Sunday, November 17, 2024
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Economy

“The economy is a very sensitive organism.”

– Hjalmar Schacht

Trump 2.0 India tariff
EconomyEditor's PickWorld
Tridivesh Singh Maini

Trump 2.0 and India: Trumping Tariff Tensions, Transactionalism Amidst Geopolitical Rebalancing

It is tough to make any predictions regarding Trump 2.0. While some commentators believe that his policies will be as disruptionist as in his previous stint, others are of the opinion that he may be transactional but less unpredictable. During the presidential campaign, Trump had said that he would impose tariffs on countries which are trading in non-dollar currencies. It remains to be seen if he goes ahead with such measures given that several countries with close links to the US, including India, have been favouring de-dollarisation. It also remains to be seen how Trump 2.0 would perceive the Chabahar project given the current turmoil in the Middle East.

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Smog Punjab India-Pakistan
EconomyPoliticsWorld
Tridivesh Singh Maini

Smog Diplomacy, Punjab Centrality: India-Pakistan Thawing Relations May Address Punjab Woes

Chief Minister of Pakistan Punjab, Maryam Nawaz Sharif, recently underscored the need for greater cooperation between both Punjabs to counter the challenge of smog. Earlier this year, while speaking to Sikh pilgrims from India at Kartarpur Sahib, she had underscored the importance of ‘Punjabiyat’. The Punjabs on both sides have played an important role in people-to-people, cultural as well as economic linkages between both countries. Since 2019, when trade links between India and Pakistan, via the Wagah-Attari land crossing, were discontinued, there have been significant job losses resulting in a major setback to the border districts of Punjab (India). Maryam Nawaz’s remarks have raised hopes of resumption of engagement – albeit incremental – between both countries via the Punjabs.

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Economic Linkages in South Asia
EconomyEditor's PickWorld
Tridivesh Singh Maini

Vicious Cycle of Economic Slowdown in South Asia

Sri Lanka and Pakistan are dealing with serious economic crises. Apart from serious domestic issues like shortage of essential commodities, and power cuts, both countries have meagre foreign exchange reserves. The excessive dependence on China is the main reason for the increasing debt trap. Both countries also had to seek International Monetary Fund (IMF) assistance despite domestic opposition against the conditionalities imposed by the IMF. It is important for South Asian countries to work towards more robust economic linkages within the region and to shed dependence upon external assistance. 

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Gig Economy Education Jobs
CareerEconomyEditor's Pick
Onkar Singh

Gig Economy: The New Disruptor of Education, Jobs & Social Security

A new philosophy of labour economics is flourishing because of gig recruiters who only target their requirements irrespective of whether the doers have any formal educational certificates or not and the worthiness of gig workers decides their hiring. The sole reliance on the expertise of individuals to perform the respective jobs is likely to delink the educational attainments with the jobs which in turn will also decouple the educational attainments from the pay levels. It is imperative for the education system to engrain the students with comprehensive abilities to adapt, and learn-unlearn-learn in the self-initiated mode for remaining relevant and fetch higher incomes for themselves in the changed economic spectrum. The ensuing independence of educational attainments from jobs and income may push children out of the formal education system for immediate jobs and higher incomes, which may have its implications on the overall capacity building of human resources for sustainability.

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AgricultureEconomyEditor's Pick
Javid Majeed Pandith , Naushad Ul Haque Mullick

Making Sense of Falling Apples Prices in Jammu and Kashmir

Apple growers in Kashmir Valley are on the roads to express their simmering anger due to price crashes and infrastructural bottlenecks. Out of  2.1- 2.9 million tons of apples grown in India annually, around 75 percent comes from the Kashmir valley. In order to enhance the income of apple growers, there is a need to address the infrastructural bottlenecks, technical upgradation of capabilities of horticultural staff, improvement in market intelligence system, branding and government need to regulate the pesticides. Further, there is also a need for reducing the layers in the supply chain by necessary ICT intervention. The government needs to explore Cooperative farming, strengthen farmer-produce organizations and incentivize the establishment of fruit processing units.

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EconomyEditor's PickWorld
Furqan Qamar , Arushi Mehta

Catastrophic Consequences of the Conflict

The ongoing Russia-Ukraine conflict has had a long history and with threat perceptions on both sides. However, the conflicts and wars benefit only a few, and that too in the short term. The world must work together to end this crisis at the earliest. Or else, its cascading effect might push the whole world into an abyss from where the recovery would become extremely difficult. The underdeveloped and the developing world are likely to be the worst affected and they all must come together to pitch for peace.

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Fee Fixation for Technical Higher Education
EconomyEditor's Pick
Furqan Qamar

Fee Fixation for Technical Higher Education

Prescribing a precise amount of fees may well be construed as if the council is exceeding its mandate of prescribing the norms and guidelines for charging tuition and other fees. Pricing regulation assumes particular significance in the context of the higher educational institutions, which are, as yet expected to operate as not-for-profit entities. They are prohibited from profiteering or indulging in crass commercialization. Nonetheless, unable to fill their sanctioned intake, many institutions do not invest in labs, physical facilities, infrastructure, and human resources and, thus, find themselves trapped in the vicious cycle of mediocrity. Fixing a mandatory minimum level of fees would favour such institutions but cannot be said just for the students.

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STOP THE SLIDE...BEFORE IT SLIPS
EconomyIndia
Furqan Qamar

The Indian Economy: Stop the Slide…Before It Slips

The current crisis in Sri Lanka must make us sit back and realize our own vulnerabilities. Slowing growth rate, rising borrowings, increasing magnitude of withdrawal by the institutional investors and widening gap between export and import must make India cautious. The economy must be beyond electoral politics. We must leave everything aside and work with focused attention to protecting and safeguarding our economy. The rest can wait, but not the economy!

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Russia-Ukraine War_ Alternative to SWIFT
EconomyEditor's PickWorld
Furqan Qamar , Samreen Fatima Siddiqui

Alternative to SWIFT: Russia-Ukraine War Highlights the Urgency

The financial warfare against Russia, inter alia, has cut off Russian banks from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) thereby blocking Russia from rapid money transfers internationally. Even though SWIFT accounts for no more than 1 percent of the transactions involving Russian entities and payments, the ban may potentially disrupt its trade in energy and agricultural produce as well as Foreign Direct Investment (FDI) and Foreign Institutional Investors (FII). In totality, the sanctions against Russia may shrink its economy by 5 percent. The current crisis has made many countries of the world think of developing alternative payment systems and capabilities. This would be a challenging task as the alternative to SWIFT would work only when a larger number of countries become willing to cooperate and agree to become a part of the alternative network.

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Russia-Ukraine Conflict Impacting Global Flow of Funds
EconomyEditor's PickWorld
Furqan Qamar , Mohd. Zain Khan

Russia-Ukraine Conflict: Impact on Global Flow of Funds

The Russia-Ukraine conflict can intensify the already shaken economic conditions created by COVID-19 as inflationary pressures might have an effect on many countries. Investors in Central and Eastern Europe are cautious with their investments. As per an IMF report, the sanctions imposed against Russia will impact the global economy. It clearly seems to have already affected FDI and portfolio investment in many countries, including India. For the sixth month in a row, foreign portfolio investors (FPIs) were net sellers in February, selling shares worth $4.9 billion. It was also the most shares sold by FPIs since the epidemic began in March 2020, when they sold $8.3 billion worth of stock. The Union Finance Minister of India had stated that the Russia-Ukraine conflict and surge in crude oil prices pose risk to the financial stability of the country.

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Economic Implications of Russia-Ukraine Crisis
EconomyEditor's Pick
Furqan Qamar , Hassan Ahmad

Economic Implications of Russia-Ukraine Crisis

The world has been thrown into yet another catastrophe caused by the Russian attack on Ukraine and the retaliatory sanctions imposed on Russia by the major economies of the world. It is now time to see how would these twin crises of the pandemic and the ongoing conflict affect the geopolitics and world economy. Russia accounts for nearly a quarter of the global gas market and has been a major supplier of crude, platinum. Russia and Ukraine are also the top suppliers of neon gas, essential for making semiconductor chips, an essential component of every electronic item. Even though the direct effect of sanctions on major economies might appear minuscule as they may have relatively smaller and limited trade with Russia, they too would suffer significantly on account of indirect, collateral, and tangential repercussions.

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Ukraine Crisis and Energy Security in India
EconomyEditor's PickWorld
Taufeeque Ahmad Siddiqui , Furqan Qamar

Bracing for the Changing Geopolitics: Ukraine Crisis and Energy Security in India

As Russian troops reach Kyiv, the capital of Ukraine, the Brent crude prices have already touched $110 a barrel, a level that was breached 8 years ago in 2014. The moot question, therefore, is, whether or not India was ready to anticipate and handle the consequences arising out of such a crisis with minimal disruptions. Taxes on petroleum, today, may be a major source of revenue but is also vulnerable to volatility impelling upon the need to look for an alternative but stable source of revenue to the government.

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Tax Free Economy Black Money
EconomyEditor's Pick
Furqan Qamar , Taufeeque Ahmad Siddiqui

A Tax-Free Economy to Tackle the Menace of Black Money?

Recently, Rajya Sabha MP and economist Dr. Subramanian Swamy made a bold suggestion that Income Tax be abolished to boost the economy and that the revenue loss to the public exchequer could be easily recovered through other sources. Although a good number of economists may agree that taxation is the major culprit for creating black money, they are likely to shun the idea of abolishing taxes to tackle the menace of black money, due to their orientation and training in public finance which sees taxes inevitable. Yet, a few economists should at least explore this as a possibility by factoring in all the enormities and complexities that the idea entails.

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FLUCTUATING PETROLEUM PRICES IMPACT ECONOMY
EconomyEditor's Pick
Shreya Devarajan , TheRise.co.in

The Great Indian Economy: Ravaged by COVID-19, Ruined by Petroleum Prices and Policies:

The economy has suffered immensely due to the price rise in essential oil and fuel. The economic slowdown put the economy under downward pressure leading to cutting down on the consumption of essential commodities. The policy needs to be more resilient to curb the ravages of unprecedented events. Let us see how the fluctuating petroleum prices are impacting the economy.

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Why Indian startups fail
EconomyEditor's Pick
Devvrat Sharma , TheRise.co.in

Zomato Goes Public, Paytm in the Queue. Yet, 90% Indian Startups Fail within 5 Years. Why?

The recent IPO of Zomato is just one case in the larger canvass of the Indian startups going public. Another Indian startup, Paytm, is eyeing the largest Indian IPO of Rs. 16,600 crore. However, India’s startup ecosystem is lagging behind in terms of the conversion rate of startups into unicorns. Here, we analyse the internal and external factors that play role in the survival of start-ups in India, the various government policies in place for providing them with a supportive environment, the reasons for the failure of Indian startups and required measures to ensure their viability in the long run.

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Comparing Startup of India US China
BusinessEconomyEditor's Pick
Devvrat Sharma , TheRise.co.in

Indian Startup Ecosystem Third Largest, Behind China & US: A Comparison of Three Growth Engines

The global race to become the most developed nation starts from the roots: the start-ups. India, China and the US are in the middle of intense competition to become production leaders with the former two growing at unprecedented rates. This article throws light on the policies implemented by these nations to achieve this growth and how they differ amongst them. It also looks at the upcoming markets which are expected to see an inflow of a great number of start-ups in the future.

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Understanding Indian Startup Ecosystem
BusinessEconomyEditor's Pick
Devvrat Sharma , TheRise.co.in

Understanding Indian Startup Ecosystem

This article closely analyses the Indian start-up ecosystem and how these start-ups are distributed throughout the states of the country. It further observes which sectors see the most rush of new start-ups and what are the reasons why start-ups prefer some states over others. Lastly, it throws light on the sources of investments these start-ups receive and how this picture is also changing amidst an increase in tensions with neighbouring China.

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Implications of migration from rural areas
AgricultureEconomy
Abhishek , TheRise.co.in

Implications of Migration from Rural Areas

With the improving education qualifications in the young population, they tend to move towards urban centres for more valuable occupations. This leaves behind unskilled labour in rural areas having limited knowledge of new technologies. With increasing amenities in urban areas escalating the industrial sector, the pressure is building upon rural areas. Migrants are enticed to leave the villages to fulfil the needs of urban people and industries.

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Rebooting Infrastructure: National Infrastructure Pipeline Dashboard
BusinessEconomyEditor's Pick
Balasubramanian Chandrasekhar

Rebooting Infrastructure: National Infrastructure Pipeline Dashboard

Rebooting Infrastructure by NIP Dashboard holds promises as in monetizing infrastructural assets, public trust plays a crucial role. The dashboard shall also let the people of the country know how many projects are being implemented. Such a social audit mechanism increases efficiency & promotes a culture of accountability in the functioning of the government.

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GST and Governance in India
Economy
M. M. Goel

GST and Governance in India

To implement GST effectively, we need coordination between bureaucrats and the politicians in power. We need to understand Chakravyuha Challenges of the Indian Economy ‘ making great strides in removing entry barriers for firms, talent, and technology but showing less vigour to remove the exit barriers’. We have to be alert, aware, and awake of the ‘Cobra Effect’ which occurs when an attempted solution to a problem makes the problem worse.

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