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By:

Kaustubh Kale

10 September 2024 at 11:37:15 pm

Modak and the Art of Investing

As the aroma of freshly steamed Modaks fills homes during Ganesh Utsav, the festive spirit comes alive instantly. My mouth is already watering at the thought! The humble Modak, prepared with love to honour Lord Ganesha, may look simple from the outside. But anyone who has tried making one knows that a good Modak depends on several things coming together - the right ingredients, the right recipe, patience with the process, and finally, enjoying the result. Investing is surprisingly similar....

Modak and the Art of Investing

As the aroma of freshly steamed Modaks fills homes during Ganesh Utsav, the festive spirit comes alive instantly. My mouth is already watering at the thought! The humble Modak, prepared with love to honour Lord Ganesha, may look simple from the outside. But anyone who has tried making one knows that a good Modak depends on several things coming together - the right ingredients, the right recipe, patience with the process, and finally, enjoying the result. Investing is surprisingly similar. Choose the Right Ingredients A Modak is only as good as the ingredients that go into it. Fresh coconut, good-quality jaggery, properly prepared rice flour and the right flavours all contribute to the final result. Our investments and financial products are the ingredients of our financial plan. Equities, mutual funds, fixed income, gold and other investments each have a specific role to play. The objective is not to pick whatever appears most exciting at the moment, but to select suitable, good-quality investments that match our financial goals, time horizon and ability to take risks. Health and life insurance are equally important ingredients. Adequate coverage helps protect savings, the family, and their financial goals and dreams. Good ingredients provide the foundation. But ingredients alone are not enough. Get the Recipe Right You may have the finest ingredients in the kitchen, but if the proportions are wrong, the Modak may still not turn out well. The same applies to investing. Asset allocation is the recipe of a financial plan. Too much of one ingredient can spoil a Modak. Similarly, excessive concentration in one asset or too much money in low-return products can spoil a portfolio. Balance is key. A thoughtfully constructed portfolio brings different investments together in the right proportions. To keep asset allocation very simple - short-term goals can be planned through bank fixed deposits, recurring deposits and debt mutual funds. For long-term goals, one can consider hybrid mutual funds, equity mutual funds or direct stocks. Trust the Process Once the Modak is shaped and placed for steaming, constantly checking whether it is ready will not make it cook faster. Investors often make the same mistake. We keep checking markets, reacting to every correction, chasing recent performers or changing strategies because of short-term noise. Good investing requires patience and discipline. Invest regularly, review periodically and allow your financial plan enough time to work. Compounding is powerful precisely because it rewards those who remain invested for long periods. Sometimes, the best thing an investor can do is simply avoid unnecessary interference. Enjoy What You Have Created Finally comes the most important part - eating the Modak! The purpose of investing is not merely to accumulate the largest possible number on a statement. Wealth should eventually help us fulfil our goals, support our families, create financial security and enjoy life with greater peace of mind. A good Modak needs the right ingredients, the right recipe and trust in the process. A good investment journey needs exactly the same. This Ganesh Utsav, may Bappa bless us with the wisdom to make good financial choices, the patience to stay disciplined, and the prosperity to enjoy the fruits of our efforts. Ganpati Bappa Morya! (The author is a Chartered Accountant and CFA (USA). Financial Advisor. Views personal. He could be reached on 9833133605.)

Damming the Deluge

Correspondent
Jan 13, 2025
3 min read

As China races ahead with the world’s largest hydropower dam on the YarlungTsangpo, India counters with its own ambitious Siang project in Arunachal Pradesh.

YarlungTsangpo
Arunachal Pradesh

In the remote but geopolitically sensitive corners of Arunachal Pradesh, the quiet flow of the Siang River has become the backdrop to a turbulent contest of national security and ecological stakes. The state’s decision to pursue the 11,000 MW Siang hydropower project is seen as a riposte to the hydrological and geopolitical crisis instigated by China’s gargantuan 60,000 MW dam on the YarlungTsangpo in Tibet.


This looming Chinese project has been described as a potential ‘hydro bomb’ capable of triggering flash floods or crippling water shortages downstream in India and Bangladesh, causing water to become a weapon in future Sino-Indian tensions. By constructing the Siang dam, India aims to mitigate these risks while asserting its sovereignty over the river’s flow.


The 2,900-kilometer Brahmaputra—known as the YarlungTsangpo in Tibet and the Jamuna in Bangladesh—supports millions across three nations, yet is a fault line for conflict. Historically, rivers in South Asia have been central to disputes, from the Indus Waters Treaty of 1960 between India and Pakistan to skirmishes over the Teesta River between India and Bangladesh.


China’s recent approval of the Tsangpo dam marks a new phase of hydraulic hegemony. With a proposed capacity to generate 300 billion kilowatt-hours annually, this dam would overshadow even the Three Gorges Dam, the current global leader. Positioned near the ‘Great Bend,’ where the river takes a sharp southward turn into India, the project amplifies downstream nations’ vulnerability to China’s control over water resources.


India’s Siang dam project, though significantly smaller in scale, is envisioned as a strategic countermeasure. However, indigenous communities, organized under the Siang Indigenous Farmers Forum (SIFF), have vociferously opposed the dam, citing concerns of mass displacement and ecological devastation.


The Siang region is a biodiversity hotspot, with fragile ecosystems already under strain from deforestation and climate change. Critics argue that constructing a mega-dam here could trigger landslides and disrupt the region’s seismic stability. Notably, the recent earthquake in Tibet, which claimed over 120 lives, underscores the geological fragility of the Himalayan belt. Environmentalists warn that tampering with this terrain could unleash catastrophic consequences for millions downstream.


China’s dam, too, has drawn environmental scrutiny. Though Beijing has touted it as a cornerstone of its carbon-neutral ambitions, experts point to the peril of altering water flows in such a volatile region. Bangladesh, the Brahmaputra’s final downstream recipient, stands particularly exposed to the double jeopardy of reduced water availability and increased flood risks.


For India, the Siang project, more than an engineering challenge, is a geopolitical necessity. China has consistently weaponized infrastructure projects to assert dominance, from its Belt and Road Initiative to its construction of border roads in disputed territories. The YarlungTsangpo dam fits this pattern, doubling as a tool of soft power and hard leverage.


For India’s part, the Siang dam would not only generate electricity but also serve as a bulwark against sudden water releases by China, whether intentional or accidental.


The battle over the Brahmaputra and its tributaries is emblematic of a 21st-century reality: water, once considered an inexhaustible resource, is now a flashpoint for conflict. As climate change exacerbates water scarcity, the competition over transboundary rivers will intensify. For India, the Siang dam is a bold though fraught attempt to secure its hydrological future.


The question, however, remains if can megaprojects like these ever truly address the complexities of geopolitics and ecology, or do they merely shift the risk downstream? As New Delhi and Beijing escalate their hydropower race, millions who depend on these rivers may find themselves swept up in a deluge of unintended consequences.

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