Article on "Highlights of Union Budget 2022" by Nishu Gupta

Highlights of union budget 2022

Nishu Gupta, Roll No. 152

B.Com  Semester - III (2020-23)

“Live as if you were to die tomorrow and Learn as if you were to live forever.”

-Mahatma Gandhi

From an era of ancient rooted budget culture to the era of modernization of 21st century, the urgent need of budget formulation expands for spurring the growth for 9.27% Cr with the aim of achieving $5 trillion economy, the new highlights encroached as a booster for COVID crisis economy prevailing in India. Even the crisis of Wuhan virus didn’t assimilate fuel and spirit of growing technology.

“Where the mind is without fear and the head is held high. Where the knowledge is free and the world has not been broken into fragments by narrow domestic walls. Where the words come out from the depth of the truth. Where the mind is led forward by the ever widening thought and action- into that heaven of freedom, my father, let my country awake.”

- Rabindranath Tagore

On the verge of AmritKal, the 25 year long lead up to India@100, the budget which encompasses the growth opportunities with four keys-

 PM Gati shakti

 Finance sector

 Climate actions and changes

 Energy transitions

Digital assets are welcomed into Indian Economy instead of debarring it, as on last year, they’re taxed @30%. FM Nirmala Sitharaman proposed to provide for any income from the transfer of virtual Digital assets shall be taxed like crypto currencies, NFTS.

Digital rupee is widely seen to be welcomed in India soon starting 2022-23. With the welcoming of central bank digital currency, it would proved to be a holistic booster for cheaper and efficient currency management system. Indian rupee on an Indian block chain will be observed soon.

Mega connectivity push, 20000 Crore More than $2 billion, i.e. PM Gati Shakti plan which encompasses faster transfer of goods via airport railways roads ports traumas transport waterways logistic infrastructure.

On the coming years, India plans to build 400 new trains and 100 cargo terminals. India plans to invest $100 billion in infrastructure, i.e. 35% more than 2021 and double of what India spends on before pandemic.

Make in India is getting a boost in defence, where there is marginal increase in allocation of budget, i.e. 5.25 Lac crore rupees, i.e. more than $ 60 billion, i.e. Increase in 5% of the budget as compared to that of the next year.

E- passports for Indians would be issued soon. With a small silicon chip embedded on the back of the passport which will contain all vital information of the individuals like name, passport number and details of yours last 30 visit.

A large chunk of investments are upgraded with the coming of 5G technology by the next year with the name of being a hub of 5G manufacturer, there is also a vision of bringing connectivity in villages. The government is going to make contracts to lay optical wire cables around the country. Digital education is getting its peak with the establishments of digital university which creates the scope for world class digital education.

Further, the expansions of E-Vidya channels from 12 to 200 to inculcate the knowledge to each and all in every regional languages.

Mental health was a striking topic of budget amid exhaustion of time and health due to Wuhan virus pandemic across the world. The initiative of tele-mental program bridges the gap of exhaustion to a brightening and rejuvenation.

Last but not the least I would like to conclude with “budget today” discussions with the quote below-

“Righteousness is the foundation stone of peace and good governance”

- Confucius

References:-

·        Http://timesofindia.indiatimes.com

·        www.india.gov.in

·        Http://en.m.wikipedia.org

·        Http://pib.gov.in

Article on "UNICORNS STARTUPS" by Arunima Konar

UNICORNS STARTUPS

Arunima Konar, Roll No. 22

B.Com Semester -VI (2019-22)

Unicorns do exist! but maybe not the kind you are thinking off. So, today you are about to get a special look into the land of unicorns! A Unicorn Start-ups.
Definition of unicorn start-ups:-
Unicorn start-ups means a start-up that is privately -owned with a valuation exceeding $1 Billion.
 
The question arises from where this word “UNICORN” came?
 
As, “UNICORNS” particularly means “RARE”. It’s a mythical creature which is resembling a white horse with a single horn on its forehead which is quite hard to find.
              Now, it is very interesting to know WHO and WHEN this “UNICORN” term coined. So, AILEEN LEE, Cowboy Ventures’ founder, coined this term first in 2013 while referring to 39 start-ups having a valuation of over $1 billion. Aileen chooses this term to highlight the statistical rarity of such start-up companies. Although the definition of unicorn start-up has not changed, the number of unicorns in INDIA and the world has increased considerably. High growth start-ups with big valuations have been around for a while, but the name “unicorn” is new. Lee wanted a word that would capture the essence of a group of tech start-ups that carried valuation over $1billion and were founded in the US after 2003. The “UNOCORN” is particularly dedicated to these start-ups only because Lee calculated that 1 in 1538 software and internet companies actually made it to unicorn hood – or 0.7%.
 
Feature of unicorn start-ups: -

1.    Tech-based: - The main feature of growing unicorn start-ups at this high pace for the past few years is, these start-ups are utilising the flood of new technologies and explosion of social media. The core business model of many companies runs on technology. Like, the first unicorn start-up of INDIA, InMobi which is a tech-based company offering mobile advertisement service, now globally, which gets the crown of unicorn start-up in 2011.
2.    Pioneers in their niche: - Many start-ups have achieved the status of a “unicorn” by venturing into a field not known or targeted before. Being the starters in a specific industry has given them an edge against the competition to ensure consistent business growth.
3.    Given forefront priority to the consumer comfort:-  The market has completely shifted from product oriented to consumer oriented. Now every company is focusing on consumer needs. Like, OYO rooms have changed the way how people used to book accommodation while travelling.
4.    Privately owned:- Mainly all of the unicorns are privately owned which get their valuation of $1 billion.

Valuation of Unicorn start-ups:-

Since the publication of Lee’s “Tech Crunch” article it has become widely used to refer to start-ups in technology, mobile technology and information technology sectors.
 The value of unicorn is generally based on how investor and venture capitalists feel they will grow in future, so it all comes down to longer-term forecasting. This means their valuations are nothing to do with the way they perform financially. In fact, many of these companies rarely generate any profit when they first get running.
Generally, valuation of these unicorns usually comes from funding rounds of large venture capital firms investing in these start-up companies.

Current scenario of these unicorn start-ups:-

·      In World -  Three short years after Lee’s article published , the unicorn population has shot-up. While still rare, there are more than 1068 unicorn start-ups around the world currently. In 2021 alone, 519 of these privately held unicorn start-ups were ‘’born’’. With a total of 100 unicorns, India has the third-highest number of start-ups valued at a billion dollars or more. However, it lags behind eternal rival China, and the world’s current unicorn hub, the US, by quite some distance. In fact, the US has more than 8 times the number of unicorns as India.
·      In INDIA – The country is just displaced UK in case of unicorn start-ups. The unicorns are flourishing in the fast- paced and dynamic economy of today. These start-ups are not only developing innovative solutions and technologies but are generating large-scale employment. With 44 Indian start-ups joining the unicorn club in a single year (2021).Not only that Indian start-ups Ecosystem has seen exponential growth in past few years (2015-2021). 9X increase in the number of investors, 7X increase in the funding of start-ups, 7X increase in the number of incubators.
 
GLIMPSES OF INDIA’S TOP 10 UNICORN STARTUPS :-
1.   Flipkart
2.    BYJU’S
3.    NYKAA
4.    BharatPe
5.    Paytm
6.    OLA Cabs
7.    Zomato
8.    Policybazaar
9.    Droom
10.ShareChat
 
Conclusion :-
As of December 2021, the US dominated the market with the largest number of unicorns. China is expected to slow down from current level of unicorn births, but there is a significant growth in India, UK, Germany. Technology is the leading sector with the highest share of potential unicorns, followed by financial services, pharma & healthcare and retailing. It is expected that these non-leading sectors can have 80% of potential unicorns in coming years.
   
 Sources:-
1.    https://www.inc42.com/
2.    https://www.investopedia.com/
3.    https://www.investindia.gov.in
 
 

Article on "Make in India" - By Ritu Barnwal

 MAKE IN INDIA

Ritu Barnwal, Roll No. 40

B.Com Semester VI (2019-22)

“Make in India is”, an initiative by the government of India to make India a manufacturing hub and galvanize the economy with stalwart investment in the manufacturing and service sector. As its name
suggest Make in India is an initiative to make products and services in India and encourage companies both foreign and domestic companies to develop and manufacture products in India. It also focuses on building effective physical infrastructure and improving the digital network in the country to create a global hub for business. It is a golden opportunity for investors who want to set up any business anywhere in the country.

Individual states too launched their initiatives, such as “Make in Odisha”, “ Vibrant Gujarat”, and “Happening Haryana”, and “Magnetic Maharashtra”. After its launch, to give a head start to this initiative, Government of India announces investment commitments up to 16.40 Lakh crore and investment inquiries worth of 1.5 lakh crore from September 2014 to February 2016. As a result, India emerged globally as the favorite destination for Foreign Direct Investment (FDI) in 2015.  In terms of Foreign Direct Investment India even surpasses the United States and China in 2015. At the start of this campaign 25 economic sectors were targeted for job creation and skill enhancement.

Make in India movement was launched by keeping in mind three major objectives. Those three objectives are as follows:
 To enhance the growth of the manufacturing sector of India by 12-14% annually.
 To create 100 million additional manufacturing jobs in the Indian economy by 2022.
 To ensure the contribution of the manufacturing sector in GDP is increased by 25% by 2022
(later revised to 2025).

The contribution in GDP from manufacturing sector in India was 16.3% in year 2014-15 and that of in 2019-20 15.1% that shows the decline of manufacturing sector even after implementation of Make in India campaign. This could be the impact of Covid-19.  As the whole world was shut down due to the pandemic situation. The manufacturing sector was put on hold since the end of 2019.
Indian market is dominated by cheap Chinese products which hamper the sale of commodities produced in India. Make in India campaign if implemented successfully can result in decrease dependence in Chinese products and also promotes manufacturing and job opportunities in the country. It will ultimately result in the increase in growth rate in GDP and create boom in the economy.

Not only in India but at international level China is a major rival to India when it comes to the outsourcing, manufacturing, and services business. The bureaucratic approach of former governments, lack of robust transport networks, and widespread corruption makes it difficult for manufacturers to achieve timely and adequate production. Removing these hurdles and make the nation an ideal destination for investors to set up industries is the aim of Make in India program. Like every coin has two sides these campaigns also have few disadvantages. These are: negligence of agriculture sector, loss of small entrepreneurs, manufacturing based economy, pollution, disruption of land, bad relation with China, increase gap between haves and have-nots, etc. On these aspects governments must apply some corrective measures so that country will grow in a balanced way.

To conclude, India, a country, having the 2nd largest population after china to make it attain full employment by bringing development and growth and reducing poverty this policy is an urgent need. India is a developing country and to increase its growth rate this policy will be helpful. Thus the country’s economy will achieve a new height after the success of this campaign. This, in turn, may solve various social issues in the country.