Monday, 21 November 2016

Real reason behind crying of Mamta Didi and Arvind Kejriwal

We can see that almost every party is opposing demonetization but resistance from AAP and TMC is beyond the normal level. They are trying everything to oppose Narendra Modi. Even didi is ready to collaborate with her arch rival Sitaram Yachuri.
After seeing all this drama, I am sure that they are opposing not because they are in opposition but there is more to it than meets the eye.
For knowing the exact reason behind this, we should dig a little bit more.

TMC

Right now, West Bengal is one of the least developed states and the current ruling government is not doing anything to straighten its economic and social status. Most of the party members of TMC are corrupt and use unfair means to win elections. Sarda Chit Fund Scam and Narda Sting Operation are the best examples to prove my comment on TMC. Mamta claimed that her paintings get sold at more than 2 crore rupees. It means her paintings fetch more money than many other famous painters of our country. I don't think Mamta is as good in paintings as she claims. For me, it is a method of converting black into white. Most of the news reports claim that TMC party leaders are behind Sharda chit fund scam and it is a well-proven fact.
There are some reports that give the shreds of evidence of Syndicate Raj in West Bengal. Syndicate is a racket that runs in prominent cities of West Bengal in which goons work for ruling party and use violence to force contractors and other local businessmen to give them ransom. All money coming from all these sources are in currency form hence they are in real trouble as after this move, all their money will turn into useless papers. Further, we should not forget that MALDA is the capital of fake currency note and all money printed here are used in cross-border terrorism, hawala etc. But Mamta didi has not taken any action against this because a major portion of this money directly goes into her party fund and Bangladeshi immigrants living in this region are loyal voters of TMC.
After analyzing all these facts I can say that Mamta has no choice other than to oppose this demonetization as this is direct attack on her vault.

AAP

Yugpurush Arvind Kejriwal knew only hate politics. He always put all his efforts to defame every move taken by central government. Before 2014 election, he usually opposes Congress and now he is opposing BJP. He is still living in his false castle that by doing this he can defame Modi's clean stature and will be able to become Prime Minister of India after 2019 election. Some reports claim that his party earned a lot of money from Anti-Modi community of our country and a large portion of this money is in form of currency notes and it is going to be useless paper after this move. His party earned more than 3000 crore rupees from the allocation of seats for upcoming Punjab Assembly Election. So we can imagine the reason behind his pain. 
Further, he knows that by supporting Modi he is not going to earn any new votes so he is trying to earn every Anti-Modi vote. Recently, AAP confirmed that they are not going to contest upcoming municipal elections in Gujrat and Goa. Maybe shortage of fund is the reason behind this.
By analyzing these facts, I can summarize aggression of Mamta Didi and Arvind Kejriwal against Modi as-
Drd aisi jgh mila h ki na dikha skte hain na shla skte hain bs chilla skte hain...

Sunday, 20 November 2016

CPEC

            China-Pakistan Economic Corridor (CPEC) is one of the hottest topics in southeast Asia region since 4-5 many years. It is the most ambitious project of Pakistan and China. It is part of Chinese ONE-BELT-ONE-ROAD initiative. We can understand the importance of this project by knowing the fact that China has included it in its 13th Five Year Plan. In this project, China has the plan to invest 46 billion dollars and out of which 11 billion dollars will be directly invested on the rail link between Xinjiang city Kashgar to port city Gwadar.

Gwadar Port & Gwadar City               

             It was 2002 when first-time china started to plan construction of a deep sea port in Gwadar region of Balochistan and its initial infrastructure have been already finished by 2006. Now its up-gradation is going on. China has also granted 230 billion dollars for Gwadar International Airport along with 4.5 billion dollars for roads, power, hotels and other infrastructure. 

             This project is a game changer for Pakistan's sacking economy and China is trying everything to make Gwadar as a connecting link in its Maritime Silk Route Project. Pakistan thinks that this project will generate  a huge sum of money for both Government and Private Sector. Under this project, China will also construct a power station that will generate 10400 MW energy by the year 2020 which will be helpful for Pakistan to solve its current energy crisis as most of its prominent cities are suffering from long power cuts. CPEC is like a golden spoon for Pakistan which he can not afford to loose in any case. Since this project is going on in Balochistan region so continuous oppose of Baloch people is a major hurdle for this project and Pakistan is trying everything to suppress these people. Balochistan region is full of resources and Pakistan as well China both want to utilize it for satisfying their economic needs.

             It is also estimated that CPEC will generate 700000 new jobs in Pakistan which is essential for Pakistan in order to bring their young generation in the mainstream. So common people accept Baloch are also in support of this. Right now, Balochistan is the least developed state of Pakistan due to the constant power struggle between Baloch people and Pakistani Army. So for the betterment of this project, Pakistan need to address this issue with more confidence and responsibility. 


String of Pearls Policy of China

China always wanted to rule in Indian ocean as it provides world's one of the busiest trade route. Due to its geographic location, China can not directly influence this region so China planned a strategic policy which is known as String of Pearls Policy. This geopolitical theory was first mentioned by U.S. consulting firm Booz Allen Hamilton. Under this policy, China is building many naval bases in form of ports at various location in the Indian ocean. By joining these ports in the map, we can easily guess the ambitious project of China in which China wants to interlock India but China always denies this fact.      As per this policy, China is working on constructing 15 ports ranging from Hong Kong to Sudan. It includes Gwadar port in Pakistan, Sittwe port in Myanmar and Hambantota port in Sri Lanka.

            India never opposes this Chinese ambition until their ships came to Sri Lankan port. Only Bangladesh has remained among all neighboring countries of India where China has not build any port till today. Recently, China has started its infrastructure projects in Gilgit- Baltistan region of Pakistan-occupied Kashmir and it is a disputed area between India and Pakistan. Hence, India needs to register its oppose to Chinese counterpart and India did.      In Indian point of view, this ambitious project will bring stability in Pakistan region which will be useful for India to maintain peace in Kashmir hence India never oppose it. 

 Conclusion 

            India has never opposed this project even if it passes through POK but to tackle its effect and Chinese ambition in middle east Asia, India tries to build a prosperous bilateral relation with Afghanistan and Iran. Construction Chabahar port in Iran is an example of Indian diplomacy.

Saturday, 12 November 2016

New Currency, New India

4 days ago, the government has launched new currency and abolished the previous one for attacking unaccounted money. Most of the people of our country are appreciating this bold decision but opposition parties are criticizing it by every possible means. So many columnists, economist, and scholars are trying every bit of their knowledge to prove that this is not going to tackle black money and it is just creating a chaos among people. Yes, I agree that this is not going to reduce corruption in near future or completely wash out black money from our economy but definitely, it will curb out a large amount of unaccounted money in form of cash.According to some reports, approx 25% of India's wealth is in form of black and out of which a larger share is in form of Estate, Gold and Foreign Currency. But still, some part of this is in form of cash which is going to be washed out by this move.
This step is taken only for eliminating current stock of black money not for all modes of black money. The government should take other measures too and they have already taken some steps like GST, JanDhan Yojna, Gold Monetisation Scheme, Benami Property Act, Aadhar Card, Direct Benefit Transfer etc. The Government has taken all these measures in last 3-4 years step by step and it will definitely show positive results in near future.
Now coming to current state of economy, most of the people is saying that a large amount of black money can be easily converted into white money because limit of deposit by one person is 2.5 lakh so if a person who has a large stack of unaccounted money, will ask his friends to deposit small packets of money in his account. Yes, it is possible and acceptable but by this, a large amount of money will come into circulation and will be available for investment by industries in near future which is good for a healthy economy. Again this method of depositing money will be helpful only for small players not for big buffaloes.
So finally I can say that this demonetization scheme is going to help our economy as it is going to increase the money supply in the economy. It means more money will be available to people.
Further, some people are criticizing the decision of introduction of higher denomination note by quoting foreign countries and their policies. So for them, I can say only that our economy is so large that at the current state, a lower denomination currency can not hold day to day transaction. Right now. more than 40% people of our country have no bank account and among those who have bank accounts, a large number of people are not using credit/debit card for payments. According to RBI data, cash still accounts for 90 per cent of all monetary transactions in India. So we need higher denomination currency. 1000 rupees note is not enough to handle the economy in next 4 to 5 year so the government has to launch a higher denomination note for proper handling of cash transactions. Further, there is heavy transaction costs involved for banks with lower denomination notes than higher denomination note. I agree that there is a risk of black money generation with higher denomination notes but we are not in a position to eliminate them completely. 
The government should put all efforts to promote use of credit/debit cards, e- wallet, Net Banking and mobile money among middle class. It will help our economy in becoming the world's largest cashless economy in near future.

Friday, 11 November 2016

Reliance Jeo

Approx 100 crore people are connected through mobile phones in India direct or indirect way. Means 80% of total population is well connected through Voice Calling. Out of these, 34% population is using the Internet and only 10% users are using 3G and above it. These data is proving only one point that for any telecom, there is a lot of scope in Internet service than Voice service. Reliance Jio is the outcome of this. They want to put focus only on this Internet base.
Now the question arises that why telecom should not put the focus on Voice and the answer is if you have a good Internet, you will never think about voice call and other messaging services. Because the Internet is capable as an alternative for all of these services.
Further, Reliance Jio has invested so much in its Infrastructure in previous 3-4 years. Now, they have largest fiber optical cable network ( Approx 2.5 lakh kilometer). So they are capable of transferring a large amount of data at very high speed.
For this project, Reliance group has invested approx $22 bn (150000 crore rupees) which is more than combined investment of Airtel, Idea and Vodafone in India for the 3G/4G segment.
Now coming to the main point, how Jio is making the profit ? For this, I want to say that once you have already laid down the fiber optic network, the cost of operating it is not very huge.Again, Jio has an all-IP network, so all voice calls will go through the internet just like skype. So,there is not really any point in charging for voice anymore.Further, the only costs Jio incurs on voice is some 14 paise which they have to pay as interconnect fee to the operator’s network you called. This should be considered a temporary operational cos because TRAI is likely to either further reduce this interconnect fee or make it free in the near future.
Currently, In India, the monthly average revenue per user (ARPU) the current network providers get is around Rs 150 per month. That is the money they get on average from each user. If you spend over Rs250 per month, you are considered a high-value customer. And Jio tariff starts from 149 and end at approx 4999 rupees. So, even if someone chooses the cheapest plan, he will pay little more to Jio network than the current average. Also,they do have some smaller plans at Rs 19, 199 and 299, but these plans do not really offer any more value than their main plans as they have even less validity. Also, it offers less data per rupee. For example, the 299 plan only offers 21-day validity and 2GB data. This may be adequate for many people, but if you ever exceed the 2GB limit, then you will have to purchase ‘addon packs’ and these addon pack will have the validity of the main pack. So, if you recharge on day 20 of this plan, then you will get only one-day validity for the addon. For practical purposes, you will be spending more for lesser value through these packs. The Rs19 pack maybe useful for those who want to use some internet & voice calling once in a while.
Current Profit Making:-
1- Lyf phones- Reliance is earning through these outdated Chinese phones by packaging it in new labels.
2- Jeo Apps like- Jeo Play, Jeo OnDemand, JeoBeats, JeoMags, JeoNews, Jeo XpressNews, JeoDrive, Jeo Security etc.
3- Jeo also has the plan to launch something like google Chromecast by which we can directly connect our phone to TV.
4- Jeo Money- Payments industry is huge, in India and across the world. It is growing really fast that it is set to touch $500 billion in the year 2020. So this is also a high profit making app like Freecharge, Paytm etc.
5- JioFi- it is not free.
This is a win-win situation for both Reliance group and customers. But it will create a monopoly in the market if other companies like Vodafone, Airtel etc would not be able to compete with them in near future. And monopoly is not good for any economy. I hope other rivals will come with different models which will make telecom sector more customer friendly in near future.
In concluding line I want to say that by just making their tariff plan in such a way that the most people interested in 4G have to pay over Rs 500 per month, Jio is making way more money than the current players. Most of the high-value customers of other players will instantly port to Jio, and they may be able to achieve a huge market share in next couple of years.