Indian Economy: News and Discussion

[Kumata]

The middle class is the only reliable tax payer in the country industrialists get to write off loans and the poor get their loans waived off. This government has launched massive schemes like houses for all piped water for all if you guys are celebrating the successes of these schemes most of this money has come from taxes only

There is a Joke on Loans...

If u take a 1 crore loan... thats your problem but if you take a 100 crore loan than that's bankers problem.

Same is with GOI as well. These welfare schemes / PWD works / MCD tenders are what ... A way for relatives of Babus & MP / MLA' to get out of middle class trap and be rich forever.

Situation have improved a bit but not much. Earlier it was 10 paise reaching poor now it is perhaps 15 or 20 paise at max....that's only diff..

Houses for poor et all.. I have my own reservation on such schemes going via what i have seen on ground but that rant will be on some other day....Ciyao

HInt- There is a entire colony outside chandigarh settled on prime land near village called Dhanas under housing scheme. Visit there once to see what it turned out to be....

 

[NutCracker]

Story of agarbati .

India's Once-Struggling Agarbatti Industry Is On Its Way To Becoming Aatmanirbhar

Old regulations had stifled the industry and entrepreneurs were struggling with manufacturing using domestically available materials.But a committed industry, alongside a proactive government, has been pushing the business towards self-reliance.

swarajyamag.com

Recently came across this video

 

[mokoman]

India is far ahead in production of real things coal , iron , steel , wheat , meat , lumber etc. Compared to joke that is uk and France and even germany. Yet our nominal GDP is shown as equivalent to these minnows because they never capture true value of actual things but just papar transaction of western nations to falsely prop up their economies.

That's why only 1.7 trillion GDP Russia has send 17 trillions EU economy into recession with euro dropping down like flies and energy and food becoming luxury in so called rich europe. Lmao.

i get the gdp != economic prowness part . but he is leaving out entire service sector . those dont matter ?

 

[IndianHawk]

i get the gdp != economic prowness part . but he is leaving out entire service sector . those dont matter ?

His argument being in times of peril most of service industry becomes non - essential as we saw happening in COVID pandemic.
Like tourism / hotels / sports / entertainment etc. And nations depending upon them are now going bust . Sri Lanka , Italy and others .

In our case it is also very striking. Our internal services are very undervalued by the method of nominal GDP.

If I teach you a course of economics for 100000 rupees it only adds 1250 $ to our GDP.

While in usa I do the same thing for 12000 dollars and now US GDP is up by 12000 dollars.

I higher a driver for a day and 1000 rs are added to our GDP at most . ( 12 $).

While I higher a driver in usa for a day .( 20$ and hours for 10 hours ==200$) and 200$ are added to GDP of usa.

And you know which driver will work more !!!

So service economy while very important is overrated in dollar terms and doesn't represent true picture.

 

[NutCracker]

I higher a driver for a day and 1000 rs are added to our GDP at most . ( 12 $).

While I higher a driver in usa for a day .( 20$ and hours for 10 hours ==200$) and 200$ are added to GDP of usa.

And you know which driver will work more !!!

So service economy while very important is overrated in dollar terms and doesn't represent true picture.

Thats where PPP comes into picture and we still lack per capita numbers despite our multiplier being around 3x .

 

[Crazywithmath]

Economy en-route to achieve 8-8.5% growth based on Q1 data: Finance Ministry

Earlier on 31 January, the Economic Survey tabled in the Parliament projected the real GDP during 2022-23 to grow at 8.0-8.5 per cent.

www.livemint.com

If this holds true, this is going to be huge. Nomura predicted 4.7% growth for the year, this will be serious beating of expectations.

That projection is for calender year 2023 and not for fiscal 2023-24; fo4 FY 2023-24 their projection is 5.5%ish which, if holds true, would effectively mean that the global economy will COLLAPSE. And last but not least, at the end of the day these are just projections so take them with truckload of salt.

 

[HitmanBlood]

RBI June 22 State Finances risk analysis highlight debt position of key Indian states for 2021-22. Debt as % of GDP..

 

[Shuturmurg]

In my last post I talked about fake economics collapsing and real economy prevailing.
here on twitter we see some analysis being done about real economy of food , minerals and energy and not just bullshit debt sponsored fake GDP figures paddled by Western countries which show india on par with piddly joke uk.

Have a look Guys some real production data.

While gdp might not reflect properly, this method is stupid. There is no consideration for product complexity. Uk doesn't produce steel because it is cheaper to produce it elsewhere and they want to offset their polluting low to medium value added industry to some place else, and not because it cannot. India doesn't manufacture jet engine because it cannot as of now!!

 

[Blademaster]

While gdp might not reflect properly, this method is stupid. There is no consideration for product complexity. Uk doesn't produce steel because it is cheaper to produce it elsewhere and they want to offset their polluting low to medium value added industry to some place else, and not because it cannot. India doesn't manufacture jet engine because it cannot as of now!!

Uk can't produce ballistic missiles or its own cryogenic engines either but India can. So what's your point?

 

[FalconSlayers]

TVS Motor lines up fresh investments of Rs 1,000 crore in EV push

This is second consecutive year of Rs 1,000 crore investment lined up by the two-wheeler major from South India, a part of which will go into doubling its EV production capacity to 25,000 units a month by the end of this year and further increasing it to 50,000 units a month in the fol

economictimes.indiatimes.com

 

[HariPrasad-1]

https://pib.gov.in/PressReleasePage.aspx?PRID=1841477#:~:text=SERVICES%20TRADE,2021%20(USD%2020.30%20Billion)

.

Huge trade deficit, 17.5 billion USD for June, and 45 billion of Q1. At this rate we will have somewhere between 180-200 billion $ in deficit for the year. Remittance and FDI won't be able to cover for this, will lead to dip in forex reserves. Also, since fed is raising rates, there might be some FII outflow as well.

Biggest silver lining is electronics, exports are rising at 60% and imports 37%, so will export more than import in next few years.

On separate note, we will have trade of 1.7 to 1.8 trillion this year. India's trade to GDP% hovers in low 40's for last few years (40-43%), but this will then mean either our trade to GDP% has either increased suddenly to over 50% or our GDP is under reported and needs to be rebased. I think its the 2nd.

SBI had predicted Trade surplus from 2021-22. FY 2020-21 was highly encouraging with a very narrow trade deficit, in which first 2 Quarter trade surplus washed out in second 2 quarters and ultimately resulted in a narrow trade deficit. This was a trend in direction of India being a trade surplus economy. However, this trend took U turn and moving the direction of huge trade deficit. Some urgent actions are required and non essential imports should be restricted with a heavy hand.

 

[Shuturmurg]

Uk can't produce ballistic missiles or its own cryogenic engines either but India can. So what's your point?

My point is the above metric arbitarily selects 5-6 things without any assessment of product complexity. The entire idea of globalization was that richer countries can leave lower value added tasks to poorer countries so that they move to higher value added tasks.

Manufacturing generic steel, aluminium , etc is not high complexity task, they are medium complexity at best.
Manufacturing commercial aircraft, semiconductor, etc are high complexity manufacturing, hence value add is more. That is the reason US manufacturing output value is 60% of China's even though workforce engaged in manufacturing is much lower.

I agree somewhat with the services economy part though.

 

[Blademaster]

My point is the above metric arbitarily selects 5-6 things without any assessment of product complexity. The entire idea of globalization was that richer countries can leave lower value added tasks to poorer countries so that they move to higher value added tasks.

Manufacturing generic steel, aluminium , etc is not high complexity task, they are medium complexity at best.
Manufacturing commercial aircraft, semiconductor, etc are high complexity manufacturing, hence value add is more. That is the reason US manufacturing output value is 60% of China's even though workforce engaged in manufacturing is much lower.

I agree somewhat with the services economy part though.

Hmm. Perhaps you should compare the number of man hours necessary to complete each product for each nation. It would show how efficient and how productive each country's workers are.

 

[HariPrasad-1]

Ya'll Nibbiars

View attachment 164116

We need to insist on Rupee payment for export as well as Import. Look at the wonder what Russia did. Ruble was 130 against USD a year ago which is 55.63 today. This is an extraordinary appreciation. We should follow the same path. Putin ignored the payment in USD and instated in payment of Ruble only which made ruble powerful. INR is undervalued atleast 4 times compared to its purchase power (Our GDP in PPP is 4 times higher) This is a loot. We should take all necessary steps to ensure INR appreciation.

 

[Blademaster]

And what would we buy with rupees? You have to have customers wanting to buy our stuff and be willing to pay rupees to get our stuff.

 

[HariPrasad-1]

Oil refiners in focus: Singapore GRMs at life high

Singapore Gross Refining Margins – Asian benchmark – touched new all time highs of $25.2 per barrel mark, on the back of rising demand for refined products globally. This is expected to benefit Reliance Industries, IOCL, BPCL, HPCL, MRPL, and Chennai Petroleum as they process raw crude into...

www.timesnownews.com

It was 2$ in Q1FY22 ,

AMBANI KAKA PRINTING MONEYYYYY..

With the arrival of Solar cell and energy efficient batteries, oil demand is all set to fall in a decade or so. However, it is going to give us a big pain before that happens.

 

[HariPrasad-1]

Aequs & Hindalco in strategic alliance for commercial aerospace sector

Aequs operates the largest aero machining facility in India with over 1 million machining hours delivered per year from the Belagavi Aerospace Cluster.

Aequs & Hindalco in strategic alliance for commercial aerospace sector

Aequs operates the largest aero machining facility in India with over 1 million machining hours delivered per year from the Belagavi Aerospace Cluster.

www.moneycontrol.com

If we do not invest heavily in aerospace sector, we are going to loose a big chunk of not only business but foreign exchange as well. Our air travel is increasing at a rapid space. we need lots of plane. We should put less than 20 or 40 seater plane in negative least by 2026. If we are unable to do it, we are sure to miss out a big attractive business sector .

 

[HariPrasad-1]

Story of agarbati .

India's Once-Struggling Agarbatti Industry Is On Its Way To Becoming Aatmanirbhar

Old regulations had stifled the industry and entrepreneurs were struggling with manufacturing using domestically available materials.But a committed industry, alongside a proactive government, has been pushing the business towards self-reliance.

swarajyamag.com

Because our visionless leadership used to see India from the spectacles of westerners and never had a fair Idea of India's potential. Subsequently, USSR was able to impress Indian leadership with its rotten communist economic model. Things started falling in line with Rajiv Gandhi becoming PM but later on he back tracked. Real change happened in the time of Narsimha rao. Vajpayee ji took it to new height. Chidambaram spoiled it. Modi is average so far as economic development is concern though he is very good in some other areas.

 

[HariPrasad-1]

Successful testing of India’s first 5G private network announced by Bharti Airtel
The nation's first 5G private network was successfully tested by Bharti Airtel at Bosch Automotive Electronics' plant in Bengaluru. The trial occurs in advance of a 5G spectrum auction.


Posted byMadhavi Gaur Published On July 19th, 2022
View attachment 164489


The nation’s first 5G private network was successfully tested by Bharti Airtel at Bosch Automotive Electronics’ plant in Bengaluru. The trial occurs in advance of a 5G spectrum auction in the midst of a conflict between telecom and IT firms over the allocation of airwaves for private networks. Using the government-allocated trial spectrum, Airtel deployed two industrial-grade use cases at Bosch’s facility for quality enhancement and operational efficiency.

KEY POINTS:

• In both quality enhancement and operational efficiency, automated activities were driven by 5G technology, including mobile broadband and ultra-reliable low-latency communications, providing faster scale-up and fewer downtimes, the business said in a statement.
• The private network, which was set up as a test, can handle hundreds of linked devices and provide throughput of several GBPS.
• According to Ajay Chitkara, director and CEO of Airtel Business, Airtel is committed to assisting India’s digital transformation and the growth of its business as it aspires to achieve global size.
• According to Subhash P, head of technical functions at Bosch Automotive Electronics India, the Airtel Private 5G network’s low latency and dependable connectivity, which were experienced at our plant during the proof of concept, have allowed them to increase production and efficiency.
• The use of 5G will greatly reduce the amount of wired IT infrastructure and improve operational effectiveness.
  
  
  
  

  Successful testing of India’s first 5G private network announced by Bharti Airtel

  The nation's first 5G private network was successfully tested by Bharti Airtel at Bosch Automotive Electronics' plant in Bengaluru. The trial occurs in advance of a 5G spectrum auction.

  currentaffairs.adda247.com
  

  CBRE report reveals Karnataka to become the data centre destination of choice; Bengaluru to lead the growth - Elets eGov

  Karnataka is set to be a premium data centre (DC) destination in India, said a recent CBRE report.

  egov.eletsonline.com

We should wipe out Chinese competition from this sector. Huawei is falling rapidly. Reliance and Bharti should replace Chinese companies.

 

[ezsasa]

My point is the above metric arbitarily selects 5-6 things without any assessment of product complexity. The entire idea of globalization was that richer countries can leave lower value added tasks to poorer countries so that they move to higher value added tasks.

Manufacturing generic steel, aluminium , etc is not high complexity task, they are medium complexity at best.
Manufacturing commercial aircraft, semiconductor, etc are high complexity manufacturing, hence value add is more. That is the reason US manufacturing output value is 60% of China's even though workforce engaged in manufacturing is much lower.

I agree somewhat with the services economy part though.

That guy was coming from a nuanced angle of sustainability of regional supply chain resilience, it is an extension of argument of 'de-globalisation" that is being talked about these days.

regional supply chain resilience comes into play in case of a what if scenario, where large economies had outsourced critical elements of their economy to far away suppliers and and now the supplier is no longer supplying, in this case china and russia.

so basically it was a case of nitpicking data to highlight a potential vulnerability in european economies. he says so himself in his thread.