Indian Economy: News and Discussion

DerBronzeLord

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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.
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).
 

DerBronzeLord

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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.
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.
 

sorcerer

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Modi's Aatmanirbhar Bharat doctrine energises dying small scale industries




New Delhi, Feb 24:
Several dying small scale industries in India are looking at a comeback with Prime Minister Narendra Modis thrust on Aatmanirbhar Bharat that also focuses on import reduction. Sentiments are also rapidly changing as the country hopes to register growth in the third quarter of the current financial year.


Sample this.


Firozabad, in Uttar Pradesh, is known for its glass and glassware industry. Thousands of micro units dealing in manufacturing of glass bangles, bottles, artefacts, tumblers besides chandeliers, have suffered for years as cheap imports of these items from China have had a severe impact on their livelihood. However, now with a drastic drop in imports of these items from China, these small manufacturers are re-looking at reviving their businesses.


While they are yet to get their act together, there is a sense of positivity.


"Sentiments have taken a positive turn. While we cannot yet say that things are moving, the sentiment has turned positive and that is critical. There is a sense of exuberance and confidence that they can replace the Chinese made goods," Anil Bhardwaj, secretary general, Federation of Indian Micro and Small and Medium Enterprises (FISME) told India Narrative.


The association has zeroed in on the cluster manufacturing chandeliers. "We are looking at reviving the chandelier makers," he said.


Similarly, in Panipat, many small mink blanket makers had nearly perished, once again for the same reason that they could not withstand Chinese competition.


However, this winter has been a different story for them. The sale of these blankets has been "extremely good" with no competition from the Chinese.


Experts said that the Centre's thrust on the ‘Make in India' project has led to several small-scale businesses dealing in a variety of items such as toys, lights, home decoration items, mobile phone accessories, apparel and footwear among others which have been facing serious competition from Chinese made goods are now set for a revival.



Turnover for traders only during the festive season—beginning the festival of Rakshabandhan till December—is estimated at Rs 60,000 crore of which over two-thirds went into the Chinese kitty, the Confederation of All India Traders (CAIT) said.


Last year, there was no import of any item for the festive period from China.


"We have not sourced any item related to the festive season from China this year as we are promoting our own artisans. This has proved to be beneficial for thousands of local craftsmen. Our endeavour is to primarily engage women and women's self-help groups (SHGs) for this," Praveen Khandelwal, secretary general, CAIT said.



However, imports of other critical input items and raw materials from China have not been curtailed to ensure that Indian manufacturers do not face any hurdle.


Jobs data indicate a revival


The Centre for Monitoring Indian Economy (CMIE) data for the month of January showed that the country's unemployment rate fell to 6.5 per cent from 9.1 per cent in December last year. According to the data monitoring think tank, rural unemployment fell from 9.15 per cent in January to 5.83 per cent.


CMIE said that about 12 million additional people were employed in January at 400.7 million as compared to 388.8 million in December last year. This has been the highest since the Covid-19 induced lockdown was imposed in March 2020. Importantly, the rise in January employment trend has compensated for the loss in the past three months.



"We have the vaccines now. So it is a very different situation from last year..there is no point in spreading fear," he said.


The MSME sector, which employs about 11 crore people, in India is crucial for job creation. It is also key for economic revival, especially after a shocking 23.9 per cent economic contraction in the first quarter and 7.5 per cent in the second quarter.


Fuck china
 

IndianHawk

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India will mint a whole lot of millionaires in coming decades.

If you have a solid business plan act on it ASAP.
India is going through greatest wealth generation cycle earth has ever seen.
 

ezsasa

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Reliance Jio will invest ₹7,000 Cr to build a Hyperscale Data Centre in UP, consisting of 6 buildings with 30,000 racks capacity and needing 200MW of power. It will generate thousands of jobs in IT sector. The Yogi Govt has allotted 20 Acres for the same.

 

Haldilal

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its ghar wapsi then!
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.
 

IndianHawk

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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.
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.
 

Haldilal

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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 That's The Financial Terrorism.
 
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ezsasa

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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.
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.
 

Haldilal

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Ya'll Nibbiars
 

ezsasa

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Embargo lifted on grant of Govt business to private banks. All banks can now participate. Private banks can now be equal partners in development of the Indian economy, furthering Govt's social sector initiatives, and enhancing customer convenience.

 

no smoking

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1) If US and China can have a high export inspite of appreciated currency, why India can not have?
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.

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.
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.


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.
Again, check the fact before making your claim.

1614208967618.png


If you want to be Mr Modi's spokesman, you need to do much better.
 

IndianHawk

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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.
Half assed logic .
India is already 6th largest manufacturing nation in world and is moving up the ladder faster than any other country in the world. It's moving forward in both low and high end manufacturing. It's aerospace cluster is growing as fast as textile industries. Old notions of low end and high end based economy do not exist anymore.

Rupee would appreciate greatly if not for rbi buying dollars to build a massive foreign exchange reserve.
 

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