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India's Household Debt Boom: A Subprime Crisis in the Making?

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India's economic growth narrative has long been underpinned by robust domestic consumption. However, recent trends indicate a shift towards increased reliance on debt to fuel this consumption, raising concerns about financial stability. The surge in unsecured personal loans, primarily for consumption rather than asset creation, mirrors patterns observed in the U.S. subprime mortgage crisis. This blog delves into the data and trends that suggest India could be on the brink of a similar financial upheaval. Data Contrary:- Economic Survey Of India The Surge in Household Debt As of June 2024, India's household debt stood at 42.9% of GDP , a significant rise from 36.6% in June 2021 . This increase is primarily driven by a surge in unsecured personal loans, which grew by 20.6% year-on-year in the first half of FY25 . Notably, unsecured loans now constitute 19.7% of GDP, reflecting a growing reliance on short-term credit for consumption. Consumption Over Asset Creation A concerning ...

The Double-Edged Sword: America’s Dual Stance on Terrorism and the Pakistan Conundrum

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  (Image Courtesy:- Getty Images) The United States has long positioned itself as a global leader in the fight against terrorism. From the ashes of 9/11 to military operations in Afghanistan, Iraq, and beyond, America has spent trillions combating extremist threats. However, behind its loud condemnations and costly wars lies a more shadowy and controversial side — one of selective engagement, covert operations, and strategic partnerships with nations like Pakistan, which have themselves been accused of nurturing terrorist ideologies and groups. This duality — condemning terrorism while, at times, condoning or enabling it — has led to far-reaching consequences, not only destabilizing regions but also backfiring on American interests. The entanglement with Pakistan, a country repeatedly accused of harboring terrorist networks, offers a stark case study of this paradox. Part I: The Ideological War Against Terrorism After 9/11, President George W. Bush declared a "War on Terror,"...

The Rising Dragon: How Chinese Technology Challenges American Dominance and Sparks Insecurity

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             (Image Courtesy:- Global Times) For decades, the United States has been the undisputed leader in global technology, home to Silicon Valley giants like Apple, Google, and Microsoft. However, the 21st century has witnessed the meteoric rise of China, transforming from a manufacturing hub to a tech superpower. With strategic state-backed investments and ambitious innovation goals, China now poses a significant challenge to American tech dominance. This shift, coupled with deep interdependencies between the two nations’ tech sectors, has ignited anxieties among U.S. firms about intellectual property theft, supply chain vulnerabilities, and market competition. This blog explores how China’s technological ascendancy threatens U.S. hegemony and why this rivalry will shape the future of global innovation. China :- Late Pinnacle Of AI and Chip :- Over the past decade, China has surged ahead of the United States in several foundational technology do...

Indian Start-ups:- Mirage or Missed Opportunity

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                          Image Courtesy:- INC4 In recent years, the global tech landscape has witnessed an intense startup boom, with both India and China emerging as major hubs. However, a critical analysis reveals a striking divergence: while Chinese startups have rapidly advanced in artificial intelligence (AI), deep tech, and next-gen innovation, Indian startups have largely confined themselves to consumer-centric, service-based models. This begs the question—why is India, with its vast talent pool and growing digital economy, not producing global leaders in AI and future-defining technologies? The Statistical Landscape: India vs. China in the Startup Ecosystem Before diving into qualitative factors, let’s examine some quantitative contrasts that highlight the disparity:   1. Unicorn Count and Valuation: - China: Over 340 unicorns as of 2023, with valuations often exceeding $1 billion in deep-tech, AI, biotech, a...

The Global Debt Crisis: A Looming Threat to Economic Stability

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The global economy is witnessing an alarming rise in debt levels, creating a precarious situation for long-term economic stability. Many countries are experiencing a dangerous imbalance between their debt and Gross Domestic Product (GDP) , leading to prolonged financial turbulence. Instead of fostering economic growth and sustainability, a significant portion of this debt is being utilized for debt servicing rather than investment in productive sectors. As a result, many nations are caught in a vicious cycle of borrowing, which could eventually culminate in severe economic downturns and even recessions. This article delves into the rising global debt crisis, analyzing its implications, key contributing factors, and the specific cases of countries facing high debt-to-GDP ratios. Understanding the Debt-to-GDP Ratio The debt-to-GDP ratio is a critical indicator used to assess a country's ability to manage its debt. A high ratio signifies that a nation’s debt burden is substantial comp...

The Ripple Effect of Wars on Global Supply Chains: Catalysts for Black Swan Events

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  Black Swan Events Coined by Nassim Nicholas Taleb, a Black Swan event refers to an incident that is extremely rare, has a severe impact, and is often rationalized in hindsight as predictable. These events are characterized by their unpredictability and massive consequences, making them challenging to prepare for and mitigate. In the context of global economics, wars can act as catalysts for such events by disrupting established systems and creating cascading effects across various sectors. The Immediate Economic Shock of War Wars often lead to immediate disruptions in global markets. For instance, Russia's invasion of Ukraine in 2022 caused significant turmoil in energy markets. Prior to the invasion, Ukraine accounted for 11.5% of the world's wheat exports and 17% of global corn exports . The conflict severely disrupted these supplies, leading to global shortages and price hikes. Additionally, Brent Crude Oil prices surged from $97.93 per barrel on February 25, 2022, to a pe...

RSS :- Credible Spinal Cord Of BJP

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                      (Image Credit:- The Print) The Rashtriya Swayamsevak Sangh (RSS) , as the ideological backbone of the Bharatiya Janata Party (BJP), has consistently played a pivotal role in shaping India's political landscape. Following the 2024 Lok Sabha elections, the RSS intensified its efforts to bolster the BJP's position in various state assemblies, notably in Haryana,Maharashtra and Delhi. Through strategic grassroots mobilization, discreet meetings, and a renewed focus on ideological propagation, the RSS significantly contributed to the BJP's electoral successes in these regions. Post-2024 Lok Sabha Scenario The 2024 Lok Sabha elections presented challenges for the BJP, with the party experiencing a decline in voter support in certain regions. Analysts attributed this downturn to multiple factors, including anti-incumbency sentiments and perceived disconnects with grassroots issues. Recognizing the need for a strategic...