The Indian Middle Class Trap

The Indian middle class is the hardest-working group in the country. This class wakes up early, studies sincerely, follows rules, pays taxes, and dreams quietly. And yet, when it comes to wealth, the Indian middle class remains stuck - generation after generation. 

The problem is not because to a lack of intelligence or any effort. It is because of how safety and fear are deeply embedded in the middle-class thinking. 

As India moves towards 2026 and beyond, this mindset is becoming the biggest bottleneck of wealth creation for the Indian middle class. 

The Middle Class Definition

For most middle-class families, success means:

• A Secure Job.
• Fixed monthly salary.
• EMI-backed house.
• Respectable social image.
• Zero Risk and zero instability. 

This model worked in the 1970s-2000s of India. But India 2026 will be a different country. (Why?)

• Faster technology cycles.
• Shorter skill lifespans.
• Exploding opportunities outside traditional paths. 

What I observe, and that could be the tragedy also:

The middle class is preparing for an India that no longer exist based on their early model of definitions.

As per the data sources of Live Mint- There is no universally agreed income band for ''middle class'' in India. But common definitions place annual household earnings between Rs. 5 Lakh - Rs. 30 Lakh. Around 31% of households fall in this range. 

Yet 88% of urban indians identify as middle class regardless of their actual income - underscoring how identity outweighs economic reality. 

Safety Net of the Indian Middle Class

In the middle-class families, we had often heard:

• Don't take risks. (Risk Mat Lo)
• Keep doing what you are doing. (Jo chal raha hai chalne do)
• At least, you are getting paid. (Salary to aa rhi hai na!)

Safety is not wrong, but an obsession with safety is expensive. This type of thinking creates the ''Career Stagnation''. People will be stuck in underpaid jobs, unfulfilling roles, and low-growth sectors. It is not because they can't do better, but because uncertainty feels scarier than underachievement. 

This fear in the Indian middle class is often inherited. Parents who struggled financially will transfer these traits:

• Fear of instability.
• Fear of failure.
• Fear of ''log kya kahenge''(What people will say).

So, the next generation learn these things very early. That's why they don't aim too high, don't fall and don't experiment. This mindset of the population is highly educated, extremely cautious, and chronically underconfident. In economic terms, it is called ''Risk Aversion''.

India doesn't suffer from lack of talent, it suffers from suppressed ambitions. 

 The Wealth Gap

India's economic growth has created enormous wealth. But most of it concentrated among the very rich. As per the Economic Times report:

• Household with a net worth of Rs. 8.5 crore+ jumped to Rs. 8.7 lakh in 2025 - Nearly 90% rise in their wealth since 2021.
• Yet the middle class's 40% shares only rise by 30% of total income, far less than in comparable economies.

This creates a duality in India 2026 - Small Elite vs Large struggling masses, which means the wealth creation is not broad-based, even as GDP grows more. 

India 2026 is offering massive digital penetration, low cost of content creation, global demand for Indian skills, education, finance, health, and tech disruption.  For the first time, an individual can build a brand without gatekeepers, monetise his/her knowledge, and create multiple income streams. 

But this requires a mindset shift:

India needs skill security from job security.

Job loss, automation, burnout, and health issues- none of them are in our control. But learning high-value skills, building side income, and creating assets over time are in our control. Ironically, what feels unsafe today is often what creates safety tomorrow. 

Despite that wealth gap and other challenges, disciplined planning can create wealth for the Indian middle class. As per the Economic Times report:

• A disciplined savings and investments strategy could help middle-class families build over Rs. 1.2 crore in 10 years, even with modest incomes.

What Needs to Change

To unlock their trap (mostly wealth potential), the Indian middle class must:

1. Upgrade financial literacy - Understand risk, inflation, and compound returns.
2. Invest beyond safety - securities and systematic plans. 
3. Plan for long-term goals - retirement, children's education, emergency funds etc.
4. Balance earning vs Spending wisely.
5. Get out of unnecessary political discussions, especially for Indian Politics.

With the help of Indian Politics - The Indian Middle class will become the Useless Class.

Final Thought

The Indian middle class doesn't lack discipline. It lacks permission to think bigger. A safety net created by one generation may limit the next one. A culture of security over strategy, fear of loss over planning for growth, and the burden of rising costs have created a middle class that works hard but often misses out on real wealth creation. 

India 2026 will reward those who think independently, learn continuously and take calculated risks. Wealth is not built by avoiding fear - it is built by understanding it and moving anyway. 

Welcome to the Indian Mind Space! - where we question the inherited beliefs before inheriting limitations. 

😊

Why Hard Work Fails in India

 There is always a debate between which is best: Hard Work or Smart Work?

In India, we worship hard work the most. From childhood, we had been taught that:

• Hard Work never goes to waste. (Mehant kabhi kharab nahi hoti)
• Give your best, and the result will surely come. (Khud ko ghis lo ek baar, result aa hi jaega)
• Study is everything. (Padhna is sab kuch hai)

Despite these teachings, what I observe is that every year lakhs of students study hard but fail in their competitive exams. Talented professionals remain underpaid and undervalued. Sincere people watched as less hardworking and smarter planners moved ahead.

This observation raised an uncomfortable question:

If hard work always worked, India would be full of successful people in every city and streets. But it is not. 

What is Hard Work? 

In Indian society, hard work usually means:

• Study for long hours. 
• Sacrificing sleep.
• Saying ''no life, only struggle". 
• Blindly following coaching schedules, YouTube lectures!

Here, what I think about Hard Work:

Effort + Direction = Productivity.

Effort - Direction = Energy Leakage

If a student studies for 10 hours without any clear strategy, then he would achieve less than a student studying 4 hours of focused study with a plan. We had always been confused between the quantity of effort with quality of thinking. 

Why Hard Work is Failing in India?

 (A) Too Many Aspirants, Too Few Seats 😔

India is not a low competition country. Because:

• 20+ lakh medical entrance students.
• 15+ lakh JEE aspirants.
• 10+ lakh UPSC aspirants.
• Some segment in CA, Law and MBA entrance preparations.
• Millions are preparing for government jobs.

So, when competition is massive, the average hard worker becomes invisible. The selection process happens at margins based on accuracy, decision making, time management and mental control. All of the above are planning skills, not effort metrics.

 (B) Coaching Culture

Indian coaching culture sells:

• Long Schedules.
• Water-Tight Schedules.
• One Size fits all Plans.

The coaching culture in India rewards students based on obedience and not on thinking. Students work hard throughout the year work hard to follow instructions, not designing their own strategy. As a teacher (from coaching culture), I have seen students finish the entire syllabus but fail cutoffs. Memorise the formulas, but still panic in exams. Just because no one taught them how to plan, revise and execute under pressure. 

 (C) Hard Work Without Feedback

Indian society praised the students for their outcomes, not for their efforts. But effort without continuous feedback creates false confidence or sometimes overconfidence. The smart workers will have some edge here:

• Smart Planners analyse their mistakes.
• They adjust their strategies.
• Drop ineffective methods and reduce their wastage of time.

Hard workers often repeat all these mistakes. Sometimes with more intensity, or sometimes less.

What is Smart Planning?

Smart Planning is not a shortcut or a trick. It is an intelligent alignment of effort. Smart Planning:

 (A) Based on the Syllabus and not on emotion

Most students prepare emotionally. For example, Today, I am feeling motivated, so I will finish more. I have attempted very less questions, let's make it more by guessing the answers. 

Smart Planners prepare structurally:

• Topic Weightage
• Past Year Trends
• Return on time invested in a topic or chapter.

In India, exam pattern knowledge is the power.

 (B) Based on Energy and not on Idealism 

Hard workers always say that they will study for 10 hours daily. But in reality, they have family duties, job pressure, and mental fatigue. While Smart Planners work with their energy:

• Fixed Deep Work Slots.
• Buffer Days for extra work.
• Weekly Evaluations.

Their planning is based on consistency and not on perfection. 

 (C) Execution is Measured and not Assumed

Hard workers say: I'll have studied a lot. While Smart Planners ask themselves:

• How many questions did I  solve?
• What was my accuracy in the exam?
• What mistakes did I repeat?

In India, what gets measured gets improved.

Smart Planning Wins

Planning will do three powerful things.

1. Reduce anxiety. 
2. Prevents burnout.
3. Improves decision-making under pressure.

That's why an average student with a plan often outperforms the intelligent students without one. 

Success in India is not about how much you suffer. It is about how intelligently you channelise your suffering. 

I have seen those students who study for 12 hours and calm or structured students succeed. It is not because they worked very little but because they worked with clarity. 

Hard work is a fuel, and Planning is steering. Without Steering, the fuel only burns.

Final Thought

India doesn't reward the most tired person. It rewards the most strategic one. Hard work is necessary but not sufficient in today's dynamic world, especially in India. If you want to win in Indian society:

• Think before you grind.
• Plan before you panic.
• Execute before you complain.

Smart planning doesn't reduce efforts, but it multiplies the impact.

Welcome to Indian Mind Space - where thinking comes before hustling.

😊

      

Success in India 2026

 In India, success is often treated like a mystery. 

Some say it's luck.

Some say it's connections.

Some say it's intelligence, talent, and hard work.

As we are entering 2026, and being a teacher, a lifelong learner, and mentor (in some cases), I have interacted with thousands of students, aspirants, and working professionals. Over time, one thing has become crystal clear to me:

In India, suceess is less about talent and more about how you think, plan and execute - consistently.

 The Indian Reality of Success

Indian society is very unique. 

• Huge Population.
• Limited high-quality opportunities.
• Immense family pressure.
• Comparison culture.
• Respect for degrees, ranks, and titles.

From childhood, most of us are trained to obey, memorize, score more, and not to think, question, or design our lives. This created a dangerous gap now. 

We work hard, but without clarity. We struggle, but without direction.

Hard work without any thought process is exhausting.  Thinking without execution is an illusion. Real success lies exactly between them.  

Role 1: Thinking - The Most Ignored Skill

In Indian households, children are rarely asked:

• What do you want to become?
• Why do you want it?
• What kind of life do you want?

Instead of the above, we hear:

• Engineering is good. (Engineer ban jao)
• Government job is secure. (Sarkari naukari sabse best naukari)
• What will people think? (Log kya sochenge?)

We can infer that thinking is outsourced. It is outsourced to society, relatives, friends, or trends. But if you look for successful people, they have their own thinking.

In 2026, we need to shift from the typical Indian mindset to a Powerful mindset. 

❌ What exam should I prepare?

✅ What skills and roles does India reward in the next 10-20 years?

When thinking becomes clear, half the confusion disappears.

Role 2: Planning - The Bridge between Dreams and Reality

Indians are emotional dreamers and weak planners. We dream big. We think of becoming IAS, IITian, Top Packages, Respect, and Stability. 

But planning is often vague.

• I will do regular study now. (Ab se daily padhunga)
• I will crack it in the next attempt. (Agle Saal dekhunga)
• I will start with the perfect time. (Time milne par karunga)

Dear Indians, planning is not motivation. Planning is a structure. A good structure is based on:

• How many hours of study per day?
• What exactly to one study daily?
• What should be the order of study?
• How measure the progress?
• What if I fail once? (Exit Plan or Escape Plan)

In the Indian competitive culture,

Clarity always beats Intensity.

Role 3: Execution - The Real Game

From my experience, Execution = Boring Work. 

Because it is repetitive in nature, it will not give instant results, nor quick validation of your right execution or wrong execution. That's why most people fail here. 

In this Social media age, distractions are endless, and they will increase more because of AI challenges. After that, you have relatives' opinions, financial stress, and self-doubt. 

Dear readers, execution means showing up even when no one is watching. 

Execution is not when motivation is high but when discipline is low. 

Successful students and professionals don't do extraordinary things. They do only ordinary things extraordinarily consistently. 

Why Most Intelligent People Still Struggle

As a teacher, I have seen:

• Average students are cracking top exams.
• Brilliant students are burning out.
•  Talented people are stuck for years.

The difference is not IQ or Intelligence. The difference is mental clarity, long-term patience, emotional intelligence, and willingness to delay gratification. 

Indian society rewards consistency silently and celebrates success loudly.

The Indian MindSpace Philosophy

I started this blog with the title of Indian Mind Space. I don't write as someone who has figured everything out. Neither am I writing as if I know everything correctly. 

I write as:

• A Teacher who understands how learning really works.
• A Learner, still evolving with changing times. 
• A Mentor who has seen both success and failure closely.

This blog, Indian Mind Space, is about: 

• Thinking clearly in a noisy society surrounded by tons of information. 
• Planning realistically with emotional control for an emotional environment.
• Executing patiently in a quick 10-minute service world.

Final Thought

Success in India is not about shortcuts. It's about mental alignment. 

When your thinking is independent, planning is realistic, and execution is consistent, then no system or exam, job market, or society can stop you for long. 

This blog is a space for deep thinking, honest discussion, and practical guidance for students and professionals who want to grow and not just compete. 

Welcome to Indian Mind Space!

Let's build minds before chasing milestones. 😊

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Right To Freedom of Expression

Right to freedom of expression and freedom of opinion are among the most fundamental rights in a democratic republic . The prerequisite for a political system to run in a democratic way is to provide its citizens with the power to form their opinion on certain issues and express their views unhindered, unfettered by the fear of retribution. It allows people of the country to freely engage in the social, cultural as well as political affairs. In India, this right, the right to freedom of expression is protected under the Article 19(1)(a) and is fundamental to our democracy. However Article 19 (2) imposes certain reasonable restrictions on all the fundamental rights constituting that of freedom of speech and expression.

This right available solely for the citizens of India, not for the citizens of other country. The restrictions imposed with respect to this fundamental right are in the interest of the sovereignty and integrity of India, protection of the republic, cooperative relationships with foreign states, public order, decorum and morality and contempt of court, defamation and stimulation of an offence. The people of India declare their solemn resolve to secure to all the citizens, liberty of thought and expression in the Preamble to the Constitution of India.

At the same time, a law punishing statement made with the deliberate intention to hurt the cultural, religious or sentimental feelings of any class of people is necessary because it imposes a restriction on the right of free speech in the interest of public order. For the speech or expression that has tendency to lead to a breach of the peace or to create public disorder, there must be sound and proper nexus or link between the restrictions and the attainment of public order.

Freedom of expression is a basic requirement that should be fulfilled by every civil society. But, in this age of modernization, this right is just not limited to expressing one's views through words but it also includes circulating one's views in writing or through audiovisual instrumentalities, through advertisements and through any other communication channel. It incorporates the right of information, and freedom of the press as well. Freedom of speech and expression is like a buttress to a democratic government and should be regarded as the first condition of liberty.  

Government versus Police

 It always be seen that whenever there is tussle between the Govt. and Police administration of any society, it is always painful for the poor people of that society. Now, what happening in USA under the Trump's administration is really brutal. The anguished cry of little babies when these little kids saw their mothers handcuffed can really make someone feelings disheartened. This ultimately led to the 'Criminalisation of Poverty'. Poor people are subjected to rigorous and often brutal circumstances and end up committing acts over which they may not have full control. If the government and police system are permanently at war with that, most poor will end up in prisons. Both India and America to some extent show the behavior of 'Criminalisation of Poverty'.

An unending mission :- 

Since 1947, India has failed to eradicate poverty despite the consistent growth in the years of 1947 till now. It is also true that poverty remains but it has lessened. Poverty varies across different States as highest in Bihar and lowest in Punjab as per 2004 records. The main brunt of poverty is borne by landless agricultural laborers, small and marginal farmers and urban poors.

Reasons for Criminalisation of poverty

The problem of poverty has been further compounded by existence of glaring inequality, social and economic outlook of any nation. What happens now under the Trump's 'Zero Toleration Policy' could also be seen in the Indian post colonial era which led some criminals group of MP, Bihar and Rajasthan. Naxalites could also be taken as the best example of it. Some possible reasons for criminalisation of poverty could be
(a) Lack of third mile connectivity
(b) Maldistribution of incomes, opportunities and powers
(c) Unbalance social and class structure of economy
Hence, with the onset of liberalized economy and development on the basis of animal spirit of capitalists, inequality of wealth or gender gap will likely to grow. This is the right time to reverse its trend whether it is Indian administration or USA administration.

Solutions

(a) Better policies with best implementation management.
(b) Growing awareness among the peoples especially the poor section group.
(c) High growth and development.
(d) Better quality of life.

Image is subject of copyright and related to http://www.rioonwatch.org/?p=30636

1971 War

This is the story of a National Hero to whom no body knows too much about him. On the eve of this Independence Day, I just want to share a story from the battle ground of 1971 India-Pakistan War.
A story which I thought that everybody should knows, a story which has to be taught in School books, a story of a young man who is really a daring person.

                                        _____________________________________________

3rd December 1971

This was the date of official declaration of 1971 war between India and Pakistan. Pakistan's fighter jet planes had attacked on Indian borders. A very young, handsome person had just joined the Indian Army in 1967 at the age of 17. He joined NDA (National Defence Academy) in 1967. He was in under training in 17 Poona Horse where the fighter jets of Pakistan had attacked. 

He did not want to leave this opportunity and wanted to become a part of this war. For this he applied for special permission to the top official authorities. He was still under training. The top authorities accepted his demand and allow him to join the battlefields but on one condition. He has to proved that he was perfectly trained and ready for this war. He gave all his test regarding his permission and passed. He joined his battalion in Shakargarh sector of Punjab as the 2nd lieutenant in command at the age of 21.

                                    _________________________________________________

Shakargarh Tehsil is situated on the border of India and Pakistan. It is the most strategic locations for Armies because it is the only single road which leads from Punjab to Jammu Kashmir. It is the fastest route to reach J&K. In 1947, our Indian Army take this route to reach J&K and liberate the Srinagar from the terrorist of Pakistan.  The war of 1971 was on its peak. The intelligence reports tells Indian Authorities that Pakistanis wants to attack on Shakargarh sector and cut the Kashmir from rest of India.

                                ____________________________________________________

Indian Army make their plans after getting this information. They make a full proof plan- 

• Make a bridge over the Basantar river which is tributary of Ravi and flows between the two countries.
• Clear the land mines
• Take all the Poona Horse tanks safely in the enemy zone
• Make a surprise attack on enemy in his zone

They work as per their plan. But when they were clear the landmines, the Pakistan 13 lancer had attacked. In that hurry-skurry situation, only three tanks had crossed the bridge. Rest were remains in Indian zone. These three tanks were now in front of the 14 T-55 tanks of Pakistan. The fight was really hard for them.

                                        ________________________________________________

These three tanks were manned by 

1. Captain V Malhotra
2. Lt. Avtar Singh Ahlawat
3. 2nd Lt. in command

All these three decided not to look back and took all these 14 tanks of Pakistan head on. The fight had just start.

                                  __________________________________________________

Battle of 14 v/s 3

All set go and within some time 3 Pakistani tanks were destroyed. All three Indian tanks played well at the initial phase of fight. No chance for the opposition. Now the battle was between  11 v/s 3.

Captain's gun gave in and he retaliate. Another one down from Pakistan's side. Within some moments 4 more tanks were destroyed.

Now the fight was between 7 v/s 3. 

Suddenly Captain Malhotra gave up and he retreat in Indian zone. Now it becomes 7 v/s 2.

Lt. Ahlawat take them head on. But a shell hit him. He was forced to retreat. Meanwhile 3 Pakistani Tanks were destroyed. Now the battle becomes 4 v/s 1.

Remaining tanks were manned by our 2nd Lt. in command. He decided to take them head on. But a shell again hit his tank. His tank was on fire and he badly injured. He got a message from his field commander to abandon the fight and retreat. And he said-

''No Sir! I will not leave my tank. My main gun is still active and i take those bastards head on''

He keep going and he destroyed two Pakistani tanks. Now this was become 2 v/s 1. 

He point his aim and took his shot and hit the rest two. The crew of those tanks ran away from battleground. There was no indication from Pakistani commander. Suddenly the atmosphere becomes silent. With this silence, the battle was over and India took their winning shot from our 2nd Lt. in command.

                              ________________________________________________

 

Our 2nd Lt. still remains in his tank. He had been taken out from his burning tank by the help of other soldiers. He doesn't looks good. His face was totally burnt. His fingers had melted. He can't even speak properly. He gave the indications of some water. His mates gave them water. He had been taken towards hospital. He definitely won the battle and also definitely lost his life at the age of 21.

After the few hours of his death, news came that Pakistan had surrendered and declared a unilateral ceasefire. India wins.

                                    __________________________________________________

Who is he??

He is none other than ''Arun Khetrapal"- the unsung heroes of Indian Army who lost his life, but wins his dream. He is who which desperately give something to his country - not by words but by action. He is who which most of us doesn't listen his name. He is who that didn't want any credit, any medals and any kind of appraisal. He is who  which always inspire me.

 

2nd Lt. Arun Khetrapal who became the youngest awardee of ParamVir Chakra (later recorded by Subedar Yogendra Singh during Kargil War). Today the parade ground at NDA bear his name.

A name which is enough to be retold in the Indian History ever. 

I rest my verdicts here by assuming that you should definitely search more about him. There are many unsung heroes which had been lost in the pages of Indian History. 

Celebrate this independence in the name of these heroes........

~~ Jai Hind

     वन्दे मातरम !!!!!!!!

GST- The mission continues

Introduction

Any civilisation from ancient India to modern India governed by its State machinery. Taxes forms a major part to run that machinery. Perhaps that's why the king, landlord, feudal landlords, government taxed their subjects. Why do govt. levy tax? Answer is simple- to earn revenues and keep working for the benefits of citizen like running the development program and schemes. However in modern India with 132 crore + population, the tax system getting more complex and perverse over time. This new and bold reform will definitely make some reforms as the threat of deglobalisation entered the world politics scenario. For understanding GST (Goods & Service Tax) let's first understand the various taxes in India.

Taxes

It is the amount charged by the govt. on product, income and activity. It become direct tax if it is levied directly on income of a person or of a company. But if it is levied on the price of good and service then it called as indirect tax.

If a tax levied on every sale made then it is called as sales tax. When tax levied at each step of the process - from manufacturer to distributor to wholesaler to retailer to customer then it is called cascading effect of tax. In VAT (Value added tax), the rate should be uniform.

Why GST??

It is VAT which levied on goods and service tax. But even VAT is also unable to stop the cascading effect of taxes. That's why GST had been come in the scenario to eliminate the cascading effect and lowers the overall cost of goods and service to the consumer. It is simply equivalent to the consumption tax which will be levied on goods and services only (as its name suggests). In this GST regime imports will be subject to this while exports becomes zero rated.

It is also expected that it will broad the tax base structure of India, promotes one nation one market theory, boost Make in India program and thus boosting the economy. It will also provide reduction in the compliance cost like the ones on entry tax and e-commerce taxation existing today. It also alleviate for keeping multiple records and filing returns of multiple taxes which also provides the less effective cost to trades. For dispute redressal mechanism GSTN portal must be used.

In terms of Government revenues, when we have broad tax base structure and improving taxpayer compliance then it automatically improves the tax to GDP ratio which also improves our ranking in 'Ease of Doing Business Index'. As per the estimation of GoI after implementing the GST there must be an additional growth of 0.9% -1.6% in GDP. When we have improved taxpayer compliance then it also boost the small taxpayers. Under GST SMSE's(Small medium sector enterprises) will got some benefits like the small taxpayers whose turn over is Rs.20 lakh (Rs. 10 Lakh for Northern- Eastern region, Sikkim, Uttranchal, Himachal Pradesh) need not to register under the GST regime.

Major Impacts of GST

• Improving the govt. tax structure and services
• Lowers the corruption or red tapism
• Generate more employments which is most demanding and challenging part.

How do we become more developed? Answer is simple - by removing poverty. But after the 1947 political freedom, our policies, our govt., our administration is unable to bring that reforms. That's why present govt. use the slogan of ''Sabka Sath Sabka Vikas''. Becuase govt. has realised that removing poverty from India is not their cup of tea alone. The majority of people have to come forward and bring a reforms regarding this context. 

So next question is how we can remove poverty? Again answer is very simple- by generating skills, giving proper training and bringing a manufacturing revolution. But most of our entrepreneurs doesn't want to setup a factories in India due to the complex taxation system. Apparel manufacturers will like to setup their factories in Bangladesh (already have GST structure) rather than India. Flipkart itself had their HQ in Singapore due to land acquisitions problems.

With the advent of GST it will create more factories ---- create more business ---- create more jobs ---- create more competition in the market ---- create more taxes to government ---- create more revenues ---- hence lower the prices ---- lower the bank rates for micropreneur.

Simply saying when govt. create more money through GST then it left with only two options. First to have less other tax rates or to create more services. That's how an economic cycle work. It will also create more transparency in the taxation system which automatic lead to lower the corruption in the system. 

How GST works??

Here are some links for those who wants to get more information about its pros or cons.

https://en.wikipedia.org/wiki/Goods_and_services_tax_(Australia)

http://gst.customs.gov.my/en/gst/Pages/gst_ci.aspx

http://www.ey.com/gl/en/services/tax/worldwide-vat--gst-and-sales-tax-guide---rates

http://www.thebetterindia.com/63624/gst-bill-gamechanger-india/

http://economictimes.indiatimes.com/news/economy/policy/indias-reverse-brexit-gst-will-create-million-of-formal-jobs/articleshow/53374352.cms

The Internet of Things

The Internet of Things (IoT) is a term that discussed for our future as well as for our present too. This is a revolutionary thing that changed our life completely. In the upcoming fourth Industrial Revolution, IoT will be a key component for every big companies of every sector. It's a change from Anytime, Anywhere & Anybody- to- Anything.

Definition

IoT creates a world where physical objectives seamlessly integrated into information network and can easily became a part of business processes. The concept is very simple. Its about the connecting devices to the Internet with an ''On or Off Switch''. 

It refers to a wireless connection between objects enables the Internet to reach out into real world of physical objects. For example- adjusting your heating via an app can gather a useful data. That's why Google had purchased the Nest (Thermostat Company).

How it works!!

IoT is a scenario where humans, animals or objects are given a unique sensors and identifiers. They can transfer data over a network without human-to-human or human-to-machine contact. Three things made it possible for its working- Micro Electro-Mechanical Systems, Wireless Technology and Internet which finally create a machine-to-machine interface. Sensors combined with smartphones, will allow for more efficient energy networks (across cities and in your homes), reduced congestion and improved transport, multi use buildings etc. 

Houses, offices, factories and public buildings could all generate electricity from renewable sources. Sensor would then coordinate the distribution and storage of this power, making whole systems cleaner, more efficient and more stable. For example- South Korea's Smart City-Songdo and Grogniem in Holland use internet enabled dustbins that saves money regularly. 

Internet to Datanet

IoT provides real-time, location specific information, environmental & infrastructure activities information. All this creates a net of data which further be monitored and available to public also. This huge data created by IoT converts in 'Big Data' which will not be an easy task to handle by normal data methods and tools.

So It's Great then??

IoT has potential to make our lives better. It has efficient heating systems that could save us money, transport apps could save our time, new electric grid system could help to save the planet. But for its greatness then the answer is a NO, because it has some kinds of challenges associated with it. 

First- Social Challenges:

(a) Each connected device in theory become a risk & possible target for hackers. Like the criticisms of Demonetisation is about the security of the data. That's why Govt. had brought CERT- Computer Emergency Response Team.

(b) Privacy of individual is at stake at multiple levels. Consider a Smart Electricity Meter that knows your electricity use & typical times you are at home. All this could be available to hackers. This is called as privacy breachness.

(c) Machine guiding every aspect of our human lives. Simply saying we are addicted to machines. In other terms, we are became slaves of machines. According to me, Smartphones with all time on Internet devices make the person of less scientific temper because operating a smartphone is a process-driven system. The individual had not put his/her mind to operate it. He/she had to follow some steps, that's why I usually says ''The Smarter is your phone, the more dumber you are''.

Second - Governance Challenges: IoT will require legislation for security purpose of data. For this some amendments had to be brought in the constitution for preserving the Fundamental Right of an individual. Entire new governance structure will be needed. (The biggest challenge for PM Modi for his Smart City Project) Huge growth of electronic waste & environmental issues.

Good Bye to Pure Manufacturing

Earlier, great manufacturing meant making of great physical goods. A huge change is now that physical products are being stuffed with sensors & are being connected to Internet. So products becomes Products + Services (Change No.1).

Services run on information and information needs an operating system (Change No.2). So if a giant software & Internet company controls this operating system then manufacturers will lose all their edge. This transition had happened earlier when PC & Handsets makers lost their edge to windows or IOS/Android (Creative Destruction Theory by Schumpeter). 

The self-driven cars of Google moon shot venture Alphabet, Amazon Web Services and finally the Boss of Manufacturing - Germany's new program of ''Industrie 4.0'' are its fine examples. In upcoming fourth Industrial Revolution will be full of most amazing things like IoT and by the end of 2030 it will be a completely different world. 

http://www.bbc.com/news/technology-23757738- Link of Songdo Smart City in South Korea

Video of IoT- A must Watch

  

Global Issue of Population

In the world today there is various places with a varieties of mindsets of peoples with their corresponding languages. Each place has its own symbolism and cultural creativity. The term 'Modern Homo Sapiens' emerged around 50,000 years ago. Its subspecies is called as 'Modern Homo Sapiens Sapiens'.

Facts & Figures

At present the total number of humans alive today is around 7 billion. The total number of humans ever born is 108 billion. So basically, at present there is roughly about 6.5% of total human beings alive today. If we see a history profile of population, rate of growth of population decreasing due to global 'demographic transition'. 

Presently the key issues with developed countries is about the ageing of populations. For example in America, there is no social security benefits left by the time the people reach their retirement. The declining profile of birth rates suggest that fewer young people left to pay for the care of elderly. That's exactly happens in almost every countries of Europe and Japan.

Demographic Dividend

Younger people are usually considered as economic gift for countries. When the working-age- population (15 to 64 years) is larger than the non- working age population group, then there is usually a boost in economic activity, productivity and many such things. China is the best example of this part. 

Now this 'demographic dividend' will become 'demographic disaster' due to lack of jobs among young age population. It also worsened the economic aspect of any country. For example Sub-Saharan Africa is already one of the youngest regions in world & youth unemployment is high. Brazil economic activity is adversely collapsed due to 'demographic disaster'.

So if its is assume that there is only 100 people in the world then the ratio of male over female is 50 : 50. Out of 100 peoples, 26 will be children and 74 adults. In terms of literacy - 83 will be literate and 77 has their own houses. From religious outlook, there would be 33 Christians, 22 Muslims, 14 Hindus, 7 Buddhists, 12 others and 12 atheist. 

India

In context of India, some pluses and corresponding some minuses are associated. India is 7th largest nation by landmass occupying 2.4% of world land & second largest by population supporting 17.4% of world population and still growing.Out of which 68% are rural population still now.  By the end of 2050, India will have a population of around 165 crores. Now this create a big difference and a big challenge too. Women empowerment is not yet done as compared to other countries which suggest the key issue of population in India.

But India have a large working age population group and more than 50% people are below the age of 35 years. It will be also predicted that by the end of 2020, Indian average age will be 32 years of age which is definitely be a 'demographic dividend' for us.  

Globally, Japan has become the oldest nations of world having an average of around 46 years with 23% of population over 65 years.

History of paper currency in India

It's now been almost 40 days of announcement of demonetisation. On 8th November 2016, our honorable PM Narendra Modi has announced the banning of notes of Rs.500 & Rs.1000 which also preceded the introduction of new notes of Rs. 2000. Many of us saw the 'Mahtma Gandhi' on one side of notes. Though Reserve Bank of India (RBI) introduced an updated version of notes. So let's know more about the history of paper currency in India.

Evolution of Money

Until the 18th century, silver and gold coins were commonly used in India. But as private European trading companies established their own banks in the region, such as Bank of Hindostan in Calcutta, they began issuing the early versions of India paper notes which were initially just text-based. This further popularised the use of paper notes. The Bank of Bengal went on to release notes that featured a small image of a female figure meant to represent the idea of ''commerce'' as well as bank's name and the denominations in three scripts : Urdu, Bengali, Dev Nagri.

After the Paper Currency Act of 1861, British colonial government got really involved in producing money. Till then money was issued by state alone, not by banks. The 1861 Act was the brainchild of James Wilson, finance member of Indian council & finance minister of colonial government. In 1843, he also founded ''The Economist newspaper'' & founder of ''Standard Chartered Bank''.

''Victoria Portrait Series'' is very first paper notes officially introduced by government in the denominations of Rs.10, Rs.20, Rs.50, Rs.100, Rs.500 & Rs.1000. Notes detail provided in two languages. Interestingly when money had to be securely transferred across distances, paper notes were sometimes cut in half, with one half being sent by post first & second half sent only after the first reached the destination.

As British era past down, the styles, colors and features of paper money had also evolved starting with George V in 1923. All these notes were printed by Bank of England until India's first currency printing press was established in Nasik in 1928. After 4 years, this press was producing all of India's paper currency. In 1935, RBI came into the picture & change all the scenario.

Updated Version of Money

RBI took several years to launch its own notes due to many reasons. In 1938, RBI's first note was issued featured a portrait of King George VI. After Independence in 1947, India demands for a new notes with new look & with new identity. First pure Indian note came out in 1949. This was Re.1 note which had image of Lion capital of Ashoka at Sarnath which also become the official emblem of India. Over the next few years, RBI released notes of different denominations featuring different images like Mumbai's Gateway of India & Brihadeeswara temple in Tamil Nadu's Thanjavore town. In 1960's notes began to print in different colors to help those who cannot read. This time RBI motifs oriented towards Indian art forms & symbol of scientific and economic progress.

Here is the link of RBI money museum where one can see all types of Indian notes ever produced in Indian history.

https://www.rbi.org.in/currency/museum/p-newiss.html

https://www.rbi.org.in/scripts/pm_indofrench.aspx

Global Politics

World Politics Scenario

In the 21^st century, the top issues confronting across nations are diseases, international crimes and climate change. The world today is fragmented along political, economy, military and demographic lines. Multiple ideologies are confronting for influence, power and success. The major lines of analysis can be philosophical, military, economic, trade, political and hegemony related. Throughout the centuries, big powers wanted to expand and indulge in warfare. Ultimately relationships between countries are not fixed; they are fluid and dynamic. As per the above graph, it will be assumed that by the end of 2030, India will be economic power from emerging countries.

Definition of Great Power 

Economic prosperity does not translate into geopolitical power. Projecting power is very crucial. Powers are of two types: Hard Power and Soft Power.

Hard Power like Military, Trade, Science and Technology, Currency.

Soft Power like Culture, Language and Religion.

Military Hard Power can come in many forms like Blue Water Navy + Large standing forces + Military alliances + Nuclear capabilities.

For example USA has the world biggest Navy along with their 7 fleets which maintained his hegemony from 1950 onward. They also have the biggest list of allies. Neither Russia nor China have such powerful navies. 

The geographical position of USA gives its special advantages :

1. Self contend and secure
2. Oceans on two sides (Atlantic + Pacific Ocean)
3. Friends on either sides (Canada + Mexico) and NAFTA (North American Foreign Trade Agreement) 

Present Situation

US remain the undisputed global power and military due to : 

• its huge expenditure on military 
• its unbeatable blue water navy
• its large dominance of soft power which is more effective than hard power

Pure communism has collapsed and retreated around the world. Russia has become unpredictable and it now uses every opportunity to assert his power like attacks on IS states on Syria, Georgia War (2008) and Ukraine issue.

On the other hand, China desperately wishes to secure its water (South China Sea) against future aggression. Chinese keeps criticizing Americans for abusing its superpower status and for instigating regional tensions. After 2008, President Obama followed a different path. He gradually withdrew the military from everywhere to meet the cost of expense on military. Present President Donald Trump policy will be very crucial for other countries in terms of Hard Power.

Road Ahead

There are clear proofs that American soft power outstrips others by a large measure. This will not change overnight. The world has accepted that democracy is the best idea. For China which is not a democracy, it still has a long term to go on a per capita income basis. American protection for Japan, South Korea and Taiwan will continue. Russia is so called democracy but it runs autocratically.

Finally the renowned scientist Stephen Hawking recently says that’’ the rise of Donald Trump and Britain's Brexit vote come at "the most dangerous time in the history of the human race. Together, they are a reminder that we are at the most dangerous moment in the development of humanity. We can do this [overcome the challenges], I am an enormous optimist for my species; but it will require the elites, from London to Harvard, from Cambridge to Hollywood, to learn the lessons of the past year. To learn above all a measure of humanity. We now have the technology to destroy the planet on which we live, but have not yet developed the ability to escape it. Perhaps in a few hundred years, we will have established human colonies amid the stars, but right now we only have one planet, and we need to work together to protect it.” 

Welcome to Capitalism

Capitalism

The key question before societies is ‘’how to divide its resources among its citizens’’. This question has led to many concepts fundamental to modern society like welfare state, communism, socialism, capitalism etc. Today’s prominent global model is ‘’Capitalism’’ with the West is the icon and China and India are its eager followers.

Definition

Capitalism is a socio-economic system where private persons own and control capital assets, labor is purchased for money wages, capital gains and profit goes to private investors and price mechanism is used to allocate capital goods between users.

Critics of Capitalism

The German philosopher Karl Marx (1818-1883) founded the basis of ‘’communism’’ as an alternative to ‘’capitalism’’. Marxist book – ‘’Das Kapital’’ stressed upon three aspects:

•  Capitalism leads to social inequality.
• It creates market monopolies.
• It forms the basis of Imperialism

Thomas Piketty - Capitalist in 21st Century 

In Western countries like US, UK, France the debate on rising inequality has assumed to be center stage. The fear is that very small segment of society – Plutocrats will own everything and everyone else will force to work for them or rent for them.

Piketty predicts that forces of capital accumulation will makes society less equal, less mobile and less democratic. He says that rich never have been the rich have today and he reaffirms the debate 1% v/s 99%. Using public data like tax records, inheritance records etc., he has analysed inequality. His key concept is R > G (Rate of return on capital > Growth rate of economy) or Income from investment will be greater than growth rate of salaries. Hence capital tends to grow faster than the economy and left unchecked the ratio of wealth to income will keep rising.

Many jobs have been automated by robots and search engines. The rise of India and China has added another 2 billion people to global workforce who are low wage workers.

Critics of Thomas Piketty

Even if R>G capital may not accumulate indefinitely. Capitalist can spend it, give it away or divide among heirs. Thus if cheap labor force willing to work on your new machinery found then return on investment will be good or else low. Hence robots!!

The Great Thinkers

Adam Smith (Scottish 1723-1790) 

He opposed the Mercantilism thought and propounded the’’ Classical School of Economics’’.

His key books – Wealth of Nation (1776), Theory of Moral Sentiment (1759).

He is father of Modern Economics and Capitalism. He gives two theories as:

Comparative Advantage Theory : It is profitable for two nations to trade even if one of them is more efficient. This concept is the basis of all trade today. For example David Riccardo made law by this and formed WTO.

Invisible Hand Theory : The individual pursuit of profit and self-interest unintentionally produces collective goods for society.

John Maynard Keynes (British 1883-1946) 

When things go bad like a world war or recession then capitalism takes a long time to recover. For example Great Depression (1930). Hence people stops spending, consumption decreases so production and jobs also decreases. Thus govt. needs to step in with a big ‘’Fiscal Stimulus and Pump-Priming’’ is required.

Keynesian economics- Promote demand, fight unemployment and fight deflation.

Milton Friedman (USA 1912-2006) 

He is father of ‘’Neoclassical economics’’. He says that social responsibility of business is to use its resources and engage its actions that produced profits. He support the ‘’Privatisation’’. His key followers- President Donald Regan of USA and Prime Minister Margret Thatcher (UK).