16.11.2006

• Recipients of foreign contributions at the receiving end
• The GoI is proposing to ban the use of foreign contribution and resultant income from speculative investment.
• This is going to result in about 35,000 registered entities who bring in about Rs. 7,000 cr a year to the stock markets.
• Three more IITs to be established
• The GoI is proposing three new IITs with a capacity to admit about 3000 students.
• Each institute will require a funding of about Rs.650 cr per annum for 6 years.
• India has only 3.5 science and engineering personnel for every 1000 persons, as against 110 for Japan, 45.9 in South Korea and 76 in Israel.
• India produces about 4,000 Ph.Ds every eyar, China 16,000 and Brazil 10,000.
• Women power
• More women entering the workforce could add $35 bn to GDP over the next five years according to a report prepared by Ms. Rupa Purushothaman.
• She is known for the by now famous BRIC report, which she co-authored while working for Goldman Sachs.
• Details about Revolution in Nepal
• The pro-democracy movement was launched by the Seven Party Alliance, with the active support and participation of the Maoists in the month of April. It lasted for about 19 days.
• About 2 dozen people died and thousands injured in the country during the course of the movement.
• Soon after the Seven Party Alliance seized power, it appointed a commission of inquiry headed by former Supreme Court Judge Krishna Jung Rayamajhi.
• The Commission is scheduled to submit its report shortly to Nepalese PM GP Koirala.
• Food processing industry is estimated to touch $3.1 bn by 2007.
• Audi launch through a cinema
• Audi, the German luxury car maker is set to launch its new India specific car through the Bollywood film Baabul.
• Earlier Tata Safari was also launched in this fashion using the movie Road.
• India has about 10 mln car owners.
• What (is) are Effies?
• The advertising awards show conducted every year for the last six years in Bombay.
• The awards were instituted by the American Marketing Association and conducted by the Ad Club, Bombay.
• The country’s ad spend is currently put at about Rs. 15,000 cr.
• MNCs’ performance in India
• India contributes about 10-25% of global sales by volume for MNCs.
• But the share of revenues is still marginal at 5%.
• 90% of the MNCs operating in India make profits, compared to 45-50% in China.
• Challenges of microinsurance
• More than 90% of India’s population does not enjoy social protection of any kind.
• There are strong synergies between microcredit, microinsurance and microsavings.
• The risks are:
• Possibility of adverse selection. That is tendency of high risk individuals to enroll in insurance plans covering the particular risks they know they are facing.
• Dishonest behaviour that increases the risk to the insurer.
• Surveys have shown that for the poor face frequent but relatively low cost episodes of sickness more than catastrophic events. This puts a strain on insurance.
• There is a close synergy existing between health insurance, health care, and health care providers. Only when the last two exist the first becomes viable.
• MFIs are in a better position to overcome information asymmetries through the information acquired by them during credit and savings services.
• Economies of scope also put them in a better position to reduce costs by such devices as deducting premia while extending loans, or adding a small monthly contribution towards premia in periodic loan repayment installments.
• The English speaking population of India comprises a mere 5%.
• Global Microcredit Summit is being held in Halifax, Canada this week.
• Stamp duty on warehouse receipts
• It is contemplated by the GoI to remove stamp duty on these receipts.
• This will give a major boost to farmers looking to derive more mileage from their agricultural produce.
• Warehouse receipts are negotiable instruments under Warehouse Development and Regulation Bill.