The best example to prove this is China. After Deng Xiaoping, who can be equated to Narasimha Rao, they had their own Vajpayee in the name of Jiang Zeming. Shenzhen became a massive tech hub under Jiang. India would have followed the same path as China if not for MMS. If Vajpayee had been elected for a second term, India would have been closer to China. MMS isn't the great economist everyone makes him to be. The 1991 reforms were a low-hanging fruit, which was kind of obvious to anyone. I judge MMS based on the performance of the economy in the 2004-2014 period, where they focused on the Service sector as a short-term fix to provide jobs. Vajpayee had a plan, AFAIK, to make India the factory of the world, much before China had even become one. The infra investments under him, along with his push for manufacturing in India(I can't find this right now, but he had made a speech, asking for more Indian manufacturing and less imports, pretty good speech, but can't find it rn).Vajpayee ji was a great leader but could not manage the dirty nexus of media, Lutyens, commies, Islamist and Congress. Modi and shah has systematically destroy this eco system. This media, Lutyens, commies, Islamist and Congress machine is not an effective tool to change the rein in Delhi.
Mauritius is also the third-largest(?) FDI investor in India. Very interesting. This is probably due to the low tax rates, due to which several companies open their "HQ" in Mauritius.Mauritius route is a very important route through which Stolen money comes back to India. If we tightens this route, our stolen money may not come back. It is practical to keep this route open inspite of the same being immoral.
Solution to that is stopping black money generation in first place. Once there is black money it is better for it to be reinvested in economy one way or another.Ya'll Nibbiars and again is rerouted as like that no tax is paid. Employees get paid less. And the burden is passed on to the Tax Payer's.
Black money generation cannot be stopped, might as well ensure it get's invested as white in the country rather than sitting in foreign bank accounts or foreign property.Solution to that is stopping black money generation in first place. Once there is black money it is better for it to be reinvested in economy one way or another.
Because India is not the same development stage as either US, or China.1) If US and China can have a high export inspite of appreciated currency, why India can not have?
Check your figures before making your claim.2) Your post has the answer of your question itself. Explain me why India's trade balance is not increasing inspite of INR devaluating. Now check the same figures of Vajpayee ji's era of 2003 to 2005. INR appreciated and trade balance improved. Both happened simultaneously.
Again, check the fact before making your claim.Even look at the FY 2020-21 to date. INR has appreciated and We are in trade surplus today for current FY. Now explain these phenomenon applying your logic.
Half assed logic .Because India is not the same development stage as either US, or China.
US is the one of her own league - monopolization of the technologies and services, the top of the value chain. USD appreciation has very little affect on them.
China is in the stage of moving from low-end to the middle of the value chain, they have created a massive scale of manufacturing base to absorb the fluctuation of yen. Quality is more important than price.
India, however, is still at the low end of the industries. The Customers the low-end products are very sensitive to the price.
India can push up her rupee, but not now, neither near future. She can only do that once she stabilize her position and reputation in the supply chain, which will take years if not decades.
Check your figures before making your claim.
Let's see what really happened to the trading balance:
2002: -5.05 B
2003: -4.23 B
2004: -12.66 B
2005: -22.90 B
India Trade Balance 1960-2021 | MacroTrends
So, except 2002-2003, India's trading balance was getting worse. That is understandable, the foreign exchange rate movement generally doesn't affect economy immediately.
If we look a bit further, the appreciating trend of Rupee continued until Jan-08, during which Rupee hit 39.27 vs USD. In the meantime, India's trading balance went down to -62.02 B. The damage was so bad, even though India rupee turned to depreciate since then, the impact still continued until 2011 - the worst trading balance: -122.91 B.
Again, check the fact before making your claim.
View attachment 79644
If you want to be Mr Modi's spokesman, you need to do much better.
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