Through the Looking Glass

Write-up  here.

The Financial Express Over the past seven years, India has strongly economically implemented a minimum-wage regime via MGNREGA: We hypothesise that this may have driven rural women out of the workforce leading to jobless growth. Basic economics tells us that an artificial floor or cap on prices leads to the misallocation of resources: minimum-wage regulations drive out workers from the labour market whose productivity is below the wage. Skill development is the key to making the labour force productive. In two of our earlier notes dated July 10, 2012, and June 27, 2011, we had asked the question Where have all the girls gone Both the NSSO and the Labour Bureau surveys pointed out the low or declining labour force participation of women especially in rural India (see table). Our earlier notes only pointed out these trends as there was no clarity on why women were dropping out of the workforce. Some experts thought women may have started spending more time on education and skill dev...

The Economic Times The outlook for agriculture in India is changing: price rises are lifting realisations , which are being reinvested in productivity growth. The outlook for agriculture in India is changing: price increases are lifting realisations, which, in turn, are being reinvested in productivity enhancements. Small changes in the agricultural value chain can add up to a substantial improvement in yield and productivity. India ranks high in terms of total production of various commodities including milk (first), wheat (second), rice (second), fruits and vegetables (second). Increasing prices of commodities via government support MSPs or general inflation (milk, fruits and vegetables) have led to a doubling of farmer incomes over this decade. Thanks to the injection of funds by the government through various schemes (like MG-NREGA and PM Gram Sadak Yojana), the Indian heartland is witnessing a bout of prosperity. However, low yields (across all staples and milk) highlight...

If the needs of families gave birth to family office concept, the changing business environment has made it a business opportunity today and Financial Planners in India can take a lead in utilizing this opportunity. Read the detailed article here:  Financial Planning Standards Board

The Economic Times Realty funds offering innovative investment avenues Pradeep was ecstatic. He had just received a larger than expected year-end bonus. After a vacation to Shimla with family, he was now wondering how to invest the remaining amount productively for the future. He considered buying a flat in Mumbai, using the bonus as down payment and taking a loan for the remaining amount. Though he would get a tax benefit on interest repayment, prevailing high rates worried him. He was not sure about finding the right property with a good rate. He was told that yields on commercial property were better than those on residential, but the ticket size was higher. The likes of Pradeep can take heart as there are now useful vehicles in the form of Real Estate VC funds and Real Estate PMS. They address precisely the problems mentioned above. For a fee (typically 2% annually), they take money from investors and invest in a set of realty projects. They take a share of profits from in...

The Economic Times If you have exchanged vows recently, you would need to rejig your expenses and savings structure. Here's how you should go about it. Now that both of you have decided to take the plunge, among the various angles that you should look at, there is one more that both of you should consider jointly: your finances. As you move from the ‘single stage’ to the ‘double income no kids’ stage, it is important to note that your priorities, incomes, expenses and savings will all change significantly. (This article addresses the couple where both are working). There are certain strategic and the tactical changes that you should consider and prepare for. Change in milestones: One of the pillars of financial planning is identification of milestones. When you are single, milestones are determined by your whims and desires. Talking to each other about your financial milestones will reveal how significantly different your ideas might be; and this will set the stage for a...

“While thinking of equity investments, think long term” - goes oft-repeated words of wisdom. Is it true only when the markets touch these unprecedented heights or should we keep this in mind even during saner times? Read the whole article here:  Financial Planning Standards Board