Category: Finance/Economy

India and China, the world’s two most populous countries, have long had a competitive relationship and have emerged as major economic powers. But in the digital space, China has a clear advantage. Since Pew Research Center began tracking advanced technology adoption in the two countries in 2013, the Chinese have consistently reported rates of internet and smartphone use that are at least triple that of Indians. That trend has continued through 2016.

In our latest poll, 71% of Chinese say they use the internet at least occasionally or own a smartphone, our definition of internet users. In contrast, only 21% of Indians say they use the internet or own a smartphone.

The gap between China and India is similarly large when it comes to smartphone ownership alone. Nearly seven-in-ten Chinese (68%) say they own one as of spring 2016, compared with 18% of Indians. Reported smartphone ownership in China has jumped 31 percentage points since 2013, but only 6 points in India over the same time period. And while virtually every Chinese person surveyed owns at least a basic mobile phone (98%), only 72% of Indians can say the same.

The digital divide between the two countries mirrors differences in their broader economic trajectories. Between 2001 and 2011, the share of middle-income Chinese, those making $10.01-$20 a day, jumped from 3% to 18%. In India over the same decade, the middle class share of the population grew from 1% to 3%. In 2015, China’s gross domestic product per capita (PPP) was over five times that of India. Our own research has shown a strong correlation between per capita income and levels of internet access and reported smartphone ownership. Furthermore, some analysts have argued that Chinese investment in digital infrastructure accounts for China’s technological lead over India.

In addition to the difference between China and India, digital divides persist within the countries. As is the case across much of the world, younger, more educated and higher-income Chinese and Indian people are more likely to own a smartphone than their older, less educated and poorer brethren.

For example, 94% of Chinese ages 18 to 34 own a smartphone, compared with only three-in-ten Chinese age 50 and older. And nearly four-in-ten Indians with a secondary education or more (38%) own a smartphone, compared with only 9% of less educated Indians. The gap holds for Chinese and Indians above and below their respective countries’ median incomes.

There is also an urban-rural gap on smartphone ownership. More urban Chinese (72%) own a smartphone compared with rural Chinese (63%), and the same goes for urban Indians (29%) compared with rural Indians (13%). In India, there is a gender gap on smartphone ownership. Indian men (23%) are more likely than women (14%) to own a smartphone.

And one more digital gap exists between China and India: social media use. Six-in-ten Chinese say they use social media, compared with only 14% of Indians. Much of this disparity is due to the fact that more people have access to the internet in China. Nearly two-thirds of Indians with internet access (65%) say they use social media. Still, this figure among the Chinese is 84% and has increased sharply since we first began asking the question in 2013.

Note: See here for topline results of our survey, a list of smartphone and social networking examples used in each country and methodology.

With the economic inequality and the middle class being left behind becoming major themes in the pre and post election seasons, Neel Kashkari, president of the Federal Reserve Bank of Minneapolis has launched a new research institute  that will be focused on economic inequality, stepping outside the traditional bounds of the central bank’s focus on monetary policy.

Described as ‘Opportunity and Inclusive Growth Institute’, the new initiative will conduct and promote research that increases economic opportunity and inclusive growth for all Americans.

Ohio-born Kashkari, who has a bachelor’s and a master’s degrees in mechanical engineering, both from the University of Illinois at Urbana-Champaign, and an MBA from the Wharton School at the University of Pennsylvania, has taken a nontraditional approach to solving problems as Federal Reserve president of Minneapolis. In contrast to many Fed officials, he has no training as an economist.

“Travelling around the Ninth District has helped me understand the economic challenges that we face in our region. Too many families rightly feel that their kids don’t have access to a bright future,” Kashkari said in a press statement.

“While this Institute will bring together the best academic scholarship from around the nation, the intended effect is on the personal level, helping families and communities improve their prospects,” he said.

Speaking at the Minneapolis Urban League recently, Kashkari said by supporting scholarship on issues of economic inequality, the institute will help direct policy makers outside the Fed toward potential solutions. While the solutions may not be imposed by the Fed, the institute’s research would be part of fulfilling the central bank’s goal of maximum employment, Kashkari said.

The initiative was described by Federal Reserve Board Chair Janet Yellen as an important initiative with potential for finding economic opportunity for people. “The Opportunity and Inclusive Growth Institute is an important research initiative focusing on some of the most pressing economic issues we face as a nation,” Yellen said in a statement.

“This work has the potential to help more Americans find real economic opportunity. I hope that scholars inside and outside the Federal Reserve System will contribute to this important work,” she said. The Institute, based at the Minneapolis Fed, is a long-term commitment designed to engage a broad range of scholars. It will look beyond aggregate economic indicators to examine how national policies impact diverse communities of people within the U.S. economy.

Such scholarship, Keshkari said, will allow the Federal Reserve System to better achieve one of its primary missions – maximum employment – and generate important new insights for other policymakers and the public.

The Institute will adopt a multidisciplinary approach that includes the participation of leading academics from a variety of fields, including economics, education, law, public health, public policy and sociology. A distinguished group of academics have joined the advisory board to help launch the Institute, including Raj Chetty, professor of economics at Stanford University and Greg Kaplan, professor of economics at the University of Chicago.

By Sumani Dash, Director and Country Head, USA and Canada

CII in partnership with the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry and the State Government of Andhra Pradesh is organizing the 23rd edition ofThe Partnership Summit 2017 from 27-28 January 2017 at The APIIC Grounds, Harbour Park, Visakhapatnam, Andhra Pradesh.

Ms Nirmala Sitharaman, Minister for Commerce and Industry is the Chair of this most prestigious initiative and under the leadership of Shri N Chandrababu Naidu, Chief Minister of Andhra Pradesh, State Government of Andhra Pradesh will be the Partner State for the Summit.

India Inc. has been gathering at the Partnership Summit since the last few decades making it “the” forum underlining convergence of thoughts and ideas among Heads of States and Governments, Ministers, policy makers, CEOs, academicians and thought leaders paving the way for collective and inclusive global progress.

Resonating the constructs of all previous editions, the forthcoming edition of the Summit too will feature Policy Makers, CEOs, Academicians and thought leaders from all over the world. The programme includes Plenary Sessions specially designed for the Summit as well as ‘thematic’ interactions with G2G Ministerial Groups, Global and Indian CEOs to name a few. The presence of renowned Global Commentators, Economists and Global Social icons is also expected.

Plenaries will focus on discussions surrounding topics such as:  Towards Achieving Sustained Economic and Trade Growth: Can India Lead?; Innovating Partnerships for Sustainable Development; Industry 4.0: Leveraging for Efficiency, Adaptability, Productivity (LEAP); India-US Relations: What Does the New Administration Have in Store?; India’s Integration with South and Southeast Asia; Industrial Corridors along the Coast : Paving the Way for Special Blue Economic Zones; Going Sub-regional: Is it the new formula for unlocking potential?; Global Financial Architecture: Financing for Growth and Stability; Trade in Services and other Instruments for New-Age Trade Negotiations

There will also be sector specific deliberations and structured B2B meetings in the areas of Aerospace and Defense; Textiles and Apparel; Automobiles; Agriculture and Food Processing; Biotech and Pharma; Electronics among others. For more details regarding online registrations you may please log onto www.partnershipsummit.com

Mineola, New York – Nassau County and Comptroller George Maragos’ Office were presented with the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association of the United States and Canada (GFOA).  This prestigious GFOA award is for exhibiting excellence in the financial reporting of Nassau County’s 2015 Comprehensive Annual Financial Report (CAFR), issued in 2016. This is the seventh consecutive year that the Comptroller’s Office under George Maragos has received this recognition.

The Certificate was presented to Nassau County Comptroller George Maragos as the individual primarily responsible for preparing the award-winning year-end financials (CAFR).  According to the GFOA, the Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government and its management.

“I congratulate the accounting staff of my office for their expertise and dedication, who every year meet and exceed the highest professional standards in financial reporting,” said Comptroller George Maragos. “ I am proud that the GFOA continues to recognize their extraordinary efforts in  providing to the residents of Nassau County an accurate and timely accounting of how their money has been spent.”

Nassau County’s Comprehensive Annual Financial Report (CAFR) includes general-purpose financial statements, as well as the independent auditor’s report prepared by RSM US LLP. The Nassau County CAFR can be viewed at http://www.nassaucountyny.gov/DocumentCenter/View/16924

By Chandrakant Pancholi, Overseas India Press

Let me be brief, please.

1. Take the Indian Banks first. Deposited money before November 8 or after that date is not their personal property. Banks are just fiduciaries holding the money and are supposed to return any or all money instantly when depositors demand.
2. If Government of India or its administrative branch Reserve Bank of India dictates that depositors can withdraw only a little sum of money and not all the money belonging to depositors, then, ‘it is taking away property without due process of law,’ as the money belongs to the depositors. Order to withdraw only some money and not all if the depositor wishes so, is denial of using part of its property and Government cannot do so without a competent court ordering as such after hearing both parties. Property cannot be taken away without due compensation and that too, only after hearing all parties affected. So, on both counts, suits can be filed asking for :  (a) immediate cancellation of the limited withdrawal orders and (b) compensation to each depositor who was thus harassed by the illegal action, money for standing in line for days, pain, suffering and loss of use of money during the period the illegal orders were in force.
3. A temporary injection against government’s illegal actions can be asked for, too.
4. Democracy is a rule of law and not the personal fiefdom of a Prime Minister or any party. Once they have to pay compensation to each depositor and lift the illegal orders, their sanity is likely to return to normalcy.

(Chandrakant Pancholi, New York, N.Y, is a lawyer and a Journalist, originally from India)

Worldwide, an estimated $582 billion was sent by migrants to relatives in their home countries in 2015, a 2% decline from 2014, when the amount was $592 billion, according to economists at the World Bank. This is the first drop in global remittances since 2009, when they fell by $28 billion amid the global financial crisis. Despite this recent decline, remittances sent by migrants are still about double what they were a decade ago, before the sharp decline in the global economy during the late 2000s. And, with the exception of 2009, migrant remittances worldwide have steadily climbed since the World Bank began releasing estimates in 1970.

The volume of migrant remittances is closely tied to the increase in migrant populations. The number of international migrants (people who live in a country other than their birth country) has grown from about 191 million in 2005 to more than 243 million today even as the share of the world’s population that are migrants has remained steady at about 3%. The U.S., which has more migrants than any other country, is also the source of more remittances than any other country. Migrant remittances from the U.S. continue to go up even though migration to the U.S. from Mexico has slowed and possibly reversed. (Mexico is the largest receiving country of remittances from the U.S.)

Oil prices are affecting the global level of remittances. For example, some top remittance-sending countries like Saudi Arabia, United Arab Emirates, Kuwait and Qatar are oil-rich nations that saw their economic growth slow in 2014 and 2015 as oil prices fell. This has left thousands of migrants jobless. As a result, preliminary evidence suggests remittances to India fell between 2014 and 2015. Overall, an estimated 8 million Indian-born migrants (or about half of all of India’s emigrants) live in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE as of 2015.

Migrant remittances can also move up and down as the economies of countries that are highly dependent on migrant labor fluctuate. For example, remittances sent by the large number of migrants in Russia have fallen sharply recently. In particular, remittances from Russia to neighboring countries like Turkmenistan and Uzbekistan dropped by nearly half between 2014 and 2015. This decline is particularly significant since remittances were equivalent to about a quarter or more of some Central Asian countries’ gross domestic products in 2014.

One of the unknowns of remittance trends is how the recent refugee crisis in Europe and the Middle East may affect the sending of money around the world. Given that nearly one in 100 people are displaced worldwide within and outside their countries of birth and 9% of all international migrants are refugees, estimates for flows of money back to or from their home countries are largely unavailable.

Sanjay Valvani, a portfolio manager at Visium Asset Management who was charged with insider trading last week, was found dead on Monday, June 18th night. The 44-year-old Sanjay Valvani’s body was discovered by his wife in their Brooklyn, N.Y. home. Valvani, who was on the floor of their bedroom, had a wound on his neck and a knife near the body. Valvani’s wife also discovered a suicide note, according to a spokeswoman from the New York Police Department.

Valvani was accused of committing securities and wire fraud with a former senior Food and Drug Administration official, Gordon Johnston, from about 2005 through 2011. Valvani “unlawfully obtained highly confidential and material nonpublic information from the FDA about the agency’s approval of pending generic drug applications,” according to the US attorney’s statement. Valvani was also charged with passing material nonpublic info to Chris Plaford, a former Visium portfolio manager, who allegedly traded on that info. Johnston and Plaford have pleaded guilty and admitted their participation in the scheme.

Valvani had turned himself in to authorities last week, after having been charged with netting about $25 million for an unnamed investment firm using inside information on the pending approval of a generic drug. Valvani had pleaded not guilty.

“This is a horrible tragedy that is difficult to comprehend,” Valvani’s lawyer, Barry Berke, and partner Eric Tirschwell said in a statement. “We hope for the sake of his family and his memory that it will not be forgotten that the charges against him were only unproven accusations and he had always maintained his innocence.”

Visium had placed Valvani on leave earlier this year after it announced that it was under investigation. The hedge fund said on that it would shut down its operations. Valvani had faced numerous charges, according to the complaint:

The complaint said Valvani instructed Johnston, the former FDA official, about the status and approval of a generic drug, and Johnston passed along that info back to Valvani. Valvani was accused of using that info to bet on two pharma companies that were likely to be affected by the inside tip, allegedly netting about $25 million in trading profits. Valvani was also accused of tipping off Plaford on this info. A representative for the Department of Justice declined to comment on whether Valvani’s death would affect the case.

“This is a horrible tragedy that is difficult to comprehend. Sanjay Valvani was a loving father, husband, son and brother and committed friend, colleague and mentor,” Valvani’s lawyers, Barry Berke and Eric Tirschwell wrote in a statement. “We hope for the sake of his family and his memory that it will not be forgotten that the charges against him were only unproven accusations and he had always maintained his innocence.”

The case, which is one of biggest to hit the hedge fund industry in the past few years, could also mark the end of Visium. Though Visium, headed by Jacob Gottlieb, has not been charged with any wrongdoing, it sold one fund and shut down the rest just days after the SEC charged Valvani,

Valvani, who had been with the firm since its inception in 2005, was put on paid leave in April, when Visium revealed it was under federal investigation. Valvani had followed Gottlieb from Balynsny Asset Management to Visium. “Given the uncertainty relative to the final outcome of the recent regulatory developments, the negative impact of the resulting publicity, and the substantial investor withdrawals, it became clear that maintaining the status quo was increasingly untenable,” Gottlieb wrote in a letter to investors, the Wall Street Journal reported.

“In the beginning, I really had to convince Jacob Gottlieb that I was hungry to join his hedge fund,” Valvani said in a 2012 profile for Duke’s Fuqua School of Business. “But I believed in myself, my education and my experience. I work hard and try to be the best at what I do, which is why a hedge fund is so suitable for me—here I have a lot of control over my own destiny.”

The percentage of families earning middle-class incomes fell in nearly nine out of 10 major metro areas across the country between 2000 and 2014, according to new research by the Pew Research Center. The study defined middle-class households as those making between two-thirds and twice the national median income. That was roughly $42,000 to $125,000 a year for a family of three in 2014, though adjustments were also made for the cost of living in different areas.

A look at the 100 metro areas with the sharpest decline in the percentage of people in the middle class. In these areas, the middle class declined by more than 4 percentage points. The decline in the New York-Newark-Jersey City area was not as steep, falling from 50.7 to 48.1 percent.

A decline in the middle class doesn’t necessarily mean a decline in income. In some areas, the middle class has been replaced by the upper class (currently, income above $125,000 a year for a three-person household). There isn’t one factor that helps explain why these areas are doing so well. Some, like the Midland, Tex., metropolitan area, are beneficiaries of oil. Others have strong white-collar sectors, like government (in the Washington area) or technology (in the Bay area).

In some areas, the decline of the middle class raised the proportion of people in both the upper class and lower class. The hollowing out of the middle class is rooted in a mix of technological change and globalization rewarding those people whose jobs can’t be outsourced or automated: high-skilled and low-skilled workers. Nearly half of the metro areas that Pew studied have experienced some kind of growth on the low and high end.

Washington:  Swati Dandekar, 65, has been confirmed by the US Senate as the Executive Director of the Asian Development Bank. The Indian-American politician, the first-ever Indian-American to be elected to Iowa House of Representatives in 2003, Dandekar, would replace Robert M Orr, who has held this position since 2010.

“I am looking forward to going to Asia and focusing on renewable energy, clean water, infrastructure, women’s issues, and education,” Dandekar, who will take over her new position in Manila, Philippines, the headquarters of the ADB, said.

She said she feels well-equipped to deal with ADB’s portfolio. “My background in public policy and utilities equips me with the experience, and I do understand a few Asian languages,” which she is keen refurbish, Dandekar said. She served in several positions in education in her home state, starting as a school board member for Linn-Mar school in Iowa.

The ADB which was established in the 1960s, is a regional development bank with 67 member countries, 48 of them from Asia. The financial institution was established with a view to foster economic growth and cooperation in one of the poorest regions in the world, by extending loans. The ADB operations in 2015 totaled $27.17 billion. Its priority areas include energy, infrastructure, telecommunications, clean water, and education, transport and urban development, agriculture and food security, gender issues, and environment and climate change.

President Obama had nominated Dandekar to the top US position in Asian Development Bank (ADB) in November last year. A member of the Iowa House of Representatives for from 2003 to 2009, Dandekar was also member of the Iowa Senate from 2009 to 2011. Thereafter she served on the Iowa Utilities Board from 2011 to 2013. From 2000 to 2003, she was a member of the Vision Iowa Board of Directors.

Dandekar also served on the Linn-Mar Community School District Board of Education from 1996 to 2002 and was a member of the Iowa Association of School Boards from 2000 to 2002. Ms Dandekar received a BS from Nagpur University and a Post-Graduate Diploma from Bombay University. Married to Arvind Dandekar, in 2014 she tried to run for the US House of Representatives from Iowa’s 1st Congressional District, but lost in the primaries. Dandekar and her husband Arvind migrated to the United States in 1973. Arvind Dandekar is the CEO and president of Fastek International, located in Hiawatha, Iowa.

Public sector corruption siphons $1.5 trillion to $2 trillion annually from the global economy in bribes and costs far more in stunted economic growth, lost tax revenues and sustained poverty, the International Monetary Fund said on Wednesday.

In a new research paper, the IMF said tackling corruption is critical for the achievement of macroeconomic stability, one of the institution’s core mandates.

The Fund argues that strategies to fight corruption require transparency, a clear legal framework, a credible threat of prosecution and a strong drive to deregulate economies.

“While the direct economic costs of corruption are well known, the indirect costs may be even more substantial and debilitating,” IMF Managing Director Christine Lagarde wrote in an essay accompanying the paper.

“Corruption also has a broader corrosive impact on society. It undermines trust in government and erodes the ethical standards of private citizens,” Lagarde added.

The paper, titled “Corruption: Costs and Mitigating Strategies,” follows Lagarde’s warning to Ukraine in February that the IMF would halt its $17.5-billion bailout for the strife-torn eastern European country unless it takes stronger action to fight corruption, including new governance reforms.

Lagarde is due to participate in a British government-sponsored anti-corruption summit in London on Thursday that will include U.S. Secretary of State John Kerry and other senior officials including the presidents of Nigeria and Afghanistan.

Extrapolating from 2005 World Bank research, the paper estimated that around 2 percent of global gross domestic product is now paid in bribes annually. But it said corruption’s indirect costs are substantially higher, reducing government revenues by encouraging tax evasion and reducing incentives to pay taxes, leaving less money available for public investments in infrastructure, health care and education.

While some argue that bribes are simply grease for the wheels of commerce, the IMF said that corruption often drives investment away from countries where it is rife and boosts lending costs.

Without naming any particular countries, the IMF said that dependence on non-renewable natural resources can often encourage corruption, as well as conflicts over control of them.

In helping its 189 member countries design and implement anti-corruption strategies, the Fund said it emphasizes the need for both appropriate incentives and deterrents.

The paper said stronger anti-corruption laws and prosecution capacity was needed, but also said that reduced regulations can limit bribe opportunities and provide companies more opportunity to grow without them. “Wherever discretion is granted to an official regarding the approval of an economic activity, there is a risk that this discretion will be abused,” Lagarde wrote.

New York, NY: The United Nations (UN) owes India $62 million – the most it has to pay to any country – for contribution towards peacekeeping operations including troops and equipment, the top official of the world body said. With 7,695 troops, India is currently the second largest contributor among all UN troop contributors to its peace keeping mission around the world. Traditionally, India has been among the largest contributor of troops to UN peacekeeping operations, with nearly 1,80,000 troops having served in over 44 of the 69 peacekeeping operations so far.

As on March 31, 2016, the UN owed troop contributing countries a total of $827 million, including $261 million in troop costs and $480 million for equipment for active missions, Under-Secretary-General for Management Yukio Takasu told reporters here last week.

Of this total, he said the UN owed “the largest amount” of $62 million to India, followed by Bangladesh at $59 million, Pakistan at $49 million and Ethiopia at $47 million. He said money owed to troop contributing nations is “always a source of concern because it is very unfair for them that they provide all the valuable troops, personnel and equipment and they are not reimbursed timely because of financial problems”.

India has repeatedly called for the Security Council to consult troop contributing countries before drawing up peacekeeping mandates given that troops now have to function in increasingly difficult and hostile conflict situations across the world’s hot-spots.

Among the countries that owe the UN money is the US, which has to pay 1.3 billion dollars for peacekeeping and 917 million dollars towards regular budget. Takasu said the world organisation’s financial situation is “sound and positive”, noting, however, that there is “some worry” regarding the areas of regular budget and reserves. “The financial situation of the United Nations is generally sound,” he said.

His overview to the General Assembly’s Fifth Committee, which is tasked with administrative and budgetary concerns, included details on the four main assessment areas of the regular budget; UN peacekeeping operations; international tribunals; and the Capital Master Plan.

Takasu said the organisation’s cash balances were positive at the end of 2015, except for the regular budget, which showed a shortfall of $217 million, which is being funded by a “very small reserve. I think it’s prudent to review the adequacy of the reserves. The regular budget is always tight in the last quarter of the year, and this is expected in 2016. The question is whether the size of the reserve is good enough,” he added.

For the 2015 regular budget, member States were obligated to contribute a total of $2.771 billion, an increase of $159 million from 2014. Payments received were $237 million higher in 2015 than in 2014, Takasu said. Unpaid assessed contributions stood at $1.43 billion as of April 30, 2016, down $163 million from the same period the previous year. For peacekeeping operations, Takasu said the total of unpaid assessments at the end of 2015 was $976 million, reflecting a decrease of $306 million from the previous year.

In an attempt to attract overseas funds, the Govt. of India said non-repatriable investments by nonresident Indians (NRIs), overseas citizens of India (OCIs) and persons of Indian origin (PIOs) will be treated as domestic investments and will not be subject to FDI caps. The Cabinet approved some amendments, including changes in the definition of NRI, to be incorporated in the FDI policy, “Investment by NRIs under Schedule 4 of FEMA (Transfer or issue of security by persons residing outside India).

“Regulations will be deemed to be domestic investment at par with the investment made by residents.” an official statement said. The NDA government, which has liberalized the FDI policy for sectors such as Defense, Railways, infrastructure, medical devices and insurance, is keen to tap NRIs, OCIs and PIOs. The government wants to channelize the funds of NRIs, who now have set up large companies abroad, by treating their non-repatriable investments as domestic investments. NRIs have been demanding from the government that their investments be considered as domestic investments.

A committee set up to look into the possibility of treating non-repatriable NRI funds as domestic investments, had earlier said that NRIs might prefer investing through corporate entities. “It was intended to provide NRIs an incentive to bring funds into India without repatriation rights, at a time when foreign exchange reserves were limited and capital inflows were modest,” the statement said. The provision should continue to incentivize investments by NRIs, including OCIs and PIOs, resulting in increased investments in the country.

“This will enable investments by NRIs, OCI and PIO cardholders under Schedule 4 on non-repatriation basis, across sectors without being subjected to any of the conditions associated to foreign investment,” it said. During the April-February period of the previous fiscal year, FDI rose by 39 per cent to $28.81 billion, as against $20.76 billion in the same period last fiscal year.

Hartford, CT: Ishaan Patel, an 8^th Grader’s Charity has been recognized in Hartford for his efforts to help underprivileged students in the US and around the world with his charity organization, a media report said. Patel, founder of Planting Pencils, was recently honoured by the Milan Cultural Organization during the Republic Day celebration in the legislative office building in downtown Hartford, Bristol Press reported last week.

A son of immigrants from India, Patel attends Kingswood-Oxford School in West Hartford. He created his charity to improve access to education for underserved children around the world.  The Milan association is composed of people from India living in US. It is engaged in promoting the traditional art and culture of India in the US. It organises and participates in cultural events, setting up exhibitions of Indian handicrafts in schools, colleges, educational and cultural institutions, and works with other associations promoting social and civic activities.

“The goals of our organization are to let the values of our culture and heritage contribute to the strength of America, and for us to all be productive participants in the civic and social issues of the bigger community,” said Suresh Sharma, president of Milan Cultural Organization.  Sharma and all the directors of the organisation were impressed by this teenager’s efforts to tackle global education problems.

Nirmal Dhamodarasamy, a graduate student at the University of Illinois at Chicago, has won $1,000,000 playing Powerball on February 6th. The winning numbers were – 04 – 13 – 31 – 36 – 52 – and the Powerball number was 08.

According reports, a few weeks ago, Dhamodarasamy decided to try his luck in a different way, and instead of buying a ticket at a store, he bought a Powerball subscription via the Illinois Lottery’s online sales channel. “It was very convenient to sign up and buy my tickets online,” Dhamodarasamy said. He won $1 million when he matched the five numbers in the Powerball drawing.

Before Dhamodarasamy received an email from the Illinois Lottery notifying him of his win, he already knew he had won. “That same evening, after I purchased my subscription using Quick Pick numbers, I used the Illinois Lottery app to check the winning numbers. My heart started racing when I realized I had won the lottery. I still can’t believe I won a million dollar!”

Dhamodarasamy, 23, originally from India, is completing his master’s degree in industrial engineering. His plans after the windfall, include bringing his parents here from India for his graduation. When asked what prompted him to start playing Powerball online, he said, “The historic $1.5 billion jackpot sparked my interest. I wanted to try my luck even after it hit!”

Thousands of Illinois residents, 18 and over can buy tickets for Powerball and all of the Illinois Lottery’s draw-based games online or at nearly 8,000 retailers statewide. Players can also use the Illinois Lottery’s mobile app.

The free app., the first of its kind in the United States, is available for download on iOS and Android devices and offers any Illinois adult the chance to purchase lottery tickets on their smartphone.

New York, NY: With the number of Indians and Indian Americans reaching the pinnacles of success globally rising every day, Times Now recently announced the launch of the third edition of the “Times Now ICICI Bank NRI of the Year Awards” to celebrate their achievements.

Beginning in October 2015, Times Now and ICICI Bank invited global Indians in the fields of entrepreneurship, philanthropy, academics and business professionals to nominate themselves or someone they know for the awards, at the newly-redesigned website, www.nrioftheyear.com.

The awards are open to any NRI, OC or a PIO who has stayed in the U.S., Canada, UK, UAE, the Middle East, Australia and New Zealand and Singapore for a stipulated amount of time and has made a mark in his/her respective field.

In addition to the categories there are three distinct awards: India’s Global Icon, Popular choice and The Special Jury Award, according to a press release. The entire process of the awards right from the nominations to choosing the winners will have a five-tier evaluation process managed by EY.

The last two editions of the awards have garnered a tremendous response and have witnessed an amazing turnout, added the release. Celebrities, business professionals and entrepreneurs from all walks of life have graced the event before.

From Amitabh Bachchan winning the Global Indian Icon of the Year in the first season to Shah Rukh Khan wining in the second, there has been no dearth of prominent faces coming together for such a noble cause hosted by Times Now and ICICI Bank, the release said.

“With the launch of the third season, Times Now and ICICI Bank aim to take the initiative a notch higher. With extensive multi-media marketing campaigns across all mediums globally, Times Now and ICICI Bank are leaving no stone unturned in recognizing the ones who have caused a change through their work and actions.” All the episodes along with the winner profiles will be broadcasted by Times Now in its global feeds in more than 75 countries.

Washington, DC; January 24, 2016: India is home to the fourth largest population of millionaires in the Asia Pacific region, with 2.36 lakh such high net worth individuals, while Japan topped the list with 12.60 lakh people, a report says. According to the Asia Pacific 2016 Wealth Report, by New World Wealth, India was ranked among the top five Asia Pacific countries in terms of number of High Net Worth Individuals (HNWIs).

HNWIs (millionaires) were defined as those individuals with net assets of $1 million or more. At the end of 2015, there were 12,60,000 millionaires in Japan, while China ranked second with 654,000 HNWIs and Australia was at the third place with 290,000.

Others in the top 10 in terms of number of HNWIs in Asia Pacific include Singapore at the fifth place with 224,000 millionaires, Hong Kong (6th, 215,000), South Korea (7th, 125,000), Taiwan (8th, 98,200), New Zealand (9th, 89,000) and Indonesia (10th, 48,500). Interestingly, India is among the top five Asia Pacific countries in terms of total private wealth held, but at the bottom in terms of per capita income.

India’s total individual wealth stood at $4,365 billion, while China, which topped the list, had a total individual wealth of $17,254 billion. Total individual wealth refers to the private wealth held by all the individuals in each country, including all property, cash, equities and business interests.

Economist Mark Perry wrote that the median Asian American woman earns only about 3 percent less than the median American man, according to the latest Bureau of Labor Statistics data. The median Asian American woman also earns significantly more than the median black or Hispanic man in the United States.

While full-time working women in the U.S. may earn 79 cents on the dollar compared to men, Indian American women actually earn more on average compared to non-Hispanic white men, according to a media report. Full-time working women may earn 79 cents on the dollar compared to men, according to the Census, but that figure doesn’t take into account the gender differences in education and career choices, among other things.

Mark Perry, at the right-leaning American Enterprise Institute, came to this startling conclusion based on an analysis of a new government report on the gap between men’s and women’s earnings.

Education has a lot to do with the Asian-woman advantage. More than half of Asian Americans over 25 have a bachelor’s degree or higher, compared to only 33 percent of non-Hispanic whites. And 21.8 percent of Asian Americans also have graduate or professional degrees, compared to 12.8 percent of non-Hispanic whites.

In other words, Asian Americans are 50 percent more likely to have bachelor’s degrees, and nearly twice as likely to hold PhDs, law degrees, MBAs or MDs. Educational attainment is even higher for some ethnic groups. About 72 percent of Indian Americans have four-year college degrees, and a whopping 40 percent have some professional or graduate degree. Indian Americans are more likely to have advanced degrees than white Americans are likely to have finished college.

Yet, after accounting for race, education, experience, career choice and so on, economists Francine Blau and Lawrence Kahn found that about two-fifths of the gender pay gap remained unexplained by those factors, leaving gender discrimination as a major culprit. Other studies have found that the gender gap is even smaller if you control for college GPA, or take into account the fringe benefits offered in sectors dominated by women.

Chinese American women earn about the same as white men, he concluded, based on data on annual incomes from the 2014 American Community Survey, which are slightly different from the weekly wage data used by the of Bureau of Labor Statistics. And 21.8 percent of Asian Americans also have graduate or professional degrees, compared to 12.8 percent of non-Hispanic whites. Indian Americans are more likely to have advanced degrees than white Americans are likely to have finished college. It’s not surprising then, that Asian Americans tend to out-earn other groups, the Washington Post said.

After more than four decades of serving as the nation’s economic majority, the American middle class is now matched in number by those in the economic tiers above and below it. In early 2015, 120.8 million adults were in middle-income households, compared with 121.3 million in lower- and upper-income households combined, a demographic shift that could signal a tipping point, according to a new Pew Research Center analysis of government data.

In at least one sense, the shift represents economic progress: While the share of U.S. adults living in both upper- and lower-income households rose alongside the declining share in the middle from 1971 to 2015, the share in the upper-income tier grew more.

Over the same period, however, the nation’s aggregate household income has substantially shifted from middle-income to upper-income households, driven by the growing size of the upper-income tier and more rapid gains in income at the top. Fully 49% of U.S. aggregate income went to upper-income households in 2014, up from 29% in 1970. The share accruing to middle-income households was 43% in 2014, down substantially from 62% in 1970.

And middle-income Americans have fallen further behind financially in the new century. In 2014, the median income of these households was 4% less than in 2000. Moreover, because of the housing market crisis and the Great Recession of 2007-09, their median wealth (assets minus debts) fell by 28% from 2001 to 2013.

Meanwhile, the far edges of the income spectrum have shown the most growth. In 2015, 20% of American adults were in the lowest-income tier, up from 16% in 1971. On the opposite side, 9% are in the highest-income tier, more than double the 4% share in 1971. At the same time, the shares of adults in the lower-middle or upper-middle income tiers were nearly unchanged.

These findings emerge from a new Pew Research Center analysis of data from the U.S. Census Bureau and the Federal Reserve Board of Governors. In this study, which examines the changing size, demographic composition and economic fortunes of the American middle class, “middle-income” Americans are defined as adults whose annual household income is two-thirds to double the national median, about $42,000 to $126,000 annually in 2014 dollars for a household of three.3 Under this definition, the middle class made up 50% of the U.S. adult population in 2015, down from 61% in 1971.

The state of the American middle class is at the heart of the economic platforms of many presidential candidates ahead of the 2016 election. Policymakers are engaged in debates about the need to raise the floor on wages and on how best to curb rising income inequality. Meanwhile, President Barack Obama uses the term “middle-class economics” to describe his economic agenda.4 And a flurry of new research points to the potential of a larger middle class to provide the economic boost sought by many advanced economies.5

The news regarding the American middle class is not all bad. Although the middle class has not kept pace with upper-income households, its median income, adjusted for household size, has risen over the long haul, increasing 34% since 1970. That is not as strong as the 47% increase in income for upper-income households, though it is greater than the 28% increase among lower-income households.6

Moreover, some demographic groups have fared better than others in moving up the income tiers, while some groups have slipped down the ladder. The groups making notable progress include older Americans, married couples and blacks. Despite this progress, older Americans and blacks remain more likely to be lower income and less likely to be upper income than adults overall. Those Americans without a college degree stand out as experiencing a substantial loss in economic status.

In addition to changes in the size and economic standing of the American middle class, its demographic profile has changed significantly in recent decades. Some of the changes reflect long-term demographic trends in the U.S., as the middle class is in many ways a mirror of the broader population. For example, the aging of the country, the growing racial and ethnic diversity, the decline in marriage rates and the overall rise in educational attainment are all reflected in the changing composition of the middle class.

In this report, “middle-income” households are defined as those with an income that is 67% to 200% (two-thirds to double) of the overall median household income, after incomes have been adjusted for household size.7 Lower-income households have incomes less than 67% of the median, and upper-income households have incomes that are more than double the median.

The income it takes to be middle income varies by household size, with smaller households requiring less to support the same lifestyle as larger households. For a three-person household, the middle-income range was about $42,000 to $126,000 annually in 2014. However, a one-person household needed only about $24,000 to $73,000 to be middle income. For a five-person household to be considered middle income, its 2014 income had to range from $54,000 to $162,000.8

In addition, the lower-income group is divided into lowest-income households (with income less than half of the overall median) and lower-middle income households (with incomes from half to less than two-thirds of the overall median). In 2014, a lowest-income household with three people lived on about $31,000 or less, and a lower-middle income household lived on about $31,000 to $42,000.9

Likewise, upper-income households are divided into upper-middle income households (with more than twice the overall median income and up to three times the median) and highest-income households (with more than three times the overall median income). In 2014, an upper-middle income household with three people lived on about $126,000 to $188,000, and a highest-income household lived on more than $188,000.

The terms “middle income” and “middle class” are often used interchangeably. This is especially true among economists who typically define the middle class in terms of income or consumption. But being middle class can connote more than income, be it a college education, white-collar work, economic security, owning a home, or having certain social and political values. Class could also be a state of mind, that is, it could be a matter of self-identification (Pew Research Center, 2008, 2012). The interplay among these many factors is examined in studies by Hout (2007) and Savage et al. (2013), among others.

The hollowing of the American middle class has proceeded steadily for more than four decades. Since 1971, each decade has ended with a smaller share of adults living in middle-income households than at the beginning of the decade, and no single decade stands out as having triggered or hastened the decline in the middle.

Based on the definition used in this report, the share of American adults living in middle-income households has fallen from 61% in 1971 to 50% in 2015. The share living in the upper-income tier rose from 14% to 21% over the same period. Meanwhile, the share in the lower-income tier increased from 25% to 29%. Notably, the 7 percentage point increase in the share at the top is nearly double the 4 percentage point increase at the bottom.

The rising share of adults in the lower- and upper-income tiers is at the farthest points of the income distribution, distant from the vicinity of the middle. The share of American adults in the lowest-income tier rose from 16% in 1971 to 20% in 2015. Over the same period, the share of American adults in lower-middle income households did not change, holding at 9%.

The growth at the top is similarly skewed. The share of adults in highest-income households more than doubled, from 4% in 1971 to 9% in 2015. But the increase in the share in upper-middle income households was modest, rising from 10% to 12%. Thus, the closer look at the shift out of the middle reveals that a deeper polarization is underway in the American economy.

Households in all income tiers experienced gains in income from 1970 to 2014. But the gains for middle- and lower-income households lagged behind the gains for upper-income households. The median income of upper-income households increased from $118,617 in 1970 to $174,625 in 2014, or by 47%. That was significantly greater than the 34% gain for middle-income households, whose median income rose from $54,682 to $73,392. Lower-income households fell behind even more as their median income increased by only 28% over this period.

Although 2014 incomes are generally higher than in 1970, all households experienced a lengthy period of decline in the 21st century thanks to the 2001 recession and the Great Recession of 2007-09. The greatest loss was felt by lower-income households, whose median income fell 9% from 2000 to 2014, followed by a 4% loss for middle-income households and a 3% loss for upper-income households.

The Great Recession of 2007-09, which caused the latest downturn in incomes, had an even greater impact on the wealth (assets minus debts) of families. The losses were so large that only upper-income families realized notable gains in wealth over the span of 30 years from 1983 to 2013 (the period for which data on wealth are available).

Before the onset of the Great Recession, the median wealth of middle-income families increased from $95,879 in 1983 to $161,050 in 2007, a gain of 68%. But the economic downturn eliminated that gain almost entirely. By 2010, the median wealth of middle-income families had fallen to about $98,000, where it still stood in 2013.

Upper-income families more than doubled their wealth from 1983 to 2007 as it climbed from $323,402 to $729,980. Despite losses during the recession, these families recovered somewhat since 2010 and had a median wealth of $650,074 in 2013, about double their wealth in 1983.

The disparate trends in the wealth of middle-income and upper-income families are due to the fact that housing assumes a greater role in the portfolios of middle-income families. The crash in the housing market that preceded the Great Recession was more severe and of longer duration than the turmoil in the stock market. Thus, the portfolios of upper-income families performed better than the portfolios of middle-income families from 2007 to 2013. When all is said and done, upper-income families, which had three times as much wealth as middle-income families in 1983, had seven times as much in 2013.

India continues to lead the global consumer confidence index in the third quarter of this year, followed closely by the US and much ahead of China, a global report said last week. Nielsen, a global information and insights provider, in its latest report said in the third quarter of this year, India’s consumer confidence score was at 131 followed by the US (119), Philippines (117) and Indonesia (116).

The US showed the biggest quarterly improvement of 18 points, and Taiwan showed the biggest quarterly decline of 12 points from the second quarter. South Korea reported the lowest score of 49, an increase of four points from the second quarter. India’s score remained at 131, while confidence decreased one point in China (106) and three points in Japan (80).

The Nielsen consumer confidence index among 61 countries measures perceptions of local job prospects, personal finances and immediate spending intentions. During this period, consumer confidence declined in eight of 14 countries in the Asia-Pacific region for an overall score of 106, a decline of one index point from the second quarter, it said.

“Indian consumers continue to declare a resilient outlook in the face of uncertainty in the broader economy,” said Roosevelt D’Souza, senior vice president, Nielsen India Region.

“While their confidence appears to sustain at the previous high levels, the state of the economy, deficit monsoons and volatility in the job market are prevailing issues in the region,” he said in the report.

“That said, the belief in the fundamental prospects of India’s economic future appear unshaken and the proportion of consumers who see brighter days ahead are growing and being reflected in an increase in volume growth within packaged consumer goods,” he said. “Nevertheless, it is possible that any uptick in consumer spending is more likely to be stimulated by smart marketing and a surge in activity led by e-commerce players as we approach the festive season,” D’Souza said.

“With a softer interest rate direction, inflation under control and the outlook that the economy is likely to gradually revive to previous levels over the next 12 months, India’s consumer market will continue to work its way towards a more gradual buoyancy,” he added.

Swati Dandekar, an Indian American and former Iowa state Senator, has been nominated by President Obama to be the United States Director of the Asian Development Bank, with the rank of Ambassador, a White House announcement on November 19^th  stated. She replaces Robert M. Orr, who is resigning from the post. Her nomination will have to be confirmed by the U.S. Senate. “I am confident that these experienced and hardworking individuals will help us tackle the important challenges facing America and I am grateful for their service. I look forward to working with them,” Barack Obama said.

Dandekar, 64, a Democrat made an unsuccessful bid for the U.S. Congress in 2014. Dandekar served in the Iowa House of Representatives from 2003-2009 and in the Iowa state Senate from 2009-2011. Swati Dandekar has been mulling a bid for Congress in 2016 in Iowa’s District 1, which includes Cedar Rapids and Dubuque. It would be Dandekar’s second try for the seat. She has been talking with the Democratic leadership and was expected to make her decision by this summer, she said. What she has been hearing so far is all positive, she added.

She was on the Iowa Utilities Board in 2011, a position she quit in 2013 to run for Congress. She served in the Iowa State House of Representatives from 2002 to 2008, moving on to the Iowa State Senate in 2009, resigning in 2011 to join the Utilities Board.

“I am talking to people about my agenda, which includes education — which has been my passion — creating manufacturing jobs and immigration.” She said she supported the immigration bill passed by the U.S. Senate last summer and is preparing position papers on jobs creation, education and other issues of concern to Iowans. She has a B.S. in Biology/Chemistry from Nagpur University in 1971. She went on to earn her post-graduate diploma in dietetics from Bombay University in 1972.

The ADB, founded in 1966, targets investments in the Asia and Pacific region. The U.S. holds the second largest share in the bank after Japan, and is one of twelve members of the Board of Directors. Headquartered in Manila, Philippines, the ADB has 67 member countries, and offices in Tokyo, Frankfurt and Washington, D.C. The Bank controls approximately $153 billion in subscribed capital.

Kshama Sawant, an Indian-American councilmember on the Seattle City Council a prominent leader in the Socialist Alternative Party, won a decisive victory securing 54.5 percent of the vote and defeating her Democratic Party opponent Pamela Banks by 8 points in District 3.

Though just a city council seat low on the pecking order of power nationally, Sawant’s fiery Socialist rhetoric and activism attracted national attention and drew Democratic presidential candidate Bernie Sanders to make a pit stop in Seattle. The Socialist Sanders’ chances of winning the Democratic ticket against the formidable favorite Hillary Clinton, are low. But for Sawant’s party to support him presents a dilemma because of his affiliation with an “establishment” party that she has persistently attacked as being hand-in-glove with Wall Street and corporate America.

Senator Sanders’ buzz nationally among Millennials and in Seattle, may have given some kind of boost to Sawant’s campaign, she readily admitted during an interview with News India Times. But she was highly critical of the former Burlington, Vermont, mayor and his strategy. Yet, she conceded that while pundits had written Sanders’ political obituary, he had enthused a whole section of a hitherto disinterested public.

The Democratic Party undoubtedly had it in for Sanders, Sawant claimed. “The apparatus of the Democratic Party is clearly not on his side,” she said, adding, “What Sanders is talking about is not what the Democratic Party can get us.” So Sanders needs to do “real” organizing work at the grassroots level, building a base with labor unions and the broader working class movement and not depend on established parties. “That’s a fatal mistake,” Sawant said.

Sawant ran a well orchestrated grassroots campaign with more than 600 volunteers knocking on 90,000 doors, she said following her victory. Her campaign raised more money than her opponent, in what turned out to be the most expensive council race in Seattle’s history. Sawant described her’s as a “working class” campaign with 30 unions behind her, offering an independent alternative to what she described as “right wing” Republicans and a “Wall Street-driven Democratic Party machine.”

Sawant sounded gratified by the support young people in Seattle had extended to her, including Indian-Americans. “They see a role for themselves when they see a person like myself,” she said, adding, “I’m so happy that through victories we are able to provide the counter to the Nikki Haleys and Bobby Jindals,” she said referring to the Indian-American Republican governors of South Carolina and Louisiana respectively. She wants to see an alternative to the Wall Street image of Indian-Americans. Sawant criticized the “model minority” image bestowed on the Indian-American community, calling it an “insidious and divisive idea.”

She acknowledged the several Indian-Americans heading grass-roots organizations such as Bhairavi Desai of the New York Taxi Workers Alliance, Saru Jayaram, organizer of restaurant workers and fast-food chains; and Vanita Gupta, now the head of the U.S. Justice Department’s Civil Rights Division. This victory belongs to socialists and working class people everywhere. Together, we have a world to win,” the campaign team added.

Indian Americans are less stressed at the workplace than they were at jobs in their homeland, a new survey has concluded. According to a recent survey of nearly 500 people of Indian origin living in the United States who send money back to their home, by international money transfer firm Transfast published Oct. 21, not only do Indian Americans feel less stressed, they believe they are overqualified for their U.S.-based jobs.

Despite the latter, the Indian Americans surveyed still say that the United States is the land of opportunity. The majority also says they plan to retire in India. Roughly 83 percent of those surveyed claim to have more skills than what their job requires, with 62 percent saying the U.S. workplace is less stressful from what they experienced in India.

The survey also revealed that though 64 percent feel they earn what they expected to make, about 61 percent said they work longer hours in order to reach that income – with 60 percent saying they work more than 40 hours a week. Just 39 percent claim to work less than expected, according to the Transfast survey. It added that 83 percent agree the jobs in the U.S. offer more opportunities for growth than in India.

“People who come here for work are playing vital economic roles by contributing to the U.S. economy and also adding to the GDP of their home country when they send money back to family and friends,” Transfast CEO Samish Kumar said in a statement. “To Transfast, the survey results show that our mission of always providing great value for your money plays a role in helping our customers succeed, because, when you’re working long hours, every dollar saved matters.”

When sending money to India, 90 percent of those surveyed said they ship money to family; 31 percent said they send their money to a personal bank account; and 10 percent said they have sent money to a real estate investment and friends. Transfast took its survey to another level. After receiving the data from Indian Americans, they conducted the same survey for immigrants of all nationalities living in the U.S.

Where most Indian Americans felt the U.S. workplace was less stressful, 72 percent in the second survey of all nationalities said the U.S. workplace was more stressful. In addition, only 37 percent in the second survey said they earned what they expected, 27 percent less than the Indian American respondents.

And in terms of retirement, Indian Americans responded with 55 percent saying they expect to retire in India. In the second survey, however, only 18 percent of the respondents said they plan to retire in their home countries.

The number of people living in extreme poverty around the world is likely to fall to below 10 percent of the global population in 2015, according to a forecast released by the World Bank last week. The forecast used a new international poverty line of $1.9 a day, an upgrade from the previous line of $1.25 a day, which was set in 2005, reports Xinhua.

The upgraded poverty line incorporated new information on differences in the cost of living across countries and preserved the real purchasing power of the previous line. The reason for the World Bank to adjust the poverty line is to correct for the fact that prices had risen since 2005 and $1.25 now would no longer buy what it bought in 2005, said the World Bank chief economist Kaushik Basu in a blog post.

The method used to upgrade the poverty line was to take the average inflation in the poorest nations of the world and raise the nominal poverty line in order to hold it constant in real terms, according to Basu. Using the new line, the World Bank projected that global poverty will fall from 902 million people or 12.8 percent of the global population in 2012 to 702 million people, or 9.6 percent of the global population this year.

The continued major reductions in poverty were due to strong growth rates in developing countries in recent years and investments in people’s education, health and social safety nets, said Jim Yong Kim, president of World Bank Group.

In order to further reduce poverty and boost shared prosperity, the World Bank president called on countries to boost broad-based growth that generates sufficient income-earning opportunities to invest in areas such as education, health and sanitation, and to protect the poor and vulnerable against sudden risks of unemployment, hunger, illness and other calamities.

The free fall in rupee value is expected to continue in the short term, as the US starts discussions on an interest rate hike and global recessionary fears prompt risk aversion by investors, experts said last week. However, a monetary easing by the Indian central bank could arrest the rupee’s downward trajectory in the turbulent times.

“With US Federal Reserve (US Fed) again raking up interest rate hike discussion, global equities may start off negatively in coming week and the impact will be seen in the rupee as well,” Hiren Sharma, senior vice president, currency advisory at Anand Rathi Financial Services, told IANS.

The US Fed did not raise interest rates from near zero levels, that it has maintained for a decade or so, during the Federal Open Market Committee (FOMC) held on September 17. Fears that it may soon announce a hike has spooked global investors.

A hike in interest rates by the US Fed will send shock waves across the world’s capital markets.

A rate hike could potentially lead to massive amounts of pull-back of foreign funds from emerging economies like India. The US dollar will also strengthen against emerging market currencies, gold and other asset classes.

High interest rates in the US are expected to wean away foreign portfolio investors (FPIs) from India. It is also expected to dent business margins as access to capital from the US will become expensive.

“Markets are still in a consolidation zone, post August sell-offs… I expect, risk aversion to resume soon… Global recessionary fears are there… Talk of US Fed hike is not helping much,” said Anindya Banerjee, associate vice president for currency derivatives with Kotak Securities.

Notwithstanding the fears of further downward trajectory, the rupee can rely on the fact that the India Inc and global investors are betting at a cut in key lending rates by Reserve Bank of India (RBI).

The RBI will decide on whether or not to ease the key lending rates during its upcoming monetary policy review slated for September 29.

But a mere token reduction of only 25 basis points “won’t do much” for the rupee, market watchers said. “RBI policy may not have much of an impact. Overall bias will be of depreciation,” Banerjee said.

According to India Inc and market observers, the rupee might require a “booster dosage” of nearly a 50 basis points cut, which will spur the recovery in both equity and currency markets.

“All eyes will be on the RBI policy. Markets have already discounted a 25 bps rate-cut. Whereas a 50 bps cut can be a surprise move which will have a positive impact on domestic equities leading to a recovery in the rupee,” Sharma added. The rupee continued on its downward trajectory. The rupee ended last week’s trade down 17 paise at 66.16 to the dollar, against its previous close of 65.99.

The IMF has said India is among the few bright spots in the global economy as G20 Finance Ministers began their two-day meeting here against the backdrop of concerns over Chinese economic slowdown looming large on world markets. The remarks from International Monetary Fund (IMF) Chief Christine Lagarde came at the meeting of G20 Finance Minister and Central Bank Governors where they also discussed monetary policy uncertainties.

Lagarde told the gathering that between advanced and emerging economies, there are problems in most places in the advanced world while in emerging economies, there are problems in China although not that big as stock markets are making it to be, according to officials present at the meeting.

Among emerging economies if there is any growth, that is in India. India is among the few bright spots in the global economy, the officials said quoting Lagarde. Officials said that RBI Governor Raghuram Rajan said at the meeting that they are surrounded by economic gloom probably hinting at concerns over slowdown in China.

With plans for more investments in line with the ‘Make In India’ initiative, US conglomerate General Electric’s chairman Jeff Immelt is headed for India later this month.

Describing India as a “growth engine for Asia”, Immelt said there is huge manufacturing potential in the country.

GE, which has diverse business interests spanning manufacturing to healthcare, is keen to bolster its partnership with India and wants to be part of efforts to make the country a global manufacturing destination.

“India is a growth engine for Asia, and we see huge potential for the country in the manufacturing space,” Immelt said in a statement. “Infrastructure is a key driver of India’s growth. We are keen to invest much more in India and in projects to boost its infrastructure in sectors such as rail, power and healthcare. These efforts will have a ripple effect on the overall economic growth in India and beyond,” he said. GE has doubled its investment in the country over the last five years and the group is ensuring that investments and jobs created in India support the ‘Make in India’ initiative, the statement said.