Bazaarre-The Market Review

  India's fiscal policy encapsulates the government's intricate strategies for managing its finances, encompassing revenue generation, expenditure allocation, and debt management. A pivotal yardstick in this fiscal landscape is the fiscal deficit, a critical parameter highlighting the fiscal health of the nation.   Defining Fiscal Deficit In essence, the fiscal deficit denotes the variance between the government's total expenditure and its revenue, exclusive of borrowings, for a specific period—typically a fiscal year. It portrays the amount necessitated for bridging the fiscal gap through borrowings.   Aims and Targets India, like many nations, sets ambitious targets to control its fiscal deficit to maintain economic stability and sustainability. One such goal is to reduce the fiscal deficit to below 4.5% of the Gross Domestic Product (GDP) by the fiscal year 2025-26. Such goals serve as markers for prudent fiscal management and economic robustness.   Fisca

  India, a country known for its diversity, culture, and a rapidly growing economy, boasts a complex economic landscape that is constantly evolving. At the heart of India's economic prosperity lies its Gross Domestic Product (GDP), a crucial indicator that measures the nation's economic health and growth. India's GDP is the sum of all the economic activity within the country, and it is comprised of contributions from various sectors. As of 2020-21, India's GDP stood at a significant 179.15 lakh crores, with the service sector playing a pivotal role in this economic equation.   The service sector, often regarded as the backbone of India's economic landscape, has consistently showcased its dominance over the years. According to an article by Jagran Josh, the Gross Value Added (GVA) for the service sector in 2020-21 was a staggering 96.54 lakh crores, representing nearly 54% of India's total GVA. This remarkable contribution underscores the importance of the se

  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

  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 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

  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 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