Indian Economy: News and Discussion

[MuffleParch]

Damn, I read it wrong. It's 3 lakh subsidy per person/family, and not 1.5 lakh. Effectively, every Moslem family is given a once in a lifetime opportunity to own a car at the expense of the tax-paying-jeevis

Well, there shouldn't be any surprise to the people of Karnataka. There will be more "subsidies" like this to come. Just work hard and pay for it. If you can't pay for this, your kids will have to pay.

This is the problem with voting "against a party" as opposed to voting "for a party".

 

[MuffleParch]

Is it government subsidy? It says some corporation limited and points towards a some private trust.

That "corporation" seems to be owned by the govt of Karnataka.

 

[Cheepek]

Is it government subsidy? It says some corporation limited and points towards a some private trust.

Karnataka Minorities Development Corporation Limited is a state government undertaking

KARNATAKA MINORITIES DEVELOPMENT - Index

kmdc.karnataka.gov.in

 

[Tejbrahmastra]

 

[Tejbrahmastra]

 

[Johny_Baba]

India lost a lot of top scientists, engineers and business people like my pardada.

Story tiem, pls tel us more about your great-grandfather and his era experiences w.r.t. the post.

 

[Tejbrahmastra]

The amazing growth of China

 

[Cheran]

There is a new article by Ashoka Mody -

Indian growth is fake

India’s Fake Growth Story | by Ashoka Mody - Project Syndicate

Ashoka Mody accuses the government of using faulty national accounting to cover up growing macroeconomic problems.

www.project-syndicate.org

Ashoka Mody claims that the GDP number is just a “branding and beautification” exercise ahead of the G20 Summit in Delhi, and there is no growth in the Indian economy despite encouraging GDP numbers

**

Rebuttal

CEA V. Anantha Nageswaran And Co-Author Respond To Charges Of Government 'Downplaying Inconvenient Macroeconomic Facts'

A recent article by an Indian-origin academic in a European publication alleged India's growth story to be 'fake'.

swarajyamag.com

 

[Cheepek]

The amazing growth of China

Forget growth, BRI violates our sovereignty and territorial integrity. Can't imagine this sooar ka baccha can become India's PM one day.

 

[Shuturmurg]

The amazing growth of China

This chutiya said same thing in US, but he also mentioned that he wants to show India as democracy can also be center of manufacturing. Then he used his own brain and said "May be we will do things our own way, instead of big factories we will have a lot of small factories (economies of scale gaya tel lene)".

 

[karn]

Forget growth, BRI violates our sovereignty and territorial integrity. Can't imagine this sooar ka baccha can become India's PM one day.

My head canon for why this pos and his family have not been executed for treason yet is cause Modi wants to go hard on the TINA .

 

[Bharatiya]

The questions I posted about GDP, I will post clarifications if I look deeper into GDP calculation and learn how the process works.

@FalconSlayers Thanks for posting that on twitter. It's good to have tough conversations.

But I don't think GOI is lying. If the situation is as bad as you said, IMF and World Bank won't sit still. I think we'll have a clear picture by the end of this financial year when the full picture comes out.

A lot of us fall into this trap of knowing but really knowing. Maybe there are more factors involved in this calculation than just what a single quarter can tell.

Going a step further, I think exports give the most intuitive picture about how we're doing as an economy—goods exports.

The good news it that we're seeing a surge of electronics, the bad news is we're too behind in mass employment manufacturing sectors like textile.

If we compare India's exports with China's exports, two things become evident.

1. We do not have even a decent industrial base. The major exports are petroleum and jewelry.

2. We do not have scale in whatever we manufacture.

Not one. This is actually the pain point. We have scale in neither textiles or cement or steel or machines.

If we cannot achieve scale, we'll remain fighting for the left overs. So far, we have achieved no scale in any industry. I know the success story of mobiles, but that won't be even remotely sufficient.

We need to scale up, by any means—violence or bribes. I know this has already been said many times here, but it still needs to be said.

 

[another_armchair]

There is a new article by Ashoka Mody -

Indian growth is fake

India’s Fake Growth Story | by Ashoka Mody - Project Syndicate

Ashoka Mody accuses the government of using faulty national accounting to cover up growing macroeconomic problems.

www.project-syndicate.org

Ashoka Mody claims that the GDP number is just a “branding and beautification” exercise ahead of the G20 Summit in Delhi, and there is no growth in the Indian economy despite encouraging GDP numbers

View attachment 221755

**

Rebuttal

CEA V. Anantha Nageswaran And Co-Author Respond To Charges Of Government 'Downplaying Inconvenient Macroeconomic Facts'

A recent article by an Indian-origin academic in a European publication alleged India's growth story to be 'fake'.

swarajyamag.com

View attachment 221756

LMAO.. read this in the morning and didn't find it worthy of posting it even in the jokes thread. Mody back to hard selling his garbage filled book.

 

[another_armchair]

The questions I posted about GDP, I will post clarifications if I look deeper into GDP calculation and learn how the process works.

@FalconSlayers Thanks for posting that on twitter. It's good to have tough conversations.

But I don't think GOI is lying. If the situation is as bad as you said, IMF and World Bank won't sit still. I think we'll have a clear picture by the end of this financial year when the full picture comes out.

A lot of us fall into this trap of knowing but really knowing. Maybe there are more factors involved in this calculation than just what a single quarter can tell.

Going a step further, I think exports give the most intuitive picture about how we're doing as an economy—goods exports.

The good news it that we're seeing a surge of electronics, the bad news is we're too behind in mass employment manufacturing sectors like textile.

If we compare India's exports with China's exports, two things become evident.

1. We do not have even a decent industrial base. The major exports are petroleum and jewelry.

2. We do not have scale in whatever we manufacture.

Not one. This is actually the pain point. We have scale in neither textiles or cement or steel or machines.

If we cannot achieve scale, we'll remain fighting for the left overs. So far, we have achieved no scale in any industry. I know the success story of mobiles, but that won't be even remotely sufficient.

We need to scale up, by any means—violence or bribes. I know this has already been said many times here, but it still needs to be said.

Saar.. we are at number 2 in steel. We can scale up if there's constant demand led by massive spending in infrastructure and real estate for decades.

Honest question - can we afford it? The risk averse finmin and mint street will immediately flag it .. and no, we cannot afford 200% debt like China or Japan, yet because the inflation will rip through the stratosphere with the added cost of debt servicing.

Meteoric spending will lead to insane debt and our base rates are at 8.85-10.1% which will dim the risk appetite of some of the most maverick borrowers and lenders.

Reserve Bank of India

description

www.rbi.org.in

Govt. is finally focusing on manufacturing job creation and that will definitely lift overall productivity as people find ways and jugaad to increase productivity.

Tata Steel was on the verge of closure during the '90s. They went for 'industrial scale' automation, retired a good chunk of their work force and turned their business around. They are still expanding at a pace they can keep up with.

Almost 3 years lost to covid, 2 years lost to war, things finally picking up locally.. revenge tourism is at a high within the country which is keeping services PMI above 55 and manufacturing PMI is also strong.

Lets wait before we write ourselves off. If there are no major disruptions, we will clock a very decent pace of growth.

 

[sauntheninja]

Saar.. we are at number 2 in steel. We can scale up if there's constant demand led by massive spending in infrastructure and real estate for decades.

Honest question - can we afford it? The risk averse finmin and mint street will immediately flag it .. and no, we cannot afford 200% debt like China or Japan, yet because the inflation will rip through the stratosphere with the added cost of debt servicing.

Meteoric spending will lead to insane debt and our base rates are at 8.85-10.1% which will dim the risk appetite of some of the most maverick borrowers and lenders.

Reserve Bank of India

description

www.rbi.org.in

View attachment 221757
Govt. is finally focusing on manufacturing job creation and that will definitely lift overall productivity as people find ways and jugaad to increase productivity.

Tata Steel was on the verge of closure during the '90s. They went for 'industrial scale' automation, retired a good chunk of their work force and turned their business around. They are still expanding at a pace they can keep up with.

Almost 3 years lost to covid, 2 years lost to war, things finally picking up locally.. revenge tourism is at a high within the country which is keeping services PMI above 55 and manufacturing PMI is also strong.

Lets wait before we write ourselves off. If there are no major disruptions, we will clock a very decent pace of growth.

To me all this debate since yesterday that people have been having here point to one thing. Domestic consumption has serious pitfalls for ultra growth and export led growth seems the best way to become rich.

 

[omaebakabaka]

To me all this debate since yesterday that people have been having here point to one thing. Domestic consumption has serious pitfalls for ultra growth and export led growth seems the best way to become rich.

Very true, in a connected world...domestic consumption growth is only good if most of the industry is with in the country and raw material base is also broad with healthy exports of Tier1 finsihed goods....India needs exports growth of finished products outside mining, metals, diamonds, petrochem....pharma is good but ship building, autos and other hightech ones are necessary to drive them into net surplus by 20 to 40%

 

[FalconSlayers]

 

[Dr_Deep]

Sorry to hear that. Our forefathers went through terrible times. My father told me how these Indian Oil beaten up drums are loaded like ladoos heaped up during Ganesh chathurthi on a bullock cart which would then slowly move them from Indian Oil kerosene depots to a beat down godown that my pardada setup. The whole place was dangerous as it could go up in fire anytime. The kerosene was because of another atrocity apparently. People had no electricity or lost it when it rained heavily and use these lamps called hurricane lamps that used kerosene as fuel to be lit up through the night. All this just 200-300KMs away from the capital Delhi and close to Lucknow the capital of UP. This was the fate of capital cities. My dad told me how these kerosene lamps would sometimes tilt and burn down homes made of thatched roofs, which was a lot those days. All in all, forefathers went through unbelievable poverty, lack of infrastructure while the babus were touting license Raj and Soviet style economy.

My father along with me and my mum moved back to India after he got a Senior Scientist Position at Research Lab in Lucknow..from the land of USofA...We were promised that the city would be a nice ,quite place ...with separate Gov Quarters for Scientists and no inteference from the Political side in our daily affair..But after moving back in early 90s..yeah it was nothing like it.. Living in Calcutta ( a big city at that time) vs living in Lucknow was like a night and day.. The road in our colony were un paved, the greeny and park were never properly maintained..with snakes and other creatures coming out during monsoon, no telephone in the house, no city bus or public transport instead had to avail those Tempos for commute, daily load shedding..but water was available 24/7.
Imagine adjusting in such an enviroment after spending a decade or more living in big American Cities like Boston and Chicago. Kids these days have no idea..how good they have it in Vishwaguruland..

 

[Dr_Deep]

The conversation goes like this -

Inspector - Arey tera ek file theek nahi hai. Main adverse report likh ke factory seal kar dega.

Company negotiator - Sir.. kal lunch mein milte hain.. main saare files lekar aata hun.

Inspector - Theek hai.

Next day at lunch -

Inspector - Paisa laaya?

Negotiator - Sir mere pass sirf 5k hai. Files aapke samne hai. Lena hai lijiye warna jo karna hai kar lijie.

Inspector - Flips through files.. finds 5k in it, pockets it, signs the files curses left right center.. calls them bhikhari for giving 5k in an expensive city like Bangalore and leaves in a huff.

For this there should be an anonymous helpline to report corrupt babus with full immunity to the victims..just like they do in US.. fill out the form..attach any evidence including videos or audio recording etc and put it .. On guilty immediate termination no suspension lauda lehsun..etc. If gov is serious about attracting global corporates to setup shops then it needs act itself as one..

 

[another_armchair]

For this there should be an anonymous helpline to report corrupt babus with full immunity to the victims..just like they do in US.. fill out the form..attach any evidence including videos or audio recording etc and put it .. On guilty immediate termination no suspension lauda lehsun..etc. If gov is serious about attracting global corporates to setup shops then it needs act itself as one..

There is Lokayukta police who lay a trap to catch erring govt. officials but there's little that happens after that.

Most get reinstated after a prolonged investigation that leads to nowhere.. they are barred from promotions.. few are dismissed from service and retirement benefits scrapped.