https://padlet.com/s10195320/f1bx3kgi5ca Chang pak tsun Er Song Tao, Marcus Lee Zhong Yao, Muhammad Khairin Irfan en-us 2019-12-16 06:45:34 UTC 2024-07-25 12:39:40 UTC hello@padlet.com s10195320 https://padlet.com/s10195320/f1bx3kgi5ca/wish/424406983 2019-12-16 07:18:29 UTC https://padlet.com/s10195320/f1bx3kgi5ca/wish/424406983 s10195320 https://padlet.com/s10195320/f1bx3kgi5ca/wish/424412744 Summary of article:
To boost investments in India, FM Nirmala Sitharaman cut the corporate tax rate to 22% minus exemptions and tax holidays, from 30% earlier. This would allow a higher return on investment. Additionally, this move would also give an indication to investors that India is being serious, about being open for investment and for business.
The article reflects insecurity from investment in India as the investment structure is not in good shape and people are not willing to risk investing. ]]> 2019-12-16 07:46:16 UTC https://padlet.com/s10195320/f1bx3kgi5ca/wish/424412744 s10194925 https://padlet.com/s10195320/f1bx3kgi5ca/wish/424417322 Summary of article:
Global warming has led to disruptions in the intensity and period of the monsoon, as the rain becomes less predictable. The change in intensity and occurrence of rain causes flooding in Mumbai. Drought also dwells upon the Marathwada region, western India. These extreme weather conditions caused many farmers in India struggling to successfully grow crops like corn due to infestations. Not only does the drastic weather conditions affect crops, the intensity of the rain caused frequent floods, damaging infrastructure like roads and even buildings. The after effects are no better, as mosquitoes start breeding in dirty pockets of water after the flood. Decades of short-sighted government policies are leaving millions of Indians defenseless in the age of climate disruptions, especially the poor.

]]> 2019-12-16 08:08:36 UTC https://padlet.com/s10195320/f1bx3kgi5ca/wish/424417322 s10194925 https://padlet.com/s10195320/f1bx3kgi5ca/wish/426568208 Summary of article: 
India faces food inflation as prices of pulses, meat, eggs and edible oils increases. It is expected for the general price level of such goods to continue elevating.Dairies have raised milk prices by around 5 per cent this month due to a drop in supplies. Egg and chicken prices too are seen remaining elevated as production costs have jumped due to rising animal feed prices, said a poultry producer. Instead of helping to cool inflation rates, the distorted monsoon led to heavier rains which damaged the summer-sown crops and delayed planting of winter crops.]]> 2019-12-23 06:11:34 UTC https://padlet.com/s10195320/f1bx3kgi5ca/wish/426568208 s10194925 https://padlet.com/s10195320/f1bx3kgi5ca/wish/427586983 2020-01-04 05:27:05 UTC https://padlet.com/s10195320/f1bx3kgi5ca/wish/427586983 s10194925 https://padlet.com/s10195320/f1bx3kgi5ca/wish/427587261 GDP/Economic Growth:
In order to prevent the GDP to decline further, the government implements a fiscal policy where corporate tax would be cut down from 30% to 22%. This would attract more investors to invest in India as they will get higher returns as compared to before due to a lower corporate tax rate. Since firms' investment is part of the Aggregate Expenditure equation, it would thus affect the Real GDP of India. When investment increases it would lead to a increase real GDP due to an increase in production after investors create more job opportunities in India which leads  to more goods and services being produced. Hence market value of these additional goods and services would be higher and thus leads to a higher real GDP.
Unemployment:
There will be higher rate of investment due to a drop in corporate tax as explained in the GDP / Economic Growth tab. As more firms invest in India, there would be more job opportunities as firms from other country set up their branches in India , this would then create job opportunities for those that are unemployed in India. However, the illiteracy rate in India is quite high, therefore the lowered corporate tax rate may only help reduce unemployment to a certain extent. There will still be many unemployed due to a mismatch of skills  between the skills sets needed for job  opportunities and the skills of the people in India have.Hence the structural unemployment constitutes a large portion of the overall unemployment rate of India.
Keynesian:
Government intervention is a key factor in the keynesian model. Due to India facing a negative gap in its GDP, the finance minister of India has decreased it taxes from 30% to 22%.  When the rate of taxes are reduced, real disposable income increases.The increase in real disposable income would mean that buyers have a higher purchasing power , and hence will increase their consumption on goods and services which will in turn increase GDP since consumers' consumption is part of the AE equation when calculating GDP.
Fiscal policy:
The decision of tax cut is made by the government which attempts to attract more investment. It is certainly a positive long-term measure that encourages investment and helps companies to invest. However,  India has poor infrastructure and there is a lack of investment protection. As such, investors may not have the confidence to invest.
The low demand in India is also a big issue as investors will not invest in new production facilities as existing ones are operating below capacity. This will prevent more job opportunities from being created and it will not help with the unemployment rate.
Lastly, such tax cut will surely cost government a huge loss, and adversely affect the government's ability to support growth through spending.

]]> 2020-01-04 05:33:40 UTC https://padlet.com/s10195320/f1bx3kgi5ca/wish/427587261 s10197389 https://padlet.com/s10195320/f1bx3kgi5ca/wish/427587266 GDP / Economic Growth
The adverse weather conditions in India such as long periods of drought as well as heavier rainstorms have caused the farmers in India to have difficulties growing and harvesting crops successfully. Furthermore other factors such as pests infestations make it even harder to get a good haul of crops.Since there is a limited/shortage of supply of crops, suppliers/sellers would raise the price of these crops as they are unable to supply  the amount of goods(crops) that buyers demand. Due to a decrease in locally produced goods, consumption of locally produced crops will decrease due to a potential rise in prices of crops caused by a shortage in supply(law of demand) and thus this leads to a decrease in real GDP.

The shortage of crops supply would also mean that the country has to decrease its export of these crops in order to  have sufficient supply within their own country,additionally the prices for these crops would be higher than usual due to a shortage of it, thus making it less price competitive in the global market, and other countries may not buy from it anymore and buy from other countries instead.Hence expenditure on net exports (exports-imports)would be lower thus resulting in a decline in the real GDP.

Other than affecting crops, the adverse weather conditions also caused frequent floods in Mumbai which damages the socioeconomic environment. The floods weaken the infrastructure such as roads and bridges ,which are important to facilitate economic activity. This will cause the  investment in Mumbai to decline due to a weak infrastructure which will slowdown the economic activity in the region. The decrease in economic activity and the weak infrastructure,  are not ideal for anyone to invest in,hence leading to a  fall in investments, which would lead to a lower GDP since the AE is now lower as firms' investments decrease.  Since Mumbai accounts for slightly more than 6.16% of India's economy, the fall in investment would have a sizable impact on the real GDP of India . Furthermore, the flooding  causes inconvenience , preventing people to get to work, this will affect the real GDP as  the workforce will be underemployed  or left idle, thus production will decline. Since there is now a lower quantity of goods produced, the market value of all final goods and services will decline and as a result, real GDP decreases.
Unemployment:
As said above the flood causes massive damage to infrastructure which affects the workers as well as their workplace e.g factories or offices may be severely damaged to the point where it is unsafe for them to go to work. Furthermore,  investors will be discouraged to further invest in the region as it is prone to natural disasters like floods which will affect their profits.Hence, this would prevent potential investors from investing in India which will decrease job opportunities in India. This would be worsened when current investors pull out their investments from India, this would lead to a spike in the number of unemployed as there is a sudden "retrenchment" period where many people are forced out of their jobs. These factors would in turn increase the unemployment rate of India.]]> 2020-01-04 05:33:44 UTC https://padlet.com/s10195320/f1bx3kgi5ca/wish/427587266 s10194925 https://padlet.com/s10195320/f1bx3kgi5ca/wish/427587298 GDP/Economic Growth:
India's GDP has been slipping since mid 2018 from 8 per cent to 5 per cent in the second quarter of 2019. and has declined further to 4.5 percent in the third quarter. The decrease in economic growth marked an ending of India's fast growing economy with an increasing real GDP growth for 6 consecutive years. The economic growth of a country can be calculated using the expenditure approach where Aggregate Expenditure = Consumers' Consumption + Firms' Investment + Government Spending + Net Exports ( Imports - Exports). This would be a key equation which would be referred back to when determining how different factors would affect the real GDP of India.
Unemployment:
The unemployment rate tells us the percentage of people who are employed out of the whole labor force. It is a key indicator of labor market performance.
Currently India is facing a three year  high unemployment rate of 8.19% in October 2019 , and it is the highest level since August 2016, as seen from Fig 1.1 . The unemployment rate is calculated using the following formula: (number of unemployed / labor force) x 100%. Unemployment can also be  differentiated to 4 different types which include cyclical, structural, frictional seasonal unemployment. Any factors which affect any of the 4 types of unemployment will in turn affect the overall unemployment of a country.
Inflation:
It is the continuous and sustained increase in the general level of prices of goods and services in the economy. India is facing inflation in its supply of food, which prevented the Indian government from further cutting tax rates to help the economy. Currently the overall inflation rate of India is at 3.44%
which is a little over the average worldwide inflation rate of 3.41%. Since India has an inflation rate above the average, it would mean that India has a higher cost of living and this would affect the majority of people living in India as they have fixed income / low salary with no trade union backing.
Fiscal policy:
Fiscal policy is government policy which adjusts its spending levels and tax rates to monitor and influence a nation's economy as well as directing a nation's economy goals.
Keynesian:
Keynesian model is a theory whereby demand drives the economy. Government intervention is required in stimulating the economy. Finance minister of India decreased the tax rates, due to presence of negative GDP gap. ]]> 2020-01-04 05:34:19 UTC https://padlet.com/s10195320/f1bx3kgi5ca/wish/427587298 s10197389 https://padlet.com/s10195320/f1bx3kgi5ca/wish/427587500 GDP/Economic Growth:
As the inflation rates of these consumer products increase over time. Its growth in nominal GDP would be expected to increase as well. Since nominal GDP is calculated as the market value of all final goods and services produced in the economy in current year prices, as the prices of goods increase, the nominal GDP would increase assuming that the quantity of products sold remain constant.

However, based on reports of India nominal GDP growth, it can be concluded that the nominal GDP growth is decreasing. This may be due to the decrease in quantity of products sold which may have been the result of the flooding in Article 2. The flood which damaged crops and goods would lead to a decrease in quantity of products sold.

Inflation:
Some causes of food inflation may be contributed by the flood which was mentioned in Article 2. As the flood continued to damage crops and businesses. Farmers and suppliers would have no choice but to increase the prices of their goods and services in order to maximize their profits and also to cope with demand with a limited  supply, this type of inflation is also known as the cost-push inflation.  Hence, rising prices would lead to the increased inflation rates which India is facing now.

Milk prices increasing by 5% is a clear indication that India may be experiencing increasing inflation rates. 

Since inflation rate is getting higher, the cost of living would  increase as well. But most workers have low paying jobs with fixed income, their purchasing power would decrease, causing standard of living to decrease as well.]]> 2020-01-04 05:39:26 UTC https://padlet.com/s10195320/f1bx3kgi5ca/wish/427587500 s10197389 https://padlet.com/s10195320/f1bx3kgi5ca/wish/427588781 2020-01-04 06:07:33 UTC https://padlet.com/s10195320/f1bx3kgi5ca/wish/427588781 s10197389 https://padlet.com/s10195320/f1bx3kgi5ca/wish/427589417 2020-01-04 06:20:11 UTC https://padlet.com/s10195320/f1bx3kgi5ca/wish/427589417 s10194925 https://padlet.com/s10195320/f1bx3kgi5ca/wish/427592344 2020-01-04 07:35:25 UTC https://padlet.com/s10195320/f1bx3kgi5ca/wish/427592344