Oil Prices And Inflationary Pressures

Prices of Brent crude oil rose 18% in 2017 to $67.02 per barrel in December, a 30-month high. Higher oil prices are likely to widen the fiscal and current account deficits.

India imports more than 70% of its oil requirement and every $10 per barrel change in oil price adds 0.4% of gross domestic product (GDP) to the current account deficit, according to Nomura. The Economic Survey in January had said rising oil prices were a challenge to India’s growth, projecting the economy to grow in the range of 6.75-7.50% in 2017-18.

Oil prices were at $110 per barrel in 2012. It dropped to $40 in 2016. It is now nudging $60 and many analysts believe that it will keep on this trendline and could be around $80 later this year. It will then create a set of problems for the regime. it will either have to increase domestic retail prices if it wants to keep oil tax revenues at their present level. Otherwise it can absorb the oil price increase but cutting down expenditures and subsidies. Finally it could borrow more from the market and stoke inflation. This is going to be a real bad triple whammy.

We are increasingly becoming dependent on oil tax revenues. in 2013-14, the earnings from indirect taxes on the petroleum products stood at Rs 104,163 crore, which rose to 122,926 in FY15 and went up to Rs 203,825 lakh crore in 2015-16.

In other words, government earnings from petroleum products increased three times over a period of five years, primarily on account of increase in indirect taxes from time to time.

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Prediction For 2018….

you will hear and possibly use the word MONOPSONY

“So, we know what a monopoly is, or at least we think we do. It’s where a company dominates a market so thoroughly that there is one seller of type of goods. But what about a monopsony. That’s where there only one buyer of goods”.

That’s the kind of power exercised by an Amazon or Flipkart or even Walmart, which can tell their suppliers what will be paid, and then by and large they have to deal with it.

Our country mindset and even antitrust framework has focussed on harm to customers, not merely market concentration. If prices are lower for customers, that’s all that matters. The actual structure of the market -_how many buyers and sellers there are – is not the part of antitrust decision making process.

But there is a new paradigm, pushed by the open market Institute, for example, that says harm to customer is not the single way to judge the company’s behavior.

And it may especially matter in labour markets, where having a few dominant companies in an industry makes it harder for workers to get a fair share of money pie. A legal regime that said scale itself as a problem would be very serious strategic problem for the current big tech players.

Race To The Moon

India and China – have set their sights on return to the moon this year.

The Indian space research organization intend to send an uncrewed orbiter, lander and rover to the moon in the first half of 2018. Known as chandrayaan -2, the mission aims to demonstrate that India can land a spacecraft on the moon in one piece and drive a rover there. The orbiter will also beam images of the moon and information about its surface back to earth.

The spacecraft Would be India’s second mission to the moon, after chandrayaan -1, which blasted off in 2008. The country currently has a spacecraft orbiting Mars known as the Mars Orbiter Mission, or MOM.

The Chinese national space administration also plans a return to the moon after successfully landing the change -3 spacecraft and its rover there in 2013. NASA suggests that its change -4 spacecraft could launch in late 2018. It could also include a lander and a rover, and it may study the south pole – Aitken basin region. American scientists had recently proposed that NASA send a lander to this area of the moon, but the proposal did not advance to the final round of agency’s new frontiers competition.

Another Chinese mission to the moon, change -5, was postponed last year, and now it is likely to launch until 2019, according to NASA. It would collect lunar samples and bring them back to earth for the first time since the 1970s.

While state space agencies efforts to study the moon are continuing, a private Lunar space race is also underway, inspired in part by the lunar X prize. Sponsored by Google, the contest will award $20 million to the first private company That lands a spacecraft on the moon with a rover that is able to complete a series of task.

The deadline is march 31. That date has previously been moved to allow the competitors – now down five companies – more time to prepare.

Florida’s moon express is one of the remaining competitors, and it has secured regulatory approval from the united state government to land on the moon. But RocketLab, the company that is to provide its launch vehicle, had to postpone a test of its system over multiple days in December.

India’s Team Indus and Japan’s Hakuto plan to share an Indian rocket to the moon. They will then independently attempt to complete the task required to win the prize.

Padmanabhaswamy Temple – Hidden fact

Padmanabhaswamy temple is located in Thiruvananthaputam, Kerala in India. The temple is built in an intricate fusion of the indigenous Kerala style and Dravidian style ( kovil) of architecture associated with the temple located in the neighbouring state of Tamil Nadu. The principal deity Vishnu is enshrined in the “Anantha Shayanam” posture, The eternal yogic sleep on the serpent adishshan. Only those who profess the Hindu faith are permitted entry to the temple and devotees have to strictly follow the dress code. Whereas, the name of the city of thiruvanathapuram in Malayalam translates to the city of lord anatha, referring to deity of padmanabhaswamy temple. This temple is known for its accreditation. In addition, its structure also played an eminent role in making it famous. Architectural design of this is appreciable but the shocking ping is that one fact of design is hidden. These pictures of the sun at padmanbhaswamy temple, the day when sun passes through the equator. This is all to shine the accuracy of our ancestors.

Harshit Gupta,

The Journey Begins…

Is The Bullet Train The Magic Bullet To Save The Indian Railways?

In December 2015, India agreed to buy the shinkansen high speed bullet train from Japan to link Ahmedabad and Mumbai. The Indian cabinet swiftly cleared the cost of building the 650kms long bullet train system.

Prime Minister Narendra Modi said : “This enterprise will launch a revolution in Indian railways and speed up India journey into the future. It will become an path of economic transformation in India” But will it?

Indian Railway (IR) is the third largest railway network in the world with 7,083 railway stations, 1,31,205 railway bridges, 9000 locomotives, 51,030 passenger coaches, 2,19,931 freight cars and 63,974 route kilometers. Today IR operates 19000 passenger each day, comprising 12,000 passenger trains and 7,000 freight trains. It transports 2.65 million tonnes of freight traffic and 23 million passenger every day and 7.2 billion passengers per year. It currently has 1.36 million employees and an annual revenue of approx 120,000 Crores.

Railway have come a long way since the first passenger train service began on 16th April 1853, when 14 railway carriages carrying about 400 guests left bori bunder (Mumbai) at 3:30 pm with the salute of 21 guns.

Since 2000 there have been 89 major accidents and almost two thirds of them since 2010. It is estimated that almost 15,000 people die on track due to unlawful trespassing on tracks every year.

In 2012 a high level committee recognizing that the condition of the tracks and bridges is a cause of concern as because of weak railway tracks. It gives the IR to:

1. Modernize 19,000 kms of existing tracks comprising nearly 40% of total network and carrying about 80% of the traffic.
2. Provide 100% mechanised track maintenance on the main route to provide superior quality and Provide fencing alongside tracks.

But neither the IR nor the Indian government has so far been able to rustle up even a fraction of the Rs. 800,000 crores.

On the face of it Japanese offer is very attractive. Japan has offered to meet 80% of the Mumbai – Ahemdabad project cost, on condition that India buys 30% of equipment including the coaches and locomotives from Japan firms. They also offered technical support. In addition they also offered funding at 0.1% compared to 0.3% decided by India recently with the tenure of 50 years.

Finally, the big question is whether the same investment on upgrading the entire railway network would be more economically beneficial than a single high cost project?

As India adds million young people to its work for every month that the up gradation of entire network would entail creation of many more new jobs than a single project. How this then tie with Prime Minister Modi’s hope that ” it will become an engine of economic transformation?”

Harshit gupta

The journey begins….

Experience makes the man perfect

As precisely said “practice makes the man perfect “. All people living in world having many experiences whether good or bad its all depend upon the situation. As experience are like a backbone of individual. One can take decision only according to his experience or according to his taste which he got from his past r any situation. Experience are more important in our life as said everything taught us and that teaching give spark to our life.

Study v/s Experience :-

Study like a key to knowledge but with limits. As said by scholar ” study is a key to success ” but not much extend. Study is a book knowledge but experience are practical. Study is that key which fill knowledge in our mind but experience are that which helps to take a decision. Like a well known “Mark Zukerberg ” he is the founder of Facebook. But at that time he is just matrix even after launching Facebook he completed his graduation. This is called the magic of experience.

“Don’t be rigid, make your life full of experiences “

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