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The Crude Oil Saga 2020-21

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Even after several decades of First Oil Crisis and a lot of technological advancement … an increase in petrol and diesel prices still effects balance of payments of several nations and a common man's budget too. “Economics is study about how to meet unlimited need with scarce resources” – Laurence J Peter. This statement holds a lot of significance. People make a lot of money by manipulating prices (meeting their unlimited needs) via artificially adjusting demand and supply (scarce resources) be it stocks, onions or crude oil… etc. In this article we will see how demand and supply of crude oil were adjusted so as to control prices.   We can consider Petrol and Diesel as a relatively inelastic market in short run, which means that there are very few substitutes available so that you can shift to that substitute if prices for petrol increase. As petrol and diesel both are obtained from crude oil, so it becomes important to understand about what happened to crude oil pr

Stock Markets ~ More Like a Cinema Hall

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One of the hottest topics in the current era and the most promising investment class which can beat the high rates of inflation is the “Stock Market”. But what to do if you don’t know anything about the stock market? How to understand the stock market? In this article I will explain the stock markets, types of people in stock markets in a very fancy way. So, all of us have been to cinema halls at least once in our life. Now while reading this article, every time I mention cinema hall it is a metaphor for the stock market and seats for Stocks. So let us assume a cinema hall with a single floor only. Now there are broadly three types of seating arrangements in this cinema hall. First of all the seats at the last ( slightly at a higher level) which is very close to the main gate( assuming only one gate), secondly the seats at middle level( at a lower level than the first category),and then the front seats. This same arrangement is in the stock market. Just before the film begins The inte

India's GDP ~ Where We Lack and What We Need... A Supply Side View

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  INTRODUCTION As I had mentioned in one of my previous articles{ https://analysiswithshaurya.blogspot.com/2020/08/gdp-calculation-limitations.html }  about GDP, that it is both the aggregate expenditure as well as aggregate output produced in an economy.In this article, I will present a brief analysis on Indian Output(GDP) since 2013 on basis of  production function approach. To have a clear understanding about the analysis, understanding the approach and assumption used is the preliminary requirement. So let us walk through the basics of the production function approach.   PRODUCTION FUNCTION APPROACH - A Small Walk  In the production function approach, Aggregate output is calculated as a function of A,K,and L. Y=A*f(K,L) .......(1) Here,  Y= aggregate output A= Total Factor Productivity/ Residual ; The policies in a country, its economic structure, technological advancement. In one word we can say it is “ ease of doing business ” K= capi

INDIAN PHARMACEUTICAL INDUSTRY - WHEREABOUTS & THE GROUND TO COVER

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    GLOBAL POSITION ~ A GLIMPSE  MARKET SIZE :   Indian pharmaceutical industry stands at 3rd position in terms of volume and around 14th in terms of value globally. The size of the pharmaceutical market in India is around $40 billion, which is around 3% of the global pharmaceutical market.  EXPORTS : {CAGR ~ compounded annual growth rate, SAGR ~ simple annual growth rate} As can be seen in the above image, Indian exports have shown an annual CAGR of 3.63% over the last 5 years. Indian pharmaceutical exports were $ 20.14 billion in Jan 2021. Currently India’s share in global exports is 2.5% approximately. REVENUE SHARE: The major source of Indian pharmaceutical revenue comes from sale of generics. It's almost 71% of total revenue. The other major sources are OTC (20%) and patented products (9%). GLOBAL SUPPLY India supplies around 40% of the United states generics demand, 25% medicines requirement in the United Kingdom, 80% of the global AIDS vaccines.  Apart from these statistic