100 days of Trump’s Rule – Impact on US – China Relationship

The pre and post-Trump election scenarios in US in terms of economic relationships and especially with China.Thankfully Trump hasn’t lived up to his rhetoric about trade and particularly about trade with china in his first 100 days. Several threats made during his campaign like imposing protectionist measures against china and defaming china by calling it a currency manipulator have only remained pre-presidential rants. The business ecosystem has been breathing airs of relief as this was a sensible adjustment, because they know the impact such controversial steps could cause. Also with his emphasis on making America’s budget deficit free by 2027 this seemed to be the right direction.

Globalists clearly have dominated nationalists in this first lap of administration. Though no trade measures were taken against China, high-level talk still continues echoing the past tunes of Bush and Obama. The topic of concern, the trade imbalance between the two nations, however, has been addressed this time and both the parties have agreed to come up with a 100-day action plan.

Other than these a substantial step has been taken by Trump and that is a series of studies about source of Trade deficits in terms of products and countries. To some extent, these studies are a delaying tactic. But, one should understand the importance of proper research before taking action especially at the level of International relationship. As the results pour in, strategies become more rigid. The dangerous scenario would be if there is little progress in the economic dialogue with China, a rising trade imbalance between the two, and detailed ideas about import restrictions emerging from the studies. The imbalance will be affected by macroeconomic developments: if there is fiscal stimulus and monetary tightening on the U.S. side, it is very likely that the U.S. trade deficit with the world and with China will expand, irrespective of any marketing opening moves by China. The truce in U.S.-China trade may prove to be only temporary.



Impact of Demonetization on the Indian Economy

8TH November 2016 brought a revelation and caused turmoil in the lives of many. There are two kinds of people working in a sector. One the regulated and the other unregulated. The informal sector finds abode in every industry and forms a major sustaining element. They account for around 50% of GDP and 90% of employment. People working in small eating joints, handicraft, vegetable vendors, daily wage workers etc. form a major part of this sector. They are highly remote to the idea of banks and online transactions. It’s a highly cash driven isolated and an unprotected sector.


There are daily wage earners in the construction and real estate industry, the handicraft weavers in the tourism industry, farmers in the agricultural industry were hit the most. Most of them lost the jobs and immigrated back home. Leading to a 60% rise in the NREGA jobs. With the upheaval in demand coming into the picture the government should increase the provision of 100 days to 170 days. The Non-Banking Financial Institutions, small ticket banks and Microfinance Institutions should be given ease in the procedures for bank account transactions.


The tourism industry vouches on the handicraft weavers, street vendors, and local performers. December and January being prime holiday season has seen a setback due to sudden cash crunch.

The sowing season was due in a month when the news hit the market. Scarcity in cash lead to delay in the procurement of seeds, fertilizers. The yield will fall owing to late sowing and will be to increase the subsidy on seeds and other agricultural equipment. After being hit badly small and medium enterprise have shown significant signs of recovery. SMEs have proven that they don’t need cash at a transactional level. Demonetization could prove to be a boon for SMEs and could possibly trigger the reset they needed. With the yet to be implemented GST simplifying tax laws alongside demonetization will provide a boost to the e-commerce businesses, as more and more customers turn to online platforms for convenience.

Demonetization- For Dark Indian Future

In a nutshell, this move by the government comes with a lot of aspirations and criticism. The question lies whether this bold move is set to see a downfall in the near future or was it about time the Indian economy got an upgrade.


DIGITAL INDIA: Digitally Empowered Society

The campaign of Digital India was started or launched on the basis of empowering the society. Changing the working of ecosystem of public services with the help of technology. When e-Governance was not able to create a strong impact that was when digital India came into the picture. The program was launched by Prime Minister Narendra Modi on ‎1 July 2015. It was brought into action when it was felt necessary that e-Governance needed a push to increase inclusive growth which includes electronic services, products, devices and job opportunities.

“We want to have one mission and target: Take the nation forward- Digitally and Economically.”- PM Narendra Modi.


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