Introduction: Pakistan and India, neighboring countries with shared history and cultural ties, have had different trajectories in terms of their economic development. This essay aims to compare the financial situations of Pakistan and India, analyzing various factors such as GDP growth, inflation rates, fiscal policies, and foreign direct investment (FDI). By examining these aspects, we can gain insights into the economic progress and challenges faced by both nations. GDP Growth: Gross Domestic Product (GDP) growth is a fundamental indicator of a country's economic health. In recent years, India has consistently outperformed Pakistan in terms of GDP growth. India's diverse economy and market size have contributed to sustained growth rates, with an average annual growth rate of around 7% in the past decade. On the other hand, Pakistan has experienced relatively slower growth, with an average annual growth rate of around 4% during the same period. This disparity can be attributed to factors such as political instability, security concerns, and structural issues within Pakistan's economy. Inflation Rates: Controlling inflation is crucial for maintaining economic stability. Both Pakistan and India have faced inflationary pressures, but Pakistan has struggled more significantly in this regard. Pakistan has witnessed relatively higher inflation rates, reaching double digits at times. In contrast, India has managed to keep inflation in check through various monetary and fiscal policies. The Reserve Bank of India has implemented prudent monetary measures to curb inflation and stabilize the economy. Moreover, India's diversified agriculture sector has helped in managing food inflation, a significant driver of overall inflation. Fiscal Policies: Fiscal policies play a crucial role in shaping a country's financial situation. Both Pakistan and India have faced challenges in maintaining fiscal discipline, but India has made more significant strides in recent years. India has implemented reforms to streamline its tax system, including the introduction of the Goods and Services Tax (GST). These efforts have helped broaden the tax base and improve revenue collection. Pakistan, on the other hand, has struggled with tax evasion and a narrow tax base, leading to revenue shortfalls and fiscal deficits. However, Pakistan has recently undertaken reforms to enhance tax collection and improve fiscal discipline. Foreign Direct Investment (FDI): Foreign direct investment is an important driver of economic growth, as it brings in capital, technology, and expertise. India has been successful in attracting FDI due to its large market, skilled workforce, and economic reforms. Sectors such as information technology, pharmaceuticals, and manufacturing have received significant foreign investment. Pakistan, while making efforts to attract FDI, has faced challenges due to security concerns, political instability, and a relatively smaller market size. However, Pakistan has taken steps to improve the investment climate, including the establishment of special economic zones and the implementation of investor-friendly policies. Conclusion: In conclusion, India has consistently performed better than Pakistan in terms of economic indicators such as GDP growth, inflation rates, fiscal policies, and FDI. India's diversified economy, effective fiscal policies, and business-friendly environment have contributed to its economic success. On the other hand, Pakistan has faced challenges related to political instability, security concerns, and structural issues within its economy. However, it is worth noting that both countries face unique economic circumstances and have their own set of strengths and weaknesses. Both nations need to focus on sustainable growth, investment in human capital, and structural reforms to enhance their financial situations and improve the lives of their citizens.

The Budget 2023, by- Vanssh Kapoor Aims of Budget 2023 to include: Facilitating ample opportunities for citizens, especially youth Providing strong impetus to growth and job creation Strengthening macro-economic stability To aim for the empowerment of women in Budget 2023 To enable women self-help groups to reach next stage of economic empowerment To help self-help groups with raw material supply, branding, marketing of products Union Finance Minister Nirmala Sitharaman on Wednesday presented the Union Budget 2023, the fifth budget of Modi 2.0. In the last full-fledged Budget before the general elections next year, Nirmala Sitharaman said that the Indian economy is on the right path and heading towards a bright future. In a big boost for taxpayers and economy, Sitharaman announced major changes in tax slabs under the new tax regime and big hike in allocation for railways and capital expenditure. Sector-wise detailed reading of the various measures Finance Minister Sitharaman announced in Budget 2023: New Income Tax Slabs Under New Tax Regimes: Rs 0-3 lakh: Nil Rs 3-6 lakhs: 5% Rs 6-9 lakhs: 10% Rs 9-12 lakhs: 15% Rs 12-15 lakhs: 20% Rs Over 15 lakhs: 30% An individual with annual income of Rs 9 lakh will have to pay only Rs 45,000 in taxes: FM Sitharaman Income of Rs 15 lakh will fetch Rs 1.5 lakh tax, down from Rs 1.87 lakh A Rs 50,000 standard deduction to taxpayers has been introduced under the new regime Payment received from Agni veer Corpus Fund by Agni veers to be exempted Tax exemption removed in insurance policies with premium over Rs 5 lakh For online games, govt proposes to provide for TDS and taxability on net winnings at the time of withdrawal or at the end of fiscal Tax exemption on leave encashment on retirement of non- government salaried employees hiked to Rs 25 lakh from Rs 3 lakh. A higher limit of Rs 3 crore for TDS on cash withdrawal to be provided to co-operative societies. Next-generation Common IT Return Form to be rolled out for taxpayer convenience Grievance redressal mechanism to be strengthened. TDS rate to be reduced from 30 per cent to 20 per cent on taxable portion of EPF withdrawal in non-PAN cases. What gets cheaper and what's get costlier: Cheaper Mobile phones TV Lab-grown diamonds Shrimp feed Machinery for lithium-ion batteries Raw materials for EV industry Costlier: Cigarettes Silver Compounded rubber Imitation Jewlery Articles made from gold bars Imported bicycles and toys Imported kitchen electric chimney Imported luxury cars and EVs Indirect Taxes: 16% tax hike on certain cigarettes New cooperatives that commence manufacturing till March 2024 to get lower tax rate of 15% Basic customs duty on crude, glycerine reduced to 2.5%. Import duty on silver bars hiked to align it with gold, platinum Extend customs duty cut on imports of parts of mobile phones by 1 year To promote TV manufacturing, customs duty on open cells of TV panels reduced to 2.5% Relief provided on Customs Duty on import of certain parts & inputs like camera lens Concessional duty on lithium-ion cells for batteries extended for another year Number of basic custom duty rates on goods other than textiles and agriculture reduced from 21 to 13. As a result, there are minor changes in taxes on some items toys, bicycles, automobiles. Defence Budget hiked by 13%: Defence budget increased to Rs 5.94 lakh crore from last year's Rs 5.25 lakh crore. Rs 1.62 lakh crore set aside for capital expenditure including purchases of new weapons, aircraft, warships and other military hardware. For 2022-23, the budgetary allocation for capital outlay was Rs 1.52 lakh crore. Capital budget of the Border Roads Organization increased to Rs 5,000 crore. Capital outlay for the Indian Air Force was the highest at Rs 57,137.09 crore Amount of Rs 52,804 crore was set aside as the capital outlay for the Indian Navy. Capital outlay for the Army has been pegged at Rs 37,241 crore. Allocation to Defense Research Development Organization (DRDO) has been put at Rs 23,264 crore. Urban Development: Govt to spend Rs 10,000 crore per year for urban infra development fund Cities to be incentivized to improve creditworthiness for municipal bonds All cities and towns will be enabled for 100 per cent transition of sewers and septic tanks. Health: Health sector has been allocated Rs 89,155 crore in the Union Budget Mission to eliminate sickle cell anemia by 2047 A new programme for research in pharmaceuticals will be formulated and the industry will be encouraged to invest in research. Out of Rs 89,155 crore, Rs 86,175 crore has been allocated to the Department of Health and Family Welfare, while Rs 2,980 crore has been allocated to the Department of Health Research. budget allocation for the Pradhan Mantri Swasthya Suraksha Yojana for 2023-2024 is Rs 3,365 crore. Among these central sector schemes, the budget allocation for the National Health Mission has been increased from Rs 28,974.29 crore. Budget allocation for the AYUSH ministry has been increased from Rs 2,845.75 crore. The allocation for the National Digital Health Mission – NHM has been increased from Rs 140 crore to Rs 341.02 crore. For the National Tele Mental Health Programme, the budget allocation has been increased from Rs 121 crore to Rs 133.73 crore. The budget allocation for autonomous bodies goes up from Rs 10,348.17 crore in 2022-23 to Rs 17,322.55 crore in 2023-24. The allocation for ICMR has been increased from Rs 2,116.73 crore to Rs 2,359.58 crore. Sports: Sports gets an allocation of Rs 3,397.32 crore, an increase of Rs 723.97 crore. The Rs 3,397.32 crore is the highest sports budget allocation ever in the country. 'Khelo India' has been allotted Rs 1,045 crore. Sports Authority of India gets Rs 785.52 crore for 2023-24. National Sports Federations receives a hike of Rs 325 crore. Agriculture: An Agriculture Accelerator Fund will be set up to encourage agri- startups by young entrepreneurs Digital public infrastructure to be developed for the agriculture sector Rs 20 lakh crore agricultural credit targeted at animal husbandry, dairy and fisheries Over the next 3 years, one crore farmers will get assistance to adopt natural farming. 10,000 bio input resource centers will be set up Fisheries: To launch sub-scheme under PM Matsya Sampada Yojna with outlay of Rs 6,000 crore to further enable activities of fishermen To make India a global hub for 'Shree Anna', the Indian Institute of Millet Research, Hyderabad will be supported as the Centre of Excellence for sharing best practices, research and technologies at the international level. Rs 2,516 crore for Computerization of 63,000 credit societies n drought-prone central regions of Karnataka, central assistance of Rs 5,300 crore to be given to upper Badra project to provide sustainable micro-irrigation. 500 new ‘waste to wealth’ plants under GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) scheme to be established for promoting circular economy at total investment of Rs 10,000 crore. 5 per cent compressed biogas mandate to be introduced for all organizations marketing natural and biogas. Education: Three centers of excellence for artificial intelligence to be set up in top educational institutions. 157 new nursing colleges will be established in colocation with the existing 157 medical colleges established since 2014. Eklavya Model Residential Schools to be set up in the next 3 years. The Centre will recruit 38,800 teachers and support staff for 740 schools serving 3.5 lakh tribal students. National Data Governance Policy to be brought out to unleash innovation and research by start-ups and academia. Grant for University Grants Commission (UGC) has been increased by Rs 459 crores (9.37 pc). Central Universities have been increased by 17.66%, Deemed University by 27%, support to IITs have increased by 14%, and to NITs by 10.5% as compared to BE 2022-23.

Post Work BY ABHAY SINGH 4 JULY 2022 (UPDATED) UPDATED INCLUDES THOROUGH RESEARCH RATHER THAN PERSONAL OPINION, AND PERFORMANCE OF JAPAN ACROSS VARIOUS SDG’s AND SDG’S are ARRANGED BASED ON PRIORITY. Soon after the 2030 Agenda for Sustainable Development was agreed, Japan moved quickly to establish a broad-based, whole-of-society approach to implementing the Sustainable Development Goals (SDGs) based on eight priorities centred around the themes of people, prosperity, planet, peace and partnerships.Whether it be high-speed bullet trains, the automotive industry, or the most humble culture in the world, the name of Japan always strikes up. Geographically prone to earthquakes, Japan is one of the world's leading economic and technological centers. In my opinion one of the most well- organized countries. I remember watching Jeff Bezos say what he learned from Akio Morita from Japan and how it influenced the building of Amazon: "Right after World War II, Akio Morita, the guy who founded Sony, made the mission for Sony that they were going to make Japan known for quality. And you have to remember; this was a time when Japan was known for cheap, copycat products. And Morita didn't say we're going to make Sony known for quality. He said we're going to make Japan known for quality. He chose a mission for Sony that was bigger than Sony." Although thinking about Japan developed country, with education so deep down in their roots, with hard work and passion for being the best in their field, people in Japan are not mentally happy. The goal that Japan should promote SDG3 is good health and well-being. According to a survey result, 11.5% of respondents had a poor mental state deemed severe enough to require consultations with medical institutions, and 36.6% reportedly felt mild to moderate stress that could likely grow worse. Stress levels tended to be high among health care workers and young people aged from in their teens to their 30s. An analysis of the results found that feelings of loneliness, anxiety, insomnia, and poor work or academic performance, among other factors, had been the causes of stress among individuals. This is not good for a developed country like Japan; people there are so focused on their work that they spend less time on their mental well-being. At the end of the day, a happy mind and a happy body are an individual's greatest assets. Japanese passports are issued to Japanese citizens to facilitate international travel. With 192 visa-free travels, it is the strongest passport in the world. Its social relations with the other developed countries are impressive. Japan works with the international community based on the principle of human security to address global health, including universal health coverage, and realize a society where the SDGs have been achieved and "no one is left behind.”Japan has one of the best healthcare systems in the world, technologically advanced and highly subsidized. It has a powerful social security system that every citizen contributes to benefit citizens, regardless of age or status. However, that does not mean the system is perfect. Mental health is arguably the weakest link in the well-being of the Japanese, which becomes more challenging when the relatively conservative society places a stigma on mental issues it doesn’t understand. That shunning often creates a cycle of negative influences on community. Education and awareness are lacking, even financial support. This will be one of the potholes to fill as Japan rides the road towards 2030. Japan still has some catching up to do regarding mental health. The good news is that many organizations have already begun addressing the problems and gaps that are uniquely Japan., This isn’t the case in India, where family is a big part of an individual; There is a growing culture in Japan called “ohitorisama,” which simply means the desire to do things alone.do we know the difference between solitude and loneliness? Why loneliness is hard to define in Japan and the rising concerns of the negative impact of loneliness. PHysical exercises should also be promoted. Japan’s justly famous Meiji Restoration of 1868 provided a blueprint for economic development for countless countries to follow. It is a tradition that Japan maintains to the present day as a world leader in sustainable technology and a partner to countries around the world aiming to end poverty, achieve high levels of well-being, and ensure human security. Japan became Asia’s first industrial economy at the end of the nineteenth century through national unity, visionary leadership, and hard work. When European powers threatened Japan’s sovereignty in the middle of the nineteenth century, far-sighted leaders instituted a remarkable policy of modernization that began in 1868.We are now in the Age of Sustainable Development, and once again we can count on Japan’s visionary role in achieving sustainable development not only in Japan but around the world with Japan as a role model and a partner to other countries. Japan continues to partner with countries that want to advance rapidly, for example by helping the Government of Rwanda to establish the new SDG Center for Africa in Kigali,Japan is innovating on how to create new institutions, technologies, and policies for a society with a significant proportion of elderly people, a challenge of course spurred by Japan’s very high longevity. Japan’s breakthroughs in healthcare, support systems, and quality of life for the elderly will have great benefits throughout the world. Japan is also pioneering the pathway to a low-carbon economy to fulfill the Paris Climate Agreement, by deploying Japan’s world-class engineering excellence to promote energy efficiency, new materials, and new kinds of vehicles, such as Toyota’s fuel-cell vehicles. In itself, mental health is a prerequisite for physical health and is strongly interlinked with other development factors such as poverty, work, and economic growth or peace and justice. Mental health plays a key role in efforts to achieve social inclusion and equity, universal health coverage, access to justice and human rights, and sustainable economic development. For example, poverty (goal 1) and mental illness are strongly linked, just as economic growth (goal 8) and safe and resilient cities and settlements (goal 11) depend on an overall mentally healthy society. As a cross-cutting issue, mental health has relevance across the whole range of development. To conclude, Japan is a visionary country, thinking as no one is perfect and there are traits in every society in the world; japan lacks mental health, and although they have progressed in technology but some basic fundamentals in Japan have been ignored. Closeness to family in my perspective can bring end to these crises in japan, with family being an essential part of your life as in India, western countries still don't get how mature aged indians still live with their family, in their tradition being independent is far more critical that your mental health. However, Living with your family also leads to arguments, since human nature is like that, to love and fight. But good impacts out qualifies these impacts.

Introduction My name is ABHAY SINGH a meticulous student of grade XII. Upon writing the research paper on DISPOSAL OF E-BATTERIES I decided to write a research paper on THE ECONOMICS OF AUTOMOBILE INDUSTRY IN INDIA. Upon greater understanding of the topic, I gained information that Taxation, which we all think is the main reason behind the limitations of international car manufacturers in India is NOT the only reason, there are various reasons apart from this. I came to the understanding that Tesla is not planning to come to India. As well as an MNC such as ford has decided to leave India. The question in my mind remained that a country as big as India that caters to so many car manufacturers, but still MNCs are not happy with the policies and often remain in conflict with the Indian central government. In this research paper, I have listed down points including taxation to help create a better understanding of the topic. While visiting the outskirts of Delhi, its stark contrast with the urban metropolis intrigued me. How can the same city have 2 entirely different worlds? Failure of the trickle-down theory was the initial source of income inequality. Accumulation of wealth in the top 1% does not add adequate economic value as opposed to poorer sections who have a larger propensity to consume. Joseph Stiglitz’s ‘Price of Inequality’ refuted the misconception that the rich are job creators as incentives to the rich lead to job creation abroad. It is the market demand that forces firms to produce and eventually creates jobs, thus evincing that inequality and economic growth are not complementary. The Economics of the Indian Automotive Industry Last year FORD an American multinational car manufacturer exited the Indian automotive market, not just this, Toyota that is to be known for producing reliable and safe family cars has told that they won’t be further expanding in India, Alongside, Honda said that they will only run 2 or 3 models in India and start cutting supplies and eventually shutting down other models. Before all these companies multinational companies, some big names like CHEVERLOTE and MITSUBISHI has already left India. General Motors the 2nd biggest car manufacturer in the World never entered India According to the automotive industry valuation India comes 4th in the world but if this is the case then why are all these companies leaving the Indian market? People often think the easiest answer could be TAXATION. But further in this research paper when we will discuss the causes we will get to know that this is not the only reason, there are several other important reasons why the companies are exiting the Indian market Overview of the Indian Automobile Industry If we look at the figures for FY22 then we will get to know that in 2022 India sold around 2.3 crore cars, yes the number looks deceiving but if we compare it with the past 5 years the growth looks stagnant. Many automakers face losses just because the cars are ready and are not able to sell or perform well in the market Indian market.We can blame coronavirus for this but FY21 was also impacted by covid, but in FY22 the numbers decreased drastically. These figures include all automobiles including 2-wheelers, passenger vehicles, and commercial vehicles. Out of these cars, 17.5% were passenger cars which rounds up to 30 lakh cars. Out of these cars, less than 1% which is 23,748 covers the luxury segment including brands like Mercedes, BMW, Bentley, etc. The clear picture is that the luxury market of India is not that big In India if we divide the car sales by the company we will get to know that the most number of cars sold by a manufacturer in India is by Maruti Suzuki then Hyundai followed by Tata motors followed by Mahindra followed by KIA. Kia is a sub-brand of Hyundai based in Korea. There is not a single American company on this list. Although looking at world figures; out of the top 5 automobile manufacturers in the whole world, 3 are American Companies. The common thing among the top 5 automotive companies in India is that they have a growth rate of an average of 250% to 300% DATA Looking at this data, it will be clear to say that Indians are preferring more SUVs than sedans. Because of this, the Managing Director of Maruti Suzuki is saying that if Maruti Suzuki wants to increase its market share in India then they must focus on SUVs to be a leader in the segment. Even If we look around ourselves we will notice that the market capital and demand for mid-size SUVs have increased drastically, they are more frequent on roads and their sales are also booming. In the past years during covid when car sales were in dropping drastically only SUV’s growth was booming. Between the years 2009-2019, the sales of SUVs was the most. This was an overview of the Indian Market, by this, one thing is crystal clear that the Indian consumers that were lower middle class are rising to an upper middle class, which is the reason why they are preferring SUV’s over other smaller cars. Consequently, the demand for SUV’S in India has skyrocketed, and the Indian automotive industry taking full advantage of it. THEN THE REAL QUESTION ARISES Why did the American Giants leave the Indian Automotive industry ??? There are other companies like Hyundai and KIA who are operating from outside India and still processing at a high rate in India and comparatively the American companies couldn’t grow and they exited one of the largest markets. To get a deeper look let’s look into the Taxation policy in India first- Overview of taxation policies in India Cars have a GST of 28% furthermore a cess of 3%to 22% If we compare these taxes to other countries we know that India has an aggressive taxation policy. If we compare this with the pre-GST ERA, the VAT, and other taxes, they were almost the same. From this reason, we get to know that tax cannot be the only reason for their exit, because the taxes had been the same for the past years, even with the change of central government. The taxes are almost the same as during Congress Era and the BJP era. Then what are the reasons for their Exit ?? If we import a car below 31 lakh then we have to pay duties of approx. 60%. On the other hand, If the car is above 31 lakh then we have to pay 100% import duties. CBU (a fully assembled vehicle) is imported from abroad, hence many companies have stopped importing vehicles directly. TO REDUCE TAXES WHAT THEY DO IS- They import parts and components of the same vehicle and assemble it in India paying 30% of duties. Harley Davidson, a bike company was the first to open an assembly plant in Haryana saving a lot by this process. This was done by the government and Nitin Gadkari JI, to promote make in India. ON THE OTHER HAND, if you import a small number of parts and manufacture them in India then you have to pay 15% import duty, because of this ford inaugurated their car plants in Tamil Nadu and Gujarat, Toyota in Haryana, Hyundai in Hyderabad to save costs in import duty. And comparing the price of the Indian market and Indian consumers their main aim was to be relevant and affordable Ford was operating for many years, and there wasn’t much of a difference in taxation, between the 2 different governments. Comparing GST with VAT as was the case earlier, they were manufacturing their cars in India, hence saving import duties, saving tax money, but still, they decided to leave. WHY DID FORD TAKE SUCH A DECISION ??? If we look into their financials, then we get to know the real reason, in the past 10 years, ford has incurred losses of around 15,000 crores in India because their cars weren’t selling well. This was a major drawback because establishing a brand is one thing and earning profits is another. If we Look Closely, any automobile company that comes from North America takes India as an option only an option, whereas they have to assert their presence in countries like China and Australia because of the market share. This is because if we look at the per capita income of the USA it is 50,40,000 INR whereas; the Indian per capita income is 1,50,000 INR there is a difference vast difference between the people’s spending power. So in this case the margins that they get in the US, the cars that they can sell expensive over there, same cars can’t be sold in India at the same price, because there is a completely different market here, in India people are very price sensitive, and why not they would be price sensitive, they have a very low per capita income, if the Per capita income would have been higher then they might not have been price sensitive, as simple as that. Promoting the American dream, the officials of Ford could not grasp the idea of Indian consumers, The biggest problem with ford was that most of the cars launched by them were copy-pasted from the American market to the Indian market, The cars that became a massive success in North America were later launched in Europe and eventually India, and then they realised that sales are nowhere near where they should be and they decided to exit the market. In Ford’s exit taxation wasn’t the only reason, the main reason was their sales were not good, and because they didn’t understand the Indian market. After looking at all these things we conclude that in India, Local Indian automobile companies are more successful than that of foreign manufacturers. There are 2 reasons behind this 1.Indian companies understand the Indian market very well, other companies just copy-pasted their successful models from abroad, Indian companies focuses just on the Indian market, that’s why they know the market, how price sensitive the people are in India and what all they want. 2.If we talk about Tata motors which has shown a big turnaround in the past few years, they have focused on R&D they even brought their own EV, right now the majority market share in EVs is owned by Tata motors Tata motors have benefited from their vertical integration where other companies of the TATA group work in the EV ecosystem where TATA elexy provides the designs for the EV’s and other vehicles This is where the group helps in to expand the automobile business, They work in harmony The growing automobile industry has created a demand for R&D and tech jobs that are on an all-time high.If we look at the data of the past few years, the highest hike has been in the tech sector and most job opportunities are to be found in this sector. Now if we look at the 2nd case of Toyota it’s quite different, the officials say that they can’t expand more in India, because taxes are too high and are different as compared to other countries, To a report by economic times- the on-road price of a Toyota fortune is 47 lakh, upon selling this car the profit to Toyota is merely 40,000 rupees, and the government receives about 18 lakh rupees in taxes including GST, CESS and other taxes on a sale of that 1 vehicle. This has 2 outcomes 1. The people who buy such expensive cars are very low, companies struggle to sell these expensive cars and upon selling they receive a profit of mere 40,000 rupees if we compare these margins to other countries Toyota being a very big company, they receive much better margins in other countries, The officials said that if the taxes were reduced then they will have much better margins leading to further expansion, but with the current margins they are not able to expand in India and not employing good manpower- Toyota 2.Honda is also restricting many of its models in India, they won’t bring out new models for India and they have the same saying as Toyota So one thing we get to know upon looking at the tax system in India is that the taxation system of India are very aggressive, Ideally, any country’s tax system should play a volume game meaning putting many smaller taxes so we can recover more money in the long term In India if we talk about cryptocurrency, if the govt would have put up a little tax then in the future the government could’ve earned more money but suddenly putting a 30% tax on crypto, the crypto market is on verge of extension, and all of the companies are shifting to Singapore, Dubai, so the income from these companies to the government would be quite low in the coming time, India should learn from Dubai and Singapore as they attract foreign investments to their countries. This is not just the case here, LTGC (Long term capital gain tax ) which is 10% that also is in the planning to be increased, and just like this the government is increasing GST in various other things, not focusing on the volume game, the government is focusing on short term revenue, and these things work out pretty well in the short term getting a good amount of collection, but in the long term, it sure has many impacts. If we look at the few past years we will find that Tata motors have been recovering pretty well, Maruti Suzuki has also been recovering pretty well but if we look at the profit margins of these companies, till now Tata motors are in loss but if we talk about the profit margins when Tata motors were in profit, they only had a profit margin of 3% The real problem is that if the profit margin of any company is less, then they don’t spend much on R&D, The government asked the manufacturers to fit 6 airbags in every car, this decision was made out to be compulsory, considering the cost of 1 airbag is 800 rupees, this is not big of a deal for companies but if the taxes are so high that there are less or no margins, that is where the companies try to cut out costs in making to save some margins. They often do cost-cutting This is the reason why a big company like Maruti Suzuki is not bullish on New vehicles like electric vehicles, they say that they will let things happen and after a while, they will make an entry because if their pilot project fails, or if it doesn’t become successful then they will directly incur losses because of the low margins. This does not apply to every company, if we talk about why Chevrolet failed in India? It would be because of low sales despite some models like Travera that were successful, but they didn’t have any service centers in India, Chevrolet hardly had any service centers in tier 1 cities, and tier 2 and tier 3 were not even on the list when the competition with Mahindra became tougher, the exit of Chevrolet was inevitable. We cannot say taxation Is the only reason for exiting India because many companies from outside are working both EFFECTIVELY AND EFFICIENTLY are working in India like Hyundai and Kia and if we look at the automobile industry from an investment point of view we must always check the profit margin of the company because we see this industry struggling a lot in the margin point of view, and if the profit margin is low, even a slight global problem would result in the company going to losses just as we have seen in the past with Tata motors because of JLR (JAGUAR LAND ROVER) And just because of the heavy import duties Tesla has refused to come to India, saying they would only come to India if they receive any tax reliefs, so this is also a barrier from abroad to come to this country, we can bet on EV’s lead by Tata motors on the future. CONCLUSION- In India, Indian Automobile Industries are quite successful compared to foreign companies, To attract more foreign investments india should consider reducing its aggressive taxation measures.

Introduction Importance of money The importance of money can be easily realised from the fact that almost all the economic, social, and other activities are carried and completed through the use of money. The importance of money is increasing day by day with the rapid changes in economic development and other overall requirements of humans. Importance of money to the consumers Money helps the consumer to spend his income in such a way so that he can get maximum satisfaction. Money has generalised purchasing power. The consumer can buy the necessary goods at reasonable rates to get maximum utility. Significance of money in production Money has made mass production possible. The large-scale production is necessary to meet the growing demand of the consumers. Mass production is possible with a division of labor that depends upon money. Importance in distribution At present the production process is not simple. The production is made through the various factors of production like land, labor, capital and organization. The raw material is purchased to make new things. But each factor does not contribute equally to the product. Therefore, the distribution of products equally among the factors of production is unjust. Significance of money in trade Money helps both local and foreign trade. Money is a means of making payments for the goods and services purchased. Money is the basis of the money market and capital market. Also in the trade, we need to hire people for promoting our business and money is required to make the payment against their services. Importance in industries The industrial progress is linked with money, which is the lifeblood of a business. Promotion of big companies, arrangement of loans to expand the business and the establishment of stock exchange markets depend upon money. All such thing enhances the importance of money more for us. Measures of money supply RBI presented four measures of money supply in its 1977 issues of RBI Bulletin, namely M1, M2, M3 and M4. Measures of M1 include: (a) Currency notes and coins with the public (excluding cash in hand of all commercial banks) [C] (b) Demand deposits of all commercial and co-operative banks excluding inter-bank deposits. (DD), Where demand deposits are those deposits which can be withdrawn by the depositor at any time by means of cheque. No interest is paid on such deposits. (c) Other deposits with RBI [O.D] M1 = C + DD + OD Where, Other deposits are the deposits held by the RBI of all economic units except the government and banks. OD includes demand deposits of semi government public financial institutions (like IDBI, IFCI, etc.), foreign central banks and governments, the International Monetary Fund, the World Bank, etc. Measures of M2: (I) M1 [C + DD + OD] (if) Post office saving deposits Measures of M3: (I) M1 (ii) Time deposits of all commercial and co-operative banks. Where, Time deposits are the deposits that cannot be withdrawn before the expiry of the stipulated time for which deposits are made. Fixed deposit is an example of time deposit Measures of M4: (I) M3 (ii) Total deposits with the post office saving organization (excluding national savings certificates). 3. High-powered money: High-powered money is money produced by the RBI and the government. It consists of two things: (a) currency held by the public and (b) Cash reserves with the banks. Explain the role of commercial banks and RBI with reference to regulating credit Reserve Bank of India also works as a central bank where commercial banks are account holders and can deposit money. RBI maintains banking accounts of all scheduled banks. Commercial banks create credit. It is the duty of the RBI to control the credit through the CRR, bank rate and open market operations. As banker's bank, the RBI facilitates the clearing of cheques between the commercial banks and helps the inter-bank transfer of funds. It can grant financial accommodation to schedule banks. It acts as the lender of the last resort by providing emergency advances to the banks. Introduction to RBI and its functions The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. The Central Office of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937. The Central Office is where the Governor sits and where policies are formulated. Though originally privately owned, since nationalisation in 1949, the Reserve Bank is fully owned by the Government of India. The Reserve Bank's affairs are governed by a central board of directors. The board is appointed by the Government of India in keeping with the Reserve Bank of India Act. -Appointed/nominated for a period of four years -Constitution: Official Directors-Full-time: Governor and not more than four Deputy Governors Non-Official Directors-Nominated by Government: ten Directors from various fields and two government Official Functions (I) Bank of issuing or currency: Every central bank of an economy is the sole authority to issue currency. The currency issued by the central bank is backed by minimum receive of assets like gold coins, gold bullions and foreign exchange etc. kept with the central bank. The Minimum Reserve System in India represent the minimum backing of Rs 200 crores by RBI out of which Rs 115 crores worth of gold and Rs 85 crores worth of foreign exchange securities are kept under RBI, the Monetary Authority of India. The authority of sole issue of currency has certain benefits like uniformity in currency, better monitoring and control over money supply and public trust and confidence in the currency issued and circulated. (ii) Banker to the banks: The central bank acts as a banker to the commercial banks in the following manner: Custodian of the cash reserves of the commercial banks (CRR). Lender of the last resort in the sense that if commercial banks fail to generate enough cash from its own sources it approaches the central bank as a last resort. The central bank in turn may grant loans and advances to the needy banks. The central bank also acts as central clearing house for the commercial banks. (iii) Banker to the government: As a banker to the government the central bank carries out all banking businesses on behalf of both the central government and the state governments. It maintains current account of the government for keeping cash balances and also making and receiving payments on behalf of the government. It provides loans and advances to the government. It also acts as financial advisor to the government. (iv) Custodian of the foreign exchange reserves of the nation: This function helps in maintaining stability in exchange rate as fixed by the government and also enforcing exchange control and other regulations for a favorable balance of payments for the economy. (v) Controller of credit and money supply: Credit control and control of money supply is probably the most important function of a central bank. Through various methods/instruments of credit control the central bank aims. (vi)Lender of last resort: The central bank acts as a lender of last resort by providing money to its member banks in times of cash crunch. It performs this function by providing loans against securities, treasury bills and also by rediscounting bills. This is regarded as one of the most crucial functions of the central bank wherein it helps in protecting the financial structure of the economy from collapsing. (vii)Clearing house for transfer and settlement: Central bank acts as a clearing house of the commercial banks and helps in settling of mutual indebtedness of the commercial banks. In a clearing house, the representatives of different banks meet and settle the inter-bank payments. Commercial banks and their functions The commercial bank is a financial institution which is primarily concerned with accepting deposits from public and lending to the public besides others. These banks operate both under the public as well private sectors. Some public sector banks include the State Bank of India, Punjab National Bank and Bank of India among others. The private sector commercial banks may include the banks namely HDFC bank, ICICI bank and HSBC bank among others. Functions (I) Acceptance of deposits: Every commercial bank accepts deposits from different sections of society including the general public, business entities and other institutions. Commercial banks accept following types of deposit: Current Account Deposits or Demand Deposits: This type of account is generally maintained by the business entities and money under these deposits are payable on demand of the depositor. The depositors are free to deposit or withdraw money from their account any number of times without any restrictions. Savings Account Deposits: This type of account is generally maintained by the households or individuals. The depositor can deposit or withdraw money deposited under this account only for a limited number of times. This account also attracts a nominal rate of interest payable to the account holder. Fixed Deposit or Time Deposit or Term Deposit: Under this account money is deposited for a fixed period and the rate of interest is relatively higher than other accounts depending on the tenure of the fixed deposit. (ii) Extending Loans and Advances: This is another important function of a commercial bank. This is also the main source of income of any commercial bank. Banks grant loans and advances out of the surplus money after keeping certain percentage of their total deposit called as reserves. Some important forms of loans and advances are ordinary loans, overdraft facility and discounting of bills of exchange. (iii) Creation of Credit: This function is derived from the earlier two functions of the commercial banks. This unique function has direct impact on the supply of money in an economy. (iv) Transfer of Funds: The banks provide the facility of fund transfer to its customers through the instruments of cheque, demand draft or electronic transfer from one place to another or one person to another. (v) Agency Functions: Banks receive and collect different types of payments on behalf of their clients through the instruments of cheques, drafts, bills and promissory notes etc. Banks also buy and sell gold, silver and other securities on behalf of their customers. (vii) General Utility Services: In modern days the banks also perform some very useful functions for the benefit of its customers and the economy like collection and publication of data, advisory functions, issue of lockers and underwriting of loans, shares and debentures issued by the government. Discuss about the role of RBI with respect to the latest Monetary policy The RBI is the central bank of India. It was established in 1935 under a special act of the parliament. The RBI is the main authority for the monetary policy of the country. The main functions of the RBI are to maintain financial stability and the required level of liquidity in the economy. The RBI also controls and regulates the currency system of our economy. It is the sole issuer of currency notes in India. The RBI is the central banks that control all the other commercial banks, financial institutes, finance firms etc. It supervises the entire financial sector of the country. Monetary policy is a way for the RBI to control the supply of money in the economy. So, these credit policies help control the inflation and in turn help with the economic growth and development of the country. Positive impact on economy It can promote low inflation rates. One of the biggest perks of monetary policy is that it can help promote stable prices, which are very helpful in ensuring inflation rates will stay low throughout the country and even the world. As inflation essentially makes an impact on the way we spend money and how much money is worth, a low inflation rate would allow us to make the best financial decisions in life without worrying about prices to drastically rise unexpectedly. It allows for the imposition of quantitative easing by the Central Bank. The Federal Reserve can make use of a monetary policy to create or print more money, allowing them to purchase government bonds from banks and resulting to increased monetary base and cash reserves in banks. This also means lower interest rates and, eventually, more money for financial institutions to lend its borrowers. It can lead to lower rates of mortgage payments. As monetary policy would lower interest rates, it would also mean lower payments home owners would be required for the mortgage of their houses, leaving homeowners more money to spend on other important things. It would also mean that consumers will be able to settle their monthly payments regularly—a win-win situation for creditors, merchandisers and property investors as well! Negative impact on economy It does not guarantee economy recovery. Economists who criticize the Federal Reserve on imposing monetary policy argue that, during recessions, not all consumers would have the confidence to spend and take advantage of low interest rates, making it a disadvantage. It is not that useful during global recessions. Proponents of expansionary monetary policy state that even if banks lower interest rates for consumers to spend more money during a global recession, the export sector would suffer. If this is the case, export losses would be more than what commercial organizations could earn from their sales. Its ability to cut interest rates is not a guarantee. Though a monetary policy is said to allow banks to enjoy lower interest rates from the Central Bank when they borrow money, some of them might have the funds, which means that there would be insufficient funds that people can borrow from them. What were the objectives behind the recent Monetary Policy by the RBI Price stability or control of inflation Achieving price stability has remained the dominant objective of monetary policy of Reserve Bank of India. It may however be noted that price stability does not mean absolutely no change in price at all. In a developing economy like ours where structural changes take place during the process of economic growth some changes in relative prices do occur that generally put upward pressure on prices. Therefore, some changes in price level or, in other words, a certain rate of inflation is inevitable in a developing economy. Thus, price stability means reasonable rate of inflation. A high degree of inflation has adverse effects on the economy. First, inflation raises the cost of living of the people and hurts the poor most. Therefore, inflation has been described as enemy No. 1 of the poor. Inflation sends many people below the poverty line. Secondly, inflation makes exports costlier and, therefore, discourages them. On the other hand, due to higher prices at home people are induced to import goods to a large extent. Thus, inflation has an adverse effect on the balance of payments. Thirdly, when due to a higher rate of inflation value of money is rapidly falling, people do not have much incentives to save. This lowers the rate of saving on which investment and economic growth depend. Fourthly, a high rate of inflation encourages people to invest in the unproductive assets such as gold, jewelry, real estate etc. Economic growth Promoting economic growth is another important objective of the monetary policy. In the past Reserve Bank has often been criticized that it pursued the objective of controlling inflation and achieving price stability and neglected the objective of promoting economic growth. Monetary policy can promote economic growth through ensuring adequate availability of credit and lower cost of credit. There are two types of credit requirements of businesses. First, they have to finance their requirements of working capital and for importing needed raw materials and machines from abroad. Secondly, they need credit for financing investment in projects for building fixed capital. Easy availability of credit at low interest rate stimulates investment and thereby quickens economic growth. Exchange rate stability The changes in capital inflows and capital outflows and changes in demand for and supply of foreign exchange, particularly US dollar, arising from the imports and exports cause great fluctuations in the foreign exchange rate of rupee. In order to prevent large depreciation and appreciation of foreign exchange rate Reserve Bank has to take suitable monetary measures to ensure foreign exchange rate stability. Owing to the fixed exchange rate system prior to 1991 the concern about foreign exchange rate had not played a significant role in the formulation of monetary policy. Today, the exchange rate of rupee is determined by demand for and supply of foreign exchange (say, US dollar). When there is mismatch between demand for and supply of foreign exchange, external value of rupee changes. Since export earnings and capital inflows which determine the supply of dollars had not risen adequately, mismatch between dollars and supply of dollars had arisen causing the depreciation of rupee as against the US dollar. This is too high current account deficit which is putting downward pressure on the exchange rate of rupee. The depreciation of rupee raises the costs of imports which adds to the inflationary pressures in the Indian economy. Therefore, reducing current account deficit (CAD) to the comfortable level is not only essential for exchange rate stability but also for controlling inflation and achieving price stability. Conclusion Money and banking are two basic pillars of any country's economy. Without these two assessments we cannot run any economy. Money: Money is the main substance for price paying nowadays. We use coins and notes as traditional money and we use different digital currencies like cryptocurrency, Bitcoins as the modern money. Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context. The main functions of money are distinguished as: a medium of exchange, a unit of account, a store of value and sometimes, a standard of deferred payment. Any item or verifiable record that fulfils these functions can be considered as money.

Introduction My name is ABHAY SINGH a meticulous student of grade XII. Upon writing the research paper on DISPOSAL OF E-BATTERIES I decided to write a research paper on THE SUCESS OF UPI TRANSACTIONS IN INDIA (AND WHY IS AMERICA BEHIND INDIA IN INNOVATIVE FINANCIAL TRANSACTIONS). India accounted for the largest number of real-time transactions in 2021 (48.6 billion). This figure was almost threefold that of the closest challenger, China (18 billion transactions in 2021) and almost seven times greater than the combined real-time payments volume of the world’s leading economies – the US, Canada, the UK, France and Germany (7.5 billion) This is a huge achievement for a developing country like India. THE SUCCESS OF UPI TRANSACTIONS UPI transactions cross Rs.80 Trillion in FY22 and are likely to touch Rs.100 Trillion. With nearly 6 billion transactions a month, valued at over Rs 10 lakh crore and touching 260 million users, India’s UPI has become the best- performing real-time ecosystem in the world. Digital payments have overtaken credit cards in India, and RBI now allows UPI payments through credit card. How did this happen? How did India become a first mover in these financial transactions? How did India overtake America in faster and more reliable financial transactions? US business magazine, Fortune carried a provocative headline: “As Silicon Valley fantasises about Web3.0, India leaps ahead on payments”. It reminded American readers that Bitcoin and Blockchain which promised to transform global commerce, are yet to deliver on their promises. Another much-hyped technology, Web3.0 which was to make it all happen, still remains a work in progress. India created a technology much before America that is now leading the segment as 10 more countries add to the list of countries that use UPI. With no peer competitor, UPI has thrived thanks to its convenience and ease of use. UPI is linked to an existing bank account and is compatible with bank apps or third-party apps like Paytm, BharatPay, or phone pay. Though many UPI users access the platform through their smartphones, with the launch of UPI 123, it can be used offline too. All that is required is a working feature phone. The astounding success and popularity of UPI have been possible due to the Reserve Bank of India’s vision, NPCI, and several fintech companies that leveraged UPI’s technology to build their apps over it. UPI has crossed a big milestone by crossing the $1-trillion mark in transactional value, It has set an example for the whole world. The pandemic acted as a catalyst in the last two years. Both the volume and value of UPI transactions have doubled in a year, which is testimony to its success in India. It is also indicative of India’s receptiveness to digital financial interventions and sets a firm foundation for further similar initiatives. UPI in Singapore and UAE The Singapore and UAE market has already been tapped into by RuPay cards and UPI can be used for transactions across various points of interest, including airport terminals. People traveling to Singapore and UAE can use UPI as it is expected to solve the scarcity of payment options due to currency conversion issues and the non-availability of international credit or debit cards hence breaking transaction barriers. Global partnerships and similar models The NIPL and NPCI have already established partnerships with institutions like the Royal Monetary Authority (RMA) of Bhutan and Network for Electronic Transfers (NETS), Singapore, for QR-based payments through UPI.14 • These partnerships will allow international traveler to use RuPay and UPI for transactions. • Products like FedNow by the Federal Reserve have taken inspiration from UPI for its real-time payments.15 The robustness of UPI in providing an interbank, open, and real- time system that is secure and fast will help it in becoming a global player and bringing more technological innovation into the payments space. It will help the NIPL in becoming a major player and partner with financial institutions in developing payments infrastructure, faster payment modes and real-time QR- based payment systems across these international markets. NIPL will aim at building strong relationships with various countries and helping them build card schemes and real-time payment systems. This might also help businesses to leverage India’s built platform for cross-border payments and enable international travelers to use domestic cards outside India. What sets UPI above its competitors? 1. Ease Of Transaction: This is the No.1 reason for UPI’s success. With UPI people don’t have to remember long bank account numbers or the Indian Financial System Code (IFSC) or Mobile Money Identifier (MMID) or any other detail. Simply remembering the name of the person and their linked phone number is enough. Users also need not download multiple apps since UPI works regardless of the payment service provider (PSP) app the merchant or their friends have. Acceptance at a huge number of merchant locations with easy, rapid, and frictionless payments, including the use of QR codes, is another critical aspect in UPI’s massive size. The growth is bound to accelerate further through NPCI’s new innovative features like AutoPay and Prepaid vouchers. 2. Speed: Earlier, before UPI was introduced (in 2016), the options available to transfer money were Net banking or mobile banking or through the bank branch. While the payment methods were easy, they took considerable time and involved many formalities or processes. One had to enter the customer ID, mobile banking ID, password, details of the transaction and the MMID if applicable, and then the IMPS transaction would be registered. In contrast, the UPI process is shorter—you just need to set a login PIN (app-specific) and a UPI PIN (interoperable). 3. Easier Refunds For Failed Transactions: For transaction failures, NPCI has devised a system through which a failed transaction is automatically reversed if money has been deducted but not credited to the recipient within one hour. While the refund in such cases takes a maximum of one hour, users can contact their bank in the rare cases when this does not happen. 4. Authentication: The UPI transaction PIN is the same regardless the UPI PSP app. This means that once the PIN is set while setting up UPI for the bank account, it remains the same regardless of the app that the user has, i.e. Google Pay, PhonePe, Bhim or others. This has eliminated the need to remember the PINs for separate apps. 5. Works With Any Device: The UPI service can be accessed in more than one way and even by people who do not use a smartphone. The RBI recently launched the UPI 123 service, which works fully offline. All one needs is a phone with calling functionality. What Makes UPI Work Smoothly UPI is structured on 4 pillars or four intermediaries Remitter Bank: This is the bank of the person who is initiating the money- sending transaction Remitter PSP: The payment service provider is the UPI app that the person who initiates the transaction uses Beneficiary Bank: The bank of the person receiving the money from the remitter Beneficiary PSP: The recipient’s UPI app. What led to the wider use of UPI and digital means of transactions. Pandemic: The report noted that Covid-19 forced people to transact via digital means, and hence, as a result, the UPI’s demographic appeal further widened to now include a larger number of older people who were previously sceptical about using it. Demand: The report noted that UPI and IMPS is now more embedded into the Indian financial and banking ecosystem, courtesy the many different banking and finance applications using it. Innovation: Several newer use cases of UPI were enabled through technological innovations of the market participants, noted the report. QR code payments, card-less cash withdrawal using UPI, e-RUPI, UPI service rolling out in the United Arab Emirates and Singapore, and other such innovations. WHY IS AMERICA BEHIND INDIA IN INNOVATIVE FINANCIAL TRANSACTIONS The United States, the epicenter of financial innovation and growth, has long been the undisputed global leader in finance. The leadership position may, however, see a swift change in the near future, given the tectonic shifts being witnessed in recent years led by India’s innovative Unified Payments Interface (UPI). It’s a stupendous success story that is revolutionising the payments industry in the country. On the global landscape, no other country has managed to accomplish as much as India has as achieved with UPI. This begs the question, why is the rest of the world lagging behind? Especially the US, the world leader in finance. We compared India’s instant payment options UPI with the US’ nearest options (FedNow and existing card systems). The FedNow system created by and routed through the Federal Reserve works like the real-time gross settlement system in India and is considerably different from the UPI, which routes itself through a separate non-profit body, the National Payments Corporation of India. However, it is the closest the US has come to achieving instant remote transactions. The disparities between UPI and FedNow illustrate the backwardness of the US system as compared to India. Another advantage that UPI possesses over FedNow is the visible transaction fee. UPI famously has no transaction fees and a Zero MDR (merchant discount rate) policy. This helps cut down transaction costs. On the other hand, FedNow encourages banks to collect more transaction fees. This implies a larger profit margin for banks, at the cost of consumers, to incentivise banks to participate in the FedNow framework and secure their interest above the interest of the consumer, whereas UPI’s removal of transaction fees is an indicator of its consumer-centric approach. People in India are very price sensitive, one major reason for the establishment of UPI was no hidden charges. Cards are expensive for consumers, with credit card companies charging as much as 3.5 percent per transaction, and people facing enormous interest rates, with no price regulations imposed on them by the government. This is reflective of the larger degree of bargaining power that the private sector possesses in the banking industry in the US versus India because the Indian government regulates and sets a basic price in the Indian market. UPI has disrupted the existing status quo of the payments industry in favour of consumers and the economy and played the role of a public good by removing transaction fees, having a zero-MDR policy, and diluting the control of bank portals over transactions. This has caused the share of credit and debit card companies control over transaction systems to shrink in India, providing a low-cost, convenient option to the consumer and opening up the space for other fin-tech innovations. The biggest drawback of FedNow and the card network with respect to UPI is the transactions are not seamless and cost-effectively. This requires cooperation between all the agents of the transaction. The RBI in India has been able to bring together many private agents to the same framework and streamline communication to help UPI’s growth. FedNow, however, limits itself to only one small aspect of the entire transaction and leaves the rest of the transaction to the private sector’s discretion. Similarly, in the case of cards, FedNow can only access the account in the issuing bank and does not create any pathway of communication between different banks. Thus, each bank retains its customer base and doesn’t have to cooperate with other banks. A lack of centralised action holds FedNow and card systems back from being able to consolidate a large and diverse payments sector with conflicting interests. Change is inevitable and it is time the US adopts consumer-centric solutions like UPI to maintain its hegemony because Credit cards and Debit cards will be on the verge of extension because of the new technologies coming up. With interest rates as high as 3.5 percent, people would opt for no interest rate options. Conclusion The report also forecast that the share of all transactions occurring via real- time instrument was expected to increase to 70.7 percent in 2026 from the present 31.3 percent. The report predicted that in 2026, business and consumer level benefits due to India’s real-time instant payment were expected to reach $92.4 billion, adding, that it will have an impact of $54.9 billion or 1.12 percent in India’s GDP. UPI has disrupted the existing status quo of the payments industry in favour of consumers and the economy and played the role of a public good by removing transaction fees, having a zero-MDR policy, and diluting the control of bank portals over transactions. Whereas the epicenter of financial innovation US is struggling because of its methods of financial transactions and of higher interest rates.

Aim of the Project: Rural development with special emphasis on the various challenges and its future prospects. Introduction Significance of rural development for the growth of the Indian economy. Rural development usually relates to the method of enhancing the quality of life and financial well-being of an individual specifically living in populated and remote areas. Traditionally rural development is centered on the misuse of land-intensive natural resources such as forestry and agriculture. But today, increasing urbanisation and change in global production, networks have transformed the nature of rural areas. Today, rural development still remains the core of the overall development of the country. It has become more than two-thirds of the country’s people is dependent on agriculture for their livelihood and one-third of rural India is still below the poverty line. Therefore, it is important for the government to be productive and provide enough facility to upgrade their standard of living. Rural development is a complete term that concentrates on the action taken for the development of rural areas improve the village economy. However, few areas that demand more focused attention and new initiatives are- Education Public Health and Sanitation Women Empowerment Infrastructure Development (E.g. electricity, irrigation, etc.) Facilities for agriculture extension and research Availability of Credit Employment opportunity Improvement of facilities Rural development is important not only for the majority of the population residing in a rural area but the growth of rural activities is necessary to stimulate the speed of overall economic expansion of the nation. Rural development is pretended to be noticeable importance in the country today than in the olden days in the process of the evolution of the nation. It is a strategy trying to obtain improved rural creation and productivity, higher socio-economic equality, and ambition, stability in social and economic development. Agriculture is still the major source of livelihood in the rural areas. More than two-thirds of India’s population depends on it. So, the development of agriculture will contribute to the betterment of rural areas and rural people. Majority of the poor people lives in rural areas. They do not have access to basic necessities of life like a proper meal, health facilities, sanitation, etc. The primitive task is to decrease the famine roughly about 70 percent of the rural population, implement sufficient and healthy food. Later, serve fair equipment of clothing and footwear, a clean environment and house, medical attention, recreational provision, education, transport, and communication. Indian Government Measures to Improve Agriculture Marketing In view, of the defective agricultural marketing system in India, it is absolutely essential that the marketing system is improved. Fortunately, the government in the country-both central and state are aware of the problem. It has taken a number of measures to improve the agriculture marketing in India. Before Independence, farmers while selling their products to traders experienced massive incorrect weighing and manipulation of accounts. The farmers who did not have required information about the prices and were forced to sell at low prices with no proper storage facility. Sometimes, the product could be sold at a weekly village market in the farmer’s village or in a neighbouring village. If these shops are not available, then the product is sold at irregular markets in a nearby village or town. So, the government took various measures to control the activities of the traders. Establishment of regulated markets -The initial step was to regulate the market and plan a clean, transparent and simple marketing strategy. This regulation helped both the farmers and the consumer. But it still needs to realize the full potential of rural markets. Uniform standard weights- In order to regulate the system of weights, the government passed the standard weights and measures act in 1958, making the use of government approved weights compulsory Storage and warehousing facilities- The second measure was the procurement process like transportation facilities, warehouse, cold storage, go downs, and the processing unit. However, the current infrastructure is inadequate to adhere to the growing demand and therefore needs to be improved. Marketing information- The third aspect is to decide on the fair price for the product. In the past, it has been a setback due to the unequal coverage of farmer members and the absence of a suitable link between marketing, processing cooperatives, and inefficient financial management. Presently, more than 3200 markets from all over the country National Agriculture market (NAM)- The present NDA government has started a scheme for setting up of a NAM. It aims at setting up of a common e-market platform to be deployed in selected regulated wholesale markets in various states. This is helping in bringing together different agriculture markets. State trading in food grains- State trading in food grains has been introduced to centralise the movement of food grains and also to assist the farmers in securing reasonable prices. State trading is carried out by the food departments of the central and state governments and also by the food corporation of India. Food corporation of India undertakes the purchase, storage, distribution and sale of food grains in the country. Rural development means an action-plan for the economic and social upliftment of rural areas. It aims at improving the quality of life of people living in villages. It focuses on the action for the development of areas that are lagging behind in the overall development of the village economy. In additions, the government has taken various steps to provide efficient transport management, better financial facilities, etc., to improve agriculture marketing. Role and progress of cooperative marketing Cooperative marketing societies have been started in the country with the purpose, in addition to other purposes, of marketing the surplus produce of the farmers. These societies collect the surplus produce of the members and nonmembers cultivators who are willing to sell their produce, process and grade them, store them, transport and sell them as and when it is advantages to sell. They help the farmers in getting fair price for their produce. Increases bargaining strength of the farmers- If the farmers join hands and form a cooperative society, they will be able to increase their bargaining strength because their produce will now be marketed by single agency. Easier and cheaper transport- This reduces the cost and botheration of transporting produce to the market. Sometimes societies have their own transport facilities. Storage facilities- The cooperative marketing societies generally have storage facilities. Thus, the farmers can wait for better prices; also, there is no danger to their crop from rains, rodents and thefts. Grading and standardisation- This task can be done more easily for a cooperative agency than for an individual farmer. For this purpose, they can seek assistance from the government or can even evolve their own grading arrangements. Market intelligence- The cooperatives can arrange to obtain data on market prices, demand and supply and other related information from the markets on a regular basis and can plan their activities accordingly. Two types of cooperative marketing structures are found in India. Under the first type, there is a two-tier system with primary societies at the base and the State society at the apex. Under the second type, there is a three- tier system with primary societies at the village level, Central marketing societies at the district level, and the State marketing society at the apex. At present, the cooperative marketing structure comprises 2,633 general purpose primary cooperative marketing societies at the Mandi level, covering all the important mandis in the country, 3,290 specialized primary marketing societies for oilseeds, etc., 172 district Central Federations and the National Agricultural Cooperative Marketing Federation of India Ltd., (NAFED) at the national level. NAFED is the apex cooperative marketing organization dealing in procurement, distribution, export and import of selected agricultural commodities. It can be concluded that cooperative marketing is very essential in promoting the agriculture produce because cooperative marketing reduces the cost of marketing and arranges good price to the participants of cooperative marketing. Rural credit Rural economy growth generally depends on the funds, from one interval to another interval, to understand high-rise productivity in non-agriculture and agriculture areas. The interval gap from sowing the seed to the understanding of post-production revenue is comparatively long, the farmers lend money from different fronts to match the primary investment on fertilisers, seeds, tools, and other personal expenses. Post-independence, traders and moneylenders took advantages of poor peasants and landless workers by lending money to them on huge-interest rates and also influencing their accounts and trap them. In the year 1969, India started social banking and different agencies who could provide funds to satisfy the requirements of rural credit. Later in the year 1982, National Bank for Agriculture and Rural Development (NABARD) was formed as an apex body to regulate and organize all the financial activities concerning rural financial system. This becomes more concrete when the Green Revolution came into begin and changed the credit system of the country, resulting in a productive lead of rural credit. Today, rural banking includes a set of various financial institutions, particularly, regional rural banks (RRBs), cooperatives, commercial banks, Self-Help group, and land development banks. They assign sufficient credit at cheaper interest rates. Challenges of rural development The Rural development generally refers to the process of improving the quality of life and economic welfare of people living in relatively isolated and sparsely populated areas. India is emerging as a major power economy and our cities and urban centers are beginning to display marks of affluence. Unfortunately, our development is lopsided. The rural hinterlands are not able to march in tandem with urban India. About 69% of the country’s total population continues to live in rural India There is no trickledown effect. The benefits of economic growth are not percolating to more than two–thirds of the people. The vital sectors such as agriculture, infrastructure development, and community and social services, and in rural development as a whole, our performance is not appreciable. Economic development in any country to a greater extent depends on rural development and it assists the economy to grow and sustain. In the rural area's agriculture is the main source of livelihood to the people. There is a direct relationship between agriculture production, income and the demand for industrial goods. People living in the rural areas have to struggle to earn wages or are forced to migrate to urban areas. The migration pattern varies with the region, opportunities and socio–economic status of the families. The poorest families, particularly the landless and marginal holders owning poor quality land tend to migrate with the entire family. Many tribal families migrate to cities as construction workers and return at the onset of the rains. Such migrations severely affect the quality of life, due to poor health, lack of education and social pressures leading to erosion of moral values. The major problems consist of the agriculture, the ownership of the land, the lack of cottage industries, lack of education social evils, death of animal, wealth, bad wealth and so on. The major problems that have been identified are, poverty, illiteracy, unemployment, homelessness and crime and violence. Poverty is the condition, when the individuals experience scarcity of resources that are necessary to sustain their living conditions appropriately. Illiteracy is when individuals do not possess the basic literacy skills of reading, writing and numeracy. Due to lack of literacy skills, they certainly experience problems in the implementation of tasks and activities. Unemployment is, when individuals do not have any job or work. Homelessness is a condition, when they do not have proper housing accommodation. In rural communities, it is unfortunate that women and girls are the ones, who in most cases experience criminal and violent acts. These include, verbal abuse, physical abuse, sexual harassment, neglect and discriminatory treatment. Therefore, in order to alleviate these problems and enhance the livelihoods opportunities of rural individuals, there have been formulation of measures and programs that have the main objective of promoting well-being of rural individuals. Prospects of rural development The primary area to improve should be providing employment in rural areas and improving the productivity of the agricultural sector. Often villages in our countries are not in sync with the urban areas because of bad connectivity. Eventually, this leads to segregation and a social divide between urban and rural areas. In essence, the infrastructure of rural areas should drastically improve. Even after so many years of Independence, stigmas like the caste system still have a grip on rural people. Quality education can help in achieving the goal of eradication of such social evils. The dwindling literacy rates in rural India, especially for females, are a major matter of concern. There is a need for land and technical reforms. Modern technologies like organic farming should be incorporated to improve outputs and profits. Lastly, people should be given access to easy credit and loans by improving the banking system in rural areas. It can be easily concluded, that for the development of an economy in both rural and urban areas need to be focused upon. Rural areas need drastic changes in areas like infrastructure credit availability, literacy, poverty eradication, etc. The schemes that are already in place with the aim of rural development need a new outlook and proper updating. Accordingly, the government needs to act for the upliftment of rural India. Conclusion Is the Indian government able to achieve the objectives behind rural development? India has taken various measures to bolster the rural economy but the efficacy of the schemes would depend upon their implementation. The prospects for rural development are encouraging in the current year and hoped that the general elections will increase attention to rural areas where the majority of voters live. The rural economy is an integral part of the overall Indian economy. As majority of the poor reside in the rural areas, the prime goal of rural development is to improve the quality of life of the rural people by alleviating poverty through the instrument of self-employment and wage employment programmes, by providing community infrastructure facilities such as drinking water, electricity, road connectivity, health facilities, rural housing and education and promoting decentralisation of powers to strengthen the Panchayati raj institutions etc. The various strategies and programs of the Government for rural development are discussed below: Wage Employment Programs: Anti-poverty strategies, like assistance to the rural poor families to bring them above the poverty line by ensuring appreciable sustained level of income through the process of social mobilisation, training and capacity building. Wage Employment Programs have sought to achieve multiple objectives. They not only provide employment opportunities during lean agricultural seasons but also in times of floods, droughts and other natural calamities. Food for Work Program: The Food for Work program was started in 2000-01 as a component of the EAS in eight notified drought-affected states of Chhattisgarh, Gujarat, Himachal Pradesh, Madhya Pradesh, Orissa, Rajasthan, Maharashtra and Uttaranchal. The program aims at food provision through wage employment. Food grains are supplied to states free of cost. Land Reforms: In an agro-based economy, the structure of land ownership is central to the wellbeing of the people. The government has strived to change the ownership pattern of cultivable land, the abolition of intermediaries, the abolition of zamindari, ceiling laws, security of tenure to tenants, consolidation of land holdings and banning of tenancy are a few measures undertaken. What should be the future course of action specially in the present situation of COVID - CRISIS? Maintaining a steady state of low-level or no transmission is important because, as the pandemic has spread, its public health and socioeconomic impacts have been profound, and have disproportionately affected the vulnerable. Many populations have already experienced a lack of access to routine, essential health services. Migrants, refugees, displaced populations, and residents of high-density and informal settlements, are at a particularly high risk from the interruption of already limited health and social services. Everyone has a crucial role to play in stopping COVID-19- Individuals must protect themselves and others by adopting behaviours such as washing hands, avoiding touching their face, practicing good respiratory etiquette, individual level distancing, isolating in a community facility or at home if they are sick Governments must lead and coordinate the response across party lines to enable and empower all individuals and communities to own the response through communication, education, engagement, capacity building and support. Governments must give the health system the support it needs to treat patients with COVID‑19 effectively and maintain other essential health and social services for all. It can be easily concluded, that for the development of an economy in both rural and urban areas need to be focused upon. Rural areas need drastic changes in areas like infrastructure, credit availability, literacy, poverty eradication, etc. The schemes that are already in place with the aim of rural development need a new outlook and proper updating. Accordingly, the government needs to act for the upliftment of rural India.

Stock market in general refers to several exchanges in which the shares of publicly held companies are bought and sold. These markets allow for price discovery for shares of corporations and serve as a barometer for the overall economy. Buyers and sellers are assured of a fair price, high degree of liquidity, and transparency as market participants compete in the open market. How the stock market works in India Stock market investing is one such lucrative option that rewards investors with high returns over the years. But to make this kind of return, it is important to understand how the stock market works. Most of the trading in the Indian stock market takes place on its two stock exchanges; The Bombay Stock Exchange (BSE) and The National Stock Exchange (NSE). The BSE has been in existence since 1875.3 The NSE, on the other hand, was founded in 1992 and started trading in 1994.4 However, both exchanges follow the same trading mechanism. Market Indexes The two prominent Indian market indexes are Sensex and Nifty. Sensex is the oldest market index for equities; it includes shares of 30 firms listed on the BSE. It was created in 1986 and provides time series data from April 1979, onward. Another index is the Nifty, which includes 50 shares listed on the NSE. It was created in 1996 and provides time series data from July 1990, onward. The stock market allows the investors to trade in shares bonds and derivatives which is facilitated by stick exchanges. It acts as a platform and that connects buyers and sellers and involves four key participants: Securities and Exchange Board of India (SEBI): The overall responsibility of development, regulation, and supervision of the stock market rests with the Securities and Exchange Board of India (SEBI). Its primary job is to ensure the Indian stock market functions smoothly with transparency, so that general investors can invest without worries. It also protects the interests of all the participants and ensures that no one gets any undue advantages. The companies (listing their shares), must register with SEBI and The Bombay Stock Exchange, The National Stock Exchange, or regional exchanges before trading. Exchanges, companies, brokerages, and all other participants must abide by the guidelines laid down by SEBI as it enjoys vast powers of imposing penalties on market participants in case of a breach. Stockbrokers: Stockbrokers are the members of exchanges who are the intermediaries and execute the buy and sell instructions from investors in exchange for fees. In the Indian setup, investors need to trade through broking houses/brokers, who act as facilitators. There two types of brokers: Full-service brokers – These are the traditional brokers who provide a wide variety of services ranging from buying and selling of shares, investment advice, financial planning, portfolio updates, share market research and analysis, retirement and tax planning, and more. These brokers will offer you personalised investment services with individualised recommendations to suit your needs and financial goals. Discount brokers – These are online brokers who offer no-frill stockbroking accounts. They are known for providing the necessary trading facility at the least possible cost but no personalised services. Investors and traders: The remaining two participants are investors and traders. Investors buy company shares to hold them for the long-run and generate a source of income from it. Traders are the opposite of investors and get involved in buying and selling of equities. Investors are motivated by company performance, long-term growth opportunities, dividend payouts, and other such factors. Traders, in contrast, are influenced by price movement and demand and supply factors. To further understand how the share market works, the next thing is to learn about primary and secondary markets. Primary markets: The primary market is where securities are created. It's in this market that firms sell new stocks and bonds to the public for the first time. An initial public offering, or IPO, is an example of a primary market. These trades provide an opportunity for investors to buy securities from the bank that did the initial underwriting for a particular stock. An IPO occurs when a private company issues stock to the public for the first time. An IPO opens for a particular period, within this window investors can bid for the shares and buy them at issue price listed by the company. Once the subscription period is over, the shares are then allotted to the bidders. The companies are then called public because they have given out their shares to the public. For this the companies need to pay a fee to the stock exchanges and are required to provide all importin details about the company’s financial information such as annual reports, balance sheets, etc. Secondary markets: The last step involves listing the company in the stock market, which means that the stock issued during the IPO can now freely be bought and sold. The secondary market is where the shares of a company are traded after being initially offered to the public in the primary market. Once listed in the stock exchanges, the stocks issued by companies can be traded in the secondary markets. This buying and selling of stocks listed on the exchanges is done buy stockbrokers of brokerage firms. Your broker passes on your buying request to the stock exchange, which then compares it with a seller. Once the trade is fixed and the price agreed, the exchange informs the broker about it, and the transaction takes place. Meanwhile, the bourse confirms information regarding the buyer and the seller so that parties don’t default. The actual transfer of stocks then takes place to complete trading. The Bottom Line Emerging markets like India are fast becoming engines for future growth. Currently, only a very low percentage of the household savings of Indians are invested in the domestic stock market, but with gross domestic product (GDP) growing at 7% to 8% annually for the last few years, though in the 6% range for 2018 and 2019, and a stable financial market, we might see more money joining the race. Maybe it's the right time for outside investors to seriously think about joining the India bandwagon.