Government could do well to frontload its scheduled FY22 capital investment in 1QFY22 in order to reduce negative economic impact of Covid-19’s second wave.
India’s present and rapid increase of Covid-19 cases are posing an urgent threat to the country’s FY22 growth aspirations. If this second wave is not brought under control swiftly, the economic issues will become even more difficult. The more time the second wave lasts, the more severe the economic effect on India will be. There will be a race between the rate of COVID-19 vaccination and the spread of the virus.
The economic impact of the second wave
Both the RBI and the IMF updated their estimations of India’s growth forecasts for FY22 in the first week of April 2021. The RBI has forecasted 10.5 % real GDP growth for India, whereas the IMF has amended its prior projection upwards, predicting 12.5 % growth, which is 2% more than the RBI’s prediction. Following the decline of 8 % in FY22, these exceptionally high real GDP growth rates are mostly due to a substantial base effect. India’s forecast growth rate of 12.5 % in FY22 is significantly greater than that of other major economies across the world, with China expected to expand at 8.4%.
If the current second wave of COVID-19 is not brought under control shortly, their growth forecasts may be seriously jeopardized. Much will be determined by the rate at which India’s population is vaccinated as a whole. Meanwhile, owing to the devastating effects that COVID – 19’s second wave is now having on the Indian economy, it appears that the planned recovery in 1QFY22 may be slowed.
In March 2021, the PMI manufacturing index fell to a seven-month low of 55.4. In March 2021, PMI services dipped to 54.6, down from 55.3 in February 2021. In February 2021, IIP shrank by 3.6 % marking the second consecutive decrease in the last quarter of FY21. In February 2021, core IIP decreased by 4.6 % compared to a gain of 0.9 % in January 2021. CPI inflation reached 5.5 % in March 2021, reflecting supply-side restrictions and an increase in global petroleum and commodity prices, while WPI inflation reached a 96 month high of 7.4.%.
The unfavorable impact of COVID-19’s second wave is expected to challenge the RBI’s predicted GDP growth of 26.2 % for 1QFY22 which is predicated on a strong base effect. The upcoming events are going to have a major impact on numbers since the work of the businesses is dependent on them. In general, the impact of news on currencies in Forex since it defines the future activities and decisions on buying or selling is dependent on them, thus the currency rate changes. For India, in this economic crisis, it is very important to keep the efficient rate with the USD and manage the deterring factor as efficiently as possible. According to some estimates, this influence would reduce predicted growth by 5-7 %. This might mean that the annual growth rate for FY22 may have to be cut down by around 1%. From a sectoral standpoint, the same industries are expected to suffer more in the second wave than they did in the first.
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Construction, trade, hotel, transportation, and related services are among these. Fiscal policy, which directly affects the public administration, defense, and other services sector, can play a critical role in reducing the negative effects. It may be prudent for the federal and state government to frontload their projected expenditure increase, particularly in the infrastructure sectors, in order to maintain the level of overall demand. Any increase in the federal government’s already planned fiscal deficit of 6.8 % of GDP in FY22 may not be necessary at this time. However, the situation may be regularly evaluated and if private demand is found to be weakening as a result of covid 19 ‘s influence, a more active role for government involvement may become inevitable.
Lessons from the first wave
As a result of the effects of COVID-19 FY21, India’s growth slowed as did that of all other nations. When the scale of this erosion is compared to a country’s long-term growth record, India’s situation does not appear to be as dire as it does when the size of actual GDP shrinkage is compared. In reality, India is merely the second-largest country behind China.
Mining and quarrying, building and trade, transportation, and other sectors are the weakest performers when it comes to intra-sectoral effects on production growth in India. Apart from exports, gross capital formation and private final consumption spending were shown to be the most sensitive demand sectors of GDP. And in terms of policy interventions, India’s fiscal and monetary policies appear to be less active than those of other major world economies. Given that the second wave of Covid-19 will have the greatest influence on economic performance in 1QFY22, it may be advantageous to frontload projected capital expenditures for FY22 in this quarter.
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India’s future economic strategy may benefit from some of the lessons learned. First, a decentralized and diffused growth strategy, in which industrial activities are encouraged to settle outside of major urbanized centers, such as is smaller towns, the peripheries of major urban centers, and corridors connecting two or more major urban centers may provide a more robust development profile in dealing with the pandemics.
Second, the Atmanirbhar Bharat concept looks to be well-timed, since reducing reliance on global supply chains in pandemic conditions may be advantageous for avoiding economic harm. Third, expanding India’s capacity to provide health service as part of overall infrastructure growth should be prioritized to strengthen the country’s ability to deal with COVID-19 type health shocks.
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Summing It Up
Finally, to sum up, while India’s policy makers’ attention is currently concentrated on dealing with Covid-19 in general and its second wave in particular, it would be beneficial to put India’s medium to long-term economic prospects and potential at the forefront of economic policy. MOst inter-country interactions are anticipated to shift dramatically in the post-covid 19 economic world. All efforts should be taken to attract foreign investments to India so that the country can play a significant role in global supply chains. India will have to compete for investment with China, the United States, and the European Union. In this context, India’s CIT reforms, which aim to make the CIT rate more competitive, would be crucial.
Both the central and state governments, as well as their public sector firms and the private sector, are expected to participate in India’s plan. If necessary, the central government may retain its fiscal deficit considerably over the existing FRBM threshold of 3% of GDP. According to the Reserve Bank of India, the total budget deficit of the federal and state governments is expected to be 10.8 %. According to early indicators, the federal government’s tax receipts in FY21 may be higher than the amended projection. Given the better revenue performance prospects, the central government could do well to frontload its scheduled FY22 capital investment in 1QFY22 in order to reduce the negative economic impact of Covid-19’s second wave.
Manvendra Chaudhary, with over 5 years of professional experience as CEO of Unique News and Megalent Marketing, shares insights on life, business, and health for your success.
Merchant services partner programs are a popular way for businesses to expand their reach and increase revenue. These programs allow merchants to offer a wider range of payment options to their customers, including credit and debit cards, electronic checks, and other forms of payment. By partnering with a merchant services provider, businesses can take advantage of advanced payment processing technology and gain access to a range of tools and resources to help them grow their business.
One of the key benefits of a merchant services partner program is the ability to offer customers a more convenient and efficient payment experience. With the rise of digital payments, consumers are increasingly looking for ways to pay using their preferred method, whether that’s a credit card, mobile wallet, or other payment option. By partnering with a merchant services provider, businesses can offer a wider range of payment options to their customers, which can help to increase customer satisfaction and loyalty.
Another benefit of a merchant services partner program is the ability to access advanced payment processing technology. Many merchant services providers offer cutting-edge payment processing solutions that can help businesses streamline their payment operations and reduce costs. From mobile payments to online invoicing and recurring billing, these solutions can help businesses stay ahead of the curve and provide a seamless payment experience to their customers.
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Overview of Merchant Services Partner Programs
Definition and Purpose
Merchant services partner programs are designed to help businesses grow by providing them with access to a range of payment processing solutions. These programs allow businesses to offer their customers a variety of payment options, including credit and debit cards, mobile payments, and e-commerce solutions. In exchange for offering these services, businesses receive a percentage of the revenue generated by each transaction.
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Partner programs are typically offered by payment processors, banks, and other financial institutions. They are designed to help businesses of all sizes, from small startups to large corporations, to increase their revenue and improve their customer experience.
Types of Partner Programs
There are several different types of merchant services partner programs available, each with its own set of benefits and requirements. Some of the most common types of programs include referral programs, reseller programs, and ISO programs.
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Referral programs allow businesses to refer their customers to a payment processor in exchange for a commission on each transaction. Reseller programs, on the other hand, allow businesses to resell payment processing services to their customers under their own brand name. ISO programs are designed for more established businesses and allow them to become independent sales organizations, offering payment processing services to other businesses.
Key Benefits for Merchants
Partner programs offer a number of benefits to businesses, including access to a wider range of payment processing solutions, increased revenue, and improved customer experience. By offering a variety of payment options, businesses can attract more customers and increase their sales. Additionally, partner programs often offer marketing and promotional support to help businesses grow their customer base.
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Partner programs also offer businesses the ability to generate passive income through commissions on each transaction. This can help businesses increase their revenue without having to invest in additional resources or infrastructure. Finally, partner programs can help businesses improve their customer experience by offering fast, secure, and convenient payment processing solutions.
Overall, merchant services partner programs are a valuable tool for businesses looking to grow and expand their operations. By partnering with a payment processor or financial institution, businesses can access a wider range of payment processing solutions and increase their revenue while improving their customer experience.
Implementing a Partner Program
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Launching a merchant services partner program can help businesses expand their reach and increase revenue. However, implementing a successful program requires careful planning and execution. In this section, we will discuss the steps to launch a partner program, best practices for success, and how to measure its effectiveness.
Steps to Launch
Launching a partner program involves several key steps. The first step is to define the program’s objectives and target audience. This will help businesses determine what type of partners they want to recruit and what benefits they will offer.
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Next, businesses should create a partner agreement that outlines the terms and conditions of the program. This agreement should include details such as commission rates, payment terms, and performance expectations.
Once the agreement is in place, businesses can begin recruiting partners. This can be done through various channels such as social media, email marketing, and referrals. It’s important to provide potential partners with clear information about the program’s benefits and expectations.
After recruiting partners, businesses should provide them with the necessary training and resources to effectively promote and sell their products or services. This may include training on product features, sales techniques, and marketing materials.
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Best Practices
To ensure the success of a partner program, businesses should follow best practices. This includes setting clear expectations and providing regular communication and support to partners. It’s also important to establish a system for tracking partner performance and providing feedback.
Another best practice is to offer incentives and rewards for high-performing partners. This can include bonuses, recognition, and exclusive access to resources or events.
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Finally, businesses should continuously evaluate and improve their partner program. This may involve gathering feedback from partners, analyzing performance data, and making adjustments to the program as needed.
Measuring Success
Measuring the success of a partner program is essential to determining its effectiveness and identifying areas for improvement. Businesses can track key metrics such as partner revenue, number of new customers acquired, and partner satisfaction.
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It’s also important to gather feedback from partners through surveys or other means. This can provide valuable insights into what is working well and what needs to be improved.
By following these steps, best practices, and measurement strategies, businesses can successfully launch and maintain a successful merchant services partner program.
The founder and CEO of Bombay Shaving Company Shantanu Deshpande took to LinkedIn and shared a picture from the topper’s newspaper advertisement.
In the caption, he wrote
“It was shocking to see the amount of hate targeted at a teenage girl who had topped an exam because of her facial hair. Our simple message to this amazing young woman with such a bright future. Love to see my team ooze class. No opportunistic sales, QR codes, nothing. Just a heartfelt message to a fellow Bae.”
The caption further reads,
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“Dear Prachi, they’re trolling your hair today, they’ll applaud your AIR tomorrow.”
It was the advertisement’s closing statement that fueled controversy and drew backlash from the public.
It stated,
“We hope you never get bullied into using our razor.”
Netizens’ Reactions
The post went viral within hours of its posting. Many netizens called it “disgusting” and “absurd.”
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One user wrote,
“This is a collective failure of your team. Hope they read each and every comment and reflect. Did no one in the team notice this problem? How disconnected are they from reality? This will leave a deeper scar on the girl than anything else, and I will always remember your brand for being an opportunist.”
While another commented, “Insensitive.”
“This is terrible, a huge mistake you made. This is bullying this woman on another, bigger level,”
wrote another.
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“Classless and in poor taste… You don’t deserve more attention than this,”
one commented.
What the CEO Has to Say?
Shantanu Deshpande described his caption as a small token of support for Prachi, and thus defended the ad.
His efforts to clear the air were in vain, as many netizens still found the company’s response via the ad lacking sensitivity.
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Bombay Shaving Company’s intention was to extend support for the topper. However, it ultimately led to more criticism and enhanced controversy.
Recently, the class 10th and 12th results were published by the Uttar Pradesh Madhyamik Shiksha Parishad. Prachi Nigam scored 591/600 marks and topped Class 10. She revealed that her aim is to crack the IIT-JEE and become an engineer.
Gerber and Perrigo Face New Lawsuit Over ‘Store-Brand’ Infant Formula Pricing; All Pending Toxic Baby Food Cases Consolidated into New Class Action MDL
Infant formula makers Gerber and Perrigo have been hit with a class-action lawsuit, which accuses the companies of artificially creating a shortage and jacking up prices for “store-brand” formula sold at Walmart, Walgreens, and other retailers.
The lawsuit was filed on Monday in federal court in Alexandria, Virginia. It accuses Perrigo of violating antitrust laws by collaborating with Gerber to prevent competitors from entering the market for store-brand formula.
Perrigo, one of the nation’s largest suppliers of store-brand formula, sells its products under retail labels at prices lower than similar branded products. However, the lawsuit alleges that Gerber, by granting Perrigo the first right of refusal to Gerber’s excess formula supply, which could have been sold to other competitors, is engaging in practices that stifle competition.
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The lawsuit claims that through this arrangement, Gerber agreed to keep its excess formula out of the store-brand market, thereby gaining a share of Perrigo’s profits. The lawsuit was filed by four residents of California, Illinois, Michigan, and Pennsylvania, who will represent millions of customers who have purchased store-brand baby formula. The lawsuit does not name formula retailers as defendants. It asks the court to intervene and end the anticompetitive deals between Perrigo and Gerber and seeks more than $5 million in monetary damages.
This lawsuit is similar to another case filed in Brooklyn federal court by a potential store-brand competitor, P&L Development. Gerber and Perrigo requested the dismissal of that case, which was denied by the judge in February. The companies involved in the lawsuit claimed they compete fairly with other infant formula manufacturers, including those of store-brand formulas. The lawsuit also cited the squeezing out of P&L Development from the store-brand market, which has led to higher prices.
Gerber is also facing numerous lawsuits accusing its brands of baby food of containing dangerously high levels of toxic heavy metals, such as lead, arsenic, and mercury. These heavy metals are extremely toxic, even for adults, and can have catastrophic consequences on developing children, leading to health complications and neurological damage. Conditions such as ADHD and autism may be linked to consuming these toxic baby foods.
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On April 11, 2024, all the lawsuits pertaining to toxic baby foods, which had been filed at different times in various courts, were consolidated into a new class action MDL in the Northern District of California and assigned to Judge Jacqueline Scott Corley. Besides Gerber, other baby food manufacturers like Beech-Nut and Campbell Soup Co. have also been named as defendants.
