Yes it has been a lot of time that I have posted something and found out that I need to simplify things so started a podcast as many of the readers don't want to read the complexities I write. So as I always do there are multiple things happening in the economy, while many Indians have started to invest in volatile markets I think it is a good sign that first time investors are rising and thus investing their liquidity in markets.
Macroeconomic Views
As i mentioned in my previous blog that there seems to be demand in 2 wheeler as well as 4 wheeler, there seems to be increase in bookings as since the lifting of lock down partially it came in the news that Maruti Suzuki have had bookings of 4000-5000 for hatchback cars in a day and the number is increasing and will definitely increase as more people are preferring to won a vehicle and transport rather than using public transport.
The government has done a tremendous job in giving out the stimulus package but there is water water everywhere and not a single drop to drink currently, many MNCs or big business houses have benefited from this as they took fresh loan at a very low interest rate, this decision of the government also helped in controlling the inflation rate as there was a quite risk of inflation growing amidst the crisis.
Many of us would be thinking how the inflation plays role in such scenario but too much money in the system to spend would ultimately raise the prices as the consumers will be having more money in their pockets and also there is a liquidity trap like situation, the RBI has further reduced the interest rates to 40 basis points leading to downfall in interest rates and cheaper loans.
Reliance also seems to have taken a hit from the demand side shock and is bringing in investors to it's Jio Platforms Ltd. to reduce it's debt. This pandemic situation made consumers as well as investors realize that oil is not everything as we have also seen negative prices wherein the producers were willing to give money to purchase crude oil, but as the demand for oil is rising there seems to be awareness among-st the consumers for climate change and seems that climate change will soon overshadow the pandemic situation and the focus on infrastructure development in a sustainable way rather than what we have been doing till now, just focusing on the cost and means to increase profit margins.
Financial Reforms
I am of the belief that there must be financial reforms as well as administrative reforms within the government, any reform would have to be implemented by the system and execution must be taken care of properly which is not yet seen that much and ease of doing business as well as security is the main concern for the businesses while doing. Though too much liberalisation would also impact negatively as Indians have the habit of over utilisation of what has been given and then complaining also.
ESG (Environment, Sustainability and Governance)
MSMEs must now work and grow considering these three important factors as they are now needed to succeed in the future. Keeping environment in mind many startups have to look for opportunities in these areas as there is a tremendous void available in these segments. Good governance practices and the habit of savings for the time of uncertain crisis as they now have become part and parcel of the business scenario.
Work from Home
While work from home is going to be the new normal in many industries for certain percentage of the employees, it is necessary that we look at developing proper habits and have a routine, thought the productivity is going to decrease it is hence required to take essential and timely breaks as well as do other stuff such as playing board games and some outdoor games also. But even in these times we are maintaining physical distancing but we need to remain social as we were and keep in touch with our connections.
Macroeconomic Views
As i mentioned in my previous blog that there seems to be demand in 2 wheeler as well as 4 wheeler, there seems to be increase in bookings as since the lifting of lock down partially it came in the news that Maruti Suzuki have had bookings of 4000-5000 for hatchback cars in a day and the number is increasing and will definitely increase as more people are preferring to won a vehicle and transport rather than using public transport.
The government has done a tremendous job in giving out the stimulus package but there is water water everywhere and not a single drop to drink currently, many MNCs or big business houses have benefited from this as they took fresh loan at a very low interest rate, this decision of the government also helped in controlling the inflation rate as there was a quite risk of inflation growing amidst the crisis.
Many of us would be thinking how the inflation plays role in such scenario but too much money in the system to spend would ultimately raise the prices as the consumers will be having more money in their pockets and also there is a liquidity trap like situation, the RBI has further reduced the interest rates to 40 basis points leading to downfall in interest rates and cheaper loans.
Reliance also seems to have taken a hit from the demand side shock and is bringing in investors to it's Jio Platforms Ltd. to reduce it's debt. This pandemic situation made consumers as well as investors realize that oil is not everything as we have also seen negative prices wherein the producers were willing to give money to purchase crude oil, but as the demand for oil is rising there seems to be awareness among-st the consumers for climate change and seems that climate change will soon overshadow the pandemic situation and the focus on infrastructure development in a sustainable way rather than what we have been doing till now, just focusing on the cost and means to increase profit margins.
Financial Reforms
I am of the belief that there must be financial reforms as well as administrative reforms within the government, any reform would have to be implemented by the system and execution must be taken care of properly which is not yet seen that much and ease of doing business as well as security is the main concern for the businesses while doing. Though too much liberalisation would also impact negatively as Indians have the habit of over utilisation of what has been given and then complaining also.
ESG (Environment, Sustainability and Governance)
MSMEs must now work and grow considering these three important factors as they are now needed to succeed in the future. Keeping environment in mind many startups have to look for opportunities in these areas as there is a tremendous void available in these segments. Good governance practices and the habit of savings for the time of uncertain crisis as they now have become part and parcel of the business scenario.
Work from Home
While work from home is going to be the new normal in many industries for certain percentage of the employees, it is necessary that we look at developing proper habits and have a routine, thought the productivity is going to decrease it is hence required to take essential and timely breaks as well as do other stuff such as playing board games and some outdoor games also. But even in these times we are maintaining physical distancing but we need to remain social as we were and keep in touch with our connections.
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