Tracking Indian Economy till general elections 2019

Screambowl

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But still I am earning only 7000 rupees monthly that's average per capita even after so much economy growth. Why income is not rising? How will I pay to travel on roads they built or how will I pay my electricity bill which is coming from solar power. And How FDI has helped my pocket?

I really need to learn this logic of income. Am I getting less paid because some one is snatching my correct income right?
 

KumarG

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But still I am earning only 7000 rupees monthly that's average per capita even after so much economy growth. Why income is not rising? How will I pay to travel on roads they built or how will I pay my electricity bill which is coming from solar power. And How FDI has helped my pocket?

I really need to learn this logic of income. Am I getting less paid because some one is snatching my correct income right?
Unfortunately, this has to do with the way capitalism is structured. In an ideal scenario, GDP increases will show a lag to "trickle down" to the consumers - especially when (a) the population is big so the total GDP has to be split multiple ways, and (b) GDP increases are coming from Investment and Govt Spending, and not from Net Exports or Consumption.

India is currently in the phase of using the factors in (b) above to build up capacity for consumption and net exports. Once the capacity is built up, (the theory goes) that should translate into jobs (not necessarily high paying) and either (i) more money in the pockets of consumers or (ii) more consumers with access to money. That is where you come in - with either an increase in your income, or with opportunities for more jobs.

All this takes a long time - a decade or a few, perhaps. The situation in India's case is made worse by other factors too - fractional trickle-down (where the rich get richer), corruption, population, bureaucracy n red tape, unstable political climate, structural deficiencies (complicated tax, labour laws, land laws, business laws, etc).

One really has to zoom out and see that Indian growth really started in mid-90s, and suffered massively in the last decade. Add all the mentioned factors and the nature of capitalism, and you can see where your dissatisfaction stems from. And how much patience is required which the general populace, unfortunately, does not seem to have.

The other option is Socialism or Communism, where the Govt gives you a job slab with million other people, but we have all seen how that plays out...
 

ezsasa

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These Congi morons led by Goofy (RG), Manish Tiwari and Diggy will say it's all 'jumla' - propaganda of the RSS and BJP to show Cong in poor light!!
why go that far!!!
we have some here at DFI who are opposing for the sake of opposing, either these are kids who have no clue how the outside world works or they are just opposing politically.
 

KumarG

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But still I am earning only 7000 rupees monthly that's average per capita even after so much economy growth. Why income is not rising? How will I pay to travel on roads they built or how will I pay my electricity bill which is coming from solar power. And How FDI has helped my pocket?

I really need to learn this logic of income. Am I getting less paid because some one is snatching my correct income right?
Also, at the risk of sounding like an uncle, I'd suggest:
a) start looking at which sectors will be primed for expansion in the next 2 decades
b) types of jobs that will be created in those sectors
c) how you can position yourself for those jobs with the right skillset or with the right path

If you are a coder, for example, screw the IT service industry - how about defence coding, machine learning, neural networks, functional programming, etc. Catch the next wave not the last one.
 

sorcerer

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But still I am earning only 7000 rupees monthly that's average per capita even after so much economy growth. Why income is not rising? How will I pay to travel on roads they built or how will I pay my electricity bill which is coming from solar power. And How FDI has helped my pocket?

I really need to learn this logic of income. Am I getting less paid because some one is snatching my correct income right?
Well!
this is where the transparency can aid a bit.
I can tell you another reality which happens to my friend.

He works in a famous christian school which is private school with CBSE affiliation.(the school is run by some Italian church or ministry whatever)
Now he gets paid some 12000.00 per month.
but he told me that, whenever he is drawing salary, he signs a blank payment voucher every month..meaning according to records the amount written on it by the school administrations could be higher thus siphoning off the difference in the amount.
Such cases do happen in different flavors in almost many companies small and large!

So such manipulations does happen and this is where digital transactions can come to the rescue for common employees to an extent.
 

Screambowl

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India is currently in the phase of using the factors in (b) above to build up capacity for consumption and net exports. Once the capacity is built up, (the theory goes) that should translate into jobs (not necessarily high paying) and either (i) more money in the pockets of consumers or (ii) more consumers with access to money. That is where you come in - with either an increase in your income, or with opportunities for more jobs.
Thanks for a clear explanation!

So it's like Accenture US pays as per number of employs allowed in Accenture India. But Accenture India recruits double the number of employs and there income gets divided but number of Jobs increased (increase in opportunity)


One really has to zoom out and see that Indian growth really started in mid-90s, and suffered massively in the last decade. Add all the mentioned factors and the nature of capitalism, and you can see where your dissatisfaction stems from. And how much patience is required which the general populace, unfortunately, does not seem to have
from above point I have learnt that,

we need to increase the opportunity and same time access to better income. Do we need some laws regarding this? Like hourly minimum income must be specified?

Because if rich is getting richer that means some rightful share of income is going to some one else illegally.
 

Screambowl

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If you are a coder, for example, screw the IT service industry - how about defence coding, machine learning, neural networks, functional programming, etc. Catch the next wave not the last one
So if I am Msc physics or Maths I should lean towards quantum computation. Because that's what new is. And less opportunities and more income.
 

KumarG

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Thanks for a clear explanation!

So it's like Accenture US pays as per number of employs allowed in Accenture India. But Accenture India recruits double the number of employs and there income gets divided but number of Jobs increased (increase in opportunity)
You're welcome!

It is probably not as simplistic - Accenture US would probably be the "revenue generator" for the company with greater value-adding jobs, which tend to be well-paid too. Accenture India would be lower value jobs. In addition, the characteristics of the labour market in the US are different from that in India - saturation (workforce related), quality (from experience, education, etc), legal (labour laws, etc). But yes, employers hold much more power in India because of these.

from above point I have learnt that,

we need to increase the opportunity and same time access to better income. Do we need some laws regarding this? Like hourly minimum income must be specified?

Because if rich is getting richer that means some rightful share of income is going to some one else illegally.
One of the consequences of the top-down nature of capitalism is that the capital holders will always hold more power, since they decide where and when to employ the capital. So the rich will always get richer (more or less).

What can be influenced in such a system is to incentivise the capital holders to re-employ their capital into productive ventures (socially as well as economically). One of the biggest incentives is linking profits to transparency (GST, ease-of-doing-business) and governance (reduce conflicts-of-interest and abuse), both of which have been lacking in the Indian economy. Once these are sorted and the market becomes more efficient over time, you would automatically see the positive trickle-down effects.

Govt welfare many a time works to make the problems worse. In complex systems, it is almost impossible to isolate the causalities correctly and administer isolated solutions.

So if I am Msc physics or Maths I should lean towards quantum computation. Because that's what new is. And less opportunities and more income.
Well, if you are looking for better paying jobs then steer clear of pure sciences or math. Those are good if you are looking to progress in academia and research.

For money, go for applied sciences and math. For physics, yes, one of the options would be quantum computing. In the more immediate term, the options could be - signals processing, modelling and validation, neural networks / machine learning, nano-tech, particle / nuclear physics, etc.
 

Screambowl

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Well, if you are looking for better paying jobs then steer clear of pure sciences or math. Those are good if you are looking to progress in academia and research.

For money, go for applied sciences and math. For physics, yes, one of the options would be quantum computing. In the more immediate term, the options could be - signals processing, modelling and validation, neural networks / machine learning, nano-tech, particle / nuclear physics, etc.

And what do you do?
You have knowledge of both fields in science and economics. Impressive!
 

Screambowl

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Accenture US would probably be the "revenue generator" for the company with greater value-adding jobs, which tend to be well-paid too. Accenture India would be lower value jobs. In addition, the characteristics of the labour market in the US are different from that in India - saturation (workforce related), quality (from experience, education, etc), legal (labour laws, etc). But yes, employers hold much more power in India because of these.

Yeah I was giving an example that , the money is used to rather increase more job opportunities and there fore division in income happens. If there is profit than this profit is used to create more employment than increasing the pay.
And it would really take time unless until India increases it's export.
What can be influenced in such a system is to incentivise the capital holders to re-employ their capital into productive ventures (socially as well as economically). One of the biggest incentives is linking profits to transparency (GST, ease-of-doing-business) and governance (reduce conflicts-of-interest and abuse), both of which have been lacking in the Indian economy. Once these are sorted and the market becomes more efficient over time, you would automatically see the positive trickle-down effects.
Digital India may be a help to rationalise the income channel. But still my experience says that there are people and businessmen who would rather pay in cash to blue color employees than via bank transfer. Because these people want to pay less. And it still happens.

If an employee complaints then he loses his job so why would he complaint?
 

sorcerer

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Black Money: Benami property secret informers to get reward of Rs 1 crore

NEW DELHI: The Centre is planning to give out cash rewards to the tune of Rs one crore to secret informers who provide tip offs to investigative agencies in connection with Benami Properties.

The initiative is likely to be announced by next month.

A senior Central Board of Direct Taxes (CBDT) official who is part of the policy making said on condition of anonymity, "An informer will get minimum Rs 15 lakh and maximum Rs 1 crore.

According to the official, the information will have to be acute and identity of the informer will be kept secret. The department will never disclose the identity as this could endanger the informer. The Benami Property Law introduced last year lacked this provision. It is a common practice by the Enforcement Directorate, the Income Tax department and Directorate of Revenue Intelligence to reward informers. The reward, however, is not so lucrative."

Finding Benamidars is a herculean task for Income tax officials as well as the administration. A senior CBDT official told ANI, "It would be a lot easier, faster and effective method of operation if we take the help of informers. If we have an attractive award prize for informers then our task will become easy and we will start cracking Benami property holders nationwide, he further added. This policy is now with Finance Ministry. Once it gets approval from Finance Ministry and Final nod by Finance Minister, it will be announced by CBDT. An announcement is expected to be made by October end or first week of November."

The Benami Transactions (Prohibition) Amendment Act, 2016 came into effect from1st November, 2016.


Several benami transactions have been identified since the coming into effect of the amended law. The benami properties attached include deposits in bank accounts and immovable properties.

http://economictimes.indiatimes.com...reward-of-rs-1-crore/articleshow/60797725.cms
 

sorcerer

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Finance Ministry to refund Rs 600 cr to exporters in a few days
The finance ministry has decided to refund Rs 600 crore of taxes to exporters in the next few days to help them tide over problems on account of GST implementation, a government official said today.


The finance ministry has decided to refund Rs 600 crore of taxes to exporters in the next few days to help them tide over problems on account of GST implementation, a government official said today. The ministry is also working on a scheme for refund of taxes for exporters. “Rs 600 crore will be refunded in the next few days. Going forward, refunds will be given in three days. A new scheme for exporters will be placed before the GST Council on October 6,” the official said. The refund scheme will be such that it is legally tenable and financially viable, the official added.

The move assumes significance as Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai has said that if refund does not start flowing immediately, then about Rs 60,000-65,000 crore would be stuck by the end of October.

FIEO has time and again stated that exporters are facing liquidity problems due to the implementation of the Goods and Services Tax (GST).

Earlier they used to get ab-initio exemption on indirect taxes. But now under the GST regime, they have to pay first and then seek refund, which is a time consuming and cumbersome process.

http://www.financialexpress.com/eco...-rs-600-cr-to-exporters-in-a-few-days/866573/
 

KumarG

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And what do you do?
You have knowledge of both fields in science and economics. Impressive!
You are far too kind! Ironically, I am unemployed these days, having blown a large part of savings and career in an entrepreneurial venture.

Yeah I was giving an example that , the money is used to rather increase more job opportunities and there fore division in income happens. If there is profit than this profit is used to create more employment than increasing the pay.
And it would really take time unless until India increases it's export.
Agree, it will take 2-3 decades to see decent-sized changes on the ground.

Digital India may be a help to rationalise the income channel. But still my experience says that there are people and businessmen who would rather pay in cash to blue color employees than via bank transfer. Because these people want to pay less. And it still happens.

If an employee complaints then he loses his job so why would he complaint?
It's not just about digitisation - that's just one of the ways to increase transparency n governance. Large parts of the system need reform. To take your example further, how does the govt ensure that small businesses can not operate solely in cash? There must be incentives for SME banking. If their accounts are in the banks, then ways can be sought to increase accountability for cash withdrawals by showing audit trails. All this, of course, assumes the layers of entity interactions outside the bank are, in turn, efficient and corruption-free.
 

Screambowl

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To take your example further, how does the govt ensure that small businesses can not operate solely in cash? There must be incentives for SME banking. If their accounts are in the banks, then ways can be sought to increase accountability for cash withdrawals by showing audit trails. All this, of course, assumes the layers of entity interactions outside the bank are, in turn, efficient and corruption-free.
AFAIK even the EU markets , particularly the small businesses are not much accounted. Small business still operate on cash. It's one's choice whether he can deposit in bank or keep it in hand.
 

dhananjay1

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Black Money: Benami property secret informers to get reward of Rs 1 crore

NEW DELHI: The Centre is planning to give out cash rewards to the tune of Rs one crore to secret informers who provide tip offs to investigative agencies in connection with Benami Properties.

The initiative is likely to be announced by next month.

A senior Central Board of Direct Taxes (CBDT) official who is part of the policy making said on condition of anonymity, "An informer will get minimum Rs 15 lakh and maximum Rs 1 crore.

According to the official, the information will have to be acute and identity of the informer will be kept secret. The department will never disclose the identity as this could endanger the informer. The Benami Property Law introduced last year lacked this provision. It is a common practice by the Enforcement Directorate, the Income Tax department and Directorate of Revenue Intelligence to reward informers. The reward, however, is not so lucrative."

Finding Benamidars is a herculean task for Income tax officials as well as the administration. A senior CBDT official told ANI, "It would be a lot easier, faster and effective method of operation if we take the help of informers. If we have an attractive award prize for informers then our task will become easy and we will start cracking Benami property holders nationwide, he further added. This policy is now with Finance Ministry. Once it gets approval from Finance Ministry and Final nod by Finance Minister, it will be announced by CBDT. An announcement is expected to be made by October end or first week of November."

The Benami Transactions (Prohibition) Amendment Act, 2016 came into effect from1st November, 2016.


Several benami transactions have been identified since the coming into effect of the amended law. The benami properties attached include deposits in bank accounts and immovable properties.

http://economictimes.indiatimes.com...reward-of-rs-1-crore/articleshow/60797725.cms
Looks like BJP doesn't want to win in 2019.
 

YagamiLight

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http://www.financialexpress.com/eco...pression-claims-warning-govt-last-may/860618/


The Indian economy is heading for a “major depression” and it can “crash” soon if efforts are not put to revive it, BJP leader Subramanian Swamy has said. The Rajya Sabha MP claimed that a year and half ago, he had written a 16-page letter to Prime Minister Narendra Modi warning him about the economy which is in a “tailspin”.

“Today, the economy is in a tailspin. Yes, it can crash. We need to do a lot of good things to revive the economy. Even a tailspin can be made to steady. If nothing is done, we are heading for a major depression. There will be mass scale… banks might collapse, factories might start closing,” he said in an interview to CNN-News18 recently.

“Last May, I wrote to the Prime Minister a 16-page letter with stats from his own departments to show that there are five storm signals,” he said.

Interestingly, former prime minister Manmohan Singh also hit out at the government once again on the GDP growth, saying hasty implementation of the GST and the withdrawal of 86 per cent of currency during the demonetisation exercise will further affect the GDP numbers.

The GDP for the first quarter (April-June) of financial year 2017-18 slumped to a three-year low at 5.7 per cent, far lower than 7.9 per cent recorded in the same quarter last year.

Subramanian Swamy also claimed that India’s growth rate is much lower than what is being presented. He said, “It is lower than what is being told to you, and it is going to decline, according to what I call Samuelson-Swamy theory of index numbers, which tells you how to calculate the correct index numbers.”

Subramanian Swamy suggested that to support the revival of the economy, it is important to enthuse the public with immediate change, which would be possible by abolishing the income tax. “Whatever you do, the public must see immediate change. I think first thing we should do is abolish the income tax. It’s such an easy thing to do, but they haven’t done it,” he said.

According to Subramanian Swamy, it would give a huge boost to the savings rate; and that would mean the investment cycle would start.

He also suggested the bringing down the interest rates which will get the small and medium industries moving and further start the employment cycle. Along with that he also advocated raising interest rates on fixed deposits.

“You must bring down the interest rates to 9%, and raise the fixed deposit interest rate also to 9% to encourage savings. The rate of interest is an instrument that affects the small and medium industries,” he Subramanian Swamy said.

“The big industries can borrow money abroad also. In the United States, you can borrow for 2%. While here, it being at 12%-18% is very cruel, and much of the damage from it has been to the small and medium industry, which produce bulk of the employment. The employment cycle must start, which can happen only if you get these small and medium industries moving, for which the cost of capital must come down,” he added.
 

YagamiLight

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^^^So the Rats are finally coming out of the closet and admit that they have screwed up the economy.

Will the commies masquerading as Right wingers(.ie Sangis) atleast agree now that demonetisation was a major fuck up by the government?:bplease:
 

YagamiLight

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What can be influenced in such a system is to incentivise the capital holders to re-employ their capital into productive ventures (socially as well as economically). One of the biggest incentives is linking profits to transparency (GST, ease-of-doing-business) and governance (reduce conflicts-of-interest and abuse)
And what will happen when you formalise the economy without actually improving the ease of doing business?

What has this useless government done to improve the ease of doing business?

Have they deregulated the thousands of useless regulations which put millions of SME entreprenuers at constant risk of harassment and abuse by the bureaucrats? NO. Instead, they are actually introducing more BS laws to harass employers like minimum wages act.
 

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