Indian Economy: News and Discussion

Chandragupt Maurya

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As time goes Extortion is going down in MH, I don't think big firms like L&T, Mahindra, Reliance pay extortion to anyone same in case of MSME the only thing they may give money to is Politicians.
In case of Bihar which has no ports, no infra, no power it does not make sense to set up industries.
I agree with this point that infrastructure needs to be improved in entire eastern region to increase industrialization but extortion logic is not applicable because it’s present everywhere in India
 

sauntheninja

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Exactly.

There seems to be assumption or belief both in the forum and India in general that a large population is bound to invite low end manufacturing simply due to cheap labor.

It is only after the recent trends over the past few years have people started to realize that cheap labor cannot be used as a magnet to invite manufacturing.

Contrary to the popular belief the low end manufacturing segment of the world economy is not up for grab to the lowest bidder.

It is extremely competitive in nature and the low cost segment focus on cost savings in the entirety and not labor only.

Location
infrastructure
transportation
shipment duties
skilled labor in that category
friendly market
cheap labor

All of these combinations together form the core of low end manufacturing industry worldwide. Excelling in only one or few of these will not bring in the desired results.

View attachment 102142

This is also one of the prime reasons of ASEAN successfully taking over the manufacturing leaving china.

View attachment 102138

Until and unless we identify the core problems and act on them we will continue to face similar results.
I can find articles dating back to the 1990s urging the government to passs land and labour laws but its too risky to pass that laws
 

FalconSlayers

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Last year, 33 new fintech investment deals worth US$647.5 million were closed in the Indian market in the quarter ending June 2020, compared to China’s US$284.9 million. India’s fintech market is now valued at US$31 billion, projected to grow to US$84 billion by 2025. The fintech transaction value size is projected to grow to US$138 billion by 2023 from US$66 billion in 2019.

:balleballe::balleballe:


After Zomato’s blockbuster IPO demonstrated the appetite for consumer internet firms in public markets, the list of firms planning IPO’s soon continues to grow. After CarTrade, MobiKwik, Paytm and PolicyBazaar, Nykaa has converted into a public entity now


IPO-IPO :playball::playball:


View attachment 102079
Yet another week of 1B+ raising. :truestory:
All this without Chinese money
 

Suryavanshi

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U know I sometimes feel like we can never be no China, USA or Japan.
We have to many blood suckers.
-Politicians
-Bureaucracy
-Anti India Elements
-The Public

Unlike America we don't have as much free land that a industry will set up far from any urban population where no public can break shit in protest.
We don't have guns to defend against extortion.
We don't have Capitalist mindset of the 1900s to 1970s Amrica
We have been infected by the naxal disease which America killed in Infancy.

As we evolve we are having problem of first world nation without tasting first world development
 

another_armchair

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Kek dint they pay ulfa as well?
So much for Ambani is the best Businessmen but Roton ji is the best human.
I don't know if the day would come when Naxals are totally eradicated from India.
Yeah.. ULFA .. SULFA(Surrendered ULFA) to Naxals to political parties to ensure no POSCO or Mittal gets to set foot in their territory.
 

Knowitall

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Not trying to raise a strawman here but what is the role of automation in manufacturing job losses?

Automation has definitely led to job losses in the automobile manufacturing sector.

Consumer durables started sourcing from China in the past decade so your Indian mixer grinder, washing machine etc or a good part of its components are sourced from China and assembled here.

All raw material for bags, jackets etc are sourced from China.

VIP Skybags gets most of its bags manufactured in China and partly in Bangladesh.

A good number of Amazon basics backpacks are made in Bangalore through some third party vendor.

Same with large clothing brands including Flying Machine.

Manufacturers say they simply can't match the wages in India and remain profitable.

A pretty large 'plain' t-shirts manufacturer has a couple of factories in Tiruppur. They make about 10% on a finished product that leaves the factory. Focus is on volumes... or they will have to shutter down. T-Shirt prices range from Rs. 90 to Rs. 145 for premium imported Egyptian cotton t shirts that probably retail for over Rs. 700-900.

Another chap has a pretty big embroidery unit here in Bangalore. His t-shirt manufacturing unit is also in Tiruppur. He goes 'agar Bangalore mein factory khola toh kangaal ho jaounga'.

The minimum wages here are almost Rs. 14-16k pm and labor laws are pretty strict unless you are bribing the labor commissioner big time.

Who will manufacture? What will they manufacture? Why will they manufacture? Why take so much headache? Being a trader is less of a headache. Most manufacturer's turn into traders within 2-3 years of opening their units. The brave one's last about 10 years if policy is in their favor. Babu's have repeatedly fucked our economy with no remorse. Strange, the minister signs on that policy document and it becomes the law affecting livelihood of millions year after year, decade after decade.
The issue with automation is that eats up your low skilled jobs.

Automation in itself will always create new avenues for employment but most of these will be high end niche category jobs.

Job losses in automobile sector are more due to oversupply and a weaker and sluggish demand than automation because unions prevent any drastic change.

1627407983558.png


Once demand increases employment figures will also increase side by side.
 

another_armchair

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Exactly.

There seems to be assumption or belief both in the forum and India in general that a large population is bound to invite low end manufacturing simply due to cheap labor.

It is only after the recent trends over the past few years have people started to realize that cheap labor cannot be used as a magnet to invite manufacturing.

Contrary to the popular belief the low end manufacturing segment of the world economy is not up for grab to the lowest bidder.

It is extremely competitive in nature and the low cost segment focus on cost savings in the entirety and not labor only.

Location
infrastructure
transportation
shipment duties
skilled labor in that category
friendly market
cheap labor

All of these combinations together form the core of low end manufacturing industry worldwide. Excelling in only one or few of these will not bring in the desired results.

View attachment 102142

This is also one of the prime reasons of ASEAN successfully taking over the manufacturing leaving china.

View attachment 102138

Until and unless we identify the core problems and act on them we will continue to face similar results.
AFAIK, a good chunk of the manufacturing that moved from China to Vietnam is either fully/partly owned by China or atleast the money is Han Chinese in order to circumvent the 'troubled tag' route. As long as the brand gets the same quality at the same or a lower price, they simply don't care.

1627408024984.png



10% of our exports or USD 27.6 billion comprised of mineral fuels, oils and distillation products.
 

DEV1729

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Exactly.

There seems to be assumption or belief both in the forum and India in general that a large population is bound to invite low end manufacturing simply due to cheap labor.

It is only after the recent trends over the past few years have people started to realize that cheap labor cannot be used as a magnet to invite manufacturing.

Contrary to the popular belief the low end manufacturing segment of the world economy is not up for grab to the lowest bidder.

It is extremely competitive in nature and the low cost segment focus on cost savings in the entirety and not labor only.

Location
infrastructure
transportation
shipment duties
skilled labor in that category
friendly market
cheap labor

All of these combinations together form the core of low end manufacturing industry worldwide. Excelling in only one or few of these will not bring in the desired results.

View attachment 102142

This is also one of the prime reasons of ASEAN successfully taking over the manufacturing leaving china.

View attachment 102138

Until and unless we identify the core problems and act on them we will continue to face similar results.
Vietnam is commie as well most industry are run by army so anyone going against business interest of vietnam is neutralized unlike in india where one can do dharnas like greenpeace and close down vedanta niyamgiri copper plant and stop revolutionary posco project .
 

Knowitall

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AFAIK, a good chunk of the manufacturing that moved from China to Vietnam is either fully/partly owned by China or atleast the money is Han Chinese in order to circumvent the 'troubled tag' route. As long as the brand gets the same quality at the same or a lower price, they simply don't care.

View attachment 102146


10% of our exports or USD 27.6 billion comprised of mineral fuels, oils and distillation products.
Administrative and regulatory hurdles combined with infrastructure are the biggest challenges we face as of now.
 

another_armchair

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Administrative and regulatory hurdles combined with infrastructure are the biggest challenges we face as of now.
When those are overcome, there may be integrity issues related to the business itself. So there is general distrust between Babu and businessman. Throw a banker and a union leader into the party and we have quite a conundrum.
 

Knowitall

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DEV1729

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If we are having trouble breaching the 10% barrier after base effect and pent up demand later years growth us bound to slip back to 6-8%.
All these growth prediction is based on certain factors and will change if there is sudden change in situation both good and bad.One hydrocarbon/ energy field discovery or like y2k issue can easily shoot up our gdp like it is happening in guyana
 

sauntheninja

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All these growth prediction is based on certain factors and will change if there is sudden change in situation both good and bad.One hydrocarbon/ energy field discovery or like y2k issue can easily shoot up our gdp like it is happening in guyana
There are reports of a possible third wave and our vaccinations numbers are going down or are stagnant along with people rushing to tourist places it can hit our growth further and anyway people wont splash money on consumer items as they would prefer to save it for medical expenses so demand will be muted till diwali possibly
 

Suryavanshi

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There are reports of a possible third wave and our vaccinations numbers are going down or are stagnant along with people rushing to tourist places it can hit our growth further and anyway people wont splash money on consumer items as they would prefer to save it for medical expenses so demand will be muted till diwali possibly
Kerela already recording 22,000 cases, they were doing some 1 lakh testing few days back and had 13,000 cases now when they have raised testing the real no has shown up.
Surprisingly Maharashtra no are going down
 

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