How has the COVID-19 pandemic left the poor even farther behind?

General Blog06 JulyAditi GuptaCOVID-19 pandemic, Economy

In light of the economic downturn our world has been facing due to the COVID-19 pandemic, it can be more than considered the biggest and worst economic calamity post the Great Depression. According to the IMF, the global economy was expected to grow 3 percent in January 2020, but instead, it is now estimated to fall 3 percent, which can be assumed to be way worse than during the period of the Great Recession in 2008-09. If the pandemics in the past are to be analyzed, they have more adversely affected the poor and downtrodden section in comparison to the upper class. Leading economists worldwide have stated the COVID-19 pandemic will create a further economic divide between the rich and poor, leading to unforeseen inequality. Furthermore, it has been observed that pandemics have augmented unemployment and inequality more for low-skilled workers or people with basic education than people with advanced degrees.

Migrant and daily wage labourers have suffered severely due to the pandemic after a nationwide lockdown was announced in March 2020. The ultra-rich population of India has successfully managed to keep themselves away from harm’s way, but the low-income families have been facing the brunt of the crisis as they are forced to deal with the pandemic with limited or no resources. According to research conducted in January 2020, India’s richest 1 percent were accounted to have held more than four times the wealth held by 953 million people who made up the bottom 70 percent of the nation’s population. Therefore, upcoming government policies to uplift the nation’s economy needs to particularly focus on preventing a long-term dent in the livelihoods of the poor and disadvantaged section of the society. A stronger public healthcare system is one of the most important demands in the current situation, but unemployment benefits, boosting public work programs to present job opportunities, providing financing opportunities to sustain employment, and progressive tax measures can provide a cushioning effect for the poorer segment of our society which has been reeling under effects of the pandemic. Thus, our policymakers must take up this opportunity to introduce the changes as mentioned above to the teeth to protect their most vulnerable from any such further calamities.

Awakening Digital Media in Remote Areas

Campus Life, Faculty, General Blog, IILM Graduate School of Management, IILM Institute for Higher Education, IILM Undergraduate Business School, IILM University, Uncategorized02 AprilMegha KochharAwakening, changing vision, Common Man, Digitization, Economy, Growth, Print media, Rural Development

The advent of digital media has been nothing short of a revolution for our country. In recent times this importance got highlighted during demonetization and now with the Corona crisis staring at our face. This has also vastly affected our social relationships and the way we perceive issues.

Every technology has its drawbacks when used to generate negativism and disorder. Unfortunately these are the perils of our times and in spite of existing safeguards there are implications which have ominous consequences. Though, we have embraced the digital world with open arms, however, it cannot be said for the common man.

It needs no emphasis that more than 70 percent of the population our country resides in the rural areas. Has this population changed its ways and thoughts to imbibe the rudiments of digitization? The answer would not please us. We are still a developing country and cannot measure up to the standards of countries such as USA, Japan or France.

What then should be the way out? The first and the foremost are related to the reach of media. We need to have internet connectivity to the remotest areas which may involve a large amount of expenditure. A way out could be to develop a cyber hub in each village which should be maintained by the district administration and people could flock there and use the mobiles with the available internet connectivity to transact any kind of business or information related activity. It is noteworthy to see that PayTM and such like platforms have been a great force multiplier towards paperless transaction. We need to build up on these existing platforms and extend their reach to the remote areas of the country.

Broadband highways need to come up and get established in a phased manner. The common man needs this technology to augment the agricultural base of the country and build up the resources of our country. The path is long but can be tread upon if the correct impetus is there. I am reminded of a famous quote,

”Being challenged in life is inevitable, being defeated is optional”.

It Is Brexit : United Kingdom Votes To Leave EU. How It Impacts India?

General Blog, Guest Blog24 JuneCharu SharmaBrexit, Britain, Economy, EU, India, UK Elections

Announced and confirmed, it is Brexit. The referendum declares Britain’s exit from the 20 member European Union. It will certainly ripple the global economy and markets, may be in just a blink of an eye. But the question now lingers, will Brexit impact India? If yes, will be on the negative grounds, or positive?

In an article in The Wall Street Journal , Grer IP termed the possible exit of the UK from EU as “the starkest repudiation yet of the postwar consensus favoring ever – deeper global integration”

“A further unraveling would undermine global growth prospects already clouded by aging populations and miserable productivity,” he said in the article.

Indeed, Brexit will have a deep impact on the global economy and in turn on India –

1. The Relationship Of Trade, Export And Import Between India And UK

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In the last five years, the trade has been more or less stable. The figures of India – UK Bilateral trade are considerably going on a much settled note. Since the two-way trade between India and the UK has been fairly stable, the impact is likeyly to be minimal in this area.

In an article, Biswajit Dhar, a professor of economics at the Jawaharlal Nehru University (JNU) stated “Britain’s exit from the EU probably won’t have any significant impact on this”

2. India Is One Of The Largest Source Of FDI To The UK

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India invests the maximum in UK than in any other country. According to Deloitte, as stated in an article, “There are an estimated 800 Indian owned businesses in the UK, including companies like Tata Motors (Jaguar Land Rover – UK Company) with more than 110,000 employees. Further, the UK is also India’s largest G20 investor,” it said.

FDI getting effected by Brexit is an inevitable impact on India.

3. What About The Companies And Profits

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UK is the maximum revenue generator source for Indian companies. Maximum of Indian businesses choose to establish their European offices in the UK, to gain the flexible working operations in the UK and to avail the benefits of staying in Europe. Removing this gateway would be problematic for Indian businesses in the UK, who may choose to relocate and direct investment someplace else.

Nasscom recently in an article said a Brexit will have a negative impact on the $108 billion Indian IT sector in the short term. However, it said the exact nature and extent of the impact will emerge over a longer period of two years or more.

4. Status On Currency And Markets

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Wait for the snowball effect on India, as UK and the US takes the major hit back with currency downfall. This might be due to foreign investors winning over their losses by sell-offs in emerging markets, including India. Global market volatility will be certainly expected, the pound will depreciate against major economizes. Hence, India cannot escape from this, Sensex and Nifty will tumble in the short-run.

“For India, it would be more of a reaction to global news, which does not affect it directly to a large extent, except possibly some of the corporates which have large exposure to UK. Post the knee-jerk reaction, we may again get on track due to benign domestic factors,” said Ambareesh Baliga, an independent equity markets analyst.

5. All About The Commonwealth, Travel And Workforce

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Britain will always need a continuous inflow of talented workforce, and India has been generating the needs due to its English-speaking population. Migration from European boundaries will be drying up, Britain would will certainly reach out for migration from other countries, which will suit India’s interests.

The UK is one of the most popular destinations for Indian tourists going to Europe. Further, Britain is one of the most important destinations for Indians who want to study abroad. With Brexit, the universities will free up funds and scholarships for students from other countries, just not limited to EU.

References :
Vox World
NDTV

Top 5 Achievements Of Raghuram Rajan As RBI Governor

General Blog, Guest Blog10 JuneCharu SharmaAbout Raghuram Rajan, Achievements Of Raghuram Rajan, Achievements Of Raghuram Rajan As RBI Governor, Central Bank of India, Economy, News 2016, Raghuram Rajan, RBI, RBI Governor

Raghuram Rajan is the 23^rd Governor of RBI, the central bank in India. He assumed charges on September 4, 2013. During his stint of almost 3 years, there are some commendable highlights of his contribution in the financial system that is hard to look by.

Here are his top 5 achievements as the RBI Governor – a financial master who is willing to take challenges head on, following facts and numbers about his work is certainly a hard look away.

1. Inflation

Rajan is known for his primary focus on curbing inflation. His biggest achievement is that he successfully brought down retail inflation to 3.78% in July 2015 from 9.8% in September 2013 – the lowest since the 1990’s.

2. Consumer Price Index (CPI)

Under Rajan, the RBI adopted consumer price index (CPI) as the key indicator of inflation, which is the global norm, despite the government recommending otherwise.

3. Strengthen Forex Reserve

India’s Forex Reserve is now stronger by about 30% than it was two years back. During the recent depreciation, Rajan said the central bank has Forex Reserves to the tune of $380 billion, which is a comfortable level, and would intervene if there was a need.

4. New Bank Licenses

Under Rajan, two universal banks have been licensed and eleven payment banks have been given the nod. This is expected to extend banking services to the nearly two-thirds of the population who are still deprived of banking facilities.

5. Futuristic

Rajan has made an immense contribution to the field of economics, the greatest being his prediction of the economic turmoil in the US and Europe during 2008-2012. The prediction cemented his position among some of the greatest economists of our times.

RBI Governor, Raghuram Rajan, Economy, Central Bank of India.

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Most of his reforms and policies are being praised highly. However, Rajan has been criticized on interest rates and inflation issues. He is known for his forward and practical approach as an instrument in battling the inflation which plagued the nation when he was designated the role of RBI Governor.