What if India has 0% income tax ? Tax Free India

Wants to know impact of 0% Income tax on any country, then you are at the right article because here you will get to know What if India has 0% income tax ? Tax Free India.

Imagine, our Prime Minister appears on the TV tonight to make an announcement. “Friends, to protect you, to protect your family, tonight, midnight onwards, the Income Tax in the country will be abolished.” “Ta-ta, bye-bye.” “No citizen would have to pay any income tax any longer.” “India would now become a 0% Income Tax country.” Good news for all citizens.

So Read the Full Article to know What if India has 0% income tax ? Tax Free India.

Income tax

Don’t you find this quite unrealistic?

But it is not unrealistic. Because BJP MP Subramanian Swamy supports this. He says that to revive the economic growth of the country, Income Tax should be abolished. There are several countries in the world where no personal income tax exists. But for a large country like India, is it possible to do this? If yes, what will be its pros and cons?

“In the upcoming budget, the Government can make drastic decisions.” “Personal income tax and Simplification of taxation.” “Arun Jaitley tells the government to hold the IT forms.” “I propose to bring a new simplified personal income tax regime.” To understand this topic in-depth, there are some basics of taxation that you should know first.

So let’s begin from the beginning. Broadly speaking, there are two types of taxes collected by the Government. Direct taxes and Indirect taxes. Direct taxes are the taxes that you, as an individual or a company, pay to the Government directly. Such as the Corporate tax, Capital Gains tax, Property tax and Income tax, all fall under the category of direct taxes. Apart from these, there are Indirect taxes. These aren’t paid directly by the individual on whom the burden falls. A major example of this is the GST. Suppose the Government increases the GST on milk, then the milk manufacturers and the milk suppliers, will increase the cost of milk accordingly. And when you’ll go to the market to purchase milk, you will have to pay extra. The expense due to the increase in the GST, is being paid out of your pocket. But you’d pay that money to the suppliers and milk manufacturers. And then they will pay this extra GST to the government. Essentially, the cost of the GST, will be borne by you, but will be paid to the government by the milk suppliers and milk manufacturers.

Thus, this is an Indirect tax. Because you are paying this tax indirectly to the government. The Excise duty on petrol, diesel is also a good example of Indirect tax. Often, you will see people on social media and WhatsApp claiming that only 2% – 3% of the citizens actually pay taxes. This is an outright lie. Because if you consider taxes like the GST, not only every citizen of the country that purchases any good from any shop, on which GST is levied, is a taxpayer.

But also a foreigner that visits India who purchases something from a shop,

is a taxpayer. Every citizen, every foreigner that

comes to India, lives in India, everyone is a taxpayer. But when they claim that only 2%-3% of the citizens pay taxes, then they’re talking about Income Tax. There are very few citizens in the country that pay Income tax.

According to the data from February 2020, of the 1.3 billion population of the country, only 14.6 million Indians pay taxes. This is about 1% of the population of the country. The reason for this isn’t that many people aren’t paying the taxes, or are keeping black money, the reason is simply that a significant portion of citizens are so poor that they do not reach the exemption limit. Their income is not enough.

For this reason, the people that do pay the income tax, the salaried Income Taxpayers, feel that they are being exploited by the government. There are anyway so few people on whom so much income tax is levied and who do not get anything in return. For a businessman or a company, it is relatively easy to hide their income and evade paying tax, than compared to a salaried taxpayer. Because when a common man gets a salary, the income tax is already deducted from the salary before being paid. On top of it, the agriculture income isn’t taxed in India. You’d say that the farmers hardly earn anything.

What will be taxed?

But an RTI was filed in 2011, friends

that I’ll like to tell you about, that showed that there are about 700,000 individuals in the country who had earned millions from agriculture but paid zero taxes. So there are several rich farmers, or you can say some rich businessmen do farming, that earn millions from agriculture, But don’t pay any income tax

because in India, agricultural income is exempt from Income tax. This is said to be another reason why the income taxpayers feel exploited in India. But this was from the perspective of an individual. An even more important question is

Income tax time

how will the country benefit if Income tax is abolished?

The examples that I’ll state here are purely theoretical. Because no one knows for sure how the country would benefit. There are some presumptions, and arguments that are used in its favour by experts and economists. The first argument is that the money that the income taxpayers will save by not having to pay income tax, the income taxpayers will be able to spend it on other things, for their personal benefit or their pleasure. Leading to more money being circulated in the economy.

Increasing the economic growth of the country. The second argument is that the people who were liable to pay income tax but were hiding their money from the tax authorities, meaning the people with black money, by abolishing Income tax, their black money will be converted into white money. They wouldn’t need to hide the money. And they’d be able to openly use that money. Can get it deposited in banks.

Or if they openly use it to buy things, it will again lead to an increase in money circulation in the economy. Economic growth will be boosted. And the money that they will openly deposit in the banks, will lead to increased deposits with the banks, and the banks will be able to lend money to the public more easily, the interest rates will fall, causing people to borrow more spend more, and boosting economic growth further.

It is a very interesting argument, with a small problem. We do not know the exact figure of black money hidden by the citizens. The third argument is very simple, the money spent by the government to collect income tax, will then be saved. The website maintained by the government, the expense of maintaining documentation, the money spent on the income tax officers. And from an individual’s perspective, the person that spends his time to understand the various technical terms, for filing income tax returns, paying the accountants, all the hassle, time and money invested in these, all this time and money will be saved with the abolishment of Income Tax.

Till now I’ve told you the potential benefits of abolishing Income Tax.

Now let’s see the potential disadvantages of doing this. The biggest and clear cut disadvantage will be the revenue loss of the government. Look at this graph to know the exact revenue loss. This graph shows the % by which the various taxes add to the government’s revenue. After GST at 28.3%, it is the Income-tax from where the government’s 26.4% revenue is generated. About 1/4th of the tax revenue of the government will disappear if income tax is abolished.

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So where will this huge amount be recovered from?

It isn’t so that the government will let go of 26% of its tax revenue without being bothered by the loss. The government will want that the money they’d be losing out on would be recovered in some other form and source.

Tax time

How can this money be recovered?

The people favouring the abolishment of income tax, they argue that to some extent, it wouldn’t even be needed to be recovered, because the economic growth will prosper so well by abolishing income tax,that the remaining sources will draw in more money. The GST revenue of the government will increase. To compensate for this loss. Friends, here it will be very helpful to look at the countries where no income tax exists. There are about 23 countries in the world without an income tax. Where do the governments of those countries get their revenues from?

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How do they earn sufficient revenue?

Let’s look at them one by one. Perhaps the first country that you’d think of is the United Arab Emirates. There is neither a personal income tax nor a corporate tax in Dubai. In the UAE, oil companies are taxed and the corporate tax on them can even range up to 55%. Apart from this, the foreign banks operating in the UAE, are taxed up to 20% on their UAE based income. But other than these corporate taxes, in the UAE the entertainment tax is quite high.

That is levied on amusement parks and theatres. Other than these, the import duties are also high. When one imports alcohol from another country, then it can be taxed up to 50%.

Additionally, when the alcohol is sold, at the point of sale, it is taxed 30%. But overall, for the UAE, the answer to this question is Oil. And India does not have any oil to sell. So for India, this revenue source does not exist. Although interestingly, for the UAE to remain dependent on oil, is proving to be difficult. Because when the oil prices fall, the revenue of the Dubai government falls as well. That’s why countries like the UAE are trying to diversify their revenue sources.

That’s why in 2018, for the first time, 5% VAT was introduced in the UAE. So that the government may get a new revenue source. Of the 23 countries, 6 are like the UAE, that rely on oil for the functioning of their government.

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But what about the other countries?

There’s a European country called Monaco. A small country with no personal income tax. Monaco is a renowned tax haven where the rich want to stay. But it is a special case. This country is so small, and so many rich people live in this tiny area, that the property price here is extremely expensive. And the government collects 1% tax on the property being rented. The VAT here is quite high at 19.6%. And because so many rich people live in this overcrowded area, things have become very expensive here. The cost of living here is one of the highest in the world. If such a situation is created in India, then it will be terrible for the common people. Because no common man will be able to afford a cost of living this high. That’s why let’s move on to the next country. Bermuda. Bermuda has no oil, no personal income tax, no corporate tax.

So how does the government earn here?

The answer to this is the very high import duties in Bermuda. If you live in Bermuda, and you import something to Bermuda, since it is an island, you will have to import things, you’ll then have to pay very high import duties on them. 20% of the government’s revenue comes from import duties. There’s a vehicle tax of up to 150%. And there is also a land tax in Bermuda, which is as high as 47%. Apart from these, another revenue source of the government of Bermuda is the Payroll Tax, that’s similar to income tax. Because this is levied on the salaries of the employees. When the employees are paid by their employers, then this tax is imposed. Though it sounds like income tax, it is a bit different.

Because income tax is levied on every type of income. But the Payroll Tax is imposed only when salary is being paid. I think these examples are enough. You would’ve understood the basic concept. When the government lacks funds, it looks for other sources to earn revenue. So the Indian government will also need to find some source if the income tax in India is brought down to zero.And the other taxes don’t generate as much revenue as they expect as a result of abolishing income tax.

Also Read – Top 5 Best Umbrella in India 2022.


Hope you enjoy the article What if India has 0% income tax ? Tax Free India. Hope this article helps you to find some knowledge and interesting information about Income Tax. If you like the article please share it with your friend and if you have any Queries or Questions related to it definately you will give suggestions to us because it helps us to improve our Content.

5 unknown stories of Tata, which you did not even know about it.

Wants to know Some Amazing and unknown story of TATA. Then you are at the right article because here you will get to know 5 unknown stories of Tata, which you did not even know about it.

Do you know which is the most respectable brand of our country. Yes, Tata is the most respectable brand of our country but no one tells you that how Tata helped our country to win their first Gold medal and how Tata helped our nuclear industry grow. There is such a secret contribution of Tata, whose stories is not known to the whole world, so today we will tell you 5 such unknown stories of Tata, in you did not even know about it. So let’s start and read the full article.

JRD Tata

Here are 5 Unknown Story of TATA

1). How TATA Helps us for our First Gold Medal.

Tata was the biggest in getting India the first gold medal, but you know how Sir Dorabji Tata himself was an athlete and Sir Dorabji Tata believed that India could also produce world class athletes, so Tata himself sponsored India in the 1920 Olympics. But in 1920, India could not win a single gold medal, after four years India did not win a single medal in the 1924 Olympics, but for the first time in the 1928 Olympics, India won the gold medal in hockey after four years. This dream of India would not have been fulfilled if Tata did not support India till the Olympics, nowadays we feel proud to see whoever brings gold medals for India.

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2). Gifts a Precious Diamond for his wife

Sir Dorabji Tata loves his wife very much. Once on Valentine’s Day he gifted his wife a diamond twice as big as the Kohinoor but unfortunately that time tata steel was facing heavy loss in the industry. Sir dorabji Tata sold his personal jewellery to pay debt his wife sold her jewelery without any hesitation but unfortunately his wife died of cancer Sir Dorabji Tata built a memorable hospital for India to remember his wife Yes at Tata Memorial Hospital. Even today 70% of cancer patients are treated for free.


3). JRD Tata was the first licensed Pilot of India.

Do you know that India’s first license pilot is none other than Jrd Tata The Tata Airlines was started in the year 1932 and the airline’s first commercial flight landed from Karachi to Mumbai and the pilot of the flight was none other than Jrd Tata later the name of Tata Airlines Changed it to Air India and the government took a decision in which all the airlines of India would be controlled by the government that’s why Tata had to lose Air India from his hands.

4). Start a brand Lakme for the country when needed.

India got independence in the year 1947, but the economy of the country was not special. beauty products in India meant a lot of imports and exports were negligible in India Prime Minister Jawaharlal Nehru Nehru approached Sab Dorabji Tata to start a domestic cosmetic brand and they start a company inspired by Laxmi, started a company called Lakme.

Ratan Tata

5). Acquired Tetley in 2000 and give Signal that India has arrived.

In 2000, the BBC wrote an artistically titled that was honour of whole india that Tetley was acquired by the Tatas of India. At the time Tata Tea was valued at $100 million and Tetley was valued at $300 million Yah the deal was a signal to the whole world that India has come.

Also Read – Top 5 Best Umbrella in India 2022.


Hope you enjoy the article 5 unknown stories of Tata, which you did not even know about it. Hope this article helps you to find some Unknown Story of TATA and also Comment down your favourite one. If you like the article please share it with your friend and if you have any Queries or Questions related to it definately you will give suggestions to us because it helps us to improve our Content.

5 best wireless keyboard under Rs 1000 for Gaming and Typing.

Wants to know best wireless keyboard under Rs 1000. Then you are at the right article because here you will get to know 5 best wireless keyboard under Rs 1000 for Gaming and Typing.

Wireless rudiments are the trend of 2020 and now everyone wants to buy wireless Mouse, Keyboard, Charger, Power Bank etc. Wireless widgets are more expensive compare to wired widgets but then we’re suggesting top 5 stylish wireless keyboard under 1000 Rupees. A keyboard with line is prickly to people and it has limitation in area according to line size.

If you ’re a Gamer or Content creator also you must buy a wireless keyboard and mouse because it allows freedom of distance and that’s matter.

So Read the Full Article 5 best wireless keyboard under Rs 1000 for Gaming and Typing.

Here are the 5 best wireless keyboard under Rs 1000 for Gaming and Typing.

1). Logitech MK215

The reason why I chose Logitech MK215 in the first position is because of its overall value for plutocrat immolation.

The Logitech MK215 offers everything that you can anticipate from a devoted compact keyboard and full-sized wireless mouse in the subRs. member. For any keyboard, connectivity is essential, and the Logitech MK215 doesn’t fail in this area.

The 2MK215 supports2.4 GHz wireless connectivity that results in flawless connections with minimal detainments, and I endured this tête-à-tête. I noticed minimal detainments, and the conduct took place as soon as I pressed the corresponding keys on the keyboard. So the MK215 gets full marks from my end in connectivity.

Also, the MK215 had a small form factor which helped me save a lot of space on my table. Still, the keys have proper distance between them, and I didn’t have any difficulties in operating the keyboard. I do a lot of codifying work and my delicacy with the MK215 was enough good. I enjoyed using this keyboard for drafting my papers and documents. I also like the wireless mouse, indeed further than the keyboard. The mouse is nearly full-sized and offers decent comfort for win use.

Another point that caught my attention was Logitech MK215’s battery life. The manufacturer claims that the battery used in the keyboard can last for over to 24 months. I’ve used this keyboard for a many months, and battery life was noway an issue.

My only complaint with the Logitech MK215 was the lack of backlit lighting. It would have been a great addition. Still, handed it’s a budget keyboard, awaiting backlit would be a bit too much.

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2). Logitech MK270r Wireless Keyboard and Mouse

The Logitech MK270r grabs the alternate spot on this list of stylish wireless keyboards and mice under 1000 and for the right reasons. The main reason why the Logitech K230 sits on the alternate spot is that not only is it a good value for plutocrat offer, but it’s a full-sized keyboard with devoted media control.

The first thing that I noticed about the Logitech MK270r was its design, and make quality. This wireless keyboard from Logitech is compact and looks enough satiny & swish. If you’re a working professional or a pupil and you need a comfortable wireless keyboard also the K230 might be a perfect choice.

The Logitech K230 offered me one of the stylish typing gests amongst all the keyboards in this member. The keys have been framed well which results in a smoother, quieter, and more comfortable typing experience.

The Logitech K230 also supports the draw and play connectivity, and it proved to be really effective on several occasions. I could use this keyboard with any workstation nearly incontinently, and get on with my work. The keyboard connectivity works well, and it’s presto as well.

Another thing that impressed me the most was the compact size of Logitech K230 despite having devoted media controls. Still, the keys are laid out well, and you would not find it delicate to press the keys.

3). Dell KM117

I do n’t suppose it was possible for me to collect the list of stylish wireless keyboards in India without mentioning a product from Dell. The Dell KM117 occupies the well-justified third spot on this list.

The only reason why it’s one the third spot is because it exceeds yourRs. budget by a many hundredbucks.However, also the Dell KM117 might be the perfect choice for you, If you’re comfortable with exceeding your budget by a small periphery. It arrives with a wireless mouse as well which is on the same runner as the keyboard.

Still, also you’re gon na like the Dell KM117, If you’re a addict of regular-sized keyboards with devoted number pad and function keys. In my particular experience, the presence of devoted function keys and a number pad was of great convenience to me.

Despite being a full-size keyboard, the Dell KM117 is relatively slim and I really liked this about the keyboard. It felt good to use, and it always felt sturdy with the strong figure quality.

One of the major advantages of using the Dell KM117 was its usability across colorful Windows platforms. I could fluently go through the penstocks on Windows 8 and 10 thanks to the scroll wheel that could go up, down, left, and right. The side buttons of the mouse helped me pierce the Charms bar on Windows 8, and I enjoyed using them.

Let’s talk about my typing experience with this keyboard. The delicacy, perfection, and comfort offered by the KM117 were simply amazing, and I just loved working with this device. The typing experience helped me increase my productivity because I really enjoyed codifying on this bone.

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4). Zebronics Zeb Companion 107

The Zebronics Zeb Companion 107 wireless keyboard comes explosively at the fourth spot on this list of the stylish wireless keyboards under mice under 1000 Rs. Zebronics is gaining fashionability as an electronics brand in India, and I was enough satisfied with the quality of this keyboard offered by Zebronics.

I used the Zebronics Zeb Companion 107 keyboard for my programming needs, and I’m pleased to say that this keyboard fulfilled my prospects. The keys had a decent trip distance, and when I pressed the keys, I felt a unique sense of satisfaction.

The keys had a strong and sturdy sense to them, and I really enjoyed working with this keyboard indeed during those extended programming sessions.

The connectivity of the Zebronics Zeb Companion 107 was on point, and I had no issues using it with multiple workstations. I used to use it at my home, and I also used it at my workstation, and it paired with both of them seamlessly, thanks to the nano appendage.

The Zebronics Zeb Companion 107 is a full-size keyboard, and if you want those big keyboards with ample distance between the keys, also you would like this product. I really appreciate the generous distance between the keys, and the distance is nearly perfect. It’s neither too important nor too less.

There’s also a devoted number pad that would be of great help to you especially if you have some data entry jobs.

5). Portronics Key2

Still, also the Portronics Key2 might be the most ideal keyboard for you in this budget member, If you’re someone who wants a movable wireless keyboard because they’re always on the move. The Portronics Key 2 keyboard presumably has the lowest form factor amongst all the products that we’ve mentioned so far.

The reason behind the small size of the Portronics Key 2 is the absence of a devoted number pad. Still, I didn’t have any issues with this because I don’t use figures too frequently, and the absence of a devoted number pad didn’t harm me.

So if you’re someone who’s comfortable with the absence of a devoted number pad, also you can conclude for this keyboard without any alternate studies. Still, for those who are working as data entrants, or their work requires them to use figures constantly, you might not be as comfortable with the product as me.

Tête-à-tête, I really enjoyed using this product. It’s incredibly small, yet it’s so comfortable to use. I really enjoyed the typing experience this keyboard had to offer, and with its unique colour scheme, it looked charming as well.

I got used to this small keyboard, and it felt weird for me to switch back to a normal-sized bone. So do at your own threat.

In terms of connectivity issues, feedback time, response time, and make quality, the keyboard gets nearly full marks. I noway had any issues, and I was really happy with this product from Portronics.

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Hope you enjoy the article 5 best wireless keyboard under Rs 1000 for Gaming and Typing. Hope this article helps you to find some amazing keyboards under your budget. If you like the article please share it with your friend and if you have any Queries or Questions related to it definately you will give suggestions to us because it helps us to improve our Content.

Top 5 best upi apps in india for fast payment.

Wants to know Some of the best upi apps in india. Then you are at the right article because here you will get to know Top 5 best upi apps in india for fast payment.

Introduced in 2016, Unified Payments Interface (UPI) plays a vital part in enabling digital payments in India. UPI apps have helped Indians make cashless deals – an aspect that changed from simply a luxury to a necessity during the coronaviruspandemic.However, then are the top UPI apps you can use in India right now, If you ’re planning to start using UPI apps or are wondering if there are UPI apps that offer better features and experience.

So Read the Full Article Top 5 best upi apps in india for fast payment.

Here are the Top 5 best Upi apps in india for fast payment

1). PhonePe

PhonePe stands first in our list of stylish UPI apps in India. It’s a revolutionary app that made the Indian population start trusting and also making online mobile payments. PhonePe not only helps in making UPI payments but druggies can also recharge, make online bill payments, order food, shop,etc. all in just one app. As of November 2020, Phonepe has868.40 million deals in volume with Rs Cr in sale value.

PhonePe also provides colorful offers, prices, and cashback to its guests. Having one of the simplest interfaces with the safest and fastest online payment experience in India, PhonePe is surely one of the stylish payment app in India and better than utmost of the other UPI payment apps or internet banking services.

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2). Google pay

Google Pay, formerly known as Tez App, stands the biggest and stylish app in our list of stylish UPI apps in India. This app has accumulated a huge client base in India within a small time frame. And obviously, having a big brand name of‘Google’has helped this app to make trust among the new and living guests.

As of November 2020, Google pay has960.02 million deals in volume with Rs Cr in sale value. Using Google Pay, druggies can shoot plutocrat to musketeers, pay their bills, shop online, recharge, or pay at the near café,etc. through secure payment by Google.

Another most pleasurable part of using Google Pay is the “ Scratch cards”. Whenever the druggies make a new sale, they’re awarded a gift card in the form of a scrape card. After scratching the card, druggies can earn a gift in the form of plutocrat which directly gets credited into the registered bank account.

3). Paytm

Paytm is a relatively well- known mobile payment app in India. Along with Paytm Mall, it also offers Paytm Wallet and Paytm UPI (which was introduced in the time 2017). In simple words, we can call it a mega store due to the variety of products and services handed by this app.

Paytm druggies can perform nearly each and every exertion related to online payments on its app. And that’s why it’s clearly the most habituated payment app and is third in our list of stylish UPI apps in India. As of November 2020, Paytm has260.09 million deals in volume with Rs Cr in sale value.

From making online Payments to buying ménage particulars, groceries, IRCTC train ticket booking, machine & flight booking, movie tickets, LIC decoration payment, metro card recharge, buying gold, making loan payments, payinge-challans & further, everything can be done on this app.

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4). Amazon Pay

As of November 2020, Amazon pay is the fourth biggest app used for making UPI deals. Amazon pay got37.15 million deals in volume with Rs Cr in sale value in this month.

Having the big brand of Amazon surely helped Amazon Pay to gauge at such a fast pace in India within a small time frame. Also, having integrated with utmost shopping and payment gateways, along with stupendous cashback prices, Amazon pay has come the darling of the UPI payers recently.

5). BHIM App

BHIM app is the fifth most popular UPI apps in India. It’s launched and managed by Public Payments Corporation of India (NPCI), BHIM (Bharat Interface for Money) is a UPI enabled the action to grease safe, easy & instant digital payments through your mobile phone.

As of November 2020, BHIM App has0.31 million deals in volume with Rs13.87 Cr in sale value.

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Hope you enjoy the article Top 5 best upi apps in india for fast payment. Hope this article helps you to find some information about UPI. If you like the article please share it with your friend and if you have any Queries or Questions related to it definately you will give suggestions to us because it helps us to improve our Content.

Top 5 Best Umbrella in India 2022.

Wants to know Some Amazing and Premium umbrella in this rainy season. Then you are at the right article because here you will get to know Top 5 Best Umbrella in India 2022.

When it comes to copping an marquee, chances are that you’re going to be a bit overwhelmed with the colorful choices out there. You got the small bones, large bones, screens that come with published designs and also, there are your introductory bones as well. It can be hard to figure out which one you need which is why we’ve collated the top 5 stylish screens in India.

So Read the Full Article Top 5 best Umbrella in india 2022.

Here are the Top 5 Best Umbrella in India 2022.

1). Destinio Large Umbrella

Destinio Large Marquee is made using ultraexpensive high- viscosity leakproof polyester fabric and is suitable for the use of both men and women. This is at the alternate position on our list of the stylish marquee brand in India. It has 10 resin- corroborated fibreglass caricatures that can help the marquee from breaking. Though this is a big sized marquee but can be fluently made into the size of a 3 folded one to carry it with ease. This marquee from Destinio is suitable for the summers as well as the stormy season when using outside.

Special features

  • This is an automatic marquee
  • The marquee is fluently movable
  • It’s made with ultraexpensive quality material
  • Has stability in high winds
  • The marquee can fluently repel water
  • This has an ergonomic, slip- evidence handle
  • The marquee has a one-handed operation

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2). Sun Umbrella

The number 3rd on this list of the stylish marquee in India goes to Sun Umbrella. This marquee has a thick spoke and is erected with superior fabric tents and fresh grains in moulding all the plastic factors that guarantee that it’ll last for numerous forthcoming times. The most instigative part about this marquee is that its handle is carpeted with a black matte finish lacquer for a better grip, and hold. You can comfortably carry this marquee anywhere you like since it’s extremely featherlight.

Special features

  • Has a UV defensive black cover
  • Carry it hands-free with a wrist swatch
  • Comes with a transparent storehouse sleeve
  • Can open both manually, and automatically
  • Comes with added strength for bad rainfall conditions
  • The price of this marquee is affordable
  • This marquee is water-resistant

3). John’s Umbrella

With a fascinating ocean green colour, this John’s 545 Moon Tableware 3F Marquee gets 4rth place on this list of the stylish marquee in India. Made with high- quality caricatures, and tube, this won’t rust, and with a large cover, two people can take protection under this marquee. The marquee is carpeted with a tableware lacquer that prevents thesun?s shafts or wind from falling on the bases.

Special features

  • Available in 11 instigative colour options
  • Has a UV protection cover on top
  • This marquee functions easily because of its side placed tubes
  • Can accommodate 2 persons with ease
  • The marquee has sturdy erected
  • The price of this marquee is budget-friendly

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4). Allium® Umbrella

This medium-sized marquee from Allium is in 5th place on this list of the stylish screens in India. The marquee is made ofeco-friendly material which causes zero detriment to you and the terrain. This has a corresponding cover to carry around on fancy occasions like marriages or theater parties. It has strong stitching that makes it durable and has flower patterns that are magical and only shows up in the rain.

Special features

  • The marquee is veritably compact
  • Veritably safe to use because of itseco-friendly material
  • Can be used on the fancy occasions
  • It comes with a matching carrying cover
  • The cover is defended from UVA or UVB shafts
  • This has 6 different colours

5). Fendo Yardley Umbrella

Manufactured by Fendo, this marquee takes up the 6th spot on this list of the stylish marquee in India. This marquee is made with a durable polyester fibre that can last for numerous summers, and layoffs. Theumbrella?s extension rod is made up of superior quality shaft material with heavy- duty caricatures for better strength. Keeping in mind all the positive factors this marquee can last in ultimate rainfall conditions. And, whatever your age is this brand has an marquee for everyone in the family.

Special features

  • The marquee has 12 available colours
  • Comes in a long- lasting fibre
  • It can repel all harsh rainfall conditions
  • The marquee is made with heavy- duty material
  • This is a medium-sized marquee
  • It’s a featherlight marquee

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How Jeff Bezos Made amazon a 1.6 Trillion $ Company, Business Model of Amazon ?

Wants to know how Amazon become so successful then you are at the right article because here you will get to know How Jeff Bezos Made amazon a 1.6 Trillion $ Company, Business Model of Amazon ?

In the year 1994, Jeff Bezos left his cushy investment banking job,to work on his startup. Internet was blowing up at the time. So he got the idea of doing something internet-related. Of creating an online store, to sell books!

So Let’s Start our Today’s Topic How Jeff Bezos Made amazon a 1.6 Trillion $ Company, Business Model of Amazon. So Read the Full Article.

What should he call this online store?

He thinks of the name Cadabra. From Abra-Cadabra. This name was so weird that when he started using this name, his lawyers questioned the name. When they called up customers, the customers often didn’t recognise or understand the name of the company. They tell him that the name has to be changed. So Jeff Bezos started thinking about other names. He registered several domain names. Because it was supposed to be an online bookstore, he thought of BookMall. In fact, this is a domain name that still redirects to amazon.com when you type in this website on your browser.

He finally settled on the name Amazon, because Amazon is the largest rainforest in the world. And the Amazon River is the largest river in the world.He wanted the Amazon company he built, to be the largest bookstore in the world.

Interestingly, if we fast forward to 25 years into the future, today, Amazon is not only the largest bookstore in the world, but also is the largest online store for buying just about anything. And Amazon Prime video, is one of the largest OTT platforms.

Amazon Web Services is number 1 in its field. Amazon Alexa, Amazon Kindle, Amazon Drive, Amazon Music, Amazon’s Audible, Amazon Pay, Amazon has even started delivering groceries in some countries, under the name Amazon Fresh. At one point, Amazon had tried to launch their phone, called Amazon Fire. Though that turned out to be a flop idea. But today, Amazon has become so successful not only as an online store, rather as a company spread over soo many sectors. How was it possible?

What is the Business Model of Amazon?

Come, let’s understand in today’s video. “Jeff Bezos has become the first human being on the planet to be worth $200 billion.” “I was a good student. I always worked really hard. I was nerdy. It doesn’t matter to me whether we’re a pure internet play what matter’s to me is do we provide the best customer service?”

The idea of Amazon was quite simple right from the start. But it was a unique idea for its time. To create an online bookstore. At the time, people had to go to physical bookstores to buy books. Why not let people buy books online through a website on the internet? Initially, Amazon’s website was a mere bookselling website. The advantage of selling books online was that customers could access thousands of books on a single website. A very basic, practical, and convenient idea. One that people needed. Right from the beginning, even as a startup, Amazon was a successful company. The website was launched in 1995. And by December 1996, they had amassed a customer base of 180,000. Their website looked like this then. By 1997, their revenue had reached $148 million. At this point in time, Jeff decided that he didn’t want Amazon to remain a private company instead, he wanted to list it as a public company in the stock market. So that the company could access more funds to grow.

In 1997, Amazon became a public company. And by 1998, Amazon’s revenue had reached $600 million. There are said to be 2 main reasons behind Amazon’s success. First, Amazon was offering a huge convenience to the customers. And at the time, there were next to no companies that was offering the same service as a competitor. And the second is something that’s called the Flywheel Effect. A flywheel is basically a spinning wheel, it keeps spinning evenly even when faced with changes in external conditions.

Amazon’s business model had become like a flywheel by then. They sold books at lower prices, and millions of books were available in their online store, so the customers had a positive experience, since the customers were happy, it drew more customers to their website, and because more customers were joining their website, the sellers of the books, especially the third-party commission-based sellers, wanted to join Amazon to sell their books. Because they could see the large number of customers it had. So more and more sellers listed their books on Amazon, leading to more options of books to buy on Amazon for the customers. It had become a wheel that was being pushed in the same direction twice, increasing the rotational speed.

When Amazon earned more profits, Amazon used that money to improve their website and to improve the customer experience as well as in keeping the costs low. Because this was a game of low costs. When books were being sold at low prices, more customers and sellers would use their services. And thus a nice business model was created.

In 1998, Bezos thought of using the same strategy to sell not only books, but to sell computer games and music also. In 1998, Amazon expanded their business, in addition to books, they were also selling computer games and music on their website. It saw unprecedented success. To such an extent that in 1999, Time magazine’s Person of the Year

was Jeff Bezos. His photo was printed on the front page. With time, Amazon adopted many ideas, big and small. Driving forward the growth of the company. One of these ideas was, the 1-Click button.

When you shop on Amazon, you would’ve seen, there’s an option “Add to Cart” and below it, there’s the option Buy Now with 1-Click. With one button, you can buy the products and get them delivered. Many people use this 1-Click button and often end up buying things that they truly don’t need. This button was a great idea on its own. And it was so successful that in September 1999,

Bezos got this technology patented. There were 2 uses of this seemingly simple button. The first and quite obvious is that customers can buy things much more easily. It greatly improves the convenience of the customers. And the second and hidden benefit of this was that when people use this button, they need to save all their information first. Their personal information. Name, contact details, payment details, billing address. Only then can you use this button.

Amazon started tracking it. When people used this button, Amazon tracked what they bought. And based on that, Amazon started sending out suggestions “If this person bought this they would like this too.” With this, they started putting up ads for the customers according to their buying preferences. With the help of these targetted ads, it became easier for Amazon to sell products. And their sales grew exponentially. If you have to click on multiple buttons to buy something, it gives you the time to think.

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Do I really need it? Should I buy it?

But if one click of a button, you get to buy something, you wouldn’t even get the time to think. So the sales of Amazon grew even more. Several companies tried to copy this idea. There’s a company called Barnes & Noble, they tried to incorporate a one-click button too, but since Amazon held the patent, they lost the lawsuit. And Amazon was the only one that could use this. Amazon had a huge advantage because of this. But fortunately, for the other companies, this patent expired in 2017. And presently, any company can use it. For starting any type of a business or job, you need creativity and innovation but before that you need to have the basic skills in your field.

How Jeff Bezos had the knowledge of computer science beforehand. It was his field of study. While working at the investment bank, he had an idea of the potential of the internet. In his job, he was assessing the growth of the internet, and whether they should be investing in internet-based companies or not. In 2000, the Amazon Marketplace was launched.

Jeff didn’t want to be limited to books and games. He wanted everything to be sold on Amazon. Through this Marketplace, any third-party vendor could sell anything on Amazon. The benefit was that Amazon would take a portion of the sales as its cut, of anything sold. And this was huge. Because normally, if Amazon had to sell something suppose, Amazon wanted to sell tables and chairs. Amazon would have to have a warehouse for making and storing the tables and chairs. But here, a third party was making the tables and chairs and was selling through Amazon. So Amazon didn’t need any storage space. It didn’t need to build its warehouse. This became an important source of revenue for the company.

Amazon was growing so fast with so many new customers and vendors joining them, that they faced a shortage of data storage. Jeff then decided to invest more in technology and to create their own data storage facility. Rather than using someone else’s storage facilities. Friends, this was the birth of AWS. Amazon Web Services. Again, this was another field, that didn’t have much competition. Not many companies were doing this. And this business was so successful for Amazon, that currently, this is the highest profitable business that Amazon is involved in. 40% of the profitability of Amazon is from AWS. Amazon Web Services. Most of the top companies in the world who have an online presence, Netflix, Pinterest, Twitch, LinkedIn, Facebook, use Amazon Web Services to store their data.

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Amazon Kindle

In 2007, Jeff Bezos executed another horizontal expansion of Amazon, with the launch of Kindle. An e-Reader. Since Amazon had begun as an online bookstore, launching an e-Reader, so that books could now be read digitally as well as physically, was a related expansion. Interestingly, Jeff Bezos decided that Kindle would be a Zero-Profit device. The cost incurred in making the device, would be the only amount recovered from the buyers and Amazon would earn zero profit from selling Kindle. You would be surprised to know this, you might wonder how it could be possible.

The simple reason for this was the books that could be read on Kindle had to be bought on Amazon’s bookstore. Though Amazon wouldn’t earn anything from Kindle, Amazon would make money by selling the books. This business strategy was very successful too. With this Kindle could become a very low-cost device. Many people started buying it,

and today, Kindle is the world’s number 1 e-Book reader. Friends, you might have noticed one thing, so far in the story, the areas that Amazon was successful in, in most of the areas, Amazon was the first company, to properly get into the business. To capture the market. There was a significant First Mover Advantage that Amazon exploited time and again. For example, it was the first to come up with the idea of an online bookstore. To become successful with the first-mover advantage becomes very easy. Although, one has to work really hard to maintain it later on.

Like how Amazon had patented the new technologies and kept innovating rapidly, so that Amazon could maintain that advantage. And it could defeat the competitors that cropped up later. In the areas that Amazon could not get the first-mover advantage, where there was a tough competition already Amazon’s failures were highlighted there. Such as Amazon’s Fire phone.

Amazon Fire Smartphone

When Amazon tried to launch its smartphone, in 2014. But 2014 was already quite late to launch a smartphone. The first iPhone was launched in 2007. And Android was launched a few years later. By 2014, there was tough competition between Apple and Android. Both companies were innovating continuously and bringing in new technologies. In this case, when Amazon came up with its smartphone, it was very difficult for Amazon to compete with the experienced players.

That’s why Amazon’s Fire phone was a huge failure. But on the other hand, for e-Readers, Amazon was one of the first companies to make e-Readers. They made a good quality product at a low cost and with zero profits, so Amazon is the Number 1 for e-Readers. A similar thing was seen in the Indian market. In Amazon’s business field,

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Big Competition with Flipkart

Flipkart was launched in 2007. Amazon hadn’t entered the Indian market in 2007. Flipkart got the first-mover advantage here. And this advantage remained for years. In 2013, Amazon entered India with Amazon India. But because of Flipkart’s advantage, even now,

Flipkart is giving strong competition to Amazon. The two companies have an almost Duopoly in the eCommerce market. A monopoly is when one company rules the market, A duopoly is when two companies rule. Each of the two companies has a market share of around 30%, and all the other companies share the remaining part. If we look at the data from Financial Year 2020, the number of users of Flipkart is more than three times of that of Amazon India. And the revenue earned by Flipkart is more than thrice of that of Amazon India. The simple reason behind this is that Amazon is spending a lot of money in the Indian market so that it could increase its market share. So it is willing to work at a low profit too. It is sacrificing a part of its profit to build a better market share. Because as we can see, the company that can get the biggest share of the market, gets this Flywheel advantage.

There’d be more customers and more sellers. So it is very important to do this. To be successful in this market. So even if one doesn’t earn as much profit in the beginning it’s alright. When Flipkart got its advantage they made full use of it by quickly diversifying. Presently, Myntra is owned by Flipkart, Flipkart Wholesale, Flipkart Health+, Cleatrip, Shopsy, and even the payment app PhonePe. Flipkart has a majority stake in it.

Similar to the horizontal expansion of Amazon in the USA and other countries, of its business areas, Flipkart did the same thing in India. But overall, the growth of Amazon, has still been exponential across the world. their revenue growth in the last 20 years. From 2005 to 2021, they have crossed a quarterly revenue of $100 billion and this chart is rising exponentially.

Due to the coronavirus pandemic, it increased further, because everything was closed during the lockdown, so everyone was ordering goods on Amazon, while other shops were closed. Amazon got a huge advantage from it. Due to this, Jeff Bezos became the richest man in the world. Amazon’s eCommerce business can be divided into 2 models. 1P and 3P. 1P means that Amazon buys a product stores it in its warehouse, puts it up on its website and then delivers the product to the consumers. The second is the 3P model. it means that someone else makes the product, and sells their product on Amazon,

while Amazon acts as a marketplace, and then the product is delivered to the consumers. In the 3P model, Amazon basically acts as a platform, that is used by the sellers and the consumers to sell or buy their goods. Interestingly, there isn’t a significant profit margin in the 1P model. Most of the profits come from the 3P model, because in 1P the goods need to be stored as well. It is filled with hassles like buying large warehouses, for storing the goods, and the duration of storage, a lot of money goes into these. In the 3P model, there’s just the website, on which people can come to sell and buy products. For Amazon, the benefit lies when the 3P model is used more.

Initially, Amazon had used the 1P model, when it began in the late 1990s. the proportion of usage of 1P versus 3P. With time, the percentage of 3P kept increasing. By 2018, 58% of things that were being sold on Amazon, were sold under this 3P model. Meaning that Amazon wasn’t going into the hassles anymore. And was earning more profit. The revenue sources of Amazon and the money it earns from its various businesses can be seen in this chart. If you look at the numbers from 2020, the online store contributes the most revenue, around $200 billion. And AWS is a major source of revenue for Amazon, because it is the most profitable. This chart shows you the revenue only the money that the company earns. But doesn’t show the amount spent by the company. For that, we turn to the chart of profitability. Interestingly, Amazon, as a company, wasn’t very profitable in its first decade. Until 2014, the company was earning next to no profits. Because all the revenue of the company, was invested back into the business by Jeff Bezos, to expand the business.

But after 2016 and especially after 2018, Amazon has started earning profits. And is now focusing on profitability too. Over the last few years, Amazon has raked in so much profit, but the credit for that mainly goes to AWS, because AWS is one of Amazon’s businesses with the highest profit margin with a profit margin of 30%. And it kept growing with time. Even in the last few years, Amazon’s expansion wasn’t stopped. Amazon Logistics saw good growth.

Here, they are giving competition to the delivery service companies. Such as UPS and FedEx. These are big in North America. And because of these reasons, friends, today, Amazon could become a $1.6 trillion company. This was Amazon’s interesting story. If you liked this video,

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Hope you enjoy the article How Jeff Bezos Made amazon a 1.6 Trillion $ Company, Business Model of Amazon. Hope this article helps you to find some information and business model of Amazon. If you like the article please share it with your friend and if you have any Queries or Questions related to it definately you will give suggestions to us because it helps us to improve our Content.


James Webb Telescope by NASA , Can it Time Travel ?

Wants to know The Mystery behind James Webb Telescope by NASA and how it can possible to time travel in the real life. Then you are at the right article because here you will get to know James Webb Telescope by NASA , Can it Time Travel ?

The biggest and the most powerful space telescope in the world, was launched by NASA some days ago. It’s named the James Webb Space Telescope. Using this, you can time travel of sorts. I mean, it isn’t possible to go back in time, but with this, you can get a glimpse of history.

And I’m not talking about the history made in the last 5-6 years, literally, millions and billions of years’ history can be looked at using this telescope. More specifically, 13 Billion Years! The universe began with the Big Bang 13.8 billion years ago. And this telescope can look till 13 billion years ago.NAbout 0.7 billion years after the universe began.

But how can it be possible?

Come, in today’s video, let’s understand this phenomenon. “Liftoff from a tropical rainforest, to the edge of time itself, James Webb begins a voyage back to the birth of the universe.” “Nature has its way of being even more creative than we are. So we have always been surprised by what we see in the sky. That’s why building a telescope has always been interesting.” “I don’t think that human beings have the obligation to learn about space. But it will be foolish and shortsighted not to do so.

It may hold the key to our survival.” The most special thing about this telescope is that it has been designed mainly to detect infrared light. When you look at the sky, with a normal telescope, you see the wavelengths of visible lights. The light that you can see with your naked eye. Do you remember studying about Electromagnetic Spectrum in school? The Electromagnetic waves in a broad spectrum. It includes X-rays, Ultraviolet rays, radio waves, microwaves, and in there, there is a small range of visible light. The light that we can see with our naked eyes. The normal telescopes that you can buy at any shop, help you look only at the wavelength of the visible light. The range of visible light is between blue colour to red colour, and red has the biggest wavelength. And as you know, with electromagnetic waves,

the bigger the wavelength, the easier it is for the electromagnetic waves to pass through any object or obstacle. Like the radio waves. The radio that you listen to. The wavelengths of radio waves may span more than kilometres. For this reason, you can listen to the radio waves that pass through buildings even. The wavelengths of infrared are bigger than that of red. But we can’t see infrared with our naked eyes. The advantage of using a telescope for looking at infrared, can be seen in this photo. The photo on the left was taken by the Hubble Space Telescope.

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The most powerful space telescope we had till now. You can see the space dust in it. And you can see the clouds of gases forming. But infrared wavelength can pass through the dust and clouds and we’ll be able to see what lies behind this. The picture on the right is what we imagine we would be able to see with the James Webb telescope. Basically, you can say that we’ll get a more high-quality, HD picture.

The word Infrared basically means below red. This word comes from Latin, Infra means below. So Infrared literally means Below Red. Because its frequency lies below that of red. And frequency is inversely proportional to wavelength. You’ll recall this. Anything that radiates heat, emits infrared waves, Humans, animals, the Sun, fire each of these emits infrared waves. That’s why in night goggles, you would’ve seen soldiers use night goggles often, they basically detect infrared. Through the night vision goggles, you get a view like this It is captured by infrared cameras. Since the telescope will look at stars and galaxies of stars, and planets, all of which radiate heat,

it’ll be possible to capture and look at the infrared waves. The other advantage of infrared is that when a telescope looks at stars at such a distance, stars that are billions of kilometres far from us, when the light from those stars reaches the telescope, the light has travelled such a distance, that by the time it reaches here, and as we know the universe is slowly expanding, the wavelength of the light gets stretched. The wavelength gets elongated. This phenomenon is known as the Red Shift. That the wavelength of the light has stretched a bit, and has shifted towards the colour red. With telescopes, the bigger the mirror they are equipped with, the more light they’d be able to capture. And the resolution of the image that we get will be that much higher. That’s why, with the creation of more and more advanced telescopes, they are being equipped with bigger mirrors.

The mirror of the Hubble Space Telescope, was of this size. And you have the mirror of the James Webb Space Telescope beside it. This entire mirror is plated with 24karat gold. Because gold is the best at reflecting red light. Because of gold, the reflectiveness of this mirror is at 98%.

But There’s a problem here.

I said that everything that radiates heat emits infrared waves. When the telescope will start working, the telescope will radiate some heat too. Some infrared waves will be emitted from within the telescope. It’ll interfere with the waves coming from the galaxies and we wouldn’t be able to get good high-quality pictures. To avoid this, this James Webb Telescope will work only at the cold temperatures of -223 C.

The temperature needs to be so low for it to work. On Earth, the temperature hasn’t fallen below -89C.

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So how could this telescope be kept so cold?

It is possible to do it in space. It is possible because it is very cold in space, unless there’s sunlight. If sunlight falls on you in the space, the temperature would rise rapidly. As is the case on the moon. Because there isn’t any atmosphere on the moon, The temperature may fall to -170 C there. But as soon as there’s sun, the temperature rises to 120 C. It is very problematic for this telescope.

No sooner would sunlight fall on this telescope it would be problematic as everything would heat up rapidly. So they needed to stop the Sun. To avoid this problem, a Sun Shield has been installed on this James Webb Telescope. This Sun shield is in the shape of a kite and is as big as a tennis court. So the telescope could remain protected from the Sun.

For this, a very special material has been used, Kapton. Several materials were tested to see which material could be used to block the Sun most effectively and to keep the telescope cool. It was later discovered that Kapton was artificially created. This Sun Shield comes with 5 layers of Kapton, and each layer is thinner than a strand of human hair. There’s a vacuum gap between each layer. So that its effectiveness could be increased. Apart from this, each layer has an aluminium coating on it. And the two layers closest to the Sun have a coating of doped-silicon. This space telescope isn’t being deployed near the Earth, as the Hubble Space Telescope was. Hubble is close to the Earth and orbits around it.

But this will be deployed 1.5 million kilometres away from the Earth. At the point known as the L2 point. L stands for Lagrange Point. This point will be on the other side of the Sun, because obviously, it is important to block the heat and light of the Sun as much as possible for the better functioning of this telescope. And the L2 Point is special because, it keeps revolving with the Earth. So the Sun will be hidden throughout the revolution. Look at how its orbit will be. The Earth’s shadow will keep the Sun hidden. It’s similar to when you look at something in the direction of the Sun,

you can’t see clearly because of the sunlight. It’s the same as when you cover the Sun with your hand. And you get to see clearer. It’s the same with the telescope.

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What NASA had Said on this ?

NASA has said that the entire procedure of creating and launching it is so complicated that they have identified more than 300 potential problems that may arise. More than 300 single points of failures, if any of them come true, then the entire project would be as good as over. $10 Billion has been spent on this project. This amount is so huge that NASA had to defund several research projects and direct the money to this project to make it possible. Along with NASA, the European Space Agency.and the Canadian Space Agency are also participating in this. The scientists have pinned their hopes that using this, they would be able to study

how did stars and galaxies form after the Big Bang. As I told you, with this telescope, you can look 13 billion years into the past. The Hubble Space Telescope could look to only 1 billion years after the Big Bang took place. So about 12.8 billion years ago. But the James Webb Telescope can look to 0.3 billion years after the Big Bang.

When the stars began to form first. You’d ask how is it possible to look into the past?

The answer to it is very simple. The light takes some time to travel the distance. And by the time the light reaches from one place to the other, a lot of time would have passed. Especially when it involves distances this large. The light from the Sun reaches the Earth by travelling approximately 8 minutes. It means that if the Sun vanished suddenly, for example, it will take 8 minutes for people to find out on Earth, to see that the Sun has disappeared. In a way, you can say that we are looking 8 minutes into the past when we see the Sun. Similarly, apply this logic on a large scale. The stars and galaxies that are millions of light-years away from us, when we look at them through the telescope or we gaze at the stars from the Earth,

we are actually seeing them as they were millions of light-years ago. The universe is so huge that there are stars that are 13 billion lightyears away from us, by the time their light reaches Earth, 13 billion years would have elapsed, and what we get to see today, are the events of 13 billion years ago. This way we can get a glimpse of history. With this logic,

theoretically, it is also possible that if we go 100 million lightyears away from the Earth, we teleport to a planet that is 100 million lightyears away from the Earth. And on that planet, we build a very powerful telescope and look at the Earth, we’ll get to see the Earth as it was 100 million years ago. We’ll get to see dinosaurs! But the practical problem to doing this is that by the time we go to the other planet and look back at the Earth, it will take a much longer time to reach the other planet, than the years that we can look back to.

So if it becomes possible to travel by teleporting, we’ll be able to watch history occurring on the Earth. And would actually be able to time travel. Additionally, it will be also interesting to see the new planets that the James Webb Telescope discovers.

Can it find a planet with Earth-like conditions?

Where life can be possibly found. Time will tell.

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Hope you enjoy the article James Webb Telescope by NASA , Can it Time Travel ? Hope this article helps you to find some information about the Space Research. If you like the article please share it with your friend and if you have any Queries or Questions related to it definately you will give suggestions to us because it helps us to improve our Content.


How Russian Economy is Now Permanently Destroyed. Effects of War ?

Wants to know how Russian Economy is Damaging due to war. Then you are at the right article because here you will get to know How Russian Economy is Now Permanently Destroyed. Effects of War ?

The war is raging on in Ukraine. But the destruction is caused in Russia too. The common Russians are in a bad condition. The Russian currency, Ruble, has crashed in the last few days, now, there are long lines outside the ATMs in Russia. The Banks are out of cash to give to people. People have started hoarding phones and electronic items they are buying as many as they can, because they are the only things whose value wouldn’t depreciate.

The hard-earned money of the people has started losing its value. Thousands of Russians that deal with foreign countries aren’t getting their salaries. There’s so much inflation people are worried that Russia might end up like Venezuela.

So Read the Full Article to know How Russian Economy is Now Permanently Destroyed. Effects of War ?

Why is it happening in Russia?

When a country goes to war, how does it affect the economy of the country? How are the citizens affected? These are seldom discussed topics.

This article will shock you. Because you can’t even imagine that in today’s day and age, what a Superpower Country has to go through, when that country goes to war. Even though the war isn’t fought in the country.

Come, let’s take a look. “Sanctions from the west are already having a major impact on Russia’s economy.” “A 30% loss in value is seen in Ruble.” “Many people are worried about their income.” “Microsoft, Apple, Samsung, HP, Intel, all stopping new sales.” “At McDonald’s, final orders it’s suspending business in Russia.” “All western businesses are shutting down. Everyone who can is leaving. We’ll be left isolated.” “Netflix has pulled out. TikTok, won’t allow posts by Russian users.

The Ruble: worth less than a penny!” A study conducted by the Centre for Economic Recovery, claims that in the first four days Russia had to incur expenses to the amount of $7 billion for starting this war. Approximately more than ₹500 billion. This was only for the first four days. With the continuation of the war, the same study has estimated that this cost can eventually cross $20 billion per day for Russia.

It means that each day Russia has to spend $20 billion to fight this war. This is only the direct expense borne by the Russian government. The Russian taxpayers’ money is used for fighting this war. But this is only the tip of the iceberg. Let me list out the impact of the responses from the rest of the world. 33 countries have closed off their airspace for Russian airplanes. It means that Russian aircraft aren’t allowed entry into the airspace of those countries. It includes the USA, Canada and numerous European countries.

What is the result?

According to the estimates, about 150,000 Russian tourists in these countries they were there for a visit, it is now extremely difficult for them to return. Airbus and Boeing are two major companies in the world building aircraft.

They’ve said that they would stop sending their spare parts to Russia to the Russian airlines, and would suspend their operations in Russia. In the near future, it would be very difficult for anyone to fly into Russia or to fly out from Russia. Moving on, the major clothing companies and shoe brands, like H&M, Puma, they have suspended their operations in Russia. BMW, Volkswagen, Mercedes, Jaguar, Toyota, and Honda, the major car companies, they have said that they would stop exporting their cars to Russia, and their operations in Russia, the car production, for example, were also stopped. Ikea, a major furniture company from Sweden, has closed down all its stores in Russia. Airbnb, quite useful for travellers, have now stopped their operations.

Netflix has made it impossible for Russians to sign up for new accounts. They’ve withdrawn the option. The big tech companies, Apple and Microsoft have said that they would stop selling their products in Russia. Samsung, a South Korean company, Samsung has said that it wouldn’t ship its products to Russia.

Imagine that these major multinational companies, we use their products and services in our daily lives, for the Russians, suddenly they can’t access them anymore. The oil giants, like BP and Exxon Mobil, they had similar responses too. BP has said that it would dump the 19% stake in the Russian state-owned energy company. It shows that the foreign companies are pulling out their investments from Russia. And the other foreign companies that were thinking about investing some money in Russia, have since dropped the idea.

These affect the economy of a country

and the funds that are available to it. Apart from this, the two most powerful bodies of football, FIFA and UEFA, they have decided to suspend the Russian team from all international soccer events.

Meaning that the Russian team wouldn’t participate in the FIFA World Cup. Formula 1 racing, the Grand Prix was supposed to be held in Russia, it stands cancelled now. Visa and Mastercard, two of the biggest payment processing networks in the world, millions of their credit cards are used worldwide, the two companies have decided to block Russian banks. 74% payment transactions in Russia, were processed through Visa and Mastercard. They wouldn’t work now. The international payment transfer companies Remitly and Wise, the two have also suspended their Russian operations.

Apple Pay, Google Pay and Samsung Pay. The Russian banks against whom sanctions have been issued, cannot use these platforms either. Making normal payments for their daily lives have become difficult for people. That’s why people ran to the ATMs, to withdraw cash. And you can imagine what happens when a large number of people try to withdraw cash.

I talked about it in the video on the Business Model of Banks. Banks don’t have so much cash. If everyone wants to withdraw their money from the bank, it wouldn’t be possible. This situation is known as Bank Run. This is happening in Russia now. ATMs are running out of cash and people are desperate. Seeing all this happening,

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Effect in Stock Market

the stock market of any country would crash horribly. That’s why, for a week now, the Russian stock market is closed.NEver since Russia invaded Ukraine, the Russian stock market hasn’t opened up for trade. Fearing a major crash when they open next, they’re keeping it closed as long as they can. If you don’t know much about the stock market, but you want to gain some knowledge, then I would definitely recommend Zac Hartley’s Stock Market Fundamentals class on Skillshare. It is a fascinating class.

The examples that I told you about till now, were of multinational companies that decided to suspend their operations in Russia. Companies.

How Government Imposed Sanctions on Russia

But apart from these, Governments have also taken action against Russia. Governments have declared sanctions against Russia. Broadly speaking, sanctions mean imposing a penalty or punishment on a country for violating an international law or for their aggressive behaviour. These punishments can be imposed on a country via various means. But mostly, they are economic sanctions. They target and attack the economy of a country. A major sanction imposed on Russia currently, is the SWIFT block. The Russian banks have been cut off from the SWIFT system.

What is this SWIFT system?

SWIFT stands for Society for Worldwide Interbank Financial Telecommunications. It is a payment system used internationally by more than 11,000 financial institutions. More than 200 countries used this globally. The central bank of almost every major country uses this SWIFT system. The USA, Japan, India, China, any country you can think of. But the SWIFT system doesn’t actually move the money. It merely communicates the source, amount, and destination when money is to be moved. You can think of it as SMS, or like FB Messenger of the payment transfer. It gives instructions to a bank to transfer the amount of money to the destination bank. That’s why every bank has a SWIFT code. You might already know this. The SWIFT code is 11-digits long.

The first four of the 11 characters represent the name of the bank. The next two are the country code. Seventh and eighth represent the location code,.And the last three are for the branch code where the money is to be transferred to.

For example, SBI’s main branch in Delhi has the SWIFT code SBIN IN: India’s country code. BB: the location code, and 104 is the branch code. Overall, the SWIFT code can be considered as the postcode of a bank. If you have to transfer money from SBI to an American friend’s account in an American Bank, along with their account number, you will write down the SWIFT code of the bank, and when you send the money,

SWIFT will work by communicating to the bank the fact that money is being transferred and the amount of transfer.

Since Russian banks have been cut off from SWIFT, it means that neither can Russian banks accept money from international sources nor can they send money. But the interesting thing is that, Russia isn’t the first country this has been done to. Before this, Iran was blocked from SWIFT access. It resulted in Iran losing one-third of its foreign trade. But it isn’t like Russia wasn’t prepared for this. Because when Russia invaded Crimea in 2014, lighter levels of SWIFT sanctions were imposed on Russia.

Since then, Russia worked on creating its domestic messaging system for payments. This would lead to severe effects in the short term, but in the long-term, Russia will come up with some way or the other, it will develop its payment processing system. Another major example of these sanctions is freezing the assets of Russia’s central bank.

The thing is, the central bank of every country has some foreign exchange reserves. Known as Forex Reserves. It basically means that the banks keep some money in foreign currency. The reason for maintaining forex reserves is that payments have to be made to other countries or for facilitating any global trade. Like every country, Russia’s central bank maintains reserves in US Dollar. It keeps some amount with itself in US currency. America and other countries have freezed these dollar reserves.

They have said that they wouldn’t accept the USD Russia has. That the forex it has will now be a complete waste. It amounts to $630 billion. There’s another very shocking and interesting way to impose sanctions. Putin, his friends, and Russian billionaires, own assets outside Russia.

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They have properties in foreign countries. Private airplanes and huge yachts, the US and other countries have decided that all these assets these properties and these private planes, would be seized. As a specific example, a Russian oligarch named Egor Sechin, had a superyacht worth $120 million, think of this as a uber-luxury boat, the French government has now seized it. They’ve kept the yacht with them. The news also had that a superyacht worth $600 million, owned by the Russian billionaire Usmanov, was seized by the German government. But this turned out to be false. But fearing this, the Russian billionaires, are moving their yachts to countries where the Western governments cannot seize them.

Like the Middle East or the Maldives. According to the news, at least 5 superyachts of Russian billionaires were found in the Maldives. Apart from this, any property they own in foreign countries, is being seized.

Flight bans are imposed on the Russian oligarchs. They wouldn’t be allowed to travel anywhere outside Russia. There’s a simple reason behind taking these actions, to pressurize Putin to stop this war. When these Oligarchs and Russian billionaires are targetted, people who are said to be controlling Putin, it’s possible that they can convince Putin into stopping this war. One thing that proved very hard to cut off from Russia, was oil and gas.

For European countries, one-third of their gas supply is from Russia. They import gas from Russia. And if they cut that off, the gas price in the European countries would skyrocket.

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And where would they get gas from?

Despite that, Germany suspended the approval of Nord Stream 2 Pipeline, a pipeline that’s already built, but they hadn’t begun using it.

They are trying to come up with alternatives. America said that they have large oil and gas reserves, that they are willing to send to Europe, so that Europe can cut off their dependency on Russia. But anyway, as I told you earlier,

what is the result of this?

These measures are so harsh that the Russian Ruble, Russia’s currency, is crashing so fast that you wouldn’t believe it. In 2012, $1 was equal to ₽30. At the beginning of 2022, $1 was around ₽70, but since this war began, as of the day of this recording, $1 is poised to cross ₽150. Their currency is losing its value this rapidly. The money that people had earned and saved is now losing value. There’s high inflation. People fear hyperinflation. Apart from this, people can’t use the basic payment systems.

People are trying to get cash from the banks but can’t. It has a terrible impact on the common citizens of Russia.

What can the citizens do?

People are going to supermarkets.and are buying electronic items like laptops and smartphones, because these are the assets whose value isn’t depreciating. The money they have with the banks is losing its value, but the currency is losing its value. But if they hoard the electronic items at home, they’d be sure that they wouldn’t lose value. They’ll be able to sell it in a foreign country at the same price. People started doing this. In the near future, the standard of living of an average Russian would fall. Many people would be pushed into poverty because of this. Unemployment and inflation are also rising. Knowing all this is important for those people who think that starting a war is a good thing for the country.

Russia invaded Ukraine. The war is being fought in Ukraine. But the common Russian people are paying the price with their own money.

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