Indian Economy: News and Discussion

[ezsasa]

In case not yet posted, a response to Aravind Subramaniam’s recent misadventures about GDP growth, by EAC-PM

 

[captscooby81]

I know a famous chai point near IT park who in 3 year opened 4 more chai points and put his brother in law and few people from village to manage them . Guess what he earns all 4 shops put together 1.5 lakhs a month . He picked a Tata Tiago full cash down and purchased land back in his village .Again a pure cash economy worker who is still not under govt radar .

Getting Cook, Maid, House keeping, drivers are all becoming near to impossible in Metros and the rates of hiring them are just shooting up only

We are building one IT Tech park which is 3400 workstation capacity , once it operational just for house keeping and security my company need nothing less than 200 people . Where are these going to come from or these not job s ? Not every graduate is having communication skill that they are going to end with white collar job.

Even after GST and Demo there is still lot of economy which need to be formalised

But earning they are......including pakorawalas!! Some earn over Rs 50,000 per month! Are they jobless?

QED

 

[Mikesingh]

I know a famous chai point near IT park who in 3 year opened 4 more chai points and put his brother in law and few people from village to manage them . Guess what he earns all 4 shops put together 1.5 lakhs a month . He picked a Tata Tiago full cash down and purchased land back in his village .Again a pure cash economy worker who is still not under govt radar .

Getting Cook, Maid, House keeping, drivers are all becoming near to impossible in Metros and the rates of hiring them are just shooting up only

We are building one IT Tech park which is 3400 workstation capacity , once it operational just for house keeping and security my company need nothing less than 200 people . Where are these going to come from or these not job s ? Not every graduate is having communication skill that they are going to end with white collar job.

Even after GST and Demo there is still lot of economy which need to be formalised

A 'jobless' graduate engineer was interviewed by a TV channel before the elections in Varanasi who was cribbing like hell about not getting a job and cursing the government for it. WTF? With a negligible capital he could have started a micro business like thousands of others who are doing well, then get a Mudra loan and he would be up and running! But these lazy freeloaders only eye plum government jobs as it's mostly no work, all pay.

Another guy an undergraduate who was earlier unemployed, was interviewed in Bangalore. He's opened a mobile repair shop which is doing pretty well! He's now employed three more guys to help his expanding business. All in a matter of months!

So the lazy ones who sit on their asses and want to be spoon fed and land a government job for an easy life are the ones who will continue to crib and bash the government for not providing them a job on a sliver platter. They need to shake a leg and get moving and not depend on the government for everything.

 

[sorcerer]

India Picks New Site For $44B Aramco-ADNOC Mega Refinery | OilPrice.com
The Indian state of Maharashtra has identified a new location where India, in partnership with the state oil companies of Saudi Arabia and the UAE, plans to build a giant US$44-billion refinery, the chief minister of Maharashtra state, Devendra Fadnavis, said on Wednesday.

https://oilprice.com/Latest-Energy-...-Site-For-44B-Aramco-ADNOC-Mega-Refinery.html

 

[Haldiram]

Sitharaman may raise the tax exemption limit for working-age individuals to Rs 300,000 of their annual income.

Any tax exemptions will add stimulus to an economy that’s slowed sharply this year, with growth reaching a five-year low of 5.8% in the first three months of the year.

The proposed tax move would put at least Rs 2,500 more in the hands of each of India’s 50 million taxpayers.

The Finance Ministry is also looking at raising the tax exemption limit for savings and investments made under the so-called Section 80C of the Income Tax law, the people said. The ceiling is currently set at Rs 150,000

 

[captscooby81]

sometimes its about the hunger inside what drives one to find a job or not . I have more examples a person who joined as housekeeping boy today runs his own housekeeping service agency with 18 employees all this in 4 years .

Another guy is yet to complete his graduation we already taken him for House keeping incharge 15k per month . Plus this guy delivers milk early morning waking up at 4 am and finish by 7 am and come to work by 9 am and in the evening he works as Zomato delivery boy . Without a graduate degree he earns around 25k per month . I know we cant expect an engineer or MBA to do the same . but there is jobs its just that you stick to one particular profile and salary in mind for your first job its going to be tough in such competitive and most populated country .

A 'jobless' graduate engineer was interviewed by a TV channel before the elections in Varanasi who was cribbing like hell about not getting a job and cursing the government for it. WTF? With a negligible capital he could have started a micro business like thousands of others who are doing well, then get a Mudra loan and he would be up and running! But these lazy freeloaders only eye plum government jobs as it's mostly no work, all pay.

Another guy an undergraduate who was earlier unemployed, was interviewed in Bangalore. He's opened a mobile repair shop which is doing pretty well! He's now employed three more guys to help his expanding business. All in a matter of months!

So the lazy ones who sit on their asses and want to be spoon fed and land a government job for an easy life are the ones who will continue to crib and bash the government for not providing them a job on a sliver platter. They need to shake a leg and get moving and not depend on the government for everything.

 

[Mikesingh]

Sitharaman may raise the tax exemption limit for working-age individuals to Rs 300,000 of their annual income.
The proposed tax move would put at least Rs 2,500 more in the hands of each of India’s 50 million taxpayers.

Lol!! That's Rs 208 per month!!! One packet of cigarettes per month. And that's going to kickstart the economy for a GDP growth of >10%, what??? Lol!

Is this some kinda joke? If it's Rs 2500 pm then it boils down to just Rs 1600 as the rest will go in taxes for those earning >Rs 10 lakhs per year!! What can you get for Rs 1600? Two kg of mutton!!! Or a veg dinner for two at a cheap restaurant!! Jeeez!

If she really wants to put some money in the pocket of the tax payer then she should reduce the 20% bracket to 10%, ie, Rs 5 Lakhs - Rs 10 Lakhs 10% and Rs 10 Lakhs - 15 Lakhs 20% and 35% beyond that. The rich have plenty to splurge and need to start paying a little more to compensate the lower income groups.

 

[Haldiram]

Lol!! That's Rs 208 per month!!! One packet of cigarettes per month. And that's going to kickstart the economy for a GDP growth of >10%, what??? Lol!

Is this some kinda joke? If it's Rs 2500 pm then it boils down to just Rs 1600 as the rest will go in taxes for those earning >Rs 10 lakhs per year!! What can you get for Rs 1600? Two kg of mutton!!! Or a veg dinner for two at a cheap restaurant!! Jeeez!

If she really wants to put some money in the pocket of the tax payer then she should reduce the 20% bracket to 10%, ie, Rs 5 Lakhs - Rs 10 Lakhs 10% and Rs 10 Lakhs - 15 Lakhs 20% and 35% beyond that. The rich have plenty to splurge and need to start paying a little more to compensate the lower income groups.

Yes.

I hope they reduce the tax bracket and double the PPF limit from 1.5L to 3L. Whatever losses they face from lowering the taxes will be more than covered up by voluntary PPF contributions made by investors.

 

[sthf]

India Picks New Site For $44B Aramco-ADNOC Mega Refinery | OilPrice.com
The Indian state of Maharashtra has identified a new location where India, in partnership with the state oil companies of Saudi Arabia and the UAE, plans to build a giant US$44-billion refinery, the chief minister of Maharashtra state, Devendra Fadnavis, said on Wednesday.

https://oilprice.com/Latest-Energy-...-Site-For-44B-Aramco-ADNOC-Mega-Refinery.html

Let the Randi Rona of environmentalists, farmers and presstitutes commence.

 

[Vijyes]

Let the Randi Rona of environmentalists, farmers and presstitutes commence.

Last time it was shiv sena which fid randi rona. Shiv Sena put condition to withdraw fir tie up for 2019

 

[Vijyes]

India hiking duty upsets US’ apple cart

Agri Business
India hiking duty upsets US’ apple cart
PTI New York | Updated on June 19, 2019 Published on June 19, 2019

The tariff on US apples, at 70%, may benefit other grower countries such as Chile, New Zealand
The export-dependent Washington state apple industry is a worried lot after India hiked duties on the fruit, saying it is “very hard” to sell products to other markets when “you lose a reliable and established market.”

Article Continues Below
India announced a hike in customs duties on as many as 28 US products, including almond, apple, pulses and walnut, in response to higher tariffs imposed by Washington on Indian products such as steel and aluminium.

Imports down
India imported a record 7.8 million 40-pound boxes of the fine quality 2017 Washington state apple crop as of mid-June last year, Yakima Herald reported.

India would ultimately pass Canada as Washington’s No. 2 export market, reaching eight million boxes by the season’s end, it said. Currently, Mexico is the No. 1 export market. However, India had imported far fewer boxes of the 2018 crop. As of June 15, Washington state had shipped about 2.6 million boxes to India.

It is expected to slow down even more with India slapping a 20 per cent retaliatory tariff on apples, bringing the total duty to 70 per cent, the report said.

Washington state usually exports about 30 per cent of its apple crop, it said. Mark Powers, president of the Northwest Horticultural Council, which represents the region’s tree fruit industry in public policy issues, last week discussed several key issues with the Trump administration in Washington DC, including the US trade dispute with India.

No alternative markets
Once the dominant variety, most ‘Red Delicious’ apples now are exported. They made up 90 per cent of the apples shipped to India last year, Powers said. China, which has a large population, could have been another destination, had it not been involved in a trade war with the US, too, he said.

If the industry is not able to find alternative export markets, those apples could end up in the domestic market and depress prices for all growers, Powers said.

 

[Haldiram]

They first threaten, then they impose sanctions, then they wait. When you don't budge, they give up the farce and make you an offer. << That's the template US follows.

Latest in the series of US-India relations, after all the sanctions in the past 6 months. >>

India, US close to inking industrial security pact

 

[Vijyes]

They first threaten, then they impose sanctions, then they wait. When you don't budge, they give up the farce and make you an offer. << That's the template US follows.

Latest in the series of US-India relations, after all the sanctions in the past 6 months. >>

India, US close to inking industrial security pact

India already had similar pact decades earlier but in that case it was only PSU industry. Now, pact is for private industry. So, this pact is insignificant in getting any bigger Technology but only a fine tuning of earlier pact by including private industry instead of giving exclusive rights to PSU.

 

[Indx TechStyle]

Indian pharma aims to corner 7% of global market by 2030: Report

The Indian pharmaceutical industry aspires to have a 7 percent share in the global drug market by 2030, a joint report by the Indian Pharmaceutical Alliance (IPA) and McKinsey said.

The current market share is at 3.6 percent, valued at around $38 billion. For it to achieve the 7 percent goal, i.e. $120-130 billion value by 2030, growth would have to be at 11-12 percent annually, it added.

The target though stiff is achievable as patents for branded molecules with cumulative global sales of over $251 billion are expected to expire between 2018 and 2024. Indian generic companies are expected to capture a big slice of the pie.

In addition to the patent cliff, investment by Indian companies on newer product classes such as biosimilars and specialty drugs and increased exports to underpenetrated international markets like Japan, China, Africa, Indonesia and Latin America will help reach the target.

On the domestic front, to get to 7 percent, the report: 'Indian Pharmaceutical Industry: The Way Forward - Vision 2030', said the pharmaceutical market would have to break into top 5 markets in the world from its current ranking of the 11th market by value.

Ayushman Bharat – the state-sponsored universal health coverage programme with a focus on chronic healthcare, will be key to driving this growth.

On innovation, the report expected India to aspire for three to five new molecular entities and 10–12 incremental innovation launches per year, by 2030.

But the report warns about pricing pressure and buyer consolidation in the US, increased scrutiny in quality compliance when supplying to international markets, lack of stable pricing and policy environment domestically, dependence on imports for bulk drugs and intermediates and lack of capabilities in innovation space, as some of the key challenges.

"The Indian pharmaceutical industry is entering its next phase of growth. At this critical juncture, there is a need for stronger collaboration between pharma companies, the government and regulatory agencies," said Sudarshan Jain, Secretary General of IPA

"Concerted efforts by the pharmaceutical companies and government’s intervention in the form of enabling policies and a supportive ecosystem can help the industry achieve Vision 2030," he added.

 

[Indx TechStyle]

Role of banks in making India a $10 trillion economy by 2030: Interview with S.Sridhar, Chairman of IMC BFSI Committee

In his Interim Budget Speech in February, 2019, acting Finance Minister Piyush Goyal had stated that ‘India would be a Ten Trillion Dollar Economy by 2030’. He said that the priority of the government will be to build next-generation infrastructure, both physical as well as social, for a 10 trillion dollar economy and to provide `ease of living’.

The concept is visionary, challenging and transformative. It is an aspirational statement. Given that India’s current GDP is USD 2.7 trillion, reaching USD 10 trillion by 2030, implies aCAGR ( Compound Annual Growth Rate ) of 11% + over the next 11 years. Difficult, but not impossible. Hence the sobriquet “2020-30 : India’s Decade of Reckoning “

To help you understand the role of regulation in evolution of a robust and safe banking sector, Mr S.Sridhar, currently the Chairman of the IMC BFSI Committee sheds light on imperative aspects.

Importance of financial regulation in India and how it affect growth of the nation

Sridhar: This is a universal given. In India financial regulation has played a key role in development, directly by laying out the road map for the regulated entities and indirectly by responsive regulation – responsive to legitimate concerns of stakeholders. Some examples of the former – are priority sector concept and guidelines; payment infrastructure digital banking. Some examples of the latter are regulatory for bearance extended to banks in regard to stressed assets for the last 2 decades almost provisioning requirements, interest reference rate changes.

Emerging issues and policy responses by the Indian banking system

Sridhar: The most important issues facing the regulator are resolution of stressed assets and ensuring liquidity crunch for NBFCs. HFCs do not lead to solvency crisis that can affect financial stability. In case of the former, the regulator efforts have been supported by good implementation of IBC and less external interference in respect to corporates. RBI appears to be on top of the liquidity situation although not indulging the NBFCs through pressuring the banks on transmission of policy rate cuts, encouraging banks to securitise bankable assets of the NBFCs. Other emerging issues are Cyber Security particularly in an age of exploding digital payments and other banking services upgrading the underwriting capability of banks transitioning to a technology based supervision to render more effective and timely supervision.

Regulatory stability and the role of supervision and governance

Sridhar: Regulation, governance and supervision constitute the triad on which financial ecosystem can be developed particularly in economy with strong need for growth. The three legs of the triad constitute free flowing feedback loop that can reinforce one another.

How the Indian banking sector is rebooting to surge ahead
Sridhar: i. Through adequate capital to meet growth demands – RBI’s capital adequacy are slightly more stringent than Basel. Whilst PSBs will be recapitalised by GoI (who have committed) private sector levels are raising capital thru QIPs tier II bond issuance etc.

ii. More thrust on digital banking, use of aggregators etc.

iii. Upgrading organisational skills in key areas – risk management,

treasures, credit underwriting.

iv. Thrust on CASA in particular and on liability management in general.

v. Revolution stressed asset resolution thru various roots – IBC, Shasakt, sale to ARCs, debt restructuring accompanied by conservative loan loss provisioning.

vi. Exercising greater control over costs so that cos income ratio is reduced progressively.

vii. Right sizing the organisation.
Why 2020 – 2030 is India’s decade of reckoning

Sridhar: If we have to achieve Ten Trillion Dollar economy by 2030 i.e. a growth with CAGR of 11% plus or slightly lower, it has to be achieved in this decade. Otherwise there is a danger of falling into the middle income trap. Also, globally there are several issues currently that impinge on India’s growth aspirations.

i. China as a treat – The BRI project its cultivation of neighbours, its dumping of industrial products and semi finished goods etc.

ii. Trade war between US – China. Could be an opportunity for India as a threat depending upon the way we handle it.

iii. Oil price upward movement. Some estimates indicate a price of USD 80 per barrel by year end.

iv. The need to revive investment which has fallen in recent years as well as productivity to create jobs and growth.

 

[Indx TechStyle]

Forex reserves down for first time to 422.2 billions from 423.5 billions after a long period of steady increase.

 

[IndianHawk]

Forex reserves down for first time to 422.2 billions from 423.5 billions after a long period of steady increase.

Hmm . Hong Kong and Taiwan have still more Forex than us. But if we reach 500 Billion we will have more Forex than Russia and Saudi Arabia which are energy superpowers.

A very strong position to be in. Our ability to influence across globe shall also increase accordingly.

Sent from my C103 using Tapatalk

 

[Suryavanshi]

Hmm . Hong Kong and Taiwan have still more Forex than us. But if we reach 500 Billion we will have more Forex than Russia and Saudi Arabia which are energy superpowers.

A very strong position to be in. Our ability to influence across globe shall also increase accordingly.

Sent from my C103 using Tapatalk

Few question I'm still unclear about

What kind of trade activity builds up forex reserve?
What is the practical use of the forex reserve?

 

[ezsasa]

Few question I'm still unclear about

What kind of trade activity builds up forex reserve?
What is the practical use of the forex reserve?

Ideally it should be exports...
but for us, it’s mostly buying/selling dollars from the market.

Forex is the amount guaranteed by RBI in case of international transactions for imports until the payments are made by the buyer, hence the word reserve.

This reserve is also used to stabilise currency fluctuation.

 

[IndianHawk]

Few question I'm still unclear about

What kind of trade activity builds up forex reserve?
What is the practical use of the forex reserve?

You need to have current account surplus through exports china Russia Saudi all have surplus.
And if you don't have surplus on current account ( mercantile trade + services) then you need to have surplus on capital account which means more foreign investment.

We have built reserve mostly with foreign investment. But we need to build up export surplus to be truly secure as foreign investment fluctuations are dangerous for rupee.

Sent from my C103 using Tapatalk