Saturday, May 24, 2008

Inflation in India - Analyzing Its Causes

Inflation is all over the news, touching 8.1%, highest in 45 months. Let me analyze the reasons as if I were Sherlock Holmes! In layman’s terms I would say that inflation is high because the demand is exceeding the supply. Either the demand is more than the supply or supply is less than the demand.

First let’s think about the demand side. To reason the causes first let us see what happened in the last one year. 2007-08 the GDP growth rate was at 9%, which is revised from provisional number of 8.7%. Not going into details we may conclude that we as a country prospered quite well. If I say we as a country prospered, I would say people had more money to spend.

Various central government plans like the national minimum wages guarantee program and other constructive work in the rural India has also meant money in the hands of the poor. I am not saying it is bad or they should not have done that but, yes it causes inflation.

Now let us remember what happened in the Budget 2008. Our Finance Minister did a poll gimmick and waived loans up to Rs. 60K crore. To think of the after effects, the farmers who would have saved money to pay back the loans are free to use the money as they wish. Where would that money go oh! Finance Minister? It is used up to buy things. Demand increases.

To look at the supply side, we sure did not have very good monsoons in last few years. Further more and more farmers are cultivating cash crops to make money (and if that goes naught they kill themselves). This means we have less food to eat isn’t it?

Crude is on a mountain climbing expedition and petroleum products prices are at all time highs all most every day. Though the government is cushioning the domestic prices the world market prices are not controlled. This results in higher transportation cost at the least and the imports become expensive.

On the topic of petroleum prices, we all know that government is giving huge subsidies on the petroleum products. How does that help any one? At the end of the day some one has to pay for the subsidy; and to think of it who else but the “Aam Admi”. Government will some way or other will have to raise the money and probably will impose new taxes direct and indirect. So the discount I now get on the petrol and cooking gas, I will pay back as taxes. What actually causes discomfort is the fact that later when they will impose taxes, it affects the poor by increasing the prices of the manufactured goods.

I would have rather like to see the money given as subsidies on petroleum products invested in infrastructure and making the public transport more useable by public. Further the subsidies are working towards subsidizing pollution.

Congress Government came to power by singing the “Aam Admi” slogan. It has been doing vote bank politics all the time, rather than steering the nation on a constructive path. If there are things which are not in ones control one should let it happen rather than causing more problems trying to control them.


Disclaimer: I am not Sherlock Holmes and I did not do well in Economics in my graduation ;).

Tuesday, May 13, 2008

Sony DAV-DZ777 My New Home Theater



Long time no see, yes its literally after the first post i guess. Basically, I'm not into blogging (but you will find that I'm not into anything else too...). Any ways let me come to the point, On the last Saturday i.e. 3rd May, 2008 i got myself an Sony DAV-DZ777 home theater system and that costed me a bomb, I would say almost a months salary. But the beauty of it was I got it since i didnt like the sound output from the LG tv that i was watching. My favourite past time is wathcing movies, download them from net and write into a DVD and watch it on the 29'' TV. But I feel that the LG TV has got a very good picture quality but not the audio. Owing to the poor audio quality I had to download subtitiles for the movies and then watch them on TV. It was like looking at the news for "hearing-impaired". So me and my Bro (Gomzy) decided to buy a home theater (I know that was a bad idea but you know what, an idle brain is a devil's workshop and the gadget devil never sleeps) so we went to the near by Sony showroom.


There are always two sides of a coin, in the same way i would say there are always two sides of buying "before buying" and "after buying" and this goes like this: you always make up your mind to buy something and also the budget is made up to buy this thing happens before you got to any shop and then after going there you end up buying something which is very much different than the one which is thought and many a time much more expensive thing (this is common in case of gadgets) so our "before buying product was something not as expensive as the one that i got but it had no "towers" then we saw another one that had only two back towers but no front towers and finally i said lets buy something with towers and we ended up buying this DAV-DZ777.


Let me tell you one thing guys Sony might be expensive but I would say it is every paisa worth buying. The sound is awesome (comparing to the peer products of this range) and i would say who ever listens will fall in love with this thing like me.

Sunday, May 04, 2008

At the Restaurant - Hampi

To begin with with Hampi is a place in South Indian state of Karnataka, from where the great King of Krishna Devaraya of Vizayanagar had ruled the entire South India. During his days South India was united and prospered both in trade and literature. Krishna Devaraya himself was a great poet and his dynasty was considered as the golden period of Telugu and other South Indian literature.



I went to this place to celebrate promotion of a very good friend of mine, and it was a pleasantly surprised at the entrance itself. I never saw anything like this in Hyderabad before.



The restaurant is full of exotic wood work and a delight for the eyes. It virtually takes you to a house of a South Indian royalty of the past.



This place is just off the main road hidden in the by lanes near TRS office in Jubilee Hills.



This place serves South Indian food both veg and non-veg, and had many of the typical Andhra cuisines on its menu. I was a bit crazy that day to try Plain Rice and a Andhra chicken curry. But on the second thoughts it was wondered, why would one has to come to a restaurant to eat just plain. I was even crazier to order Butter Milk, Fresh Lime Soda and Jaljeera at the same time, and having all at together. I exactly did not like what I ordered, but others did enjoy what they ordered - bit sensibly.



I will recommend all to visit this place to enjoy the ambiance at least.

Saturday, May 03, 2008

We will miss Chotu

Our beloved Chotu is no more. He breath his last on 2nd May 2008 in my dad's hands, hardly 4 years old, too young to miss among us.

He was the funny guy, always upto something and if something goes wrong hiding behind mom.

Following Moni in her rat hunts and sometimes daring to go alone. Loved her, followed her everywhere.

The angry young man of our home, almost bitten everyone who bugged him, except the alfa male of our family... dad. He was undoubtedly dad's favorite amongst us.

We shall cherish his memories always. May his soul rest in peace.