8/19/2019 Arthniti 2015

1/50

MARCH 2015 ARTHNITI

ARTHNITI Arthniti, is the annual college magazine published by SSE’s EconomicJournalism club, “Arthniti”. The magazine which initially started out as aneconomic journal, was a compilation of articles written by students on variousEconomic issues and thoughts. This year, the magazine went through a fewchanges, and Arthniti has officially become SSE’s annual college magazine. Arthniti shall now include an update on all the events that transpired incollege during the academic year, much like a yearbook! We hope you enjoyreading it!

1

INTERVIEW WITH SSEFACULTY MEMBERS!

Read all about thelives of Pal, Shreyaand KKR beforeSSE!

SSE WINS SIU

FOOTBALL!SSE’S BRILLIANT VICTORY AT SIU

ARTHNITI ENTERS THEBLOGGING SPHERE!

LAISSEZ FAIRE 2015READ ALL ABOUT

SSE’S 4TH ANNUALCOLLEGE FEST

Arthniti has nowbecome SSE’sannual college

magazine!

ARTHNITI

8/19/2019 Arthniti 2015

2/50

MARCH 2015 ARTHNITI

2

2014-15 has beenan eventful year

for SSE. The yearstarted off with

the induction programme andculminated withthe Annual Day.Throughout the

year the instituteremained

extremely activewith events suchas Ethnic Day, Laissez Faire

2015, Sportsevents and finally

the farewell. Amidst all the

chaos andexcitement, SSE

has surely had anextremely fun

filled andmemorable year

that can becherished by one

and all.

8/19/2019 Arthniti 2015

3/50

MARCH 2015 ARTHNITI

Editorial Team

Faculty-In-Charge: Ishita Ghosh

Sushma Nayak

Chief Editor: Aishwarya Karunakaran

Consulting Editor: Geet Chawla

Economic Editor: Kaustubh Chahande and Shloka Jaiswal

Non-Economic Editor: Varun Mehta and Sanaya Chandar

Creative Team: Padmakshi Karanjkar, Vainat Desai and SarayuNandakumar

Reporters: Manasi Nikam, Nandita Ramesh, Akshita Mathur andKrishna Betai

Cover Design: Kripa Jayram and Rahul Gupta

Photography: Kalyani Saxena

3

8/19/2019 Arthniti 2015

4/50

MARCH 2015 ARTHNITI

ContentsS. No. Conents Page No.

1 Editorial Board’s Message 52 Economic Moats: Are They Necessary For A Business To Survive? 6

3 The Government’s Promises Are Incredible 9

4 The Russian Oil-igarchy 11

5 Srsly, News 13

6 Change Is A Like Runaway 15

7 Greek Austerity Tales 17

8 Laissez Faire 2015: Fest Diaries 19

9 Laissez Faire 2015: At A Glance 23

10 Dissolution Of The Planning Commission 25

11 Let’s Play A Game 26

12 Smart Cities 28

13 SSE Wins The SIU Football Tournament! 31

14 Potential Investor 33

15 Love Undoubting 34

16 Contribution Of The Indian Forging Industry To The Growth Of The IndianEconomy

36

17 How Elections A ! ect The Economy 38

18 Faculty Interview 41

19 Rationale Behind The Irrational 43

20 Medieval India: Trade And Commerce 45

21 Ode On A Grain 48

4

8/19/2019 Arthniti 2015

5/50

MARCH 2015 ARTHNITI

Editorial Board’s Message

The entire team at Arthniti would like to thank our teachers Sushma Ma’am,

Sukalpa Ma’am, Ishita Ghoshal Ma’am and Ishita Ghosh Ma’am, for theircontinued support and encouragement.

Heartfelt thanks to our sponsors Bussan Auto Finance (Mr. K. P. Sunil and Mr.

K.R. Rajesh) without whom our magazine would have remained a dream.

5

8/19/2019 Arthniti 2015

6/50

MARCH 2015 ARTHNITI

Economic Moats: Are They Necessary For ABusiness To Survive?COMPETE - Create Offbeat, Modern, Progressive & Enterprising Team of Experts

By: Sushma Nayak

Aishwarya Karunakaran

What keeps you going when you know there are players around as good as you or even better? Do

things differently…is it? Or have a unique edge over them! Yes, you've got it right. In a gung ho

world where cutthroat competition seems imminent, the only way to stay in business appears

‘economic moat.’

The Swiss Alps, canals in Venice, restaurants next to the Eiffel Tower or the closest Mc. Donald’s -

wherever you go, Coca Cola is one thing you can find with great ease. A drink that has been widely

accepted by the world enjoys nothing but an ‘Economic Moat.’

The concept of economic moat was coined by American business magnate and philanthropist

Warren Buffett. Years ago, a castle was usually protected by a moat - ‘ a deep, wide ditch

surrounding a castle, fort, or town, typically filled with water and intended as a defence against

attack.’ The moat would circle the castle and protect it from hostile attacks. The wider the moat,

the more cosseted the castle was. Thus, according to Buffet, a ‘moat’ is the competitive advantage

that a corporation enjoys over other companies in the same industry . In his words, “ In business, I

look for economic castles protected by unbreachable ‘moats’.” A company may attain competitive

advantage through constant improvement, novelty and acts of innovation.

Coca Cola, the world’s largest non-alcoholic beverage producer, is believed to enjoy competitive

advantage over its competitors. Here’s an interesting case in point. People who have known about

the company’s smart strategies may be aware that soon after Roberto Goizueta took charge as

CEO of Coca-Cola in the 1980s, he confronted tough competition from Pepsi that was taking a

chunk of Coke's market share. His management was Pepsi-focused and targeting an increase in

market share. Goizueta decided to cease competing against Pepsi and instead compete against

other generic fluids. He asked his team about the average fluid intake of an American per day. The

answer was 14 ounces; Coke's share of that was a meager two ounces. Goizueta said Coke needed

a larger share of that market. The opponent wasn't Pepsi. It was the water, fruit juices, tea, coffee

and milk that comprised the remaining 12 ounces. People should go for a Coke whenever they felt

like sipping something. Consequently, Coke put up vending machines at every street corner. Sales

scaled and Pepsi has found it difficult to catch up since then. In 2011, Coca Cola’s market share was at a whopping 25.9% as opposed to Pepsi’s 11.5%.

6

8/19/2019 Arthniti 2015

7/50

MARCH 2015 ARTHNITI

Coca Cola has a competitive advantage which probably prevents other firms from entering or

competing in the industry. This could be because of the company’s ability to keep its costs low,

strong branding or certain characteristics that other firms have not been able to imitate or

replicate. An important aspect to be noted is that a strong value chain, nurtured through robust

partnerships with suppliers, distributors and retailers, has enabled Coca Cola meet the demand of

its consumers across 200 countries.

While economic moat may seem advantageous to a firm, this may not always be the case.

Economic moats only protect the company from the threat of competition, however, externalthreats such as changes in the consumer’s tastes and preferences are not accounted for. Coke

today is facing such a threat. With consumers around the world adopting a healthier diet, the

consumption of coke is decreasing. Consider Mexico, the largest consumer of soft drinks in the

world. Mexico has gotten its wake up call and has started taking drastic steps to improve its

citizens’ diet. The state of Mexico has introduced schemes such as ‘Nutrition on the go’ which

aims to maintain the BMI values of school children. Moreover, Mexico has implemented the ‘Soda

tax’ and ‘Junk food tax’ that taxes sugary drinks and junk food. The State intends to charge ‘one

peso per liter, or about 8 cents, on soft drinks and an 8 percent sales tax on high-calorie foods,including potato chips, sweets and cereal’ (Villegas, 2013). Similar to Mexico, people around the

7

8/19/2019 Arthniti 2015

8/50

MARCH 2015 ARTHNITI

world are taking the issue of obesity very seriously and are making sweeping changes to their diet-

which means no more coke.

Coca Cola’s ‘arch opponent’ Pepsi, has found a smart way to tackle this threat. While Coke has

made promises to increase international sales, Pepsi has found the key in diversification. The

process of change started in 2006, with Pepsi Co. appointing Indra Nooyi as its CEO. Nooyi,

understanding the shift in consumers’ preference from soft drinks to healthy nutritional drinks

and snacks, refocused Pepsi on water, juices and sports drinks. The company is now aiming to

expand its nutritional business from $10 billion to $30 billion.Coca Cola on the other hand, promised an increase in marketing by $3 billion. While the company

is making a positive effort to go healthy with Vitamin Water and Odwalla, soda continues to

remain 75% of Coca Cola’s sales.

Thus, the bigger question that looms ahead is, while Coke enjoys a situation of economic moat, is

this subject to change? Is Coca Cola being naïve and not responding appropriately or is Pepsi Co.

taking an unnecessary detour? The answer to this shall hopefully be answered in the future.

8

8/19/2019 Arthniti 2015

9/50

MARCH 2015 ARTHNITI

The Government’s Promises Are Incredible By: Kaustubh Chahande

Suppose a government wants to discourage housing constructions in areas prone to floods, it can

achieve that in a number of ways. One of which could be to declare that it would not subsidizedisaster insurances or maybe warn the people that it would not compensate the residents in case

of a disaster. However, people may expect that the government would compensate them anyway,

because it always has done so in the past, and ignore the warning. In this manner government

policies can be potentially self-defeating.

This is a classic example of a time-inconsistent problem, documented by Finn Kydland and

Edward Prescott in their 1977 paper Rules Rather Than Discretion: The Inconsistency of Optimal

Plans. In this paper the two economists explain how discretionary policies can be self-defeating.

According to them, if governments can act at their discretion, they can break their promises,therefore the government's promises are not credible. Rational individuals forecast this breaking

of promises and change their own behaviour to suit. This prevents discretionary government

policy from working. Thus, governments should credibly commit to following simple rules, and

not use discretionary policy.

Kydland and Prescott believed that a government’s promises of greater price stability face the

same difficulty. To tackle high unemployment, it will boost the economy to improve employment

figures, but this tends to push up prices. The government thus faces a trade-off and has goals at

odds. Individuals recognize this and so do not have confidence in the government’s promise of

low inflation. This defeats the goal of increasing employment by increasing demand, because

people know that higher wages will be offset by higher prices. Accounting for rational

expectations, the effect of the boost is simply higher inflation.

For this reason the two economists have proposed that instead of having a free reign to set

economic policy, governments should commit to following clear rules. A more radical solution to

this problem would be the introduction of an independent disciplinarian. In macroeconomic

policy this kind of role can be taken by independent central banks, which place less weight on

employment and more weight on low inflation than the government does. Their control of

monetary policy allows the government to credibly commit to low inflation.

This paper had widespread impact. Following this research central banks around the world

started to commit to a long term policy of pursuing price stability and low inflation. The U.S. had

put in place an implicit policy of seeking low inflation. Subsequently, from the early 1990s, many

countries such as New Zealand, Sweden and the U.K. introduced a policy of inflation targeting.

This kind of targeting involves the central banks committing to pursue a defined range of

inflation. Richard Rogerson, presently a faculty at the Princeton University, noted that many ofsuch changes have been a result of the paper. The period of low inflation that arose in the 2000s

9

8/19/2019 Arthniti 2015

10/50

MARCH 2015 ARTHNITI

is often attributed to the rise of independent central banks. Incidentally, this period was also

accompanied by strong growth.

In the past few years, modern economics has taken the issue of credibility in a different stride.

John Kay, from London School of Economics, notes how the blame is laid out on the commitment

to establish credibility if the desired outcome is not reached. He has explained how credibility has

become a dogma - credibility instead of being a tool to achieve effective economic policies has

become a goal in itself.

We can try to assess the importance of credibility in financial markets by asking the question: how

much does time-consistency of central bank policies matter to the investors? It is a fact that just

before a central bank announcement the investors’ decisions are highly influenced by the past

policies of the incumbent governor. To note this one does not have to look any further than the

media coverage of financial markets before the scheduled announcements of the Reserve Bank of

India or the United States Federal Reserve or any central bank as a matter of fact. But generally,

how much of the expectations formed by the investors are actually derived from all knowable

information about the central bank or the government? It turns out that even most of the

sophisticated investors do not form most of their expectations from predictions of future public

finances but conventional wisdom, and what they come across in financial news media. So instead

of basing most of their investment decisions on their own analysis, they rely on opinions given by

financial ‘experts’.

It is in fact interesting to note that many financial pundits retain significant credibility even aftergetting their predictions wrong. The biggest example of this would be the case of credit rating

agencies during the Global Financial Crisis of 2008. Companies such as Standard and Poor’s,

Fitch and Moody’s gave the highest ratings to securities such as Credit Debt Obligations (CDOs)

which lived up to the nickname they later received – ‘junk’. Yet the ratings these companies

presently offer immensely influence investors. Hence, in important market scenarios credibility is

sometimes irrelevant.

Thus in retrospect, more vital than fixating on credibility is warranting that the proposed goals

will actually lead to needed outcomes, because central banks can gain credibility by sustainingprice stability, however it would not matter much if price stability is not accompanied by

economic growth and full employment.

10

8/19/2019 Arthniti 2015

11/50

MARCH 2015 ARTHNITI

The Russian Oil-igarchy By: Shloka Jaiswal

Seeing how much of an effect an adverse economic climate in the form of a falling rupee andrising inflation had in the ouster of the previous government, the incumbent Modi Sarkar will

definitely be relieved at the current collapse in oil prices and subsequent slowing down of

inflationary forces.

Falling oil prices for a country which imports the majority of its consumed energy means a lower

toll on the balance of payments, and lower inflation. On the flip side of the coin however, for oil

exporting nations, falling prices ring a death knell for political and economic stability in the

country.

This has become so widespread that there are UNDP reports now warning against ‘commodity

dependence’, or a trend of low income countries becoming dangerously dependent on commodity

exports.1 Such are the events that have resulted in economic cataclysm in Russia.

THE WAY HERE

The reasons are multi-fold. Firstly, the vertiginous assault of oil prices in the last decade has led

to oil rich countries becoming extremely dependent on exports for the majority of their revenue.

Russian oil and natural gas exports amounted for 68% of their export earnings.2 Easy inflows

resulting from a commodities boom largely caused by an over-consuming United States and

expanding China have resulted in maximum resources in oil producing countries being poured

into the oil industry , at the expense of the crippling of other industries.

A stock market index is built to give an idea of the general performance of an economy at a glance,

and a cursory comparison of Russian and Indian stock indices reveals the extent to which easy

money inflows from natural resources can distort incentives to develop other industries. In Indian

stock indices a variety of industries all over the spectrum of technological sophistication can be

found ranging from textiles to biotechnology. The market cap is also evenly distributed along

different sectors. In Russia however, the majority of big companies are in the energy sector only.

This is the proverbial equivalent of putting all your eggs in one oil tanker. This goes a long way in

explaining why $248 Billion of market capitalisation has been eroded, leaving the Russian stock

market capitalisation at $531 Billion smaller than Apple at $648 Billion.3

This lopsided development has led to socio-political inertia, with despite having a high per capita

income ($23,200 adjusted for PPP), there is rampant income inequality. The 110 richest Russians

own about 35% of the country’s wealth 4, and the countries cities barring Moscow and St.

11

8/19/2019 Arthniti 2015

12/50

MARCH 2015 ARTHNITI

Petersburg are all unimpressive in size and infrastructure, all indicators of a society which is still

top heavy economically and politically.5

The Russian economy in recent years had already developed the unique distinction of having

negative net factor income from abroad (capital outflows recorded at $151 Billion in 2014) due to

the paucity of investment opportunities inside the country.6

The nation’s financial institutions have been ravaged by crony capitalism in the form of a high

number of loan defaults caused by oil companies mostly run by those close to the nation’s political

elite. The cost of credit has already surpassed developing country levels, as after the collapse of

the rouble had caused the central bank to raise rates by an unprecedented 550 basis points to 17%

from 12.5% to increase the demand for the rouble.7

THE WAY FROM HERE

Economic adversity in the country has only been precipitated by the decline in the rouble and

trade sanctions induced after alleged Russian aggression in Ukraine. 8

The Russian Government’s budget had been delicately balanced on trend of rocketing oil prices,

such that the country would be in a deficit if the price of oil at any point dropped below $100 a

barrel.9 With crude prices now well below $60, the effects of the price decline can be seen

manifesting themselves in the form of a 0.5% decline in GDP YoY last November, the first decline

since 2009, with expected contractions of up to 5% if the glut in prices persists. The projected

fiscal deficit for FY15 is expected to be 0.6%.10

Despite raising interest rates, the Russian Economy will most likely be unable to retain foreign

capital as S&P and Moody’s have downgraded Russian debt to just above junk level, a move which

led the government to suspend ratings from these agencies in the country.11

As things stand, Vladimir Putin will have to rule will with an iron fist in a velvet glove if he is to

rescue his political career from such a political quagmire. While his expansionist ambitions have

suffered at the hands of a world where oil prices are falling amid booming energy consumption,

he will probably have to rediscover some of his more democratic virtues if he is to convince theEU to remove the trade sanctions levied and provide economic relief to the country.

12

8/19/2019 Arthniti 2015

13/50

MARCH 2015 ARTHNITI

Srsly, News By: Sanaya Chandar

The revolutionary powers of the internet have had far reaching impacts since the boom of the

World Wide Web in the 1990s. Some say that the internet represents an anarchic society devoid ofany reasonable laws to govern the goings-on of avid internet inhabitants, while others celebrate it

for that very fact; that principles such as Net Neutrality give the little guys a fighting chance

against their bigger, well established opponents.

The freedom granted by the internet has created a vast online forum for people all over the world

to air their views that has in turn, transformed the business of disseminating news. Every major

news publication and magazine has its online counterpart and a Twitter handle to ensure viewers

a speedy update on the news of the world. It is even said that every major world event finds its

way to Twitter before it reaches any television news channel.

With the internet becoming a hub of discussion and discourse, a new strain of news has gained in

popularity: satirical news. This strain is particularly popular among the internet-using youth as

they shift ever more rapidly from print and broadcast media to the world of social media. The

supposed lawlessness of the internet grants these news sources the license to toe the line between

politically correct and painfully, hilariously true and often, allows them to ignore that line

altogether and whizz past it in their vehicles of satirical wisdom.

Last year, with the elections in full swing, we found amidst the rubble of biased and shoddily written newspaper reports, a completely objective take on the battle of Modi vs. Gandhi through

John Oliver’s Last Week Tonight. While adding comedy to serious matters of the world might

seem like a daunting task, this funny Brit has managed to do it seamlessly for two seasons now,

tackling various issues such as the question of the death penalty in the United States or the

Scottish referendum that was concluded last year. We find instances of this new way of reporting

news even in India when we look at The Week that Wasn’t with Cyrus Broacha, FakingNews,

News Laundry, the YouTube news channel that pokes fun at India’s professionally dodgy news

reporting and puts these reports ‘out to dry’, or even the All India Bhakchod when it brings light

to socially relevant issues in its own uniquely comedic way.

What makes satirical news so very appealing? For starters, humour never fails to ensure rapture

and entertainment, but what’s most intriguing about satire in news is not that it presents a

completely unbiased picture of world events, but with a very plainly stated opinion that colours

the reporting of this news. When John Oliver talks the ostentatious welcome ceremony that

Narendra Modi received at the Madison Square Garden when he visited America, he unabashedly

admits to thinking that it was an unusually ostentatious greeting for a world leader. What’s so

refreshing about this is that his opinion remains quite detached from the actual event, notdictated by any affiliation to any political party of news syndicate. It isn’t a doctored report,

13

8/19/2019 Arthniti 2015

14/50

MARCH 2015 ARTHNITI

designed to laud or berate specific individuals or entities; it is a regular citizen’s outside view of

the news available for everyone to read. It presents this opinion to viewers and makes them think

about how it came to be. These shows do not force an opinion down the viewers’ throat; they

present them with a few side of a multi-faceted debate and make them think about the validity of

their own opinions.

Another interesting factor that has contributed to the popularity of satirical news is that beneath

the layers of wry wit, there is a load of research that is conducted to ensure the authenticity of

everything that is reported by these anchors. This research tells viewers that the opinions

presented through these channels are by no means arbitrary or blindly held, but are the result of

some very extensive research.

Regular news channels on the other hand, have not done much to help their cause.

Sensationalism and unnecessary dramatics have made broadcasters a laughingstock in the

country. When people can no longer take ‘serious’ news seriously, that’s when the answer to the

question of a dash of satire becomes a firm ‘why not?’. More importantly, when the news itself is

so gut-wrenchingly horrible in most cases, it becomes rather tiresome to hear a self-important

news anchor rant about these atrocities; that’s when embracing the satire becomes all the more

appealing.

14

8/19/2019 Arthniti 2015

15/50

MARCH 2015 ARTHNITI

Change Is Like A Runaway Trainby: Varun Mehta

Change is like a runaway train, speeding its way into our lives. A child is born into this world, frail

and defenceless. His mind is a blank slate. I was once that child. I watched the world around me with the eyes of an infant, without judgement, with nothing but pure wonder and curiosity. I

watched the colour of the leaves fade, I watched them wither and die. I watched the sun rise and

set. I reached for the stars and the moon, trying to pluck them out of the sky and put them away

in the jar by my bed. I watched the colour fade from my mother’s face, the smooth glow of it being

replaced by tired lines. With every sunrise, every sunset, every flower that bloomed and

shrivelled. I grew.

As I grew, I learned. The blank slate with which I came into this world changed. It grew into an

endless expanse of thought and emotion; a tumbling, rolling ocean of wonder, anger, sadness, joy,and fear interspersed with opinion. Little thoughts are born every day, every minute, in dark

corners of my mind, unfolding tentatively, creeping in slowly.

I soon became aware of the expectant eyes around me, watching me, studying my every move,

judging me. I felt the cold, unfriendly fingers of society prying into my mind. I can no longer look

at a fellow human being without judgement in my eyes. I cannot see them for what they are, for I

have changed.

I will soon step into the world, as impermanent in its nature as I am. I will attempt to understand

it. It will be demanded of me, that I come to terms with violence, dishonesty and unkindness. I

must soon take a stand on them- either condone them or condemn them. I will be asked to

partake in such cruelty in order to survive in this world and I shall do so, justifying it, calling it

inevitable, in order to silence my conscience. I will settle comfortably into a mundane, quiet life,

revolving around a pay cheque and all the comfort that it buys. My dreams will be locked away in

a jar with the stars and moon.

I will watch the colours fade away from my eyes, my hair and my skin. I will leave behind the

vigour of my youth and keep walking. I will pass by my broken dreams, and keep walking. I willlook at my reflection, years from now, and I will be unable to find the child I left behind

underneath all the lines on my face. I will begin to lose my senses, one at a time. I shall become

prone to illness. I will watch my friends die and soon I will take my place beside them. With no

fanfare, no celebration of the life I have lived. I will quietly slip away. I will die.

We are ephemeral beings, born into impermanence. To be born, to change and then to die is our

destiny. In this world, the one thing that ties the present, the past and the future together, the one

thing that will remain long after our bones turn to dust, is change. It is not something to be

avoided or feared, but something to be embraced. I stand today on the threshold of destiny, as Ihave for every moment that I have lived and breathed and will continue to do so until I die. I

15

8/19/2019 Arthniti 2015

16/50

MARCH 2015 ARTHNITI

watch the world around me changing, as it has been since the moment it was born and as it will be

until the day it is reduced to dust.

Change is sudden, unexpected. It cannot be fought. It cannot be denied. It transcends class,

religion, everything. It is the sole universal force that guides us all. The only tool we have in the

face of this formidable force is our conscience. Unlike rocks, being constantly weathered down by wind and rain, we have the opportunity to rectify change that has happened for the worse and to

be thankful for the change that happens for the good. That is why I know that I will not succumb

to all the forces working to weather me down.

I will stand and fight with all my might to fill my life with the same wonder and fascination.

16

8/19/2019 Arthniti 2015

17/50

MARCH 2015 ARTHNITI

Greek Austerity Tales Should the ‘troika’ be more sensi ti ve the country ’s deman ds?

By : Arshiya Ra thee

Greeks drink and celebrate as the winning party Syriza gets the ‘anti-austerity’ word out to the

‘troika’ and the other EU governments. Greeks believe that their newly elected leader, Mr. Alexis

Tsipras will stand up to the new day Hades (the European Central Bank, European Commission,

the IMF and other European governments) and not fall in line with existing and upcoming bailout

program due the end of this month. Nonetheless, will Mr. Tsipras- ‘Achilles’ personified live up to

his name or default on his promises as did his predecessors after assuming the chair?

Mr. Tsipras says there has already been enough austerity measures in Europe, agreed. He further

explains that these measure have done nothing but create deflation in the country, agreed.

Greece’s debt has been increasing (from 120 per cent to 175 percent of its GDP), despite taxincreases and spending cuts and is therefore unsustainable, not agreed! Greece has been awarded

prolonged repayment periods and low interest rates, specifically in comparison to Italy and

Ireland. Greece’s debt servicing stands at 1.5 per cent of its GDP, especially in the face of primary

budget surplus in the third quarter of 2014. Greece should be the last country to rule its debt a

‘Herculean’ task.

Runs on bank deposits have been on a continuous rise in Greece, amounting to # 11 billion in the

month of January itself, adding to the declining tax revenues. These flagging conditions together

with Mr. Tsipras economic recovery plan [(i) rehire 12,000 public sector workers, (ii) put a stop toprivatisation, (iii) a benign aid to downtrodden Greeks (iv) a magnanimous rise in the minimum

wages], could bring to a close the economic recovery achieved last year(a 0.7 per cent growth in

the third quarter of 2014, putting Greece on the top performers list of the year in Europe).

What happens if Greece rebuffs the debt payments? Nothing too drastic, just that Mrs. Merkel

gets the much awaited opportunity to bust the already crumbling Greek banking system. Greece

has outstanding payments due this month and early March to the IMF; which the new

government has vowed to fulfil. Without successful conclusion of the end of February

negotiations, Greece could miss out on # 7 billion aid this year and # 13 billion by the year 2016from the IMF (since the troika seems disgruntled at the Greek government to impose enough

reforms). Greece is dependent on official foreign support; the private lending markets have shut

their doors to country in the aftermath of S&P ranking of Greece’s debt as BB+, i.e., ‘junk’; Mr.

Tsipras is in no position to strike a deal in his favour and as a result on would have to default on

most of his promises if not all. Mr. Tsipras has understood that, be it to sustain the economy or go

on a ‘spending spree’ as his campaign’s slogan screams. No wonder, the new government has

scraped off the outright debt forgiveness clause from their proposal, that too well in time! Not so

mighty anymore, huh?

17

8/19/2019 Arthniti 2015

18/50

MARCH 2015 ARTHNITI

But all said and done, Greek voters’ angst and decision in electing the left wing Syriza cannot be

disputed. The bailouts and austerity programs have forced many Greeks into poverty, youth

unemployment climbing up to 50 per cent and depression on a steep ascent. But Germany and

the IMF just would not budge; they are adamant in refusing to consider the next round of debt

relief unless Greece complies with the structural reforms (austerity courses) and continuerunning on fiscal deficits. German official Hans Peter Friedrich (a senior official in Mrs. Merkel’s

right-centrist governing coalition) has gone on record in voicing out German animosity towards

Greece - “The Greeks have the right to elect whomever they want,’’ and “We have the right to no

longer finance Greek debt”. They are not as wary of the ‘Grexit’ now as they were in 2012,

although the price would be huge for both, Greece and the rest of the continent- Greek economy

would be injured more and would trigger doubts of Spain, Italy and Portugal’s withdrawal from

the union.

Despite everything, they are not comprehending the compounded costs of austerity which Greece would have to bear. Spending cuts would drive down the Greek economy further into a

depression, deepening the wound falling tax revenues; this would force another cut to be

undertaken by the government which would lead to decreasing in private spending and in no time

the Greek economy would shrink to the size of an African one.

Mr. Tsipras four part plan [(i) keep 70 per cent of the present reforms and replace the rest with 10

new reforms negotiated and agreed upon by the OECD, instead of the troika; (ii) reduce primary

budget surplus to a mere target of 1.5 per cent of the GDP from 3 per cent in 2015; (iii) swap debt

with either ‘perpetual’ bonds- extended maturity period of 11 to 30 years or ‘GDP linked’ bonds-interest payment is linked to Greek growth; (iv) spending # 1.9 billion in ‘humanitarian

assistance’] is not without logic. Though Mr. Tsipras bargaining power is rather weak, the new

government’s proposal could be taken into account for negotiations.

Eurozone creditors should provide Greece the flexibility it is asking for in its reforms, for mutual

interests lest anything other than that, especially in the face of formerly failed reforms to revive

the Greek economy; and accord the Greek economy a chance to breathe!

18

8/19/2019 Arthniti 2015

19/50

8/19/2019 Arthniti 2015

20/50

MARCH 2015 ARTHNITI

and one that remained curiously unaffected. Now I don’t take myself for someone who is easily

alarmed, but these findings made me feel extremely uneasy.

If education is a hot pot of intellectual curiosity, I am a ladle, dipping myself into it to pour out its

soupy contents in a community food distribution programme. Over the weeks, I discovered that asocial order was beginning to form itself, a sort of hierarchy. I’m no anarchist, but a spontaneous

social reorganisation does warrant some high level primary research.

I continued my research for several weeks and found strange patterns of behaviour in those

affected by the virus. Their feathers seemed a tad ruffled and their faces screamed deceit. I saw

smiles on their faces, but terror in their eyes. It scared me. Was I the only person who noticed

this? As the weeks passed by, the terror grew and subsided intermittently. I only ever saw the

terror when they smiled, as though they were afraid of something, but were smiling it awayforcefully. Say hello to my little friend, indeed.

I also noticed that the terror was almost directly proportional to the number of periodic

gatherings that the affected population formed among themselves. Each gathering would begin

will an elevation of terror and end with its nullification. As per the data collected and my other

findings, I can only surmise that making these small huddles in local eateries served as a sort of

drug, a medical supplement, if you will.

I sit here now, perched in front of my laptop, contemplating the true purpose of this exercise and

of all life itself. After all these weeks, I realised that I had hitherto only witnessed an incubation

period. My readings seem to be going haywire, much like the behaviour of the affected

population. More and more people are beginning to come under its sway almost voluntarily.

People are running around in organised chaos and the virus has spread to other educational

institutions as well. It seems that it is nigh impossible for the human body, nay, the human brain,

for this is an affliction of the mind, to remain immune against this all powerful strain. It’s hard to

resist the prospect of official merrymaking in the name of a higher power. I find myself wondering

whether I will be immune to this epidemic. Maybe it is a question of when rather than if. There

are questions that science has failed to answer and when questions posed by any research exercise

find no conclusion, it is best surmised that forces, other than the ones that human beings are

acquainted with, are in operation. It is time to put myself at risk and expose myself to those

forces…

To be continued

20

8/19/2019 Arthniti 2015

21/50

MARCH 2015 ARTHNITI

Chapter 2 By: Aishwarya Karunakaran

Distressed faces and agitated voices seem to have taken over the third, fourth and fifth floor of our

building. If that wasn’t enough even NCC is doomed. Posters were hung and flyers were handed

out. Laissez Faire 2015 is here.

In the last few months, LF ’15 had taken over every SSE student’s life, regardless of whether one

was involved in the fest or not. Students, who once mocked this very fest, now work tirelessly for

the same. What brought about this change? The answer is as much a mystery as the Bermuda

triangle.

Over the last one week, the preparations for Laissez Faire 2015 intensified. The college was filled with pockets of students grooving to the latest Bollywood tunes, pumping their fists in the air like

their very movements were vital for a continued flow of Oxygen on campus. Volunteers ran after

their preys with passes for various promotional events like hungry predators. Event heads, who

probably have 75% attendance over a span of five semesters, now talk about cash flow and

demand-supply problems like those Suits on Reuters. Hunched backs in the computer lab sit and

prepare questions for the quiz, while some others try to collect money from students desperately

clutching on to their wallets. To make things more difficult, the fest is that one time of the year

when even the most prodigal student will put a miser to shame.

The LF bug hasn’t hit just the students. The teachers, much like the students, can be found

scuttering around campus putting pieces together for the big day. LF ’15 is the only thing on

everyone’s mind.

Months of hard work and drudgery will be put to test today. The outcome, while unknown, should

be of least importance. What one must take note of however, is the consistent and relentless

efforts put in by the Fest committee and faculty. With every minor and major setback, they choseto rise up and fight, instead of backing down. LF -15, if nothing, will be a robust reminder of the

efforts put in by the LF ’15 team.

Chapter 3 By: Padmakshi Karanjkar

It came, it saw, it conquered. LF15 was a fest to remember. And why wouldn’t it be? The

organizers put in their blood and sweat into bringing about one of the most promoted and

successful fests that SSE has seen.

21

8/19/2019 Arthniti 2015

22/50

MARCH 2015 ARTHNITI

From the countless film screenings as pre-fest events, to those during the fest, and a high-energy

after party, the organizers succeeded to weave the theme of films into the fest with élan.

The motley students of SSE, who on usual occasion refuse any sort of uniformity in their apparel,

all donned their identical blue fest tees for the duration of this fest. If this was a Bollywood movie,I wouldn’t be surprised to see them all break into synchronized dance. And I’m sure that given the

chance, they would have, for the air was charged with a contagious excitement that had been

steadily growing over the preceding weeks, and even the most blasé, sat up and took notice.

Volunteers from the various committees hustled about, making sure that everything was perfect.

Even if it wasn’t, well, as they say – the show must go on! And it did. The reels of our real-life fest

kept rolling.

Determined Event-heads turned from being like bosses into being bosses, and led their teams with panache. Dozens of students scurried all about, a few still perplexed about why they were

doing so in the first place.

Blaring out musical numbers in the afternoon certainly helped not only to amp up the

entertainment quotient, but also to reel in a greater crowd for our filmy fest. Every event had

some great participants, and went off without a hitch.

As for now, well, let’s roll the credits for this year’s Laissez Faire.

It has just one last message for you – “I’ll be back.

LF ’15Talkies: A Glance

22

8/19/2019 Arthniti 2015

23/50

MARCH 2015 ARTHNITI

LF ’15Talkies: A Glance

23

8/19/2019 Arthniti 2015

24/50

MARCH 2015 ARTHNITI

24

8/19/2019 Arthniti 2015

25/50

MARCH 2015 ARTHNITI

Dissolution Of ThePlanning Commissionby: Manasi Nikam

On Independence Day, PM Narendra Modi declared his intent of abolishing the Planning

Commission and instead adopting a think tank, which will function as a guiding force forsustainable development. The new body would lead the country based on creative thinking,

public-private partnership, optimum utilisation of resources, utilisation of youth power of the

nation, to promote the aspirations of State Governments seeking development, to empower the

State Governments and to empower the federal structure.

The Planning Commission was adopted after the Soviet ‘command economy’ during the infancy of

India’s independence period. The purpose was to map out a plan for India’s agrarian economy.

The PC would allocate Central funds to states, sanction capital spending of the central

government, provide necessary co-ordination between ministries, reconciling their priorities, anda critical long view for policymakers, executing and making the Five Year Plans. The PC was also

consulted while forming the budget. Over the years, the PC emerged as a parallel cabinet.

However, now, the PM accuses the PC of having outlived its purpose. After the reforms of 1991,

the role of the PC has been reduced to setting goals for the economy which are rarely adhered to.

It is not accountable neither to the Parliament or the CAG of India. The states have complained

that the PC uses a one size fits all policy, especially while allocating funds to states. The schemes

formulated by the PC for the 5 Year Plans usually degenerate into ineffectual statements.

Secondly, as the Indian economy moves toward the capitalist side, the concept of a Planning

Commission, which was adopted in India after Joseph Stalin's socialist economy policy seems

obsolete.

More recently, the PC was criticized for spending 50,000 $ to renovate two office toilets. Another

blow came when it suggested that citizens who earn more than Rs. 27 were not poor, in a country

where almost 22 % of the population is below poverty line.

I believe that Mr.Modi's mantra of “minimum government, maximum governance” will work in

favour of the Indian economy. States will have more autonomy regarding the utilization of fundsand the process would be decentralized to a certain extent. There is no dearth of schemes for the

poor, but now ensuring that the benefits of these schemes reach the concerned is a bigger

challenge. A more dynamic system must be implemented which will address issues such as

climate change, sustainable development, infrastructure, health and education.

25

8/19/2019 Arthniti 2015

26/50

MARCH 2015 ARTHNITI

Let’s Play A Game By: Nandita Ramesh

There is no economic concept more frequently used than Game Theory, the study of strategic

decision making. Whether you are betting on the outcome of a match, or trying to decide anending for your novel; if there is more than one way, Game Theory comes into play.

Since Game Theory is nothing but the science of deduction, who better to walk you through its

intricacies than the greatest detective of all time: Mr. Sherlock Holmes. Assuming you are a fan or

have at least watched BBC’s Sherlock, let’s take the example of the last scene of the first episode

(‘Study in Pink’) to see how fascinating Game Theory really is. The episode features a serial killer

who kills his victims by making them eat a pill from a bottle at gunpoint. He asks them to choose

a pill from two identical bottles and eats the other pill himself. However, he claims to know which

pill is poisoned and which is not. In the aforementioned scene, he forces Sherlock to play his‘game’.

Here if we consider the payoffs as 0 for eating the good pill and -1 for eating the poisoned one

and the pills are named as A and B respectively, then the payoff matrix will look somewhat like

this.

Since both of them can’t take the same pill, that section of the matrix is left blank. Therefore, both

the payoffs that do exist provide a 50-50 chance to each player to live and thus, there is clearly no

optimal strategy. The killer has perfect knowledge (he knows which pill is poisoned) but he is

forced to act according to whatever strategy Sherlock chooses. Sherlock on the other hand, lacks

knowledge or has imperfect knowledge and thus, unless he finds out which pill is poisoned, he isindifferent to both choices. There is no Nash equilibrium either.

Now let us consider the addition of a third possibility. Supposing Sherlock is given another choice

to either play this game or get shot by the killer, as is the scenario in the episode, then he can

either take the 50% chance of staying alive or 100% chance of being dead. Since Sherlock is

rational, the logical conclusion he arrives at is choosing to play the game. Here he adopts a

maximin strategy, a commonly used strategy that maximizes the minimum gain that can be

earned.

Now let us add to the current scenario the possibility that the gun is not real and that both

Sherlock\killer A B

A - 0,-1

B -1,0 -

26

8/19/2019 Arthniti 2015

27/50

MARCH 2015 ARTHNITI

Sherlock and the killer are aware of this. Here we will consider the payoff for choosing the gun

from Sherlock’s perspective and the payoff for choosing the game, while the circumstance of

whether the gun is real is written here as the killer’s ability to shoot.

Here it is assumed that the killer gets a greater payoff in terms of satisfaction when Sherlock plays

the game, but still gets some payoff if he can kill him using a gun. Whereas, Sherlock gets

maximum payoff when there is complete assurance that his life is not in danger, but he still gets

some payoff when he plays the game too because he has a 50% chance of winning. -1, the lowest

payoff or the greatest loss, represents the scenario in which he is surely going to die. Sherlock gets

maximum payoff when he chooses the gun and it isn’t real. Maximum payoff for the killer on the

other hand, is when he gets Sherlock to play the game, regardless of whether he can or cannot

shoot. His payoff is dependent on Sherlock’s strategy since he has given Sherlock the first mover

advantage (advantage involved with moving first, i.e., taking a decision before the opponent so

that the opponent has to change his/her strategy accordingly).

Since Sherlock can’t be sure whether the gun is real, he would choose to play the game, because in

the event that the gun is real, there is a 100% chance that he will die, while by choosing to play the

game, he gives himself at least a 50-50 chance at survival.

This situation is somewhat similar to the prisoner’s dilemma, a classic example of a Game Theory

game, in which the prisoner chooses to confess because he isn’t sure whether the other prisoner

will or not. However in this case, the dilemma is only Sherlock’s and not of both the players.

However, in the event that Sherlock knows for sure that the gun is a fake, he knows that the killer

cannot shoot and can thus maximize his payoff by choosing not to play the game and choosing the

gun, as he does in the show.

So, here it is - a thorough analysis of the plot a popular BBC series using Game Theory. Game

Theory is a dynamic tool used by economists which finds its application in a host of unexpected

places. Just like the ‘science of deduction’, it requires you to think of all possible outcomes and

choose the one that leaves you in the best possible position, all the while remaining two moves

ahead of your opponent. This nifty little theory will definitely leave you ‘Sherlocked’.

SHERLOCK\KILLER Can shoot Can’t shoot

Chooses game 1,2 1,2

Chooses gun -1,1 2,0

27

8/19/2019 Arthniti 2015

28/50

MARCH 2015 ARTHNITI

Smart Cities India should be realistic and must prioritise wisely

By: Krishnakali Vaishnav

The ‘Modi budget’ of 2014-15 signed up India for the Smart City craze overtaking the world. TheFinance Minister, Mr. Arun Jaitely had allocated Rs.7060 crores for creating hundred Smart

Cities across India. (Srivas, 2014) More recently, Smart Cities wove their way into the

conversations between the Indian Prime Minister and the US president, amongst discussions

about nuclear deals, military projects and joint strategic statements. The surprising amount of

attention accorded to this new concept calls for a closer look.

Smart Cities are not as new a concept as we would like to believe. It was put forward by IBM as a

part of their ‘Smarter Planet’ campaign in the year 2008, when the world was hit by one of the

worst financial crisis of its time. By 2009, this concept had captured the imaginations of countries

like the USA, China, UAE and South Korea who immediately began to concentrate on investing in,

experimenting with and developing this idea which finally lead to the establishment of several

such Cities in these countries with support from IBM and several other players such as Google,

Amazon , Cisco etc. (What are Smart Cities?, 2014)

Smart Cities are designed to be hubs of economic and business activity, having top -of- the- line

physical and social infrastructure backed with new age technology and environmental friendly

power. Good governance and effective institutional infrastructure are also supposed to be

characteristic of these Cities. These Cities rely upon advanced information technology and

communication systems to make the city ‘smarter’ and eliminate the problems faced by the

current cities such as superior level- such as real time information on traffic congestion, smart

grids to ensure optimal consumption of water and energy, automated sewage disposal systems

and so on.

The primary aims of these Cities are to foster innovation and encourage business via streamlined

regulations, advantageous taxation system and other such incentives and concessions.

Smart Cities are viewed as a medium to control the rapid urbanization observed in most

countries. The stride of migration from the rural to urban areas has been increasing and it is

estimated that by 2050, 70% of the world population will be living in Cities. India with its status

as the fastest emerging nation is no exception. India’s population living in urban areas is expected

to increase from 30% of the population in 2014 to around 41% of the population in 2030. It is

estimated that the level of urbanization will reach 50% by 2039. (East Asia Forum, 2014)These

new Cities are expected to absorb the influx of rural population into the cities so as to enable

India to progress steadily on its growth path.

28

8/19/2019 Arthniti 2015

29/50

MARCH 2015 ARTHNITI

It is clear that the idea of Smart Cities and the potential benefits of setting up one are lucrative to

say the least but India must cautious. This sudden flurry to set up Smart Cities may not be

prudent after all.

This Smart Cities at the moment are nothing but experiments, very expensive experiments, which

India has ambitiously taken up and the chances of them being successful seem to be very low.

India may have the technology to make Smart Cities ‘smart’, however, achieving success in Smart

Cities requires more than technology. The Metros of India, which are supposed to be the most

developed poles of India, have yet to find solutions to the poor infrastructure, substandard

constructions, unsustainable growth and unbearable pollution. This state of the Metros is a clear

indication of the plight of the rest of the cities in the country. Hence, it is doubtful as to whether

setting up of Smart Cities would resolve these problems and improve the lives of the common

man.

City planning has never been given priority in India and so far nothing significant has been done

to control urban sprawl. This sudden drive to create superlative Cities with exceptional

infrastructure and urban services has caught our bureaucrats by surprise. The urban

administration and town planning authorities have the responsibility to construct these Cities and

resource crunch, in terms of funds and energy, are cited as one of the major obstacles in the path

of building Smart Cities. Clearly, this sudden drive to build efficient well planed urban services

has been a major leap and India does not have the physical or human capital required to support

this leap adequately.

It seems to be more advisable to spend the funds allocated towards building Smart Cities in

improving the condition of the existing cities and improving the quality of life of their existing

citizens. These funds could be used to create satellite cities to decongest the existing large cities

bursting at its seams and hence relive the pressure on infrastructure. In other words, it is more

advantageous to pursue setting up cities with smart elements rather than concentrate on Smart

Cities.

Acquisition of land for setting up Smart Cities is another technical deterrent regarding the setting

up of these Cities is the acquisition of land. In a Communist country like China, land acquisitionhas never been a problem whereas in a democracy like India, acquisition of land is a delicate issue

and is very controversial as of today. Unlike China, India does not have the legal power or

resources to takeover land stating the purpose of development. Despite governmental efforts to

pass the Land Acquisition Act 2014, to replace the older less friendly set of regulations set in

1984, this problem is bound to be a major hiccup in the plans for setting up Smart Cities and may

result in social and political turmoil. (Times of India, 2015)

The idea to build a hundred Smart Cities is aimed at improving the business ecosystem of India.

The government however must realize that the business climate of India may be improved by

29

8/19/2019 Arthniti 2015

30/50

8/19/2019 Arthniti 2015

31/50

MARCH 2015 ARTHNITI

SSE Wins The SIU Football Tournament!

Symbiosis School of Economics beatSymbiosis Institute of Design to win the

Symbiosis International University FootballTournament!

SSE is the only other institute other than Symbiosis Centre for Management Studies to win thistournament!

31

8/19/2019 Arthniti 2015

32/50

MARCH 2015 ARTHNITI

The football team that has had its fair share of failures, seems to have picked themselves up andemerged victorious.

SSE beat SID in a penalty shoot out with the winning goal being scored by Dhruv Patwa.

32

Sauvanik Das, Captain and Goal Keeperof the team was awarded ‘Best Player’ atthe SIU tournament.

Das was also awarded the Hiraskar Award for Extraordinary Achievement inSports on the Annual Day.

8/19/2019 Arthniti 2015

33/50

8/19/2019 Arthniti 2015

34/50

8/19/2019 Arthniti 2015

35/50

MARCH 2015 ARTHNITI

Love Undoubting By: Sebin Nidhiri

Snuggled in him she slept,

Sure of his warmth, her every night.

Lulled by his word, an untruth her truth,

Her peace in undoubted trust, her innocence too innocent.

Deafness her shield, Silence her sword to ward off truths unkind

For in ignorance,

her bliss, her he, is hers alone.

For that girl I pray.

If only,

Deafness and silence could true an untruth,

Undoubted trust could rewrite the written

Her love, his love hers make.

If only.

To that girl I say

Joy, not bliss. Transience, not eternity.

35

8/19/2019 Arthniti 2015

36/50

MARCH 2015 ARTHNITI

Contribution Of The Indian ForgingIndustry To The Growth Of The IndianEconomy

By: Padmakshi Karanjkar

Shloka Jaiswal

From the smallest wrench in your toolbox, to the integral, high precision components of a

Maserati, forging is responsible for the creation of a host of metal instruments and tools. The

forging industry in India is a mighty one. It depends heavily on steel supply, which is in

abundance in India. The wares of this industry are mostly supplied to the automobile industry.

Forging is basically a process by which metal is compressed and converted into the required

shape. Economically speaking, this industry is crucial to a country such as India.

The main input required for forging is steel. Not only is steel abundantly produced in India, but it

is also dumped into this country by China. Though this affects the steel industry negatively, there

is a positive effect of this on the forging industry itself. This is because there is an abundant

supply of the raw material, which leads to low input costs. Value-addition is the key benefit of

forging. This labour-intensive process produces high quality products, which are either exported

directly or made into vehicle components that are then exported. There is usually a generous

profit margin of 13-15% associated with this industry.

The benefits of the forging industry to the Indian economy are multi-fold:

The forging industry is very labor intensive, it employs directly and indirectly about 200,000

people. From a period between 2003 and 2008, the industry registered a Cumulative Average

Growth Rate of 29%. It also contributes to the Current Account Balance as 10-15% of the produce

is imported abroad ,mainly to the US, Europe and China. In 2010-11, the estimated value of

exports was $800 million USD. This increase in the export of value added products is a move

towards a developed economy. This is because a large number of Original EquipmentManufacturers (OEMs) started sourcing parts from Indian firms. Domestically also, the

automotive boom in the first decade of the 21st century resulted in micro and small scale

industries getting a foothold onto bigger and more profitable production models. In 2010-11 the

estimated investments in the forging sector totaled $600 million

Hence the forging industry contributes immensely to reducing India’s unemployment and

Current Account Deficit.

However, a number of factors have affected the industry’s ability to contribute to the nation’seconomy. High prices of production inputs have dampened growth prospects. Recently, the

36

8/19/2019 Arthniti 2015

37/50

MARCH 2015 ARTHNITI

industry has been lobbying for a ban on exports of high grade iron imports to China to reduce the

price of the ore in India. Alternatively, the implementation of a 30% export duty has been

proposed. The lowering of corporate taxes has also been pleaded, making the case for the

reintroduction of the Goods and Services Tax at a rate of 8.5% instead of the current 12.5% VAT,

which will bring it on par with the taxation levels in developed economies. Stringentenvironmental norms and policy paralysis also affected the industry growth rate. Rising oil prices

increase the costs of running furnaces and quenching heated products

Despite these drawbacks, forging makes a significant contribution to the growth of India's

economy. It provides employment opportunities to millions and generates a noteworthy revenue.

Through the years, companies such as Bharat Forge (founded in 1961) and Mahindra Forgings

have been instrumental in India's economic growth.

The forging industry is a fundamental industry. It creates not only employment opportunities, but

also business and production opportunities for MNCs which want to produce cheaply in India.

Thus, the growth and progress of the forging industry catalyze the advancement of not only

related industries in India, but of the Indian economy as a whole.

37

8/19/2019 Arthniti 2015

38/50

8/19/2019 Arthniti 2015

39/50

MARCH 2015 ARTHNITI

for the economy. India is the largest democracy in the world with more than 814 million people

eligible to vote. The process of elections is inevitable but India can't afford to spend 5 billion

dollars every election, when majority of the country's population lives in acute poverty. It is time

for the Indian government to consider a more accountable and sustainable form of funding so

that the money can be diverted to more productive investments.

39

8/19/2019 Arthniti 2015

40/50

MARCH 2015 ARTHNITI

Faculty InterviewOur faculty members play an integral part of our lives. Whether it’s for attendance or getting the 8

AM canned, they play very influential roles in our lives. Yet, as students, we only get to see one

side of our faculty members. To change this, Sarayu and Padmakshi conducted an interview with

KKR sir, Abhinav Pal sir and Shreya ma’am about their lives beyond SSE!

Tell us something about yourself that we don’t know already - any hobbies, talents?

S: I was in the editorial board in school and college, and was a consistent student. Other than that

I have stayed in Bombay, Pune, Calcutta, Delhi. Pune remains my favourite.

A: I can beat KKR at table tennis. I have gotten a 0 in econometrics internals.

K: I have stayed in 9-10 cities. In tenth I got 36 in science, 33 in social science, but I got the

highest in Pune University.

What did you aspire to do for a career while you were in grad school?

S: Food or Movie critic.

A: Investment Banker.

K: I was busy with all other things apart from studies.

Which colleges are you from? What did you think about the others’ college?

S : SRCC has good fest.

A: Venkys (fest) is good.

K: Symbi has the best student crowd.

How was your transition from Delhi to Pune?

S: Like homecoming. Pune is like home.

A: Lovely.

K: Horrible, it was very tough, not easy. Took me around one year.

40

8/19/2019 Arthniti 2015

41/50

MARCH 2015 ARTHNITI

Did you actively participate in extra-curriculars? Fest preparation?

S: I was involved in debates, dramatics, even organized a mass bunk, shut the class, etc. However

the teachers didn’t believe that it was me because I was known for being sincere and well behaved.

A: I used to play everything - table tennis, badminton, gaming. I was a ‘nerd’ till 12th standard butI did miss my re-internals due to table tennis. In my years of undergrad, I got 40%, 5%, and 3%

attendance respectively.

K: I am passionate about cooking, photography and editing, and I love driving, And of course I

love trekking and teaching!!

What are your future plans? How does SSE factor in?

S: My future plan is to do more research in Urban Policy.

K: To open Ladakh School of Economics(LSE) in 8-10 yrs.

A: Be the deputy director in KKR’s institute.

Name one thing you like about SSE and one thing you wish you could change. (Grading pattern,

number of projects, etc.)

S: Colleagues, kids, curriculum are what I like about the college. Processes could be more

organised and timely.

A: Colleagues , kids and the liberty.

K: Colleagues, Students and curriculum, I have many opportunities and flexibility in terms of

what I want to teach.

Your funniest or most memorable experience in SSE?

S: Feedback received - Geet going to Bhutan, the gratitude I got from him boosted my morale.

Best memory I’ll take away from here.

A:Bashing kkr at table tennis with 21-0 score.It was memorable because he was boasting a lot

about his tt skills.

K: SIU Football win, I almost cried.

41

8/19/2019 Arthniti 2015

42/50

MARCH 2015 ARTHNITI

What do you each think of each other?

S: AP is a great stress buster, funny, learned about good movies from him. KKR has always been a

huge help from the start, he’s the first person I would go to.

A: Shreya is studious, a nice colleague, KKR is funny, helpful,

known as the “Soldier of SSE”,knows everything about SSE, is very student-friendly.

K: Shreya is punctual, dedicated, committed, sincere, a wonderful person, good human, always

willing to help. She should be more fun. AP is like a 16 yo kid, very candid, straightforward,

always ready to help. Never says no.Very nice colleague(s), AP has habits similar to mine. Both

performed as soon as they joined. As opposed to other new teachers, who often learn on the job.

How does it feel to be the only male teachers at SSE?

A: We can discuss certain things only with each other.

K: I can do things with AP that I can’t with females. There are certain boundaries with female

teachers.

What advice would you give to us?

S: Students need to work hard, in everything, before giving up. Never give up, always try toimprove.

A: Graduation is a time when you should have fun and study. Grades are overrated.

K: Be passionate about whatever you want to pursue. Always give your best and don’t worry about

what others say.

42

8/19/2019 Arthniti 2015

43/50

MARCH 2015 ARTHNITI

Rationale Behind The Irrational By: Nandita Ramesh

Economics is nothing if not for assumptions. And one of the biggest assumptions made concernsthe existence of Homo Economicus- a rational being, who has an internally consistent set of

preferences within which he tries to maximize his utility.

The truth although, to quote Gregory House, is that everybody lies . While economists would like

to believe that humans back up all their acts with practical reasoning, the truth is far from it. Most

decisions are based on impulse, emotions and herd mentality, or the tyranny of the majority.

If you shopped like crazy on Flipkart’s ‘Big Billion Day’ when you really didn’t need anything you bought, you probably broke the hearts of economists everywhere. That was an instance of the

retailing major exploiting its consumers ‘irrationality’ for its commercial benefit. It created a fake

scarcity by plastering ‘sold out’ boards on major categories, to drive a sense of urgency. What’s

more, neuroscience research suggests that portions of our brains flare up when we see a discount

or lower than expected price. For example, there is nothing that entices us to buy a sweater for$ 500 if we don’t need it. However, if the same sweater is shown to be worth $ 700 but available at

a discounted price of $ 500, it will most likely catch our eye. It’s the secret to success of all major

sales and offers, much to the horror of economists who believe in rational existence.

There also exists a phenomenon called decision fatigue. Psychologists say that our brains tend to

get tired when faced with a lot of decisions and choices at once, and tend to make bad or irrational

decisions toward the end due to ‘ego depletion’. Supermarkets keep candy near the payment

counter, knowing that tired brains would not be thinking straight, and would buy the candy

regardless of trivialities such as wants or needs.

Another popular concept is of ‘hyperbolic discounting’. People and their perception of time seem

to be subjective in nature. If you are told that the mobile you want will be available only after 10

days, but a higher, more expensive model is available right now, a person is likely to buy the

higher model as it gives him immediate rewards. On the other hand, if the model he wants will be

available only after 10 days, but the higher model will be available in 8 days, one would prefer

waiting for the model he wants.

We, being as irrational as we are, are also most likely to base decisions on what we have seen or

heard recently than on economic analysis. If we see an ad too many times, or a very noteworthy

campaign, we are drawn toward the products being advertised, regardless of their prices, quality

43

8/19/2019 Arthniti 2015

44/50

MARCH 2015 ARTHNITI

or any other factors that one should consider. Trust, is also a factor that economics fails to

consider most times.

If you are leaving this page feeling dumber in any way, or if your reaction looks like the famous

Jackie Chan troll, believe me, rationality is overrated. If these irrational decisions are behind thefunctioning of real life market systems, then who is to say that rationality is of utmost importance.

This is the age of behavioral economists. Where understanding decisions is important, we rope in

the psychology, anthropology and even biology and neurology behind it all.

44

8/19/2019 Arthniti 2015

45/50

MARCH 2015 ARTHNITI

Medieval India: Trade And Commerce By: Abhishek Mukherjee

Medieval India refers to the post-classical era in India. It is marked by the rise of the South IndianEmpire of the Cholas in the 9 th century to the fall of the Mughal Empire in the 18 th century. It can

be further divided into (i) The Early Medieval Period (9 th to 13 th century) (ii) The Late Medieval

Period (13 th to 18 th century). This time period was hugely influenced by many Islamic thinkers like

Farabi, Ghazzali and Ibn Khaldun . Other Hindu thinkers whose writings influenced state and

society during that period include Sukracharya, Hemadri and Basavaraja .

This article would be covering the contrast and similarities between the Delhi Sultanate

(1206-1526) and The Mughal Empire (1526-1857) with respect to their ideas of trade, commerce

and industry under different rulers. By this article, we would be able to trace the growth of

economic thought through the 13 th Century to the 19 th Century.

This paper would be covering the following aspects of trade and commerce:

Foreign Trade

State policy

Foreign Trade

The Delhi Sultanate: During this period, India’s foreign trade was carried on by both sea and land.

The sea route involved five important regions, viz., The Red Sea, The East African Coast, The

Malaya Islands, China and other Pacific countries.

Muhammad Tughlaq (1300-1351) advocated the import of silk and horses. It is to be noted that

horses were considered crucial as part of the cavalry, and for ceremonial purposes, transport and

pleasure riding. There was a great demand for robust Arab horses during this time.

India’s exports included textiles and food grains. Some of the main trading areas were Patenxy,Diu, Gogha, and Cambay among many others. Cambay was considered the most important of all

sea ports. Its residents included rich Hindu and Muslim merchants, craftsmen and traders. It was

during this time that an extremely high demand for luxuries is observed.

The trade was mostly carried by land by the Turks and Mongols to Afghanistan, Kashmir and the

rest of Asia.

The Mughal Empire: The Muslims dominated the sea-borne trade during medieval times. This

was challenged by the Portuguese who, owing to their superior fleets and commercial leverage,

45

8/19/2019 Arthniti 2015

46/50

MARCH 2015 ARTHNITI

took over the monopoly of the sea trade, which was later on also shared by the Dutch and the

English.

The variety of articles of trade also seems to have gone considerable change during the Mughal

period. Imports shifted from being just luxuries to also including consumer goods, raw materials

and limited luxuries. Consumer goods consisted of metals for building and military purposes.

Raw materials consisted of silk, perfumes, drugs and other necessities. Exports also expanded to

spices, opium, sugar and rice.

It is to be observed that there was a favourable balance of trade during the medieval period since

exports exceeded imports. This was because both these empires believed in trading goods for

silver instead of other goods.

Economic Policy:

The Delhi Sultanate: Ala-ud-din Khalji’s(1296-1316) perennial warfare put an upward pressure

on the prices of necessities. He hence took the bold step of fixing the prices of food grains and

other essential commodities. He was also able to control the supply of such goods by making the

sellers of goods register themselves under the state and sell a part of their supply to the state for

military purposes. The concept of subsistence can be seen being implemented in such a way that

the sellers were left with just enough for themselves.

He also incorporated the system of tax revenues and debt collection agencies. Such a step was met

with discontent among the people, due to their reduced incomes and scarcity of food grains. Thefood grains that were bought from these sellers were stored in warehouses and were supposed to

be used in times of famines and war calamities.

By reducing the profits of these sellers, Khalji was able to create a demand for money. This was

met by introducing the concept of money lenders, who, back then were merchants with money to

invest. This was seen as an additional income for them.

The Sultan became unpopular because he put the people’s livelihood in danger for his army’s

welfare. Moreover, punishments for part payment of their respective shares was very brutal, which made the people even more scared.

The Mughal Empire: A few changes were made to the system of tax revenue collection. The people

now had an option of paying it either in cash, or as a crop share. This lead to the rise of townships

and qasabas as people now had liquidity and an option of payment. Also, the concept of

subsistence was removed and wages moved into the picture. Laws became more professional.

Penalties had to be paid in case of default of payment instead of punishments.

46

8/19/2019 Arthniti 2015

47/50

MARCH 2015 ARTHNITI

Conclusion:

Thus, we can see the parallels between the two most influential empires in the history of Medieval

India. The importance of control over maritime trade routes is evident from the success stories of

merchant accounts. Needless to say that the war did have a negative impact on the economy. On

some level, it may be argued that such war was inevitable and the measures taken by the rulers

was in the best interest of the state. Some arguments can also be made in favour of the strict tax

system, which was designed to support the army, and was also a way of making up for excess

spending on liquor, entertainment, decorations and ceremonies. Such rulers also gave away

precious stones and metals as gifts.

Arguably, these two periods have made contributions to the existing tax systems in India.

Moreover, the development of foreign trade policy can also be traced to the post classical school of

thought in India.

47

8/19/2019 Arthniti 2015

48/50

MARCH 2015 ARTHNITI

Ode On A Grain By: Shradha Kochhar (Batch of 2011-2014)

Let us step into the library of humanity; the legends, the catastrophes, the triumphs and the

struggles are set across the shelves of time, each epoch connecting and lengthening the string ofman’s story. From the Neander Valley to the New York Sky line, the progress of the human race

has been abetted and fuelled by courage, intellect, opposable thumbs and of course, food. If there

was ever an oracle of human history that could look over man’s shoulder and foretell his journey

ahead it would be the grain that sustains and defines what it means to be alive.

Agriculture giveth life and taketh away.

Man tilleth the soil and maketh hay

Until man learnt the art of cultivation he roamed the earth in social groups or herds migratingfrom food source to food source and defining the saga of the Hunter Gatherers. The Indian sub-

continent stands as a testament to man’s social evolution. 60 million years before I began typing

out said “ode on a grain” the land mass, now, India was pushing against Asia and heaving forth

one of its most distinctive features—the Himalayas and the Hindu Kush. These ranges made India

almost inaccessible by land, but the network of rivers that viscerally criss-cross the country not

only made life possible, but allowed it to flourish. The Indus Valley and the Gangetic plains were

some of the first sites of sedentary civilizations, giving way to the birth of agriculture in the

Neolithic age.

Agriculture took its first primitive steps in India in 8000 BC with the naissance of the Neolithic

age. The social structure that we see and recognize today came into being as man settled into

villages and towns, notably in the middle-eastern Sumerian cities, and the Vedic civilization.

Animal husbandry was realized in the new domestic setting of life. Implements were invented and

techniques were refined (the wooden plow, threshing and storage), evidence of both of which can

be found in various vedas like the Rigveda and the Samaveda.

So as we turn to the next stanza of my ode we surmise that India has deep agricultural roots.Flipping through the leaves of the agrarian history of India we see that as BC melted into AD the

grain that, today, helps define modern governmental policy, the poverty line, inflation, and not to

mention the survival of millions, was domesticated—rice. The Indian Gangetic plain was one of

the main areas where rice was and is cultivated. If agriculture is the life blood of civilization, then

water is at the heart of it; as any child, taking its first steps into the world of science, will tell you

that without sunlight and water, plants cannot make their own food, let alone ours; in other

words, photosynthesis cannot take place. The ancients understood this fact quite well and the

Maurya rulers in 400 BC constructed the Sudarshan Lake in South Gujarat to ensure adequate

and sustained irrigation, ironically something the modern day farmer has laid down his life for

48

8/19/2019 Arthniti 2015

49/50

MARCH 2015 ARTHNITI

especially in the Vidarbha district of Maharashtra. India became the cornucopia of exotic

produce, from spices to dyes and fabrics. India attracted merchants of the Silk route and even the

East India Company that established the British Raj.

Let us now leave the leather bound realm of antiquity and enter the modern section filled with the

fruits of capitalism and other bourgeoisie delights. The 19 th century brought with it the

agricultural power revolution as farm implements became mechanized and farming became

commercially viable once again, perhaps a precursor of times to come.

20 th century India was being ravaged by famine and struggling towards self-sufficiency in food

grain. The green revolution of the 1960s and 70s revolutionized Indian agriculture introducing

HYV seeds, fertilizers and pesticides. Though still controversial it is hard to ignore the huge

increase in yields it brought, especially in the case of the staples; rice and wheat. Today we see

about 1/3 of the entire labour force employed in agriculture or related activities, but the share of

agriculture in the GDP is only about 14%. To a student of economics or even to someone with a

sound sense of logic something does not add up. An ancient agrarian power house is left panting

for breath in the wake of modern growth and development. Sectors like manufacturing and

tertiary are riding high. With outsourcing the world’s new leitmotif, India is cashing in (or was).

The slew of problems plaguing agriculture; disguised unemployment, marginalized farmers, poor

credit facilities have led to a weak agrarian sector. Is it time for a change? And is that change

Corporate farming?

If we get down to the bones of it corporate farming involves the marriage of capitalisticcorporations to the bounty of arable land, to form the modern food industry. Producers and

buyers enter into forward contracts eliminating middlemen, the risk of transport and a harassing

number of other go between points from field and factory. The purchaser, in this case the

company enters into an agreement or contract with a farmer who promises to provide a certain

quantity and quality of produce at given date at a predetermined price hence hedging himself

against risk. The corporation in turn gets an assured amount of raw material or goods that it can

bank upon for quality (not usually so at mandis) and can hence establish the demand and supply

of its final product. The conglomerate, according to the specifications of the contract, would

provide inputs, managerial advice, even land and labour.

Contract farming and corporate farming share the same last name and are thick as thieves;

distinguishing one from the other would take the skills of an economic micro scope. This is not to

say that they are identical, but to understand the efficacy of corporate farming it would be easier

to open the novella of one such company—Godrej Agrovat Ltd.

Godrej Agrovat Ltd. is an agribusiness company involved in not only procuring and distributing

animal feed, palm oil, agri-inputs and poultry but also looks to sustainably increase crop and

livestock yield. 2011-12 saw sales of Rs 2439 crore. The oil palm plantation spans a whopping 7

49

8/19/2019 Arthniti 2015

50/50