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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.)

One Health, One Future: Why India Must Lead the Way

Integrating human, animal and environmental health offers India a strategic path to resilience and global leadership.

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In 2023, two incidents in southern India carried a chilling warning. A two-year-old girl in Andhra Pradesh and a man in Karnataka died of H5N1 bird flu, a rare but lethal zoonotic infection. Around the same time, Kerala reported nearly 200 deaths from leptospirosis after unseasonal rains triggered a surge in rodent-borne transmission. These were not freak events. More than 60 percent of all human infectious diseases originate from animals, and nearly three-quarters of new or emerging infections are traced back to this source. The invisible line separating the health of humans, animals, and the environment is constantly being breached.


Climate change and antimicrobial resistance compound India’s health risks. The WHO warns of 250,000 additional climate-related deaths annually by 2050, while the IPCC forecasts six billion people in dengue-prone zones by 2080. India’s warmer, wetter climate is already extending mosquito seasons and worsening malaria and dengue outbreaks. Melting glaciers may release ancient pathogens. Meanwhile, drug-resistant infections caused 1.27 million deaths globally in 2019, with misuse of antibiotics in healthcare and agriculture driving resistance in India. These intertwined threats all converge under the One Health imperative.


One Health is not just a slogan but a recognition that human, animal, and environmental health are deeply interconnected. It serves as the guiding principle for prevention in the 21st century. The European Union’s EU4Health program has allocated €4.4 billion for surveillance and antimicrobial resistance control. Germany has established a dedicated One Health unit, and the United States launched its first National One Health Framework in 2023. The World Bank’s Pandemic Fund has raised billions, with new pledges at the G20 summit in 2024, including India’s $12 million commitment. The key lesson is that prevention is more effective and less costly than remediation.


India has made some progress in this area. Programs like the PM-Atmanirbhar Swasth Bharat Yojana and the National Health Mission can serve as platforms for incorporating One Health principles. Even a small reallocation of funds could support veterinary laboratories, zoonotic surveillance, and environmental monitoring. Although overall health spending is low at 3.3 percent of GDP, establishing state-level One Health units and inter-departmental teams would not require huge resources. However, budgets alone are not sufficient. India’s strong pharmaceutical, biotech, and agri-tech industries need to be involved, developing rapid diagnostics, veterinary vaccines, and protocols for antibiotic stewardship. Well-designed public–private partnerships can help ensure that innovations are quickly translated from labs to real-world application.


The main obstacle is institutional. Ministries of health, animal husbandry, environment, food safety, and wildlife all have overlapping responsibilities but mostly operate separately. They lack shared budgets, common dashboards, and methods for real-time data exchange. The National Standing Committee on Zoonoses exists, but without legal authority or a dedicated budget, it cannot maintain momentum. Recognizing this, the government held a national consultation in 2024 to explore harmonizing laws across human, animal, and environmental health sectors. It is crucial to align the Epidemic Diseases Act, Livestock Importation Act, and wildlife regulations with outbreak surveillance. A biennial One Health legal review could identify conflicts early before they become crises.


States offer inspiring examples. Karnataka and Kerala have shown that multi-agency responses to Nipah and dengue can be quick and effective. Gujarat’s brucellosis control program serves as another model. Scaling these successes requires establishing State Zoonoses Committees connected to District Task Forces, conducting simulation exercises, and ensuring joint incident reports within 48 hours of outbreaks. Training is just as important. Medical officers, veterinarians, forest staff, environmental officers and community health workers need joint courses in triage, biosafety, digital reporting and outbreak investigation. Expanding India’s disease surveillance system to include animal and environmental indicators, with open data sharing across agencies, could be transformative. Abattoirs, live-bird markets, fisheries, and wastewater systems could all serve as early warning sites for emerging threats.


COVID-19 reduced India’s GDP by 7.3 percent in 2020. Early detection of zoonoses in animals could prevent such shocks and save billions. WHO estimates zoonoses already cost low-income countries one trillion dollars annually in productivity losses, livestock deaths, trade bans, and health expenses. A national One Health investment ledger that tracks avoided costs could attract finance ministries and investors, making resilience a matter not just of science but also of economics.


India is well positioned to lead globally. During its G20 presidency, it promoted the idea of ‘One Earth, One Health’ and helped secure commitments on zoonoses and antimicrobial resistance. The proposed National Institute of One Health in Nagpur can serve as a center for research, training, and regional collaboration. India’s strengths in affordable innovation, from mobile apps to veterinary vaccines, can benefit South Asia and Africa. Its manufacturing capacity can be expanded to serve the Global South. By linking climate finance to health outcomes, India can also demonstrate how fighting deforestation, waste mismanagement, and water insecurity reduces both emissions and disease risks.


The convergence of zoonotic spillover, climate-related illnesses, and antimicrobial resistance is among the greatest challenges of our era. For India, adopting One Health is not optional but a strategic necessity. The launch of NAP 2.0 and the Nagpur Institute represents a historic milestone. If India rises to the occasion, One Health could become not just a national model but a global legacy of foresight and accountability.


(Dr. Deo Prakash Chaturvedi is a scientist with the Department of Biotechnology, Government of India, New Delhi; Dr. Kishore Paknikar is the former Director, Agharkar Research Institute, Pune and Visiting Professor, IIT Bombay. Views personal.)

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