Uncle Scrooge's Economics

Roti, Kapda, aur makaan (food, cloth, and shelter) are the three basic needs of every person.  In the Indian context, owning one's own makaan or house is definitely an indicator of economic well-being. Helping folks achieve this dream was indeed one of the reasons that DHFL came into existence. The late Mr. Rajesh Kumar Wadhawan, promoter of Deewan Housing Finance Corporation Limited (DHFL), was convinced that no country could expect to progress sustainably if a large proportion of its population continued to be financially excluded. The solution was DHFL, which entered the Indian housing finance industry in 1984 and became an early player in the segment.  The company definitely did very well for the next twenty-seven to thirty years. Its revenues increased from Rs 103 Cr in 2001 to Rs 10,464 Cr in 2018, a CAGR of 31.2%, and its net profit increased from Rs 16 Cr in 2001 to Rs 2900 Cr in 2017, clocking a CAGR of 38%. Loan disbursements were Rs 161 Cr in 2001, which increased...

It was the "gharm mroe pardesia" moment when the Bank of Japan finally increased their interest rates, increasing borrowing costs for fellow Japanese businesses and citizens, and not being the odd man out. The Bank of Japan started its negative interest rate policy in 2016 to prevent a stronger yen from damaging the export-oriented economy and to fight deflation. A stronger currency is not good from the perspective of exports because it increases the import cost, leading to a fall in demand. Depreciating currency is lucrative for a growing economy to boost its exports. Deflation is a situation when the prices of goods are decreasing. It is the opposite of inflation. Deflation is a favorable scenario for consumers because they are able to buy more goods with the same amount of money. It is not a win-win situation, though. I know there's a lot of financial jargon in the beginning itself, but bear with me. By the end of this blog, you will be able to initiate a small talk ab...

*DISCLAIMER  This blog isn't going to be specifically about the topics I usually discuss. I usually talk about individual companies, business magnets, economy, markets, and everything that bothers anyone of the above-mentioned topics.  Not once, but twice in the past, I have mentioned the TV show Billions. It is one of the very few shows that I have watched, and I have been marketing it like I promoted it. I am a person who, when I recommend something, I'll call the person and ask him or her whether they liked or properly understood it. There is no option for "you didn't like it." Either you liked it, or you couldn't understand what the show or the book had to offer. The thing is, I have recommended this show to so many people that it would take nearly a business day to hear their reactions or ask them about the show. Hence, I came to the conclusion that I would share the lessons that I learned, but still make sure that you watch them. So, without further ado,...

With 28 states, 7 union territories, 140 crore people, and 1.77 million homeless people to feed on a daily basis, India still survived one of the most brutal pandemics and now stands as the 4th largest economy in the world. When I first heard about the pandemic, I thought that India would suffer the most, considering our size and population. Even before the pandemic erupted, the Indian economy was on a downward spiral. GST collections were below Rs 1 lakh crore, external debt had increased by 8 percentage points, and GDP had decelerated for 6 consecutive quarters. I thought that the pandemic would be the final blow to our economic situation, leaving us helpless and needy like Greece after the 2008 crisis.  But what India has turned out to be is something that even Gandhi would not have believed if he were alive. 4th largest economy, world's largest derivatives exchange, 4th largest cash exchange, largest population, dominant exporter of agricultural products, biggest railway networ...

It was the Mughal emperor Babur who introduced playing cards in India. Little did he know back then that Indians already knew how to play their cards. India is always regarded as one of the "Jugaadu" countries that rely more on makeshifts than something concrete. I don't believe this. Yes, we do engage ourselves in various "jugaadu activities," but we are hell-bent on innovation and permanent solutions. Come what may, we know how to get ourselves out of any situation. You don't believe me? Look at Adani. It's already been 13 months since the Hindenburg-Adani saga, and Adani has come out without a single scratch. After making the allegations public, it was eminent that the group would take a massive hit (not in terms of falling share prices). But it didn't. Do you know why? Because he knows how to play his cards effectively and with charm. How did Adani come out of the situation that Hindenburg put him in? How did Adani manage to gain shareholder conf...

Ignoring everything that consumerism or marketing has to offer, deep inside, what does an average Indian work for? I thought that it was the feeling of completeness, happiness, or respect was something that an average guy worked for. But I was wrong. Even though people want this, it is secondary to buying a house. Yes, that's true. In India, buying real estate comes way ahead of self-esteem or respect. We can do anything to get a house. We can keep jewelry as collateral for buying that 1RK that will uplift our self-esteem in the society. We will work day and night to earn extra income, only to lose it on a big down payment. This unspoken rule of attaching our self-worth and self-respect was something that Mr. Runwal also felt. Subhash Runwal, a middle-class boy who left a job in the US and came to Mumbai in 1967 to start his own real estate company, sits on a massive fortune of $1 billion as of February 2024.  This man has truly taught me a very valuable lesson: to dream big and wo...

                                      Imagine waking up one morning and reading that a Chinese underdog car company has taken over EV sales of Elon's Tesla. Sounds unachievable. Doesn't it? Well, that's what many people said when Wang Chaunfu said that he would build a world-class car company that would beat Tesla in every aspect. May it be design, comfort, or battery efficiency, he proved to the world that you can build it if you can dream it. Automobiles are one of the most fragile businesses in the world. It's like the touch-me-not plant. Very sensitive. The world has experienced one of the best engines in the past century, yet only a handful of them have survived. Apart from competitors like Ford, Toyota, Mercedes, GM (even though it almost went bankrupt in 2008), etc., most of them have either left the industry, been thrown out of the industry, or have merged with a rival. For example, Da...