Business Views & Reviews

Freedom 251: The World's Cheapest Smartphone Is Here!

noreply@blogger.com (Businessviewsreviews) — Wed, 17 Feb 2016 13:08:00 +0000

Freedom 251, the world's cheapest Smartphone finally arrives, courtesy Ringing Bells Pvt. Ltd. one of the fastest growing smartphone companies in India. The Company unveiled its much awaited Smartphone today.

This could be a real game changer as far as the Smartphone segment is concerned. Priced at just Rs.251, it's a real deal, indeed.

In fact, in terms of features too, as the company boasts, the phone comes loaded with a slew of them.

Freedom to Flaunt

All your favourite Pictures, videos and games are rendered vivid and larger than life on the 4 inch (10.2 cms) qHD IPS display.

Freedom to Capture

With 3.2MP AF Rear Camera & .3MP Front camera capture best moments of your life. Freedom 251 with its inbuilt touchless technology is Ideal for perfect Selfie. For Selfie lovers life just got a little easier.

Freedom to Explore

Freedom 251 comes with 1.3 GHz Quadcore Processor capable of fast and responsive performance. 1GB RAM and 8GB internal memory, all the space you need. SD card support (expandable up to 32GB)

Freedom to Talk

With its 1450 mAh battery, Freedom 251 gives you more time to talk, text, Play and watch videos without needing to worry about running out of power.

The booking for the phone starts from February 18, 2016 from 6 AM onwards, according to the official website of the company.

HCL Tech to acquire external IT operation of Volvo

noreply@blogger.com (Businessviewsreviews) — Tue, 16 Feb 2016 16:14:00 +0000

With the competition heating up in the global IT space, Indian IT firms are using acquisitions to fuel their growth. Given, HCL Technologies’, India’s fourth largest software services provider, move to acquire external IT business of Swedish auto major Volvo comes as a shot in the arm for it. With this engagement, HCL will become the largest IT services provider of Indian origin in the Nordics, says the home-grown IT major.

Image courtesy: thebluediamondgallery.com

HCL Technologies, India’s fourth largest software services provider, has entered into a final agreement with Sweden’s Volvo Group to acquire latter’s external IT operation and the operation of its IT infrastructure in an all-cash deal valued at $138mn or about Rs.895 crore. The Volvo Group is one of the world’s leading manufacturers of trucks, buses, construction equipment and marine and industrial engines.

Volvo IT is part of Volvo Group delivering IT services to the Volvo Group as well as non-Volvo Group customers in Europe. Volvo IT has been engaged since 1970 as an internal provider to Volvo cars and Volvo trucks and since 1999 to external customers in the business that is being acquired, HCL Tech said in a communication, on Feb.16, 2016, to the BSE. About 2500 highly skilled people are engaged in serving both the internal IT needs and the external customers. The Revenue pertaining to the external IT business being acquired has been SEK 1,537 M in FY13, SEK 1,558 M in FY14 and SEK 1,687 M in FY15 (FY ending December).

The transaction is expected to be completed by the end of March 2016, following the fulfillment of certain conditions, says the official website of Volvo. The move is said to increase HCL Tech’s presence in the European markets, according to Nikkei Asia Review.

According to HCL Tech, this transaction enables the Company to create a market leading position in the Nordics and France, gives it a differentiated offering in Mainframe services and provides it with significant domain capabilities to serve the Company's global automotive and manufacturing customers.

As a part of the deal, HCL Tech will add 40 new customers from the Nordics and France to its portfolio, further enhancing its market leading position in these regions. Approximately 2,500 highly skilled people working for the Volvo Group will transfer to HCL across 11 countries. The deal is one of the largest IT deals signed by any Indian IT company, and a first in the industry to use principles of Vested Sourcing as the basis of the relationship for an IT outsourcing engagement of this size and magnitude. According to the agreement, which follows a Letter Of Intent to this effect announced by Volvo Group in October 2015, HCL will use its 21st Century Enterprise Framework to deliver on a technology transformation roadmap for optimising Volvo Group’s infrastructure and application operations; making it ready for the rapid advancements in business enabling technologies such as cloud, automation, business intelligence and big data.

HCL will deliver on a technology transformation roadmap that spans over 3,500 applications, 20 +data centres, over 11,000 servers, 12 PB of storage, 20,000+ MIPS of mainframe capacity and over 15,000 network devices. As part of this roadmap, HCL will also provide over 65,000 Volvo end users with access to productivity and user enablement solutions, such as Microsoft Office 365.

The relationship is significant and enables HCL to:

1. Create a market leading mainframe and iSeries capability; while Volvo is already delivering excellent services to IT customers in the Nordics based on these capabilities, HCL will now make further investments in these offerings and take them to its global client base.

2. Create an Automotive Centre of Excellence in Gothenburg based on the domain expertise of the Volvo team, to serve HCL’s global automotive and manufacturing customers. Volvo IT customers will now have the advantage of access to a broad range of differentiated global capabilities, tools and processes that integrate with technology environments at a global level. At the same time, they will experience the benefits of HCL’s unique Employees First culture and its philosophy of Relationship Beyond the Contract.

“Combining the strengths of HCL with those of the transferred parts of Volvo IT will result in an organisation with formidable capabilities and an intimate understanding of Volvo Group needs and opportunities. This, and the cultural fit between our two organisations, is the foundation for a partnership that will provide long term and strategic benefits for the Volvo Group,” said Olle Högblom, CIO of the Volvo Group and President of Volvo IT. “I am convinced that HCL will prove to be an outstanding partner also for the other customers of Volvo IT and that our former employees of Volvo now joining HCL will find themselves becoming an important part of a leading global IT services provider, with a very exciting and modern business philosophy.” “We are excited to drive business transformation through IT for one of the world’s leading companies,” observed Anant Gupta, President & CEO, HCL Technologies. “We welcome over 40 new Volvo IT customers to the HCL client base. This addition enables HCL to achieve an even stronger presence in the Nordics and the wider European region, and accelerates our journey in these markets. We are also pleased to have significantly enhanced our diverse workforce, with highly skilled industry professionals joining us from Volvo’s IT business. The Volvo Group employees and consultants will add great value for our customers with the skills and expertise that they bring. We are delighted to welcome them to our team. The deal perfectly embodies HCL’s ongoing mission to develop its business with an innovation-led mind set.”

With this engagement, HCL will become the largest IT services provider of Indian origin in the Nordics. It will build on this exceptional position and accelerate through cutting edge initiatives, such as the Centre of Excellence in Gothenburg, to deepen its relationships and further integrate with clients, helping them to achieve their IT transformation ambitions and vision in the region.

Source: Volvogroup.com; HCL Technologies; BSE

Global oil demand to ease back in 2016: International Energy Agency

noreply@blogger.com (Businessviewsreviews) — Tue, 16 Feb 2016 14:31:00 +0000

Image courtesy: pixabay.com

According to the International Energy Agency, global oil demand is expected to ease back considerably in 2016. “Having peaked, at a five-year high of 1.6 million barrels per day (mb/d) in 2015, global oil demand growth is forecast to ease back considerably in 2016, to 1.2 mb/d, pulled down by notable slowdowns in Europe, China and the United States,” the newly released IEA Oil Market Report (OMR) for February says. As per the report, global oil supply dropped 0.2 mb/d to 96.5 mb/d in January, as higher OPEC output only partly offset lower non-OPEC production. Non-OPEC supplies slipped 0.5 mb/d from a month earlier to stand close to levels of a year ago. For 2016 as a whole, the report says, non-OPEC output is expected to decline by 0.6 mb/d, to 57.1 mb/d. OPEC crude oil output rose by 280 000 barrels per day in January to 32.63 mb/d as Saudi Arabia, Iraq and a sanctions-free Iran all turned up the taps. Supplies from the group during January stood at nearly 1.7 mb/d higher year-on-year, says the IEA.

Argentinian Peso leads the list of worst performing currencies in 2015

noreply@blogger.com (Businessviewsreviews) — Tue, 16 Feb 2016 14:25:00 +0000

The Argentinian peso, which lost 33.64% against the dollar, became the world's worst performing major currency in 2015, according to a report on the CNN.com. The country's new government had opted for free float in December with the aim of encouraging more foreign investment in the country affected by years of economic mismanagement, it said.

Image courtesy: pixabay.com

Peso is followed by Brazil's real, which plunged 33.59% against the dollar during the same year. Among the other three leading losers among global currencies include the South African rand that dropped 25%, triggered by a combination of factors - from a slump in commodity prices hit many of South Africa's biggest companies, besides a widening current account deficit, rising unemployment, at 25%, and high inflation, which is expected to hit 5.6% in 2016, the Turkish lira, losing 21.4% , and the Russian ruble, which fell 17% vis-à-vis the US dollar as the country’s economy was hurt by dramatic collapse in international crude oil prices, in particular.

Rivals Beware! Xiaomi Bets Big on India

noreply@blogger.com (Businessviewsreviews) — Wed, 05 Aug 2015 13:30:00 +0000

Authored by Amit Singh for The Global ANALYST

(Errata: Xiaomi is incorrectly mentioned as Xiomi at some places in this article. The error is regretted.)

CCL Products - Brewing Success!

noreply@blogger.com (Businessviewsreviews) — Wed, 05 Aug 2015 12:44:00 +0000

Authored by Amit Singh for The Global ANALYST

Interview with Rajiv Chilaka, Founder & CEO, Green Gold Animation

noreply@blogger.com (Businessviewsreviews) — Wed, 05 Aug 2015 12:42:00 +0000

Jaipur Joins the 'Metro' Club, launches Metro Rail

noreply@blogger.com (Businessviewsreviews) — Sun, 12 Jul 2015 09:39:00 +0000

Authored by Amit Singh for The Global ANALYST July'15 issue

(Note - Source of The World's top 10 Metro Rail Systems is: www.railway-technology.com / Kable Intelligence Limited)

K'a'sh King: Emami Gets a big boost from Kesh King Acquisition

noreply@blogger.com (Businessviewsreviews) — Sun, 05 Jul 2015 12:14:00 +0000

Authored by Amit Singh for The Global ANALYST July'15 issue

Green Gold Animation - India's Disney!

noreply@blogger.com (Businessviewsreviews) — Sun, 05 Jul 2015 12:11:00 +0000

Authored by Amit Singh for The Global ANALYST July'15 issue

Nightingales - A Home Healthcare Pioneer

noreply@blogger.com (Businessviewsreviews) — Sun, 05 Jul 2015 12:07:00 +0000

Authored by Amit Singh for The Global ANALYST July'15 issue

noreply@blogger.com (Businessviewsreviews) — Tue, 09 Jun 2015 15:43:00 +0000

Corporate World

Prathibha Biotech

Revolutionizing Agri-biotech in India

Agri-biotech is not something one comes across quite often. Though the concept might be making waves in the west, it is yet to find many takers in India. However, one company that promises to change this perception is Prathibha Biotech. The Hyderabad-based company is at the forefront of taking biotech to the field of agriculture and transform lives of farmers who have had to depend on expensive and not-so-environment friendly agri-chemicals.

Perhaps no other word excites as much as biotech when one thinks of pharmaceuticals. Biotech has gained unprecedented attention across the globe – from America to Europe to Asia. And India is no different. However, while the very mention of the term conjures up images of scientists developing promising products to cure even chronic human ailments, the agri-biotech is yet to draw similar attention. But one company that is working fiercely and determinedly to change this perception is Hyderabad-based Prathibha Biotech. This company, led by the visionary Rajasekhar Reddy, is spearheading a revolution to take agri-biotech to the farmers across the country and help transform Indian agriculture.

Agricultural biotechnology, according to the US Department of Agriculture, comprises of a range of tools, including traditional breeding techniques that alter living organisms, or parts of organisms, to make or modify products; improve plants or animals; or develop microorganisms for specific agricultural uses. Agri-biotech offers a simpler and efficient option for weed control while also helping reduce production costs to a world that is finding it hard to keep pace with rising demand for food.

Celebrating a decade of a glorious journey

Prathibha Biotech, which began its journey a decade ago, in 2005, is celebrating 10 years of its successful existence this year. Indeed, the company has since then come a long way, given that it was not easy to enter this field at a time when agri-biotech was yet to find many takers in India. However, thanks to the vision and dynamic leadership of its founder, which has helped Prathibha Biotech establish itself as one of the leading names in the agri-biotech in India, today, and create greater awareness among the farmers community about the benefits of agri-biotech products. The company’s promoters bring with them vast experience in the manufacture of Biotechnology prducts, Vermiculture-, Tissue-Culture and Bio-Organic processes.

Prathibha Biotech has, over the years, developed a vast portfolio of agri-biotech products including bio pesticides, bio fungicide, granulated bio fertilizers, and bio stimulant amongst others. According to a report by the India Brand Equity Foundation, the Indian biotechnology sector is set to cross the milestone of $100bn by 2025 from the current $5-7bn, growing at a rate of 30 per cent. Biopharma with a share of about 62 per cent, accounts for the lion’s share in the total revenue of the sector, followed by bioservices (18 per cent), agri-biotech (15 per cent), bioindustry (four per cent), and bioinformatics contributing (one per cent).

Making rapid strides

The company has made rapid strides during the last 10 years, in terms of both the reach and its product portfolio. It started out with the aim of providing eco-friendly and ecologically beneficial products to improve and assist the farming community to protect their crops and provide rich yielding harvests. Thanks to its unstinted efforts, Prathibha Biotech has, over the years, carved out a place for itself among India’s fast-growing and highly-competitive agri-biotech space. The company’s focus on providing best quality and affordable products has helped it reach out to a greater number of its targeted markets well.

Besides intensifying its R&D efforts, the company has also worked hard on making sure that it reaches out to a greater number of farmers. Towards this objective, it decided to focus on enhancing its reach among its target customers in the southern and western markets first, before going for a pan India presence. In the past 10 years since coming into existence, Prathibha Biotech has created a vast network of over 500 dealers spread across Telangana, Andhra Pradesh, Karnataka, Tamil Nadu, Maharashtra and Gujarat. According to the company, dealers form the critical link in connecting with farmers, and hence it takes all the steps to make sure that it extends all possible support to its dealers and other channel partners 24X7 and that it treats its dealers with utmost respect. Besides, it also ensures that its marketing team remains in constant touch with the dealer community regarding the developments in the biotechnology sector and our product lines all the time. The company also has well-trained Field Officers to educate the farmer community on the usage of biotechnology as well as to demonstrate its products.

The company also pays utmost attention to maintaining global quality standards and best manufacturing practices. Prathibha Biotech is an ISO 9001:2000 Certified Company and all the products are manufactured with good quality and are subjected to strict quality control measures. The company’s research laboratory is equipped with modern facilities to research and invent new products. The company’s manufacturing facility is at Chowtuppal, Hyderabad.

Building a greener future in agriculture

As the company celebrates 10 years of successfully serving the farmers community is passionately working hard towards a bigger goal, that is, of building a greener future in agriculture. The agri-biotech pioneer sets out with the mission to reduce the use of several harmful chemical fertilizers and pesticides in agriculture. Farmers have, since long, been using the chemicals-based pesticides and antibiotics for protecting against harmful insects, pests, etc., however, their persistent use in crops lead to deteriorative effect on human lives, who consume the end-produce. With its innovative, agri-biotech products, it aims to make sure that the food – from farm to fridge - is safe and healthy. Welcome to a world of healthy living.

What is Agri-Biotech?

Biotechnology products are made up of micro-organisms such as bacteria, viruses, fungi, insects and herbs. The main aim is to reduce the use of chemical fertilizers and pesticides, and to preserve the nature. Biotechnology is used to raise and stabilize yields, to improve resistance to pests and diseases, and to enhance the nutritional content of foods with higher vitamin and protein content. It improves the quality of the yield, and makes the product more affordable in the world market. Biotechnology products also increase the fertility of the soil, and reduce pollution in the environment, soil, and the produce there by improving human lives.

Market size

The Indian biotech industry holds about 2 per cent share of the global biotech industry.

The Indian biotechnology sector is expected to grow from the current US$ 5-7 billion to US$ 100 billion by 2025 by doubling the growth rate of this sector from 15 percent to 30 percent, according to the Association of Biotechnology Led Enterprises (ABLE). The high demand for different biotech products has also opened up scope for the foreign companies to set up bases and reap great profits. The biotechnology industry in India, comprising about 400 companies, has grown three-fold in the last five years to reach US$ 4 billion in FY 13. Growing at an average rate of about 20 per cent, India's biotech industry comprising biopharmaceuticals, bioservices, bioagriculture, bioindustry and bioinformatics could reach the US$7bn mark by FY'15. Biopharma is the largest sector contributing about 62 per cent of the total revenue followed by bioservices (18 per cent), bioagri (15 per cent), bioindustry (four per cent), and bioinformatics contributing (one per cent).

Source: Prathibha Biotech; IBEF

noreply@blogger.com (Businessviewsreviews) — Wed, 31 Dec 2014 09:31:00 +0000

BusinessViewReviews wishes all its readers a VERY HAPPY & PROSPEROUS NEW YEAR 2015

(Source: happynewyearcardwishes.com; happynewyear2015pictures.net)

The Global ANALYST October 2014 issue

noreply@blogger.com (Businessviewsreviews) — Wed, 08 Oct 2014 07:27:00 +0000

The Global ANALYST October 2014 issue is out. The issue brings to you a number of exciting stories - from 'Make in India' to 'Rural Infrastructure', Forensic Auditing in Banking to Women in Business, and lots many other features, besides it also carries an insightful interaction with Patu Keswani, the Chairman and MD of The Lemon Tree Hotel Company, India's third largest hotel chain.

Grab your copy today!

The Global ANALYST - September 2014 - Cover Story

noreply@blogger.com (Businessviewsreviews) — Fri, 12 Sep 2014 06:13:00 +0000

The Global ANALYST - Subscription Form

noreply@blogger.com (Businessviewsreviews) — Fri, 12 Sep 2014 06:10:00 +0000

The Global ANALYST - September 2014 Contents

noreply@blogger.com (Businessviewsreviews) — Fri, 12 Sep 2014 06:09:00 +0000

Startup Xpress

noreply@blogger.com (Businessviewsreviews) — Wed, 10 Sep 2014 11:41:00 +0000

Startup Xpress

Source: The Global ANALYST, Sept 2014

Advertorial

noreply@blogger.com (Businessviewsreviews) — Wed, 10 Sep 2014 11:38:00 +0000

Source: The Global ANALYST, Sept.2014

Indian Engineering Congress 2014

noreply@blogger.com (Businessviewsreviews) — Wed, 10 Sep 2014 11:36:00 +0000

Indian Engineering Congress 2014

Dividends announced by select publicly listed companies in India during 2014 so far

noreply@blogger.com (Businessviewsreviews) — Wed, 10 Sep 2014 11:28:00 +0000

Dividends announced by publicly listed companies in India during 2014 so far...

Source: The Global ANALYST, Sept. 2014 issue

Bonus Issues in 2014

noreply@blogger.com (Businessviewsreviews) — Wed, 10 Sep 2014 11:20:00 +0000

Select Publicly Listed Companies in India that announced bonus issues in 2014.

Source: The Global ANALYST, Sept.2014 issue

The Global ANALYST - A highly acclaimed business & finance magazine

noreply@blogger.com (Businessviewsreviews) — Wed, 10 Sep 2014 10:30:00 +0000

The Global ANALYST is the flagship publication of Media Five Publications (P) Ltd. The magazine offers cutting-edge insights into the issues affecting economies and businesses across the globe. The articles in the magazine cover a wide gamut of issues across areas such as Economy, Finance, Marketing, Strategy, HR, Investment, Banking, Emerging Careers, Industries, etc. Besides, it also contains interviews with Decision-Makers, Regulators, CEOs/CMD of Banks and Business Enterprises, Global Thought Leaders amongst others.

So, don't wait, grab a copy of the magazine today itself and stay ahead of the competition!

Customer Service: IDBI Bank is a Shining Example

noreply@blogger.com (Businessviewsreviews) — Sat, 31 Mar 2012 08:56:00 +0000

IDBI Bank stands out amongst its banking sector peers when it comes to customer care.

While IDBI Bank would not compare favorably with some of the front line banks like PNB and HDFC Bank besides the big brothers SBI and ICICI Bank in terms of (assets) size and reach, it can definitely give them a run for their money when it comes to customer service, a critical though mostly ignored aspect where most banks falter to deliver. In fact, IDBI Bank is too good for other banks to come even close to it when it comes to customer care.

To cite one example, just a couple of weeks ago, one of my friends told me that he was pleasantly surprised when he received his cheque book even before he could apply for the one! His earlier cheque book had almost exhausted, however, he was too lazy to apply in time for a new one. But the bank was not! Its robust customer care infrastructure knew when to send the cheque book. My friend had not expected his bank (IDBI) to be so caring! Surprisingly, not many people know that IDBI Bank is a state-owned (and not a private sector) bank!

And it is just one example. Even the branch banking experience at an IDBI Bank branch would put its competitors to shame. The ambience at IDBI Bank’s branches is so good that a customer may wonder whether he or she is visiting a top quality car show room! But the biggest surprise is the quality of staff. The staff is courteous and caring. They are also very forthcoming and are always ready to assist you. They also lend an ear to your suggestions as well as grievances with equal ease. They also have the patience to listen to their bank’s customer’s small chit-chats. Though all this may sound unbelievable, it is true. Indeed, the top quality customer service of IDBI Bank comes as a fresh breath of air to customers (at least for small customers like me) tired of facing apathy of staff at majority of the home-grown banks, including the fast-growing private sector banks.

It’s a remarkable turnaround for the yesteryear’s DFI (Development Financial Institution) behemoth which had been trying hard to find its footing in India’s banking landscape that underwent a sea change post-1991. While the sector ushered into universal banking, IDBI found itself sorely lagging behind peers like ICICI and HDFC, which leapt ahead by morphing themselves into a sort of financial supermarkets, riding high on new and innovative models such as bankassurance and universal banking, in tune with the changing global banking environment.

The transformation that IDBI has undergone in the last few years is, however, now beginning to show the results. As its 2010 financial results showed, it pays to be customer-friendly. According to an analysis by The Analyst magazine (October 2010 issue), IDBI Bank outperformed its banking sector peers (in the state-owned banks category), by notching up highest Business Per Employee and stood second in terms of Profit Per Employee (after Corporation Bank), during FY 2009-10.

And if it continues its good efforts in the hitherto ignored areas like customer care and product innovation (even its passbook looks sleek and is elegantly designed), it would be tougher for rivals to stop its march to the top of the banking league table.

Surely, IDBI Bank stands out as a shining example in an industry which is notorious for poor customer service. Maybe they can take a leaf out of the retailing industry’s book - the best industry when it comes to customer care.

Good work, IDBI Bank.

On the lighter vein, I would like to put the disclaimer that it’s neither a sponsored ad nor an advertorial. It’s the personal experience of the author. Hence experiences of other customers might vary.

Amit

(Images source: IDBI Bank)

Interview of the Week: Surjit Mohapatra, Sr. Economist

noreply@blogger.com (Businessviewsreviews) — Sun, 21 Aug 2011 08:28:00 +0000

It gives us immense pleasure in announcing another new feature on Businessviewsreviews.

In an exclusive interview with Businessviewsreviews, Surjit Mohapatra, Sr. Economist, discusses about the causes that led to the downgrading of the US credit rating by rating agency S&P, and its possible consequences.

What triggered the US debt rating downgrade by S&P?

USA is the largest economy in the world with $14.56 trillion in 2010. The US Gross National Debt reached $14.58 trillion by August 2011. This is 100% of its GDP of 2010. The gross national debt has increased from 57% of GDP in 2000 to 100% of GDP in 2011 and does not seem to be decreasing in near future.

USA economy is still under recovery stage from the last economic slowdown. To improve the situation USA economy needs more government expenditure which will raise its total debt. USA is having a system of debt ceiling which was set after World War I to limit the government expenditure. Though the ceiling has increased several times, USA parliament increased the debt ceiling by $ 2.1 trillion on August 1, 2011 to raise it to $ 16.4 trillion approximately to avoid sovereign debt default. The parliament has cut the federal deficit by as much as $2.5 trillion over a decade.

How will it impact the US Economy?

S&P, which has given the USA a top AAA ranking since 1941 has cut its grade to AA+ in 2011 after USA government striking the deal. The USA government may have to pay higher interest rate for its treasury bonds or public debt which will aggravate the debt situation. Mortgage rate will rise following higher Treasury bond rate which will impact real estate market.

Do you think that the US will resort to third quantitative easing measures to combat the ongoing fiscal deficit crisis which has let it to lose its pristine triple-A rating?

With immediate effect, reduction in USA expenditure may further slowdown the USA economy. However, for fiscal 2012, there will be only $21 billion cut from expected spending of up to $3.7 trillion which is very small amount in a $15 trillion economy. Even the $2.5 trillion deficit cut in one decade is negligible for the US economy. In the next 10 years, if USA government does not raise revenue and reduce expenditure, the total debt may increase to 150 % of GDP which will be a big problem for the economy. The debt is accelerating in the present situation while the economy is moving slow.

What impact do you foresee the unfolding US crisis on the rest of the global economy?

Looking at the exposure to USA Treasury bond, China holds largest USA bond worth $ 1.2 trillion followed by Japan with $ 0.9 trillion. In case of debt default by USA, these countries will have higher impact. Cutting of bond rating from AAA to AA+ will increase interest rate which will reduce the price of old bond. That will impact negatively on interest income of the above countries. On the other hand, government expenditure cut will directly impact on exporting countries. China is the largest exporter for USA, any cut in public expenditure will directly impact its GDP growth. This does affect Indian economy as well. However, the impact may not be so deep. If the crisis persists, there may be problem in world currency market. However, with the debt crisis in European countries, USA Treasury bond is still an attractive option for investment.

What are the options before the US Government to tide over the present crisis?

Being the largest economy and dollar being the major world reserve currency, USA is left with very few options in dealing with this situation. It will difficult to reduce its import significantly at the same time it has to maintain its dollar supremacy. The main option with USA right now is to reduce its expenditure and increase tax revenue. USA government can increase revenue in the future if it opts to allow tax cuts (enacted under George W. Bush) to expire as scheduled in 2013.

What lessons it offers for India?

India’s $229 billion external debt (22% of GDP), recorded at the end of March 2009, increased to US $297.5 billion by the end of December 2010, and went further up to US $305.9 billion (17.3 % of GDP) at end of March 2011, which is a sharp increase of 2.8% in three months. Total debt by March 2011 is approximately US $905.9, which is a sharp increase of 20.6% over the same period of 2010 (US $751.1). The gross public debt to GDP ratio is about 66.2% in 2011 which is highest in Asia region.

Looking at the debt structure, internal debt is higher in India than external debt and most part of the internal debt is held by banks. Hence India government does not have much problem in this area. However, taking higher risk in public debt may attract downgrading of its bonds by rating agencies. Being a developing country, where economy is growing at 8%+ per annum, India should not take the risk which will have significant impact on its economic growth.