Economy :GDP Concepts.

PRODUCT: it is the output of the economy.That is the total amount of good and services produced.It is equal to the total  income to  all factors of production.

DOMESTIC PRODUCT(DP):It is the total output within the geographical boundary of a country.

NATIONAL PRODUCT: DP- Income of Foriegn nationals in India+ Income of Indian nationals abroad.

GROSS: Concept used to accomodate Drepreciation.

If depreciation is reduced from the product its becomes NET.

Thus we have GROSS DOMESTIC PRODUCT and NET DOMESTIC PRODUCT.

Similarly, GROSS  NATIONAL PRODUCT and NET  NATIONAL PRODUCT.

FACTOR COST:its is purely the cost associated with the monetary value of goods and services.ie. excluding NET TAXES.

NET taxes= Taxes- subsidies.

After adding the taxes it becomes MARKET PRICE.

therefore, we have GDP at factor cost and GDP at market price.

GDP Deflator: Its incorporates the Inflation factor.   Once GDP is adjusted by GDP deflator, it is known as GDP at Constant prices.

Tellingly, GDP at factor cost at constant prices is the real measure of growth.

India uses this meathod for computaion of GDP.While China uses the expenditure method.There is an income method also.However, thoeretically, all the methods should give the same output for the economy.

A Different Trek.

A jouney undertook,
knowingly & unknowingly,

Chasing a Dream,
seems near & far,

An uphill task,
treacherous & thorny,

No looking back,
'fall ' is steep & scary,

But, can see the light,
with paitence & work,

In this solitude,
is 'life' & 'pain',

gladiator you are,
lonely you fight,
lonely you lose,

But,
if you win,

tough times are forgotten,
in the din of success,
'end' is sweet,
It is cherished,
and an officer is born.

1st April,2012: MOCK & FOOL'S DAY

Gave my second Mock test today.It a was difficult one.Paper 1: attempted around 50 questions while around 60 questions in paper 2.Its not at all pleasant;Paper2, how can one not complete such simple paper!!.. Though sad, its a reality with me.Have to improve on my speed, particulary reading speed.

Could not see off Ankit.He left for Surat today by evening train, probably will not see him for a long time.He has been a fast friend, and really a good person.We had some nice time together-College,lucknow trip,and later in Noida.

I wish his aspiration get fulfilled for its been a long time he has been striving.Hope Singapore brings fresh & rejuvenating life into him.All the Best my friend.

So, its like I have taken 2 days off as have not studied for last 2 days.Need to do this.bye..

Between Happy Fool's Day.

what are we doing????

Syrian Issue:I think India made a wrong decision by voting for the resolution, and it makes our foreign policy more amorphous & myopic.

Srilankan Resolution (UNHRC): Another unpleasant  move, though on domestic political compulsion.More importantly, Does US have a moral right to move a resolution of this kind???

Maldives: India failed to assess the real situation, as an fallout made a "statement of support" for the move(later read as a "coup') only to realize that Nasheed have a strong a backing from the people.

Further, India mis-judged Bhattarcharya 's Kids case in Norway and lost itself in the stained waters of shame, lacking sense and sight.

Is India still vying for  permanent UNSC seat??  Should it??

Probably, India should first have a clear cut foreign policy.

Reading habit.

.. long time.Life has so much changed.World around me has shrink-ed,to this wee bit of space on the precarious first floor building, in the congested part of Delhi.Have been days that I have not spoken to anyone.There have days I have forgotten to eat.But, then I tried to read books and muster some knowledge.Most often I lost, in the fight to read attentively.Reading is an art, and reading with good concentration a gift.More realistically speaking, it is a part of the cultural capital that one gets through the process of socialization.Moreover, its a product of gradual process and it is foolish to believe that one can learn this skill in few days.Furthermore, it is more than foolish to not make a start.So [here I'm] making a start.But,feels like an inane toddler among the contemporaries.

A need for Closer Indo-Russian Ties.

History tells us that, if any country India can trust, it is Russia. In this new age, while building ties with other countries especially U.S and many European countries, India should not forget its loyal friend- Russia. US can take a U-turn anytime, so will follow its European allies. Our hostile relationship with Pakistan, will always keep Muslim dominated countries away from us. And, China does not seem to be friendly enough, as long as Tibetan issue & other border issues solved.

Therefore, India should have a more closer economic & strategic partnership with Russia. Russia & India can compliment each other in many fronts. This can be successful only if we take this relationship beyond the state level. In this regard, the business to business & people to people level interactions and partnerships becomes more important.

Tellingly, Indo-Russian bond should be made stronger rather than compromised for some other dicey relationships.

And, the current Privileged Strategic Agreement is a welcome development.

Some Smart Writing.

You come across smart writings not that often, but when you do so, you are amused and impressed.

Likewise, today morning I came across an article (had few graphs also) on internet. It is not the article that influenced me so much but the author's request to the people ( inviting comments).

“Comments
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.”
That's a marked slap on all the Anonymous cowards.

A Mission Impossible

In the last few months I have seen my friends choosing different career paths. Some opted to do their higher education in US, Singapore & Australia. While some targeting GMAT and CAT examination to pursue their MBA dream.

To be sincere I envy people who have made a clear decision in their life. They have taken that turn and moved ahead. And here I'm still standing on that crossroad.

But, I hope things are becoming a little bit more clear. I feel any profession other than civil services will make me unhappy. Again, its an inner feeling.

So, here I am on a mission which requires an indomitable will to succeed. It is about not to give up. It is also about befriending failure and analyzing it for reaping benefits.

A mission never undertook. An uphill task, but its time to prove my mettle.

How does a Bank work?

Was flirting with an idea of starting a Bank, and decided I should document my thoughts.

It is quite interesting to note that its confidence of people that runs the bank. People park their money in the bank. They do this through savings/ current account, fixed deposits likewise.

Bank keeps this money and lends out a share of this to the public. They charge interest on this.


The profit made by the bank = Interest charged on the loan – Interest given away to account holders.

So where does Confidence parameter come into picture??

Primarily, It is the confidence of the people that drives them to put their money in a particular bank.

Secondly, It is the confidence of the people ( that their money is secure )that propels the bank as its this money( the bank) lend out as various loans.

The end of the day its confidence of people that matters.

Brand building is of paramount importance. For eg SBI is a bank that has good brand value and has confidence of majority.

SBI also has the largest customer base. It has a high ratio of current and saving account. This enable it to make more profit. As they make more profit they keep their lending rate a bit lower than the other banks and hence is prospering.

This kind of banking is called commercial banking.

There is an another genre of banking called Investment banking. Well they deal in millions and corporates. Their activities are different. They deal in raising money from the capital market for the corporates. Apart from this, they do multitude of activities like M&A,consulting etc.

Its so obvious that Investing banking is more profitable. At the same time, the amount of risk associated with it proportional to the profit earned.

So, paraphrasing my whole thought process, if you have knowledge and skill to manage an investment bank , there is no better way to make some real good money. However, its risky. Commercial banking is safer option but then profit is less.

Hehe.... what a way to timepass. Only few days to go.

Resignation Letter

Today my resignation letter was accepted. And finally by 16th august I bid adieu to Reliance. Three years have been a roller-coaster ride in the purest sense of the word. Experienced extremes of happiness and sadness.


A new phase in my life have started. A decision taken mostly because I hated the job. However, it is quite normal for people to loathe the work.The problem with me is that I just cant take it, I get frustrated. And in that suffocated state I make life miserable for me and everyone around. So, I made this decision to quit the job.

I'm driven by intuition and an obvious amount of risk is always associated with it. But then whats life without a thrill.