Indian Economy: News and Discussion

[captscooby81]

Just funny the Automobile sector which is facing slowdown is going for another 7-10 % price hike , Guess what this time the blame is on BS6 implementation . Thank god they are not using the same repeated line of manufacturing cost has gone up . For a change they are giving new reason

Tata Tiago, Nexon, Harrier, Hexa – Prices to increase

The announcement of this news resulted in a staggering 7% increase in the share price of Tata Motors.

https://www.rushlane.com/tata-cars-prices-hike-jan-2020-12345046.html

Maruti Alto, WagonR, Brezza, Ertiga – Price hike from Jan 2020

Rising input costs and updates of engine lineup to comply with BS6 emission standards have made this price hike mandatory.

 

[Bhurki]

Don't want to ruin the party, but...

https://timesofindia.indiatimes.com...rs-holds-on-to-rates/articleshow/72379278.cms
The RBI slashed its GDP forecast for 2019-20 for this fiscal to 5% from 6.1% earlier.
Repo rate is held at 5.15% and inflation is at 4.7%.

https://m.businesstoday.in/lite/sto...owth-drops-in-q2-indian-economy/1/391293.html
Meanwhile, the monthly review of accounts of Union government till October shows that fiscal deficit in value term has already crossed the government's full-year target of Rs 7.04 lakh crore. In the April-October 2019 period, fiscal deficit was Rs 7.20 lakh crore, 102.4% of the target.

The net tax collections till October remain subdued at Rs 6.83 lakh crore, just 41.4% of the full-year Target of Rs 16.5 lakh crore.

 

[indus]

The UPA era growth was credit funded growth. Govt losened up the loan kitty and industries had a fun time adding up capacities. Now those capacities are left underutlized due to stagnant demand. Now due to absence of increased revenues the companies are unable to pay back loans leading to NPA crisis. Those companies which are not going kaput are using their revenue stream to payback old loans putting strain on profitability. So basically nobody is adding up new capacity so new employment is also not being generated. This will continue till all the old loans are paid back and demand stimulus necesitates fresh credit cycle.
Now coming to exports, which have been practically stagnant over last five years due to recession in Europe and poor demand in America. Hence we have reached the bottom gdp growth rate of 4-5% which is based on pure internal consumption. But due to less wage growth and lesser employment generation the savings are taking a hit, hence the consumption led growth is also reducing. Taking management control of companies through NCLT can solve NPA problem but not stimulate demand. Untill that happens the next cycle of credit funding will not start.
RBI tried to stimulate by reducing repo rates but that has also failed to show positive results. So RBI ddnt give in any reduction this time. Govt with the RBI cashback and PSU sale etc is lining up Govt funding in infra sectors, but corporate and exports have to catch up. About agriculture, less said the better.

 

[Bhurki]

The UPA era growth was credit funded growth. Govt losened up the loan kitty and industries had a fun time adding up capacities. Now those capacities are left underutlized due to stagnant demand

Demand can be created by credit push even today, but as you can see in my last post, this govt has already over-extended its fiscal arms and now has only a few avenues left to boost demand eg.- sale of SOE etc.
Looks like despite trade war, China will reclaim the 'fastest growing major economy' title this year.

 

[avknight1408]

Demand can be created by credit push even today

https://in.reuters.com/article/us-i...salve-and-a-long-term-pain-idINKBN1Y90GO?il=0
Already happening. Brace yourselves for next wave of NPAs.
MUDRA + loan mela = disaster

 

[sorcerer]

https://in.reuters.com/article/us-i...salve-and-a-long-term-pain-idINKBN1Y90GO?il=0
Already happening. Brace yourselves for next wave of NPAs.
MUDRA + loan mela = disaster

Reuters!! well!!

lets see any official info from the source on it.
A lot of media houses are having a field day .

 

[Bhurki]

https://in.reuters.com/article/us-i...salve-and-a-long-term-pain-idINKBN1Y90GO?il=0
Already happening. Brace yourselves for next wave of NPAs.
MUDRA + loan mela = disaster

The aim of credit push as a growth engine is secondary to its primary aim of stopping a slowdown.. As long as the slowdown can be pushed to the next fiscal, it all stays well in developing economies despite growing mountains of debt(china). Its like rolling bonds by reissuing newer bonds. The problem comes when all debt owners try to cash out together.

 

[Knowitall]

This banning of e pharma is an extremely bad move.

You are literally telling investors zada mat dalo kabhi bhi gand maar sakte hai.

Government trying to sheild this bullshit will turn out real bad in the future. I know so many people for whom these online pharama companies was a gift literally.

Bas job bachane ke chakar pe sector ki laga di.

It's like you write an answer with a pen then after sometime you realize you don't like it so you cut it.
Aise hi karte raho pura paper scribble hojaega or marks nahi milega same goes for government you don't just change rules overnight and be like aur bhai sab badiya.

Anyways baju wale uncle was today bashing bjp poor guy wanted a new car mushkil se budjet me aya ab wapis badh gaya.

 

[ezsasa]

Demand can be created by credit push even today, but as you can see in my last post, this govt has already over-extended its fiscal arms and now has only a few avenues left to boost demand eg.- sale of SOE etc.
Looks like despite trade war, China will reclaim the 'fastest growing major economy' title this year.

Could it be possible that the demand slowdown is because of lack new products and expansion into new markets in India?

For example:
1) now would be a good time to promote roof top solar
2) Electric vehicles (especially 2 wheelers)
3) create new CBD(central business district) areas in tier 2 & 3 cities.
4) create more public spaces for low cost family outings, rents from shops should easily cover the running costs.

 

[Knowitall]

Could it be possible that the demand slowdown is because of lack new products and expansion into new markets in India?

For example:
1) now would be a good time to promote roof top solar
2) Electric vehicles (especially 2 wheelers)
3) create new CBD(central business district) areas in tier 2 & 3 cities.
4) create more public spaces for low cost family outings, rents from shops should easily cover the running costs.

1.roof top solar panels are going good already nothing new here..

https://wap.business-standard.com/a...wer-in-last-fiscal-report-119070901032_1.html

https://qz.com/india/1742584/pune-h...r-cities-in-indias-rooftop-solar-energy-race/

2. Electric vehicles are doing fine 2 wheelers are doing great it has achieved a triple digit growth this year.

https://www.autocarindia.com/car-news/ev-sales-in-india-cross-75-lakh-mark-in-fy2019-412542

While at the same time problems remain and passenger vehicles sell low.

https://www.thehindubusinessline.co...of-affordability-charging/article29614676.ece

3. For central business districts the only chance of us hearing anything here is the upcoming 100 trillion investment plan coming up.

If nothing is present in that plan relating to this then there is no hope of this happening government has already put many projects on the backburner due to lack of funds.

4. Something like this was being planned in the eastern waterfront area of mumbai

https://m.timesofindia.com/city/mum...erfront-plan-revived/articleshow/70636087.cms

But ab lo maze or do shiv sena ko vote this project is rest assured dumped.

Other than that government will and continues to ignore such things in most cases.

 

[Bhurki]

Could it be possible that the demand slowdown is because of lack new products and expansion into new markets in India?

For example:
1) now would be a good time to promote roof top solar
2) Electric vehicles (especially 2 wheelers)
3) create new CBD(central business district) areas in tier 2 & 3 cities.
4) create more public spaces for low cost family outings, rents from shops should easily cover the running costs.

Again, all this is well and good when an absolute state policy directs majority of sustainable credit towards focused areas..
In India, the fiscal space is getting tighter and tighter. Not only that, but loose control over credit would mean these new loans will flow into conventional areas of economy and at best will pull it out of a slowdown.
A grand change towards a newer tech sector or even significantly expanding existing one requires massive capex to be expended in a single jolt, which requires very focused credit flow.

 

[Hari Sud]

May be it is time for outside consultation. Collect the best economic minds (except Rajan
- he is more of a Congress man) and business people and ask them - how to tackle this slowdown. The BJP has run out of options. Asking Congress men will politicalize the situation.

Find a solution sooner than later.

 

[Prashant12]

Centre plans to build 11 new airports in Jammu and Kashmir, 2 in Ladakh

The Centre has decided to build 11 new airports in Jammu and Kashmir and two in Ladakh under the Ude Desh Ka Aam Nagrik( UDAN)-Regional Connectivity Scheme (RCS).

In an apparent effort to launch big-ticket infrastructure projects in Jammu and Kashmir and Ladakh after the abrogation of Article 370, the Centre has decided to build 11 new airports in Jammu and Kashmir and two in Ladakh.

These airports will be developed under the Ude Desh Ka Aam Nagrik( UDAN)-Regional Connectivity Scheme (RCS) of the BJP-led government at the Centre. The bidding process for the development of these new airports started on December 3, 2019.

In Jammu and Kashmir, the new airports will be built in Akhnoor, Udhampur, Chambh, Gurez, Fukche, Jhanghar, Miran Sahib, Poonch, Rajouri, Panjgam and Chusal. On the other hand, Ladakh is set to get new airports at Kargil and Thoise.

On December 3, the Airports Authority of India (AAI) had invited the 4th round of bidding of its regional connectivity scheme for the selection of airline operators under the UDAN scheme. The interested firms can submit their proposals for the RCS routes through the e-bidding portal at AAI.

It is learnt that the AAI has decided to give priority to air connectivity to North Eastern Region, Himachal Pradesh, Chhattisgarh, Andaman & Nicobar Islands, Lakshadweep Islands, Uttarakhand, Jammu and Kashmir, and Ladakh among others.

Sources claimed the difficult terrains are being given utmost priority under UDAN 4.0 to increase connectivity and cut down the travel time considerably for the people residing in these areas.

Under the UDAN scheme, financial incentives in terms of concessions from the Centre, state governments and airport operators are extended to selected airlines to encourage operations from unserved and underserved airports and keep airfares affordable.


https://zeenews.india.com/india/cen...in-jammu-and-kashmir-2-in-ladakh-2250486.html

 

[Prashant12]

Supreme Court allows new terminal construction in Agra but says no new flights

https://www.indiatoday.in/india/sto...n-flights-aai-dgca-tourism-1625535-2019-12-05

 

[jackprince]

Come on. She isnt arrogant. She just said her family doesnt eat much onions, garlic so is unaffected. Butt that doesnt mean Govt isnt doing anything for onions. They are importing abt 1L MT onions, right. Media as usual is playing emotional atyachar card by portraying Nirmala as insensitive. Infact, if people reduce consumption all this hullaboo wont occur. And news channels would find hard to rake up TRP.

As a senior cabinet member she should have the presence of mind not to make such statements. The statement was arrogant with touch of superiority complex and appears completely insensitive. She basically implied that she is morally high because of her family's dietary habits doesn't include onion like Jains. She is trying to outdo herself in making an ass of herself as well as BJP. Just wait till she is compared with Mary Antoinette. Politics is a game of image and perception, and more than core supporters who remains in support through thick and thin, the game hinges on the fence-sitters' perception more.

2013 - the Onion price reached ₹85. May, 2014 Modi wave washed away UPA. No, obviously Onion price itself was not the only reason. But, it was one of the reasons. Essential commodity price is very gery important as a marker of good governance.

 

[cannonfodder]

Economy is not doing well 4.5-5% is too low growth. BJP will have to solve the problem and get it back to 7-8% growth rather than being arrogant.

I know GOI is doing well with inflation numbers, lesser corruption and increasing consumption via infra projects+ local defence production. But not acknowledging the truth would be disastrous. Economy wise its not stellar performance by GOI.

 

[Indx TechStyle]

Another idiot,
"If there's slowdown in auto sector, why so many jams on roads?"
Seriously, there's a slowdown in textile sector too, why people are not wandering naked?

From where the hell BJP brings such gems?

 

[Deathstar]

Another idiot,
"If there's slowdown in auto sector, why so many jams on roads?"
Seriously, there's a slowdown in textile sector too, why people are not wandering naked?

From where the hell BJP brings such gems?

BJP has become way too arrogant post LS win. Modi might not be one but his party people are

 

[Willy3]

BJP has become way too arrogant post LS win. Modi might not be one but his party people are

It's not BJPs arrogance... it's not having many articulate experienced speaker

Once BJP had jeitley-swaraj etc to rip apart any questions...

And every ruling party members try to defend it from any negetive news....

BJP just have unfriendly media which would project only motormouths as party statement

 

[Deathstar]

It's not BJPs arrogance... it's not having many articulate experienced speaker

Once BJP had jeitley-swaraj etc to rip apart any questions...

And every ruling party members try to defend it from any negetive news....

BJP just have unfriendly media which would project only motormouths as party statement

So its the responsibility of the party secretary to keepa leash on its motormouths