India needs to upgrade its 4.2 million kilometers (2.6 million miles) of roads, close the gap between the power its utilities sell and what its manufacturers need, and ease congestion at ports. Its failure to do so is hobbling the central bank’s efforts to beat inflation. Even after the bank raised interest rates by a record 375 basis points in 1½ years, wholesale prices have risen more than 9 percent on an annual basis for 12 straight months. Although food prices have dropped some, the bank says supply bottlenecks that also push up costs must still be tackled.

“India has allowed a large number of cars without creating enough roads; a large number of industries without enough power to run them,” says Sunil Sikka, president of Havells India (HAVL:IN), the nation’s second-largest electrical components maker by value. “It’s like trying to wear shoes without socks—very, very irritating and difficult.” Sikka says Havells must pay higher packaging costs to protect lamps and switchgears from bumpy roads, where average speeds are 20 kilometers per hour (12 mph). JC Bamford, whose excavators sell in 150 countries, needs at least nine days to move equipment 2,900 kilometers from New Delhi to Trivandrum in southern India, says Vipin Sondhi, the local unit’s chief executive officer. In the U.S., that would take four days.

While RBI is trying different ways to keep the inflation on check, Indian government is also planning to built and improve few thousands kilometers of roads this year. We can only hope the infrastructure gets better to help ease the burden.

It is in the Indian culture and ethos that we look to leave a fortune to our future generations, even if it meant sacrificing a bit of our lifestyle. The simplest way that you can achieve this fortune is by buying shares of good companies (of course at the right price) or units of good diversified mutual funds and leaving it undisturbed for decades, possibly away from your and your family members’ view. You can rest assured that they would come handy to your loved ones at times that are good or bad.

Interesting post with different outlook. I strongly recommend to read his full post at moneycaresolutions.in and post your positive comments.

Source: siliconIndia.com

• On paper – mathematically – Indian poverty should disappear by 2050. The reason it won’t is that huge inequalities in income will persist unless we rapidly implement second-generation economic reforms which deliver real benefits to the bottom of India’s socio-economic pyramid
• The Citi study relies heavily on India’s two dividends – demographic and democratic. The demographic dividend will ensure that India has the largest number of working-age people in the world (over 800 million) between 2015 and 2035 before tapering off as our population reaches a plateau of just over 1.60 billion and starts ageing (as China’s already is).
• The second dividend Citi banks on to project India’s rise to the top of the GDP rankings in 2050 – especially in comparison with China – is democracy. China’s autocratic government, the argument goes, can command 10% GDP growth, build superhighways and create gleaming infrastructure.

To reach $85.97 trillion in 2050, the Indian economy will have to grow at an average annual rate of 8.1% a year for the next 39 years. Optimistic or over optimistic? Now, we totaly forgot about the 2020 Super power dream put forth by our past president Abdul Kalam and started thinking about No.1 in 2050. I would say it is really too far out and too many things can happen especially natural calamaties which are taking place in all over world can totally put a country to devastating state like Japan, Thailand.

We can only hope mother nature would be good on us and focus on country near future growth and issues and tackle them to take the country in right path without corruption, total education reform and entreprenuership route. Here is the link to the full article, have fun reading it.

I cannot stop but talk about Gold when I was wondering what to write for this month blogs. Gold is dominating the market news these days because it broke the $1600 mark and made another record this week. It has gone up from $1500+ mark to $1600+ in just  2 months which is 6% increase in this period.  If some one would have invested $1500 2 months, they might have earned 6% return in just 2 months. That’s really high rate of return because of the current market condition and high speculation.

If you still decide or plan to invest in Gold, just watch out for signs and do it diligently. Many analyst are still predicting Gold will hit $2000 mark by end of this year. It is possible if the economic uncertainity prevails but as an investor, its an high price invest so try to do your investing carefully by doing more research.

Last time when I wrote about Gold, it was almost 2 months ago and Gold was trading above $1500, may be $1550 or so. As of today, it is trading in and around $1520 range. It hasn’t moved much but obviously has seen some high trends on certain days but came back down later. What happend to all the hype about Gold going to $1750-$2000 by end of this year. Nobody knows how the market reacts because it’s is not easy predictable job otherwise everyone can make thousands and become millionaire. That’s where all the probability and possibility plays the role and makes it tough.

Happy Gold Harvesting!!!

Are you excited about your upcoming short term business trip to USA or Europe?

You can read the article in economictimes in detail.