#Abhinay Vishal

Flying high , with the new price rise

by abhinay0088

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Abhinay Vishal, MBA 2014-16, Vinod Gupta School of Management, IIT Kharagpur

With the advancement of Summers , people which includes mostly students are making their plans to travel to different places. The people of our country seem to upgrade themselves with their travel plans. The trend which has been observed over time shows that the travelers who used the sleeper class of Indian Railways have moved toward the AC class travels. The travelers who used the AC class travels are now moving towards air travels making the Air travelling a growing sector.

The low cost carriers these days are dominating the air travel by capturing more than 60% of  market shares along with their maintained quality and  low fares. Northstar for Expedia had conducted a survey to understand this behavior , findings of which indicate  51% of the tickets being booked for low cost carrier air flights. The money factor involved in this survey was ranked second just after the safety of the travels which shows the perception of Indian customers these days.

The general thought of replacing the train travel with the faster and comfortable air travel is the main driving force behind using the low cost air travels. Also a close analysis of the trend shows the money saved in the low cost air travel offered  is being used to stay at better hotels when the customers are travelling for their vacations. SpiceJet, Indigo and GoAir are the few carriers  which are dominating the Indian customers over the last two years and helping them to fly higher.

RBI Cuts in Repo rates,CRR unchanged

by abhinay0088

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Abhinay Vishal, MBA 2014-16, Vinod Gupta School of Management, IIT Kharagpur

The recent cut in the policy rate by 25 basis point will lead to the dropped interest rate on Car and Home loans. The reduction in the Policy rate from the existing 7.75 to 7.5 will be with immediate effect. This move cheered the Indian Market and saw it rising to never before highs.  This move brought by the RBI governor Raghuram Rajan was backed up with the plan to lower the inflation. The various budget reforms to be brought required the funds to be directed to the states. This will also lower their state budget deficit helping the central government to lower the general deficit. With the lowering International Energy prices, this move will help in the direct benefit transfer of the gains and lowering of the subsidies.  There was also a memorandum signed between the central government and the Reserve Bank of India which made the implicit fact of clearing the inflation more explicit. India still lags behind in the best practices of Gross Domestic Product (GDP) and the Centrals Statistical Organization is doing a great job in elevating India’s position.

The manufacturing sector has not come out of the woods and this reduction in rates is not likely to change the situation immediately. A picture of steadily growing economy gives hope to citizens of India about a great future ahead. Further monetary actions will be based upon the data which comes up with these effects, especially on the easing of supply constraints, improved availability of key inputs such as power, land, minerals and infrastructure, continuing progress on high-quality fiscal consolidation, the pass through of past rate cuts into lending rates.

 

Scripted Code for Bihar

by abhinay0088

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

-Abhinay Vishal, MBA 2014-16, Vinod Gupta School of Management, IIT Kharagpur.

In a bid to stop the political turmoil in Bihar , Nitish Kumar (JDU) who wish to return as chief minister of Bihar, traveled to Delhi with nearly 70 leaders of his party. He  paraded with his MLAs in front of our Indian President. According to TV reports the Governor of Bihar is delaying the confidence vote till 20th Feb, 2015. Earlier the current chief minister Jitan Manji has said he will stick to his decision of not quitting from the post of CM and will address the people of Bihar on 20th February,2015.

  This points towards a scripted move from the central government to look forward a ‘horse-trading’ event. The delay by the governor in the passing of no confidence motion is highly indicative to the fact of a licensed horse trading. Nitish Kumar has gathered huge support which is visible with the the MLA’s of Congress,RJD and Samajwadi party also accompanying him to New Delhi in the Patna New Delhi Indigo flight.The fact that five members of the Congress party are in the support of JDU, has already given hope about the formation of  government which breaks previous bars.
At this point the Central Party BJP will try to utilize all its options to form a government in the coming Bihar state elections. BJP is also analyzing the debacle in Delhi Polls which will give rise to  a new strategy to be followed in Bihar.
Reference :
 http://www.thehindu.com/news/national/other-states/governor-following-script-from-delhi-says-nitish/article6886046.ece