Digitisation related

Digitisation has proved decisive in solving major problems. It has to be taken that way and
not just a medium of showing oneself cool, or trendy. Bajaj Allianz General Insurance drove
on the back of the COVID-19 crises and fast tracked digitisation for solving a number of
stakeholder issues.

The Insurance industry, especially the general Insurance industry has been losing money as
a whole

There was no need to send the company surveyor for evaluating the loss. The customer can
click the pictures of the damaged car and send the pictures to the company. The claims will
be accordingly paid in approximately twenty minutes.

Bajaj Allianz partnered with a leading ecommerce player and insured the phones bought
from their platform. The claims of those phones were settled within 2 hours, after remote
assessment

Whatsapp was used extensively for exchanging documentation.

Pre-Covid, these features had low adoption, but post the pandemic, the adoption has took
off tremendously. Digitisation led to a reduction of customer grievance ratio by a whopping
90 percent for Bajaj Allianz and it has come as a huge satisfaction for me

Digital tools have also ensured enhanced customer experience in terms of claims.

BENEFITS

How Indian banks can reap the benefits of emerging technologies

The benefits of emerging technologies are sundry, the challenge is to implement it efficiently
in the way an organisation works. Building infrastructure is the first step for digital
transformation. The infrastructure needs to be customised for the requirements of banks
and aligned with the regulatory compliances. In fact, all banks have already equipped
themselves with the necessary infrastructure and this is a major step towards progress.

To set up and run the infrastructure successfully, banks need skilled talent with expertise in
the emerging technologies. As we know, scarcity of talent is a major challenge. These newly
emerged technologies are most demanded domains. Therefore, banks can either reskill or
upskill their existing employees as part of the reorientation of duties, or hire fresh talent in
these fields before deploying them in their role.

It is well known that those employees who have undergone future-ready training perform far
better in the field compared to other staff. Since the new-age technologies have great
impact, the banks need to deliberately invest in upskilling of employees. Some institutions in
India have been delivering end-to-end hands-on training for various banks to ensure their
employees are skilled to address the challenges of the new digital economy. The onus lies
on individual banks and their desired outcome from the deployment of emerging
technologies with their ecosystem.

Atmanirbhar Bharat – A Mission to make India Self Reliant

 A country is said to be Atmanirbhar (Self-Reliant), if its produces sufficient amount of goods and
services for its domestic needs along with surplus for export to earn foreign exchange, so that it can
import the goods that it is unable to produce or can produce at much higher cost which may incur
losses to it.
 
The countries with the availability of global trade facilities and faster means of transport, look at those
countries wherefrom they can import quality product at a lesser cost and save precious foreign
exchange, instead of setting up a costly manufacturing hub for their domestic needs. So, in this era of
economic globalization with more interdependence among the countries and the facilities of digital
marketing and communication available, it is difficult to think that any country can survive in
isolation. 
1. By becoming Atmanirbhar, India plans to revive its such small industries which used to
contribute in high economic growth but are not functioning now as some of the countries like China
have dumped their inferior products at low price in Indian market – a strategy which has made
thousands of small scale and cottage industries go out of track. The income from agriculture, which is
the back bone of India, also needs to be boosted, to keep India retain its rural India fibre and keep its
economic growth wheels rolling at a faster pace.
2. India has suffered a lot in this corona virus health hazard initially as it was taken aback due to
the sudden spread of China originated virus. There was shortage of masks, gloves, sanitizers, PPE kits
for the medical professionals who are the warriors to cure the infected people. No country could come
to help in this global pandemic as all of them were suffering from similar problem. India, then stood
up firmly on its feet and proved its mettle by providing medicines to USA and other countries which
were suffering from the Covid-19 pandemic.
3. India is facing the COVID-19 situation with a spirit of self-reliance. India has re-purposed
various automobile sector industries to collaborate in the making of life-saving ventilators. From zero
production of Personal Protection Equipment (PPE) before March 2020, India today has created a
capacity of producing 2 lakh PPE kits daily, which is also growing steadily
4. During the Covid-19 pandemic, India has demonstrated how it has risen up to challenges and
unfolded the opportunities therein while playing the key role in the global fight against the China born
virus. India’s leadership role has been recognized and appreciated widely across the Globe.
5. The inspiring call given by the Prime Minister of India, Mr Narendra Modi to use these trying
times to become AtmaNirbhar (self-reliant), offering Rs.20 lakh crore stimulus to revive Indian
Economy, has been very well received to enable the resurgence of the Indian economy. India has
started Unlock process with guidelines to resume the economic activities while maintaining
preventive measures to allow graded easing of restrictions. Atmanirbhar Bharat has many facets to
march on the path of not only economic development but also in infrastructure, defense and
technological growth.
How India Achieves Self-Reliance in Any Situation? Examples
 An example of India marching on the path of self-reliance in any given situation is the PPE
industry growth in two months. The PPE industry in India has become a ₹7,000 crore (US$980
million) in just two months from March to May 2020, the second largest after China.
 The largest fund in the country worth ₹21,000 crore (US$2.9 billion) was setup by the IIT
Alumni Council with the aim of supporting  the Atmanirbhar Bharat mission.
The Atmanirbhar Bharat Mission? Pillars and Goals
Atmanirbhar Bharat (self-reliant India) is the vision of the Prime Minister of India Shri Narendra
Modi who has a big plan to make India a self-reliant nation.
 Beginning with the well chalked out strategy, he started  with the  ‘Atmanirbhar  Bharat
Abhiyan' or 'Self-Reliant India Mission' during the announcement of the coronavirus pandemic related
economic package on 12 May 2020
 Many government decisions have taken place such as changing the definition of MSMEs,
boosting scope for private participation in numerous sectors, increasing FDI in the defence sector as
part of the Atmanirbhar Bharat package
 Many sectors such as the solar manufacturers sector;  growth of India's personal protective
equipment (PPE) sector from zero to 2 lakh pieces a day are the fine examples of Atmanirbhar Bharat
(Self-Reliant India)
 5 Pillars of Atmanirbhar Bharat
India has 5 Pillars to Focus Upon to achieve the Atmanirbhar Bharat mission and plans to focus on
each of them:
1. Growth of Economy
2. Infrastructure Development
3. System
4. Vibrant Demography
5. Demand Increase
Plan to achieve the goal of Atmanirbhar Bharat? 5 Phase Strategy
India proposes to build a self reliant India in the five phases as below
 Phase-I: Growth of Businesses including MSMEs
 Phase-II: Well Being of Poor, including migrants and farmers
 Phase-III: Agriculture Growth
 Phase-IV: New Horizons of Growth
 Phase-V: Government Reforms and Enablers
Rs. 20 Lakh Crore Package Released to Revive & Make India Self Reliant
Moving with the plan to revive Indian Economy and make India Self-Reliant, the Prime Minister of
India announced mega fiscal package of Rs. 20 lakh crore – equivalent to 10% of India’s GDP. The
amount is meant to help MSME, Agriculture, Poor and was scheduled to be disbursed in five
tranches.  India so far has had the harshest lockdown in the world accompanied by the most measly
fiscal support to vulnerable sections of the economy. The magnitude of the package reflects a desire to
compensate for the plight of migrant workers and their families; MSME, Agriculture and other key
sectors which are the pillars of Atmanirbhar Bharat mission. The United States have put together a
rescue package of about 13% of GDP.
 
Stimulus package in 5 Tranches for Atmanirbhar Bharat
The states were allowed  to increase their borrowing limit unconditionally by 0.5% of their Gross
State Domestic Product (GSDP) or Rs 1.07 lakh crore. The complete package of Rs.20 lakh crore was
supposed to be disbursed in five tranches and the fifth and final tranche of Rs. 40,000 crore has
already been disbursed. 
 
Tranche-wise Distribution
The bifurcation of disbursal of the package in five parts is as under:
 

Gig Economy: Statistics, Why is it growing, Pros & Cons, Impact of Covid 19
Gig Economy, also referred to as “crowdsourcing”, the “sharing economy” and the “collaborative
economy”, is where the individuals can market their skill sets (in both unskilled labour market and as
skilled professionals) and sell their services online on different platforms or companies. In this GD
Topic by MBAUniverse.com read all about Gig Economy Statistics, understand reasons for its
massive rise, Pros and Cons, and Impact of Covid 19.
 
With the downsizing trends of talented professionals, the rise of the digital age where the workforce is
increasingly becoming mobile and can work from anywhere, and the effect of globalization to create
more opportunities, the Gig economy is gaining significant attention in the current generation of the
professionals. Today’s economy has created opportunities in the global marketplace for contractors
working independently to expand their customers both nationally and internationally and for the
businesses to tap the global market beyond the local marketplace to utilize required professional
services. With the Gig economy more efficient services are provided at a cheaper rate, for e.g.: Uber
or Airbnb. 
A number of reasons contribute to the growth of the Gig economy. The workers seem to prefer
freelancing over full-time employment due to its the flexibility and independence. It has created better
opportunities of finding more work across the globe and made work more adaptable to the changing
needs and demands for flexible lifestyles. With Gig, freelancers can make lifestyle choices that a
 conventional job would not allow. They can choose when and where to work and at the same time
determine how much they will charge for their services.
Companies are benefitting from having a flexible workforce; they are spending less money on training
or recruitment, need not pay for any medical coverage, and can more easily replace their workforce if
needed. Contracted workers are more cost-effective for businesses and employers are benefitted with
a wider range of applicant pool to choose from, also, they don’t necessarily need to hire one based on
one’s proximity.
Gig economy by Numbers:
1. 36% of the entire US workforce, is a contributor, based on their primary or secondary jobs.
2. 29% of US workers have an alternate work arrangement, thus contributing towards the the
size of the US gig economy.
3. 63% of full-time employees have expressed their desire to start working independently, if
given the opportunity.
4. Almost 40% of the US workforce now earns atleast 40% of their total income through gig
work.
5. More than 75% of gig workers have explicitly stated that they wouldn’t leave their current
freelance work for a full-time opportunity.
6. 55% of the US gig workers also do have a secondary full-time employment.
7. Close to 37% of full-time freelancers, independent gig workers and consultants are relatively
young, and are aged 21 to 38 years.
8. Over the span of the next five years, more than 50% of the US adult workforce will either be
working or would have worked as an independent gig worker.
9. More than 90% of Americans, in general, are open to the idea of freelancing and independent
working.
10. 10.According to Forbes magazine, the gig economy is expanding three times faster than the
US workforce as a whole.
India has emerged as the 5th largest country for flexi-staffing after US, China, Brazil and Japan. India
ranks 7th in the talent pool of graduates in science and engineering. Further, India is witnessing a rise
in the need for supplemental income due to high unemployment amongst the urban youth, increasing
cost of living, growing aspirations of students and changing mindsets of women engaged in
homemaking.
 
Major Industries that hire Gig workers
Here are career categories that hire for freelance and gig economy jobs that you can do remotely.
1. Computer & IT: The Computer & IT category covers a broad range of jobs. You can find
postings in everything from Digital Marketing to internet security.
2. Writing: Writers produce a variety of written materials for various audiences. This can range
from corporate reports for the executive suite to blog posts and web content. Gig jobs include:
Content Writer, Project Manager; Resume Writer; Senior UX Copywriter.
3. Accounting and Finance: Careers in accounting and finance include all things money-
related. Jobs can include handling accounts payables and receivables, tax return preparation, or
financial forecasting.
4. Project Management: Project managers coordinate projects from start to finish. This can
include working with internal and external vendors, managing the budget, and dealing with delays.
5. Administrative: Administrative professionals provide support for executives, including
handling incoming and outgoing communications, managing projects, and scheduling travel.
6. Education and Training: As an educator or trainer, you’ll help teach people new skills. You
can work as a corporate trainer, part-time professor, coach, tutor, or instructor.
Pros of Gig Work
1. Flexibility: The most obvious gig work pro is flexibility. As a gig worker, you get to
choose when and where you work, which clients you take on (and which ones you don’t), and even
set your rates in some situations. You can choose to work only weekends, only nights, or only one
hour a week if you like.
2. Test Drive Something New: Gig work is something some people do for additional income.
But for other people, it’s a way to test-drive a new career. For example, if you love pets and have
 thought about becoming a pet sitter, gig work as a dog walker or pet sitter is a great way to dip your
toes in the water and see how much you love—or hate—doing it.
3. Being a gig worker allows you to explore a passion and see if it’s something more than a
passing fancy, without losing your primary source of income.
4. Save time and money, while making businesses more agile: In a gig economy, companies
may lessen their costs linked to resources like money and time. Money is easily saved by hiring
experts not for longer permanent durations, but for shorter project based timelines. This also saves on
the lots of privileges that any permanent expert enjoys as perks of a high paying job, ones like paid
vacations and insurance. This especially is useful for jobs requiring more technical expertise where
the concerned person is hired for a shorter duration.
5. 1. Lack of Benefits: Once you’re in business for yourself, you’re in business for yourself.
And that means it’s up to you to provide the benefits. Yes, you can choose when you work
and when you don’t work, but the reality is, you don’t get paid if you don’t work. And, as a
gig worker, you likely won’t have health insurance or other benefits, either.
6. 2. Inconsistent Income: With most gig jobs, you’re paid by the project or task. The problem
is, you may not have control over how many tasks you’re able to complete in a day or a week.
If no one wants a ride, needs something assembled, or wants you to deliver something, you
won’t make any money.
7. 3. Burnout: Working multiple jobs or at odd hours isn’t for everybody. Some people find that
as flexible as the work is, gig work becomes tiring and stressful after a while.
8. 4. Loneliness: As they say, habits go away slow. Even the random complaint from a boss or a
colleague is sometimes missed by the lonely individual worker, in a gig economy. This may
especially be true for the ones with issues such as long distances or even long working hours
to contend with, like the delivery personnel or drivers.
9. Also, people involved in writing, editing, designing or web development or similar desk jobs,
may start to have limited access to real life human interactions. Though, as their number
increases, so will the number of co-work spaces increase eventually. It’s places like these
which can then be utilised for trying to lessen the loneliness wherever possible.
10. 5. Need for more discipline and resilience: Individual workers in a gig economy may enjoy
a lot of freedom, but this freedom may also create a sense of indiscipline sometimes. As they
say, with great power comes great responsibility, so the workers shall have to show even
more grit to complete projects on time, assure the clients of quality delivery, while also
showing more resilience to probable rejections, or even greater scrutiny from the clients.
11.  
12. Impact of COVID-19 on Gig Economy
13. With all major economies going into recession and slowdown, COVID 19 has greatly hit the
job market. However, in case of gig workers some are struggling to find work while others
are seeing job opportunities increase. Delivery drivers or those who pick up food orders for
online platforms such as Big Basket and Zomato have seen demand skyrocket as consumers
obeying calls for quarantining have ordered food and supplies to their homes rather than
venturing to physical stores.
14.  
15. A challenge that gig-economy workers may face is that they are typically not registered with
government and regulatory agencies, making it difficult to ensure that government help will
reach them.
16. Conclusion
17. Global forces will continue to make the gig economy relevant. If individuals and
organizations want to consider proactive strategies to beat the global competition, they cannot
afford to ignore the freelance workforce. In fact, the gig economy has succeeded to gain
momentum internationally to be a critical factor in the very near future.
18.  
19. The defining characteristic of gig economy businesses is that they offer online applications to
connect individuals seeking services with those providing services, and do not consider
themselves to be service providers. These offerings can themselves can be entirely online or
offline
Chinese App Banned in India – Pros and Cons

On September 2, 2020, India has banned 118 more Apps including the mobile game app
PlayerUnknown’s Battlegrounds (PUBG). The move by Government of India comes in the
backdrop of the tension between India and China on the Line of Actual Control (LAC). Since
May 2020, Chinese Army known as People’s Liberation Army (PLA) has been resorting to
aggressions in a bid to shift its boundary with India in Ladakh region.
20.  
21. This is the third move by India to ban Chinese apps. On June 29, citing the “emergent nature
of threats” from Chinese mobile applications like TikTok, ShareIt, UC Browser and
CamScanner, Indian Government decided to ban 59 apps. The move was partly seen as a
counter move amid the tense border standoff between India and China that led to 20 Indian
Army personnel being killed on June 15.
22.  
23. The second round of ban on apps came on July 23, when the Minstry of Information &
Technology took down mirror applications which were functioning despite the ban.
24.  
25. Since this issue impacts both Politics and Economy, it is a hot GD topic for MBA, BBA and
other competitive entrance exams. MBAUniverse.com editorial team has prepared the
highlights, Pros and Cons of this topic for your easy reference.
26. On June 29, Indian Government decided to ban 59 apps. “The Ministry of Information
Technology has received many complaints from various sources, including several reports
about misuse of some mobile apps available on Android and iOS platforms for stealing and
surreptitiously transmitting users’ data in an unauthorised manner to servers which have
locations outside India,” the government said in a statement. “The compilation of these data,
its mining and profiling by elements hostile to national security and defence of India, which
ultimately impinges upon the sovereignty and integrity of India, is a matter of very deep and
immediate concern, which requires emergency measures,” it said. “On the basis of these and
upon receiving of recent credible inputs that such Apps pose threat to sovereignty and
integrity of India, the Government…has decided to disallow the usage of certain Apps, used
in both mobile and non-mobile Internet enabled devices,” it said. Government spokesperson
said that Google’s Play Store and Apple’s App Store have been directed to remove the apps.
27.  
28. India may be the first country to ban Chinese apps but it is not the first one to raise concerns
about the privacy and security. Only recently, the US national security advisor Robert O'Brien
said all Chinese companies function as arms of the Communist Party of China (CPC) to
further its ideological and geopolitical agendas. The CPC, in O'Brien's words, "is collecting
your most intimate data -- your words, actions, purchases, whereabouts, health records, social
media posts, texts and mapping your network of friends, family and acquaintances it is not
telecom hardware or software profits the CPC [is] after, it is your data. They use 'backdoors'
built into the products to obtain that data. This is micro targeting."  
29. ndia, a big market for Chinese Apps
Chinese Apps like TikTok and Shareit have been topping Google's Android ecosystem, which
accounts for 90-95% of smartphones in India. For example, Indians clocked 5.5 billion hours
on TikTok in 2019, an increase of over five times from the 900 million hours spent in 2018.
 While Facebook is ahead in India, with total hours spent on the platform at around 25.5
billion hours, TikTok has been catching up fast by aggressively capturing new users. The
TikTok app was downloaded 323 million times across Apple’s App Store and Android
devices in India in 2019 — over twice the 156 million times Facebook was, according to
Sensor Tower data reported by Times of India in January.
30.  
31. Around 30% of Tik Tok’s user-base, according to Reuters Breakingviews which, in turn, cites
SensorTower data, comes from India; cutting off this base will hit the valuation of its parent
ByteDance. ByteDance is estimated to be worth around $110 billion and also owns Helo
whose users are all from India. Similarly, UC Browser has a 12-13% market share of the
browser market in India, making it the second-largest way to access the internet
after Google’s Chrome.
Pros for India
It is early days yet, but by all accounts, the move to ban these Chinese apps seems to be a well-
thought-out move. Here are some positives from the move.
1. Suitable Response to Chinese Border Aggression: Since India will not like to physically
engage China, a bigger and more powerful enemy, this virtual response is a suitable reply.
2. Opportunity for Indian Entrepreneurs: China has protected and promoted its own
entrepreneurs by banning global apps and softwares for decades. A quick glance at the mobile apps
and websites banned in China throws up names such as WhatsApp, Google, Facebook, Twitter,
Instagram, Netflix, YouTube, BBC, The New York Times and even Quora. This ban provides
opportunity to Indian app makers.
3. Signals innovative thinking by Modi Government: The ban is aimed at the local audience,
an audience which is increasingly baying for blood after the Chinese incursion. To that extent, the ban
will help address some of their need for ‘action’ by the government.
4. Cons for India
If China retaliates with economic measures, its impact on India can be significantly larger.
Hence, there can be following disadvantages of this move.
5.  
6. 1. Indian imports much larger than Chinese: While India relies heavily on imports from
China, a much smaller portion of China’s imports are from India. In FY19, 5.1% of India’s
exports were destined for China, while only 3% of China’s came to India. Also, 13.7% of
India’s imports were from China, while only 0.9% of China’s were from India.
7.  
8. The chart depicts the imported products for which India depends on China the most. For
instance, 76.3% of all antibiotics imported by India are from China.
9. . May have impact on Chinese Investments
Many Indian unicorns have a Chinese investor. The chart depicts the estimated investment by
Chinese companies in select start-ups.
10.  
3. Protectionism reduces competitiveness and innovation: This may have a long-term impact on
performance of Indian companies. Also, Google and Facebooks may get a free run in India and may
become exploitative.

Indian Economic Slowdown: A long term problem, how to come out of it?
Recent Slow Down of Indian Economy: Impact is Prominent
The GDP growth of Indian Economy has touched the six year low in the first financial quarter of
April-June 2020. It touched 5.8% growth in January-March, although in nominal terms India’s GDP
grew by 7.99% which is also lowest since December 2002. Key sectors bearing the brunt of Indian
Economy slow down are Agriculture, Automobile, Real Estate, FMCG among others.   
 
On the top of it, the Covid-19 pandemic and continuous lock down of Indian Economy since March
2020 has further slashed economic growth in India. In April 2020, International Monetary Fund (IMF)
has projected GDP growth of Indian Economy at only 1.9%. 
To become a USD five trillion economy in 2025, India must achieve USD 3.3 trillion economy status
by 2021; USD 3.6 trillion economy status by 2022; USD 4.1 trillion economy status by 2023; USD
4.5 trillion status by 2024 and USD 5 trillion economy status in 2025. However, the current trends and
prospects do not favour this dream.
Eight core sectors have registered negative growth of just 2.1% in July, compared to 7.3% in the
corresponding month last year. According to the Centre for Monitoring Indian Economy (CMIE), the
overall unemployment in India has now touched 8.2%, with a high urban figure of 9.4%.
 
FPIs have pulled out a net amount of Rs 5,920 crore even after the government announced a rollback
of enhanced surcharge on FPIs. All the sectors need huge investments and remedial measures to
increase the demand to improve and take India out of the state of  economic slow down.
 
Indian Economy, no doubt is passing through a sluggish economic growth since 2016 post
demonetization as compared to earlier years, although efforts are being made to improve the Indian
Economy’s growth to achieve the rate which may not be considered as very slow.
 
Government however, is of the opinion that India’s economy has a better growth rate amidst global
economic slowdown, if we go by the global economic growth standards.  
Causes of Economic slow down
The cause of the problem as shared by some of the experts consists of supply-side shocks. Besides,
three important contributors to this problem include Covid-19 Lockdown, Demonetisation & stressed
banking sector, GST Implementation and problems in Agriculture sector. The public goods are
provided by government and the government needs tax revenues to supply them, and these depend
upon national income. Then there is employment. A demand for labour exists only when there is a
demand for goods. So growth is necessary if employment is to be assured. 
 
Covid-19 Pandemic
India is under constant lockdown since March 22, 2020 on account of Corona Virus pandemic. All the
economic activities have come to a stand still, industries are shut and despite the announcement of
Rs.20 lakh crore relief package to various sectors by the Prime Minister of India, Shri Narendra Modi,
the economic sentiments have not shown any positive impact.
 
 
Rising Pool of Unemployed Youth 
There is not only a pool of unemployed persons in India to absorb but the country also needs to
provide employment to youth continuously entering the labour force. The slowing of the economy is a
source of concern as an economy that has been slowing for five quarters is unlikely to turn around
quickly. Besides, it may not be able to revive on its own. 
 
No demand - No Investment: Vicious Circle operates
Since it is capital formation, or investment, that drives growth in the economy, investment is an
immediate source of demand as firms that invest buy goods and services to do so. It also expands the
economy’s capacity to produce.
 
The two sources of investment are private and public. The Private investment source is depressed as
of now due to the factors cited above and is difficult to revive unless some external force is applied
for example – tax sops, incentives for investment, creating demand for certain products through public
funded projects among others.
 
When there is no demand, supply has to be stopped due to piling up of stocks and production units go
idle, leading to cut in labour force. It further reduces the income leading to less demand and further
reduction in supply and stopping of production.
 
Since, investment involves committing funds for a long period under uncertainty, the stepping-up of
public investment when private firms are unwilling to invest more is required.  Increased public
investment increases demand and quicken growth and also encourages private investors, as the market
for their goods expands.
 
Reforms: Are they leading to slowdown?
Structural reforms are being taken by almost all the governments or they have been claiming to be
doing for more or less a quarter of a century now. Since 2014, in particular, “the ease of doing
business” has received great attention from this government. But, the economy today is still less
regulated than it was in 1991. Labour market reforms have not been taken up yet in Parliament. Share
of manufacturing may rise if the labour market is liberalised.
 
Another fact is how the economy came close to achieving 10% growth in the late 1980s and during
2003-08 when the policy regime was no more liberal than it is now. It is also difficult to relate
slowing domestic growth to sluggish world trade as data show 2016-17 to be a year of a major
turnaround in exports. On the other hand, capital formation as a share of output has declined almost
steadily for six years now. In 2014-15 it rose slightly.
 
Is it temporary phenomenon?
A few of the experts see it as a temporary or technical issue and think that its effects would soon fade
out while others view this as a more serious crisis created by a barrage of supply-side shocks to the
economy.
 
However, the crisis is seen as a deep structural issue rather than merely a short-run one. Now the
government has to play a key role and understand the economic realities and avoid adventurism in
policymaking and implementation.
 
Corporate sector & Industry criticize the Government
Although, a concrete plan to address the problem is being developed in consultation with Prime
Minister Narendra Modi. However, a section of the industry and many economists have criticised the
government for not being prudent enough to read the distress signs and for treating the slowdown as
temporary and transient.
 
The economy grew by a mere 5.7% in the quarter ended June 2017. In the first quarter of this
financial year, growth fell to 5.7% as against 7.9% in the same period last fiscal year.
 
How can India come out of slow down?
Leading economists and market researchers suggest following remedies to bring the Indian Economy
on high growth track
 
More Government Expenditure
Government needs to spend more now to overcome the situation. Although the government has
already spent much of its budgeted expenditure, it needs to spend more to spur investment and
demand in the economy. An immediate boost without worrying much for consequences is needed by
way of spending. 
 
Let Indian Rupee be weaker
Even a weaker Indian rupee should not be a problem. Stronger rupee is hurting both the exports and
the business. Imports are surging and they are eating into the domestic market share. India needs
growth now, so there is no need for ratings as of now.
 
 Lower Lending rates
The recently announced monetary policy of RBI has not given any relief to boost Indian economy.
The economists now advocate a steep rate cut in the benchmark lending rates to allow for monetary
policy expansion. The Reserve Bank needs to cut interest rates for banks, thereby making borrowing
cheaper for the industry and spurring investment.
 
Certainty in Business required
More certainty in the business environment is required. Businesses should be without shocks like
demonetisation. In fact, after demonetisation shock, there is an environment of uncertainty in the
economy. This stops the Private sector short of announcing the new projects. There should be an
environment of certainty that no such disruptive moves would rock the economy in the near term.
 
No need for excuses: Acknowledge and spend in rural areas
The government needs to spend more on rural areas. Increasing rural people’s incomes can drive up
the consumption demand, which in turn will boost the industry. To create more demand the
Government needs to spend more in rural areas, construction sector and the unorganised sector
 
World Bank hopeful: Slow down to wane soon
The recent slowdown in India's economic growth is temporary and is an "aberration" mainly due to
the temporary disruptions in preparation for the GST. It will get corrected in the coming months. The
World Bank President Jim Yong Kim said that the Goods and Services Tax (GST) is going to have a
hugely positive impact on the Indian economy. According to him, "We think that the recent slowdown
is an aberration which will correct in the coming months, and the GDP growth will stabilise during
the year. We've been watching carefully, as Prime Minister Modi has really worked on improving the
business environment, and so, we think all of those efforts will pay off as well." 

National Education Policy 2020 – Impact on Higher Education Sector

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, approved the National
Education Policy (NEP) 2020 on July 29. The new policy, which replaces the 34 year old policy of
1986, aims to pave way for transformational reforms in school and higher education systems in the
country. The Prime Minister while delivering inaugural address at the University Grants Commission
Higher Education Conclave on August 7, 2020 emphasised that the National Education Policy aims to
keep the current and future generations ‘Future Ready’  while focussing on the National Values and
National Goals.  NEP lays the foundation of New India as it is based on a Holistic approach
Key Goals of National Higher Education Policy
1. Increase investment in Education sector to 6% of GDP: The Centre and the States will
work together to increase the public investment in Education sector to reach 6% of GDP at the
earliest, says NEP.
2. 100% GER in School Education by 2030: New Policy aims for universalization of
education from pre-school to secondary level with 100 % Gross Enrolment Ratio (GER) in school
education by 2030. 
3. 50% GER in Higher Education by 2035: 50% Gross Enrolment Ratio in higher education
to be raised to 50 % by 2035; 3.5 crore seats to be added in higher education
Some of the biggest highlights of the NEP 2020 are, 1) a single regulator for higher education
institutions, 2) multiple entry and exit options in degree courses, 3) discontinuation of MPhil
programmes, 4) low stakes board exams, 5) common entrance exams for universities. NEP 2020 also
opens doors to Top 100 Global Universities of the World to set up campuses in India.

Lock Down in India: After 4 Phases of Lockdown, ‘Unlock’ begins; Impact on Economy, Pros &
Cons, Global Impact
 ndia has remained under lockdown 4.0 until May 31 with some relaxations. Prime Minister Narendra
Modi announced a relief package of Rs.20 lakh crores for various sectors to propel economic growth
on May 17. Some relaxations which were provided to Red, Orange and Green zone areas during
the Lockdown 3.0 like opening of some of the stand alone shops of non essential items were extended
to Medium and small scale industrial sector, farm and trading sector. Malls, Cinemas, restaurants and
places with probable high foot fall remained closed. India now is ranked fourth in the world in terms
of coronavirus cases, after the US, Brazil and Russia.
With the Lockdown 4.0 over, Lockdown-5 with Unlock process of economy has started, offering
more relaxations, despite the fact that number of Corona cases continued to rise. Road, rail and air
travel is proposed to start with various restrictions, market permitted to open, malls, cinema halls,
restaurants are also allowed to open but schools, colleges remain shut. This article explains latest
Covid 19 developments in India and the World. Read this article till the end to understand how to
discuss Pros and Cons of Lockdown in India in a Group Discussion (GD).
Pros and Cons of Lockdown in India
In light of above information, lets review the Pros (Advantages) and Cons (Disadvantages) of
Lockdown. This can be asked as a GD Topic.
 
Lets first look at some benefits:
1. Big curb on spread of Corona Virus. This is the obvious and intended benefit.
2. Reduction in Pollution Levels: Thanks to the lockdown, there has been a drastic decrease in
the level of pollution in cities like Delhi, Mumbai, Bangalore, Hyderabad by almost 70 per cent.
According to the World Air Quality, the average concentration of PM 2.5 in New Delhi has come
down by 71 per cent. There is 50% improvement in water pollution too.
3. More time for Family and Passions: For the middle class of India, Work from Home has
given more time for Family and for pursuing hobbies and passions. A lot of people are connecting
back to basics like Yoga and Meditation in times of crisis. This may have a positive impact in long-
term
. Massive Slowdown of India Economy: Lockdown may have cost the Indian economy Rs 7-8 lakh
crore during the 21-day period, analysts and industry bodies have said. Lockdown that brought as
much as 70 per cent of economic activity, investment, exports and discretionary consumption to a
standstill.
 World Bank has scaled down India’s gross domestic growth (GDP) growth projection to 1.5-
2.8 per cent for the current fiscal year, which would be the lowest economic expansion since the
balance of payments crisis of 1991-92, as Covid-19 is dragging down activities in the already slowing
economy. It had earlier projected the growth to be 6.1 per cent for 2020-21.
2. Sufferings of the Migrant workers: More than 90% of the country’s workforce is estimated to be
from the informal sector. The announcement left little or almost no time for preparation for daily
workers who were forced to travel back to their hometowns, hundreds of kilometres afoot as their
sources of income had dried.
 
3. Death knell for MSME Sector: The Economic Survey of 2017-2018 had said 87% of the firms in
the country, representing 21% of the total turnover, are operating informally and completely outside
the formal system. Without support, this sector will be crushed. They don’t have money and labour to
run their factories and works, and the supply chain is also disrupted.  
 
4. Panic and Fear in Citizens: When the Central government announced lockdown, it instilled a lot
of fear in the minds of the people and led to panic buying since the government had not clearly
mentioned what was included in the list of essential items.

NEO BANKS
A neo bank is one, where it exists online solely, without the presence of a brick
and mortar branch. This entity can be independent or in collaboration with
traditional banks. One of the major services of these banks are that specialise
in offering various digital financial services like that of current and savings
accounts, payments and transfer of money. Being a digital entity, it enables
people to navigate, and also comply with the regulatory environment.

Need for Neobanks

There are plenty of reasons for this. Some of them are as follows:

Unique Customer Experience: Through such neobanks, customers get to

interact with banking services in a much unique and improved manner. This is
specifically due to the fact that neobanks are capable of providing a highly
enhanced and personalised customer experience.
Transparency: It’s not a secret that neobanks are transparent and they also
strive to provide real-time notifications and explanations.

Deep insights: Experts in this field say that most neobanks provide solutions
with interfaces that are user-friendly and much easier to understand, thus
providing valuable insights in the payments, payables, receivables and also
bank statements.

Players in the Space

Talking about the Indian players, there are a dozen neo bank startups here,
that have been offering services and also partnering up with private banks.
One of the most prominent ones being NiYo Solutions and OPEN.

NiYO has recently raised some amount of capital, which would be deployed
towards developing and introducing new product offerings much faster, thus
enhancing distribution and marketing, also looking at international markets for
expansion, particularly in the emerging markets, which can be disrupted easily
via the neo-bank concept.

On the other hand, Open has been pitching itself as a “business banking
service that combines everything right from banking to invoicing and also
automated bookkeeping in one place.” They have joined hands with ICICI
bank, and Open allows its customers to connect all their accounts to more
than 60 banks and also provides a prepaid business card, to come to the aid
of small businesses to manage the expenses of their employees.
The Bottomline

There is a saying that in the technology or in the tech space, people are
allowed to make mistakes, and fail fast. Yet, what’s intriguing to note is that
COVID has undoubtedly provided opportunities that are helping in pacing
faster and also helping in incorporating new strategies that would be helpful in
the near future.