Indian mobile Internet USAGE TO EXPLODE!!!!

Indian mobile Internet users to touch 164.8 mn by 2015: KPMG
Press Trust of India | New Delhi | Updated: Sep 24 2013, 21:06 IST
The number of people surfing the Internet using mobiles in India, the world's second largest mobile market after China, is set to touch 164.8 million by 2015, a report by global consultancy firm KPMG said today. KPMG's 'The SMAC Code Embracing New Technologies for future business' report further revealed that Indians hooking on to social networking sites provides opportunities to firm's for using social media to engage customers, brand building, product launches, etc.
"The mobile Internet users in the country are expected to grow from 4.1 million users in 2009 to 164.8 million in 2015 at a CAGR of 85 per cent," the report revealed. India has emerged as the second largest mobile market globally, behind only China. With over 870 million mobile subscribers, businesses are jumping the opportunity, it said. "Indian Internet users are also increasingly using social media, which in turn is providing opportunities for enterprises to leverage social media strategy for engaging with customers, brand building, product launches and for knowing their customers," it added.
The social media usage is primarily driven by the rising number of active Internet users, who are accessing Internet through host of devices, it said. "Enterprises are increasingly leveraging social media for customer engagement and brand building, as more and more individuals are becoming active Internet users and using social media," it added.
Besides, the proliferation of smart devices and rising mobile Internet usage has supported growth of active Internet users in the country, KPMG's report said. "Social media platforms are not only restricted to the social networking sites such as Facebook and LinkedIn, rather extended to various forms of social media including YouTube, blogs, social bookmarking, geo-location sites and daily deals," it added. As the social media modes differ, so their application and priority from business to business. Moreover, changing business dynamics influences enterprise decision to select a social media platform, the report said.  On the global social media scene, KPMG said: "The social commerce market is forecast to reach USD 30 billion by 2015. Leading global retailers are spending between 20-25 per cent of their advertising budget on social media channels." Nearly 90 per cent of the top global banks use social networking to achieve customer engagement, it added. Mobile technologies can be used to cut the cost of a financial transaction by up to 80 per cent, it said.

http://www.financialexpress.com/news/indian-mobile-internet-users-to-touch-164.8-mn-by-2015-kpmg/1173610/2

How rupee-dollar rates are determined.....

How rupee-dollar rates are determined
RAKESH GOYAL
April 18, 2013:

Ever wondered why the rupee quotes at 53.2 or 50 and not at Rs 20 or Rs 80 to a dollar?
It’s not much different from how the prices of your mangoes are determined, for example. Whether currency movements or prices of mangoes, the most important factor determining their price is the same – market forces of demand and supply. If the demand for dollars increases, the value of dollar will appreciate. As the quotation for Rs/$ is a two way quote (that is, the price of one dollar is quoted in terms of how much rupees it takes to buy one dollar), an appreciation in the value of dollar would automatically mean a depreciation in Indian rupee and vice-versa. For example, if rupee depreciates, a dollar which once cost Rs 47 would cost, say, Rs 50. In essence, the value of dollar has risen and the buying power of rupee has gone down. Besides the primary powers of demand and supply, the rupee-dollar rates are determined by other market forces as well.
Market sentiments During turbulent markets, investors usually prefer to park their money in safe havens such as US treasuries, Swiss franc, gold and so on to avoid losses to their portfolios. This flight to safety would lead to foreign investors redeeming their investments from India. This could increase the demand for dollar vis-à-vis Indian rupees.
Speculation There are derivative instruments and over-the-counter currency instruments through which one can speculate/ hedge the underlying currency rates. When speculators sense improvements/ deterioration of the sentiments of the markets, they too want to benefit from such rising/ falling dollar. They then start buying/selling dollar which would further change the demand/ supply of the dollar.
RBI Intervention When there is too much volatility in the rupee-dollar rates, the RBI prevents the rates from going out of control to protect the domestic economy. The RBI does this by buying dollars when rupee appreciates too much and by selling dollars when the rupee depreciates significantly.
Imports and ExportsEver give thought as to why our government is trying to incentivise exports and reduce imports? There are a lot of schemes and incentives for exporters while importers are burdened with many conditions and taxes. This is to protect our economy from high rupee depreciation. Importing foreign goods requires us to make payment in dollars thus strengthening the dollar’s demand. Exports do the exact reverse.
Public Debt / Fiscal policyWhenever our Government fails to match expenses with equivalent revenue, there is a shortage of funds. To finance this, the Government at times opts to borrow money from institutions such as the World Bank and the IMF. This debt, accrued interests, and the payments made, also lead to currency fluctuations.
Interest RatesThe prevailing interest rates on the government bonds attract foreign capital to India. If the rates are high enough to cover the foreign market risk and if the foreign investor is comfortable with the fundamentals or credit ratings, money would start pouring into India and thus provide us with a supply of dollars. (The writer is Senior Vice President, Bonanza Portfolio Ltd.)(This article was published on April 18, 2013)