India recently elected its new Prime Minister, and he is none other than Narendra Modi. He was the previous PM, too. Re-selection of Modi government proves that citizens of the country are fully satisfied with his actions and policies. Now after the elections, everyone is looking for the answer that who will get benefit from the government. Which sector will get more, and which will get less from the newly elected leadership.
After he got elected, Narendra Modi headed the first Cabinet meeting with the Union Ministers, and he made path-breaking decisions for the development of the society. Let’s find out which sector in India are going to get benefits from Modi government 2.0.
Prime Minister’s Kisan Scheme for Agriculture Sector
As India’s majority of the population lives in rural areas, so the agriculture sector is highly crucial for the growth and development of the country, and that’s why Modi government decided to cover all the farmers. It doesn’t matter whether they are small farmers or not, because everyone will get ₹6,000 in their bank accounts under the Prime Minister’s Kisan Scheme.
As per the new revised scheme, almost 14.5 crore farmers would benefit from this plan now. Moreover, the Union Cabinet also approved a proposal to give pension to over 10 million farmers. The center is willing to spend ₹10,774.5 crore for three years on this program. Let’s hope for the best for its implementation. Moreover, Cabinet also approved a scheme with a total outlay of ₹13,343 crores to control the diseases among the livestock to help the farming community.
The goal or a purpose behind all these schemes is to boost the agriculture sector because it only grew 2.9% in the fiscal year 2019 against the rate of 5% in the previous year, which is not at all glorious.
Prime Minister’s pension scheme for trading industry: Traders will get benefits
In its first Cabinet conference, the Modi government 2.0 signed a new scheme, which will provide a monthly pension of ₹3,000 to retail traders as well as shopkeepers and self-employed persons after reaching the age of 60 years. As per the statistics, this scheme will benefit three crore retail traders and shopkeepers, and over five crore traders will join it in the next three years.
Moreover, according to the official statement, all retail traders, self-employed persons, and shopkeepers with GST turnover below ₹1.5 crore and their ages are between 18 and 40, they can enroll in this scheme in over 3.25 lac central service centers spread across the country.
Prime Minister’s Scholarship Scheme for Students
The Prime Minister has increased the amount for the Scholarship Scheme, which is the part of the National Defense Fund, and it benefits the students to a great extent. As per the new agreement, the rates of scholarship increase from ₹2,000 to ₹2,500 per month for boys and ₹2,500 to ₹3,000 per month for girls. Moreover, the government has announced to give scholarship to the wards of state police personnel who martyred during terror attacks, and the quota for them will be 500 per year.
When it comes to business, expenses are something that a business owner is always looking forward to cutting down, whether it’s a large or small-scale business. Cracking down the unwanted costs is one tricky job as well; it needs creativity, innovation, and making the right decisions at the right time. What does a company want from a business? Profit, so one has to keep an eye on a single increase or decrease in expenses because every penny counts in an uncertain economy and doing so will lead you to some low-cost business services. Here are the following methods to down unwanted costs for business services.
Printing is a costly operation that requires a lot of equipment. Ink cartridges are not cheap, if you are printing every day, you have to refill it every day, and there would be maintenance cost as well. The entire operation is pricey for no reason. As we are living in a digital age, one can use hard disks to store data instead of using piles of papers and computer can back up your data, too.
Reduce supply expenses
Instead of investing a lot of money on traditional office vendor, the company may avoid over costing by using large discount suppliers like BJ’s, Amazon or Wal-Mart.
Cut production costs
As a business owner, your foremost duty to cut material costs and optimize your resources. By using the leftover, recycling, efficiently getting the most out of the real estate. To maximize the use of your available resources, track and measure operational efficiency.
Lower financial expenditures
Additional expenditure needs to cut down to avoid unwanted business costs. A company must have a look at the insurance policies and financial accounts to reduce the price of the services..
Use Internet Marketing
Instead of spilling thousands on TV ads or billboards, the company may use search engines to generate traffic to your websites. By using Facebook, Twitter, and blogs, you may find a plethora of customers, and these methods are cheaper, as well as more effective. For this, all you need to do is to find out what will be a better method for your targeted demographic, social media, or traditional media.
Try to reduce business costs by operating in a virtual style, whenever possible. In modern time, you can arrange your meetings on Skype and on other online applications that provide you quality services. Moreover, unnecessary trips will do nothing but waste enough time and cost of your company. So, you can avoid spending a high amount of money on traveling by taking strategic steps.
Audit your monthly subscription billing
One of the most effective measures to minimize your extravagant cost of business services is by auditing every month. Most businesses subscribed to auditing software like SaaS, and it will continuously hit your credit card months after month. On the other hand, you can hire an employee for the auditing so you would know about every penny that where it goes.
Jet Airways, once the top-notch airline in India, is now facing problems, and before looking into it, let’s start with a background of the brand first. The company came into being when the upper middle class and elite class prefer air travel only, and because of this, Jet Airways did extremely well and becomes the first choice for the passengers till 2005. The strategies of the brand were to provide excellence of services, but they charge as per their demand, and customers pay them without hesitation, so the business was doing great from the era of the 1990s till mid-2000s.
What happened after 2005? What are the reasons behind Jet’s Closure?
Later in 2008, when the financial crisis hit the market, the Indian aviation market declined as it was an emerging market at that time, and the passengers dropped, due to which companies had to reduce the prices. But, when the fuel prices increase, all the brands have to raise the costs, and Jet did the same.
Things changed after 2005 when LCCs started to take over the place of Jet Airways with their customer-oriented pricing policies, and Jet found it difficult to compete with the new brand because of the high cost it charges throughout its career, due to which, the company’s business model affected badly.
Even though Jet did the same as other aviation brands, however, the former privately-owned firm had to face other obstacles, too. Firstly, it acquired Air Sahara at the time of crisis, and it had to pay a hefty sum of money. Secondly, other low-cost airlines started rising in India’s skies, and Jet couldn’t do anything but started losing its passengers. It was a tough time not only the company’s shareholder but for the workers, too. Jet needed to reduce its operational costs, but instead, it fired 1900 employees as the brand was under the burden of heavy debt, and that created another crisis for the company. Workers came out on the streets to protest against Jet, and then Naresh Goyal had to re-hire workers again. Things seemed better, but there were much more to come.
The Roller-coaster journey of Jet Airways
Later in 2009, pilots of the airline came out on the roads for protest, because the company didn’t let them create their union, and the owner solved this issue after a great hustle. In the same year, Jet launched another subsidy, Jet Konnect, and it was also a low-cost airline like JetLite (Air Sahara). The newly launched airline did a good business in starting years, but the company was still in debt, and it has to low its cost not only for the full-length carrier but for the subsidies, too. So, it was best only for short-term profit as the company flourished its business by 20% in India.
In 2012, the government of India allowed foreign airlines to take up a share in Indian airlines, and then Etihad lined up with Jet Airways by buying 24% share of the company. Later in 2013, Jet decided to compete with its national rivals; SpiceJet and IndiGo. Both airlines were low-cost carriers, and because of them, he also reduced the cost, but it wasn’t a smart move as the brand kept the high running costs. The year 2013 was a bit better for Jet, but 2014 was a complete disaster because of debt.
In 2015, Jet Airways again managed to reduce its losses, and the year 2016 was a good financial year, too. Things again changed in 2017, when IndiGo started dominating the Indian skies because of low-cost business strategies, and the international aviation market was also not ready to give the brand any chance. Meanwhile, fuel prices surged massively, and Jet started earning good again for a while. However, many investors refused to invest in the brand because of the chairman, Naresh Goyal. They wanted him to resign, but he stubbornly stayed there to save his seat. At last, he stepped down in 2019, but Jet becomes a failure now as many investors leave the company one by one, their fleet size reduced or almost finished in less than a year.
Future of the Brand
Right now, there is only one hope for the brand, and that is Etihad Airlines. If Etihad purchases Jet Airways, it still has to pay its $1.2 billion debt, which is massive, and Etihad is also facing financial crises, so the future of Jet is not so bright.
FIFA 2022 World Cup Qatar, sounds like a massive breakthrough for not only Qatar but for the wider MENA region, and it would revolutionize the sporting development economy, too. The state’s goal is to be a global center of excellence for all aspects of the sport. With the benefits extending across Football maniac already exist in Arab countries, it will boost to another level, and will also make a positive bonding between Qatar and its neighboring countries. Here are the following impacts that Fifa will have on Qatar and other MENA countries.
Patching up with the neighbors
Recently, Gianni led Fifa summit in which he presented the offer to include 16 more teams in the tournament. Qatar has to share some games with neighboring countries because of limited stadiums, and it is difficult to manage lots of teams by only one nation. Back then in 2017, Bahrain, Saudi Arabia, the United Arab Emirates, and Egypt cut relations with Qatar because of it allegedly supporting terrorism. This tournament would not only reunite the countries together but also end amid tensions with Saudi and other regions.
Healthy Culture Exchange
There are millions of football fans all around the earth, and the game unites people together on one platform to support the best teams and players. As Arab countries often face criticism just because of terrorism, this tournament will help Qatar and these countries to prove themselves as one of the most hostile people in the world.
As Qatar is going to host one of the massive tournaments of the Middle East in the sporting sphere for the very first time, hopefully, it would have a significant impact on the Qatari economy before, during, and even after the events. High revenues and investments are speculating in sporting venues, transports, hotels, broadcasting, and leisure facilities will give a boost to the economic growth, and it will also generate fixed-term employment in the region as well.
Rise in Investment
As per July report 2013 by Deloitte, Qatar will likely to invest around $200bn, out of which, $140bn will spend on transport infrastructure including a new airport, roads, and the Doha Metro. While $20bn will reserve for tourism. It will not only help in uplifting the FDI, but the domestic investment will increase, too. It will also boost the economy.
More Bids to More Events
FIFA World Cup may open the path of their super leagues of the tournament in Qatar as there is a chance that Doha may win the bid for Olympics as it has the resources. In January 2015, Sheikh Saoud bin Abdulrahman Al Thani, the secretary-general of the QOC said, Qatar would continue to offer for prime international sporting events. It means, bidding for hosting matches from foreign Football leagues, but as Sheikh Saoud said, “Qatar is open to any sport.”
Qatar’s potentiality to organize tournaments has already proved, and the state is supporting clubs, athletes and events from around the globe on a week-to-week basis is increasing rapidly. One of the challenges will be the development of interest in athletics among all Qataris, with the aim of improving health and welfare, and securing more medals and trophies for local athletes.
Chickpea, popularly known as Chana, is one of the most desiring pulses in the Subcontinent. The highly essential Rabi crop is sown during the time of October to November, but it harvests from February to March. India is one of the largest users of Chana, and the ruling producers are Madhya Pradesh, Karnataka, Rajasthan, Andhra Pradesh, and Uttar Pradesh.
The Demand of Chana Commodity
As of February 2019, the subnormal growth demand of Chana and a proportionate supply of it force the market to lower the trade level. According to the statistics, Chana (Kanta) price was at INR 4,200 to 4250 a quintal, while on the other hand, Desi Chana rate was INR 4,150 in the Indian markets. When it comes to Vishal Chana, per quintal price rate was 4,100 Indian rupees.
When we look at the Stats, we know that since the start of December 2018, the future of Chana has seen under pressure. As per the reports of the National Commodities and Derivative Exchange (NCDEX), the price level for Chana commodity fell about 6.7 percent till date.
The reason for low price rate of Chana commodity is because the output came in higher during the last two years by producing and importing a high amount of the product. As per the records, India imported over 31 lac tonnes of the commodity in the past three years. Moreover, the supply (100 tonnes) raised more than the consumption (70-75 tonnes), which results in the fall of the Chana demand.
Companies that are dealing with Chana (Chickpea) Commodity
India is the biggest importer of Chana, and it imports Kala Chana, Split Chana, and other types of the product from many countries like Pakistan, Australia, Myanmar, United Arab Emirates, Kenya, etc. As e-commerce is popular more across the globe, you can buy any variety of Chana from one of the largest online store, indiamart.com. Moreover, you can also buy from another accredited e-commerce website, Amazon. If you don’t want to buy from the site, then go for the Indian domestic markets, and you will get high-quality Chana from there.
What are the famous Chana Dishes in India?
In India, there is a diversity in the dishes of Chana, and people love to make different types of it with the use of local masala (Spices). Whether you like Kala Chana, Chana Dal, Chana (Chickpea) Curry, White Chana, or others that can serve with either rice or Roti (tortilla), you can find the variety of the dishes in almost every traditional restaurant of the country.
South American country, Venezuela, was one of the most secure and stable economies in the world, and then the nation got some self-serving politicians in power, who shook the country’s foundations by creating hyperinflation in the country. Isn’t it scary to live in a place, where the annual rate of inflation is 1,300,000% on average? Isn’t it horrible to deal with corruption, social unrest, capital controls, self-serving politics, a global economy bust, and price-fixing? Indeed it’s quite a terrible situation, and Venezuela is sadly going through with all the negative stuff that can destroy any economy’s growth.
What happened to Venezuela?
It all initiated in 1998 when Hugo Chavez came into the government, and he raised the oil prices, which only rose government finances and allowed the socialist regime to boost the spending and borrowing. The conflict began in 2003 when the labor protest at PDVSA, which is the state’s oil company. The strike influenced the production of oil negatively, and it also crippled the entire Venezuelan economy as the Gross Domestic Product fell by 27% within the first four months of the year 2003.
Chavez instituted some measures like nationalization of many industries, installation of import controls, the introduction of a currency peg, and the establishment of subsidies on food and other consumer goods, which were enough to raise the inflation crisis. When the crude oil price collapsed in 2014, the Venezuelan economy faced another challenge; the country’s economy shrank 30% from the duration of 2013 to 2017, which is a drastic change. Moreover, in 2018, the Real GDP was fell by about 18 percent.
The ongoing President, Nicholas Maduro first won the elections in April 2013 after the death of his mentor and predecessor, Chavez. He elected twice for six years, and in his first term, Venezuelans blame him for ruining the economy by choosing fiscal deficits rather than promoting welfare spending.
What are the challenges the Venezuelan economy is facing?
Venezuela is one of the prosperous countries that have oil reserves, and its economy is highly dependent on crude oil exports. When Maduro came into power in 2013, then he didn’t have any backup policies for future fluctuations in the oil prices. He didn’t know how to save its country from the collapse of crude oil prices in 2014, which led the economy to move downward, and people have to face hyperinflation.
The hyperinflation caused many Venezuelans to flee the country, and as per the UN report, almost 3 million people have moved to other countries in the last three years. Those, who are still living in it are facing the challenges of scarce resources, poor healthcare system, and the shortage of clean water, electricity, toiletries, and high unemployment.
You might astonish how war can affect the stock market, but we can explain with recent events. Well, they both are entirely two different things, but war is one the crucial issue when it comes to making money in the economy. The stock market reacts differently to different variables, but war can entirely make it shut down. For instance, in the time of World War 1, the stock market closed for four months throughout the world after the war started.
No matter which part of the world whether it is US-Korea, US-Iraq, India-Pakistan, or any other country have conflicts or have a war-like situation, it does affect the stock market negatively. In the time of the war, people start selling their bonds and shares and make fewer investments as there is a state of instability, and they start investing in companies like weapons and gun powder, etc.
To determine the influence of the war, let’s look into how the wars that have happened recently and have shaken up the stock market. Many people have the impression that the recession of the 2000s started with terror attacks on 11 September 2001, because after that incident the events have dropped down sharply.
North Korea Testing Missiles
Geopolitical tensions occur due to North Korea, which may trigger a war-like situation that eventually impacts other stock markets across the globe. According to the report, if North Korea tests its ballistic missile, then there will be a sharp decline in its stock market.
India-Pakistan Air Conflict
There is no doubt that the stock market has affected by war jitters. In the time of peace, we both neighbors have a strong rally, but the market immediately moves to worse because of Indo-Pak Air Strike, and there had been a decline of 200 points in Sensex and 10800 falls in Nifty. While on the other side, Karachi gets the shock of a 4% loss in its stock Exchange tank. Even after the Kargil war, there was a decline in the stock market of both countries.
Well, wars are of different categories and make sure which one you want to highlight. A war in some cases can be beneficial for the economy take, for instance, the US markets, when the United States decided to go back to Iraq in 2003 we’d currently been in a 2-year bear market, and once the invasion of Iraq started, the markets began to bullish again. And we went on to have a 4-year bull market, the World War, which is a whole different ball game, and it was generally bad for economies particularly for those involved in the actual war. For instance, look at Germany, it was only between 1933 and mid-1939 that the country prospered, but once the war declared in early fall of 1939, their economic prosperity was no more. Now on the other hand, once a war is over this generally generates a new bull market as hope comes back to investors.
A professional approach and rich quick mentality, the delicate blend of both is required to make the outstanding trading setup for retail traders. Every successful trader has a different style and mind setup. But in the end, the art is ultimately left up to you, and we can only help you with science.
The most successful trading setup includes price action & a mix of 5 different tools which are listed as follows:
- Trend indicator
The best trading setup for retail traders is using trend indicator that means not going against the trend, and it makes the job more difficult. It’s preferable to pick moving average to get an overall idea of the Trend.
- Try to use multiple moving averages to get a good understanding of small, mid and long term trend.
- Using Gann recommended moving averages will help you further.
- Momentum indicator
In retail setup, you might have heard that trend is your friend, but not all the time, because it’s only your pal till it lasts. Trend’s trading is quite easy, but knowing whether it would stay consistent or not is the essential aspect of the trading setup. We may have seen some beginners complaining about reversing back of trends after entering the business. Therefore, checking the trend’s strength is more crucial momentum indicator that works best for the job.
- Multi-time frame charts
The use of multiple times frames makes your trading setup much more efficient.
- Time cycle tool
While considering the price factor, most traders neglect the essential element, which is equally responsible for stock movement is a time cycle. Stock market charts consist of two axes: Price is plotted on the x-axis, while time plotted on the y-axis. Professional traders also take into account time axis which gets them more than 50% edge on retail traders. Time-action is as much crucial as price action.
- Support/ Resistance levels
To plot this, one should use Fibonacci levels and look for its confluence with Gann levels or pivot points. Higher the confluence of multiple levels, support or resistance level will be stronger.
Please, practice these concepts by selecting only 3 to 5 stocks, and keep paper trading in them daily. You will feel amazed at how these tools work like wonder.
Systematic Investment Plan (SIP) allows investors to invest a fixed amount in a mutual fund scheme regularly. Many people didn’t know about it, but its popularity has increased in the past few years, and now, every wise person is ready to secure his/her future through SIPs. Let us tell you how you can make crores (millions) using SIP model.
How SIPs got recognition among individuals?
SIPs are getting famous from the last few years because of demonetization, and individuals unveiled the benefits of SIP and mutual funds. Though many investors were already familiar with the Systematic Investment Plans, still individuals found out more about it from Amfi’s Mutual Fund Sahi Hai campaign.
SIP is a tool that encourages investors/traders to invest consistently in a mutual fund scheme, and it also makes it possible for you to decrease or increase the investments in those schemes over time. It also discourages lump sum investment so that salaried traders can invest, too.
Why should you invest through SIPs?
We can give you some reasons for investing in mutual funds through SIP.
Firstly, it will bring financial stability and discipline in your life. Secondly, you can invest regardless of market index level, etc. Moreover, by using the SIP model, your investments will automatically invest in a scheme without doing anything.
How to make Crores using SIP model?
Mostly the returns on SIP equity mutual fund are in between the range of 12 to 18%, but let’s assume the average SIP returns in 20 years will be about 12% annually. As per the assumption, you will get 1.9 crores in 20 years by investing 20,000 per month. Isn’t it great to know that you will get returns in millions after spending just twenty thousand monthly? We are sure it is, but let us tell you how can this happen. Well, your actual investment in twenty years would be 20 years = (20,000 Rs) x (12) (investment per annum) x (20) (investment over a period) = 48 Lacs. The returns on your actual investment will give you 1.9 crore with a fixed amount of 20,000 per month, but you can even increase your investment every six months or annually as per your suitability.
Moreover, you can also create a portfolio of mutual funds by investing 20,000 monthly through SIP, but make sure to not have lots of them (only 2 to 4).
You can invest by choosing any of Large Caps Fund, Balanced Fund, Mid & Small Caps Fund, Multi-Cap Fund, and more. There will be plenty of combinations for you to invest your 20,000 per month, so pick wisely.