Indian Economy: News and Discussion

[ezsasa]

We can not insulate our economy from external effects. The risks and blackmails must be negotiated. Just an example of pharma industry which runs on patents controlled by western countries we have to suck up to their patronisation and it comes in many colours and shapes.

Internalising economy has very limited revenue scope. And we are already far behind in every markers; major being infrastructure which can not be run on demand and supply paradigm decided by politicians. As far as only small amount of people living in skyscrapers is a concern then we need to build them first. The money saved as deposits and in gold will start pouring out once there is good supply driven demand.

ultimately that is what we all are waiting for, that breakout moment.

but it looks like just like in China and other countries who growth started in late 90’s, that breakout moment for us too will be stretched across a few decades.

 

[Indx TechStyle]

Our imports are only increasing

I know but I was referring to Crude Oil imports.

Increasing imports are actually a sign of positive growth in consumption. Unless we have magically produced all those things we imported an year, founded alternatives for it or went into a great recession, imports won't drop.

 

[doreamon]

Why did the merchandise exports fall between 2013 and 2016? That’s a pretty dramatic fall. If we had continued the growth path then, merchandise exports might be touching $600 billion now.

These were the reasons
- anti global attitude in west . Some countries trying to reduce import .
- global slow down
- world got divided in to trade blocks which signed free trade among them . India nt part of any of them .
- Structural factors like logistic expense .
- lack of high value cutting edge tech products in manufacturing as well as lack of high value agri products which other developing or small growing economy cnt produce ..

 

[hit&run]

ultimately that is what we all are waiting for, that breakout moment.

but it looks like just like in China and other countries who growth started in late 90’s, that breakout moment for us too will be stretched across a few decades.

I will tag @Indx TechStyle here. I owe him the positivity he packed into me on the upcoming success story of India.

In the mean time I can sensationalise this debate by identifying few area which are going to be decisive in near and far future respectively. One is Automation and AI lead industrial revolution other is Expentionism 2.0 where current world order will be renegotiated and national boundaries will be expanded.

India must work on first before going for the second without any guilt.

 

[Lonewolf]

I sorry what you just wrote is called "mungrilal ke haseen sapne".

lavish lifestyle Really ?

Do you think in a country whose population still struggles with 19th century issues like water,sanitation,nutrition,basic healthcare will all of a sudden become a prosperous country in 15-20 years.The kind of living standards that is prevalent over India can only be found in countries that form the bulk of the bottom 25% quartile.Therefore It would be a massive achievement even if we achieve a living standard anywhere closer to Mexico,Peru.

Becoming the 3rd largest economy is not an achievement especially when you have a continental size population. Being the elephant in the house is not an achievement when the rest of the competitors are pygmies. Ireland with the population of just 45 lakh can produce an economy of 500 billion USD which is bigger than Maharastra.

As for per capita income,According to Centre for Economics and Business Research,India will only manage to achieve a per capita income of $7,000 by 2035 and a GDP of just over 9 trillion.
Which means India will continue to remain below world average,almost 6 times poorer than China,2.5 times poorer than Turkey,Mexico and Vietnam.

Show me report idiots

 

[sorcerer]

India emerges as 5th largest forex reserves holder in the world with $608.99 billion as on June 25, 2021


Posted On: 19 JUL 2021 6:56PM by PIB Delhi



With India’s forex reserves at $608.99 billion as on June 25, 2021 stood, India has emerged as the fifth largest foreign exchange reserves holder in the world after China, Japan, Switzerland and Russia. This was stated by Minister of State for Finance Shri Pankaj Chaudhary in a written reply to a question in the Lok Sabha today.


The Minister stated that India’s foreign exchange reserves position is comfortable in terms of import cover of more than 18 months and provides cushion against unforeseen external shocks. Government and RBI are closely monitoring the emerging external position calibrating policies or regulations to support robust macroeconomic growth.


Giving more details, the Minister said that RBI takes regular steps for diversification of forex reserves by scaling up operations in forex swap and repo markets, acquisition of gold and exploring new markets/products, while adhering to safety and liquidity standards. Variation in India’s forex reserves is primarily the outcome of RBI’s intervention in the foreign exchange market to smoothen exchange rate volatility, valuation changes due to movement of US dollar against other international currencies in the reserve basket, movement in gold prices, interest earnings from deployment of foreign currency assets and inflow of aid receipts.


The Minister further stated that a current account deficit, accompanied by increasing foreign exchange reserves, reflects a surplus on the balance of payments i.e., the magnitude of the net capital inflows exceeds the volume of the current account deficit. In 2020-21, India’s balance of payments recorded surplus in both current account and capital account which contributed to the increase in foreign exchange reserves during the year.


Besides exports and imports of goods and services, the overall stability of the external sector depends on other components of balance of payments including remittances (transfers), income in the current account, the size of net capital flows and external debt. India is comfortable in most of these external sector vulnerability indicators, the Minister said.

 

[ezsasa]

I will tag @Indx TechStyle here. I owe him the positivity he packed into me on the upcoming success story of India.

In the mean time I can sensationalise this debate by identifying few area which are going to be decisive in near and far future respectively. One is Automation and AI lead industrial revolution other is Expentionism 2.0 where current world order will be renegotiated and national boundaries will be expanded.

India must work on first before going for the second without any guilt.

I am the white hat, reached here after passing thru all the colors eversince i started here at DFI.
what you need are more green hats to talk to.

 

[sorcerer]

Nearly 72% of financial transactions of PSBs done through digital channels

Share of financial transactions undertaken through home and mobile channels increased from 29% in FY2018-19 to 76% in FY2020-21

Posted On: 19 JUL 2021 6:55PM by PIB Delhi



The Government has taken a number of steps to facilitate digital banking, doorstep banking services and digital lending platforms. This was stated by Minister of State for Finance Dr Bhagwat Kisanrao Karad in a written reply to a question in the Lok Sabha today.


Giving more details, the Minister stated that these services include, inter-alia, the following:

2. Initiation of digital lending has been made contactless through PSBloansin59minutes.com, using triangulation of credit bureau, income-tax and goods and services tax (GST) data, to provide online in principle approval for MSME loans.
4. Online bill discounting for MSMEs has been enabled on a competitive basis through Public Sector Banks (PSBs) onboarding onto the Trade Receivables Discounting System (TReDS) platform and the proportion of online discounted bills has grown rapidly.
6. Government’s ‘Jeevan Pramaan’ initiative for pensioners has enabled senior citizen pensioners the facility to update their annual life certificate online.
8. Under the Government-initiated PSB Reforms Agenda,—
   

2. Enhanced access to Mobile and Internet banking has been enabled through an increase in the average number of services offered (43), customer-friendly features (135) and regional language customer-interface (8);
4. End-to-end automated digital lending has been introduced in larger PSBs for unsecured personal loans (in five PSBs), loans to micro-enterprises (“Shishu Mudra”, in five PSBs) and renewals of loans to micro, small and medium enterprises (in three PSBs);
6. Digital retail loan request initiation through digital channels has been enabled in all the seven large PSBs, with retail disbursements from loan requests so initiated in the financial year (FY) 2020-21 amounting to Rs. 40,819 crore;
8. Customer-need-driven, analytics-based credit offers have been given an impetus, resulting in Rs. 49,777 crore of fresh retail loan disbursements by the seven larger PSBs in the financial year (FY) 2020-21.
   As a result, nearly 72% of financial transactions of PSBs are now done through digital channels, with doubling of customers active on digital channels from 3.4 crore in FY2019-20 to 7.6 crore in FY2020-21, and the share of financial transactions undertaken through home and mobile channels has increased from 29% in FY2018-19 to 76% in FY2020-21.
   

2. PSB Alliance, an initiative of all PSBs and Indian Banks’ Association, has launched doorstep banking services for all customers, including senior citizens, through call centre (1800-121-3721 and 1800-103-7188), web portal (https://psbdsb.in/ and https://doorstepbanks.com/) mobile app (Google Play Store). At present 13 services are being offered in 100 cities across the country, which include cash withdrawal or deposit, pick-up of cheque or demand draft or pay order etc., pick-up of cheque-book requisition slip, pick-up of income-tax forms no. 15G/15H, pick-up of income-tax/GST challan, and delivery of tax deduction at source (TDS) and Form-16 certificates for income-tax purposes.
   

The Minister further stated that there is no proposal under consideration of the Government for setting up of a Digital Banking Infrastructure Corporation (DBIC). As per inputs from banks, some PSBs have held discussions to set up a corporation to create a common digital infrastructure platform as a joint initiative of the banks, with a view to enable enhanced access to consumers and businesses for credit offerings.

 

[FalconSlayers]

India emerges as 5th largest forex reserves holder in the world with $608.99 billion as on June 25, 2021


Posted On: 19 JUL 2021 6:56PM by PIB Delhi



With India’s forex reserves at $608.99 billion as on June 25, 2021 stood, India has emerged as the fifth largest foreign exchange reserves holder in the world after China, Japan, Switzerland and Russia. This was stated by Minister of State for Finance Shri Pankaj Chaudhary in a written reply to a question in the Lok Sabha today.


The Minister stated that India’s foreign exchange reserves position is comfortable in terms of import cover of more than 18 months and provides cushion against unforeseen external shocks. Government and RBI are closely monitoring the emerging external position calibrating policies or regulations to support robust macroeconomic growth.


Giving more details, the Minister said that RBI takes regular steps for diversification of forex reserves by scaling up operations in forex swap and repo markets, acquisition of gold and exploring new markets/products, while adhering to safety and liquidity standards. Variation in India’s forex reserves is primarily the outcome of RBI’s intervention in the foreign exchange market to smoothen exchange rate volatility, valuation changes due to movement of US dollar against other international currencies in the reserve basket, movement in gold prices, interest earnings from deployment of foreign currency assets and inflow of aid receipts.


The Minister further stated that a current account deficit, accompanied by increasing foreign exchange reserves, reflects a surplus on the balance of payments i.e., the magnitude of the net capital inflows exceeds the volume of the current account deficit. In 2020-21, India’s balance of payments recorded surplus in both current account and capital account which contributed to the increase in foreign exchange reserves during the year.


Besides exports and imports of goods and services, the overall stability of the external sector depends on other components of balance of payments including remittances (transfers), income in the current account, the size of net capital flows and external debt. India is comfortable in most of these external sector vulnerability indicators, the Minister said.

Russia again overtook us?

 

[sorcerer]

Russia again overtook us?

The difference was too little between India and Russia

 

[mushahary]

Russia again overtook us?

As per wiki we are at 4th, figures of 9thjuly for russia and india
havent checked the source though.

 

[Indx TechStyle]

Russia again overtook us?

Gap was too small. India will be put ahead with larger gap later as it did with Taiwan and Saudi Arab and ROK.

 

[Indx TechStyle]

As per wiki we are at 4th, figures of 9thjuly for russia and india
havent checked the source though.
View attachment 100748

Not updated yet probably.

 

[Indx TechStyle]

The difference was too little between India and Russia

Not updated yet probably.

Well no. It's completely updated per official sources. RBI cites Indian forex $611.895 billions and Russian cites their forex at $593.7 billions.

Data are updated weekly in both Russia and India.

 

[Lonewolf]

Well no. It's completely updated per official sources. RBI cites Indian forex $611.895 billions and Russian cites their forex at $593.7 billions.

Data are updated weekly in both Russia and India.

I am but concerned about our forex ,as it is based on gold and dollar ,what will happen with american withdrawal of currency and market stabilisation ?

Also it is bit much than countries of our class , so what can we do something strategic with it right now

 

[ezsasa]

I am but concerned about our forex ,as it is based on gold and dollar ,what will happen with american withdrawal of currency and market stabilisation ?

Also it is bit much than countries of our class , so what can we do something strategic with it right now

On a side note.

There is a theory that US has so much debt because they want every country to use their currency, this is how the world became a $ based economy which inturn makes Murica Supa powa.

 

[Indx TechStyle]

One is Automation and AI lead industrial revolution other is Expentionism 2.0 where current world order will be renegotiated and national boundaries will be expanded.

That going in WW2 style is unlikely. Populations around world are nationalistic and conscious and not rough and tough enough to do a war. The supranational unions, confederations or plebiscite drive mergers may happen in world.

I am but concerned about our forex ,as it is based on gold and dollar ,what will happen with american withdrawal of currency and market stabilisation ?

Not gold exactly buy dollars. We sell ruppees and but dollars to keep our exports cheap. But it also helps our forex further compensated by remittances and IT industry.

As long as US is dominant enough and continues to enforce dollar bills, we will keep doing fine.

Also it is bit much than countries of our class , so what can we do something strategic with it right now

Substitute imports with indigenous products. For swifter effect, substitute foreign firms with Indian ones to absorb profits too.

Our forex reserves are now massive and mostly sufficient to cover us till we reach that stage. Provided there are not successive COVID-19 recession like things happen in India.

 

[another_armchair]

Govt's excise collections on petrol, diesel jump 88% to Rs 3.35 lakh crore

Excise duty on petrol was hiked from Rs 19.98 per litre to Rs 32.9 last year to recoup gain arising from international oil prices plunging to multi-year low as pandemic gulped demand. The same on diesel was raised to Rs 31.8 from Rs 15.83 a litre, according to a written reply to a question given...

economictimes.indiatimes.com

Government collects Rs 1.01 lakh crore from excise, Rs 2.41 lakh crore from income tax in Q1

Giving details of direct tax collection, Chaudhary said in the first three months (April-June) of the current fiscal year, nearly Rs 1.21 lakh crore and over Rs 1.20 lakh crore was collected as corporate tax and personal income tax (PIT) , respectively.

economictimes.indiatimes.com

 

[Suryavanshi]

As per wiki we are at 4th, figures of 9thjuly for russia and india
havent checked the source though.
View attachment 100748

It will takes us good 4 to 5 years to surpass Switzerland

 

[Kumata]

It will takes us good 4 to 5 years to surpass Switzerland

Provided we continue this USD hoarding at extended pace.