Indian Economy: News and Discussion

Haldilal

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another_armchair

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Ya'll Nibbiars there's a Deep tech startups in Mumbai Logicloop, which is leveraging technology to help brands maximise business potential by using digital solutions that combine creativity, deep analytics, and data-driven strategies. Possibly a soonicorn.
Capture customer behaviour clandestinely and create marketing funnels out of them. This is the top notch stuff everybody is doing and are charging millions for this.

There were another bunch of IIT'ians who approached us saying we mine data from Facebook and build user profiles. We get their likes, movies, products purchased, flashed on their profiles, travel history etc and help marketers target/re-target users on Facebook. They offered a complete profile history at Rs. 50 per user. :rofl:

Aadha se jyada desi crowd sales aur margin he kamane ka aukaat rakhta hai.
 

Haldilal

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Capture customer behaviour clandestinely and create marketing funnels out of them. This is the top notch stuff everybody is doing and are charging millions for this.

There were another bunch of IIT'ians who approached us saying we mine data from Facebook and build user profiles. We get their likes, movies, products purchased, flashed on their profiles, travel history etc and help marketers target/re-target users on Facebook. They offered a complete profile history at Rs. 50 per user. :rofl:

Aadha se jyada desi crowd sales aur margin he kamane ka aukaat rakhta hai.
Ya'll Nibbiars they have raised million dollars of funding and are competing Logicloop Digital competes with Logicserve Digital, Iprospect, Performics, AdGlobal360, etc., Logicloop Tech competes with the likes of Nelito Systems, Collabera Technologies, Sparx IT Solutions, Mind IT System, and ValueCoders, among others
 

Abdus Salem killed

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It is a BS that low cost manufacturing alone provides mass employment. This is a myth propagated by the CCP to put their citizens into perpetual slavery. India must be careful not to get sucked into this BS. Low cost manufacturing means terrible wages and slave-like working conditions of millions of people plus gigantic environmental destruction. Decent manufacturing jobs should be welcomed but mass volume, low quality junk producing manufacturing jobs which forms the majority of the Chinese miracle needs a lot of thought as to whether the quality of life destruction from these activities is a wise thing to do for all of humanity. We are not governed by a transnational criminal organization like the CCP. We are different and we need to think a bit more carefully.
Services can supply mass employment and so can certain value added agriculture like fishing and allied industries. The US with a large population relies primarily on services for mass employment.
Low cost manufacturing is the only way forward for India it will employ millions
 

Haldilal

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yes, it happens.
our retail payments alone is 5.7 trillion $ last fiscal. Which is almost twice of our GDP number.

I am still trying find the correlation.
Ya'll Nibbiars why are you suprised by that?.
 

Bhumihar

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yes, it happens.
our retail payments alone is 5.7 trillion $ last fiscal. Which is almost twice of our GDP number.

I am still trying find the correlation.
No brainer really.

I get 40000 salary I pay 10000 as Rent the landlord pays 5000 to grocery shop owners, the shop owner buys shoes from a shop and it costs 1000 the shop owner further pays and the cycle continues.
The same amount travels to multiple folks and registers online when done through UPI
 

FalconSlayers

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yes, it happens.
our retail payments alone is 5.7 trillion $ last fiscal. Which is almost twice of our GDP number.

I am still trying find the correlation.
2 times is pretty obvious, article says 4 times and that too online transactions only.
 

ezsasa

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Ya'll Nibbiars why are you suprised by that?.
No brainer really.

I get 40000 salary I pay 10000 as Rent the landlord pays 5000 to grocery shop owners, the shop owner buys shoes from a shop and it costs 1000 the shop owner further pays and the cycle continues.
The same amount travels to multiple folks and registers online when done through UPI
Yup, initially i assumed retail is counting only the last leg of product purchase.

yet to get find the exact RBI’s definition of retail paymentS.
 

Haldilal

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@Haldilal @Bhumihar
Here's RBI data, let me know what you think.
Monthly numbers in crores.
View attachment 102738
Ya'll Nibbiars Retail Digital Payments saw growth. And In the past year, retail digital payments have seen huge growth as more people gravitated towards digital modes of transaction owing to fear of contracting the virus and convenience. Data from the Reserve Bank of India (RBI) suggests, a slowdown in wholesale transaction value, but volume growth withstood the pandemic. Transactions through National Electronic Funds Transfer NEFT, National Electronic Toll Collection NETC, and the Bharat Bill Payment System BBPS registered acceleration over the previous year. Other retail payment platforms such as Unified Payments Interface UPI, Immediate Payment Service IMPS, and National Automated Clearing House NACH saw a near doubling of both transaction volume from 12.5 billion to 22.3 billion, and value from Rs 21.3 trillion to Rs 41 trillion between FY2020 and 2021.

1619632622-0472.jpg
 

another_armchair

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Bat munchers begging for another round of spanking.

Target Mi and similar appliances brands in India. Seal their factories citing some sanitary rule and hold off all their supplies from hitting the shop shelves.

Hua toh hua.

The ‘shrimp’ has acquired a bitter political taste in the troubled waters of India-China relationship. Both sides are headed for a major diplomatic showdown over China turning down Indian shrimps alleging that the packaging carried Covid-19 virus. India has protested, saying the allegations have no “scientific basis”, nor has China shared test reports.

India is the largest exporter of shrimps in the world and China is the second biggest importer of seafood from India, of which over 46% are frozen shrimps. The biggest exporters are in Andhra Pradesh, besides in Gujarat and Odisha. The trade row has been on since November 2020 when China placed phytosanitary restrictions on Indian shrimps, which has taken up with relevant committees of the World Trade Organisation. But matters escalated a few notches last week, when China withheld 1,000 containers of Indian shrimp, saying it had detected SARS-COV 2 nucleic material in the outer packaging, mostly polythene and corrugated boxes.

India has strongly contested the Chinese position, citing detailed studies on how the virus does not survive on packaging material. The Indian side also sought technical reports from China, which were not shared, sources told ET.


Now, from the Marine Products Export Development Authority (MPEDA) and the Commerce Ministry to the Ministry of External Affairs are preparing to take up the issue strongly– both diplomatically as well at WTO alleging distorted trade tactics by China, ET has gathered.

“China is invoking unilateral decisions on Indian seafood exporters on arguments that lack evidence and scientific basis. MPEDA has already requested the Department of Commerce to raise this issue in the WTO to expose the trade distorting tactics of the Chinese”, MPEDA said in response to queries from ET. “So far, 23 units have been indefinitely suspended by General Administration of Customs, China (GACC) from exporting seafood consignments to China alleging the SARS-COV 2 virus nucleic material on the packaging material of the consignments shipped by those units. Another 17 units were suspended temporarily for a week citing the same reason,” disclosed MPEDA.

Further, the Chinese side has shared no details of findings despite repeated requests. “GACC has neither shared the sampling and testing protocols followed to conduct such tests for nucleic acid material, nor the test results in respect of those alleged detection despite repeated requests placed by India during bilateral meetings as well as through Embassy of India, Beijing. China has been applying those trade restrictions since November 2020 and it has seriously affected our export trade with that country”, MPEA added.According to Indian authorities, indefinite suspension by GACC is also in violation of its own regulation of September 2020, which stipulates a maximum of four weeks suspension in the event of detection of Covid-19 nucleic material.

As a result of these non-tariff barriers, shrimp exports to China have declined by 34% in quantity and 32% in USD earnings this year. The stakes for India are high since China is a big market for Indian shrimp industry.

The president of the All India Sea Food Association, Jagdish Fofandi was, in fact, in New Delhi on Friday to apprise the ministries of fisheries and commerce on the huge impact of the China decision. “We have informed the government of the huge financial impact of this on both the industry and the livelihood of fishing community,” Fofandi told ET
 

ezsasa

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..
In China, the world’s largest mobile payment market, the value of transactions reached 347 trillion RMB (US$53.04 trillion) in 2019 — almost four times the country’s GDP. The total value of transactions skyrocketed in 2020 due to the pandemic.

Meanwhile, since starting the project in 2014, the People’s Bank of China has moved rapidly towards launching the world’s first major sovereign digital currency — the digital yuan. This should be an easy sell to consumers used to instant digital cash, enabling the government to fine-tune domestic monetary policy by directly controlling the amount of non-cash funds available to the economy. There are already real-world digital yuan operations in major cities, including Shenzhen, Chengdu and Suzhou, where customers obtain digital yuan via banks.

But the rest of Asia is lagging.

what is used for inter business transactions? mobile payments or some sort of cheque?
 

Haldilal

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Ya'll Nibbiars

images - 2021-07-31T154325.243.jpeg
 

Haldilal

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Ya'll Nibbiars

RBI introduced framework for entry of private players for retail payments in August 2020. The framework enables private companies to apply for NUE license and create a retail payment system against UPI. The Banking and Payments Senior Analyst at GlobalData, comments: With rising digital payments, granting NUE license to private players will ease payment settlement burden on NPCI and stimulate competition.

Unlike NPCI, which is a non-profit entity, NUE will be for profit, enabling entities to charge fees for online transactions. This has attracted big Indian business houses like Reliance and Tata, as well as global giants. And in this regard, on 31 March 2021 six consortiums led by Reliance Industries, Tata Group, Axis-ICICI Bank, Paytm, India Post, and fintech startup iserveU submitted their applications to the RBI for license. For example, the consortium led by Axis and ICICI Bank include include BillDesk, Pine Labs, Mastercard and Visa. Similarly, Google and Facebook are part of the consortium led by Reliance Industries.

The advent of UPI payment platform in 2016 accelerated digital payments adoption in India, which is predominantly cash driven. UPI has been a game changer with large volume of day-to-day cash transactions now shifting to UPI based payments. It allows consumers to make payments conveniently and quickly from mobile phone using recipients mobile number or QR code without sharing any financial data.

According to NPCI, UPI transactions grew exponentially from INR69.5bn (US$951.52m) in FY2017 to INR41.0 trillion (US$561.57bn) in FY2021. While transaction volume increased from 17.9 million in FY2017 to 22.3 billion in FY2021. To address the risk concentration of such large number of transactions on only one platform and to offer options to consumers, the central bank invited private companies to bid for license to set up a new payment platform.

images - 2021-07-31T154953.393.jpeg
 

Haldilal

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Ya'll Nibbiars The deputy governor of the Reserve Bank of India RBI announced that it's working on a phased implementation strategy for the issuance of a central bank digital currency CBDC, including a possible pilot project in the retail segment. A retail CBDC is a digital version of a fiat currency that’s available to the general public. It will be part of the payments ecosystem, which already consists of banks and payment service providers PSP's. One significant issue in the design of a retail CBDC is the role of the private sector.

A retail CBDC issuance will include the introduction of public services needed for customer on-boarding, apart from systems for due diligence, compliance with anti-money laundering laws, transaction authorization and maintenance of cyber security. Such activities would mark a departure from existing central bank functions that focus on monetary stability and do not envisage direct interaction with retail users. A recent report by the Vidhi Centre for Legal Policy, titled A Central Bank Digital Currency for India: Proceeding with Cautious Optimism, notes that globally many central banks are exploring a retail CBDC that involves private-sector participation through a two-tiered model.

Under this model, a central bank develops the core CBDC system and the private sector takes up operational tasks. This is in contrast with a direct model, where the central bank is responsible for all aspects of CBDC issuance and its access to end-users.
Under both models, a CBDC remains a direct central bank liability. While a direct model will allow the central bank to exercise more control over the CBDC design, it will also require the bank to assume a more active role in payment services for CBDC transactions, raising questions over the institutional capacity of a central bank to undertake such activities. In economies like India’s that have well developed digital-payment markets, this may lead to the central bank competing with PSPs, which would raise concerns of disintermediation.

The two-tiered model seeks to address these concerns. It has been adopted by the central bank of the Bahamas that launched its CBDC Sand Dollar in 2020. Financial intermediaries in the private sector banks, money-transmission businesses, PSPs, etc provide wallet services for holding and using the Sand Dollar issued by the central bank. A CBDC pilot project launched by the People’s Bank of China in 2020 relied on a similar model, whereby it issued its e-CNY China’s CBDC through ‘authorized operators’ such as commercial banks and licensed non-bank payment institutions. These authorized operators manage wallets, authenticate e-CNY, and develop ‘platforms’ to enable operator-specific features. Such operators undertake customer due diligence and on-boarding services. In the UK, the Bank of England envisages private sector intermediaries as developers of ‘overlay services’ that can meet future payment needs by enabling programmable money, smart contracts and micro-payments. Proponents of this model argue that private-sector PSPs are “best placed to use their expertise" to promote innovation and integrate payment services with other financial products and platforms.
In India, to leverage the potential of the country’s payments sector, RBI ought to consider a two-tiered model for its retail CBDC; that is, it should provide the core system and leave operational and consumer-facing activities to regulated entities in the private sector CBDC intermediaries. This will enable RBI to focus on core activities such as guaranteeing the stability of the digital currency’s value, regulating its intermediaries, and overseeing the overall security of the system.

Some issues, however, require special consideration. RBI will have to develop oversight and risk management functions vis-à-vis CBDC intermediaries, and establish systems to respond to potential CBDC disruptions that could result from operational failures or cybersecurity breaches. Further, since a CBDC will represent a direct claim on RBI, some form of an operational role for it will have to be planned. The Bank for International Settlements notes that an important aspect of CBDC design is the role of the central bank and private sector in the maintenance of a digital ledger for recording transactions. The central bank can opt to either run the core infrastructure that supports record-keeping and related tasks or delegate these to CBDC intermediaries. Both these approaches will have to take into account prudential risk management, data governance, security-risk mitigation and the impact on competition in India’s payments market. The adoption of a two-tiered model would also call for appropriate regulatory architecture designed to empower RBI to regulate CBDC intermediaries and oversee the soundness and operational resilience of such private entities, while ensuring overall financial stability and the safety of customer funds. Issues related to the interoperability of CBDC services with other payment solutions will have to be examined closely, as also the implications of data protection laws.

A two-tiered model based on public-private partnerships would present us an opportunity to leverage our private-sector potential to engage customers while promoting CBDC-oriented innovation in the payments sector. At the same time, it would rely on RBI to regulate and supervise this digital currency in a way that will generate the trust that underpins the transactional function of money.
 

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