March 2014

Mohammad Anas Wahaj | 27 mar 2014

The recent study conducted by SAP and Oxford Economics, "SMEs:Equipped to Compete", based on the survey of 2100 executives across 21 countries (100 per country) and five industries, aims to understand how SMEs are leveraging technology to boost innovation, strengthen customer relationships, improve agility and expand their business. According to the study, 43% consider increasing global competition as the critical issue affecting Indian SMEs while global average was only 26%. This was followed by economic uncertainty (34%) and shifting customer expectations (29%). Another finding of the study reveals that 57% of Indian firms invest in new technology only when there is a clear return on investment. Priyadarshi Mohapatra of SAP mentions that Indian SMEs are now doing business across the world, including Europe and the US and are even considering emerging markets. Some of the areas of business include cycle parts, paints & pigments, and packaged foods. Read on...

Business Standard: Global competition key issue for Indian SMEs, says study
Author: NA

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Mohammad Anas Wahaj | 02 mar 2014

Developed economies strongly recovered during 2013 and showed continuous improvement in growth rates since 2008 financial crisis. But similar performance is not been observed in case of developing and emerging economies in 2013. This is expected to change in 2014 and according to experts, India's growth rate may reach closer to 6%. Richard Cox points out current account deficit and declining currency value as main problems facing Indian economy. According to him upcoming general elections and expected economc reforms are creating a wave of optimism. Indian rupee will likely see gains. Moreover forex markets in India would be attractive for traders with environment more conducive for taking added risk. Read on...

Epoch Times: Is India's Economy on the Path to Recovery?
Author: Richard Cox

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Mohammad Anas Wahaj | 02 mar 2014

Social sector can be an effective learning environment for students as it prepares them to better understand the social realities and development issues that a developing country like India faces. Moreover it would also provide them opportunity to utilize their skills and contribute to improve the condition of the society that they are part of. In an interview Nachiket Mor provides his views on various aspects of his professional life and his recent transition to work in the social sector. According to him there is not much difference in his approach to contribute in either corporate or in social sector. He says that in a poor country like India any activity which is done with integrity whether in corporate sector or the social sector has the potential for a very large impact and cites an example of the transformative role that the telecommunications sector has played in India. He suggests - business graduates should work few years with social sector start-ups before joining established organizations; talented young people should consider social sector involvement as part of their mainstream career; future Indian CEOs should be more sensitive and well aware like for example Nitin Paranjpe. Read on...

Pagal Guy: A stint in the social sector can produce better CEOs - Nachiket Mor
Author: Sanjit Oberai

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Mohammad Anas Wahaj | 01 mar 2014

'Taylor Rule', developed by Stanford University economist John B. Taylor, is an interest rate feedback rule of how central banks should set short-term interest rates as economic conditions change to meet the goals of economic stability together with desired inflation rate. The rule states that short-term interest rates should be determined by two factors - inflation and output gaps. In the article Professor Tulsi Jayakumar of S.P. Jain Institute of Management and Research, explores the dynamics of India's policy rates, how they relate to global policy trends and their comparison with rates prescribed by the Taylor Rule. He mentions the findings of recent RBI study that was based on the quarterly estimates for the period 2000-01 to 2012-13. According to the study, proxy policy rate (average overnight call money rate) shows greater divergence from standard Taylor Rule interest rate in the post-crisis period (after the third quarter of 2007-08) than the pre-crisis period. For most of the crisis-period the policy rate has been above the Taylor Rule rate. Also the gap has narrowed in 2012-13. Another significant finding is that the higher the deviation of the policy rate from that implied by the standard Taylor Rule (interest rate gap), higher is the deviation of the inflation from its desired level (inflation gap). Read on...

Live Mint: The Taylor Rule and interest rates in India
Author: Tulsi Jayakumar

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