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Showing posts with the label Economy

The Significance of Incremental GDP Growth in the Economy

  The Gross Domestic Product (GDP) is the cornerstone of modern economic analysis, serving as a comprehensive measure of a country's economic performance. Among its various dimensions, incremental GDP growth, often referred to as economic growth, holds a pivotal role in shaping the trajectory of nations. This article delves into why incremental GDP matters in the economy, exploring its multifaceted impacts on prosperity, job creation, investment, and social stability. Driving Factors of Economic Growth Incremental GDP growth represents the expansion of a nation's economy over time. Several key factors contribute to this growth: Increased Production: As industries and sectors expand, they produce more goods and services. This leads to an uptick in economic output, which directly contributes to GDP growth. Technological Advancements: Innovations drive productivity gains and efficiency improvements across sectors. Technological progress fosters

Government Struggle and Economics Amidst the Pandemic: A Journey So Far

  The outbreak of the COVID-19 pandemic in early 2020 unleashed a global crisis that not only challenged public health systems but also had far-reaching impacts on economies worldwide. Governments around the world were thrust into unprecedented situations, forced to navigate uncharted waters and make tough decisions to protect their citizens' health and preserve their economies. In this blog, we will explore the struggles faced by governments and the economic implications of their actions during the pandemic.   1.    Public Health vs. Economic Concerns One of the most significant dilemmas faced by governments during the pandemic was striking a balance between prioritizing public health and safeguarding their economies. Measures like lockdowns, travel restrictions, and business closures were crucial to curbing the spread of the virus, but they also had severe economic consequences. Many businesses suffered, leading to layoffs and financial hardships for individuals and familie

Natural Asset Management And Monetization

  Natural Assets Natural assets are assets of the natural environment. These consist of biological assets (produced and wild), land and water areas with their ecosystem, subsoil assets, and air. In the sense of business environment, natural assets are items, thing, or entity that has potential or actual value to an organization. It is a financial term given to the ecosystem that defines them as productive units of ecosystem service. Natural assets can be monetized directly or indirectly like traditional assets. For example: Natural Assets monetization factors in social or urban forestry:  Tree Health   Carbon sequestration   Age and size   Aesthetic   Stormwater attenuation     How can natural assets be converted into financial assets? To convert natural assets into financial capital. IEG has developed an accounting framework to measure ecological performance. Natural Assets produce an estimated $125 trillion annually in global ecosystem services, such as ca

High GDP by 2022 and Crisis

  Gross Domestic Product GDP is the final monetary value of the goods and services produced within the country during a specific period, normally a year. Three main sectors that contribute to GDP in India 1. Agriculture 2. Industry 3. Services                                                              GDP is measured over market prices and there is a base year for the computation. Nominal GDP is the value of all final goods and services that an economy produced during a given year. GDP can be calculated in three ways, using expenditures, production, or incomes. It can be adjusted for inflation and population to provide deeper insights.   In January 2015, the government moved to the new base year of 2011-12 from the earlier the base year of 2004-05 for national accounts. The base year of national accounts had previously been revised in January 2010. In the new series, the Central Statistics Office (CSO) did away with GDP at factor cost and adopted the international p

Venture Capital Financing

Venture capital investment is a way in which investors support entrepreneurial talent with finance and business skill to exploit market opportunities to obtain long term capital gain. It's defined as an equity-related investment in the early stage of the growth-oriented business firm. In return, VC has a minority shareholding in the business and the irrevocable right to acquire it. Five important things that happen in Venture Capital investment It works in new companies to raise fund It is a long-term investment in a growth-oriented firm. Active involvement of VC firm to managements and skills High risk-return spectrum It is early finance to firms until they are established

Self reliant economy doomed by imports

  Pandemic outbreaks came for rethinking world's fate for communication, travel and living standard. What's new normal is what will  happen  in a pandemic situation when all people of the world suffer. Consumer need is volatile where the economy is unsustainable. In the past several years this situation was getting handled by world top players.   India imported US$480 billion worth of goods from around the globe in 2019, up by 22.8% since 2015 but down by -5.7% from 2018 to 2019.   India's imports data by World top exports The following product groups represent the highest dollar value in India’s import purchases during 2019. Also shown is the percentage share each product category represents in terms of overall imports into India. Top Imports 1.       Mineral fuels including oil: US$153.5 billion (32% of total imports) 2.       Gems, precious metals: $60 billion (12.5%) 3.       Electrical machinery, equipment: $50.4 billion (10.5%) 4.       Machinery including computers: