Startups Restoring The Indian Economy?- A Study on Impact of Startups on The Indian Economy
Author : Arihant Jain
Mentor: Neetu Dhayal
“The sun moves in its own orbit but holding earth and other heavenly bodies in a manner that they do not collide with each other through force of attraction.” (Rig Veda 1.35.9)
This proves that Indians started working towards innovation and development long before the world even started to think about it. Also, India possesses a big class of mercantile community known as Bania (Vanik) or Vaishya, who has been doing business for countless generations. Hence, a combination of innovation and business i.e. an entrepreneur is present in the blood of Indians from time immemorial. After independence when the Indian economy was completely ruined and heavily indebted up to the neck (if not up to the nose) by many countries & international banks. At that time, most of the industries & enterprises in India were dominated by the government sector. During that crucial moment, globalization happened and the giant multinational companies entered into Indian economy and transformed the economy completely. History is now repeating itself but, this time, startups might come to rescue the Indian economy.
With favourable demography, the culture of entrepreneurialism and open economic environment, India is highly conducive to entrepreneurial activity. However, India's startup economy has not been able to reach full maturity and most startups die in their infancy.
This paper gives the fundamental points of interest to put the present startup environment which is innovative inside the Indian setting and feature a portion of the related difficulties confronting India today by contrasting policies of various nations and states to discover which of it is most positive and depicts endeavours that is made by the legislature of India towards the upgradation of innovation for developing startup ecosystem.
The Initiative to Boycott Chinese Goods
Author : Kuhikaa Vaishnavee Arora
Mentor: Mr. Mahesh Khicher
India and China have a long history of relations- bilateral, diplomatic and trade. The relations have witnessed conflicts but post-war, China hardly ever brought up boarder disputes with India and thus, relations at present seem peaceful. Government reports show that trade between India and China has been leading to a trade deficit for India (which has been on the decline since 2012-13). China is also a major investor in Pakistan and is trying to implement the One Belt One Road (OBOR) policy with the help of the 'String of Pearls', which is being blocked by India. All of this has potential negative impacts on both countries and thus, in an attempt to hamper Chinese growth, the Indian public has started a movement to boycott Chinese goods. Survey results show that 40.7% consumers bought Chinese goods due to their low price and about 31.4% people gained their knowledge about the boycott from social media. Most people also felt that the boycott will have a huge impact on the Chinese Economy. Sellers, on the other hand, favored Chinese goods due to higher profit margins (as high as 50% for some goods). If the demand for a particular good had reduced after the boycott, they had switched to Indian or Korean articles. This had lead to a fall in Indian imports from China. On the other hand, cases of dumping against China had increased. Keeping all this and the fact that exports to India make-up only about 3% of China's total exports, in mind, we can conclude that in the short run, the boycott will not have much of an impact on the Chinese Economy. However, in the long run, if India is able to domestically produce the goods that it currently imports, the Indian industries could derive economies of scale, which would ultimately lead to development for India and yield long-term benefits.
India and Its New States: An Analysis of Performance of Divided States - Pre and Post Bifurcation
Author : Vartika Agarwal
Mentor: Dr. Sonal Thukral
This paper analyses the reasons behind the creation of new states. It highlights the situations in these states and ensuing achievements followed by doing comparative analysis vis-à-vis respective parent states. Creation of smaller state is not always the answer for achieving effective governance or economic viability. Many aspects have to be considered before dividing the states. The demand for new states have been based on political and economic factors, but every demand cannot be acceded to in order to protect the essence of democracy of the country.
The present paper analyses the performance of separated states pre and post bifurcating. It aims to measure the success of the decisions taken by the government to divide the states. Economic success is essential for any state to progress, but for any state to develop overall its citizens should be satisfied and enjoy a decent standard of living which can be achieved by striving towards social success. The analysis of the impact should be studied because it may affect the policies framed by the government with regard to division of states in future.
Goods and Services Tax: Its adoption and challenges faced (An Empirical Study on GST readiness of Small and Medium Enterprises)
Author : Sitanshu Pugalia
Mentor: Pooja Dhingra
GST also known as the Goods and Services Tax can be defined as a comprehensive tax system that will subsume all indirect taxes levied by the States and Central Governments, and unified economy into a coherent national market. It is expected to iron out wrinkles of existing indirect tax system and play an important role in the growth and development of the country. Small and Medium Enterprises (SMEs) have been the backbone of the Indian economy for decades. For a capital scarce developing country like India, SMEs are considered as relief for several economic burdens like unemployment, poverty, income inequalities and reginal imbalances. The implementation of Goods and Services Tax (GST) has changed the format and provisions regarding filing of return due to which the businesses had to undergo significant changes and update their knowledge. It is important for the businesses to be ready for accepting such a change in order to avoid confusion. This research focuses on the impact of this new tax regime on Small and Medium Enterprises of the country. The research findings pinpoint towards the challenges faced by SMEs towards the adoption of GST and outlook of the businesses towards it. The readiness on GST is still at nascent stage in India. The study found that there is difference in the perception of the Business Sectors about the perceived improvements required in current GST. It was also found that there is no difference in their perception with regard to its Benefits and Challenges faced in its adoption.
Accentuating Corporate Compliances: A Trade-off Between Pellucidity and Ease of Doing Business
Author : Arpit Chawla and Niti Banka
Mentor: Saumya Aggarwal
Despite the Indian economy unveiling a package of measures to foster the economic growth, India still lags behind 129 countries in the “ease of doing business rankings”, including all other BRICS nations.
The number of compliances to start a business in this country are so hefty that it costs the economy in its ease of doing business index. The irony in the current scenario is that the government woes other nations for FDIs but doesn't provide enough incentives to lure them. These are usually bundled up with lots of formalities like dealing with construction permits, taxation, registering property, international trade, enforcing contracts, resolving insolvencies etc.
This paper considers countries excelling in various parameters as benchmark and deals with the key area of improvement which can help India stand in a better position in terms of doing business.
Are Central Banks creating the next Financial Crisis?
Author : Simranjeet Singh
Mentor: Renu Bansal
This paper aims at identifying the Internal and External problems Central Banks are creating and analysing the consequences of their action. Since the 2008 Financial crisis hit the world economy, central banks of both developed and developing countries are fighting to revive growth, push demand for credit as well as consumption. In the hindsight, the tools which they have used have either backfired or not delivered the requisite results. In this paper we shall discuss about the problems and consequences of the actions which Central Banks have taken both in developed and developing countries. For developed economies, we have chosen US, Japan and Euro zone which were the worst hit by the 2008 crisis. The measures which they adopted were Ultra-low interest rates (some had negative interest rates), Quantitative Easing and Extensive Bond Buying to revive demand. The situation in developing economies is no different although, the problem is more serious and chronicle. Countries like India, Italy and Europe and Central Asia (Excluding High Income Countries) has one of the highest NPA in the world, as high as 10% of total gross loans. The paper identifies the internal and external problems central banks are creating and analysis the consequences of their actions.
How Secure is our Data?- An Analysis of Data Privacy and Data Security in this Digital Era
Author : Divya Tibrewal
Mentor: Vikas Madan
This paper aims at analysing the issues pertaining to data ownership, security, privacy and protection in the light of ever increasing collection and usage of individual's personal data by banks, e-commerce companies and other government and private corporate institutions. It seeks to examine the question “To what extent does one have rights on his personal data?” Furthermore, it scans the probable impacts of the landmark decision declaring Privacy a fundamental right on the activities like data mining and big data analysis at the national level. In the era of rapid digitalisation and big data, this verdict certainly calls for new, relevant and impactful laws in this sphere.
Healthcare and The Indian Economy
Author : Rishabh Bafna and Nipun Bansal
Mentor: Suman Bhakri
HEALTH IS WEALTH- There are many pillars of a growing economy- Education, Employment, Infrastructure and Healthcare. This research paper revisits the Healthcare system in India and directly draws the link between growing economy and the ever-growing healthcare system in India. We look forward to cover varying aspects of healthcare system of our country and also look at opportunities at our disposal including aspects relating to medical tourism, increased employment opportunities in this sector, a look at the new health policy of the government, how an economy of a country and health of its people is related and the new health policy.
Author : Prashasti Rohatgi and Shreya Gupta
Mentor: Ranjeet Agarwal
This paper aims to study Inflation Targeting in the Indian as well as the International context. We seek to learn about its implementation in both these contexts. There are a few inferences one can draw from India's experience but it is too early to draw well-defined conclusions. It also aims to study financial stability concerns alongside the Inflation Targeting framework. We discuss certain issues related to the IT approach such as exchange rate volatility along with it's potential for increased transparency and reduced inflation volatility. We also take a look at the financial stability concerns. Finally, we draw some conclusions based on the work done in this area in the past, certain economic models related to this approach, along with statistics and trends.
Agricultural Loan Relinquishment: An Economic Distress?
Author : Chirayu Vijaywargiya and Yash Kumar Singhal
Mentor: Gaurav Sharma
This research paper critically analyses the recent upheaval in the agriculture sector and its catastrophic impact on our Indian economy which has been mainly fuelled by the loan waiving schemes initiated by the State Governments of the likes of Uttar Pradesh, Maharashtra, Punjab and Karnataka. The backdrop of these schemes dates to the period when riots broke out in the states of Madhya Pradesh and Maharashtra. The dataset presented in the main research paper provides a base for understanding the bizarre situation by developing a relationship between different variables since the inception of such schemes in the economy. Although these schemes seem to benefit the farmers, it creates a logjam in the economy and ultimately ends up distressing their lives. In the end, we also try to provide some plausible solutions for correcting the present situation.