Indian Economy: News and Discussion

[arkos]

Trade war is always an emotional reponse, unless we are able to beat down the opponent by not buying from them. In Indo-china case, this is not the case.

It is important to close Indian market to Chinese tech giants. That's where it will hurt them the most. Banning Huawei from India will sting far more than banning low level stuff. Chinese take great pride in Huawei. They see it as their equivalent and conpetitior to American Tech companies. It's already lost its market in North America, EU and other developed world. If India bans it too, that will hit them harder than increasing tariffs and stuff.

 

[here2where]

It is important to close Indian market to Chinese tech giants. That's where it will hurt them the most. Banning Huawei from India will sting far more than banning low level stuff. Chinese take great pride in Huawei. They see it as their equivalent and conpetitior to American Tech companies. It's already lost its market in North America, EU and other developed world. If India bans it too, that will hit them harder than increasing tariffs and stuff.

trade dispute or military dispute, huawei must be banned anyway due to security reasons. Like in US where they are not allowed to sell their networking gear and it has nothing to do with trade.

 

[Sanatani]

People thinking china will be 'hurt' by boycotting their end-products should read this minutely.

China will shrug off any boycott with near to no impact due to very less imports from india and insignificant exports too.

Secondly most chinese products are intermediate in nature (and not end-products), so indian manufacturers who use them to produce finished goods end up getting hurt.

Finally, indian consumers will have to settle for costlier non-chinese products or inferior indian products. Consumer is the net net loser.

Why banning trade with China will hurt India more

Explained: Why China trade ban will hurt India more

The outrage over the killing of Indian soldiers has led to calls for banning trade with China. However, India would stand to lose more than China if trade were to be banned. Here are six reasons why

indianexpress.com

Trade war is always an emotional reponse, unless we are able to beat down the opponent by not buying from them. In Indo-china case, this is not the case.

I agree with you when you say that Indian consumer has to go for expensive products.
Take the example of N95 masks . Ideally it shouldn't be more than 40 RS, but it is being sold around 250 RS.
Similarly recently I wanted a web cam . As there was shortage of it in the market ,I had to buy one for 1600 whose MRP was around 980.
Somehow Indian traders don't get satisfied with lower margins and they try to extract maximum from the consumer by whatever means.

 

[here2where]

Take the example of N95 masks . Ideally it shouldn't be more than 40 RS, but it is being sold around 250 RS.
Similarly recently I wanted a web cam . As there was shortage of it in the market ,I had to buy one for 1600 whose MRP was around 980.

This will be the reality if chinese boycott is implemented - expensive everyday products, lesser savings, lesser domestic investments. Most people don't realise its all inter-linked and there is a cyclic self-defeating effect.

 

[Prashant12]

Forex reserves up by USD 5.94 bn to hit record USD 507.64 bn

Forex reserves up by USD 5.94 bn to hit record USD 507.64 bn

(This story has not been edited by THE WEEK and is auto-generated from a PTI

www.theweek.in

 

[Sanatani]

Tech Mahindra plans to foray into telecom equipment manufacturing-https://www.financialexpress.com/industry/tech-mahindra-plans-to-foray-into-telecom-equipment-manufacturing/1997389/

 

[Suryavanshi]

i would urge you to go thru the link first. your point is tackled in that article. let me know if what it says is wrong.

Better start cleaning toilet of Rich Arabs then.
Niggas here want to be Olympic swimming champion but run away at the sight of water sighting the fear of drowning.
Either we will swim or drown miserably, so let's jump into the water first

 

[Suryavanshi]

i would urge you to go thru the link first. your point is tackled in that article. let me know if what it says is wrong.

I will write a article to prove why @here2where is a ******.

Are u ****** @here2where ?


Lmao it's Medias job to lay out all our options and obstacles, your thing is that u run away sighting obstacles.

There is no going back now either we will succeed or get royally wrecked.

I don't get it why u mallu niggas are so used to mental inertia.

 

[here2where]

 

[IndianHawk]

I would urge people to read my old post regarding boycotting china.

India in facts and data - Myth busting thread

This thread will be used to impart accurate data and facts about India. Economy , defense spending , infrastructure progress . Investment , manufacturing energy sector. Etc. The goal is to remove common misconceptions about our current status in various sectors and in the world in general. So...

defenceforumindia.com

 

[Hijibiji]

SuSwamy ji's views on impact of Corona virus on Indian Economy delivered to Kerala Management Association:

Dr Subramanian Swamy - How will Corona Virus & Now China affect our Economy

 

[Abhijeet Dey]

Maharashtra freezes 3 Chinese projects worth Rs 5,000 crore

Maharashtra News: Maharashtra freezes 3 Chinese projects worth Rs 5,000 crore | Mumbai News - Times of India

The Maha Vikas Aghadi government has put the three agreements worth over Rs 5,000 crore signed with Chinese companies at the recent Magnetic Maharasht

timesofindia.indiatimes.com

 

[Avenger01]

India needs to expand its debt for defence spending. Easily do-able.

Economy is, of course, #1 focus.

By 2025, India should be a $5tr economy. 1%-1.5% of GDP public debt is $50-75bn, take into account 50% offset on foreign purchases and money being funelled back into economy in indigenous/domestic industry (a sort of stimulus package, if you will), then India could/should easily afford an EXTRA (on top of usual spending/growth increases) defence package of $150bn over the next 7 years. Easily.

Any money spent on foreign purchases should have 50% offsets hence money going back into Indian defence industry.

Any money spent on indigenous products will be money coming back to the Government anyway (either via taxes or domestic consumption).

All it would require is 1-1.5% of GDP public debt. That's it.

The potential could be tremendous. Another 72 Rafales for a package of around $15bn (including training, weapons package, facilities) or increasing spending of Tejas Mk1As hence instead of 83 look for 120+. Another 5 S-400 Regiments for $5bn. Pumping money into the navy to build greater number of destroyers, frigates, minesweepers, ALL indigenous. P-75I, 6-8 more submarines, for a good $6-8bn.

They need to do this now as far as I'm concerned. If the economy is hitting 7-8%+ over the next 5-10 years, they need to have confidence to take some debt (small amount) to invest in the nation's security even further.

Delicious! Sorry this is economics and not LAC but I had to comment.

How did you derive that India will be $5 trillion economy by 2025? Did you consider we are a ~ $2.5 trillion economy at the moment? What would be the growth rate required to double in 5 years? Basic mathematics tells us that a GDP growth rate of more than 14 will be required to double in 5 years. At the moment our GDP growth rate is sub 4 percent and the pandemic may even sink it to negative for 2020-21 period. It is ludicrous to think we will be $5 trillion economy by 2025.

 

[HawkisRight]

Delicious! Sorry this is economic and not LAC but I had to comment.

How did you derive that India will be $5 trillion economy by 2025? Did you consider we are a ~ $2.5 trillion economy at the moment? What would be the growth rate required to double in 5 years? Basic mathematics tells us that a GDP growth rate of more than 14 will be required to double in 5 years. At the moment our GDP growth rate is sub 4 percent and the pandemic may even sink it to negative for 2020-21 period. It is ludicrous to think we will be $5 trillion economy by 2025.

Ur numbers r wrong
Now India is 3.2tn
that 280bn package is given to cover the loss in growth rate
5tn in 2026 can be achieved
10tn till 2032 must be our target

 

[DutchZZ]

Delicious! Sorry this is economics and not LAC but I had to comment.

How did you derive that India will be $5 trillion economy by 2025? Did you consider we are a ~ $2.5 trillion economy at the moment? What would be the growth rate required to double in 5 years? Basic mathematics tells us that a GDP growth rate of more than 14 will be required to double in 5 years. At the moment our GDP growth rate is sub 4 percent and the pandemic may even sink it to negative for 2020-21 period. It is ludicrous to think we will be $5 trillion economy by 2025.

India is a $3tr economy.

2021 growth is expected to be 9-10% real GDP + 3-4% inflation = 13-14% nominal GDP growth

2022-2025 will be around 7-7.5% real + 4% inflation = 11% nominal GDP growth.

Those figures put India at around $5-5.5 trillion. I can't talk of 2020, especially because fiscal stimulus package yet to occur still.

This is basic economics and basic maths. I have no idea why you're applying REAL GDP growth figures to a NOMINAL GDP figure.

 

[IndianHawk]

Delicious! Sorry this is economics and not LAC but I had to comment.

How did you derive that India will be $5 trillion economy by 2025? Did you consider we are a ~ $2.5 trillion economy at the moment? What would be the growth rate required to double in 5 years? Basic mathematics tells us that a GDP growth rate of more than 14 will be required to double in 5 years. At the moment our GDP growth rate is sub 4 percent and the pandemic may even sink it to negative for 2020-21 period. It is ludicrous to think we will be $5 trillion economy by 2025.

That 14 % required growth rate is nominal gdp growth rate not real gdp growth rate . Learn the difference before throwing around data that you don't comprehend yourself.

We have been growing at 6-7% real gdp growth rate since 1990s consistently. Which translates to 12-14% nominal gdp growth very easily.

Now corona has destroyed most of this year. But that's true for every nation.

We will still comfortably achieve 5 trillions mark by 2025. Not that is matters much our true economic size is reflected in gdp ppp where we are already 11 trillions dollar economy.

 

[IndianHawk]

India is a $3tr economy.

2021 growth is expected to be 9-10% real GDP + 3-4% inflation = 13-14% nominal GDP growth

2022-2025 will be around 7-7.5% real + 4% inflation = 11% nominal GDP growth.

Those figures put India at around $5-5.5 trillion. I can't talk of 2020, especially because fiscal stimulus package yet to occur still.

This is basic economics and basic maths. I have no idea why you're applying REAL GDP growth figures to a NOMINAL GDP figure.

Real to nominal also depends on rupee dollar adjustment rate. Along with inflation. So to achieve 14 % nominal one can have 7 % real gdp growth+2 % rupee appreciation + 5% inflation.

 

[DutchZZ]

Real to nominal also depends on rupee dollar adjustment rate. Along with inflation. So to achieve 14 % nominal one can have 7 % real gdp growth+2 % rupee appreciation + 5% inflation.

No, 14% is only for one year.

10% real GDP (due to low base effect of 2020) and 3-4% inflation = 13-14%

I can't predict rupee appreciation/depreciation, no one can hence I wouldn't try to. Even if rupee depreciates 2%, let's say, it will still be a $5tr economy by 2026. Who knows, rupee may appreciate or stay the same.

 

[LurkerBaba]

Good news. Many politicians would be shitting bricks now

Govt decides to bring cooperative banks under RBI through an ordinance

There are more than 8.6 crore depositors in over 1,500 urban and multi-state cooperative banks across the country.'Depositor will be assured his money is safe,' Prakash Javadekar said

www.livemint.com

 

[IndianHawk]

India’s unemployment rate back at pre-lockdown levels, jobs on the rise: CMIE

In what seems to be good news for the Indian economy, the country's unemployment rate has eased to pre-lockdown levels and further recovery is expected in the coming months, said CMIE.

www.indiatoday.in

Very fast recovery.