Is India ready to go cashless?-GD TOPIC 7

Demonetization not only created a huge expectation to scoop out black money and end corruption but also sowed the seed of what may get to be called a new era - the cashless India movement. Amid all the protests and praises, Modi government has definitely paved way for India to accept the plastic way of payment.

It lies in our hands on how we take it. Either we take it positively and welcome digitalization of money in every walk of life and help the needy with teaching them on how to carry the tasks digitally or join hands with the protestors on how it is affecting the poor and cry to bring the changes to an immediate halt.

Yes

1. Using debit/credit/RuPay cards: A few days of cash distress and it was witnessed that many people who hadn’t used their debit/credit ever before made purchases at PoS and other ways. It is clear enough that people will use cards for transactions if they have it. Let’s accept it - using these cards for shopping and other purposes is way easier than cash withdrawal from ATMs.

2. Payment banks: Airtel Payment Bank has made its debut in Rajasthan and is soon expected to be opening up centers in every city/town/village of India. Making payments and receiving them will not just be easier for educated people but also for those who are not very well versed with digitalized processes. It will only be a matter of time when people become adapted to this system of transactions.

3. PayTm: Fruits and vegetables vendors, household help, drivers, watchmen etc. in cities have adapted to getting paid via Paytm. It is simpler and one is immediately informed of the transaction made in their account. Switching over wasn’t difficult after all. With a little help to these people around us, we can make it possible for them to stay in tune with a cashless society.

4. Revealing true income: Going cashless would bring in the much needed transparency. Merchants will have to reveal their true income and pay taxes accordingly. This would eventually be beneficial for the development of our nation. We are short of funds when it comes to catering to the needs of farmers and Indian railways. It is about high time India should take a stand against the hindrances in the way of development.

5. Convenient PoS machines: Earlier the PoS machines were scaring small merchants with their bulky size and cost of payment but now they are not just affordable and smaller but also come with lower monthly charges. They can now run smoothly on low speed internet connections which were also one of the problems earlier. 

No

1. Cyber threats: It was only recently that about 30 lakh debit cards were said to be affected by security hacks and leaked PIN code at ATMs. People were asked to have their PIN changed. Some were also issued new cards. People were panicky everywhere with the mere thought of losing their hard earned money. Even though most of them were able to recover their money back after months, it made cyber threats with digitalized transactions even more evident.

2. Limited Internet Access: Not everyone has a 4G smartphone supporting Reliance’s free JIO net to console their transactions on high speed internet. Once the offer period is over, those who have availed this service will also have to bear the high internet charges to use high speed internet. It is not very difficult to see that vendors and masonry workers will not be able to afford data packs to support cashless transactions.

3. Loopholes for stealing: The non tech-savvy will be vulnerable even if they start using the easy to pay and transfer services being offered by PayTm, Digital wallets, Airtel Money etc. These people will not be very aware of logging out and not saving their passwords here and there. The crook-minded can easily take advantage of their innocence and transfer funds from their smartphones. A larger part of our nation is uneducated. Going cashless is only possible when everyone is comfortable with e-transactions.

4. Lack of infrastructure: Not enough charging points in public places are a big hindrance for a cashless society. Even in railway stations and trains, people face inconvenience of charging phones. What will people do when they are on the go and their phone battery decides to die? Our banks too are not ready to handle bulk e-transactions.

There are definite benefits of going cashless and government is doing all that it can to make cashless transactions easy for the poor and uneducated. However, the inconveniences though less in number than before, are more prevalent. These are some ultimate hindrances and without doing away with them, it will be difficult to go absolutely cashless

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NUCLEAR ENERGY:BOON OR BANE-GD TOPIC 6

For

- It is a great alternative to petroleum and coal.

- Coal mining has killed loads of people and by the introduction of nuclear plants, (which is an alternative for coal) this would cut down the death rate.

- Nuclear energy does not emit greenhouse gases and nuclear fission is a clean and viable source for energy.

- It is relatively cheap to use and it produces less environmental and public health impact than other fossil fuels.

- It a renewable source of energy which can be used in place of non-renewable sources.

Against

- Nuclear power can always be an abuse for foreign powers.

- If terrorist groups take over the nuclear energy it can be used against the other country which could result in a catastrophe.

- Nuclear power if gone in wrong hands could lead to doomsday for mankind.

- Setting up reactors and building them up would cost a fortune for a under developed country.

- It is based on radioactive materials and it produces radioactive wastes which in any terms is harmful for people for any country or state.

- With nuclear power plants, a Chernobyl-type accident is never too far. The outcome would be similar as well.

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The pros and cons of using Bitcoin-GD TOPIC 5

All people must be aware of the Mt. Gox trading exchange. It was one of the largest Bitcoin exchange in the world. It was based in Tokyo. Bitcoin is a form of virtual currency that provides way to anonymous peer-to-peer financial exchanges. From last time, the market participants are concerned about trading in virtual currencies. It all started with the major collapse of Mt. Gox trading exchange in February 2014. So, what do you think? Is it good to trade in Bitcoin or should the market participants avoid it? Let us check out the pros and cons of using Bitcoin:

Pros

• There is no need to disclose the identity while trading in Bitcoin. It is considered as an easiest trading more for merchants and consumers.

• It is the cheapest form of transaction in which there is no need to pay any cost while sending and receiving payments. 

• The use of anonymous Bitcoin addresses changes with every transaction and therefore provides users with financial inclusions.

• With the use of Bitcoin merchants can stay away from the stress linked with consumer chargebacks and PCI compliance. 

• The transaction platform or software can be set up at a simple tablet and doesn’t require any expensive POS system and hardware.

Cons

• After the collapse of Mt. Gox, people are getting to know the risks associated with virtual currencies. There are almost 70 risks associated with the use of virtual currencies.

• Bitcoin and the other virtual currencies act as a convenient way in cases of money laundering.

• The use of virtual currencies encourages financial crimes as anyone can plan a scheme as per its preference.

• The traders or the other participants who possess ample computational power can change the function of currency.

• Bitcoin currency exploitation is clearly visible in the decentralized mining process. It is the process used to manufacture Bitcoin.

Conclusion

Merchants and consumers both are interested in using the virtual currencies especially Bitcoins. They understand the benefits of using Bitcoin, and definitely the advantages exist over real currency. But the only problem is absence of regulatory regime. Due to the problem, The European Bank Authority has advised its banks to avoid the transactions in Bitcoin till the time a proper adequate regulatory regime is set up. Once the strict regulations are set, Bitcoin will emerge as one of the strongest virtual currency in the world.

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Donald Trump’s Mexico Wall - Pros and Cons-GD TOPIC 4

I would build a great wall, and nobody builds walls better than me, believe me, and I build them very inexpensively,” said Donald Trump.

Donald Trump’s election campaign promised a wall that will be impenetrable between US and Mexico and would completely stop illegal immigration into America. It was seen as offensive by some and lauded by others but mostly it was seen as an impossible attempt, a promise that would only be vague.

President Trump recently went ahead to announce that the construction would begin and that any city that tries to shield illegal immigrants would be subjected to punishment. The wall will be built even though it would be difficult but the question here is whether it will be worth it or not.

Yes

1. Illegal immigration would lessen if not stop

Illegal immigration is a big and real problem that US has been facing for long. It gets worse each day as they bring along illegal commodities and evil intentions with them. Drug dealing and human trafficking is a real issue too. Legal immigrants are not a problem but illegal ones are. That is what the wall stands for.

2. Patrolling would be easy

With miles of shared border and some in extremely difficult regions, patrolling becomes difficult. If the wall is built, patrolling would become easier and illegal immigration would lessen since most of the immigrants with trouble packed on their backpacks come via those regions.

3. Staying safe

Yes, it will make people feel safer. Why do you think so many Americans voted for Trump despite his famous derogative comments on women? They did not want a soft President and invite more immigrants to make life harder for them. Staying safe is everyone’s priority and it should be given to them.

4. Economy

US economy is in no way ready to receive immigrants. According to reports, average illegal immigrant household receives $24,721 in government benefit and through welfare, but their annual taxes account to only $10,344. They caused wildfires, increased crime, closed a lot of hospitals, and of course the big drug problem. These are enough reasons to build that wall and stop illegal immigration for once and for all.

No

1. Cost

The cost of building the fence as shown above is far higher that it was estimated and the same is being predicted about the wall. Who is going to pay for it? Not Trump, surely. It is people of America who will face higher taxes to compensate for the wall building. With a massive debt, this would be a highly dangerous expedition.

2. Barriers

The wall will pass through regions that are filled with immigrants. They are sure to pose problem and it will be difficult to criminalize them all. Sonoran desert is a big crisis too with inhospitable terrain. Migrants crossing the desert die all the time.

3. Illegal immigration wouldn’t stop

There are other ways from which illegal immigration will still prevail. The wall in question is not going to be impregnable. The whole thing would only lead to needless debt increase to no advantage. Trump’s idea of wall is vague and too high to be practically true.

4. Environmental hazards

Natural habitants of the region would face the worst of consequences. It will be like dividing the species living there into half. Moreover, the disturbance due to construction in the areas is more likely to send them packing to find a new habitat. Their natural movement during season change would also be hampered.

5. Symbol of discrimination

Illegal immigration is a plague that should be done away with. But a wall would not symbolize prevention but discrimination and racism. It is like declaring war with Mexico. It would jeopardize relationship with the nation as people will feel that they are looked down upon as a nation of drug dealers and traffickers.

A lot of illegal immigration happens over airplane and with visas and later extending their stay. This isn’t going to stop with just a wall. The wall might incur more expenses that it is worthy of in terms of preventing illegal immigration.

However, there are pros of building that wall and President Trump is anyway going to make it happen. US rely on illegal immigrants for cheap labour too. That is something to look forward to

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Promoting tourism in india-GD TOPIC 3

Introduction
India is a fascinating country in many ways. Each part of the country has a different story to tell. As Indians, we can never claim to know all corners of our country well enough. There is always a new place to discover, and enjoy. 

Different types of interest groups

The current state of India tourism is not in very good shape. If our goal is to attract more foreign tourists, we have to essentially work on improving the infrastructure and facilities. Even in a metro city like Bangalore, public toilets are woefully short and ill maintained. Tourist destinations that are a little away from the city are even worse. The roads in several places are not tarred, and are filled with potholes, and uncomfortable bumps. Off-beat destinations should also be ramped up with better roads. 

Traffic management is another major grouse that most citizens have. With all the time wasted in sitting in traffic jams, tourists are forced to cut short their itinerary. These improvements will not only benefit the tourism sector, but the entire country, and the economy on the whole. It will be win-win situation for everyone. 

Another very important aspect that has to be improved is the state of security. It is extremely unsafe for women travelers, especially women who travel alone. While looking at promoting exotic or adventure tourism, it is equally important to better the security system in these locations. 

One thing that the government is doing in small measures now (and should focus more on), is to promote specific areas of tourism. For instance, medical tourism; the government is encouraging tourists to avail of the cheaper medical facilities in India. Likewise, the government should target specific markets, such as spiritual tourism, adventure tourism, history/heritage tourism, cultural tourism (the Natyanjalis, Chennai music season, Khajurao dance festival) wellness tourism (ayurvedic treatments) etc. 

Other forms of promotion include taking groups of artistes abroad, and conducting promotional shows, in order to increase awareness in Indian culture and tourism. Apart from this, the government should also focus on promoting tourism in smaller towns and villages, albeit taking care to retain the ecological balance. The government should also employ more trained multi-lingual guides to escort tourists around places of interest. 

Conclusion

Brand India has a big name among the western countries. We must do our job well in making sure we are able to capitalize on the exotica, and win more tourists.

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Demonetization: Advantages and Disadvantages of Demonetization -GD TOPIC 2

what is demonetization? Demonetization occurs when a particular type of currency is withdrawn from circulation. In such a situation, the demonetized currency ceases to be recognized as a legal tender.

Demonetization means stopping a form of currency from being legal tender. That means that this currency can no longer be legally used. It cannot be used to buy things and if it is paid into the bank, your bank manager should not accept it.

Advantages of demonetization

Demonetization was introduced as a policy because it was thought to have numerous advantages. Below are some of the key advantages that are often associated with demonetization.

1. Getting fake currency out of circulation: Demonetization can also be used to get fake currency out of circulation in a country’s economy since such currencies cannot be deposited in banks and other financial institutions.
2. Controlling inflation: Demonetization is usually cited as having one key advantage: this is that it can control inflation. Taking certain notes out of circulation can help the government to control public spending.
3. Tax Collection: Money deposited in the bank during demonetization can be taxed especially if the affected parties were trying to evade taxation by keeping hard cash.
4. The move to digital currency: Some commentators argue that in the future, we will all be using digital currency, such as bitcoins. If this is true, then one advantage of demonetization is that it will help to propel us into the future.
5. Improved deposits and savings in financial institutions: Parallel economies make it difficult for banks and other financial institutions to raise deposits. Demonetization reduces the size of the parallel economy and boosts savings and deposits.
6. Stopping fraudsters: When a new currency is introduced, this can also be a great opportunity to halt the activities of fraudsters who had been making money illegally by counterfeiting coins and notes.
7. Reducing illegal activities: Money used to fund illegal activities such as terrorism and drug trafficking will be rendered useless. Hence, the government can use demonetization policy to trace money that has been made from illegal activities such as drug trafficking and theft since such individuals are faced with only two options: either deposit the money with the bank or be left with currency that has no value.
8. Growth in a country’s GDP: Due to low lending rates, improved revenue collection, and growth in savings and deposits, a country that has demonetized is likely to see an improvement in the growth of its GDP.
9. Introducing new bank note designs: Demonetization is also a good opportunity to redesign bank notes. This might involve making them more durable, for example. Several countries have switched from paper notes (which tore or got worn very quickly) to more durable plastic notes, which has made their monetary system more secure in several ways.
10. A measure of good governance practices: Some experts claim that demonetization policies improve the ease of doing business and is also a measure of good governance.
11. Good income management habits: People will opt to invest their money in properties such as real estate or deposit cash in banks to safeguard against some negative effects of demonetization.
12. Reduction of lending rates: Availability of cheap deposits in financial institutions means that people can borrow money at low interest rates.

Disadvantages of demonetization

Demonetization is not all beneficial and even proponents of demonetization acknowledge that it does have its disadvantages. A few of them are outlined below.

1. Little cash in circulation: Cash crunch is a major disadvantage of demonetization due to the unavailability of small currency denominations, an issue which makes it difficult to make small purchases.
2. Inconvenience and annoyance to the public: Sometimes, demonetization can be very inconvenient. For example, sometimes the government will remove certain denominations of bank notes from circulation but keep others. It can be annoying when smaller coins are removed from circulation and you do not have enough change. Further, queuing up in banks to deposit money or exchange currency can be inconveniencing.
3. Slowdown in Economic Growth: Economic growth will experience a period of lull due to business disruptions, at least in the short term.
4. Panic: Not everyone understands the essence of demonetization and, therefore, such an exercise is likely to result in panic among a section of the population.
5. An avenue for fraud and corruption: Some people are likely to take advantage of lapses in the financial system to engage in fraud and corruption when exchanging currencies.
6. Disruption of Trade: The normal trading activities may be disrupted by this process since it takes time for consumers and suppliers to adjust to the new monetary policy.
7. Loss of tradition: People can feel attached to their old bank notes and coins as they can feel that they constituted part of their tradition.
8. Problems with paying bills: If someone has sent some bank notes in the post in order to pay a bill, or if there is any substantial delay in processing a bill payment, and demonetization hits in the mean time, the money set aside to pay the bill can become invalid. This is more common that you might think in highly bureaucratic systems.
9. ATMs have to be re-calibrated: ATM machines have to be re-calibrated to accommodate the new currencies. It will result in additional costs for banks and also inconvenience customers.
10. Short term financial crisis for poor people: If people adopt a new currency and this currency is not a successful one, then it can cause a financial crisis for everyone who is involved. Even a small change in the value of everyday items, or even a small amount of confusion about whether a currency is valid can mean a lot of hardship. As such, demonetization can increase and exacerbate inequalities within society, at-least in the short term.
11. Confusing: Demonetization can be confusing and annoying – especially for people who are not able to get rid of their old notes in time.

Conclusion.

Demonetization is a beneficial process even though it has some demerits that may render it unfavorable in various ways. However, before any demonetization program is carried out, it should be carefully though through and its impact on the poor should be considered. In this way, demonetization can be a chance for a fresh new start, or it can be something that causes unnecessary confusion for a country.

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FDI in Retail in India -GD TOPIC 1

FDI in retail industry means that foreign companies in certain categories can sell products through their own retail shop in the country. At present, foreign direct investment (FDI) in pure retailing is not permitted under Indian law. Government of India has allowed FDI in retail of specific brand of products. As India is one of the developing countries, so FDI must be promoted but must be kept under control as it can affect the economy of the country.

FDI in my opinion is bad for the country’s economy. As we are in the category of developing country and to develop properly we need to control the country’s economy very carefully. If the % in FDI in retail sector (multi-brand) is increased then the investment in India’s retail market will be from foreign investors and the profits are also drained to the investors. And moreover in INDIA, the retail sector mainly depends upon the agricultural sectors and the producer and if FDI is increased then it is going to affect the agricultural sector of the Country very badly and which will affect the country’s economy. And if the % of FDI is increased to 100% in retail (both single and multi-brand) sector then government will lose the control over this sector completely and then it cannot help in controlling this sector with its rule and regulations as the whole retail sector would be privatized. And this privatization can make a very serious effect on the country’s economy.

And one of the most disadvantage of FDI in retail sector is that as we know that the retail sector is one of the major employment provider and permitting FDI in this sector can displace the unorganized sector and leading to loss of livelihood the most favoring example is if wall mart entry in retail sector is allowed then it will kill the millions of local shops and jobs. The global retailers would exercise monopolistic power to raise prices and monopolistic power to reduce the prices received by the supplier. Hence both the consumer and supplier would lose while the profit margin in such retail change would go up. So from the above points i can say that  FDI in retail sector is not good for India.

Advantages of FDI in Retail in India

• Growth in Economy
• Job Opportunities
• Benefits to Farmers
• Benefits to consumers
• Lack of Infrastructure
• Cheaper Production facilities
• Availability of new technology
• Long term cash liquidity
• Conducive for the country’s economic growth
• FDI opens up a new avenue for Franchising

Disadvantages of FDI in Retail in India

• Impact on Local Markets ( Kirana Shops)
• Limited Employment Generation
• Fear of Lowering Prices
• Negative Impact on Indian Economy
• Negative Impact on Indian Domestic Market

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