Indian Economy: News and Discussion

[Bharatiya]

Let's just get this straight:

India's total exports hit a peak of $470 Billion in 2013. It struggled from there on. It's excruciatingly slow growth and finally reached $538 Billion in 2018. A 2.6% YOY.

Then covid hit and exports fell for two straight years. From $538 Billion to $529 to $499. Then in 2021-2022, exports bounced back, hitting a new peak of $679 Billion. Now, despite covid, this growth is 8% YOY. But really, it's a big spike in a single year. Atmanirbharta & PLI were implemented during the covid reset.

Now, we've gone from $679 to $750 in a single year. A 10% growth. We're inching closer to be a major trading nation by hitting the milestone of $1 Trillion.

But we should be careful since we already experienced an era of slow growth once. Without merchandise exports, we cannot be prosperous. Compared to the export market of merchandise, service is many times smaller. While services is easier to build up, it's also easy to lose it compared to Merchandise. Once we have the factories and get into the supply chain, we'll be entrenched and even if other countries don't like us, they'll have to bear us—it's the greatest protection against economic sanctions—that's why the US or europe don't speak about sanctioning China.

It'll be the biggest challenge in the coming years—can we become a manufacturing nation—that'll decide the fate of our economy and global ambitions.

 

[NutCracker]

Sir i don't understand this online payment system very well, my attempts to join paytm turned out to be nothing except futile exertion on my part as some technological difficulties on paytm's behest eluded me from opening a paytm account.
I was thus shunned And shamelessly denied the privilege to open a paytm online payment account, effectively forcing me to go on my purchases in old manners by using paper money.
Having given you the above description about the reasons for my inability to join the digital payment age, I hereby ask you a question.
Tell me sir , since people here are talking about a fee being levied on using UPI which I belive is another method of transaction of money via electronic means, then is it correct on my part to assume that the cess will multiply in relation to the value of transaction?
Means if a person pays 20 rupees after engaging in a transaction of 100 with another entity . So if a person engages in a transaction of 200 rupees, is he needed to pay 40 rupees on the transaction tax?

Paytm has been barred from conducting any more KYC. 2-3 saal ho gaye i guess.

 

[NutCracker]

 

[Physx32]

Looks like a move to boost toplines of banks as its being reported that other peer to peer UPI transactions will also come under charges at a later date. Rising rates will shrink their margins and hit profitability.

HDFC Bank had been demanding charges on UPI for a few years.

A plus for card companies too.

STT on option selling was recently raised from 0.05% to 0.062%.

HNI option writers have a hit rate of more than 90% and they adjust their annual profits towards end of the year by buying out of the money options through a nexus of brokers and launder it.

It would be fuckin criminal to charge P2P UPI transactions while keeping STT criminally low to benefit HNIs and fund managers.

Public ko looto bas..

If this is indeed true, we'll back to 2015 era of using Paytm wallet.

However, it's perfectly ok to charge big merchants (e.g. retail stores, ecommerce sites). P2P and medium/small merchant transactions should be kept free.

 

[Bharatiya]

How distant is India turning a net surplus trading country? Our trade deficit just ballooned to monstrous proportions thanks to merchandise imports—from a gigantic $100 Billion to a staggering $200 Billion. Thankfully, surplus from Services has kept this beast controlled. But it's not enough.

I'm afraid that a lot of these imports are done by 'Traders' who simply bulk buy and bulk sell than try to even import anything for manufacturing.

The rupee had been comfortably trading in the 60s from 2014 until 2018. Then shit hit the fan.

2017	65	-
2018	68.4	-5.2 %
2019	70.4	-2.9 %
2020	74.13	-5.3 %
2021	73.93	+0.27%
2022	78.6	-6.3%

Since 2017 alone, our currency had lost 20% of its value! Had the rupee remained at 2017 rate, we'd be a $4.2 Trillion Economy by now. Of course, it's not that straightforward, but there's no doubt we'd have been in a much better position today. We could've saved a year or two financial years!

Becoming net exporter would be an important moment for our economy. If the PLI succeeds, then we might see it before 2027.

 

[Dr_Deep]

I don’t think what worked for Chinese in becoming manufacturing powerhouse that is FDI and technical assistance from west and their allies will work for India either. Instead goverment should works like korea and Japan where guys took some old technology from west and worked on them for multiple generational products simultaneously for high spectrum of products or some other different holistic approach.
First of all no Indian goverment is interested in low cost ,labour intensive products or buisness like textiles,shoes etc . Go to Walmart and Amazon and all such day to day consumable products are from china.
I was searching for car Tyer inflator and none was from india.
It’s high time some administration reforms be done. So that their babus career depends on how much business and technology they bring in. them become moderately expensive easy when they don’t delivere

From what I understand, Indian MSME used to manufacture such products for domestic market consumption and maybe markets in Africa etc ( I have Parle G biscuits heavily consumed in Kenya etc) but then UPA times opened the doors for Chinese products..Slowly slowly Chinese started dumping their goods on our market causing numerous MSMEs to close down.
With the global supply chains being disrupted and realignments of Globalization, there is going to be a resurgence of domestic manufacturing in the coming years. The gov is already giving various incentive to help MSMEs scale up in order to meet the demand and have export ready goods. FTAs with UAE, Australia etc will also help Indian manufacturers in the coming years..

 

[karn]

My friend bought a flat last November through NoBroker in Bangalore.

Let me check with him if he 'linked' it with Aadhaar at the local office.

If your friend bought the flat in Mumbai , nobroker will send people to your place with fingerprint scanner to link your aadhar.. Nobroker does this since it's the law there ..
Not sure about any other city.

 

[Eagle Eye]

What is the likelihood of Vodafone getting merged with BSNL?

Is not too late? Govt already approved BSNL 4G rs.30,000cr with TCS- more than 1lakh towers & 9yrs maintenance!

 

[Sanatani]

Ayushman 2.0 in works for 400 million mid-income citizens

Ayushman 2.0 in works for 400 million mid-income citizens

A senior government official, on the condition of anonymity, told ET that various options are being examined keeping in view the financial implications and the challenges in implementing the plan that would have wide application - on the lines of Ayushman Bharat.

economictimes.indiatimes.com

For God's sake , give the tax payers some priority

 

[Sanatani]

Kindly ameliorate my doubt by providing me the answer to the question I asked good sir.
As for my command on the kings language, it's not good at all sir, @Haldilal the forum feline has way better grasp on it than myself, it's an indignity that iam bested by a feline in this regard!
Shashi tharoor is a distinguished gentleman , whose level of command on english is something a man should aspire to achieve I believe, atleast I must try and strive to succeed in this endeavor.

Forget his command on English. Wish for his charms over the fairer sex

 

[another_armchair]

If this is indeed true, we'll back to 2015 era of using Paytm wallet.

However, it's perfectly ok to charge big merchants (e.g. retail stores, ecommerce sites). P2P and medium/small merchant transactions should be kept free.

GoI Intent is to tax wallet transactions. Using PayTM will cost you more when compared to UPI.

NPCI recommends PPI charges for merchant transactions in UPI

From April 1, using Prepaid Payment Instruments (PPIs) on UPI from will attract interchange at 1.1 percent on transaction value for amounts over Rs 2,000.

www.cnbctv18.com

 

[Blademaster]

Kindly ameliorate my doubt by providing me the answer to the question I asked good sir.
As for my command on the kings language, it's not good at all sir, @Haldilal the forum feline has way better grasp on it than myself, it's an indignity that iam bested by a feline in this regard!
Shashi tharoor is a distinguished gentleman , whose level of command on english is something a man should aspire to achieve I believe, atleast I must try and strive to succeed in this endeavor.

Your grasp of English is certainly improving. I can tell. Are you using google translate to translate hindi into english or typing english yourself?

 

[Blademaster]

Paytm has been barred from conducting any more KYC. 2-3 saal ho gaye i guess.

What is KYC?

 

[STORE]

What is KYC?

I guess its , Know your customer (KYC). When ever someone wants to open a bank account, the bank does KYC in which they collect data of the person including Adhar and other documents. This is done to minimize fraud by impersonating and giving false details.

 

[Haldilal]

Ya'll Nibbiars The as I said India has untamed hunger for the commercial spaces only needs a right developers.

 

[ezsasa]

GoI Intent is to tax wallet transactions. Using PayTM will cost you more when compared to UPI.

NPCI recommends PPI charges for merchant transactions in UPI

From April 1, using Prepaid Payment Instruments (PPIs) on UPI from will attract interchange at 1.1 percent on transaction value for amounts over Rs 2,000.

www.cnbctv18.com

View attachment 198290

View attachment 198291

still haven't bothered to check what exactly this entails since yesterday, it seems.

allow me to simplify :
- when paytm wallets are loaded from a bank account, paytm gives a small fee to the bank
- when paytm wallets are used to buy the listed items above, paytm gets a small fee from the bank, in paytm's case it could be paying itself because they also have a payment bank.

between wallet and bank, who ever is receiving the money is giving a processing fee to the other. for now user is not being charged.

 

[ezsasa]

still haven't bothered to check what exactly this entails since yesterday, it seems.

allow me to simplify :
- when paytm wallets are loaded from a bank account, paytm gives a small fee to the bank
- when paytm wallets are used to buy the listed items above, paytm gets a small fee from the bank, in paytm's case it could be paying itself because they also have a payment bank.

between wallet and bank, who ever is receiving the money is giving a processing fee to the other. for now user is not being charged.

larger point to be noted is that, concept of UPI is a grand experiment which has never happened in modern economic history in any economy big or small, such things were always handled by private companies. UPI is unique because foundational digital infrastructure is free and funded by the state, when the same infra was being provided by private companies like in the case of debit or credit cards, there was already a system of processing fee in place since there has to be some revenue model beyond advertisement model.

just because it is free to the user, doesn't mean there are no operational costs to the backend players. so there has to be some revenue model within the no cost frame work. hence the consultation and experimentation by govt, regulators and market players to find a optimal solution to keep all stake holders happy to an extent.

brazil had also launched a upi type system last year, they too will be learning lessons from their system.

 

[Concard]

Aadhar - EB Bill is being integrated in TN now. Currently owners having multiple property with meters enjoy free electricity. (Eg. If you have 5 services then you will get 100 units free for each service). With Linking Aadhar this is going to cut down and lot of people are already preparing themselves to accept the fate. Now under a single person he can only get 100 unit free for any one service.

EB Minister skirted this issue by claiming that they will still receive free 100 units, but he avoided to mention that it will be one user - One service can avail this 100 units.


Property is the next big area which will be taken slowly. I think in Karnataka already Aadhar is being used to link property.

I am saying the same thing since few months here. We need to tax property especially the ones which have rental incomes. All the commercial and residential if taxed will bring in 10 Lakh crores to GOI which will massively give a boost to Government spending power.

 

[sauntheninja]

All these headlines are just going to confuse people

 

[FalconSlayers]