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India in Communism

In this essay, I am looking to analyze on what India would look like under a communist government and why certain aspects of communism might help India and its people.


Communism is a political idea where the government owns most of the property and extensively controls the industrial sector so that all classes of labor are paid to their needs and abilities and control the means of production equally. This idea was originally formulated by Karl Marx and Friedrich Engels. People have always branded communism as bad and unhealthy to the world. This is evident when Ronald Reagan called the Soviet Union an ‘evil empire’. This is because communism is always taken in the same context as totalitarianism or anarchism. People always take the example of Mao Zedong, Nikita Khrushchev and how they created more of an authoritarian government which resulted in the loss of lives of thousands of innocent civilians. Similarly, people take the example of Nicaragua, North Korea, Vietnam etc., as instances where communism has been a bad influence on the rest of the world. People argue that communism more often than not results in bad and evil governance which fails to achieve the very purpose it was constructed for. However, before we completely disregard communism as negative it is important to understand that communism merely advocates equity among social hierarchies and a greater government role in regulating economics. Just because a dictator or a bad leader chooses to employ communist policies, he does not become the epitome of communism. Before we progress through this essay it is important to get that misconception out of our heads for a broader analysis.


There is a communist party of India (CPI) which split into two factions in 1964. The head of the Marxist faction is Sitaram Yechury and the non-Marxist is Sudhakar Reddy. at the present. While BJP and the Indian National Congress from the governments in India every election it is easy to forget the CPI. So, what are the goals and proposed policies of the CPI? It’s party constitution clearly states that – “Revolutionary vanguard of the working class of India. Its aim is socialism and communism through the establishment of the state of dictatorship of the proletariat. In all its activities the Party is guided by the philosophy and principles of Marxism–Leninism which shows to the toiling masses the correct way to the ending of exploitation of man by man, their complete emancipation. The Party keeps high the banner of proletarian internationalism”. It also states that – “The Communist Party of India (Marxist) shall bear true faith and allegiance to the Constitution of India as by law established and to the principles of socialism, secularism and democracy and would uphold the sovereignty, unity and integrity of India.” It is important to note the ‘dictatorship of the proletariat’ which means dictatorship by the common people. Their political programme certainly does not involve authoritarian, fascist propaganda as falsely interpreted by the advocates of capitalist.


It is estimated that the top 10% of income earners in India own 55% of the income in India. Economists still back capitalism because they feel under capitalism even the poor people are generally richer than the middle classes in other countries. For example, a poor person in America would fall into the middle class category in India. Unfortunately, the situation in India is not as great as some of the other capitalist countries. The per capita GDP in India is roughly $1900 which means that with the current levels of income inequality the majority of people are living well under $1000 of income. People who live under $1.50 per day are considered extremely poor and by this standard 22% of India’s population are extremely poor. But why is poverty in India so high? India has a population of about 1.2 billion people and still increasing. The capitalist system existing in India isn’t fixing the poverty problem in India but in turn is increasing it because big firms in India enjoy the possession of a large volume of resources which aren’t efficiently employed due to a lack of regulation and corruption resulting in a loss of jobs. Furthermore, it is estimated that India loses about a trillion dollars due to corruption annually which is nearly half the size of the GDP of India. This drainage of money from the hands of the government merely increases the disparity between the rich and the poor. For a country as big as India, a capitalist system creates an increase in inefficiencies within the economy and the lack of regulation leads to mismanagement  within the government resulting in illiteracy, unemployment and ultimately poverty. It is impossible for a government to find out who’s corrupt and who’s not inside such a vast legislative body in India.


This is why communism may be the solution to India’s ongoing problems. The equal distribution of resources among the people provides everyone with equal economic power. India can still retain its democratic aspects such as elections but once a party is elected, communist power can be given to the elected government which could help introduce a system where the responsibility of economic management is taken off the shoulders of the government and given to the people. The opportunity cost to communism is economic growth but yet again an important question which needs to be asked is – Is it okay to forgo economic growth if all sections of society are assured economic equality and poverty is eliminated? For communist policies to work, there has to be democratic ideals such as election to prevent fascist tendencies, high level of education for people to efficiently manage resources given to them and a judicial body which is independent of the legislature.


Communism as an economic ideal requires democratic ideals backing it up to create a better working political system. Communism can be seen as a political experiment with odds backing its failure rather than success. However, if used right it could be an answer to several of India’s problems such as population management, corruption, and poverty.

Bombings of Hiroshima and Nagasaki – scourge or blessing?

As we analyze whether the bombings of Hiroshima and Nagasaki was indeed a good thing as many historians argue, it is important to have some context about one of the tensest periods arguably in world history.


Historical Context:


May 7, 1945 witnessed the surrender of Germany and marked a major victory in world war 2 for the allied powers which included the three big countries – USA, Britain and The Soviet Union. However, this did not end the world war 2 as Japan hadn’t surrendered yet and the United States hadn’t forgotten about the attack on Pearl Harbor on December 7, 1941. Japan had occupied pretty much all of east Asia including the territories of Vietnam, Cambodia, Malaysia, Thailand, Korea, Manchuria etc. The Potsdam Conference was held from July 17, 1945 to August 2, 1945 where the big three (USA, Britain and The Soviet Union) met to discuss the political climate of Germany, war reparations, controversy surrounding the Soviets and Poland. This was the second meeting of the leaders first one being at Yalta a few months earlier just before the surrender of Germany. It is a no-brainer that Stalin was unhappy with the outcomes of the Potsdam conference and this was a major reason for the eruption of a cold war between US and The Soviet Union. Just after the conference, the atomic bombs were dropped on Hiroshima and Nagasaki on August 6 and 9, 1945 respectively. It is estimated that there were close to 230,000 deaths with many more to follow as a result of the aftermath.


What proponents of the bombings say:


There are several historians who believe that Truman’s decision to bomb the two cities were completely justified and in fact was a good thing for both countries in the long run. The US had deployed B-29 aircrafts to fight the war against Japan. The US navy had created a blockade around Japan to cut off food supplies in order to force Japan to surrender. These B-29’s had caused a considerable amount of damage to Japan who were enraged by this. Historians claim that at this point Japan had begun to recruit their citizens into the army in order to create a large-standing army against the US. They had a philosophy of Ketsu-Go or decisive battle which by no means meant surrender. As Japan began to mobilize it is also important to note that as agreed at the Yalta conference The Soviet Union did not back the US with troops. As Korechika Anami, the war minister was unwilling to back down and he began to pursue even more aggressive tactics against the United States. This is where it gets interesting: historians believe that the atomic bombs on the military and industrial bases of Hiroshima and Nagasaki forced the Japanese emperor Hirohito to surrender and this also ended up saving way more lives than if there had been land battles. Historians say that Truman chose the “least worst of all the options”. They claim that land battles would have taken the death toll to over a million, but the bombs limited the number of death to under 250,000 people. Six days after the bombs were dropped Japan finally surrendered unconditionally which was accepted by US general Douglas MacArthur on September 2, 1945 formally marking the end of the devastating second world war.


My argument:

When it comes to deciding whether the atomic bombings were good or bad it is hard to accept the fact that this decision saved many more lives, yet it is also hard to refute it. Japan had a standing army of over 2 million with an intention of driving away the United States and defending the home islands. This clearly meant way more deaths for both Japan and America and an eventual surrender for Japan. However, when we examine the more intricate implications of the atomic bombings we can see that this decision was not all that good either. Merely saving more lives and ending the war does not mean it was a good decision. One important piece to this story is the Soviet Union. Let us pause and ask ourselves the important question – If I was Joseph Stalin and I am upset over the conclusions of the Potsdam Conference with Britain and the US, what will I feel if US drops atomic bombs in Japan and end the world war 2. Until this point the concept of ‘nuclear warfare’ was almost non-existent. Even though through the Manhattan project, US had already begun to develop nuclear weapons, nearly all other countries were pretty unfamiliar with nuclear warfare. When historians pass a judgement that the atomic bombs were a blessing in disguise, they do not consider the unintended consequences just like Truman failed to consider them. Although tensions were brewing between US and the Soviet Union already it can be said that the dropping of the bombs was a catalyst for the cold-war and this began the arms race. Even the Soviet Union began to nuclearize and soon many countries followed. Since then there have been several potential threats of a nuclear war which if happens could mean the wiping out of most of the world’s population. Examples include the Cuban Missile Crisis, Iran and DPRK’s nuclear proliferation etc. If not for the bombs, the cold war might have been stopped even before its inception and potentially the Korean war, Vietnam war etc., could have all been stopped. With about 2 million Japanese people plus less than a million US soldiers the casualties are still substantially less than about 7 million casualties as a result of US actions during the cold war and their efforts against communism.


The droppings of the bombs at Hiroshima and Nagasaki was a great short-term fix for the world war 2, but the long-term effects of these bombs continue to threaten, worry, and continue to be propaganda for fascist policies in democratic countries.

Transactional Analysis

What it really means?

At its simplest level, Transactional Analysis is the method for studying interactions between individuals. Transactional analysis (or TA) is a model of people and relationships that was developed during the 1960’s by Dr. Eric Berne. It is based on two notions, that we have three parts or ‘ego-states’ to our personality, and secondly that these converse with one another in ‘transactions’.

There are three main ego-states under the transactional analysis: Parent, Adult and Child ego -states.

a) Parent:

There are two forms of Parent we can play.

The Nurturing Parent is caring and concerned and often may appear as a mother-figure (though men can play it too). They seek to keep the Child contented, offering a safe haven and unconditional love to calm the Child’s troubles.

The Controlling (or Critical) Parent, on the other hand, tries to make the Child do as the parent wants them to do, perhaps transferring values or beliefs or helping the Child to understand and live in society. They may also have negative intent, using the Child as a whipping-boy or worse.

b) Adult:

The Adult in us is the ‘grown up’ rational person who talks reasonably and assertively, neither trying to control nor reacting aggressively towards others. The Adult is comfortable with oneself and is, for many of us, our ‘ideal self’.

c) Child:

There are three types of Child we can play.

The Natural Child is largely un-self-aware and is characterised by the non-speech noises they make (yahoo, whee, etc.). They like playing and are open and vulnerable.

The cutely-named Little Professor is the curious and exploring Child who is always trying out new stuff (often much to their Controlling Parent’s annoyance). Together with the Natural Child they make up the Free Child.

The Adaptive Child reacts to the world around them, either changing themselves to fit in or rebelling against the forces they feel.


Communications (transactions)
When two people communicate, each exchange is a transaction. Many of our problems come from transactions which are unsuccessful.

Parents naturally speak to Children, as this is their role as a parent. They can talk with other Parents and Adults, although the subject still may be about the children.

The Nurturing Parent naturally talks to the Natural Child and the Controlling Parent to the Adaptive Child. In fact these parts of our personality are evoked by the opposite. Thus if I act as an Adaptive Child, I will most likely evoke the Controlling Parent in the other person.

We also play many games between these positions, and there are rituals from greetings to whole conversations (such as the weather) where we take different positions for different events. These are often ‘pre-recorded’ as scripts we just play out. They give us a sense of control and identity and reassure us that all is still well in the world. Other games can be negative and destructive and we play them more out of sense of habit and addiction than constructive pleasure.

Complementary transactions occur when both people are at the same level (Parent talking to Parent, etc.). Here, both are often thinking in the same way and communication is easier. Problems usually occur in Crossed transactions, where each is talking to a different level.

The parent is either nurturing or controlling, and often speaks to the child, who is either adaptive or ‘natural’ in their response. When both people talk as a Parent to the other’s Child, their wires get crossed and conflict results.

The ideal line of communication is the mature and rational Adult-Adult relationship.


It is very often misconstrued that a 40-year old cannot exhibit the natural child ego-state and a 6-year old cannot exhibit that of a controlling parent. However, very often these situations could be more prominent than the regular ego-states we associate different age groups with. For example, your parents may want to go out for a movie but you have exams. So you make your parents understand that you can’t go with them. In this scenario as you are the rational figure you are in an adult ego-state, and your parents are in natural child state. In different situations, people portray different ego states and every conversation is made in an attempt to establish an adult-adult transaction.

Shortcomings I feel are important

  1. Very often in today’s world transactions involve a lot of manipulation and rhetorics which the transactional analysis fails to account. For instance, a person may put on a child ego-state to actually control the actions of another person which is a parent ego-state. The transactional analysis does not account for the used tone and implied tone in a transaction.
  2. The transactional analysis states that the ideal situation is an adult-adult transaction. In certain situations, it is much more beneficial to both parties if one takes up a child state and the other a parent ego state. Very often people’s historical background and roots play a major role in determining ego-states in transactions. An adult state may be a difficult trait for many and therefore, rational conversations can very often not be carried out with them because even if dragged into rationality the quality doesn’t remain for long especially among people like rowdies. In such cases, the adult-adult transaction cannot be carried out and even if it is the purpose and effect of the transaction not remain for long.

Emotional Intelligence

Hello everyone,


So, the past few articles have been pretty intense and quite subject based which is why I thought that I’ll share something lighter in this blog.


Recently, I undertook a course called ‘Live Life’ which enumerates about a very unique subject called emotional intelligence. Many of you may have heard of IQ or intelligence quotient but many of you may not know much in depth about EQ or emotional quotient. It’s a fact that an intelligent person would underperform in an examination if he’s not up for it and a less intelligent person would do really well  if his mindset is correct at the time of the exam. So we can safely conclude that your ‘mindset’ or emotions controls drives or controls the other functions of the brain like memory, reasoning etc. emotional Intelligence refers to the art of taking control of your own emotions knowing your state of mind in any given situation. In this course I was taught about emotional intelligence and all the strings attached to it.

The course was divided into four parts:

  1. Personal competence: This was one of the most important sections of the course because your personal train of thought and overriding personality is what stimulates emotions and very often simple concepts such as self-esteem, self-awareness and motivation play a huge role in determining a person’s state of mind. I was introduced to the topics with greater depth to give me a better idea of what exactly happens in different situations. Here, various psychological theories came into the picture: Sigmund Freud’s iceberg model, perception management and transactional analysis. Through this I could understand how people’s perceptions varied with emotions and under different ego states how people transacted or communicated.
  2. Career skills: This brushed up on some much needed interview skills and work ethics. Career skills focused on the fine line between emotional intelligence and social skills and on decision making. Methods such as Maslow’s triangle and six thinking hats were introduced to theoretically explain how career skills work and can be enhanced.
  3. Social skills: Body language, expressions play a huge role while interacting with other people and how it plays out on their emotional states. Also, social media and peer influence can take a toll on people’s mindset and thinking. These concepts were addressed in this section and a difference was drawn between healthy usages of social media to harmful ones.
  4. Financial literacy: Every teenager needs to understand and know the financial set up of his/her country. The banking system, investments and taxes are among the most fundamental concepts a person must know. So, this was added as part of the course to help teenagers understand basic financial concepts.

This was all that was taught in the course and it touched up on psychology, economics, and human resources. To sum it all up in one quote: “By thinking about thinking, you can think and act wisely”


Signing off………Akarsh B Vasisht


Calculus – A Game Changer

In modern day mathematics, calculus is probably one of the most frequently used tools and it’s development came after centuries of rigorous studies. During the ancient period any mathematical concept was termed to be calculus or in simpler words can be said that calculus was assumed to be a synonym of mathematics. However different ideas put forth by different scientists from different regions gave birth to the evolution of modern day calculus. Calculus was used by ancient people as a tool to calculate areas and volumes. For instance, early Egyptians used formulas which resemble integral calculus to calculate areas of solid shapes, Archimedes used the method of exhaustion to compute the area inside a circle and the Indians related calculus with trigonometry to give certain differentiation methods as early as the 8th century BC.

The 17th century saw the dawn of modern calculus with various mathematicians such as Blaise Pascal, Pierre De Fermat and Rene Descartes putting forth the concept of derivative. Certain concepts related to differentiation such as maxima, minima and tangential equations were created around this time especially by Fermat. Cavalieri’s theorems and methodology provided a more holistic approach to integral calculus and a refined version of the method of exhaustion. Cavalieri’s principle gave other mathematicians a foundation to work with especially after the computation of area under the x^n curve or a curve with higher degree. Also around this time Fermat created the base for integral calculus by giving the two fundamental theorems of calculus.
Majority of the modern day calculus was created by two men: Newton and Leibniz, who independently developed its foundations. Although they both were instrumental in its creation, they thought of the fundamental concepts in very different ways. While Newton considered variables changing with time, Leibniz thought of the variables x and y as ranging over sequences of infinitely close values. He introduced dx and dy as differences between successive values of these sequences. Leibniz knew that dy/dx gives the tangent but he did not use it as a defining property. On the other hand, Newton used quantities x’ and y’, which were finite velocities, to compute the tangent. Of course neither Leibniz nor Newton thought in terms of functions, but both always thought in terms of graphs. For Newton the calculus was geometrical while Leibniz took it towards analysis however the controversy surrounding them was both of them religiously preached infinitesimal calculus.
Although one could not argue with the success of calculus, this concept of infinitesimals bothered mathematicians. Lord Bishop Berkeley made serious criticisms of the calculus referring to infinitesimals as “the ghosts of departed quantities”. Ultimately, Riemann reformulated Calculus in terms of limits rather than infinitesimals. Thus the need for these infinitely small (and nonexistent) quantities was removed, and replaced by a notion of quantities being “close” to others. The derivative and the integral were both reformulated in terms of limits and definite integrals.
So when do you use calculus in the real world? In fact, you can use calculus in a lot of ways and applications. Among the disciplines that utilize calculus include physics, engineering, economics, statistics, and medicine. It is used to create mathematical models in order to arrive into an optimal solution. For example, in physics, calculus is used in a lot of its concepts. Among the physical concepts that use concepts of calculus include motion, electricity, heat, light, harmonics, acoustics, astronomy, and dynamics. In fact, even advanced physics concepts including electromagnetism and Einstein’s theory of relativity use calculus. In the field of chemistry, calculus can be used to predict functions such as reaction rates and radioactive decay. Meanwhile, in biology, it is utilized to formulate rates such as birth and death rates. In economics, calculus is used to compute marginal cost and marginal revenue, enabling economists to predict maximum profit in a specific setting. In addition, it is used to check answers for different mathematical disciplines such as statistics, analytical geometry, and algebra.
signing off…….Akarsh b Vasisht

Geometry Today

hello guys it’s great to be back. Today I am going to talk about one of the most hated topics especially for school students but probably one of the most interesting topics when we dig deep into the subject.

Math and many of its aspects are a major part of everyday life. We spend the majority of our school years studying and learning the concepts of it. Many times, the question of ‘why do we need to know these things?’ has been asked. So, in this article I am going to emphasise on the development of one subconcept of mathematics which is called “geometry” and it’s ever growing usage.

‘Geometry’ technically means ‘measure of the earth’. Geometry is the mathematics of the properties, measurement, and relationship of the points, lines, angles, surfaces, and solids. Pythagoras emphasised the study of musical harmony and geometry. His theorem was that the square of the length of the hypotenuse is equal to the sum of the other two sides. Johannes Kepler, formulator of the laws of planetary motion is quoted as saying, ‘Geometry has two great treasures: one of them is the theorem of Pythagoras, the other the division of a line into mean and extreme ratios, that is the Golden Mean.’ As time moved on new concepts came out from various scientists.

An ancient Greek mathematician, named Euclid, was the founder of the study of geometry. Euclid’s Elements is the basis for modern school textbooks in geometry. He created various axioms and postulates which then went on to shape modern geometry. His axioms and postulates were less of mathematics and more of mere common sense and simple logic. One such postulate was the parallel postulate: “That, if a straight line falling on two straight lines make the interior angles on the same side less than two right angles, the two straight lines, if produced indefinitely, meet on that side on which are the angles less than the two right angles.” People like Euclid and Pythagoras stated geometric concepts way before modern geometry had evolved and their theories formed a basis for modern geometry to develop. However, once various scientists came and went fresh ideas and approaches were needed to keep up with the quickly evolving science.

Some notable contributors to geometry were Rene Descartes, Isaac Newton, Leonhard Euler, and Albert Einstein.

Rene Descartes invented the methodology of analytic geometry, also called Cartesian geometry after him, which comprises of coordinate geometry as it’s called today. Blaise Pascal worked on projective geometry which is the study of geometric properties that are invariant with respect to projective transformations. This means that, compared to elementary geometry, projective geometry has a different setting, projective space, and a selective set of basic geometric concepts. Leonhard Euler who is considered to be the greatest mathematicians ever was credited for successfully relating algebra to geometry using the graph theory and number theory. Newton and Einstein contributed to develop non-Euclidean geometry and embedded calculus into geometry to find areas and volumes of irregular geometrical shapes.

The reason geometry is such an important part of mathematics is because mathematics is all about visualisation and without a visual idea it would have been nearly impossible to create mathematics as it stands today. To put this into perspective, if a person wants to measure the length between the foot of a ladder lying on a wall and the base of a wall, he would first imagine the scenario and visualise what this would look like which then makes it easier to calculate using the Pythagoras theorem. So, to answer the question asked at the start of this essay ‘why do we need to know these things?’ It is because although geometry may not be directly applied in real life it forms the basis for other mathematical operations.


signing off………..Akarsh

The Story of Indian Economics (part 2)

The Reform Period:

The main effect of the balance of payments crisis was the loss of India’s position on the global scale especially in the eyes of the World Bank. India had huge debts to repay and could not do so without the aid of the World Bank and such financial institutions. Also, due to the closed door policy of the government foreign trade was meagre and the foreign investments into the country were well below required levels. The rupee now valued 25.79 against the USD which was a massive devaluation. Like all conventional tales, when all hope is lost, the people need a hero to come to their rescue. Manmohan Singh has very often been criticized for his nonchalant stance as prime minister of India but back then he was the finance minister or “the hero” of India. Under PV Narasimha Rao and Manmohan Singh’s leadership Indian policies were reinvigorated and major changes were made. The World Bank agreed to give India financial support but in return India had to globalize and liberalize. India agreed to do so and slowly the situation started improving. Some key policies were implemented such as a more capitalist approach by disinvestment of public sector and privatization. Import substitution was removed and taxes were reduced to encourage foreign investments/trade into the country. Importance was given to industrial growth and development of the tertiary sector. All the heavy licensing procedures were abolished and the government trimmed the role of the RBI in regulating the financial sector which resulted in the emergence of various financial institutions. Also, during this time various small scale industries emerged which formed an integral part of the economy in terms of GDP and employment. By the end of Narasimha Rao’s term India was look at the end of the millennium with hope of better things to come.

The Growth Period:

When the hero marks his victory over the villain, the story still has an unfinished part that is the hero and heroine getting together and having a happy ending. Almost a decade later, Manmohan Singh became the prime minister of India. Although, between 2000-2010 India did not see the growth which met its potential but substantial improvement was there.  India’s trade as a proportion of GDP rose from 13.1 per cent in 1990 to 20.3 per cent in 2000. Economic reforms picked up pace in 2000-04 and fiscal deficits trended down after 2002 and there was a based upswing in Indian industrial output and investment from the second half of 2002. India’s Tenth Five-Year Plan (2002-07) targeted an annual growth rate of eight per cent. Along with this growth target, the government also laid down targets for human and social development. A reduction of the poverty rate by five percentage points by 2007; providing gainful employment to at least those who join the labor force during 2002-07; education for all children in schools by 2003; and an increase in the literacy rate to 75 percent by March 2007. The GDP too saw a huge upward growth.

At the present, it is the NDA government which is in full swing and India is en-route to becoming an influential and key player in the world economy and continues to improve in the Na Mo era.

The Story of Indian Economics (part 1)

When the British left India and the nation witnessed independence after several decades, the economy was crippled and people were impoverished with the GDP crashing down at staggering rates. The GDP then was a meager 93.7 billion rupees as compared to the present GDP which is 7.376 trillion rupees. This can be attributed to the de-industrialization policy of the colonial government which led to the absence of the secondary sector and reduced India’s status to a mere supplier of raw materials. Also, the tertiary sector in India was almost non-existent, which was another major setback to India’s economic growth.

At this point Indian leaders had to decide which type of economy India was to adopt and in the end although with India’s living conditions and economic situation in a bad shape a socialist economy would have been more ideal, on a long term basis a mixed economy was probably the best option. However, this decision would change India forever. A mixed economy demands a rigid and clear constitution to draw a line between the capitalist and socialist aspects of the economy which in my opinion was one failure of the new government.

Indian economics since independence can be divided into four stages:

  • The Nehruvian and post-independence period (1950-1985)
  • The crisis period (1985-1993)
  • The reform period (1993-1998)
  • The growth period (1998-present)

The Nehruvian period:

This key feature of this era was the closed door policy viz. foreign trade was minimized through import substitution which gave birth to domestic industries and various small scale industries. Although this established an industrial foundation in India the economic growth was less and the aggregate supply went down. At this time India’s economy had a share of 3.8% of the total world income. The government’s aim during this period was recovering from the losses incurred during colonial rule and it emphasized on addressing serious problems such as poverty and unemployment. The government introduces the five year plans to provide a comprehensive strategy to address all the economic problems and aim at economic growth.  Nehru wanted to create a balance between the rural and the urban sectors in his economic policies. He stated there was no contradiction between the two and that both could go hand in hand. He denied to carry forward the age old city versus village controversy and hoped that in India, both could go hand in hand. Nehru was intent to harness and fully exploit the natural resources of India for the benefit of his countrymen. The most distinctive, and often debated feature of Nehru’s economic policies, was the high level of state and central control that was exercised on the industrial and business sectors of the country. Nehru emphasized that the state would control almost all key areas of the country’s economy, either centrally or on a state-wise basis. His Socialist emphasis on state control somehow seemed to undermine his stress on industrial policies. The rigorous state laws and License rules put a great degree of restrain on the free execution of industrial policies. Even the farmers, along with the business personnel, found themselves to be at the receiving end of rigorous state control policies and high taxation. Poverty and unemployment were widespread throughout Nehru’s governance.

The Crisis period:

Towards the end of 1980s, India was facing a Balance of Payments (BoP) crisis, due to unsustainable borrowing and high expenditure. The Current Account Deficit (3.5 percent) in 1990-91 massively weakened the ability to finance deficit. The causes of this crisis were:

  • Break-up of the Soviet Bloc
  •  Iraq-Kuwait War
  •  Slow Growth of Important Trading Partners
  •  Political Uncertainty and Instability
  •  Loss of Investors’ Confidence

Thus, the balance of payments situation came to the verge of collapse in 1991, mainly because the current account deficits were mainly financed by borrowing from abroad. The economic situation of India was critical; the government was close to default. With India’s foreign exchange reserves at USD 1.2 billion in January 1991 and depleted by half by June, an amount barely enough to cover roughly three weeks of essential imports, India was only weeks way from defaulting on its external balance of payment obligations.


14th December 2016


Bangalore, India


Bonjour les amis,  its me again to publish an article about one of the ongoing debates in India – demonetization.

Before we start it is important to first clarify the precise definition of a broad term such as this. So what is demonetization?? Investopedia defines it as the act of stripping a currency unit of its status as legal tender in order to fabricate certain changes that the government wishes to make. This alteration in currencies consequently impacts the economic status of a country .

In India, this act was passed with a sole motive of eradicating black money stored in cash and take the first steps against money laundering as a whole. The issue of black money has been an arch rival to India’s economic growth ever since independence was first observed and this has only gone onto become a more sizeable issue over the passing decades. Economists have often introspected about their causes and removal but not many actions have been taken by governments majorly dominated by Congress leaders. Then ,why is there so much opposition to demonetization which can be looked at as a mere first step taken for combating  money laundering??? The answer to this is deep rooted and a diverse set of aspects must be considered before a conclusion is reached. In the following few paragraphs I will speak as an economist presenting facts rather than an Indian citizen supporting or criticizing the policy.

This policy has taken a serious toll on trade and the equilibrium of demand and supply in markets. With lesser monetary flow, demand has gone down due to which manufacturers have stopped creating more goods which in turn had brought down the supply. I personally feel that for a developing country like India these kind of situations can hamper economic growth and depreciate our economy. This ideology is heavily linked with the timing of imposing this policy and the government perhaps could have waited a few more years before doing so. In addition, black money is stored in other forms such as gold, properties and in bank accounts so demonetization does not address the major issue. When we observe the policy on a macro scale it offers quite less and has more drawbacks. When time period is considered; when we think of it on a long term basis it can be of great advantage but the short term consequences cannot be undermined. Also, the micro economical situation needs to be observed.

India has a rural population of a staggering 67% of the total population many of whom are not exposed banks and e-wallets. These people are heavily reliant on solid cash which is why the controversies surrounding demonetization have rose. In the eyes of a rural citizen every note of money carries a substantial significance and their deficit can have grave implications and can directly affect their lives. With a shortage of currency, people are  thronging banks to receive their share of cash. Due to this, some people are unable to pay for themselves even during emergency scenarios.

Taking advantage of this situation the opposition parties have sympathized with these people and have created raucous in the parliament and are desperately trying to turn this whole situation into a fiasco. This political battle have raised doubts in the minds of the people because of which the merits of this policy are overshadowed by their drawbacks and people no longer see the bigger picture. The prime minister has pleaded with the people to bear with him for a few months and promises a drastic improvement in the situation.

On one side, the government has announced that more policies will follow shortly to put a full stop to the long lasting crisis of money laundering and black money. However, on the other hand these policies affects the people in adverse ways and may have serious repercussions in the future. Also, there are various political parties who act as hurdles and stand between the government and the people to prevent them from achieving their goals.

It is challenging to decide what is right and what’s not but all that can be said is that no government in India’s history has taken such a stern decision and addressed a major problem such as this. There may be inconveniences but I feel it is the role of every Indian citizen to respect this decisions and believe in the government. If the policy is a success then his will go down as one of the best decisions probably in the history of Indian economics but for now a sense of hope is all that we people have.


signing off……….Akarsh


5th November 2016


Bangalore, India


Ola everyone!! Today I’m going to tell you’ll about this competition I went to with my partner also my classmate Rohan which we won. yippeee!! In this competition we had to create our own business proposition and present it to a group of extremely well qualified judges in the final round. There were two preliminary rounds before.  This was a school level competition and schools from different cities took part so there was fierce competition. So, in this article I am going to share with you’ll my business idea. Here it goes:



The name of my business venture is Let’s Park.


Why, Where and to Who?

WHY- ◉Avoid wasting time trying to park every time you reach a destination

WHERE- ◉To spread across all busy metro cities of India.

WHOM- ◉It can help anyone who is in desperate need of a parking spot

What’s the BIG Idea?

  • Let’s Park is an idea that will allow you to get yourself quick and hassle-free parking on demand.
  • Not only does it show you parking spots on the go but also allows you to pre book a parking spot.
  • Makes use of the G.P.S. to allow users access to a real time view of parking spots while parking their vehicle.
  • The introduction of on-road parking meters which will synchronize with the app instantly updating the status of parking slots once a spot has been booked on these.

The Parking Meters

  • A machine that works on the basis of ‘money for time’. For example Rs.40/- for 4 hours and Rs.15/- for every additional hour.
  • It will be set up all over the city and will be counted as the company’s infrastructural requirement.
  • Key player in the revenue generation model.

Our Biz model

  • Tying up with malls and other private institutions to use their parking spaces which can be booked through our app and payment been made online.
  • We first acquire Govt. permit to manage public parking spaces and request a list of all legal and registered parking spaces in the city.
  • Then we set up parking meters in all the acquired parking lots.
  • Customers can easily book the available parking spaces through these parking meters and this is updated on our app.
  • Tying up with already existing apps such as “bookmyshow”, for reservations of parking. This helps increase the face value of our business.

Peaks and Valleys


  • Our app is a unique one because the synchronization of parking meters and an app is the first of its kind in India and this increases the efficiency exponentially.
  • Time saving, low cost and customer friendly.
  • If all the spaces are full the app redirects you to the nearest one.


  • Maintaining our revenue so that the operations are sustainable and profitable
  • Managing the technical situation and chances of technical failures of our business I.e. the app and the parking meters.

The ‘Cha-Ching

The two revenue generation systems:

  1.  The money collected through the parking meters.
  2.  Money collected from reservations made through the app.




signing off……………Akarsh