MAEC Project TI02 Group 4 by Erra Syakirah Mohd Nazri https://padlet.com/errasyakirah/5ri8xyswpf5c Team Members: Erra, Maisarah, Deanne, Jun Yang, Wei Yang Country: India en-us 2019-05-13 05:43:15 UTC 2024-09-09 04:02:21 UTC hello@padlet.com https://imgglb.padletcdn.com/v13/image?t=g_auto&url=https%3A%2F%2Fpadlet.net%2Ficons%2Fpng%2F1f1ee-1f1f3.png INFLATION ARTICLE errasyakirah https://padlet.com/errasyakirah/5ri8xyswpf5c/wish/359334641 2019-05-13 05:52:19 UTC https://padlet.com/errasyakirah/5ri8xyswpf5c/wish/359334641 GDP ARTICLE https://padlet.com/errasyakirah/5ri8xyswpf5c/wish/359335203 2019-05-13 05:57:57 UTC https://padlet.com/errasyakirah/5ri8xyswpf5c/wish/359335203 UNEMPLOYMENT ARTICLE errasyakirah https://padlet.com/errasyakirah/5ri8xyswpf5c/wish/359335366 2019-05-13 05:59:52 UTC https://padlet.com/errasyakirah/5ri8xyswpf5c/wish/359335366 Unemployment article Preliminary Analysis s10193599 https://padlet.com/errasyakirah/5ri8xyswpf5c/wish/359336492 The official unemployment rate for India in April 2019 rose by 0.89% from March 2019; this shows the non-availability of jobs for people who are willing and able to work in India. However, the unemployment figure in India is most likely overstated, due to a large number of people who claim to be unemployed are engaged in illegal activities.  In a report from the Association of Chartered Certified Accountants (ACCA), it said that said the shadow economy in India currently represents 17.22 per cent of GDP, totalling about Rs 26,15,800 crore in 2016. Indian 'shadow economy' to shrink to 13.6 per cent of GDP by 2025: ACCA. (2017, July 02). Retrieved from https://economictimes.indiatimes.com/news/economy/indicators/indian-shadow-economy-to-shrink-to-13-6-per-cent-of-gdp-by-2025-acca/articleshow/59410776.cms.
This is especially true in a mixed developing economy, as people with competing skillsets struggle to find jobs, as there is a lot of structural unemployment; thus, people resort to illegal activity to find income. 
 
Long term, the government needs to spend in re-education for the older generation to adapt to the current job market, while in the short term, the government can increase infrastructure spending to increase available jobs in the construction industry. The government has already put in place a social security scheme called the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme. It guarantees 100 days in a year of unskilled manual work to rural households in India. This is a short term solution, as only ensures employment for a part of the year, it is not full-time employment, once the contract is up, the workers are left jobless again. The government also has an employment exchange, where unemployed educated youths can register for job vacancies in their respective states. This is also a short term solution to unemployment, as it aims to remove frictional unemployment. Overall, the Indian government has not done much to combat structural unemployment, with a large number of highly educated Indians holding degrees, but no jobs available to match their capabilities, this creates a long term problem which the Indian government is grappling to solve.
]]> 2019-05-13 06:08:48 UTC https://padlet.com/errasyakirah/5ri8xyswpf5c/wish/359336492 errasyakirah https://padlet.com/errasyakirah/5ri8xyswpf5c/wish/359336641 2019-05-13 06:09:38 UTC https://padlet.com/errasyakirah/5ri8xyswpf5c/wish/359336641 GDP Article Preliminary Analysis (maisarah, deanne, erra) https://padlet.com/errasyakirah/5ri8xyswpf5c/wish/359337612 India's GDP will hit the bench mark of 7% growth pace along with other Asian economies in 2020 which mean doubling GDP every 10 years. This means that the country has a much higher rate of production and more goods and services are being produced. Therefore, firms are able to make more profit and from those profit they are financially able to higher more workers and can also afford to pay higher salaries. This will lead to consumers spending more money on goods and services which helps the GDP to grow faster. The South Asian members of the group should be GDP standouts as they’ll together account for about one-fifth of the world’s population by 2030, Standard Chartered reckons. The demographic dividend will benefit India greatly. This shows that as India has many citizens compared to most countries, they will have more manpower and are able to produce more goods and services at a faster pace hence will bring about a higher GDP. Other factors that contribute to India's growth include a steadily-increasing population of working adults, ease of doing business as well as the presence of a lot of English speakers. India has one of the largest working populations in the world, especially the younger working adults (those under the age of 35), thus its labour force is very strong. This results in high productivity, which leads to economic growth. The ease of doing business and presence of many English speakers has attracted many foreign investors to India to conduct business. This has also allowed India to have import and export deals with many other countries. This therefore contributes to the economy and its growth. ]]> 2019-05-13 06:14:54 UTC https://padlet.com/errasyakirah/5ri8xyswpf5c/wish/359337612 India Inflation Rate s10195800 https://padlet.com/errasyakirah/5ri8xyswpf5c/wish/359341998 Inflation is a sustained and continuous increase in the general level of prices of goods and services in the economy .India retail inflation rate rose at a five month-high of 2.86% in March 2019 from 2.57% in February 2019, it exceeded the market expectation of 2.8% . There is an increase of 0.29% in the retail inflation rate in India. Inflation rate of India averaged 6.18% from 2012 to 2019. The consumer price index increases by 0.36% in March 2019 after a 0.2% gain in February. Cost- push inflation causes the inflation in India to rise because there is an increase in the price of crude oil as such it increases the cost of production. India is the most vulnerable to rising energy costs as it imports more than 80% of its oil requirements. A surge in the oil prices threatens to stoke inflation, derail earnings growth of companies and hurt India's economy in a long run. With Brent crude oil at a six- month high, it poses a clear risk to India's economy health. Hence, cost- push inflation occurs as there is a shortage of resources to produce goods and services and the general price level of the economy increases by the pressure on the cost of production.This means that there is a decrease in the purchasing power of the Indian citizens because the citizens have the same amount of income throughout the years yet the inflation rate of India also increases throughout the years. Due to increased in inflation, the real income of the citizens decreases as the consumer price index increases such as the increase in price of the basket of basic necessities that contains food, housing, clothing and footwear, medication and education. Thus, there is a decrease in purchasing power of the citizens.




]]> 2019-05-13 06:35:51 UTC https://padlet.com/errasyakirah/5ri8xyswpf5c/wish/359341998 Comments from WANG wang_cuiling3 https://padlet.com/errasyakirah/5ri8xyswpf5c/wish/364265691 Namaste Team India!
Thanks for sharing your padlet with me. Your article choices restricted your capacity to conduct first stage analysis. That choice from trading economics, like I've cautioned you in lecture and tutorial, it is not news article. The other article chosen for your GDP analysis is too brief. This could be the reason why I don't see much analysis here. Let me try to give you some feedback/question for thought for your to expand your points in padlet (if you like) and address some of them in your report (with further research). 

Here goes: 
GDP 
You explained how this "The demographic dividend will be a boon for India"  would lead to economic growth from the resource perspective. Good! Do explore further how increase in population size increase real GDP. Hint: GDP expenditure approach 

Go beyond this article in your report, to include other factors that contributes to India's growth. 

Unemployment 
The point about unemployment rate being understated due to the huge black market in India needs to be supported with evidence. 

The suggestion made by team in terms of education investment by the government would be more sound by finding out how much the government has done (policies implemented so far, name a few) and then conclude if these are adequate or should government still do more. 

Inflation
Purchasing power falls if consumers experienced increase in inflation rate with no change in their income. Please check understanding before CT.

That source only reports data so please find out what caused inflation to rise. Is it demand-pull or cost-push inflation. 

Lastly, please include your tutorial class when you submit your hard copy.  Once you are done with updating your padlet, please print out the hardcopy and pass it to me, either in class or drop it in my pigeon hole at Blk 72, level 9. Please proceed to find MORE resources and work on these prelim thoughts for your report writing. This is it! ]]> 2019-05-29 08:17:37 UTC https://padlet.com/errasyakirah/5ri8xyswpf5c/wish/364265691