Indian Economy: News and Discussion

[F-14B]

Since we're on the topic of power I always wonder why can't India go for Offshore wind power grid that might reduce the dependency on hydropower for coastal States

 

[Flame Thrower]

Our big problem is not just power generation, it's get that power to the consumers through the antiquated, crumbling distribution system, plagues with inefficiencies and corruption and of course "T&D losses" i.e. theft.

Unless we fix the power distribution infrastructure, we'll be unable to realise the fruits of increased capacity.

The peak load last year was 157GW and there was a shortfall of 2GW. Which means that of our installed capacity of 330 GW, only 155 GW was reaching the consumers. Where was the rest of the power going? has it not been connected to the grid? Are the losses really that huge? Is there undocumented power consumption?

As the economy grows and incomes rise, power demands will go up and having sufficient capacity for generation will be the key here.

Everyone wants 24/7 power, many do not want to pay for it.

I am from electricals background (B. tech EEE) T/D losses happen and they happen a lot. Sometimes the losses may go as high as 50%. That is the reason to build power plants close (but not close enough to cause pollution problems) to load centers i.e. Cities and Industrial areas.


as far as I know we don't have proper infra.

As many as 8 1200kv lines are needed for effecient power transmission (during 2013-14) but only one line was operational.

According to my minor project guide (then ADE of Hyderabad division, AP Transco) Congress had fucked up power generation, transmission and distribution to the very breaking point.

 

[Prashant12]

India's forex reserves rise to life-time high of $424.361 bn

Previously, the reserves had touched a record high of USD 421.914 billion on February 9. It had crossed the USD 400-billion mark for the first time in the week to September 8, 2017, but has since been fluctuating.

The country's foreign exchange reserves hit a life-time high of USD 424.361 billion after rising by USD 1.828 billion in the week to March 30, helped by rise in foreign currency assets, the Reserve Bank said today.

In the previous week, the reserves had increased by USD 1.197 billion to USD 422.532 billion.

Previously, the reserves had touched a record high of USD 421.914 billion on February 9. It had crossed the USD 400-billion mark for the first time in the week to September 8, 2017, but has since been fluctuating.

In the reporting week, the foreign currency assets, a major component of the overall reserves, rose by USD 1.823 billion to USD 399.118 billion.

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

Gold reserves remained unchanged at USD 21.614 billion, the central bank said.

The special drawing rights with the International Monetary Fund rose by USD 2.1 million to USD 1.544 billion.

The country's reserve position with the IMF also increased by USD 2.8 million to USD 2.083 billion, the apex bank said.

https://www.moneycontrol.com/news/b...-to-life-time-high-of-424-361-bn-2544207.html

 

[YagamiLight]

17% is not good? Really?
Weren't you arguing that Modi has screwed the economy with Demo and GST. Where did you get this 11-18% GDP growth from? A lovely number if true.

Growth in Tax revenue is not the same as growth in GDP.when GDP increases, it means the living standards of the citizens has improved. But when tax collection increases- it could either be due to increased GDP and hence increased Tax returns or it could be due to Govt taxing more people from same GDP. So both are not the same. In fact tax revenue increases without corresponding increase in GDP is actually very bad for the economy as it implies more money is going to be wasted by the govt for its plethora of useless projects.

You have to take the nominal GDP growth- currency appreciation into account when calculating expected tax rate returns and not just real GDP. Nominal GDP growth of India, assuming currency exchange rate being the same will be 7%(real GDP growth)+5%(inflation rate)=12% p.a . So 12% tax revenue is pretty much expected for an economy like India. If anything, the increase in Tax collection out of proportion to increase in GDP is actually something which should worry us

 

[ezsasa]

Growth in Tax revenue is not the same as growth in GDP.when GDP increases, it means the living standards of the citizens has improved. But when tax collection increases- it could either be due to increased GDP and hence increased Tax returns or it could be due to Govt taxing more people from same GDP. So both are not the same. In fact tax revenue increases without corresponding increase in GDP is actually very bad for the economy as it implies more money is going to be wasted by the govt for its plethora of useless projects.

You have to take the nominal GDP growth- currency appreciation into account when calculating expected tax rate returns and not just real GDP. Nominal GDP growth of India, assuming currency exchange rate being the same will be 7%(real GDP growth)+5%(inflation rate)=12% p.a . So 12% tax revenue is pretty much expected for an economy like India. If anything, the increase in Tax collection out of proportion to increase in GDP is actually something which should worry us

Correction : Tax collection could also improve because of increase in tax compliance which is basically more people paying taxes and properly.
Inflation is not exclusive of GDP, inflation does help in GDP but not fully because of it. GDP primarily grows because of increased consumption and more increase in avenues of commerce.

 

[mayfair]

Correction : Tax collection could also improve because of increase in tax compliance which is basically more people paying taxes and properly.
Inflation is not exclusive of GDP, inflation does help in GDP but not fully because of it. GDP primarily grows because of increased consumption and more increase in avenues of commerce.

+1008

Taxes are made up of direct and indirect taxes. Inflation will account for SOME increase in indirect taxes i.e. sales tax, excise, VAT and now GST.

This chart explains

Due to the transition from the previous tax regime to GST, indirect taxes took a hit before stabilising and now going upwards.

Direct taxes and indirect taxes are both going up and contributing to increased tax collections. Now if direct taxes are going up, it means either people are earning more, more folks are getting into salariednon-salaried (but taxable) employment or that more folks have been brought into the tax net (they could be tax evaders before).

Actually as per GoI records, direct tax collections have gone up by a staggering 19.3%!!

http://pib.nic.in/newsite/PrintRelease.aspx?relid=176443

Press Information Bureau
Government of India
Ministry of Finance
09-February-2018 17:40 IST
Direct Tax Collections for F.Y. 2017-2018 show Growth of 19.3% up to January, 2018
The provisional figures of Direct Tax collections up to January, 2018 show that net collections are at Rs.6.95 lakh crore which is 19.3% higher than the net collections for the corresponding period of last year.

The net Direct Tax collections represent 69.2% of the Revised Estimates of Direct Taxes for F.Y. 2017-18 (Rs.10.05 lakh crore). Gross collections (before adjusting for refunds) have increased by 13.3% to Rs.8.21 lakh crore during April 2017 to January 2018.

Refunds amounting to Rs.1.26 lakh crore have been issued during April 2017 to January 2018.

The Growth Rate for Net Collections for Corporate Income Tax (CIT) is 19.2% and for Personal Income Tax (PIT) is 18.6%.

 

[MrPresident]

CREO
Celkon
iball
Intex Technologies
Karbonn Mobiles
Lava International
LYF
Micromax Informatics
Onida Electronics
Spice Digital
Videocon
Xolo subsidiary of Lava International
YU Televentures

https://en.wikipedia.org/wiki/List_of_mobile_phone_makers_by_country

Add Motorola to the list...............................

 

[Suryavanshi]

It isn't hard for India to manufacture phones it's just that we don't have a Chip manufacturing infrastructure which is the heart of the Phone.
So until we have semiconductor industry we can't produce phones, one other thing is camera we lack in the sector too.

 

[ezsasa]

Since we're on the topic of power I always wonder why can't India go for Offshore wind power grid that might reduce the dependency on hydropower for coastal States

Firstly not favoured because of cost.
Majority of the states are power surplus.
Since there is a commitment of cheaper 100 GW solar, costlier offshore not required.

 

[mayfair]

So UP became power surplus from power deficit?

It's a shame that Jharkhand with all its coal deposits remain power deficit?

J&K should be helped by Kishenganga and Rattle projects.

 

[hit&run]

So UP became power surplus from power deficit?

It's a shame that Jharkhand with all its coal deposits remain power deficit?

J&K should be helped by Kishenganga and Rattle projects.

Under billing with the help of Lineman is in every household, I repeat every household in Jammu. I bet same is in Kashmir.

 

[Khalsa_Panth]

It isn't hard for India to manufacture phones it's just that we don't have a Chip manufacturing infrastructure which is the heart of the Phone.
So until we have semiconductor industry we can't produce phones, one other thing is camera we lack in the sector too.

Can get camera from Japan they make world class & not strategic importance

Think India has small fabs for 65/90nm which is almost 15-20yr old tefh at this point.

It costs billions to get decently competitive fab No need to be cutting edge. 28nm like 2500k was from 2010/11 if we can aim for that by 2025 it's good for most things as cpu power only increases 5-7% per year now.

 

[YagamiLight]

Correction : Tax collection could also improve because of increase in tax compliance which is basically more people paying taxes and properly.

How is that a good thing. Govt spends 4 rupees for getting 1 rupee worth of projects done. Hence increase in tax collection means an increase in inefficiency. In such cases, the money will be better off with the citzens themselevs

Inflation is not exclusive of GDP, inflation does help in GDP but not fully because of it. GDP primarily grows because of increased consumption and more increase in avenues of commerce.

Irrelevant to what I said.

 

[YagamiLight]

Taxes are made up of direct and indirect taxes. Inflation will account for SOME increase in indirect taxes i.e. sales tax, excise, VAT and now GST.

Inflation will account for increases in tax collections in both direct AND indirect tax collections and not just indirect tax collections.

 

[Flame Thrower]

How is that a good thing. Govt spends 4 rupees for getting 1 rupee worth of projects done. Hence increase in tax collection means an increase in inefficiency. In such cases, the money will be better off with the citzens themselevs

Any source to back up your claims.

Would you care to list out the projects whose ROI is way too low that we may recover only 25% of expenses. Please provide source for your claims.

 

[darshan978]

It isn't hard for India to manufacture phones it's just that we don't have a Chip manufacturing infrastructure which is the heart of the Phone.
So until we have semiconductor industry we can't produce phones, one other thing is camera we lack in the sector too.

do u know from where most of our phone chip come from??
TAIWAN not china but china still assemble phones by importing chips

 

[Butter Chicken]

Xiaomi is in talks with 50 global suppliers to set up factories and plans to open 3 addl mfg plants. CNBC TV-18 speaks to Xiaomi's Global VP & India MD Manu Jain on the company's 'Make In India' plans.

 

[kunal1123]

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[Prashant12]

India's forex reserves at record high of $424.867 bn


The country's foreign exchange reserves rose by USD 503.6 million to touch a life-time high of USD 424.864 billion in the week to April 6, aided by increase in foreign currency assets, the Reserve Bank said today.

In the previous week, the reserves had surged by USD 1.828 billion to USD 424.366 billion.

It had crossed the USD 400-billion mark for the first time in the week to September 8, 2017, but has since been fluctuating.

In the reporting week, the foreign currency assets, a major component of the overall reserves, rose by USD 657.7 million to USD 399.776 billion.

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

After remaining stable for past few weeks, gold reserves decreased by USD 130.7 million to USD 21.484 billion in the reporting week, the central bank said.

The special drawing rights with the International Monetary Fund declined by USD 10 million to USD 1.534 billion.

The country's reserve position with the IMF also decreased by USD 13.4 million to USD 2.070 billion, the apex bank said.

http://www.business-standard.com/ar...record-high-of-424-867-bn-118041300833_1.html

 

[john70]

Boost for Indian economy as inflation eases further, industrial growth rises
India’s IIP grew at a robust 7.1% in February while CPI decelerated for the fourth consecutive month to 4.28% in March, leading to expectation that the Indian economy may be on a sustained recovery path

https://www.livemint.com/Companies/p8SCvbE49ZRSyn5UB7EdWP/Industrial-output-up-71-in-February.html