Article related to principal of economics

1. Articles related to the Core
concept of Economic
• Introduction of Group members from Section E
1. Sarang Dave
2. Bhavesh Modi
3. Jay Thakkar
4. Vishnu Chauhan
5. Chandan Tiwari
6. Jaimin Thakkar

2. Covid Call: India Inc seeks incentives for jobs
creation
• Synopsis :
• India Inc has urged the government to provide incentives for employment generation in the wake of the
deadly second wave of the Covid-19 pandemic.
• The government helps each and every workers during Covid not only through money also helping through
medical facilities with that they were constant in touch with there employees. Work from reaction was good
for the employees with the help of that they were connected with the family
• “ People Respond to Incentives ” one of the principles from core concept of economic
• This article taken from the “ economic times “ Date and time May 14, 2021, 11:44 PM

3. No More 100 Trillion Dollar Notes: Zimbabwe
Starts Phasing Out Worthless Local Dollar
• Synopsis :
• Harare: The Zimbabwean dollar will officially be taken out of circulation, officials said Thursday, six years after hyper-
inflation rendered it worthless and US dollars became the most widely-used currency.
• The government effectively abandoned the local currency in 2009 and adopted a multiple currency system that includes
the US dollar and the South African rand.
• "Zimbabwe adopted the multiple currency system or dollarization in 2009 and it is therefore necessary to demonetise
the Zimbabwe dollar unit " Reserve Bank of Zimbabwe governor John Mangudya said at a news conference.
• “ Price Rise when Government Prints too much money ”one of the principles from core concept of economic
• This article taken from the “ NDTV “ Date June 12, 2015

4. SBI life will sell what customers want, value and
margin will follow:“ Mahesh Kumar Sharma ”
• Synopsis :
• Insurance coverex in India is very low on every index compared to China and Malaysia in India, traditionally , insurance was always
linked with some kind of endowment policy when you put some money over a period of time.
• I don’t look at the margin, l took a whether l am getting more customers. My embedded value, my value of new business has to
grow but if customers are satisfied, & persistence is high, automatically value will grow. So overall the basket is growing margins
will vary from products to product. We have increased the repeat customers to 20% this year from 14% 15% last year & we want to
increase that also SBI life’s lost there performance was probably that best by most metrics can investors expect be sustained the
bancasurance was the only to grow.
• “ Rational people think at Margin ” one of the principles from core concept of economic
• This article is taken from the “economic times ”

5. iPhone production in India to grow by 150% in
2023: analyst
• According to a report by JP Morgan, Apple is expected to shift 25% of its iPhone production to India by 2025, and 5% of global iPhone 14 production to India by the end of 2022
• Synopsis :
• According to Ming-Chi Kuo, a Hong-Kong-based analyst, Foxconn will ramp up production in India with the medium-/long-term goal to ship 40-45% iPhones from India.
• iPhone production in India is expected to shoot up sharply by 150% year-on-year in 2023 on account of frequent lockdowns at factories in China, said a noted Apple analyst.
• iPhone manufacturer Foxconn is reportedly planning to accelerate the expansion of its facilities in India, said Ming-Chi Kuo, a Hong-Kong based analyst.
• The Taiwanese manufacturer has already begun work on expanding its production facilities close to its current plant in Tamil Nadu, with hiring currently on, ET reported Friday.
• “ Standard of living depends on country’s production ” one of the principles from core concept of economic
• This article is taken from “ economic times ” Date and Time : Nov 05, 2022, 12:24 PM

6. A tradeoff between price rise and unemployment:
Inflation and jobs go hand-in-hand.
• Synopsis:
• The latest employment data for 2009-10, as per National Sample Survey Organisation figures, reveal 3 percentage point decline in the total workforce participation rate, and as
much as 6 percentage point downslide in that for women since 2004-05. The latter trend may have socio-cultural explanations, amidst rising family incomes. But is there an inverse
relationship between the inflation rate and unemployment in the Indian context, as is supposed in the mature markets abroad? A recent IIMA working paper is on the hypothesis of
the Phillips curve, the notion that there’s a tradeoff between price inflation and unemployment. The paper estimates the Phillips curve for the Indian economy, using data from
1950 to 2009.
• The study finds that a regular tradeoff does exist here in the choice between inflation and unemployment in the short-run, but opines that policy implications need to be nuanced
given the rigidities present in the labour market. The paper proffers the concept of extended Phillips curve, designed to capture the effect of changes in the unemployment rate
over time. The reasoning is that inflation depends not just on the expected inflation rate and the level of unemployment, but also on the change in the unemployment rate going
forward, as sharp reduction in the jobless rate means rising level of wages immediately, which in turn can well show up as higher inflation.
• To tackle the problems of both inflation and unemployment brought about by adverse supply shocks, the paper prescribes policy instruments for fast recovery read rapid growth without
being unduly exercised about the inflation/unemployment tradeoff. In the mature economies, labour markets are likely to be more complete and any disequilibrium such as unemployment
or its reduction can mean that the speed of adjustment of wages is rather high, implying reduced time period for the build up of inflationary expectations.
• “ Society faces short term trade off between inflations and unemployment ” one of the principles from core concept of economic
• This article is taken from “ economic times ” Date and Time : July 16, 2011, 3:23 PM

7. Opinionl India’s trade off: Save lives or the
informal economy.
• Indeed while the immediate priority is to save lives, it is apparent that India faces an equally compelling humanitarian challenge: the informal economy.
• Synopsis :
• In anticipation of a longer lockdown, daily wage workers are going back to their villages
• Last week India finally joined the rest of the world in ordaining lockdowns of varying degrees. In his inimitable style Prime Minister Narendra Modi put a formal stamp on this strategy when he made an appeal in his
national address for a “Janata-curfew" on Sunday; implicitly he signalled that this could be the norm over the next fortnight as India, with the world’s second-largest population, scrambles to flatten the Covid-19
pandemic curve—so far the only proven solution in mitigating the spread of the virus which originated in Wuhan, China and spread to 171 countries; China with a combination of its indomitable spirit and draconian
measures showed that ‘social-distancing’ works in containing the spread.
• From all accounts, the PM Modi nudged self-imposed quarantine has been an outstanding success. Yet it has extracted a cost: brunt of which is being borne by the informal economy. The daily wage labourers or those
associated with the gig economy—many of whom were laid off when restaurants were shut down or when people started to shun the app-based taxi services—have lost a day’s livelihood. Extend this for a week and the
impact is likely to be devastating on this segment of the economy. Not that the organised sector is not bearing the load, but in the short run, the informal sector is the key pain point.
• Indeed while the immediate priority is to save lives, it is apparent that India faces an equally compelling humanitarian challenge: the informal economy. It is a difficult trade-off facing the country. It is a no-brainer that
the immediate priority is to head off the Covid-19 challenge and save lives. Simultaneously though attention needs to be devoted to the workforce supplying the informal economy. Neither do they have fixed wages nor
do they (at least most of them) enjoy benefits like medical insurance, leaving them very vulnerable to an economic shock.
• Surely, smart bureaucrats can explore some loophole which will enable such an extraordinary move—the current crisis requires not one but several out-of-the-box solutions. In the final analysis, it is clear that India faces
a difficult trade-off. How it deals with it may well determine the legacy of PM Modi.
• “ People face trade offs ” one of the principles from core concept of economic
• This article is taken from “ Mint ” Date and Time : 22 March, 2020

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