Bad Obama........Bad Obama.......Obama Statement about Indian Economy

I have read Obama  statement "worried situation of Indian economy due to restriction of FDI like in retail" at NDTV India channel.

what we can understand about this statement.......................

he want to say that In India, libearlisation should be. why.........

we can not forget recession. Indian economy have became save due to strong and protective regulation. if we can open Indian economy like European & american economy. we can not save Indian economy.

casino capitalism exist in  European & american economy. we can not follow that way. we support creative capitalism. Obama statement referred that increase the growth rate of  american economy with the help of Indian economy  because growth rate of american economy is low,,,, 1.9% in first quarter of 2012 over the previous quarter.


so, he want support from Indian economy but we can never go and follow casino capitalism. we always try to make strong Indian economy. we can make strong  domestic market. we want  always Indian economy depend on domestic market. 


so, i urge to Indian economist that they make strong economic policy and always assure to make safe to Indian economy from foreign countries's economy. 


economic policy should be increase the demand in domestic market and always make habit to Indian people i.e. "saving"......






written by


Ajay Kumar

E-Mail - ajay.mrim@gmail.com






  

Mismanagement......Mis- Selling... in Private Banks & Insurance Companies

Mismanagement means

1.  खराब व्यवस्था
2.  अव्यवस्था (f)
3.  कुप्रबंध (m)
4.  कुप्रबन्ध
5.  बिगाड़ (m)
6.  बद इन्तजामी                                                                                                                         

 i think effective and strong management open new door of business. effective and strong management should be at bottom to top level. we can see in tata group. this is the success of tata group. many organisation expanding business but deficiency is no management at bottom level. senior management always think and imagine without effective link to bottom level. we can see mismanagement particularly in financial services like insurance and banking sector. 

data said, India have big potential for financial market in next ten years  because domestic market is big in India. income of Indian people rising due to good economic growth. plan of financial inclusion is big challenge for financial sector particularly banking and insurance sector. public sector banks and insurance companies have strong potential due to higher rate of consumer confidence, good past history, good management etc......

but private banks and insurance companies fail to increase consumer confidence due to mismanagement, mis -selling (high pressure of sales), bad marketing strategy, inadequate of good and strong financial products. if one customer missale by bank & insurer then it will make bad image in another group of people. Decreasing rate of  good employee is another big reason in private banks & insurance companies.

Private Insurance companies particularly life insurer have lost consumer confidence due to  mismanagement, mis -selling (high pressure of sales), bad marketing strategy, inadequate of good and strong financial products. so, it will be difficult to gain again consumer confidence foe private life insurer.

similar pattern adopting by private banks from past few years.

so, i can say this is a alarming situation for private banks & insurance companies.......................

make effective & strong management

stop mis selling

retain good employees

do not make high sale pressure ( high sales pressure = mis selling)

make good and need based product

make effective marketing strategy

next many years waiting for financial market in India. 

written by ajay kumar

E-Mail id - ajay.mrim@gmail.com 

  

  

GAAR - General Anti-Avoidance Rules

General Anti-Avoidance Rules is a tool of government which prevent the practice of  tax evasion....................

Indian Government is trying to give powers to income tax authorities as implementation of GAAR provides tremendous powers to deny tax benefit to an entity if a transaction has been carried with the sole intention of tax avoidance. Due to powers in the hand of taxmen, now innocents may be harassed by them.

FII & FDI money coming to India through Mauritius route will now become taxable.

Increased litigations.

To make it easier to understand GAAR; we can say that suppose a person or a company is setting up business in Gulf Country and its clear intention is to claim exemption from capital gains tax, in such a scenario Indian govt has the right to deny the legitimate claim for exemption provided under DTAA as it falls under tax avoidance and Indian govt is trying to plug the loopholes.

Foreign investors may be relieved over the controversial gaar tax proposals being pushed back by a year but another new taxation framework could make their India investments riskier and expensive. 
The proposals that are a part of the Finance Bill. They state that capital gains arising from the transfer of shares or interest in a non-Indian company -- in case the share or interest derives directly or indirectly its value substantially from assets located in India -- will be taxable in the country. 

by

ajay kumar

ajay.mrim@gmail.com

NPS - NEW PENSION SYSTEM

PENSION is a necessity of any person who will face old age. so, government has launched NPS i.e. new pension system.

Their is

Main Features and Architecture of the New Pension System

• The new pension system would be based on defined contributions. It will use the existing network of bank branches and post offices etc. to collect contributions. There will be seamless transfer of accumulations in case of change of employment and/or location. It will also offer a basket of investment choices and Fund managers. The new pension system will be voluntary.

• The system would, however, be mandatory for new recruits to the Central Government service (except the armed forces). The monthly contribution would be 10 percent of the salary and DA to be paid by the employee and matched by the Central Government. However, there will be no contribution from the Government in respect of individuals who are not Government employees. The contributions and returns thereon would be deposited in a non-withdrawable pension account. The existing provisions of defined benefit pension and GPF would not be available to the new recruits in the central Government service.

§         In addition to the above pension account, each individual can have a voluntary tier-II withdrawable account at his option. Government will make no contribution into this account. These assets would be managed in the same manner as the pension. The accumulations in this account can be withdrawn anytime without assigning any reason. 

• Individuals can normally exit at or after age 60 years from the pension system. At exit, the individual would be required to invest at least 40 percent of pension wealth to purchase an annuity. In case of Government employees, the annuity should provide for pension for the lifetime of the employee and his dependent parents and his spouse at the time of retirement. The individual would receive a lump-sum of the remaining pension wealth, which she would be free to utilize in any manner. Individuals would have the flexibility to leave the pension system prior to age 60. However, in this case, the mandatory annuitisation would be 80% of the pension wealth.

• There will be one or more central record keeping agency (CRA), several pension fund managers (PFMs) to choose from which will offer different categories of schemes.

• The participating entities (PFMs, CRA etc.) would give out easily understood information about past performance & regular NAVs, so that the individual would able to make informed choices about which scheme to choose.

Source - www.pfrda.org.in

by

Ajay Kumar

ajay.mrim@gmail.com