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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.)

Sanskrit for Patents? Reviving an Ancient Language for Modern Innovation

Updated: Feb 14

If India’s premier classical language can facilitate legislative debates, it certainly has the potential to serve as a precise medium for intellectual property documentation.

Sanskrit

Sanskrit, the ancient language of India, has long been revered as the custodian of profound knowledge. With its precision, adaptability, and unparalleled capacity to express intricate ideas concisely, Sanskrit has remained integral to philosophical and scientific discourse for centuries. In today's fast-evolving technological landscape, where intellectual property is pivotal to innovation, could Sanskrit be revived as a language for patent documentation? This proposition offers intriguing possibilities while posing notable challenges.


The recent initiative by the Lok Sabha Secretariat to provide simultaneous interpretation of parliamentary proceedings in Sanskrit is a significant step toward the language's revitalization. This move underscores the government's commitment to preserving and modernizing Sanskrit, reinforcing its potential utility in various domains including intellectual property protection. If Sanskrit can facilitate legislative debates, it can certainly be adapted for patent filings, thereby safeguarding India's technological advancements while reaffirming its cultural identity. Patents serve as repositories of protected knowledge - a role Sanskrit has historically excelled at. Ancient Indian texts, from the Charaka Samhita in medicine to the Surya Siddhanta in astronomy, exemplify how complex knowledge systems were encoded in Sanskrit with exceptional clarity and brevity. The language’s unique structure allows for precise expression, making it an effective medium for patent claims. A well-drafted patent in Sanskrit could enhance legal robustness by reducing ambiguities and safeguarding against misinterpretation or infringement.


Furthermore, Sanskrit’s capacity for succinct expression makes it a strong candidate for patent drafting, minimizing convoluted descriptions. For instance, Ohm’s law, stated in English as: “The current through a conductor between two points is directly proportional to the voltage across the two points, provided the temperature remains constant.” can be rendered concisely in Sanskrit as:


“यद्यपि तापमानं अपरिवर्तनशीलं भवति, तदा प्रवाहः विभवस्य समानुपाती भवति।”


Similarly, a patent claim for a biometric authentication system: “A biometric authentication system comprising a fingerprint scanner for capturing user fingerprints, a database for storing fingerprint data, and an algorithm for matching the captured fingerprint with stored data.” can be effectively encapsulated in Sanskrit as:


“जैवमितिसत्यापन प्रणाली यः हस्तलाक्षणिक संग्राहकं धारयति, संग्रहणं सूचनाविभागे सम्पादयति, मिलानं निष्पादयति।”


This linguistic efficiency could streamline patent documentation, reducing redundancy and enhancing technical clarity.


Developing new Sanskrit terminology for contemporary scientific and technological advancements is not insurmountable. Sanskrit news broadcasts on radio and television have already demonstrated this adaptability, seamlessly incorporating modern terminologies. Words such as vidyut (electricity), yantra (machine), and doordarshan (television) illustrate its evolutionary potential. Extending this adaptability to patent law could be highly feasible. For instance, a patent claim for an AI-powered translation system: “An AI-powered translation system that processes input text, identifies linguistic patterns, and generates accurate translations across multiple languages.” can be concisely expressed as:


 “कृत्रिमबुद्धियुक्त भाषा-अनुवाद प्रणाली यः पाठस्य विश्लेषणं करोति, भाषाप्रवृत्तीनां चिन्हानि परिज्ञाय, यथार्थ अनुवादं सम्पादयति।”


These examples illustrate Sanskrit’s ability to integrate with cutting-edge computational technologies.


Introducing Sanskrit into the patent system could be implemented in a phased manner. Initially, it could be an optional language alongside English and Hindi, the two official languages currently recognized for patent applications in India. This transition would allow inventors and legal professionals to adapt gradually. Under existing Patent Cooperation Treaty (PCT) regulations, applications not filed in English require an English translation within a stipulated timeframe. Sanskrit could be integrated within these frameworks, ensuring a structured and efficient adoption process. Globally, countries such as China, Japan, Germany, France, Russia, and Korea file patents in their native languages. By incorporating Sanskrit, India would align itself with global best practices while showcasing its rich linguistic heritage. Just as Latin once served as the lingua franca of European intellectual discourse, Sanskrit could reclaim a similar role in India’s intellectual and technological landscape.


Despite its potential, certain challenges must be addressed. Since Sanskrit is not widely spoken today, training inventors and legal professionals in its technical applications would require dedicated efforts. Additionally, while Sanskrit’s interpretability is a strength, it could also introduce complexities in legal proceedings. For instance, a dispute over whether a Sanskrit shloka describes a wind turbine or a ceiling fan could become legally intricate. Furthermore, translating Sanskrit patents for international filings might necessitate additional resources. However, India possesses a vast pool of linguistic scholars and software developers who could develop advanced translation tools, ensuring global compatibility.


The recent adoption of Sanskrit interpretation in the Lok Sabha demonstrates the government's commitment to reintegrating the language into contemporary discourse. If Sanskrit can facilitate legislative debates, it certainly has the potential to serve as a precise medium for intellectual property documentation. Reviving Sanskrit for patent documentation is more than a symbolic gesture; it is a practical and ambitious proposal that bridges India’s historical legacy with modern technological needs. By integrating Sanskrit into the legal framework, India could reaffirm the relevance of its linguistic heritage while enhancing the protection of intellectual property. The idea may be ambitious, but ambition has always been the driving force behind innovation.

 

(The writer is a former Director of the Pune-based Agharkar Research Institute and Visiting Professor, Indian Institute of Technology, Bombay. Views are personal)

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