World Of Finance

        World of Finance by M.Vijaya Sai The process of reforms as part of liberalization has resulted in greater investment in Indian economy. Government policies have become investment friendly and paper work reduced. The capital markets have also been able to receive huge inflow of funds. The Indian economy today is ready to face the competition from overseas market and International investors see India has a potential market for excellent return on investment. Policy Changes Industrial Policy The Indian government has ushered in a policy of reforms to bring about accelerated economic growth. The government has removed the requisition of industrial license except for certain sectors, simplified the procedure for investment and opened the market for foreign technology. Industrial Licensing The following industries require Industrial license. Public Sector enterprises. Industries retained under compulsory licensing...

        World of Finance by M.Vijaya Sai Round one in the unseemly quarrel between two financial regulators — the Securities and Exchange Board of India, or Sebi, and the Insurance Regulatory and Development Authority of India, or IRDA — on who should supervise ULIPs (unit-linked insurance plans), has gone to IRDA. The government has brokered a temporary truce, leaving the matter to be settled in court. But, for IRDA, it may turn out to be a case of winning a battle but losing the war. The debate is whether ULIPs, which are nothing but mutual fund schemes with the added protection of an insurance cover, should be regulated by Sebi or by IRDA. Sebi, the capital markets regulator, has pointed out that the attributes of ULIPs are very different from traditional insurance products, which is correct. But barring 14 insurance companies from selling ULIPs, was — to say the least — a hasty and thoughtless move on Sebi’s par...

        World of Finance by M.Vijaya Sai What's the problem in Greece? Years of unrestrained spending, cheap lending and failure to implement financial reforms left Greece badly exposed when the global economic downturn struck. This whisked away a curtain of partly fiddled statistics to reveal debt levels and deficits that exceeded limits set by the eurozone. How big are these debts? National debt, put at €300 billion ($413.6 billion), is bigger than the country's economy, with some estimates predicting it will reach 120 percent of gross domestic product in 2010. The country's deficit -- how much more it spends than it takes in -- is 12.7 percent. So what happens now? Greece's credit rating -- the assessment of its ability to repay its debts -- has been downgraded to the lowest in the eurozone, meaning it will likely be viewed as a financial black hole by foreign investors. This leaves the country struggling to pay its bills as...

          World Of Finance by Vijaya Sai.M   Finance minister Pranab Mukherjee began presenting the Union budget for 2010-11 in the Lok Sabha today after the Cabinet approved the document. Here are some of the highlights of his budget speech. The Indian economy was facing grave uncertainty. Growth had started decelerating when the interim and full budget for 2009-10 were presented. At home there was added uncertainty because of subnormal southwest monsoon.Yet, the economy now in a far better position than it was eight years ago. India weathered the economic crisis well and emerged from the global slowdown faster than any other country. First challenge before the government is to quickly revert to high GDP growth path of 9%.Expects 10% economic growth in the near future. Second challenge is to harness economic growth to make it more inclusive and consolidate gains. Third challenge is to overcome weakness in government's public delive...

          World Of Finance by Vijaya Sai.M Railway Minister Mamata Banerjee appeals to business houses to join hands for building partnership with Railways. Presenting Railway Budget for 2010-11, Banerjee says a special task force will be set up for early clearance of projects. No fare hike for passengers. Railways not to be privatised; It will remain with the government, says Banerjee. While not privatising, Railways have to develop business models for improving earnings, says Banerjee. Railways 2020 vision document will contain short, medium and long-term goals. Commitments fulfilled to the maximum. Out of 120 trains announced in last budget, only three remain to be flagged off because of lack of broad-gauge lines, says Banerjee. Plans to launch a pilot project for fire detection.The government also plans to construct more underpasses for safety, the minister said while presenting the Railway Budget. Railways to start six water bottl...

          World Of Finance by Vijaya Sai.M As we step into a new decade, the growth drivers for the economy are diverse and robust, but so are the challenges ahead. India is today poised to enter a phase of exponential growth and development. From an unlikely global player stagnating at a low rate of growth in the 1980s, to a nation of great potential, India’s economic transformation has been remarkable. Given this transformation, and the strength of the fundamentals supporting it, the next decade promises to be exciting for the Indian economy. To understand what is possible, I always look at proxies from the world around us.  The best and most recent example is that of China. China grew at a CAGR (compounded annual growth rate) of 9.5% for over 25 years since it began its economic reform process in 1979. The impact of such high growth was phenomenal. China’s GDP grew tenfold over this period. According to China’s official statistics,...

          World Of Finance by Vijaya Sai.M Hi Friends this is a must  watch clip if you would like to know about Sub prime crisis which shook world economy.

          World Of Finance by Vijaya Sai.M It seems that nothing can stop the relentless rise of China's export machine. Whether that counts as good news depends on where you live and what you're invested in.Commodity investors were among those cheering yesterday as Beijing surprised world markets with the news that its exports had jumped nearly 18% in December from a year earlier.The reason for the cheering was that Chinese imports jumped even more than exports. They were up nearly 56% as the Asian nation imported record or near-record amounts of iron ore and crude oil. China's growing appetite for commodities is bullish for companies that produce raw materials ranging from soybeans to copper. It's also likely to provide a boost to currencies such as the loonie and the Australian dollar that represent commodity-producing economies. But China's swelling exports are distorting world trade in ways that could have nasty consequences, includin...