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Why Do Countries Slap Tariffs on Each Other?

Ever wondered why countries put taxes on stuff coming from other places? Yeah, it’s a bit confusing, but it actually makes sense when you look at it from their perspective. Tariffs are basically taxes that governments slap on goods coming from other countries. The reasons behind it aren’t as random as they seem—there’s a whole logic to it! Protecting Local Businesses One big reason countries use tariffs is to protect their own industries. Imagine local businesses trying to sell their stuff while cheaper products are flooding in from abroad. It’s tough to compete! By adding a tariff, the government makes imported goods more expensive, so people are more likely to buy local. Take the U.S. putting tariffs on imported steel and aluminum—they did it to keep their own steel industry from getting buried by cheaper alternatives. Fixing Trade Deficits Sometimes countries are buying way more than they’re selling to other places, which messes up their trade balance. To fix that, they might a...
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How Having Multiple Time Zones Would Boost the Indian Economy

India is a vast country with diverse regions, stretching almost 3,000 km from east to west. Yet, it follows just one time zone—Indian Standard Time (IST). This means that regardless of how far east or west you are, everyone follows the same clock. While this may seem practical, it actually creates several economic challenges. Let’s explore how having multiple time zones could benefit the Indian economy. Why One Time Zone is a Problem The biggest problem with a single time zone in India is the difference in sunrise and sunset times across regions. For example, in the northeastern states, the sun rises and sets much earlier than in western parts like Gujarat. This mismatch forces people in the east to start their day late and work well past daylight, increasing energy consumption and affecting productivity. A study by the National Institute of Advanced Studies found that a separate time zone for the eastern part of India could save up to 2.7 billion units of electricity every year. This ...

How to Export Goods and Services Without Paying GST Legally

How to Export Goods and Services Without Paying GST Legally Exporting goods or services to other countries can be challenging due to various compliance requirements, including Goods and Services Tax (GST). When exporting from India, GST can increase the invoice value, making your products more expensive for buyers. Additionally, buyers in some countries may have to pay import duties, making the total cost significantly higher. However, there are legal ways to avoid paying GST while exporting, thereby reducing costs and making your goods or services more competitive. One of the best ways is using a Letter of Undertaking (LUT) , and another is exporting with GST payment and later claiming a refund. This article explains both processes in detail. Is GST Applicable on Exports? No, exports are classified as "zero-rated supplies" under GST. This means that even though the GST rate  for domestic sales applies, the tax is effectively not charged on exports. Exporters can either:...