India's Economy 2017 by Dan https://padlet.com/wanxxting/u7rnnybj26ou en-us 2017-05-16 09:00:25 UTC 2025-12-31 22:26:25 UTC hello@padlet.com Article 1 wanxxting https://padlet.com/wanxxting/u7rnnybj26ou/wish/172034176 India's economy shrugs off cash crisis]]> 2017-05-16 09:15:31 UTC https://padlet.com/wanxxting/u7rnnybj26ou/wish/172034176 Concepts that applicable to our topic wanxxting https://padlet.com/wanxxting/u7rnnybj26ou/wish/172034549 -GDP
-Unemployment rate 
-inflation]]> 2017-05-16 09:17:54 UTC https://padlet.com/wanxxting/u7rnnybj26ou/wish/172034549 Article 2 wanxxting https://padlet.com/wanxxting/u7rnnybj26ou/wish/172034973 2017-05-16 09:20:37 UTC https://padlet.com/wanxxting/u7rnnybj26ou/wish/172034973 Article 3 wanxxting https://padlet.com/wanxxting/u7rnnybj26ou/wish/172719346 Inflation

]]> 2017-05-19 02:56:40 UTC https://padlet.com/wanxxting/u7rnnybj26ou/wish/172719346 GROUP MEMBERS wanxxting https://padlet.com/wanxxting/u7rnnybj26ou/wish/172777884 Brandon
Kai Xin
Wan Ting
Ivan
Vance
Kenneth
Dan]]> 2017-05-19 11:41:17 UTC https://padlet.com/wanxxting/u7rnnybj26ou/wish/172777884 Prelim Analysis (Article 1) I_M_WANG https://padlet.com/wanxxting/u7rnnybj26ou/wish/176500048 Article 1 :
-India is amongst the most cash-intensive economies in the world. Its GDP is largely affected by private consumption demand.

-On 8th November, Indian Government decided to ban the Rs 500 and Rs 1000 currency notes in order to cope with the use of illicit and counterfeit cash to fund illegal activity. These 2 denominations are 86% of all the cash in India. In a cash-intensive economy such as India that also relies greatly on the private sector, the demonetization is believed to negatively effects India’s economic growth. 

-In recent years, the annual growth rate of India's private consumption expenditure has exceptionally increase as compared to the government consumption expenditure. From 2015-2016 and 2016-2017, India's private consumption expenditure held a constant 8.0% growth as compared to the government's 5.5% growth. This affected the total consumption expenditure growth of the country by raising the aggregate figure greatly. 

-This shows that India's private consumption plays a big role in India's economy and its GDP which explains why India is concern with its private consumption demand. An increase in private consumption demand also means an increase in private consumption expenditure as a higher demand means a higher expenditure, elevating India's GDP. Therefore, private consumption demand is also very important to India's GDP. 

-Despite many analysts to predict the country’s economic growth rate to fall drastically, it grew by 7% in the quarter ended December and a positive economic growth rate was seen. This shows that despite the monetary crisis in the country, India was still able to produce as much goods and services as usual. The GDP figure has certainly proved that India is amongst the world’s fastest growing economy. 

-GST was Introduced way back to 2010 in India to simplify the complex and time-consuming system of taxes, duties and fees levied by federal, state and local government. However, GST was delayed as the first deadline for the use of GST was missed on April 1, 2010. 

-This is because there were conflicts between the Congress and Bharatiya Janata Party's proposal for GDP, which resulted in many demands and changes requested. In 2014, the Rajya Sabha party passed the Constitution (122nd Amendment) Bill, 2014, meant for the roll-out of the Goods & Services Tax (GST) in the House. This bill was then further amended and approved, resulting in the 101st Constitutional Amendment Act, 2016, in which GST is expected to be implemented in India starting from July 1st, 2017.

-India is one of the fastest growing economy is mostly due to its consumer demand. Despite the decision to scrape the high-value banknotes, but the impact of this demonetization was not as strong and short-lived as India is a cash-intensive country. Furthermore, Indians are spending intensively on car sales, retail lending and good imports, showing the strong consumer spending in India. With the expected GST to be implemented in July to simplify multiple state taxes, this would spur economic growth as it make India and easier place to do business
]]> 2017-06-15 05:39:52 UTC https://padlet.com/wanxxting/u7rnnybj26ou/wish/176500048 Prelim Analysis (Article 2) I_M_WANG https://padlet.com/wanxxting/u7rnnybj26ou/wish/176500067 -In 2017, many top largest IT companies in India have announced that they would cut down on the number of workers and employees as well as recruitment.

-The layoff was said to be brought about by the increasing use of automation in larger IT firms, resulted in a massive structural unemployment in India for the IT industry, especially the services sector. 

-This increase in unemployment levels and rates in 2017 is driven by deteriorating labour market conditions in emerging countries such as the impacts of several deep recessions in 2016 continue to affect labour markets in 2017. 

-Many businesses such as NASSCOM are carrying out measures to improve the labor force’s skill for them to operate with the new technologies in order to get them back into the workforce. 

-The government also runs a series of infrastructure plan which uses unskilled manual labour to build something useful, some flood control, water harvesting, reforestation, this sort of thing. 

-People who are unemployed can then register with the local such scheme can either gain a place on such a development scheme or the local government must pay them unemployment allowance. Thus either way there is an income assured. 

-However, it does not seem to be an easy task considering that many of the them are not able to be trained as they are too under-skilled. This prompted one of the largest unemployment in India for the middle level to senior level. With so many people having difficulty finding a job, the country’s economic growth will surely be negatively affected.

]]> 2017-06-15 05:40:23 UTC https://padlet.com/wanxxting/u7rnnybj26ou/wish/176500067 Prelim Analysis (Article 3) I_M_WANG https://padlet.com/wanxxting/u7rnnybj26ou/wish/176500089 The falling food prices due to demonetization has caused the lowest inflation in India in the past 5 years. Consumer price index was seen rose by an annual 3.17 percent in January 2017. Food inflation dropped to 0.53 from 1.37 in December. Reserve Bank of India has not made any changes to the interest rates regarding the inflation. The rising global crude price in addition with a volatile exchange rate worried the bank as it might push the headline inflation higher than expected. This inflation is categorized as cost-push inflation. This is likely due to the decrease in oil supply and the increase in oil demand, causing oil prices to rise. A volatile exchange rate can affect the cost of prices too. For example, if the value of the currency increases for the country which is exporting the goods, the country which is importing the goods will have to pay more than usual due to the exporting country's currency having more power, hence the goods have to be sold at a higher price in order to match the price at which the goods are bought for, hence pushing the headline inflation higher. Demonetization reduces the purchasing power as it replaces the old currency for a new currency, hence it reduces inflation as demand be low. CPI is rising overall. Oil prices is the most important factor as it affects the economy of India the most. As crude oil is a major source of energy, many production requires the use of crude oil, hence when its cost increase, the prices of most goods and services will rise as wel, causing inflation.Thus prices of oil is the most impactful factor.]]> 2017-06-15 05:40:52 UTC https://padlet.com/wanxxting/u7rnnybj26ou/wish/176500089 Comments from Wang I_M_WANG https://padlet.com/wanxxting/u7rnnybj26ou/wish/176500102 *do not remove my comments
Namaste Team! 
Further questions for your consideration: 
Article 1 - Why is India so concerned about its private consumption demand? How important is this to GDP of India? Article mentioned delays in implementing Goods and Services Tax. Why? Team mentioned GDP figure proved that India is one of the fastest growing economy, could you find out more reason to support this? 
Article 2 - What type of unemployment specifically? That team has noticed? What is the root of the issue? Article mentioned policies. Team to explore further types of policies created for report. 
Article 3 - Rising global crude oil price caused the inflation. What category of inflation is this? What caused the increase in oil price? How would volatile exchange rate push the headline inflation higher? On the other hand, demonetization pulled overall inflation down. Why so? Overall, is the CPI rising or falling? Which factors mentioned here is more impactful? Analyse. 

]]> 2017-06-15 05:41:11 UTC https://padlet.com/wanxxting/u7rnnybj26ou/wish/176500102 wanxxting https://padlet.com/wanxxting/u7rnnybj26ou/wish/177222105 https://www.quora.com/Why-are-the-Congress-and-other-parties-opposing-the-GST-bill#!n=30

http://money.cnn.com/2016/08/03/news/economy/india-gst-sales-tax/?iid=EL

https://en.wikipedia.org/wiki/One_Hundred_and_First_Amendment_of_the_Constitution_of_India

http://fortune.com/2017/05/30/worlds-fastest-growing-economy-india/]]> 2017-06-22 16:00:55 UTC https://padlet.com/wanxxting/u7rnnybj26ou/wish/177222105