Indian Economy: News and Discussion

[IndianHawk]

Use your brain bra, gdp figures r for April to June.

Go to the Indian economy thread and check explanations already given there.

 

[IndianHawk]

http://www.livemint.com/Industry/OC...-who-predicted-India-GDP-growth-at-57-in.html

This economist predicted the figure correctly he also claims gdp growth will recover back to 8% by q3.

 

[nongaddarliberal]

We are a country that should be growing at 10%. For significant poverty removal 8% is minimum. 5.7% even if it's for only a quarter is FAR below our potential. We won't reach 10% until we do Both Labour reform and land reform. Labour reform being the more important of the two.

Today, if you own a factory with more than 100 employees, you have to get permission to fire an employee, because of the Labour laws and useless unions. Which fool will come and make in India under such restrictions?

 

[IndianHawk]

We are a country that should be growing at 10%. For significant poverty removal 8% is minimum. 5.7% even if it's for only a quarter is FAR below our potential. We won't reach 10% until we do Both Labour reform and land reform. Labour reform being the more important of the two.

Today, if you own a factory with more than 100 employees, you have to get permission to fire an employee, because of the Labour laws and useless unions. Which fool will come and make in India under such restrictions?

The problem is that both labour and land are state subjects.

We keep a tight watch at centre but forget about states.

If only people will hold their state governments more responsible we will be significantly more developed.

 

[ezsasa]

We are a country that should be growing at 10%. For significant poverty removal 8% is minimum. 5.7% even if it's for only a quarter is FAR below our potential. We won't reach 10% until we do Both Labour reform and land reform. Labour reform being the more important of the two.

Today, if you own a factory with more than 100 employees, you have to get permission to fire an employee, because of the Labour laws and useless unions. Which fool will come and make in India under such restrictions?

who told you that companies have to get permission to fire an employee?
among white collar there is no issue at all, anybody can be fired at anytime.
only unionised blue collar workers is an issue, with a little jugaad(incase of invalid reasons) they can be fired also. this will be the same all over the world.
under disciplinary clauses it is very easy to fire an employee anyways.

lakhs of companies have been running in india for decades.

i blame the low growth rate purely because of incompetence of private sector and desi economists. they suck at creating new business ideas and new products.

any Govt(including congress) has very little to blame for low growth after liberalisation.

 

[SELVAM]

Tragic comedy in this fiasco is fake currency notes r legalised

 

[SELVAM]

Tragic comedy in this fiasco is fake currency notes r legalised

 

[YagamiLight]

Uhmmm okay...
So, some dimwits criticize Modi day in - day out, and still don't quote a political alternative. They criticize Modi, but nothing constructive, no suggestions. When argued back with facts, they hide in their own ass.
#JustAnotherTaleInIndia.

There wont be alternative to modi so long as d----- bhakths keep sucking ----------- no matter how bad a policy he implements


And it is so cute when ------------ talk about facts as if facts are on their site. Fact- indian GDP fell to a growth rate of 5.7% in 2017 from projected 8% in 2015 thanks to demonetization and GST. Mentally Masturbating to GST and demonetization because of --------------------------------- economic understanding from brothelwood movies like Dimwit bhakths are doing is not fact based argument

Mod Edit: Unnecessary words removed. Please keep it clean.

 

[F-14B]

There wont be alternative to modi so long as.
.
.
.
.
t bhakths are doing is not fact based argument

Then stop calling names and do something about him you think you can replace him then why dont you run against him next to next year and win the top job

Mod Edit: Quoted post altered to remove Unnecessary words.

 

[SELVAM]

Saab, Adani to partner to build single-engine fighter jets in India: consultant
http://www.livemint.com/Companies/U...ner-to-build-singleengine-fighter-jets-i.html


Ambani, adani two corrupt Gujaratis trying to milk defence budgets.

 

[F-14B]

Saab, Adani to partner to build single-engine fighter jets in India: consultant
http://www.livemint.com/Companies/U...ner-to-build-singleengine-fighter-jets-i.html


Ambani, adani two corrupt Gujaratis trying to milk defence budgets.

what a discoverysirji

 

[SELVAM]

what a discoverysirji

I will prefer L&T, Tata,bharat forge,Mahendra .

But these 2 Gujaratis r conmen their wealth is build upon corrupt practices.

 

[Vijyes]

What people don't understand is that India can't be set right by mere legal rules. Even today, most of the transactions are in black. GST etc will definitely cause resistance amongst many sellers who will lose black income. Only after realizing that there is no way out, they will fall in line.

 

[nongaddarliberal]

who told you that companies have to get permission to fire an employee?
among white collar there is no issue at all, anybody can be fired at anytime.
only unionised blue collar workers is an issue, with a little jugaad(incase of invalid reasons) they can be fired also. this will be the same all over the world.
under disciplinary clauses it is very easy to fire an employee anyways.

lakhs of companies have been running in india for decades.

i blame the low growth rate purely because of incompetence of private sector and desi economists. they suck at creating new business ideas and new products.

any Govt(including congress) has very little to blame for low growth after liberalisation.

Yes, I was talking about the unionized blue collar worker, which is why I gave the example of a factory. No, its not easy to fire them unless you already have good political and administrative connections. So Reliance and Tata may be able to do it, but newcomers in India do find it difficult, and that is their primary complaint along with shoddy infrastructure in most parts.

Just 2 or 3 years ago 180 million unionized and spoilt workers conducted a strike to make sure that their job security isn't threatened, which was pretty much a world record in strikes. The strike was against romours of Labour reforms. This is the main reason why companies in India are investing more in labour cutting technology even if it is cheaper to hire people for certain jobs. For the past two years every article about the Indian economy I've read has this complaint in the top.

 

[nongaddarliberal]

who told you that companies have to get permission to fire an employee?
among white collar there is no issue at all, anybody can be fired at anytime.
only unionised blue collar workers is an issue, with a little jugaad(incase of invalid reasons) they can be fired also. this will be the same all over the world.
under disciplinary clauses it is very easy to fire an employee anyways.

lakhs of companies have been running in india for decades.

i blame the low growth rate purely because of incompetence of private sector and desi economists. they suck at creating new business ideas and new products.

any Govt(including congress) has very little to blame for low growth after liberalisation.

This is why certain states have finally started doing it in order to attract FDI

https://m.rediff.com/business/report/labour-reforms-in-india-may-get-going-finally/20170320.htm

 

[ezsasa]

Yes, I was talking about the unionized blue collar worker, which is why I gave the example of a factory. No, its not easy to fire them unless you already have good political and administrative connections. So Reliance and Tata may be able to do it, but newcomers in India do find it difficult, and that is their primary complaint along with shoddy infrastructure in most parts.

Just 2 or 3 years ago 180 million unionized and spoilt workers conducted a strike to make sure that their job security isn't threatened, which was pretty much a world record in strikes. The strike was against romours of Labour reforms. This is the main reason why companies in India are investing more in labour cutting technology even if it is cheaper to hire people for certain jobs. For the past two years every article about the Indian economy I've read has this complaint in the top.

sirjee , i have worked for many major industries and companies across india. i work with HR/IR very closely where ever i go.
even union workers can be fired, much depends on the reason and the management's relationship with the union.

First let's not demonise all union workers, they might be a problem in places like kerala and bengal but rest of the states they are manageable.

when modi came, all op-eds were written about labour reforms(some exaggerated points) to create a rift between BJP and unions. once BJP won the last round of elections along with UP, you would have noticed the talk went away. This was pure politics.

anyways i am not in favour of giving management full authority in firing people, i have seen upclose the sick treatment given to workers in non-unionised companies. some company managers behave like rowdies in those companies.

there are many other labour reforms that are necessary, but not in the case of firing individual workers.

i can assure you this issue is not the reason for slow growth.

Heathrow airport closes for atleast for a week every two years due to UNION issues, why don't we see opeds about labour problems in UK.

 

[nongaddarliberal]

sirjee , i have worked for many major industries and companies across india. i work with HR/IR very closely where ever i go.
even union workers can be fired, much depends on the reason and the management's relationship with the union.

First let's not demonise all union workers, they might be a problem in places like kerala and bengal but rest of the states they are manageable.

when modi came, all op-eds were written about labour reforms(some exaggerated points) to create a rift between BJP and unions. once BJP won the last round of elections along with UP, you would have noticed the talk went away. This was pure politics.

anyways i am not in favour of giving management full authority in firing people, i have seen upclose the sick treatment given to workers in non-unionised companies. some company managers behave like rowdies in those companies.

there are many other labour reforms that are necessary, but not in the case of firing individual workers.

i can assure you this issue is not the reason for slow growth.

Heathrow airport closes for atleast for a week every two years due to UNION issues, why don't we see opeds about labour problems in UK.

Ok. I guess media analysis of the Indian economy has overblown the labour issue then, which led me to believe that was the primary cause. What are the reasons in your experience why foreign companies don't set up manufacturing units here the way they used to do with China? Because we have dirt cheap labour compared to most places, and land is also not that costly outside the cities. Is it due to lack of infrastructure or reliable electricity? And why do we rank so low in the Ease of Doing Business Index?

 

[Flame Thrower]

Ok. I guess media analysis of the Indian economy has overblown the labour issue then, which led me to believe that was the primary cause. What are the reasons in your experience why foreign companies don't set up manufacturing units here the way they used to do with China? Because we have dirt cheap labour compared to most places, and land is also not that costly outside the cities. Is it due to lack of infrastructure or reliable electricity? And why do we rank so low in the Ease of Doing Business Index?

One word answer "clearances"...

I've gone through a documentary, it states that "a company can be setup in Singapore within a week, while in India it could take from 6 months to a year(if It has all the legal docs).

Some say that things are getting better, but there is a long way to go.

 

[ezsasa]

Ok. I guess media analysis of the Indian economy has overblown the labour issue then, which led me to believe that was the primary cause. What are the reasons in your experience why foreign companies don't set up manufacturing units here the way they used to do with China? Because we have dirt cheap labour compared to most places, and land is also not that costly outside the cities. Is it due to lack of infrastructure or reliable electricity? And why do we rank so low in the Ease of Doing Business Index?

What are the reasons in your experience why foreign companies don't set up manufacturing units here the way they used to do with China?
Foreign companies do setup shop in india, one should not be looking at big names. there are many in SME sector which have set up all over the country. just because they don't advertise doesn't mean they don't exist.

China offered heavy incentives at that time, the likes of which we cannot give.

Is it due to lack of infrastructure or reliable electricity?
Infrastructure is dependant on the individual states. foreign companies who want to cater to west asia and europe will setup shop in gujarat/Karnataka/ Maharashtra. Companies which want to cater to eastern markets usually setup shop in Andhra/Telangana/ Tamilnadu. Foreign companies which cater to indian market usually setup shop in central india and UP.

port connectivity was a point which was lacking. which is being addressed now.
usually in industrial states 24 Hr electricity is available. if power goes out there is always a uninterrupted connection but which is costly like 16Rs/unit(old rate). regular commercial electricity is slightly cheaper.

And why do we rank so low in the Ease of Doing Business Index?
First world bank ease of doing business is flawed methodology. They do survey only in mumbai and delhi. that too they only survey the experts not the actual companies.

anyways since it is considered the standard, i'd say corruption and lack of proper regulatory mechanism is the also a reason for low business ranking.

At the time of giving permissions it is wild west out there, every step of the way everyone needs kharcha paani and no fixed timelines when the process will be completed. this is where new companies wanting to come in get pissed. companies don't mind spending money, but they would like some fixed timelines.

 

[ezsasa]

One word answer "clearances"...

I've gone through a documentary, it states that "a company can be setup in Singapore within a week, while in India it could take from 6 months to a year(if It has all the legal docs).

Some say that things are getting better, but there is a long way to go.

if we want to compare and compete with singapore, then we should let go of state & central govt being authority to give licences and shift it to industrial cities.

build industrial cities each for every vertical and move all the licences to the city. people who want to setup company come with just cash and documents. everything from land to electricity to water to permissions are completed in one building.