Indian Economy: News and Discussion

[Screambowl]

once it comes into babu domains, kharcha paani problem starts again. mid and low level corruption is very much alive and kicking.

Most probably for the same reason, which is industrial laws. I have never heard about them much in life. Mercantile law seems to be outdated in India .

 

[sorcerer]

‘Indian elephant getting bigger’

Australian envoy hails India’s rise as good news for the Indian Ocean region
In 20 years, India will be one of the major geopolitical players in Asia, providing some balance to the existing power equations in the region, an Australian envoy has said.

Barry O’Farrell, the special envoy of New South Wales, the southeastern Australian state, to India, said that India’s rise is good news for Australia as well as the Indian Ocean region.

Asked if the slowdown in the Indian economy would affect the potential for enhanced trade relationship between the two countries, Mr. O’Farrell said: “I don’t think so. We all are in danger. But if you take a long-term view, India is moving towards only one direction. The Indian elephant is getting bigger. It’s good for defence contracts, it’s good for Australia, it’s good for the Indian Ocean region,” Mr. O’Farrell, who was the former chief minister of NSW, told The Hindu here.

According to Mr. O’Farrell, both India and Australia are committed to tap this potential. “Given India’s strengths, its population and trajectory, there’s enormous potential for India-Australia relationship.”

Business week

The envoy was in India to take part in the Australia Business Week which took place from August 28 to September 1 in multiple cities. A business delegation from NSW accompanied Mr. O’Farrell seeking business partnerships with Indian entities. NSW has has established sisterly relationship with two Indian states — Maharashtra and Gujarat.

India-Australia trade stands at $14.1 billion, but it is largely skewed towards Australia. In 2016, India’s exports to the country stood at 2.9 billion, while India imported goods worth 11.15 billion from Australia. Asked if there are any policy level interventions to address the trade imbalance, Mr. O’Farrell said it’s a mutual concern. “Good relationship is a balanced relationship. But there are some structural issues. We are a big country with a small population. Our consumption is smaller.”

Besides trade, Mr. O’Farrell sees a number of sectors where India-Australia ties can prosper. These include defence, education, agriculture and tourism.

At present there are around 15,000 Indian students in Australia. “The world-class education system in Australia is attracting many Indians,” he said. Tourism is also a thrust area. In 2016, 259,900 Indian travellers visited Australia, according to data by Tourism Australia.

Key defence partner

On defence, Australia has identified India as a key partner to maintain stability and rule-based international order in the Indo-Pacific region. Asked what’s Australia’s position on the recent India-China border tensions over Doklam in the Himalayan region, Mr. O’Farrell said he could not speak about border issues of countries except Australia. “Australia is very strong in protecting its borders.”
http://www.thehindu.com/todays-paper/tp-national/indian-elephant-getting-bigger/article19597592.ece

 

[Prashant12]

Forex kitty rises to record USD 394.55 billion

The country's foreign exchange reserves swelled by USD 1.148 billion to a new lifetime high of USD 394.55 billion for the week ended August 25 on the back of a healthy rise in core currency assets.

The total reserves had declined by a marginal USD 211.1 million to USD 393.401 billion in the previous reporting week. They had touched an all-time peak of USD 393.612 billion in the week before.

The foreign currency assets (FCAs), a major component of the overall reserves, increased by USD 1.142 billion to USD 370.833 billion for the week under review, RBI data showed.

Expressed in US dollar terms, FCAs include the effect of appreciation or depreciation of non-US dollar currencies such as the euro, the pound and the yen held in the reserves.

Gold reserves remained unchanged at USD 19.943 billion.

The special drawing rights with the International Monetary Fund (IMF) increased by USD 2.3 million to USD 1.499 billion, the apex bank said.

The country's reserve position with the IMF also rose by USD 3.6 million to USD 2.273 billion, it said.

http://www.business-standard.com/ar...record-usd-394-55-billion-117090101153_1.html

 

[Prashant12]

Forex kitty swells by $3.57 bn, closes in on $400 bn-mark


The forex reserves surged by a massive USD 3.572 billion to touch a record high of USD 398.122 billion for the week ended September 1, on account of rise in foreign currency assets, RBI data showed today.

In the previous week, the reserves had increased by USD 1.148 billion to USD 394.55 billion.

Last month, American brokerage Morgan Stanley had forecast that the reserves might touch the USD 400 billion mark in the week to September 8. And if the rise in the kitty continues with the same speed, it may cross that magic numbers next week.

The foreign currency assets (FCAs), a major component of the overall reserves, increased by USD 2.808 billion to USD 373.641 billion for the reporting week, according to the data.

Expressed in US dollar terms, FCAs include the effect of appreciation or depreciation of non-US dollar currencies, such as the euro, the pound and the yen held in the reserves.

After remaining unchanged for many weeks, gold reserves also rose by USD 748.3 million to USD 20.691 billion.

The special drawing rights with the International Monetary Fund (IMF) increased by USD 6.5 million to USD 1.506 billion, the apex bank said.

The country's reserve position with the IMF also increased by USD 9.8 million to USD 2.283 billion, it said.


http://www.business-standard.com/ar...-closes-in-on-400-bn-mark-117090801040_1.html

 

[lcafanboy]

How Doklam dents China's bullet train chase against Japan in India
ECONOMICTIMES.COM| Updated: Sep 08, 2017, 01.54 PM IST


Japanese Prime Minister Shinzo Abe's visit to India on September 14 will reflect the fast-changing equations in the Asia-Pacific after Doklam.

Abe will be in the country for the Mumbai-Ahmedabad High Speed Rail Project, also called the bullet train project. After the 73-day standoff at the Sikkim border, India is veering away from China and towards Japan in several fields. This shift can be noticed in the bullet train projects as Japan can upstage China in winning other projects in India, which China is also eyeing.

China and Japan have been competing to bag high-speed rail contracts in the region. China beat Japan last year to bag a project in Indonesia. Both are locked in a contest for the Singapore-Kuala Lumpur high-speed rail. Thailand has signed two contracts with Chinese state enterprises for a high-speed rail project.

China and Japan will be battling for a Thailand-Malaysia high-speed railway link too.

Japanese trains are considered safer but costlier while China is considered to have better expertise in building in challenging conditions.

According to a Bloomberg report, Japan’s sales pitch revolves around quality: its network boasts a record of zero fatal accidents in more than half-century of history. Japanese trains also require low lower repair expenses which offset initial higher costs.


While Japan has bagged the first bullet train project for Mumbai-Ahmedabad route, China is eyeing other proposed routes. It is carrying out feasibility studies for Chennai-New Delhi and New Delhi-Mumbai routes.

Doklam conflict may be over but it has changed India-China ties. India will remain wary of China for a long time. That's why Japan can beat China in India for bullet train projects. While earlier India would have chosen between China and Japan after considering all the aspects such as price, efficiency and maintenance costs carefully, now it can lean towards Japan.

Since India and Japan are coming closer in maritime trade and military cooperation, India will prefer Japan to China in other deals too. So, Doklam may cost China a few mega train projects in India.

Indian projects will help Japan stay afloat in the train diplomacy as China is beating it in several other countries. An India-Japan axis is emerging in the Asia-Pacific. Both the countries have plans to counter China's ambitious One Belt One Road project and are also willing to cooperate on investing in Africa where China has major interests. If India-Japan axis grows stronger, Chinese companies might have to face the heat in other countries in the region where China is easily bagging infrastructure deals now.

Abe's visit to India right after Prime Minister Narendra Modi's China visit is telling in itself.

http://economictimes.indiatimes.com/articleshow/60422487.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

 

[sorcerer]

How Doklam dents China's bullet train chase against Japan in India
ECONOMICTIMES.COM| Updated: Sep 08, 2017, 01.54 PM IST

Could also be a good partnership for Asia Africa Growth Corridor where India and Japan are working on tandem.

 

[sorcerer]

Japan can make a substantive difference to India’s nuclear industry: S Jaishankar
"In this regard, the two countries have agreed to cooperate closely to promote connectivity, infrastructure and capacity-building in the regions that occupy the inter-linked waters of the Indo-Pacific," said S Jaishankar.



Ahead of the Japanese Prime Minister’s visit, India said on Friday that Japan can make a substantive difference to its nuclear industry, and identified cooperation in civil nuclear energy and defence as two domains that portend the future direction of the bilateral ties. Speaking at the ‘India-Japan Colloquium’, Foreign Secretary S Jaishankar also noted that the growing convergence of views between Japan and India has the capacity to drive Asia’s economy and development and stimulate the global growth.

“In this regard, the two countries have agreed to cooperate closely to promote connectivity, infrastructure and capacity-building in the regions that occupy the inter-linked waters of the Indo-Pacific,” the foreign secretary said.

Cooperation in civil nuclear energy and in defence are two domains that portend the future direction of our ties and the difference that Japan can make to our nuclear industry can be quite substantive, he said.

India and Japan signed a civil nuclear deal during Prime Minister Narendra Modi’s Japan visit in November 2016. The deal, which enabled Japan to export nuclear power plant technology to India, came into force in July this year. “Japan’s openness to supply India with military technology reflects the high level of confidence that the two countries have developed in each other,” Jaishankar said.

Asserting that the interaction between India and Japan now has a significance beyond the bilateral and the Asia-Africa growth corridor was just one example, he said drawing on all these factors, India and Japan stand ready to move their relationship forward with determination. “Prime Minister Abe’s forthcoming visit will present an occasion to demonstrate this concretely. But in an increasingly uncertain world, they are now purposefully heading towards a more collaborative future. Their success in doing so has significant implications for the world,” he said.

Abe is expected to undertake a three-day visit from September 13. Accompanied by Prime Minister Narendra Modi, he is expected to go to Ahmedabad, where both the leaders will take part in the groundbreaking ceremony for the ambitious Mumbai-Ahmedabad High Speed Rail Project, commonly referred to as the bullet train project, on September 14.


The groundbreaking ceremony (bhoomi-pujan) for the project, coming up at an estimated cost of Rs 98,000 crore, will be held at a site near the Sabarmati railway station in the city.


http://indianexpress.com/article/in...indias-nuclear-industry-s-jaishankar-4834652/

 

[ezsasa]

Japan can make a substantive difference to India’s nuclear industry: S Jaishankar
"In this regard, the two countries have agreed to cooperate closely to promote connectivity, infrastructure and capacity-building in the regions that occupy the inter-linked waters of the Indo-Pacific," said S Jaishankar.



Ahead of the Japanese Prime Minister’s visit, India said on Friday that Japan can make a substantive difference to its nuclear industry, and identified cooperation in civil nuclear energy and defence as two domains that portend the future direction of the bilateral ties. Speaking at the ‘India-Japan Colloquium’, Foreign Secretary S Jaishankar also noted that the growing convergence of views between Japan and India has the capacity to drive Asia’s economy and development and stimulate the global growth.

“In this regard, the two countries have agreed to cooperate closely to promote connectivity, infrastructure and capacity-building in the regions that occupy the inter-linked waters of the Indo-Pacific,” the foreign secretary said.

Cooperation in civil nuclear energy and in defence are two domains that portend the future direction of our ties and the difference that Japan can make to our nuclear industry can be quite substantive, he said.

India and Japan signed a civil nuclear deal during Prime Minister Narendra Modi’s Japan visit in November 2016. The deal, which enabled Japan to export nuclear power plant technology to India, came into force in July this year. “Japan’s openness to supply India with military technology reflects the high level of confidence that the two countries have developed in each other,” Jaishankar said.

Asserting that the interaction between India and Japan now has a significance beyond the bilateral and the Asia-Africa growth corridor was just one example, he said drawing on all these factors, India and Japan stand ready to move their relationship forward with determination. “Prime Minister Abe’s forthcoming visit will present an occasion to demonstrate this concretely. But in an increasingly uncertain world, they are now purposefully heading towards a more collaborative future. Their success in doing so has significant implications for the world,” he said.

Abe is expected to undertake a three-day visit from September 13. Accompanied by Prime Minister Narendra Modi, he is expected to go to Ahmedabad, where both the leaders will take part in the groundbreaking ceremony for the ambitious Mumbai-Ahmedabad High Speed Rail Project, commonly referred to as the bullet train project, on September 14.


The groundbreaking ceremony (bhoomi-pujan) for the project, coming up at an estimated cost of Rs 98,000 crore, will be held at a site near the Sabarmati railway station in the city.


http://indianexpress.com/article/in...indias-nuclear-industry-s-jaishankar-4834652/

Foreign secretary is hardly mentioned in the media, but this guy is a champion.

I will post a video of a American senate hearing on South Asia which happens yesterday , I was surprised how well policy directions between India and US are aligned for future of South Asia. I think Jaishankar has to be credited for much of this alignment.

 

[IndianHawk]

Foreign secretary is hardly mentioned in the media, but this guy is a champion.

I will post a video of a American senate hearing on South Asia which happens yesterday , I was surprised how well policy directions between India and US are aligned for future of South Asia. I think Jaishankar has to be credited for much of this alignment.

You must read his speech about India being a leading power. It was electrifying.

Here are few gems that I remember "cowardice was presented as caution and inaction was termed as prudence(by previous govts ) . " This guy know what he is doing.!!!

 

[IndianHawk]

https://www.bloomberg.com/view/articles/2017-09-08/india-s-youth-are-the-world-s-future

Although this article is about population but in age of human resources population is economics itself.

And it got me thinking. By 2025 china population will stabilize and a steady decline will begun. China has been the most populous nation of the world for decades now. The quantity has a quality of its own. It gave china a certain awe . India was just behind but who cares for second place right!!

By 2025 India will not just be the most populous nation but also the most populous political entity ever in the entire history of human kind . India is the only entity which might cross a 1.5 billion people mark

India will steal chinese thunder as well as youth. While china was always closely followed by India to be replaced by India.
India actually has no one even close to follow. Indonesia or USA won't be able to cross 400 million mark. China would decline further and other nations are just too small. That means India will remain the most populous nation on earth for centuries to come

And still it will collective be much younger than china or USA or Europe.

Today Indian median age is 27 , china was that young guess when ??? In 1995.
We all know what happened in next 20 years.

Economically we are trailing china by 11years . In 2006 china had the GDP what India has today. But thanks to our youth we have longer time to grow . And we'll have no competition by any upcoming India.

Chinese median age today is 37 years we will reach that point only in 2050s. :biggrin2:
By then chinese median age will be in 40s and we will reach their only by2080s.

That means we have 50 years of youth before we get as old as Europe is today.

And even then we still shall have most youth by absolute numbers.

If connect all the dots together i have it very clear we are going to be the last and greatest superpower on the earth for at least next few centuries.

I think this should go to a new thread now. But I was too excited to share it right now.

 

[Yggdrasil]

https://www.bloomberg.com/view/articles/2017-09-08/india-s-youth-are-the-world-s-future

Although this article is about population but in age of human resources population is economics itself.

And it got me thinking. By 2025 china population will stabilize and a steady decline will begun. China has been the most populous nation of the world for decades now. The quantity has a quality of its own. It gave china a certain awe . India was just behind but who cares for second place right!!

By 2025 India will not just be the most populous nation but also the most populous political entity ever in the entire history of human kind . India is the only entity which might cross a 1.5 billion people mark

India will steal chinese thunder as well as youth. While china was always closely followed by India to be replaced by India.
India actually has no one even close to follow. Indonesia or USA won't be able to cross 400 million mark. China would decline further and other nations are just too small. That means India will remain the most populous nation on earth for centuries to come

And still it will collective be much younger than china or USA or Europe.

Today Indian median age is 27 , china was that young guess when ??? In 1995.
We all know what happened in next 20 years.

Economically we are trailing china by 11years . In 2006 china had the GDP what India has today. But thanks to our youth we have longer time to grow . And we'll have no competition by any upcoming India.

Chinese median age today is 37 years we will reach that point only in 2050s. :biggrin2:
By then chinese median age will be in 40s and we will reach their only by2080s.

That means we have 50 years of youth before we get as old as Europe is today.

And even then we still shall have most youth by absolute numbers.

If connect all the dots together i have it very clear we are going to be the last and greatest superpower on the earth for at least next few centuries.

I think this should go to a new thread now. But I was too excited to share it right now.

How is having a massive number of unemployed, uneducated people a good thing? Why are we celebrating having a gigantic population? What exactly is there to celebrate in it?

 

[Adioz]

https://www.bloomberg.com/view/articles/2017-09-08/india-s-youth-are-the-world-s-future

Although this article is about population but in age of human resources population is economics itself.

And it got me thinking. By 2025 china population will stabilize and a steady decline will begun. China has been the most populous nation of the world for decades now. The quantity has a quality of its own. It gave china a certain awe . India was just behind but who cares for second place right!!

By 2025 India will not just be the most populous nation but also the most populous political entity ever in the entire history of human kind . India is the only entity which might cross a 1.5 billion people mark

India will steal chinese thunder as well as youth. While china was always closely followed by India to be replaced by India.
India actually has no one even close to follow. Indonesia or USA won't be able to cross 400 million mark. China would decline further and other nations are just too small. That means India will remain the most populous nation on earth for centuries to come

And still it will collective be much younger than china or USA or Europe.

Today Indian median age is 27 , china was that young guess when ??? In 1995.
We all know what happened in next 20 years.

Economically we are trailing china by 11years . In 2006 china had the GDP what India has today. But thanks to our youth we have longer time to grow . And we'll have no competition by any upcoming India.

Chinese median age today is 37 years we will reach that point only in 2050s. :biggrin2:
By then chinese median age will be in 40s and we will reach their only by2080s.

That means we have 50 years of youth before we get as old as Europe is today.

And even then we still shall have most youth by absolute numbers.

If connect all the dots together i have it very clear we are going to be the last and greatest superpower on the earth for at least next few centuries.

I think this should go to a new thread now. But I was too excited to share it right now.

We do need to start thinking about replacement levels of fertility in Indian urban setting. Right now Kolkata fertility rate is lower than that of Japan. Other metros fare better, but are much below the fertility rate of 2.1 needed to maintain replacement levels. We will rise, but we need to ensure that we do not also see a population decline post this demographic boost. Lets learn from the USA and aim to maintain 2.1 fertility to ensure stabilization of population size.

How is having a massive number of unemployed, uneducated people a good thing? Why are we celebrating having a gigantic population? What exactly is there to celebrate in it?

Agreed, its a potential asset but also a potential risk. Once we start rolling in the right direction regarding job creation, the risk will come down. We will need to continue to upskill our labour force to keep pace with disruptions created by automation. But all that starts after we are able to create enough jobs. IMHO, it will not be that difficult once private investment picks up after NPA problem resolution.

 

[Vijyes]

How is having a massive number of unemployed, uneducated people a good thing? Why are we celebrating having a gigantic population? What exactly is there to celebrate in it?

In order to have military might, we need massive population. As long as we have enough food, we are happy.

 

[IndianHawk]

How is having a massive number of unemployed, uneducated people a good thing? Why are we celebrating having a gigantic population? What exactly is there to celebrate in it?

People of course need to be skilled. We can't stop this population from rising in medium term anyway. We can only leverage you. People will get people educated. That is how it works.

We might have to tweak economic models to create employment but that will happen.

Everything aside what is the alternative.
Population world wide will start falling soon. Russia is already loosing 7-8 lakh people annually. Japanese population is shrinking. In entire Europe and China fertility rates are much below replacement levels. What will be left in the world without people. Our economic progress is worthless if population starts declining. It's like the wealth of a childless men .
And since this will happen all around the world there won't even be orphans to adopt:biggrin2:

Sharing economy will reduce the exploitation of resources. It will also reduce need to earn in excess.

The important thing is for civilization to survive everything else can be managed.
We think we are being smart by planning for growth of next few years . What will happen to the nation in 400-500 years. Ask the Russians their population will probably be quarter of what it is today.

If our parents thought like this we wouldn't be here debating.:biggrin2:

We were right to be scared of population growth when we had no clue where will it end?? Today we know that it will end for sure with falling fertility levels. And it will fall much faster than it rose.
We need to control it's fall . We must learn from mistake that china , Europe Japan and Russia have made.

Even in Iran fertility rate is 1.68 children per women. Iran will need immigration soon

 

[IndianHawk]

Lets learn from the USA and aim to maintain 2.1 fertility to ensure stabilization of population size.

USA has fertility rate of 1.86 children per women. It is only immigration which is keeping USA on it's legs. :biggrin2:

If USA turn it's back on immigration it will face a disaster. We need to freeze our fertility rate right where it is that is 2.2 .
We can't afford any more improvement. Now anymore population control will mean population elimination in the long run.

 

[IndianHawk]

In south korea fertility rate are 1.26
That means for every 200 people (100M+100F ) they will have only 126 children. A loss of some 35% of population. Now these 126 will only have 73 children(as fertility rate will drop to 1.1) and they will only have 36 and next 18...9...5..3....2....1....native population extinct.

 

[Vijyes]

In south korea fertility rate are 1.26
That means for every 200 people (100M+100F ) they will have only 126 children. A loss of some 35% of population. Now these 126 will only have 73 children(as fertility rate will drop to 1.1) and they will only have 36 and next 18...9...5..3....2....1....native population extinct.

You are assuming status quo and continuity which need not be correct

 

[Vijyes]

People of course need to be skilled. We can't stop this population from rising in medium term anyway. We can only leverage you. People will get people educated. That is how it works.

We might have to tweak economic models to create employment but that will happen.

Everything aside what is the alternative.
Population world wide will start falling soon. Russia is already loosing 7-8 lakh people annually. Japanese population is shrinking. In entire Europe and China fertility rates are much below replacement levels. What will be left in the world without people. Our economic progress is worthless if population starts declining. It's like the wealth of a childless men .
And since this will happen all around the world there won't even be orphans to adopt:biggrin2:

Sharing economy will reduce the exploitation of resources. It will also reduce need to earn in excess.

The important thing is for civilization to survive everything else can be managed.
We think we are being smart by planning for growth of next few years . What will happen to the nation in 400-500 years. Ask the Russians their population will probably be quarter of what it is today.

If our parents thought like this we wouldn't be here debating.:biggrin2:

We were right to be scared of population growth when we had no clue where will it end?? Today we know that it will end for sure with falling fertility levels. And it will fall much faster than it rose.
We need to control it's fall . We must learn from mistake that china , Europe Japan and Russia have made.

Even in Iran fertility rate is 1.68 children per women. Iran will need immigration soon

USA has fertility rate of 1.86 children per women. It is only immigration which is keeping USA on it's legs. :biggrin2:

If USA turn it's back on immigration it will face a disaster. We need to freeze our fertility rate right where it is that is 2.2 .
We can't afford any more improvement. Now anymore population control will mean population elimination in the long run.

The solution for all this is simple - produce 10 children, raise an army and wage war to conquer the world. With large enough population, any amount of losses can be quickly recovered by reproducing heavily and one can relentlessly attack for hundreds of years till world is conquered. That is what muslims are doing and that is what others should be doing too

 

[IndianHawk]

You are assuming status quo and continuity which need not be correct

Yes . In macau fertility rate has fallen to 0.95 children per women but that's an small island. It's hard to raise fertility rate.

So most probably they will fall even faster.
Women are only going to be more empowered , more free less fertile with time.

 

[IndianHawk]

That is what muslims are doing and that is what others should be doing too

You are not paying attention even muslims are struggling with fertility rate. In Iran it's 1.68 in Bangladesh it's 2.14 ( less than India) in Turkey it's 2.05. only some African nation and porkies are breeding at higher rates.

@Razor can moderate please move the population related discussion to a new thread.