New Rupee Symbol and Indian Superstition

Superstition gains currency The recent murder of Indian rationalist Narendra Dabholkar in Pune has led to a massive outpouring of anger, including in debates on TV channels. As a mark of tribute, the Maharashtra government has now pushed an anti-superstition Bill that he had championed for years. But it seems superstition is part and parcel of life, at least in some sections of Indian society. How else can one explain some blaming the new rupee symbol for the rupee’s drastic fall? These people are unwilling to reconcile to the news of rupee touching “historic low” against the major currencies week after week! Sign of growing aspiration In Budget 2010-11, India’s then Finance Minister Pranab Mukherjee wanted to formalise a symbol for the Indian Rupee (INR) to reflect and capture the Indian ethos and culture. Subsequently, the new symbol was approved by the Indian government on July 15, 2010. The country had gone gaga over the selection of the symbol which is a fusion of Roman and Indian Devnagari script. Some called the new symbol a “sign of India’s growing aspiration” while critics dubbed it as needless exuberance, given the economic challenges India had to face. Even now, several G20 nations have not gone for a unique symbol since they want their currency to be globally relevant before taking such a step. Many thought India would not gain anything by internationalising 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 the US Dollars. It is true that India’s near 9 per cent growth was much discussed and praised by economists five years ago. The country had and still has many admirers. However, issues such as rich-poor divide, high unemployment, huge deficit and high inflation were always going to haunt the country at some point. In fact, a UNDP study — two days before the Indian government approved the rupee symbol — pointed out that acute poverty prevailed in eight Indian States, including Bihar, Uttar Pradesh and West Bengal (the most populated States) together accounting for more poor people than in 26 poorest African nations combined. Only emotive value? Does this mean the new rupee symbol has only emotive value? Some still feel that it is a passing phase and India can and will fix its problems by concentrating on curbing its imports. With a slew of other measures, the rupee may strengthen in due course of time. But this may happen only next year after the results of the general elections are out. Till such time it seems superstitions will have a wild run! (The author is chief of media communications at HAL. Views are personal) (This article was published on August 22, 2013)

India’s Indigenous Dhruv Helicopters Save Lives in Uttarakhand Operations

India’s Indigenous Dhruv Helicopters Save Lives in Uttarakhand Operations

India’s indigenous helicopters produced by the defence major Hindustan Aeronautics Limited (HAL) and named as Dhruv, Cheetah and Chetak played a leading role in the biggest ever helicopter based rescue operation of Indian defence forces in flood and rain-hit areas of Uttarakhand recently. These copters deployed over flood and landslide affected areas in Uttarakhand performed effectively in dropping paratroopers, evacuating stranded people and in supply of food and medicines. The helicopters made hundreds of sorties in the high risk zone overcoming strong winds, visibility and with virtually no space for landing on high terrains. HAL teams were positioned at Deharadun and Delhi to ensure logistic support for the rescue operations. One never knows the exact number of people perished. Initially the UN estimated the death toll to be around 10,000 while some local agencies put the figure much lower. Whereabouts of hundreds are still not known. The rain-ravaged Hindu shrine Kedarnath is the main attraction for millions of devotees, especially for thise northern India. Kedarnath and its surrounding areas suffered the worst in the natural disaster which also left a trail of destruction in Uttarakhand, a Himalayan state of India. The state has some of the highest mountain peaks in the world. Dhruv which can carry 16 passengers was the star performer. On many occasions, due to incessant rain IAF pilots could only use Dhruv as it was unsafe for other copters to land. Dhruv helicopters flew for nearly 630 hours during the operation and Cheetah and Chetak flew for 520 hours.

“The indigenized helicopters pressed into service by the Army and the Air Force in flood-hit areas have proved their mettle in carrying out rescue and relief operations in highly inaccessible areas. We are proud of it”, says Dr. R.K. Tyagi, Chairman, HAL. The ace cricket star, Harbhajan Singh too was stranded and was flown in the copter. HAL designed, developed and produced Dhruv helicopters have been delivered to the Indian Army, Air Force, Navy and the Coast Guard. They are also exported. The advanced technology features incorporated in the design of Dhruv include hingeless main rotor and bearingless tail rotor; integrated dynamic system encompassing main gear box and upper controls in a single housing; higher powered Shakti engines; integrated architecture display system (glass cockpit); duplex automatic flight control system; redundancy with twin engine, dual hydraulics and controls; 30 min dry running capability of gear boxes; crashworthy bottom structure, landing gear, crew seat and fuel tanks with self-sealing capability; extensive use of composite material on fuselage and rotor system; integration of role and optional equipments such as rescue hoist, stretchers and cargo-hook. Dhurv also has advanced avionics (communication, navigation & surveillance), electrical mission systems. All this makes Dhruv, a versatile multi-mission, multi-role helicopter capable of operating in all-weather and extreme climate conditions ensuring high degree of reliability and survivability.

Dream Comes True for Two at Paris Air Show

Dream Comes True for Two at Paris Air Show Notwithstanding the summer rains which were quite heavy on the first day itself at the 50th Paris Air Show at Le Bourget exhibition centre from June 17 to 23, Air India and Qatar Airways made impact with the display of new Boeing 787 Dreamliner. The giant birds were nicely parked on a large space at the world's prestigious Air Show. They attracted the attention of large visitors In fact, the Dreamliner display at Paris was first of its kind in any air show and was significant considering that the aircraft was grounded in January by carriers worldwide due to faulty batteries. "These batteries have been replaced with the new ones and necessary certifications have been obtained. Other teething problems too have been resolved", said the company sources at the Paris Air Show. Many carriers around the world including Air India have started re-flying the planes. AI at present has six aircraft and eight more aircraft are expected to be inducted by December this year. The carrier had placed orders for 27 such planes in January 2006. On the other hand QA took delivery of its sixth Dreamliner directly from Seattle to the show venue. The airliner had unveiled its Dreamliner at the world’s largest aviation event, Farnborough Air Show in Hampshire, UK in July 2012. The showcasing of the flying capabilities was the need of the hour not just for Boeing but as well as for airlines involved to clear the doubts over its safe flying. Touted as the next generation flying machine, Boeing 787 Dreamliner is the latest acquisitions for both the airlines and is expected to shore up the fortunes of AI as the aircraft is fuel efficient and is armed with new technology. The QA is equally excited as it is preparing to announce new routes for the summer passengers of the Middle East. The aircraft features luxurious business class suites. "It has been comfortable flying experience" for most of the flying passengers including this writer.

Indian Budget Stresses on Welfare of Women, Muslims; Praises Business Tycoon Azim Premji

Indian Budget Stresses on Welfare of Women, Muslims; Praises Business Tycoon Azim Premji India’s Finance Minister, Mr. P Chidambaram does not want the country to grow at a fast rate leaving behind women, the backward castes and tribes and minorities mainly Muslims. Pointing out that India is still the third fastest growing country in the world, he told the Indian Parliament “Our goal is higher growth leading to inclusive and sustainable development”, while presenting the Union Budget 2013-14 on Thursday. In line with this he has allocated INR 35.11 billion to the Ministry of Minority Affairs. This is an increase of 12 percent over the budget estimate and 60 percent over the revised estimate of 2012-13. When it comes to education of Muslims, the Maulana Azad Education Foundation is the main vehicle to implement educational schemes and channelize funds to non-government organizations. Its corpus today stands at INR 7.5 billion. With the objective of raising it to INR 15.00 billion during the 12th Plan period (2012-17), the FM has proposed to allocate INR 1.6 billion to the corpus fund. The Foundation also wants to add medical aid to its objectives. “I have accepted that a beginning can be made by providing medical facilities such as an infirmary or a resident doctor in the educational institutions run or funded by the Foundation. I propose to allocate INR one billion to launch this initiative”, he declared. Continuing the tradition of supporting institutions of excellence, the Minister has proposed to make a grant of INR one billion to Aligarh Muslim University along with three others. Mr. Chidambaram proposed to impose a surcharge of 10 percent on persons whose taxable income exceeds INR one billion per year. He justified it with a special praise to India’s Muslim business tycoon, Azim Premji, Chairman of IT giant Wipro Limited, known for his philanthropy. “I believe there is a little bit of the spirit of Mr. Azim Premji in every affluent tax payer. I am confident that when I ask the relatively prosperous to bear a small burden for one year, just one year, they will do so cheerfully”, he added.

Falling rupee: Do NRIs really gain?

Falling rupee: Do NRIs really gain?
By GOPAL SUTAR
Published: Sep 24, 2011 23:03 Updated: Sep 24, 2011 23:03
BANGALORE: Contrary to the rising stock market, a falling Indian currency sends a sense of fear in the Indian economy. The rupee recorded its sharpest fall in a single day in 15 years on Sept. 22, closing at a 28-month low at 49.58 against the US dollar.
However, such a decline augurs well for all those who send their money to India. Nearly 30 percent out of $55 billion transferred by the Indians to their home country in 2010 was from the Gulf.
At present, most expatriates earning outside the country seem happy with the declining rupee. With the festive season fast approaching and possibility of rupee weakening further, more remittances are bound to be made.
“No one would like to miss the opportunity to get that extra money”, says a banking official in Bangalore, India’s IT hub. The Indian rupee has lost more than 9 percent against the Greenback this year alone. One Saudi riyal now fetches over Rs. 13.
Indian experts blame it on euro zone crisis, which has weakened the euro resulting in a stronger dollar.
The dollar demand is on the rise in India ever since the government relaxed the overseas borrowing limit in July this year. It is alleged that some companies are hoarding dollars even by paying premium and this has created a demand-supply crisis. Once the rupee breached the 49 level, the Reserve Bank of India (RBI) intervened but could not stop the slide.
All this is bad news for Indian economy even as Indian expatriates rejoice.
NRIs may have more money in their hands, but investors and their families in India do not gain much.
India is a net borrower of the dollar. The declining currency acts as fuel for inflation. The petrol prices in India are amongst the highest in the world at current exchange rates. The bulk of India’s crude requirement — nearly 70 percent — is imported by paying cash in dollar terms.
The weak rupee also means India has to cough up more for raw materials needed for manufacturing activities, which have slowed down in the past few months.
When India pays more for its import, the fiscal deficit widens. As it is, the country has been struggling to overcome the deficit menace for years despite slew of measures announced by its Finance Minister from time to time. The government is facing severe criticism for its fiscal profligacy.
With a few exceptions such as the IT sector and pharmaceuticals to a certain degree, the declining rupee has hit India’s large private sector companies including Reliance Industries Ltd., blue-chip public sector organizations such as Indian Oil, Hindustan Petroleum, metal industries and real estate companies.
Ultimately, everything gets passed on to the consumer and therefore in real terms the NRIs may not benefit to the extent they believe.
However, due to the falling rupee their earnings or salaries get automatically hiked in cash terms compared to resident Indians who might have to wait for long for any increase in their income.
http://arabnews.com/economy/article506261.ece

Reserve Bank of India binds NRIs and their relatives

Reserve Bank of India binds NRIs and their relatives
By GOPAL SUTAR
Published: Sep 20, 2011 02:57 Updated: Sep 20, 2011 02:57
BANGALORE: The Reserve Bank of India (RBI) has made a few changes in the Foreign Exchange Management Act (FEMA) to boost more cooperation between NRIs and their relatives.
The central bank has now allowed the relatives of non-resident Indians to bear the medical expenses of visiting NRI relatives.
The resident Indians have also been given permission to repay loans availed from banks in Indian rupees in India by their NRI relatives.
As per another notification, NRIs can also hold joint accounts with their Indian resident relatives.
This applies to Foreign Currency Non-Resident (FCNR) account and Non-Resident External (NRE) Rupee account.
Resident individuals are permitted to make gift in rupees to close NRI relatives.
The amount must be transferred by check or by electronic means.
The amount should be credited to the Non-Resident (Ordinary) Rupee Account (NRO) account of the NRI.
The gift amount needs to be within the overall limit of $200,000 per financial year as permitted under the Liberalized Remittance Scheme (LRS) for a resident individual.
It would be the responsibility of the resident donor to ensure that the gift amount being remitted is under the LRS and all the remittances under the LRS during the financial year including the gift amount do not exceed the limit prescribed.
According to the bank notifications, the necessary amendments related to FEMA are being carried out separately.
http://arabnews.com/economy/article503843.ece

India Relaxes Banking Norms for Foreign Nationals

India Relaxes Banking Norms for Foreign Nationals


Here is the good news for foreign nationals employed in India holding valid visas. The Reserve Bank of India (RBI) has now decided to allow them to maintain resident accounts with authorized banks in India even after leaving the country. Earlier, their resident accounts were closed immediately once they left the Indian shores and their assets were transferred to their accounts maintained abroad. According to Dr. Sujatha Elizabeth Prasad, Chief General Manager-in-Charge of RBI when such persons leave India for a country other than Nepal or Bhutan for employment, business or for any other reasons for an uncertain period, their existing account would now be designated as a Non-Resident Ordinary (NRO) account. This is being done to facilitate the foreign nationals to collect their pending dues in India, she adds. The account would be closed immediately after all the dues are received and repatriated as per the declaration made by the account holder.

The banks have been directed to repatriate the funds credited to the NRO account immediately to the foreign national after verifying whether the account holder has paid applicable income and other taxes in India. However, the amount repatriated abroad cannot exceed US $ one million in a financial year. Scores of foreign nationals in India working in areas such as IT, banking and multinational firms would benefit with this RBI’s new regulation.