Saturday, 25 February 2017

What is H-1B VISA and what is this issue all around?

H-1B VISA is a non-immigrant visa category for united states of America.

A non-immigrant visa is issued to person who wants to be in the US for temporary basis like tourism, some kind of medical treatment, study, leisure, temporary work etc
The duration of this visa is 3 years and it can be extended further up to 6 years.
other advantages of this visa are after 5 years of holding this visa we can apply for a green card to be a permanent citizen of America.

How it gets issued, Suppose I want to work for TCS(tata consultancy services ) then I will have to apply for H-1B visa, Now TCS would apply for employee's H-1B visa petition with of course US immigrant department.
That petition will only become work permit when US immigrant department approved it.

What if US immigrant department disapproved it or put some restriction that's what Mr.Trump is doing.he has been working hard on tightening immigration norms for the united states of America.
A bill was introduced in the US Congress to more than double the minimum salary of H-1B visa holders, which could significantly boost costs for IT companies.

when this bill was introduced IT giants like TCS,INFOSYS, WIPRO  shares fell over 4%on national stock exchange and Bombay stock exchange.
 The increases in salary will surely raise their operating cost,(by hiring locals in America at a higher cost ) increase in operating cost will lead to increase the price of services they provide consequently they will have lower foreign earnings.
this could be a major problem of the Indian economy because at large scale India continuously runs a large deficit in merchanting trade. this is funded through a surplus in service export. such an event will hit service export and then will have a negative impact in the current account deficit and exchange rate which will ruin our economic growth.

India has been gaining from H1-B visa scheme because all the IT giants like Infosys, Wipro, TCS
they were able to send engineers for their US operation and serve their American client in much cheaper cost. India's  employment rate was increasing besides those engineers who were working overseas send money to their parents in India and then the purchasing power of those family increases they would spend on cars, Houses, jewellery but after this bill being introduced  there would be slowdown in new  hiring by IT companies or lower salary growth will definitely hit the consumption demand  by which Indian GDP would  decrease and then lot of capital inflow would stop coming in Indian so if we understand this by this cycle we will be able to make out how harmful this decision is going to be for us(Indian) .

The beauty of economics is there would always be 2 implication in every aspect like if we see the advantages of this decision then we see a lot of Indian talent who is working overseas coming back in the country besides there would be a lot of R&D centres getting opened in India like Microsoft has already opened.

If we look at our balance of payment of last quarter we were on the surplus of $4.1 billion.revising the deficit of $855million dollar in July- September we also narrowed the current account deficit but after this trump move, we are unlikely to achieve what we expected to at the end of the fiscal year ...
let's see what happen next  "Indian IT firm to meet president  Donald trump"

Thanks & Regards
Jitender Kumar

Saturday, 11 February 2017

There are products been written "Made in India" and I feel jubilant seeing those products because that product is manufactured in India and that product must have given  employment to many individuals. In the same if we have more number of products being written made in India we can imagine our surplus in current account because we'd start exporting more to the rest of the world instead of importing. but How is it going to happen ??

if we become a manufacturing hub then of course we'd produce more and we shall be able to sell more to the rest of the world and increase our Export and to become manufacturing HUB we need to have 
1.Good infrastructure (enabling the environment to work )
2.Ease of doing business (policies have been eased, minimum govt intervention and easy approval  )
3.Skilled labor (India has immense manpower resources we just need to start  utilizing  them in best possible manner by educating them   )
4.Lesser cost (if government reduce tax or start giving tax incentives to businesses then it would be easier for new start up and existing businesses for producing more. which actually happened in 2017 budget   )
5.Government expenditure will also play very big role in this by multiplier effect .
Make in India to turn India into a global manufacturing hub has been appreciated across the country
and also as we know labor cost is increasing in china would have a big time  advantage for us to make in India successful.

More manufacturing unit means 
  • more jobs 
  • more smarter cities 
  • Growth in GDP and GVA 
  • increase in purchasing power 

Thanks & Regards
Jitender Kumar

Tuesday, 7 February 2017

Facts After Demonetization ?

It surely gives me an immense pleasure to let you know all that our GDP(gross domestic product) rose by 7.9% 2015-16 earlier it was 7.6% 2014-15 now what is interesting this time is in spite of demonetization it grew . we were hearing lot of politicians and economist saying that demonetization happened in wrong time, its not good for the Indian economy etc etc.. upward GDP growth and downward inflation(3.41%) is vindicating almost everything and its a tight slap on those faces who were giving us false and fabricated estimates . (CSO )Central Statistical Organisation revealed everything about Indian economy like our per capita net national income has increased and now its Rs 94178 and gross value added (GVA) grew at 7.8% ..

There is no doubt that for decades India has been plagued by black money and there’s a desperate need to tackle it but the question is how?? Is demonetization the best or even the right way of doing this
Well I think its good to reduce the black money that operates in the market
We will find out only when we would come to know how much money has not come back to the bank
But besides the black money issue, it will send a very good message against further a cruel of black money. I also think this will help against to fake currency notes which are coming from across the border to finance terrorism.
It to my mind also help against Naxalite in the country and overall it’s a good message.
now the question is what price are we end up paying?
Is the pain the country presently going through justified by this level of game
 I heard people saying it will be easier now to store black money when you have 2000 rupee note.
Well, we Indians have rebuttals of everything it's just the mindset that we need to change
In order to fill up CASH shortage quickly in the market, the government came up with the idea of 2000 notes ...
and also ATM has got certain constraint we all know this, i won't get into technicalities. but also a lot of people could take out money from the ATM and have access to more money they would've probably thought.
I heard big economist saying our GDP will go down and per capita would affect big time (they are just playing to the gallery most of them belong to some political party )
if govt could fill up the shortage of money quickly economy would not Affect it might get worse in short run but this surely gonna help in long run.
 PLANNING was not appropriate I would say govt has slipped there a little bit coz when u have the population for about 1.2 billion and u need to circulate the new currency, they could have given a second thought there.
Rest is pretty all right we should appreciate the fact we've finally got the PM who take these sort of bold step and doing tremendously well. KUDOS to him