Government Bonds in Retail Portfolio

Equities and Bonds are two of the most traded asset classes and are often combined together as part of a well-diversified portfolio. When buying equity in a company, the investor becomes a shareholder and can participate in the distribution of profits. When buying a bond, the investor becomes a creditor to the issuer and is entitled to a fixed interest along with the ultimate repayment of the principal. Equity gives high returns mainly because of the risk involved in it. Whereas bonds provide low but fixed returns with lesser or zero risk to the capital. In the current situation where the equity markets have become very volatile, investors are looking to diversify their portfolios with a good combination of equity and debt.

Government bonds with long-term maturities are finding takers who are looking for safe debt instruments that are liquid and more tax efficient. Sovereign papers that mature 25 to 40 years from now would fetch them returns of 7.25-7.35 per cent annually. Currently, 10 years fixed deposit with the State Bank of India gives returns of up to 5.5 per cent. After 10 years, investors face reinvestment risks due to uncertainty over the interest rates then. Similarly, post office deposits offer an annual return of 6.7 per cent but have a tenure of five years. Debt mutual funds offer indexation benefits if the investment is held for more than three years, but there are very few schemes that invest with a maturity period of more than 10 years. In all these cases, Government of India bonds appear to be a good option for long term debt investment.

On November 12, 2021, Prime Minister Narendra Modi released the Reserve Bank of India (RBI) Retail Direct Scheme. The scheme provides investors with an opportunity to invest in government securities in the primary and secondary markets in a safe and hassle-free manner. Government securities under the scheme include Government of India Treasury Bills (T-Bills), Government of India Dated Securities (Dated G-Secs), State Development Loans (SDLs), and Sovereign Gold Bonds (SGBs). The Retail Direct scheme offers retail investors the opportunity to buy securities directly and free of charge. These securities can be purchased on the Reserve Bank of India’s Retail Direct Platform with a minimum capitalization of Rs 10,000. There is no upper limit. Investors can buy these securities without the aid of brokers. This is a major development for retail investors and direct investment in long tenor government bonds has become real possibility for this group.

Holistic needs of post-pandemic Healthcare

Covid-19, which originated from one corner of the world and devastated the ’normal’ ways of the entire planet by taking lives, halting economic activities and causing traumatic effects to body and mind with extreme aftermaths. With that, ‘What is Health and how to care for it’, has become a fundamental query in everyone’s mind. Indian philosophy of Pancha Kosha provides an appropriate framework towards it. The Upanishads state that our apparent reality or prakriti comprises of five different extensions, starting from the closely packed physical body, annamaya kosha(food sheath) pranamaya kosha(vital air sheath), and evolving gradually to more subtle and sublime levels of manomaya kosha(mind sheath), vigyanmaya kosha(intellect sheath) and anandmaya kosha(bliss sheath), all being supported by the absolute reality or Atman. The concept of Pancha Kosha or five cardinal layers or sheaths was elucidated in many sacred Ancient Hindu texts like Taittiriya Upanishad, Vivekacudamani and Panchadasi. Healthcare and well-being as we understand in modern societal setup is taking care of the needs of the first three sheaths and Income, employment, education, food security, housing, transportation, safety, and social support are all important factors to it. Additionally, trauma or adverse childhood experiences may have long-term effects on health and well-being.

Another framework used often to understand these needs of modern living is Maslow’s hierarchy of needs. Abraham Maslow is said to have developed the concept of five stages of needs that motivate human behavior. The five stages in Maslow’s hierarchy of needs in order from lowest to highest level include physiological, safety, social (love and belonging), esteem, and self-actualization, where first two levels of need are considered basic needs, which are based on the need for survival and safety. The third stage, social stage is based on psychological or emotional needs, which includes interpersonal relationships. In post-pandemic world, Social Needs are very vital to health and well-being of individuals and policy makers are recognising the importance of considering the level of fulfilled social needs in planning the policy interventions.

In pursuit of socialization which invariably leads to emotional well-being of an individual and society at large, the present dispensation at the Centre is striving hard to bring in transformative changes in how an individual should be treated where all dimensions of life is well taken care of. Ayurveda and Naturopathy are the holistic answers to it, which bring harmony into one’s life by striking a beautiful balance among people, society and nature.

In fact, Ayurveda has turned into a ‘slice of life’ from a ‘science of life’ with its ability to heal from within and for all. The ever increasing importance of Ayurveda has put it in the centre of millions of lives’ in India and across the globe. This oldest healing method is based on the science of life. Ayurvedic practices have become truly global with its drugs being used as food supplements in USA, EU, Japan and other countries. Many physicians practice Ayurveda in many parts of the world like USA, Argentina, Australia, Brazil, New Zealand, South Africa, Czech Republic, Greece, Italy, Hungary, Netherlands, Russia, UK, Israel, Japan, Nepal, Sri Lanka among others.

Similarly, Naturopathy also relies upon nature and inherent power of human body and mind. This most ancient health care mechanism has a holistic approach to human wellness and healthy living. Relying on the healing power of nature, Naturopathy stimulates the human body’s ability to heal itself with different kinds of therapies like diet therapy, fasting therapy, mud therapy, hydrotherapy, masso (massage) therapy, acupressure, chromo therapy, air therapy, magnet therapy. Naturopathy successfully treats all aspects of the human body like mental, physical, social and spiritual, believing that performing a prayer based on one’s spiritual faith is also an important part of treatment.

Nearly There Now

Cent percent of eligible group for vaccination is within reach for India now as over 97% have been vaccinated. This has brought economic, educational and even social activities back to normal. This has not been easy ride for sure. India has braved 3rd wave very effectively and is almost back to normalcy. Beginning of the vaccination process was not a nice sight when only 450-550 million doses seemed doable, as late as Nov 2020. There were huge concerns of difficulties in geographical mobility and lack of cold storage facilities. With multiple other factors acting towards vaccine wastage, India had a mountain to move.

Hence, since the beginning of world’s largest vaccination drive, India has battled both vaccine hesitancy and vaccine shortage to reach current vaccine demand across the nation and abroad. A lot has happened since the first vaccine dose was administered on January 16, 2021. On February 19 2021, within just a month of its start, India had already achieved the 1 crore vaccination milestone.One of the key challenges in the success of the vaccination drive also involved the need for a robust registration and tracking mechanism for the beneficiaries. In March 2021, India began vaccination registration through CoWin portal, Arogya Setu and Umang App.

The Co-WIN platform was at the heart of the vaccination drive. In a country like India, where access to technology and digital literacy is limited, introducing a digital platform like CoWIN was a challenge. The software performed the crucial functions of registration of beneficiaries, the listing of facilities/planning unit and session sites, planning and scheduling of vaccine sessions with real-time status on booked and available booking slots on different dates and at different sites, end-to-end implementation of vaccine process, traceability of beneficiaries and monitoring of vaccine doses and wastages, etc. at national, state, district and block levels. Fast forward to October 21, 2021, the country had already hit its Vaccine Century with the administration of 100 crore vaccine doses. The same month, India also launched ICMR’s “i-Drone” (Drone Response and Outreach in North East) policy. For the first time, a “Make in India’ drone was used in South Asia to transport COVID vaccine over an aerial distance of 15 kms in 12-15 mins from the Bishnupur district hospital to Loktak lake. With this India had mounted over the challenge of vaccine delivery to far-flung areas, ensuring that none was left behind. To ensure that the vaccine reached every household, the Government had launched “Har Ghar Dastak” (door-to-door) vaccination campaign on November 3, 2021, to achieve 100 per cent first dose coverage.
India’s fight against COVID19 opened gates for an ecosystem that supported indigenous manufacturing and innovation. Bill & Melinda Gates Foundation co-chair Bill Gates lauded India’s work on design, manufacturing and distribution of COVID-19 vaccines that helped save a massive number of lives. He also called it “a testament to innovation.” And why not, from CoWin platform, affordable COVID testing kits to innovative PPE kits for doctors, the country has developed devices that ensure innovations meet necessities.

Indeed, India has leapt into the front-row seat in the post-Covid world order due to its large scale implementation capabilities demonstrated in handling the pandemic while considering the welfare of all at home with Sabka Saath and abroad with Vaccine Maitri.

Indian Healthcare Sector – Coming of Age amidst Pandemic

It is indeed remarkable that India has achieved both the highest number of vaccinations as well as highest percentage of population being vaccinated . This is an unparalleled large-scale implementation in handling the pandemic while considering welfare of all at home with ‘Sabka Saath’ and abroad with Vaccine Maitri. Right communication regarding vaccines at the grassroots level was pivotal. For this, a five-point strategic action framework was utilized to draw up the guidelines – Advocacy; Capacity Building; Media Engagement and social media; Social Mobilization and Community Engagement; and Crisis Communication using AEFI (Adverse Events Following Immunization).

One of the key aspects that haven’t gotten enough attention is the vaccination teams’ compassionate attitude and approach during the vaccination drive. All were trained to engage and show empathy to beneficiaries seeking information or sharing their concerns irrespective of their socio-economic or demographic status. The first and foremost preparatory step that was imperative prior to the launch of the vaccination drive was to train and build the capacity of skilled resource personnel. The success of the vaccination initiative was highly dependent upon the quality of training being provided.

Following the successful development of two vaccines – the indigenously developed COVAXIN and AstraZeneca’s COVISHIELD through technology transfer – India embarked on a new herculean task of vaccine distribution to every nook and corner of the country. Government formulated the National Expert Group on Vaccine Administration (NEGVAC) for COVID-19. NEGVAC facilitated the high level of coordination required at the national, state, and district levels to establish effective levels of coordination among key departments. The Co-WIN platform was at the heart of the vaccination drive. The software performed the crucial functions of registration, real-time status on booked and available booking slots on different dates and at different sites, end-to-end implementation of vaccine process, etc. at national, state, district and block levels. In the global battle against COVID- 19, various low-cost innovative technologies developed and scaled up by start-ups from all over the country played a critical role. E-Sanjeevani, the largest telemedicine service, made its efforts towards successful communication. State-level monitors undertook the continuous supervision of vaccine arrival and distribution cycle and ensured quality orientation in vaccine receipt and distribution.

Right information has changed the minds of those who were skeptical about inoculation, and turned the Indian vaccination journey from resistance to acceptance.

COVID Vaccination – Front Row Seat

Indian media is celebrating the words, “I appreciate your government’s efforts as it has selflessly donated nearly 8 million immunizations with at least 38 countries.” in a letter received by India’s Ambassador to the USA. It has been written by US Congresswoman Joyce Beatty who is the leader of the Black Caucus, an influential Congressional group championing human rights and help to poor and needy. India has surely leaped into the front-row seat in the post-Covid world order due to its large-scale implementation capabilities demonstrated in handling the pandemic while considering the welfare of all at home with Sabka Saath and abroad with Vaccine Maitri.

Covishield, Covaxin, ZyCov-D, Sputnik V, COVOVAX, CORBEVAX vaccine, and now Sputnik light in the pipeline – India surely has managed to be on top of vaccine development, manufacturing, transportation, and administration at an unprecedented level. As against 542 million doses in the USA, India has managed to administer 1,689 million doses at a war footing. Further, India has supplied around 150 million doses to 98 countries (Covishield, Covaxin, Covovax).

This has not been an easy ride for sure that India has braved 3rd wave very effectively and is almost back to normalcy. Starting with a lookout of only 450-550 million doses in Nov2020 and huge concerns of geographical mobility difficulties, lack of cold storage facilities, and other factors leading to vaccine wastage India had a mountain to move. Fearing the crowding in coming to vaccination centres was genuine and caused valid reluctance.

Walk-in coolers and walk-in freezers helped in building over 29,000 storage points all over India. Leadership across the levels engaged in virtual meetings for hours on end every day with vaccine manufacturers, vaccine transport agencies, storage centres, cold chain points, and COVID Vaccination Centres. This was done to ensure that every drop of the available vaccines is used as optimally as possible.

Training the ASHA workers at war footing, developing CoWIN platform, and deploying effectively to manage vaccination efforts were masterstrokes. Vaccine Hesitancy was actively resolved by leading from the front as Prime Minister Narendra Modi shared images of taking vaccines early morning at AIIMS. Misinformation and fake news combatting were done by engaging in talks with the community and religious, political leaders. Door-to-door campaigning, ‘Har ghar dastak’ involved health workers, nurses and teachers – which went door to door, counselling and enrolling people, and issuing appointment tokens for vaccination.

On 18th September 2,50,10,390 covid vaccines were administered. This is 10,42,100 per hour or 17,368 per minute or 289 doses per second. None of the developed nations have been able to come anywhere close to this scale and is a testimony of transforming the Public Health Care system under Ayushman Bharat. India has shown a large-scale implementation capability not seen anywhere else in the world, and India does it with the ethos of ‘Vasudhaiva Kutumbakam’, as appreciated by the black caucus.

 

Despair to Hope and Confidence within a Year

Celebrating 1 year of the national vaccination drive, Prime Minister Narendra Modi stated today that India’s approach to fighting the pandemic will always remain science-based. This was evident from the very beginning, as last year Emergency Use Authorisation was granted to two “Made in India” vaccines namely, Oxford-AstraZeneca’s Covishield and Bharat Biotech’s Covaxin. Then Nationwide rollout of Vaccination began for doctors, healthcare workers, frontline workers including Safai Karamcharis which later on got extended to all adults in stages and even to the adolescent population this year. To ensure gender parity in the Nationwide vaccination drive, the government has made concentrated efforts due to which a total of 49% Females and 51% males have received vaccine doses till date.

As we take stock of the last one year, India is leading the world with its fastest vaccination pace. It has not been an easy journey – the sudden nature of the pandemic, the need for tough and far-reaching decisions amidst a lot of conflicting, incomplete and even wrong information were clearly baffling all across the globe. Further, huge population and consequent shortage of supply at the initial stage together with the need for Government procurement and large scale deployment, including the issue of vaccine hesitancy came as added problems.

PM Modi led from the front in tackling these challenges, especially in engagements for clear communication to create awareness about vaccine safety and building trust. His images from the AIIMS vaccination site, perhaps, boosted the confidence of citizens to go and get vaccinated.

The success of crossing over 155 crores administered doses within a year is a testament to the large scale project deployment capabilities of “New India”. Clear communication from leaders and experts has played a pivotal role in achieving this staggering level of vaccination, esp. in combating fake news and bringing down vaccine hesitancy. To know its importance one can look at the USA where governments had to announce lotteries, scholarships, saving bonds and even cash payouts to encourage people to shed fear and resistance to vaccines.

This success is not only about producing, procuring, distributing and administering vaccines. The needed healthcare infrastructure spending was a big ask. This coupled with extending the availability of food to a large percentage of the population, making provisions to support businesses to get back to production and operations as soon as possible are testaments of a country ready for large scale deployments. There is a lot to be done towards the economic recovery of MSMEs, the rural economy and the poor in the cities – the ones very badly affected by the pandemic and its handling in the form of lockdowns. India is ready and on track to overcome these challenges and make the 2020s a Decisive Decade of Growth.

Together, India fights back – 150 crore milestone

“When the going gets tough, the tough get going” song of Billy Ocean, British singer-songwriter seems to have been characterised by India’s fight against Covid. Within a year of its launch, India has achieved a remarkable record of administering more than 150 Crore covid vaccines and is going strong. Many of the developed nations are yet to reach their entire population, and still in the name of Reality Check some of the foreign media is targeting India for missing 100% vaccination. They had been doing doomsday predictions in the past too that India’s vaccination drive was going horribly wrong. India on the other hand has also been helping many needy nations in the form of Vaccine- maitri.

On behalf of the indebted nation, Prime Minister Modi thanked doctors, scientists, innovators and the health care workers and said “A remarkable day on the vaccination front! Congratulations to our fellow citizens on crossing the 150 crore milestone. Our vaccination drive has ensured that many lives are saved. At the same time, let us also keep following all COVID-19 related protocols.” He had steered the domestic vaccine research and development programme from the front and ensured that the Indian vaccine manufacturers got a conducive environment for accelerated vaccine research, development and manufacture in the spirit of ‘Aatmanirbhar Bharat’.

On 18th September 2,50,10,390 covid vaccines were administered. This is 10,42,100 per hour or 17,368 per minute or 289 doses per second. This is an unprecedented scale of implementation by any standards. None of the developed nations have been able to come anywhere close to this scale and is a testimony of transforming the Public Health Care system in the system under Ayushman Bharat.

This transformation is qualitative too. In 2014 there were only 6 AIIMS in the country, today there are 22. Even for the primary healthcare system, more than 50 thousand Jan Aushadhi Kendra are distributing affordable drugs. Among these, around 50 cancer related medicines are also available at affordable prices which is transformational as India’s poor and middle class has long been victims of financial havoc created due to such disease. To make the care and treatment more accessible and affordable in the eastern India, PM Modi inaugurated Cancer Hospital yesterday.