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By:

Kaustubh Kale

10 September 2024 at 6:07:15 pm

Silent Money Killer: Loss of Buying Power

In personal finance, we often worry about losing money in the stock market, dislike the volatility associated with equities or mutual funds, or feel anxious about missing out on a hot investment tip. Yet the biggest threat to our wealth is far quieter and far more dangerous: loss of buying power. It is the invisible erosion of your money caused by inflation - a force that operates every single day, without pause, without headlines, and often without being noticed until it is too late....

Silent Money Killer: Loss of Buying Power

In personal finance, we often worry about losing money in the stock market, dislike the volatility associated with equities or mutual funds, or feel anxious about missing out on a hot investment tip. Yet the biggest threat to our wealth is far quieter and far more dangerous: loss of buying power. It is the invisible erosion of your money caused by inflation - a force that operates every single day, without pause, without headlines, and often without being noticed until it is too late.
Inflation does not take away your capital visibly. It does not reduce the number in your bank account. Instead, it reduces what that number can buy. A Rs 100 note today buys far less than what it did ten years ago. This gradual and relentless decline is what truly destroys long-term financial security. The real damage happens when people invest in financial products that earn less than 10 per cent returns, especially over long periods. India’s long-term inflation averages around 6 to 7 per cent. When you add lifestyle inflation - the rising cost of healthcare, education, housing, travel, and personal aspirations - your effective inflation rate is often much higher. So, if you are earning 5 to 8 per cent on your money, you are not growing your wealth. You are moving backward. This is why low-yield products, despite feeling safe, often end up becoming wealth destroyers. Your money appears protected, but its strength - its ability to buy goods, services, experiences, and opportunities - is weakening year after year. Fixed-income products like bank fixed deposits and recurring deposits are essential, but only for short-term goals within the next three years. Beyond that period, the returns simply do not keep pace with inflation. A few products are a financial mess - they are locked in for the long term with poor liquidity and still give less than 8 per cent returns, which creates major problems in your financial goals journey. To genuinely grow wealth, your investments must consistently outperform inflation and achieve more than 10 per cent returns. For long-term financial goals - whether 5, 10, or 20 years away - only a few asset classes have historically achieved this: Direct stocks Equities represent ownership in businesses. As companies grow their revenues and profits, shareholders participate in that growth. Over long horizons, equities remain one of the most reliable inflation-beating asset classes. Equity and hybrid mutual funds These funds offer equity-debt-gold diversification, professional management, and disciplined investment structures that are essential for long-term compounding. Gold Gold has been a time-tested hedge against inflation and periods of economic uncertainty. Ultimately, financial planning is not about protecting your principal. It is about protecting and enhancing your purchasing power. That is what funds your child’s education, your child’s marriage, your retirement lifestyle, and your long-term dreams. Inflation does not announce its arrival. It works silently. The only defense is intelligent asset allocation and a long-term investment mindset. Your money is supposed to work for you. Make sure it continues to do so - not just in numbers, but in real value. (The author is a Chartered Accountant and CFA (USA). Financial Advisor.Views personal. He could be reached on 9833133605.)

A Big Day for Small Things

National Nanotechnology Day reminds us that the smallest building blocks of matter are powering some of India’s most meaningful innovations.

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Every year on October 9, the United States celebrates ‘National Nanotechnology Day.’ The date 10/9 points to the nanometer scale of 10⁻⁹ meters, the world of atoms, DNA, viruses, and engineered nanoparticles that create new materials and devices. The day highlights how nanotechnology already touches daily life and where it may take us next. It is simply described as “a big day for small things.”


Although the observance began in the U.S. in 2016 under the National Nanotechnology Initiative, its spirit is relevant worldwide, including in India. The idea that the smallest building blocks of matter can transform societies resonates in a country where two decades of investment have built a growing nanoscience and nanotechnology ecosystem.


India’s journey began with the Nano Science and Technology Initiative in the early 2000s, followed by the launch of the Nano Mission in 2007 by the Department of Science and Technology (DST). The Mission supported research, infrastructure, training, international access, and industry collaborations. In 2017, it evolved into the National Programme on Nano Science and Technology to maintain continuity and enable expansion.


Numbers illustrate the progress. DST reported spending Rs. 568.83 crore in Phase I alone. By around 2013–14, India had climbed to third place globally in nanoscience publications. A 2014 government report listed approximately 5,000 research papers and nearly 900 PhDs. It also mentioned early products such as nano-hydrogel eye drops, arsenic and fluoride removal filters, pesticide-removal technologies, and nanosilver antimicrobial coatings. These examples illustrate how a national mission can help turn research into practical outcomes.


World-class facilities were created during this period. The Centre for Nano Science and Engineering (CeNSE) at IISc, Bengaluru, houses the National Nanofabrication Centre, a 14,000 sq ft cleanroom serving academic and external users. The Indian Nanoelectronics Users Programme (INUP), launched in 2008 and later expanded across IITs, lowers entry barriers by offering training and open nanofabrication lines. It supports semiconductor workforce development, prototyping for startups, and stronger academia–industry links, as underlined at its 2024 national meet.


New institutions also emerged. The Institute of Nano Science and Technology (INST) in Mohali, launched in 2013, has become a hub for nanomedicine, agricultural nanotech, sensors, and energy materials. Institutes like these provide advanced materials research with the long-term focus it requires.


Other institutes contributed in specialized areas. The Agharkar Research Institute (ARI) in Pune worked on nanobioscience by linking microbiology with nanotechnology. One outcome was a silver nanoparticle-based wound-healing formulation, developed as a nanogel and marketed in India under the names S-gel, Silveron, and Meganano. It is among the early examples of an Indian nanotechnology product reaching the market.


Water purification is another area where nanotechnology has been applied. At IIT Madras, Professor T. Pradeep’s group developed the AMRIT system (Arsenic and Metal Removal by Indian Technology), which uses metastable iron oxyhydroxide nanomaterials to remove arsenic, uranium, iron, and manganese from groundwater. The system works without electricity, relying on gravity or passive flow. Field deployments have reduced arsenic levels from nearly 1 part per million to below 10 parts per billion. Their pesticide-removal nanofilters, licensed commercially, are also in use. These efforts show how nanomaterials can contribute to water safety initiatives.


India has also taken steps to ensure responsible use. In 2019, national “Guidelines for Evaluation of Nanopharmaceuticals in India,” developed by the Department of Biotechnology with regulators, set a pathway for assessing safety, efficacy, and quality. DST has also issued best-practice documents for handling nanomaterials in laboratories and industries. These measures aim to reduce risks and build confidence in adopting nano-based products.


Policy attention has extended into agriculture. Under the Fertilizer Control Order, nano-nitrogen fertilizers have been formally notified, including IFFCO’s Nano Urea Plus (16 percent nitrogen). While field-performance evaluations continue, the regulatory pathway is formal and science-based. The notification indicates how nanotechnology is being integrated into mainstream farming practices.


Nanotechnology initiatives also align with the broader landscape of science and technology funding. In the 2024–25 interim budget, DST received Rs. 8,029 crores, and the government announced a Rs. 1 lakh crore corpus for innovation and deep technology. Together with programmes like INUP and the National Nano Programme, this funding helps connect nanoscience with national missions.


So, what does October 9 mean for India? First, it is an opportunity to highlight investments. Students should know that cleanrooms in Bengaluru, training at IITs, water purification technologies at IIT Madras, and research at institutions like INST and ARI are all part of India’s nano journey. Visibility helps attract the next generation.


Second, it reminds us that progress must be balanced with safety. Guidelines for nanopharmaceuticals and laboratory practices should be applied consistently. Building products that are safe by design can reduce regulatory delays and strengthen public trust.


Third, it draws attention to examples of nanotechnology with measurable impact. AMRIT filters at IIT Madras, antimicrobial coatings, nano-fertilizers, and ARI’s marketed nanogel are cases where nanotechnology connects directly with health, agriculture, and sustainability.


Fourth, it underlines the importance of translation pathways. Facilities like CeNSE’s NNfC are open to external users, but they need stronger links to funding, procurement, and mentorship to scale prototypes into products. INUP’s expansion and its role in the semiconductor workforce are positive steps, but predictable demand for validated nano-enabled sensors, health tools, and environmental monitors will accelerate progress.


Finally, October 9 can serve as a national outreach day. Universities, startups, and ministries can organize open houses, talks, and competitions in local languages. Demonstrations of technologies such as IIT Madras’s AMRIT filters or ARI’s nanogel can make the subject tangible. The U.S. experience shows that community events bring science closer to the public. India can adapt this approach in its own way.


A day celebrated in the United States can serve as a reflection point for India. Products such as ARI’s nanogel and IIT Madras’s AMRIT filters show that Indian labs can move innovations from concept to market. Marking October 9 with outreach and engagement can help ensure that nanotechnology continues its journey from laboratories to everyday life.


(The author is the former Director, Agharkar Research Institute, Pune; Visiting Professor, IIT Bombay. Views personal.)

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