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  • Can India Really Boycott Chinese Goods and Products? | Chinese Goods Boycott Impact

    India is a very calm country. It has shown resilience in every work that it has taken in hand. The government and all the diplomats keep on trying hard to maintain that image of a peaceful country. But when we say that India is peaceful and calm, we don’t mean that it just tolerates any nonsense that the world throws at it.

    In a bugle of incidents, India was hit by China in a very crucial spot. There were fatal border clashes between these two biggest countries in the world. set of events started to take place in India. A trend that was probably never thought of before. The trend was to boycott Chinese products in India. Anything or any product that was a product of China was boycotted from the market in large numbers.

    All this was done in a hope that it will affect the Chinese economy in a bad way. It was done as a reply to the Chinese backlash that happened across the border. The backlash was one of a kind and was never seen before. It happened on the land of the border of India and China.

    When this happened and people of India began to think that they will reduce the consumption of Chinese products up to a level zero, they didn’t think about the after-effects of this action. They didn’t even think if boycotting at a national level is even possible or not? They didn’t even think about the fact that, if this action is even possible? If you have ever wandered in this direction of thought, then this is the article for you. Here, in the article, we will discuss how the Chinese goods were boycotted and were even possible for a country like India to boycott products of China.

    The India-China Clash
    Is There a Substitute for China?
    Government’s Atma Nirbhar Bharat Scheme

    The India-China Clash

    This is the core issue that India faced and it is also the core of the thought of boycotting Chinese products in India. China was involved in some serious backlash on the border of India. Every citizen thought of taking revenge on China. The fastest way that they could think of, was the Gandhian way. The way of boycotting anything and everything that was manufactured in China.

    Anything and any product from China faced a backlash. People all over the country decided to boycott products from China. This was a patriot blind act but this really shows the zeal with which the citizens of India operate.

    This was the beginning of the Anti China trend which focussed on eradicating every Chinese product from the market. People in the western Indian city of Ahmedabad hurled Chinese TV sets down their balconies, while traders in the capital, Delhi, protested by burning Chinese goods.

    On the other hand, when people were hugely boycotting Chinese products, the government of India said nothing. The government of India mentioned nothing officially to the anti china sentiments that flowed in the country.

    Despite the Indian government saying nothing about the boycotting of goods from the land of China, there was something that went on in the background. In the backstages, Indian public sector undertakings and all the designated departments of the government were supposed to lessen the influence of Chinese counterparts and Chinese involvement in the processes. This is something that can be seen clearly when the accounts of the government were scrutinised.

    The railways were one of the organisations which hold a lot of tender for every work that it does. It was also the organisation that was reported to have cancelled a lot of work that was outsourced to some of the Chinese companies in the record. This really raises eyebrows in the direction of boycotting Chinese involvement in every major decision in India.

    It was also reported that the government also asked all the electronic commerce on the internet to show the country of origin, from which the products are sold. This can be a way to promote more transparency and fluency in electronic commerce but this can also be something relating to the anti china movement.

    Later in time, India took even more intense steps to stop Chinese influence and involvement in India. The government banned more than half of apps that were flagged as inappropriate in privacy and safety issues. This included very famous apps like TikTok, UC browser and the CamScanner.

    After the backlash that happened because of China, the bilateral relations were obviously bad and it was proof of bad handling of relations from the side of China. China became a culprit to the whole world and trades with India worsened at the time of the clash. It was also seen that the bilateral trade between countries was already down by as much as 15 percent. This figure was the lowest since 2018.

    It was also speculated that the Indian government will also impose more and more tax on the import of items from China. Which will eventually demotivate people of India to buy from China and look for other alternatives. This was a big question, the question of selection of alternatives apart from the land of China.

    China, as it is known to the world, is a cheap Labour country, which can manufacture things at a very low cost. This is a very big competitive advantage that China has over the world. It is populous and it provides products that are relatively cheap than most parts of the world.

    Multiple companies who are MNCs use China as a step in their supply chains all over the world. So this is a crucial question to ask. What are the alternatives to China and if India can even afford the boycott? Is it even possible to reduce products from China and still keep the growth levels up in our country? Let us discuss some reports.

    Is There a Substitute for China?

    As the Anti-Chinese sentiment flourished on the land of India, it was very few people who were thinking, “If not China then who ?” China is probably the biggest exporter to India in terms of the magnitude of imports from the nation. There are a lot of industries that are dependent on China in terms of materials that they require to carry on their respective productions.

    “At least 70% of India’s drug intermediary needs are fulfilled by China,” Sudarshan Jain, president of the Indian Pharmaceutical Alliance, told the BBC.

    Not just for India, for China too, India is a great market. Both are hugely dependent on each other but China has a competitive advantage of being at a high level of manufacturing for the world. In other words, China is the second-largest trading channel for India after the United States. This makes it really important for China to not mess up relations with India.

    Another fact is that all the imports from China account for about 12 percent of sectors such as automotive components and parts, Chemicals, pharmaceuticals and consumer electronics.

    India’s booming smartphone sector is also one of the sectors which heavily depends on cheap Chinese phones made by Oppo, Xiaomi and others with the majority of share in the local market.

    “We are not worried about finished goods. But most players across the globe import key components such as compressors from China,” says B Thiagrajan, managing director of Blue Star Limited, an Indian manufacturer of air conditioners, air purifiers and water coolers.

    He also adds that it generally takes a lot of time to set up supply chains that are local and intrinsic to a nation. For a country like India where demand is huge for every product and service, setting up a local supply chain will be a work of wonder. Especially for the products for which it is hard to find a substitute. Handicraft is a category where India imported $431 million worth of goods from China in the 2020 financial year without any significant opposite in exports.

    China is a big player in not just the market of China but also in the market of India. There can be multiple occasions when investors from China invest hugely in India. There are instances when Chinese money flew out to India into Indian startups which later turned into unicorns and are now a world-renowned brand.

    There are many companies that invest in India, such as the technological giants of Alibaba and Tencent, which are behind a lot of money that flows into the Indian economy through startup tunnels. The examples include a lot of famous and household names like Zomato, Paytm, Big basket and cab aggregator Ola.

    All these companies were once small companies and startups which grew to become multi-million dollar ventures with help from investors all over the world. One of the investors was from China and they mean serious business when it comes to money and wealth creation for both parties.

    “There have been more than 90 Chinese investments in Indian startups, most of them made over the last five years. Eighteen out of 30 Indian unicorns [tech startups valued at over $1bn] have a Chinese investor,” says Amit Bhandari, an analyst at Gateway house.

    At $6.2 billion, direct Chinese investment in India appears relatively small. But, Mr Bhandari says, restricting the likes of Alibaba from creating monopolies in the Indian market will be crucial given the “outsized impact” of these investments.

    The foreign direct investments are a great mention here. India has already amended its FDI (foreign direct investment) rules to stave off hostile takeovers of Indian companies.

    While China has accused India of contravening WTO principles, it’s unlikely to cut ice under current circumstances “as there is no way of enforcing any decision if an intercountry conflict is cited as a reason to justify the violations”, Zulfiquar Memon, managing partner at MZM Legal, said in an email interview.

    This will provide India with some freedom to reduce the dependency that it has in terms of imports from China. This is the mantra of self-reliance, which is simply the fact that you can reduce imports when you are Atma Nirbhar, or self-reliant in yourself. India has a big trade deficit that touches the number that’s nearly $50 billion.

    India Exports to China
    India Exports to China

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    Government’s Atma Nirbhar Bharat Scheme

    When everyone is talking about boycotting China and letting the bird go out of hand, it is the question of how the land will be satiated. This can be done by finding some alternatives to China which are really rare. Or this can be achieved when Bharat becomes self-reliant in its goods and produces. This is the time when the government is promoting the self-reliant scheme in India. It is promoting and motivating every initiative that will lead to making India self-reliant in some way or the other.

    So to lessen the dependence of imports among the Anti China sentiments, India is thinking of reliance. That is the reason why The government is now emphasising “Atma Nirbhar” or “self-reliance” in India. It is a term that explains some entity that is full in itself and does not need others to sustain itself. The Atma Nirbhar Bharat Yojana tries to cover five crucial things in an economy: economy, infrastructure, system, vibrant demography and demand.

    In a recent report, The daily Global Times warned that “China’s restraint is not weak”. It says it would “be extremely dangerous for India to allow anti-China groups to stir public opinion, thus escalating tensions”, and adds that the focus should instead be on “economic recovery”.

    The domestic manufacturing sector of India can substitute as much as 25% of total imports from China, according to new findings from Acuité, a rating agency. This would lead to a reduced import bill of over $8bn in a single year.

    This is a huge step towards a self-reliant India but this will introduce many retrains in the market. People would have to face some issues of supply and demand for that matter too. Mr Bhandari of Gateway House says boycotting popular Chinese apps such as TikTok might be more effective than boycotting physical goods in terms of value-added because there are multiple alternatives.

    Conclusion

    As we see that both China and India are huge storehouses of demand and supply. For India, China accounts for about 12 percent of imports in many major sectors of the country. China is the second-largest trade channel for India which is just after the United States. Thus, both the economies generate a lot of demand and supply which help both the countries in the manner they should.

    The Anti-china sentiment that flew across India was a big blow to the relations and magnitude of imports and exports. This effect was deepened when the coronavirus hit the world.

    As the covid 19 pandemic blew in the whole world, the demand for medicines and all the equipment that is needed by doctors increased a million times. This was the time when India’s imports from China rose in June and July 2020 by about 7.2%. At the same time, exports to China have contracted by 1.4% despite the demand slowdown due to COVID-19. The primary instruments needed in India were the PPE kits and all the emergency equipment required for treating the Covid 19 disasters.

    Not just this, Chinese capital has been a very good source of foreign direct investments in India and this has broadened relationships in many ways. Both the countries benefit from this, in terms of wealth creation.

    According to Invest India, there are more than 800 Chinese companies in India’s domestic market. All these factors include that India replied to China on borders a hard way. Citizens too joined the party by trying to boycott Chinese goods.

    This is impossible to completely vanish Chinese produce from India but it is good to be self-reliant. The government has probably found a sweet silver line of hope in all this time of Anti China sentiment. The idea of sustainability will improve the nation-building process and is overall a sustainable method for growth.

    FAQs

    Can India completely boycott Chinese products?

    As of now, it is not possible to completely boycott Chinese goods as India is on its way to becoming a self-reliant nation. Also, there will be huge job losses as China will push their companies to stop their production in India.

    As the products of China are somewhat cheap compared to Indian products so people prefer Chinese products.

    Is China a threat to the Indian market?

    Yes, China provides goods that are really cheap compared to Indian products which are affecting the small and medium business industry in India.

  • Are Radio Advertisements Still Effective in 2022?

    Nowadays, we visualize a variety of things, including movies, news, and purchasing products based on advertisements, but our forefathers and mothers grew up listening to the radio, where they could listen from current affairs to sports commentary. Radio broadcasting kept people informed about what was going on in the world in the nineteenth century.

    For instance, we all watch our favourite cricket teams during the world cup on television without any blink, where you could notify short ads to take place during the game’s time out, right?. That is one method of advertising a television commercial.

    Similarly, radio promotes various brands’ products and services throughout airtime or at predetermined points.

    You could wonder if radio advertising is still used to promote businesses in the modern environment of digitalized telecommunication. In this article, you will learn about the advantages of utilizing radio advertisements in your business, as well as the advantages and disadvantages of using radio advertisements as of today.

    What is Radio Advertising?
    Pros of Radio Advertising
    Cons of Radio Advertising
    Are Radio Advertisements Effective?

    What is Radio Advertising?

    Radio advertising is a type of marketing technique that promotes a product or service by using the radio – both traditional stations and satellite and internet radio – to advertise it. In many circumstances, it is a less expensive method of advertising, especially when compared to television advertising.

    A radio advertisement is very much similar to Spotify ads, where advertisers pay a set fee to the radio stations, in order for their commercials to be broadcast to their listening audiences. Brands pay radio stations for airtime to run their commercial.

    Radio advertisements lack visual appeal but advertise the product in a subtle way. The advertising cost of a radio varies from 100 Rs for 10 sec to 2000 Rs for 20 sec, The cost depends on the length of the commercial, location, time of the commercial and the popularity of the radio station. A popular radio station Radio Mirchi (98.3) charges Rs 1260 for a 10-sec ad.

    Pros of Radio Advertising

    Huge range of Audience: speedy reach out

    According to Nielsen’s Audio 2019 report, approximately 200 million listeners in the United States tune in to radio each week. Radio broadcasts cover 92 percent of the population, compared to 82 percent for television and 22 percent for podcast listeners.

    People, as we can see, prefer audio entertainment such as streaming content. Radio ads segment the audiences according to geography, demographics, backgrounds, and communities. Morning people, for example, enjoy listening to music or the news on the radio before starting their day or going to work.

    Low Cost

    One of the most significant benefits of using radio advertising for your company is that it is a low-cost promotional strategy. When compared to television or social media ads, radio advertising is less expensive in many aspects.

    In the case of television commercials, it is necessary to have a professional script, hire a production company, including audio and video content, and pay the actors/actresses for doing the commercial, all of which could cost an arm and a leg. Meanwhile, radio commercials are straightforward in terms of their criteria, which include a valid script but also proper audio transmission.

    Ubiquitous

    Radio can be found almost anyplace; for example, if you plug on Bluetooth headphones, you will be presented with a radio tune option. From commuting or gardening in the morning to rest your heads at the end of the day, you’d rather listen than watch, which is why media marketing is so prevalent. On an average weekday, the number of listeners on radio hype peaks between 5-7 a.m.

    Influential

    Radio is one of the most powerful marketing mediums for establishing trust and spreading brand awareness among targeted audiences. The tone, as well as the message in the ad, should be welcoming because it will impact more folks, and playing the advertisement according to the appropriate slot will result in more CTAs and leads.

    Call-to-Action

    While listening to radio ads, you would hear ‘Call XXXXXXXX’ or ‘SMS on XXXX@VGJO’, this is what Call-to-action(CTAs) is to drag audiences to make quick response or action. CTAs are used to engage audiences by describing your company’s mission, encouraging them to make a purchase, and directing them to your website.

    Cons of Radio Advertising

    Poor Attention

    Nowadays, as podcasts, downloaded shows, and other forms of media become more popular, radio’s audience is diminishing. This means that this type of marketing may not be appropriate for you in some circumstances. Radio advertising’s total reach has shrunk as a result of its diminishing popularity.

    Lack of Visuals

    The absence of a visual component is the most fundamental issue with radio. The radio advertiser is not allowed to exhibit or showcase the product or utilize any other type of visual appeal.

    Given the growing number of large retail outlets in cities with self-service, package identification is becoming increasingly important for many advertisers when it comes to building brand awareness. Package identification plays a significant influence in brand selection in rural markets, where literacy rates are low.

    Ephemeral Nature

    In this regard, radio resembles television. The commercial is only on the air for a limited period, with no permanent, concrete reminders. That is why, in order to optimize impact, you must cultivate originality with a focus on regularity.

    Abundance of Choices

    There are many radio stations nowadays, which means you have a lot of possibilities for advertising your product. However, this is also a benefit because listeners have a lot of options as well. It can be difficult to take everything into account in order to capture exactly what you require for a successful campaign. Remember that collaborating with media partners can help you relieve some of this stress.

    Lack of information due to 30 seconds ads.

    In comparison to other main advertising channels such as television, newspapers, and magazines, study data on the radio is minimal. Clutter has become a problem in advertising media, including radio, as a result of the increased intensity of advertising.

    Every hour, commercial channels broadcast a large number of advertisements, making it increasingly difficult for advertisements to catch and hold the attention of viewers. The accuracy of the screenplay, the accompanying sounds, and the degree of distortion all play a role.

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    Are Radio Advertisements Effective?

    A firm can gain a lot of audience by advertising on the radio. Radio broadcasting was the fastest and most suitable marketing strategy in the 1960s, before the emergence of social media, Spotify, and other digital platforms to promote your brands.

    Furthermore, radio advertisements are one of the most effective ways of reaching out to potential customers. There are some prominent radio stations, such as Radio Free Brooklyn — Brooklyn, New York, or the BBC World Service, which have their own websites.

    Yes, radio advertisement still works in some countries and benefits tons of money out of it as it is a cost-effective promotional tool. For instance, if you go to any rural/local tea stall, you would listen to the radio broadcast.

    Conclusion

    Despite all of the developments over the last ten years, AM/FM radio remains the most cost-effective advertising medium available today. It’s a low-cost technique to reach out to current and new customers. Radio is still one of the most potent advertising methods available, but to get the most out of it, you’ll need to pay attention to timing, content, and your target group. Produce a high-quality, attention-getting jingle and be ready to contact many stations if necessary to get the most bang for your buck.

    FAQs

    How effective is radio advertising compared to other methods?

    Radio is 20% more effective than other channels in terms of brand building, according to a campaign. Because radio is entirely centered on sound, it is a powerful advertising medium. If done correctly, a radio ad is cost-effective, targeted, and easy to track.

    What is radio advertising called?

    Radio advertisements are also called spots.

    Are radio advertisements worth it?

    Yes, radio advertisements are cost-effective and are one of the most effective ways to reach your potential customers.

    What are the types of radio advertising?

    The three types of radio commercials are as follows:

    • Live read
    • Sponsorship
    • Produced spot.

  • How Do Tax-Free Countries Make Money?

    It would be smooth sailing if you didn’t have to pay property taxes, income taxes, corporation taxes, sales tax, all direct and indirect taxes, and even water taxes, right? Whether you are wealthy or impoverished, you are obligated to pay the tax no matter what! Tax is a compulsory contribution towards the government.

    India has two integrated tax systems- direct and indirect tax systems, whereby direct tax relies on individuals’ income and property and indirect tax levies on goods and services incurred by an individual.

    As a taxpayer, you are required to contribute a specific percentage as tax from your income to pay for the things you have purchased as Good services Tax.

    Even if you are affluent, you have to deal with paying a high rate of taxes, and the poor would have to contribute according to the tax slab. As we all know, the tax system was established to produce revenue for initiatives aimed at boosting the country’s economy and raising the standard of living of its residents. But, what if there isn’t a tax system in place? How does the government deal with residents of lower socioeconomic status? Here we have listed out tax-free countries and how they earn a decent lifestyle without contributing to the economy.

    How Do Tax-Free Countries Earn?
    Top Countries With No Income Tax

    How Do Tax-Free Countries Earn?

    Customs & Import Duties

    Implementing tariffs on imported goods is one of the simplest and most effective ways for the tax-free government to generate revenue. Import duties, often known as customs duties, are an indirect tax placed on commodities that are brought into the country.

    This would assist the government in increasing revenue as well as regulation of commodities in the countries while also providing protection to the indigenous industry through the circulation of imported items.

    The rates of customs/import duties differ by country; for example, Kuwait charges roughly 5% in customs duty.

    There are five types of customs duties, that which a government levy on imported goods such as-

    • Basic Customs Duty
    • Countervailing Duty
    • Additional Customs Duty or Special
    • Protective Duty
    • Anti-dumping Duty

    Corporate registration and renewal fees

    In most cases, our country imposes a corporate tax on high-profiled corporate entities; however, in tax-free countries, there is no need to spend a lot of money on preliminary expenses for incorporation; instead, they ask you to meet corporate registration requirements for newly incorporated businesses under their jurisdiction.

    Aside from that, businesses should pay annual renewal costs in order to maintain their status as operational entities, which varies depending on the type of company they do. Banking, insurance, and other mutual financing corporations, for example, should pay additional annual renewal fees in order to function in such a finance industry.

    Countries such as Kuwait, Brunei, the United Arab Emirates, and others require foreign companies that have formed and are operating in their jurisdictions to pay registration and renewal fees.

    Tax Haven

    Any country or jurisdiction that gives foreign individuals and corporations reduced tax liability is known as a tax haven or offshore financial hub. To gain tax benefits, tax havens do not require enterprises or individuals to operate outside of their country.

    Tax Haven countries benefit from attracting cash to their banks and financial institutions, which may then be utilized to develop a vibrant financial industry. Individuals and businesses benefit from tax savings, which can vary from zero to low single digits in tax haven countries compared to high taxes in their own country.

    Apple, Nike, Goldman Sachs, and other major U.S. corporations such as Microsoft, IBM, General Electric, Pfizer, Exxon Mobil, Chevron, and Walmart are among the top tax haven beneficiaries. Ireland was exploited by Apple as a tax hideaway.

    If Apple had not taken advantage of tax havens, it would have repaid the US government $65.4 billion in taxes. Bermuda is used by Nike as a tax shelter. If tax haven benefits were not utilized, it would have paid $3.6 billion in taxes. Goldman Sachs holds $28.6 billion in Bermuda as a tax shelter.

    Luxembourg is often regarded as the best tax haven on the planet. The Cayman Islands currently have banking assets worth one-fifth of the world’s total banking assets of $30 trillion. The Cayman Islands have no direct taxes on residents, including property, income, and payroll taxes, in addition to no corporate tax.

    Hedge fund managers like the Cayman Islands because there is no corporate or income tax, including on interest and dividends generated on investments. Fortune 500 firms such as Pepsi, Marriott, and Wells Fargo have subsidiaries in the Cayman Islands.

    Top Tax Havens in the World:

    • Netherlands
    • Luxembourg
    • Singapore
    • Bermuda
    • The Channel Islands
    • Cayman Islands
    • Isle of Man
    • Mauritius
    • Switzerland
    • Ireland

    Departure taxes

    A departure tax is a price charged by a country when a person leaves the country, or a tax that airline passengers must pay in order to use an airport. A departure tax is levied by some countries only when a person departs by plane. The tax can be paid at the airport or by some other prepayment mechanism, or it can be charged to the airlines and included in the price of the plane ticket.

    Below is a list of nations that collect departure taxes:

    • Australia
    • Austria
    • Bangladesh
    • Brunei
    • Bermuda
    • Canada
    • Cambodia
    • China
    • Costa Rica
    • Cuba
    • Dominican Republic
    • Ecuador
    • Egypt
    • Fiji
    • Germany
    • Guyana
    • Honduras
    • Hong Kong
    • Iran
    • Ireland
    • Indonesia
    • Jamaica
    • Japan
    • Lebanon
    • Malaysia
    • Mexico
    • Palau
    • Panama
    • Peru
    • Philippines
    • Samoa
    • Saudi Arabia
    • Sri Lanka
    • Sweden
    • Thailand
    • Tunisia
    • Turkey
    • United Kingdom

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    Top Countries With No Income Tax

    Here is a list of some countries with no income tax:

    United Arab Emirates

    Individuals in the United Arab Emirates pay no income taxes, allowing them to earn tax-free wages. This Arab country is abundant in natural resources such as oil, and its free trade zones, which are open to foreign ownership and have no taxes, making it a popular investment location.

    Only international banks and oil businesses are subject to corporate tax, while all other industries are exempt. Excise duty is imposed on a small number of goods and services, however beginning in 2018, Value Added Tax will be imposed on the vast majority of goods. As is the case, Emirates Airline is one of the renowned brands in the airline industry, which literally contributed 3.044% GDP as of 2022.

    Qatar

    Individuals can generate money without paying taxes in this Arab country. Commercial activity is subject to an annual ten percent company tax on total state income. Rental income is taxed at a fixed rate of 10 percent.

    The country attracts a large number of ex-pats due to its tax-free atmosphere and sophisticated infrastructure. Some countries, such as the United States, the United Kingdom, Australia, Canada, Ireland, and South Africa, tax their citizens according to their governments’ tax laws.

    Bahamas

    This Caribbean country boasts tax-friendly legislation, making it a desirable location for foreign financial institutions and commercial interests. Personal and corporate income is not taxed in this tax haven.

    International businesses operating in the Bahamas are only subject to corporate taxes if their revenue is generated in the country. Wealth, inheritance, and capital gains are other categories that are tax-free. Residents of the country, regardless of citizenship status, can benefit from tax-free income.

    Monaco

    Monaco is well-known as a tax haven due to its personal and business tax rules. It does not levy taxes on citizens’ personal incomes. A person who has lived in Monaco for six months or longer is considered a resident and is free from paying income tax. In addition, there are no taxes on capital gains or net worth in this city-state.

    Monaco residents enjoy tax-free property ownership, however, rental homes are subject to a 1% annual tax. Monaco does not levy a business tax. Only specific sorts of businesses that make 25% or more of their profits from operations outside of the country are taxed.

    These tax rules, together with a strong commitment to financial confidentiality and data privacy, make this a very attractive place for ex-pats and foreign investors.

    Oman

    The tax regulations in this Gulf country are permissive and pro-business. It does not tax residents’ or non-residents’ personal incomes. These tax-free regulations include everything from wealth to capital gains to property. On their taxable income, businesses and enterprises must pay a 15% tax. Petroleum-related businesses, on the other hand, must pay a tax of 55%. Expats may be subject to a tax on their income.

    Bahrain

    Bahrain, which is located on the Persian Gulf, is a tax-free country that derives much of its income and government earnings from the finding of oil. Citizenship in Bahrain is tough to get, but permanent residency requires you to be retired, spend $135,000 in real estate, or invest $270,000 in a Bahraini enterprise.

    Maldives

    The Maldives has a thriving tourism economy, so there’s little justification for the island nation to collect an income tax on its citizens. Because the country does not offer a scheme for foreigners to become permanent residents, establishing citizenship or permanent residency is virtually impossible. If it did, it would necessitate the conversion of a Sunni Muslim. Moreover, Maldives is a go-to place for many travellers, in this way the government make tons of money from its tourism sector.

    Brunei

    Brunei is a small Asian country with large oil and natural gas deposits, which account for roughly half (60%) of its GDP. With its GDP rate, Brunei bestows free education and medical care to its citizens, although obtaining a permanent residency costs a lot more money than renting there. As a result, Brunei does not levy a social security tax on its residents, and individuals contribute 5% of their salaries to the state provident fund.

    Kuwait

    As we know Kuwait is one such country that has a high foreign currency rate is also one of the tax-free countries. This country’s government emphasises oil production, as it counts as a positive approach towards the Gross domestic product. individuals are not subject to any personal taxes, wealth taxes, or sales taxes in Kuwait, however international companies must pay specific fees to set up any corporation in the country.

    Cayman Islands

    The Cayman Islands, like Bermuda Island, are part of the British Overseas Territories. The government of the Cayman Islands makes money through tourism, which accounts for more than 70% of the country’s GDP. People in Cayman Island enjoy a  standard lifestyle since there are no direct taxes, property taxes, or payroll taxes, among other things.

    Nauru

    Nauru is one of the richest countries in the world, because of its abundant natural resource of phosphate. Aside from that, the government runs an Economic Citizenship Program in which citizens are required to pay a nominal fee, by this, the government could raise revenue from its citizens also.

    Saint Kitts and Nevis

    One of the regions in the West Indies, Saint Kitts and Nevis relives more on tourism and sugar production. Despite the loss of sugar production and shut down of many sugar factories, the country still withstand to have a standard of living and became one of the world’s countries with the highest debt-to-GDP ratios.

    Somalia

    Somalia is well-known for being a dangerous country due to the burden of civil conflict and territory, owing to its splintered government and political instability. Somalia earns money through livestock and telecommunications, as well as a 10% sales tax.

    Vanuatu

    Vanuatu, like India, derives its GDP from its agricultural industry, which employs roughly two-thirds of the people. Aside from fielding, Vanuatu’s economy is supported by offshore financial services, tourism, fishing, and other farming-related activities.

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    Conclusion

    People’s taxes are still one of the most essential resources that contribute to the proper operation of the government in many countries. Among such countries, these are the only ones that are tax-free.

    These countries earn money not only through customs charges, tax havens, and registration fees, but also from livestock, agriculture, fishing, investments, natural resource production, and a variety of other activities. Despite the fact that they are tax-free countries, the government allows their citizens to live a normal life.

    FAQs

    How do countries with no tax make money?

    Customs & Import Duties, Departure tax, and Corporate registration and renewal fees are some of the ways countries with no income tax make money.

    Which countries are tax-free?

    United Arab Emirates, Vanuatu, Kuwait, Maldives, Bahrain, Monaco, and Qatar are countries that have no income tax.

  • Insights on the Indian Startup Ecosystem Shared by a Venture Capitalist

    Mr. Amit Ratanpal is an alumnus of Harvard Business School with over 20 years of experience across private equity, capital markets, asset management, and investment banking with large organizations like Birla Sun Life and ICICI Group. He has also set up various domestic and global funds, through which he invested and managed ~INR 300 Cr with multiple successful exits. Leveraging his experience and strengths, he co-founded BLinC with his partner RK Rangan, to support entrepreneurs and invest in EdTech and FinTech sectors in India.

    Here is an excerpt of the interview with Mr. Amit Ratanpal, Founder & MD, BLinC Invest on Indian Startup Ecosystem.

    How was the year 2021 for you as an investor/VC?

    It was definitely a high-momentum period as private investments touched new peaks and multiple unicorns emerged throughout the year from all sectors. 2021 was a milestone year for BLinC – we had successful exits, launched our INR 100 Cr BLinC Fund II, and also made our first investment from the Fund in an InsurTech company named Vital.

    How often do you bet on the entrepreneurs and not on the ideas? And when/if you do that, what quality of the entrepreneur usually makes you do that?

    As an investor, I always strive to find the perfect balance between the quality of the promoter and the scalability of the business idea. We at BLinC work very closely with the promoters of our portfolio company, and hence, alignment with the promoters plays a key role in our investment decisions. It is always great to work with experienced and honest entrepreneurs who are good at business execution, organization development, and fundraising.

    What is a warning sign for you when investing in a startup?

    I prefer investing in startups whose key management team is execution-focused and takes a hands-on approach to the business. Another red flag is when promoters do not have a clear understanding of what problem they are trying to solve for their customers and how significant it is.

    What are some common biases you find in the Indian Startup ecosystem?

    One of the most common biases in the Indian startup ecosystem is “growth over profitability”. Businesses today adopt a high-burn-high-growth strategy without focusing on profitability. However, high growth does not necessarily lead to profitable unit economics. On the other hand, there is a general bias towards funding entrepreneurs coming from top-tier educational institutions.

    What are your views on the SharkTankIndia Episodes until now?

    I believe the show will surely motivate all the aspiring entrepreneurs, which will further amplify the existing entrepreneurship wave in the country.

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    We are seeing many startups exiting with IPO, what’s your opinion on that? How is it going to change the ecosystem?

    Exits, especially through IPOs, are a great sign of success for both entrepreneurs and investors. IPO exits also generate a good amount of liquidity for the investors, who can further invest in other startups in the ecosystem, thereby, improving the liquidity in the market. I believe this phenomenon is only going more prominent over the coming years. On the other hand, the increasing number of IPOs also serves to indicate the maturity of the investors in the market, especially with regards to the acceptance of new-age business models that are yet to turn profitable.

    More than 42 unicorns in 2021. What do you think caused this wave? Is the valuation justified according to you?

    It is the changing consumer mindset that has enabled these Unicorns to grow. Today’s consumer prefers convenience, is very open to try new products, and is less risk-averse than the consumer of the previous decade. Most of the unicorns have tapped into this changing consumer mindset to identify and solve unique problems for their customers. For example, Licious has completely changed the way consumers order meat. I believe the valuations are steep, and there is a bubble. However, like everything, good businesses always come at a higher price.

    How can we support/enable entrepreneurs in tier2 and tier 3 cities?

    Entrepreneurs in Tier 2 and Tier 3 cities suffer from lack of access to quality resources. One of the most effective ways to fill this gap is to set up incubation centers in these regions in partnership with colleges, to provide access to top quality mentorship and industry experts.

    What do you look forward to as an investor in the year 2022?

    Budget 2022 has focused significantly on leveraging technology to penetrate deeper into the Tier-2 and lower cities in India. I expect technology-led businesses to gain significant market traction and attention from the investor community, giving rise to new unicorns in 2022. At BLinC, we are looking forward to deploying our Fund across various whitespaces identified through our internal research.

    What are a few sectors you think would be hot in the upcoming year?

    Education and Financial Services sectors have been very resilient through the pandemic. Companies in these sectors have a large potential to leverage technology to drive deeper penetration, and I expect these sectors to continue growing at an accelerated rate in the upcoming year.

    One learning that you would like to share with founders who are looking to raise funds?

    It is all about execution, prioritization, and defining the short-term and the long-term focus. Early-stage startups should have a detailed understanding of their target market, competitive landscape, and the target customers. It is critical to think from the customer’s perspective and solve at least one real pain point of the customers. It is important to consistently prioritize and make efforts to achieve the product development milestones and the targets of the business plan. While pitching to the investors, it is important to give comfort to the investors around your market understanding and your execution capabilities.

  • Why Did Better.com Fired 3000 Employees and Where Did They Go Wrong?

    When you start a business, apart from ideas, funds and a proper plan, you need people to work on that plan and execute it in a perfect way and those people are your employees, they are the driving force of an organization. Your employees are your assets, they are the ones who can make or break your company because a company is as good as its employees.

    An employee’s efficiency can be found in the productivity of your business, they serve the customers along with you. Therefore, if you want to keep your business alive, you also need to take care of your employees, not only through monetary terms but from all around. Your internal public is as valuable as your external public.

    Recently, Better.Com has fired 3000 employees, without any prior notice. In this article, we will talk about the reason for firing so many employees and what did the company do wrong. So without any further ado, let’s get right into the business.

    “Employees are the key to your success with customers. Treat them well!” — Ron Kaufman

    About Better.com
    Fired 900 Employees Over Zoom Call
    The Backlash From the Public
    Termination of 3000 Employees
    Reasons for the Lay Off
    Where did Better.com Go Wrong?

    About Better.com

    Better.com is an American company that provides mortgage lending and financing-related services through its online platform. The company was founded in the year 2014 by Vishal Garg and started its first business, Better Mortgage in 2016.

    Vishal Garg, Founder and CEO of Better.com
    Vishal Garg, Founder and CEO of Better.com

    The company is the direct lender of conventional loans, jumbo loans, fixed-rate mortgages, adjustable-rate mortgages and refinancing loans. The online mortgage company is backed by Softbank.

    One of the attractive features of the company is that it does not take loan origination fees while providing loans. The headquarters of the company is situated in New York, United States of America.

    Fired 900 Employees Over Zoom Call

    Things took a wrong turn when, the digital mortgage company in 2021, on the month of December fired 900 employees over a Zoom Call. In a simple Zoom call, CEO Vishal Garg of the company announced that 900 of the employees, who were part of the Zoom call, are fired from their job.

    The sudden terminations of those employees were met with a negative response around the world. The reasons for the termination were the lack of productivity and efficiency of the employees.

    The Backlash From the Public

    The sudden move by the company and its CEO received severe backlash from the world, as no prior notice was provided to them before their termination and created a negative impression of the company in the business industry.  

    The move was done after the company received a $750 million cash infusion. Following this incident, the CEO of the company, Vishal Garg stepped down from his position and took a break after being criticized by the public for this step.

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    Termination of 3000 Employees

    After Garg’s break, he returned to his prior position. The situation grabbed the headlines and the action was criticised by general people for being extremely insensitive.

    As mentioned above, before firing the 900 employees, Better.com has done a similar deed last year as well. After just a couple of months later, on March 8, Better.com again has sacked 3000 of its employees from their position in the United States of America and India.

    The employees received their cheques in the payroll app and the way they got sacked was not at all in a good way as most of their computers got shut down in the middle of their work.

    Amanda Bullard, Better.com
    Amanda Bullard, Better.com

    Reasons for the Lay Off

    The first reason for the termination of the employees is the rise of interest value which has led to a drop in the origination value. The company let 35% of its workforce go. The company again said that efficiency is quite a big concern, so they are also laying employees off for that reason.

    Where did Better.com Go Wrong?

    The first fault is the lack of communication. Any kind of business need communication, lack of it will lead to problems only. Better.com has done the same thing twice, without having proper communication with their employees, the company is firing them. The employees were not given notice of their termination. This has created a negative impression of the company around the world.

    Employees shared their experiences on different social media platforms, which has again created a stir. Bad word of mouth has been spread regarding the company, which somehow is affecting the company’s reputation.

    Kiana Brown, Better.com
    Kiana Brown, Better.com

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    Conclusion

    As mentioned before the company is as good as its employees and the employer has every right to fire those who are not efficient enough and are not able to provide productivity. However, firing the employees must be done in such a way that it will not crush them entirely, proper communication is necessary while doing that.

    FAQs

    Why is Better.com laying off employees?

    Better.com laid off employees citing the reason efficiency is a big concern for the company.

    Who founded Better.com?

    Better.com was founded by Vishal Garg in 2014.

    When was Better.com founded?

    Better.com was founded in the year 2014 by Vishal Garg.

  • How AI is Transforming Investment Decision Making? | AI Use Cases

    The article is contributed by Andesh Bhatti –  Angel Investor & Founder of Collectcent.

    The investment management sector is witnessing what is perhaps its most volatile moment in history. The investment landscape has changed and changed for good at that.

    Investment is no longer an exclusive habit of the rich and powerful, but rather one that’s becoming more widely available as new disruptive technologies make it more and more accessible to the general public. In fact, investment opportunities can now be taken advantage of with the tap of a smartphone because of the rise in demand for digitally facilitated, easy-to-understand financial services.

    Although all these new technologies have the potential to revolutionise and improve the investment process, artificial intelligence (AI) is the one that offers the most potential. The technology encompasses a wide range of techniques for simulating human-like intelligence on a machine. For investors who have until now ventured on the precarious investment terrain relying primarily on their gut instincts and personal assessments, artificial intelligence offers a whole slew of opportunities.

    Gartner predicts that by 2025, artificial intelligence (AI) and data analytics will be used to inform more than 75% of venture capital (VC) and early-stage investor assessments.

    The Inner Voice Conundrum and Its AI Resolution

    Investors who succeed in their ventures are often believed to have a sharp intuition. That’s because their capacity to make financial decisions is based on largely qualitative data like management expertise, industry cycles, strength of research and development, and labor relations; only after that is it abetted by the quantitative data provided by the financial specifics of any business. However, it’s difficult to measure an inner voice, especially when that voice is developed largely through personal experience. And, of course, it also does not give a guarantee of success. Consequently, the role it plays in investors taking financial decisions is decreasing.

    The AI Answer

    Rising data analysis capabilities are fast directing early-stage investing strategies away from personal judgment and qualitative decision making and toward a more sophisticated quantitative process. Data from websites like LinkedIn, Crunchbase, and Glassdoor, as well as third-party data marketplaces, will be a big part of this process. They are already giving rise to sophisticated models that can better identify the feasibility, proposal, and prospective outcome of an investment. The result being that questions like when to invest, where to invest, and how much to invest are on the verge of becoming practically automatic.

    But that’s on optimizing the quantitative process alone. AI is also enabling the metrics for measuring success based on qualitative factors.

    AI technology is renowned for its capabilities of predicting future behaviour and delivering insights into client preferences. Natural language processing AI that can discern features about an individual from real-time or audio recordings can further be used to generate unique profiles, now with barely any human assistance. Based on job history, field experience, and previous business performance, AI algorithms can soon be utilised to estimate the likelihood of investment success reliant on individuals.

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    The Use Cases for AI in Investment Management

    AI can be used in three stages of the investment decision making:

    Pre-trade

    To find and analyse investment opportunities, analysts devote a large amount of time to gathering, sorting, and organising relevant data. Consequently, a substantial part of their efforts is spent on data that is later found to be of little value.

    Natural language processing (NLP) AI can handle a big part of this job, as it can take in large amounts of data from multiple sources, scan for trends and patterns, and then assign a score to each relationship it uncovers. Using these tools can significantly minimise the amount of time analysts spend in this phase, allowing them to focus on data that has the greatest potential for better discoveries.

    At the moment of truth

    Although it is up to the investor to make buying, selling, or holding choices, NLP AIs can assist in this. Relying on AI results blind sightedly is not what most investors are going to buy into. NLP can help explain the drivers of an AI decision engine and give an unbiased report that explains the decision in detail, including all the countervailing elements. This can further enable managers to deep analyse a trade and approve or reject it.

    Post-investment

    NLP engines can leverage structured data inputs to create performance attribution reports and periodic investor reviews. The technology has the potential to increase the speed, precision, and cost of creating reports based on the performance and strategy of the investments made.

    Conclusion

    The use of AI by investment managers is quick reaching a point where it could provide a competitive edge for a long time to come, by enabling better investment possibilities as well as increased operational efficiency. Needless to say, it has the potential to revolutionise the investment decision process, and by relation, the world of growth and innovation.

  • Why Did Lido Learning Shut Down Its Operations? | Lido Learning Failure

    The chances of failure of businesses in the first 10 years are 65%. It is true that not all businesses will survive till the end. In fact, more than half of new startups fail in their first year only. A business needs a lot of other things to survive apart from funds, of course, funds are the most important factor but without proper planning and execution, and the ability to adjust, even if you have a huge amount of funds, the business is bound to fail.

    In recent years, EdTech startups have created quite a stir in the world; naturally, India is not behind in this list. The pandemic has contributed to the boom of EdTech in the startup ecosystem. Several EdTech comapnies have made their name in the industry and some are on the verge to become the next big thing. Then there are other companies, who have faced defeat and have failed to survive in the industry.

    Lido Learning is an Indian EdTech company, whose failure was a great shock to the industry. In this article, we will talk about, Why Lido Learning shut down its operations while leaving employees unpaid. So, let’s get started.

    “You have to always be vigilant and make sure you’re ready to get on the bandwagon as a need for any new change arises.” – Pooja Agnihotri

    About Lido Learning
    Reasons for the Failure of Lido Learning

    About Lido Learning

    Lido Learning is an Indian EdTech company that was founded in the year 2019 by Sahil Sheth. The main motive of the company is to provide education in a revolutionary way through their online platform to Indian kids and develop the education industry.

    Sail Sheth - Lido Learning Founder
    Sail Sheth – Lido Learning Founder

    Live classes are held online through this platform for children. Apart from that, animated videos and interactive games are also included in the platform. Top teachers are provided to them and tests are conducted, to understand the progress of the students. The company is headquartered in Mumbai, India.

    The main USP of the company was that every class will consist of only 5 to 6 students so that they can get proper attention. Lido Learning was for the students of KG to Class 12.

    Reasons for the Failure of Lido Learning

    On 4th February 2022 on a very shocking note, Lido Learning shut down their operations and created a situation where 150 employees of the company’s future faced a big question mark.

    The EdTech startup was backed by some of the popular angel investors Paytm founder – Vijay Shekhar Sharma, Myntra founder – Mukesh Bansal, Shaadi.com’s founder and Shark Tank India judge – Anupam Mittal, MedLife’s founder – Ananth Narayanan, and UpGrad founder – Ronnie Screwvala.

    Some of the reasons that lead to the failure of Lido Learning are:

    Inability to Raise Funds

    Funding is one of the most, if not the most important factor in a business for its survival. Without funding, a company can never function properly. Although Lido Learning was able to raise $24 million to date for their funds from popular investors like Vijay Shekhar Sharma, and Anupam Mittal but due to the pandemic many companies backed out at the last moment who wanted to invest in the startup.

    Various deals with the companies like CureFit and ByteDance for investments got cancelled. This resulted in a shortage of funds in the company that lead to financial difficulties.

    Teachers and Employees Are Not Paid

    Employees are the backbone of any company; a company can fully function with the help of its employees. Now for that, a company needs to take care of its staff properly. The red flag arose in Lido Learning when the teachers and the employees are not given their payments.

    The teachers and the staff took to different social media platforms to complain against the company when their salaries were not paid to them.

    Juhiee Arora, Talent Acquisition Specialist
    Juhiee Arora, Talent Acquisition Specialist

    Some ex-employees also complained who quit were not given their payments as well. Nitish Banka, a lawyer at the Supreme Court also shared the same through his Linkedin post.

    Nitish Banka, Lawyer at Supreme Court
    Nitish Banka, Lawyer at Supreme Court

    As per sources, Lido Learning has already suspended all their operation and emails has been sent to the employees regarding the issue.

    Inability to Offer Refunds to the Customers

    Another main reason for the failure of this EdTech is that the customers of the company were not served properly, their demands were not met and the service was pretty bad.  

    When customers wanted to cancel the trial period, some demands were not fulfilled, refunds were not offered to them. After the cancellation of their subscriptions, this led to a bad word of mouth and also got negative feedback from the customers, thus the company lost its reputation.

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    Conclusion

    EdTech has been able to gather the attention of the world, especially after Coronavirus when people got confined in their own homes, the education system almost got disrupted. EdTech took the advantage of the situation and made a place in the startup ecosystem. Lido Learning was going good at first but the above reasons have led to its shut down as it was not able to adapt after the pandemic.

    FAQs

    Is Lido Learning shutting down?

    The founder, Sahil Sheth has announced that there is no fund left for the business so Lido Learning will shut down its operations in Feb 2022.

    Who is the founder of Lido Learning?

    Sahil Sheth is the founder of Lido Learning who founded the company in 2019.

    How old is Lido learning?

    Lido Learning was founded in 2019 by Sahil Sheth.

    Who invested in Lido?

    Paytm founder, Vijay Shekhar Sharma, CultFit founder, Mukesh Bansal, Shaadi.com’s founder and Shark Tank India judge, Anupam Mittal, MedLife’s founder, Ananth Narayanan were some of the investors of Lido Learning.

  • Reasons Why Abof Failed to Compete Against Other Fashion Brands | Abof Failure Case Study

    The primary factor that drives any startup is not just the idea but also the ways in which the novelties are pitched in based on the market trends. Keeping that in mind it is also important to look through the various ways in which start-ups have come up and gone through the test of time by adapting and improvising their key ideas depending on market requirements.

    This article will be looking at an e-commerce platform that had to shut down due to various reasons. The highlight here is that they didn’t stop there. Today they have come back in a new form announcing their presence in relevant areas. Abof.com by Aditya Birla Group is this e-commerce website that deserves careful scrutiny of its inception, downfall and resurrection.

    Abof.com was launched in 2015 by the famous billionaire Aditya Birla. Abof stands for All About Fashion and was considered to be a significant competitor along with Amazon and Flipkart in the fashion industry. They had consolidated its branded apparel business under the label of the lifestyle retailer Pantaloons Fashion and Retail India Ltd. However a company with a strong foundation in all sense of the word had to wind up its operations and transactions by the end of 2018.

    Abof.com was the second e-commerce venture by the Aditya Birla Group that had to shut down. The first one was Trendin.com. The following are the primary reasons that led to the closing down of the firm.

    Reasons Why Abof Failed
    Efforts Taken by Abof to Revive the Brand

    Reasons Why Abof Failed

    Inability to Manage the Competition

    When Abof was launched, they had to compete with e-commerce giants like Flipkart which owned Myntra and Jabong along with Amazon and Snapdeal. As far as this matter is concerned, the company should have ideally analysed the marketing patterns of its competitors so as to respond in such a way that would help themselves improve their businesses. However, analysts who observed the functioning of Abof says that the firm failed in marketing their products efficiently.

    While companies like Myntra, Amazon, Jabong focused heavily on social media ads, re-marketing in addition to tying up with Google, Abof did not engage in these methods actively. The opportunities for the company to channelise a huge amount of money for the purpose was possible considering the fact that they were backed up by a giant like Birla.

    Failed Campaigns and Price Disparities

    In an already complicated world, it is extremely important to be the best and stand out for better sales. As far as the customers are concerned, they will go for the best deal at the best price.

    Considering the similarity in the options given by all the competitors in the fashion industry, one of the main things that ensure the business is by making sure that the customer profit ratio is high. At the same time, it is also important to ensure the standing of the company. However, Abof approached the competitive market in a very different manner.

    It can be seen that the company didn’t follow the basic pattern wherein new ventures do the business with less profit margin at least in the initial years. The ambition to earn billions within a short span of time fell upon them in a negative manner.

    When Abof launched their site, they made it extremely clear that they will not give any kind of discount. They also added that their “target consumers are not the guy who is looking for a deal”. One thing that they forgot was that when it comes to daily wear apparel that is available in multiple places, everybody will go for the cheapest one. By the time the firm realised its mistake and introduced more than 70% off on their products, it was too late.

    Lack of Options

    One of the main intentions of this e-commerce website was to sell their own brands amidst a few other brands. In such a scenario it is very important to have a clear-cut statement that attracts customers to their particular brand instead of others.

    While pitching a new brand amidst others that are available in multiple places it is also necessary to hold the customers with them without going to another platform to avail themselves of a better deal. Such a complex intention of the company along with its stringent rules that did not give enough discounts like others further eroded the credibility and site traffic of Abof.

    The situation was further aggravated by the wide expanse of offers and varieties provided by its competitors like Amazon and Flipkart in their websites. The fewer brands and options in Abof spoke for its own downfall.

    Efforts Taken by Abof to Revive the Brand

    It did not take much time for Aditya Birla Group to recognise that the soil under their feet was flowing away. Although they had refused to provide any discounts, they had to offer up to 70% off on the products that were available on the portal.

    The company also tried to enhance their marketing game by publicising its 3D trial room to the customers via TVC. The campaign was supported in selected cities like Lucknow, Chandigarh, Patna, Jaipur. They had also tied up with popular shows. However, the campaign didn’t reach the audience as expected.

    As it became more difficult for the firm to continue, the HR director at Aditya Birla group said that considering the vastness of the e-commerce business it is a struggle to make money from the venture for some time. He also added that it doesn’t seem logical to continue when it is very clear that things are not right. December 31, 2017, was the last day of its operations.

    Even when it shut down, Abof gave a good example to the firms around. They did not abandon their employees. More than 200 of them were absorbed to other wings of the Aditya Birla Group. They were also given the option to quit along with payroll for 4 1/2 months.

    The company’s way of taking responsibility for the future of the employees who trusted the vision of the venture showed the commitment of the company towards its employers. Through effective communication and handling of the entire process, the shutdown was hassle-free which is usually a rare sight to see. They were are also not ready to stop learning.

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    Conclusion

    Today Aditya Birla Fashion and Retail Ltd have announced the launch of Abof which will now be available in other e-commerce platforms like Flipkart and Myntra through third-party sellers. By utilising the vast network of Flipkart and Myntra they are all set to expand their reach across the subcontinent and thereby introduce customers to a wide range of collections. It is hoped that the company will make a strong comeback by learning from its mistakes.

    FAQ

    Why did ABOF fail?

    Abof refused to provide any discounts on its products, Its marketing strategy failed to attract customers and it had fewer options than its competitors.

    Who owns ABOF?

    Aditya Birla Group launched fashion retail site Abof in 2015

  • Future of Freelancing in India and Important Freelancing Statistics

    With rising levels of unemployment, employee dissatisfaction, job-hopping and entrepreneurship due to COVID-19, the Indian economy today is ascending towards a rather unpredictable change. Thus, freelancing is the new work culture that has slowly crept into the Indian mindset owing to its universal versatility and independent lifestyle.

    The future of freelancing in India looks promising. Many individuals are choosing to work according to their preference like where they want, when they want and the work of their choice. By 2025, freelancing statistics is estimated to grow to $20 to 30 million In India.

    Freelancing in India has already become popular enough to catch hold of a large segment of job-seeking, independent professionals looking forward to learning new ideas and exploring more work genres. There is a huge scope of freelancing India as it witnesses remarkable growth, giving a new voice to the modern, hard-working youth from different aspects of Indian society.

    But, is it here to stay? In this article, we have analyzed the present and future of freelancing in India, and some important facts and figures you would love to know about the freelancing sector –

    Interesting Statistics about the Indian Freelancing Sector
    Current Trends in the Indian Freelancing Sector
    How much does a Freelancer earn in India?
    Will AI Pose a Threat for Freelancers?
    Expert Opinion on Future of Freelancing in India

    Interesting Statistics about the Indian Freelancing Sector

    The number of freelancers in India is a whopping 15 million individuals, working independently in a wide array of sectors like IT and programming, finance, sales and marketing, designing, animation, videography, content and academic writing etc. Reports hold that one-in-four freelancers in the world are from India.

    While a major part of freelancers’ income comes from foreign sources, mostly Europe and the US, the rising culture of startups and entrepreneurship in India, contributes handsomely as well when it comes to measuring the pay scales.

    Currently, there are 15 million freelancers in India. as per some reports, the number of freelancers in India will grow to a whopping $20-30 billion by 2025.

    Since the startup culture is here to stay for the long haul (owing to several government schemes as well) the freelancing business, as the experts predict, will only see more and more partakers leaving their corporate jobs behind and joining the ranks.

    Freelancers are in high demand and companies right from startups to top-notch corporate are now reaching out to freelancers to seek their expertise in various projects and initiatives. If the momentum came from the startup revolution, the result will be a boom in the freelancing industry in India. However, the payment received by freelancers in India is less than that of their counterparts in other parts of the world.

    According to the 2020 Freelancer Income Report by Payoneer, a global digital payments platform, Indian freelancers work for an average hourly rate of $18, while globally the average hourly rate is $21.

    Freelancers are consistently gaining prominence and the perception that they are an inferior crop of professionals is gradually changing as even people with top educational and professional backgrounds are quitting full-time employment to provide their skills and services as independent consultants.

    Fastest Growing Freelance Market
    Fastest Growing Freelance Market

    There was a time when freelancing was not seen as a main source of income. It was rather viewed as something that students or housewives do to earn some extra money. However, owing to many reasons, freelancing is fast becoming popular among the youth both in India and globally.

    Some of the major reasons for the growing popularity of freelancing are flexibility of working as per one’s own convenience, higher income and availability of a wide range of tasks to choose from. Let’s have a look at some of the current trends in the Indian freelancing industry.

    1. Increasing Number of Corporate Professionals in India are Turning Freelancers

    The freelancing business’s overwhelming success has paved the way for a new trend and widened the scope of its popularity in future. Today, more and more corporate professionals and graduates of some of the country’s top colleges (read, IITs, NITs, and IIMs) are keen on leaving their jobs to opt for a more relaxed lifestyle, a far cry from the 9 to 5 schedule.

    These highly skilled individuals, talented beyond doubt, and brimming with curiosity to learn more and expand their professional barricades, have formed a whole new category of highly skilled, well-experienced corporate freelancers who offer their services as independent contractors.

    2. Increase in Number of Part-time Freelancers

    In the present scenario, the moonlighters or the part-time freelancers occupy a fair share as well. Freelancing provides a welcome break from the monotony and the opportunity to learn more. Who can refuse?

    So many professionals have chosen to freelance as part-time work. You can depend on projects for every month. So, it is far better if you continue this with your full-time job.

    3. A large Number of Indian Women are Becoming Freelancers

    The freelancing business in India has also resulted in the rise of the woman workforce. These empowered, confident women workers break the barriers of societal norms by working online from home. The popularity among the woman, who cannot leave their homes out of personal reasons, hence, is obvious and here to stay.

    4. Increasing Number of Freelancers in India

    Freelancers in India have been boosting the growth of startups in a big way. As a new company, startups are usually not in a position to hire a highly-skilled workforce permanently, which is why they are looking at the massive talent pool available in the freelance sector.

    Such a strategy while being cost-effective also fulfils the need for a specific skill-set not available internally. While fostering the startup economy in the country, freelancers today are also increasingly providing their expertise to top-drawer corporates as business environments and needs evolve.

    5. Indians’ Perspective towards Freelancing is Changing

    There used to be an image when the freelancing business was frowned upon by the elders. The work culture, after all, lacks the stability and security that come with a regular job. Of course, there came family restrictions as well, with many branding freelancing as ‘not a real job‘ and not everyone wants an erratic paycheck for their son. Not after all the money spent on college.

    Fast forward to a decade, the scenario shows some positive signs of a change. From the increasing number of freelancers (look at the stats!) to the gaining acceptance of refusing the placement offers for a startup. The change is already here, as well as social acceptance. Are you a part of it?

    How much does a Freelancer earn in India?

    Freelancing is the best option for workaholics because there is no limit on how much money you can make. The more services you provide the more your earnings will be. Only because of this advantage many people are switching their careers from full-time jobs to freelancing. This is why the freelancing business will grow more and more in future. Because nowadays people are so talented and have the hunger to grow and become rich.

    According to a report published in 2018 by digital payment company Paypal, freelancers in India earn 19 lakh per annum on average. In the survey conducted by Paypal on 500 freelancers, it found that 23% of the freelancers earn up to Rs 60 lakh annually, 13 % earn 10-15 lakhs per annum, 8% earn 7.5-10 lakhs/annum, while the rest 23% earn an annual income of Rs 5 lakh.

    Will AI Pose a Threat for Freelancers?

    Several reports claim that soon many jobs including freelancing jobs will be taken over by AI (Artificial Intelligence). AI is the next boom and even many businesses already implemented AI. And as it is growing it has already become a threat for the professionals but freelancing will be less impacted. Why? Because there are so many things out there that AI can’t do and maybe will not be able to do in future also.

    As digital marketing expert Larry Alton says, “Growth in AI isn’t going to replace web developers, accountants, lawyers, and consultants. If anything, it’s going to assist them and make them more efficient and profitable”

    Freelancers have the opportunity to connect with more and more people which AI can’t do. Also, AI can’t learn various creativity each person has. No one can communicate better than humans. So, there are so many ways that the freelancing business can grow in future and will be less impacted by AI.

    Expert Opinion on Future of Freelancing in India

    Steven Reubenstone, Founder of Collaborizm, an online collaborative community-based in Miami, US, says that 75 per cent of the 115,000 individuals on the platform are freelancing from India.

    The motivation comes from the chance to find ‘new cool projects to work on, and enhance their credentials’.

    According to a PwC report, incoming times big organizations will prefer to have fewer in-house employees and more freelancers in their workforce.

    Today, Freelancing look like a brighter landscape that will continue to light the future. As more and more generations join in and unemployment grows, it comes as no surprise that even experts regard that this work culture is here to stay at least for the next few years.

    Though the foreign payment options are still scarce and highly inefficient and though there are no rules yet to protect the right of this workforce, freelancing has found acceptance and the future, albeit unpredictable, looks positive.

    According to some research, there are many challenges as well as opportunities that the freelancing industry can bring in the future. But if businesses and organizations give more importance to hiring freelancers and develop or integrate systems that encourage freelancing then it will help both businesses and freelancers. But freelancers must learn new skills to compete in this competitive market where new freelancers, as well as new technologies, are coming every day.

    Conclusion

    A computer or mobile device, as well as a reliable internet connection, are required. You’ll figure out how to complete the remaining tasks on your own. However, you can only do so if you have a winning attitude. Don’t think of freelancing as a passing fancy. Make a long-term plan, set goals for yourself, and work toward reaching them.

    Even the sky is not the limit when it comes to freelancing.

    FAQ

    How many freelancers are there in India?

    There are nearly 15 million freelancers in India.

    How much do freelancers earn in India?

    An average freelancer in India earns approximately â‚č4.2 lakhs annually.

    What is the rank of India in freelancing?

    India has the 7th largest freelance workforce globally.