Indian Economy: News and Discussion

Haldilal

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Ya'll Nibbiars

 

Haldilal

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Ya'll Nibbiars The Closure of IRSDC is against the Mission GatiShakti. This decision will shatter dreams of crores of Indians who wish to have airport like railway stations in India Stop such anti infra decisions. IR has several useless organisations, IRSDC was exception. Disappointed.
 

jackprince

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Buy electric car .. At max u ll drive 100-150 km per day .. The way things are right now it is prudent to have a electric vehicle along with a petrol one . Fuel price not coming down future .

.
Buy? You think buying a new vehicle is child's play for a middle class family? My car is just 4 yrs old and if I sell it to buy a new one, I would barely get Rs.3.5 lakh (if lucky), and would have to shell out another Rs.7 lakh for EV(given only Nexon is worth buying one). Sorry, even though the expense can be manageable and wont break my bank, it would still be an unnecessary expenditure.

Now, the point is not my trouble with petrol price. I can manage and extra Rs 3k per month isn't going to break me. But, I am relatively comfortable finance-wise. What about those who are not? Even motorbikes run on petrol and a huge majority of low income group people depend on motobikes to commute.

Newsflash, there has been almost nil growth of salary in unorganised sector and full chance of losing job if an employee fails to commute. The bikes and public transport are their lifelines. Every single thing has gotten expensive.

The stiff inflation in everything is wearing thin people's patience. But, I guess some people are too busy inaugurating Boy's hostel to notice that.
 

avknight1408

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CRISIL research says that private investment cycle will revive soon. If it happens then it's good news as private sector capex has been very low for a decade.

----xxx----

Conditions Similar To Early 2000s Could Aid Capex Revival: Crisil

A combination of global liquidity, low interest rates and healthy balance sheets, the conditions which backed a pick-up in the investment cycle in the early 2000s, could support a rebound in capex over the next couple of years. According to Crisil Research, a number of macro and micro triggers could come together to kick-start a private investment cycle. These include: A ratio of free cash flow to capex which is at a decadal high of 1x. Low corporate tax rates and decadal low interest rates. Rising capacity utilisation across large firms in key sectors like steel. Government support through policy measures such as the Production-Linked Incentive scheme.

While industry-wide capacity utilisation has remained well below 80%, larger firms are using up more of their installed capacity, data from the report shows. "Large firms in core industrial sectors (steel and cement) as well as consumption sectors (fast-moving consumer goods or FMCG and pharma) have gained significant market share over the past few years, especially during the pandemic,
necessitating further investments," Crisil said

For instance, in the steel sector, large players are operating at a utilisation rate of close to 82%, compared to 65% for smaller firms. Improved capacity utilisation, together with deleveraged balance sheets, have resulted in large players announcing a series of expansion plans for the next three years, said Crisil, adding that greenfield capex may follow from fiscal 2024 onwards.

Crisil also cites the 'Industrial Entrepreneur Memorandum' filings with the government, the pace of environmental approvals, and the surge in foreign direct investments investments in support of its view that a revival of the capex cycle is in the offing. The IEM filings, according to the report, are showing investment activity at its highest in a decade.
Metals and electrical and electronics have the highest share in announced investment intentions. Asset-heavy sectors such as metals, cement, and mining will see more localised investments, led by large players at their existing sites (brownfield capex), said Crisil. In comparison, asset-light ones such as pharma, telecom equipment, mobile, and electronics will see more greenfield capex, led by
PLI as well as supply-chain diversification, it added
In addition, pandemic-induced digitisation and focus on environmental, social, and governance or ESG will drive green capex, the report said. "That said, the new capex cycle will depend on government support and policy measures, implementation thereof."
 

Tang

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Buy electric car .. At max u ll drive 100-150 km per day .. The way things are right now it is prudent to have a electric vehicle along with a petrol one . Fuel price not coming down future .

.
CNG would be better
 

Chandragupt Maurya

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Population has nothing to do with purchasing power. It is the per capita income per family that matters. Kerala is wealthy. Massive foreign remittances from ME and First World.

FYI - Kochi is more expensive to live and more cosmopolitan than Bangalore.

Surprised?
yeah population wise Kanpur metropolitan is biggest in north india after Delhi-NCR but the GDP of Kanpur as well as retail consumption is very low
GDP of Ahmedabad is much lower than Kolkata still its ranked higher than Kolkata in retail consumption so maybe it’s the people from other areas visiting Ahmedabad for shopping and driving the retail sector of Ahmedabad
same can be true about Kochi city the NRIs living in gulf countries shopping from kochi leading to high retail consumption
 

sauntheninja

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Ya'll Nibbiars The Closure of IRSDC is against the Mission GatiShakti. This decision will shatter dreams of crores of Indians who wish to have airport like railway stations in India Stop such anti infra decisions. IR has several useless organisations, IRSDC was exception. Disappointed.
Seen a lot of people complain on twitter too what's the significance of this institution and why was it closed?
 

Haldilal

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Seen a lot of people complain on twitter too what's the significance of this institution and why was it closed?
Ya'll Nibbiars The development of the Railway stations was their responsibility but they were slow. But giving back the station development to the Zonal Railway is extremely bad idea.
 

sauntheninja

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doreamon

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Great .. We need investment and employment to come to india no matter from where it comes from . Anything that does nt threaten national security shd be welcome .
 

doreamon

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Odisha has cleared 3 lakh crore worth investment under single window clearance system .

FB-BqnOacAAkpjC.jpeg.jpg
 

ezsasa

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They have come to undercut domestic manufacturers. below post from 2012, notice the declared intentions and we know what happened after that.

Chinese target smartphone incumbents with cheap phones

Mon Feb 27, 2012 7:03am EST

* Huawei sees 2012 smartphone sales rising 3-fold to 60 mln

* Huawei says ready to undercut rivals prices by 15-20%

* Huawei rolls out top-of-the-range model Ascend

By Tarmo Virki and Lee Chyen Yee

BARCELONA/HONG KONG, Feb 27 (Reuters) - While veterans Nokia and BlackBerry struggle for survival, the power in the surging smartphone industry has started to move to China where agile manufacturers are coming out with models comparable to their Western rivals, but at cheaper prices.

In 2012, Chinese vendors Huawei Technologies Co Ltd and ZTE Corp are set to grab more market share globally, analysts say, as they shift away from making basic feature phones to churn out more smartphones, a sector where growth is strong and profit margins are bigger.

The two vendors combined sold 35 million smartphones last year, around 7 percent of the global market, and see 2012 sales rising to 90 million, doubling their market share to 14 percent.

Huawei and ZTE, among the world's largest makers of telecom network equipment, have expanded into handsets and the tablet PC business and are now selling smartphones running on Google's Android operating system, taking on the lucrative market dominated by Apple Inc and Samsung Electronics Co Ltd.

At the Mobile World Congress in Barcelona this week, Huawei and ZTE unveiled their top-of-the-range models Ascend and Era, with technologies comparable to any of the top Android models.


EYEWATERING

Huawei said it aims to sell more than 60 million smartphones this year, a three-fold increase from 2011, while it is ready to sell products at prices 15-20 percent lower than the market.

"Huawei has firmly laid down the gauntlet to established rivals and its sales goal is an eyewatering target that will send a shiver down rivals' spines," said Ben Wood, head of research at CCS Insight.

Chinese smartphones, such as Huawei's IDEOS and ZTE's Blade, are gaining popularity worldwide, especially in emerging markets from Africa to India, mainly due to aggressive pricing and helped by selling network equipment to telecom carriers.

"Having the infrastructure business is a great benefit for us," He Shiyou, chief of ZTE's phone business, told Reuters, adding the company was packaging phones together with network gear when approaching carriers.

ZTE expects operator-partnerships to help it to double its smartphone sales to 30 million handsets this year.

Even at retailers, some of lower end models of Huawei and ZTE can be bought for around $100, the level where the demand is the highest, and there is no end in sight for falling prices.

Chipset vendor Spreadtrum, smaller rival to Qualcomm and Mediatek, has rolled out a platform for $40 smartphones for the Chinese market. Late last year, Qualcomm launched a new set of its flagship Snapdragon chipsets targeted at low-cost Android smartphone makers.

"Mass market smartphones represent an important opportunity," said Steve Mollenkopf, Qualcomm's president and chief operating officer. "The mass market smartphone segment is very competitive and device manufacturers need to launch products faster at lower engineering costs."

Growth in the global smartphone market is expected to slow in 2012 from around 60 percent growth seen in 2011, but it will still expand around 40 percent this year, helped by falling prices, research firm Gartner said.


SALES JUMP

ZTE and Huawei roughly doubled their global cellphone sales last quarter, outselling BlackBerry's RIM and HTC. In the smartphone sector, they continued to gain market share as they expand their reach in markets such as North America and through improved Android models, Gartner said.

"Chinese vendors are on the roll. China's smartphone market is surging and they use this momentum as a springboard to grow abroad as well," said Neil Mawston, analyst at research firm Strategy Analytics.

Nokia has seen its global market share in smartphones falling to 12 percent in the last quarter from 30 percent a year earlier and has suffered also from ageing smartphone offering as it revamps to use Microsoft software.

Nokia warned last month sales of its Symbian smartphone platform would not reach its expectations of more than 150 million units, while LG has struggled with shrinking market share for several quarters. Analysts said the success of the Chinese firms was starting to hit Sony and HTC as well.


BRAND BUILDING

Consumers like 15-year old Lin Jingfeng, a student in the southern boomtown of Shenzhen in China, bought a smartphone from ZTE last year at a fraction of the cost of an iPhone.

"I bought ZTE because it's much cheaper than the other phones that I saw and it's good enough for my purposes," he said. "I don't play much games and I usually just use it to call my friends, surf the Internet or update my weibo (microblogging site)."

Analysts said Chinese firms needed to invest more into building their brand in developed markets, and could take a page from Taiwan's HTC, which has made a splash in mature markets.

"I believe we will become world's top class brand in devices," Shao Yang, marketing chief of Huawei's devices unit, said in an interview.

Huawei and ZTE said the key for kick-starting smartphone sales was close co-operation with operators.

"The device is a big pain-point of an operator and we have a good channel to discuss with their technology and marketing departments. In Huawei we solve a lot of problems for them," Yang said. "We care for our customers like no-one else."

Chinese target smartphone incumbents with cheap phones | Reuters
 

fooLIam

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It's bad, they will be undercutting their indian competitioner and ofcourse will be outsourcing components from china.
What happens to 'say no to china' after galwan. It seems nothing has changed besides banning Chinese apps.
 

sauntheninja

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It's bad, they will be undercutting their indian competitioner and ofcourse will be outsourcing components from china.
What happens to 'say no to china' after galwan. It seems nothing has changed besides banning Chinese apps.
Like we are in any position to isolate ourselves from the second biggest economy in the world people need to be realistic here our huge consumer base wants products and our domestic industry just cant compete with the demand so our imports keep rising
 

doreamon

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It's bad, they will be undercutting their indian competitioner and ofcourse will be outsourcing components from china.
What happens to 'say no to china' after galwan. It seems nothing has changed besides banning Chinese apps.
Digital investment is different from industrial investment .Industrial investment provides lots of job opportunity including backward and forward . India going to be a hub of electric vehicle in future and every component ll be manufactured here .

This company exported 4 mil e vehicle to europe and usa in 2019 alone and they are saying their entire production unit ll be transfered to india .

China's demography and increasing wage ll force many companies to migrate outside in future just like usa companies migrated to China .. then why not india ..

Indian auto industry is mature and they can compete . Our mobile companies lacked innovation and quality product before chinese came and they were also importing all components from china . So nothing to be nostalgic abt .
 

JBH22

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Digital investment is different from industrial investment .Industrial investment provides lots of job opportunity including backward and forward . India going to be a hub of electric vehicle in future and every component ll be manufactured here .

This company exported 4 mil e vehicle to europe and usa in 2019 alone and they are saying their entire production unit ll be transfered to india .

China's demography and increasing wage ll force many companies to migrate outside in future just like usa companies migrated to China .. then why not india ..

Indian auto industry is mature and they can compete . Our mobile companies lacked innovation and quality product before chinese came and they were also importing all components from china . So nothing to be nostalgic abt .
The main changes wrt China 1970s and present India are as follows imho;
1. Competitors like Vietnam, Thailand are attractive alternatives. COVID 19 has forced companies to decentralise their supply chain.
2. India is a huge market, but also susceptible to incessant trouble employment laws which countries like China did not impose on investors.
3. Our wage cost is also not that cheap.

But India is a huge market and if we arm twist them to set up base to sell in our country, it is still a viable option for any manufacturer. Let us hope we never embrace that socialism ideas again.
 

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