The effects of colonialism and inner corruption almost drove this nation into the depths of poverty, but sweeping social and economic reform, innovation, work ethic, and sheer numbers have pushed India to emerge on the global stage as a super power.
The Indian subcontinent is self sustaining and produces enough water and natural resources to supply its robust population. Located along Eurasian and Afro-Asian sea-trade places India in a pivotal and profitable position. India's location leaves it poise to significantly advantage from the global shift to renewable energy. Located between the Tropics of Cancer and Capricorn place it in what's known as the Sunny Tropical Belt, and as the technology and infrastructure assimilate to solar energy, India will greatly benefit.
India has 17.9% of the world's population, and whats more is that due to it's high birth rate, roughly 65% of India's population is under 35 years of age. That means its 400 million plus strong workforce is greater than populations of America and Brazil combined. Across the world there are 35 million people, and in total India makes up for the largest English speaking/understanding population, even greater than America.
As of 2015 India boasts the world's fastest growing economy. India's is one of the world's leading producers of food - second only to China. Food production alone accounts for USD $69.4 billion of the Indian economy. It's currently ranked as the global #3 in terms of real GDP and with a growing manufacturing sector, some experts expect India to be #1 as soon as 2050.
India boasts a world class IT sector that many feel makes India a definite global technological super power, and a tourism sector that is starting to outperform the best of them worldwide. It's combination of culture, history, and innovation make it an attractive destination. It also has an inexpensive, yet world class medical system which attracts thousands of patients a year from all over the world. With a total armed forced of 2.5 million, India has the 3rd largest defense force, making it a formidable and influential power on the world stage.
While there is still a long way to go, if India's productivity rate continues to catch up with it's population and it's innovation, it is almost an inevitability that India will emerge as a world leader and a super power.
When you take out a loan for a car, charge something to your credit card, or get a personal line of credit, there is going to be an interest rate that applies to your loan.
A lot of different factors go into what you will be charged, including your own personal credit score. But even those with flawless credit still see a minimum charge that they can't get around. That all goes back to the Federal Funds Rate.
One thing consumers rarely realize is that all of our banks are lending money to each other every night. Banks are legally required to maintain a certain percentage of their deposits in non-interest-bearing accounts at the Federal Reserve to ensure they have enough money to cover any withdrawals that may unexpectedly come up. However, deposits can fluctuate and it's very common for some banks to exceed the requirement on certain days while some fall short. In cases like this, banks actually lend each other money to ensure they meet the minimum balance. It's a bit hard to imagine these multibillion-dollar financial institutions needing to borrow money to tide them over for a bit, but it happens every single night at the Federal Reserve. It's also a nice deal for those with balances above the reserve balance requirement to earn a bit of money with cash that would normally just be sitting there.
The Federal Reserve
The exact interest rate the banks will charge each other is a matter of negotiation between them, but the Federal Open Market Committee (FOMC) (the arm of the Federal Reserve that sets monetary policy) meets eight times a year to set a target rate. They evaluate a multitude of economic indicators including unemployment, inflation, and consumer confidence to decide the best rate to keep the country in business. The weighted average of all interest rates across these interbank loans is the effective federal funds rate.
This rate has a huge impact on the economy overall as well as your personal finances. The federal funds rate is essentially the cheapest money available to a bank and that feeds into all of the other loans they make. Banks will add a slight upcharge to the rate set by the Fed to determine what is the lowest interest that they will announce for their most creditworthy customers, also known as the prime rate. If you have a variable interest rate loan (very common with credit cards and some student loans), it's likely that the interest rate you pay is a set percentage on top of that prime rate that your lender is paying. That's why in times of low interest rates (it was set at 0% during the Great Recession), a lot of borrowers should go for fixed interest rate loans that won't increase. However, if the federal funds rate was relatively high (it went up to 20% in the early 1980's), a variable interest rate loan may be a better decision as you would be charged less interest should the rate drop without the need to refinance.
The federal funds rate also has a major impact on your investment portfolio. The stock market reacts very strongly to any changes in interest rates from the Federal Reserve, as a lower rate makes it cheaper for companies to borrow and reinvest while a higher rate may restrict capital and slow short-term growth. If you have a significant portion of your investments in equities, a small change in the federal funds rate can have a large impact on your net worth.
Whether you're leaving a job involuntarily, departing for something new, or just want to prepare for the unknown, it is smart to understand all your options regarding your 401k.
Frugal gifting often gets a bad reputation. However, this shopping method does not make you cheap — it makes you practical. Frugal gifts often avoid waste and overspending and can be just as meaningful (if not more so) as any other present.
With the National Retail Federation predicting each consumer this holiday season to spend upwards of $1,000 on holiday gifts amidst an economic recession —this year might be the perfect time to reconsider your spending budget. We've formulated the ultimate list of frugal gift-giving ideas to get you started.