IB Economists

India is said to be developing land of more than 450,000 acres, in order to attract Companies who would want to leave China. Tensions between the US and China have rised after the US blamed China for the development of the coronavirus disease. A rise in tension could include a trade war by both countries adding tariffs and hence making it worse for companies producing in China. This is the perfect opportunity for India to give shelter to the companies willing to leave China. If India makes the best of this then they could see companies setting up industries in India which will make products in India cheaper, improve the balance of trades, contribute to GDP growth, create employment and generate tax revenue. The industries setting up will make the goods cheaper since the goods will be produced in India and tariffs and quotas can be avoided. Some amount of goods will also be exported and the overall imports will be reduced, hence increasing the injection and reducing the leakage from the...

Facebook invested $5.7 Billion for a 9.9% stake in Reliance subsidiary Jio, this will help Jio Mart users to make payments through Whatsapp, which is the most widely used messaging app in India. Jio Mart helps local grocery stores to connect with consumers nearby with the help of e-commerce. Jio Mart is seen as a competition to ‘Local Stores by Amazon’ which also allows local grocery stores to connect with consumers in their locality. The service was launched six months ago on a trial basis. However, Local Stores, the stores themselves are responsible for delivering the goods, while in Jio Mart goods use its own delivery system to deliver the goods, this includes employees of Jio Mart to pick up goods from the store and deliver it to the consumer. During the coronavirus pandemic the need to deliver essential goods such as groceries at the doorstep is paramount and consumers may also be willing to pay extra for this service. Facebook and Amazon are among the largest corpora...