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Post by thespeakingtree on Mar 17, 2015 5:07:26 GMT 5.5
Increasing foreign investment limits in insurance sector will open way for inflows to the tune of Rs.60,000 crores (government estimate). In a liberalized economy where government is limiting its role to playing referee its not practical to infuse required capital even in existing government insurance companies, in this scenario coupled with limited private capital formation domestically it is an imperative to invite foreign capital.
Apart from this advantages will be
1. Improve insurance penetration - India has dismal record of insurance penetration of 3.2% only. This has huge economical and social costs as many families are driven into poverty by extreme events like accidents, critical illness and death of breadwinner.
2. World over insurance sector is one of the major investor in long term infrastructure projects as that have huge pools of long term funds. A vibrant insurance sector will go a long way in funding our infrastructure sector
3. Increased competition is expected to lead to innovative schemes and lowering of cost for the consumers.
4. Standard point about job creation (can not be expected to be a game changer because it is inherently high skilled service sector)
However there are several risks involved
1. Currently LIC acts as safety net for any government company listing on stock market or infrastructure projects (for eg. Rs.1,50,000 cr MOU signed recently with railways). There is a risk that with entry of foreign players market share of LIC may be impacted and new players may look for more remunerative avenues to deploy funds overlooking public good.
2. PSU insurance companies offer services in remote corners of the country, even when financially unviable by subsidising those operations from margins in urban areas. When new private players eat up their market share in urban areas then there is a risk of PSU companies becoming loss making.
3. Foreign players may look for more returns by investing in complex financial instruments. Case in point is Asset backed securities(ABS) which were culprits of 2008 melt down. Even requirement of good credit rating is no safeguard as most rating agencies gave AAA rating to those toxic assets at that time. Such risk taking approach may wreck havoc with social security of policy holders.
4. Integration of domestic financial markets with global markets increases the risk of global ups and downs impacting domestic markets.
Safeguards in current bill
1.Cap of 49% will be a composite cap comprising of both FDI and portfolio investment
2. Incremental equity should be ideally used for expansion of capital base i.e increased limit can not be used to buy out stake of existing Indian investors but to infuse new capital
3. Management and control of company shall remain in Indian hands
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Post by Mr. S on Mar 17, 2015 9:10:29 GMT 5.5
What are the advantages of increasing the cap in Insurance sector apart from government raising more funds ? 1- Insurance sector has the capability of raising long-term capital from the masses, as it is the only avenue where people put in money for as long as 30 years even more. An increase in FDI in insurance would indirectly be a boon for the Indian economy.it helps in channelising savings to increase the productive capacity of the country. 2- Involvement of the foreign partner can bring technological advances and underwriting competencies that will benefit our market. a new regime of awareness and need-based insurance plans coming in the market. 3- Pave the way for some important reforms.like empower the regulator and allow it to take ongoing decisions within a framework. 4- Favorable to the Pension Sector –This is because the Pension Fund Regulatory Development Bill links the FDI limit in the pension sector to the insurance sector. 5- Consumer Friendly – The end beneficiary of this amendment will be common men. With more players in this sector, there is bound to be stringent competition leading to competitive quotes, improved services and better claim settlement ratio. 6- Increased Insurance Penetration– With the population of more than 100 crores, India requires Insurance more than any other nation. However, the insurance penetration in the country is only around 3 percent of our gross domestic product. This is far less as compared to Japan which has an insurance penetration of more than 10 percent. Increased FDI limit will strengthen the existing companies and will also allow the new players to come in,thereby enabling more people to buy life cover. 7-Level Playing Field – With the increase in foreign direct investment to 49 percent, the insurance companies will get the level playing field. So far the state owned Life Corporation of India controls around 70 percent of the life insurance market. 8- With greater competition cost of premium will come down.
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Post by talespin90 on Mar 17, 2015 16:54:29 GMT 5.5
Q. Impact of ISIS and other terrorist outfits of central Asia and Northern Africa on India's political, economic and social regime?
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Post by Mr. S on Mar 18, 2015 16:32:53 GMT 5.5
pakistan is ready to give INDIA non-discriminatory market access (NDMA)status,instead of giving MFN.Pakistan thinks if MFN given to INDIA, INDIAN goods will flood Pakistan.
what are the points of differences b/w NDMA and MFN ?? any idea??Friends throw some light on this.
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Post by talespin90 on Mar 18, 2015 17:01:03 GMT 5.5
pakistan is ready to give INDIA non-discriminatory market access (NDMA)status,instead of giving MFN.Pakistan thinks if MFN given to INDIA, INDIAN goods will flood Pakistan. what are the points of differences b/w NDMA and MFN ?? any idea??Friends throw some light on this. There is technically no difference between a NDMA and MFN status apart from MFN being a multilateral agreement backed by WTO whereas NDMA being a bilateral treaty signed on the basis of mutual understanding between two countries
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Post by Mr. S on Mar 18, 2015 17:04:25 GMT 5.5
wat i have come to understood about terms NDMA and MFN is bot are equivalent to each other.reason pakistan giving NDMA instead of MFN is just to soothe the apprehensions in political and social circles that how arch rival INDIA canbe Most favoured by PAK.so it is just a camouflage.
also ,another difference is MFN is under rules of WTO but now by coining term NDMA WTO rules wll not be in consideration. with NDMA now it has become purely BILATERAL AFFAIR.
any other views??
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Post by Mr. S on Mar 18, 2015 17:06:30 GMT 5.5
pakistan is ready to give INDIA non-discriminatory market access (NDMA)status,instead of giving MFN.Pakistan thinks if MFN given to INDIA, INDIAN goods will flood Pakistan. what are the points of differences b/w NDMA and MFN ?? any idea??Friends throw some light on this. There is technically no difference between a NDMA and MFN status apart from MFN being a multilateral agreement backed by WTO whereas NDMA being a bilateral treaty signed on the basis of mutual understanding between two countries Agreed,it is just a new mask...
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Post by Mr. S on Mar 18, 2015 17:15:07 GMT 5.5
can Any polscience student explain to me the meaning of following terms frequently used in political circles with examples??if possible differences too..
Far-left,Left Center, Center , Center-right ,Far-right,Ultra-leftism etc..
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Post by Mr. S on Mar 19, 2015 21:59:26 GMT 5.5
Q. Impact of ISIS and other terrorist outfits of central Asia and Northern Africa on India's political, economic and social regime? attaching one of my note prepared regarding ISIS and its implications for INDIA.. friends plz review my answer..
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Post by Mr. S on Mar 21, 2015 20:19:54 GMT 5.5
"Eminent domain" of central government??can any body give some info about the scope,elements and other related aspects associated with eminent domain of central govt in INDIA, if we apply this doctrine to recent Land acqusition Act.
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Post by Lisbeth Salander on Mar 24, 2015 14:26:24 GMT 5.5
How to get it right on coal: To get bids, fix flaws in coal auctionsIn an interview to this paper on Monday, the coal secretary said that 204 coal blocks would be auctioned off by March 2016. That does look like an overly optimistic target: of the 30-odd coal mines auctioned so far, the government has already cancelled three, and eight more are under scrutiny for alleged irregularities. Moreover, at least one of the players — whose winning bid has been scrapped — has gone to court. The secretary says that some bids were ‘outliers’; it had earlier been alleged that there was ‘cartelisation’ between bidders. Actually, the auction design is wrong: floors are set for the number of bidders, commercial miners are not allowed to participate and, most damagingly, all the coal being auctioned now is for so-called ‘captive’ miners. These companies mine as an ancillary to other activities, like making metals or generating electricity. These are not the most efficient companies to engage in mining; that should be left to specialised entities who can compete with state-owned Coal India (CIL), which has a monopoly on merchant mining. This will create a large number of independent suppliers and buyers, required to create a functioning market. Yet, the government is cagey about allowing specialised miners into the sector. It says it will move incrementally, awarding captive mines first, then allocating some to state governments, and then, maybe, opening the door a crack for specialised private miners. In this process, the line between free and fair auctions — and discretionary allocations, for which the UPA regime was blamed — has got blurred. The shale energy revolution in the US and a global slowdown have led to a crash in international coal prices: from around $150 per tonne in mid-2008, to around $40 today. These low rates, close to CIL’s current price, will persist for a long time. So, buyers now have the option of importing cheap coal, as well as buying from CIL or participating in auctions. If it wants bidders, the government must first scrap the current auctions, fix flaws in its design and open it up to all players, immediately. ET
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fubar
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Post by fubar on Mar 25, 2015 22:19:51 GMT 5.5
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fubar
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Post by fubar on Mar 26, 2015 17:02:42 GMT 5.5
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fubar
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Post by fubar on Mar 28, 2015 13:08:26 GMT 5.5
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fubar
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Post by fubar on Mar 28, 2015 23:15:39 GMT 5.5
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Post by Lisbeth Salander on Mar 29, 2015 23:12:51 GMT 5.5
A request. When you share the links, it would be of great help if you could post the highlights of the article too. That way, even if I don't visit your blog, I get to know what the article contains. Lisbeth
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Post by Lisbeth Salander on Mar 29, 2015 23:22:30 GMT 5.5
Law against religious conversions would go against the fundamental right of choice The intent of the constituent assembly was to allow each citizen to profess any religion and to propagate it as well. By Sanjay HegdeBR Ambedkar declared in 1935: " I was born a Hindu; I had no choice. But I will not die a Hindu because I do have a choice." On October 14, 1956, two months before his death, he along with nearly six lakh of his followers left Hinduism to become Buddhists. As chairman of the drafting committee of India's Constitution, he codified freedom of religion, legal equality and abolished caste discrimination. His life experiences and precepts continue to influence interpretations of the Constitution, and particularly in the determination of the original intent of the framers. The intent of the constituent assembly was to allow each citizen to profess any religion and to propagate it as well. It was TT Krishnamachari who explained the formulation best: "Sir, it does not mean that this right to propagate one's religion is given to any particular community or to people who follow any particular religion. It is perfectly open to the Hindus and the Arya Samajists to carry on their Suddhi propaganda as it is open to the Christians, the Muslims, the Jains and the Buddhists and to every other religionist, so long as he does it subject to public order, morality and the other conditions that have to be observed in any civilised government. So, it is not a question of taking away anybody's rights. It is a question of conferring these rights on all the citizens and seeing that these rights are exercised in a manner which will not upset the economy of the country, which will not create disorder and which will not create undue conflict in the minds of the people." An Informed ChoiceThus the founding fathers wanted religious beliefs to be transacted in the marketplace of ideas. They wanted the citizen to be able to exercise an informed choice, if he so chose. They also expected the transactions not to be economically or socially disruptive. They chose therefore not to have a state religion or a preferred religion, and to allow the citizen a freedom to both profess and propagate whatever religion he chose to. A separation of church and state was accompanied by an indifference to the choice of faith professed by the individual citizen. What the founding fathers wrought has been slowly eroded away since the 1980s. The Shah Bano controversy and the Mandal-Mandir phase of Indian politics began highlighting identities marked by sectarian lines. For both the citizen and the state, religion has been moved from benign neglect to malign observance. To add to the inner fissures that beset the country, the world has also seemingly moved towards a clash of civilisations. Since the elections of 2014, conversions, re-conversions and matters of faith have been debated with unprecedented fervour. A mandate for economic change may get derailed by a quagmire of religious conversion and re-conversion. Religions have been accused of increasing their follower count by unfair means of force, inducement and coercion. Equally, some religious convertors have claimed that reversion to ancestral faiths is not a conversion, but a homecoming of sorts. When such arguments continue, with an eruption of petty violence against religious places, what has suffered is the image of the country as a relatively tolerant, multi-faith, stable democracy. This diminution of image may soon lead to rating agencies upping the country risk profile which would raise the cost of foreign debt as well as insurance rates. It is in this background that suggestions have been made for a total nationwide ban on religious conversions of any sort. A total ban is just not possible. Governments or organisations that want to ban, restrict or regulate religious conversions would have to overcome or abridge the fundamental right under Article 25 of the Constitution which is available to all persons in India — citizen and non-citizen alike. It says, "Subject to public order, morality and health... all persons are equally entitled to freedom of conscience and the right freely to profess, practise and propagate religion." Right to ChooseA plain reading tells you that the fundamental right is all about choice. One can choose to believe or disbelieve in religion. That is freedom of conscience. If you choose to believe, you cannot be restricted in your choice of religion. You cannot be confined in choice to follow the religion of only your parents or ancestors. Not only does a citizen have unlimited choice, his manner of choice is unrestricted. He may follow religious practices from more than one religion. He may respectfully participate in another faith's rituals or may even embrace them as his own. When does participation in alien ritual morph into embrace of a new belief is a question the participant too may be unable to answer. A state inquiry into the religious beliefs of its citizens is unlikely to reveal much but might alienate many. Free men, free minds and a free commerce of ideas is the basis of all progressive economics. It is impossible to restrict, regulate or outlaw human choice, in something as deeply personal as a man's relationship with his maker. The idea that a man is bound to the religion of his birth is to deny him the possibility of choice in his method of salvation. A democratic state can only enable that choice and not restrict or regulate it. (The writer is a Supreme Court lawyer) -- ET
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fubar
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Post by fubar on Mar 30, 2015 23:57:25 GMT 5.5
A request. When you share the links, it would be of great help if you could post the highlights of the article too. That way, even if I don't visit your blog, I get to know what the article contains. Lisbeth Thanks for your valuable suggestion.
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fubar
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Post by fubar on Mar 30, 2015 23:58:26 GMT 5.5
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fubar
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Post by fubar on Mar 31, 2015 21:32:03 GMT 5.5
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Post by Mr. S on Mar 31, 2015 22:00:07 GMT 5.5
Video session on "How to Write Good Essay" and Free Essay Test By Manoj K Jha Procedure to participate » Go through the "Essay Writing Orientation Video". » Download essay test paper and write the test. » Email scanned pdf copy at info@iasscore.in to get it evaluated. » Only after writing the test Click on "Discussion Video". » After discussion video, download "Model Essay and How to Write Good Essay" » Once you will send the essay paper, we will evaluate it and send back to you within a week with proper feedback. Telephonic session will be conducted for top 50 aspirants for doubt clearing with prior information. Note: Essay will be evaluated only for 200 aspirants on "first come first serve" basis. iasscore.in/essay-orientation.phpNote- I am neither ambassador of this coaching nor staff for this coaching.I just got to know about this.so i am posting this info here,just for the benefit of members here.All CSE Enthusiast click on above link,read and write your essay .
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Post by Deleted on Apr 1, 2015 20:49:54 GMT 5.5
1. India's interests in Yemen crisis 2. Importance of inner party democracy
1. Anti-malaria drugs being developed and tried in India: How are they better than the existing one? 2. "Operation Rahat"
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Post by Mr. S on Apr 1, 2015 20:57:41 GMT 5.5
1. India's interests in Yemen crisis 2. Importance of inner party democracy 1. Anti-malaria drugs being developed and tried in India: How are they better than the existing one? 2. "Operation Rahat" hehe..Thanks @nkit you are back wid your daily quest..gud news
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fubar
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Post by fubar on Apr 1, 2015 21:19:03 GMT 5.5
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fubar
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Post by fubar on Apr 2, 2015 18:05:37 GMT 5.5
today's news item : essenceias.blogspot.in/2015/04/2-apr.html it contains news item about pictorial warning on tobacco products. The details about foreign trade policy 2015-20 will be published soon on the blog. keep following...
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