Indian Rupee Where Does It Go From Here?
In budget 2010-11 India’s Finance Minister Pranab Mukherjee wanted to formalize a symbol for the Indian Rupee (INR) to reflect and capture the Indian ethos and culture. With new symbol approved by the Indian government on July 15, the country has gone gaga over the selection of the symbol which is a fusion of Roman and Indian Devnagari script. However, the million dollar (rupee) question is will the Indian Rupee have pride of place along side the select club of currencies such as the US Dollar, British Pound Sterling, Euro and Japanese Yen that have a clear distinguishing identity and global presence? It does not seem so for a foreseeable future.
Some call it as a sign of India’s growing aspiration while critics say it is needless exuberance given the economic challenges the rising India faces. Several G 20 nations including all powerful China have not gone for the unique symbol since they want their currency to be globally relevant before taking such a step. India will not gain anything by internationalizing its currency symbol since there are virtually no takers for the Indian currency in the global market or even accept it as reserve currency. Moreover, unlike the US Dollar or Euro, Indian currency is not freely convertible. In fact, India itself does its trade and business mostly in US Dollars.
It is true that India’s near 9% growth rate makes it a nation to watch with admiration. However, given its rich and poor divide, high unemployment, huge budget deficit and high inflation, the country has long way to go. In fact, the UNDP study, ironically revealed two days ago before the Indian government approved the rupee symbol, pointed out that acute poverty prevails in eight Indian states, including Bihar, Uttar Pradesh and West Bengal (the most populated states) together accounting for more poor people than in the 26 poorest African nations combined. Given these bitter aspects, there is no use in having the new rupee symbol on computer key boards alone – this can be incorporated within no time - simply because India happens to be world’s software hub.
Gopal Sutar
Sunday, July 18, 2010
Wednesday, July 7, 2010
BP or no BP, oil industry will fight back
BP or no BP, oil industry will fight back
By GOPAL SUTAR | ARAB NEWS
Published: Jul 6, 2010 23:34 Updated: Jul 6, 2010 23:34
BANGALORE: One of the dire consequences of the Gulf oil spill is that the reputation of the entire oil industry, and not just that of BP, seems to be in tatters.
The image of the industry in terms of its contribution to the world economy and the environment has taken a severe beating despite the fact that BP alone is responsible for the current disaster. Even after weeks, the giant oil company continues to struggle to cap and clean the Gulf of Mexico spill. Against such catastrophic failure, there are serious concerns raised over the safety measures employed by other companies involved in deep-water drilling activities. All these companies are under public scrutiny as they too are prone to accidents of a magnitude one cannot even imagine.
Take the case of BP. In a filing on July 5 to US securities regulators, the company has put the cost of its response to the Gulf of Mexico oil spill at about $2.65 billion, up from $2.35 billion as on July 2. The costs include spill response, containment, relief well drilling, grants to Gulf states, claims paid, and federal costs, but not a $20 billion fund for Gulf damages the company created this month. BP has said that it has received more than 80,000 claims and made almost 41,000 payments, totaling more than $128 million. More claims are certain to follow in the coming days and weeks.
Against this background, the need to explore alternatives for clean energy options, including nuclear and clean coal, is felt more acutely as never before. Does this mean we all should give up on fossil fuels? Is it possible to survive without oil and only on nuclear and other forms of energies such as wind and solar? With no solution on the horizon the answer is obvious no.
However, it is true that much of the goodwill generated by the oil industry whether it is Shell, BP, Exxon Mobil, Chevron or Saudi Aramco — has been wiped out by the Gulf oil spill. But the situation is unlikely to unnerve them.
Whether one likes it or not the demand for over all oil production is expected to remain steady and go up in the near future notwithstanding the fall in oil prices by more than 3 percent on July 6 as fiscal problems in the euro zone and downbeat data from China and the United States compounded the problem. But the powerful oil industries will fight back knowing that these are all short-term setbacks, including the White House ire rover the Louisiana rig spill, resulting in the ban over deepwater drilling. The oil companies are aware that in the absence of credible alternative, depleting oil reserves on land and in shallow waters, the world has no choice but to look at deepwater oil reserves, perhaps with improved technology, new attitude toward environment and stricter regulations.
The world needs energy and till some other alternative is found, the oil alone stands for world energy security. Other than Gulf of Mexico-like accidents, the industry needs to be more careful about public relations fiascos like the one committed by Tony Hayward, the BP chief executive who went to the Isle of Wight for a yacht race one week after his company’s deep-water drilling platform had blown up in the Gulf of Mexico on April 20, killing 11 workers resulting in the massive leak that has caused unprecedented damage to the coastline in four US states.
The accident of this nature might be one in a million kinds like in nuclear power case studies. However, what is important is industry leaders showing concern and regret for what’s gone wrong. They simply can’t afford to project themselves as easy-going corporate czars.
http://arabnews.com/economy/article80332.ece
By GOPAL SUTAR | ARAB NEWS
Published: Jul 6, 2010 23:34 Updated: Jul 6, 2010 23:34
BANGALORE: One of the dire consequences of the Gulf oil spill is that the reputation of the entire oil industry, and not just that of BP, seems to be in tatters.
The image of the industry in terms of its contribution to the world economy and the environment has taken a severe beating despite the fact that BP alone is responsible for the current disaster. Even after weeks, the giant oil company continues to struggle to cap and clean the Gulf of Mexico spill. Against such catastrophic failure, there are serious concerns raised over the safety measures employed by other companies involved in deep-water drilling activities. All these companies are under public scrutiny as they too are prone to accidents of a magnitude one cannot even imagine.
Take the case of BP. In a filing on July 5 to US securities regulators, the company has put the cost of its response to the Gulf of Mexico oil spill at about $2.65 billion, up from $2.35 billion as on July 2. The costs include spill response, containment, relief well drilling, grants to Gulf states, claims paid, and federal costs, but not a $20 billion fund for Gulf damages the company created this month. BP has said that it has received more than 80,000 claims and made almost 41,000 payments, totaling more than $128 million. More claims are certain to follow in the coming days and weeks.
Against this background, the need to explore alternatives for clean energy options, including nuclear and clean coal, is felt more acutely as never before. Does this mean we all should give up on fossil fuels? Is it possible to survive without oil and only on nuclear and other forms of energies such as wind and solar? With no solution on the horizon the answer is obvious no.
However, it is true that much of the goodwill generated by the oil industry whether it is Shell, BP, Exxon Mobil, Chevron or Saudi Aramco — has been wiped out by the Gulf oil spill. But the situation is unlikely to unnerve them.
Whether one likes it or not the demand for over all oil production is expected to remain steady and go up in the near future notwithstanding the fall in oil prices by more than 3 percent on July 6 as fiscal problems in the euro zone and downbeat data from China and the United States compounded the problem. But the powerful oil industries will fight back knowing that these are all short-term setbacks, including the White House ire rover the Louisiana rig spill, resulting in the ban over deepwater drilling. The oil companies are aware that in the absence of credible alternative, depleting oil reserves on land and in shallow waters, the world has no choice but to look at deepwater oil reserves, perhaps with improved technology, new attitude toward environment and stricter regulations.
The world needs energy and till some other alternative is found, the oil alone stands for world energy security. Other than Gulf of Mexico-like accidents, the industry needs to be more careful about public relations fiascos like the one committed by Tony Hayward, the BP chief executive who went to the Isle of Wight for a yacht race one week after his company’s deep-water drilling platform had blown up in the Gulf of Mexico on April 20, killing 11 workers resulting in the massive leak that has caused unprecedented damage to the coastline in four US states.
The accident of this nature might be one in a million kinds like in nuclear power case studies. However, what is important is industry leaders showing concern and regret for what’s gone wrong. They simply can’t afford to project themselves as easy-going corporate czars.
http://arabnews.com/economy/article80332.ece
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