E@zyVG’s Vichar::World Connected

The Indian rupee (Hindi: रुपया) is the currency of India. The issuance of the currency is controlled by the Reserve Bank of India. The most commonly used symbols for the rupee are Rs, ₨ and रू. The ISO 4217 code for the Indian rupee is INR. The modern rupee is subdivided into 100 paise (singular paisa). India has been one of the earliest issuers of coins in the world (circa 6th Century BC). Among the earliest issues of paper rupees were those by the Bank of Hindustan (1770-1832), the General Bank of Bengal and Bihar (1773-75, established by Warren Hastings), the Bengal Bank (1784-91), amongst others.

The current series, which began in 1996, is called the Mahatma Gandhi series. Currency notes are printed at the Currency Note Press, Nashik, Bank Note Press, Dewas, Bharatiya Note Mudra Nigam (P) Limited presses at Salboni and Mysore and at the Watermark Paper Manufacturing Mill, Hoshangabad.

These notes are truly work of art:

Modern Indian Rupee Notes

Each banknote has its amount written in 17 languages (English & Hindi on the front, and 15 others on the back) illustrating the diversity of the country

Secutiry Features of INR:

• Watermark — White side panel of notes has Mahatma Gandhi watermark.
• Security thread — All notes have a silver security band with inscriptions visible when held against light.
• Latent image — Higher denominational notes display note’s denominational value in numerals when held horizontally at eye level.
• Microlettering — Numeral denominational value is visible under magnifying glass between security thread and watermark.
• Fluorescence — Number panels glow under ultra-violet light.
• Optically variable ink — Notes of Rs. 500 and Rs. 1000 have their numerals printed in optically variable ink. Number appears green when note is held flat but changes to blue when viewed at angle.
• Back-to-back registration — Floral design printed on front and back of note coincides when viewed against light.

Here are pictures of older Rupee issued by respective colonial rulers:

British Indian Rupee (1917)

Portuguese Indian Rupee (1924)

French Indian Rupee (1938)

BTW, did you know that the Indian rupee is also accepted in towns of Nepalese side of Nepal-India border and some Indian shops in the United Kingdom.

As of today, the economy of India, when measured in USD exchange-rate terms, is the twelfth largest in the world, with a GDP of US $1.25 trillion (2008). It is the third largest in terms of purchasing power parity. India is the second fastest growing major economy in the world, with a GDP growth rate of 9.4% for the fiscal year 2006–2007. However, India’s huge population results in a per capita income of $4,542 at PPP and $1,089 at nominal (revised 2007 estimate).

In the period 2000-2007, the Rupee stopped declining and stabilized ranging between 1 USD = INR 44-48. However in the mid-2007, the rupee has started gaining strength and for the first time in more than a decade broke the 1 USD = INR 40 barrier. As of today for 1USD you get around INR 38.5.

Tip, especailly for those who will in future deal with INR (business or travel): As is standard in Indian English, large values of Indian rupees are counted in terms of thousands, lakh (100 thousand = 10⁵ rupees, in digits 1,00,000), crore (100 lakhs = 10⁷ rupees, in digits 1,00,00,000) and arawb (100 crore = 10⁹ rupees, in digits 1,00,00,00,000). The use of million or billion, as is standard in American or British English, is far less common.

For a Indian audience/readership, the correct grouping would be:
INR 2,31,51,423.10 ( Two Crore Thirty-One Lakh Fifty-One Thousand Four Hundred Twenty-Three rupees and ten paisa).
For US/Europe and most of the world audience/readership, the correct grouping would be:
INR 23,151,423.10 ( Twenty-Three Million, One-Hundred-Fifty-One Thousand, Four Hundred Fifty-Three rupees and ten paisa).

In 2007, a Currency bill tracking project (TrackGandhi) was started to track the spread and usage of Rupee banknotes. There you go with a small introduction to Indian Rupee. Also, it is my B’Day today ….

Related posts on my blog:

• India’s GDP Touches $1 Trillion Mark
• India and its Role in Future World Economy

“We have to find a way to make the aspects of capitalism that serve wealthier people serve poorer people as well”. “This kind of contribution is even more powerful than giving cash or offering employees time off to volunteer. It is a focused use of what your company does best”

Bill Gates, the founder of Microsoft, last night called for a new version of global capitalism that delivered benefits to the poor as well as the rich. Speaking at the World Economic Forum in Davos, the software entrepreneur and one of the world’s richest men said there was a need for “a creative capitalism” that would use market forces to address the needs of the world’s poorest countries.

“We have to find a way to make the aspects of capitalism that serve wealthier people serve poorer people as well,” Gates said in a keynote address. “The world is getting better in many crucial ways,” Gates said. “I’m an optimist but I’m an impatient optimist. Things are not getting better fast enough and they are not getting better for everyone.”

The speech to top businessmen and politicians at the World Economic Forum reflected Gates’s growing focus on philanthropy. Gates built Microsoft into a formidable and sometimes controversial money machine, which has been accused in the past of abusing its market position.

He will retire from full-time employment at the Seattle-based group at the end of June to concentrate on his charitable organisation, the Bill & Melinda Gates Foundation. Gates insisted that this was not dumping the basic tenets of capitalism but argued market forces must be better used to address the needs of those left behind by advances in technology and healthcare.

Last night’s speech coincided with an announcement by Microsoft and the computer company Dell that they were joining the Red campaign - a scheme under which multinational companies give a slice of the proceeds to the Global Fund for fighting HIV/Aids. Dell and Microsoft will give between $50 and $80 for Red-branded computers installed with Windows software, which I personally think is a complete rip-off, as these RED cost $300 more over the regular XPS Ones. You do get the extra as Office Home or Student 2007 and Vista Ultimate. It makes much more sense to save those $300 and just give some cash directly (in some countries this will also help to bring down your taxes). BTW, this is exactly where open source and free software will fit nicely.

Check out the following article from the Wallstreet Journal: Bill Gates Issues Call For Kinder Capitalism

It all sounds very right and correct … but only when it is done for the only purpose, that is to alleviate poverty and cause of getting rid of diseases. Don’t get me wrong, Gates indeed has done, and continues to help society through his charity and others, unlike “WallMart family” members for instance. But don’t we all know that there is always a sense of business. You ask yourself how Capitalism, with capital C, can be kind”er”.

Indian companies are becoming increasingly aggressive acquirers abroad as they seek diversification and growth.

Tata group which is responsible for India’s biggest foreign takeover, by acquiring the British steel company Corus through his Tata Steel business for £6.7bn earlier this year, is now reckoning for another big acquisition, this time for its automotive division.

The British paper, Birmingham Post, reiterates the same estimate we’ve heard before, that Tata will be doling out around £1 billion, or $2 billion USD, for the right to own these two storied brands, and perhaps is confirmed the buyout of Jaguar and Land Rover. Ford bought Jaguar for £1.6bn in 1989 and it is believed that have invested about $10bn in Jaguar since then, and bought the Land Rover from BMW for £1.7bn in 2000. According to other numerous published reports, Ford is expected to announce within days, that India’s Tata Motors will be the preferred bidder for the Jaguar and Land Rover brands.

Folks might have snickered and sneered before, but India’s Tata appears to be in the catbird seat for the chance to gobble up Jaguar and Land Rover. After the other Indian bidder, Mahindra & Mahindra, dropped out because of a questions over the Ford parts supply, the two bidders left are Tata and One Equity Partners (a buyout company). Tata is being advised by Fiat in the bid, with which Tata Motors has a joint venture to make premium cars for the Italian firm, and One Equity is the private investment firm whose bid is led by former Ford exec Jac Nasser.

The British trade union Unite, which represents workers from both brands, met with the bidders and — while it still opposes the sale entirely — declared that “based on serving the best interests of the union members at Jaguar-Land Rover, the stewards agreed that Tata best fits these criteria.” Tata has also stated that the three British factories used to produce Jaguar and Land Rover vehicles will be retained as well as is committed to the two brands as a long-term investment and endorsed their current management. Also, Fiat’s ready to help its partner in the form of technical support should Tata purchase Ford’s British nameplates.

Tata Elegante Concept (hmm … work that concept)

2009 Jaguar XF (nice, really nice)

Land Rover LRX Concept (one word - Wow)

People are asking whether Tata deal could adversely impact the value of the luxury brand, as it is currently in process of launching its ‘People’s Car’ with a price tag of about $2,500, which is about one-twentieth of the cost for least expensive Jaguar model. Personally, I don’t think so. Indian companies have managed big brands before, have worked with renowned international brands and partners, and have enough experience. After all, even Ford was not able to up the ante of a prestigious brand such as Jaguar, instead from what I have seen and believe, it nearly destroyed the brand. I am quite sure that Tata can handle a car that costs $120,000 side by side with that costing only $2,500, when it comes to production, management and quality control. The combination of luxurious, specialised products and cheap, commodified ones may seem like an unlikely business model, but the Tata Group is full of similar contradictions, as are other Indian companies.

“A century earlier, when Tata founder Jamsetji Tata suggested making steel for the colonial railway system, a British administrator dismissed the idea with barely concealed contempt. Earlier this year, Tata paid almost $14 billion to buy Corus, British Steel’s successor. The moral of that story is not lost on India’s corporate captains. They say that Western companies had better get used to the idea of Indians taking over.” - Time Magazine

So, will Tata Jaguar and Land Rover be better than Ford Jaguar? Will Indian company be able to handle such globally renowned, acclaimed and respected brands, better than American counterparts? I am quite sure that they will. As for the country, it is good to see India’s sons doing major deals around the world, thus putting India as a major international player in a lot of markets and industries, and reaping significant technology transfer benefits from the takeovers.

Just don’t panic …. it is all part of what we all now know as globalisation.

UPDATE 26th March 2008: Ford has issued a press release confirming that it has sold both Jaguar and Land Rover to Tata Motors for an approximate price of $2.3 billion.

Economist.com recently posted about the current state of piracy around the world according to the Business Software Alliance, which is a trade body. As you can imagine, it’s really not too good. No information was given about how they got the numbers that they did, but the calculation that was reported was based upon the number of computers in each country, and the dollar amount of pirated software per computer.

In terms of dollar amount and total losses, the United States tops that list at $7.2 billion, and China was next with $5.4 billion. But because this report focused on the amount per computer, The United States didn’t make the list. Topping the list was Azerbaijan with over $250 of pirated software per computer, and following behind was Iceland with over $200 of pirated software per computer. In total, the cost of piracy in Iceland was $32 million, however that’s divided among few computers in comparison to the $7.2 billion divided among all computers in the United States.

The report stated that piracy cost the software industry $39.6 billion dollars, as in lost revenue, however those that choose to pirate probably wouldn’t ever purchase the software in the first place if pirating wasn’t an option. Can it really be considered lost revenue then?

I know one thing, that when it comes to using pirated software on a daily basis, using Linux and free/open source applications puts me on a much ……. I even tend to use them on my Windows installation (though of course I do have some ****** software).

The Indian domestic currency is gaining strength and India’s Gross Domestic Product (GDP), for the first time, has crossed the $1 trillion mark. With this quantum jump, India has joined the elite club of nations as 12th country that achieved the milestone.

According to the report, Indian GDP, at the current price level, is Rs 41 trillion. On April 26, for the first time the Indian rupees went below 41 against the US dollar and the Country’s GDP touched $1 trillion mark.

The Swiss investment firm Credit Suisse has released a note that India has joined the club of nations such as US, Japan and China with its economy touching the 1 trillion mark. According to the note, stock markets in eight out of 10 countries had risen in that year when its economy had touched $1 trillion mark. However, India has crossed the $1 trillion mark despite of slower earnings growth for sectors such as autos, banks and cement. India’s $944 billion stock market probably dropped as inflows pick up into fast growing economy.

Times have never been so hard for AMD.

“Working to ease a cash crunch as it hustles to keep pace with larger rival Intel, scrappy chipmaker Advanced Micro Devices said Monday that it plans to raise up to $2.2 billion in a debt offering.

News of the offering comes after AMD posted a stinging first-quarter loss last Thursday of $611 million, or $1.11 per share, down from a profit of $184.5 million, or 38 cents per share, in the year-ago period. Sales sank to $1.23 billion from $1.33 billion.

The loss left AMD with just $1.167 billion in cash, a worryingly low level given its heavy debt load after its acquisition of graphics chip specialist ATI in a $5.4 billion deal last year. The offering may also cool speculation that there could be a private-equity buyout of AMD.

AMD announced it will sell $1.8 billion worth of convertible notes, giving buyers a 30-day option to buy up to an additional $400 million in notes to cover any over-allotments.

AMD is battling back after Intel grabbed a big chunk of its market share during the first quarter. The company bumped up the clock speed on its dual-core Opteron processors to 3 Ghz on Monday. In addition, it’s betting that the introduction of a four-core processor, dubbed Barcelona, will give it an edge when it is introduced in the second half of this year.” - Forbes

I am very well aware of the fact that today Intel Core 2 (Duo and Quad) processors are superior to that what AMD has to offer, but I am 99% sure that as I am planning to be upgrading my computer, I will be going for AMD X2 6000+ (after price drops) in the coming months, and really hope that the future Barcelona (Agena FX) core [as I read] will be able to bring back AMD in strong position. This though I cannot promise regarding when I’ll be picking the next video card, as I am really tired of certain aspects of drivers that ATI cards have to offer and I am quite sure that next video card will be from nVidia (8600GTS 256MB or 8800GTS 320MB). There are a lot of loyal users and I am one of them … just make sure that we are getting good offer, if not the best.

BTW, if there will be no way else to survive but being gobbled, the only company that I will be happy to see AMD being acquired by will be IBM. Not to mention they together for years have been contributing and sharing technologies and have a track history of being reliable partners. Or perhaps by some Indian Company. :-p

India has emerged as the world’s top investment destination, along with China, in the eyes of the world’s 20 most powerful bankers, a latest study shows.

In a survey conducted by Washington-based Financial Services Forum, India and China have both been ranked as the place of most attractive investment opportunities by CEOs of world’s leading banking and financial services firms. India has moved up the ranking from its second position in the previous bi-annual survey released in October last year, while China has managed to retain its top slot.

The survey, in which the CEOs named protectionism as the biggest threat to global economy, assumes significance as the Forum represents some of the biggest and influential names on the Wall Street and other leading global financial markets.

The think-tank is chaired by the world’s largest banking group Citigroup’s CEO Charles Prince and represents CEOs of 20 of the Wall Street’s biggest firms–Goldman Sachs, Deutsche Bank, UBS, Morgan Stanley, AIG, Merrill Lynch, Bank of America and Lehman Brothers among others.

The 20 CEOs ranked both China and India as the best investment destination with a score of 4.13 points each in the latest survey that was carried out in the first fortnight of April. In the October survey, China had topped the list with a score of 3.9 on a one-to-five scale, while India had come close second with a score of 3.7 points.

India was ranked by at the second position a year ago as well with a score of 4.38 points, behind China’s 4.69 points.

CEOs named restrictive trade policies as the most serious threat to the world economy with a score of 3.93, ahead of other issues like terrorism and energy prices.

China is a large, no huge economy that is growing rapidly. One may argue that its growth is matched by the growth of the Indian economy. But there are some differences. Here are some of observations: (these are not fact checked)

• The current growth in the Indian economy is largely due to relaxation of laws and opening the economy to FDI (Foreign Direct Investments).
• Another source of growth is export of services and garments.
• The two sources of growth along with more relaxed laws, have spurred an internal growth catering to a poluation of a billion, but more realistically about 300 million, representing the people with real purchasing power.

The big difference that I see vis-a-vis China is that we still do not make many products. We are still an exporter of primary goods, i.e., grain, minerals, fruit, cotton, and now human services. Compare that to China. They make absolutely everything. I cannot walk into a store and find a product not made in China. All over Europe and the US, if there is one constancy, its that everything is made in China.

How did the Chinese manage that? How come we didnt? Clearly we have equally qualifed people. But lets set that discussion aside for a bit.

What I am wondering is that with the opening of trade links between India and China, are we exposing ourselves to an economy that will crush our manufacturing sector? I do not believe in protectionism, but am curious as to the impact of a full open trade stituation with China. I doubt we are getting there anytime soon.

Just some thoughts. It will be interesting to see how this plays out.

*****

-> India’s fast-growing economy should expand by 8.3 per cent this year instead of 7.3 per cent as previously projected, the International Monetary Fund (IMF) said last month.

*****

Recently China and India have opened a historic trade route that had been closed for nearly half a century.

Recently China and India have opened a historic route that had been closed for nearly half a century. The Himalayn pass of Nathu La, 4,000m above the sea level, was once part of the ancient Silk Road and saw clashes between the sides in the 1960s. At the moment most agree that there are more immediate political benefits rather than economic.By allowing trade through Nathu La, China has accepted Sikkim as part of India that it refused to do earlier. Sikkim is a former Buddhist kingdom that merged with India back in 1975, a move that was opposed by China which lay claim to the state.

I really hope that in the near future I will get to hear and see more cooperations between the two nations, forming a stronger bond in all respects and becoming truly leaders in the political world and economic super-powers.

India has made significant inroads into opening up its economy to the world outside. It has come a long way from its inward-looking economic strategy practiced for around 50 years post the independence. Economic liberalisation and the gradual opening up to the world have boosted economic growth. It is being estimated that India will become the fastest growing economy by 2020, thus overtaking China. Moreover, its GDP per capita will double from roughly US$ 2,500 currently to almost US$ 5,000 by 2020. India is increasingly attracting the world’s interest as a result of the country’s impressive economic performance. In this write-up, I classify the factors that are leading the Indian economy in its way forward.

Capital Flows: The BRICs have played an important part in global financial developments. Latest estimates suggest that the BRICs now hold more than 30% of world reserves. While China is the dominant holder, Russia, India and Brazil have also accumulated sizeable proportions. Also, despite the reserve accumulation, real exchange rates in each country have appreciated over the last couple of years. BRICs’ current accounts continue to be in surplus, reflecting the group’s key role in the global savings supply. With China’s surplus increasing sharply, the BRICs’ current account is estimated at around US$ 240 bn in 2005 (close to 6% of BRICs’ GDP). Further, the BRICs’ share as a destination for global FDI also continues to rise (now 15% of the global total, nearly three times higher than in 2000).

Growth and Trade: Between 2000 and 2005, the BRICs contributed roughly 28% of global growth in US dollar terms and 55% in purchasing power parity (PPP) terms. Their share of global trade continues to climb at a rapid rate. At close to 15% currently, it is now double its level in 2001. Trade amongst the BRIC nations has also accelerated, with intra-BRICs trade now nearly 8% of their total trade compared to 5% in 2000. Also, India (in intellectual property) and Brazil (in agriculture) have illustrated their policymaking leadership among developing countries through the WTO negotiation process. The BRICs’ share of oil demand is moving steadily higher, with an estimated 18% share in the current year.

Markets: BRICs’ stock markets have got gradually re-rated since 2003, with Brazilian, Russian and Indian indices all up by around 150% over that period. China however, has been the only exception in this regard. The BRICs’ market capitalisation is currently close to 4% of the global total.

In the light of the above facts, it may be interesting to note that the recent report on BRIC nations by Goldman Sachs positions India fifth amongst the fastest growing nations in the world by 2025, based on the countries’ real GDP. The same is founded on extrapolations based on changing demographics, per capita income and contribution to world trade.

Also, by 2050, while China is expected to replace USA as the world’s largest economy, India will not be lagging far behind in the third position.

While these are some broad factors that have been aiding India’s growth over the past few years, there exists solid support in the form of a strong institutional framework and a sound financial system. The country’s growth potential over the next 10 to 15 years is going to set it at the forefront as compared to other developing and developed countries. India’s favourable demographics, talent pool and the reforms process shall help India to a more advanced stage of development as we move forward. However, concerns like bureaucratic hurdles, corruption and low levels of human development still need to be addressed before we can call this century as ‘India’s century’.

Soon I’ll be 30, and I would love to see these figures becoming reality as well as my country and nation prospering in all directions, before my time comes to …