Economy Current Affairs - 2020
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On January 6, 2020, the World Bank released its study on how FDI flows are affected in the world due to automation. The study concluded that automation will certainly disrupt the flow of capital from rich countries to poor countries. On the other hand, the poor countries can gain from automation if adopted at the right time.
The study has used data of FDI (Foreign Direct Investment) and industrial robot usages between 2004 and 2015. It reports that during this period, High Income Countries (HIC) saw the highest FDI outflows. The flow of the FDI were measured in terms of project announcements in middle income countries (MIC) and low-income countries (LIC).
The MIC and LIC witnessed highest FDI inflows during the period of project announcements. Later, it reached a saturation level and began to decline!
Throughout the study the automation processes were measured in terms of number robots employed per 1000 employees.
The study also reports that of all the sectors, automation was maximum in electronic and automobile industries and least in textiles.
The study found that the FDI flows from a HIC to a LIC reduced as automation increased. For a 10% increase of automation in a HIC, the flow of FDIs into LMIC increased by 5.5%. After a certain threshold the inflows saturated and, in some cases, started to decline as well!
Tags: Automation • Economy • Employment • FDI • Foreign investments
On December 20, 2019, PM Modi addressed the Associated Chambers of Commerce and Industry in New Delhi. The event was organized to commemorate 100 years of ASSOCHAM. The event was organized under the theme
Theme: New India Aspiring for 5 trillion USD
The Associated Chambers of Commerce and Industry of India (ASSOCHAM) is the apex trade association of India. The goal of the organization is to promote domestic and international trade. It is one of the oldest organizations in the country that was established in 1921. The organization is located in Kolkata, Bengaluru and Ahmedabad.
The GoI authorizes and has given the power for ASSOCHAM to issue certificates of origin, recommend business visa and certify commercial invoices.
Highlights of PM Modi’s address at the event
In order to achieve the target of 5 trillion USD economy, it is essential to increase digital transactions of GST and also increase Aadhar linked payments to DBT.
Other Top economies in the world
While India is aspiring to become a 5 trillion USD economy, there are several countries in the world who have already achieved the target. According to IMF’s World Economic Outlook Database, 2019, China tops the list as 25.27 trillion USD economy, followed by US (20.49 trillion USD), Japan, Germany, UK, India (2.72 trillion USD).