Shale gas exploration requires fractures in the sedimentation before the gas could flow into the well-bores. The cost of such artificial fractures had sent the prices of shale gas to $13/mmbtu four years ago. But pioneering technology of United States in hydraulic fracturing is expected to bring this down to just $4/mmtbu. In 1996, U.S. explored shale gas worth 1.6% of total gas production, which trippled in next 10 years. In a corroborative study, 40% of future U.S. gas demand is now expected to be quenched by this new “unconventional” energy source.

Image: www.freedigitalphotos.net

In Europe, Norwegian Statoil is front-runner in exploring the new field. It is running a joint venture with Oklahoma-based Chesapeake Energy to produce gas in Eastern U.S. territory. It has principally agreed to bring the technology also to the European shores. In Germany, Exxonmobile has purchased Texas-based XTO Energy in $35 Billion deal. Exxon belives that XTO has skills, capability and asset base to explore “unconventional” energy sources.

In the Asian territory, China has set a goal of producing shale gas worth 30 Billion cubic meters a year, which is half of their yearly demand. President Obama has agreed to transfer the know-how and encourage U.S. investments in Chinese ventures. In India, Reliance Industries has stepped in to exlpore Indian oceanic base for shale gas. It has invested $1.36 Billion (45% share) in Texas-based Pioneer Natural Resources, which is exploring its undeveloped, Eagle Ford shale gas field.

The Gulf countries are aghast at the new developments as they expect that shale gas exploration will send the oil price plummeting. It is also likely to hit fresh investments in deep-sea borings, which anyway took backstage after the massive BP blunder in Mexican gulf. Therefore, looking by the multi-billion dollar investments that it is attracting, it seems that the shale gas will be the next mainstay of world energy market.

Greece’s sovereign debt is close to a default, and next in line are other weak European economies like Portugal, Ireland, Spain, and Italy. This is likely to cause a Domino effect in the Euro-zone, since the foreign lenders are now calculating risks differently. The investment markets are in a gloom over the uncertainty, which is leading to weakening of euro. In that case, one can sense that the catastrophe is not pragmatic, but a product of speculations and sentiment. Adding to it, German chancellor, Angela Merkel has commented that failing of euro means failing of the entire idea behind European Union. French president, Nicholas Sarkozy has lamented over the bail-out package and threatened to quit common currency.

On the brighter side, last week senior officials and policy-makers have met in Brussels to chalk out a plan to boost euro and strictly monitor profligate economies. A whopping 750 Billion euros bail-out package was also declared, together with International monetary fund (IMF) and European central bank (ECB).  But there are still doubts whether the idea of EU’s interference in the national budgets will question the sovereignty of faltering states. Greece’s population is already opposing the austerity measures and against such “mediation,” and humiliation by lending countries. The future is bleak considering that the existing governments will not be able to perform under mounting public pressure.

In a more realistic sense, it has to be accepted that the latest debacle will have a manifold of effect on not just European but global economy. A weak euro has affected export-driven businesses and it is marring fresh investments. The confidence of European economy will be totally shaken with the “double dip,” significantly altering its equation with China and India. The domestic market and employment in individual countries, which had just come out of red, is also likely to be hit hard. On the other side, euro’s loss has benefited dollar to gain against influential currencies like Chinese Yuan, thereby boosting its prospects for trading and investment.

One might suspect, if there is any “malicious” interplay from American firms that are desperately waiting for dollar to gain sizeable weight against euro. The standard and poor’s, an American agency, has supposedly rated entire nations, for instance Spain, as nonprofitable. Of course, profligate countries have their own reasons for failing and poor performance, but the speculations are not bilaterally beneficial. In that case, it is admirable that a single country like Germany has thrown its weight behind Greece to spare it from defaulting. One can only hope that if Greece and its companions like Portugal, Ireland, and Spain follow the austerity measures and the guidelines of ECB and IMF, it is highly likely that the recovery would be back on track!

According to the report, the main cause of inflation is supply-driven. This year saw India and its major farmland with draught like situation. The poor rain spread-out during kharip season has fetched low agricultural yield, which is apprent now with the rising grain prices. Nevertheless, RBI is optimistic with the second rip, rabbi and hopes that the prices will ease out soon on itself. But in the same time, as the global markets are slowly picking up and industrial exports are slowly mounting, there is an additional pressure that high input cost and wages will further exacerbate the situation. The current wave of inflatation is also delving into other sectors, worsening the overall economic projections.

Image: freedigitalphotos.net

Although India has fought resiliently with the 08-09 meltdown by successfull decoupling from global economy, the recovery in adavanced economies such as America and Europe will be difficult to deal with. This is because the global recovery is coupled with high commodity prices in the world markets, which will push the inflation in Indian region. Besides, future projections may delay sells of grain reserves for anticipation of better pricing. So far, as RBI sees this, importing sugar, cereals and edible oils is an expensive option. This amidst the two ongoing deficits, fiscal and current, may turn into overall anonalies.

RBI further comments that there is wider discrepancy between different inflation indicators, e.g whole sale price index (WPI), consumer price index (CPI). The WPI for instance, was highest in the beginning of last year which went into negative after government announced its stimuls plan and sixth pay commission. It was again shot up in the festive month of September and then again in December. But CPI remained elevated ever since, causing serious concerns. There is a strong feeling based on the assumption that normal monsoon this year and stable oil prices will not fuel the difference after July 2010.

As a corrective measure, based on the shape of global recovery and domestic growth rate, RBI’s monetory policy will withdraw from the exapansionary “managing of the recovery”. But the hiking of the CRR, as seen by many, is indirectly solving the problem of inflation. It attempts to robustify Indian economy from the consolidating global recovery which will otherwise push the commodity prices beyond managable. The skeptics also say that even if the manufacturing industry will see this counter-intuitive, the banking sector will not. The crisis-driven low earnings on loans and larger reserve ratios mandated by CRR-hike, is going to eat up their margins.

The only silver lining seems to be, RBI’s revised growth rate, which it now states at 7.7% for the year 2010, up from last year’s 5.6%. Is it too much, too soon, let’s wait and watch!

Article based on RBI’s third quarter review of monetory policy (2009-10).

For example, in my state the board exams conducted by the state board for the 10th and 12th standards  were once tough to crack. In last 2-3 years there have been mammoth changes in the whole  exam system. With private tuitions spreading all over the state like the wild mushrooms, exam cracking is no more tough job, but this led to rote learning rather know-how gain. With more and more students scoring, the  competition standards for Enggineering or Medicine  got raised, ultimately  leading to fierce run amongst the students, which is well depicted in 3 idiots. Earlier the vernacular medium students found Engineering tough while for convent schools learning Marathi was tough!  Instead of making the learning better the government brought in a simple way. They clubbed 3 languages together for 150 marks with 105 as passing line, rather than 35 for each language. How it works — simple — a Marathi medium students need to score good in marathi + hindi say 50 +50 and mere 5 marks in English, same goes with the English schools.

Not only is passing Language examination has been made simpler, but mathematics too. Out of total 150  marks for maths, schools are entitled to grant upto 60 marks for semester work. Thus a students needs to score mere 45 to pass.  Thats the case for all subjects. Given the current situation, failing seems to be tougher! With introduction of Kapil Sibal to our education system, we may experience more ground breaking methods. With teachers themselves demanding simple maths, we may see mathematics becoming redundant in board examination as well. In a sense it is good. Not every student has an aptitude for maths, science, etc., nor are they important to lead a life. Tapping the right  aptitude is necessary. For a teacher, nurturing MUST be compulsion rather teaching.

It rather harsh but the whole of education has turned  into “dirty” business, more the cash, better are your options to get a “seat.” Ethics are parts of syllabus not of systems.  Teachers are forced to teach to obtain better results for the whole batch. Understanding of any subject is hardly paid attention to. More stress is on scoring. Mentors have  turned themselves into batch manufacturers like Viru Sahasrbudhe.  The end result is  that students face hardships in later lives. Apart from it, such a batch of citizens with handicapped wishes to work/perform are time bombs for future of our country. Half-educated engineers, teachers or professionals will not lead to growth of nation as whole. The integrity to pass on the knowledge is lost from our education system.

If we keep producing machines (students), our future dosen’t seem bright to me. The overloaded teachers are left with no zest to teach. Each teacher aims to get more students ‘cleared’, so that his job is safe. With ‘get rid of them’ thinking, we are the worst hit and the whole system is suffering in turn. Unfortunately, engineers or Doctors have gained the glamour of the so-called professions, while scores of others have fallen behind. Reason is simple! These 2 professions pay off monetarily. If in case, we setup uniform labour rules and fix the earnings, I am sure we shall more stable economics, and by that I don’t mean to go “communism”!

The extensive construction of flyovers made me think my city is even better than Germany (comparison is inevitable) , n surprise surprise, the road quality has improved…no potholes peeping out. Yet this moment of satisfaction was short lived as an  i10 cut pass me like a two wheeler. Rippled from its speed  I looked around and found a sea of two wheelers zoooing all over me. With advances in the technology, the new bikes have high powered engines upto 220cc, making zooming even more simpler. As money is no  more an issue even 80K is sounding cheaper. Not to mention that accident percentages have gone up, too. What  I found astonishing was the way  2-wheeler driver licensing exams are conducted, where none of the aspirants wear helmets.

With every soul running the definitions for life have changed. Family no more stays as priority as career have taken over. Each one under self-impression that they are making better career, want to push ahead of others at all costs, but have ended in pushing families apart. This fast life has reduced daily conversations with the family members, the office tensions have  made their way into privates lives, leading to increased stress levels.  Long working hours make it more hard for the family to meet during weekdays even for dinner. This rising stress  is all  leading to increased suicides. Unfortunately the number of students committing to suicide is higher- almost 1 every 90 min. Parents have less time to parent a child but more to attend to other issues, while kids are busy twitting with no time for parents. Everyone just seems to be so occupied and running for something.

The TV shows  based on some (doctored ) reality  make people loose their minds. This fame to glory is adding to already present cut throat competition. Every parent wants their kid to flash on TV, every youth wants to be singer or a dancer.  Even the Engineering, medicine students or other professional students are falling for this glamour. Kareena’s absent figure sold out as Zero figure makes girls die for that size. Earlier the ‘chalta hai‘ attitude was a worry but now ‘apana faida nikaalne aur khisakne ka‘  is tearing the social fabric. The unnecessary competitions, lack of education but abundance of literacy, cheap short term goal setting is making the chaos go turbulent.

The only thing I found  slow was LAW especially taking action. Be it Ruchika case, Jessica case or the Arushi case all are yet to meet justice. Though these are media trials yet there exists slowness,  a visit to any court in any part of India will present facts of delay. Rest every thing runs head over heals but where to remains the question.

1. Be yourself:

No offense, but in old days, ‘abroad’ only meant U.S. of A., and very few had the “courage” to test different waters. Europe was only known through Yash Raj films and Germany only sold cars! But 5 years down the line, I saw lot of things changing. Graduate engineers who thought American universities were saturating with desi crowd, turned to Europe. They “dared!” The education in Europe is 180 degrees opposite to that in America, and the stress here is lot more on theory. But all of that proved too fickle, and Indian students established a positive image by setting excellent academic records.

2. Do it yourself:

Image: http://www.opentech-us.com

A very important reason to study abroad, and this time not just in Europe, but in any developed countries, is that, many things are ought to be done by individuals, themselves. This, conisdering the abundance of local “resources” available at our disposal in India, is difficult to achieve. Right from washing your clothes to grossary shopping, and from repairing your laptop to installing new furniture, it must be done by yourself, or pay hefty sum for letting a serviceman do it. All of it, imbibes a sense of independece, confidence, while providing you an opportunity to learn new things.

3. Know yourself:

It is rather philosophical, but I guess, learning abroad is lot about learning yourself. The courses you take, the specialization you choose, and later the career options, it is all about your “taste!” The way you deal with the strange environment, how you accomodate inside the culture, and most importantly how you carry yourself amongst the best of brains, it amazingly adds up to your personality. Then, I do not think, you require any personality development programm. Besides, the atmosphere is much more conducive for innovation and creativity.

4. Trust yourself:

Living abroad, away from your loving parents and friends is challenging enough to keep the essential element in tact, faith in yourself. Practically, there is nobody to help you decide even in the trivial matters, nobody providing you assistance in letting yourself go forward, it is just you! All it then takes is the courage and faith in yourself to make things work for you. Of course, at the end of the day, your parents and friends would be nothing but happy to watch you do it. I believe that self-confidence is crucial for survival on Indian terrains.

5. Sell yourself:

A rather general aspect of getting higher education is how you sell yourself. I see that many are stuck. If the specialization they chose would be relevant in India, and if not, should they be permananently stuck? But I guess, how you present your experience in international environment should be the key to success. Moreover, even a short practical experience gained here would prove far more important than anywhere in India. It would definitely put you  a couple of steps ahead. Some of us are also successful in striking important partnerships abroad and started their own ventures, simply because of their academic experience!

Higher education is safer option to invest our time and money. With that comes a myriad of challenges, but it all makes an individual tougher to survive in a competitive environment.

According to V. Ramachandran of LG, the company expects 25% rise in the sales of consumer goods section in the period of Sept.-October compared to last year’s 16%. LG is one of the leading consumer brands that manufactures anything from washing machines to mobiles. These figures need no reason as major Hindu festivals are lined up all over these days. Another survey by DisplaySearch estimates that India will account for 30% of Asian market for Flat Panel Displays or LCDs by 2013. In fact, the sales of LCD televisions showed nearly 100% growth from 2007-to-09, and there remains tremendous potential to penetrate, because from the 230 Million households considered potential buyers , 50% still use obsolete cathode ray tubes!

Despite of the low-key communication infrastructure and average Internet density, the sales of Laptop computers have zipped pass those of desktops. The last 4 quarters have shown 22% increase in the sales of Laptops, whereas desktop sales remained constant. The figures are significantly less on Year-on-Year basis, but the subsequent price-cuts can be the single most contributing factor for the quarterly rise.  The Laptops well under Rs. 20,000 barrier are made available by global giants like Dell, Acer, and HP. India’s very own HCL is also vying for a respective position with projected market share of 20%. Netbook sales are also riding on the hype. BenQ, Lenovo, ASUS have all slated their international models to be released in India. Once again, the Internet density would be crucial in deciding the true market potential.

Happy Diwali

Striking out any possibility of dip in sales, Mobile market grew by healthy 6.7% post-recession. Sunil Dutt from Samsung reasons that compared to global sales that declined by 6.1%, India showed resilience during the recession. Nokia has still the market monopoly with 58.6% share in sales, followed by Samsung with 7.7% and LG with 5.4%. The fear of market saturation still persists, as there are now 26 Handset vendors compared to just 11 last year. The price cuts are inevitable along with stacking new features to lure novice buyers, and the testimony to that is the record sales of Nokia 5800 ExpressMusic. The high-tech gadgets like iPhones, HTC’s Touch HD or Nokia’s N97, which are priced upwards, are also slowly finding their niche in India.

The latest post from Indian Telecom Data also shows positive wave in Telecom and Dirtect-To-Home television segements. In the DTH sector, 13.3 Million subscribers and 7 majors service providers have emerged, including Doordarshan, TATA Sky, and Big Entertainment. Landline bookings showed tacit growth of 5% in the first quarter from the previous, and 12% growth in overall communication sector including WLL and GSM connections. The Internet users grew by 5.3%. Currently, India stands at 7th position (32 Million users) amongst the list of countries with highest Internet population, and offers huge potential to dig it deeper. But the real buzz seems to be around the Broadband which exploded by 12.68% in the first quarter with 6.22 Million people hooked onto the Internet! Are you one of them?

Useful:

1. http://www.eetindia.co.in

2. http://www.medianama.com

Diwali is of special importance to each Indian, when all the bad things come to an end, and good things begin to take shape. Let this also be the occasion of joy, hope and a promise of a better future. I, on behalf of Team@dynamic22, wish you a very happy and joyous Diwali!!!