Smart Alliance

What is ONDC and how it works?

ONDC, or the Open Network for Digital Commerce, is an initiative introduced by the Government of India (GOI) to create a network where sellers, apps, websites, and platforms can join and offer their products and services. It aims to provide a platform for digital commerce that rivals the likes of Amazon and Flipkart, and offers advantages such as lower prices and a wider range of options.
For a shopkeeper in a rural village who wants to bring their high-quality products online, they would have a few options:Create their own website: They can set up their own website to showcase and sell their products directly to customers. However, this option requires them to handle various aspects such as supply chain management, promotion, after-sales service, and delivery charges, which can divert their focus from maintaining the quality of their products.
List on platforms like Flipkart and Amazon: They can choose to list their products on popular aggregators like Flipkart and Amazon, which would handle delivery and after-sales service. However, these platforms would also charge a commission for their services, and there is a risk of their product being duplicated and sold under a different label, as these platforms primarily focus on their databases.The introduction of ONDC aims to solve these problems. ONDC is not a platform itself but rather a network that allows various platforms and sellers to register and join. Users don’t necessarily have to visit the ONDC platform directly. For example, if Myntra is on the ONDC network, all products listed on ONDC will be visible on the Myntra platform as well. ONDC is not limited to e-commerce of products; it also includes services like food, clothing, movie tickets, groceries, and electronics.
It is too early to say what will happen to platforms like Swiggy, Zomato, Amazon, and Flipkart. The government is not looking to compete with them directly, and ONDC is more focused on providing opportunities for small and medium-sized enterprises (SMEs) to avoid unnecessary cuts and data sharing with big giants. The government aims to bring more balance to the e-commerce market, which is currently dominated by Amazon and Flipkart.
Many investors and companies have already joined the ONDC network, including logistic arms like Ekart and Dunzo, Flipkart-owned PhonePe, Paytm, Meesho, various banks, venture capital firms like Accel and Sequoia, and telecom firms like Bharti Airtel and Vodafone Idea.

What is the future of Indian Economy? Is it our decade?

If everyone around you is saying that this decade belongs to India and there are discussions about it being India’s golden time, you might also feel the same way that education, medical, IT, and the overall vibes of Digital India have changed.
But you don’t understand why? and how much truth there is in these conversations? In this article, you will be able to smartly present points in front of everyone explaining why this is India’s decade. It will also improve your knowledge of geopolitics and macroeconomics.
We strongly believe that this decade belongs to India, but as the CEO of McKinsey says, this century belongs to us.Below indicators will help you build your economic and national knowledge, and this will be the reason for witnessing a bull run in the financial markets. So let’s get started.Let me ask you a question: In which family do you think there are higher chances of a new business succeeding? A family where everyone is young or everyone is old-aged? I guess you already understand that our first indication is towards the demographic dividend of our country. According to data, 69% of the population in 2030 will be 28 years old. What they will bring to the table is entrepreneurship, innovation, jobs, employment, and more. So the country will be in good hands.However, if the youth lack resources, it may not translate into anything substantial. Taking the previous example, suppose there is a young man in a family who is productive and efficient but lacks capital. In that case, the chances are high that he will engage in fulfilling his family’s needs rather than investing in innovation and startups. But at present, India has the highest circulation of money. Cash circulation has grown at a Compound Annual Growth Rate (CAGR) of 11% from 2014 to 2023. In the past five years, it has grown at an annual rate of 14%. Currently, there are 31 trillion rupees in circulation. And we can see the impact of this on consumption.How is that so? Among all the people taking loans, the highest percentage is for home loans, which amounts to 48%. People build homes when they have money, when their consumption increases. Also, we can see that India is still playing it safe. Credit card loans account for only 4%, which is a good sign. In the US, people are even taking groceries on credit.Another sign of a consumption-driven economy is the increase in digital retail transactions. The leakages in the system have been plugged with the help of Aadhar cards and Direct Benefit Transfers, which identify the beneficiaries and deposit money directly into their bank accounts. This way, we have saved $27 billion by preventing leaks in the system. Additionally, demand-supply growth has been consistent in every industry for the past four quarters, leading to the highest GST collection in April 2023. Rental yields have also improved, and with the circulation of cash, consumption, and people’s lifestyles, the wave of entrepreneurship in India is quite strong.

How to invest in real estate for beginners and maximize your return

Investment in real estate can be considered wrong for several reasons. Let’s discuss some of them: Investing in the wrong type of real estate: Different types of properties, such as agricultural land, residential flats, or commercial buildings,….

Investing in the wrong type of real estate: Different types of properties, such as agricultural land, residential flats, or commercial buildings, have varying potential for returns. For example, residential flats may have low rental yields, while agricultural land in developing areas may offer higher growth potential. It is important to consider the type of property and its location before making an investment.

Investing in Tier 1 cities: Tier 1 cities, like Mumbai or Bangalore, are already well-developed and often have high property prices. The potential for significant returns may be limited in such cities compared to developing Tier 2 or Tier 3 cities. Investing in cities with growth potential can provide better opportunities for returns on investment.Choosing the wrong location within a city: Even within a city, the location of the property can significantly impact its potential for growth. Investing in the outskirts or areas with upcoming development can offer better returns compared to properties in the city center where prices may already be stagnant.Lack of proper research and due diligence: It is crucial to conduct thorough research before making any real estate investment. This includes physically visiting the property, checking land records, verifying ownership, and ensuring legal compliance. Hiring a lawyer or real estate expert to review documents and provide guidance can help avoid potential scams or fraudulent schemes.Investing more than one can afford to hold: Real estate investments can take time to yield significant returns. It is important not to invest money that is needed in the short term, as property values may fluctuate, and liquidity can be limited. It is advisable to have a long-term perspective and consider holding the property for at least 5-7 years to maximize returns.These points highlight some of the reasons why real estate investments can go wrong. By considering factors such as property type, location, market conditions, and conducting thorough research, investors can make informed decisions and maximize their chances of profitable returns.