well god helps only those who help themselves. so stay tuned to this site and plz leave comments to improve this site….