All posts by Shubham Yadav

Getting the crux is the key .. You won't get honey till you breed bees..

Indian Defence Sector: – A bid to gain independence

India is a vast nation, both in terms of landmass and population with enormous conflicts with two of its nuclear-powered neighbours Pakistan and China. India is a peace-loving nation but its working can be understood by famous Latin saying “Si vis Pacem, Para Bellum” which loosely translates to “If you want PEACE, prepare for WAR”. To protect its sovereignty, integrity and National interests, and to feed its 1.44 million warriors a huge lot of advanced weaponry is required. To meet this demand India looked west, big arms exporters exploited this vulnerability of our nation and gained major checks. India due to lack of its indigenous weapon industry’s lack of sufficiency was forced to accept imports as a norm to meet obligations.

India is the world’s second-largest arms importer from 2014-18, giving up the long-held tag as the largest importer to Saudi Arabia. It accounted for 12% of the total imports during that period.

Indian imports decreased by about 24% during 2009-2018, citing delays in deliveries of weapons produced by international suppliers, such as Fighter aircraft ordered from Russia in 2001 and submarines from France in 2008.

Russia accounts for 58% of Indian arms imports, compared to76% in 2009-13. Israel, the United States and France all have increased their arms exports to India. The Russian share in Indian imports is likely to go up sharply during as India signed several big-ticket deals recently, and more are in talks. These deals include S-400 air defence systems, stealth frigates, AK-203 assault rifles, and deals for Kamov-226 helicopters, Mi-17 combat helicopters and short-range air defence systems.

As India reduced imports, Russian exports of arms were dented, decreasing by 17% between 2009 and 2018.

  • Now a major question formulates. What is the reason behind this insufficiency of Indian Arms Industry?
  • European nations were under total crisis during the world war, they were in pressure to supply their soldiers with weapons to fight, this high demand of weapons caused industrialists to invest on production and hence established big arms Industries. After settling from war and its aftermaths, these nations started exporting theirs produces to neutral grounds. Many tactics were employed to keep this demand stable, new rebellious groups were funded, terrorists were raised, governments were unstabilised, nations were threatened, and proxy wars were waged all over. The timing of Independence of India and conflicts with neighbours created a big potential market in India and continuous wars over that time kept the demand thrive.
  • No country is always at war, and the arms industry is one such industry that wants regular and stable consumers. European Nations along with the United States have lenient policies for possession of arms, but India has a strict policy because of high risks of misuse, due to this regional Arms Industry has never been able to hold ground in India.

In the tenure of Modi Government, policies have been modified to reduce the dependency of India on imports by increasing domestic production. There have been observed conclusive increase in Indian Defence exports.

 

 

 

Make in India

The Narendra Modi government cleared 39 procurement proposals worth 889 billion (96% of the value of total proposals) were categorized as Buy Indian and Buy and Make Indian

The government’s policies encouraged domestic production and export of defence equipment under Narendra Modi’s flagship scheme Make in India in Defence. It has resulted in conclusive growth of defence export from the country as it jumped by 7 times in just two years, from $213 million in FY 2016–17 to $1.5 billion in FY 2018–19.

In July 2015, the MoD eased policies of export regulations and terminated asking multiple assurances on end-use from foreign governments.

FDI in Defence

Even though Narendra Modi government has been toiling hard to get FDI in the defence sector, firstly by raising the cap from 26% to 49% through Direct route and 100% through Ministry of Defence’s approval, whereby the investing foreign entity can have ownership up to 100% in the defence manufacturing.

India is dependent on imports especially on western nations, but humungous steps have been taken to reduce this dependency and these steps are now producing evident results. All that is required to be done now is keep the momentum going and gain independence in this sector as this will be a booster towards gaining Super Power Status

INDIA’S MASSIVE TRADE DEFICIT WITH CHINA; LOWEST IN FIVE YEARS

India’s trade deficit with China sinks to $48.66 billion in 2019-2020 which is lowest in five years. Now what is the trade deficit? Trade deficit can be defined as an amount of imports of a particular country exceeding the amount of its exports. According to the data, exports to China in the last financial year stood at $16.6 billion, while imports accumulated at $65.26 billion. India and China are two very well-known countries with ancientCivilizations, their partnership in every major field like trades has made an ideal example since over 2000 years. But from the last few weeks the India- China relation has deteriorated. The main cause of the clash was a dispute over the sovereignty of the widely separated Aksai Chin and Arunachal Pradesh border regions. So, it can be assumed that this clash played a vital role along with lower imports and higher exports as the major cause of India’s significant reduction of trade deficit.

The major imports from China cover electronic gadgets (clocks, watches, smart phones, calculator, laptop etc.) plastic materials (toys, plastic containers, bottles), sports goods, musical instruments, furniture, chemicals, irons, mineral source, metals and fertilizers.

Foreign Direct Investment (FDI) from China in India fell to $163.78 billion in 2019-2020 from $229 billion in previous monetary, the data said. 14% India’s imports are recorded by China and the major portion comes from critical pharma ingredients and telecom.

 India was able to captivate FDI worth $2.38 billion from 2000 to March 2020 but in April the government has narrowed the standards for FDI coming from the neighboring countries especially which share a land border with India like China.  As per FDI, any company or individual can steep in any field with the government approval.

Top sectors like metallurgical (USD 199.28 million), services (USD 170.18 million), electrical equipment (USD 185.33 million) which showed maximum FDI from China in the period of April 2000- March 2020.

Around 371 products have been identified for technical regulations. Out of 371, technical regulations have been assigned for 150 products worth $47 billion of imports.

The reduced imports from China also helped the U.S. extend its lead as India’s largest training partner against trade off $88.8 billion with US India straight with China was just $82 billion. 2019-2020 year’s trade deficit of India is almost similar to 2014-15, when the Narendra Modi took first post, but it was 34% higher than 2013-14, stimulating the government to suggest that the further steps taken in recent months have yielded results.

In that definite time when entire world has been put off financially due Corona virus pandemic accompaniedby India-China war; in the standing of that point taking such steps like restricting the imports from China would be a great decision for India.

The Country and countrymen both are hopeful, at the same, of time what lies ahead in future.

“A large chunk of these originate from China. We will pursue import substitution,” a senior official said.

Communism and Revolution

“The philosophers have only interpreted the world, in various ways. The point, however, is to change it.”
― Karl Marx, Eleven Theses on Feuerbach

February 1848 saw the publishing of ‘The Communist Manifesto’ that would go on to become one of the major revolutionary writings propounding an ideology available to people in search of liberation. It called for a revolt by the working class against oppressive capitalism. Its maxim being, “Workers of the world, unite!” quickly became a rallying cry.Communism as an ideology has always called for a classless society, where everything is shared equally. A revolutionary German philosopher, Karl Marx, has been claimed to be the father of Communism. Marx proposed a new ideology that promoted a society where everyone would be treated equally. Richard Pipes in his book “Communism: A History” explains that the emergence of Communism can be traced back to Ancient Greece. One of the main criticisms of the ideology has emerged from the prevailing private property ownership, and such criticism can be easily found even during the period of enlightenment. The upheaval during French Revolution pushed Communism into the political sphere. Since then, communism has come to be associated with a revolution of a kind that had the power of overturning the prevalent economic structure that has been promoting inequality amongst men.

Lenin’s October Revolution in 1917, with the establishment of the first communist government, and its further spread to China with Mao Zedong’s rise to power marked the beginning of the political journey of communism. Taking inspiration from the Russian Revolution, the Communist Party of China was formed. The fall of the Berlin Wall and the rise of ‘free market’ capitalism backed this ideology to a corner and it saw a gradual decline all over the world.The following years see the collapse of communist regimes around the globe, for instance, Czechoslovakia, Hungary, Bulgaria, Poland, Romania, Benin, Mozambique, Nicaragua and Yemen.In 1991, the Soviet Union is dissolved with the rise of a new Russian President Boris Yeltsinwho banned the Communist Party. Communism soon ended in countries like Afghanistan, Albania, Angola, Congo, Kenya, and other nations. North Korea remained nominally communist, although the North Korean government identified its ideology as ‘Juche’ (self-reliant).

The ”great experiment” had failed miserably. The Communist Parties that retained power after the war did not now constitute a threat to the ”hegemony of the global capitalist system”. Moreover, the majority of the nations decided to organize their economy in the lines of capitalism, thereby suggesting that the economic order of the world was majorly capitalistic. The Communist parties that maintained their authority were, however, compelled to cave into the establishment of the ‘the market’ by imitating various features of contemporary capitalist societies. Other than this, the sphere of International Relations is also portrayed in a very skewed and unfamiliar manner in the initial writings of communism. When compared to realism and liberalism, the latter put forward a world political scenario that resonates with those presented in the newspapers and magazines, thereby making it easier to comprehend, but communist thoughts aim at something “deeper, underlying-indeed hidden-truth”. It explains that world politics is all about wars, treaties, aid operations and all these occur within the global capitalist structure. Moreover, these structures have an enormous influence over such events and hence, while studying the global world structure a broader understanding of capitalism is necessary. Communism also argues that the capitalistic structure ensures that the powerful and the wealthy continue to prosper at the expense of the poor and the powerless.

The inception of communism has been attributed to the writings of Karl Marx who was also the founder of the Communist movement. Marx’s thoughts originated against a backdrop of great industrial change.Moreover, he explained the bourgeoisie (the property-owning class) and the proletariat (the industrial working class) while looking at history as a story that talked about the struggle of the oppressed against the oppressor. It is also imperative to mention that Marx while writing about the class struggle, talked about ‘mode of production’. The mode of production as mentioned is a combination of the ‘productive forces’ along with the ‘relations of production’. According to the philosopher, a new stage emerges when the productive forces and the relations of production are in a direct clash. For instance, we have the emergence of the primitive communism which was not a society that experienced clashes amongst classes as there was none, but the emergence of private property institutions led to its decline. This was followed by the slave society, the feudal society, and ultimately capitalism. Each stage experienced its struggle amongst the owning class and the ones who worked for that class.“The history of all hitherto existing society is the history of class struggles,” Marx famously wrote. The modal quality of these relations in capitalism is in constant confrontation with each other believed Marx and hence, capitalism had in itself the seeds of destruction.  

While putting forward the role of the Bourgeoisie, he explained that they mercilessly exploited the Proletariat. The work of the Proletariat, argued Marx, created great wealth for the capitalist thereby giving impetus to expectation. For instance, a factory worker might be paid $2 by the owner to produce a yard of cloth. After which the owner then sells the cloth for $5. In this way, the owner/capitalist, controlling the process of production, makes a profit for himself. The worker, however, does not benefit in any way from this added value and also, fails to benefit from the fruits of his/her labour. This thought further gave rise to another theory of Marx claiming that ‘Alienation’ was intrinsic to capitalism. This unjust situation had been contented to give rise to feelings of resentment amongst the proletariat which would lead to the ‘overthrow’ of the capitalist system and would eventually lead to a revolution against the Bourgeoisie. Marx wrote that “Modern bourgeois society with its relations of production, of exchange, and of property, a society that has conjured up such gigantic means of production and exchange, is like the sorcerer, who is no longer able to control the powers of the nether world whom he has called up by his spells.”

Karl Marx and his writings have shown the world that they can influence people unlike any other. The thoughts of this philosopher have changed and developed over time. Marx’s idea which maintains that communism would give rise to a classless society has appealed to many as a result. The emancipatory nature of these thoughts has often led people to associate communism with a revolution which would lead to a complete overturn of the prevailing modes of production thereby ushering in a society which would free all men, and not only those owning the modes. Moreover, a vast number of Communist revolutions, most often a proletarian revolution, to free themselves from their oppressors has linked Communism with Revolution. Followers of Marx all over the world believe that the workers need to unite and free themselves from the shackles of the capitalists once and for all. This would be to create a world that would treat everyone equally. Thus, the proletarian revolution needs to happen in nations all over. This thought is reiterated time and again which has led to the usage of communism almost synonymously with revolution. In addition to this, with a vast majority of the world population having to face a certain degree of injustice which can be directly linked to an outcome of capitalism, there has been an inclination towards communism. The communists agree that oppression of the minorities is a problem that this society needs to deal with but they have also brought to light the fact that these things are not a result of the bad morals existing in humans, but are directly connected with the mode of production. —vehemently, in fact—but they do not see people’s bad morals as the origin of this, but rather is due to the mode of production.

Currently, the system that is manipulating the mode of production is capitalism. So, if people can do away with the current economic situation, they will see the emergence of a society that will treat everyone as they deserve to be treated. Also,there has been a gradual emergence of several schools of thoughts claiming a direct inspiration was taken from Marx and developing theories that are in line with the current situation of the world. The commitment to the cause of emancipation that would abolish a society based on injustice drew attention from scholars across the globe, and along with the mass that has begun realizing that they are working tirelessly for capitalism with little to no return. The idea that the social world has to be studied in totality widened the base of Marxism regarding the influence the thought held after the end of the Cold War. A well-known theory in the field of International Relations, the World Systems Theory by Immanuel Wallerstein is believed to have been inspired by the works of another communist, Vladimir Lenin. This theory has played a key role in the climate talks and explained the role of the ‘core’ countries (industrialized) and the ‘semi-periphery’ countries (industrializing), and the ‘periphery’ countries (relatively less industrialized when compared to semi-periphery countries). Communism has always talked about a revolution that would bring down Capitalism. This action would be a conscious revolutionary act by the working class. It has talked about revolutionary socialism that would with time achieve a stateless communist order. Although a change in the perception of people has led to the association of communism with revolution, the writings say enough about the ideology to relate it to revolution and a revolutionary change in the society. With a little reading of communism, it becomes clear as day that what the writings truly talk about is a ‘Proletarian Revolution’. Now, how that is reached may vary, but the various group claiming to be followers of communism have this particular thing in common were they see capitalism as the oppressive system and layout means with the help of which it can be handled. A fundamental change is what binds all these schools together leading the mass or scholars to identify communism with revolution. However, it should be mentioned that Karl Marx saw the capitalist stage as a progressive one and claimed that the development of humankind would be promoted by Capitalism. Nevertheless, as mentioned earlier, Capitalism is a stage that would move into a state of stagnation due to internal conflicts thereby giving rise to favourable conditions for a revolution.

BIGGEST MANUFACTURER OF WORLD: CHINA

Whenever we go to the market and if we observe more than 50% of products have label and tags on which it is written: “MADE IN CHINA”. Due to which many buyer and seller might wonder ‘though china is a communist country’ still it is the world’s biggest manufacturer. Many of the product of china is similar to the US and other countries still most of the people buy Chinese product because of its lower price.

During the time famine which was faced by the Chinese in 1958-1961, they lost their economy and crisis took place at that time but as the time passes they rebuild themselves and today they are Biggest Manufacturer of the world

China is known to be “the world’s factory” because of the following reasons:

  • Low wages

During late 20 century, people were divided into 2 category urban and rural but as time changes they started internal migration many rural people came to the urban city for the work as we all know China is the most populated country in the world that’s why the supply of worker is more for working on low wages then the demand of worker this help china in production of goods as if the wages will be low then price of the product will be low.

Also, they don’t believe in the law of child labour but this law seems to be changing and also they have increased their minimum wages.

According to 2020 report, minimum hours cost in shanghai is 22 Yuan which is $3.16 her and if we consider of the month then it is 2480 Yuan which is around $355 and on the other hand in Shenzhen, the monthly wages is 2200 Yuan which is $315 and hourly it is considered as 20.3 Yuan ($2.91). Since the wages are low therefore the price of product decrease

And if we talk about the western country their main focus is on minimum wage value and child labour. This makes a difference in the price of the same kind of product.

  • LOWER COMPLIANCE

In certain countries mainly western are very strict and concern about their rules and guidelines regarding child labour, minimum wage rates, labour laws etc. but at the same time if we talk about china they don’t have any such strict rule regarding child labour or worker’s laws most of the industries don’t follow any such rules.

Child labour in industries of china has long shifted and also they are not provided with any compensation insurance not only this many companies follow the policy to pay wages once a year to the workers. This is the way to keep the workers form quitting before the year ends.

Nowadays workers are standing for their rights and government are now quite concerned about workers rights however, slowly and gradually these laws are taking place in industries regarding child labour, environmental protection and minimum wages.

  • BUSINESS ENVIRONMENT

China is involved in trading from many years during AD 1371-1433 china exchange goods; culture and religion with other countries like South Asia and the Middle East through the silk route

After that, as time passes on of the most famous person from Ming Dynasty called captain Zheng took 7 trips to establish trading contact with countries like- Africa, India, Arabia and South East Asia through the Sea route. So, it is quite clear from this that China has a large history of trading with other countries and for this, they need network supplier, customer, component manufacturer, distributor, government agencies. This is good for the business and china has all such link which helps them to grow their work worldwide.

  • TAX AND DUTIES

In 1985 china came up the policy to rebate the export tax and also they abolish the system of double tax on export goods which means zero% of VAT (value-added tax) which means they enjoyed the rebate policy and VAT exemption also this help to lower down the price of their goods this policy also attract the investor and companies produce low-cost goods.

  • CURRENCY

Most of the time China is a summons for artificially depreciating the value of Yuan which provide them to export similar kinds of goods produced by their competitor country U.S.

China always takes care of rising in Yuan they buy the dollar and sell Yuan.

In late 2005 according to one report, the value of Yuan was 30% against the dollar after that in 2017 the value raises to 8% against the dollar

Although in 2018 trend got to change and Yuan got depreciate against Dollar, in the beginning, the US adds the tariffs to china goods but then on 8th August 2019 central bank of china lower the Yuan to 7.0205 per Dollar this allow china to export their good with a lower price of the product but also this results in Trade war between China and US.

  • CONCLUSION

With the help of cheap labour and less compliance and business environment help china to become “largest manufacturer of the world” but also at the same time artificially depreciating the value of Yuan result in a trade war between both US and China because of the lower price we able to see most of the product in the market with the label ‘Made In China.’

Why angel investors prefer Tech start-ups over Non-Tech?

Start-ups (which indirectly fall under MSEs category of taxation) since 2014 have collected around $100 billion and are on the ever-accelerating way to mark its way to $500 billion by 2025, with a projection to create over 35 – 40 lakh jobs. 

It was a beautiful day for Mr. Singh. He had invested in an idea introduced by a bunch of boys who had recently graduated out of an Engineering College. It was something related to irrigation technology with the name “Ivy-Irri Tech”. Mr. Singh had no idea what it was, but his financial advisor and accountant advised him that the investment would garner good profit in a very short period of time. After he found everything to be appropriate, he wrote off a check for Rs 3 crore for 3,000 shares to Ivy-Irri Tech boys. Today, he received the triple of his investment (i.e., Rs 9 crore) as the start-up was brought under the banner of a multinational corporation (MNC).

Mr. Singh was indeed an ‘angel’ who invested in the start-up seeing the growth projection as calculated by the discounted cash flow (DCF) method. He knew and took all the risks on the idea. Like Mr. Singh, there are a number of high-value individuals in our nation who are approached to invest in a small idea, which the ones presenting are able to convince (or show) to be of big worth in a short period of time.

A few days went by and the boys again contacted him over the notice they received from the Income Tax Dept. The notice stated that they had to pay 30% as ‘Angel Tax’ clause of Section 56(2)(vii b) of the Income Tax Act, 1961.

These start-ups operate in a very vulnerable environment and anything can happen any moment. All the money made in the first half of the day may just vanish off by second. The basic principle of start-ups is a low investment to high yield, in less time.

According to Economic Times, “Angel tax is a term used to refer to the income tax payable on capital raised by unlisted companies via the issue of shares where the share price is seen in excess of the fair market value of the shares sold. The excess realisation is treated as income and taxed accordingly.” This is charged when the initial “angel” investor is an Indian, while foreigners are exempted from it as that’d just add more to Foreign Direct Investments (FDI) category. Also, the value of start-ups is counted against the industry suggested method of DCF with the net value present (NVP) method that increases the difference between the projected margins to the excess premium earned.

Hence, nowthe start-up will have to pay the excess of what they received of initial capital (i.e., Rs 3 crore).  In shares & dividend terms – Mr. Singh bought 3000 @ Rs 10000 each. He sold them (the startup sold it to the MNC) at a premium (excess from Market Value – profit) of Rs 30,000 for each share. Hence, for 3000 shares the excess profit is Rs 6 crore. Now 30% of Rs 6 crore is Rs 1.80 crore and that is what the start-up is charged as “Angel Tax”.

This is a major de-motivation to the hardworking, innovative minds that have worked hard to put up the efforts to bring their dream into happening, just like the “Ivy-Irri Tech” chaps and returned the initial investment in a triple in less than some years, but now are a victim of the ‘Angel Tax’.

However, the income tax regimes in our nation, which are duly unregulated at the helm of dysfunctional bureaucracy and call for immediate reforms at a great extent, do not spare even the ‘angels’. This taxation regime has led to the inclination of angel investors into investing in tech start-ups and deviating from the non-tech cohorts. The falling of start-ups into MSEs category, the very narrow definition of start-ups, and the bureaucracy which looks for an opportunity to put to their advantage, are the reasons for non-tech start-ups being not worth investment against hassles.

Of the limited few exemptions in Angel Tax, the angel investors tend to avoid the non-tech sector as there’s a very obstructive measure which restricts the investment into immovable objects. So if the start-up in non-tech sectors, would involve investment in immovable assets (which is the case in most non-tech start-ups) then the investment would not fall into exemption into start-up’s seed funding and thereby incurring additional taxation. The ruling Govt. has presented a very ambitious plan to lead India to a $5 trillion economy for which there needs to be a safe growth rate in the economy at 11.3% (also assuming rupee falls to the dollar, further) for the next five years with no exception contrary to the present which is less than 4%. Further, with Moody’s downgrading India to ‘Baa3’ category, just one rank above “junk” category, the onset of FDIs flowing into Indian start-ups seems reclusive and does not seem to recover anytime soon. So, the Income Tax Act, 1961 needs to reform from its very core to match up the economic challenges of the 21st century for Indian investors to keep the market afloat and its operations flared up. Time is money, and neither of that we do have. 

The largest manufacturer of iron and steel in the global economy: Can India ACHIEVE this peak position?

The iron and steel enterprises are among the most significant enterprises in India. During 2014 through 2016, India was the third biggest manufacturer of crude steel. In 2019 India turned into the second-biggest steel producer on the globe after China and the biggest manufacturer of steel and iron in the world.The Indian steel industry is at a precipice in its growth journey. The industry delivered 82.68 million tons of absolute finished steel and 9.7 million tons of crude iron. Generally, iron and steel in India are processed from iron metal.

Fast increase underway has brought about India turning into the second-biggest producer of rough steel during 2018, from its third-biggest status in 2017. The nation is additionally the biggest manufacturer of Sponge Iron or DRI on the globe and the third biggest completed steel customer on the planet after China and the USA.

With the vision of a $ 5 Trillion economy by 2024-25 and the Rs 100 Lakh Crores arranged interest in framework, it is essential to shape the steel business to fulfil the need that is probably going to increment over the coming years. Guaranteeing that the country is set up to deal with this envisioned increment will require purposeful exertion over different approaches including limit extensions, value expansion, trade balance enhancement, coordination foundation upgrade, and R&D. This will involve close cooperation among the different partners in the steel esteem chain – Government (Central and State), steel makers, steel clients, the scholarly world, and lenders.

India’s per capita steel expenditure is as of now at a normal of 74 Kgs for every capita versus a worldwide normal of ~255 Kgs per annum. With the push on steel used in all going sectors, for example, framework and construction, the utilization is relied upon to increment in an accelerated trajectory. Government plans like Housing for all, Jal Shakti, and the subsequent ventures they will drive into streets, railroads, and other foundations will be significant drivers for the development of the steel division in India. Steel is and will keep on being significant for the country working regarding esteem creation and generating employment. The Indian steel industry should be set up to meet the prerequisites that will emerge out of this vision.

India’s steel industry: Journey so far

  • 1875 Bengal Iron and Steel Company in Barakar
  • 1907 Establishment of Tata Iron & Steel Company (TISCO)
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  •  1954 Set-up of Hindustan Steel Pvt. Ltd. 1962 Completion of Durgapur, Bhilai and Rourkela steel plants 1973 New model for managing the steel industry presented to the Parliament; set-up of SAIL
  • 1991 Government of India liberalizes the steel sector by removing iron and steel industries from the reserve list 2005 India becomes one of the top 10 steel producers in the world.
  • 2018 India becomes the world’s second-largest producer of crude steel 1937 Establishment of Steel Corporation

NSP (National Steel Policy) – Vision, Mission & Aim

Vision: To make a creatively advanced and all around competitive steel industry that progresses monetary development.

Mission: condition for accomplishing –

  • Self-adequacy in steel creation by giving strategy support and direction to private producers, MSME steel manufacturer, CPSEs, and encourage satisfactory limit augmentations.
  • Development of all-around competitive steel-producing abilities.
  • Cost-proficient creation and household accessibility of iron metal, coking coal, and petroleum gas.
  • Facilitate interest in abroad resource acquisitions of crude materials.
  • Enhance domestic steel orders.

Aim: The National Steel Policy targets accomplishing the accompanying goals –

  • Build an all-around competitive industry
  • Increase per Capita Steel Consumption to 160 Kgs by 2030-31
  • To locally fulfil the whole need of high evaluation car steel, electrical steel, unique prepares and composites for vital applications by 2030-31
  • Increase private accessibility of washed coking coal to decrease import reliance on coking coal from ~85% to ~65% by 2030-31
  • To have a more extensive nearness all around in esteem included/high evaluation steel
  • Encourage industry to be a world chief in vitality effective steel creation in a naturally supportable way.
  • Establish local industry as a savvy and quality steelmaker
  • Attain worldwide norms in Industrial Safety and Health
  • To considerably lessen the carbon impression of the steel business

Export Promotion of Iron & Steel Products

  • The conspire empowers exporters to import pertinent crude material and different contributions to the required amounts, obligation-free for the creation of the export item.
  • Quantities of import are permitted according to standard info yield standards (SION) endorsed by DGFT or according to self-pronounced standards by the exporters subject to confirmation of the DGFT.
  • Ministry of Steel (Technical Wing) helps the Advance Authorization Committee/Norms Committee in DGFT/in the endorsement of the self-revelation standards or something else.
  • Service of Steel additionally encourages DGFT to fix new standards (Standard Input-Output Norms) and additionally to audit existing standards in meeting with industry/specialists/advisors.

The direction towards a boost

  • The iron and steel industry required extensive arrangements for modernization, up-degree of innovations, the substitution of out of date gear and evacuation of mechanical awkward nature.
  • Presently, the administration is attempting to help the business through the RBI’s vital obligation rebuilding plan. Be that as it may, it needs long haul money, for example, benefits reserves, investment funds and so forth which can withstand repeating instability of benefits not at all like financing from banks or capital markets.
  • Anti-dumping obligations on modest import to secure local makers.
  • More centre around the framework and vehicle industry to expand residential interest and occupation creation to offset worldwide log jam.
  • Servicing of awful credits by the government to give capital and looking into the validity before dispatching the advances.
  • Increased outside speculation.
  • More accentuation on Green Climate Fund to acquire condition inviting innovation.
  • Decrease iron mineral fares to guarantee crude material supply.

Chintan Shivir: towards a Vibrant, systematic and Globally Competitive Indian Steel Sector

  • The Chintan Shivir occasion hung on 23rd Sept. 2019 at New Delhi and was conceptualized with a reasonable topic under the vision and targets “Towards a Vibrant, systematic and Globally Competitive Indian Steel Sector” and included support from more than 900 members across Government (Center, State), CPSEs, private division, research foundations, counselling and banking parts. The short brief is as under:

Domestic Capacity Expansion with Special Reference to Secondary Steel Sector: The auxiliary steel division in India right now contributes over 40% of the all-out limit and it should assume an essential role for India to arrive at 300 MT limit. This conversation accordingly planned to recognize difficulties to limit extension in the nation with a unique spotlight on optional steel and to correspondingly talk about on proposals on lightening these.

  • Demand Generation: Despite being the third biggest steel customer on the globe, India has per capita steel utilization that is just a single-third of the world’s normal. This meeting accordingly meant to talk about, consider and distinguish proposals to build the per capita utilization of steel in the nation.
  • High-Grade Steel Production: Despite being a little portion of imports by quantity, alloys and tempered steel contribute lopsidedly to the import bill by esteem. Henceforth, this meeting dove into interesting difficulties for the unique steel division and laid out possible proposals to empower India to rise as a key player in high evaluation steel.

India overtook Japan

India has supplanted Japan as the world’s second-biggest steel-producing nation, while China is the biggest producer of unrefined steel representing more than 51 per cent of production, as stated by the World Steel Association (world steel).

The worldwide steel body in its most recent report noticed that China’s crude steel yield bounced 6.6 per cent to 928.3 million tons (MT) in 2018 from 870.9 MT in 2017. China’s share expanded from 50.3 per cent in 2017 to 51.3 per cent in 2018.

“India’s unrefined steel production in 2018 was at 106.5 MT, up by 4.9 per cent from 101.5 MT in 2017, which means India has supplanted Japan as the world’s second-biggest steel-producing nation. Japan created 104.3 MT in 2018, down 0.3 per cent contrasted with 2017,” world steel said. Worldwide unrefined steel creation arrived at 1,808.6 MT for the year 2018 from 1,729.8 MT in 2017, an ascent of 4.6 per cent, it said

Kobalt vs. Ridgid

 Talking of power tool brands, there are a couple of brands that everyone is well aware of. These brands are worth considering.

Two such brands are Kobalt and Ridgid.

We will take a look at how the brands compare their quality and products. It will help you decide which of the two you should go with.

 Kobalt and Ridgid are by origin, American companies. Kobalt started as a private label of the high-rated Lowe’s hardware store. Ridgid was a tool company from start itself.

None is better than the other.

Both brands are well-worth considering. While one can’t go wrong with either brand. One should go with Kobalt if you are looking for regular cordless tools. Go with Ridgid if you are looking for lighter- 12-volt tools.

 Both brands are in a fierce marketing battle. Each terming that their brand manufactures the better 18V cordless drill driver.

Product Comparisons

·       Miter Saw

Kobalt 

Kobalt SM3055LW Specifications

Kobalt’s value-priced has the sliding compound feature, which is a win-win deal at a price DIYers can reach. Kobalt has put the bevel adjustor to the front. Most miter saws place the lock on the back, It is good to make it a little bit easier by placing it in front. Though, Kobalt does not list the specific miter and bevel positive stops. The trade-off in accuracy pushes through tough cuts. It’s a great option for DIY projects. Professionals, who need perfection in their angles, may get disappointed.

Ridgid

Ridgid flagship, a 12-inch miter saw is a decent package. It is a heavy model thanks to oversize base, but that base offers a lot of cutting support. It’s also one of the most generous saws with miter angles going about 60 degrees to the left and right. If you’re not in a hurry, wait for a coming holiday offer. This saw offers great value at its current price.

·         Circular saw

Kobalt K 15 CS – 06 AB

Weight: 9.5 lbs Cost: $90.

This Kobalt saw has a big outboard height-adjust lever. It also has a depth scale on the side of the blade cover. The saw has a 12-foot cord approximately 2 feet longer than others. The saw also has work light and onboard blade wrench storage. 

Ridgid R-3205

Weight: 11 lbs Cost: $99.

One of the best feature Ridgid power tools is the lifetime warranty. This saw includes easy-to-read bevel and height-adjust scales. It also has an onboard wrench along with a sawdust blower. It’s very heavy, but if you don’t mind the extra weight, it’s an excellent saw for the price.

·         Compact drill drivers

Kobalt KT200A

The Kobalt KT200A’s weight and size place it among the biggest and bulkiest of the drivers. This tool tapped out in lag screw competition. The results were very underwhelming. , Kobalt has this driver priced at $149, which is in line with the others. 

R86008

Ridgid’s latest offering is very compact, yet it is quite heavy. The R86008 performs well in a time test with 203 screws driven and placed first in lag screw power test. While not an important faction the Ridgid has a great feature set and best grip feel of the line-up. It also has the best warranty.

·         Table saw comparison: Kobalt v/s Ridgid 

Kobalt 7-Inch Tabletop Sliding Table Saw With Stand

 The Kobalt 7-Inch Tile saw is a great DIY table saw with a helpful inbuilt laser guide for best accuracy. It includes AAA batteries needed to power the laser guide.

Kobalt offers extenders on both sides of the cutting deck for support on large tiles. The physical tile guide or rail is capable of moving on either side of the blade. The 45-degree angle miter guide slides making the work cleaner.

The top of the Kobalt tilts from 22.5 to 45 degrees for the best cuts no matter the angle you need.

As an extra safety feature, the Kobalt has a covered power switch, making it impossible to turn this saw on.

Ridgid 7-Inch Tile Saw With Stand

 The Ridgid 7 inch saw has a quality fit for angled cuts, a tilting top, and plenty of power. The power switch turns on by lifting up, so there is no risk of accidental start.

This saw offers a clear splash hood for good visibility as you cut. You’ve got space for 18″ of straight cutting and 12″ of diagonal alignment.

The miter guide on this tool has a lifting handle which is of die-cast aluminum, not plastic. You won’t have any flexing or bowing issues as you work through long cuts.

Kobalt and Ridgid: History

Kobalt is the brand of a line of hand and power tools by the American hardware store chain Lowe’s. Launched in 1998, this brand is new compared to some of the big names out there. Lowe’s has a campus in Mooresville, North Carolina with over 10,000 employees. Kobalt started producing cordless power tools in 2011.

Ridgid is much older, established in 1923, in Ohio. Ridgid Tool Company manufactured hand tools. Later it got popular because of their durability and ease of use. The company shifted to Elyria, Ohio, in 1943, and became a sub-brand of Emerson Electric in 1966.

Techtronic Industries, headquartered in Hong Kong produces Ridgid power tools.

 Which Brand Has a Better Product Portfolio?

Kobalt offers a single 18V cordless drill. It also includes around forty 24V cordless tools including 

* Jigsaws 

* Reciprocating saws

* Circular saws

* Impact wrenches

* Hammer drills 

Kobalt also offers blowers, grinders, rotary cutting tools, and combo kits. The Kobalt product catalog is quite wide.

 But note, Ridgid offers over thirty different 18V power tools, including 

* Nailers

* Circular saws

* Impact drivers 

* Rotary hammers 

* Blowers

* Radios 

* Fans

Ridgid has a greater variety of 18V power tools compared to Kobalt.

Though the difference between 18V and 24V tools is not as large as it seems.

Which Brand Offers a Better Warranty?

Ridgid power tools come with an automatic 3-year manufacturer warranty. Ridgid offers an industry-Leading Lifetime Service Agreement for its power tools. Ridgid LSA includes cordless power tools, corded power tools, tile saws among others.

The LSA offers its consumers free parts, service, and batteries for life. 

Parts covered in this warranty include 

* Chucks 

* Motors

* Switches

* Gears

* Piston stops

* Driver blades.

Getting these parts replaced is simple. Call their helpline and register a service request is to get parts replaced. You can also get your power tools repaired at the nearest service center.

 Kobalt offers solid warranties for its power tools. Handheld power tools and lights have a 5-year tool and a 3-year battery guarantee. 

Always keep in mind that this guarantee does not cover the following 

* Damage due to abuse

* Improper maintenance

* Neglect

* Unauthorized repair

* Alteration.

Kobalt power tool accessories come with a satisfaction guarantee. The 24V Max brushless power tools have a 1-year risk free guarantee and a 5-year limited guarantee.

 Both manufacturers offer decent warranties. If anything fails or breaks down in the future, you can rest assured of its repair or replacement.

 Which Brand Offers Better Quality?

Kobalt and Ridgid, both are well known for their high-quality products. Although the former is a new brand. Ridgid is a renowned name in hand tools. Though it started manufacturing power tools recently.

Chevrons, a Chinese OEM manufactures most of Kobalt’s power tools. Sunrise Global and Greenwork Tools produce Kobalt’s cordless 80-volt outdoor power equipment. In general, Emerson in the US makes the red Ridgid tools, and TTI produces orange Ridgid tools in China.

Which Company Offers a Better Selection of 12V Tools?

Earlier, Kobalt offered a limited selection of 12-volt tools; it is not the case anymore. At present Kobalt focuses on promoting its 12-volt cordless power tools.

Ridgid only offers two 12-volt power tools – an impact driver and a drill/driver.

 Which Company Offers a Better Selection of Impact Drivers and Drills?

 Kobalt has various products in its lineup of 24V cordless tools. These are powerful tools. They can handle the routine home improvement task and even professional jobs.

One of Kobalt’s top hammer drills delivers 26,000 BPM. It has a two-speed gearbox and variable-speed trigger that delivers well.

Ridgid has a smaller variety of hammer drills, impact wrenches, and drills. Their top 18V hammer drill output is about 1,300 inch-pounds of torque.

Which Brand Should You Choose?

If you’re a professional and are looking for a set of durable and high-performance tools, go with Ridgid. Especially if L.S.A covers the products you wish to buy.

 Ridgid has a smaller selection of 24V power tools and more 18V tools.

 If you’re a casual user, Kobalt is a good choice, especially if you need lots of options to pick from.

CRYPTOCURRENCY : -A PROMISING FUTURE ?

Crypto currency is something that everyone wants to talk about but very few have the idea about how it works.

Since human civilization has emerged, the currency has been a very crucial part of their lives. In the caveman era, they used to exchange their things which are famously termed as “barter system”. Suppose, Ram has seven mangoes and his friend has seven apples but Ram needs seven apples. What can Ram do now? He can exchange his goods with his friend via the barter system. But there were various flaws in barter system like lack of a common measure of value (seven apples may not have the same value as seven mangoes), lack of double coincidence of wants, unable to divide into smaller units etc.

After realizing that the barter system did not work very well, and thus currency went through a few recurrences in 110 BC; later “Currency” was coined officially. Thousands of 250 AD gold plated Florence was introduced which was only used in limited countries. From 1680-1980, the paper currency gained significant popularity and was used across the world. This is how modern currency came into existence.

Modern currency included paper currency, coins and credit cards and digital wallets like Amazon Pay, PhonePe and so on.

WHAT IS CRYPTO CURRENCY?

It is a new form of digital resource or virtual currency based on a network that is distributed across a huge number of devices.

The word “crypto currency” is derived from the encryption technique which is used to secure the end to end networks.

All the digital wallets (PhonePe, PayPal, Paytm etc.) are controlled by banks and governments. This means it is regulated by authorities and it may increase some hazards like a technical issue at the bank while transferring money, limited transaction and so on. This is why the future with currency lies with crypto currency. There are more than 1600 crypto currencies are available. Bitcoin, Litecoin, Ethereum, Z-cash are some popular ones.

PERKS OF CRYPTO CURRENCY:

  1. Self-governed and well organized.
  2. Payment can be processed within a few minutes.
  3. Authentication of users’ identity.
  4. Removes all the problems of modern banking.
  5. The unlimited fund can be transferred.
  6. Cost-effective mode of transaction.
  7. Decentralized and secure.

CRYPTO CURRENCY VS BITCOIN:

Bitcoin is also a digital currency that utilizes crypto currency and it is regulated by decentralized authority unlike government-issued currency whereas the crypto currency uses encryption technique which acts as an intermediate for the different financial transactions all over the world.

DRAWBACKS OF CRYPTO CURRENCY:

  1. There is no restriction to illegal transactions.
  2.  More prone to hacks.
  3. Limited crypto currencies can be traded only in one or a few fiat currencies.

CRYPTOCURRENCY AND TODAY’S WOLRD:

The whole world is distinctly divided when it makes headway to crypto currency. On one side, there are supporters like Bill Gates, Richard Branson who believe that crypto currencies are better than regular. And on another side, people like Warren Buffet, Paul Krugman who are absolutely against the crypto currency. They both are Nobel Prize winners in Economics and they think it is a fraudulent investing scam and means for criminal activities.

It can be assumed that in the future there is going to be a conflict between regulation and anonymity as crypto currencies ensure that its users are kept anonymous. Despite having some disputes, the use of crypto currencies in the merchant’s navy is increasing, which carries a positive vibe.

By the year 2030, crypto currency would captivate 25% of national currencies which is a notable chunk of the globe and that would be a remarkable step in economical evolution.

FAILURE IN THE START-UPS

India is struggling for becoming third largest startup ecosystem in the world for which it has provided the ground for many new startups in last few years still 90% of startup fails within 5 years, the main reason behind this failure is lack of uniqueness and also 98 out 100 young entrepreneurs copy the western ideas they have lack of information and knowledge about new technical innovative ideas for their business.

According to the study of IBM institute of business value (IBV) conduct the survey in collaboration with Oxford Economics to know about India startup ecosystem and the main reason behind the failures in Startups is lack of innovation, non-availability of skilled workforce and insufficient funding. As India is giving a chance to many new startups and a young businessman still there is a high rate of unemployment in India also the main reason is an increase in the population and lack of proper knowledge about work.

IBM said that “77% venture capitalist surveys believe that many Indian startups lack pioneering innovation based on new technologies or unique business models. Indian startups are prone to emulate already successful global idea”.

According to experts, India is follower market however, artificial intelligence machine is mainly restored in retail and banking.

Through the global study, it has been found that India comes in the bottom-most countries in terms of global innovation and the report state the reason behind this is a poor education system. On the Global Invitation Index (GII) India comes on the 66th rank also there is no doubt about India can become a global driver because we have potential to do work, a pool of talent and cultural innovation.

Also, IBM states that 70% venture capitalist claim that the main problem faced by the Indian startups are an investment of talent and there is limited availability of important skills.

Another report suggests that there were around 6’000 IT companies in the year 2016 which came down to 800 in just nine-month of 2017 this means there is a big loss in startups and also many people are getting unemployed

Head of marketing intelligence firm Rishabh Lawania also shared his view by saying “Since 2015 as many as 1,503 startups have closed down in India. The major reason is due to the replication of western ideas and not lack of subsequent funding from investor”

The main failure is being faced by eCommerce and food technology.

The chief digital officer of IBM India/South Asia Nipun Mehrotra said “the Indian startup community ranked third globally in terms of the number of startups, has been creating new job opportunities and attracting capital investment. We believe that startups need to focus on Societal Problem, including health care, sanitation, education, transportation alternate energy management and others which would help deal with the issue that India and world face. These require investment in deep technology and product which are built to scale globally”.

Now, due to pandemic situation, India’s economy is facing crucial time and for stabling, these new young entrepreneurs should come up with innovative ideas and skilled workforce which will help India to regain its economy and also soon it will be the third-largest startup country in the world and for all this hard work and creative mind is required.       

The $5 Trillion economy : reality or distant dream

The economy of India, a developing market economy as considered by many, is the 5th largest economy by nominal GDP and the 3rd largest by purchasing power parity (PPP). The IMF ranked India in 139th by GDP (nominal) and 118th by GDP (PPP). The protectionist economic policies adopted since independence and consecutively the acute payment crisis post-Cold War led to the adoption of various policies for economic liberalisation in 1991.  The 21st century has witnessed an annual average GDP growth of 6% to 7%. The years of 2014-2018 saw the unfolding of India as the world’s fastest-growing major economy, surpassing China.India’s GDP is driven by domestic private consumption making it the world’s sixth-largest consumer market at nearly 60%.  However, apart from this, the Indian economy is also stimulated by government spending, investment, and exports. India emerged as world 10th largest importer and 19th largest exporter in 2018. Statistically speaking, India ranked 63rd on ‘ease of doing business’ index and 68th on the Global Competitiveness Report. By 2019 India emerged as the world’s 2nd largest in terms of the labour force. A 2017 PricewaterhouseCoopers (PwC) report, India’s GDP at purchasing power parity could overtake that of the United States by 2050. India has young demography which results in a low dependency ratio, healthy savings and investments that have helped the economy to steadily grow over the years. Moreover, the incorporation of the Indian economy with the world economy has also aided this process.

The economic growth, however, slowed in response to ‘Demonetisation’ and ‘Goods and Services Tax (GST)’. Let us look at how these two measures actually impacted the economy in the beginning:

Demonetisation:                                                   

This move was announced on November 8, 2016, by the government in light of turning the economy into a “cashless economy”. This move was intended to put a dent on the practices by black money hoarders. Elimination of terror funding or fake money haunting the economy would, in turn, make it more transparent. However, pieces of evidence have shown that as time passed by, the idea behind demonetization might have failed miserably and did not achieve any significant change in the spheres of economic growth or transparency. “Let us ignore the temporary hardship, let us join this festival of integrity and credibility, let us enable coming generations to live their lives with dignity, let us fight corruption and black money,” said Modi in his speech regarding demonetisation. The government’s move caused the elimination of all Rs 500 and Rs 1,000 notes and made them invalid. These notes constituted 86.4% of total currency in circulation in the Indian markets. Disordered 3 months followed after demonetization triggering serious monetary issues for most of the Indian populace. Gabriel Chodorow-Reich of Harvard and Gita Gopinath of the International Monetary Fund (IMF) in their research paper, “Cash and the Economy: Evidence from India’s Demonetisation“, claimed that this move brought down the Indian economic growth. Along with this, another unintended outcome was 2-3% reduction in jobs in the quarter of note ban. Economic activity had already deteriorated by 2.2% in November and December 2016 revealed the research. “About 1.5 million jobs were lost during January-April 2017. The estimated total employment during the period was 405 million compared to 406.5 million during the preceding four months, September-December 2017,” a report by Centre for Monitoring Indian Economy (CMIE) stated. In 2018, former RBI governor, Raghuram Rajan said, “The two successive shocks of demonetisation and the GST had a serious impact on growth in India. Growth has fallen off interestingly at a time when growth in the global economy has been peaking up.”

Goods and Service Tax:        

The government’s decision to implement Goods and Services Tax (GST) has attracted mixed reviews. The principle of “one nation, one tax, and one market” is aimed at unifying this large economy although acted as a catalyst towards the worsening situation of the economy. The inflation rate has increased from 1.79 % to 5.11 % since July 2017 and continued till January 2018. This was a result directly related to the changing demand and consumption level of the poor people in India. India’s economic growth that was 8.4% in 2015 dropped sharply to 5.7% in July 2017. This complex system of indirect tax is finally recovered from consumers of goods and services increasing in sale price. Thus, irrespective of the consumer’s financial standing pays the same amount of GST for one unit of any product or service he avails in the market and here in India. This has acted as something counter-productive to the economy. Furthermore, GST increased tax appropriated by the government, making it the second-highest tax rate in the world (28%). This has had a negative impact as 29.9% population of India lies under Below Poverty Line (BPL) and 20% of India’s population dominates 47.7% of the total wealth of the nation giving rise to high-income inequality. Also, the implementation of the scheme of GST escalated unemployment rate (3.39-6.06 %) during the period of July 2017 to February 2018 in India.

Nevertheless,Prime Minister Narendra Modi in 2019 declared that he would like India to become a $5 trillion economy by 2024. This vision has been claimed as “challenging, but achievable” by the finance minister, Nirmala Sitharam. Several scholars and researchers have claimed that for the Indian economy to grow into a $5 trillion one by 2024, it will need to grow at a rate of 12% per year. Former RBI governor, C. Rangarajan said, “$5 trillion is a good aspirational goal. But please understand that a $5 trillion economy in a matter of 5 to 6 years cannot be achieved unless the economy grows in a sustained way between 8 and 9 per cent.It has to be closer to 9 per cent because today the Indian economy is $2.7 trillion. So, $5 trillion means almost doubling the size of the economy. And that is possible only if the economy grows at 9 per cent per annum in a sustained way for 5 to 6 years.” He opined that to qualify a country as one having a developed economy, the per capita income needs to be around USD 12,000. This level of growth was pegged to be possible solely at a steady rate of 9% per annum. The blow to the economy by Demonetisation and the implementation of GST was worsened by the crisis of COVID-19. The pandemic wreaking havoc around the globe in 2020 has successfully harmed the economy of India in an unprecedented way and thwarted its plan to become a $5 trillion economy by 2024. “My own estimate is that the 21-day countrywide lockdown which has been enforced, itself will result in shaving off at least 1 percentage point of GDP. And if you take earlier problems created by the coronavirus pandemic before the lockdown and the uncertainties of the future, then a 2 percentage points decline in growth rate (for 2020-21) is not unlikely at all,” said former finance minister Sinha. The economy took a hard hit as a result of the nation-wide lockdown to curb the pandemic. People are unable to work, supply chains have been gravely affected, and the labour has been forced to migrate back. The revised Gross Domestic Product (GDP) estimates for India downwards by 0.2-4.8% for the fiscal year 2020 and by 0.5-6% for the fiscal year 2021. Another major barrier to India’s economic growth is that it relies heavily on Chinese imports. Electronic imports to India account for 45%, automotive parts and fertilizers are pegged at 25%, active pharmaceutical ingredients range from 65-70%, and there is around 90% import of mobile phone from China to India. The discontinuation of these imports has given rise to several issues in the market which most probably will lead to an increase in the prices. Moreover, the recent clash between India and China will also have a serious impact on the economy. Furthermore, data reveals that 72% of the Indian companies are located in China (Shanghai, Beijing, provinces of Guangdong, Jiangsu, and Shandong). These provinces were the first to get the hit by a coronavirus. Thereby, leading to a complete stop at their activity. The effect of the pandemic has been felt by almost all business sectors. This hit will lead to a decrease in the GDP of 2021 and thus, we can bid goodbye to the dream of the emergence of the Indian economy as a $5 trillion giant. In addition to this, the MSME sector accounts for 30% of our country’s GDP which is at the moment at a vulnerable position due to the restrictions imposed. Statistics have shown that the dependence of Indian economy on three major contributors to GDP, namely,‘private consumption’, ‘investment’, and ‘external trade’ will all be affected immensely and thus, will cause a great deal of damage to the economy. In the backdrop of all these issues, the growth of the Indian economy into $5 trillion seems to be something impossible. The target set by Prime Minister Modi to make India a $5 trillion economy by 2024-25 might be delayed by 2 years even if the economy grows at a steady rate of 7.5% a year on average post current financial year. This is rate is, however, based on the 4.5% inflation rate that the economic survey for 2019-20 explained to achieve the target. To push the economy towards the goal, an increase of investments are required. Hence, infrastructure development is considered to be a critical aspect for achieving a $5 trillion economy as it can kick start a cycle of investments. However, the prevailing situation impedes any such measure that might help the economic situation and aidin the further realization of the dream.