Indian Economy: News and Discussion

[KaiGoku]

 

[vishnugupt]

Airbus Takes Off in China – DW – 10/26/2006

Troubled airplane manufacturer Airbus got some good news finally. On Thursday, the company won a Chinese order of 150 A320 aircraft and agreed to set up a plant in China, the world's most lucrative aviation market.

www.dw.com

So what we should do now? Government should recall foreign missions from US and Europe in protest ??

TATA is private company, government has no role in negotiations. It up to TATA what is best for them.

 

[SKC]

So what we should do now? Government should recall foreign missions from US and Europe in protest ??

TATA is private company, government has no role in negotiations. It up to TATA what is best for them.

No point arguing with them.Inko yearly >$1B ka business bhi samajh nahi aa raha hai
Saying that we should move up the ladder. Like Without moving up $1B to majak mai ho jata hai business!

Raat ko nashe karte baithe hain dono!

 

[another_armchair]

No point arguing with them.Inko yearly >$1B ka business bhi samajh nahi aa raha hai
Saying that we should move up the ladder. Like Without moving up $1B to majak mai ho jata hai business!

Raat ko nashe karte baithe hain dono!

People have to be gently reminded of where we started our IT services exports.

At zero. Not at 100 billion p.a.

Vietnam is a factory proxy of China to circumvent Trump era sanctions & trade/tariff barriers. Its export growth is not organic like Taiwan, South Korea or Thailand.

Every single dollar in exports reduces our dependence on foreign remittances. That's a definite plus.

Yes, things should've moved at a more rapid pace but that's how we roll and its not like the West voluntarily rolled out the red carpet for India. We have repeatedly faced barriers, more so in Europe.

 

[Cheepek]

Man the most disappointing thing about our economic growth is lagging merchandise exports. Vietnam, a country with fraction of population and fraction of area, had much faster export growth than us. It nearly now exports as much as we do.

I call it 4 mistakes of India:

1. Not controlling population explosion in 1970-1990s.
2. Not focusing on skilling our labour force in 1990s just after liberalisation.
3. Not focusing on labour intensive low skilled manufacturing in 1990s and 2000s, which we are trying to attract right now. If we had focused on it then, we would have been climbing value chain ladder. Services growth is good, but without labour intensive manufacturing, it is impossible to bring out surplus labour from agriculture. Medium and high end services require at least graduation, whereas low skilled manufacturing mostly requires on-site training.
4. Not focusing on infrastructure and logistics in 2000s when our economy was booming. Without removing such bottlenecks, it was impossible to maintain the boom we had in late 2000s, though our growth sputtered for different reasons. That growth was in any case going to plateau in sometime. The infamous policy paralysis in early 2010s along with lack of focus on infrastructure took out all steam from our growth.

Though we still have chance, it is sad to see Vietnam and Indonesia taking away lot of manufacturing out of China. The most important problem right now I think is incompetencies of most of state govt, which are unable to create conducive policies to attract investment and resolve local infrastructure issues. We have so much to offer: large market size, large and cheap labour force, skilled engineering workforce, etc but we are still unable to fully capitalise on it.

Japanese and Chinese companies have been in Vietnam from atleast a decade, and we've just got started. Building trust, moving businesses, realigning supply chains, finding and upskilling local suppliers etc takes time.

 

[KaiGoku]

Man the most disappointing thing about our economic growth is lagging merchandise exports. Vietnam, a country with fraction of population and fraction of area, had much faster export growth than us. It nearly now exports as much as we do.

I call it 4 mistakes of India:

1. Not controlling population explosion in 1970-1990s.
2. Not focusing on skilling our labour force in 1990s just after liberalisation.
3. Not focusing on labour intensive low skilled manufacturing in 1990s and 2000s, which we are trying to attract right now. If we had focused on it then, we would have been climbing value chain ladder. Services growth is good, but without labour intensive manufacturing, it is impossible to bring out surplus labour from agriculture. Medium and high end services require at least graduation, whereas low skilled manufacturing mostly requires on-site training.
4. Not focusing on infrastructure and logistics in 2000s when our economy was booming. Without removing such bottlenecks, it was impossible to maintain the boom we had in late 2000s, though our growth sputtered for different reasons. That growth was in any case going to plateau in sometime. The infamous policy paralysis in early 2010s along with lack of focus on infrastructure took out all steam from our growth.

Though we still have chance, it is sad to see Vietnam and Indonesia taking away lot of manufacturing out of China. The most important problem right now I think is incompetencies of most of state govt, which are unable to create conducive policies to attract investment and resolve local infrastructure issues. We have so much to offer: large market size, large and cheap labour force, skilled engineering workforce, etc but we are still unable to fully capitalise on it.

Vietnam's exports are propelled by only 2 sectors. Electronics & Textile. India's exports are much more diversified than that of Vietnam's.

If we look at the Chinese, 3 sections Electronics , Computer Hardware & Textile would constitute almost 70% of the total Chinese exports.

(Data is from 2021)

So we don't need a labour work force that is specialised in a lot of different sectors. Just focusing on these 3 sector would have done the trick.

What can we expect from UPA when their Home minister argues that average Indians won't be able to use smart phones, so their priorities were set accordingly.

But on a positive note. India's electronics sector has seen the highest growth rate in exports among all other sectors at 49.5 %.

Quantitatively Indias exports had grown faster than our imports. As Exports grew by almost 7 Billion $ where as our imports grew by 5 Billion $ over the period of 10 months.

It's all about priorities. Indians in general have always preferred Computer Engineering over other Engineering sectors. So it makes sense that it's our Software industry that's propelling our exports.

The Government is focusing on these critical sectors now. And as CEA Nageswaran has said, a lot of the policies are on place. Now we need to be partent.

 

[sameer3694]

Mate I am impatient, I would like to see at least narrow body Civilian jet Aircraft assembly lien in India in next 10 years. For that we need to climb value chain in supply of components.

I dont think either Boeing or Airbus will ever do final assembly of civilian aircraft in India. These activities are huge job generators and their home governments and workers unions will put a lot of pressure on them to keep these jobs back home. At most they will source some parts from India that's all.

I remember there were some talks going on with Embraer manufacturing small /medium jets in India. Let's see how that goes.I personally feel that might be our only real hope. Some kind of a joint venture with an Indian company would be good.

India Eyeing Partnership With Embraer, Sukhoi To Make Small Jets Locally: Report

The government will keep 51 per cent equity with an Indian firm, while asking the foreign partner to do technology transfer

news.abplive.com

 

[jai jaganath]

So what we should do now? Government should recall foreign missions from US and Europe in protest ??

TATA is private company, government has no role in negotiations. It up to TATA what is best for them.

Govt has roles in such huge dealing when such huge amount goes out without any generation
Then what was mudiji in meeting doing when deal was being signed
It's incompetence sir they weren't able to role out huge incentives for them to avoid so they let it go
Now minister comes into media and says they should assemble them here but giving them no incentives
It's just talk sir

 

[vishnugupt]

Govt has roles in such huge dealing when such huge amount goes out without any generation
Then what was mudiji in meeting doing when deal was being signed
It's incompetence sir they weren't able to role out huge incentives for them to avoid so they let it go
Now minister comes into media and says they should assemble them here but giving them no incentives
It's just talk sir

Modi was invited as macron and Budan was invited. That's it.

We are no longer live in Licence Raj. Government could facilitate the deal but can't negotiate or put pressure.

You want aircraft assembly but may be TATA don't want it? May be TATA have different priorities.

 

[ezsasa]

Man the most disappointing thing about our economic growth is lagging merchandise exports. Vietnam, a country with fraction of population and fraction of area, had much faster export growth than us. It nearly now exports as much as we do.

I call it 4 mistakes of India:

1. Not controlling population explosion in 1970-1990s.
2. Not focusing on skilling our labour force in 1990s just after liberalisation.
3. Not focusing on labour intensive low skilled manufacturing in 1990s and 2000s, which we are trying to attract right now. If we had focused on it then, we would have been climbing value chain ladder. Services growth is good, but without labour intensive manufacturing, it is impossible to bring out surplus labour from agriculture. Medium and high end services require at least graduation, whereas low skilled manufacturing mostly requires on-site training.
4. Not focusing on infrastructure and logistics in 2000s when our economy was booming. Without removing such bottlenecks, it was impossible to maintain the boom we had in late 2000s, though our growth sputtered for different reasons. That growth was in any case going to plateau in sometime. The infamous policy paralysis in early 2010s along with lack of focus on infrastructure took out all steam from our growth.

Though we still have chance, it is sad to see Vietnam and Indonesia taking away lot of manufacturing out of China. The most important problem right now I think is incompetencies of most of state govt, which are unable to create conducive policies to attract investment and resolve local infrastructure issues. We have so much to offer: large market size, large and cheap labour force, skilled engineering workforce, etc but we are still unable to fully capitalise on it.

In hindsight these aspects probably looks like mistakes, but while it was happening it was par for the course, there was an element of cause and effect taking place.

on the population explosion, there is a correlation with education. as sections of society get educated population will get controlled, and in sections of society who are not getting properly educated they will keep producing half a cricket team per couple.

as for the rest, there was no money for investment and India was under sanctions as well. by the time sanctions got sorted a bit, 2008 financial collapse happened. by the time impacts of 2008 meltdown was sorted, as you mentioned policy paralysis had happened.

instead of worrying about day before yesterday, might as well focus on today and tomorrow.

 

[Physx32]

When did Chinese pressurised Boeing and Airbus ??

Lol. The only reason Airbus Tianjin exists is because of CCP pressure.

 

[jai jaganath]

Modi was invited as macron and Budan was invited. That's it.

We are no longer live in Licence Raj. Government could facilitate the deal but can't negotiate or put pressure.

You want aircraft assembly but may be TATA don't want it? May be TATA have different priorities.

Sir there are ways
If they really want they can give good offers and incentives
I rest my case here

 

[AnantS]

So what we should do now? Government should recall foreign missions from US and Europe in protest ??

TATA is private company, government has no role in negotiations. It up to TATA what is best for them.

No should start preparing for next protest script.. arrey Indian companies ko order nahin mila dalal tata indigo goi waale.

All big shot orders go through Govt approval IIUC. Gvt could nudge airlines to sync their orders to extract maximum pound of flesh. Just like what China did. Case in Point Tata and Indigo orderscoikd have been placed together. For that jumbo deals, we could have got something what China has... either assembly line or assembly of more complex components.

 

[AnantS]

I dont think either Boeing or Airbus will ever do final assembly of civilian aircraft in India. These activities are huge job generators and their home governments and workers unions will put a lot of pressure on them to keep these jobs back home. At most they will source some parts from India that's all.

I remember there were some talks going on with Embraer manufacturing small /medium jets in India. Let's see how that goes.I personally feel that might be our only real hope. Some kind of a joint venture with an Indian company would be good.

India Eyeing Partnership With Embraer, Sukhoi To Make Small Jets Locally: Report

The government will keep 51 per cent equity with an Indian firm, while asking the foreign partner to do technology transfer

news.abplive.com

Mate all such are talks. All I am asking is we should at least derive same benefits that China drove through such deals. We should have maximum value for big sum of money we are expending.

 

[AnantS]

People have to be gently reminded of where we started our IT services exports.

At zero. Not at 100 billion p.a.

Vietnam is a factory proxy of China to circumvent Trump era sanctions & trade/tariff barriers. Its export growth is not organic like Taiwan, South Korea or Thailand.

Every single dollar in exports reduces our dependence on foreign remittances. That's a definite plus.

Yes, things should've moved at a more rapid pace but that's how we roll and its not like the West voluntarily rolled out the red carpet for India. We have repeatedly faced barriers, more so in Europe.

Yaar IT ka haal dekh ke hi bola. IT outsourcing business grew no doubt but how much did they climbed value chain? That is to say how many software product companies do you see ? Barring payment gateways, Zoho and ecommerce sites. We yet to have even our own designed telecom standards. Its only when China came up with 5G patents. Govt was forced to ramp up research in 6G. Again which Govt push.

And that is the point I am coming too. Its not uncommon for Govt to guide and give targets to pvt comapniez to achieve which help in nation building. In our own country JLN encouraged likes of Tata for producing motors and even cosmetics to avoid dependency.

Yes dealing with west in Not easy. But ome thing learning from China, throw them big enough carrot, they too bend somewhat. Time is of essence. I know its not like tomorrow we shall have Indian commercial planes. But playing cards right we could have one in next 15-20 years.

 

[Abbey]

Anupam Rasayan to set up three new plants in Gujarat with Rs 670 crore investment

Anupam Rasayan has six manufacturing sites that are located in the state of Gujarat including 4 in Sachin, Surat and 2 state of art sites are in Jhagadia.

www.cnbctv18.com

The plants will manufacture three important chemicals - Agrochemical, Polymers and Pharma Intermediates.

In an exclusive interview with CNBC-TV18, Anupam Rasayan’s Deputy Chief Financial Officer, Vishal Thakkar said, “We are looking at an investment in Gujarat of Rs 670 crore capex. These are going to be brownfield expansions for us.”

With this capex, the company expects improvement in margins over current levels . The asset turnover will be 1.75 times from the new capex, says the Deputy CFO. “We have grown over 25 percent historically and expect to continue growth at this rate. By FY25, revenues with additional capacity should be around Rs 3,000 crore,” Thakkar added.

Speaking on the new project, the company said that there has been a strong demand across portfolio from the fluorination segment. Anupam Rasayan has also promised to service LoIs and contracts signed last year through this expansion.

In an earlier interview with CNBC-TV18, the Deputy CFO had mentioned that LoI/contracts will give Rs 470 crore of revenue at its peak with Rs 250 crore of capex. In the same interview he had also informed that fluorination chemistry can get $220-250 million of revenue in the next 5 years.

Anupam Rasayan is engaged in the custom synthesis and manufacturing of specialty chemicals in India. Incorporated in 1984, the speciality chemicals major has two verticals: Life science related Specialty Chemicals comprising products related to Agrochemicals, Personal Care and Pharmaceuticals, Other Specialty Chemicals comprising Specialty Pigment and Dyes, and Polymer Additives. The Company caters to a diverse base of Indian and global customers. It operates via six manufacturing facilities in Gujarat including 4 in Sachin, Surat and 2 state of art sites are in Jhagadia. The aggregate installed capacity is at 27,200 MT, as of 30th June 2022.

 

[FalconSlayers]

Good news


If it comes true, I predict India's GDP to be almost $4 trillion ($3.9 in worst case) in next fiscal year which starts from tomorrow.

If we become trade surplus in next few years then India's GDP growth will explode.

 

[srevster]

Good news


If it comes true, I predict India's GDP to be almost $4 trillion ($3.9 in worst case) in next fiscal year which starts from tomorrow.

If we become trade surplus in next few years then India's GDP growth will explode.

What’s the difference between account deficit and trade deficit?

 

[FalconSlayers]

What’s the difference between account deficit and trade deficit?

Trade deficit is the difference between overall imports and overall exports.
Current account deficit is net outflow of forex minus net inflow of forex.

 

[Shuturmurg]

What’s the difference between account deficit and trade deficit?

Current account deficit = (total exports + total incoming investments + remittance) - (total imports + total outgoing investments + outgoing remittance)