Group Discussion

Demonetization - Noteban

Demonetization: Effects on Economic Pillars

A year back, an unexpected appeal by PM Narendra Modi shook the Nation. It was an appeal to join him in the fight against corruption and black money. This could be the riskiest political move by the Modi Sarkar, however, they took a stance and start the implementation of demonetization. It has been a year after this bold move, so, let’s examine the results of the move.

Also Read: Ecommerce a Boon or Bane

The move has had a great impact on the economy and has resulted in the following:

  1. Black money unearthed
  2. A cleansed financial system
  3. Drop in real estate prices
  4. Decline in lending rates of the bank
  5. Detection of fake currency notes
  6. Increase tax compliance

1. Black Money Unearthed:

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With more than 98% of the cash returning to the banks; it was not difficult the track the black economy. Some think that the demonetization has failed but the entire exercise has made it possible for the Government to uncover the black money hoarders.

Some Crucial Outcome of this:

  • More than 17 lakhs cases identified where cash transaction didn’t match tax profile
  • More than 3 lakh crore in 23+ lakh bank accounts are under investigation
  • 0.011%  of the country’s population deposited 33% of total cash. These accounts are now under audit.

2. A cleansed Financial System:

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There was crack down on 2 lakh bogus companies, which were created for the sole purpose of tax evasion. These companies had 100+ bank accounts each in their name. One of them had 2000+ bank accounts. Further, based on the data received from banks, it was revealed that about 58,000 bank accounts of 35,000 companies deposited and withdrew Rs. 17,000 Crore post-demonetisation. The above examples bring forth the modus operandi of some of the shell companies caught during the investigation. The wide-scale purging of shell companies is a proof that demonetisation was an earnest step taken in the right direction to cleanse India’s financial system of its deep-rooted menace.

The numbers show that the implications of demonetisation were huge, considering that it pushed the colossal financial system towards transparency, in one big sweep.

3. Drop in the Real Estate Prices:

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According to the Economic Survey, the weighted average price of real estate fell post demonetization. The report said:

“An equilibrium reduction in real estate prices is desirable as it will lead to affordable housing for the middle class, and facilitate labour mobility across India currently impeded by high and unaffordable rents.”

The real estate was well known for parking a lot of black money and dealing in cash transactions; which was reduced post demonetization.

4.  A decline in the lending rates of the bank: 

The MCLR i.e. Marginal Cost of Lending Rate declined from 9.3% in Oct 2016 to 8.5% in June 17. Various loans such as Education, Home etc also got cheaper.

Bank-Lending-Rates-Declined

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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5.  Detection of Fake Currency Notes: 

Fake currencies have a grave effect on the economy as they have an artificial increase in the Money Supply, which causes inflationary pressure.

The counterfeit data given in RBI’s annual report shows detection of 762 thousand fake currency notes, an increase of 20% since last financial year. Among these, a majority of the counterfeit notes have been of Rs 500 (MG series) and Rs 1000, 41% and 33 % respectively.

There has been no case of detection of high-quality fake currency notes post demonetisation.

6.  Increase in Tax Compliance: 

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Demonetisation has led to a significant widening of the tax base with a record increase of 26.6 percent in a number of new tax prayers from 66.53 lakh in 2015-16 to 84.21 lakh in 2016-17. In addition, the number of e-returns filed increased by 27.95% from 2.35 in 2016-17 crore to 3.01 crore in 2017-18.

Conclusion:

There are many more benefits of demonetization, on average, revenues of urban local bodies across the country increased almost 3 times. revenues of ULBs in Madhya Pradesh and Gujarat increased almost 5 times.

 

 

 

 

 

 

 

 

e-commerce

E-commerce Boon Or Bane.

E-commerce is the market where people can buy and sell goods on a digital platform. This enables the manufacturers to reach out to a huge customer base. It has several types such as B2C, B2B, C2B, C2C markets and e-commerce portals.

Now the main question is, whether E-commerce has benefited the market or not?

E-commerce has been a changing point for many young entrepreneurs. It has been a beneficial factor for all those who have wanted to create a mark in the business world. But it has also effected the other offline businessmen, big and small.

Following are the several points that will help us understand whether e-commerce is really a boon or bane to the current business world.

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economic

Big Economic Firms- The one’s you must know about

Economic firms also known as economic and financial consultancy firms. Those which help and guide companies in investing in the right way. Following are the economic firms:

  1. Berkshire Hathaway:

A Corporation that deals with several activities and gains revenue of whooping US $223.60 billion. The headquarter is located at Kiewit Plaza, Omaha, Nebraska, United States.

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NITI AAYOG

Introduction and Objective:

The National Institution for Transforming India (NITI Aayog), came in action through a resolution of the Union Cabinet on January 1, 2015. NITI Aayog is providing both directional and policy inputs. They design long term policy and programs and provide technical advice to the Centre and States.

The main objective of this program is to help people in need and bring the States of this country together in national interest which gives rise to Cooperative Federalism.

NITI Aayog has two hubs: – Team India Hub and the Knowledge and Innovation Hub. These both help in handling the two key tasks. One is handling the Central and States. Second is handling NITI’s think-tank capabilities.

 

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Molestation and Indian Mentality.

Women in India have been experiencing various forms of the dreadful acts i.e. molestation, rape, eve-teasing. These acts have turned out to increase in numbers in the coming days. Women have started questioning the government about their safety and the laws regarding the same. Indian mentality has still been the same in terms of topics related to men and women equality, molestation, and all things related to women empowerment and punishing the criminal.

There are debates rising about the way women dress up and on the clothes, they wear. It always comes down to Why was she there? What was she doing at that hour of the night? Why was she was wearing those clothes? Blah blah…. Molestation has been happening at a higher rate at places like Delhi, Bangalore, Andhra Pradesh, Maharashtra, Uttar Pradesh. There have been cases where children have faced physical, sexual, mental and emotional abuse.

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Welingkar GDPI experiences 2017

Following are the GDPI Experiences of the students at Welingkar, Bengaluru which happened on 29th and 30th of April, 2017.

Student 1

In the GD Room

GD topic: Indian firms are investing in the US, is it right or wrong?

First it started with the registration part with our score cards and admit cards. After that we were given a presentation on Welingkar College by its students. Then we began with the Group Exercise which includes Group Discussion and written test. The topic was given and some facts were also given regarding it.

We were given 5 minutes to think, 15 minutes to discuss and 10 minutes to write the conclusion.

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Donald Trump- Bright Future Of America

Donald Trump the 45th President of the United States of America was born on June 14, 1946 in Queens New York. He was a successful billionaire and a huge television personality before entering the politics. He is the supporter of the Republican Party. He was standing against Hillary Clinton for the final round of elections.

He has brought many new rules and regulations which have created a massive impact all over the world. He won the elections on November 8, 2016. Donald Trump is the first who has won without any military or government service. He is the oldest and wealthiest President.

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brexit

BREXIT- An Event That Created A Stir In The Global Economy

Brexit is a term used to describe the exit of Britain from the European Union. The European Union – often known as the EU – is an economic and political partnership involving 28 European countries. To decide whether they should be in the European union or not a referendum that is there were votes taken from all who were eligible to vote. This process took place on Thursday 23rd June 2016.

The result was in favor of leaving the European Union. The leave won by 51.9% to 48.1%. There were more than 30 million people voting and the turnout was 71.8%.

After the referendum was lost, Prime Minister David Cameron announced his resignation as the Prime Minister of UK. He was in favor of staying in the EU and he preferred best that the captain for this ship be different.

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Scheme

Gold Monetisation Scheme- to help receive better returns

What is Gold Monetisation?

Gold Monetisation Scheme is the scheme where a citizen can deposit their gold in return for interest or dividend.

Why is this scheme brought into action?

Normally, people keep their gold in the bank locker which turns out to be beneficial when they sell that gold to the present higher prices but along with that they also incur bank locker charges i.e. carrying cost, it is charged for the time the gold is kept in the banks locker. This scheme helps citizens to avoid such charges and earn interest on the gold deposited.

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