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The $4 Bn Indian EdTech Journey

EduInvest Academy

Consumer Spending on Education – India ranks the highest across developed as well as emerging economies:

The Sheer Size of the Total Addressable Market for India Alone:

Headroom for Growth by 2022:

The State of Rural India – Bharat

Drivers of Growth

The Active Investing Community in the EdTech Space

Where is Sequoia Investing?

Where is Blume Ventures Investing?

Some Interesting Start-ups to look ahead to:

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Suez Canal Blockage – The Law of “General Average” – Whopping Insurance claim of $1 Billion

EduInvest Academy
Our customers are worried about the Suez Canal blockage' - BBC News

Remember the Ship which had blocked the Suez Canal & for a weeks time the complete Trade between Europe and Asia was blocked which used to pass through this historic marvel in Egypt, estimated close to 350+ Ships summing up to $10 Billion worth of goods in a span of just 6 Days was hampered.

The EverGiven Ship is an absolutely amazing combination of Globalization of Economies. The company which owns the ship is a Japanese company, the operator of the ship is a Taiwanese company, the Technical Management of the Vessel was being done by a German Company & the ship was registered in the Country of Panama and the crew onboard this vessel was Indian. It was carrying cargo from Malaysia to the Netherlands. Peaks of international integration No?

With all the news coverage this incident has garnered across the world media & also the banters with various memes on the Social Media, now this incident has taken an altogether a different turn, The Egyptian Suez Canal Authority (SCA) which manages the Maritime transport for the Suez Canal (which earns more than $5 Bn in tolls) has seized this ship & is claiming close to $1 Bn in fines from the owners of this ship in pursuant to disrupting traffic & trade.

More than $3 billion of liability coverage is in place for the owner of the grounded container ship provided by a UK-based Insurer Mutual UK P&I Club. The SCA had demanded the claims to the owners which they are trying to negotiate, the company said a “generous offer” was made to the SCA to settle their claim on Monday, without elaborating on the sum. “We are disappointed by the SCA’s subsequent decision to arrest the vessel today,” the company’s statement added.

As the investigation into the grounding of the Ever Given in the Suez Canal begins, the vessel’s Japanese owner, Shoe Kisen, has declared General Average. The law of general average is a principle of maritime law whereby all stakeholders in a sea venture proportionally share any losses resulting from a voluntary sacrifice of part of the ship or cargo to save the whole in an emergency. This law has its origins late back in the year 800 B.C. Stange No?

If Suez canal had a logo - The best designs and art from the internet

While there is no reported damage to the cargo, and that to the vessel appeared to be minimal, the cost of the salvage operation, which ultimately required 11 tugs and two dredgers, as well as possible compensation claims from a variety of interests such as the Suez Canal Authority or shipping companies caught up in the backlog, could amount to a sizeable bill.

The problem for cargo interests, according to insurance sources, is that the cost of the casualty to its owners is likely to take some time to determine if it involves claims from other parties, which means the adjustors will remain unable to fix the level of the general average and salvage securities. Evergreen said it had begun to look at other ways to free cargo trapped on board, adding: “In order to lift the arrest order as soon as possible, Evergreen is urging all concerned parties to facilitate a settlement agreement to be reached.

So all in all the Bosses of EverGiven don’t seem too worried and have figured out a way to split the bill with insurers. These are very articulate times where the Insurance package & a strange law has come in force together.

Posted by @akshayrote

RBI Monetary Policy

EduInvest Academy

What is RBI Monetary Policy?
Monetary policy is the macroeconomic policy laid down by the Reserve Bank of India. It involves the management of money supply and interest rates. The central bank tweaks interest rates to achieve macroeconomic objectives such as liquidity, consumption and inflation.

What are repo rate and reverse repo rate?
Repo rate is the rate at which RBI lends money to the commercial banks. The rate is used by monetary authorities to control inflation. On the other hand, reverse repo is the rate at which commercial banks park their money with the central bank. At present, repo rate and reverse repo rate stand at 5.15 per cent and 4.90 per cent, respectively.

When is RBI Monetary Policy?
RBI monetary policy committee will meet during February 4-6 for its sixth bi-monthly Monetary Policy Statement for 2019-20. The resolution of the MPC will be placed on the website at 11.45 AM on February 6, 2020.

The composition of the current and first monetary policy committee is as follows:

  1. Governor of the Reserve Bank of India – Chairperson, ex officio – Shaktikanta Das
  2. Deputy Governor of the Bank in charge of monetary policy — Michael Debrata Patra
  3. Executive director of the Bank in charge of monetary policy — Dr. Janak Raj
  4. Shri Chetan Ghate, Professor, Indian Statistical Institute (ISI) – Member;
  5. Professor Pami Dua, Director, Delhi School of Economics – Member;
  6. Dr. Ravindra H. Dholakia, Professor, Indian Institute of Management, Ahmedabad – Member

Members referred to at 4 to 6 above, will hold office for a period of four years from the date of appointment while the other three members are official. All the central government nominees are not eligible to be re-appointed.

Will RBI cut policy rates on February 6?
A Reuters poll of economists, conducted before Budget showed that the central bank is expected to keep the repo rate unchanged until at least October, when it is seen resuming its easing path. RBI is now forecast to next cut rates by 25 basis points to 4.90 per cent in the October-December quarter, though some analysts reckon the central bank will keep rates on hold for longer.