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Consumerist culture and its effects

  Consumerism has seen its fair share of debate in the past few decades. On one hand, it helps boost the economy. On the other hand, it severely affects the behaviour of saving for the future. The world now has an infinite number of companies, catering to the requirements of an ever-increasing population. The markets are flooded with goods arranged on shelves, that offer a huge choice to the buyers. The consumption of a particular product generates more demand of the product. This leads to both, increased prices and increased production. The corporates and the factory workers, whose united approach yield the desirable products earn more as profits and incentives, respectively. This further promotes more consumption of another set of goods, and the cycle of consumption and production continues. As the markets are linked together, this ultimately pushes GDP figures upwards. In this scenario, lack of sales of a product leads to innovation and strategy improvisation, ultimately benef...
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Priority Sector Lending

 Financial institutions all over the world usually operate to generate profits. They usually achieve this by investing in various developmental projects or lending to businesses. In case of India, banks and NBFCs (Non-Banking Financial Institutions) usually target big businesses which have a high probability of yielding huge profits. This definitely helps improve business, but it also leads to a divide in society. There becomes a privileged section living in urban areas with proper access to BFSI (Banking, financial services and insurance) while there’s another section deprived or underserved of these privileges who usually live in rural and remote areas. To reduce this divide, Government of India and RBI came up with PSL (Priority Sector Lending) norms for banks. Banks are considered a very reliable source of transaction, deposition and credit in India. So, PSL targets on them could help society very effectively. To meet with their PSL targets, banks have to lend a part of their A...
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Growth Performance of Indian Economy from 1947 to 2020

 Indian growth performance can be divided into 3 parts during 1947 to 2020- from 1947 to 1991 when India experienced Hindu rate of growth of 3.5%, from 1991 to 2008 when India experienced high growth rate of 8% as a result of structural reforms which was broken due to global financial crisis of 2008, and from 2012 to 2020 when India has recovered from the crisis and is undergoing structural reforms. In the first phase, the agricultural sector remained primitive, the industrial sector was largely restricted to public sector, the service sector was largely absent due to a closed economy. Although growth performance in this phase was largely limited, a strong industrial base could have been created through large investments by the public sector. From 1950-51, the sector-wise GDP contribution was: Agriculture- 59% Industry- 13% Tertiary- 28% Agriculture sector made a landslide contribution because a majority of Indian population was employed in agriculture. Disguised unemployment limit...
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