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Anil Ambani announces Rs.5,000 crore new defence investment

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New Delhi: With the recent acquisition of Pipavav Defence, Reliance Group chairman Anil Ambani announced on Thursday that an additional investment of Rs.5,000 crore will be made as part of India’s emphasis on “Make in India” for military hardware and cut imports.

He also underscored the need for larger public-private partnerships in the defence domain, and called for pooling of resources so that India becomes self-reliant in protecting its boundaries and cuts reduces its dependence on the global markets.Credits: https://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAYQjB1qFQoTCIzhq76038YCFQlwjgodT10DkQ&url=https%3A%2F%2Fwww.wharton.upenn.edu%2F125anniversaryissue%2Fambani.html&ei=E4OnVcyLCYnguQTPuo2ICQ&bvm=bv.97949915,d.c2E&psig=AFQjCNGMFw6B-S3yAE3is9AJqPKKhaUAbg&ust=1437127716377216

Quoting extensively from the experiences he gained from his late father, the legendary industrialist Dhirubhai Ambani, the Reliance Group chairman said his father’s vision was to meet the aspirations of generations with self reliance, adding that the Make in India initiative of Prime Minister Narendra Modi is a major step towards that.

“This initiative of the government redefines the defence ecosystem in India with our Navy in the lead… For a country with one of the longest coastlines in the region and vast expanse of territories over the seas, self reliance in naval capabilities is an ever challenging imperative,” he said.

The Reliance Group chairman said the acquisition of the Pipavav Defence Company in Gujarat with assets worth more than Rs.10,000 crore was his company’s contribution towards self reliance.

“Pipavav has the largest dry dock in the country and the second largest in the world. With more than 30 lakh sq ft of covered area for fabrication and integration alone, this is perhaps the largest single location defence manufacturing facility in India,” he said.

“We will invest an additional Rs.5,000 crore over the next few years as part of our commitment towards indigenisation efforts.”

He said that the Pipavav facility will be capable to deliver “all requirements of the Indian Navy from frigates to aircraft carriers to submarines”.

Russia, meanwhile, has chosen Pipav as a partner to build three updated versions of Talwar-class frigates, likely to be the biggest-ever warship-building project for private sector in India worth around $3-$3.5 crore.

Ambani said self reliance in defence is also needed so that India does not have to compromise on its foreign policy.

“Large part of our Defence inventory have dependency on global relations. This creates limitations and sub-serves our foreign policy. Self-reliance gives us the flexibility to pursue our foreign policy objectives,” he said.

He said since the sole consumer for domestic defence hardware was the government, “specific measures towards ease of doing business will encourage industry participation”. Accordingly, he suggested an advisory committee with chief executives from public and private sectors to meet regulary to “align and converge the understanding and aspirations of all stakeholders”.

“There is need to institutionalise private sector participation not only for indigenisation but the entire spectrum of defence production through groups comprising Private Sector companies and PSUs at MoD to pool resources,” he said also suggesting a separate joint secretary in the defence ministry for the private sector.

“Today, in the ministry of Defence we have joint secretaries responsible for different public sector undertakings. I believe there is a case for a joint secretary exclusively to engage at the business level with the private sector,” he said.

Ambani also expressed hope that the updated defence procurement procedure (DPP) will help “in ease of doing business with MoD… Transparent, fair procedures and processes creates a favourable climate, encourage competitiveness and eventually deliver the best overall value for the country,” he said.

Another suggestion from the industrialist was to introduce courses at IITs, IIMs and other higher learning institution related to the requirements of the defence industry.

(IANS)

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Here’s Why Your Investment Strategy Should Not Be Based on Online Recommendations

There are some essential reasons why your investment strategy must not be based on online recommendations alone. Here’s why:

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Here's Why Your Investment Strategy Should Not Be Based on Online Recommendations
Here's Why Your Investment Strategy Should Not Be Based on Online Recommendations. Pixabay

An investment strategy is a plan of action taken by investors to guide their financial
decisions on the basis of their investment portfolios. A well-written and measurable
investment strategy is the key to success of every investor. Furthermore, with the
right professional recommendations, these strategies can offer more ways of
creating better financial security.

However, today, the human financial advisors have been replaced by online
recommendation systems, an intelligent information filtering platform that assists
investors to narrow their decision-making process. Online recommendations have
become an integral part of user experience in the investment sector.

Yet, the question still remains that even though online recommendations are
changing digital reality for investors, are they good for investment strategy? The
answer is No!

There are some essential reasons why your investment strategy must not be based
on online recommendations alone. Here’s why:

You're not talking to a real person
You’re not talking to a real person. Pixabay

#1 You Are Not Talking to A Real Person
Online recommendations systems follow a universal algorithm due to which users
are siloed into separate segments. It does not tailor your products according to your
needs.

The system only understands that you want to create a plan, but it does not consider
how would you like it to be and what factors are supposed to be taken into
consideration.

The ultimate drawback is that you are not talking to a person but being serviced by a
machine. This means the system lacks a two-way communication, thus restricting
users from making any changes.

On the contrary, in case of a financial advisor, you are talking to a living being, who
will listen to you about your needs, your goals, and present financial status. Based
on the conversation, the advisor will create a suitable plan for you, which if you do
not agree with, can be changed.

#2 Real-Time, Face-To-Face Advice Is the Best Advice

It’s always a good and secure feeling to listen to another human voice and have a
face-to-face conversation with someone, rather than having to deal with a lifeless
machine.

When you ask for online recommendations for your investments, the suggestions are
usually coming from a computerised platform, trained to deal with your queries.
However, this is not enough. It’s only natural to have trust issues with a machine
handling your money matters for you.

Furthermore, it is an undeniable fact that financial advisors have more knowledge on
investments based on their experience in the field. You can have a real conversation
with them, asking question after question till you are satisfied with the answers. You
cannot do the same with online recommendations.

You also have tax deductions to take care of, which requires the recommendations
of an expert dealing with such matters for years. Websites can never estimate the
life changes that might occur unless a user feeds new data into it. In the same way, it
cannot get around the complex calculations of tax reporting, which can greatly affect
your financial decision in the long-run.

#3 Variety of Options

When you opt for online recommendations, the investment options in the results are
limited. This means that you can only opt for what lies in front of your eyes.

Representational image.
Representational image. Pixabay

If you are choosing a term policy, you would like to be judged on more than just a
few questions that you see on your screen and reap maximum life benefits from it.
You would like to know what riders are available along with the term policy, different
types of plans and benefits of the same. You can get all these answers when you
talk to an insurance provider, rather than an online recommendation system.

Furthermore, there are certain conditions that you may have doubts about, especially
pertaining to life policies wherein a divorce or death could bring in changes to the
policy, which needs to be clarified with a real person.

Online recommendations are good to go as long as your investment deals with low-
risk goals like a short-term investment or calculating your home loan or insurance
premium. For long-term goals like investment for the education of your children or
retirement, this tool only creates high risk.

Final Takeaway:

The final word is that online recommendation systems might be standing their
ground in the world of investment, but when you are not sure which direction to move
towards, financial advisors are your saviours.

A certified financial advisor adept with knowledge of your financial situation will prove
to be more proactive in aligning your investments.

Financial advisors, unlike online recommendations, can assist you in figuring out
whether you are on track with your savings and how other investment options can
benefit you in future.