Indian Economy: News and Discussion

[another_armchair]

All those big talks on textile production so far have remained bogus, as long as current government is deluded into thinking that the services sector is the only thing India needs to grow like that clown raghuram rajan says then we won't be able to improve our economy. Mega textile clusters in Bimaru states would mean massive reduction in poverty, massive reduction in migration to other states and massive improvement in India's overall socio-economic indicators.

My friend tried his hand at making garments/clothing out of hemp. Wanted to price it reasonably but no manufacturer was willing to sell it directly. They told him to negotiate through their 'group' of traders who demanded insane margins on the fabric.

Tired of negotiating, he imported it from China. Great quality, dyed in the color he wanted.
He did decent biz for a year but got bogged down with family issues and was forced to shut it down.

Worse, hemp farming is tightly controlled and only a couple of states have come forward to exploit commercial hemp farming. Here also you need connections, pay bribe and get repeatedly harassed by assholes from the narcotics bureau and cops.

Another acquaintance tried her hand at growing hemp on their ancestral land(plenty and plenty) but gave up because of the endless wait, bribe and harassment. She imports stuff from China now and gifts to corporates. Another dream died.. then people rage why Indian's give up their citizenship and simply leave.

Nobody seems to be in a tearing hurry to address the mass unemployment issue here. Rather give them allowance and let their youth fade into middle age in anticipation of that government job.

Needless to mention, China is the largest producer of hemp fabric in the world.

 

[Suryavanshi]

My friend tried his hand at making garments/clothing out of hemp. Wanted to price it reasonably but no manufacturer was willing to sell it directly. They told him to negotiate through their 'group' of traders who demanded insane margins on the fabric.

Tired of negotiating, he imported it from China. Great quality, dyed in the color he wanted.
He did decent biz for a year but got bogged down with family issues and was forced to shut it down.

Worse, hemp farming is tightly controlled and only a couple of states have come forward to exploit commercial hemp farming. Here also you need connections, pay bribe and get repeatedly harassed by assholes from the narcotics bureau and cops.

Another acquaintance tried her hand at growing hemp on their ancestral land(plenty and plenty) but gave up because of the endless wait, bribe and harassment. She imports stuff from China now and gifts to corporates. Another dream died.. then people rage why Indian's give up their citizenship and simply leave.

Nobody seems to be in a tearing hurry to address the mass unemployment issue here. Rather give them allowance and let their youth fade into middle age in anticipation of that government job.

Needless to mention, China is the largest producer of hemp fabric in the world.

Our nation isn't a place for small guys bribe, lobby, pay ransom until you get big.
Most won't eveb be able to start.

 

[Blademaster]

second thought that occurred is forex outflow
Tatas must be having forex reserves of their own outside the country, isn't it?
=======
Air India is close to placing historic orders for 500 jetliners worth tens of billions of dollars from both Airbus and Boeing. (Reuters)

If I was the GoI I would prevent the Tatas from placing a large order until Boeing/Airbus makes a firm commitment to Make in India programme. And why the hell can't we design & manufacture our own planes. We have enough domestic demand to satisfy the minimum requirement to building planes domestically.

 

[jadoogar]

second thought that occurred is forex outflow
Tatas must be having forex reserves of their own outside the country, isn't it?
=======
Air India is close to placing historic orders for 500 jetliners worth tens of billions of dollars from both Airbus and Boeing. (Reuters)

Sir ji, forex is very low yielding and tata group has substantial debt. It is very unlikely that the financial types in Tata House will hold low yielding forex that is essentially financed with high yielding INR debt.

They are just on the hook for purchasing those aircraft, will pay in INR and that will be converted by their bankers to USD, Euro. Also chances are that the entity that is liable for purchasing those aircraft is Air India. Air India equity value is not that much anyway.

Also INR is fully convertible on the trade account. It is also substantially convertible on the capital account in that forex purchase rules issued by the RBI are very liberal.

 

[jadoogar]

If I was the GoI I would prevent the Tatas from placing a large order until Boeing/Airbus makes a firm commitment to Make in India programme. And why the hell can't we design & manufacture our own planes. We have enough domestic demand to satisfy the minimum requirement to building planes domestically.

Koi zarurat nahin hai Guruji. We already have a substantial trade surplus in IT and ITES. Probably have or will soon have in engineering goods, garments, mobile phone assembly etc etc. Deficit due to fossil fuel ... that may whittle down with time. So the trade partners must also sell something. Civilian airliners are not an important business for strategic autonomy or for defence. It would be nice if Chinese civilian airliner succeeds to add competition to this business

Military jet engine is nice to have.

 

[no smoking]

If I was the GoI I would prevent the Tatas from placing a large order until Boeing/Airbus makes a firm commitment to Make in India programme.

Boeing/Airbus are the only two producers of big commercial jet in the world.
Not to buy from them? It is not an option.

And why the hell can't we design & manufacture our own planes. We have enough domestic demand to satisfy the minimum requirement to building planes domestically.

Most of the industries of sub-systems don't exist in India or just started, designing & manufacturing your own planes is simply a dream in current stage.

Just look at the 2 examples:
Brazil - after producing they own civilian planes based on foreign sub-system, their civilian jet industry is going nowhere after 50 years!

China - they have a much bigger domestic market for civilian plan for 20 years, they have a full industrial chain for all the sub-systems of military plane since 1990s, but they still have to wait for 20 years to start their domestic commercial plane project. Even today, almost 80% of their C919 is supplied by foreign companies.

 

[NutCracker]

Boeing/Airbus are the only two producers of big commercial jet in the world.
Not to buy from them? It is not an option.



Most of the industries of sub-systems don't exist in India or just started, designing & manufacturing your own planes is simply a dream in current stage.

Just look at the 2 examples:
Brazil - after producing they own civilian planes based on foreign sub-system, their civilian jet industry is going nowhere after 50 years!

China - they have a much bigger domestic market for civilian plan for 20 years, they have a full industrial chain for all the sub-systems of military plane since 1990s, but they still have to wait for 20 years to start their domestic commercial plane project. Even today, almost 80% of their C919 is supplied by foreign companies.

We need our work force trained in atleast assembling the jigs..

I have no doubt that if the order book is even 200 strong TATA will leave no stone unturned to bring the assembly in India. I hope the assembly line cost will be offset by the cheaper workfort.

Since they have debt issue. It can even help them save some money while gaining knowledge of aircraft manufacturing.

Maybe in next 10-15 years.
ADA will design. HAL provides engine. TATA will build.

 

[Suryavanshi]

We need our work force trained in atleast assembling the jigs..

I have no doubt that if the order book is even 200 strong TATA will leave no stone unturned to bring the assembly in India. I hope the assembly line cost will be offset by the cheaper workfort.

Since they have debt issue. It can even help them save some money while gaining knowledge of aircraft manufacturing.

Maybe in next 10-15 years.
ADA will design. HAL provides engine. TATA will build.

More than Assembly line where will they source their sub components from?
There is an entire aero ecosystem in Murica for Boeing. Would just cheap labor cost be able to offset all of that?

 

[NutCracker]

More than Assembly line where will they source their sub components from?
There is an entire aero ecosystem in Murica for Boeing. Would just cheap labor cost be able to offset all of that?

Maybe maybe not.
Also if c295 has locally sourced componenets we will know when C295 production starts. We will have to wait till then.

Even If cheap labour doesn't offset aseembly line cost in civilian AC deal , govt should subsidies it.
We need to get workforce trained and aircraft manufacturing involves a lot of man hours, to the extend that i would say a car assembly is more automated than an airliner assembly.

 

[Suryavanshi]

COSCO vs Shipping Corporation of India
Asset 125 bil VS 1.7 bil

Kek, Utterly mogged.

Fleet size 1413 Vs 70

 

[Suryavanshi]

I think Indians are in denial about how much the chinese utterly mog us in some sectors.

In china state owned business are necklace adoring the neck in here they are a noose.

 

[Haldilal]

Ya'll Nibbiars

 

[karn]

Voltas to invest Rs 1,000 crore in expanding production capacity

The company will spend over Rs1,000 crore to increase its manufacturing capacity, including at a new plant close to Chennai, while a second proposed Rs500 crore compressor plant in partnership with China's Highly International is still awaiting government approval.

www.indiainfoline.com

 

[ezsasa]

Given how little we have achieved despite having the potential.

Saddens me that we have only one large garments cluster named Tiruppur.

Rest are too insignificant.

Garments industries generate mass employment and spawn ancillary/supportive industries too.

Sadly successive governments & Tiruppur lobby has kept competition out of the picture.

View attachment 185681

Top 10 Exporting Countries of Textile and Apparel Industry

Conquering industry challenges, the textile is one of the well-established industries in the competitive market place. Countries are chasing textile and apparel exports for numerous benefits – boost local, state and federal economy, enhanced domestic competitiveness, diversification, and to gain...

www.fibre2fashion.com

Despite all the big talk, having so many NIFT's, textile industry etc, the local industry is still not competitive on a global scale.

Chinese companies like Shien and others are eating into the daily clothing market share of medium to large brands too in US followed by Europe.

When will we wake up from our '5 trillion dollar economy day dream'? People and governments(Central & State) need to really move ass if that ceiling has to be breached. The general lethargy among local governments is terrible. Add hafta vasooli by goons and govt, it remains a challenge.

Govt. is more interested in FDI.

Without labor reforms and curbing blackmail by unions, its difficult to hit that USD 5 T mark. Unions are trying hard to get a major foothold in the IT services sector too...I hope reservations are not forced upon the pvt sector next.

issue is not with manufacturing capacity.

let's say an european retailer imports a t-shirt at 10 EUR + tariff from India and china is offering the same T-shirt for 10 EUR but no import duty.

which one will that european retailer prefer to import, Indian made tshirt or chini t shirt?

if Indian textile manufacturers can supply for domestic demand, they can easily supply for the world under favourable trade agreements. India's domestic textile market is 152 billion $, exports 44 billion $.

 

[sauntheninja]

Anyone has any more info on this?

 

[Abdus Salem killed]

Anyone has any more info on this?

Hell frieght corridor with China

 

[ym888]

Anyone has any more info on this?

The ship arrives at Qinzhou, a seaport in south China's Guangxi Province



The goods are loaded on a train and transported to Lanzhou, a city in northwest China.

 

[TopWatcher]

Tata going to buy 100 Billion Dollar worth of aircraft from Boeing. Think If India has a capacity to build aircraft, these money could be used & remain in India.

But what we say, these politicians never think these. Just live in their kossy ac rooms.

 

[Suryavanshi]

Tata going to buy 100 Billion Dollar worth of aircraft from Boeing. Think If India has a capacity to build aircraft, these money could be used & remain in India.

But what we say, these politicians never think these. Just live in their kossy ac rooms.

He will probably bring the production line here. The order is too big other side wont be able to refuse.

 

[Ulinatheclever]

He will probably bring the production line here. The order is too big other side wont be able to refuse.

Probably going to use Indigo Strategy of "Sell and Wet Leasing"