Lifetime Achievement Award from VD GOOD International Scientist Awards 2020

 

INFLATION – SPECIAL REFERENCE TO INDIA

                                                                            -Dr. S. Vijay Kumar

        Inflation is a measure of the rate of change in prices of selected goods and services over a period of time. It is the rate at which prices of goods and services increase in an economy. It is expressed as a percentage. It is an indication of the rise in the general level of prices over a period of time. Also, it shows the fall in the purchasing power of a rupee.

Measurement of Inflation: As already said, it is the measure of the rate of increase in the prices of goods and services. However, when there  is a decrease in the rate of prices it is called deflation. Since it’s practically impossible to find out the average change in prices of all the goods and services traded in an economy (which would give comprehensive inflation rate) due to the very large number of goods and services present, a sample set or a basket of goods and services is used to get an indicative figure of the change in prices, which we call the inflation rate. Mathematically, inflation or inflation rate is calculated as the percentage rate of change of a certain price index. Generally , two methods are used for calculation of inflation. They are Consumer Price Index (CPI) and Wholesale Price Index (WPI). WPI measures wholesale level price changes. While CPI measures retail level price changes (retail inflation). CPI is one of the most widely used indicators for identifying inflation or deflation in an economy. It is the official barometer of inflation in many countries such as USA, UK, Japan, France, Canada, Singapore, and China). RBI Ex-Governor Raghuram Rajan in April, 2014 changed the policy of calculation of inflation from WPI to CPI (Consumer Price Index), because it is being more rationale (it represents the prices at which consumers buy goods and services) than WPI and it neglects services and the bottlenecks between a wholesaler and a retailer. CPI is more of a common man’s index as it provides numbers on the retail prices of the goods and services consumed by the average Indian, both rural and urban; it is a true indicator of the cost of living.

Inflation rate is typically calculated using the inflation rate formula:

(B – A)/A x 100 where A is the starting number and B is the ending number. The formula requires the starting point (a specific year or month in the past) in the consumer price index for a specific good or service and the current recording for the same good or service in the consumer price index. Subtract to find the difference between the two numbers. This difference indicates how much the consumer price index for the specific good or service has increased. Divide those results by the starting price (the price reported for the date in the past rather than the current date). This will give you a decimal. To convert this number to a percentage multiply by 100. This will give you the rate of inflation. 

Calculation of Inflation in India: A base year is used to compare the measure of rates. For simple understanding, this can be taken   as 'first' year in the time set. Prices in the base year are often taken as 100 to simplify calculations. Inflation as measured by the consumer price index reflects the annual percentage change in the cost to the average consumer of acquiring a basket of goods and services that may be fixed or changed at specified intervals, such as yearly.

In India, there are four consumer price index numbers, which are calculated, and these are as follows:

1.     CPI for Industrial Workers (IW).

2.     CPI for Agricultural Labourers (AL)/ Rural Labourers (RL).

3.     CPI (Rural/ Urban/ Combined).

While the first two are compiled and released by the Labour Bureau in the Ministry of Labour and Employment, the third by the Central Statistics Office (CSO) in the Ministry of Statistics and Programme     Implementation.

4.     CPI for Urban Non-Manual Employees (UNME).

How is Consumer Price Index calculated?

The CPI is calculated with reference to a base year, which is used as a benchmark. The price change pertains to that year. Remember, when we calculate the CPI, note that the price of the basket in 1 year has to be first divided by the price of the market basket of the base year. Then, it is multiplied by 100.

Consumer Price Index formula:

One can measure inflation using CPI or consumer Price Index.

Inflation = ((CPI x+1 – CPIx)/ CPIx))*100

Where, CPIx is Initial Consumer Price of Index

Inflation is calculated using CPI. CPI measures the price change in goods and services by taking a weighted average value of each of them.

CPI = (Cost of Fixed Basket of Goods and Services in Current Year/ Cost of Fixed Basket of Goods and Services in Base Year) *100

Explanation: The percentage change in CPI over a period of time is the inflation over that period for consumer goods. It measures only retail inflation. CPI is determined using a basket of 299 commodities. It calculates the price change of all these 299 goods and services by taking a weighted average value of each of them. Example: Inflation can be better explained with an example. A liter milk used to cost INR 25 in the year 2010. Now the same liter of milk costs INR 50 in 2020. The milk has become dearer (costlier). With the same INR 25, one can get only half a liter of milk in 2020. This is called the falling purchasing power of the currency. Purchasing power of money will fall when the same amount of money is used to buy less of a product as time passes.

Causes of Inflation: Main causes of inflation in India are:

1.     Monetary Policy: It determines the supply of currency in the market. Excess supply of money causes inflation. Hence decreasing the value of the currency. The Reserve Bank of India (RBI) decides the monetary policy in India.

2.     Fiscal Policy: This policy is decided by the Government. It monitors the borrowing and spending of the economy. Higher borrowings (national debt), result in increased taxes and additional currency printing to repay the national debt. This, in turn, increases the money supply in the country.

3.     Demand Pull Inflation: Increase in prices due to the gap between the aggregate demand (higher) and aggregate supply (lower).

4.     Cost Push Inflation: Higher prices of goods and services due to increased cost of production.

5.     Exchange Rates: Exposure to foreign markets are based on the dollar value. Fluctuations in the dollar exchange rate have an impact on the rate of inflation of domestic country.

Types of Inflation:

1.     Demand Pull inflation: It occurs when the aggregate demand for goods or services is higher when compared to the production capacity. The difference between aggregate demand and aggregate supply (shortage) result in price appreciation.

2.     Cost Push Inflation: It occurs when the cost of production increases. Increase in prices of the inputs (labour, raw materials, etc.) increases the price of the product.

3.     Built In inflation: Expectation of future inflation results in Built in Inflation. The rise in the prices results in higher wages to afford the increased cost of living. Therefore, high wages result in increased cost of production, which in turn has an impact on product pricing. The cycle, hence continues.

Effects of Inflation:

The rise in the inflation rate can cause a fall in purchase power.

Inflation could lead to economic growth (increase in GDP growth rates) as it can be a sign of rising demand.

It could further lead to an increase in costs due to workers demand to increase wages to meet inflation. This might increase the unemployment rate as companies will have to lay off workers to keep up with the costs. High unemployment rate further leads to a fall in GDP growth.

Domestic products might become less competitive if inflation within the country is higher. It can weaken the currency of the country. 

Controlling Inflation:

Change the monetary policy by adjusting the interest rates. Higher interest rates decrease the demand in the economy. At the same time, lower rates of interest increase demand. This results in lower economic growth and therefore, lower inflation.

Controlling the money supply can also help in preventing inflation. The money supply is the total value of money in circulation in the country. In India, the Reserve Bank of India controls the money supply.

Higher Income Tax can reduce the spending, and hence resulting in lesser demand and inflationary pressures.

Introducing policies to increase the efficiency and competitiveness of the economy helps in reducing the long term costs.

Consumer Price Index or CPI as it is commonly called is an index measuring retail inflation in the economy by collecting the change in prices of most common goods and services used by consumers. Called market basket, CPI is calculated for a fixed list of items including food, housing, apparel, transportation, electronics, medical care, education, etc. Note that the price data is collected periodically, and thus, the CPI is used to calculate the inflation levels in an economy. This can be further used to compute the cost of living. This also provides insights as to how much a consumer can spend to be on par with the price change.

To conclude, although there were certain difficulties in shifting from WPI to CPI for the measurement of inflation in India, it is in the right direction after a long time.

 

 

Lord Vishnu and His Incarnations

Lord Vishnu is the supreme god of the Vaishnava Sampradaya.

Lord Vishnu Family: The wife of Lord Vishnu is Goddess Lakshmi, the goddess of wealth and prosperity. It is believed that the Goddess Lakshmi resides in the heart of Lord Vishnu and devotees who worship Lord Vishnu are also blessed with the wealth and prosperity. As per South Indian traditions, Shridevi and Bhoomadevi are the two consorts of Lord Vishnu. Hence, in few images, Lord Vishnu is flanked by two consorts.

Lord Vishnu resides in Kshir Sagar, the milky ocean. Lord Vishnu rests on the couch made of the serpent Sheshnag. The lotus, the beloved flower of Goddess Lakshmi, originates from the navel of Lord Vishnu and Lord Brahma mounts on the same flower. Lord Vishnu and Goddess Lakshmi have 18 sons, named Devasakha, Chiklita, Ananda, Kardama, Shriprada, Jataveda, Anuraga, Samvada, Vijaya, Vallabha, Mada, Harsha, Bala, Teja, Damaka, Salila, Guggula, Kuruntaka.

Lord Vishnu Festivals and Vrats

Ekadashi

Anant Chaturdashi

Lord Vishnu Mantra

One of His most important Mool Mantra-

Om Namoh Narayanaya। Om Namoh Bhagavate Vasudevaya॥

Lord Vishnu Incarnations and Swaroop:

Actually, Incarnations are divided in to 3 types. They are Amsha Avathaar for example: Vyasa. 2. Paripurna Avathaar for example: Lord Krishna. 3. Archana Avathaar for example: Lord Srinivasa.

There are 10 popular incarnations of Lord Vishnu which are popularly known as Dashavatara are Purna Avathaaras. 

1.Matsya

2. Kurma

3. Varaha

4. Lord Narasimha

5. Vamana

6. Parashurama

7. Lord Rama

8. Buddha (Balarama)

9. Lord Krishna

10. Kalki

Out of these ten - four namely 1.Matsya 2. Kurma 3. Varaha 4. Lord Narasimha belongs to Krutha Yuga (Satya Yuga), the other  5. Vamana 6. Parashurama 7. Lord Rama  belongs to Thretha Yuga, Remining ... 8. Lord Krihsna 9. Balarama (Buddha) belongs to Dwapara Yuga. The last one Kalki yet to be incarnated would belongs to Kali Yuga.

Dashavatara is the most popular list of incarnations of Lord Vishnu. However, another list which gives 24 incarnations of Lord Vishnu is also popular among devotees of Lord Vishnu.

1.   Adi Purush Avatar - pre-eminent man

2.   Sanat Kumar – Brahma Manasa Putra

3.   Varaha Avatar - boar incarnation

4.   Narada Avatar

5.   Nara Narayana Avatar

6.   Kapila Avatar

7.   Dattatreya Avatar - Datta incarnation

8.   Yajna (यज्ञ) Avatar – Yajna born to Prajapati and Akuti

9.   Rishabha Avatar – Rishabhadeva Avatar

10.                     Prithu Avatar

11.                     Matsya Avatar – fish incarnation

12.                     Kurma Avatar or Kachchhap Avatar – tortoise incarnation

13.                     Dhanvantari Avatar – the Lord of medicine

14.                     Mohini Avatar – incarnation as a most enchanting woman

15.                     Narasimha Avatar – incarnation in the form of half-man and half-lion

16.                     Hayagriva Avatar – incarnation with horse face

17.                     Vamana Avatar – incarnation as a dwarf

18.                     Parashurama Avatar

19.                     Vyasa Avatar – Veda Vyasa incarnation

20.                     Shri Rama Avatar

21.                     Balarama Avatar

22.                     Shri Krishna Avatar

23.                     Buddha Avatar

24.                     Kalki Avatar – Lord Vishnu will be incarnated as Kalki at the end of the Kaliyuga

Lord Vishnu Temples

Padmanabhaswamy Temple, Thiruvananthapuram

Sri Ranganathaswamy Temple, Srirangam

Jagannath Temple, Puri

Badrinath Temple, Badrinath

Dashavatara Temple, Deogarh

Important Dashavatara - Lord Vishnu 10 Incarnations:

1. Matsya was the first incarnation of Lord Vishnu during Satya Yuga.

2. Kurma was the second incarnation of Lord Vishnu during Satya Yuga. 

3.Varaha was the third incarnation of Lord Vishnu during Satya Yuga. 

4.Lord Narasimha: 

He was the 4^th incarnation of Lord Vishnu. On Narasimha Jayanti day Lord Vishnu appeared in the form of Narasimha, a half lion and half man, to kill Demon Hiranyakashipu.

As per the Bhagwat Purana, Vamana was the fifth Avatar out of Dashavatara of Lord Vishnu and His first incarnation in the Treta Yuga. After the first four Avatars in the animal form, namely, Matsya (fish), Kurma (tortoise), Varaha (boar) and Narasimha (lion), Vamana was the first Avatar of Lord Vishnu in the human form. Vamana was born in Treta Yuga to Goddess Aditi and Rishi Kashyapa on the Dwadashi Tithi of Bhadrapada Shukla Paksha during Abhijit Muhurat when the Shravana Nakshatra was prevailing.

5. Vamana:

   As per the Bhagwat Purana, Vamana was the fifth Avatar out of Dashavatara of Lord Vishnu and His first incarnation in the Treta Yuga. After the first four Avatars in the animal form, namely, Matsya (fish), Kurma (tortoise), Varaha (boar) and Narasimha (lion), Vamana was the first Avatar of Lord Vishnu in the human form. Vamana was born in Treta Yuga to Goddess Aditi and Rishi Kashyapa on the Dwadashi Tithi of Bhadrapada Shukla Paksha during Abhijit Muhurat when the Shravana Nakshatra was prevailing. Vamana Avatar Legends. Lord Vishnu incarnated as Vamana to restore the reign of God Indra on Swarga Loka. King Bali, a great devotee of Lord Vishnu, overthrew Indra and established himself as the king of Swarga Loka. Despite being the Vishnu devotee and a munificent king, Bali was cruel and proud. He wielded his powers to threaten the Gods and Brahmins. By abusing his powers on Gods and Humans alike, the invincible king Bali expanded his kingdom and became the king of Swarga Loka, Bhu Loka and Patala Loka.

Indra, after being dethroned from his own kingdom, along with other Deva approached Lord Vishnu for help. Lord Vishnu assured Indra by saying that He would take birth as the son of Aditi and Kashyapa, in the form of dwarf Brahmin to save the three Loka from the cruelties of Bali. Lord Vishnu, to fulfil His promise, incarnated as Vamana or a dwarf monk, approached King Bali where the later was performing Ashvamedha Yagya. Vamana asked 3 steps of land as Bhiksha from Bali, to which Bali readily agreed. Vamana immediately transformed into a gigantic form and measured the whole earth in one stride. In the second stride, He measured the heaven. When Vamana Dev was about to take the third step, Bali realized that the dwarf monk was no other than Lord Vishnu Himself and for the third stride, offered his head. To honor the benevolence of His devotee, instead of killing Bali, Lord Vishnu pushed him to the Patala Loka or netherworld. Lord Vishnu also granted a boon to Bali, which allowed him to visit his subjects on Earth once a year. The annual homecoming of king Bali is celebrated in Kerala on Onam and in rest of the country on Bali Pratipada.

6. Parashurama Avathaar:

Parashurama Jayanti is celebrated as birth anniversary of sixthincarnation of Lord Vishnu. It falls during Shukla PakshaTritiya in the month of Vaishakha. It is believed that Parashurama was born during Pradosh Kala and hence the day when Tritiya prevails during Pradosh Kala is considered for Parashurama Jayanti celebrations. The purpose of the sixth incarnation of Lord Vishnu is to relieve the Earth's burden by exterminating the sinful, destructive and irreligious monarchs that pillaged its resources and neglected their duties as kings.

According to Hindu belief unlike all other avatars Parashurama still lives on the Earth. Therefore, unlike Rama and Krishna, Parashurama is not worshipped. In South India, at the holy place Pajaka near Udupi, one major temple exists which commemorates Parashurama. There are many temples at the western coast of India which are dedicated to Lord Parashurama.

The Kalki Purana states that Parashurama will be the martial guru of Shri Kalki, the 10^th and final Avatar of Lord Vishnu. It is not the first time that 6^th Avatar of Lord Vishnu will meet another Avatar. According to Ramayana, Parashurama came to the betrothal ceremony of Sita and Lord Rama and met the 7^th Avatar of Lord Vishnu. 

7. Lord Rama is one of the most respected Gods in Hinduism. He is believed to be the seventh incarnation of Lord Vishnu. Lord Rama was born during Treta Yuga out of four cyclic Yugas described in religious books.

Lord Rama was the eldest son of Dasharatha, the king of Ayodhya. Dasharatha had three wives namely, Kaushalya, Sumitra and Kaikeyi. Dasharatha performed two Yagya(s), Ashwamedha and Putrakameshti, with the help of sage Rishyasringa (ऋष्यशृंग). During Yagya, Agni sprang out from the Yagya-Kunda and handed out Dasharatha a pot of the Kheer. Agni advised Dasharatha to distribute it among his queens to get blessed with sons. Kaushalya ate half of the Kheer, Sumitra ate a quarter of it and Kaikeyi ate some of it and passed it back to Sumitra who consumed the Kheer a second time. Thus, Kaushalya gave birth to Lord Rama, Kaikeyi gave birth to Bharata and Sumitra gave birth to the twin Lakshmana and Shatrughna. Lord Rama was the eldest and Bharat was the second eldest son of the king Dasharatha. It is believed that the twin Lakshmana and Shatrughna was born two days after that of Lord Rama. The birth anniversary of Lord Rama is celebrated as Rama Navami which falls during Shukla Paksha of Chaitra month as per Hindu calendar.

Lord Rama and Bharata had dark complexion while the twin Lakshmana and Shatrughna had fair complexion. Most iconography of Lord Rama depicts Him with blue skin similar to Lord Krishna. Lord Rama carries a bow and quiver full of arrows on His back. 

8.  Lord Krishna:

He is one of the most popular Gods in Hinduism. He is believed to be the ninth incarnation of Lord Vishnu (in some regions Lord Krishna is considered as the eighth incarnation of Lord Vishnu). Lord Krishna was born during Dvapara Yuga out of four cyclic Yugas described in Hindu scriptures. Based on scripture details and astrological calculations the date of Krishna's birth is 19^th July 3228 BCE and date of Krishna's death, when Lord Krishna returned to His eternal abode of Vaikuntha, is 18^th February 3102 BCE. The present Yuga which is known as Kali Yuga started after the death of Lord Krishna. Lord Krishna was the eighth son born to the princess Devaki and her husband Vasudeva in Mathura city. However, Krishna raised by his foster parents Yashoda and Nanda in Gokul a small village in Mathura district. Lord Krishna was born during midnight on Ashtami Tithi during Krishna Paksha in Hindu calendar. All Hindus commemorates this day as Janmashtami or birth anniversary of Lord Krishna.

Each incarnation of Lord Vishnu on the Earth is with a purpose and to accomplish some definite tasks. Lord Krishna came to the Earth to kill king Kansa and to relieve the people of Braj from his torture and tyranny. Later Krishna participated in the events of the Mahabharata and Lord Krishna's participation had profound effect on the Mahabharata war and its consequences.

Lord Krishna is easily recognized by His representations. Krishna is usually shown with blue skin. He is often shown with a flute, wearing a yellow silk Dhoti and peacock feather crown. Tribhangi Mudra is the most popular pose of Lord Krishna in which He stands with one leg bent in front of the other and raises a flute to His lip in a relaxed pose. Lord Krishna never married His childhood lover Radha but He is pictured with Radha in most of the paintings. It was Rukmini who was the legitimate wife of Lord Krishna.

Lord Krishna was born in Mathura and raised in Gokul. Lord Krishna spent his childhood days with Radha and other Gopis in Vrindavan which is the site of an ancient forest.

9. Buddha: 

According to North Indians Buddha is considered as Ninth incarnation of Lord Vishnu, but South Indians believes Balarama as Ninth incarnation.

10. Kalki Jayanti is the birth annivebutrsary of Lord Vishnu in coming future. Kalki would be the tenth and the last incarnation of Lord Vishnu at the end of Kali Yuga. Special Puja is organized in Lord Vishnu temples on the occasion of Kalki Jayanti.