Indian Economy: News and Discussion

ezsasa

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You can't judge IR performance based on what will happen in future. I'm sure IRSE babus will find ways to sabotage this (like they did in 2019).

It seems everyone here believe that railways is doing fine and are happy with "world class" stations and trains. I was just saying Gadkari had better performance (my opinion)
just to add a nuance into the conversation, focus on roadways is a relatively recent . during british raj and India's socialist era, railways was given more importance so much so that they had their own budget until recently. it's only after vajpayee govt that focus shifted to roadways.

in effect if you were to form this opinion pre-1999, you would be saying railways is being developed while neglecting roadways.

apparently focus on Rural and urban roads is a BJP's political commitment as per party resolution made decades ago, as per the new book "The Rise of BJP" co-authored by Ila Patnaik and Bhupender yadav.
 

FalconSlayers

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Their EV Truck
1642420553383.jpeg






 
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Knowitall

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Inflation continues to rise.


India was probably one of the few countries were oil prices previously were higher than that of developed countries despite the massive difference in GDP per capita.

Tai is lucky that most of the middle class is stuck in the cycle of jobs thus leaving no time for protests.

Push comes to shove she will be the first one to be thrown off from the govt by the people.
 
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Crazywithmath

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Inflation continues to rise.


India was probably one of the few countries were oil prices previously were higher than that of developed countries despite the massive difference in GDP per capita.

Tai is lucky that most of the middle class is stuck in the cycle of jobs thus leaving no time for protests.

Push comes to shove she will be the first one to be thrown off from the govt by the people.
RBI will not hike rate; inflation is well within their target range. And WPI does not affect the end consumer. Just because CPI breached 5% in a month TT started fear mongering and on top of that Kaushik Basu, of all, got quoted! Inflation front is well within control as of now.
 

Covfefe

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RBI will not hike rate; inflation is well within their target range. And WPI does not affect the end consumer. Just because CPI breached 5% in a month TT started fear mongering and on top of that Kaushik Basu, of all, got quoted! Inflation front is well within control as of now.
Given the possibility of a lockdown and the subsequent slowdown of economy, RBI might be willing to let go off the 6% mark for 3 subsequent quarters. Given the election season, government may decide otherwise but RBI has no incentive to do so
 

Crazywithmath

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Expect duty rationalization to continue this year as well, i.e., simple avg and weighted avg tariff will fall further.

FD1W9lGUcAUMmHf.png




Given the possibility of a lockdown and the subsequent slowdown of economy, RBI might be willing to let go off the 6% mark for 3 subsequent quarters. Given the election season, government may decide otherwise but RBI has no incentive to do so
The RBI themselves are not expecting much impact of the wave. Going by their bulletin, they are expecting supply side disruption and consequently inflation to gradually ease out. So a rate hike is out of question for now imo.
 

angryIndian

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Well he’s been optimistic for long time, just curious can anyone dig hismold statements to find out if he turned out to be right or wrong? Just curious.

Yes might know more, afterall the richest Asian.
View attachment 132344
I wonder what's the story behind this fasciation for the 5 trillion $ thing, is this a metric of achievement or something out of the ordinary ?
 

FalconSlayers

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I wonder what's the story behind this fasciation for the 5 trillion $ thing, is this a metric of achievement or something out of the ordinary ?
Metric of achievement, just like life milestones like silver jubilee, golden jubilee or platinum jubilee. This $5 Tn is like an economic milestone, next being $10 Trillion.
 

no smoking

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Agreed.
India with its democratic values will never have the efficiency that Chinese state-managed factories have.
That is loser's excuse. Even today, the Germany, Japanese, etc, all have much higher efficiency than Chinese.

And the major exporting manufacturing companies are either privately owned or foreign companies.

The main attraction for western countries there was a large pool of slave labor. While there are reports of "slavery" in India, these are nowhere close to what China has had or has. Vietnam is like a small China, just more practical and freer on culture and faith. Therefore, working hard and compliance are highly valued there.
Well, if you check the ground facts:

These "slavery" workers receive 5 times more than Indians workers according to India media:

make in india: Rs 184: This is the 'Make in India' edge we have over Chinese factories - The Economic Times (indiatimes.com)

India is structurally akin to Australia, NZ, UK, etc., with its chaotic democratic systems, that will always debate and put unionism first.
No, you are not. In Australia, NZ, UK, etc, the so called "chaotic democratic systems" is only referred to government, not our economic system.
 

no smoking

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We are talking about 2004. Like as you said China was taking off in manufacturing. The Indian government at that time NDA wanted to focus on manufacturing if they happen to win in 2004 elections which unfortunately they lost. Until now the period between 1999-2004 remains the best any Indian government has gotten in terms of economic reforms and job creation. That 6 year period created 65 million jobs, that's 10 million each year. They undertook massive highway construction. They opened up the economy for more foreign investment. They made many public sector units profitable and even sold off some to private players.
All these were brilliant, but the problem is: Chinese did far more and much earlier.

According to a report if they would have won in 2004, they would have diverted some manufacturing which would have gone to China to India instead. Back then there wasn't much difference between India and China in economic terms. So it was highly feasible it would have happened.
Then you are missing the facts: there were huge difference between India and China in economic terms around 2004:
1642461693261.png


From the table in the above, you can see that in those key areas for manufacturing, Chinese had 2 or 3 times advantage over India in 2005.

And if we check those raw materials critical for manufacturing, you can see that Chinese were far ahead of India in 2004. For example, Chinese produced 128.5 mt steel in 2000 when India produced 26.9mt. In 2007, Chinese production was 494.9 and India was 53.5. This means Chinese factories can get much cheaper materials comparing to Indian competitors.

And most importantly, you miss a key point: TIMING! The world manufacturing companies started their massive investment in China from 1995-1996. Generally, it took 3-4 years to build the factories, so these factories started to produce in 2000. Considering the time of sorting out the issues like quality, management, logistic, these factories wouldn't see any profit in first 2-3 years. So, in 2004, the majority of these factories just started to produce profits. But as an investment project, the total profit was still not enough to cover the whole investment. In other words, these manufacturing companies had no money to create another factories in India at the time.

My point is: no matter who was in the power, India wouldn't be able to get much manufacturing from China in 2004 because:
1. The infrastructure wasn't ready at the time (it took 10 years for India to get into that position);
2. The economic circle wasn't finish ( Chinese started to receive these manufacturing from South East Aisa when last circle finished in 1990s).
 

jadoogar

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Ya'll Nibbiars many of you would have knew that the Mleechas heavily raised fund through bond issues in the International market. We are now in the perfect situation to raise funds on the International market for the Various Infrastructure Developments.
India is swimming in Foreign Currency and RBI must keep buying to prevent INR from rising. All monies spent in India will be INR and therefore it is INR that has to be raised for investment, infra etc etc. Raising Foreign Currency loan just puts more pressure on the RBI to buy even more 0% (or lower) yielding Foreign Currency. And India is anyway positive on the foreign currency account now (hence foreign exchange reserves rising)... adding more exports will make it even more positive....

PRC thugs did raise a lot of foreign currency equity and debt. It helped them subsidize their exports and additional surplus was stolen by CCP chaps. So there was an outlet...
 

Haldilal

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India is swimming in Foreign Currency and RBI must keep buying to prevent INR from rising. All monies spent in India will be INR and therefore it is INR that has to be raised for investment, infra etc etc. Raising Foreign Currency loan just puts more pressure on the RBI to buy even more 0% (or lower) yielding Foreign Currency. And India is anyway positive on the foreign currency account now (hence foreign exchange reserves rising)... adding more exports will make it even more positive....

PRC thugs did raise a lot of foreign currency equity and debt. It helped them subsidize their exports and additional surplus was stolen by CCP chaps. So there was an outlet...
Ya'll Nibbiars thats why I said we are in better state our exports are growing, the international borrowing are more favorable to us, need money for the infrastructure development, and which in turn can support more productivity.
 

Haldilal

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Ya'll Nibbiars there is no Pringles manufacturing unit in India. Sad.
 

RoaringTigerHiddenDragon

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That is loser's excuse. Even today, the Germany, Japanese, etc, all have much higher efficiency than Chinese.

And the major exporting manufacturing companies are either privately owned or foreign companies.



Well, if you check the ground facts:

These "slavery" workers receive 5 times more than Indians workers according to India media:

make in india: Rs 184: This is the 'Make in India' edge we have over Chinese factories - The Economic Times (indiatimes.com)


No, you are not. In Australia, NZ, UK, etc, the so called "chaotic democratic systems" is only referred to government, not our economic system.
The median manufacturing wages in China are double that of India. That’s it.

on the other hand Bangalore has the highest median wages in Asia barring Tokyo, Singapore, Hong Kong - thanks to the massive number of IT jobs there. Bangalore also has the most grade A office space in Asia after Tokyo. Hyderabad and Bangalore are the fastest growing cities in the world - no Chinese city even comes close. Finally, in Mercer quality of life index, Chinese cities are at the same rank zone as Indian cities are - I.e they both suck. I guess the CCP does not tell the peasants about all these uncomfortable facts.

you a wumao by any chance? Your claims are just retarded. Only wumaos make such insanely stupid claims. It is not about democracies. China is authoritarian where people are treated worse than dirt, while in India they are not - all the while China ensuring mean living standards that are only as good as India’s (see Mercer QoL index).
 

afako

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How many know that L&T Hydrocarbon is the top ranked EPC contractor for many years in the Middle East market?


The company recently won 2 orders of value exceeding $1 billion each.


We need more such core engineering companies from India.
 

Haldilal

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How many know that L&T Hydrocarbon is the top ranked EPC contractor for many years in the Middle East market?


The company recently won 2 orders of value exceeding $1 billion each.


We need more such core engineering companies from India.
Ya'll Nibbiars many.
 

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