Economics for Engineers - Introduction
Our Country has reached 65th yr of its glorious existence as the defender of a great legacy of professional integrity, independence and excellence. To preserve it for posterity is our duty – ‘ The prudent heir takes careful inventory of his legacies and gives an faithful accounting to those whom he owes an obligation of trust’ – rightfully said by the 35th American President – John F. Kennedy. The days of generalists are getting over – the need of the hour is to have (1) multi-disciplinary partnership;
(2) build domain expertise;
(3) initiate for specialization.
As Alvin Toffler said – ‘the illiterate of the 21st century will not be those who can not reads or write but those who can not learn, e-learn or re-learn’. Charles Darwin has rightly observed – ‘ it is not strongest of the species that survive, nor the most intelligent but the one most responsive to change’. With the Sensex ends below 17,000, mark on rupee fall, the Indian equities declined sharply. The steep fall in the rupee is unlikely to boost Indian exports, which are expected to grow at a slow pace of 10-12% in 2012-13compare to 21% in2011-12. Exports mainly depend on the demand and not so much on the price. During the Lehman crisis in 2008-09, despite a depreciated rupee, merchandise and service exports had slipped by 33% and 26% respectively due to weakening external demand. The Eurozone accounts for 15% of country’s total exports. Any further aggravation of the sovereign debt crisis in the Euro areas, is expected to weaken India’s export growth. The mostly affected segment is Software which account for over 40% of total service exports from India. Further, two-third of the products in our export basket have 60-90% import content and a weak rupee therefore leads to more payment in INR. Sectors like petroleum, oil and lubricants (POL) combined with gems and jewellery have an import content of 90% against share in...