As we enter the month of February, the most talked about topic is the Union Budget, a very important event which is eyed by the markets, investors and rating agencies. This year’s budget became more important considering the global and Indian economic slowdown.
Persistent inflation, sagging investor confidence, growing fiscal deficit and  decade low growth rate were some of the major problems faced by India. Growing Fiscal Deficit was accentuated by a sharply higher Current Account Deficit, thanks to excessive dependence on energy imports of oil and coal and the Indian psyche of hoarding gold as a safe haven investment in uncertain times. There was also the threat of Global Credit Rating agencies downgrading India, which could worsen India’s fiscal situation even further as foreign inflows of debt and equity would now factor in additional risks of lower rating, leading to lower inflows at higher costs.

Looking at the challenges facing the Indian Economy the expectations from the Finance Minister and Union Budget further increased. This month’s cover story critically analyzes some of the major reforms of Union budget 2013, whether these reforms would be able to have a positive impact or are just promises considering the general elections due in April-May next year.

This issue brings to you some more interesting and insightful reads. The article of the month talks about decoupling, from an economical perspective. The article discusses on whether the developing nations have decoupled from the developed nations or not. Secondly it also throws some light on the need to decouple the use of natural resources and their impact on the environment in the pursuit of economic growth. With the budget around the corner, taxing the superrich seemed to be the talk of the town. The FinSight section analyzes the government’s moves of taxing the super-rich. In the past, India has had a disastrous experience by levying exorbitant taxes on the rich. The article talks about the impact this policy would have on the honest tax payers and also on the dishonest rich. Banks are respectable institutions, and the simple reason for this respect is the kind of work it does and the sense of responsibility with which it operates. Should the banks follow Sir Volcker’s path, aiming to minimize conflicts of interest between banks and their clients, or take steps that are risky but entail huge profits? FinGyaan section discusses this issue with J P Morgan’s hedging disaster. The Finistory section brings to  you one of the most significant events in the history, The Great Depression of 1929. Lastly, the classroom this month will help its readers to understand in and out of Passbook Loans.

Also, Team Niveshak is pleased to extend its gratitude to senior team, who have taken Niveshak to new heights during their association for two years. They are: Akanksha, Akhil, Anuroop, Chandan, Harshali, Kailash, Nilkesh, Rakesh and Venkat. Please join us in wishing them all the very best in their future endeavors. We hope to continue this association with you in times to come through your support and guidance.

We would also like to thank our readers for their constant support through wonderful articles and appreciation. It is your endless encouragement and enthusiasm that keeps us going. Kindly send in your suggestions and feedback to niveshak.iims@gmail.com and as always,