Monetary Policy - Inflation

The August 2007 issue of Reserve Bank of India Bulletin makes a interesting reading in as much as a robust economy is projected with commendable achievements in almost all sectors be it Agriculture, Industry, Manufacturing, Communication, Service, Banking etc. As per the Reserve Bank of India Bulletin Indian Economy continued robust growth in 2006-2007 for the fourth successive year buoyed by the sustained momentum in the services, manufacturing and other sectors. The Agricultural sector has also shown a sustained growth. The growth in Agricultural sector is mainly due to South West Monsoon which has been satisfactory despite hiatus due to initial delays in its onset over western, north western and central regions. The cumulative rainfall during 2007 season (upto July 07) was 4 percent above normal as compared with 14 percent below normal during the corresponding period of the previous year - Source India Metrological Department. As of July 07 total area of Kharif sown was 1.7 percent higher than that in the corresponding period of 2006. According to the fourth Advances estimate the food grain production during 2006-2007 was 216.1 million tones an increase of 3.6 percent over previous year source - Ministry of Agriculture, Government of India. Industrial output has increased more than the expected level in April / May 2007. The Industrial production remained robust during April / May 07. It has clocked a record expansion of 11.7 percent. The manufacturing of sector has shown an impressive growth of 12.7 percent - Source - Central statistical organization. The service sector growth during 2006-2007 has shown a commendable growth in as much as it has contributed 71.5 percent to the overall GDP growth of 9.4 percent - source Ministry of Tourism, Ministry of Commerce and Industry, Ministry of Statistics, Programmed Implementation RBI and CMIE. The other sectors which have shown significant growth are Communication, Corporate and Banking. The perceptible growth in other sectors also contributed to a robust economy.

Though our economy is growth oriented it is not a bonanza to the average consumer. The benefits of the growth in economy have not percolated to the common man. There are grey areas which needs the Government's attention. A large portion of the population especially in the rural areas and in towns is well below the poverty line. Unless the Government takes immediate corrective steps to ameliorate their standard of living the average consumer will find it arduous to make both ends meet.

As per the statement of Reserve Bank of India Governor on the First Quarter Review, Review of Annual Monetary Policy for the year 2007-08 and published in the August 2007 issue of Reserve Bank of India Bulletin, Inflation measured by variations in the wholesale price (WPI) on a year-on-basis declined from 5.9 percent at the end of March 07 to 4.4 percent as on 14th July 07. The inflation during August / Sept 07 is reported to have declined further. Though the figures are in consonance with the Finance Ministers expectations it does not augur well with the purchasing power of the average consumer. The average consumer is more concerned with retail prices of commodities rather than whole sale price.

After all he is not going to make purchases in bulk in the whole sale market as many of the commodities like vegetables, eggs, milk, fish, fruits etc. are perishable by nature. Further when the general inflation is reported to be hovering around 3.5 percent the food prices Index is about 8.5 percent. The prices of onions, potato, pulses and even rice and wheat are spiraling upwards. The common man is concerned only with consumer price Index as it gives due weight age for food, fuel, transport, clothing, housing, medical care, education etc. which has a direct impact on him. The Real Estate market is over heated and dreams of owning a house is shattered as the prices have sky rocketed in all cities and even in towns. It is only the affluent class of people and professionals from I.T. Industry purchase flats / house at exorbitant price as their purchasing capacity can withstand the buyers offer. It is not known whether the government has considered the housing cost when computing whole sale price Index. Another aspect which the average consumer is concerned is the medical care. There is no denying the fact that the cost of medicines and hospitalization has spiraled since the last couple of years and the Government has not made any attempt to curb the prices. The premium on Mediclaim policy issued by the Insurance Companies has shot up by 200 percent.

With the increase in prices of all commodities having a direct impact on the average consumer, there is no reason for the Government to gloss over the general inflation which they claim to have pegged. The inflation figures projected by the government are not based on reality check. The significant growth in the economy should have translated into a bonanza for the average consumer by making available the basic necessities at affordable prices.

It is imperative that the government takes appropriate steps at the earliest to evolve a fool proof system for computing the whole sale price Index which should not be in contrast to the Consumer price Index at least with respect to the basic necessities of the average consumer. This in reality will act as the yard stick for measuring the general inflation which otherwise gets camouflaged, by whole sale price Index.

Anger Management

Anger is the most experienced emotion that threatens to rule our lives. I believe that anger is a signal that denotes we are deprived of our needs without justification, our rights are infringed and our feelings have been hurt. Angry people like other angry animals look vicious. Anger signals a problem but venting anger is not the solution. Anger is responsible for strained relationship as it propels us to take action which we dare not take in the normal course. Anger is the memory of being hurt. To resolve your anger first possess your hurt. Medical parlance states that an uncontrolled anger can raise the level of energy hormones and adrenalin culminating in a paralytic stroke or even a cardiac arrest. Violent anger is said to be normally prevalent in families which are emotionally unbalanced and not adept at emotional communication. Anger is inevitable as our lives have to adjust to giving in and getting along with others. But when we voice our anger without clarity and control we give an impression that we are unbalanced and provide others with a notion not to take us seriously. When we are angry it is imperative that we state our thoughts and feelings clearly so that it is congruent with our values and beliefs. If we do not understand our anger we fail to clarify our feelings, thoughts and priorities culminating in endless bickering. An effective solution to counteract our anger is to analyze the real issue instead of getting embroiled in the bickering without actually knowing the cause.

I believe that one of the hall marks of emotional maturity is to recognize the validity of multiple realities and to understand that people think, feel and react differently.

When we use anger to determine our values, priorities and our needs we don't have to become distressed to note that we are unclear. However our lack of clarity does not tantamount to weakness, on the contrary it should be taken as a challenge, and our strength. It would be more appropriate if we could use our anger as a lever to change patterns. At times our anger creates a fear in us for we apprehend that our anger may be ridiculed by others. It is important to maintain a calm position when it involves bickering with close relatives to bring about a lasting change. There is nothing wrong in trying to change someone but normally this attempt to change others remains futile, abortive and self defeating. It is better to move away from such ineffective fighting and give up the fantasies about changing others or change yourself to adapt to circumstances without sacrificing your values. Change is easier when you share your intentions and progress with some one you care. It is said that people who try to change for the good are healthier and happier than those who stay in the rut. Sometimes we do not express our anger but tend to suppress it. This in fact triggers stress leading to a personality perpetually cynical and hostile. In such an event a compromise is healthier because one adjusts willingly and is aware what he is giving up without sacrificing his values. Every problem has a solution but when we find that this is not so always we succumb to anger and this leads to frustration. If frustration is not nipped in the bud it leads to depression. In depressive mood withdrawal symptoms take the better of the depressed person. The person becomes paranoid and is eventually beset with pathological symptoms.

Marital spats are harmful to life. After the initial euphoria of blissful married life wanes, Couples engage in interminable spats as they traverse on two different orbits. They realize that there is a stark contrast in all their views and total dissonance in all their tastes, likes and dislikes. It takes time for them to accept each others strength and weakness. Hence arguing becomes an inevitable part of married life. It is said that the nuanced interactions between the couples and how they react to and resolve the conflict goes a long way to make a meaningful difference in the health of the marriage and the health of the couple.

Management of anger is vital for a healthy relationship. Relaxation is an important tool for managing anger. There are other modes of managing anger as follows.

1. Take a deep breath and exhale slowly for a couple of times
2. Listen to your favorite music as it has a soothing effect on the mind. Music perhaps more than any external experiences have the power to bring you home to yourself.
3. Yoga and meditation helps in the long run.
4. Talk to your friend or close relative in whom you have confidence and unwind yourself.
5. Read a book.
6. Go for a long walk.
7. Avoid the situation leading to anger.
8. In anger if you blurt expletives apologise immediately. An apology does not lower your self esteem; on the contrary it enhances your self esteem.

Winning a war against exceptive is as vital as winning a war against terrorism. After all if character is lost, everything is lost. Life is a precious gift; one has to savior it and not makes it an endless series of chores.

The HINDU WILL

It is prudent to make a Will as the division of your properties to all your legal heirs is ensured as per the law.

Section 2(L) of Indian Succession Act 1925 defines "Will" "as the legal declaration of the intention of the testator with respect to his property which he desires to be carried into effect after his death." The statutory definition of a Will means a continuous act of gift upto a moment of the donors death and though revocable in his life time is until revocation a continuous act of gift upto the moment of death and does then operate to give the property disposed of the persons designated as beneficiaries.

A Will is also described as an instrument by which a person making a disposition of his property to take effect after his decease and which is in its own nature ambulatory and revocable during his life time "As per Sec 59 of IS Act a person, not being of minor may dispose of his property by Will.

The testator of a Will means a person who makes the Will or the author of the Will. To enable the disposition of the testator's properties as per the Will the testator appoints an Executor. The persons who are entitled to the properties of the testator after his death are mentioned in the Will as Legatees or Beneficiaries. No person mentioned in the Will as Legatees or beneficiaries can be an Executor. If the testator does not appoint an Executor the Jurisdictional Court will appoint an Administrator on an application made by the legatees. The Administrator so appointed will discharge the duties of the Executor.

Probate :
As per the Indian Succession Act Probate is defined as a "Copy of the Will Certified under the seal of a Court of Competent Jurisdiction with grant of administration to the estate of the testator". As per law "a probate granted by a competent Court is conclusive of the validity of such Will until it is revoked and no evidence can be admitted to impeach it except in proceeding for revoking the Probate". Probate cannot be given to a minor or persons of unsound mind.

Probate will be issued only to the Executor of Will on an application filed under Section 222 and 276 of the Indian Succession Act in the Jurisdictional Court. If the Executor is not appointed the Court will grant a letter of Administration to any of the legatees under Section 232 read with Section 234 of the Indian Succession Act. After the Willis proved in the Court the original is to be deposited in the registry of the Court. The Court will issue a copy of the "Will" with a certificate under the seal of the Court. The copy of the Will issued to the Executor is termed as the "Probate". The Will is considered official after the Probate is granted by the Probate division of the High Court.

Codicil :
After obtaining the Probate if the testator desires to add, delete or make any changes or even cancel the Will, the testator can do so by executing a Codicil which has to be a part of the main Will and has to be proved with the Will. However if the testator has appointed a different Executor in the Codicil after obtention of the Probate, then a fresh probate both for the main Will and Codicil has to be granted by the Court. In case the Will is lost the Court may grant a Probate based on the copy of this original Will.

The obtention of Probate and Letter of Administration by the Executor and Legatees is compulsory. However there is a restriction in this case in as much as Section 57 read with Section 213 of Indian Succession Act states that in case of Hindus, Sikhs, Buddhists and Jains the provision is applicable only to Will made after 01.09.1870. Further the Will should have either been made within local limits of High Court of Calcutta, Madras and Bombay or the immovable properties should be situated in these place. The provisions are not applicable to Wills made by Hindus, Sikhs, Jains and Buddhists outside these territories or the immovable properties mentioned in the Will are situated outside these territories. The provisions also apply to Persons who are dying after the commencement of Indian Succession Act.

To sum up Probate is not required for Wills made by Indian Christians, Hindus, Buddhists, Sikhs, Jains and Mohammedans in the following cases.

a) Outside the territories of Lt. Governor of Bengal as on 01.09.1870.
b) Outside the local limit of Civil Jurisdiction of High Court of Madras and Bombay.
c) Where the immovable properties are outside the above limits.

Death of an Executor :
If the Executors dies before the Will is proved or dies after the Will is proved and before administering the Estate of the testator, the Court may agree to a universal or residuary legatee. On proving the Will letter of Administration may be granted to him. A Universal legatee is one to whom the testator has bequeathed all his properties whereas a residuary legatee is one to whom the residue is bestowed after discharging all the liabilities of the testator.

Joint Will :
Two or more persons can make a Joint Will. In the case of Joint Will, the Will comes with effect only after the death of both testators. However no probate can be obtained during the life time of either of the testators of the Will. The revocation of Joint Wills can be made at any time during their life time or after the demise of one of them. In such an event the survivor can revoke the Will. Sec 30 of Hindu Succession Act also enables a member of a Hindu Joint Family to dispose of interests in Joint family's property at the time of his death by Revocation of Will.

Section 62 of Indian Succession Act states that a "Will" is liable to be revoked or altered by the maker of it at any time when he is competent to dispose of his property by Will. Revocation may be absolute or conditional. A Will can be revoked as follows :

a) By operation of law
b) By writing
c) By another Will or Codicil
d) By burning or tearing or otherwise destroying the Will.

Oral Will :
As per Section 57 (C) of Indian Succession Act 1925, no Oral Will can be legally made by even Hindus.
If the deceased has not made any Will then it will be known as he died intestate. In such an event the properties will be shared equally amongst all his legal heirs. When a person dies intestate the legatees will have to apply for and obtain a letter of Administration from the Jurisdictional Court. If the deceased has not left any immovable properties then his heirs will be entitled to succession certificate. In a Hindu Will the testator can bequeath his property to anyone besides his legal heirs if the property is self acquired by him. However such bequeath is not valid if the property is ancestral.

Bequeath to a Unborn Person:
As per the Hindu law no bequeath can be made to an unborn person. Section 112 & 113 of Indian Succession Act states that bequeath to a person not in existence at the date of death of the testator is void.

Appointment of Guardian:
Under the Hindu law, a father has the power to appoint by "Will" a guardian for his property. He can also appoint a guardian for his minor children.

Requisites of a Will:
Section 63 of Indian Succession Act 1925 stipulates the following requisites for preparation of a Will.
a) A Will can be made only by a person of sound mind.
b) A Will must be in writing.
c) It must be duly signed by the testator.
d) It must be duly attested by two witnesses.
e) Attestator must see the testator signing his Will.
f) The witnesses must sign in the presence of the testator.

A Will can be written on a plain paper. It is not mandatory to register a Hindu Will. However if the testator so desires the Will may be registered.

Given below is a specimen of a Will

I ............. son of ................. aged about ........... years presently residing at ............. being in prime health and mentally sound do hereby make and declare this to be my 'Last Will" and testament. I am making this Will out of my own free will without undue influence, coercion or fraud on .........

I bequeath and give all my properties in Schedule I and Schedule II in any form that I may be possessed of and entitled to my said legal heirs equally or in ratio of (mention the ratio of dimension of properties to legal heirs) absolutely subject to payment of all my debts, funeral expenses and testamentary expenses.

Signed by the within named testator ............. in the presence of witnesses who in the testators presence and at his request in the presence of each other have put their signature as Witnesses here under.

Schedule I - All moveable properties like cash, Bank / Corporate Deposits, shares, house hold articles, vehicles, ornaments etc.
Schedule II - All immovable properties like land and building.

1) Name of Witness Testator
Address

2) Name of Witness
Address

This article is written by me and is of general nature and hence an advocate may be consulted for implementation of the legal procedures if necessary.

Avoiding Confrontation

1) Confrontation in life is inevitable. When you live and work with human beings you are exposed to the complexities of relationships and are subject to credibility and communication. In a confrontation you end up in hurting others feelings. This culminates in the other person harboring prejudice against you. The situation becomes more complex if both of you reside in the same neighbourhood, paving way for frequent quarrels. The difference in both of you keep sparking a string of squabbles which in turn sabotages peace. Either of you seek solace in your interminable spats - a true catharsis to your frazzled nerves. Confrontation should be handled tactfully. It is not the situation but the way we react to it. We can't tailor make the situations of life, but we can tailor make the attitude to fit them before they arise.

2) I believe that good life is not a passive existence when you live and let live. It is an involvement where you live and help live. No man is an island but when faced with pressures of life, we tend to forget this inter dependence. Interact with people frequently. Always perceive the good things in people and appreciate them. Never burn your bridges. Do not underestimate others. Be nice to people on your way up because you will meet them on your way down. Address the other side with tact and show concern for their dignity. Despite their having a reputation for being obnoxious and negative they will be completely enamored by your positive approach.

3) The first step in tackling a confrontation is to talk it over to the other person instead of harboring resentment. When you dislike the situation it does not tantamount to disliking the person. Rationalize with yourself and see that the pent up feelings are drawn away. Accept hard realities instead of brooding over them. Suffering and adversities are passing phase in one's life. Don't think that you have been singled out for misery. Adopt a right attitude towards life and cultivate emotional resilience. The way to become unhappy is to keep your hurt inside. Life is not about blame but about healing. You are solely responsible for maintaining healthy relationships from your side either through a change in attitude, a change in perception or a change in behavior.

4) The way you define your life determines your destiny. It is said that when you sow an action you reap a habit, when you sow a habit you reap a character and when you sow a character you reap a destiny. Life is a circus, a mini field, a roller coaster, a puzzle, a symphony and a journey. Life is also defined as carousal. Sometimes you are in high spirits, sometimes you are depressed. Life is a game and negotiation is a way of life. If you wish to succeed in life you must comprehend the game in its entirety.

5) Politeness and powerful behavior or assertiveness rather than aggressiveness are the factors for a positive confrontation. The polite part of confrontation is known as etiquette. What do we mean by etiquette? Etiquette means the code of polite behavior in a society. It means treating others with tact in both words and action.

The fundamental principles in a positive confrontation would be -
a) Gain awareness of how you present yourself.
b) Limit the assumption you make about the behavior of the people.
c) Learn to reduce conflict in your life.

6) First establish a rapport with others. To establish a rapport you have to build a relationship based on mutual trust and harmony which can be achieved by good etiquette. Major rapport is based on a ongoing relationship. Establish a better rapport with people you already have a long relationship. When you try to build a rapport with people always greet them. Say hello, good morning, thank you, have a nice day. You should handle yourself with grace and humor. True humor is when you laugh with people and not at them.

7) Humor needs to be clean so as to bring people together and not turn people away you can't have fun when you put people down. Humor without sensitivity is satire.

8) The next step is the body language. Body language is an indicator of your ethic and how you carry yourself. Pay attention to your body language. It depicts a strong non verbal message to the other person. Always have a pleasant facial expression. Look the person in the eye occasionally, but do not stare at him. Don't huff and puff and fidget. Tone down your voice in a confrontation but be clear in what you say. Be specific and don't beat about the bush. Cultivate a good posture with a smile. It indicates your friendliness and confidence. The other person who confronts you will be positive to your approach.

9) When confronted with a problem don't label the other person as selfish. You need to concentrate on him and not his behavior. Avoid blaming and accusing the person and do not comment on his behavior as lazy or disgusting. Do not exaggerate or generalize by using such words as "always, seldom, never etc." On the contrary be specific and tell the person what is bothering you about his behavior. Tell him politely what you expect him to do to change the situation. If he is adamant think of alternatives or consider whether to continue the relationship.

10) Try to avoid confrontation to the extent possible. I don't mean you should be naive when being intimidated by others. In such a situation speak your mind in a direct and firm manner. Ensure that you are not made a scapegoat or a door mat. Put across the fact that you cannot be taken for a ride. There is much put and prudence in the argument that a bit of assertiveness on one's part would come as handy to keep on a tight leash on the person who tries to intimidate you.

11) The first step to avoid confrontation is to arrange for a meeting with the person. Approach the person in a respectful manner and keep a watch on your voice. You don't want to pick a fight. You start the talk by saying "I believe that it is appropriate for you to know that you have hurt my feelings by your vitriolic outbursts and ugly invectives hurled on me". If the person continues to shout at you tell him politely that shouting at you will not help you to help him, on the contrary it makes both of your unproductive. You also need to tell him that it is not the appropriate way to talk to you. You can tell him to come back to you when he can talk calmly and you will be only glad to continue the discussion.

“The purpose of life after all is to live it, to taste experience to the utmost, to reach out eagerly and without fear for newer and richer experience” - Eleanor Roosevelt

The Importance Of Making Successful Decisions

Decisions play a vital role in our day to day lives. A correct decision can uplift you and fulfill your expectations. On the contrary a wrong decision can mar your life with serious consequences. An effective decision helps in bringing about the state of affairs you are expecting. Effective decisions are essential in our lives for marriage, education, career choices and family matters. It is also essential for corporate, political and government matters. In fact decisions are made right from childhood up to retirement or even beyond that period.

The ability to make effective decision is a prime requirement for both professional and personal happiness. It is concerned with consulting people and taking them into confidence on an informal basis. Your decision need not necessarily be entirely on the advice of your friends and family. The information and advice from those you consult needs to be an addition to other facts, your gut, feelings and prejudices which have already been accumulated by you.

When you elicit information and take advice from others you start to understand what your decision is likely to involve and when it should be made. It also helps you to distinguish fact from opinion.

Some people are reluctant to take advice from others on personal decisions. The reluctance on their part may be due to pride, arrogance or secretiveness. If you wish to see fatuous self importance, you should watch such persons, when arrogance is matched by incompetence, certitude by incorrect decision and knowledge by banalities. What they need to understand is that when they choose to make decisions alone, they loose a wealth of information and experience found in other people. I do not advocate you to entirely depend on others advice for your decisions. Such dependence on other can turn out to be counter productive in as much as they allow yourself to be solely governed by decisions made by others. In fact submitting to other's decision without, taking into consideration the facts which you have already gathered on the matter can adversely affect your life as they are based on feelings inappropriate to you. You will never learn from your good and bad decisions.

Before you take advice from others you should plan your strategy properly. Plan who you are going to consult and what you actually need to ask that person which will help you to arrive at a correct and effective decision. That way you can be in charge of the advice you eventually receive. Further when you consult your friend or relative ensure that the person has adequate knowledge about the matter you intend to consult. It is important that you consult someone who knows you very well. He will be in a position to predict the consequences of your decision.

Rushing to a friend or your relative on an impulse, will end in your decision being a complete fiasco. When an impulsive decision is made by you despite your gut feelings and your intrinsic instinct cautioning you that such decision will not be hunky dory with your life, you end up in regretting your reckless act of letting your whimsical heart rule your head. Sometimes an impulsive decision though being innocuous is doubly dubious. More over people visualise that you have a penchant for converting every decision into a raging controversy. In such an event you are faced with one or two choices either back your instinct and trust cold logic or tread the beaten path.

When you consult a friend and make a decision based on his advice you tend to pass on the responsibility to your friend and blame him when the decision goes wrong. This culminates in loosing your friend. Most importantly remember that you are solely responsible for your decisions and your friend's advice is only an output for making your decision. To save your friendship you need to collect as much information as possible on the matter before you translate your friend's advice into your decision. If you feel that the advice given by your friend will not help you to make a correct decision do not offend or annoy him by rejecting his advice outright. Most people do understand that you need to make your own decisions. The best course of action would be to point out to him in a friendly way that his advice was considered seriously, however it was found that it is not the determining factor. This way you give your friend an impression that his output was useful but it was not the determining factor. This perhaps will save your friendship.

In a marriage joint decision is always desirable in personal matters. Sometimes the wife does not participate with the husband in making decision, leaving the decision making entirely to her husband. (In some cases vice versa is also in vogue). An illustration in this regard is as follows.

Let us say the wife for the sake of argument desists from expressing a firm opinion. She will be content with discussing the matter with her husband in a noncommittal way. She is happy to listen to her husband talk about the decision but when it comes to making a decision she never makes herself clear about her preference. Eventually decisions after decisions are made by the husband only. The husband takes his wife for granted and goes ahead fully convinced that his wife will not come of the fence.

As this pattern of decision prevails in the family, life gets more and more determined by the husband rather than jointly. By not joining in the decision making, the wife has absolved herself of the consequences arising out of the decision. It is apparent that her acquiescence, Concealed a fundamental lack of commitment. Even though she may not opt to walk out of the door she will leave him emotionally and perhaps mentally.

A joint decision is always preferable when it comes to educating their children, a marriage proposal for their offspring or whether to move out of the house. In such matters tactful adjustments should be made without anyone partner imperiously foisting his / her view point on the other.

A paranoid person fears consulting others before making a decision. His fear is based on his imagination and illusion. The person fears the advice sought from others may do him more harm than good. The person fears that whatever he reveals to others may be used against him. He fears ridicule and imagines that others may upset his apple cart. But he does not foresee, the harm he inflicts on him by making a decision in isolation. Paradoxically the best way to allay his fears would be to tell all the details to everyone. This way the matter ceases to be a secret and it is much likely that people will not use the information against him.

Apropos corporate decisions the officials are not only responsible but accountable as well. The official is required to make decisions based on merit of each case and within the ambit of the corporate rules and regulations.

Successful people take initiative. They believe that responsibility is taken, not given. Successful people are passionate about the things they do.