Hello, hope you are having a great Sunday! This week’s newsletter focuses on the recent movement in the economic ranking of India and the United Kingdom and the operation of a single time zone in India.
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India becomes the fifth largest Economy
India has now become the fifth largest economy in the world, following America, China, Japan and Germany. This led to a shift in the ranking of the United Kingdom to the sixth position same as before in the 2019 financial year.
The flow of events behind this transition
India
#1 India’s GDP growth of 13.5% in Q1 FY2023
With a GDP growth of 13.5% in the April–June quarter of 2022, India's economy continues to grow at the highest rate in the world. The growth of GDP at this rate is the greatest ever growth in a single year.
#2 Dollar Exchange Rate
In actual cash terms, the Indian economy was $854.7 in the quarter through March. It was calculated by using the dollar exchange rate on the last day of the relevant quarter. On the same basis, the United Kingdom was worth $816 billion.
United Kingdom
#1 Rupee vs Pound
The GDP of the UK increased by 1% during the second quarter. With the ongoing inflation, this further reduced to 0.1%. The pound performed poorly in comparison to the rupee. The British pound has lost 8% of its value against the rupee this year.
#2 Cost of living crisis
Due to the escalation of energy prices and the rising cost of living, residents of the UK are facing financial difficulties. Citizens Advice (an organisation assisting people with legal, debt, consumer, housing, etc.) expects to provide crisis support to 212,966 people by the end of the year, a 57% increase from the 135,572 people it helped in total in 2021.
#3 Soaring energy prices
Nearly half (46%) of those responsible for paying for energy are finding it difficult to afford their bill, according to the latest ONS report which looks at a snapshot of time between 6 and 17 July. It marks an increase from 43% in the previous period from 22 June to 3 July.
(Sources: Bloomberg, Times Now, NDTV, The New Indian Express, Republic, CNN, Guardian)
Economics of a Single Time Zone
As per research by Cornell University, India is losing $4.1 billion (almost Rs 29,000 crore) due to the single time zone functional across the country.
Two Time zones Vs Single Time Zone
Research indicates the US, the UK, Australia, and Canada, have benefited economically from multiple time zones. Employees have also established a healthy lifestyle with changed time zones, which has further had positive outcomes.
India, on the other hand, with a single time zone hurts the economy. The contributing factors are psleep qualityleep, especially among youngsters with limited m, whichthat has further lowered the standard of their education.
How would two time zones benefit Indians?
#1 The Economic Implication
Two time zones will enable India to save 2.7 billion units of electricity yearly, claims a paper from the National Institute of Advanced Studies.
This is because the bulk of businesses and educational institutions are open until sunset in the eastern half of the nation.
#2 Increase In Productivity And Efficiency
The biological clock that controls daily day and night cycles is linked to human productivity and efficiency. Many citizens of the country live in a time zone that doesn't correspond to their preferred daily schedule. People will be able to plan and work better by their natural cycles if two time zones are formed, which will have a good economic impact.