RBI able to overlook inflation for now due to lack of demand

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Mumbai, June 4 | As the Reserve Bank of India kept the lending rates and its accommodative although inflationary concerns continue, its Deputy Governor, Michael Patra said that the central bank has been able to look through the inflation scenario in recent times and focus on growth, due to the lack of demand pressure on inflation.

Interacting with the media post the Monetary Policy Committee meeting on Friday, he noted that currently the inflation is not persistent.

“Inflation will turn persistent when it is backed by demand pull. At the current stage, we find the demand very weak and there is no demand pull in the inflation formation. It is mostly on the supply side and therefore we have chosen to look through,” Patra said.

Demand-pull inflation refers to the scenario wherein the inflation rises on the back of rise in demand.

He, however, said that the apex bank is “very very vigilant” about demand pressures and will take the necessary steps when demand pressures start playing its role in the inflationary process.

The RBI has projected India’s retail inflation for the current financial year at 5.1 per cent.

For the first quarter, April-June, the retail inflation or the consumer price index (CPI) inflation has been estimated at 5.2 per cent, followed by 5.4 per cent, 4.7 per cent, and 5.3 in second, third and the fourth quarter, respectively, said RBI Governor Shaktikanta Das.

He said that the favourable base effects that brought about the moderation in headline inflation by 1.2 percentage points in April may persist through the first half of the year, conditioned by the progress of the monsoon and effective supply side interventions by the government.

“Upside risks to inflation emanate from persistence of the second wave and consequent restrictions on activity on a virtually pan-India basis,” Das said.

The central bank has retained its key short-term lending rates along with the growth-oriented accommodative stance during the second monetary policy review of FY22 on Friday.

The Monetary Policy Committee of the central bank voted to maintain the repo rate, or short-term lending rate, for commercial banks at 4 per cent.

Source: IANS

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Does MBA really help in getting a better job offer ?

Does MBA really help in getting a better job offer ?

Most students pursuing an MBA come with the sole objective of having a decent job offer or a promotion in the existing job soon after completion of the MBA. And most of them take loans to pursue this career dream. According to a recent survey by education portal Campusutra.com  74% MBA 2022-24 aspirants said they would opt for education loans.

There are exceptional cases like those seeking master’s degree or may have a family business to take care of or an entrepreneurial venture in mind. But the exception cases are barely 1%. For the rest 99%, a management degree is a ticket to a dream job through campus placements or leap towards career enhancements. Stakes are high as many of them quit their jobs which essentially means loss of 2 years of income, apprehension and uncertainty of the job market. On top of that, the pressure to pay back the education loans. Hence the returns have to be high. There is more than just the management degree. Colleges need to ensure that they offer quality management education which enables them to be prepared for not just the demands of recruiters and for a decent job but also to sustain and achieve, all along their career path.

  • So, what exactly are the B Schools doing to prepare their students for the job market and make them industry ready ?
  •  Are B schools ready to deliver and prepare the future business leaders to cope up with the disrupted market ?  

These are the two key questions every MBA aspirant needs to ask, check and validate before filling the MBA application forms of management institutes. And worth mentioning that these application forms do not come cheap. An MBA aspirant who may have shortlisted 5 B Schools to apply for, may end up spending Rs 10,000.00 to Rs 15,000.00 just buying MBA / PGDM application forms.

While internship and placements data of some management institutes clearly indicates that recruiters today have specific demands. The skill sets looked for are job centric and industry oriented. MBA schools which have adopted new models of delivery and technology, redesigned their courses, built an effective evaluation process and prepared the students to cope with the dynamic business scenario, have done great with campus placements despite the economic slow down.

However, the skill set being looked for by a consulting company like Deloitte or KPMG may be quite different from FMCG or a manufacturing sector. Institutes need to acknowledge this fact and act accordingly.

  • Management institutes should ensure that students are intellectually engaged, self motivated and adapt to changes fast. In one word ‘VUCA ready’.
  • B Schools should encourage students to participate in national and international competitive events, simulations of business scenarios.
  • Institutes should have the right mix of faculty members with industry exposure and pure academics.

The placement records of 2021 across top management institutes indicated the fact that recruitment is happening, skilled talent is in demand and certain management institutions continued to attract recruiters even in the middle of an ongoing crisis.

It is time, all management institutes rise to the occasion, understand market realities and identify areas of improvement at both ends – students and faculty.

After all, the stakes are high at both ends. B Schools taking corrective measures will stay while those which are lagging will end up shutting down.

Author Name : Nirmalya Pal

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