Inflation is referred to as a rise in the general level of prices or a sustained rise in the general level of price. In case, general price level rises, each unit of money buys fewer goods and services. Consequently, Inflation ...
Early-stage biotech ventures face daunting challenges including scientific and technical risks associated with novel technologies, regulatory complexities demanding rigorous safety and efficacy standards, and substantial capital needs for research, clinical trials, and scaling production. Market entRead more
Early-stage biotech ventures face daunting challenges including scientific and technical risks associated with novel technologies, regulatory complexities demanding rigorous safety and efficacy standards, and substantial capital needs for research, clinical trials, and scaling production. Market entry presents hurdles such as understanding competitive landscapes, pricing strategies, and navigating complex healthcare reimbursement systems. Intellectual property management is critical for protecting innovations amidst competitive pressures. Building skilled, multidisciplinary teams and forming strategic partnerships are essential amidst talent shortages and the need for specialized expertise. Uncertainties in scientific outcomes, clinical trial results, and market adoption heighten investor risk perception, impacting fundraising. Addressing ethical implications of genetic engineering and novel therapies, including safety, equity, and societal acceptance, is pivotal for regulatory approval and public trust. Successfully managing these challenges demands strategic planning, resilience, and a robust execution strategy to achieve sustainable growth and innovation in the biotech sector.
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Rising inflation directly doesn't lead to increase in india's GDP, Rather it leads too increase in nominal GDP of the country which is calculated at current year prices of final goods and services, that neans inflation leads to increase in nominal GDP even if the productivity of the country is stagnRead more
Rising inflation directly doesn’t lead to increase in india’s GDP,
Rather it leads too increase in nominal GDP of the country which is calculated at current year prices of final goods and services, that neans inflation leads to increase in nominal GDP even if the productivity of the country is stagnent
Which makes Nominal GDP of a country as an illusionary indicator of growth in an economy while real indicator is increase in Real GDP which is calculated at base year prices (unaffected by inflation)
Infact sometimes Increase in Nominal GDP of a country results in negetive growth in following ways
1. Increase in cost of production
As a result of increase in general price levels producers would face increase in cost of production, This leads to lower profit margins which makes the producers difficult to survive
2 Lower consumer spending in long term
Rise in general price levels leads to decrease in purchasing power of consumer if income doesn’t increase proportionately, as a result consumer tends to reduce the consumption
3. Rise in interest rates
To curb the inflation RBI mmay increase the interest rates, so that it makes costly to consumer to borrow and it tends to lower the consumer spending
4. Economic unstability
Inflation leads to uncertainty in economy which makes it difficult to make decisions for consumers as well as producers which results in. Economic unstability
GOVERNMENT can take necessary steps to curb the inflation through fiscal policy so as to reduce uncertainty in market by
• Increasing taxes on income to reduce the purchasing power of consumers
• decresing govt spending or investments
• borrowing more from public to reduce the money supply in markets
Through monitery policy by
• increase in repo rates or reverse repo rates
• controlling open market operations
• increasing interest rates etc
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