The post China’s Debt-trap for Developing Nations first appeared on Corp India News.
]]>Nations in South Asia are crumbling down, causing internal and geopolitical chaos due to unprecedented economic crises. Two of India’s neighbors recently had a major political episode in ten days. One is India’s southern neighbor, Sri Lanka, whose president Gotabaya Rajapaksa had declared a state of emergency throughout the island. While Pakistan, too, saw political drama with the Imran Khan government being ousted and the leader of the opposition Shehbaaz Sharif taking over as the new prime minister.
Although both the nations have ever enjoyed regular political stability, the reason for recent chaos lies somewhere towards the northeast of India’s borders. As experts believe, China is the prime reason behind the collapse of both nations’ economies. And also behind the dysfunctional state in India’s other neighboring countries such as Maldives, Laos, and Nepal.
Most experts say that China’s strategy of giving out loans to these nations is the prime reason these countries face a humanitarian crisis today.
How is China responsible for the economic crisis in South Asia?
As the US’s former president Donald Trump controversially coined the term ‘China’s Debt-Trap Strategy’ during his tenor. He had pointed out China’s strategy of giving out loans to Asia and poor African nations under undisclosed clauses.
Under the leadership of President Xi Jinping, China began its Belt and Road Initiative (BRI) to re-establish the long-forgotten Silk Road-an ancient trade network established during the Han Dynasty about 2000 years ago.
Belt and Road Initiative
China’s Belt and Road Initiative is a strategy for redesigning ancient trade routes connecting Asia (China) with Africa and Europe through land and maritime networks. With this initiative, China aimed to leverage its economic growth through regional integration and become a superpower.
BRI, also known as the One Belt, One Road initiative, creates a passage linking China with Southeast Asia, South Asia, Central Asia, Russia, and Europe via a Maritime Silk Road and land. This also entails policy coordination, infrastructure connectivity, unimpeded trade, and financial integration while also connecting people.
While the initiative may sound pious on paper but to put it straight, the communist country aims at creating colonies by lending a large number of loans to lower-and-middle-income nations for infrastructural development such as constructing ports, roads, railways, airports as well as telecommunication networks.
Hence, China led an initiative to finance infrastructure development in developing countries as a disguised debt trap for lower-and-middle-income countries. The country gives loans at high-interest rates for a shorter period, and when the country defaults, it takes charge of its real estate.
Which countries have been debt-trapped?
Most of the neighboring countries of India have fallen into China’s debt trap and are now facing a severe economic crisis, as citizens live without bare essentials for their survival.
According to AidData, more than 40 economically poor nations have “hidden debt” to Chinese lenders totaling more than 10% of their GDP. Some countries, such as Laos, Zambia, and Kyrgyzstan, have Chinese debts that exceed 20% of their GDP.
Laos
Laos, a landlocked country between China, Vietnam, Cambodia, Thailand, and Myanmar, was among the first few to fall into China’s debt-trap diplomacy.
While the country had been in talks with China to build a rail network, both countries struck a deal of a whopping $6 billion in 2015 under Belt and Road Initiative. Although the railway network was ready by 2021, China owned a 70 percent stake in it.
As the Chinese Government-backed the project, Laos took a loan of $480 million from a Chinese bank. Laos gave its potash mines as a collateral guarantee in return for the loan. Hence, if Laos defaulted, China would take over its money-making potash mines. In fact, in 2020, when a debt-ridden Laos faced bankruptcy, it had to sell a part of its energy grid (worth $600), pleading for debt relief from China.
Hence, it means that China practically owns Laos’s railway network and its profits, if any, and Laos remains bankrupt.
Pakistan
The recent advancement of Pakistan’s internal politics has triggered a state of economic instability and vice versa. As a result, the country has trapped itself in its strategy to buy new debt to pay the old debt. While this time, the country is poorly trapped between dragon claws, as a massive chunk of Pakistan’s debt is from China.
The politically unstable Pakistan runs its revenue comes from external debt. At the same time, the government of Pakistan finalized China-Pakistan Economic Corridor (CPEC), a regional connectivity framework at $46 billion. The Chinese government promised to cater to infrastructure projects in Pakistan in 2013. However, the prime reason behind the country’s tanking economy is CPEC, as now the government owes 25 percent of its debt to China.
While Pakistan is extending its hands for aid and bailout packages from IMF, Imran Khan failed to fulfill IMF’s requirement to be eligible. Hence, the country has to take loans from Saudi Arabia with high interests.
Finally, Imran Khan failed in governance and action to deal with colossal debt and lost the Pakistani leadership before completing his term.
Sri Lanka
Sri Lankan Government signed a Hambantota port deal during the leadership of Mahinda Rajapaksa in 2007. Under the one-billion-dollar deal, the government onboarded Chinese contractors to fund the project and develop a full-fledged port to develop its trade.
As a corrupted Sri-Lankan government drew the country towards debts, the government had to give away its Hambantota port to Chinese firms on a 99-year lease losing rights. Moreover, the government took another loan to buy land and build factories in the port the Chinese government used. Hence, China made Sri Lanka pay for buying property on its soil.
Today, Sri Lankan citizens are on the streets fighting for their rights, asking for the Rajapaksa government to quit even in a state of emergency, while the leaders are reaching out to China (again) and India for financial aid. Such is the power of China’s debt-trap diplomacy.
Nepal
In 2017, Nepal too signed up for China’s BRI in hopes of becoming a middle-income country by 2030. China had promised Nepal to make it a land-linked country from being a land-locked. The Himalayan country risked its relations with its age-old friendly neighbor India for the same. However, five years later, Nepal has called off its deal with China understanding its intentions.
India’s Friendly Approach
While China believes in taming its developing nations through its debt trap, India has a more friendly approach to its neighbors in times of its crisis. For example, while India maintains a safe distance from Pakistan, the Government of India provided a line of credit worth $ 2.5 billion as financial assistance to Sri Lanka.
The Indian Government also sent 11,000 MT of rice ahead of Sinhala on humanitarian grounds. Earlier, India sent 76,000 tonnes of fuel to Sri Lanka following its power crisis. India has never failed to help its neighbors while maintaining solid diplomatic ties.
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]]>The post Five crucial years that changed the history of Indian Economy first appeared on Corp India News.
]]>Cambridge historian and author, Angus Maddison in his research on the British colonial occupation of India between the 17th century and mid 19th century, observed that India’s net worth in the global income index was approximately 23%, which was equal to entire Europe’s share of 23%.
We resonate with former Prime Minister, Man Mohan Singh’s quote on the subject “The brightest jewel in the British Crown is studded in the erasure of Indian economy, as when the noble Kohinoor diamond was allegedly taken by the Imperialists to clear their balance-sheets, India was left with 0.6% literacy and empty banks.
India’s GDP in 1947 hit a staggering low at just 2.7 trillion rupees, accounting for 3% of total global GDP compared to 23% which was maintained before the British Occupation of India. On the brighter side of things, the latest data published by National Statistical Office show that India is struggling, yet not giving up the fight with price hike and inflation.
The GDP growth rate is -3.8% contrary to the rate at which the economy should grow. With all the new notifications in GST law and inflation caused by pandemic, it will be interesting to watch the economy attain a level of Rs. 198.86 trillion, as against Rs 203. 51 trillion which was estimated in 2019-20
The question that still remains is did India manage to become the golden nation its freedom fighters had dreamt of? The answer to these remains locked in historic events. Read on to know what they are!
1969 – the year of revolution
The year is significant for many reasons, among which the one that stands out for is the emergence of green revolution. The green revolution was the former prime minister’s brain-child after observing the devastating impact and aftermath of nation-wide draughts and famines during late 60’s. The bill for self-sufficient production for food grains was proposed by Indira Gandhi, along with remarkable reforms in the banking sector by nationalizing 14 of the biggest banks in the country with over 50cr deposits to attend the needs of development and technology of the sector.
1991- The worst year before the pandemic
At a time when India’s external debt rose from $35 billion in 1984-85 to $69billion by the end of 1990-91, Economic reforms such as privatization, globalization, and liberalization sure appeared as a boon to the downward spiraling Indian economy.
The year 1991 was devastating as the economic situation became so grim that one point the country could not have afforded finance for even 3 weeks worth of import. Indian government had no other choice than putting 20 tonnes of gold from RBI on mortgage to claim a$200 million loan to clear import debts.
Amidst all the chaos, the Chandrashekar government and finance ministry led by Man Mohan Singh took reformative actions on the matter within weeks of assuming power. These reforms have been the pioneers of modern Indian economy for breaking the barriers of tough bureaucracy of business to open the window for foreign financial inflows and foreign manufacturing opportunities between india and rest of the world. According to verified data from Bombay Stock Exchange, the stock market was all on a all-time boom, with Sexsex ending at 1, 048 cr after the first few days of the implications of the new reforms.
A lesser known fact about this year is that it was shared by yet another economic event, which was later to be recorded as one india’s biggest scam, led by Harshad Mehta who broke the liquidity market with a 13% decline in one day. The scam was worth Rs. 4,000 cr.
2007-2008 The Great Recession
The Great Recession had the entire wall-street on its knees, marking the largest bankruptcy in U.S history with the collapse of “Lehmen Brothers”. An economic downfall at this scale was sure to affect the global economy, however, India maintained its GDP growth of 15% and economic growth rate of 6% for the FY 2008-09.
However, a twist in the plot took place when NDA led government announced a well-intended stimulus package that infused Rs 3 Trillion into public spending by lowering tax margins key rates by the Reserve Bank of India. This violation of fiscal consolidation of the norms flared inflation by 14%, leaving the rupee with no value. Moreover, as a result, Sensex dropped 20,000 points in December 2007 before bouncing back with 17,000 points in the same year.
2016; A year of shockers
Arguably one of the questionable moves led by the NDA government was to introduce demonetization to withdraw notes of higher denomination. On November 8th of the same year, Prime Minister of India, Narendra Modi took to public broadcast to declare the shocking removal of 500’s and 1000s’ Rupee notes out of legal tender of currency. This affected business owners across strata and scale of companies, while the move led to a Sensex crash of 1, 689 points, and the Nifty plunged by over 541 points.
Just months after demonetization, the Rajya Sabha (Upper House) passed a crucial bill on Goods and Services Tax (GST). However, at that time, the markets didn’t react much and remained mostly flat on the upper side.
2020: the virus apocalypse
No later than 3 years after the aftermath of demonitaztion and GST law implication, the economy witnessed a lightening jolt with an uninvited guest; the Covid 19 pandemic. It may be too soon to declare the scale of destruction, both in economy and human life, but to bring perspectives together, a report published by Azim Premji University stated that the first wave of the virus brought 23 crore of Indian citizens below poverty line, which is going even lower than national minimum wage threshold of Rs 375 (reported by Anoop Satpathy Committee). Poverty margins have risen by 15% in rural India, while the urban India has been making most of a 20% rise in the pandemic this year.
As we enter yet another year with financial risks and worries, the overall impact of the second wave on the country’s economy still remains unclear. For now, we are grateful for the abundance in Sensex market, reaching an all-time high of 55K points and Nifty securing 16, 529 points leaving us with hopes for better and improved finances ahead, personally and nationally.
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]]>The post Netflix’s Struggles and Revival: A Journey of Adaptation and Innovation first appeared on Corp India News.
]]>Why is Netflix failing in India?
CorpIndiaNews investigates the problems Netflix faced in Indian Market.
Sports on OTT
Sports + OTT = Lucrative Revenue. It is a simple formula that most OTTs have applied to streamline their revenues. Who would deny a greater audience for sports in India? India is a land of cricket and has an audience for football. While other OTT platforms such as Sony Liv and Disney + Hotstar own broadcasting rights for the Champions League and IPL, Netflix is yet to join the bandwagon.
Not only do these over-the-top platforms earn huge profits by securing broadcasting rights of such premier games, but also the long-term loyalty of its users. Hence sports is the perfect hook for attracting more subscribers to the platform.
Missing Regional Touch
Netflix is missing out on the regional touch. The company produces/ streams shows that only Tier I and Tier II cities can relate. The shows are mainly for a specific audience and fail on mass appeal. On the other, popular OTT platforms like Amazon Prime produce shows that are more likely to relate to the Indian audience. Although Netflix has a language films category, the company must adopt hardcore regional marketing campaigns to reach out to people beyond select cities.
Cost
Netflix’s pricing structure, notably higher than its competitors, made it unaffordable for many users in India, particularly in smaller towns. The standard plan cost Rs 5000 annually, while other platforms offered similar content at much lower prices. Digital piracy compounded Netflix’s challenges, with losses from piracy expected to reach $3.08 billion in India by 2022, further eroding potential revenue.
Netflix Identity Crisis
While Netflix initially gained traction with original Indian series like Sacred Games and Delhi Crime, it struggled to maintain its unique identity. The rush to produce global content led to criticisms about its lack of focus on what worked locally. Additionally, Netflix’s inability to adapt its content to the mass appeal of popular genres like Indian soap operas (“saas-bahu” shows) also limited its reach.
Netflix’s Strategic Shift
In the face of these challenges, Netflix re-evaluated its strategy and implemented several measures to regain market share.
1. Regional Partnerships
To counter the dominance of regional platforms, Netflix began forming partnerships with regional players like Hoichoi and Sun NXT. These collaborations allowed Netflix to tap into localized content, appealing to audiences across different linguistic and cultural groups. This strategy aimed at bridging the gap between Netflix’s global content and India’s regional preferences.
2. South Indian Cinema
Recognizing the booming interest in South Indian cinema, Netflix started acquiring popular films and series from the South, such as RRR and KGF, which had garnered massive success at the box office. By aligning itself with regional cinema, Netflix aimed to capture a larger portion of the audience that was passionate about these films.
3. Introduction of Ads and Lower-Cost Subscriptions
In response to increasing competition and price sensitivity in the Indian market, Netflix introduced a lower-cost, ad-supported subscription model. This shift aligns Netflix with other OTT platforms, which have long embraced ads to subsidize lower subscription fees. While this move was previously resisted by the company, it was deemed necessary to expand its reach, particularly among price-conscious users.
4. Cracking Down on Password Sharing
To ensure that its revenue model remains sustainable, Netflix began charging extra fees for accounts sharing passwords. This move targeted the large number of free users who accessed the service through shared accounts, ensuring that only paying subscribers were benefiting from Netflix’s offerings.
The Road Ahead
Netflix’s journey in India has been challenging, but the company’s ability to adapt and evolve gives hope for a comeback. The shift towards regional content, the introduction of affordable pricing plans, and the embrace of advertising are all steps in the right direction. As Netflix continues to recalibrate its strategy, its success will depend on its ability to strike the right balance between global content, regional appeal, and competitive pricing.
While it may not reclaim the “untouchable” position it once held, Netflix is better positioned to thrive in India’s crowded OTT market by understanding local nuances and appealing to the diverse tastes of its audience. The road to recovery will be long, but with the right strategies, Netflix can regain its place as a dominant player in India’s entertainment landscape.
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]]>The post How Is India Restoring Its Traditional Medicine? first appeared on Corp India News.
]]>A report by Global Wellness Institute predicted the growth of wellness tourism by an average annual rate of 7.5 percent by 2022. The surge results from people becoming more conscious while picking synthetic resorts of medicines and treatment and choosing an alternative route to healing emerged in medical science. For example, Ayurveda, also known as the ‘Science of Life,’ has proven its rehabilitating powers time and again. As a result, the world is now shifting towards traditional medicines for holistic well-being, nutrition, and rejuvenation.
The growing popularity of traditional therapies has given rise to India’s wellness tourism. According to Kerala tourism, about 35 percent of the foreign tourists who visit the state are repeat visitors seeking Ayurveda treatments.
The government of India did not want to miss this opportunity to create a new avenue for economic growth and decided to make India a global hub for traditional healing via AYUSH (Ayurveda, Yoga, Naturopathy, Unani, Siddha, and Homeopathy)
The Government of India organized a three-day program, “Global Ayush Investment and Innovation Summit,” inviting global investors to promote India’s wellness tourism.
In 2014, India’s Ayush sector weighed less than $3 Billion, while now, after the government’s continuous push for traditional medicine and wellness tourism, it has an $ 18 Billion market.
In a three-day Global Ayush Investment and Innovation Summit 2022 at Gandhinagar, Vaidya Rajesh Kotecha, the Secretary of Ministry of AYUSH, Government of India, said, “The government budget in the sector has increased over four times from Rs. 691 crores in 2014 to Rs. 3050 crores in the last budget. The market also has grown exponentially from Rs. 22,000 crores in 2014 to Rs. 1.14 Lakh crores,”
While talking about the growth of Kerala Tourism after promoting it as a wellness hub, PM Modi coined the new term ‘Heal in India’. He said that not only Kerala but the entire country has the potential to earn from practicing traditional medicine and promoting ancient wellness therapies.
Speaking about the newly inaugurated WHO- Global Centre for Traditional Medicine at Jamnagar in Gujarat, PM Modi announced that the center is coming up with many initiatives to promote AYUSH.
The government recognized the potential for investment in medical tourism in India and decided to give a legitimate push to it through a plethora of initiatives.
AYUSH MARK
The government has said to launch an AYUSH mark to authenticate traditional medicines manufactured under the AYUSH.
Prime Minister Modi, “India will soon introduce the AYUSH mark, which will give authenticity to quality AYUSH products of the country. The mark will be given to products vetted using the latest technology. This will give confidence to the people of the world that they are purchasing quality AYUSH products.”
AYUSH VISA
Along with the AYUSH mark, the government has also announced the issuance of an AYUSH visa. The Centre would introduce the AYUSH visa category for foreigners who want to undergo AYUSH treatments in India.
“India will soon introduce the AYUSH mark, which will give authenticity to quality AYUSH products of the country. The mark will be given to products vetted using the latest technology. This will give confidence to people of the world that they are purchasing quality AYUSH products,” the PM said.
The government wishes to boost wellness tourism and traditional medicine in India as AYUSH visas help increase India’s GDP.
India’s Wellness Tourism Scenario
India has emerged as a popular spot for medical tourism among people from Asia and Africa. While a few people from the US, the UK, and Australia frequent the country for therapeutic treatments.
According to Medical Tourism Association, India was ranked 10th in the world in the Medical Tourism Index 2020-21.
India has been a hub for top-class medical services with learned specialists at cheaper rates for a decade. As a result, it has been able to attract international tourists to the country’s medical infrastructure. As many as 7 lakh tourists traveled to India for medical treatment in 2019.
While the industry faced a dip in its growth due to pandemic-related restrictions, the government has come up with an innovative plan to revive the industry through AYUSH tourism.
With the concept of pushing traditional medicine to attract wellness tourism, the government is likely to collaborate with renowned institutes, hotels, and wellness centers that provide traditional healing, rehabilitation, and recreational programs.
Here’s how India is restoring its traditional medicine
In 2014, the Modi Government made a few drastic shifts in India’s health policy. Firstly, the government decided to integrate the use of traditional medicine with its mainstream public health delivery systems. For this, the government reframed the Department of Indian System of Medicine and Homeopathy to the Ministry of AYUSH (Ayurveda, Yoga, Naturopathy, Unani, Siddha, and Homeopathy) in November 2014.
The government intended to make alternative medicine an integral part of its service-supply-mix and resource mobilization armamentarium through this newly formed healthcare wing. Hence, it pushed the application of traditional medicine at every level in the country’s healthcare ecosystem.
The government has begun to promote yoga in schools and workspaces while also recruiting AYUSH personnel in urban and rural health centers across the country.
Even during corona lockdowns, the Ministry of Ayush came up with home remedies to maintain immunity. In addition, many state governments distributed concoctions and ayurvedic medicines.
Hence the government is leaving no stone unturned to revive India’s ancient medicine traditions and make India a wellness hub worldwide.
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]]>The post Gujarat – A Leader in Pharmaceutical Sector first appeared on Corp India News.
]]>The pharmaceutical industry is forming abundantly in Gujarat out of the state’s other major industries, such as agriculture, gems, jewelry, textiles, and chemicals.
In the modern-day, Gujarat’s pharmaceutical sector has become increasingly innovative, spreading business horizons across many pharmaceutical segments. These segments include the production of generics, R&D (Research and Development), CRAMS (Contract Research and Manufacturing Organizations), bulk drug productions, and NCE (New Chemical Entities). As a result, Gujarat’s pharmaceutical companies adopt effective and efficient business models and are well-positioned to explore promising future opportunities. However, before we go further, let us have a look at the history of this sector in Gujarat.
A Glance at the History of the Pharmaceutical Sector in Gujarat
Gujarat got its first and country’s second pharmaceutical company, Alembic Pharmaceuticals Ltd, in Vadodara, in 1907. During the 1940s and 50s, “an era of therapeutic revolution,” companies like Sarabhai Chemicals, Cadila laboratories, The Gujarat Pharmaceutical, and Chemical Works were established. LM College of Pharmacy was also established in 1947, which became an essential landmark in the industry’s history. This college has provided many qualified entrepreneurs, drug controllers, and technocrats to the state. The State of Gujarat emerged as an independent state from the Greater Bombay state on 1st May 1960. With the synergistic efforts of central and state Governments, the pharmaceutical industry grew in the state. Gujarat’s companies geared up for globalization in the past decade and saw a quantum leap in production and exports with a strong focus on regulated markets.
Pharmaceutical Industry of Gujarat in Statistics
Pharmaceutical clusters of the state:
- As per the article in Pharmaceutical Technology, there are 124 pharmaceutical-related facilities in Gujarat, the third-highest of Indian states.
- Gujarat’s third-largest city, Vadodara, has many pharma manufacturing facilities, 29 in the western state.
- Gujarat’s largest city and financial capital, Ahmedabad, has 24 facilities.
- Ankleshwar has the third-largest number of 19 facilities in the state and is an industrial township.
- These locations account for 57% of all facilities in the state and are all east of the Gulf of Khambhat.
- Other states such as Bharuch, Rajkot, and Valsad also have extensive facilities.
Other Statistics:
- Vibrant Gujarat’s Pharmaceuticals and Medical Devices report says that “Gujarat is the biggest exporter of pharma products in India and accounts for 19.5% of India’s pharma exports in FY21.”
- Over 4000 manufacturing licenses were issued in the state facilities for allopathic, homeopathic, ayurvedic, and cosmetic drugs.
- 40% of India’s contract research organizations are based in Gujarat.
- Over 4.5 lakh product licenses were issued for the companies of the state.
- 40% of India’s machinery for the pharma sector is based in Gujarat.
- 53% of India’s total registered medical device manufacturers are in Gujarat.
- Gujarat has enjoyed a share between 35% and 46% of the national share in pharmaceutical production over the last two decades leading India in pharmaceuticals.
Top Companies of Gujarat Making it Big in the Sector
During the last decade, pharmaceutical companies of Gujarat like Zydus Cadila, Torrent, Sun Pharma, and Dishman have expanded their global footprint through mergers, acquisitions, and alliances with international companies. They are setting up subsidiaries and marketing offices overseas also. More and more companies are vigorously working towards getting their facilities approved by USFDA and other reputed regulatory agencies to augment their global market presence. Clinical research organizations such as Veeda and Lamba are also emerging with the incorporation of new techniques for patient trials and bioequivalence. Moreover, large manufacturers are entering the capital markets successfully and making most of the stock markets boom to extend resources for their research/production facilities.
Factors that Make Gujarat a Pharmaceutical Hub
- Location and Climate: Poor rainfalls, climate, and geography have long pushed Gujarat over the business, making it hard to scratch a living by farming. Gujarat shares a border with Pakistan and has a long coastline of 1,600 kilometers, making it a natural hub for international trade.
- Development of SEZ: Special economic zones (SEZs) subjected to unique economic regulations are established in Ahmedabad and Vadodara to encourage pharmaceutical investments.
- Policy Supports from Government: The government of Gujarat has allocated US$ 1.6 billion to Health and Family Welfare department in Budget 2021-22. The state government has incurred 50% of fees/costs for obtaining various Quality control approvals. Also, they have revised the timeline for the grant of manufacturing licenses to 60 days. Moreover, they give capital subsidiaries up to 12% of FCI for large units and an exemption of electricity duty for five years. Further, they provide financial assistance up to INR 5 crore for setting up R&D and product development centers by private companies.
- The Vibrant Gujarat Global Summit always encourages and provides opportunities for investors and promotes schemes that incentivize investments in Gujarat.
- Gujarat has a vast talent pool with strong academic institutions that provides an edge to the state at global levels.
- The state is a patent leader, various SMEs, research organizations, and academic institutions have filed nearly 1,000 patents over the last five years.
Conclusion:
Gujarat’s pharmaceutical industry is now keen on sustainable growth, major capacity expansions, and an increasingly important role in the global consolidation process. On the international horizon, pharmaceutical companies involved in contract research/manufacturing and clinical trials to leverage their potential have abundant opportunities. Regardless, this would call for an enormous change in the mindsets and transformation to attract global capital and talent. Companies that would develop the proper framework capitalizing on this opportunity by mitigating the risks would benefit the most. And after that, nothing can stop Gujarat from becoming a global pharmaceutical hub with solid building blocks. For more exciting, enriching articles and news related to the corporate world, stay tuned to our portal, CorpIndiaNews.
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]]>The post New GST Tax laws, boon or bane for the common man? first appeared on Corp India News.
]]>For beginners, let’s begin to understand what GST actually means before diving deeper into understanding the context of impact of the new notifications in tax laws.
What is GST?
GST , short for Goods and Services Tax, is a multi-stage-oriented tax imposed at every point of sale, replacing various multiple taxes such as VAT, service tax, custom fees, to name a few. GST centralizes tax returns under a single domestic indirect taxation law.
The GST model for India was concluded by task force headed by former finance ministry advisor, Vijay L. Kelkar under the vision of former Prime Minister, Shri Atal Bihari Vajpayee in 2000. After several attempts to propose a GST model since then, the four supplementary GST bills were approved by all cabinet ministers and members of the lower house, Lok Sabha, finally in 2017.
Before we proceed further into the articles, lets learn a few terms that will help you understand the GST updates and notifications after the recent amendments in central tax laws. To begin with, take a look at the brief below:
GST notification
GST notification is a regular update over central tax by the GST council of India. The GST revenue is collected by the central government from both, interstate and intrastate transactions.
To get accurate notifications, keep a tab of Cbec
Integrated Tax Rate
ITR also known as IGST (Integrated Tax Rate) is a tax that is levied on all inter-state supply chain of goods and services controlled and regulated by IGST Act. Any import or export made will be regulated under IGST. The Tax rate keeps changing, therefore, we suggest you keep a daily tab on schedules, notification, and due dates related to tax rate.
To get accurate information on IGST tax rate, keep a tab on GST Council of India
Income Tax Slabs
India is one of the only countries where there is a tax for all levels of employment process, be it individual, HUF, LLPs, partnership firms controlled and regulated by Income Tax India.. The tax applies to an array of income also known as Income Tax Slabs. The tax is levied as per the slab system if their income is above the minimum threshold limit (known as basic exemption limit ).
Let’s move forward with much discussed potential impact of the goods and services tax (GST) on inflation, and debatable rise in headline Consumer Price Index (CPI). The tax rates have impacted the consumption basket in various categories, challenging the composition of consumption of the end consumer.
Latest update in Common Man
As much as the new amended tax laws for GST remain indifferent for the business communities, on the flip side, the middle-class and lower-middle class communities may have to prepare themselves for one of the sharpest tax increases in areas of health, clothing and footwear, medicines and electricity, according to a report prepared by the Chief Economic Advisor of RNR. The expected tax increase is estimated between 8.8 % to 13.6% in healthcare products, excluding pharmaceutical drugs. While the forecast for clothing and footwear tax may rise up to 13.8% from 9.5%, currently. On the brighter side, the CPI shall witness a lower tax hike, exclusive of oil and fat making a decline in price rise by 0.6%.
In a survey conducted by Citizen Portal connected to Central Government Consumer Affair Department, nearly 40, 000 applicants displayed their disappointment with price hike in basic household items making the house cost go out of their monthly budget of spending.
New shockers in 28% and18% tax bracket for the common man
The shocking introduction of basic essential and miscellaneous needs such as sunscreen, pan-masala, weighing machine, vacuum cleaner, hair clippers, automobiles, fitness products have got many nodding their head in disdain. When it comes to service sector, any bill above 7,500 in hotels or restaurant, betting on casinos, racing, movie tickets will fall under 28% tax bracket. Prices of electronic device such laptops and mobile phones will now be treated under 12% from previously included in 8% tax bracket. With automobiles such as cars and bikes falling under the 28% bracket, citizens are afraid if they can afford it with contrasting price hike in essential goods and services. A relief revision would be much appreciated, as suggested by applicants on online forums and government portals.
However, on the brighter side, to impact the common man the government has revised five rules in tax laws functional since 1st January 2022. The amendments are said to decrease price of LPG cylinder, fewer charges on ATM cash withdrawals, deposit tax on India Post Payments Banks and transaction services related to ICICI.
However, to be on the safer side is to remain updated with changing tax rates under GST council.
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Dying hope for the poor
Data collected by RNR shows that the poor population has only 1 % stake in total expenditure on healthcare, which will rise up to 5.5% of total household expenditure after the new tax laws are implicated. To compare it with the rest of the population which spends 7.5% of their income on the same, it is expected that both strata of population are likely to be affected with the inclusion of some of the essential products in the 28% category. Read on to know what they are!
The national council of Economic Research in a study suggested that the implementation of new GST will result in drastic decline in the price of cotton textiles, silk and synthetic fibres by introducing them in 6% and 11% tax bracket.
Positive Impact of GST on the Common Man
- GST was certainly a better replacement of indirect taxes such as VAT, CST, service tax, CAD, SAD, excise, to name a few.
- Eliminated the overlapping situation of tax on tax, also known as the cascading effect of taxes.
- Decreased manufacturing cost by reducing the burden of taxes, as a result prices of consumer goods go down.
- Lower manufacturing cost is an invitation for more competitors which means the cost of automobiles and FMCG becomes affordable.
- Affordable product opens the opportunity for a common man to spend less money for the same goods and services that cost them their whole life.
- Increased demand is a key enhancer to supply chain. With GST the production is likely to increase, however this can only happen if the consumers are getting the products at a cheaper rate.
- A unified tax system enables a secure protection to the common man’s wealth against malpractice and fraudulent activities.
- Most importantly, experts expect to see a positive impact of GST on the Indian economy in the long run.
Negative impact of GST on the Common Man
- Minimized compliance burden on tax collector’s end while adding more on the plate of the tax payer with the filing of GST.
- Additional professional cost for filing GST services
- Even with several attempts from the government to ease the tax filing process, to make return filing easier has not been successful
- Small traders, service providers and merchants face challenges with the new complex model of GST
- With the current rate of 15% being charged on services, GST at 28% proposed for services like telecommunication, air-travel, banking and financial services is sure going to dig a big hole down the pocket for many from their monthly expenses.
- The common man is compelled to reset their budget to bear the cost of additional services.
- To prevent the risk of loss, additional cost comes with obligatory dependencies on tax experts and professionals, which mean more business expenses.
- GST is a new model, hence every new change in the law affects the structure and budgets of every individual, businesses and household.
- GST is a consumption-based tax, therefore, revaluating the accounts on which the service tax should be applied needs a revisit.
- If the consumers is not treated equally as the seller, the seller can increase the price of commodities during crisis.
- The rise in inflation can be observed initially, however, it may also come down gradually.
Based on the above discussion, it is safe to say that the new amendments and notifications in GST laws are not forgiving the common man. However, it is not okay to judge a book by its cover. GST as a tax model is fairly new, therefore, challenges are paramount, however, we look forward to the brighter side of the amended laws as we enter into yet another gloomy financial year.
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The post New GST Tax laws, boon or bane for the common man? first appeared on Corp India News.
]]>The post Ten Cryptocurrencies to Watch Out for in 2022 first appeared on Corp India News.
]]>Cryptocurrencies have exploded in popularity, and this market is currently the most lucrative one, and thus, many investors have started trading in this, taking advantage of unpredictable swings in their prices. But, it can be difficult for those who haven’t entered this market yet to decide how to enter it with such high prices. In addition, knowing which cryptocurrency to buy can be challenging as there are thousands of well-established tokens in the crypto markets. To help you out with this, we have come up with a list of top cryptocurrencies to watch out for in 2022 in this article.
1. Bitcoin
Bitcoin is undoubtedly the king of cryptocurrencies ruling the entire market for years. Often regarded as volatile due to many abrupt price drops, Bitcoin is still worth adding for those who can afford it because it consistently rises to higher levels than its previous peaks. Moreover, as per the experts, Bitcoin is a smart bet for long term holding thanks to its global appeal and high liquidity. Bitcoin runs on a blockchain like the other cryptocurrencies, a network of thousands of computers that verifies transactions in real-time without interference from intermediaries.
2. Ethereum (ETH)
Ethereum (ETH) is the second-largest digital token in the world behind Bitcoin, with a market capitalization of about $500 billion. Further, many financial experts believe it has a higher potential than bitcoin because of its widespread use with decentralized apps. In addition, it uses an open-source, public blockchain, enabling the end-user to run a custom code with its innovative contract feature. This platform potentially revolutionizes many industries by offering dApp developers, which is a medium to build their projects and implement smart contracts. Over the past few years, its constant growth has intrigued investors to purchase and trade more.
3. Lucky Block (LBLOCK)
Another top pick for 2022 to keep an eye on is Lucky Block (LBLOCK), which seeks to revolutionize the lottery industry. This platform uses blockchain technology to improve standard lottery systems. Users can purchase lotto tickets using the platform’s native token LBLOCK, and the entire process is digitized and fair. Another fantastic feature of the Lucky Block roadmap is that there will be no jurisdictional restrictions on who can play its lottery games. Using Lucky Block, one can make pay-outs much faster and execute multiple prize draws every day. This revolutionary cryptocurrency currently has a total market capitalization of more than $200 million with its high popularity.
4. Shiba Inu (SHIB)
Shiba Inu (SHIB) is another new cryptocurrency that shot to fame in the past year with some of the enormous gains ever seen in the market. It is also one of the best-performing and most inexpensive crypto assets. Crypto investors keep high hopes for SHIB as the token has already exploded to a multi-billion dollar top-20 digital asset by market capitalization. Moreover, they consider it one of the most promising cryptocurrencies with hype on social media.
5. Stellar (XLM)
Stellar is another worthy choice for those who want to buy cryptocurrency this year. Its native cryptocurrency is the Lumen (XLM), and the network allows fast payments to be sent anywhere with low fees, regardless of the currency worldwide. In addition, it is designed with an open network for storing and moving money, allowing people to create, trade, and send digital money. This year, it is one of the best choices as it significantly alters the traditional banking system.
6. Cardano (ADA)
Cardano is lauded as an environment-friendly and more sustainable cryptocurrency. It aims to avoid the mining process’s energy-intensive parts, and its open-source blockchain network does have excellent prospects. Additionally, its system is designed by experts with a technology called Ouroboros, a peer-reviewed blockchain protocol. Thus it gives a safer option giving it a superiority over other blockchain networks. It also allows owners to stake coins and create their validator nodes.
7. Decentraland (MANA)
The next one up on the list is Decentraland. It has its cryptocurrency token, called MANA. Decentraland offers a 3D virtual world hosted on the blockchain. Users can create their characters, communicate with other players, buy land, and build real estate with the MetaVerse-Esque gaming platform. All game items are structured as NFTs, and one can monetize in-game exploits through the marketplace. Its value has increased in leaps and bounds over the past year. This cryptocurrency is expected to expand with stellar price gains with the expansion of Metaverse in 2022.
8. Binance Bitcoin
Binance coin (BNB), backed by the world’s largest exchange, is amongst the best cryptocurrencies for trading in 2022 with its increasing popularity. Most crypto exchanges accept BNB, and it is the third most valuable cryptocurrency in the world. In addition, BNB lets users of Binance reduce trading commissions through two independent blockchain networks, Binance Chain and the Binance Smart Chain. Because of this, the overall circulating supply is reduced, increasing the value of the token.
9. Dogecoin
Dogecoin (DOGE) was created as a meme or parody of cryptocurrency. Nonetheless, it is still very famous for its constant price jumps. Moreover, many crypto investors are betting on DOGE with Tesla CEO Elon Musk’s constant tweets and TV appearances mentioning Dogecoin in 2021.
10. Solana (SOL)
Last but not least, the final cryptocurrency with great potential is Solana (SOL), approaching as a significant rival to Ethereum. Thanks to its smart contracts technology, it has experienced a tremendous surge in 2022. In addition, SOL has an efficient blockchain and a unique hybrid of proof-of-stake and proof-of-history mechanisms. Thus, it processes transactions quickly and securely.
This article has summarized numerous cryptocurrencies that have exceptional price potential. Yet, cryptocurrencies are highly unregulated and risky, and there may not be any regulatory alternative for any loss from such transactions. Therefore, for investing in such a market, you should conduct thorough research and even take guidance from a professional financial expert for decision making. Nevertheless, after more than a decade of growth and maturation, the cryptocurrency market offers various benefits if strategized well. Hence determine your investment goals for 2022 and see how cryptocurrency could fit into them.
The post Ten Cryptocurrencies to Watch Out for in 2022 first appeared on Corp India News.
]]>The post Meesho – The Quick Rise of an E-commerce Unicorn first appeared on Corp India News.
]]>As the company is coming out as a strong competitor in becoming a pioneer in India’s $ 84 billion e-commerce market, CorpIndiaNews is here to explain why Meesho is in advantage to take on big-time players like Amazon and Flipkart.
Two IIT-Delhi batchmates, Vidit Aatrey and Sanjeev Barnwal founded Meesho on August 13, 2015, in Bengaluru, Karnataka, intending to democratise India’s e-commerce space. With four lakh sellers currently using the platform, the company aims to onboard 10-12 lakh sellers by the end of 2022. In addition, the startup set a rather optimistic target of achieving 100 million monthly transacting users by December 2022.
In 2020, Meesho hardly had 90,000 sellers onboard, which grew four times in one year, while its business grew 40 times since the first lockdown and is only growing to challenge big players in the e-commerce space. Recently, the company recorded around 1.4 crore orders in just three days during its Holi Sale in March.
The Meesho Concept
The social commerce space, which is expanding along with the country’s e-commerce market, was initially not the Plan A of its founders. Initially, in 2015, founders Vidit Aatrey and Sanjeev Barnwal opened a hyperlocal fashion discovery and commerce app, FashNear, but at the end of the year pivoted to Meesho.
Founders Vidit Aatrey and Sanjeev Barnval visited many local retail and wholesale stores. They found out that shopkeepers were using social media applications listing their products like posts and stories on social media. Hence, the duo came up with the idea of creating a direct-to-consumer platform that would connect sellers to customers directly through an application.
The concept was simple, to create an application for local resellers to create their inventory of products online and manage it. At the same time, Meesho would charge a commission on each purchase and fees to keep the shop running.
The duo presented a platform that empowers hyper-local businesses (micro and small) to open their online shops with zero investment. Hence, the name Meesho means ‘My shop.’
At first, the startup targeted homemakers and students selling unbranded clothes on Whatapp, Facebook, and Instagram. As a result, Meesho soon became a platform for homemakers from small towns who ran their reselling businesses online to market and manage their products on the app.
These women resellers began to earn as much as Rs 25000 a month selling unbranded clothes. Hence, the founders were able to establish communities and also create women entrepreneurs. Today, the app provides access to over 77 million products from different categories.
Gunning for the Pole Position
Meesho got selected in the Y category as soon as in 2016. Another milestone for the app was receiving funds from Facebook (now Meta Platform) and finally becoming a Unicorn after getting funded by the Soft Bank group.
While funds and targeted publicity campaigns are helping Meesho challenge its competitors, the e-commerce platform scored another advantage.
Shopee’s (Ind)exit or Shopee’s choice
In October last year, Shopee, after the e-commerce business of Singapore-headquartered internet giant Sea, launched into the Indian market to thrush into the international while expanding its wings in Europe. But, while consumers welcomed Shopee’s entry, e-commerce majors had a clear competitor in the Singapore firm.
But, in the first week of April 2022, it made another major announcement that shocked everyone in the industry. The e-commerce firm declared that it is closing its India operations “in view of global market uncertainties.”
While speculators are rounding up their opinion on Shopee’s exit, industry experts point out Meesho’s direct advantage in this situation. Indeed, eliminating competition from the market is a dream of many.
Meesho, too, openly acknowledged a sigh of relief and bid farewell to Shopee in a quirky tweet. Meesho posted, “Shopee-ing is the simplest, easiest, and fastest with Meesho.” It also invited Shopee’s employees to work at Meesho.
Shopee-ing is the simplest, easiest, and fastest with Meesho.
But, also, we're hiring!
Check out
https://t.co/UoJbiwvfZs
— Meesho Tech (@meeshotech) March 28, 2022
Meesho faced a direct threat from Shopee’s popularity, while its exit has given it some relief. While experts say that Shopee’s exit is a blessing in disguise for the startup, Meesho is already planned to beat its competitors in many ways.
The IPO
The Social commerce marketplace is mulling a public listing in the first half of 2023. However, the company’s top management is yet to choose from either a public listing in India or a SPAC listing in the US.
Sources claim that the company is preparing itself for the big opening and is busy working on a strict timeline to ensure that its governance, financial reporting, and internal processes are in place to meet regulatory requirements by the end of the year.
After a blockbuster IPO year in 2021, stock market investors are excited to cash in on Meesho’s stock market debut. Hence, the company is currently developing its compliance framework to plan its public offering next year.
Boundaryless Workspaces
Meesho has announced a permanent boundaryless workspace model that allows employees to choose between working from the home, office or chosen locations.
The announcements came as a part of the company’s cost-cutting strategy. Meesho has earlier asked its employees to practice restraint while spending the company’s money. Additionally, the company has been downsizing its business due to restructuring and reorganisation moves.
Adding affordable brands
The company that started as a platform for selling unbranded products will be introducing a new segment of branded products under its social e-commerce business.
The company shall offer affordable brands under its beauty and electronics segment. Meesho has been looking to compete and acquire a major segment of India’s e-commerce market through this strategy.
Meesho’s strategy largely comprises achieving two goals; firstly, it wants to attract more male customers through branded electronic products and take on its biggest rivals in the e-commerce industry, such as Flipkart and Amazon.
Hence, the company is also mulling over rebranding its logo to a more gender-neutral design.
Change in seller’s policy
Meesho has effectively changed its 15-days-payment policy to a weekly payment cycle. The company to the step to attract more local, small, and medium vendors to its platform. The new policy is supposedly helping the company achieve its target of onboarding more than 1 million vendors on its application.
Moreover, the company has also reframed its cancellation policy by announcing zero charges on order cancellation. Earlier sellers were charged 2.5% of the order product’s price per day of delay till cancellation.
While explaining Meesho’s new strategy, Lakshminarayan Swaminathan, vice-president and general manager of supply growth at Meesho, said, “With the new ‘Zero Penalty’ and ‘Seven-Day Payment’ initiatives, we are confident we will be able to accelerate further the trajectory of seller acquisitions and success on Meesho.”
Hence, the company is working on reframing and applying different strategies to ride on the current e-commerce wave and expand its businesses to a more significant market share. Hence, Meesho tapped into the grocery shopping segment during the pandemic.
Meesho integrates with Farmiso
In 2020, when the government announced a country-wide lockdown to contain Coronavirus, all the businesses except for essential services came to a halt.
Being a delivery-based startup, Meesho and its vendors on the app lost business every day. As a result, the company’s revenue tanked, and there was a temporary disruption.
However, turning the crisis into an opportunity, Meesho decided to sell groceries in Tier-II cities in India. Meesho’s idea was to make consumers in these cities comfortable purchasing groceries online.
While big e-commerce brands focus on faster deliveries to cater to their large consumer base, Meesho focuses on offering affordable discounted groceries.
Farmiso’s opened its first store in Karnataka, providing 500 products across categories like fresh fruits, fresh vegetables, groceries, home care, and packaged food. However, in less than a year, it has successfully scaled its operations in five other states- Maharashtra, Telengana, Andhra Pradesh, Gujarat, and Madhya Pradesh. While Farmiso is gaining positive traction in all six states, it aims to expand to twelve other states this year.
Meesho announced the integration of its grocery business within the core application to become a single shopping destination in India. Through this merger, the company plans to expand its core business by taking advantage of Farmiso’s first-time customers base.
Founder Vidit Aatrey explained, “Driven by our user-first mindset, the integration will provide millions of Meesho users a unified shopping experience, while giving us an opportunity to drive stronger synergies across areas such as customer acquisition, technology and product and talent.”
Meesho going live
Meesho is exploring the launch of its live commerce business by the end of the year which is in its pilot stage. The live commerce feature enables instant purchasing of a featured product and encourages audience participation through chats and reaction buttons.
Meesho has been actively strategising and reframing its core policies while restructuring its business for a year. Unfortunately, this is sending mixed signals to customers. Some believe Meesho’s strategies would pay off, while others call it a sign of nervousness. In addition, experts believe that too many strategies may bring negative results to the company.
However, Meesho’s founders are pretty optimistic about its reforms and aim to take advantage of the momentum.
The post Meesho – The Quick Rise of an E-commerce Unicorn first appeared on Corp India News.
]]>The post The Great Resignation: Why are Employees Quitting Jobs in India? first appeared on Corp India News.
]]>There is one more change that has completely changed the work dynamics. In March 2020, when the governments announced nationwide lockdowns, the working class was confused about how things would work. Finally, the corporate came up with a solution- Work From Home.
Corporates and Employees took to the ‘Work From Home’ dynamic quite optimistically as a starter. Companies saved time, money, and space, and employees saved commute time and expenses.
Yet, reports of employees quitting their jobs began to float in on the internet and other mediums from the US and created quite an uproar. Media organisations called the phenomenon as ‘The Great Resignation’ of 21st century.
“The Great Resignation is coming.”
In a Bloomberg Businessweek interview, Anthony Klotz, a psychologist and professor of business administration at Texas A&M University, said, “The great Resignation is coming.”
He explained that the Covid-19 pandemic had changed people’s perception of the work culture. He said, “Workers saw that quitting their jobs gave them a chance to take control of their personal and professional lives.”
Professor Klotz’s predictions came true; despite a downward slope in the resignation rates in the pandemic year, the first quarter of the fiscal year 2021-22 saw an unprecedented rise in the rates.
The US Bureau of Labor reported over 40 million employees had quit their jobs until November 2021. The issue only saw an upward trend. It is estimated that over 75.5 million people had quit their jobs in the US in 2021.
People from the leisure and hospitality saw the most quits in the US. The lower-paying industries such as trade, transportation and utilities, professional services, and retail were the most affected ones, while the high-paying jobs faced lesser brunt.
India, too, picked up the Great Resignation
The Government of India had announced a complete lockdown in March 2020. Since then, only the essential services remained fully operative while the rest either remained shut or shifted to the ‘work from home’ regime.
Soon, India, too, felt ‘The Great Resignation’ tremors. As per the Aon report, for the first time in 20 years, the attrition rate reached 21 per cent in 2021 compared to 12.8 per cent in the previous year.
India’s IT sector was the first to face the blow. According to Gartner, the TCS (Tata Consultancy Services) attrition rate picked from 8.6 per cent in the first quarter to 11.9 per cent in the second quarter. At the same time, Infosys saw voluntary attrition of 20.1 per cent in the second quarter of the year 2021-22.
The hospitality sector had already been under loss due to Covid-19 restrictions and had to let go of their employees. However, the attrition rate in India indicates that the top-level employees have been quitting their jobs.
So why are the employees quitting?
Professor Klotz’s observed four independent trends fueling “The Resignation” in America. First, he had said most employees who chose not to quit due to ongoing uncertainty would resign. Moreover, other reasons were widespread burnout among workers, widespread re-evaluation of priorities and values, and some workers’ reluctance to give up remote work.
While in India, according to the Randstad NV’s survey, 63 per cent of participants said they would rather be unemployed than be unhappy in a job. In addition, more than 70 per cent of participants agreed that their personal life is more important than their work life, and 61 per cent of them said they would choose not to work at all if money was no object.
Why is the Great Resignation trending?
Out of everything that the coronavirus taught, the one learning most employees took was that life is feeble. It made us conscious of various pivotal issues, and the need to reset our lives emerged.
We at CorpIndiaNews have collated major reasons behind the trend.
Rising Mental Health Issues
According to the World Health Organisation report,” Cases of depression and anxiety rose to 25 per cent during the first year of the pandemic.” While social isolation was one of the primary reasons for the unprecedented stress among individuals, young people and women were the worst hit.
Additionally, the reports stressed that loneliness, fear of infection, suffering, death for oneself and loved ones, grief after bereavement, and financial worries had been cited as stressors leading to anxiety and depression. Hence, employees overwhelmed due to the ongoing crisis left their jobs to feel relieved.
For example, even though corporates shifted their base to the internet, with increased zoom calls and digital attendance, they adjusted staff’s salaries at great discounts. Hence, pay cuts and increased working hours became laborious and encouraged employees to take time off.
Finally, the health workers who have been incessantly working during the pandemic called it quits due to exhaustion in the health sector.
Work-Life Balance
Pandemic has significantly changed the definition of work-life balance. Moreover, it has played a great role in changing individual priorities. For example, employees who saw the loss of life, money, and freedom during the lockdown lean towards life after work.
Social isolation and leaving away from home (mostly losing the power to swiftly tip-toe) became a significant concern; most resignations came from employees looking for jobs that facilitate convenience over traditional corporate perks.
Hence, career-oriented individuals are now seeking work-life balance, which means spending more time with loved ones and enjoying leisure activities.
Toxic Work Culture
While most employees chose to reset their priorities, many decided to finally address the toxic work culture in their offices through resignations.
Employees now consciously prioritise mental health and self-care over corporate goals making them less tolerable of aggressive targets, poor HR policies, and office politics.
Moreover, the trend shows that employees leave organizations that prioritise business goals over employees’ well-being. Hence, employees are no more interested in working in organisations that design achievable targets at the cost of employees’ mental health.
Additionally, individuals are leaving organisations that have yet to reform their work culture and company policies with the changed time. Hence, corporates that have failed to reframe their policies as per the new normal are facing higher attrition rates.
FOMO Fever
The pandemic has caused a sense of urgency among individuals. A report on ‘India: Retaining talent amid the great resignation’ by SHRM, discussed changing trends after the pandemic. The report says that individuals are no more interested in five-year plans and are rather interested in the near line of sight and living today.
It mentioned how the induced feeling of FOMO (Fear Of Missing Out) is driving individuals to tick mark their bucket lists rather than planning for a stable career. Hence, people are more interested in travelling to their dream destinations, fulfilling social obligations, or enjoying life at large then to face the uncertainty caused by the pandemic.
Better Opportunities and Relocation
The pandemic has opened new avenues in the global job market. Earlier employers could acquire the right talents due to demographic constraints are now able to get the right individual for their job. Today, organisations are open to recruiting individuals from less-known institutions. Hence, digitisation has widened opportunities for individuals who wish secure jobs in their dream organisations.People are now leaving their current jobs for better opportunities.
Moreover, another aspect of the trend is relocation. As the pandemic took away the convenience of travelling, relocating became important for individuals living in cities outside of their hometowns. It was essential to find a home near home. Therefore, more and more individuals quit their jobs to find opportunities in their hometowns or the nearest cities.
Study More and Skill up
The pandemic also presented those who always wanted to pursue higher studies or learn new skills that would make their jobs easier and boost their careers with an opportunity to clear up their heads and work in that direction finally. Additionally, lockdowns and availability of online courses brought an opportunity to brush up on a few skills or look forward to acquiring a whole new skill set for finding better career opportunities.
Wake Up Call
The Covid-19 pandemic also turned out to be a wake-up call, making people realise that jobs or fields that are in trend today may not be the best career options in the future. Many fields, such as Automation, Artificial Intelligence, Metaverse, etc., might not only be the following big things, something worth investing time and money but also, in the literal sense, may as well be the future. Hence, individuals are more inclined toward resetting their careers to the next big thing in the market.
Entrepreneurship
During the pandemic, there were a lot of layoffs in almost every field of work which made people who were completely dependent on their then jobs too anxious and insecure about their futures. Also, the toxic work culture in offices never helps in such situations leading to more resignations.
While it may have been a curse for some people, for the more ambitious lot who always had had a drive for entrepreneurship and innovation, this resignation turned out to be a boon. Individuals found the pandemic the right time to quit their jobs and initiate their long-pending plans to start their start-up careers.
Freelancing Gig
The work from home boosted many individuals in creative fields to start their own gigs. In addition, people who felt the rot of staying in certain work cultures and wished to break free became freelancers. The self-employed individuals choose independence over organisational boundaries and are now working as freelancers for the time being.
How Long will the trend last?
Notably, most of the reasons listed here are driven by psychological and social factors that emerged during the pandemic: some temporary yet thought worthy and some permanent but tolerable. As a result, even though these factors are prevailing, it is estimated that employees will bounce back soon after things get normal.
Experts believe the trend will end soon as things get back to normal and corporates form cohesive policies. Yet, companies will have to think beyond increased paychecks, monetary compensation, or free enrollment in yoga classes. Instead, employers should make strategies to adapt to the new normal and offer employees a flexible environment to work in here.
For example, large organisations have been working on customizing employee compensation. Emphasing on non-monetary rewards and benefits, Anil Santhapuri, head of learning and development at CGI, Bengaluru, had said “ One of the key tenets of modern HR is to take the issues of money off the table.”
Talking about customising employee compensation, he explained that while new recruits may value a physical workplace to share and collaborate ideas with colleagues, young mothers who have to find daycares for their children may prefer remote work. Hence, customisation will play a key role in the new normal.
Hence, workspace configuration is the need of the hour. In addition, after a two-year-long pandemic, corporations are developing strategies to restart their workspaces effectively. Hence, Workspace reconfiguration is a way to consciously address covid-induced issues in the working environment and bring work life back on track.
Additionally, reframing strategies and compensations plans will help organisations have happy employees and teams that will synergise for greater productivity.
The post The Great Resignation: Why are Employees Quitting Jobs in India? first appeared on Corp India News.
]]>The post Top six incredible tech innovations to look out for in 2022-23 first appeared on Corp India News.
]]>We understand that the pandemic will continue to influence our lives in many ways, however don’t miss out on the opportunities to grow your business with the acceleration in digitization and virtualization of business and society under the pandemic.
The demand for sustainability, data-volumes and faster computation and network speed shall reclaim their position as the driving forces behind digital transformation as we enter middle of the year, there’s one question that may cross your mind “How does this affect you on an individual level?” We tell you it does. It entails keeping your possibilities open to learn the abilities to secure work tomorrow and how to reach there.
To make most of your time at home in 2022, here are top 6 picks for trendy tech innovations rising to the occasion across industries, as well as, on a personal level. Read on to know what they are below:
Decision Intelligence (DI)
Life becomes easier when there’s someone to guide. Decision Intelligence is a new business guru in the market, sharing its wisdom to the IT world, despite a not-so-long-history.
Mark Zandari and Dr. Lorien Pratt’s conducted a study to highlight the benefits of DI in 2012, post which the trend started showing up in big giant’s offices. One must not confuse DI and AI, as their purposes and functions differ from one another.
One of the most critical components that powers Decision Intelligence is the collection of data which later, the AI technology uses to assist businesses in decoding the value of their data. Simply put, it makes judgments easier and backed by detailed information.
It is estimated that 1/3rd of large companies will be using DI to improve the decision-making framework that means there will be an increase in data collection jobs, eventually! Watch out!
AI Engineering
You must be aware about AI through a futuristic visual fantasy though images social media, we tell you, it’s more than that! It’s one of the more recently discovered branch of technology dedicated to operating systems, tools and procedures in real-time without manual support of the mortals. Sounds threatening, doesn’t it? Don’t worry; some threats come with sweet surprises! The branch has opened many fields of employment opportunities for tech-lovers to study and explore the field.
However, just like any other field of technology, this field has its own set-backs such as the impact of heavily relying on AI to achieve mission goals on behalf of humans without learning the limitations or deploying a human authority at some point in the process to maintain the code of ethical standard practices.
Tell you a fun fact? All the AIs made so far are female, so it may be safe to say that there will be no wars hopefully!
Quantum computing
Quantum computing is rather note-worthy technology developing gradually over time. It deals with quantum phenomena such as superposition and quantum entanglement. Heavy words, are they? To simplify, superposition is the ability of a quantum system to be in multiple states at the same time until it is measured. Quantum entanglement is one of the uber-bizarre phenomena seen when things get itty-bitty, or inside the quantum realm.
What makes quantum computing rather interesting is its ability to query, monitor, analyze and execute data without depending on a source. The technology has been very useful in stopping the spread of Covid 19 by helping scientists and doctors to develop viable vaccinations.
It’s not just limited to healthcare, industries like Banking and Finances is another industry has been extensively using the hot technology to their benefit to control credit risk, enabling high-frequency trade performance and equip accuracy in fraud identification.
Quantum computers provide a faster efficiency in terms of speed and processing than traditional computers, and to add to your curiosity, there are major breakthroughs coming up in quantum computing as corporate giants like Splunk, Honeywell, Microsoft, AWS, Google working out solutions to give the required boost in the industry!
With all this attention we won’t be surprised if the quantum computing business generates revenues of more than $2.5 billion as estimated by businesses. To crack the entry code into this hot technology, you must begin with learning about information theory, probability, linear algebra, quantum mechanics and machine learning.
Hyper Automation
One of the most essential tools used to future-proof businesses today is Hyper Automation which entails a robotic process enabled by AI and goes far beyond robotic processes to collaborate with other digital technologies such as IoT to optimize business operations and customer satisfaction at all levels. To break it down simply, it’s a manufacturing and supply chain technology to bridge the widening global supply chain inefficiencies. HA allows for real-time adaptability to growing demands or challenges and simplifies operations for high-volume production. With hyper-automation, the future that once seemed bleak is re-imagining a future led by technology-enabled employees!
Privacy-Enhancing Computation (PEC)
This trend falls under the “people centricity” umbrella and includes three technologies aimed at protecting data while it is in the hands of users. It was discovered to serve the purpose of growing demand for data sharing with a sense of privacy and confidentiality. Businesses can now indulge in research and development without compromising with data breach, all thanks to PEC. It ensures safety and security to B2B and consumer partners while dealing, as a result, it is expected that over 60% of large corporations will have used PET approaches.
Cloud-Native Platform (CNPs)
As the pandemic continues to divide the world, more remote and hybrid work arrangements are ready to replace the good-old office-based work. Therefore, to meet the needs of future workplace’s geographical spread character, data infrastructure will need to adapt rapidly to changing times.
The change in data storage necessitates the use of distributed infrastructures and services through the cloud. As a result, a variety of digital operations use CNPs, including the most recent mobile app development trends. It is expected that by the end of the year, CNPs are expected to assist 95% of all digital activities to receive scalable IT services at lower rates to fully utilize the advantages of cloud computing.
The post Top six incredible tech innovations to look out for in 2022-23 first appeared on Corp India News.
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