Friday, 1 June 2012

[www.keralites.net] Impact of Depreciation of Indian Rupee

 

Every country exports and imports for its survival. As long as this equation of imports versus exports is balanced, it is good for the nation but when imports become more than exports, the value of the currency starts declining. It means that the country needs more from other countries while it has little to offer to them. Indian goods are bought with Indian rupees. Hence if the demand for Indian goods falls, consequently the demand for Indian rupee also falls.

India has dual challenges. While the demand for Indian goods seems to be waning, due to export slippage, India continues to import crude (petrol/diesel) and other imports vital for the economy at high international commodity prices and an inelastic demand for gold and silver. Therefore the demand for the dollars continues to be high. This situation puts further pressure on the Indian rupee widening the current account deficit.

What is the immediate fallout of the rupee depreciation:-
1)
The price of petrol has gone up substantially. Also the price of diesel and LPG could spike. When the price of fuel goes up, the cost of transportation goes up and when the cost of transportation goes up, the cost of goods goes up and thus inflation goes up. As we have a current account deficit, rupee depreciation has an inflationary impact.
2)
Companies which are dependent on raw material imports or have imported components could see profitability and market capitalization take a beating. This is because its profitability may get hit by higher input costs.
3)
Foreign travel is set to get costlier. One would have to keep more rupees on hand to purchase dollars to fund foreign travel.
4)
Studying in foreign universities may get costly. This is the same in the case of foreign travel; more rupees would be needed to fund foreign education.
5)
Several electronic goods which depend on imports and royalty payouts may get more expensive.
6)
NRIs and exporters would be happy and can be expected to remit more dollars as they would get a higher price. Companies like IT software, Pharma and BPO would gain from the dollars that they earn by providing goods and service abroad.
As seen above, devaluation of the rupee is inflationary in nature, as we are net importers. There is a need by the Government to devise policies and tools to stem the fall of the rupee. In this context it is important to examine the tools (short term and long term) that may be available:-
1)
Government can buy Indian Rupees from the foreign exchange market by selling its dollars. This would however reduce the foreign exchange reserves which are needed to fund our imports. Hence this is not a sustainable solution.
2)
Government can mandate banks to increase their Cash Reserve Ratio and Statutory Liquidity Ratio which means banks would have to deposit more rupees with the Reserve Bank. Alternately the central banks can issue bonds for the public. By these measures the central bank would reduce the liquidity in the system and try and make the rupee dearer. However, these measures have the effect of increasing interest rates which hurts profitability of companies and thus adversely affecting economic growth. When economic growth gets limited, the production of goods and services too gets unfavorably impacted giving rise to inflation.
3)
The Government can ask companies who have dollar accounts to bring in the dollars back into the country and convert them into rupee accounts. This would increase demand for the rupee which in turn would stem the slide of the rupee.
4)
The Government can make it easier for companies to borrow in dollars from abroad. Companies would get more rupees for every dollar borrowed. This would help them finance their working capital requirements. If the rupee regains its strength over a period of time, the borrower could have to return lesser rupees. However, if the rupee further slides then business would be at a disadvantage. Hence businesses would take this route based on their outlook of the rupee.
5)
The Government can attract NRI dollar deposits by offering attractive interest rates
6)
Government can reschedule / delay in paying off its dollar debts with the hope that the rupee would regain strength subsequently.Thus at a later day lesser rupees would have to be coughed up to repay the debts.
7)
The Government can increase the limit of FII investment in debt papers. This would certainly bring hot money seeking quick gains. Some flow of hot money would be useful.
8)
Government can liberalize foreign investments in insurance, aviation and retail, infrastructure sector, agro-based businesses as well as may reduce subsidy from various sectors. This would be one of the better moves as it would bring in serious long term money from abroad.
9)
The Government could frame policies to restrict the import of gold by raising custom duty and thereby making investment in gold less attractive.
10)
The Government could action some long standing economic reforms to induce both domestic and international investments. This would help in increasing production and productivity of the economy. Higher production along with productivity would help in increasing supply of goods and services and thereby reduce inflation. This would be a better and sustainable method for tackling both the rupee crisis as well as inflation. Economic reforms would bring in "Foreign Direct Investment". Economic growth can improve investor confidence and this ultimately bringing back a higher trajectory of GDP growth.
The depreciation of the rupee has an immediate impact on India in many ways, as discussed above. It is important to understand the macro-economic situation and the ways and means by which the Government can battle the challenges and try to steady the economy.
 
Source TMF
 
Best Regards
Prakash Nair
 


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[www.keralites.net] 10 Steps To A Healthy Pregnancy

10 Steps To A Healthy Pregnancy

 
Fun & Info @ Keralites.net 1. Organise your antenatal care early in your pregnancy:

 
Good antenatal care is essential to your baby's health. Choosing your doctor early means you'll have months to build a good relationship before your baby is born.

 
When choosing your doctor, get recommendations from friends and family. A good doctor is one who is able to give you personalised care, encourages you to ask questions, treats you with respect and answers all your queries patiently. Ideally, choose a doctor with a clinic close to your home. You might need to reach them quickly in an emergency, so it's a good idea to have their mobile number close at hand.

2. Eat well:
There's no need to 'eat for two' when you're pregnant. You may well need an extra 200-300 calories each day, but this is equivalent to:

a couple of slices of wholemeal toast and margarine/butter
two chapattis or idlis
a jacket potato with a small amount of cheese
one slice of cheese on toast
a serving of upma or poha
an extra glass of milk.

It is important to eat a balanced and healthy diet. You might go off certain foods, but it's always possible to swap these with others of similar nutritional value.

Aim to eat a diet with plenty of vegetables and fruit, and some carbohydrates such as roti, bread and rice (preferably wholegrain). You also need protein - this could be fish, meat, eggs, nuts or pulses.

Have some milk and dairy foods every day, such as milk, yogurt, ice cream, buttermilk and cheese. However, if you are lactose-intolerant, choose other calcium-rich sources, such as chickpeas, kidney beans, oats, almonds, soymilk and tofu.

You might find it better to eat five or six small, well-balanced meals a day rather than three larger meals. Don't skip any meals if you can help it.

Keep yourself well hydrated by drinking at least eight to ten glasses of water every day. Avoid caffeinated and artificially flavoured drinks and have fresh fruit juices, soups, and milk.


3. Be careful about food hygiene:
It is better to avoid certain foods in pregnancy because they carry an infection that can be a health risk for your baby.

Listeria, is an infection that can cause miscarriage or severe illness in newborns.

The listeria organism may be present in raw milk, non-pasteurised milk, raw meat and unwashed vegetables. So buy pasteurized milk, cook meat well and wash vegetables carefully. Refrigeration does not stop the growth of listeria.

Toxoplasmosis, is a parasite. It is rare, but can seriously affect an unborn baby. It is found in raw and undercooked meat and in soil and cat faeces. So make sure that meat is well cooked. Wash vegetables and salads to remove any traces of soil or dirt. If you have a cat, ask someone else to clear up any cat mess. Salmonella is a food poisoning bacteria. It does not harm your baby, but may make you feel very unwell. Salmonella can be found in undercooked poultry, and raw or soft-cooked eggs. So cook poultry well, and cook eggs until they are hard.

Try to eat freshly prepared meals whenever possible. If you do have a ready meal, check the best before date and that the packaging is not damaged. It's also worth checking the nutritional value and the list of ingredients, as there may be additives or preservatives that are unsuitable for pregnant women. MSG, for example, may trigger headaches, nausea and vomiting in sensitive individuals, although there is no evidence that it is harmful to a developing baby. Any packaging that is bloated, leaking or damaged, indicates potential risks of contamination.

In a warm humid country like ours, good food hygiene is especially important to make sure the food you eat is safe. Ensure all food is cooked well. But even cooked food stored in the refrigerator overnight can be contaminated. Try to avoid leftovers. Buy perishables daily and, when buying processed and convenience foods, always check the 'best before' and expiry dates. Keep cooked food covered and refrigerate within two hours of cooking.

Be very careful when eating out. A glass of fresh juice or a fruit chaat from a roadside vendor may seem inviting but may be contaminated. It's best to avoid golguppas and aloo tikkis, even at popular eating places, as you can't be sure they have been prepared under hygienic conditions. If you have paid help, ensure that she washes her hands thoroughly before preparing food.


4. Take folic acid supplements:
Folic acid (also called folate) is the only supplement that is considered vital. It can help prevent spina bifida and other neural tube defects in babies.

Spina bifida is a serious congenital condition affecting the central nervous system that can cause severe disabilities. All women planning a pregnancy are advised to take a daily supplement of 400mcg of folic acid starting around the time of conception and continuing through the first three months of pregnancy.

You can also increase your intake of natural folate through your diet. Folate is found in vegetables like spinach, peas, lady's finger, lettuce, beans and capsicum as well as in fortified breakfast cereals.

Other nutrients that are important to your health and your baby's are iron and calcium, which can generally be provided by your diet. Leafy greens, such as spinach (palak), mustard leaves (sarson), methi, mint (pudina), coriander (dhania), radish (moolie) and raisins are rich sources of iron. Try sipping lemonade (nimbu pani) with your food as the vitamin C in the lemon helps iron absorption. You could squeeze lemon onto your salads as well..

Calcium-rich foods are milk, cheese and tinned sardines (with bones), soy milk, tofu, leafy green vegetables, sesame seeds, kidney beans, chickpeas, nuts and oats. If you think your diet may lack calcium, speak to your doctor who may prescribe a suitable calcium supplement.

Fish oils have been found to have a beneficial effect on birth weight and on the development of brain and nerves in late pregnancy. Try to eat oily fish such as herring (bhing machli), mackerel (bangda), salmon (raawas) or sardines (chareeaddee) two or three times a week. If you're not keen on fish, you could take fish oil supplements (choose a brand free of the retinol form of vitamin A). But talk to your doctor before taking any over-the-counter medications or herbal remedies.


5. Exercise regularly:
A good exercise programme can give you the strength and endurance you'll need to carry the weight you gain during pregnancy and to handle the physical stress of labour. It will also make it easier to get back in shape after your baby is born.

Exercise can boost your spirits and help ward off the pregnancy blues. A recent study found that staying active can boost your level of serotonin, a brain chemical linked to mood.

If you're used to taking exercise in the form of a sport, you can continue with this as long as it feels comfortable for you, unless your particular sport carries a risk of falls or knocks. More gentle exercise such as walking, swimming, aqua-aerobics, and yoga are also very beneficial.

Make sure you check with your doctor before starting any exercise routine.

In summer, walk in cool, shaded areas and stay indoors when it is very hot. Wear comfortable, loose clothing, suitable walking shoes and a well-fitting, supportive bra.

Learning some breathing exercises now will help you when your baby is born. They might help you to control your breath and your stress levels during labour.


6. Begin doing pelvic floor exercises:
The ideal time to begin pelvic floor exercises is adolescence, but many women don't hear about them until pregnancy.

The pelvic floor muscles are the hammock of muscles at the base of your pelvis that support the bladder, vagina and rectum. They can be weakened by pregnancy because of the extra pressure on them, and because the hormones of pregnancy cause them to slacken slightly.

You can strengthen your pelvic floor by doing daily exercises. Try and do them frequently throughout the day - when you wash your hands, brush your teeth, or wait for the kettle to boil.


7. Limit your alcohol intake:
Because any alcohol you drink rapidly reaches your baby via your bloodstream and placenta, you may decide to cut it out completely, or at least to monitor the amount you consume.

Pregnant women should drink no more than eight units of alcohol per week, and no more than two units at any one time. Women who have more than two drinks a day are at greater risk of giving birth to a baby with fetal alcohol syndrome (FAS). Children born with FAS suffer from mental and growth retardation, behavioural problems, and facial and heart defects.


8. Cut back on caffeine:
Coffee, tea and cola-style beverages are mild stimulants, and some research suggests that too much caffeine may increase the risk of having a low-birth-weight baby.

The current advice is that two cups of coffee or tea per day (or up to five cans of cola) won't hurt your baby.

You may prefer to switch to decaffeinated coffee or tea, or drink fruit juices instead. A refreshing alternative is a glass of mineral water with a twist of lime or lemon or tender coconut water. You could also drink fresh fruit or vegetable juices as they contain plenty of vitamins and minerals for you and your baby.

9. Stop smoking:
Women who smoke increase their risk of miscarriage, premature delivery, stillbirth and cot death.

Some studies have shown that women who smoke 20 or more cigarettes a day during pregnancy are more likely to give birth to a baby with a cleft lip or palate.

While it is best to give up smoking before you even try to conceive, any reduction in the number of cigarettes you smoke per day will give your baby a better chance.

It is best not to be exposed to cigarette smoke at all. Encourage your husband to give up as well, or at least to avoid smoking inside the house. Tell visitors and relatives that your home is a 'no smoking' zone.


10. Get some rest:

The fatigue you feel in the first and third trimesters is your body's way of saying 'slow down'. A nap in the middle of the day may seem like a luxury you can't afford, but you and your baby will both benefit. Take any offers of help. To make sure you get enough rest, try to reduce your working hours, and perhaps cut down on some social commitments.

If you can't sleep, at least put your feet up and relax for 30 minutes or more, however is best for you. Relaxation techniques such as yoga, stretching, deep breathing and massage are all good at reducing stress and can help you get a better night's sleep.

There's nothing like chatting with others who are at just the same stage of pregnancy as you.


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[www.keralites.net] Pulled shoulder of lamb with fennel, carrot and chilli slaw

 

Fun & Info @ Keralites.net 
Fun & Info @ Keralites.net 
Fun & Info @ Keralites.net 
Fun & Info @ Keralites.net 
This dish of succulent lamb and fresh and spicy root slaw will make the perfect 
centrepiece for entertaining. 

Serve in flatbreads with a sprinkle of rocket for a relaxed weekend feast.

Fun & Info @ Keralites.net 
1 x 1.3kg lean whole shoulder of lamb
Flatbreads or pitta breads, to serve

For the spiced rub:
Salt and freshly milled black pepper
3 large garlic cloves, peeled and finely chopped
1 large red chilli, deseeded and finely chopped
3 tbsp ground coriander
Juice of 1 lemon
2 tbsp rapeseed or olive oil
½ pint red grape juice

For the fennel, carrot and chilli slaw:
1 small fennel bulb, finely sliced or shredded
2 medium carrots, peeled and grated
4 tbsp sweet chilli sauce
4 tbsp light mayonnaise
Juice of ½ lemon
2 tbsp freshly chopped flat-leaf parsley
Fun & Info @ Keralites.net 
1. Preheat the oven to 170°C/Gas mark 3. 
To prepare the spiced rub, in a small bowl mix all the ingredients together, 
except the grape juice.

2. Place the joint in a non-stick roasting tin and coat on both sides with the rub. 
Pour the grape juice around the lamb, cover with baking parchment then foil. 
Roast for four hours, turning half way during cooking.

3. Meanwhile, to prepare the fennel and chilli slaw; in a large bowl mix together the ingredients and set aside.

4. Remove the lamb from the tin and finish on a medium prepared barbecue for 10 minutes on each side (optional).

5. Place the joint on a chopping board and `pull' the cooked lamb apart by securing the joint with a fork 
and shredding the meat with another fork.

6. Serve the lamb in flatbreads or pitta breads with the coleslaw.


 
 

Fun & Info @ Keralites.net 

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[www.keralites.net] Build Trust inYourself

 

Fun & Info @ Keralites.net 
Fun & Info @ Keralites.net 
Spend some time alone every day.

Spending time alone develops the internal friendship 
that each of us needs to be truly happy.

It's a time when you ask yourself what you would like 
to change about yourself and your life.

 It's a time to explore your dreams and fantasies. 
It's also a time to listen to yourself and make plans.

If your schedule is so busy that you feel you never have 
time to yourself, then use the time when you are in the shower, 
or, during your commute to work.

Make it a priority to devote time to your internal friendship.
As this friendship builds so will the trust you have in yourself.

©Jane Powell
Fun & Info @ Keralites.net 
 

Fun & Info @ Keralites.net 

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