Outstanding B-School Award

DoMS-NIT Trichy’s commitment to managerial excellence was once again recognised with the Outstanding B-School award(South) by Star News for the year 2011.

Former HOD Dr. M.Punniyamoorthy received the award at the function held at Hotel Taj Lands End, Bandra, Mumbai on 12th February 2011.
The award is organised in partnership with Business World, a leading business magazine in India.

The Parallel Economy

INTRODUCTION

It is believed that the second most populated country in the world with around 1,150,000,000 (1.15 billion) people, India is growing in stature amidst the economies of the world. The following figures will also give a normal Indian some causes to smile.
GDP (purchasing power parity): $3.57 trillion (2009 est.)
GDP (official exchange rate): $1.236 trillion (2009 est.)
Source- https://www.cia.gov/library/publications/the-world-factbook/geos/in.html
But the truth is that the Indian economy is today witnessing a serious crisis. Unemployment, financial scams, political chaos and sick companies are the result of this unchecked phenomenon that has mushroomed under successive Congress Governments and has already done more harm than centuries of Muslim or Christian domination.
Today India is also seen as a potential world leader based on its thriving economy. But there is another economy thriving in India which everyone should be aware of. This economy is known as “The Parallel Economy”

THE PARALLEL ECONOMY:
A parallel economy is so called as it disregards the rules and regulations that ‘white’ businesses follow. The components of the parallel economy are numerous. Tax-evasion, Smuggling, Bribe-Taking, Foreign-currency racketeering are some of the more prominently visible and talked about forms.
While there are no authentic figures about the black economy in India, according to the Professor of Economics, Jawaharlal University, Arun Kumar, who has written one of the most authentic books on the subject, ‘The black economy in India’, puts the figure at around 40 percent of the GDP.
Some Stats: According to the latest estimate of Central Statistical Organization (CSO), the size of the Indian economy is around Rs. 61, 64,000 crore. So the size of the black economy comes out to be around Rs. 25, 00,000 crore or around $500 billion.
Estimates by eminent economists reveal that India’s parallel economy has risen from a mere 3 percent of the GDP in the mid-50s to around 50 percent today. The dimensions of this growth of corruption and generation of black income in India are indeed mind-boggling. The black economy is now about 50 per cent of the GDP or roughly Rs 30 lakh crores annually. This data is enough to shock anyone.
The black economy is made up of two constituent activities:
• Legal activities that are not reported to the tax authorities and the income from which goes untaxed and unreported
• Illegal activities not reported to the state (and, therefore, not taxed).
All this ill-gotten wealth of ours has been stashed away abroad into secret bank accounts located in some of the world’s best known tax havens such as the Swiss banks.
Let us look at the details of bank deposits in the territory of Switzerland by the nationals of the following countries in 2006:

Top five

India—- $1456 billion
Russia—$ 470 billion
UK——-$390 billion
Ukraine- $100 billion
China—–$ 96 billion

India with $1456 billion or $1.4 trillion has more money in Swiss banks than rest of the world combined, an amount 13 times larger than the country’s foreign debt. If this huge amount of black money property comes back to India; the entire foreign debt can be repaid. After paying the entire foreign debt, we will have surplus amount almost 12 times larger than the foreign debt. If this surplus amount is invested in earning interest, the amount of interest will be more than the annual budget of the Central government.

Courtesy: Santabanta.com

THE GOVERNMENT’S APPROACH:
• Recently, due to international pressure, Swiss government agreed to disclose the names of the account holders only if the respective Governments formally asked for it. Indian Government has not asked for the details.
• The German Government once bought a disc containing the names of people holding illegal bank accounts in Liechtenstein in 2007. They offered to share the disc for free with all the governments whose nationals’ names were in the disc. The governments of the US, UK, France immediately took the data and started prosecution but the Indian Government refused to accept it for two years—perhaps to enable the corrupt to escape
• Many committees have been formed but with little or no result more than forty Controls like FERA, MRTP, small scale reservations and licensing have been diluted or eliminated. Direct Tax rates have been reduced drastically. Voluntary disclosure schemes have been tried repeatedly but there is little dent on the black economy.

THE NEED OF THE HOUR:
The above facts should be enough to awake every Indian. Now looking at all these, the question is: what is there that can be done as a solution? In such a scenario it is only public pressure on the Government from every corner of the county that can push the government to do something seriously. We need to start a movement to pressurize the govt. to do so!! This is perhaps the only way we can get back the money which can be better utilized for the welfare of our country.

REFERENCES:

http://hindustan.org/forum/showthread.php?p=6886

http://www.internationalreporter.com/News-202/india-and-8217-s-black-economy-indians-hold-1-trillion-in-foreign-banks-illegally-.html

http://www.mainstreamweekly.net/article2266.html

http://www.economywatch.com/market/market-types/black-market.html

http://economictimes.indiatimes.com/news/economy/finance/India-loses-Rs-10-lakh-crore-from-black-economy-every-year/articleshow/5710210.cms

KODAIKANAL: A TRIP OF A LIFETIME

The trip to Kodaikanal was indeed a moment to treasure for the rest of my lifetime. After all that hesitation and thought process of either going to Ooty Or Kodaikanal, it was good to see that finally 14 guys with adventurous mood nodded their heads in unity by saying- “LETS BASH IT UP IN KODAIKANAL”. The trip was all the more special because Diwali was round the corner (infact it was the next day of the trip). We were in no mood to compromise or rather trade our celebrations of the “Festival of Lights’ by staying back in the hostel for all the varied reasons which we couldn’t make it to our homes.

The day was 8th Nov 2010, and the trip started with us boarding the so called “MERCEDES BENZ TRAVELLER” which was booked by our own financial accountant for the tour, Mr Suhas. The journey to Kodaikanal was a non tiring one filled with jokes, humorous stories and comments and yes we did watch first part of the movie “Endhiran” (mind you, there were no subtitles and there were 13 blokes who had no clue about Tamil at all) leaving the remaining half to be seen on our return journey.
On our way to Kodaikanal, the 1st pit-stop was made in Dindigul, where we had our breakfast, which was followed by a quick photo session near the restuarant. Throughout the trip the photographic sessions seemed endless with everyone posing in every possible way that could be there in the dictionary of “Poses Of Photography”. On our way we did stop by some huge gigantic waterfalls and some awesome mind blowing natural scenary which refreshened our senses in every possible way that it could. (Particularly after the gruelling trimester exams we definitely needed a break).

One of the best part of the trip was the place where we stayed; and yes we did stay in a cottage sort of house where we were left all by ourselves,  where we could run around, sing, dance, shout all by ourselves and the most important thing that we could celebrate Diwali amongst the 14 chaps in our own very special way.

In the evening we went to few parks, crystal clear water lakes, saw some outstanding and beautiful botanical gardens and continued with our evergreen trend of taking snaps in every nook and corner of the place. The evening was made even more special when all of us went for a round of “Boating” in “The Kodaikanal lake”. It was late evening time and the lake seemed to have around   10 boats only with the majority of people in the lake being DoMSians (7 boats for 14 felows).

The night in the cottage was filled with fun and frolic  followed by a game of cards. It was late night and sleep did creep up to most of the guys’ eyes (however the night was still young for some of the guys). So we finally landed in our respective beds only to wake up the next day to be filled with joyous events and memories.

The  next we started off  early so that we could cover all the tourist spots within  the  given timeframe.  Everything seemed picture perfect for the day with the weather being at its sublime best: partly cloudy  with a hint of sunshine. We came across some majestic landscapes, amazing series of waterfalls  and mystic sights of mountains covered partly in clouds.

However the best part of the day or rather the adventurous part of the day was the visit to the “Bear Shola Falls”. The waterfall was stunning in its appearance with the milky water falling from great heights. A bunch of determined guys with a sense of adventurous mood decided to make it to the top of the waterfall. But as the proverb goes that fate doesn’t provide success to all; so not all the bunch of guys could make it to the top. The way to the top of the waterfall was a very harduos and tough route with steep cliff. The fact that the cliff was slippery didn’t help either. Finally a bunch of few brave souls with true adventure spirit comprising Jinson, Amit, Sachin and myself made it to the top of the waterfall: as for us, it seemed not just the top of the waferfall but the “Top Of The World”. We screamed at the top of our lungs and waved to our classmates who were at the bottom of the waterfall, happy to see DoMSians reach the top of the waterfall.

With this adventurous spirit we ended our trip to kodaikanal; a trip that will remain fresh in minds of ” 14  INDOMITABLE  DoMSians SPIRITS”.