Markets: – A constantly changing Landscape

COVID-19 pandemic is a Humongous problem for companies everywhere, and it’s practically impossible to ignore the issue – it has changed the way business is executed everywhere. Many owners and work managers are failing to shift the regular marketing strategies to a digital marketing (The new normal). They are overlooking the situation because perhaps they have hope that some sudden turn of events towards normalcy will occur in the times of chaos. Whatever may be the cause but this inability to adapt will cause grave concerns to the economic survival of the company. Indian Markets, for the past few years, are constantly in a transition.

“Market is about two things, Marketing and Sales”

Online Shopping has been one of the major causes of loss to many Retailers and even whole-sellers, especially in urban localities. Because online markets are controlled by big multinational companies they marginalize their profit shares to such a low that, shopkeepers fail to catch up with them. So shopkeepers joined hands with them, this move was beneficial for both as the Online platform’s variety received a boost and reach of Shopkeepers increased to farthest corners of India and World.   

Many organizations have shown great adaptability by appointing digital marketing. This pandemic has made it absolutely essential for any trader, businessman, or Shopkeeper to appoint Digital Medium of Marketing and sales.

  • The impact – COVID: 19 on Market

There is no business which lies unaffected by the pandemic. In turn, this unaccustomed reaction has had a detrimental ‘trickle’ effect on larger B2B companies work as providers to these smaller businesses.

Every business, be it your neighbourhood departmental store or an enormous multinational firm, can benefit from digital marketing. Customers still need the products and services as much as ever—what these companies need to do is change the way they reach their target audiences. Even if a small enterprise doesn’t have an online page or portal (one in four do not have), it’s not very late to join in the businesses that are thriving online.

  • Coming to – HOW TO?

It’s time for the affected businesses to make the transition from a fortress store to a digital provider by contacting their customers, reviving unused online assets like websites and social media profiles, and pedalling full speed ahead.

  • Shifting daily operations online

There are very few organizations that cannot make the transition of their daily operations. Credit to video conferencing applications like Zoom, Skype, and many other executives and managers can communicate and impart instructions to staff and hold client meetings from anywhere. 

  • Sales teams can take orders and reservations and provide services to customers via email, chat, or video. They no longer have to commute; they can even start work early leaving customers with longer support hours.
  • Services that were previously delivered in person are surprisingly amenable to video presentations. Clients can pay online and receive a video link to live sessions.

Many businesses are cutting costs on their marketing efforts due to COVID-19, but what they should really be doing is grabbing advantage of the new opportunities that are rising.

This emphasis on digital marketing is not something that they’ll want to slow down on once the lockdown ends. Online shopping is going to stop no-time soon, and most companies will find those web-based interactions to be convenient than in-person meetings.

Stores will reopen but alongside newly adopted ways of selling and engaging with customers.

Talking of Digital Marketing, Digital Services, Digital India, we find one thing common that is Digital. Technologies and Gadgets are sure to expand and improve and in the process, a large number of job and services opportunities will emerge in Technology Development, Gadget Repair, Software development, coding, Data encryption, Data decryption, and Data Handling spheres.

  • Skills

India has the largest workforce worldwide but India stands nowhere in the list of Developed nations. The reason cited for this poor performance is the lack of skill in the workforce. Blaming only the individuals is not right because the Indian education System plays spoilsport due to its monotonous behaviour.

A number of govt. backed Skill Development programs have been launched recently but the major hurdle in the success of these programs is insuring proper implementation.

To grab these upcoming opportunities and chances by both hands we need to be prepared, these opportunities will demand skills like familiarization with Gadgets, computer languages and other technical know how’s? Those, who will fulfil these needs, will surely get an edge.

  • Author’s Take

While digital marketing may be regarded right now as an emergency plan, but by the time this is over, everyone will likely realize that it’s more than a temporary measure rather than a sustainable one. So “GO DIGITAL, BE FUTURE READY” and upstage and up veal everything.

~By Shubham Yadav

America: A Reliable Partner or An Opportunist?

India was never on the radar of the U.S four decades ago. Then all of a sudden the world gaze turned to the nation located in the subcontinent when it successfully carried out its nuclear tests in 1998.  The present-day relations between India and the U.S can be broadly categorized into two types, three particular phases by four different administrations over the past two decades since 1998.

The economic liberation of India in 1991 called for investments from across the globe and also some major U.S corporations were interested but India still wasn’t much noticed or in simple words India wasn’t considered to have potential.

The other two types of India-U.S relations can be found broadly synonymous to the idiom “awe & majesty”. The administrations of Bill Clinton and George W. Bush are the ones falling into the category of awe as that marked the beginning of better relations. This was no doubt due to indications of losing hegemony for the United States of America with the paradigm shift of the world balance coming at the helm of Asia with China’s strategic ascent. The reaction of Clinton administration marked the coming of temporary sanction as India showed the world that’s its nuclear arsenal is not only abundant but also functional. Then it was the same administration that visited India two years later in 2000 and that was marked as a very successful visit. That was the new dawn of Indo-U.S relations.  It was when Bush administration held the Oval office that Indo-U.S ties began to flourish with the signing of 2005 Defence Agreement which made the whole world more interested in India but the centerpiece of the relations came with the signing of 2008 civil nuclear co-operation treaty which shocked the whole world and then rose a term in global political circles known as “the Indian exception”; the signing of the later set a precedent for the non-proliferation nations such as Pakistan, North Korea, and Iran.

The period of majesty arrived when the educator cum lawyer’s administration took their seats into the White House. While during the Obama administration no significant changes or improvements took place between the two states, but in the U.S more recognition started to garner for the three million-strong Indian communities who also held the highest median income among all ethnic communities in the United States.  There was a lot of high-level meeting and the most remarkable of them being President Obama’s address in the joint Indian Parliament where he even used some words from different Indian languages and set precedence and affirmed faith that the relations were in the right track.
It was when the Obama administration packed their things and the outrageous Donald Trump took into the Oval Office with a storm in the U.S Presidential elections that the relations took to a bumpy ride. The present administration’s “America First” policy with enhanced Visa ban and further scrutiny and troubles for immigration that has made the relations bumpy with failure to acknowledge that America is a land of immigrants who’ve indeed made the nation the world richest democracy and a global superpower. While the top political leaderships share what they refer to as “kinship” between them the relations have not shown that with the rhetoric.

America’s interest in India took a rise with the rise in threat in their global hegemonic order which they’ve created and maintained for over century. The enhanced ties and support to the Indian government are due to the indication to bag India in its side against the rising superpower, that is, China. The only substitute to obstruct China’s polarity in the world can take place with the help of its neighbor in Asia and with a more than the modest economy, a powerful military, and good diplomatic power in the international community, India is the most suitable opponent.

With this, the U.S has failed to acknowledge the fact that India has always remained non-aligned and only took the bastion of the international order when it perceived threats to its interests. That has led India to maintain as “strategic partnership” with the U.S and is not an ally. India more likes to be addressed as a friend with its sovereignty maintained and interests safeguarded.

America has always been an opportunist as it tries to please India as it perceives a threat from China while it remains neutral to India’s security complication with Pakistan, whom the U.S supports with a huge military aid to fight terrorism and Pakistan directs the weapons procured from that aid to point guns at India; also in the U.S stays neutral when China often dubiously calls the Indian state of Arunachal Pradesh as “South Tibet”. Therefore America is not a reliable partner, just an opportunist who is using India to maintain its hegemony in the world order and trying to keep China in check in Asia.
                                                                                       

                                                                                                    – Aanandita Singh

Why do angel investors prefer Tech start-ups over Non-Tech?

Start-ups (which indirectly fall under MSEs category of taxation) since 2014 have collected around $100 billion and are on the ever-accelerating way to mark its way to $500 billion by 2025, with a projection to create over 35 – 40 lakh jobs. 

It was a beautiful day for Mr. Singh. He had invested in an idea introduced by a bunch of boys who had recently graduated out of an Engineering College. It was something related to irrigation technology with the name “Ivy-Irri Tech”. Mr. Singh had no idea what it was, but his financial advisor and accountant advised him that the investment would garner good profit in a very short period of time. After he found everything to be appropriate, he wrote off a check for Rs 3 crore for 3,000 shares to Ivy-Irri Tech boys. Today, he received the triple of his investment (i.e., Rs 9 crore) as the start-up was brought under the banner of a multinational corporation (MNC).

Mr. Singh was indeed an ‘angel’ who invested in the start-up seeing the growth projection as calculated by the discounted cash flow (DCF) method. He knew and took all the risks on the idea. Like Mr. Singh, there are a number of high-value individuals in our nation who are approached to invest in a small idea, which the ones presenting are able to convince (or show) to be of big worth in a short period of time.

A few days went by and the boys again contacted him over the notice they received from the Income Tax Dept. The notice stated that they had to pay 30% as ‘Angel Tax’ clause of Section 56(2)(vii b) of the Income Tax Act, 1961.

These start-ups operate in a very vulnerable environment and anything can happen any moment. All the money made in the first half of the day may just vanish off by second. The basic principle of start-ups is a low investment to high yield, in less time.

According to Economic Times, “Angel tax is a term used to refer to the income tax payable on capital raised by unlisted companies via the issue of shares where the share price is seen in excess of the fair market value of the shares sold. The excess realisation is treated as income and taxed accordingly.” This is charged when the initial “angel” investor is an Indian, while foreigners are exempted from it as that’d just add more to Foreign Direct Investments (FDI) category. Also, the value of start-ups is counted against the industry suggested method of DCF with the net value present (NVP) method that increases the difference between the projected margins to the excess premium earned.

Hence, now the start-up will have to pay the excess of what they received of initial capital (i.e., Rs 3 crore).  In shares & dividend terms – Mr. Singh bought 3000 @ Rs 10000 each. He sold them (the startup sold it to the MNC) at a premium (excess from Market Value – profit) of Rs 30,000 for each share. Hence, for 3000 shares the excess profit is Rs 6 crore. Now 30% of Rs 6 crore is Rs 1.80 crore and that is what the start-up is charged as “Angel Tax”.

This is a major de-motivation to the hardworking, innovative minds that have worked hard to put up the efforts to bring their dream into happening, just like the “Ivy-Irri Tech” chaps and returned the initial investment in a triple in less than some years, but now are a victim of the ‘Angel Tax’.

However, the income tax regimes in our nation, which are duly unregulated at the helm of dysfunctional bureaucracy and call for immediate reforms at a great extent, do not spare even the ‘angels’. This taxation regime has led to the inclination of angel investors into investing in tech start-ups and deviating from the non-tech cohorts. The falling of start-ups into MSEs category, the very narrow definition of start-ups, and the bureaucracy which looks for an opportunity to put to their advantage, are the reasons for non-tech start-ups being not worth investment against hassles.

Of the limited few exemptions in Angel Tax, the angel investors tend to avoid the non-tech sector as there’s a very obstructive measure which restricts the investment into immovable objects. So if the start-up in non-tech sectors, would involve investment in immovable assets (which is the case in most non-tech start-ups) then the investment would not fall into exemption into start-up’s seed funding and thereby incurring additional taxation.

The ruling Govt. has presented a very ambitious plan to lead India to a $5 trillion economy for which there needs to be a safe growth rate in the economy at 11.3% (also assuming rupee falls to the dollar, further) for the next five years with no exception contrary to the present which is less than 4%. Further, with Moody’s downgrading India to ‘Baa3’ category, just one rank above “junk” category, the onset of FDIs flowing into Indian start-ups seems reclusive and does not seem to recover anytime soon. So, the Income Tax Act, 1961 needs to reform from its very core to match up the economic challenges of the 21st century for Indian investors to keep the market afloat and its operations flared up. Time is money, and neither of that we do have. 

                                                                                                                             – Aanandita Singh

CRYPTOCURRENCY, A PROMISING FUTURE OR JUST A FAD?

Crypto currency is something that everyone wants to talk about but very few have the idea about how it works.

Since human civilization has emerged, the currency has been a very crucial part of their lives. In the caveman era, they used to exchange their things which are famously termed as “barter system”. Suppose, Ram has seven mangoes and his friend has seven apples but Ram needs seven apples. What can Ram do now? He can exchange his goods with his friend via the barter system. But there were various flaws in barter system like lack of a common measure of value (seven apples may not have the same value as seven mangoes), lack of double coincidence of wants, unable to divide into smaller units etc.

After realizing that the barter system did not work very well, and thus currency went through a few recurrences in 110 BC; later “Currency” was coined officially. Thousands of 250 AD gold plated Florence was introduced which was only used in limited countries. From 1680-1980, the paper currency gained significant popularity and was used across the world. This is how modern currency came into existence.

Modern currency included paper currency, coins and credit cards and digital wallets like Amazon Pay, PhonePe and so on.

WHAT IS CRYPTO CURRENCY?

It is a new form of digital resource or virtual currency based on a network that is distributed across a huge number of devices.

The word “crypto currency” is derived from the encryption technique which is used to secure the end to end networks.

All the digital wallets (PhonePe, PayPal, Paytm etc.) are controlled by banks and governments. This means it is regulated by authorities and it may increase some hazards like a technical issue at the bank while transferring money, limited transaction and so on. This is why the future with currency lies with crypto currency. There are more than 1600 crypto currencies are available. Bitcoin, Litecoin, Ethereum, Z-cash are some popular ones.

PERKS OF CRYPTO CURRENCY:

  • Self-governed and well organized.
  • Payment can be processed within a few minutes.
  • Authentication of users’ identity.
  • Removes all the problems of modern banking.
  • The unlimited fund can be transferred.
  • Cost-effective mode of transaction.
  • Decentralized and secure.

CRYPTO CURRENCY VS BITCOIN:

Bitcoin is also a digital currency that utilizes crypto currency and it is regulated by decentralized authority unlike government-issued currency whereas the crypto currency uses encryption technique which acts as an intermediate for the different financial transactions all over the world.

DRAWBACKS OF CRYPTO CURRENCY:

  • There is no restriction to illegal transactions.
  •  More prone to hacks.
  • Limited crypto currencies can be traded only in one or a few fiat currencies.

CRYPTOCURRENCY AND TODAY’S WOLRD:

The whole world is distinctly divided when it makes headway to crypto currency. On one side, there are supporters like Bill Gates, Richard Branson who believe that crypto currencies are better than regular. And on another side, people like Warren Buffet, Paul Krugman who are absolutely against the crypto currency. They both are Nobel Prize winners in Economics and they think it is a fraudulent investing scam and means for criminal activities.

It can be assumed that in the future there is going to be a conflict between regulation and anonymity as crypto currencies ensure that its users are kept anonymous. Despite having some disputes, the use of crypto currencies in the merchant’s navy is increasing, which carries a positive vibe.

By the year 2030, crypto currency would captivate 25% of national currencies which is a notable chunk of the globe and that would be a remarkable step in economical evolution.

                                                                       Saswati Chattopadhyay

FAILURE IN THE START-UPS

India is struggling for becoming third largest startup ecosystem in the world for which it has provided the ground for many new startups in last few years still 90% of startup fails within 5 years, the main reason behind this failure is lack of uniqueness and also 98 out 100 young entrepreneurs copy the western ideas they have lack of information and knowledge about new technical innovative ideas for their business.

According to the study of IBM institute of business value (IBV) conduct the survey in collaboration with Oxford Economics to know about India startup ecosystem and the main reason behind the failures in Startups is lack of innovation, non-availability of skilled workforce and insufficient funding. As India is giving a chance to many new startups and a young businessman still there is a high rate of unemployment in India also the main reason is an increase in the population and lack of proper knowledge about work.

IBM said that “77% venture capitalist surveys believe that many Indian startups lack pioneering innovation based on new technologies or unique business models. Indian startups are prone to emulate already successful global idea”.

According to experts, India is follower market however, artificial intelligence machine is mainly restored in retail and banking.

Through the global study, it has been found that India comes in the bottom-most countries in terms of global innovation and the report state the reason behind this is a poor education system. On the Global Invitation Index (GII) India comes on the 66th rank also there is no doubt about India can become a global driver because we have potential to do work, a pool of talent and cultural innovation.

Also, IBM states that 70% venture capitalist claim that the main problem faced by the Indian startups are an investment of talent and there is limited availability of important skills.

Another report suggests that there were around 6’000 IT companies in the year 2016 which came down to 800 in just nine-month of 2017 this means there is a big loss in startups and also many people are getting unemployed

Head of marketing intelligence firm Rishabh Lawania also shared his view by saying “Since 2015 as many as 1,503 startups have closed down in India. The major reason is due to the replication of western ideas and not lack of subsequent funding from investor”

The main failure is being faced by eCommerce and food technology.

The chief digital officer of IBM India/South Asia Nipun Mehrotra said “the Indian startup community ranked third globally in terms of the number of startups, has been creating new job opportunities and attracting capital investment. We believe that startups need to focus on Societal Problem, including health care, sanitation, education, transportation alternate energy management and others which would help deal with the issue that India and world face. These require investment in deep technology and product which are built to scale globally”.

Now, due to pandemic situation, India’s economy is facing crucial time and for stabling, these new young entrepreneurs should come up with innovative ideas and skilled workforce which will help India to regain its economy and also soon it will be the third-largest startup country in the world and for all this hard work and creative mind is required.