#How is GDP calculated in India

[nikkiadderley88]

Learn what GDP means, how it's calculated, and why it's a crucial economic indicator for India's economic health and policy-making.

[smayrafashion]

Top Commercial Property in Delhi: A Guide to Investing Wisely

Delhi is a vibrant capital city of India, and a major center of business trade, politics, and many cultures. With its strategic location, Strong infrastructure, and growing economy, Delhi offers profitable opportunities for investors in this commercial property market. This blog helps you understand how FullinSpace offers you insights into the top commercial properties in Delhi and tips for making wise investment decisions.

Strategic Location:-Delhi is a central location and connected to major cities through road, rail, and air making it a prime business destination. A Strong public transportation system, including the Delhi Metro, enhances accessibility. Economic Growth:- Delhi boosts a diverse economy with significant contributions from different sectors like IT, retail, manufacturing, real estate(commercial property), and services. The city's GDP growth rate and the increasing number of startups, properties, and multinational companies underline its economic potential. Infrastructure Development:- Continuous infrastructure development, including new expressways, business parks, and commercial complexes, attracts investors. Initiatives like the Delhi-Mumbai Industrial Corridor (DMIC) and Smart City projects further boost its appeal. Quality of Life:- Delhi offers a high quality of life regarding with excellent healthcare, education, and recreational facilities. This attracts a talented workforce, making it an ideal location for commercial properties. Top Commercial Areas in Delhi Connaught Place (CP):-Connaught Place, often called CP and Rajiv Chowk, is one of Delhi's most iconic commercial hubs. Known for its Georgian-style architecture, CP houses numerous multinational corporations, banks, retail outlets, and restaurants. Its central location of Delhi Cyber City, Gurugram:- Although technically located in Gurugram (Gurgaon), Cyber City is part of the Delhi National Capital Region (NCR) and is easily accessible from Delhi. It is a major IT and business hub, home to numerous Fortune More than 500 companies. Modern infrastructure and world-class amenities make it an attractive investment option. Saket District Centre:- Saket District Centre is a prominent commercial complex in South Delhi. It is known for its high-end retail spaces, office buildings, and proximity to upscale residential areas. The presence of malls like Select Citywalk and DLF Place adds to its commercial appeal. Nehru Place:- Nehru Place is a major commercial and business center in South Delhi, renowned as a hub for IT and electronics. It is a bustling area with numerous office spaces, computer hardware shops, and software service providers. The upcoming Nehru Place redevelopment project aims to enhance its infrastructure further.

Aerocity:- It is Located near the Indira Gandhi International Airport, Aerocity is a rapidly developing commercial and hospitality district. It is home to several international hotels, office spaces, and retail outlets. Its strategic location and modern amenities make it an emerging hotspot for businesses. Tips for Investing Wisely in Commercial Property in Delhi Investigate and Extraordinary Care:- Sometime recently when you make any venture, FullinSpace the best commercial property accomplice of yours has awesome information and investigates the showcase patterns, property costs, and potential for development in the range. Lock in with genuine bequest specialists and counsel property advisors to pick up insights.

Location Things:- Area is a basic calculation in a commercial genuine domain. Select an area that offers a great network, vicinity to key trade areas, and conveniences like transportation, eateries, and inns. Prime areas may come with higher costs but offer way better returns in the long run.

Evaluate the Foundation:- Evaluate the foundation and offices accessible in the range. See for properties with advanced conveniences, sufficient stopping space, solid control supply, and progressed security frameworks. Properties in well-developed ranges tend to draw in high-quality tenants.

Stay Overhauled:- Keep overhauled with the most recent advertising patterns, government arrangements, and financial improvements. Subscribe to genuine domain pamphlets, go to industry workshops, and arrange with experts to remain informed.

Leverage Proficient Offer assistance:- Lock in the administrations of genuine domain experts, property supervisors, and legitimate advisors to explore the complexities of commercial genuine bequest speculation. Proficient direction can offer assistance you make educated choices and maximize returns. Conclusion FullinSpace gives extraordinary prospects for development and returns helping you in deciding where to contribute in the commercial genuine domain in Delhi. Delhi is a prevalent goal for business visionaries and speculators due to its profitable area, solid foundation, and flourishing economy. You can benefit from Delhi's vigorous commercial genuine bequest advertising by making educated speculation choices, evaluating the advertised flow, and enrolling the help of specialists. Making shrewd choices and keeping up with the current patterns is basic for victory in contributing, in any case of involvement level.

[stockmarketknowledge]

What are the factors that influence the prices of any stock?

The price of a stock can be influenced by a multitude of factors, including:

Company Performance: The most fundamental factor is how well the company is performing financially. This includes revenue growth, earnings, profit margins, and other key financial metrics.

Industry Trends: The performance of the industry in which the company operates can have a significant impact on its stock price. Positive industry trends can lift all companies within that sector, while negative trends can drag them down.

Market Sentiment: Investor sentiment and market psychology play a crucial role in determining stock prices. Positive news about a company or the broader market can lead to increased buying activity, driving prices up, while negative news can lead to selling and price declines.

Economic Indicators: Macroeconomic factors such as interest rates, inflation, GDP growth, and unemployment can influence investor sentiment and, consequently, stock prices.

Company News and Events: Specific events related to a company, such as product launches, mergers and acquisitions, earnings reports, management changes, and legal issues, can cause significant fluctuations in its stock price.

Supply and Demand: The basic economic principle of supply and demand also applies to stocks. If more investors want to buy a stock than sell it, the price will increase, and vice versa.

Market Speculation: Speculative activities by investors, such as short-term trading strategies, can lead to price volatility in the stock market.

Government Policies and Regulations: Changes in government policies, regulations, or tax laws can impact certain industries or companies, influencing their stock prices.

Global Events: Geopolitical events, natural disasters, wars, and other global occurrences can affect investor confidence and market stability, leading to fluctuations in stock prices.

Technological Advancements: Innovations and advancements in technology can disrupt industries and create opportunities for certain companies, impacting their stock prices positively or negatively.

One of the best way to start studying the stock market to Join India’s best comunity classes Investing daddy invented by Dr. Vinay prakash tiwari . The Governor of Rajasthan, the Honourable Sri Kalraj Mishra, presented Dr. Vinay Prakash Tiwari with an appreciation for creating the LTP Calculator.

LTP Calculator the best trading application in India.

You can also downloadLTP Calculator app by clicking on download button.

These factors, among others, interact in complex ways to determine the price of a stock at any given time. Investors often analyze these factors to make informed decisions about buying, selling, or holding stocks in their portfolios.

[stockmarketanalysis]

Sensex: Understanding the Pulse of the Indian Stock Market

Have you ever wondered why the news often mentions the Sensex going up or down? Sensex, the heartbeat of India’s stock market, reflects the country’s economic health. But what exactly is it, and why should you care? In this article, we'll break down Sensex into simple terms, helping you understand its importance and how it affects your financial future.

1. What Is Sensex?

Sensex stands for the Sensitive Index, representing the 30 largest and most actively traded stocks on the Bombay Stock Exchange (BSE). It reflects the overall performance of the Indian stock market, showing whether the market is bullish (rising) or bearish (falling).

2. History of Sensex

Sensex was introduced in 1986 by the Bombay Stock Exchange (BSE). It was India’s first stock market index, designed to provide an overview of the stock market’s performance. Since then, Sensex has become a key indicator of the country’s economic health.

3. How Is Sensex Calculated?

Sensex is calculated using the Free-Float Market Capitalization method, which considers only publicly traded shares. Here's the formula:

Sensex = (Total Market Cap of 30 Companies / Base Value) × Base Index Value

This calculation ensures the index reflects real market changes rather than company-specific fluctuations.

4. Companies in Sensex

The Sensex includes 30 of India’s top companies across various sectors such as banking, technology, and energy. These companies are carefully selected based on market performance, size, and liquidity.

5. Why Is Sensex Important?

Sensex serves as a barometer of India’s economic health. Investors, traders, and even policymakers monitor Sensex to gauge market trends, investor confidence, and the country’s overall economic environment.

6. How Does Sensex Affect the Economy?

A rising Sensex often indicates a growing economy, encouraging investment and business expansion. Conversely, a falling Sensex might signal economic slowdown, prompting caution in business and investment activities.

7. Factors Influencing Sensex

Several factors can cause fluctuations in Sensex:

Economic Data: Inflation rates, GDP growth, and employment data.

Corporate Earnings: Strong company earnings push Sensex up.

Global Events: Events like oil price changes or geopolitical tensions.

Government Policies: Tax policies, interest rates, and reforms.

8. Bull vs Bear Markets

Bull Market: When Sensex consistently rises, signaling positive investor sentiment.

Bear Market: When Sensex falls, showing negative market sentiment and economic concerns.

9. How to Invest in Sensex

Investing in Sensex is straightforward:

Open a Demat Account: Required for trading stocks.

Choose Stocks or Index Funds: Invest in Sensex stocks or funds tracking the index.

Monitor the Market: Stay updated on Sensex trends to adjust your portfolio.

10. Sensex vs Nifty: What’s the Difference?

Sensex: Tracks 30 companies on the BSE. Nifty: Tracks 50 companies on the National Stock Exchange (NSE).

While both measure market performance, their composition and the exchanges they track differ.

11. Risks Involved in Sensex Investment

Stock market investments come with risks like:

Market Volatility: Sudden price swings.

Economic Slowdown: Impacting company profits.

Global Events: Trade wars, pandemics, etc.

12. Sensex and Government Policies

Government actions like tax reforms, interest rate changes, and trade policies can directly impact Sensex. A positive policy can boost the market, while restrictive measures can cause a decline.

13. Impact of Global Events on Sensex

Global events such as international trade deals, wars, and oil price fluctuations can cause Sensex to rise or fall, reflecting the interconnected nature of global economies.

14. Tracking Sensex Performance

You can track Sensex performance through:

Financial News Channels: Real-time updates.

Stock Market Apps: Instant notifications and historical data.

BSE Website: Official market updates and indices.

15. Future of Sensex

As India’s economy continues to grow, experts predict Sensex will keep rising, reflecting the country’s expanding market and investor confidence.

Conclusion

Sensex is more than just a number—it’s the pulse of India’s economy. Understanding its workings can help you make informed investment decisions, stay ahead in financial planning, and appreciate the country’s economic growth.

FAQs About Sensex

1. What is the full form of Sensex? Sensex stands for the Sensitive Index, representing the top 30 stocks on the BSE.

2. How often is Sensex updated? Sensex updates every second during stock market trading hours.

3. Can beginners invest in Sensex? Yes! Beginners can invest through index funds or mutual funds tracking Sensex.

4. What is the difference between Sensex and BSE? BSE is the Bombay Stock Exchange, while Sensex is its primary index.

5. Is Sensex affected by international events? Yes, events like global trade agreements, oil prices, and political conflicts can impact Sensex significantly.

By understanding Sensex, you can unlock the world of stock market investments and take charge of your financial future. Start tracking Sensex today! 🚀

[ramakantthinks]

Navigating Growth and Inclusion: Insights from India's Interim Budget 2024-25

In an eagerly awaited budget session, Union Finance Minister Nirmala Sitharaman took center stage to present the Interim Budget for the fiscal year 2024-25 at Parliament. Her address not only provided a comprehensive overview of the government's achievements, fiscal targets, and strategic focus areas but also offered valuable insights into the nation's economic direction. Significantly, this budget goes beyond a mere financial plan; it serves as a testament to the government's commitment to inclusive development and its ability to navigate challenges with resilience.

The Economic Trajectory and Strategic Focus

Sitharaman's presentation skillfully outlined the trajectory of the nation's economy, emphasizing key milestones achieved in the past decade. The strategic focus on inclusive development, economic reforms, and the government's ability to steer through challenges were highlighted as cornerstones of the fiscal plan.

The Finance Minister revealed a reduction in the estimated gross borrowing for FY25, setting the stage for fiscal prudence. Notably, the fiscal deficit target for FY25 was declared at 5.1%, surpassing initial expectations and demonstrating an aggressive fiscal consolidation approach. Sitharaman also announced the withdrawal of outstanding disputed tax demands, a move expected to benefit approximately 1 crore taxpayers.

Taxation and Economic Measures

While maintaining the existing tax slabs in the Interim Budget 2024, Sitharaman provided continuity for certain benefits, including tax exemptions for specific IFSC units, extending them till March 2025. This calculated approach aims to sustain economic momentum while fostering a conducive environment for startups and businesses.

One pivotal aspect of the budget speech was the acknowledgment of research's role in bolstering indigenous oilseeds, contributing significantly to India's self-sufficiency. Sitharaman shed light on the fact that India annually spends over ₹1.5 trillion on importing 60% of its cooking oil, emphasizing the need for self-reliance in this crucial sector.

Also Read: What Is RBI’s Stance On Unsecured Loans?

Commitment to Inclusive Development

In her address, Sitharaman reaffirmed the government's commitment to the 'Sabka Sath Sabka Vikas' philosophy, underscoring policies that promote secularism, reduce corruption, and prevent nepotism. The comprehensive approach targeted the welfare of diverse segments of society, including the poor, women, youth, and farmers.

The budget also showcased impressive inclusive development initiatives, including direct benefit transfers amounting to Rs. 34 lakh crore into PM-Jan Dhan accounts. Success stories of schemes like PM-SVANidhi, PM-JANMAN Yojana, and PM-Vishwakarma Yojana further illustrated the government's commitment to uplifting various sectors of the population.

Agricultural sector achievements took center stage, with notable programs like PM-Kisan Samman Yojana and PM-Fasal Bima Yojana providing financial assistance to millions of farmers. The integration of 1,361 Mandis through the Electronic National Agricultural Market marked a transformative step in creating a more efficient and transparent agricultural ecosystem.

Also Read: How Can NBFCs Become Active Participants In The Payment Ecosystem? 

Comprehensive GDP Approach

The budget speech also emphasized the Comprehensive GDP Approach, focusing on Governance, Development, and Performance. The macroeconomic stability, robust investments, and effective program delivery highlighted in this approach aim to fortify the nation's economic foundations.

In the realm of infrastructure development, key initiatives such as GST, tax reforms, and strengthening the financial sector were acknowledged. The creation of gateways for global capital through initiatives like GIFT IFSC and Unified Regulatory Authority IFSCA were hailed for facilitating economic growth.

Industry Perspective

Industry leaders, including K. Paul Thomas of ESAF Small Finance Bank, Shailendra Singh of BOBCARD Limited, and Abhay Bhutada, MD of Poonawalla Fincorp, expressed positive sentiments about the budget. They applauded specific measures such as the focus on providing formal credit to MSMEs, empowering women and youth, and promoting economic sustainability.

Abhay Bhutada, in particular, highlighted the budget's role in promoting economic sustainability aligned with the 'Viksit Bharat by 2047' vision. The fiscal responsibility reflected in the 5.8% GDP fiscal deficit was commended, indicating a decisive step towards India's economic sustainability.

Also Read: Top Alumni From Pune's Symbiosis International University In The Field Of Finance

Looking Towards the Future

In conclusion, India's Interim Budget for 2024-25 not only addresses fiscal aspects but reflects a holistic vision for the nation's growth and development. By navigating challenges with resilience, emphasizing inclusive policies, and fostering economic sustainability, the government's budgetary approach sets a positive tone for India's future trajectory.

As the nation looks towards the future, the budget stands as a blueprint for sustained growth. The reduction in gross borrowing and the aggressive fiscal consolidation approach signify a commitment to financial prudence. The extension of benefits for startups, the continuation of tax exemptions, and the emphasis on self-sufficiency in cooking oil production point towards an environment conducive to economic expansion and innovation.

The success stories of inclusive development initiatives in the agricultural sector, direct benefit transfers, and transformative schemes demonstrate the government's commitment to addressing the needs of diverse segments of the population. The industry's positive response further underscores the potential for collaboration and growth in key sectors, including MSMEs, fintech, and digital lending.

Final Thoughts

As India forges ahead into the fiscal year 2024-25, the Interim Budget serves as a guidepost for progress. It not only outlines fiscal policies but also paints a comprehensive picture of a nation committed to inclusive development, economic resilience, and sustainable growth. The collaborative efforts of the government, industry, and citizens will play a pivotal role in realizing the vision laid out in this budget – a vision that propels India towards a prosperous and resilient future.

[deevayrattan]

Ixigo Pre IPO Buzz: Key News and Updates

Ixigo is a leader in the rapidly changing Indian travel business, revolutionizing how travelers book and enjoy their travels. The financial community is ablaze with anticipation as ixigo IPO is highly anticipated, and important updates and news are eagerly awaited.  We'll examine the most recent Ixigo Share Price,  developments and the elements that fuel the Ixigo pre-IPO hype.

Ixigo's  Unlisted shares Journey Overview: 

Founded in 2007 by Aloke Bajpai and Rajnish Kumar. Now Ixigo IPO has become a household name in India. It’s one-stop platform for travel-related services Become the USP of the company. From flight bookings to hotel reservations and train journeys, Ixigo has carved a niche for itself by providing users with a seamless and comprehensive travel planning experience. The company has become a major participant in the Indian travel IT market by evolving and adapting to the changing needs of travelers over time.

They assist travelers in making smarter travel decisions by leveraging AI, machine learning and data science led innovations on their OTA platforms, comprising their websites and mobile applications.

Ixigo IPO compares real-time travel information, prices and availability for flights, trains, buses, and hotels for users for transparency along with helping user to take right decision, and also Ixigo allows ticket booking through its associate websites and apps. In 2008, it introduced a hotel search engine on its website. In early 2014 it  launched a trains app as well.

Ixigo Pre IPO Details

Ixigo Pre Ipo have received in-principle approvals from BSE and NSE for the listing of the Equity Shares pursuant to letters. Ixigo upcoming IPO proposes to make an IPO which comprises a fresh issue of its equity shares of Re. 1 each and offer for sale by certain shareholders’ existing equity shares of Re 1 each at such premium arrived at by the book building process (referred to as the ‘Issue’), as may be decided by the Company’s Board of Directors.

The company plans to come with an Ixigo IPO by 2024

Current Ixigo Share Price

The face value of each Ixigo share is ₹ 1. Ixigo stock price is ₹ 145/share. Ixigo IPO price band is not disclosed yet.

Ixigo Unlisted share Merger & Acquisition

Ixigo purchased Abhibus on August 5, 2021. By providing its combined user base of almost 25.5 crore customers with a multi-modal transportation experience spanning trains, aircraft, and buses, the agreement will assist Ixigo Group in solidifying its position in tier 2, 3, and 4 markets.

Investments 

It is true that Ixigo owns stock in FreshBus, an electric intercity bus service company with headquarters in Bengaluru. Ixigo gave FreshBus Rs 26 million in startup finance in February 2023. This was a calculated financial risk taken to facilitate the introduction of FreshBus's intercity electric bus services throughout India.

Ixigo share price Market Size: ​

The online travel market in India is expected to reach US$ 31 billion by the end of FY25, growing at a 14% CAGR from FY20. 

Travel and tourism, one of the fastest-growing economic sectors in India, contributed US$ 178 billion to the nation’s GDP in 2021.

The India Brand Equity Foundation (IBEF) states that there is a sizable travel and tourist market in India. It provides a wide range of specialised travel products, including cruises, outdoor activities, wellness, medical, sports, MICE, eco-tourism, movies, rural, and religious travel. Both domestic and foreign travellers have acknowledged India as a spiritual tourism destination.

As per the IBEF’s February 2023 report on Tourism and Hospitality, the contribution to the GDP is expected to reach US$ 512 billion by 2028, at a strong CAGR growth of 16% between 2021-28.

The travel industry bounced back remarkably in FY23 after being severely affected by the pandemic and is expected to move at an exponential pace. As per the data published by Directorate General of Civil Aviation (DGCA), the number of passengers that travelled by airlines domestically increased 62% YoY to 136 million passengers in FY23, as compared to 84 million passengers in FY22.

As indicated in the February 2023 IBEF Report on Aviation, India is poised to become the third-largest air passenger market globally by 2024, encompassing both domestic and international travel, and is expected to host over 480 million air travellers by 2036.

According to WTTC, India is ranked 10th among 185 countries in terms of travel & tourism’s total contribution to GDP in 2019.

Ixigo pre ipo User and Involvement:

When assessing Ixigo unlisted share chances of continuing to develop, the size of its user base is crucial. As signs of a strong and devoted customer base, investors will probably closely examine user acquisition tactics, user engagement measures, and customer retention programmes.

In conclusion:

We are in the midst of a critical juncture in the development of the Indian travel tech industry. The ixigo pre-IPO excitement keeps growing. Not only is the success of Ixigo's IPO evidence of the company's accomplishments, but it also shows how confident the market is in travel technology overall.    We hope to have a great opening in Ixigo upcoming ipo so that we can book tremendous profit in Ixigo share price. 

[kikusharma9001]

How do stock prices change?

Stock prices change based on the principles of supply and demand in the financial markets. Several factors influence the supply and demand for a particular stock, leading to fluctuations in its price. Here are some key factors that contribute to changes in stock prices:

Company Performance: The most fundamental factor influencing stock prices is the financial performance of the underlying company. Positive earnings reports, revenue growth, and other strong financial indicators often lead to an increase in demand for the stock, driving its price up.

Economic Indicators: Broader economic factors, such as GDP growth, employment rates, and inflation, can impact investor sentiment and influence stock prices. A healthy economy generally contributes to positive investor confidence and higher stock prices.

Market Sentiment: Investor perception and sentiment play a crucial role. Positive news about a company, industry, or the overall market can lead to increased demand for stocks and higher prices, while negative news can have the opposite effect.

Interest Rates: Changes in interest rates can affect the attractiveness of stocks compared to other investment options, such as bonds. When interest rates are low, stocks may become more appealing, driving demand and increasing prices.

Industry Trends: Trends and developments within specific industries can impact the stock prices of companies operating in those sectors. Positive industry outlooks or innovative breakthroughs can boost demand for related stocks.

Market Supply and Demand: The basic economic principle of supply and demand plays a crucial role. If more investors want to buy a stock (demand) than sell it (supply), the stock price tends to rise. Conversely, if more investors want to sell a stock than buy it, the price tends to fall.

Earnings Reports: Quarterly and annual earnings reports can have a significant impact on stock prices. If a company exceeds or falls short of analysts' expectations, the stock price may react accordingly.

Dividend Announcements: Companies that pay dividends may experience changes in stock prices based on the size and consistency of dividend payouts. High or increasing dividends can attract investors and positively impact stock prices.

Macroeconomic Events: Events such as geopolitical tensions, natural disasters, or major policy changes can create uncertainty in the market, affecting investor confidence and leading to changes in stock prices.

Technical Factors: Traders and investors often use technical analysis, examining historical price charts and trading volumes, to make investment decisions. Technical factors such as moving averages, trendlines, and chart patterns can influence trading decisions and impact stock prices.

One of the best way to start studying the stock market to Join India’s best comunity classes Investing daddy invented by Dr. Vinay prakash tiwari sir. The Governor of Rajasthan, the Honourable Sri Kalraj Mishra, presented Dr. Vinay Prakash Tiwari with an appreciation for creating the LTP Calculator.

Download Application

It's important to note that stock prices can be volatile, and multiple factors often interact to influence market movements. Investors should conduct thorough research and consider a combination of fundamental and technical analysis to make informed decisions in the stock market.

[rahul-darade]

A guide to choose the right destination for global expansion

Whether providing B2B services or exporting products, setting up a business or a shared service center or setting up a remote team in a different country for international growth is not easy. But if successful, the benefits go beyond just profitability and brand popularity. International expansion is the business strategy to achieve global success. Needless to say, with numerous growth opportunities across various sectors it is tempting for any SME, startup, or business enthusiast to dive straight toward building remote teams and growing their business footprint. 

Growing your business internationally offers various benefits to your company. Your remote teams at cross-border locations, function towards achieving company objectives and goals. This reduces the risk of relying on a single market for profitability. International expansion helps you tap the skilled and diverse workforce into a new competitive market. Also, strategically capturing international markets fosters collaboration with local businesses, and increases partnerships with local service providers such as Employer of Record (EOR) or Professional Employer Organizations (PEO). These service providers prove to be instrumental in simplifying your business expansion journey in the location of your business. 

Steps to selecting your target location for global success 

A step-by-step, strategic international business expansion process that considers the time, cost, and resource constraints can help you explore potential opportunities a new market can offer. The cultural aspects, operational capacity, market scenario, and legalities of the target countries need to be critically examined. It also helps you understand if your organization is ready to establish its teams in the new market.  

Through this article, we go beyond cultural differences, GDP growth, competition level, and communication and focus on all the important factors to consider while choosing your destination. These key factors will help you determine the best-suited destination for growing your business and making your international expansion successful. 

Availability of talent

When you start your search for the perfect destination for building remote teams, understand its talent pool and resources. A country may be particularly suitable due to its technology and infrastructure but may be short on skilled resources and expertise. 

A strategic approach toward recruiting and hiring remote employees can help you acquire a larger and more diverse talent pool. In addition, the location of your choice should suffice the needs of your remote employees to work efficiently. For instance, half of India’s current population is under the age of 26 and can seize global job opportunities. India offers numerous employee benefits and perks, diverse company culture, and flexible work schedules. 

Several policies, business initiatives, and competitive compensation packages are additional factors that make India a promising destination for expanding business and building remote teams. An in-house team of HR professionals in the country of choice can manage hiring and all other HR activities. Moreover, outsourcing human resources or bringing a professional in the house (for example PEO or EOR company) can provide guidance and a network for accessing talent in the desired location and handle all the complexities around hiring. Our video testimonial below can help you understand how EOR services make a difference when expanding business operations in India.

Calculate the costs

At the offset, it is imperative to know that managing remote teams internationally, is like managing a startup in the global market. Hence, make sure you consider the cost factor while fixing an international location for your business expansion. Apart from operating costs in a foreign country, other monetary aspects to be considered include taxation for employees as well as corporations, production costs, government incentives, and other overhead social costs that affect remote operations. 

Research the legalities and estimate the monetary investments required for your business expansion. For instance, Ireland ranks number 11 on Forbes’s best countries for Business list. Ireland’s low corporate taxes, access to other European markets, and high-tech talent pools make it an interesting choice for business expansion. Prioritizing destination based on operational costs, prospective profitability and return on investment (ROI) can give a realistic image of the costs while taking your business into an international location.

The economic and political environment 

Growth opportunities in the world are vast. The economic and political environment of a country can help you decipher whether your business capacity aligns with the destination of your choice. Understand the country’s GDP, CPI, and exchange rates, market size. Ideally, a country with stable economic growth is suitable for building remote teams. 

The desired destination should encourage your business growth, and market reach, and should pose a little political risk. Forecasting business accessibility, market performance, and general regulatory changes can help you shortlist the most viable business destination for your remote teams. 

Go through the taxes and regulations

Before selecting your location for international expansion, research its local laws and regulations. Any foreign business has to pay regional and municipal taxes. The local regulations differ based on the type of services industry and even state and country. Research employment tax laws, income tax breaks, government regulations, grants, land discounts, and other financial benefits. Many countries offer economic and trade benefits in specific locations and zones. Mexico for example, offers free trade agreements with many countries including the US.

Evaluating IP protection permits, trade regulations and laws of a destination can help you determine how business-friendly a destination is for your services. Understanding these laws can mitigate any legal risks and help you determine the bests suitable destination for your remote teams. Going through all these regulations and tax affairs can be challenging at times. In such cases, speaking to trade experts or commissioner offices from desired destinations can help you gather data and analyze your best route to international business expansion.

Logistics and infrastructure

IT-related software and AI have become an integral part of any business and help to streamline online business operations. As per the latest forecast by Gartner, Inc., the worldwide IT expenditure is expected to reach a total of 4.6 trillion dollars in 2023, showing a 5.1% rise from the year 2022. This exponential growth of technology, digital Internet connectivity, and software availability is pushing various SMEs and startups toward global expansion. Hence, when taking your business to a foreign location, considering the country’s logistical capabilities, technological development, and infrastructure becomes essential. 

Does the destination of your choice have the resources to scale and enhance your business efficiently? Does it support the business vision of developing your remote teams? Is the country equipped to provide you with the high-end software and technology your business needs?  Not all destinations answer these queries and offer everything your business needs. 

The best solution is to find a destination offering all the resources and experience at a reasonable cost. For instance, a software company wishing to take its business overseas can prioritize Germany or Japan which have large software markets. Providing the necessary IT support and handling the back-office processes in a foreign location can be taxing. Consequently, reaching out to International PEO or EOR services to overcome these challenges becomes a strategic move.

Choose PEO or EOR services as your local expert

Expanding your business to a new destination is a milestone for any organization wishing to go global. Once you evaluate which country to target and how to manage your services, then business expansion in an international location proves to be fruitful. 

However, if you are unsure of moving forward alone, then approaching external support is a good idea. An external vendor can fill the gaps and mitigate potential risks. Also, PEO or EOR services can support you through all your legal hurdles, saving you time and investment in a foreign country. Moreover, you can test the new market by building remote teams in the desired location. Testing the business culture and analyzing the market reaction can help you develop an effective international business expansion strategy before making any permanent commitment such as subsidiary formation. 

Conclusion

Global expansion plays a pivotal role in creating brand awareness and enhancing your balance sheet by positively impacting the top and bottom lines. Expanding markets in new locations, helps you reach a larger consumer base by transcending geographical boundaries. At often times, going forward after choosing a destination an organization can face obstacles such as challenges of remote working, managing remote teams, providing technology and infrastructure support, and so on. In such cases, an experienced partner like EOR can streamline your business expansion journey.

Since the Employer of Record services already has a strong foothold in the destination of your choice, they can be your local business guide and take over all your non-core business responsibilities. An EOR with its network and customized solutions, will reduce your legal hurdles and significantly enhance your overall business experience. If building your subsidiary is the right step for your business, then an EOR can guide you in the process. With EOR services, you can hire internationally, manage remote teams and be compliant in the destination you choose for your global success. 

You can look at our case studies to gather insights on how EOR plays an important role when you think of building remote teams and expanding your business footprint in the destination of your choice. 

[loyaltyexpert]

How Loyalty Programs Can Benefit the Cement Industry?

Did you know that the cement industry contributes 5.4 percent to global GDP and 7.7 percent to global employment? Globally, it’s one of the most important industries, and it plays a direct role in the infrastructure and economic development of all countries in the world.

Without cement, there would be no roads, buildings, or bridges, and infrastructure development would come to a standstill. That’s why more cement manufacturers must enter the rapidly-growing sunshine industry and cater to the rising demand.

What’s even more interesting is that the sector has a long and diversified supply chain. That’s why it’s also important for cement manufacturers to build strong relationships with their channel partners and influencers.

However, customer retention is becoming a challenge for many big and small cement manufacturers due to various reasons, such as lower margins and rising costs. 

How to Create a Cement Industry Loyalty Program That Works

This blog post discusses how loyalty programs can benefit cement manufacturers of various sizes and types and help them retain customers, channel partners, and influencers for a long time.

Here are seven things to do while creating a cement industry loyalty program:

1. Leveling of the Playing Field

The cement industry (both global and Indian) is a highly consolidated sector. To put things in perspective, the top cement company in India accounts for almost a third of the total market share. That means the rest of the players in the industry have to contend for the remaining two-thirds of the market share.

2. Diversifying of Customer Base

At present, a majority of cement manufacturers cater to just a handful of customer bases. The government infrastructure sector is the second largest customer, which contributes over 40 percent of the demand. That’s like putting all your eggs in one basket!

Diversifying the customer base not only minimizes risks but also presents cement manufacturers with more prospects for growth. Digital loyalty programs can help with that. Apart from supplying cement to institutional customers, cement companies can also leverage advanced loyalty programs to attract and retain individual customers.

3. Cost Efficiency and Competitive Advantage

At present, many cement manufacturers are grappling with lowering margins due to rising costs. Advertising and marketing costs account for a majority of the expenditure and many companies don’t have the mechanisms to calculate their return on advertising and marketing investments. But like in all other sectors, the cost of attracting a new customer is considerably more compared to the cost of retaining an existing one. 

Loyalty programs not only enable cement manufacturers to retain existing customers and channel partners but also provide them with several tools to measure their ROI.

4. Reduce Customer Churn

Customer attrition is one of the biggest challenges that many cement manufacturers face. As per a report, the global cement industry registers a 15–25 percent churn rate. As per industry standards, a customer attrition rate of more than 20 percent is considered high.

Digital loyalty programs can help cement manufacturers reduce customer churn rates. By coming up with different customer retention strategies, cement manufacturers can engage their customers, channel partners, and influencers and reduce the churn rate to a large extent.

5. Prevent Loyalty Fraud

Cement manufacturers that rely on traditional loyalty programs often struggle to ensure complete transparency. Pilferages and frauds are two big problems in traditional loyalty programs and they cause huge discontentment among channel partners and customers in the cement industry.

6. Facilitate Regular Communication with Channel Partners

Channel partners are extremely crucial in the cement industry. When cement manufacturers manage to retain their channel partners for a long time, they are more likely to tap into their strong network and make their products widely available in different markets.

7. Receive Frequent Feedback

By using digital loyalty programs, cement manufacturers can receive frequent feedback from their channel partners and influencers. This will keep the feedback loop open and it’ll enable cement manufacturers to know where they are doing right and where they need to improve.

Suggest Read: Create Customized Loyalty Program for Cement Industry

Taking everything into consideration

At LoyaltyXpert, we have a proven track record of designing and creating highly effective loyalty programs for all sizes and types of businesses across industries. To know more about our loyalty platform and request a free demo, contact our team of loyalty experts today.

This blog is already posted here.

[stockmarketknowledge]

What Are The Factors That Determine The Price Of The Stock

The price of a stock is determined by a variety of factors, both internal and external to the company. Here are some of the key factors:

Company Performance: The most fundamental factor influencing stock prices is the performance of the company issuing the stock. This includes factors such as revenue growth, earnings, profit margins, and overall financial health.

Market Sentiment: Investor sentiment and market psychology play a significant role in stock prices. Positive news about a company or the overall market can drive prices up, while negative news can push prices down, sometimes regardless of the company's underlying fundamentals.

Supply and Demand: Like any other commodity, the price of a stock is influenced by supply and demand dynamics. If there are more buyers than sellers, the price tends to rise, and vice versa.

Economic Conditions: Macroeconomic factors such as interest rates, inflation, GDP growth, and employment levels can impact stock prices. For example, lower interest rates tend to stimulate borrowing and investment, which can boost stock prices.

Industry Trends: Stock prices are often influenced by trends within the industry to which the company belongs. Positive developments in the industry can lift all companies within it, while negative trends can drag down stock prices across the board.

Competitive Positioning: The competitive position of a company within its industry can affect its stock price. Factors such as market share, innovation, and the ability to adapt to changing market conditions can influence investor perceptions and, consequently, stock prices.

Regulatory Environment: Changes in regulations or government policies can impact certain industries or companies, which in turn can affect stock prices. For example, increased regulation in the healthcare sector might negatively impact pharmaceutical stocks.

Corporate Actions: Events such as mergers and acquisitions, stock splits, dividends, share buybacks, and changes in management can all impact stock prices. These actions can signal changes in the company's prospects and affect investor sentiment.

Global Events: Geopolitical events, natural disasters, and other global factors can have widespread effects on stock prices, as they can impact economic conditions, consumer behavior, and investor confidence on a global scale.

One of the best way to start studying the stock market to Join India’s best comunity classes Investing daddy invented by Dr. Vinay prakash tiwari . The Governor of Rajasthan, the Honourable Sri Kalraj Mishra, presented Dr. Vinay Prakash Tiwari with an appreciation for creating the LTP Calculator.

LTP Calculator the best trading application in India.

You can also downloadLTP Calculator app by clicking on download button.

Understanding these factors and how they interact is essential for investors looking to make informed decisions in the stock market.

[stockmarketanalysis]

Understanding the Consumer Price Index (CPI)

What is the Consumer Price Index (CPI)?

The Consumer Price Index (CPI) is like a price report card for the economy. It measures the average change in prices over time for goods and services that households typically buy. Think of it as a mirror reflecting the cost of living.

Imagine you have a shopping cart filled with essentials—like milk, bread, rent, and transportation. CPI tracks how much the total cost of that cart changes over time.

Why is the CPI Important?

Why should you care about CPI? Because it impacts everything from your paycheck to your savings! Governments, businesses, and even banks use the CPI to make critical decisions, such as adjusting wages, pensions, and tax brackets.

It’s not just an economic tool—it’s a reality check on how much life costs.

How is the CPI Calculated?

CPI calculation might sound complex, but let’s simplify it. Statisticians select a basket of goods that represents typical household spending. Then, they track the prices of these items over time and compare them to a base year.

For example, if the cost of the basket increases by 5% compared to the base year, the CPI also increases by 5%.

Basket of Goods: What’s Inside?

The basket of goods includes items across categories like:

Food and beverages: Bread, coffee, snacks.

Housing: Rent, utilities.

Transportation: Gasoline, public transit.

Healthcare: Medicines, doctor visits.

Entertainment: Movies, streaming services.

It’s designed to reflect what an average consumer spends money on, though the exact composition may vary by country.

Types of CPI

Not all CPIs are the same. Here are a few types you might encounter:

Headline CPI: The overall CPI including all goods and services.

Core CPI: Excludes volatile items like food and energy to show long-term trends.

Regional CPI: Measures price changes in specific areas or cities.

CPI and Inflation: What’s the Link?

If CPI is rising, it’s a signal of inflation, meaning prices are going up. For example, if the CPI for your favorite breakfast cereal increases, you’ll likely pay more at checkout.

But CPI can also highlight deflation—a rare situation where prices drop.

How Does CPI Affect You?

CPI might seem like an abstract concept, but it has a tangible impact on:

Salaries: Employers use CPI to adjust wages.

Savings: Inflation erodes purchasing power, making savings less valuable.

Rent and Utilities: Many leases and utility rates are tied to CPI changes.

Limitations of the CPI

CPI isn’t perfect. Critics point out:

It doesn’t account for regional cost variations.

It may not represent all demographics equally.

It doesn’t measure quality improvements (e.g., better smartphones at higher prices).

CPI and Government Policies

Governments rely on CPI to make critical decisions, such as:

Adjusting Social Security benefits.

Setting monetary policies to control inflation.

Planning budgets to ensure economic stability.

CPI Around the World

Countries have their own versions of CPI, tailored to their economies. For instance:

The United States uses the CPI-U and CPI-W.

India calculates the CPI for rural, urban, and combined populations.

The European Union tracks the Harmonized Index of Consumer Prices (HICP).

CPI vs. Other Economic Indicators

How does CPI stack up against other metrics like the Producer Price Index (PPI) or Gross Domestic Product (GDP)? While CPI focuses on consumers, these indicators focus on producers and overall economic output.

Tracking Changes Over Time

Historical CPI data can reveal trends. For instance, the inflation spikes of the 1970s taught valuable lessons about monetary policy.

How to Use CPI in Personal Finances

Wondering how CPI can help you manage money? Consider:

Budgeting: Adjust your expenses for rising prices.

Investing: Choose inflation-protected securities.

Saving: Monitor inflation’s impact on your goals.

Common Myths About CPI

Here are a few misconceptions:

CPI measures everything: It doesn’t include things like stock prices.

Inflation equals CPI: CPI is a measure, not the cause of inflation.

CPI is always accurate: It’s an estimate, not an exact science.

The Future of CPI

As technology evolves, so does CPI measurement. Digital data and AI might make it faster and more accurate, ensuring it remains a reliable economic tool.

Conclusion

The Consumer Price Index (CPI) isn’t just an economic term; it’s a window into our financial lives. By understanding it, you can make smarter decisions about your money, track inflation, and plan for the future. So next time you hear about CPI, you’ll know it’s more than just numbers—it’s your wallet’s best friend.

FAQs

1. What is the Consumer Price Index (CPI)?

CPI is a measure of the average change in prices of goods and services that households purchase over time.

2. How does CPI affect inflation?

CPI tracks price changes, and a rising CPI indicates inflation, meaning prices are going up.

3. Who uses CPI data?

Governments, businesses, and individuals use CPI for decisions like wage adjustments and economic planning.

4. Is CPI the same everywhere?

No, different countries and regions have unique methods and items in their CPI calculations.

5. Can I use CPI for personal budgeting?

Absolutely! CPI helps you adjust your budget to account for changing prices and inflation.

[iamflypped]

India is highly worried for its very low economy in this quarter (Q2 2019-20). There is continuous fall of the Gross Domestic Product, which is in line for the seventh consecutive quarter, and now it has made a fall to 4.5 per cent in the second quarter (July-September) of the year 2019-20, which is very low. This is a fall of 0.5 per cent points compared to the last quarter. When compared to the second quarter of the year 2018-19, it is a fall of 2.6 per cent points. In the second quarter of the year 2018, the GDP growth stood at 7.1 per cent.

The GDP growth which is seen in the last quarter was the lowest in the six years. The previous lowest rate was recorded at 4.3 per cent in the final quarter (January-March) of 2012-13.

[newseo1-blog]

Unseen connection between our GDP and Waste Management INDUSTRY

What Is Economy And How It Works?

The economy is defined as a social domain that emphasizes the practices,

discourses, and material expressions associated with the production, use, and management of resources. A given economy is the result of a set of processes that involves its culture, values, education, technological evolution, history, social organization, political structure, and legal systems, as well as its geography,

natural resource endowment, and ecology, as main factors. These factors give context, content, and set the conditions and parameters in which an economy functions. In other words, the economic domain is a social domain of human practices and transactions.

Economic agents can be individuals, businesses, organizations, or governments. Economic transactions occur when two groups or parties agree to the value or price of the transacted good or service, commonly expressed in a certain currency. However, monetary transactions only account for a small part of the economic domain. India Nominal GDP: $2.94 trillion-India GDP (PPP): $10.51 trillion.

India is the fastest-growing trillion-dollar economy in the world and the fifth-largest overall, with a nominal GDP of $2.94 trillion. India has become the fifth-largest economy in 2019, overtaking the United Kingdom and France. The country ranks third when GDP is compared in terms of purchasing power parity at $11.33 trillion. When it comes to calculating GDP per capita, India's high population drags its nominal GDP per capita down to $2,170. The Indian economy was just $189.438 billion in 1980, ranking 13th on the list globally. India's growth rate is expected to rise from 7.3% in 2018 to 7.5% in 2019 as drags from the currency exchange initiative and the introduction of the goods and services tax fade, according to the IMF.

India’s post-independence journey began as an agrarian nation; however, over the years the manufacturing and services sector has emerged strongly. Today, its service sector is the fastest-growing sector in the world, contributing to more than 60% of its economy and accounting for 28% of employment. Manufacturing remains as one of its crucial sectors and is being given due push via the governments' initiatives, such as "Make in India." Although the contribution of its agricultural sector has declined to around 17%, it still is way higher in comparison to the western nations. The economy's strength lies in a limited dependence on exports, high saving rates, favorable demographics, and a rising middle class.

Top 10 Countries by GDP

1. United States

2. China

3. Japan

4. Germany

5. India

6. United Kingdom

7. France

8. Italy

9. Brazil

10. Canada

The future of Indian rupee and the Indian economy is fabulous. The Make in India policy will promote the manufacturing sector and reduce import dependency, promote exports. The recent policy decisions especially the tax evasion measures will certainly Correct the rank of India in ease of doing business and thus increasing the foreign direct investment.

How Economical Growth Connects With Waste Management Industries?

A recent report released by the International Monetary Fund said that the Indian economy will be the fastest-growing economy in the world in the year 2018. The

Indian economy is composed of the three major sectors like i.e., Services sector:

53.7%, Industry sector: 31.2% and Agriculture sector: 15.2%. The "Make in

India" initiative, a multi-pillar development push launched by Indian Prime Minister

Narendra Modi in September 2014, has helped spur a building boom. The government knows that investment, innovation, and entrepreneurship are more likely to happen if the right physical and tech contexts exist. Recent times have seen a significant deviation from traditional waste management practices limited to collection and disposal, to a more scientific approach that looks at the value propositions of converting ‘waste to wealth’.

Waste Management in India Shifting Gears raises the curtains on the changing landscape in the waste management sector, dwelling on changes in the policy, regulatory and technology landscape, and the future of a market-based approach for the products and by-products emanating from waste streams such as compost, fuel, and electricity. It also offers an insight into new approaches for project development in the sector as well as capacity-building initiatives, with some interesting case studies and success stories in the domain.

India, which is the second-most populous nation in the world, comprises 17.86% of the world’s population. It is projected to be the world’s most populous country by 2022. About 32.8% of its population is urban and with the urban population increasing at 3-3.5% per annum, the per capita waste generation is increasing by 1.3% per annum. At the present rate, waste generation is projected to increase from 62 million tonnes per year to about 165 million tonnes in 2030.

According to the data from the Ministry of Environment, Forest and Climate Change, the Government of India (GoI), only about 75–80% of the municipal waste gets collected and only 22–28% of this waste is processed and treated. Waste is a valuable resource that needs to be properly treated in order to generate environmental and monetary benefits from it. Improper planning for waste management, complex institutional setup, constraints in capacity for waste management using modern techniques and best practices, and limited funds with urban local bodies (ULBs) are some of the reasons waste management in India has become an area of concern. GoI has undertaken several initiatives for waste management and in this paper, we have highlighted some of the welcome initiatives, which will provide the private sector the necessary foundation to play a critical and greater role in the management of waste in India.

A recent report on the infrastructure needs assessment of India forecast-ed an investment requirement of 1.2 trillion USD in the next 20 years, roughly 134 USD per capita per annum out of which the portion on waste management the sector has been estimated at 15 per capita USD. With the present population of 1.2 billion, the investment estimated by 2030 is almost 18 billion USD.

Similar investment requirements have reverberated in the Report on Infrastructure in India under the High Powered Expert Committee (HPEC), which projected investment of 771.65 billion5 USD (39.2 lakh crore INR)over a horizon of 20 years from 2011–12. The investment requirement under the waste management sector has been conservatively estimated at 9.56 billion USD (0.49lakh crore INR).

With the investment in the manufacturing sector, advancement in the technology, generation of the employment opportunities, and the ways to make the labor skilled, our country will be touching the sky of success in just a matter of a few years. Moreover, the way the government has been working is commendable and it justifies the need for transformation in the country.

When you talk about all the impacts that the Make in India has on the economy, the only thing that the citizens are concerned about is the country’s GDP. After all, that is the only thing that defines the accurate situation of the country. The better the GDP, the more developed will be the nation.

[kikusharma9001]

How do stock prices change, and what factors influence them?

Supply and Demand: The basic principle of supply and demand plays a significant role in stock price movements. When more people want to buy a stock (increased demand) than sell it (limited supply), the price tends to go up. Conversely, if more people want to sell than buy, the price typically decreases.

Company Performance: A company's financial performance, including its revenue, earnings, and profitability, can directly impact its stock price. Positive financial results often lead to higher stock prices, while negative results can lead to declines.

Economic Conditions: Broader economic factors, such as GDP growth, inflation, interest rates, and employment data, can influence stock prices. A strong economy generally contributes to rising stock prices, while a weak economy can lead to declines.

Industry and Sector Trends: Stocks within the same industry or sector tend to move together. If a particular sector is performing well due to trends or events specific to that sector, stocks within it may experience price increases.

Company News and Events: Announcements and events related to a company, such as product launches, mergers and acquisitions, earnings reports, or legal issues, can have a significant impact on stock prices.

Market Sentiment: Investor sentiment and psychology can play a crucial role in stock price movements. Positive news or widespread optimism can lead to buying, while negative news or fear can lead to selling.

Political and Regulatory Factors: Government policies, regulations, and political stability can affect the stock market. Changes in tax laws, trade policies, or government spending can influence stock prices.

Global Events: Events on the global stage, such as geopolitical conflicts, natural disasters, and pandemics, can affect stock markets worldwide.

Interest Rates: Central banks' decisions on interest rates can impact stock prices. Lower interest rates often encourage investment in stocks, as they may provide better returns compared to fixed-income investments.

Currency Exchange Rates: For multinational companies, changes in exchange rates can affect earnings and, subsequently, stock prices.

Market Trends and Technical Analysis: Technical analysis involves studying historical price and volume data to identify trends, patterns, and support/resistance levels that traders use to make decisions. Technical factors can influence trading behavior and stock prices.

Speculation and Hype: Speculative trading, often driven by rumors or social media, can lead to significant price volatility in stocks.

Dividends and Share Buybacks: A company's dividend policy and share buyback programs can impact stock prices. High dividends and buybacks can attract investors, while the absence of these may lead to lower prices.

One of the best way to start studying the stock market to Join India's best comunity classes Investing daddy invented by Dr. Vinay prakash tiwari sir. The Governor of Rajasthan, the Honourable Sri Kalraj Mishra, presented Dr. Vinay Prakash Tiwari with an appreciation for creating the LTP Calculator.

It's important to note that stock price movements can be unpredictable and may result from a combination of these factors. Investors should conduct thorough research and consider their investment goals and risk tolerance when making investment decisions. Additionally, diversifying a portfolio can help mitigate the impact of individual stock price fluctuations.

[rulystuff]

https://servicemeltdown.com/is-the-united-states-at-end-of-empire/

New Post has been published on https://servicemeltdown.com/is-the-united-states-at-end-of-empire/

IS THE UNITED STATES AT END OF EMPIRE?

America’s economic primacy is pretty much behind us. And, I don’t believe there is any chance of reversing a trend that began thirty plus years ago. The best-case scenario for the nation is to slow the rate of economic decline – never mind social and cultural decline, which are probably lodged in irreversible decay.  As Robert Kaplan says in his book, The Revenge of Geography, we might prolong our position of strength by preparing the world for our own obsolescence and thus ensuring a graceful exit.  But even this outcome will require the strength of will that has yet to be demonstrated by leaders in business, education, and government.

Economic primacy might be measured along many fronts – income per capita, rate of growth, productivity, foreign exchange reserves, among others – but if one looks at Gross Domestic Product (GDP), perhaps the coarsest measure of a nation’s economic well-being, then the United States has lost its economic primacy to China when compared on a purchasing power parity (PPP) basis.

The PPP approach levels the GDP calculation to each country’s relative price of goods. So, if a television set costs $500 in the United States while the same television costs $250 in China then, theoretically at least, we’re under counting China’s GDP by $250. Using the PPP rationale, China’s GDP was approximately $23.5 trillion in 2019 compared to that of the United States which came in at $21.4 trillion.

Some politicians, economists, lobbyists, and others, like to use a different measure of GDP to suit their own purposes. The nominal GDP, which looks at the total of goods and services produced at current exchange rates yields a substantially different calculation. The nominal GDP of the United States in 2019 came in at $21.4 trillion, a number which is identical to the nation’s GDP on a PPP basis. The reason for this is that the nominal GDP calculation is based on the dollar and so there is no currency conversion rate difference. By comparison, China’s nominal GDP came in at $14.3 trillion. If we only look at nominal GDP, it is clear we are being lulled into a false sense of economic security.

CHINA HAS UNRIVALLED DIPLOMATIC PATIENCE

Diplomatically, China also has an edge on the United States. In the 1980’s, the then leader of the People’s Republic of China, Deng Xiaoping, enunciated his famous maxim of tao guang yang hui. Interpreted variously, the maxim is meant as a foreign policy directive that regardless how muscular the nation might become economically, geopolitically, and militarily it is always best to keep a “low profile diplomatically.” No more beguiling example of Deng Xiaoping’s maxim is in evidence than in China’s Belt and Road Initiative. Simply put, China plans to build one “road” from China to Europe and thus control all manner of transcontinental commerce. Already, China controls or has a presence in ports that handle about two-thirds of the world’s container traffic. In Greece, the port of Piraeus, a storied port dating to the Fifth Century B.C., is majority owned by the China Ocean Shipping Company (COSCO) which makes Greece a strategic entry point for China into the heart of Europe.

In Central Asia, China’s power projection is as undeniable as it is ominous. Through the auspices of the euphemistically named Shanghai Cooperation Organization (SCO), China has, in effect, expanded its borders westward by 1,500 miles to the Caspian Sea. Strategically, the mostly land-based route from Khorgos, Kazakhstan on China’s western border to Piraeus has now achieved super-highway potential from China to Europe.

China established the SCO with original signatories Russia, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan for the expressed purpose of promoting border security along its Xinjiang autonomous-region home to millions of mostly Muslim ethnic Uyghurs. Emblematic of China’s clout in the region, moreover, is that since the formation of the SCO both India and Pakistan have been granted membership in the organization. For the United States, it isn’t clear how much leeway it will now have to operate in Central Asia given the leverage that China has over SCO countries economically, diplomatically, and militarily.

China has also learned to game international organizations. The Paris Climate Accord, biased to begin with in favor of China, looks the other way when the nation burns far more coal than it officially admits. So, while emissions in the United States trend lower, potentially hobbling our fossil fuel energy sector, China’s continue to increase. China’ s shell game also involves the building of coal plants outside its borders to further fuel its economy without having to account for the consequent emissions domestically. The World Trade Organization (WTO) is also in China’s pocket as it refuses to rein in China’s channeling of state subsidies to its manufacturing companies so as to better compete on the world’s stage. The most egregious example, of course, of how China has played international and presumably apolitical agencies lies with the country’s spread of the devastating and deadly Coronavirus and how the World Health Organization’s (WHO) was complicit in the coverup of China’s misdeeds. In December, 2019, when Taiwan warned about the infectiousness of the virus, the WHO refused to share Taiwan’s warnings with the rest of the world. Clearly, the WHO was doing China’s bidding. To this day, Taiwan, at China’s behest, is boycotted from participating as a full-fledged member of the WHO.

IF WE’RE NOT MAKING STUFF WHAT ARE WE TO DO?

Let’s face it, manufacturing was lost to our shores for all intents and purposes several years ago. In 2015, China displaced the United States as the top manufacturing nation in the world. In 2019, China’s value-added output – in essence, the difference between price and the cost to produce – in manufacturing amounted to $3.9 trillion compared to $2.4 trillion for the United States. That gap will doubtless continue to grow.

There are now roughly 15 million workers in the United States engaged in manufacturing down from approximately 18 million in the 1980’s – President Trump, to his credit, was determined to revitalize manufacturing, steel, and coal but despite gains in these areas total employment numbers will continue to slip on a trend-line basis.  When one considers that China has approximately 112 million manufacturing workers, the competitive disadvantage for the United States becomes palpably clear.

In 2019 our nation’s goods deficit with China was approximately $345 billion. That gap is not likely to be made up in any of our lifetimes. So, that leaves Services as the new game in town. In 2019, Services accounted for roughly 69% of our nation’s GDP. And, as a nation, we better excel in that new cycle reality. It is true, the United States ran an annual balance of payments surplus in services with China of about $36 billion in 2019 – with U.S. exports amounting to about $56 billion and imports from China totaling $20 billion. But don’t let that fool you as a $20 billion gap will be easy for China to make up especially when one considers that China’s Services sector is growing at an average of 2% per year. And, unless we accelerate the rate of growth of exports – the rate of growth is about even for both imports and exports – we might soon be facing a deficit in this sector of the economy so crucial for the good health of the nation in the twenty-first century.

THE NATION FACES SOME VERY STIFF HEADWINDS

The United States economy has structural defects which will not go away simply by holding rallies and mouthing rhetorical flourishes in the halls of Congress. Decline might be inexorable but we should not stand by as mere spectators. The will and purpose to restore our economic vitality must be marshaled by every American. It must begin, first and foremost, by demanding of our leaders, our institutions, and ourselves to be unafraid to serve in keeping with American priorities. It is the remotest possibility that we can salvage the service economy and consequently our nation unless our standard of performance is nothing less than service excellence in everything we do.

We don’t have a lot going for ourselves: Labor productivity growth is stalled at near zero levels; the rate of household savings is paltry; regulation and taxation still suffocates businesses and individuals despite President Trump’s initiatives; unemployment – not the nominal rate but the U6 rate which measures the unemployed, those that are not looking for work, and those who have had to settle for part-time work –  is mired at levels of 7% (during the Obama years the U6 rate never got below 9.2%); and he national debt is now in excess of 120% of GDP. Entitlement spending while currently at a level of approximately 70% of the federal budget is on the threshold of becoming a perfect storm of out-of- control spending. The progressive policies of the Biden Administration will see to that as it attempts to solve every problem by printing greenbacks. The growing number of baby boomers reaching retirement age and the population’s longer life expectancy will further exacerbate the nation’s economic health.  

Perhaps the most troubling portent for the nation’s future is its inability to clamber out of a deep and black hole in education. Among the 37 industrialized nations which comprise the Organization of Economic Cooperation and Development (OECD), for example, the United States ranks 31st in mathematics and roughly in the middle on science. Clearly, all of the monetary and fiscal policies in the world will hardly fix this crippling deficiency which has more to do with a cultural indifference to serious and rigorous education.

Prior to Mr. Trump’s coming to office, the federal government was hell-bent on redistributing wealth rather than getting out of the way so that risk capitalists could create wealth. Unfortunately, President Trump’s reforms designed to bring back a full-throated and free market approach to the nation’s financial issues died the moment President Biden came into office.

Meanwhile, in the corporate world, business leaders are fixated on how quarterly earnings affect their pay packages, and when push comes to shove, cutting corners and worse. How else can one explain the utter disregard American companies operating in China have for the human rights abuses perpetrated by the Chinese Communist Party (CCP) on its people. Abuses such as forced labor (unions are illegal in China), the internment of over a million Uyghurs and other ethnic minorities, bans on religious freedom and free expression, arbitrary arrests, and the repression of Hong Kong citizens seem not to bother the likes of executives at Caterpillar, General Motors, Ford, AMD, Micron Technologies, Intel, Texas Instruments, Nike, and many others which are doing a land-office business in China. Apple, most notably, has raised to an art form tax, regulatory, and labor dodges which allow it to stash hundreds of billions of dollars overseas while paying little or no income taxes in the United States. The company, apparently, is nonplussed by the fact that its armies of workers in China are employed for wages and benefits that would be in contravention of United States laws. How the CEO’s of these companies can live with themselves knowing full well that they are profiting from someone else’s misery is a testament to their greed and lust for power.

WHERE DOES THE CUSTOMER FIT IN?

From the way we treat our veterans, clients, patients, students, donors, and citizens – customers, all, to my way of thinking we have a lot of work to do before we can claim to excel in service. A survey by consulting giant Accenture in 2007 showed that 41% of respondents described service quality as fair, poor, or terrible – more recent surveys suggest service is worsening. Perform any human endeavor at that level of proficiency and you are an abject failure. In the services sector, however, that is par for the course. In the Far East, cultural determinants do not confuse service with servitude. As a rule, suppliers will go the extra mile to please a consumer. In the West, and particularly in the United States, the most that a service worker can muster when asked to perform a personalized service is to utter something like, “no problem.” That kind of indifferent attitude is ingrained and certain to keep our level of service quality from climbing out of the aforementioned levels of mediocrity.

In the meantime, off-shore locations feast on our indifference to service and do whatever it takes to secure and maintain a customer relationship. The oft-cited explanation for the comparative advantage of off-shore locations, namely, their low cost, is a facile response to a more complicated dynamic. It is true that off-shore locations enjoy all-in cost advantages vis-a-vis the United States. It is also true, that President Trump worked hard to enhance our competitiveness on the world stage by reducing the oppressive web of regulation; reducing our world-leading corporate tax rates; negotiating better trade deals; exiting globalist compacts financed on the backs of American taxpayers; offering a tax holiday for repatriated corporate profits, among other initiatives. Those initiatives, however, have either been rolled back or will soon be under President Biden’s Administration.

My experience is that, particularly in technical disciplines, services delivered by off-shore locations are superior to ours. An apprenticeship initiative, if it were aggressively expanded to include science, technology, engineering, and mathematics (STEM) occupations, might make us more competitive in this area. In the rarefied world of supercomputers so critical to pushing the frontiers of science and technology, for example, the United States is out-produced by China on the order of two-to-one. So, until and unless we grow a much larger crop of more competent technical workers we will continue to be outperformed by nations more determined, better educated, more dedicated, and hungrier than we are.

CAN THE UNITED STATES GUARANTEE THE PEACE?

If the nation has ceded its economic primacy, its military primacy is being severely tested. United States’ land-based forces are heavily committed to counterinsurgency operations to fend off non-state actors while conventional warfare strategic planning appears to be dead. In Europe, a likely conventional hotspot, NATO and U.S. forces are outgunned and outmanned by a factor of at least ten to one by Russian forces. In the far East, China’s land-based forces outnumber the United States by a factor of at least two to one.

Our ocean defenses are in no better shape. The nation’s principal bulwark protecting our shores is in steep decline. The United States Navy is but a ghost of its former self. The nation now has fewer vessels than it had before World War I. Most notably, our aircraft carrier fleet which must number sixteen in order to patrol three separate ocean theaters now numbers ten or barely enough to protect two theaters. In the Mediterranean, the U.S. Sixth Fleet is a non-entity the result of which is to have created a vacuum that is now filled by the Russians, Syrians, and Iranians. In the South China Sea, where American Navy vessels seem unable to sail without colliding into tankers and containerships, the United States is being challenged by a territorially aggressive and technologically advanced Chinese Navy. Already, an armada of sophisticated dredging vessels is reclaiming land from the sea for the sole purpose of building military airfields and naval port facilities. More worrisome, Chinese fighter jets and bombers now violate Taiwan’s air space with impunity and regularity.

Former U.S. Undersecretary of the Navy, Seth Cropsey, in his chilling and sobering account, Mayday the Decline of American Naval Supremacy, reminds us that China was the naval hegemon in the fifteenth century. Under the leadership of Admiral Sheng He, Chinese sailors coursed the oceans from their territorial waters to the Strait of Hormuz. Chinese vessels of the time were of a length and tonnage that were not to be seen in the West until centuries later. China’s naval supremacy only came to an end when civil servants forced severe budget cutbacks on the kingdom. Does our own defense budget sequestration of 2013 under President Obama, with its mandate to, in effect, disarm the military, ring a bell? The results of each nation’s budget missteps are eerily similar. China, for its part, will probably not repeat its mistake. In all likelihood, it will take the United States a generation, assuming proper funding and political will, to restore the U.S. Navy so that we can confidently state that the nation can project power and protect seaborne commerce beyond the horizon.

Just as troubling as the rickety state of the nation’s military naval forces is the state of the United States Merchant Marine. The Merchant Marine fleet hauls cargo during peacetime and is attached to the Defense Department during wartime to transport troops and supplies into war zones. The United States should hope it does not get into a major conflagration oceans away as it has experienced a dramatic attrition in its Merchant Marine fleet and manpower inventory. In 1960, the United States had nearly 3,000 vessels in the Merchant Marine fleet. Today, the nation has fewer than 175 vessels or less than one-half of 1% of the total vessel count worldwide. Worse, United States-flagged vessels carry a mere pittance of the total volume of goods and materials that transit through the nation’s ports. The consequence of what is obviously a weak flank in the nation’s defense posture is that in the event of a major outbreak of hostilities the United States would be reliant on foreign-flagged vessels to carry troops, armaments, and supplies with all of the attendant security risks.

One can argue that China’s bellicosity toward the United States is as asymmetrical as it is frontal and direct: China’s theft of roughly $225 billion, at the low end and as much as $600 billion at the high end, annually in counterfeit goods, pirated software, and theft of trade secrets from the United States; its monopoly of rare earth metals critical not just for consumer products but for Defense Department applications; its financing of over fifty Confucius Institutes on college campuses and schools designed to spread CCP propaganda; and its unleashing of the Wuhan virus which has cost the lives of more than six-hundred thousand innocent Americans is proof positive that China’s strategy is to envelop the United States on all fronts. And, the United States’ military is playing into China’s hands by its determination to “feminize” its armed forces. Progressive ideologues both in the Biden Administration and the Pentagon are using the military as a social experiment petri dish which is undermining the combat readiness of those in a position to protect our shores in the event of war. All you need to know in this regard comes from the Current Commander in Chief, Joseph Biden: “We’re making good progress designing body armor that fits women properly; tailoring combat uniforms for women; creating maternity flight suits; updating – updating requirements for their hairstyles…”

AMERICA AT A CROSSROADS

In sum, if as the great military historian B.H. Liddell Hart suggests, a nation’s Grand Strategy is a composite of its political, military, economic and diplomatic tools in its “arsenal” which can be brought to bear to advance a state’s national interest then the United States appears to be convulsing in its gradual decay. As I have argued in my essay, The United Kingdom Is Resurgent, the former world economic power, lost its supremacy because it failed to adapt to the winds of change which buffeted its shores long after the economy reached its apex in the early twentieth century.

It is also provocative to think that there might be a “natural” life cycle to nations as there is to human beings that is irreversible. Regardless of one’s view in embracing one or another theory that might explain the demise of nations, there is no reason to remain indolent in resisting such decline even if there is only the remotest possibility of such an outcome. Keep in mind that the demise of Rome was hardly cataclysmic but the result of a long succession of imprudent decisions made by the Empire’s leaders.

Top of Form