Indian Economy: News and Discussion

[sorcerer]

India saved Rs-5,000 crore forex post new steel policy: Steel Secretary

The rollout of new steel policy saved forex of Rs 5,000 crore since last year while around 24 million tonnes of crude steel capacity was added during past four years, Steel Secretary Aruna Sharma
said.

India also replaced Japan as the second largest steel producer this year, she said.

"We are not going to stop here. We all know about the ambitious National Steel Policy (NSP) announced last year under which we have set a target of raising the capacity to 300 MT by 2030 and produce 250 MT of crude steel.
..........
............

The new steel policy, she said, envisages to meet the entire demand of high-end grade automotive steel, electrical steel, special steels and alloys for strategic applications and increase domestic availability of washed coking coal so as to reduce import dependence on coking coal from about 85 per cent to 65 per cent by 65 per cent.
.............
........

"Owing to the enabling steps taken by the government, we brought it from 59 kg in 2014 to 69 kg (provisional figure) on date. Before that it had taken seven years to raise the per capita consumption from 50 kg to 59 kg," she said.

............

............
Besides, dumping of cheap steel items was another issue, she said. Sharma said the ministry imposed trade remedial measures and brought in quality control order.

"Imposition of minimum import price, anti dumping duties, safeguard duty and countervailing duty resulted in curbing unabated exports and unfair trade practices like predatory pricing by other countries.

"To decrease import and making of substandard steel items in India and to provide a level playing to small players vis-a-vis bigger players, more than 80 per cent steel products have been brought under quality control orders by notifying 37 steel and steel products under BIS Act," she said.
Read more at:
//economictimes.indiatimes.com/articleshow/64528086.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

 

[HariPrasad-1]

PSUs have become so unionised that they can't be reversed. For example : when the topic of Air India sale first came up all television channels had one union guy opposing the sale no their panel. That is not a coincidence.

I had seen NDPL(North Delhi power limited) in the first two years after being purchased by TATA. almost all Govt employees were retained and the work culture remained the same for the first two years. Since it is a business with assured revenues, impact was not that much.

In a practicality there is huge resistance to change, and Govts fall when they try to do massive overhaul's in PSU managements.

Take another example of OFBs. if you go thru parliamentary committee reports on defence production you will find that restructuring and improvement of efficiency will be a common point for many years. but last year's report say OFB has decided not to spend any money on restructuring. same year you will find Modi Govt issue RFI for ammo manufacturing by private companies. if you read between the lines, current govt tried for two years and gave up on trying to change OFB. at the same time govt decided to encourage Pvt companies for defence manufacturing.

And in india where every ram rahim robert thinks they can bring down the govt for simple issues, no political party is brave enough to restructure PSUs. they can only disinvest at best. even the disinvestment is failing now a days.

No union will work. Many banks are merged in SBI successfully. Some guys may protest but ultimately it will happen.

 

[HariPrasad-1]

From THE WALL STREET JOURNAL:


India’s Economic Expansion Outpaces Rival China

GDP grew 7.7% from a year earlier, exceeding expectations

Anant Vijay Kala

Updated May 31, 2018 9:37 p.m. ET
NEW DELHI—India’s economic expansion accelerated to the fastest pace in nearly two years, pulling further ahead of rival China in the race to be the world’s fastest-growing economy, as the effects fade from the government’s crackdown on cash and adoption of a new tax.

Gross domestic product in Asia’s third-largest economy grew 7.7% in the three months through March compared with a year earlier.....

according to government data issued Thursday. That was better than economists’ prediction of 7.4% and stronger than the 7% expansion in the preceding quarter.

India has now held the position as the world’s fastest-growing big economy for the second quarter in a row, a title that China had wrested from it about a year ago. China’s economy grew 6.8% in the past two quarters.

During the full fiscal year, India’s economy grew 6.7%, which was slower than the previous year’s 7.1% expansion.

India’s economy had been disrupted by Prime Minister Narenda Modi’s sudden move to ban India’s high-value currency notes—known as demonetization—and the bumpy rollout of a new nationwide value-added tax.

More at ........
https://www.wsj.com/articles/indias-economic-expansion-outpaces-rival-china-1527779172

Actually Modi has taken the most innovative way to deal with economy. All our past government had tried to increase spending. The main spender in India is its middle class. Now middle class is not spending much in line with increase in their income. Modi has tried to give money power in rural economy and bellow poverty class. Once they start getting money in their hand, Spending base will increase hugely resulting in shoot in demand. Indian economy being domestic consumption driven will flourish like anything. We can easily hit 9% + sustainable growth rate for many years. What we need is political stability and 10 more years for Modi. He has taken initiative to change economy from grass root and many corrective actions to plug the holes. Now we must see that he comes back in 2019 so that we may move further in the direction we have chosen.

 

[ezsasa]

Learning of the day for me is that consumption of diesel in India is three times more than petrol.

That would mean for all these decades money that could have gone into building roads have gone into subsidising the transport costs.

I wonder what is the % of passenger car segment under diesel consumption.

 

[HariPrasad-1]

Learning of the day for me is that consumption of diesel in India is three times more than petrol.

That would mean for all these decades money that could have gone into building roads have gone into subsidising the transport costs.

I wonder what is the % of passenger car segment under diesel consumption.

Nothing is subsided. just they charged some less duty on Diesel.

 

[nongaddarliberal]

Interestingly British pound has been devaluing against USD for 2-3 years, yet there is no change in GDP of Britain in spite of their lower growth numbers.

That one is also a mystery. Despite the Indian and British economies being toe to toe last year, and despite us growing at 7% and them growing at only 0.5%, their GDP is still bigger than ours this year at 2.9 trillion. How does that work?

 

[ezsasa]

In any case GDP of India has officially crossed the GDP of United Kingdom and the difference will be further enlarged due to higher growth rate of Indian GDP.

Seems so for now because of the base price of 2011-12 when USD was averaging 49 INR or so.
Once base price is advanced 5 years to 2016-17, advantage will be slighly lost because USD was averaging 64 INR.

 

[ezsasa]

That one is also a mystery. Despite the Indian and British economies being toe to toe last year, and despite us growing at 7% and them growing at only 0.5%, their GDP is still bigger than ours this year at 2.9 trillion. How does that work?

With compliments from @KumarG and @kalakaar

Looks to be £2,037,638 mill (Sheet A2 aggregates, GDP at market prices). This is the 2nd estimate. The annual "blue book" comes post-summer. Methodology from the link below:
https://www.ons.gov.uk/economy/grossdomesticproductgdp/methodologies/grossdomesticproductgdpqmi

The raw data is where the Q1 and other reference figures come from, which are usually seen at other sites:
https://tradingeconomics.com/united-kingdom/indicators

I believe this 2037638 Million pounds seems to be their GDP as of 2017 In dollars this comes out to be 2.7 trillion dollars.


View attachment 25718



View attachment 25718

 

[kalakaar]

That one is also a mystery. Despite the Indian and British economies being toe to toe last year, and despite us growing at 7% and them growing at only 0.5%, their GDP is still bigger than ours this year at 2.9 trillion. How does that work?

India has surpassed the GDP of UK. The british economy is hidden and with 1.2% rate they can maximum reach 2.75 trillion till this year. India would cross 3 trillion next year. We are ahead.

 

[Jameson Emoni]

That one is also a mystery. Despite the Indian and British economies being toe to toe last year, and despite us growing at 7% and them growing at only 0.5%, their GDP is still bigger than ours this year at 2.9 trillion. How does that work?

It is called cooking the books.

 

[stew98]

India, China move to challenge Opec's sway on oil prices.
If this go through then it is not only good for India China but whole world. OPEC have taken world for ride too far too long somebody has challenge that. I hope other countries like Japan and S. Korea joins as well.

 

[YagamiLight]

The only nonsense is when one sees MNREGA and constructing homes as equal.

Building homes add to growth, create skilled jobs that can sustain further.

Credible infrastructure which supports families to further bring social and civil cohesion including prospectus to support more related jobs and trade opportunity. Last but not least it brings stability to families who can then be part of the mainstream focusing on education and economic activities.

Yes when UPA does the same welfare crap, it is bloated public spending for votes and bankrupting the exchequer but when Modi turd does it, it is a visionary plan pulled out of his ass to uplift poor people's livelihood.

No matter how much mental maturation you indulge in, nothing changes the fact that all kinds of yojanas including building of houses is a form of useless subsidies this govt is doling out

 

[YagamiLight]

No mate, read it again.
the 1000 crores is the additional trade(not govt revenue) created by people moving into LIG.

Yes, that 1000 cores dint come out of taxes we paid. Not at all. It came out of thin air because Modi said magical words

 

[nongaddarliberal]

It is called cooking the books.

How come no one is calling them out on it when its this obvious? The Germans for example, would love to point out that UK screwed its economy after Brexit.

 

[ezsasa]

Yes, that 1000 cores dint come out of taxes we paid. Not at all. It came out of thin air because Modi said magical words

On a lighter note....

You are either a bong or Tamil, which one are you?

 

[YagamiLight]

On a lighter note....

You are either a bong or Tamil, which one are you?

Yes, me bring a bong or a Tamil totally changes what I said. Spoken like a true bhakth

This is the reason I want Modi to lose 2019 just out of spite I have for the bhakth scum for leading the Hindu right wing movement to ashes

 

[ezsasa]

Yes, me bring a bong or a Tamil totally changes what I said. Spoken like a true bhakth

This is the reason I want Modi to lose 2019 just out of spite I have for the bhakth scum for leading the Hindu right wing movement to ashes

So you are one of the two.. which one is it?

Ignoring rest of your comments.....

 

[hit&run]

Yes when UPA does the same welfare crap, it is bloated public spending for votes and bankrupting the exchequer but when Modi turd does it, it is a visionary plan pulled out of his ass to uplift poor people's livelihood.

No matter how much mental maturation you indulge in, nothing changes the fact that all kinds of yojanas including building of houses is a form of useless subsidies this govt is doling out

I don't know what you are spouting. Kindly spare this thread before it gets ugly.

 

[Jameson Emoni]

So you are one of the two.. which one is it?

Ignoring rest of your comments.....

We don't need to put down Bengalis and Tamils because of an idiot's post.

 

[Jameson Emoni]

How come no one is calling them out on it when its this obvious? The Germans for example, would love to point out that UK screwed its economy after Brexit.

They are a good cook. Besides, they have significant control over international banking system, which helps as well.