The Indian government will always act as a facilitator to strengthen the startup ecosystem and not act as a regulator, Commerce and Industry Minister Piyush Goyal said on Tuesday. He said that stakeholders of this ecosystem will do self-regulation.
While addressing the Startup20 summit here, the minister said, the message that should go out from here is the joint commitment of all the 22 nations, who have participated, that the governments will not be looking at impeding the progress of the work that startups are doing.
The best way is to be out of the startup ecosystem, he said, adding the government is not expected to start regulating or dictating or micro-managing the ecosystem. "Our role will always be that of a facilitator and I do not see the government becoming an administrator or a regulator of this sector," he said.
The job of the government is to give an initial push or early-stage finance to budding entrepreneurs. The minister also said that India provides a unique opportunity to the world of startups.
India has the advantage of skilled talent, affordability, growing startup culture, and aspirational population, Goyal said. He invited the startups of the world to come and explore opportunities in India.
The Startup20 Shikhar Summit, organized by the Startup20 Engagement Group under the India G20 Presidency, kicked off on Monday here.
In a moment of pride for every Indian, a homegrown Indian company will for the first time rank among the world's most valuable banks after completing a merger, marking a new challenger to the largest American and Chinese lenders occupying the coveted top spots.
The titie-upf HDFC Bank Ltd. and Housing Development Finance Corp. creates a lender that ranks fourth in equity market capitalisation, behind JPMorgan Chase & Co., Industrial and Commercial Bank of China Ltd. and Bank of America Corp., according to data compiled by Bloomberg. It's valued at about $172 billion.
With the merger likely effective July 1, the new HDFC Bank entity will have around 120 million customers - that's greater than the population of Germany. It'll also increase its branch network to over 8,300 and boast of total headcount of more than 177,000 employees.
New York has leapfrogged Hong Kong as the world's most expensive city to live in as an expat, while skyrocketing rents saw Singapore crash into the top five, according to a new study.
Inflation and rising accommodation costs were cited as reasons for New York topping ECA International's Cost of Living Rankings for 2023, while Geneva and London remained in third and fourth places.
Singapore has leaped into the top five most expensive cities to live.
In Picture: H.E. Mr. GANBOLD Dambajav, Ambassador Extraordinary and Plenipotentiary of Mongolia to the Republic of India (right) being felicitated by Dr. Vijay Kalantri, Chairman, MVIRDC WTC Mumbai at an interactive meeting in WTC Mumbai
“India and Mongolia are spiritual neighbours and our relationships 4,500 years old when Mongolian monks traveled to India to study at Nalanda University. To revive our ancient relationship, the Mongolian President is planning a state visit to India around November this year. We can collaborate in areas such as food security, energy security, mining and infrastructure. We invite Indian companies to mine our rich gold, coal, lithium, copper and other reserves. Some of these minerals are critical raw materials for semiconductors, electric vehicle batteries and electronic goods. India’s GAIL is setting up an oil refinery in Mongolia and we can explore further collaboration to meet the energy security of both countries. Mongolia can also export its world-renowned Cashmere yarn to India for further processing and export of readymade garments,” said H.E. Mr. GANBOLD Dambajav, Ambassador of Mongolia to India at an interactive meeting in WTC Mumbai.
The Ambassador invited Indian companies to partner in the areas of agriculture, animal husbandry and dairy production as Mongolia has a 75 million livestock population. “Geographically, Mongolia is half the size of India and we need technology and manpower from India for the cultivation of crops and dairy farming to meet the food security of the world,” the Ambassador pointed out.
In the area of railway infrastructure, Indian companies can build East-West railway links to connect Mongolia with Southeast Asian countries. “Mongolia already has north-south rail connectivity, linking Russia to China. We want Indian companies to build an East-West railway corridor to connect our country with South East Asia,” the Ambassador proposed.
H.E. Mr. Dambajav suggested that Indian companies consider Mongolia as the gateway to Russia, China Europe and other advanced countries. “Mongolia has duty-free market access to Russia and China. It also has concessional market access to European Union for 2500 products.”
The Ambassador invited the Indian entertainment industry to explore film production in Mongolia. He said, “Mongolian government reimburses up to 50% cost of producing movies, television serials, documentaries and other shows in Mongolia.”
Tourism is another potential sector to boost bilateral relations. “Mongolia is one of the few countries in the world gifted with pristine nature, rich wildlife, beautiful lakes, snowcap and Gobi desert. Indian tourists can get visas by paying a nominal service charge. We are in discussion with Air India to launch a direct flight service between Mongolia and India. Our religious connection is conducive to promoting tourists to India as Mongolians consider Dharamshala, Ganges and Bodh Gaya as sacred places,” the Ambassador added.
Earlier in his welcome remarks, Dr. Vijay Kalantri, Chairman, MVIRDC WTC Mumbai pointed out, “India-Mongolia bilateral trade volume is hardly USD 35 million, which is below the true potential. Indian business community can explore the alternative trading route via Russia (bypassing China) to strengthen our trade relationship with Mongolia. India can also explore the huge untapped mineral resources such as lithium, copper, gold and coal in Mongolia. Digital economy, semiconductor, mining and batteries for electric vehicles are promising sectors for mutual collaboration.”
Dr. Kalantri suggested that Indian companies set up semiconductor manufacturing plants in Mongolia by making use of the available raw material in that country and then exporting these semiconductors to India for assembly into final electronic goods.
Dr. Kalantri proposed that WTC Mumbai can host a roadshow during the proposed visit of the Mongolian President to India later this year. The roadshow will have conferences, panel sessions, exhibitions, investor meetings and B2B sessions to promote two-way commercial relations.
Speaking on this occasion, Ms. Rupa Naik, Executive Director, WTC Mumbai suggested that the roadshow will be an ideal occasion to showcase the trade, tourism, infrastructure and agriculture potential of Mongolia. The meeting was also attended by Mr. Kishor Mokashi, Chief (Relations), Consulate of Mongolia in Mumbai.
Social media platform Twitter is now worth just $15B, almost the 1/3 rd what billionaire Elon Musk paid for the social-media platform, according to Fidelity, which recently marked down the value of its equity stake in the company.
Twitter has struggled financially since Musk took over. After saddling the company with $13 billion of debt, Musk's erratic decision-making and challenges with content moderation led advertising revenue to decline by 50 percent, Musk said in March. An attempt to recoup that revenue by selling Twitter Blue subscriptions has so far failed to take off. At the end of March, less than 1 percent of Twitter's monthly users had signed up.
Elon Musk has acknowledged he overpaid for Twitter, which he bought for $44 billion, including $33.5 billion in equity. More recently, he said Twitter is worth less than half what he paid for it. It's unclear how Fidelity arrived at its new, lower valuation or whether it receives any non-public information from the company. Fidelity first reduced the value of its Twitter stake in November, to 44 percent of the purchase price. That was followed by further markdowns in December and February.
Twitter officials didn't specifically respond to a request for comment. Musk's investment in Twitter is now worth $8.8 billion, according to the Bloomberg Billionaires Index, which uses Fidelity's valuation to calculate the value of his holding. Musk spent more than $25 billion to acquire an estimated 79 percent stake in the company last year.
The Finance Ministry has notified 21 countries, including the US, UK and France, from where non-resident investment in unlisted Indian startups will not attract angel tax.
The list, however, excludes investment from countries like Singapore, Netherlands and Mauritius. The government had in the Budget brought overseas investment in unlisted closely held companies, except DPIIT recognised startups, under the Angel Tax net.
Following that, the startup and venture capital industry sought exemption for certain overseas investor classes.
The Central Board of Direct Taxes (CBDT) on May 24 notified classes of investors who would not come under the Angel Tax provision.
Excluded entities include those registered with Sebi as Category-I FPI, Endowment Funds, Pension Funds and broad-based pooled investment vehicles, which are residents of 21 specified nations, including the US, UK, Australia, Germany and Spain, as per the notification.
The other nations mentioned in the notification are Austria, Canada, Czech Republic, Belgium, Denmark, Finland, Israel, Italy, Iceland, Japan, Korea, Russia, Norway, New Zealand and Sweden.
The CBDT notification comes into effect on April 1.
Unified Payments Interface (UPI) has been a game-changer in India's payment ecosystem, transforming the way people transact in the country. The Narendra Modi government has been at the forefront of promoting digital payments and encouraging people to move towards a cashless economy. Taking it further, the Indian government recently announced a partnership with Singapore to link UPI and PayNow, Singapore's digital payment system, which allows cross-border payments between the two countries. This is anticipated to revolutionise the world of payments.
The linking of UPI and PayNow will enable Indian and Singaporean businesses and individuals to transfer money instantly and securely across borders without intermediaries or expensive remittance fees. This collaboration will boost trade and investment between the two countries and open new avenues for economic cooperation and strengthen ties between India and Singapore. Singapore is among India's largest trade and investment partners in ASEAN and accounted for 27.3 % of our overall trade with ASEAN in 2021-22, with bilateral trade between the two countries reaching $30 billion in 2022. Businesses in both nations will be able to interact more easily and effectively with the integration of UPI and PayNow, possibly increasing trade and investment flows.
Unified Payments Interface (UPI) is a revolutionary payment mechanism introduced by the Government of India in 2016, which allows users to transfer money instantly between bank accounts via their mobile phones. It has revolutionized the way Indians transact, making it more convenient, efficient, and secure. Since its launch, UPI has emerged as the most popular payment system in India as huge as having over $150 billion worth of transactions in January 2023 alone and an average of 2,348 UPI transactions per second!
The user-friendly interface of UPI that allows users to transfer money instantly without any hassle, operations on a 24/7 basis, always making it accessible to users, has made it a success story of India. The UPI has also passed the test of time in aspects of security and data protection. End-to-end encryptions and multi-factor authentication have also silenced critics in the West who have long questioned India's commitment to secure and private personal data.
The Narendra Modi government has been instrumental in promoting digital payments and encouraging people to move away from cash-based transactions. The government’s initiatives to promote UPI and other digital payment methods in India, such as the introduction of BHIM (Bharat Interface for Money) app, which is a UPI-based digital payment app, recently launched e-rupee and campaigns like Digital India and Jan Dhan Yojana to promote digital payments and financial inclusion have been far-reaching.
DBT (Direct Bank Transfer) scheme on the premise of UPI and digital payments has startled the globe in terms of the policy. India has made over $334 billion worth of direct transfers to citizens in a span of nine years mostly through digital payments, which is unimaginable for any welfare state around the world. This growth is driven by the adoption of UPI and other digital payment methods, which has enabled people who previously had limited access to banking services to participate in the digital economy.
The integration of UPI and PayNow is revolutionary for the global payments sector. It demonstrates the potential of UPI to become a global payment platform and sets a precedent for other countries to follow. As UPI continues to grow and evolve, it has the potential to become a standard payment method for businesses and individuals around the world. This would be a new path shown by India positioning us as a global financial leader. This new agreement is a wise policy decision that demonstrates India's commitment to promoting international trade and investment.
The partnership between India and Singapore is also expected to create new opportunities for businesses in both countries. Indian businesses will be able to expand their reach into Singapore and tap into the city-state's vibrant business ecosystem, while Singaporean businesses will also have the advantage to access the fast-growing Indian market. This partnership will also benefit individuals, particularly those who are working or studying in the two countries, as they will be able to transfer money easily and securely across borders.
In conclusion, the UPI mechanism has been a success story in India, and it has several perks that have made it a popular payment method amongst the largest user base of the world. The Narendra Modi government has played a crucial role in promoting UPI and digital payments in India, and the recent linking of UPI and PayNow with Singapore is a positive development that will boost trade and investment between the two countries. It is an exciting time for UPI and digital payments, and the world is watching India's progress with interest.
The writer is currently a Student of Public Policy, at University College London.
In April 2022, when Russia invaded Ukraine resulted in economic disruption all around the world, the downfall of the tech sector in America, and global inflation somewhere attract global attention towards the need for a substitute for the dollar as a global currency. As a response to respective incidents, India made a policy to shift its foreign transaction from the dollar to domestic and local currencies. In the series of actions, India demonstrates a 'Special Rupee Vostro Account 'with Malaysia in April 2023, as Malaysia is 16th largest trading partner of India. India also commenced talks with Russia for the same. But Russia adjourned the talks of trade in the rupee with India. Russia claims that its share of India in global trade is just 2% in merchandise and 4% in services. Such an agreement results in a $40 billion deficit to Russia. So the talks have been suspended by Russia.
However, it was a golden opportunity for India as India's imports of crude oil from Russia has been a significant rise of 33.4% in April 2023. Russia is a major exporter of defense equipment to India. It is actually an admonishing incident for India to encourage export potential. This policy of India to trade in local currencies can be considered as a compere of future global trade structure.
As India has intended to achieve 10% share in global export. The New FTP aims to $2 trillion target of foreign trade by 2030. In order to accomplish all the respective objectives India needs to explore its export potential. A stable market condition and an incentivized economic structure facilitate to set up CEPA (Comprehensive Economic Partnership Agreement) and free trade bilateral agreements with nations. Appropriate implementation of planned and designed policies is vital to gain prosperity back and making happen rupee a global currency for international trade.
The writer is a student of Masters in Economics.
The world is gradually becoming cashless, and India is one of the frontrunners in this direction. In a cashless economy, a substantial fraction of transactions is carried out without exchanging currency notes or coins. So, a cashless economy is not essentially a cash-strapped economy. The primary objective of a cashless economy is to ensure that people and institutions carry out their transactions, payments, and settlements without holding cash. However, currency notes and coins of smaller denominations continue in circulation even in a cashless society.
Theoretically, money is demanded in an economy for three motives, namely precautionary motive, transaction motive, and speculative motive. In a cashless economy, these motives are fulfilled through a variety of other methods of transactions. Transactions without cash are done mainly through digital information exchange systems, which can occur in multiple forms like credit cards, debit cards, electronic wallets, Universal Payment Interface (UPI), National Electronic Funds Transfer (NEFT) and Real-Time Gross Settlement (RTGS) and Immediate Payment Service (IMPS), or any other such means. However, traditional means like checks and demand drafts also continue in the cashless system.
In the year 2008, the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) established a non-profit organisation called the National Payments Corporation of India (NPCI) to facilitate internet-based digital transactions and develop a robust payment and settlement infrastructure in India. NPCI got a shot in the arm during the COVID phase when online transactions in India peaked in June 2020. UPI, BHIM UPI, BharatQR, the Cheque Truncation System (CTS), RuPay, and most recently, Digital Rupee, are some important initiatives undertaken by NPCI. Further, from 2015 onward, the cashless system of payment in the country got a boost under the Digital India Mission. Among other digitisation objectives, the mission ambitiously aims for universal digital literacy in the country. The digitisation of the economy will steer the economy into a new era of development and greater integration with the rest of the world. At present, about 10 percent of the economic activities in India are fully digitised.
Digital Rupee
In her budget speech in February 2022, Finance Minister Nirmala Sitharaman announced the farsighted plan to launch the digital rupee (e? or eINR), a Central Bank Digital Currency (CBDC). In this direction, on 1st December, 2022 RBI announced the launch of the first retail digital rupee (e?-R) on a pilot basis at selected locations in closed user groups. The launch of the digital rupee is the most significant milestone in the direction of a cashless economy in the country. Further, RBI is expected to launch the Digital Rupee for Wholesale (e?-W) for institutional financial settlements like inter-bank settlements. Thus, CBDC is different from virtual currencies like cryptos (Bitcoins, Ethereums, Solana, and Polkadot etc.) which are neither legal tender nor supported by central banks. Cryptos may be acceptable in closed user groups, but not universally. So far, nine countries have established a CBDC, while many are seriously exploring this alternative.
Pros and Cons
A cashless economy brings advantages and challenges. The most important advantage of a cashless system is the substantial reduction in the cost of financial transactions, the cost of printing, and the cost of safely circulating currency notes from the bank note press to the rest of the country.
The cashless system is an elixir for the banking system. The issue department of the RBI, which is responsible for the proper and efficient management of currency note issue, will be left with almost no work. Further, the cost of the currency verification and processing system (CVPS), shredding, and recycling of soiled currency notes will also be significantly reduced. Apart from that, the cost of physical security will also be reduced, while the cost of cyber security will steeply go up. RBI estimates show that a full-fledged rollout of CBDC will eliminate ?4,984.80 crore security printing cost of physical currency currently borne by the general public, businesses, banks, and RBI. With a reduced cost of handling currency notes, CBDC will reduce the cost of the entire banking system, and a metamorphosis of the banking infrastructure is expected. Less employees and fewer branches with a little hard cash in smaller denominations will be sufficient because the bulk of our payments will be made in digital rupee. ATMs either will not be required or may be needed to dispense money in digital currency from an account to the device of the account holder. Money held in digital currency form will be like currency in hand and will not bear any interest; however, the system of interest-bearing savings accounts will continue in an existing manner.
A cashless system is a panacea for the formalisation of the informal sector and for detecting gray market transactions and tax evasion. Estimates show that the informal sector, with 80 percent of the labour force engaged, accounts for about 43 percent of the GDP at present. Formalisation will not only broaden the tax base but will also reduce tax evasion. Thus, the revenue productivity of the tax system will go up. With better coverage and reduced gray market transactions, the input tax rebate system under the Goods and Services Tax (GST) will become seamless, and the distortionary cascading effect will diminish. Real estate sector transactions will particularly reflect the genuine market value of property. Consequently, the revenue of the states and the center from stamp and registration duties and capital gains, respectively, will increase abundantly. Receipts from personal income tax will also increase as underreported income will be visible from the cashless digital transactions. In a cashless environment, corruption and illegal and criminal activities involving money will come under an inescapable scanner. Overall, the size of the black economy in the country will greatly decrease.
On the darker side, individual privacy will be significantly reduced in a cashless system. Spending details can be easily tracked, and financial behavior can be monitored. Leakage or theft of this private information may expose any individual to unimaginable financial risks. Cyber frauds may often mutate and appear in a variety of forms. And, people who have no access to internet-enabled devices (like beggars) will be at an immediate disadvantage in this system.
Forthcoming Challenges
The success of a cashless economy will greatly depend on digital literacy, seamless connectivity, public confidence in digital currency, and enhanced protection from cyber-attacks and fraud. At present, India, with a 75 percent literacy rate, is an unfit case for a full-fledged cashless economy, let alone digital literacy. Each adult and youngster in the country needs to be not only literate but also digitally literate and capable of affording a smartphone-like service with stable and seamless internet connectivity. According to Statista.com, the present smartphone penetration in India is about 55 percent, and it is expected to reach 96 percent by 2040.
Prime Minister Jan Dhan Yojna has so far ensconced about 50 crore beneficiary account holders in the web of the financial system. Further, the Jan Dhan-Aadhaar-Mobile (JAM) trinity has shown a transmuting effect on the digitisation of the financial system in the county. Now, the adoption of CBDC by the masses in the country is only a matter of acquaintance with basic digital technology and the availability of internet-enabled devices. Further, the existing legal framework pertaining to banking and payments needs to be revamped to align it with the emerging requirements of a cashless economy. Apart from that, contract laws also need to be in harmony with banking and payment laws.
Cues from the West
Hundreds of countries in the world are aspiring to a cashless society. According to FinTech Magazine, Sweden, the United Kingdom, Finland, Norway, the Netherlands, and Denmark are way ahead in cashless and contactless transactions. They are highly likely to become fully cashless soon. In the cashless societies of the West, cash is used by a few vendors and largely by older people. Even youngsters use apps for their pocket money. Consequently, cash in circulation in these countries has substantially decreased in recent years. Sweden has halved its cash in the last five years. People in the West are very adaptive to technologies and capable of affording digital devices.
The transition to a cashless economy is an ongoing process that requires an analysis of the potential advantages, problems, and challenges, in addition to actions that ensure universal access to the requisite technology and infrastructure with adequate safeguards in the digital economy. At this juncture, given the low literacy rate and a variety of other challenges, it seems that the pace of financial digitisation in India will remain slow and gradual and it will take many years for India to usher into a full-fledged cashless economy. Hastened attempts in this direction may be agonizing and vexing for many.
Semiconductor Chips are being lately referred to as “the oil of the 21st Century”. As per Pat Gelsinger, the CEO of Intel, these semiconductor chips will play a central role in international politics in the upcoming decades because of their scarcity. These chips are part of most electronics, ranging from smartphones to cars to washing machines.
Then, it can be asked that “why isn’t every country producing it?” The answer to this is both a simple and a complicated one. The simple version is that making chips is incredibly difficult and it’s getting tougher. The more complicated answer is that it takes years to build semiconductor fabrication facilities and billions of dollars and even then the economics are so brutal that you can lose out if your expertise is even a fraction behind the competition. And this is the reason that only a few companies have been able to do it successfully. In fact, major tech firms like Qualcomm, Apple, Nvidia, Sony, and AMD use the same company for manufacturing their chips. This company is TMSC. This Taiwanese company dominates the global production of semiconductor chips with a 54% market share. This means that companies such as AMD, Nvidia, Apple, and others only design their chips - which in turn get manufactured by TSMC.
To understand this a little better, chip manufacturing can be considered a completely separate mini-industry in itself. In Chip manufacturing, the chips are produced by factories that are often referred to as “Foundries”, Chip Designing Industry involves everything related to forming chip designs, and in Assembly and Testing, chips get Assembled, packaged, and tested by an OSAT firm (often known as Outsourced semiconductor assembly and testing). Many firms do each of these steps exclusively only.
Taiwan has monopolized the production part - which is the hardest part of the whole process and that is because it not only requires investing the highest capital but also requires cracking the toughest technology. And it’s not just about producing the chips, it's about producing the most advanced chips. In fact, TSMC and Samsung are the only companies capable of producing the most advanced chips in the world right now. In fact, TSMC is the exclusive supplier of one of the most advanced chips used by Apple in its products.
There are other countries dominating other areas in this semiconductor ecosystem. For example - The U.S.A holds a dominant share in chip design and electronic software tools, ASML Holding, a company based out of the Netherlands, holds a monopoly on the supply of machines required for chip production and Japan is a key supplier of essential chemical and circular silicon wafers used in producing chips. All these countries have had a few things in common for the last few years - a top-notch infrastructure, high capital investment, and a vision supported by high risk-taking abilities.
Covid-19 brought a lot of problems, one of them being a mismatch in demand and supply, which made this chip shortage a global problem. Every country has now understood the importance of these chips, it's clear that every country is going for a slice of the pie in this multi-billion dollar Industry. Even India attempted to take some steps for this technology at the right time. Back in 1984, the Indian government started Semiconductor Complex Ltd. (now known as SCL) but an unfortunate accident in the plant and several years of red tape, lack of infrastructure, and visionary leadership led to India missing the bus.
But, there is a silver lining here, as India seems to have done a decent job in chip designing, as most global semiconductor design companies have design centers in India - Intel, Broadcom, AMD, and MediaTek to name a few. Also, this Indian design talent makes up to 20 % of the world's semiconductor design engineers, as per – the Ministry of Electronics and Information Technology. So in attempts to be "Atmanirbhar" and become self-reliant on at least some of the mini industries in this whole semiconductor ecosystem, the government is taking certain steps such as the Incentive scheme, called the Production Linked Incentive Scheme. In short, the government is trying to provide incentives in the form of - capital investment, training of human resources, and infrastructure support for the companies. But this inventive model is used by other countries.
To discuss some current progress, some talks are going on with Taiwan right now along with a couple of agreements among Ventures and Consortiums (involving partnerships between foreign and Indian companies). But what’s to be seen is if the execution by the government and promises by foreign parties actually sync up. What I mean by this is that one of these JVs, a venture between Foxconn - Vedanta, is planning to set up a production plant in India but there were recently some roadblocks in their plans because of some nonagreement over what type of government incentives would be provided for the plant. Foxconn is technically an expert assembler of mobile phones and does not really possess high-end semiconductor manufacturing tech or experience. With this recent nonagreement, It seems that a plant by another such consortium will be the first Indian Fab. This one is between an Indian fund i.e. Next Orbit Ventures Fund and Tower Semiconductors, which is an Israeli semiconductor chip manufacturing company. Also, recently a Tamil Nadu-based semiconductor manufacturing company Polymatech has agreed to invest $1 billion to start its chipset manufacturing and packaging facility in Tamil Nadu. However, this progress and process will require patience. And finally, a handful of homegrown semiconductor design companies such as Terminus Circuits, Saankhya Labs, and Steradian Semiconductors are finally being recognized. So what’s to be seen is how Indian companies and the Indian Semiconductor ecosystem as a whole grows in this future.
“These days, many of us spend more time online than in the actual world. Classes, meetings, and birthday celebrations are all held in cramped rectangles. And many of us switch out the work computer for a different one after spending the day staring at a screen.
In the new digital age, this is exhilarating entertainment.”
Digital life is, simply, real life. The reality of living with technology, especially in computerized/ digital form, is occasionally described as a stoked reality(Jurgenson, 2012a), which means that digital technology has enhanced, or stoked, the terrain to a significant extent. For people who live in technology- ferocious societies, this happens all the time. But the verity is that indeed before the age of robotization, life has been stoked by technology.
From the foremost of times, mortal beings have created tools that would enable them to make harbors, use fire, populate the natural world, transmit information to one another, and defend their homes — in short, to do whatever it took to survive. As is bandied in Chapter 2 of Chapter 2 of Superconnected, the invention of spoken and also written languages allowed people to make lesser sense of the raw marvels they encountered every day and to communicate in decreasingly further abstract and complex ways across time and space. People have always used tools and technologies to make and compound their societies. In ultramodern societies, all kinds of ICTs enable the transmission of generalities and ideas.
A lot of the original excitement around social media platforms over the last few decades arose from a rather idealistic notion of their capacity to facilitate interactions that would otherwise be difficult or impossible. Individuals can use social media to "meet," connect, and work with others in organizations and countries that would otherwise be inaccessible. Microblogs, for example, facilitated certain political activities in the Middle East during Arab Spring in 2011, while social networking sites allow people with uncommon medical disorders to share information and support. Online contacts are at the root of the establishment of new organizations as well as the emergence of fresh social links among existing communities.
Online experiences, and the social connections and environments created with the assistance of digital technologies, are critical components of modern techno-social life in which people’s responses are genuine, meaningful, and often profound. When we are online, our brains and bodies think and feel, and act. We may experience bodily fatigue or pain, worry or be delighted, make a friend or become involved in an altercation, strengthen a relationship or destroy one. What a person does online influences the rest of one’s life because it is a part of that life, not a separate thing. It is important, then, to think about and describe this environment in ways that highlight its realness—for example, not to call the face-to-face realm IRL (which means “in real life” and wrongly promotes the idea that the face-to-face sphere is more real than the digital).
In my interviews with people who find and form connections over the internet, I heard many descriptions of how unexpectedly deep and authentic these connections could become. For example, a member of an online group dedicated to academics told me, that I’ve come to recognize, and sometimes, to like very much. This has nothing to do with spelling or mental brilliance or even depth of faith, for that matter. I think what draws me to some people here is their authenticity and their willingness to be imperfect. But even the ones I don’t especially like have touched my heart to the extent that I sometimes worry about them and wish I could reach through the computer and help them, somehow. Now that I think about it, it is amazing how real some of these distant, unseen, frequently anonymous message board posters have become. But, of course, they are real! (Chayko, 2002, p. 114)
There is a long-held, widespread myth that social media-enabled online interactions replace, compete with, or otherwise decrease traditional relationships (Wang & Wellman, 2010). One prevalent issue is that kids are not gaining crucial communication and social skills since they exclusively connect through social media features such as pokes, tweets, and SMS. Similar issues have been raised concerning social gatherings in public places such as restaurants and parks when people are present but ignoring one another because they are distracted by their mobile devices. Such tales reinforce the notion that online social media interactions may replace and harm offline engagement and relationships.
Although there are circumstances in which social media networks permit new and/or replace offline interactions, it is more frequent for online relationships to supplement offline ones (Wang & Wellman, 2010). In the 1980s and 1990s, studies of online communities, email, and discussion forums suggested that social media-enabled online relationships were poor substitutes, associated with dysfunctional interaction behaviors (e.g., flaming), loss of identity cues, feeble relationships with family members living under the same roof, smaller friendship groups, and increased levels of depression and hopelessness.
The authentic and deeply particular nature of the connections and communities that are formed in digital spaces has been a common theme throughout my exploration. People also told me that they felt that they could get to know veritably well indeed those individuals whom they encountered simply online, absent any face-to-face commerce. In response to my request for a description of the “ particular ” nature of the online relationship, one youthful woman mused,
How can it be particular? It feels like it is. However, “Oh, gee, If people said. I wouldn’t say, “
Oh well, I met him formally. ” I’d say, “ Oh yes, I know him.”(Chayko, 2002,p. 86)
Because online social connections are so frequently endured as absolutely real and deeply particular, it's but a coming step to perceive digitally encountered others to be present. The internet and digital media grease the perception and experience of propinquity and presence in ways that transcend the physical. When connecting online, those with whom we connect are frequently perceived to be “ really there.” This sense that the other is “ really there ” is called social presence. According to the social presence proposition advanced by communication scholars John Short, Ederyn Williams, and Bruce Christie, a communication medium can feed its druggies several ways to come apprehensive of one another’s presence. They can know one another’s rates, characteristics, and inner countries and begin to perceive and witness one another as socially present( Short, Williams, & Christie, 1976). This proposition, which anteceded the internet and digital media, has ago been streamlined to explain the variety of ways that people can use these technologies to be cognitively present to one another indeed as they're physically distant(see Chayko, 2002). Feeling the nearness or presence of others across distances has been called perceived propinquity(O’Leary, Wilson, & Metiu, 2014) and, when electronic media facilitates the connection, electronic contiguity( Korzenny, 1978; Walther & Barazova, 2008). In a large-scale transnational study, professors of business Michael O’Leary, Jeanne Wilson, and Anca Metiu set up that associates working hundreds of long hauls piecemeal from one another communicated as frequently, on average, as associates who were located in the same office. Also, associates separated by distance felt the same position of participated identity and sense of cognitive and affective closeness as those who worked together in the same position. individualities at work, the experimenters determined, can form strong bonds despite being separated by analogous goods that have been set up when popular culture is the interceding element among physically separated people. participating in common interests in a TV show, movie, or type of music can bring about a strong sense of participated identity and community among addicts. They, too, can come to feel that they inhabit a social world with one another. Artistic products and votes that can inspire similar involvement among druggies have an excellent chance of popular success. Communication and media professor Henry Jenkins calls this “ the art of world-making ”( 2006,p. 21; for further on this, see Chapter 9 of Superconnected).
Close relationships are defined by greater self-disclosure and the exchange of personal facts over time. However, the lack of face-to-face connection affects the verification of the information transmitted. Individuals can therefore easily construct false or misleading representations of themselves, supply false or misleading information, or purposely omit particular facts to reap personal gains. Some social media platforms are even designed to conceal an individual's genuine identity. Individuals in Virtual Worlds and other virtual worlds, for example, are represented by avatars whose visual image is purely fictitious. However, whether deliberate or unintentional, lying regarding self-identity can have negative consequences in the context of relationships. As a result, deception - which is easy to accomplish on social media networks - may result in the relationship being terminated.
It is common for time spent online to have an intimate, emotionally rich dynamic. Intimacies and emotions are exchanged profusely and nearly instantaneously online. In fact, they serve as a kind of “glue” for the relationships that form there. This “emotional glue” is especially important in the absence of the “physical glue” that face-to-face interaction can provide. Digital environments and the experiences created in them can be extremely, perhaps surprisingly, intimate. As social creatures who desire interpersonal closeness, human beings are highly creative in finding and forging intimacy, including in digital settings. While a wide variety of types of relationships can form online, spanning the spectrum of human intimacy, even the most fleeting of relationships can be highly intimate when those involved disclose a great deal about themselves and feel that they have come to understand much about the other person as well. It is this kind of personal disclosure and understanding and the positive progression of a relationship (even if it does not turn out to be especially long-term) that render it intimate and meaningful. Short-term relationships can be highly intimate, just as they can be offline.
Ending a relationship on social media requires no effort or direct interest. However, the reasons for ending a virtual relationship are generally less likely to be related to problems between relationship partners. Conflicts involving personal dispositions (e.g., one of the parties being inconsiderate) or particular actions (e.g., being late) may be less important in social media platforms, however excessive engagement might be regarded as unpleasant and lead to the dissolution of a relationship. Individuals are also more inclined to stop a relationship formally as a result of information overload produced by a partner's intensive communication activities, such as a steady stream of Twitter messages or Facebook updates.
The human need and desire to form intimate relationships is so strong that it happens all the time online, often without great difficulty. Smartphones and social media play a big part in this. Since many people take smartphones with them wherever they go, they can use small bits of time to check in on others and/or provide updates, whether by Facebook or Twitter, or some other social media platform. Interestingly, this is how intimacy tends to develop face-to-face as well—in the small, everyday moments of connection as much as in grand gestures and experiences. And with a device with which to connect and network always at one’s side, it has never been easier to remain in constant contact with others, even a large number of others, and to find that intimacy has developed, sometimes quite unexpectedly and swiftly (see Chayko, 2002, 2008; Fortunati, 2002; Fox, 2001).
However, analysing the usage and effect of social media networks necessitates acknowledging that human communication is not a single mechanical operation. How a social media system is utilized, what information is transferred, what interaction occurs, and how that information sharing affects individuals, and their behavior is all necessarily impacted by the relationships that people have with one another. Social media use and the connections it facilitates exist within the framework of family relationships, professional ties, partnerships, acquaintance relationships, and friendships. Understanding the full potential, impact, and limitations of social media platforms necessitates an examination of how they are affected by and affect human relationships. More than just information exchange, social media networks are important because of the ways they leverage and transform relationships. Emotional responses in technology use are, thus, a complex process. Of course, all mortal relations are complex, messy, changeable, and fraught with threat. exemplification, unfortunate, indeed fatal issues of digitally- told emotional responses for illustration, connections that have ended at the suggestion of online infidelity or lives that have ended when online bullying or public embarrassment came too important to take. Events that take place in a digital terrain have profound consequences for people and are, again, incontrovertibly real.
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