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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.)

Reimagining Boundaries: In Defence of AYUSH Practitioners

India’s health-care shortage will not be fixed by keeping its traditional healers on the margins.

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A recent critique of AYUSH practitioners in an article in The Hindu (July 29) titled ‘The medical boundaries for AYUSH practitioners’ by Dinesh S Thakur and Prashant Reddy T presents a detailed but one-sided argument against expanding the scope of practice for AYUSH professionals. While it raises concerns about patient safety and regulatory clarity, it ignores India’s healthcare realities, the history of medical education and the progress of integrative models. It is quite unfair to call the syllabus for Ayurveda students “an absolute mish-mash of concepts” and to say “there is no middle ground between both systems of medicine” when recent research shows that many AYUSH concepts have influenced modern medicine, including advanced areas such as nanomedicine and personalized medicine.


The key question is whether AYUSH practitioners should be allowed to prescribe certain modern medicines or perform specific procedures. Limiting this discussion to legal or doctrinal terms ignores the ground realities. In many districts, a single government allopathic doctor may be responsible for thousands of people. AYUSH doctors are often the first, and sometimes the only, available source of care. Preventing them from dispensing a limited list of essential drugs, ordering diagnostic tests, or making timely referrals can lead to delayed or missed treatment for people in areas with very limited medical facilities. Likewise, questioning whether “practitioners of Ayurveda can refer to themselves as doctors” is at odds with Indian law. The government should take constructive steps to provide appropriate training to AYUSH practitioners for the benefit of citizens and adopt a clear policy position. Yet, in recent Parliament discussions, the Ministry of AYUSH stated there are no plans to officially authorize AYUSH doctors with additional training to prescribe a limited range of essential allopathic medicines. This is despite the well-known fact that rural areas face a serious shortage of allopathic doctors. In many such regions, posts for allopathic doctors remain vacant for years because they are often unwilling to serve there, leaving communities with little or no access to timely medical care.


The Bhore Committee’s doubts about traditional systems are often seen as a standard for legitimacy. But its thinking reflected colonial priorities and the unquestioning adoption of Western models. These models took root partly because, for centuries, caste hierarchies in India allowed almost only Brahmin men to access Ayurveda education, preventing women and people from other communities from entering the field. When Western medicine arrived with standardized syllabi, examinations, hospitals, and wider opportunities for women and non-elite groups, it displaced an unequal system. Acknowledging this history does not diminish Ayurveda; it explains why reforms were needed and why today’s AYUSH education is more inclusive and structured.


Legal recognition has also evolved. The Indian Medicine Central Council Act, 1970, formally recognized Indian systems of medicine and created a national regulator. This has since become the National Commission for Indian System of Medicine (NCISM), with clearer licensing standards, model syllabi, and practitioner registers. It is a structured, quality-focused system, not a permissive one.


Criticism of State notifications under Rule 2(ee) of the Drugs and Cosmetics Rules, 1945, which allow certain AYUSH practitioners to prescribe a limited set of modern medicines, misses the real purpose behind these orders. They are a practical response to the lack of MBBS doctors in many areas. The focus should not be on questioning whether such powers should be given at all, but on ensuring they are exercised responsibly. This means having clear lists of permitted drugs, making training compulsory, keeping proper records of prescriptions, and imposing strict penalties for any misuse. Such measures can protect patient safety while also improving access to care.


It is also wrong to say AYUSH education is detached from modern science. Current BAMS, BHMS, and other AYUSH courses include anatomy, physiology, pathology, pharmacology, microbiology, diagnostics, and public health. While quality may vary between universities, the trend is toward stronger scientific foundations and more clinical exposure. This should continue through regular curriculum updates, standard setting, and independent reviews.


The debate on surgery needs more careful consideration. Ayurveda’s Sushruta Samhita shows a long tradition of surgical knowledge. Any permission for AYUSH surgeons to perform certain procedures should depend on skill, patient types, facilities, and supervision. While some Ayurved students have limited surgical training, the solution is not exclusion but better training by using experienced surgeons as mentors, shared skills labs, standardized assessments, and accredited departments with adequate case load and good outcomes before allowing independent practice. NCISM can lead this with transparent accreditation and periodic re-credentialing.


At the heart of the legal debate is also the issue of protecting their own professional position. Many in the allopathic community welcome integration when AYUSH practitioners work under their supervision, but resist it when it involves equal recognition and shared responsibilities. Patient safety must remain the top priority, but it can be better protected through clearly defined scopes of practice, uniform minimum standards, and joint training programmes, rather than by imposing blanket bans.


Modern healthcare already uses knowledge from different systems. The important question is what works, for whom, in which situations, and at what risk. The World Health Organization supports the role of traditional medicine in universal health coverage, provided countries regulate it well, fund research, and integrate it responsibly. India has moved in this direction by hosting the Global Centre for Traditional Medicine. The next steps are strong clinical research, monitoring drug safety, reporting adverse events across systems, and measuring outcomes in a transparent way.


It is time to move beyond the false choice between science and tradition. India’s healthcare future depends on combining the strengths of both, with decisions guided by solid evidence, ethical practice, and accountability. With proper training and oversight, AYUSH practitioners can deliver timely, culturally appropriate and safe care, particularly in areas where medical services are scarce. Excluding them simply because they follow a different system serves neither the cause of science nor the needs of society.


(Dr. Asmita Wele is Director, Research, College of Ayurved and Research Centre, D.Y. Patil Vidyapeeth, Pimpri-Pune; Dr. Kishore Paknikar is former Director, Agharkar Research Institute and Visiting Professor, IIT Bombay. Views personal.)

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