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BY TAPONEEL MUKHERJEE
The Reserve Bank of India decided to hold repo rates unchanged in its meeting on December 5, 2019. In this context, apart from the outlook on inflation, the crucial area of focus should be the “transmission mechanism” of the rate cuts already delivered in 2019. In common parlance, “transmission mechanism” can be interpreted as the chain effect of rate cuts being passed on to the inter-related and inter-linked sectors in the overall ecosystem, to both lower the cost of credit and increase the availability of credit. Primarily, raise the money supply. The concept of an effective “transmission mechanism” is vital for India, both within the context of monetary policy and in the broader contexts of investments, capital flow and effective policymaking. The transmission of monetary policy, capital flows and
information must be all improved.
Within the context of monetary policy, the transmission mechanism is vital to ensure that the cost of credit is being lowered even as more substantial quantities of credit become available. It is a no brainer, that as resources for purveying credit rises with the banks so does the availability of credit for consumers. From the perspective of resolving some of the impediments that the economy is currently facing, it is critical that the low rates are passed on through a lower cost of credit and more credit availability and that the cost of credit itself is lowered across the term structure of interest rates.
An increase in short-term liquidity at the short end of the interest rate curve will eventually translate into lower longer-term yields for all. While short-dated credit availability is of prime importance, a sustainable drop in credit costs in longer tenures will significantly help in providing impetus to the investment cycle. Basically, as the cost of credit drops for longer borrowing periods, potential investment projects become increasingly attractive, given that the cost of financing the projects declines relative to the potential investment return. This increasing attractiveness of projects relative to the cost of capital will be a prime mover in getting the private investment cycle to get going in full flow.
As mentioned above, the “transmission mechanism” must not be limited to just monetary policy but must focus on the concept of capital flows.
Given the constant talk about how crucial private capital is to finance Indian infrastructure and the need global capital has for returns in a low-yield world, the essential point is that the “transmission mechanism” that allows global capital to flow truly and easily needs to be continuously improved.
Improving the “transmission mechanism” for capital flow is dependent on a variety of factors but significantly dependent on building investor trust through efficient capital flow templates. Mainly, expedited and precise project execution will be vital for India to create an effective transmission mechanism to generate significant capital flow.
In this regard, it is important to note that the efficient capital flow framework is as vital for international capital as it is for domestic capital. In fact, without domestic capital from both households and the private sector finding its way to finance the future businesses and infrastructure, international capital will be harder to come by. Effective transmission mechanisms are required for creating capital flow that can genuinely bridge the investment gap in India.
The answer to what promotes an efficient transmission mechanism of capital is not rocket science but essential. The primary factors are high contract enforcement, low bureaucracy and efficient courts of law. While the importance of these factors is well known, the governments both at the centre and the states must work together to deliver on the efficient transmission mechanisms required for efficient capital flow.
Beyond the financial implications and factors around transmission, effective transmission of both monetary policy and capital hinges upon trust that contracts will be honoured as per the law and speedy resolution of issues around contract enforcement will be provided for. For India to push ahead towards generating capital for both an investment and consumption upswing in the economy, and for continuously improving “transmission mechanisms” in the economy, a focus on the right policy in respect of “transmission mechanisms” is the need of the hour.
Additionally, ensuring that the policies that are implemented can create positive ripple effects in the economy is of equal importance. Transmitting the policy changes as far as possible within the value chain will be the real game-changer.
(The views expressed in this article are personal and that of the author. The author heads Development Tracks, an infrastructure advisory firm) (IANS)
What is the best way to save Goa from deforestation?
Drinking feni, may well be the answer, says the secretary of the Goa Cashew Feni Distillers and Bottlers Association Hansel Vaz, who on Thursday said, that sipping the state's unique alcoholic drink and making it popular would directly aid the greening of Goa's hills and other barren landscapes.
"To get more cashews, we need to plant more trees. I always say, by drinking feni you will save Goa, because we will be planting more cashew trees and we will have greener hills. The beauty of cashew is you do not need fertile land. You can grow it on a hill which can provide no nutrition. We will be able to grow more trees, if we can sell feni properly," Vaz said. Vaz's comments come at a time when the hillsides of the coastal state have witnessed significant deforestation for real estate development and for infrastructure projects. Feni is manufactured by fermenting and double distilling juice from the cashew apple.
Best way to keep Goa green is to grab yourself a glass of feni. | IANS
Addressing a press conference in Panaji, Vaz also said that the promotion of feni was also in sync with the Prime Minister's vision for India to go "vocal for local". "There is no conglomerate, multinational company owning the drink. So every time we sell feni, it is a direct cash injection into Goa. If you sell a feni cocktail in Calangute (a popular beach village), it makes a direct impact in Valpoi and Bicholim, because this money is going down there," the Association official said at a press conference in Panaji.
The Association held the media briefing to announce a road map ahead for the feni industry, especially vis a vis streamlining aspects related to production, standardisation and marketing of the brew to make it popular in other Indian states and abroad.
The efforts to streamline the state "heritage drink" comes a month after the Goa government notified a formal policy, 'Goa Feni Policy 2021', which covers 26 different varieties of feni distilled in the state. "There were many barriers related to feni, which the policy has now addressed," treasurer of the Association Tukaram Haldankar said. One such hurdle was the previous government classification, which described feni as "country liquor", which would deter tourists from purchasing the drink. The reclassification of feni as a state "heritage drink" has lent dignity to the brew which has been manufactured locally in Goa since the 16th century.
But there is more the government can do, along with the state's traditional distillers and manufacturers to promote feni, Haldankar said. | Photo by Ishvani Hans on Unsplash
But there is more the government can do, along with the state's traditional distillers and manufacturers to promote feni, Haldankar said. "We request the government to allow the sale of feni in duty free stores in airports and cruise liner terminals. The government should also support us through the department of Tourism, so that feni can be promoted in its programmes. iIf you go to Scotland, they promote Scotch. Goa should promote its feni to Goa," Haldankar said, adding that traditional distillers should also be given subsidies and other measures should be taken to standardise feni, which he said, "would require further subsidies and financial assistance from the government".
"It should be a standard product like scotch, champagne," Haldankar said. "Like Mexico's tequila, Russian vodka and Japan's sake, we need to export our feni across the country and the world and the local distillers should also benefit economically," president of the Association Gurudutt Bhakta also said. (IANS/ MBI)
Keywords: deforestation,cashew,distillers,association,government, goa, feni, India
By- Kent A. Eide
With the advent of technology, privacy and age-related limitations have been done away with. Almost anything is available on the internet in abundance. For those sites where a paywall or a subscription is required, it takes just a few clicks to find loopholes in the workings of the dark web, to manipulate the settings, and to become a full-time user. Similarly, digitisation of almost every industry has allowed access to worlds previously not openly accessible to just anyone. The partakers of this new world, not surprisingly, are children and youth, armed with curiosity and the impeccable ability to navigate the online world with ease.
Gambling has a rather attractive lure, and in a matter of no time at all, it is easy to so involved in it that there is no way out. In such a competitive and fast-paced world, anyone will go the extra mile to earn more money. It doesn't matter what is at stake, especially when young people have not really worked to earn what they are ready to stake.
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In the past few years, online gambling has seen a big boom. Youngsters, especially college students are easily lured into this world, and tragically get enveloped to such an extent that when they find no way out, they end their lives, knowing that they cannot pay back their debts. Many such cases have been reported in many parts of India, and often the victims are those who have newly entered the world and lost their way from the overwhelming amount of particulars available, unsure of how to claim it for themselves. But all this aside, how does one enter this world with so much ease?
Photo by Alexander Schimmeck on Unsplash
For starters, the gambling world does not ask for much. Being curious about the industry is enough drive to begin. Wanting to win is certainly an important part of continuing into the deeper forays of the website. Add to the list the comparatively lax entry points. One does not really need to verify their identity and can play under pseudonyms. There is no check on the amount that can be invested, or on how much can be won. Certainly, there is no way to check for the participant's age. When these factors come together, they make a pretty deal to attract even the initially hesitant ones. Beginning the game is only the first step, and once one thing leads to another, before long, it becomes a world accessible on the tip of the finger, literally.
Many online casinos place their advertisement in strategic locations across various sites. The bright colours, attractive names, and irresistible offers read like subliminal messages for those who dream of big bucks, especially freshers in college, who need money to explore their world. It seems like a viable option to test the skills of strategy making while also having extra pocket money to spend.
Restrictions of age, monetary capacity, and sometimes even social status exist only in the offline world. The virtual is a place that can make anything out of anyone. When it comes to online gambling, casinos, and games, this is definitely a plus. It remains open all day long, all year around, and each hour is an opportunity to change the way one lives.
(Disclaimer: This article is sponsored and contains some commercial links)
By- Sunidhi Beeliya
Unconventional career choices might be challenging at first, however, the benefits associated with these are promising. Today's job opportunities are the ones that didn't exist a few years ago. Similarly, the pace of technological evolution would continue to generate millions of new jobs in the future that we can't think of today. Equipping oneself with relevant, unique, evolving, and out-of-the-box skills, is thus, an important aspect for young graduates aiming to start their own business or land a secure job. As parents, education institutions, and the government are now motivating the youngsters to walk an extra mile, think of new ideas, and explore new career routes, students have gathered the confidence and courage to pursue their interests. For those who don't align with the traditional work culture, believe in doing something revolutionary, aim to pursue their passion, and wish to make an impact, learning an offbeat skill could be exciting and rewarding. Here are a few more reasons that would add up to your decision of learning an offbeat skill.
1.Pursuing your passion - Whether painting, dancing, writing, scripting, anchoring or travelling, passion fuels your willingness to work. Mastery in an offbeat skill would help you turn your interests, passions, and dreams into reality. While working professionally in the field of your choice, you stay motivated, continue learning, experience a sense of accomplishment, feel positive and energetic, broaden your horizon, and constantly discover new career opportunities. For those with multiple interests or hobbies, you must first assess your strengths and weaknesses and the opportunities and threats of building a career in those fields. This will help you to determine your capabilities, make the right decisions, and stay focussed, consistent, innovative, and dedicated towards your career.
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2.Earning potential - Delayed results, sleepless nights, lack of resources, hefty equipment costs, and fewer earnings initially, are a few complications associated with pursuing offbeat careers. However, once you build your recognition, loyal clients, and credibility, your craft will be appreciated by everyone. Unlike 9-5 jobs wherein your earnings would increase by 10-20% annually, earning potential in offbeat domains is humongous. Few photographers during weddings and festive seasons, scriptwriters working for top-notch brand ads, and animators designing their own video games, earn more than someone's 2-year package within 2-5 months. Your expertise, experience, knowledge of the field, quality of work, and ability to market yourself could help you fetch a lucrative amount once you are established.
Constantly learning new things helps to stay updated and meet demand Photo by Carl Heyerdahl on Unsplash
3.Possibility to build a great network - Offbeat career choices like animation, photography, video editing, blogging, digital art, calligraphy, playing guitar, or creative writing feature a great scope for networking. You build your own professional portfolio, reach out to experts in your niche, connect with more people, do your own PR and marketing, build your visibility on social media, and develop long-lasting relationships that help you in career progression. You get access to more work, stay informed, get expert advice and suggestions, gain new insights, and strengthen your social skills that are essential for growth. Pursuing a career in an offbeat skill is thus an excellent way to meet new people, showcase your ability to the world, make lasting connections, and grow profoundly.
Also read: Skills You Can Learn At Home
4.Be your own boss - Offbeat fields have enormous choices when it comes to choosing the place, time, duration, and type of work. You can start as an intern or freelancer, can work on a contractual basis with private or government firms, work for multiple clients at a time, or can start your own business. You set your own short term goals, mission, vision, and deadlines, have the freedom to choose projects that excite you, and quote prices that justify your talent and skills. Unlike fixed commitments wherein the work is driven by company expectations, here you can connect with your clients and customers anywhere, anytime, enjoy a great work-life balance, do a variety of work, work in-office or from home, and live life on your own terms.
5.Constant learning and progress - As trends and technology keep advancing, success in offbeat careers require you to be dynamic, up-to-date, active, creative, innovative, and self-motivated. You need to master the latest trends, in-demand hard and soft skills, new software or tools, and analysis and marketing tactics to stay in the competition and have steady career growth. Obtaining certifications might also become essential to display your competency, validate your expertise in your domain, showcase your commitment, and assure your clients that your skills are worth considering. Thus, learning through part-time or online courses would become an essential element of your life once you start working in an offbeat field. You would be constantly eager to learn and acquire more knowledge, discover new techniques of working, compete passionately, and grow in your career.
Courtesy: Internshala Trainings (training.internshala.com) - e-learning platform to learn new-age skills from Internshala
Keywords: Passion, Techniques, Offbeat Skills, Career, Potential