Financial Economics

How is India proliferating its Foreign Exchange Reserve?     M oney is at the core of every economic activity in the world. Governments need cash to run daily activities. Authorities usually raise funds either by capital gain or revenue gains, i.e. by selling goods and services or taking out loans. Nations usually hesitate to acquire loans as countries have to pay interest etc. And only apply for the loan for a longer period. New Delhi uses  Indian foreign exchange reserves  (made up of Indian foreign exchange or  Indian foreign exchange markets) to tackle short term needs. Thus, most of the Govt. Tries to use funds from revenue gains, but in the current coronavirus, crisis authorities are not having an adequate amount of reserves thus nations are now turning their attention to their foreign exchange reserves to counter its requirement. Thus, eventually, countries’ foreign exchange reserves are plummeting rapidly. The Kingdom of Saudi Arabia, Republic of China...

The US and China are the top two economies in the world under a trade war. The US has started this due to Trade imbalance between the two countries. The US is facing a trade deficit due to more import and less export to China. This will be harmful to The US in the long run. Due to a trade war, the US has imposed a $200 Billion Tariff on China and in return, China has imposed a $60 Billion (Till the date) Many of you may have a question of how this trade war will be a golden opportunity for India? There is a gap created in both economies that India can fill by exporting its goods and services. Let’s understand 1.      The US–             The US is a big country with people with a high standard of living. Due to a trade war, Chinese goods will be more expensive than earlier. So India has to produce products to concentrate on these markets first.    Following are goods which India can take advantage.  The US im...