Indian Economy: News and Discussion

Crazywithmath

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Looks like for now atleast 7% growth rate is our limit can't expect to grow much higher than that
They predicted 15% contraction last year as well. Predictions are just that; predictions. There are reports by different organisations who are predicting a return to 8% avg growth in the next 10 years as well. Whom will you trust?
 

angryIndian

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India’s inflation over past 6 years largely stayed between 4-6 %, even if we take max 6% over 6 years on 17.9 trillion , it comes to about 23.4 trillion. That’s still 11 trillion more than inflation adjusted number.

Doubling annual budgets does not occur that often in large economies.
The sad reality is that even with this doubling of budget,the revenues are just too small.

India simply does not generate money fit enough to run the country.The country's population is way beyond it's fiscal capabilities
 

Covfefe

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Why is he so adamant? Ego problem like one certain penguin?
Corruption problem- not the fact that CBN did corruption, but the fact that he could not. If Amravathi project went ahead as planned a lot of CBN supporters (Chaudharies and Reddys caste primarily, they own large swathes of land in AP&TL) would have benefited from the premeditated real estate deals. Jagan simply won't allow that. It's basically one more case of local politics screwing up national ambitions.
 

doreamon

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The sad reality is that even with this doubling of budget,the revenues are just too small.

India simply does not generate money fit enough to run the country.The country's population is way beyond it's fiscal capabilities
Its due to informal nature of economy . Britain govt with approx same level of gdp raise more money . Growth of formal economy has taken a leap with demonitization , gst , digital pay , financial inclusion , lower corporate tax , start up craze , manufacturing boost through PLI etc etc .. Expect govt earning to grow at a greater rate than gdp of the country in future ..
 

shiphone

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India’s inflation over past 6 years largely stayed between 4-6 %, even if we take max 6% over 6 years on 17.9 trillion , it comes to about 23.4 trillion. That’s still 11 trillion more than inflation adjusted number.

Doubling annual budgets does not occur that often in large economies.

View attachment 110475View attachment 110476
oh....
1.your GDP is also blooming at a high real growth rate at the same time --more GDP means more tax for spending.
/

2. the budgetary deficit occurs all the time....sometime it will be an unhealth high one.. I don't think you know nothing about it.


again, your India is a developing country with a growing large population . such growing rate is normal. I would remind you of the simple fact here again.

India GDP at current price was also raised from 11,233,522 cr(FY13-14) to over 20,00,000 cr(FY19-20) .
Union budget for 2014 was 17.9 lakh crore
Union budget for 2021 is 34.8 lakh crore
 
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ezsasa

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oh....
1.your GDP is also blooming at the real growth rate at the same time --more GDP means more tax for spending.


2. the budgetary deficit occurs all the time,somethime it will be an unhealth high rate... I don't think you know nothing about it.


again, your India is a developing country with a growing large population . such growing rate is normal. I would remind you the simple fact here again.
so your point is what exactly, i am not supposed to think positive about my own country's economic growth ? upset about aussies buying nuclear subs is it?
 

doreamon

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SKC

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Crazywithmath

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oh....
1.your GDP is also blooming at a high real growth rate at the same time --more GDP means more tax for spending.
/

2. the budgetary deficit occurs all the time....sometime it will be an unhealth high one.. I don't think you know nothing about it.


again, your India is a developing country with a growing large population . such growing rate is normal. I would remind you of the simple fact here again.
Don't spam the thread if you have nothing to contribute. Stick to china.
 

arnab

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reality is reality, sad or happy is a perspective.
the comparison is moot unless there is a level playing field. india is only now solving her problem with a informal economy, shadow banking,etc...which is life blood of any economy...the success in manufacturing story is also a recent one...one shud wait for at;east 2025 before making any projetions...because post GST and Post Covid indian economy, is structurally and legally very different, albeit with same players! IMPO
 

arnab

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oh....
1.your GDP is also blooming at a high real growth rate at the same time --more GDP means more tax for spending.
/

2. the budgetary deficit occurs all the time....sometime it will be an unhealth high one.. I don't think you know nothing about it.


again, your India is a developing country with a growing large population . such growing rate is normal. I would remind you of the simple fact here again.
while growth in a large population is normal, the composition of the areas of growth, the flow of capital in certain sectors and the long term prospects of an economy is what matters more, because GDP really means squat if the expiry date for such high rates come sooner than later, which basically was the case with the Asian Tiger economies ... and to a large extent, repeating itself in Vietnam and bangladesh, though Vietnam is more about high tech manufacturing while Bangladesh is mostly about cheaper labour making cheaper RMG that is a third of global textile export market. Indian investment, growth, comes mostly from advanced technology industry, services, hospitality,etc...and this was when the economy was not as integrated as one after implementation of GST, a shaky manufacturing and industrial base, and a largely unaccounted informal sector with zero access to formal banking channels, and a shadow banking system, working with its own mind. all thats mostly history now, or in the process of getting rectified. obviously there will be chinks in the armour. no economic model is without its share of blemishes...but indian growth is not just a function of its population, and certainly not of its taxes, though it certainly is a vital part of it ! as far as giovt spending is concerned. here again, the nature of spending matters. spending on welfare measures was the norm...now that is being supplemented by the welfare as well as focused on asset creation with multiplier effects. even earlier govts tried, it but coalition compulsions denied india that lead. generic commentary on indian economy is dime a dozen. so instead of speaking like panelists on newsrooms, its better to stick to facts...data is not the whole story, but how to read it also matters...and as the saying goes...if you torture the data, it will show whatever you want it to show...common sense and human behaviour ruled the study of economics, long before mathematics did!
 

ezsasa

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the comparison is moot unless there is a level playing field. india is only now solving her problem with a informal economy, shadow banking,etc...which is life blood of any economy...the success in manufacturing story is also a recent one...one shud wait for at;east 2025 before making any projetions...because post GST and Post Covid indian economy, is structurally and legally very different, albeit with same players! IMPO
not sure what shadow banking you are talking about, but as far as informal economy is concerned i don't consider it as a negative. it has proved to be a positive both during demonitisation and chinese virus epidemic. There should not a hurry to formalise the economy entirely, atleast until HDI in all states achieve parity.

formalisation means corporatisation of economy. some suit wearing chap sitting in mumbai corporate house will be deciding how a kirana store in manipur should operate based on spreadsheets prepared by a tie wearing chap whose idea of india is based on what he/she sees on twitter, this is not suitable in Indian business scenarios.
 

arnab

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not sure what shadow banking you are talking about, but as far as informal economy is concerned i don't consider it as a negative. it has proved to be a positive both during demonitisation and chinese virus epidemic. There should not a hurry to formalise the economy entirely, atleast until HDI in all states achieve parity.

formalisation means corporatisation of economy. some suit wearing chap sitting in mumbai corporate house will be deciding how a kirana store in manipur should operate based on spreadsheets prepared by a tie wearing chap whose idea of india is based on what he/she sees on twitter, this is not suitable in Indian business scenarios.
walking in the streets of india you can see so many innovative products be it food or whatever, if marketed properly can be a big businesses. something the PM alluded to but unfortunately twisted by indian luddites. they need not be managed by management students in corporate offices but they shud have access to means to expand their business and make a brand out of it if possible...sort of like haldirams, or bengali sweet makers in kolkata. this is what i mean by formalisation. i do not see anything wwrong with that. and by shadow banking i was mostly referring to the cooperative banking system that saw a huge churn recently thanks to the PMC episode. besides, my feeling is that kirana stores are basically the business of those who cant get a job but dont have access to enughcapital for a business either...which is a common case in Bengal and more so in kolkata ! they are used for sustainence of the family, and not really a business most wud want to expand. IMO
 

sauntheninja

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Rxbanda

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Well planned for the PM's birthday.

India vaccinates 2cr+ on 17th Sep.

The figure now stand at 2.20 cr with a few hours to go. Total vaccinations will cross 79 crores today. Slipper shot to those who thought India will not be able to achieve these numbers.

I hope these numbers help us in avoiding a third way.
 

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